ENGROSSED
COMMITTEE SUBSTITUTE
FOR
Senate Bill No. 415
(By Senators Chafin, Helmick, Bailey, Edgell, Minard, Plymale,
Barnes, Unger, Foster, Hunter and Love)
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[Originating in the Committee on the Judiciary;
reported February 27, 2006.]
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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 means of
enforcement by the Attorney General.
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 University, Glenville
State College, Fairmont State University, Marshall University, West
Virginia Northern Community College, West Liberty State College,
Potomac State College of West Virginia University, Shepherd
University, West Virginia University Institute of Technology,
Southern West Virginia Community and Technical College, West
Virginia University at Parkersburg, West Virginia School of
Osteopathic Medicine, West Virginia State University, 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 the first day of July,
two thousand three, 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 the provisions of this section or
the rules adopted by the governing board of each institution as
provided in subsection (b) of this section commits an unfair or
deceptive act or practice within the meaning of section one hundred
four, article six, chapter forty-six-a of this code.
(e) If money damages are obtained in any action instituted by
the Attorney General pursuant to this section, any money damages
recovered will be paid into the General Revenue Fund after
deductions for such items as court costs and fees, restitution or
refunds to or other made to consumers and the like.