PRINTER'S NO. 2460
No. 1895 Session of 2001
INTRODUCED BY NICKOL, BELARDI, BELFANTI, BENNINGHOFF, BLAUM,
BROWNE, M. COHEN, CORRIGAN, CREIGHTON, CURRY, FICHTER,
FREEMAN, GEIST, GRUCELA, HARHAI, HENNESSEY, JAMES, KELLER,
KENNEY, LaGROTTA, LEDERER, LEVDANSKY, MANDERINO, MARSICO,
McILHATTAN, MELIO, R. MILLER, PETRONE, ROBERTS, RUBLEY,
SATHER, SAYLOR, SCHULER, SHANER, SOLOBAY, SURRA,
E. Z. TAYLOR, TIGUE, TRICH, WASHINGTON, WATSON AND ZIMMERMAN,
SEPTEMBER 5, 2001
REFERRED TO COMMITTEE ON EDUCATION, SEPTEMBER 5, 2001
AN ACT
1 Regulating the solicitation by credit card marketers of students
2 on college campuses for credit card applications; and
3 requiring institutions of higher education to adopt certain
4 credit card education programs.
5 The General Assembly of the Commonwealth of Pennsylvania
6 hereby enacts as follows:
7 Section 1. Short title.
8 This act shall be known and may be cited as the College
9 Campus Credit Card Solicitation Act.
10 Section 2. Definitions.
11 The following words and phrases when used in this act shall
12 have the meanings given to them in this section unless the
13 context clearly indicates otherwise:
14 "Board." The State Board of Education.
15 "College campus." The premises and grounds of an institution
16 of higher education.
1 "Credit card." Any card, plate or other single credit device
2 issued by a credit card marketer authorizing the holder thereof
3 to buy goods or services on credit. The term does not include a
4 check or similar instrument that can be used only once to obtain
5 a single credit extension.
6 "Credit card marketer." A person, corporation, financial
7 institution or business entity that promotes, offers or accepts
8 applications for a credit card.
9 "Gift." Any object received by a student from a credit card
10 marketer without consideration of equal or greater value which
11 is not generally associated or connected with the business of
12 credit cards.
13 "Institution of higher education" or "institution." Any of
14 the following:
15 (1) A community college operating under Article XIX-A of
16 the act of March 10, 1949 (P.L.30, No.14), known as the
17 Public School Code of 1949.
18 (2) A university within the State System of Higher
19 Education.
20 (3) The Pennsylvania State University.
21 (4) The University of Pittsburgh.
22 (5) Temple University.
23 (6) Lincoln University.
24 (7) Any other institution that is designated as "State-
25 related" by the Commonwealth.
26 (8) Any accredited private or independent college.
27 "Solicitation." An act of asking, enticing or requesting a
28 student to read, review or consider materials relating to an
29 application for a credit card or to complete an application for
30 a credit card.
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1 "Student." A person who is at least 18 years of age and who
2 attends an institution of higher education, whether enrolled on
3 a full-time or part-time basis.
4 Section 3. Registration prior to solicitation.
5 (a) General rule.--Prior to engaging in the solicitation of
6 a student on a college campus, a credit card marketer shall
7 register its intent to solicit the student for that purpose with
8 an appropriate official of the institution of higher education.
9 The registration shall include the principal place of business
10 of the credit card marketer and shall be in such form as
11 required by regulation of the Department of Education.
12 (b) Locations for solicitation.--Credit card issuers who are
13 registered under this section may only solicit students at a
14 limited number of specific locations on the college campus as
15 designated by the administration of the institution of higher
16 education.
17 Section 4. Debt collection against parent or guardian
18 prohibited.
19 It shall be unlawful for a credit card marketer to take any
20 debt collection action against the parent or legal guardian of a
21 student for whom a credit card has been issued unless the parent
22 or legal guardian has agreed in writing to be liable for the
23 debts of the student under the credit card agreement. A
24 violation of this section shall be construed as an unlawful
25 trade practice under the act of December 17, 1968 (P.L.1224,
26 No.387), known as the Unfair Trade Practices and Consumer
27 Protection Law.
28 Section 5. Prohibition of distribution of gifts.
29 It shall be unlawful for a credit card marketer to offer or
30 issue a student any gift in exchange for completion of a credit
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1 card application.
2 Section 6. Policy.
3 (a) General rule.--Within 180 days of the effective date of
4 this act, each institution of higher education shall adopt and
5 enforce a policy to regulate the marketing practices used on
6 college campuses by credit card marketers. The policy shall
7 require credit card marketers to fill out a registration form
8 that discloses any payments or inducements made to the
9 institution of higher education. The completed forms shall be
10 made available to the public, parents and students upon request.
11 (b) Effect of failure to adopt policy.--If an institution of
12 higher education fails to adopt the policy within the time
13 period set forth in this section, then credit card marketers
14 shall be prohibited from engaging in solicitation at those
15 college campuses.
16 Section 7. Credit card education program.
17 The board shall require each institution of higher education
18 to adopt a credit card education program to be incorporated into
19 freshman orientation programs. The program shall be mandatory
20 for each new student at the beginning of every semester.
21 Section 8. Effective date.
22 This act shall take effect in 60 days.
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