COMMITTEE SUBSTITUTE
FOR
H. B. 2241
(By Delegates Eldridge, Marshall, Miley and Caputo)
(Originating in the House Committee on the Judiciary)
[March 24, 2009]
A BILL to amend and reenact §18B-14-10 of the Code of West
Virginia, 1931, as amended, relating to credit card
solicitation on college campuses; and providing a civil
penalty for violations.
Be it enacted by the Legislature of West Virginia:
That §18B-14-10 of the Code of West Virginia, 1931, as
amended, be amended and reenacted to read as follows:
ARTICLE 14. MISCELLANEOUS.
§18B-14-10. Credit card solicitation on college campuses;
regulation of credit card marketing.
(a)
As used in this section: Definitions. -- For the purposes
of this section, the following terms have the following meanings
(1) "College
(1) "Campus" includes the premises and grounds of
an a state
institution of higher education;
(2) "Credit card debt education brochure" means
the
information developed by a college or university by a registered nonprofit corporation or by other sources as identified and
approved by the institution of higher education literature that
details the appropriate use, benefits and risks of incurring debt
through the use of credit cards,
which is approved by the state
institution of higher education for distribution on its campuses;
and
(3) "Credit card marketer" includes a person, corporation,
financial institution or business entity that promotes, offers or
accepts applications for a credit card.
(4) "Institution of higher education" means any of the
following:
(i) A community college or technical college as defined in
subsection (e), section two, article one of this chapter; and
(ii) Bluefield State College, Concord College, Glenville State
College, Fairmont State College, Marshall University, West Virginia
Northern Community College, West Liberty State College, Potomac
State College of West Virginia University, Shepherd College, West
Virginia University Institute of Technology, Southern West Virginia
Community Institute of Technology, West Virginia University at
Parkersburg, West Virginia School of Osteopathic Medicine, West
Virginia State College, West Virginia University and all branch
campuses of these institutions of higher education; and
(5) "Student" means a person who is at least eighteen years of
age and who attends an institution of higher education whether on
a full-time or part-time basis.
(b) The governing boards of each institution shall propose rules in accordance with the rule adopted by the Higher Education
Policy Commission pursuant to the provisions of section six,
article one of this chapter no later than July 1, 2003, to regulate
the marketing practices used on campuses by credit card companies.
In proposing these rules, the governing boards shall consider the
following requirements:
(b) In accordance with the provisions of article three,
chapter twenty-nine-a of this code and section six, article one of
this chapter, the Commission and Council jointly shall propose for
legislative approval rules to govern credit card solicitation on
the campuses of state institutions of higher education. The rule
shall provide for:
(1) Registering on-campus credit card marketers;
(2) Limiting credit card marketers to specific
institutional
campus sites designated by the president or
administrative head of
the institution or his or her designee;
(3) Prohibiting credit card marketers from offering tangible
gifts to students in exchange for completing a credit card
application
or providing an application referral;
(4) Requiring that
no application for the extension of debt
through a credit card
application may
not be made available to a
student unless the application is accompanied by a credit card debt
education brochure;
(5)
Whether or not to use or the appropriate Restricting or
limiting the use of student lists for the purpose of soliciting
credit card applications;
for credit cards; and
(6) Developing a credit card debt education presentation to be
incorporated
(6) Incorporating into orientation programs offered to new
students
a credit card debt education presentation which
demonstrates how significant debt can accumulate quickly, and
includes the obligations, responsibilities, risks, benefits and
appropriate uses of credit cards; and
(7) Any other provision the Commission and Council consider
necessary.
Any credit card marketer who, after legislative approval of
the rules described in this subsection (b), commits an act
prohibited by such rules is subject to a civil penalty of not more
than $500, to be imposed by the institution where the violation
occurs. Any amounts collected in payment of such penalty shall be
deposited in the state grants and contracts special revenue account
of the institution which imposes the penalty. Furthermore, any
such act intentionally committed in violation of such rules shall
also be deemed an unfair and deceptive act or practice.
(c) Unless a student's parent or guardian has agreed in
writing to be liable as a cosigner for credit card debts of the
student,
no person may a person may not initiate a debt collection
action against the parent or guardian regarding any credit card
debt incurred by the student
, nor may a person contact the parent
or guardian in any manner for the purpose of enticing or
encouraging the parent or guardian to assume responsibility of the
student's debt.
(d) A governing board may prohibit credit card application
solicitation on any campus under its jurisdiction.
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