BILL NUMBER: SB 595 AMENDED
BILL TEXT
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, as amended, 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 a
bank or financial institution that requires students
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 the bank or financial institution 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 a check for, or direct deposit of,
his or her financial aid disbursement in a timeframe that is
similar to the timeframe for financial aid disbursement offered by a
bank or financial institution that partners with the
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
community college, California State University, or 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.
Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: yes.
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 a bank or financial
institution that requires students 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 the bank or financial institution
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 a bank or financial institution that
requires students 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 the bank or financial institution
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 a check for, or direct deposit of, his
or her financial aid disbursement in a timeframe that is
similar to the timeframe for financial aid disbursement offered by a
bank or financial institution that partners with a campus of the
California Community Colleges or California State University
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 a check for, or
direct deposit of, his or her financial aid disbursement
in a timeframe that is similar to the timeframe for
financial aid disbursement offered by a bank or financial institution
that partners with a campus of the University of California
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.