California Code of Regulations › Title 5 - Education › Division 4.5 - Scholarshare Investment Board › Chapter 1 - Golden State Scholarshare Trust Program › Section 30957 - Dispute Resolution

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(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 its
				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.