Texas 2009 - 81st Regular

Texas Senate Bill SB676 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6286 CLG-D
2	2	By: Shapleigh S.B. No. 676
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to credit card marketing activities at postsecondary
8	8	educational institutions.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Sections 35.132(a) and (b), Business & Commerce
11	11	Code, as added by Chapter 130 (H.B. 85), Acts of the 80th
12	12	Legislature, Regular Session, 2007, are amended to read as follows:
13	13	(a) A credit card issuer may not engage in campus credit
14	14	card marketing activities:
15	15	(1) outside of a campus location designated [by the
16	16	governing board of the postsecondary educational institution] for
17	17	that purpose in accordance with this section [Subsection (b)]; or
18	18	(2) at a time other than a time designated for that
19	19	purpose [by the governing board] in accordance with this section
20	20	[Subsection (b)].
21	21	(b) The governing board of a postsecondary educational
22	22	institution, with the approval of the institution's student
23	23	government, if one exists, may designate:
24	24	(1) one or more locations on campus where a credit card
25	25	issuer may engage in campus credit card marketing activities; and
26	26	(2) one or more times during which a credit card issuer
27	27	may engage in campus credit card marketing activities.
28	28	SECTION 2. Subchapter L, Chapter 35, Business & Commerce
29	29	Code, as added by Chapter 130 (H.B. 85), Acts of the 80th
30	30	Legislature, Regular Session, 2007, is amended by adding Sections
31	31	35.1325 and 35.1326 to read as follows:
32	32	Sec. 35.1325. ANNUAL REPORT OF ISSUER'S GIFTS TO
33	33	INSTITUTION. (a) Not later than March 1 of each year, a credit card
34	34	issuer that, during the preceding five years, has conducted credit
35	35	card marketing activities on the campus of a postsecondary
36	36	educational institution shall submit to the student government, if
37	37	any, of the institution a report that discloses the amount and
38	38	purpose of any gift, grant, or other donation given by the issuer
39	39	during the preceding calendar year to a program or office of the
40	40	institution, including any donations given to the institution's
41	41	athletics department or to support the institution's athletics
42	42	programs.
43	43	(b) A postsecondary educational institution, at the request
44	44	of the institution's student government, shall publish reports
45	45	submitted under Subsection (a) on the institution's Internet
46	46	website.
47	47	Sec. 35.1326. DISCLOSURE REGARDING CREDIT CARD TERMS. (a)
48	48	A credit card issuer shall disclose to the financial aid office of
49	49	each postsecondary educational institution on whose campus the
50	50	issuer conducts credit card marketing activities information about
51	51	each type of credit card marketed by the issuer to students on
52	52	campus. The disclosure must include:
53	53	(1) the credit card's:
54	54	(A) finance charge, stated as an annual
55	55	percentage rate, for:
56	56	(i) purchases;
57	57	(ii) cash advances;
58	58	(iii) balance transfers; and
59	59	(iv) overdue balances;
60	60	(B) grace period from finance charges for
61	61	purchases if:
62	62	(i) the cardholder carries over a balance
63	63	from the previous billing statement; and
64	64	(ii) the cardholder pays the balance in
65	65	full within the period specified by the billing statement;
66	66	(C) grace period from finance charges for cash
67	67	advances;
68	68	(D) credit limit; and
69	69	(E) minimum finance charge, if there is no grace
70	70	period from finance charges for purchases;
71	71	(2) a statement of whether:
72	72	(A) the credit card has a fixed, variable, or
73	73	tiered annual percentage rate for finance charges on an unpaid
74	74	balance that is not delinquent, and, if the card has a variable
75	75	annual percentage rate, the issuer shall also provide information
76	76	about the card's variable rate index and spread; and
77	77	(B) the credit card's finance charge on an unpaid
78	78	balance that is not delinquent is calculated:
79	79	(i) using one or two billing cycles;
80	80	(ii) to include new purchases; and
81	81	(iii) using an average, adjusted, or
82	82	previous balance method;
83	83	(3) a brief description of cardholder incentives and
84	84	rewards for using the credit card, including cash back rewards,
85	85	points reward systems, and discounts on goods and services; and
86	86	(4) a brief description of other credit card features
87	87	and benefits, including car rental insurance and travel insurance.
88	88	(b) Credit card information required under Subsection (a)
89	89	shall be furnished by the credit card issuer in an electronic table
90	90	format that is easy to read and understand.
91	91	(c) The financial aid office of a postsecondary educational
92	92	institution shall compile credit card information submitted to the
93	93	office under Subsection (a) and maintain the information in an
94	94	electronic spreadsheet format that:
95	95	(1) allows students to compare the terms, features,
96	96	and costs of all credit cards marketed to students on campus; and
97	97	(2) makes information readily available for purposes
98	98	of Subsections (e) and (f).
99	99	(d) Not later than July 1 of each year, the financial aid
100	100	office shall prepare a credit card information pamphlet using the
101	101	information maintained under Subsection (c).
102	102	(e) The postsecondary educational institution shall
103	103	prominently post credit card information maintained under
104	104	Subsection (c) at all times on the institution's Internet website
105	105	for viewing and downloading by students and the public.
106	106	(f) The financial aid office and the office of student
107	107	affairs or other similar office providing services to students of
108	108	the institution shall make available to students, on request, the
109	109	credit card information pamphlet and other credit card information
110	110	maintained under Subsection (c).
111	111	SECTION 3. Sections 35.136 and 35.137, Business & Commerce
112	112	Code, as added by Chapter 130 (H.B. 85), Acts of the 80th
113	113	Legislature, Regular Session, 2007, are amended to read as follows:
114	114	Sec. 35.136. CREDIT CARD AND DEBT INFORMATION [EDUCATION]
115	115	AT NEW STUDENT ORIENTATION. (a) The governing board of a
116	116	postsecondary educational institution that has designated a
117	117	location for campus credit card marketing activities under Section
118	118	35.132 [35.132(b)] shall also adopt a policy requiring a credit
119	119	card and debt education and counseling session to be included in any
120	120	orientation program for new students. The postsecondary
121	121	educational institution may use existing educational materials
122	122	prepared by nonprofit entities for purposes of the credit card and
123	123	debt education and counseling session.
124	124	(b) If a postsecondary educational institution holds an
125	125	orientation program for new students, the institution's financial
126	126	aid office shall distribute the information pamphlet required by
127	127	Section 35.1326(d) to students at the credit card and debt
128	128	education and counseling program session.
129	129	Sec. 35.137. CIVIL PENALTY; INJUNCTION. (a) A person who
130	130	intentionally violates this subchapter is liable to the state for a
131	131	civil penalty in an amount not to exceed $2,500 for each violation.
132	132	(b) The attorney general or the prosecuting attorney in the
133	133	county in which the violation occurs may bring suit:
134	134	(1) to recover the civil penalty imposed under this
135	135	section; and
136	136	(2) for injunctive relief to compel a credit card
137	137	issuer to file an annual report required under Section 35.1325 and a
138	138	disclosure of credit card terms required under Section 35.1326.
139	139	SECTION 4. Sections 761.051(a) and (b), Business & Commerce
140	140	Code, as effective September 1, 2009, are amended to read as
141	141	follows:
142	142	(a) A credit card issuer may not engage in campus credit
143	143	card marketing activities:
144	144	(1) outside of a campus location designated [by the
145	145	governing board of the postsecondary educational institution] for
146	146	that purpose in accordance with this section [Subsection (b)]; or
147	147	(2) at a time other than a time designated for that
148	148	purpose [by the governing board] in accordance with this section
149	149	[Subsection (b)].
150	150	(b) The governing board of a postsecondary educational
151	151	institution, with the approval of the institution's student
152	152	government, if one exists, may designate:
153	153	(1) one or more locations on campus where a credit card
154	154	issuer may engage in campus credit card marketing activities; and
155	155	(2) one or more times during which a credit card issuer
156	156	may engage in campus credit card marketing activities.
157	157	SECTION 5. Chapter 761, Business & Commerce Code, as
158	158	effective September 1, 2009, is amended by adding Subchapter B-1 to
159	159	read as follows:
160	160	SUBCHAPTER B-1. REQUIRED DISCLOSURES
161	161	Sec. 761.071. ANNUAL REPORT OF ISSUER'S GIFTS TO
162	162	INSTITUTION. (a) Not later than March 1 of each year, a credit card
163	163	issuer that, during the preceding five years, has conducted credit
164	164	card marketing activities on the campus of a postsecondary
165	165	educational institution shall submit to the student government, if
166	166	any, of the institution a report that discloses the amount and
167	167	purpose of any gift, grant, or other donation given by the issuer
168	168	during the preceding calendar year to a program or office of the
169	169	institution, including any donations given to the institution's
170	170	athletics department or to support the institution's athletics
171	171	programs.
172	172	(b) A postsecondary educational institution, at the request
173	173	of the institution's student government, shall publish reports
174	174	submitted under Subsection (a) on the institution's Internet
175	175	website.
176	176	Sec. 761.072. DISCLOSURE REGARDING CREDIT CARD TERMS. (a)
177	177	A credit card issuer shall disclose to the financial aid office of
178	178	each postsecondary educational institution on whose campus the
179	179	issuer conducts credit card marketing activities information about
180	180	each type of credit card marketed by the issuer to students on
181	181	campus. The disclosure must include:
182	182	(1) the credit card's:
183	183	(A) finance charge, stated as an annual
184	184	percentage rate, for:
185	185	(i) purchases;
186	186	(ii) cash advances;
187	187	(iii) balance transfers; and
188	188	(iv) overdue balances;
189	189	(B) grace period from finance charges for
190	190	purchases if:
191	191	(i) the cardholder carries over a balance
192	192	from the previous billing statement; and
193	193	(ii) the cardholder pays the balance in
194	194	full within the period specified by the billing statement;
195	195	(C) grace period from finance charges for cash
196	196	advances;
197	197	(D) credit limit; and
198	198	(E) minimum finance charge, if there is no grace
199	199	period from finance charges for purchases;
200	200	(2) a statement of whether:
201	201	(A) the credit card has a fixed, variable, or
202	202	tiered annual percentage rate for finance charges on an unpaid
203	203	balance that is not delinquent, and, if the card has a variable
204	204	annual percentage rate, the issuer shall also provide information
205	205	about the card's variable rate index and spread; and
206	206	(B) the credit card's finance charge on an unpaid
207	207	balance that is not delinquent is calculated:
208	208	(i) using one or two billing cycles;
209	209	(ii) to include new purchases; and
210	210	(iii) using an average, adjusted, or
211	211	previous balance method;
212	212	(3) a brief description of cardholder incentives and
213	213	rewards for using the credit card, including cash back rewards,
214	214	points reward systems, and discounts on goods and services; and
215	215	(4) a brief description of other credit card features
216	216	and benefits, including car rental insurance and travel insurance.
217	217	(b) Credit card information required under Subsection (a)
218	218	shall be furnished by the credit card issuer in an electronic table
219	219	format that is easy to read and understand.
220	220	(c) The financial aid office of a postsecondary educational
221	221	institution shall compile credit card information submitted to the
222	222	office under Subsection (a) and maintain the information in an
223	223	electronic spreadsheet format that:
224	224	(1) allows students to compare the terms, features,
225	225	and costs of all credit cards marketed to students on campus; and
226	226	(2) makes information readily available for purposes
227	227	of Subsections (e) and (f).
228	228	(d) Not later than July 1 of each year, the financial aid
229	229	office shall prepare a credit card information pamphlet using the
230	230	information maintained under Subsection (c).
231	231	(e) The postsecondary educational institution shall
232	232	prominently post credit card information maintained under
233	233	Subsection (c) at all times on the institution's website for
234	234	viewing and downloading by students and the public.
235	235	(f) The financial aid office and the office of student
236	236	affairs or other similar office providing services to students of
237	237	the institution shall make available to students, on request, the
238	238	credit card information pamphlet and other credit card information
239	239	maintained under Subsection (c).
240	240	SECTION 6. Sections 761.103 and 761.151, Business &
241	241	Commerce Code, as effective September 1, 2009, are amended to read
242	242	as follows:
243	243	Sec. 761.103. CREDIT CARD AND DEBT INFORMATION [EDUCATION]
244	244	AT NEW STUDENT ORIENTATION. (a) The governing board of a
245	245	postsecondary educational institution that has designated a
246	246	location for campus credit card marketing activities under Section
247	247	761.051 [761.051(b)] shall also adopt a policy requiring a credit
248	248	card and debt education and counseling session to be included in any
249	249	orientation program for new students. The postsecondary
250	250	educational institution may use existing educational materials
251	251	prepared by nonprofit entities for purposes of the credit card and
252	252	debt education and counseling session.
253	253	(b) If a postsecondary educational institution holds an
254	254	orientation program for new students, the institution's financial
255	255	aid office shall distribute the information pamphlet required by
256	256	Section 761.072(d) to students at the credit card and debt
257	257	education and counseling program session.
258	258	Sec. 761.151. CIVIL PENALTY; INJUNCTIVE RELIEF. (a) A
259	259	person who intentionally violates this chapter is liable to the
260	260	state for a civil penalty in an amount not to exceed $2,500 for each
261	261	violation.
262	262	(b) The attorney general or the prosecuting attorney in the
263	263	county in which the violation occurs may bring suit:
264	264	(1) to recover the civil penalty imposed under this
265	265	section; and
266	266	(2) for injunctive relief to compel a credit card
267	267	issuer to file an annual report under Section 761.071 and a
268	268	disclosure of credit card terms required under Section 761.072.
269	269	SECTION 7. (a) Sections 1, 2, and 3 of this Act take effect
270	270	only if the Act of the 81st Legislature, Regular Session, 2009,
271	271	relating to nonsubstantive additions to and corrections in existing
272	272	codes does not become law.
273	273	(b) Sections 4, 5, and 6 of this Act take effect only if the
274	274	Act of the 81st Legislature, Regular Session, 2009, relating to
275	275	nonsubstantive additions to and corrections in existing codes
276	276	becomes law.
277	277	SECTION 8. This Act takes effect September 1, 2009.