101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB1581

 

Introduced , by Rep. Sue Scherer

 

SYNOPSIS AS INTRODUCED:
 
110 ILCS 26/40 new

    Amends the Credit Card Marketing Act of 2009. Creates the College Student Credit Card Marketing and Debt Task Force. Provides legislative findings. Provides for the membership of the Task Force. Provides that the Department of Financial and Professional Regulation shall provide technical and administrative support and any other necessary assistance to the Task Force and shall be responsible for administering its operations and ensuring that the requirements of the provisions are met. Provides that the Task Force shall conduct a study on student credit card debt; specifies study requirements. Provides that the Task Force shall report the findings of the study conducted and any recommendations to the General Assembly on or before December 14, 2019, at which time the Task Force shall be dissolved. Repeals these provisions on November 1, 2020. Effective immediately.


LRB101 04553 AXK 49561 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

HB1581LRB101 04553 AXK 49561 b

1    AN ACT concerning education.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Credit Card Marketing Act of 2009 is amended
5by adding Section 40 as follows:
 
6    (110 ILCS 26/40 new)
7    Sec. 40. College Student Credit Card Marketing and Debt
8Task Force.
9    (a) The General Assembly finds the following:
10        (1) This Act was designed, in part, as an adaptation of
11    the federal Credit Card Accountability Responsibility and
12    Disclosure Act of 2009.
13        (2) In the intervening years since the adoption of
14    these Acts, it remains an open question as to the extent to
15    which the federal Credit Card Accountability
16    Responsibility and Disclosure Act of 2009 has been an
17    effective measure to eliminate issues of student credit
18    card debt.
19        (3) Student credit card debt is an important issue that
20    needs to be examined, with the goal of reducing the amount
21    of credit card debt a student faces after graduating from
22    an institution of higher education.
23    (b) There is created the College Student Credit Card

 

 

HB1581- 2 -LRB101 04553 AXK 49561 b

1Marketing and Debt Task Force, which shall consist of the
2following members:
3        (1) a representative of a statewide organization
4    representing credit unions licensed to operate in this
5    State, appointed by the Secretary of Financial and
6    Professional Regulation or his or her designee;
7        (2) a representative of a statewide organization
8    representing community banks licensed to operate in this
9    State, appointed by the Secretary of Financial and
10    Professional Regulation or his or her designee;
11        (3) a representative of a statewide organization
12    representing banks licensed to operate in this State,
13    appointed by the Secretary of Financial and Professional
14    Regulation or his or her designee;
15        (4) a representative of Southern Illinois University,
16    appointed by the president of that university or his or her
17    designee;
18        (5) a representative of the University of Illinois,
19    appointed by the president of that university or his or her
20    designee;
21        (6) a representative of Illinois State University,
22    appointed by the president of that university or his or her
23    designee;
24        (7) a representative of Eastern Illinois University,
25    appointed by the president of that university or his or her
26    designee; and

 

 

HB1581- 3 -LRB101 04553 AXK 49561 b

1        (8) a representative of the Office of the Attorney
2    General, appointed by the Attorney General or his or her
3    designee.
4    (c) The Task Force shall meet initially at the call of the
5Secretary of Financial and Professional Regulation, upon
6appointment of a majority of the members, to organize and to
7select one member as chairperson, who shall be elected by a
8majority vote of all of the members appointed to the Task
9Force. The Task Force shall thereafter meet at the call of the
10chairperson. All members shall serve without compensation, but
11shall be reimbursed for their reasonable and necessary expenses
12from funds appropriated for that purpose.
13    (d) The Department of Financial and Professional
14Regulation shall provide technical and administrative support
15and any other necessary assistance to the Task Force and shall
16be responsible for administering the Task Force's operations
17and ensuring that the requirements of this Section are met.
18    (e) The Task Force shall conduct a study that specifically
19examines all of the following factors:
20        (1) The total cost of credit to credit card issuers for
21    students, as a percentage of the credit card's average
22    cycle-ending balance.
23        (2) The percentage of Illinois students who pay off
24    their credit card balances in full for at least 2
25    consecutive months.
26        (3) The percentage of Illinois students who carry

 

 

HB1581- 4 -LRB101 04553 AXK 49561 b

1    balances on their credit cards all or most of the time.
2        (4) The total amount of credit extended to individuals
3    between the ages of 18 and 21 in Illinois.
4        (5) The total amount of credit extended to students
5    pursuing an undergraduate education in Illinois.
6        (6) The average number of new credit card accounts
7    opened by a student pursuing an undergraduate education per
8    5-year increments, beginning with the 2005-2006 academic
9    year.
10        (7) The total number of annual mail solicitations of
11    pre-approved credit card offers targeted to individuals
12    who are between the ages of 18 and 21 years old, and the
13    annual percentage rates for those cards.
14        (8) The total number of online solicitations of
15    pre-approved credit card offers targeted to individuals
16    who are between the ages of 18 and 21 years old, and the
17    annual percentage rates for those cards.
18        (9) The total number of social media solicitations for
19    pre-approved credit card offers targeted to individuals
20    who are between the ages of 18 and 21 years old, and the
21    annual percentage rates for those cards.
22        (10) A list of individuals who are between the ages of
23    18 and 21 years old in this State who are targeted for
24    pre-screened credit card offers, categorized by the
25    percentage of students who are classified as Prime Plus,
26    Prime, Non-Prime, and High-Risk.

 

 

HB1581- 5 -LRB101 04553 AXK 49561 b

1        (11) The total number of credit cards issued to
2    students with the following add-ons: (i) debt protection,
3    (ii) identity or theft protection, and (iii) credit score
4    monitoring.
5        (12) The number of fee harvester credit cards marketed
6    annually to students, including a credit card that charges
7    a fee that exceeds 25% of the card's credit limit.
8        (13) The number of students who pay their monthly bill
9    solely through an online portal.
10        (14) The number of student accounts with reward
11    products providing points, including the value of the
12    points, the rate at which points are earned, and the rules
13    governing forfeiture of points.
14    The Task Force may consult with any persons or entities it
15deems necessary to carry out the study under this subsection
16(e).
17    (f) The Task Force shall report the findings of the study
18conducted under subsection (e) of this Section and any
19recommendations to the General Assembly on or before December
2014, 2019, at which time the Task Force shall be dissolved.
21    (g) This Section is repealed on November 1, 2020.
 
22    Section 99. Effective date. This Act takes effect upon
23becoming law.