CA AB1927

Requires California Community Colleges, Cal State University, UC, and accredited private postsecondary institutions to adopt policies for negotiating contracts with banks to disburse financial aid onto debit, prepaid, or preloaded cards as a condition of Cal Grant Program participation.

Mandates policies ensure students incur no cost to open accounts or receive cards, have free ATM access on or near campus, can use cards widely without vendor restrictions, and prohibits marketing cards as credit instruments.

Prohibits revenue sharing between institutions and banks, bans sale or sharing of student personal information except for account maintenance, and forbids point-of-sale transaction fees on card usage.

Requires banks to disclose all associated fees in at least 10-point font before students open accounts and to clearly state if cobranded cards are not endorsed by the institution.

Mandates institutions publicly post all debit card policies and contracts on their websites and disclose to students the benefits and responsibilities of all available financial aid disbursement options.