,i #aacth ,,congress #b;d ,session ,h4 ,r4 #dgad ,,in ,,the ,,house ,,of ,,representatives ,may #bb1 #bjad ,mr4 ,george ,miller of ,california 7for himself1 ,ms4 ,waters1 ,mr4 ,welch1 ,ms4 ,slaughter1 ,mr4 ,scott of ,virginia1 ,mr4 ,cummings1 ,mr4 ,waxman1 ,mr4 ,conyers1 ,mr4 ,tierney1 ,mrs4 ,davis of ,california1 ,mr4 ,grijalva1 ,mr4 ,bishop of ,new ,york1 ,mr4 ,sablan1 ,ms4 ,wilson of ,florida1 ,ms4 ,bonamici1 ,mr4 ,pocan1 ,mr4 ,takano1 ,mr4 ,ellison1 ,mr4 ,cartwright1 ,ms4 ,clarke of ,new ,york1 ,mr4 ,jeffries1 ,mr4 ,mc,dermott1 ,mr4 ,nadler1 ,ms4 ,pingree of ,maine1 ,mr4 ,huffman1 ,mr4 ,thompson of ,california1 ,ms4 ,lee of ,california1 ,ms4 ,lofgren1 ,ms4 ,chu1 ,mrs4 ,napolitano1 ,mr4 ,lowenthal1 ,ms4 ,brownley of ,california1 ,mr4 ,schiff1 ,ms4 ,bass1 ,mr4 ,enyart1 ,ms4 ,norton1 ,ms4 ,shea-,porter1 ,mr4 ,rangel1 ,mrs4 ,mc,carthy of ,new ,york1 ,mr4 ,butterfield1 ,ms4 ,eshoo1 ,mr4 ,meeks1 ,mr4 ,sarbanes1 ,mr4 ,hinojosa1 ,mr4 ,farr1 ,ms4 ,matsui1 ,mr4 ,danny ,k4 ,davis of ,illinois1 ,ms4 ,schakowsky1 ,mr4 ,carson of ,indiana1 ,ms4 ,speier1 ,ms4 ,brown of ,florida1 ,mr4 ,van ,hollen1 ,mr4 ,honda1 ,mr4 ,clay1 ,mr4 ,de,fazio1 ,ms4 ,frankel of ,florida1 ,ms4 ,fudge1 ,mr4 ,gene ,green of ,texas1 ,mr4 ,yarmuth1 ,mr4 ,braley of ,iowa1 ,mr4 ,rush1 and ,mr4 ,garamendi7 introduced the following bill2 which was referred to the ,committee on ,financial ,services1 and in addition to the ,committee on ,education and the ,workforce1 for a period to be subsequently determined by the ,speaker1 in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned ,a ,,bill ,to amend the ,higher ,education ,act of #aife to establish requirements for preferred banking arrangements1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,curbing ,abusive ,marketing ,practices with ,university ,student ,debit ,cards ,act or the ,,campus ,debit ,cards ,act4 #b4 ,preferred banking arrangements ,section #dhg of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajid7 is amended-- 7#a7 in subsection 7a71 by adding at the end the following new paragraph3 7#cj7 ,in the case of an institution that has entered into a preferred banking arrangement1 the institution will meet the requirements of subsection 7k74 2 7#b7 in subsection 7i71 by adding at the end the following new paragraph3 7#g7 ,preferred banking arrangement 7,a7 ,in general ,the term preferred banking arrangement means an arrangement or agreement between a financial institution and an institution of higher education under which the institution of higher education directly or indirectly recommends1 promotes1 or endorses to its students1 or requires the delivery of funds awarded under this ,act to its students through1 the deposit accounts or the general-use prepaid cards of the financial institution or the financial institution in general4 7,b7 ,financial terms ,for purposes of this paragraph-- 7i7 the terms bank and savings association have the definition given those terms1 respectively1 under section #c of the ,federal ,deposit ,insurance ,act 7#ab ,u4,s4,c4 #ahac72 7ii7 the term credit union means a ,federal credit union and a ,state credit union as those terms are defined1 respectively1 under section #aja of the ,federal ,credit ,union ,act 7#ab ,u4,s4,c4 #ageb72 7iii7 the term financial institution means a bank1 savings association1 credit union1 or a person who has entered into an agreement with a bank1 savings association1 or credit union2 and 7iv7 the term general-use prepaid card-- 7,i7 means a card or other payment code or device issued by any person that is-- 7aa7 redeemable at multiple merchants or service providers1 or automated teller machines2 7bb7 purchased or loaded on a prepaid basis2 and 7cc7 honored1 upon presentation1 by merchants for goods or services1 or at automated teller machines2 and 7,,ii7 does not include an electronic promise1 plastic card1 or payment code or device that is-- 7aa7 used solely for telephone services2 7bb7 a loyalty1 award1 or promotional gift card1 as defined by the ,secretary2 7cc7 issued in paper form only 7including for tickets and events72 or 7dd7 redeemable solely for admission to events or venues at a particular location or group of affiliated locations1 which may also include services or goods obtainable at the event or venue after admission or in conjunction with admission to such events or venues1 at specific locations affiliated with and in geographic proximity to the event or venue4 2 and 7#c7 by adding at the end the following new subsection3 7k7 ,requirements for preferred banking arrangement 7#a7 ,in general ,an institution of higher education that enters into a preferred banking arrangement with a financial institution shall-- 7,a7 develop a code of conduct with respect to the preferred banking arrangement with which the officers1 employees1 and agents of the institution of higher education shall comply1 that-- 7i7 prohibits a conflict of interest with the responsibilities of an officer1 employee1 or agent of the institution of higher education with respect to such arrangement2 7ii7 requires each such officer1 employee1 and agent to act in the best interests of the students enrolled at the institution of higher education in carrying out such arrangement2 and 7iii7 at a minimum1 includes the provisions described in paragraph 7#b72 7,b7 publish such code of conduct prominently on the website of the institution of higher education2 7,c7 administer such code by1 at a minimum1 requiring that all of the officers1 employees1 and agents of the institution of higher education with responsibilities with respect to the preferred banking arrangement be annually informed of the provisions of the code of conduct2 and 7,d7 provide effective enforcement of such code4 7#b7 ,code of conduct requirements ,the code of conduct requirements described in this paragraph are as follows3 7,a7 ,ban on revenue-sharing arrangements 7i7 ,prohibition ,the institution of higher education shall not enter into any revenue-sharing arrangement with any financial institution4 7ii7 ,definition ,for purposes of this subparagraph1 the term revenue-sharing arrangement-- 7,i7 means an arrangement between an institution of higher education and a financial institution under which-- 7aa7 a financial institution provides deposit accounts or general-use prepaid cards to students attending the institution of higher education or to the families of such students2 and 7bb7 the institution of higher education recommends1 promotes1 utilizes1 sponsors1 or otherwise endorses the financial institution or the deposit accounts or general-use prepaid cards of the financial institution and in exchange1 the financial institution pays a fee or provides other material benefits1 including revenue or profit sharing1 to the institution of higher education1 or an officer1 employee1 or agent of the institution of higher education2 and 7,,ii7 does not include an arrangement under which a financial institution pays a fair market price to an institution of higher education for the advertising or marketing of the financial institution to the general public by the institution of higher education4 7,b7 ,gift ban 7i7 ,prohibition ,no officer1 employee1 or agent of an institution of higher education who has responsibilities with respect to a preferred banking arrangement or has other responsibilities with respect to a financial institution shall solicit or accept any gift from the financial institution4 7ii7 ,definition ,in this subparagraph1 the term gift means any gratuity1 favor1 discount1 entertainment1 hospitality1 loan1 or other item having a monetary value of more than a de minimus amount4 ,the term includes a gift of services1 transportation1 lodging1 or meals1 whether provided in kind1 by purchase of a ticket1 payment in advance1 or reimbursement after the expense has been incurred4 7iii7 ,exceptions ,the term gift shall not include any of the following3 7,i7 ,standard material1 activities1 or programs on issues related to a loan1 default aversion1 default prevention1 or financial literacy1 such as a brochure1 a workshop1 or training1 but only if such materials1 activities1 or programs do not promote a product or service of a financial institution4 7,,ii7 ,favorable terms1 conditions1 and benefits on the financial products of the financial institution made available to all employees of the institution of higher education if such terms1 conditions1 or benefits are comparable to those provided to all students of the institution of higher education4 7,,iii7 ,entrance and exit counseling services provided to borrowers to meet the responsibilities of the institution of higher education for entrance and exit counseling as required by subsections 7b7 and 7l7 of section #dhe1 as long as-- 7aa7 the staff of the institution of higher education are in control of the counseling 7whether in person or via electronic capabilities72 and 7bb7 such counseling does not promote the products or services of any specific lender4 7,,iv7 ,philanthropic contributions to an institution of higher education from a financial institution that are unrelated to the deposit accounts or the general-use prepaid cards of the financial institution or the financial institution in general or any contribution from the financial institution that is not made in exchange for any advantage related to the financial institution4 7,v7 ,state education grants1 scholarships1 or financial aid funds administered by or on behalf of a ,state4 7iv7 ,rule for gifts to family members ,for purposes of this subparagraph1 a gift to a family member of an officer1 employee1 or agent of an institution of higher education1 or to any other individual based on that individual's relationship with the officer1 employee1 or agent1 shall be considered a gift to the officer1 employee1 or agent if-- 7,i7 the gift is given with the knowledge and acquiescence of the officer1 employee1 or agent2 and 7,,ii7 the officer1 employee1 or agent has reason to believe the gift was given because of the official position of the officer1 employee1 or agent4 7,c7 ,ban on staffing assistance 7i7 ,prohibition ,the institution of higher education shall not request or accept from any financial institution any assistance with any office or department of the institution of higher education4 7ii7 ,certain assistance permitted ,nothing in this paragraph shall be construed to prohibit the institution of higher education from requesting or accepting assistance from a financial institution related to-- 7,i7 professional development training for financial aid administrators2 7,,ii7 providing educational counseling materials1 financial literacy materials1 or debt management materials to borrowers1 provided that such materials disclose to borrowers the identification of any financial institution that assisted in preparing or providing such materials2 or 7,,iii7 staffing services on a short-term1 nonrecurring basis to assist the institution of higher education with financial aid-related functions during emergencies1 including ,state-declared or federally declared natural disasters1 federally declared national disasters1 and other localized disasters and emergencies identified by the ,secretary4 7,d7 ,contracting arrangements prohibited 7i7 ,in general ,except as provided in clause 7ii71 an officer1 employee1 or agent of an institution of higher education who has responsibilities with respect to a preferred banking arrangement or has other responsibilities with respect to a financial institution shall not accept from any financial institution any fee1 payment1 or other financial benefit 7including the opportunity to purchase stock7 as compensation for any type of consulting arrangement or other contract to provide services to or on behalf of the financial institution4 7ii7 ,exception ,clause 7i7 shall not prohibit an institution of higher education from permitting an officer1 employee1 agent1 or contractor of a financial institution to serve on a board of directors1 or as a trustee1 of the institution of higher education1 if the institution of higher education has a written conflict of interest policy that requires such a board member or trustee to recuse themselves from any decision regarding deposit or prepaid accounts or a preferred banking arrangement at the institution of higher education4 7,e7 ,interaction with students ,the institution of higher education shall not deny or cause unnecessary delay in the disbursement of a loan or grant under this title based on a student's selection of a particular financial institution4 7,f7 ,advisory board compensation ,an employee1 officer1 or agent of an institution of higher education who has responsibilities with respect to a preferred banking arrangement or has other responsibilities with respect to a financial institution1 and who serves on an advisory board1 commission1 or group established by a financial institution1 shall be prohibited from receiving anything of value from the financial institution1 except that the employee may be reimbursed for reasonable expenses incurred in serving on such advisory board1 commission1 or group4 4 #c4 ,disbursement of credit balance ,part ,g of title ,,iv of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is amended by adding at the end the following3 #dic;,e4 ,disbursement of credit balance 7a7 ,establishment of ,system for ,disbursement ,not later than #c years after the date of enactment of the ,,campus ,debit ,cards ,act1 each institution of higher education that enrolls a student who receives a grant or loan under this title shall establish a system for the disbursement of credit balances in accordance with subsection 7b74 7b7 ,electronic ,payment ,system ,each institution of higher education described in subsection 7a7 shall establish a system for disbursement of credit balances through electronic payments to a deposit account or a general-use prepaid card 7defined in section #dhg7;i77#g77 with the protections afforded under the ,electronic ,fund ,transfer ,act 7#ae ,u4,s4,c4 #afic et seq474 7c7 ,distribution ,options ,the ,secretary of ,education1 in consultation with the ,secretary of the ,treasury and the ,bureau of ,consumer ,financial ,protection1 shall conduct a pilot program on providing students with the option of receiving credit balances by using the ,treasury ,direct ,express system established under section #cccf of title #ca1 ,united ,states ,code1 or through any other low-cost alternative as determined by the ,secretary4 7d7 ,credit ,balance ,in this section1 the term credit balance means the amount of program funds under this title credited to a student's ledger account at an institution of higher education that exceed the amount assessed the student by the institution for allowable institutional charges1 as defined by the ,secretary4 4 #d4 ,preventing unfair and deceptive marketing of financial products to students of institutions of higher education 7a7 ,in general ,the ,consumer ,financial ,protection ,act of #bjaj is amended by inserting after section #ajca the following3 #ajca;,a4 ,preventing unfair and deceptive marketing of financial products to students of institutions of higher education 7a7 ,definitions ,in this section3 7#a7 ,financial institution ,the term financial institution means any institution that offers1 provides1 or issues financial products1 including banks1 savings associations1 and credit unions4 7#b7 ,institution of higher education ,the term institution of higher education has the meaning given that term in section #ajb of the ,higher ,education ,act of #aife 7#bj ,u4,s4,c4 #ajjb74 7b7 ,disclosure required 7#a7 ,disclosure by institutions of higher education ,an institution of higher education1 or an alumni organization or foundation affiliated with or related to an institution of higher education1 shall publicly disclose 7including on the website of such institution1 organization1 or foundation7 any contract or other agreement made with a financial institution for the purpose of marketing a financial product-- 7,a7 in the case of a contract or agreement entered into before the date of enactment of this section1 by not later than #ij days after such date of enactment2 and 7,b7 in the case of a contract or agreement entered into on or after such date of enactment1 by not later than #ij days after the institution1 organization1 or foundation enters into the contract or agreement4 7#b7 ,reports by financial institutions 7,a7 ,in general ,each financial institution shall submit an annual report to the ,bureau containing the terms and conditions of all contracts or other agreements made with an institution of higher education1 or an alumni organization or foundation affiliated with or related to an institution of higher education1 relating to any financial product offered to students at such institution of higher education4 7,b7 ,details of report ,the report under subparagraph 7,a7 shall include-- 7i7 any memorandum of understanding between or among the financial institution and an institution of higher education1 alumni organization1 or foundation that directly or indirectly relates to any aspect of any agreement referred to in subparagraph 7,a7 or controls or directs any obligations or distribution of benefits between or among any such entities2 7ii7 the amount of any payments from the financial institution to the institution of higher education1 alumni organization1 or foundation during the period covered by the report1 and the precise terms of any agreement under which such amounts are determined2 and 7iii7 the number of financial products covered by any such agreement that were originated during the period covered by the report1 and the total number of financial products covered by the agreement that were outstanding at the end of such period4 7,c7 ,aggregation of information ,the information required to be reported under subparagraph 7,a7 shall be aggregated with respect to each institution of higher education or alumni organization or foundation affiliated with or related to such institution of higher education4 7,d7 ,initial report ,the initial report required under subparagraph 7,a7 shall be submitted to the ,bureau not later than #a year after the date of enactment of this section4 7#c7 ,reports by ,bureau ,the ,bureau shall submit to ,congress1 and make available to the public1 an annual report that lists the information concerning the agreements submitted to the ,bureau under paragraph 7#b7 by each financial institution1 institution of higher education1 alumni organization1 or foundation4 7#d7 ,record repository ,the ,bureau shall establish and maintain on its publicly available website a central repository of all contracts and other agreements contained in reports received from financial institutions pursuant to this paragraph1 and such contracts and agreements shall be in a form that is easily accessible and retrievable by the public4 7c7 ,inducements prohibited ,no financial institution may offer to a student at an institution of higher education any tangible or intangible item to induce the student to apply1 purchase1 or obtain a financial product offered by the financial institution1 if the offer is made- 7#a7 on the campus of an institution of higher education2 7#b7 near the campus of an institution of higher education1 as determined by rule of the ,bureau2 or 7#c7 at an event sponsored by or related to an institution of higher education4 4 7b7 ,rulemaking required ,not later than the end of the #b-year period beginning on the date of the enactment of this ,act1 the ,bureau of ,consumer ,financial ,protection shall issue regulations identifying as unlawful unfair1 deceptive1 or abusive acts or practices in connection with any transaction with a consumer for a consumer financial product or service1 or the offering of a consumer financial product or service1 as described under section #ajca of the ,consumer ,financial ,protection ,act of #bjaj 7#ab ,u4,s4,c4 #eeca74 7c7 ,technical and conforming amendment ,the table of contents of the ,dodd-,frank ,wall ,street ,reform and ,consumer ,protection ,act is amended by adding after the item relating to section #ajca the following3 #ajca;,a4 ,preventing unfair and deceptive marketing of financial products to students of institutions of higher education4 4 #e4 ,study of financial product marketing 7a7 ,study ,the ,bureau of ,consumer ,financial ,protection shall carry out a study on the marketing of financial products to students enrolled in institutions of higher education4 ,such study shall include an analysis of-- 7#a7 the extent to which financial institutions use an institution of higher education's name1 emblem1 mascot1 logo1 or other words1 pictures1 or symbols readily identified with such institution of higher education in the marketing of financial products1 including deposit accounts1 general purpose reloadable prepaid cards1 and payment services2 7#b7 the extent to which institutions of higher education provide access to campus facilities and sponsored functions to financial institutions1 including orientation activities for new and prospective students2 and 7#c7 the extent to which agreements between financial institutions and institutions of higher education are accessible for inspection by students and their families4 7b7 ,report ,not later than the end of the #a-year period beginning on the date of the enactment of this ,act1 the ,bureau shall issue a report to the ,committees on ,education and the ,workforce and ,financial ,services of the ,house of ,representatives and the ,committees on ,health1 ,education1 ,labor1 and ,pensions and ,banking1 ,housing1 and ,urban ,affairs of the ,senate containing-- 7#a7 all findings and determinations made in carrying out the study required under subsection 7a72 and 7#b7 any legislative recommendations the ,bureau may have4 7c7 ,rulemaking ,if1 after conducting the study required under subsection 7a71 the ,bureau determines that financial products are not marketed to students enrolled in institutions of higher education in a fair manner1 the ,bureau shall issue regulations to ensure such products are marketed in a fair manner4 #f4 ,sense of ,congress ,it is the sense of the ,congress that financial products marketed to students enrolled in institutions of higher education should be presented in a fair and neutral manner4 #g4 ,definitions ,for purposes of this ,act1 the terms financial institution and institution of higher education have the meanings given the terms in section #ajca;,a of the ,consumer ,financial ,protection ,act of #bjaj1 as added by section #c of this ,act4