Connecticut Seal

General Assembly

 

Raised Bill No. 5490

February Session, 2014

 

LCO No. 2220

 

*02220_______BA_*

Referred to Committee on BANKS

 

Introduced by:

 

(BA)

 

AN ACT CONCERNING FINANCIAL LITERACY.

Be it enacted by the Senate and House of Representatives in General Assembly convened:

Section 1. (NEW) (Effective July 1, 2014) (a) The Department of Education and the Board of Regents for Higher Education, in consultation with the Department of Banking, shall develop a plan to ensure that each student of a public high school or a constituent unit, as defined in section 10a-1 of the general statutes, receives instruction in financial literacy, including, but not limited to, the impact of using credit cards and debit cards. Such instruction shall occur during a student's final year of high school and, for a student of a constituent unit, not later than such student's completion of his or her second semester at such constituent unit.

(b) The Department of Education and the Board of Regents for Higher Education shall work with the Department of Banking to leverage any available federal, state or private funds to implement the plan developed pursuant to subsection (a) of this section.

(c) Not later than January 1, 2015, the Commissioner of Education, the president of the Board of Regents for Higher Education and the Banking Commissioner shall report to the joint standing committee of the General Assembly having cognizance of matters relating to banks on the plan developed pursuant to subsection (a) of this section.

Sec. 2. (NEW) (Effective July 1, 2014) (a) The Board of Regents for Higher Education and the Connecticut Conference of Independent Colleges shall ensure that every student who applies for a credit card or debit card through a credit card or debit card issuer, as defined in Section 603(r) of the Fair Credit Reporting Act, 15 USC 1681a, that advertises on the campus of an institution of higher education in this state receives one-on-one financial literacy counseling or a one-page financial literacy sheet that clearly and succinctly explains the financial implications, including incurring the cost of fees, associated with using such credit card or debit card.

(b) Every credit card and debit card issuer that advertises such card issuer's product on the campus of an institution of higher education in this state shall clearly educate each student applying for a credit card or debit card of each of the fees associated with using such credit card or debit card.

Sec. 3. Section 36a-155 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2014):

(a) One or more banks, Connecticut credit unions or federal credit unions may establish, and use on a transaction fee basis, automated teller machines that are not satellite devices within this state, and use on a transaction fee basis automated teller machines that are not satellite devices located within this state or established outside this state. One or more banks, Connecticut credit unions or federal credit unions may establish satellite devices within this state and one or more banks, Connecticut credit unions or federal credit unions may use on a transaction fee basis satellite devices located within this state or established outside this state. Any bank, Connecticut credit union or federal credit union may establish and use point of sale terminals. Nothing in this chapter shall prohibit the establishment or use of a point of sale terminal located within this state by a commercial establishment located within this state.

(b) The commissioner may adopt such regulations in accordance with the provisions of chapter 54 as may be necessary to carry out the purpose of sections 36a-155 to 36a-159, inclusive, and section 36a-170. Such regulations may include, but shall not be limited to: (1) Requirements for the filing of information with the commissioner by any financial institution, network or processor in connection with (A) the establishment or use of automated teller machines, point of sale terminals or similar retail electronic banking facilities in this state, (B) the provision of home banking services in this state, and (C) the provision of network or processing services in this state; (2) provisions concerning services that may be provided at automated teller machines, point of sale terminals or similar retail electronic banking facilities located in this state, or by means of home banking terminals located in this state, including services that may be offered on a proprietary basis; [and] (3) provisions concerning the safety of persons using automated teller machines or similar retail electronic banking facilities; and (4) a requirement that any automated teller machine located on the campus of an institution of higher education in this state display signage, either directly on or immediately adjacent to such machine, clearly notifying students of the additional fees such students may be charged if they use a credit card, debit card or other bank card that was issued by a card issuer, as defined in Section 603(r) of the Fair Credit Reporting Act, 15 USC 1681a, that is not affiliated with the bank, Connecticut credit union or federal credit union that established such machine on campus. As used in this subsection, "financial institution" means any bank, Connecticut credit union, federal credit union, out-of-state bank or out-of-state credit union authorized under Connecticut or federal law to accept deposits within this state, or any other person having a place of business in this state who holds an account belonging to a consumer and who agrees with the consumer to provide electronic fund transfer services subject to the provisions of 12 CFR Part 205, as from time to time amended, at automated teller machines, point of sale terminals or similar retail electronic banking facilities in this state; "account" means a demand deposit, savings deposit, share, member or other consumer asset account, held either directly or indirectly, and established primarily for personal, family or household purposes, including a line of credit extended to a consumer, but not including an occasional or incidental credit balance in a credit plan; "consumer" means a natural person residing in this state; "network" means one or more financial institutions or other persons that own and operate one or more network systems or facilities, or provide communications or processing services to one or more automated teller machines, point of sale terminals or similar retail electronic banking facilities located in this state, or to one or more home banking terminals located in this state; and "processor" means one or more persons that provide communications, processing, clearing, settlement or related services to one or more financial institutions in connection with the operation of one or more automated teller machines, point of sale terminals or similar retail electronic banking facilities located in this state, or one or more home banking terminals located in this state.

This act shall take effect as follows and shall amend the following sections:

Section 1

July 1, 2014

New section

Sec. 2

July 1, 2014

New section

Sec. 3

July 1, 2014

36a-155

Statement of Purpose:

To ensure that students of public high schools and institutions of higher education in this state receive sufficient instruction, information and guidance to improve their financial literacy.

[Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]