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RECALLED
June 4, 2001
H. 3595
Introduced by Reps. Thompson, A. Young, Hinson, Law, Limehouse, Littlejohn, Meacham-Richardson, Sandifer and White
S. Printed 6/4/01--S.
Read the first time May 17, 2001.
EXPLANATION OF IMPACT:
The Commission Higher Education has reviewed this bill and indicated that passage may have a minimal impact on the public institution's of this state but indicates the costs could be absorbed within existing resources. There would be no impact on federal and/or other funds.
Approved By:
Don Addy
Office of State Budget
TO AMEND CHAPTER 2, TITLE 37, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO LIMITATIONS ON AGREEMENTS AND PRACTICES IN CONNECTION WITH CONSUMER CREDIT SALES AND CHAPTER 3, TITLE 37, RELATING TO LIMITATIONS ON CONSUMER LOAN AGREEMENTS, BY ADDING SECTIONS 37-2-418 AND 37-3-418, BOTH SO AS TO PROVIDE FOR SPECIFIC RESTRICTIONS ON THE DISTRIBUTION OF APPLICATIONS AND ADVERTISING AND ANY OTHER FORM OF SOLICITATION FOR OWNERSHIP OF A SELLER CREDIT CARD OR A LENDER CREDIT CARD BY A CREDIT CARD ISSUER ON THE CAMPUS OF A PUBLIC INSTITUTION OF HIGHER LEARNING IN THE STATE.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Chapter 103 of Title 59 of the 1976 Code is amended by adding:
"Section 59-103-200. (A) A public institution of higher learning, as defined in Section 59-103-5, in this State must develop, maintain, and enforce a creditor-marketing policy regulating the distribution of applications, promotion, marketing, and other forms of solicitation for ownership of a credit card by a credit card marketer on its campus. This creditor-marketing policy must be filed with the South Carolina Commission on Higher Education. The Commission on Higher Education must maintain a master file of all creditor-marketing policies and make the information available for public inspection.
(B) In preparing and adopting the policy, the board of trustees or its designee must consider, but is not limited to, considering:
(1) registering on-campus credit card marketers;
(2) limiting credit card marketers to specific designated college campus sites;
(3) providing a credit card debt education brochure with each campus bookstore purchase;
(4) developing a credit card debt education presentation as a part of orientation programs offered to new students; and
(5) prohibiting credit card marketers from offering gifts to students in exchange for completing a credit card application unless the student has been given a credit card debt education brochure.
(C) A public institution of higher learning in this State, as described in Section 59-103-5, that has not adopted the policy required in subsection (A) may not allow a credit card marketer to distribute applications or promotional or marketing materials, or otherwise solicit for ownership of a credit card on its campus, and a credit card marketer is prohibited from distributing applications or promotional or marketing materials, or otherwise soliciting for ownership of a credit card on the campus of a public institution of higher learning in this State that has not adopted the policy required in subsection (A).
(D) This section does not apply to:
(1) solicitation by a financial institution or credit union physically located on a campus wherein normal banking activities are conducted if the solicitation takes place within its office;
(2) solicitations by mail, e-mail, or telephone; or
(3) contracts between institutions and creditors in existence on the date of this act."
SECTION 2. This act takes effect on the first day of the third month following approval by the Governor.
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