BILL REQ. #: H-2155.1

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SUBSTITUTE HOUSE BILL 1894
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State of Washington

59th Legislature

2005 Regular Session

By House Committee on Financial Institutions & Insurance (originally sponsored by Representatives Chase, Strow, Williams, Kirby, Ericks, Ormsby, Morrell and Haigh)

READ FIRST TIME 02/28/05.

AN ACT Relating to the development of policies regarding the marketing or merchandising of credit cards to students at the state's institutions of higher education; and adding a new section to chapter 28B.10 RCW.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   A new section is added to chapter 28B.10 RCW to read as follows:
     (1)(a) Subject to subsection (2) of this section, institutions of higher education shall develop policies regarding the marketing or merchandising of credit cards on institutional property to students, except as provided in newspapers, magazines, or similar publications or within any location of a financial services business regularly doing business on the institution's property.
     (b) "Merchandising" means the offering of free merchandise or incentives to students as part of the credit card marketing effort.
     (c) "Student" means any student enrolled for one or more credit hours at an institution of higher education.
     (2) Institutions of higher education shall each develop official credit card marketing policies. The process of development of these policies must include consideration of student comments. The official credit card marketing policies must, at a minimum, include consideration of and decisions regarding:
     (a) The registration of credit card marketers;
     (b) Limitations on the times and locations of credit card marketing; and
     (c) Prohibitions on material inducements to complete a credit card application unless the student has been provided credit card debt education literature, which includes, but is not limited to, brochures of written or electronic information.
     (3)(a) The policies shall include the following elements: A requirement for credit card marketers to inform students about good credit management practices through programs developed in concert with the institution of higher education; and
     (b) A requirement to make the official credit card marketing policy available to all students upon their request.

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