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California Association of Private Postsecondary Schools

S.B. 845 - Governance & State Oversight

05/01/2014

Sponsor: Senator Lou Correa (D)

Summary: Requests each governing body of an accredited private postsecondary education institution to develop a model contract governing the disbursement of financial aid, scholarships, campus-based aid or school refund onto a debit card, prepaid card or other preloaded card issued by a financial institution, and make a model contract available on its Internet Web site. 

Amendment #2 (4/3/2014): http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0801-0850/sb_845_bill_20140403_amended_sen_v97.pdf

Amendment #1 (2/25/2014): http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0801-0850/sb_845_bill_20140225_amended_sen_v98.pdf

Introduced: http://www.leginfo.ca.gov/pub/13-14/bill/sen/sb_0801-0850/sb_845_bill_20140108_introduced.pdf

Status: Introduced; referred to Committee on Rules 1/9/2014. Referred to Senate Committee on Education 1/23/2014. Referred to Senate Banking and Financial Institutions Committee 1/23/2014. Amended, re-referred to Senate Committee on Education 2/25/2014. Hearing held, reported 3/26/2014. Re-referred to Senate Banking and Financial Institutions Committee 4/3/2014. Hearing held, reported; referred to the Senate Committee on Appropriations 4/30/2014.

Outlook: After allowing for public testimony, the Senate Banking and Financial Institutions Committee recommended this measure for passage unanimously. This measure will next be referred to the Senate Committee on Appropriations for consideration. As this measure contains fiscal provisions it must be approved by the Appropriations Committee before it may be considered by the full chamber. Per Joint Rule 61(b)(8), the committee has by May 23 to act on this measure.

This measure has been re-referred to the Senate Banking and Financial Institutions Committee, chaired by Senator Noreen Evans (D).

During the March 26 hearing of the Senate Committee on Education, this measure was passed by a 9-0 vote. The sponsor introduced the measure to the committee and presented representatives of the California State University Student Organization, Higher One, California Bankers Association, Association of Community College Chief Executive Officers and the University of California Student Association. The committee amended the measure to bring it in line with regulations promulgated by the U.S. Department of Education.

This measure has been amended by the author to specify that each model contract may be developed in consultation with stake holders including statewide student associations and not individual student organizations. The measure was re-referred to the Senate Committee on Education for consideration.

The sponsor serves as a member of the Senate Committee on Education, chaired by Senator Carol Liu (D). Committees are not required to consider every measure referred to them; however, the likelihood of this measure moving quickly through both committees is high.

The sponsor is a member of the majority party. The Democratic Party controls both chambers of the Legislature as well as the office of the Governor.

Effective Date: Upon approval of the Governor

*Information provided by www.stateside.com