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

                                  4559

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                             April 24, 2009
                               ___________

Introduced  by  Sen.  OPPENHEIMER -- read twice and ordered printed, and
  when printed to be committed to the Committee on Higher Education

AN ACT to amend the education law, in  relation  to  providing  for  the
  appropriate  oversight  of private trade and business schools that are
  unlicensed in violation of article  101  of  the  education  law,  and
  making an appropriation therefor

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

  Section 1. Legislative  findings  and  declarations.  The  legislature
finds  and declares that although the department of education has effec-
tively implemented chapter 887 of the laws of  1990  in  regulating  and
monitoring  licensed  trade  and  business schools, an industry of unli-
censed and illegally operating institutions has developed. The  legisla-
ture  further  finds  that  many of these approximately 880 such schools
(over three times  the  number  of  licensed  and  exempt  institutions)
provide sub-standard programs with no oversight or review to prevent the
commission  of  fraud and abuse against the students seeking such train-
ing. In order to address this problem, it is the intent of the  legisla-
ture  to  provide  a  supplemental  state appropriation in the amount of
$620,000 to the department of education to  support  the  investigation,
monitoring,  and  pursuit  of  appropriate  disciplinary and enforcement
action against those schools that are found to be  operating  without  a
license in violation of section 5001 of the education law and to further
the  overall service to licensed schools and their students. To create a
deterrent to illegal operation of schools, the legislature further finds
that it is necessary to authorize the  imposition  of  more  substantial
civil penalties on such unlicensed schools.
  S  2.  Paragraph  b  of subdivision 6 of section 5003 of the education
law, as amended by chapter 434 of the laws of 1999, is amended  to  read
as follows:
  b.  Notwithstanding the provisions of paragraph a of this subdivision,
a hearing officer may recommend, and  the  commissioner  may  impose,  a
civil  penalty  not  to  exceed  fifty  thousand  dollars for any of the
following violations: (1) [operation of a school without  a  license  in

              

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08222-01-9

S. 4559                             2

violation  of  section five thousand one of this article; (2)] operation
of a school knowing that the school's  license  has  been  suspended  or
revoked;  [(3)]  (2)  use  of false, misleading, deceptive or fraudulent
advertising;  [(4)]  (3)  employment  of  recruiters  on  the basis of a
commission, bonus or quota, except as authorized  by  the  commissioner;
[(5)]  (4)  directing  or  authorizing recruiters to offer guarantees of
jobs upon completion of a course; [(6)] (5) failure to  make  a  tuition
refund  when  such failure is part of a pattern of misconduct; [(7)] (6)
the offering of a course or program that has not been  approved  by  the
commissioner;  [(8)]  (7) admitting students, who subsequently drop out,
who were admitted in violation of the admission standards established by
the commissioner, where such admissions constitute a pattern of  miscon-
duct  and  where  the  drop  out  resulted  at  least  in part from such
violation; [(9)] (8) failure to provide the notice of discontinuance and
the plan required by subdivision [seven] EIGHT of section five  thousand
one  of  this article; or [(10)] (9) violation of any other provision of
this article, or any rule or regulation  promulgated  pursuant  thereto,
when  such  violation  constitutes part of a pattern of misconduct which
significantly impairs the educational quality of the program or programs
being offered by the school.  For each enumerated offense, a  second  or
further  violation  committed  within  the previous five years, shall be
subject to a civil penalty not to exceed seventy-five  thousand  dollars
for each such violation.
  S  3. Subdivision 6 of section 5003 of the education law is amended by
adding a new paragraph b-1 to read as follows:
  B-1. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH A  OF  THIS  SUBDIVI-
SION,  A HEARING OFFICER MAY RECOMMEND, AND THE COMMISSIONER MAY IMPOSE,
A CIVIL PENALTY NOT TO EXCEED ONE HUNDRED THOUSAND DOLLARS FOR OPERATION
OF A SCHOOL WITHOUT A LICENSE IN VIOLATION OF SECTION FIVE THOUSAND  ONE
OF  THIS  ARTICLE.  FOR  EACH  ENUMERATED  OFFENSE,  A SECOND OR FURTHER
VIOLATION COMMITTED WITHIN THE PREVIOUS FIVE YEARS, SHALL BE SUBJECT  TO
A CIVIL PENALTY NOT TO EXCEED ONE HUNDRED THOUSAND DOLLARS FOR EACH SUCH
VIOLATION.
  S  4.  Paragraph  c  of subdivision 6 of section 5003 of the education
law, as added by chapter 887 of the laws of 1990, is amended to read  as
follows:
  c.  In  addition to the penalties authorized in paragraphs a [and], b,
AND B-1 of this subdivision, a hearing officer may  recommend,  and  the
commissioner  may impose, any of the following administrative sanctions:
(1) a cease and desist order; (2) a mandatory direction; (3)  a  suspen-
sion  or revocation of a license; (4) a probation order; or (5) an order
of restitution.
  S 5. The sum of six hundred twenty thousand dollars ($620,000), or  so
much  thereof as may be necessary, is hereby appropriated to the depart-
ment of education out of any moneys in the state treasury in the general
fund, to the credit of the state purposes account, not otherwise  appro-
priated,  for  its services and expenses in carrying out the purposes of
this act.  Such sum shall be payable on vouchers certified  or  approved
by  the  commissioner  of  education upon audit and warrant of the state
comptroller in the manner prescribed by law.
  S 6. This act shall take effect  immediately,  provided  that  section
five  of  this act shall be deemed to have been in full force and effect
on and after April 1, 2009.