Requires every institution of higher education in the state to interview students who withdraw to determine whether such withdrawal is the result of credit card debt incurred by the student; requires such institutions to annually report to the governor, temporary president of the senate and speaker of the assembly on the number of students who withdraw because of credit card debt; requires that course of instruction on the implications of establishing a bad credit rating be given to newly entering students; requires such institutions to regulate the conduct of issuers of credit cards while on campus.
STATE OF NEW YORK
________________________________________________________________________
4575
2009-2010 Regular Sessions
IN ASSEMBLY
February 5, 2009
___________
Introduced by M. of A. P. RIVERA, ORTIZ -- Multi-Sponsored by -- M. of
A. ALFANO, BACALLES, BARRA, CALHOUN, COOK, CYMBROWITZ, DINOWITZ,
ESPAILLAT, FINCH, GREENE, HEASTIE, MAGEE, McDONOUGH, McENENY, MILLMAN,
J. RIVERA, N. RIVERA, ROBINSON, TOWNS, TOWNSEND -- read once and
referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to requiring institutions
of higher education to maintain and report information on students
withdrawing from such institutions because of credit card debt, and to
provide new students a course of instruction on the implications of
establishing a bad credit rating, and authorizing such institutions to
regulate the on campus activities of credit card issuers; and provid-
ing for the repeal of certain provisions upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 6430 of the education law is amended by adding two
2 new subdivisions 7 and 8 to read as follows:
3 7. a. The trustees or other governing body of every institution of
4 higher education in this state shall adopt and implement rules and regu-
5 lations requiring that every student who withdraws from such institu-
6 tion, for a reason other than death or graduation, be interviewed to
7 determine whether such withdrawal was caused by credit card debt
8 incurred by the student. Such rules and regulations shall require the
9 maintenance of records of those students withdrawing as the result of
10 credit card debt.
11 b. Each such institution shall annually submit a report, on or before
12 the fifteenth day of October, to the governor, temporary president of
13 the senate and speaker of the assembly on the number of students who
14 have withdrawn from the institution during the immediately preceding
15 academic year.
16 c. The trustees or other governing body of every institution of higher
17 education in this state shall establish a course of instruction, to be
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06642-01-9
A. 4575 2
1 administered during the orientation of all newly admitted students, on
2 the implications of establishing a bad credit rating. Such course of
3 instruction shall constitute a credit course.
4 d. For the purposes of this subdivision, "credit card" shall have the
5 same meaning as ascribed to such term by section five hundred eleven of
6 the general business law.
7 8. a. The trustees or other governing body of every institution of
8 higher education in this state shall adopt and implement rules and regu-
9 lations:
10 (1) prohibiting issuers of credit cards, while on the campus of such
11 institution, from offering any incentive to students who agree to apply
12 for a credit card;
13 (2) requiring every issuer of credit cards to register with the insti-
14 tution prior to any solicitation upon the campus thereof; and
15 (3) requiring every issuer of credit cards to provide debt education
16 materials at each on campus site for the solicitation of the issuance of
17 a credit card.
18 b. The requirements of this subdivision shall be deemed to be in addi-
19 tion to the requirements applicable to issuers of credit cards pursuant
20 to any other provision of law.
21 c. The terms "credit card" and "issuer" shall have the same meanings
22 as are ascribed to such terms by section five hundred eleven of the
23 general business law.
24 § 2. This act shall take effect on the ninetieth day after it shall
25 have become a law, provided that paragraph b of subdivision 7 of section
26 6430 of the education law, as added by section one of this act, shall
27 expire and be deemed repealed October 16, 2012.
