5 CCR s 30957

Cal. Admin. Code tit. 5, s 30957

CALIFORNIA CODE OF REGULATIONS
TITLE 5. EDUCATION
DIVISION 4.5. SCHOLARSHARE INVESTMENT BOARD
CHAPTER 1. GOLDEN STATE SCHOLARSHARE TRUST PROGRAM
This database is current through 02/02/07, Register 2007, No. 5
s 30957. Dispute Resolution.

(a) Optional Pre-Arbitration Procedure. In the event a controversy or
claim arises out of or relates to a participation agreement, the account
owner or designated beneficiary may elect to discuss the matter informally
with the program administrator or his or her designee. If the dispute is
not resolved to the satisfaction of the account owner or designated
beneficiary, the account owner or designated beneficiary may send a letter
explaining the dispute to the Executive Director of the ScholarShare
Investment Board. The Executive Director or his or her designee shall meet
in person or by telephone with the account owner or designated beneficiary
within ten (10) working days of receipt of the letter from the account
owner or designated beneficiary or such longer period as may be mutually
acceptable, and the Executive Director or his or her designee shall mail a
written decision, and the reasons therefor, to the account owner or
designated beneficiary within twenty (20) working days of the meeting. The
procedure set forth in this paragraph is not a substitute for mandatory
arbitration, which is required by paragraph (b) below. The procedure set
forth in this paragraph is an informal process that may resolve
controversies and claims and make arbitration unnecessary.

(b) Arbitration Mandatory. Any controversy or claim arising out of or
relating to any participation agreement, or the breach, termination or
validity thereof, shall be settled by arbitration administered by the
American Arbitration Association, and judgement on the award rendered by
the arbitrator(s) may be entered in any court having jurisdiction thereof.

(c) Arbitration Clause and Disclosure. Every participation agreement shall
include the following arbitration clause and disclosure language. The
arbitration clause and the disclosure language shall be underlined or
printed in bold face type.

Any controversy or claim arising out of or relating to this participation
agreement, or the breach, termination or validity thereof, shall be
settled by arbitration administered by the American Arbitration
Association in accordance with its Commercial Arbitration Rules, and
judgment on the award rendered by the arbitrator(s) may be entered in any
court having jurisdiction thereof.

The foregoing is a predispute arbitration clause. By signing an
arbitration agreement, the parties agree as follows:

(1) All parties to this agreement are giving up the right to sue
each other in court, including the right to a trial by jury, except
as provided by the rules of the American Arbitration Association.

(2) Arbitration awards are generally final and binding; a party's
ability to have a court reverse or modify an arbitration award is
limited.

(3) The ability of the parties to obtain documents, witness
statements and other discovery is generally more limited in
arbitration than in court proceedings.

(4) The arbitrators do not have to explain the reason(s) for their
award.

(5) The rules of the American Arbitration Association may impose
time limits for bringing a claim in arbitration.

(d) Predispute Arbitration Clause Disclosure. Immediately preceding the
signature line on the participation agreement there shall be a statement,
which shall be highlighted, that the agreement contains a predispute
arbitration clause. The statement shall also indicate at what page and
paragraph the arbitration clause is located.

(e) Copy of Agreement to Account Owner. Upon request by an account owner,
the program administrator or his or her designee shall provide the account
owner with a copy of the participation agreement executed by the account
owner, within ten (10) business days of receipt of the account owner's
request.

(f) Information Upon Request. Upon request by an account owner, the
program administrator or his or her designee shall provide the account
owner with information on how to contact or obtain the rules of the
American Arbitration Association.

Note: Authority cited: Sections 69981(d) and 69982(h), Education
Code. Reference: Sections 69981(c) and 69990(d), Education Code.

HISTORY

1. New section filed 6-3-99 as an emergency pursuant to
Education Code69993.5; operative 6-28-99 (Register 99, No. 23). A
Certificate of
Compliance must be transmitted to OAL by 2-23-2000 or emergency language
will
be repealed by operation of law on the following day.

2. New section refiled 12-30-99 as an emergency pursuant to
Education Codesection 69993.5, including amendment of subsection (c)(2);
operative 12-26-99
(Register 99, No. 53). A Certificate of Compliance must be transmitted to
OAL by 4-24-2000 or emergency language will be repealed by operation of
law on
the following day.

3. Certificate of Compliance as to 12-30-99 order, including amendment of
subsection (a), transmitted to OAL 4-21-2000 and filed 6-1-2000 (Register
2000, No. 22).

4. Amendment of subsection (a)filed 12-18-2001 as an emergency; operative
1-1-
2002 (Register 2001, No. 51). Pursuant to Education Code section 69993.5,
a Certificate of Compliance must be transmitted to OAL by 7-1-2002 or
emergency
language will be repealed by operation of law on the following day.

5. Editorial correction ofHistory4 (Register 2002, No. 21).

6. Editorial correction ofHistory4 (Register 2002, No. 31).

7. Reinstatement of section as it existed prior to 12-18-2001 emergency
amendment by operation of Government Code section 11346.1(f) (Register
2002, No. 31).

8. Amendment of subsection (a)filed 7-31-2002 as an emergency; operative
7-31-
2002 (Register 2002, No. 31). A Certificate of Compliance must be
transmitted to OAL by 12-2-2002 or emergency language will be repealed by
operation of law on the following day.

9. Certificate of Compliance as to 7-31-2002 order transmitted to OAL
11-13-
2002 andfiled 12-5-2002 (Register 2002, No. 49).

5 CCR s 30957, 5 CA ADC s 30957
1CAC

5 CA ADC s 30957

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