,,ii #aac? ,,congress #b;d ,session ,s4 #bche ,,9 ,,! ,,s5ate ,,( ,,! ,,unit$ ,,/ates ,may #bb1 #bjad ,mr4 ,h>k9 7= himself1 ,mr4 ,durb91 & ,ms4 ,w>r57 introduc$ ! foll[+ bill2 :i* 0 read twice & ref]r$ to ! ,committee on ,heal?1 ,education1 ,labor1 & ,p5sions ,a ,,bill ,to am5d ! ,high] ,education ,act ( #aife & ! ,tru? 9 ,l5d+ ,act to provide = disclosure & codes ( conduct ) respect to consum] f9ancial products or s]vices & in/itutions ( high] education4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,protect+ ,aid = ,/ud5ts ,act ( #bjad4 #b4 ,disbursem5t ( cr$it balance ,"p ,g ( title ,,iv ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajhh et seq47 is am5d$ by add+ at ! end ! foll[+3 #dic;,e4 ,disbursem5t ( cr$it balance 7a7 ,cr$it balance ,9 ?is section1 ! t]m cr$it balance means ! am\nt ( program funds "u ?is title cr$it$ to a /ud5t's l$g] acc\nt at ! in/itution ( high] education t exce$ ! am\nt assess$ ! /ud5t by ! in/itution = all[able in/itutional *>ges1 z def9$ by ! ,secret>y4 7b7 ,e/abli%m5t ( sy/em = disbursem5t ,n lat] ?an #c ye>s aft] ! date ( enactm5t ( ! ,protect+ ,aid = ,/ud5ts ,act ( #bjad1 ea* in/itution ( high] education t enrolls a /ud5t :o receives a grant or loan "u ?is title %all e/abli% a sy/em = ! disbursem5t ( cr$it balances 9 accordance ) subsection 7c74 7c7 ,electronic paym5t sy/em 7#a7 ,9 g5]al ,ea* in/itution ( high] education describ$ 9 subsection 7b7 %all e/abli% a sy/em = disbursem5t ( cr$it balances ?r\gh electronic paym5ts to a deposit acc\nt or a g5]al use prepaid c>d ) ! protections af=d$ "u ! ,electronic ,fund ,transf] ,act 7#ae ,u4,s4,c4 #afic et seq474 7#b7 ,no pref]r$ f9ancial in/itution or d5ial or delay ,9 c>ry+ out ! sy/em "u p>agraph 7#a71 an in/itution ( high] education %all n-- 7,a7 require or enc\rage a /ud5t to select a p>ticul> f9ancial in/itution to :i* an electronic paym5t "u ?is section %all be made2 or 7,b7 d5y or cause a delay 9 ! disbursem5t ( cr$it balances bas$ on ! selection by a /ud5t ( a p>ticul> f9ancial in/itution4 7d7 ,di/ribution options 7#a7 ,pilot program ,! ,secret>y ( ,education1 9 consultation ) ! ,secret>y ( ! ,treasury & ! ,director ( ! ,bureau ( ,consum] ,f9ancial ,protection1 %all conduct a pilot program on provid+ /ud5ts ) ! option ( receiv+ cr$it balances1 ?r\gh ! electronic paym5t sy/em ( ! in/itution ( high] education 9 accordance ) subsection 7c71 by us+ ! ,treasury ,direct ,express sy/em e/abli%$ "u section #cccf ( title #ca1 ,unit$ ,/ates ,code1 or ?r\gh any o!r l[-co/ alt]native z det]m9$ by ! ,secret>y4 7#b7 ,implem5tation ,if ! ,secret>y ( ,education1 aft] conduct+ ! pilot program describ$ 9 p>agraph 7#a71 det]m9es t all[+ /ud5ts ) cr$it balances to use any option describ$ 9 su* p>agraph is 9 ! be/ int]e/ ( /ud5ts1 ! ,secret>y %all take su* actions z are necess>y to provide any su* option to /ud5ts1 :i* may include ent]+ into agreem5ts ) ! ,secret>y ( ,treasury or o!r entity to implem5t ?is p>agraph4 4 #c4 ,code ( conduct 9 affiliat$ consum] f9ancial products or s]vices ,"p ,b ( title ,i ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajaa et seq47 is am5d$ by add+ at ! end ! foll[+3 #abd4 ,code ( conduct 9 affiliat$ consum] f9ancial products or s]vices 7a7 ,def9itions ,9 ?is section3 7#a7 ,affiliat$ 7,a7 ,9 g5]al ,! t]m affiliat$1 :5 us$ ) respect to a consum] f9ancial product or s]vice & an in/itution ( high] education1 means an association betwe5 su* in/itution & product or s]vice result+ f-- 7i7 ! "n1 emblem1 mascot1 or logo ( ! in/itution be+ us$ ) respect to su* product or s]vice2 or 7ii7 "s o!r ^w1 picture1 or symbol readily id5tifi$ ) ! in/itution 9 ! m>ket+ ( ! consum] f9ancial product or s]vice 9 any way t implies t ! in/itution endorses ! consum] f9ancial product or s]vice4 7,b7 ,rule ( con/ruction ,no?+ 9 subp>agraph 7,a7 %all be con/ru$ to deem an association betwe5 an in/itution ( high] education & a consum] f9ancial product or s]vice to be affiliat$ if su* association is solely bas$ on an adv]tisem5t by a f9ancial in/itution t is deliv]$ to a wide & g5]al audi5ce consi/+ ( m ?an enroll$ /ud5ts at ! in/itution ( high] education4 7#b7 ,associat$ individual ,! t]m associat$ individual1 :5 us$ ) respect to an in/itution ( high] education1 means an individual :o is-- 7,a7 an (fic] ( su* in/itution ( high] education2 7,b7 an employee or ag5t ( ! in/itution ( high] education :o is involv$ 9 ! contract+1 approval1 analysis1 or decisionmak+ process = an affiliat$ consum] f9ancial product or s]vice2 or 7,c7 an employee or ag5t ( ! in/itution ( high] education involv$ 9 ! m>ket+ or solicitation process p]ta9+ to an affiliat$ consum] f9ancial product or s]vice4 7#c7 ,consum] f9ancial product or s]vice ,! t]m consum] f9ancial product or s]vice has ! mean+ giv5 ! t]m 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha74 7#d7 ,f9ancial in/itution ,! t]m f9ancial in/itution has ! mean+ giv5 ! t]m 9 section #adj;,b ( ! ,tru? 9 ,l5d+ ,act4 7#e7 ,in/itution ( high] education ,! t]m in/itution ( high] education means an in/itution ( high] education z def9$ 9 section #ajb4 7b7 ,code ( conduct ,not)/&+ any o!r provision ( law1 no in/itution ( high] education t is affiliat$ ) a consum] f9ancial product or s]vice %all be eligible to receive funds or any o!r =m ( f9ancial assi/ance "u ?is ,act1 unless ! in/itution-- 7#a7 develops a code ( conduct ) respect to affiliat$ consum] f9ancial products or s]vices ) :i* associat$ individuals %all comply t-- 7,a7 prohibits a conflict ( int]e/ ) ! responsibility ( an associat$ individual ) respect to su* affiliat$ consum] f9ancial product or s]vices2 7,b7 requires ea* associat$ individual to act 9 ! be/ int]e/ ( ! /ud5ts enroll$ at ! in/itution ( high] education 9 c>ry+ out _! duties2 & 7,c7 at a m9imum1 is align$ ) ! requirem5ts & prohibitions describ$ "u subsections 7c7 ?r\gh 7g72 7#b7 publi%es su* code ( conduct prom95tly on ! in/itution's website2 & 7#c7 adm9i/]s & en=ces su* code by1 at a m9imum1 requir+ t all ( ! in/itution's associat$ individuals be annually in=m$ ( ! provisions ( ! code ( conduct4 7c7 ,ban on rev5ue-,%>+ arrangem5ts 7#a7 ,prohibition ,an in/itution ( high] education t is affiliat$ ) a consum] f9ancial product or s]vice %all n ent] into any rev5ue-%>+ arrangem5t ) ! f9ancial in/itution4 7#b7 ,def9ition ,9 ?is subsection1 ! t]m rev5ue-%>+ arrangem5t-- 7,a7 means an arrangem5t betwe5 an in/itution ( high] education & a f9ancial in/itution "u :i*-- 7i7 ! f9ancial in/itution provides or issues a consum] f9ancial product or s]vice to /ud5ts att5d+ ! in/itution ( high] education2 7ii7 ! in/itution ( high] education recomm5ds1 promotes1 sponsors1 or o!rwise endorses ! f9ancial in/itution1 or ! consum] f9ancial products or s]vices (f]$ by ! f9ancial in/itution2 & 7iii7 ! f9ancial in/itution pays a fee or provides o!r mat]ial b5efits1 includ+ rev5ue or pr(it %>+1 to ! in/itution ( high] education 9 connection ) ! consum] f9ancial products or s]vices provid$ to /ud5ts ( ! in/itution ( high] education2 & 7,b7 does n include an arrangem5t "u :i* a f9ancial in/itution pays a fair m>ket price to an in/itution ( high] education = ! adv]tis+ or m>ket+ ( ! f9ancial in/itution to ! g5]al public by ! in/itution ( high] education4 7d7 ,gift ban 7#a7 ,prohibition ,no associat$ individual ( an in/itution ( high] education %all solicit or accept any gift f a f9ancial in/itution t has a consum] f9ancial product or s]vice ) :i* ! in/itution is affiliat$4 7#b7 ,def9ition ( gift 7,a7 ,9 g5]al ,9 ?is subsection1 ! t]m gift means any gratuity1 favor1 disc\nt1 ent]ta9m5t1 hospitality1 loan1 or o!r item hav+ a monet>y value ( m ?an a de m9imus am\nt4 ,! t]m includes a gift ( s]vices1 transportation1 lodg+1 or meals1 :e!r provid$ 9 k9d1 by pur*ase ( a ticket1 paym5t 9 advance1 or reimbursem5t aft] ! exp5se has be5 incurr$4 7,b7 ,exceptions ,! t]m gift %all n include any ( ! foll[+3 7i7 ,/&>d mat]ial1 activities1 or programs on issues relat$ to a consum] f9ancial product or s]vice or f9ancial lit]acy1 su* z a bro*ure1 a work%op1 or tra9+4 ,su* mat]ial1 tra9+1 or program %all n promote a product or s]vice ( any specific f9ancial in/itution4 7ii7 ,food1 refre%m5ts1 tra9+1 or in=mational mat]ial furni%$ to an associat$ individual z an integral "p ( a tra9+ session t is design$ to improve ! s]vice ( a f9ancial in/itution to ! in/itution ( high] education1 if su* tra9+ contributes to ! pr(essional developm5t ( ! associat$ individual4 7iii7 ,favorable t]ms1 conditions1 & borr[] b5efits on a consum] f9ancial product or s]vice provid$ to all employees ( ! in/itution ( high] education if su* t]ms1 conditions1 or b5efits are comp>able to ^? provid$ to all /ud5ts ( ! in/itution4 7iv7 ,philan?ropic contributions to an in/itution ( high] education f a f9ancial in/itution t are unrelat$ to ! affiliat$ consum] f9ancial product or s]vice or ! f9ancial in/itution 9 g5]al or any contribution f ! f9ancial in/itution t is n made 9 ex*ange = any advantage relat$ to ! f9ancial in/itution4 7,c7 ,rule = gifts to family memb]s ,= purposes ( ?is subsection1 a gift to a family memb] ( an associat$ individual ( an in/itution ( high] education %all be consid]$ a gift to ! associat$ individual if-- 7i7 ! gift is giv5 ) ! k & acquiesc5ce ( ! associat$ individual2 & 7ii7 ! associat$ individual has reason to believe ! gift 0 giv5 because ( ! (ficial position ( ! associat$ individual4 7e7 ,contract+ arrangem5ts prohibit$ 7#a7 ,prohibition ,no associat$ individual ( an in/itution ( high] education %all accept f a f9ancial in/itution t has a consum] f9ancial product or s]vice ) :i* ! in/itution is affiliat$ a fee1 paym5t1 or o!r f9ancial b5efit 7includ+ ! opportunity to pur*ase /ock7 z comp5sation = any type ( consult+ arrangem5t or o!r contract to provide s]vices to ! f9ancial in/itution or on behalf ( ! f9ancial in/itution4 7#b7 ,rule ( con/ruction ,no?+ 9 ?is subsection %all be con/ru$ z prohibit+ ! conduct ( an individual :o is n an associat$ individual4 7f7 ,ban on /aff+ assi/ance ,an in/itution ( high] education %all n reque/ or accept f a f9ancial in/itution ) :i* ! in/itution has an affiliat$ consum] f9ancial product or s]vice any assi/ance ) call c5t] /aff+1 f9ancial aid (fice /aff+1 or any o!r (fice or dep>tm5t ( ! in/itution ( high] education4 7g7 ,advisory bo>d comp5sation ,any associat$ individual ( an in/itution ( high] education :o s]ves on an advisory bo>d1 commission1 or gr\p e/abli%$ by a f9ancial in/itution t has a consum] f9ancial product or s]vice ) :i* ! in/itution is affiliat$ %all be prohibit$ f receiv+ any?+ ( value f ! f9ancial in/itution1 except t ! individual may be reimburs$ = reasonable exp5ses incurr$ 9 s]v+ on su* advisory bo>d1 commission1 or gr\p4 4 #d4 ,rev5ue %>+ & disclosure ( affiliation ,*apt] #b ( title ,i ( ! ,tru? 9 ,l5d+ ,act 7#ae ,u4,s4,c4 #afca et seq47 is am5d$ by add+ at ! end ! foll[+3 #adj;,b4 ,prev5t+ unfair & deceptive m>ket+ ( consum] f9ancial products & s]vices to /ud5ts ( in/itutions ( high] education 7a7 ,def9itions ,9 ?is section3 7#a7 ,affiliate ,! t]m affiliate means any p]son t controls1 is controll$ by1 or is "u common control ) ano!r p]son4 7#b7 ,affiliat$ 7,a7 ,9 g5]al ,! t]m affiliat$1 :5 us$ ) respect to a consum] f9ancial product or s]vice & an in/itution ( high] education1 means an association betwe5 su* in/itution & product or s]vice result+ f-- 7i7 ! "n1 emblem1 mascot1 or logo ( ! in/itution be+ us$ ) respect to su* product or s]vice2 or 7ii7 "s o!r ^w1 picture1 or symbol readily id5tifi$ ) ! in/itution 9 ! m>ket+ ( ! consum] f9ancial product or s]vice 9 any way t implies t ! in/itution endorses ! consum] f9ancial product or s]vice4 7,b7 ,rule ( con/ruction ,no?+ 9 subp>agraph 7,a7 %all be con/ru$ to deem an association betwe5 an in/itution ( high] education & a consum] f9ancial product or s]vice to be affiliat$ if su* association is solely bas$ on an adv]tisem5t by a f9ancial in/itution t is deliv]$ to a wide & g5]al audi5ce consi/+ ( m ?an enroll$ /ud5ts at ! in/itution ( high] education4 7#c7 ,consum] f9ancial product or s]vice ,! t]m consum] f9ancial product or s]vice has ! mean+ giv5 ! t]m 9 section #ajjb ( ! ,consum] ,f9ancial ,protection ,act ( #bjaj 7#ab ,u4,s4,c4 #edha74 7#d7 ,f9ancial in/itution ,! t]m f9ancial in/itution means-- 7,a7 any p]son t engages 9 (f]+ or provid+ a consum] f9ancial product or s]vice2 & 7,b7 any affiliate ( su* p]son describ$ 9 subp>agraph 7,a7 if su* affiliate acts z a s]vice provid] to su* p]son4 7#e7 ,in/itution ( high] education ,! t]m in/itution ( high] education has ! mean+ giv5 ! t]m 9 section #ajb ( ! ,high] ,education ,act ( #aife 7#bj ,u4,s4,c4 #ajjb74 7#f7 ,p]son ,! t]m p]son means an individual1 p>tn]%ip1 company1 corporation1 association 7incorporat$ or un9corporat$71 tru/1 e/ate1 coop]ative organization1 or o!r entity4 7#g7 ,rev5ue-%>+ arrangem5t ,! t]m rev5ue-%>+ arrangem5t-- 7,a7 means an arrangem5t betwe5 an in/itution ( high] education & a f9ancial in/itution "u :i*-- 7i7 a f9ancial in/itution provides or issues a consum] f9ancial product or s]vice to college /ud5ts att5d+ ! in/itution ( high] education2 7ii7 ! in/itution ( high] education recomm5ds1 promotes1 sponsors1 or o!rwise endorses ! f9ancial in/itution1 or ! consum] f9ancial products or s]vices (f]$ by ! f9ancial in/itution2 & 7iii7 ! f9ancial in/itution pays a fee or provides o!r mat]ial b5efits1 includ+ rev5ue or pr(it %>+1 to ! in/itution ( high] education1 or to an (fic]1 employee1 or ag5t ( ! in/itution ( high] education1 9 connection ) ! consum] f9ancial products & s]vices provid$ to college /ud5ts att5d+ ! in/itution ( high] education2 & 7,b7 does n include an arrangem5t "u :i* a f9ancial in/itution pays a fair m>ket price to an in/itution ( high] education = ! adv]tis+ or m>ket+ ( ! f9ancial in/itution to ! g5]al public by ! in/itution ( high] education4 7#h7 ,s]vice provid] ,! t]m s]vice provid]-- 7,a7 means any p]son t provides a mat]ial s]vice to ano!r p]son 9 connection ) ! (f]+ or provision by su* o!r p]son ( a consum] f9ancial product or s]vice1 includ+ a p]son t-- 7i7 p>ticipates 9 design+1 op]at+1 or ma9ta9+ ! consum] f9ancial product or s]vice2 or 7ii7 processes transactions relat+ to ! consum] f9ancial product or s]vice 7o!r ?an unkn[+ly or incid5tally transmitt+ or process+ f9ancial data 9 a mann] t su* data is undiff]5tiat$ f o!r types ( data ( ! same =m z ! p]son transmits or processes72 & 7,b7 does n include a p]son solely by virtue ( su* p]son (f]+ or provid+ to ano!r p]son-- 7i7 a support s]vice ( a type provid$ to bus9esses g5]ally or a simil> m9i/]ial s]vice2 or 7ii7 "t or space = an adv]tisem5t = a consum] f9ancial product or s]vice ?r\gh pr9t1 newspap]1 or electronic m$ia4 7b7 ,disclosure ( affiliation 7#a7 ,reports by f9ancial in/itutions 7,a7 ,9 g5]al ,n lat] ?an #ahj days aft] ! date ( enactm5t ( ! ,protect+ ,aid = ,/ud5ts ,act ( #bjad1 & annually !reaft]1 ea* f9ancial in/itution %all submit a report to ! ,bureau conta9+ ! t]ms & conditions ( all bus9ess1 m>ket+1 & promotional agreem5ts t ! f9ancial in/itution has ) any in/itution ( high] education1 or an alumni organization or f\ndation t is an affiliate ( or relat$ to an in/itution ( high] education1 relat+ to any consum] f9ancial product or s]vice (f]$ to college /ud5ts at in/itutions ( high] education4 7,b7 ,details ( report ,! in=mation requir$ to be report$ "u subp>agraph 7,a7 includes-- 7i7 any memor&um ( und]/&+ betwe5 or among ! f9ancial in/itution & an in/itution ( high] education1 alumni association1 or f\ndation t directly or indirectly relates to any aspect ( an agreem5t ref]r$ to 9 subp>agraph 7,a7 or controls or directs any obligations or di/ribution ( b5efits betwe5 or among ! entities2 & 7ii7 ! numb] & doll> am\nt out/&+ ( consum] f9ancial products or s]vices acc\nts cov]$ by any su* agreem5t t 7 orig9at$ dur+ ! p]iod cov]$ by ! report1 & ! total numb] & doll> am\nt ( consum] f9ancial products or s]vices acc\nts cov]$ by ! agreem5t t 7 out/&+ at ! end ( su* p]iod4 7,c7 ,aggregation by in/itution ,! in=mation requir$ to be report$ "u subp>agraph 7,a7 %all be aggregat$ ) respect to ea* in/itution ( high] education or alumni organization or f\ndation t is an affiliate ( or relat$ to ! in/itution ( high] education4 7#b7 ,reports by ,bureau ,! ,bureau %all submit to ,congress1 & make available to ! public1 an annual report t li/s ! in=mation submitt$ to ! ,bureau "u p>agraph 7#a74 7#c7 ,electronic disclosures 7,a7 ,po/+ agreem5ts ,ea* f9ancial in/itution %all e/abli% & ma9ta9 an ,int]net site on :i* ! f9ancial in/itution %all po/ ! writt5 agreem5t betwe5 ! f9ancial in/itution & ! in/itution ( high] education = ea* affiliat$ consum] f9ancial product or s]vice4 7,b7 ,f9ancial in/itution to provide contracts to ! bureau ,ea* f9ancial in/itution %all provide to ! ,bureau1 9 electronic =mat1 ! writt5 agreem5ts t x publi%es on its ,int]net site pursuant to ?is p>agraph4 7,c7 ,record repository ,! ,bureau %all e/abli% & ma9ta9 on its publicly available ,int]net site a c5tral repository ( ! agreem5ts receiv$ f f9ancial in/itutions pursuant to ?is p>agraph1 & su* agreem5ts %all be easily accessible & retrievable by ! public4 7,d7 ,exception ,?is p>agraph %all n apply to individually negotiat$ *anges to contractual t]ms1 su* z individually modifi$ work\ts or r5egotiations ( am\nts ow$ by an in/itution ( high] education4 7c7 ,prohibition ( rev5ue-,%>+ arrangem5t ,a f9ancial in/itution t (f]s a consum] f9ancial product or s]vice t is affiliat$ ) an in/itution ( high] education may n ent] into a rev5ue-%>+ arrangem5t ) ! in/itution ( high] education4 7d7 ,rule ( con/ruction ,no?+ 9 ?is section %all be con/ru$ to prohibit a f9ancial in/itution f e/abli%+ a consum] product or s]vice affiliat$ ) an in/itution ( high] education if -- 7#a7 ! consum] product or s]vice w-- 7,a7 assi/ college /ud5ts 9 r$uc+ co/s or fees associat$ ) ! use ( consum] f9ancial products or s]vices2 7,b7 increase consum] *oice2 & 7,c7 enhance consum] protections2 & 7#b7 ! f9ancial in/itution is 9 compliance ) ! requirem5ts ( ?is ,act4 4