S T A T E   O F   N E W   Y O R K
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                                  8057

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                              June 5, 2015
                               ___________

Introduced  by  M. of A. ARROYO, CRESPO -- 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:

  Section 1. Section 6430 of the education law is amended by adding  two
new subdivisions 7 and 8 to read as follows:
  7.  A.  THE  TRUSTEES  OR OTHER GOVERNING BODY OF EVERY INSTITUTION OF
HIGHER EDUCATION IN THIS STATE SHALL ADOPT AND IMPLEMENT RULES AND REGU-
LATIONS REQUIRING THAT EVERY STUDENT WHO WITHDRAWS  FROM  SUCH  INSTITU-
TION,  FOR  A  REASON  OTHER THAN DEATH OR GRADUATION, BE INTERVIEWED TO
DETERMINE WHETHER  SUCH  WITHDRAWAL  WAS  CAUSED  BY  CREDIT  CARD  DEBT
INCURRED  BY  THE  STUDENT. SUCH RULES AND REGULATIONS SHALL REQUIRE THE
MAINTENANCE OF RECORDS OF THOSE STUDENTS WITHDRAWING AS  THE  RESULT  OF
CREDIT CARD DEBT.
  B.  EACH SUCH INSTITUTION SHALL ANNUALLY SUBMIT A REPORT, ON OR BEFORE
THE FIFTEENTH DAY OF OCTOBER, TO THE GOVERNOR,  TEMPORARY  PRESIDENT  OF
THE  SENATE  AND  SPEAKER  OF THE ASSEMBLY ON THE NUMBER OF STUDENTS WHO
HAVE WITHDRAWN FROM THE INSTITUTION  DURING  THE  IMMEDIATELY  PRECEDING
ACADEMIC YEAR.
  C. THE TRUSTEES OR OTHER GOVERNING BODY OF EVERY INSTITUTION OF HIGHER
EDUCATION  IN  THIS STATE SHALL ESTABLISH A COURSE OF INSTRUCTION, TO BE
ADMINISTERED DURING THE ORIENTATION OF ALL NEWLY ADMITTED  STUDENTS,  ON
THE  IMPLICATIONS  OF  ESTABLISHING  A BAD CREDIT RATING. SUCH COURSE OF
INSTRUCTION SHALL CONSTITUTE A CREDIT COURSE.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09995-01-5
              

A. 8057                             2

  D. FOR THE PURPOSES OF THIS SUBDIVISION, "CREDIT CARD" SHALL HAVE  THE
SAME  MEANING AS ASCRIBED TO SUCH TERM BY SECTION FIVE HUNDRED ELEVEN OF
THE GENERAL BUSINESS LAW.
  8.  A.  THE  TRUSTEES  OR OTHER GOVERNING BODY OF EVERY INSTITUTION OF
HIGHER EDUCATION IN THIS STATE SHALL ADOPT AND IMPLEMENT RULES AND REGU-
LATIONS:
  (1) PROHIBITING ISSUERS OF CREDIT CARDS, WHILE ON THE CAMPUS  OF  SUCH
INSTITUTION,  FROM OFFERING ANY INCENTIVE TO STUDENTS WHO AGREE TO APPLY
FOR A CREDIT CARD;
  (2) REQUIRING EVERY ISSUER OF CREDIT CARDS TO REGISTER WITH THE INSTI-
TUTION PRIOR TO ANY SOLICITATION UPON THE CAMPUS THEREOF; AND
  (3) REQUIRING EVERY ISSUER OF CREDIT CARDS TO PROVIDE  DEBT  EDUCATION
MATERIALS AT EACH ON CAMPUS SITE FOR THE SOLICITATION OF THE ISSUANCE OF
A CREDIT CARD.
  B. THE REQUIREMENTS OF THIS SUBDIVISION SHALL BE DEEMED TO BE IN ADDI-
TION  TO THE REQUIREMENTS APPLICABLE TO ISSUERS OF CREDIT CARDS PURSUANT
TO ANY OTHER PROVISION OF LAW.
  C. THE TERMS "CREDIT CARD" AND "ISSUER" SHALL HAVE THE  SAME  MEANINGS
AS  ARE  ASCRIBED  TO  SUCH  TERMS BY SECTION FIVE HUNDRED ELEVEN OF THE
GENERAL BUSINESS LAW.
  S 2. This act shall take effect on the ninetieth day  after  it  shall
have become a law, provided that paragraph b of subdivision 7 of section
6430  of  the  education law, as added by section one of this act, shall
expire and be deemed repealed October 16, 2018.