Sponsor: Assemblymember Jim Frazier (D)
Summary: Current version (7/2/2014): Requires the Board of Governors of the California Community Colleges and the Trustees of the California State Universities, and requests the Regents of the University of California and the governing bodies of accredited private nonprofit and for-profit postsecondary educational institutions, to adopt policies to be used for negotiating contracts for disbursement of financial aid awards and other refunds onto debit cards, prepaid cards or preloaded cards.
Requires the policies adopted to ensure that contracts between postsecondary educational institutions and banks or other financial institutions to disburse a student’s financial aid award to:
(1) Prohibit revenue sharing between a postsecondary educational institution and banks or other financial institutions.
(2) Prohibit the sale or sharing of personal information that the student or the postsecondary educational institution provides the bank or other financial institution, unless it is necessary for the purpose of providing services related to the opening or maintenance of a debit card, prepaid card, or preloaded card account.
(3) Prohibit the debit card, prepaid card or preloaded card use from imposing point-of-sale transaction fees.
(4) Provide a clear and conspicuous disclosure to students of all fees associated with the debit card, prepaid card or preloaded card.
(5) Ensure that the student has convenient access to a branch office of the bank or an automated teller machine of the bank in which the account was opened or of another bank, so that the student does not incur any cost in making withdrawals from that office or those automated teller machines.
(6) Ensure that the debit card, prepaid card or preloaded card can be widely used.
(7) Prohibits a bank or other financial institution from imposing a fee on a student for the use of a debit card, prepaid card or preloaded card.
(8) Requires any fees imposed by the bank or other financial institution to be paid by the postsecondary educational institution.
(9) Requires the postsecondary educational institution to disclose to students the benefits and student responsibilities for all financial aid disbursement options offered by the postsecondary educational institution.
Provide associated contracts with banks or other financial institutions to be publicly available on the postsecondary educational institution’s Internet Web site.
Amendment #5 (7/2/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1901-1950/ab_1927_bill_20140702_amended_sen_v94.pdf
Amendment #4 (6/19/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1901-1950/ab_1927_bill_20140619_amended_sen_v95.pdf
Amendment #3 (6/4/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1901-1950/ab_1927_bill_20140604_amended_sen_v96.pdf
Amendment #2 (5/5/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1901-1950/ab_1927_bill_20140505_amended_asm_v97.pdf
Amendment #1 (4/10/2014): http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1901-1950/ab_1927_bill_20140410_amended_asm_v98.pdf
Introduced version: http://www.leginfo.ca.gov/pub/13-14/bill/asm/ab_1901-1950/ab_1927_bill_20140219_introduced.pdf
Status: Introduced 2/19/2014. Referred to Assembly Committee on Higher Education and Assembly Committee on Banking and Finance 2/27/2014. Hearing held, reported 4/1/2014. Withdrawn, amended, re-referred to Assembly Committee on Banking and Finance. Hearing held 4/21/2014. Hearing held, reported; re-referred to Committee on Appropriations 4/28/2014. Amended 5/5/2014. Hearing held, reported 5/14/2014. Passed Assembly, received in Senate 5/19/2014. Referred to Senate Committee on Education and the Senate Committee on Banking and Financial Institutions 5/28/2014. Amended 6/4/2014. Hearing held, reported, re-referred to the Senate Committee on Banking and Financial Institutions 6/11/2014. Hearing held, reported; re-referred to Committee on Appropriations 6/25/2014. Amended 7/2/2014. Hearing held 8/4/2014.
Outlook: This measure was determined to have a significant fiscal impact by the Committee on Appropriations and placed in its suspense file for further consideration at a later date. The suspense file is a function of the fiscal committee in both chambers. Per Joint Rule 61(b)(14), the committee has by August 15 to act on this measure.
The Assembly adopted this measure by a 53-22 vote.
The sponsor is a member of the majority party but has not garnered the support of any cosponsors. The Democratic Party controls both legislative chambers as well as the Office of Governor.
Effective Date: Upon approval by the Governor.
*Information provided by www.stateside.com