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.