Bill Text: CA SB595 | 2013-2014 | Regular Session | Chaptered

California Senate Bill 595 (Prior Session Legislation)

Bill Title: Postsecondary education: financial aid.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Passed) 2013-09-06 - Chaptered by Secretary of State. Chapter 217, Statutes of 2013. [SB595 Detail]

Download: California-2013-SB595-Chaptered.html

BILL NUMBER: SB 595	CHAPTERED
	BILL TEXT

	CHAPTER  217
	FILED WITH SECRETARY OF STATE  SEPTEMBER 6, 2013
	APPROVED BY GOVERNOR  SEPTEMBER 6, 2013
	PASSED THE SENATE  MAY 28, 2013
	PASSED THE ASSEMBLY  AUGUST 22, 2013
	AMENDED IN SENATE  APRIL 22, 2013

INTRODUCED BY   Senator Calderon

                        FEBRUARY 22, 2013

   An act to add Section 69505.5 to the Education Code, relating to
postsecondary education.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 595, Calderon. Postsecondary education: financial aid.
   Under existing law the Legislature declares that student
assistance programs have the primary purpose of providing equal
opportunity and access to postsecondary education for specified
groups of students and that student aid programs should assist
students to progress through the educational program in accordance
with the individual's educational objectives.
   This bill would require each campus of the California Community
Colleges and the California State University and, as to the
University of California, request each campus of the University of
California, to not enter into a contract with any entity, whether a
specific depository institution or an entity that partners with one
or more depository institutions, on or after January 1, 2014, that
requires a student to open an account with that entity as a condition
of the student receiving his or her financial aid disbursement. The
bill would also require each campus of the California Community
Colleges and the California State University, or, as to the
University of California, request each campus of the University of
California, to offer a student the option of receiving his or her
financial aid disbursement via direct deposit into an account at a
depository institution of the student's choosing, and ensure that its
contract or contracts for financial aid disbursement entered into on
or after January 1, 2014, provide that the contracting entity shall
initiate the direct deposit within one business day of receipt of the
financial aid disbursement moneys from each campus of the California
Community Colleges, the California State University, or the
University of California, as applicable. By requiring each campus of
the California Community Colleges to offer this option to students,
the bill would impose a state-mandated local program.
   The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state. Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that, if the Commission on State Mandates
determines that the bill contains costs mandated by the state,
reimbursement for those costs shall be made pursuant to these
statutory provisions.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 69505.5 is added to the Education Code, to
read:
   69505.5.  (a) (1) No campus of the California Community Colleges
or the California State University shall enter into a contract on or
after January 1, 2014, with any entity, whether a specific depository
institution or an entity that partners with one or more depository
institutions, that requires a student to open an account with that
entity as a condition of the student receiving his or her financial
aid disbursement.
   (2) Each campus of the University of California is requested to
not enter into a contract on or after January 1, 2014, with any
entity, whether a specific depository institution or an entity that
partners with one or more depository institutions, that requires a
student to open an account with that entity as a condition of the
student receiving his or her financial aid disbursement.
   (b) (1) Each campus of the California Community Colleges and the
California State University shall offer a student the option of
receiving his or her financial aid disbursement via direct deposit
into an account at a depository institution of the student's
choosing. Each campus of the California Community Colleges and the
California State University shall ensure that its contract or
contracts for financial aid disbursement entered into on or after
January 1, 2014, provide that the contracting entity shall initiate
the direct deposit within one business day of receipt of the
financial aid disbursement moneys from each campus of the California
Community Colleges and the California State University.
   (2) Each campus of the University of California is requested to
offer a student the option of receiving his or her financial aid
disbursement via direct deposit into an account at a depository
institution of the student's choosing. Each campus of the University
of California is requested to ensure that its contract or contracts
for financial aid disbursement entered into on or after January 1,
2014, provide that the contracting entity shall initiate the direct
deposit within one business day of receipt of the financial aid
disbursement moneys from each campus of the University of California.

  SEC. 2.  If the Commission on State Mandates determines that this
act contains costs mandated by the state, reimbursement to local
agencies and school districts for those costs shall be made pursuant
to Part 7 (commencing with Section 17500) of Division 4 of Title 2 of
the Government Code.