S.Amdt. 2062

SA 2062. Ms. WARREN submitted an amendment intended to be proposed by
her to the bill S. 2155, to promote economic growth, provide tailored
regulatory relief, and enhance consumer protections, and for other
purposes; which was ordered to lie on the table; as follows:

At the end of title III, add the following:

SEC. 3__. REVENUE SHARING AND DISCLOSURE OF AFFILIATION.

Chapter 2 of title I of the Truth in Lending Act (15 U.S.C.
1631 et seq.) is amended by adding at the end the following:

``SEC. 140B. PREVENTING UNFAIR AND DECEPTIVE MARKETING OF
CONSUMER FINANCIAL PRODUCTS AND SERVICES TO
STUDENTS OF INSTITUTIONS OF HIGHER EDUCATION.

``(a) Definitions.--In this section:
``(1) Affiliate.--The term `affiliate' means any person
that controls, is controlled by, or is under common control
with another person.
``(2) Affiliated.--
``(A) In general.--The term `affiliated', when used with
respect to a consumer financial product or service and an
institution of higher education, means an association between
such institution and product or service resulting from--
``(i) the name, emblem, mascot, or logo of the institution
being used with respect to such product or service; or
``(ii) some other word, picture, or symbol readily
identified with the institution in the marketing of the
consumer financial product or service in any way that implies
that the institution endorses the consumer financial product
or service.
``(B) Rule of construction.--Nothing in subparagraph (A)
shall be construed to deem an association between an
institution of higher education and a consumer financial
product or service to be affiliated if such association is
solely based on an advertisement

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by a financial institution that is delivered to a wide and
general audience consisting of more than enrolled students at
the institution of higher education.
``(3) Consumer financial product or service.--The term
`consumer financial product or service' has the meaning given
the term in section 1002 of the Consumer Financial Protection
Act of 2010 (12 U.S.C. 5481).
``(4) Financial institution.--The term `financial
institution' means--
``(A) any person that engages in offering or providing a
consumer financial product or service; and
``(B) any affiliate of such person described in
subparagraph (A) if such affiliate acts as a service provider
to such person.
``(5) Institution of higher education.--The term
`institution of higher education' has the meaning given that
term in section 102 of the Higher Education Act of 1965 (20
U.S.C. 1002).
``(6) Person.--The term `person' means an individual,
partnership, company, corporation, association (incorporated
or unincorporated), trust, estate, cooperative organization,
or other entity.
``(7) Revenue-sharing arrangement.--The term `revenue-
sharing arrangement'--
``(A) means an arrangement between an institution of higher
education and a financial institution under which--
``(i) a financial institution provides or issues a consumer
financial product or service to college students attending
the institution of higher education;
``(ii) the institution of higher education recommends,
promotes, sponsors, or otherwise endorses the financial
institution, or the consumer financial products or services
offered by the financial institution; and
``(iii) the financial institution pays a fee or provides
other material benefits, including revenue or profit sharing,
to the institution of higher education, or to an officer,
employee, or agent of the institution of higher education, in
connection with the consumer financial products and services
provided to college students attending the institution of
higher education; and
``(B) does not include an arrangement solely based on a
financial institution paying a fair market price to an
institution of higher education for the institution of higher
education to advertise or market the financial institution to
the general public.
``(8) Service provider.--The term `service provider'--
``(A) means any person that provides a material service to
another person in connection with the offering or provision
by such other person of a consumer financial product or
service, including a person that--
``(i) participates in designing, operating, or maintaining
the consumer financial product or service; or
``(ii) processes transactions relating to the consumer
financial product or service (other than unknowingly or
incidentally transmitting or processing financial data in a
manner that such data is undifferentiated from other types of
data of the same form as the person transmits or processes);
and
``(B) does not include a person solely by virtue of such
person offering or providing to another person--
``(i) a support service of a type provided to businesses
generally or a similar ministerial service; or
``(ii) time or space for an advertisement for a consumer
financial product or service through print, newspaper, or
electronic media.
``(b) Disclosure of Affiliation.--
``(1) Reports by financial institutions.--
``(A) In general.--Not later than 180 days after the date
of enactment of this Act, and annually thereafter, each
financial institution shall submit a report to the Bureau
containing the terms and conditions of all business,
marketing, and promotional agreements that the financial
institution has with any institution of higher education, or
an alumni organization or foundation that is an affiliate of
or related to an institution of higher education, relating to
any consumer financial product or service offered to college
students at institutions of higher education.
``(B) Details of report.--The information required to be
reported by a financial institution under subparagraph (A)
includes--
``(i) any memorandum of understanding between or among the
financial institution and an institution of higher education,
alumni association, or foundation that directly or indirectly
relates to any aspect of an agreement referred to in
subparagraph (A) or controls or directs any obligations or
distribution of benefits between or among the entities; and
``(ii) the number and dollar amount outstanding of consumer
financial products or services accounts covered by any such
agreement that were originated during the period covered by
the report, and the total number and dollar amount of
consumer financial products or services accounts covered by
the agreement that were outstanding at the end of such
period.
``(C) Aggregation by institution.--The information required
to be reported under subparagraph (A) shall be aggregated
with respect to each institution of higher education or
alumni organization or foundation that is an affiliate of or
related to the institution of higher education.
``(2) Reports by bureau.--The Bureau shall submit to
Congress, and make available to the public, an annual report
that lists the information submitted to the Bureau under
paragraph (1).
``(3) Electronic disclosures.--
``(A) Posting agreements.--Each financial institution shall
establish and maintain an Internet site on which the
financial institution shall post the written agreement
between the financial institution and the institution of
higher education for each affiliated consumer financial
product or service.
``(B) Financial institution to provide contracts to the
bureau.--Each financial institution shall provide to the
Bureau, in electronic format, the written agreements that it
publishes on its Internet site pursuant to this paragraph.
``(C) Record repository.--The Bureau shall establish and
maintain on its publicly available Internet site a central
repository of the agreements received from financial
institutions pursuant to this paragraph, and such agreements
shall be easily accessible and retrievable by the public.
``(D) Exception.--This paragraph shall not apply to
individually negotiated changes to contractual terms, such as
individually modified workouts or renegotiations of amounts
owed by an institution of higher education.
``(c) Consumer Financial Products or Service
Requirements.--A financial institution or service provider
that offers a consumer financial product or service that is
affiliated with an institution of higher education shall--
``(1) work with the institution of higher education to
obtain a student's consent to offer a consumer financial
product or service before a consumer financial product or
service is provided to the student;
``(2) ensure that any personally identifiable information
about a student that is received by the financial institution
or service provider--
``(A) is used solely for activities in the written
agreement between the financial institution and the
institution of higher education for each affiliated consumer
financial product or service; and
``(B) is not shared with any other affiliate, person, or
entity except for the purpose described in subparagraph (A);
``(3) inform the student of the terms and conditions of the
consumer financial product or service, before the student
uses the consumer financial product or service;
``(4) not charge the student any cost for using the
consumer financial product or service for any purpose,
including when the student conducts point-of-sale
transactions, a balance inquiry, or withdrawal of funds; and
``(5) ensure that--
``(A) consumer financial product or service is not marketed
or portrayed as, or converted into, a credit card; and
``(B) no credit is extended or associated with the consumer
financial product or service, and no fee is charged to the
student for any transaction or withdrawal.
``(d) Prohibition of Revenue-sharing Arrangement.--A
financial institution that offers a consumer financial
product or service that is affiliated with an institution of
higher education may not enter into a revenue-sharing
arrangement with the institution of higher education.
``(e) Student's Best Financial Interest.--
``(1) In general.--A financial institution or service
provider that offers a consumer financial product or service
that is affiliated with an institution of higher education
shall ensure that the terms and conditions of all agreements
that the financial institution has with any institution of
higher education, or an alumni organization or foundation
that is an affiliate of or related to an institution of
higher education, relating to any consumer financial product
or service offered to college students at institutions of
higher education are consistent with the best financial
interests of the students using the consumer financial
product or service, as described in paragraph (2).
``(2) Student's best interest.--A financial institution or
service provider shall be considered to meet the requirement
described in paragraph (1) if that financial institution--
``(A) ensures that all agreements that the financial
institution has with any institution of higher education
relating to any consumer financial product or service offered
to college students enrolled at institutions of higher
education--
``(i) make provisions for termination of the arrangement by
the institution of higher education based on complaints
received from students enrolled at the institution; and
``(ii) do not require students enrolled at the institution
of higher education to use consumer financial products or
services offered by the financial institution in order to
receive Federal student aid financial assistance funding
authorized by title IV of the Higher Education Act of 1965;
``(B) ensures that requirements of this section are met.
``(f) Rule of Construction.--Nothing in this section shall
be construed to prohibit a financial institution from
establishing a consumer product or service affiliated with an
institution of higher education if--
``(1) the consumer product or service will--
``(A) assist college students in reducing costs or fees
associated with the use of consumer financial products or
services;
``(B) increase consumer choice; and
``(C) enhance consumer protections; and
``(2) the financial institution is in compliance with the
requirements of this Act.''.
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