Sec. 1. 10 MRSA c. 202-D is enacted to read:

I.

CHAPTER 202-D

DEBIT CARDS SPONSORED BY PUBLIC

POST-SECONDARY INSTITUTIONS

§1147.__Debit card programs

1.__Debit card program authorized.__A public post-secondary institution located in this State may enter into an agreement with a financial institution, as defined in Title 9-B, section 131, subsection 17; a credit union, as defined in Title 9-B, section 131, subsection 12; or other credit card issuer to issue a debit card for use by students enrolled at the post-secondary institution.__The debit card program must be operated in accordance with this section.

2.__Use of card.__A student issued a debit card under the program pursuant to subsection 1 may use the debit card:

A.__To purchase merchandise or services available through the post-secondary institution or on the institution's campus from a person authorized by the institution to sell merchandise or services; and

B.__To purchase merchandise or services from a person operating a business off-campus authorized to accept the debit card under an agreement with the post-secondary institution and the financial institution, credit union or other credit card issuer that issued the debit card.

3.__Agreements with off-campus businesses.__If a participation agreement of an off-campus business owner pursuant to subsection 2, paragraph B imposes a per transaction fee for debit card purchases, the fee charged by the financial institution, credit union or other credit card issuer that issued the debit card must be reasonable and consistent with the merchant fees charged for participation in credit card programs.

SUMMARY

This bill authorizes public post-secondary institutions located in this State to sponsor debit card programs for their students. The bill also enables students to use their