Student financial aid: debit cards.

Existing law provides for the missions and functions of the private and public segments of postsecondary education in the state. Existing law establishes various student financial aid programs for students attending all segments of postsecondary education, including the Ortiz-Pacheco-Poochigian-Vasconcellos Cal Grant Program (Cal Grant Program) , which establishes the Cal Grant A and B Entitlement Awards, the California Community College Transfer Cal Grant Entitlement Awards, the Competitive Cal Grant A and B Awards, the Cal Grant C Awards, and the Cal Grant T Awards under the administration of the Student Aid Commission, and establishes eligibility requirements for awards under these programs for participating students attending qualifying institutions. This bill would require the Board of Governors of the California Community Colleges, the Trustees of the California State University, the Regents of the University of California, and the governing bodies of accredited private nonprofit and for-profit postsecondary educational institutions, as a condition for participation in the Cal Grant Program, to adopt policies to be used for negotiating contracts for disbursements of financial aid awards and other refunds onto debit cards, prepaid cards, or preloaded cards. The bill would require the policies to ensure that contracts between postsecondary educational institutions and banks or other financial institutions to disburse a student's financial aid award are consistent with certain provisions of federal law, and, in addition, do certain other things, including prohibiting the sale or sharing of personal information, as defined, that the student or the postsecondary educational institution provides the bank or other financial institution, as specified; prohibiting the bank or other financial institution from imposing a point-of-sale transaction fee on a student for the use of the debit card, prepaid card, or preloaded card; providing a clear and conspicuous disclosure to students of all fees associated with the debit card, prepaid card, or preloaded card; and requiring the postsecondary educational institution to disclose to students the benefits and student responsibilities associated with all financial aid disbursement options offered by the postsecondary educational institution. The bill would provide for policies adopted under these provisions and associated contracts with banks or other financial institutions to be publicly available on the postsecondary educational institution's Internet Web site.