Bill Text: HI HB662 | 2011 | Regular Session | Introduced

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Bill Title: Credit Card Marketing

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2011-01-24 - (H) Referred to HED, CPC/JUD, referral sheet 1 [HB662 Detail]

Download: Hawaii-2011-HB662-Introduced.html

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HOUSE OF REPRESENTATIVES	H.B. NO.	662
TWENTY-SIXTH LEGISLATURE, 2011
STATE OF HAWAII

A BILL FOR AN ACT

 

 

relating to credit card marketing.

 

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 

     SECTION 1.  Title 26, Hawaii Revised Statutes, is amended by adding a new chapter to be appropriately designated and to read as follows:

"Chapter

Credit Card Marketing through institutions of higher education

     §   -1  Definitions.  As used in this chapter:

     "Credit card" has the same meaning as provided in section 478-1.

     "Credit card issuer" means a financial institution, a lender other than a financial institution, or a merchant that receives applications and issues credit cards to individuals.

     "Credit card marketing activity":

     (1)  Means any action designed to promote the completion of an application by a student pursuing an undergraduate education to qualify to receive a credit card.  Credit card marketing activity includes, but is not limited to, the act of placing a display or poster together with credit card applications on a campus of an institution of higher education in the State, whether or not an employee or agent of the credit card issuer attends the display; and

     (2)  Does not include promotional activity of a credit card issuer in a newspaper, magazine, or other similar publication or within the physical location of a financial services business located on the campus of an institution of higher education, when that activity is conducted as a part of the financial services business's regular course of business.

     "Institution of higher education" means any publicly or privately operated university, college, community college, junior college, business, technical or vocational school, or other educational institution offering degrees and instruction beyond the secondary school level.

     "Tangible personal property" means personal property that can be seen, weighed, measured, or touched, or that is in any other matter perceptible to the senses, including, but not limited to, gift cards, t-shirts, and other giveaways.

     "Undergraduate student" means any individual admitted to, attending, or applying for admission to an institution of higher education, or enrolled on a full or part time basis in a course or program of academic, business, or vocational instruction offered by or through an institution of higher education, where credits earned could be applied toward the earning of a bachelors or associates degree.

     §   -2  Financial education.  Any institution of higher education that enters into an agreement to market credit cards to undergraduate students, or that allows its student groups, alumni associations, or affiliates to enter into such marketing agreements, shall make a financial education program available to all undergraduate students.  Additionally, an institution of higher education shall make available to all undergraduate students by posting, in a conspicuous location on its web pages, the financial education information required under this section.  The financial education program shall include, at a minimum, the following requirements:

     (1)  An explanation of the consequences of not paying credit card balances in full within the time specified by the billing statement;

     (2)  An explanation of common industry practices that have a negative impact on consumer credit card holders;

     (3)  Examples illustrating the length of time to pay off various balance amounts if only the minimum monthly payment required under the agreement is paid;

     (4)  An explanation of credit related terms;

     (5)  Information concerning the federal government's opt-out program to limit credit card solicitations, and how students may participate in it; and

     (6)  An explanation of the impact of and potential consequences that could result from using a debit card for purchases that exceed the deposits in the account tied to the debit card.

     §   -3  Disclosure of agreements with credit card issuers.  (a)  Any institution of higher education, including its agents, employees, or student or alumni organizations, or affiliates that receives any funds or items of value based upon the institution's distribution of applications for credit cards to undergraduate students, or whose student groups, alumni associations or affiliates, or both, receive funds or items of value from the distribution, shall disclose the following:

     (1)  The name of the credit card issuer that has entered into any agreement with the institution of higher education;

     (2)  The nature of the institution of higher education's relationship with the credit card issuer; and

     (3)  The way in which any funds received by the institution of higher education that are related to credit card marketing were expended during the previous school year.

     (b)  Disclosures shall appear in a conspicuous location on the webpages of the institution of higher education and in any notices mailed to undergraduate students marketing or promoting the credit card.

     (c)  Any institution of higher education that receives public funds shall disclose all agreements with credit card issuers to any requester, pursuant to chapter 92F.

     §   -4  Gifts and inducements.  No institution of higher education shall allow on its campus credit card marketing activity that involves the offer of gifts, coupons, or other tangible personal property to undergraduate students to induce students to complete an application for a credit card.  All institutions of higher education shall prohibit undergraduate students, student groups, alumni associations, or affiliates from providing gifts, coupons, or other tangible personal property to undergraduate students to induce students to complete an application for a credit card.

     §   -5  Provision of student information prohibited.  No institution of higher education, including their agents, employees, student groups, alumni organizations, or any affiliates shall provide to a business organization or financial institution for purposes of marketing credit cards the following information for any undergraduate student:

     (1)  Name;

     (2)  Address;

     (3)  Telephone number;

     (4)  Social security number;

     (5)  E-mail address; or

     (6)  Other personally identifying information.

     §   -6  Enforcement; violations.  Whenever the attorney general has reason to believe that any institution of higher education is using, has used, or is about to use any method, act, or practice in violation of this chapter, or knows or should have reason to know that agents, employees, students, student groups, alumni associations, or affiliates used or are about to use any method, act, or practice in violation of this chapter, the attorney general may bring an action in the name of the State against any institution of higher education to restrain and prevent any violation of this chapter and seek a penalty of up to $1,000 per incident.

     §   -7  Attorney general; investigations; issuance of subpoenas.  (a)  The attorney general, in addition to the powers conferred by section 28-2.5, may conduct any investigation deemed necessary to determine any violation of this chapter including the issuance of subpoenas to:

     (1)  Require the filing of a statement or report or answer interrogatories in writing as to all information relevant to the alleged violations;

     (2)  Examine under oath any person who possesses knowledge or information directly related to the alleged violations; and

     (3)  Examine any record, book, document, account, or paper necessary to investigate the alleged violation.

     (b)  Service by the attorney general of any notice requiring a person to file a statement or report, or of a subpoena upon any person, shall be made:

     (1)  Personally by delivery of a duly executed copy thereof to the person to be served; or

     (2)  By mailing by certified mail a duly executed copy thereof to the person to be served at the person's last known abode or principal place of business within the State.

     (c)  If any person fails or refuses to file any statement or report, or obey any subpoena issued by the attorney general, the attorney general may file a complaint in the circuit court for the granting of injunctive relief, restraining the sale or advertisement of any merchandise by those persons, or the conduct of any trade or commerce that is involved."

     SECTION 2.  This Act does not affect rights and duties that matured, penalties that were incurred, and proceedings that were begun before its effective date.

     SECTION 3.  This Act shall take effect upon its approval.

 

INTRODUCED BY:	_____________________________

 

 

Report Title:

Credit Card Marketing

 

Description:

Requires any institution of higher education that market credit cards to its undergraduate students to offer financial education to those undergraduate students.  Requires disclosure of agreements with credit cared issuers.  Prohibits gifts or other marketing inducements.  Provides penalties.

 

 

 

The summary description of legislation appearing on this page is for informational purposes only and is not legislation or evidence of legislative intent.