S T A T E O F N E W Y O R K
________________________________________________________________________
2745
2009-2010 Regular Sessions
I N A S S E M B L Y
January 21, 2009
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Introduced by M. of A. O'DONNELL -- Multi-Sponsored by -- M. of A.
CLARK, COOK, JOHN, N. RIVERA, ROBINSON -- read once and referred to
the Committee on Higher Education
AN ACT to amend the education law, in relation to establishing penalties
for institutions of higher education which do not comply with certain
gift disclosure requirements
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 207-a of the education law is amended by adding a
new subdivision 5 to read as follows:
5. A. IN THE EVENT AN INSTITUTION OF HIGHER EDUCATION FAILS TO COMPLY
WITH THE DISCLOSURE REQUIREMENTS OF SUBDIVISION THREE OF THIS SECTION,
THE DEPARTMENT SHALL IMMEDIATELY PROVIDE A NOTIFICATION TO SUCH INSTITU-
TION OF HIGHER EDUCATION THAT IT MAY BE SUBJECT TO A FULL AUDIT TO BE
CONDUCTED BY THE STATE COMPTROLLER IF THE DISCLOSURE REQUIREMENTS ARE
NOT MET WITHIN TWENTY-FIVE DAYS OF SUCH NOTIFICATION.
B. IN THE EVENT AN INSTITUTION OF HIGHER EDUCATION FAILS TO COMPLY
WITH THE DISCLOSURE REQUIREMENTS OF SUBDIVISION THREE OF THIS SECTION
WITHIN THE TWENTY-FIVE DAYS PROVIDED FOR IN PARAGRAPH A OF THIS SUBDIVI-
SION, UPON THE EXPIRATION OF SUCH TWENTY-FIVE DAYS THE DEPARTMENT MAY
REQUEST THE STATE COMPTROLLER TO INITIATE A FULL AUDIT OF THE INSTITU-
TION OF HIGHER EDUCATION. THE RESULTS OF SUCH AUDIT MAY BE MADE AVAIL-
ABLE TO THE PUBLIC AT THE DISCRETION OF THE DEPARTMENT.
C. IN THE EVENT AN AUDIT IS CONDUCTED PURSUANT TO THIS SUBDIVISION AND
THE INSTITUTION OF HIGHER EDUCATION IS FOUND TO HAVE UNLAWFULLY WITHHELD
FROM THE DEPARTMENT DISCLOSURE INFORMATION REQUIRED BY THIS SECTION, THE
DEPARTMENT MAY SEEK DAMAGES IN A COURT OF COMPETENT JURISDICTION. THE
DEPARTMENT MAY SEEK SUCH DAMAGES FOR:
(I) ANY GIFTS RECEIVED FROM FOREIGN GOVERNMENTS, FOREIGN LEGAL ENTI-
TIES, OR FOREIGN PERSONS, OR AN EQUIVALENT VALUE OF ANY SUCH GIFTS; OR
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD03689-01-9
A. 2745 2
(II) PUNITIVE DAMAGES THAT SHALL NOT EXCEED THE LESSER OF TEN PERCENT
OF THE VALUE OF THE GIFT RECEIVED, OR SEVENTY-FIVE THOUSAND DOLLARS.
ANY DAMAGES RECEIVED, LESS COURT COSTS AND COSTS ARISING FROM THE AUDIT,
SHALL BE AWARDED TO THE UNIVERSITY OF THE STATE OF NEW YORK.
D. THE DEPARTMENT SHALL HAVE THE AUTHORITY TO FORGIVE ANY FAILURE TO
COMPLY WITH SUBDIVISION THREE OF THIS SECTION, AND EXCUSE ANY DAMAGES
THAT AN INSTITUTION OF HIGHER EDUCATION HAS INCURRED AS RESULT OF
NONCOMPLIANCE WITH THIS SECTION.
S 2. This act shall take effect immediately.