Section 69768 Of Article 13. Federal Family Education Loan Program From California Education Code >> Division 5. >> Title 3. >> Part 42. >> Chapter 2. >> Article 13.
69768
. (a) The funds in the Federal Student Loan Reserve Fund and
the Student Loan Operating Fund shall be paid out by the State
Treasurer on warrants drawn by the Controller, or through a transfer
between the Federal Student Loan Reserve Fund and the Student Loan
Operating Fund, and requisitioned by the commission in carrying out
the purposes of this article and the federal act.
(b) The commission is hereby authorized to make advance payments
from the Student Loan Operating Fund to the auxiliary organization
for services rendered to the commission under Article 2.5 (commencing
with Section 69522). The commission is hereby authorized to make
advance payments from the Student Loan Operating Fund to the
auxiliary organization for the purpose of providing funding necessary
for other permitted student financial aid activities approved by the
commission pursuant to a business plan adopted by the auxiliary
organization and approved by the commission, provided the commission
first provides the Director of Finance and the Joint Legislative
Budget Committee with at least 45 days advance notice in writing that
includes the amount proposed to be transferred and a description of
the approved student financial aid activities and related
expenditures to be undertaken. If the Director of Finance or the
Joint Legislative Budget Committee notifies the commission regarding
issues of concern with the proposed transfer of funds, the commission
shall convene a meeting of appropriate representatives of the
commission, the Department of Finance, and the Legislature to resolve
those issues. Notwithstanding any other law, advance payments to the
auxiliary organization and any fees charged by the auxiliary
organization for services rendered to the commission pursuant to an
operating agreement may be deposited with a private financial
institution.