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Committee Substitute House Bill 2241 History

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HB2241 SUB
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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