Senate Bill S5700

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

                                  5700

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              May 28, 2009
                               ___________

Introduced  by  Sen.  KLEIN  -- read twice and ordered printed, and when
  printed to be committed to the Committee on Consumer Protection

AN ACT to amend the general business law, in relation to prohibiting the
  issuance of a credit card to any person under the  age  of  twenty-one
  years,  unless such person has received parental consent and completed
  a course of instruction in financial responsibility and liability

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Section  515  of  the general business law, as amended by
chapter 1050 of the laws of 1971, is amended to read as follows:
  S  515.  Issuance  of  credit  cards.  1.  Notwithstanding  any  other
provision  of  law,  no person shall issue a credit card in violation of
the provisions of an act of congress entitled "Truth in Lending Act" and
the regulations thereunder, as such act and regulations may from time to
time be amended.
  2. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, NO ISSUER SHALL ISSUE A
CREDIT CARD TO ANY INDIVIDUAL IN THIS STATE UNDER THE AGE OF  TWENTY-ONE
YEARS UNLESS:
  (A)  SUCH  INDIVIDUAL PROVIDES THE ISSUER WITH THE WRITTEN CONSENT, OF
SUCH INDIVIDUAL'S PARENT OR GUARDIAN, TO THE ISSUANCE OF A  CREDIT  CARD
TO THE INDIVIDUAL UNDER THE AGE OF TWENTY-ONE YEARS;
  (B)  SUCH  INDIVIDUAL  PROVIDES  THE  ISSUER WITH WRITTEN PROOF OF THE
COMPLETION OF A COURSE OF INSTRUCTION IN  FINANCIAL  RESPONSIBILITY  AND
LIABILITY  CONDUCTED IN ACCORDANCE WITH THE STANDARDS ESTABLISHED BY THE
STATE CONSUMER PROTECTION BOARD.
  3. THE STATE CONSUMER PROTECTION BOARD SHALL ESTABLISH  STANDARDS  AND
REQUIREMENTS  FOR COURSES OF INSTRUCTION IN FINANCIAL RESPONSIBILITY AND
LIABILITY FOR INDIVIDUALS UNDER TWENTY-ONE YEARS OF  AGE,  AND  FOR  THE
PROVIDERS  OF SUCH COURSES. SUCH BOARD SHALL ESTABLISH A PROCESS FOR THE
PROVISION OF CERTIFICATION TO COURSES OF INSTRUCTION  AND  THE  PROVIDER

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11778-01-9

              

S. 5700                             2

THEREOF  WHICH  COMPLY  WITH  THE STANDARDS ESTABLISHED PURSUANT TO THIS
SUBDIVISION.
  4.  The  issuance  of  a credit card in violation of the provisions of
subdivision one of this section shall constitute a misdemeanor.
  S 2. This act shall take effect immediately, provided that subdivision
2 of section 515 of the general business law, as amended by section  one
of  this  act, shall take effect on the first of January next succeeding
the date on which this act shall have become a law.