H. B. 2241
(By Delegates Eldridge, Marshall, Miley and Caputo)
[Introduced February 12, 2009; referred to the
Committee on Education then the Judiciary.]
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 misdemeanor
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)
Definitions. -- For the purposes of this section, the
following terms have the following meanings:
(1) "College campus" includes the premises and grounds of an
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, that details the
appropriate use, benefits and risks of incurring debt through the
use of credit cards;
(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:
(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;
(4) Requiring that no application for the extension of debt
through a credit card may 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 use of student
lists for the purpose of soliciting applications for credit cards;
and
(6) Developing a credit card debt education presentation to be
incorporated into orientation programs offered to new students.
(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 initiate a debt collection action against
the parent or guardian regarding any credit card debt incurred by
the student.
(d) Any person who violates this section or the rules adopted
by the governing board of each institution as provided in
subsection (b) of this section is guilty of a misdemeanor and, upon
conviction therefor, shall be fined not more than $500.
(e) A violation of this section is an unfair and deceptive act
or practice.
(f) The Attorney General has authority to enforce this
section.
NOTE: The purpose of this bill is to provide a misdemeanor
penalty for violations of law and rules on credit card solicitation
on college campuses.
Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.
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