S T A T E   O F   N E W   Y O R K
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                                  4334

                       2009-2010 Regular Sessions

                          I N  A S S E M B L Y

                            February 3, 2009
                               ___________

Introduced  by  M.  of  A.  SEMINERIO  --  read once and referred to the
  Committee on Higher Education

AN ACT to amend the education law, in relation to establishing a  candi-
  dacy period for institutions seeking the authority to grant degrees

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

  Section 1. Subdivision 2 of section 218 of the education law, as added
by chapter 1160 of the laws of 1971, is amended to read as follows:
  2. No institution shall be given power to confer associate degrees  in
this  state  unless  it  shall possess financial resources which, in the
judgment of the regents, are adequate to insure satisfactory conduct  of
its degree programs and achievement of its stated educational goals.  NO
INSTITUTION  SHALL BE AUTHORIZED TO CONFER ANY DEGREES UNTIL IT HAS BEEN
EVALUATED BY THE DEPARTMENT AND BOARD  OF  REGENTS  DURING  A  CANDIDACY
PERIOD OF ONE YEAR.
  DURING  THIS CANDIDACY PERIOD THE DEPARTMENT SHALL CONDUCT AN ACADEMIC
REVIEW TO DETERMINE WHETHER THE PROGRAMS MEET THE STANDARDS  FOR  REGIS-
TRATION  OF  DEGREE  CURRICULA  AND  A  PLANNING REVIEW TO EXAMINE NEED,
EFFECT ON THE INSTITUTION AND EFFECT ON OTHER INSTITUTIONS. AN  INSTITU-
TION  SEEKING  DEGREE  GRANTING  AUTHORITY  MUST, AT A MINIMUM, MEET THE
FOLLOWING STANDARDS, WHEN APPLICABLE, DURING THE CANDIDACY PERIOD:
  A. AN INSTITUTION MUST HAVE HAD A LOAN DEFAULT RATE UNDER  TWENTY-FIVE
PERCENT  FOR  THE  THREE  YEARS  PRIOR TO AN APPLICATION BEING FILED FOR
DEGREE-GRANTING AUTHORITY.
  B. THE INSTITUTION HAS NO OUTSTANDING AMOUNTS DUE AS A RESULT  OF  ANY
AUDITS  BY THE STATE COMPTROLLER'S OFFICE PROVIDED THAT APPEALS, IF ANY,
HAVE BEEN EXHAUSTED.
  C. THE INSTITUTION'S STUDENTS HAVE NOT BEEN DENIED FEDERAL  GRANTS  OR
LOANS  DURING  THE  CURRENT OR PREVIOUS CALENDAR YEAR AS A RESULT OF THE
INSTITUTION'S VIOLATION OF ANY LAW OR REGULATION OF  THE  UNITED  STATES

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08119-01-9

              

A. 4334                             2

DEPARTMENT OF EDUCATION, PROVIDED THAT INSTITUTION APPEALS, IF ANY, HAVE
BEEN EXHAUSTED.
  D. NO OFFICER OR STOCKHOLDER HAS BEEN CONVICTED OF A FELONY WITHIN THE
PRECEDING FIVE YEARS RELATING TO MATTERS INVOLVING CORPORATE OR INSTITU-
TIONAL ASSETS, STAFF OR STUDENTS.
  E.  THE INSTITUTION MUST HAVE A PERMANENT CREDENTIALED LIBRARIAN AND A
LIBRARY COLLECTION IN PLACE THAT IS ADEQUATE  TO  SUPPORT  THE  PROPOSED
DEGREE PROGRAMS.
  F.  THE  FACULTY  MUST  HAVE  APPROPRIATE CREDENTIALS AND DEMONSTRATED
TEACHING ABILITY IN THE PROPOSED PROGRAM AREAS.
  G. THE INSTITUTION'S RECORD WITH ITS ACCREDITING AGENCY MUST SHOW THAT
THE INSTITUTION IS IN GOOD STANDING WITH THAT AGENCY.
  H. THE INSTITUTION MUST PROVIDE TWO YEARS OF CERTIFIED FINANCIAL ANNU-
AL AUDITS ACCORDING TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES  SHOWING
A MINIMUM 1AGING ASSETS TO LIABILITY RATIO.
  I.  THE  INSTITUTION  SHALL HAVE A CAMPUS IN COMPLIANCE WITH STATE AND
LOCAL REGULATIONS.
  THE COST OF THE REVIEW PROCESS WILL BE BORNE BY THE INSTITUTION  SEEK-
ING DEGREE-GRANTING AUTHORITY.
  S 2. This act shall take effect immediately.