79R6228 CAS-F
By: Turner H.B. No. 2583
A BILL TO BE ENTITLED
AN ACT
relating to financial transaction awareness plans to be adopted by
public institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 51, Education Code, is
amended by adding Section 51.955 to read as follows:
Sec. 51.955. FINANCIAL TRANSACTION AWARENESS PLANS. (a)
In this section:
(1) "Credit card issuer" includes a representative of
a credit card issuer.
(2) "Governing board" has the meaning assigned by
Section 61.003.
(b) The governing board of each institution of higher
education shall develop and implement a financial transaction
awareness plan to:
(1) educate the institution's students concerning safe
and unsafe practices in financial transactions, especially credit
card transactions and solicitations for credit card applications;
and
(2) protect students from financial situations,
especially situations involving credit cards, that may negatively
affect student financial security or credit scores.
(c) A plan developed under Subsection (a) must:
(1) prohibit a credit card issuer from entering the
institution's campus to solicit or distribute credit card
applications unless the issuer, in the manner prescribed by the
plan, applies to participate in one or more solicitation events on
campus and receives the institution's written approval to
participate;
(2) as part of the application process under
Subdivision (1), require a credit card issuer to pay an annual fee
in an amount established by the plan;
(3) require the institution to use the money collected
under Subdivision (2) to provide to the institution's students
regular financial awareness events, including presentations on
financial matters, credit card counseling, and financial awareness
and management classes;
(4) require a credit card issuer to be sponsored by a
student organization as a condition of approving the issuer's
application to participate in solicitation events on campus;
(5) prohibit a credit card issuer from accepting a
student's completed application for a credit card during a
solicitation event;
(6) restrict on-campus distribution by credit card
issuers of free items or other incentives, including prizes; and
(7) require a credit card issuer to include
information on safe practices in credit card transactions as part
of any credit application provided to a student by the issuer.
SECTION 2. Not later than January 1, 2006, each public
institution of higher education shall develop and implement a
financial transaction awareness plan as required by Section 51.955,
Education Code, as added by this Act.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2005.