Senate Bill S3987A

Signed By Governor

2011-2012 Legislative Session

Authorizes performance of credit, security clearance and criminal background checks of employees of the New York state higher education services corporation

download bill text pdf

Archive: Last Bill Status Via A8159 - Signed by Governor

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 20, 2011	signed chap.184
Jul 08, 2011	delivered to governor
Jun 22, 2011	returned to assembly passed senate 3rd reading cal.1496 substituted for s3987b
Jun 22, 2011	substituted by a8159a ordered to third reading cal.1496 committee discharged and committed to rules
Jun 17, 2011	print number 3987b
Jun 17, 2011	amend and recommit to higher education
Jun 03, 2011	print number 3987a
Jun 03, 2011	amend and recommit to higher education
Mar 11, 2011	referred to higher education

Votes

- Jun 22, 2011 - Floor Vote
  A8159
  
  Aye
  
  62
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Floor Vote: Jun 22, 2011
      
      aye (62)
      
      Adams
      
      Addabbo Jr.
      
      Alesi
      
      Avella
      
      Ball
      
      Bonacic
      
      Breslin
      
      Carlucci
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espaillat
      
      Farley
      
      Flanagan
      
      Fuschillo
      
      Gallivan
      
      Gianaris
      
      Golden
      
      Griffo
      
      Grisanti
      
      Hannon
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Kennedy
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Libous
      
      Little
      
      Marcellino
      
      Martins
      
      Maziarz
      
      McDonald
      
      Montgomery
      
      Nozzolio
      
      O'Mara
      
      Oppenheimer
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Ritchie
      
      Rivera
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stavisky
      
      Stewart-Cousins
      
      Valesky
      
      Young
      
      Zeldin
  Jun 22, 2011 - Rules Committee Vote
  S3987A
  
  Aye
  
  23
  
  Nay
  
  0
  
  Aye with Reservations
  
  1
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  
  0
  - - Rules Committee Vote: Jun 22, 2011
      
      aye (23)
      
      Alesi
      
      Breslin
      
      Dilan
      
      Duane
      
      Farley
      
      Hannon
      
      Hassell-Thompson
      
      Johnson
      
      Krueger
      
      LaValle
      
      Larkin
      
      Libous
      
      Marcellino
      
      Maziarz
      
      Montgomery
      
      Nozzolio
      
      Parker
      
      Saland
      
      Sampson
      
      Seward
      
      Skelos
      
      Smith
      
      Stewart-Cousins
      
      aye wr (1)
      
      Perkins

Bill Amendments

2011-S3987 - Details

Law Section:: Education Law
Laws Affected:: Add §652-a, Ed L

2011-S3987 - Summary

Authorizes performance of credit, security clearance and criminal background checks of employees and prospective employees of the New York state higher education services corporation.

2011-S3987 - Sponsor Memo

                                BILL NUMBER:S3987

TITLE OF BILL:
An act
to amend
the education law, in relation to permitting credit, security clearance,
and criminal background checks of employees of the Higher Education
Services Corporation

PURPOSE:
To permit background investigations,
including criminal
background checks and credit checks, of certain current and
prospective Higher Education Services corporation (HESC) employees,
as required by the U.S. Department of Education for the performance
of services under new and existing contracts related to the
administration of federal student loans.

SUMMARY OF PROVISIONS:
Section 1 of this bill would add a new Section 652-a to the Education
Law to authorize HESC to perform background investigations, including
criminal background checks and credit checks, for all current and
prospective employees, when necessary for employee participation in
the administration of federal student loans or other federal programs
under the Federal Direct Loan Program (FDLP). Such investigations
would be done in conjunction with the Department of Criminal Justice

Services (DCJS) or other state or federal government agency with
lawful authority to obtain necessary information.

Section 2 of the bill would provide for immediate effective date.

EXISTING LAW:
Currently, Civil Service Law Section 50(4) permits state departments
(upon engaging in a delineated process) to run criminal background
checks on all new employees, with DCJS performing the criminal
background checks. However, Section 50(4) specifically excludes from
its ambit several classifications of employees: existing employees,
New York State employees seeking transfer employment under of Civil
Service Law Section 70. New York State employees who are on a
preferred list subject to Civil Service Law Section 81 and who are
seeking employment through their place on an eligible list as defined
in Civil Service Law Section 56 and who have successfully completed a
promotional exam subject to Civil Service Law Section 52.

JUSTIFICATION:
Over the past five years, HESC has paid out more than $167 million in
State financial aid programs through its participation in the Federal
Family Education Loan (FFEL) Program.

Provisions of the Health Care and Education Reconciliation Act (HCERA)
(HR 4872) passed in March 2010 eliminated future student loan
originations under the FFEL Program, which went into effect on July
1,2010. As a result, all federal student loans will now be originated
under the FDLP. HESC is seeking to obtain a contract to perform
services for FDLP to maintain current agency funding levels.


Generally, entities seeking to do business with the federal government
must meet a series of security and technology standards delineated by
the Department of Commerce's National Institute of Standards and
Technology (NIST). Among these standards is the requirement that all
employees of the contracting entity be subject to background and/or
security clearance investigations and credit screening. To ensure
that HESC is able to meet current and anticipated federal contracting
requirements, HESC is seeking the authorization to conduct such
investigations on those HESC employees necessary for HESC to perform
services under existing and new federal contracts.

LEGISLATIVE HISTORY:
New legislation.

FISCAL IMPLICATIONS:
This bill would have a positive fiscal impact, as it would allow HESC
to participate in federal revenue-generating programs.

EFFECTIVE DATE:
Immediately.

2011-S3987 - Bill Text download pdf

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

                                  3987

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 11, 2011
                               ___________

Introduced  by  Sen.  LAVALLE  --  (at  request  of the Higher Education
  Services Corporation) -- 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 permitting credit,
  security clearance, and criminal background checks of employees of the
  Higher Education Services Corporation

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

  Section 1.  The education law is amended by adding a new section 652-a
to read as follows:
  S  652-A.  EMPLOYEES  OF  THE NEW YORK STATE HIGHER EDUCATION SERVICES
CORPORATION; BACKGROUND CHECKS. 1. CURRENT AND PROSPECTIVE EMPLOYEES  OF
THE  CORPORATION  SHALL  BE SUBJECT TO BACKGROUND AND SECURITY CLEARANCE
INVESTIGATIONS REQUIRED IN THE  ORDINARY  COURSE  OF  THE  CORPORATION'S
BUSINESS IF BACKGROUND AND SECURITY CLEARANCE ARE NECESSARY FOR EMPLOYEE
PARTICIPATION OR PROPOSED PARTICIPATION IN THE ADMINISTRATION OF FEDERAL
STUDENT  LOANS  OR  OTHER FEDERAL PROGRAMS UNDER THE FEDERAL DIRECT LOAN
PROGRAM.
  2.   SUCH BACKGROUND OR  SECURITY  CLEARANCE  INVESTIGATION  SHALL  BE
PERFORMED  BY  OR ON BEHALF OF THE CORPORATION OR BY OR ON BEHALF OF ANY
OTHER STATE OR FEDERAL GOVERNMENT  AGENCY  AUTHORIZED  TO  PERFORM  SUCH
INVESTIGATIONS.  THE  CORPORATION  SHALL  BE  AUTHORIZED  TO REQUEST AND
RECEIVE FROM THE DIVISION OF CRIMINAL  JUSTICE  SERVICES  OR  ANY  OTHER
STATE OR FEDERAL GOVERNMENT AGENCY HAVING FACILITIES FOR PERFORMING SUCH
SERVICES:  SECURITY CLEARANCE INFORMATION, INCLUDING CRIMINAL BACKGROUND
AND CREDIT INFORMATION FOR CORPORATION EMPLOYEES, NEW YORK STATE EMPLOY-
EES SEEKING TRANSFER TO THE CORPORATION UNDER  SECTION  SEVENTY  OF  THE
CIVIL  SERVICE  LAW, NEW YORK STATE EMPLOYEES SEEKING HIRE AT THE CORPO-
RATION WHO ARE ON A PREFERRED LIST SUBJECT TO SECTION EIGHTY-ONE OF  THE
CIVIL  SERVICE  LAW,  OR  NEW  YORK  STATE EMPLOYEES SEEKING HIRE AT THE
CORPORATION THROUGH THEIR PLACE  ON  AN  ELIGIBLE  LIST  AS  DEFINED  IN

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09755-04-1

S. 3987                             2

SECTION  FIFTY-SIX  OF  THE  CIVIL SERVICE LAW AND WHO HAVE SUCCESSFULLY
COMPLETED A PROMOTIONAL EXAM SUBJECT TO SECTION FIFTY-TWO OF  THE  CIVIL
SERVICE  LAW IF SUCH SECURITY INFORMATION IS NECESSARY FOR THE EMPLOYEES
TO  BE IN COMPLIANCE WITH THE ADMINISTRATION OF FEDERAL STUDENT LOANS OR
OTHER FEDERAL PROGRAMS UNDER THE FEDERAL DIRECT LOAN PROGRAM.
  3. IF AN EMPLOYEE OR PROSPECTIVE EMPLOYEE NEEDS BACKGROUND AND SECURI-
TY CLEARANCE IN ORDER TO BE COMPLIANT WITH THE ADMINISTRATION OF FEDERAL
STUDENT LOANS OR OTHER FEDERAL PROGRAMS UNDER THE  FEDERAL  DIRECT  LOAN
PROGRAM, THE CORPORATION SHALL BE AUTHORIZED TO REQUIRE SUCH AN EMPLOYEE
OR  PROSPECTIVE  EMPLOYEE TO SUBMIT TO THE CORPORATION OR OTHER STATE OR
FEDERAL GOVERNMENT AGENCY  AUTHORIZED  TO  PERFORM  SUCH  INVESTIGATIONS
IDENTIFYING  INFORMATION,  WHICH  SHALL  INCLUDE  FINGERPRINTS, PERSONAL
INFORMATION, OR OTHER AUTHORIZATIONS, REQUIRED BY  ANY  OTHER  STATE  OR
FEDERAL GOVERNMENT AGENCY AUTHORIZED TO PERFORM SUCH INVESTIGATIONS. THE
FINGERPRINTS SO OBTAINED SHALL BE FORTHWITH FORWARDED TO THE DIVISION OF
CRIMINAL  JUSTICE  SERVICES,  OR  ANY  OTHER STATE OR FEDERAL GOVERNMENT
AGENCY HAVING FACILITIES FOR CHECKING FINGERPRINTS FOR THE  PURPOSES  OF
DETERMINING  WHETHER  OR  NOT  CRIMINAL  CHARGES ARE PENDING AGAINST THE
EMPLOYEE OR PROSPECTIVE EMPLOYEE OR  WHETHER  OR  NOT  THE  EMPLOYEE  OR
PROSPECTIVE  EMPLOYEE HAD PREVIOUSLY BEEN CONVICTED OF A CRIME, AND SUCH
AGENCY SHALL REPORT A FINDING  OF  SUCH  PENDING  CHARGES  AND  PREVIOUS
CONVICTIONS,  IF  ANY,  TO  THE  CORPORATION IN WRITING OR BY ELECTRONIC
MEANS OR ANY OTHER METHOD AGREED UPON BY THE CORPORATION AND THE AGENCY.
  S 2. This act shall take effect immediately.

2011-S3987A - Details

Law Section:: Education Law
Laws Affected:: Add §652-a, Ed L

2011-S3987A - Summary

Authorizes performance of credit, security clearance and criminal background checks of employees and prospective employees of the New York state higher education services corporation.

2011-S3987A - Sponsor Memo

                                BILL NUMBER:S3987A

TITLE OF BILL:

An act
to amend
the education law, in relation to permitting credit, security clearance,
and criminal background checks of employees of the Higher Education
Services Corporation

PURPOSE OF BILL:

This bill would amend the Education Law to permit background
investigations, including criminal background checks and credit
checks, of certain current and prospective Higher Education Services
Corporation (HESC) employees, as required by the U.S. Department of
Education for the performance of services under new and existing
contracts related to the administration of federal student loans.

SUMMARY OF PROVISIONS:

Section 1 of this bill would add a new Section 652-a to the Education
Law to authorize HESC to perform background investigations, including
criminal background checks and credit checks, for all current and
prospective employees, when necessary for employee participation in
the administration of federal student loans or other federal programs

under the Federal Direct Loan Program (FDLP). Such investigations
would be done in conjunction with the Department of Criminal Justice
Services (DCJS) or a federal government agency with lawful authority
to obtain the necessary information. The bill also provides for the
confidentiality of information obtained during the Course of
investigations and the ability of subjects of the investigations to
seek correction of inaccurate information contained in background
records.

Section 2 of the bill would provide for an immediate effective date.

EXISTING LAW:

Currently, Civil Service Law §50(4) permits state departments (upon
engaging in a delineated process) to run criminal background checks
on all new employees, with DCJS performing the criminal background
checks. However, §50(4) specifically excludes from its ambit several
classifications of employees: existing employees, New York State
employees seeking transfer employment under of Civil Service Law §70,
New York State employees who are on a preferred list subject to Civil
Service Law §8 land who are seeking employment through their place on
an eligible list as defined in Civil Service Law §56 and who have
successfully completed a promotional exam subject to Civil Service
Law §52.

PRIOR LEGISLATIVE HISTORY:

This is a new proposal.

STATEMENT IN SUPPORT:


Over the past five years, HESC has paid out more than $167 million in
State financial aid programs through its participation in the Federal
Family Education Loan (FFEL) Program.

Provisions of the Health Care and Education Reconciliation Act (HCERA)
(HR4872) passed in March 20] 0 eliminated future student loan
originations under the FFEL Program, which went into effect on July
1, 2010. As a result, all federal student loans will now be
originated under the FDLP. HESC is seeking to obtain a contract to
perform services for FDLP to maintain current agency funding levels.

Generally, entities seeking to do business with the federal government
must meet a series of security and technology standards delineated by
the Department of Commerce's National Institute of Standards and
Technology (NIST). Among these standards is the requirement that all
employees of the contracting entity be subject to background and/or
security clearance investigations and credit screening. To ensure
that HESC is able to meet current and anticipated federal contracting
requirements, HESC is seeking the authorization to conduct such
investigations on those HESC employees necessary for HESC to perform
services under existing and new federal contracts.

BUDGET IMPLICATIONS:

This bill would have a positive fiscal impact, as it would allow HESC
to participate in federal revenue-generating programs.

EFFECTIVE DATE:

The bill would take effect immediately.

2011-S3987A - Bill Text download pdf

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

                                 3987--A

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 11, 2011
                               ___________

Introduced  by  Sen.  LAVALLE  --  (at  request  of the Higher Education
  Services Corporation) -- read twice  and  ordered  printed,  and  when
  printed  to  be  committed  to  the  Committee  on Higher Education --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to  amend  the education law, in relation to permitting credit,
  security clearance, and criminal background checks of employees of the
  Higher Education Services Corporation

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

  Section 1.  The education law is amended by adding a new section 652-a
to read as follows:
  S  652-A.  EMPLOYEES  OF  THE NEW YORK STATE HIGHER EDUCATION SERVICES
CORPORATION; BACKGROUND CHECKS. 1. CURRENT AND PROSPECTIVE EMPLOYEES  OF
THE  CORPORATION  SHALL  BE SUBJECT TO BACKGROUND AND SECURITY CLEARANCE
INVESTIGATIONS REQUIRED IN THE  ORDINARY  COURSE  OF  THE  CORPORATION'S
BUSINESS IF BACKGROUND AND SECURITY CLEARANCE ARE NECESSARY FOR EMPLOYEE
PARTICIPATION OR PROPOSED PARTICIPATION IN THE ADMINISTRATION OF FEDERAL
STUDENT  LOANS  OR  OTHER FEDERAL PROGRAMS UNDER THE FEDERAL DIRECT LOAN
PROGRAM.
  2.   SUCH BACKGROUND OR  SECURITY  CLEARANCE  INVESTIGATION  SHALL  BE
PERFORMED  BY THE CORPORATION OR ON BEHALF OF THE CORPORATION BY A STATE
OR FEDERAL GOVERNMENT AGENCY AUTHORIZED TO PERFORM SUCH  INVESTIGATIONS.
THE  CORPORATION  SHALL  BE  AUTHORIZED  TO REQUEST AND RECEIVE FROM THE
DIVISION OF CRIMINAL  JUSTICE  SERVICES  OR  FEDERAL  GOVERNMENT  AGENCY
HAVING  FACILITIES  FOR  PERFORMING  SUCH  SERVICES:  SECURITY CLEARANCE
INFORMATION, INCLUDING CRIMINAL BACKGROUND AND  CREDIT  INFORMATION  FOR
CORPORATION  EMPLOYEES, NEW YORK STATE EMPLOYEES SEEKING TRANSFER TO THE
CORPORATION UNDER SECTION SEVENTY OF THE CIVIL  SERVICE  LAW,  NEW  YORK
STATE  EMPLOYEES  SEEKING HIRE AT THE CORPORATION WHO ARE ON A PREFERRED
LIST SUBJECT TO SECTION EIGHTY-ONE OF THE CIVIL SERVICE LAW, OR NEW YORK

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09755-05-1

S. 3987--A                          2

STATE EMPLOYEES SEEKING HIRE AT THE CORPORATION THROUGH THEIR  PLACE  ON
AN  ELIGIBLE  LIST  AS DEFINED IN SECTION FIFTY-SIX OF THE CIVIL SERVICE
LAW AND WHO HAVE SUCCESSFULLY COMPLETED A PROMOTIONAL  EXAM  SUBJECT  TO
SECTION  FIFTY-TWO OF THE CIVIL SERVICE LAW IF SUCH SECURITY INFORMATION
IS NECESSARY FOR THE EMPLOYEES TO BE IN  COMPLIANCE  WITH  THE  ADMINIS-
TRATION  OF  FEDERAL  STUDENT  LOANS OR OTHER FEDERAL PROGRAMS UNDER THE
FEDERAL DIRECT LOAN PROGRAM.  THE CORPORATION SHALL INFORM  SUBJECTS  OF
BACKGROUND  AND  SECURITY  CLEARANCE INVESTIGATIONS OF THE FACTORS TO BE
CONSIDERED IN THE EVALUATION OF THE CRIMINAL BACKGROUND INFORMATION  AND
CREDIT INFORMATION OBTAINED.
  3. IF AN EMPLOYEE OR PROSPECTIVE EMPLOYEE NEEDS BACKGROUND AND SECURI-
TY CLEARANCE IN ORDER TO BE COMPLIANT WITH THE ADMINISTRATION OF FEDERAL
STUDENT  LOANS  OR  OTHER FEDERAL PROGRAMS UNDER THE FEDERAL DIRECT LOAN
PROGRAM, THE CORPORATION SHALL BE AUTHORIZED TO REQUIRE SUCH AN EMPLOYEE
OR PROSPECTIVE EMPLOYEE TO SUBMIT TO THE CORPORATION OR OTHER  STATE  OR
FEDERAL  GOVERNMENT  AGENCY  AUTHORIZED  TO  PERFORM SUCH INVESTIGATIONS
IDENTIFYING INFORMATION,  WHICH  SHALL  INCLUDE  FINGERPRINTS,  PERSONAL
INFORMATION, OR OTHER AUTHORIZATIONS, REQUIRED BY THE CORPORATION OR THE
DIVISION  OF  CRIMINAL  JUSTICE  SERVICES  OR  FEDERAL GOVERNMENT AGENCY
AUTHORIZED TO PERFORM SUCH INVESTIGATIONS. THE FINGERPRINTS SO  OBTAINED
SHALL  BE  FORTHWITH  FORWARDED  TO  THE  DIVISION  OF  CRIMINAL JUSTICE
SERVICES FOR A STATE CRIMINAL HISTORY  RECORD  CHECK,  AND  THE  FEDERAL
BUREAU OF INVESTIGATION OR OTHER FEDERAL GOVERNMENT AGENCY HAVING FACIL-
ITIES  FOR  CONDUCTING A NATIONAL CRIMINAL HISTORY RECORD CHECK, FOR THE
PURPOSES OF DETERMINING WHETHER OR  NOT  CRIMINAL  CHARGES  ARE  PENDING
AGAINST  THE  EMPLOYEE  OR  PROSPECTIVE  EMPLOYEE  OR WHETHER OR NOT THE
EMPLOYEE OR PROSPECTIVE EMPLOYEE HAD  PREVIOUSLY  BEEN  CONVICTED  OF  A
CRIME,  AND  SUCH  AGENCY SHALL REPORT A FINDING OF SUCH PENDING CHARGES
AND PREVIOUS CONVICTIONS, IF ANY, TO THE CORPORATION IN  WRITING  OR  BY
ELECTRONIC  MEANS OR ANY OTHER METHOD AGREED UPON BY THE CORPORATION AND
THE AGENCY.   ALL SUCH CRIMINAL  HISTORY  RECORDS  OR  OTHER  BACKGROUND
INFORMATION  RECEIVED  BY THE CORPORATION SHALL BE CONFIDENTIAL PURSUANT
TO APPLICABLE FEDERAL AND STATE LAWS, RULES AND REGULATIONS,  AND  SHALL
NOT  BE  PUBLISHED  OR IN ANY WAY DISCLOSED EXCEPT TO THOSE EMPLOYEES OF
THE CORPORATION RESPONSIBLE FOR EVALUATING THE INFORMATION  OBTAINED  OR
UPON  THE REQUEST OF FEDERAL OFFICIALS RESPONSIBLE FOR ADMINISTRATION OF
A FEDERAL STUDENT  LOAN  PROGRAM.  THE  CORPORATION  SHALL  PROVIDE  THE
SUBJECT OF THE CRIMINAL HISTORY CHECK OR CHECKS WITH A COPY OF ANY CRIM-
INAL  HISTORY  RECORD  AND  THE  SUBJECT  SHALL  HAVE  THE RIGHT TO SEEK
CORRECTION OF ANY INCORRECT INFORMATION CONTAINED IN SUCH RECORDS PURSU-
ANT TO APPLICABLE STATE AND FEDERAL LAWS AND REGULATIONS.
  S 2. This act shall take effect immediately.

2011-S3987B (ACTIVE) - Details

Law Section:: Education Law
Laws Affected:: Add §652-a, Ed L

2011-S3987B (ACTIVE) - Summary

Authorizes performance of credit, security clearance and criminal background checks of employees and prospective employees of the New York state higher education services corporation.

2011-S3987B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S3987B

TITLE OF BILL:
An act
to amend
the education law, in relation to permitting credit, security clearance,
and criminal background checks of employees of the Higher Education
Services Corporation

PURPOSE OF BILL:

This bill would amend the Education Law to permit background
investigations, including criminal background checks and credit
checks, of certain current and prospective Higher Education Services
Corporation (HESC) employees, as required by the U.S. Department of
Education for the performance of services under new and existing
contracts related to the administration of federal student loans.

SUMMARY OF PROVISIONS:

Section 1 of this bill would add a new Section 652-a to the Education
Law to authorize HESC to perform background investigations,
including criminal background checks and credit checks, for all
current and prospective employees, when necessary for employee
participation in the administration of federal student loans or other
federal programs under the Federal Direct Loan Program (FDLP). Such

investigations would be done in conjunction with the Department of
Criminal Justice Services (DCJS) or a federal government agency with
lawful authority to obtain the necessary information. The bill also
provides for the confidentiality of information obtained during the
course of investigations. Further, subjects of background
investigations will be provided with information regarding the
factors considered in making a determination pursuant to the new
section and subjects will have the opportunity to seek correction of
inaccurate information contained in background records. HESC shall be
responsible for any fees associated with a background investigation
of a current employee.

Section 2 of the bill would provide for an immediate effective date.

EXISTING LAW:

Currently, Civil Service Law .50(4) permits state departments (upon
engaging in a delineated process) to run criminal background checks
on all new employees, with DCJS performing the criminal background
checks. However, .50(4) specifically excludes from its ambit several
classifications of employees: existing employees, New York State
employees seeking transfer employment under of Civil Service Law §70,
New York State employees who are on a preferred list subject to Civil
Service Law §81 and
who are seeking employment through their place on an eligible list as
defined in Civil Service Law §56 and who have successfully completed
a promotional exam subject to Civil Service Law §52.

PRIOR LEGISLATIVE HISTORY:


This is a new proposal.

STATEMENT IN SUPPORT:

Over the past five years, HESC has paid out more than $167 million in
State financial aid programs through its participation in the Federal
Family Education Loan (FFEL) Program.

Provisions of the Health Care and Education Reconciliation Act (HCERA)
(HR4872) passed in March 2010 eliminated future student loan
originations under the FFEL Program, which went into effect on July
1,2010 As a result, all federal student loans will now be originated
under the FDLP. HESC is seeking to obtain a contract to perform
services for FDLP to maintain current agency funding levels.

Generally, entities seeking to do business with the federal government
must meet a series of security and technology standards delineated by
the Department of Commerce's National Institute of Standards and
Technology (NIST). Among these standards is the requirement that all
employees of the contracting entity be subject to background and/or
security clearance investigations and credit screening. To ensure
that HESC is able to meet current and anticipated federal contracting
requirements, HESC is seeking the authorization to conduct such
investigations on those HESC employees necessary for HESC to perform
services under existing and new federal contracts.

BUDGET IMPLICATIONS

This bill would have a positive fiscal impact, as it would allow HESC
to participate in federal revenue-generating programs.

EFFECTIVE DATE

The bill would take effect immediately.

2011-S3987B (ACTIVE) - Bill Text download pdf

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

                                 3987--B

                       2011-2012 Regular Sessions

                            I N  S E N A T E

                             March 11, 2011
                               ___________

Introduced  by  Sen.  LAVALLE  --  (at  request  of the Higher Education
  Services Corporation) -- read twice  and  ordered  printed,  and  when
  printed  to  be  committed  to  the  Committee  on Higher Education --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted  to  said committee -- committee discharged, bill amended,
  ordered reprinted as amended and recommitted to said committee

AN ACT to amend the education law, in  relation  to  permitting  credit,
  security clearance, and criminal background checks of employees of the
  Higher Education Services Corporation

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

  Section 1.  The education law is amended by adding a new section 652-a
to read as follows:
  S 652-A. EMPLOYEES OF THE NEW YORK  STATE  HIGHER  EDUCATION  SERVICES
CORPORATION;  BACKGROUND CHECKS. 1. CURRENT AND PROSPECTIVE EMPLOYEES OF
THE CORPORATION SHALL BE SUBJECT TO BACKGROUND  AND  SECURITY  CLEARANCE
INVESTIGATIONS  REQUIRED  IN  THE  ORDINARY  COURSE OF THE CORPORATION'S
BUSINESS IF BACKGROUND AND SECURITY CLEARANCE ARE NECESSARY FOR EMPLOYEE
PARTICIPATION OR PROPOSED PARTICIPATION IN THE ADMINISTRATION OF FEDERAL
STUDENT LOANS OR OTHER FEDERAL PROGRAMS UNDER THE  FEDERAL  DIRECT  LOAN
PROGRAM.
  2.    SUCH  BACKGROUND  OR  SECURITY  CLEARANCE INVESTIGATION SHALL BE
PERFORMED BY THE CORPORATION OR ON BEHALF OF THE CORPORATION BY A  STATE
OR  FEDERAL GOVERNMENT AGENCY AUTHORIZED TO PERFORM SUCH INVESTIGATIONS.
THE CORPORATION SHALL BE AUTHORIZED TO  REQUEST  AND  RECEIVE  FROM  THE
DIVISION  OF  CRIMINAL  JUSTICE  SERVICES  OR  FEDERAL GOVERNMENT AGENCY
HAVING FACILITIES  FOR  PERFORMING  SUCH  SERVICES:  SECURITY  CLEARANCE
INFORMATION,  INCLUDING  CRIMINAL  BACKGROUND AND CREDIT INFORMATION FOR
CORPORATION EMPLOYEES, NEW YORK STATE EMPLOYEES SEEKING TRANSFER TO  THE
CORPORATION  UNDER  SECTION  SEVENTY  OF THE CIVIL SERVICE LAW, NEW YORK
STATE EMPLOYEES SEEKING HIRE AT THE CORPORATION WHO ARE ON  A  PREFERRED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD09755-07-1

S. 3987--B                          2

LIST SUBJECT TO SECTION EIGHTY-ONE OF THE CIVIL SERVICE LAW, OR NEW YORK
STATE  EMPLOYEES  SEEKING HIRE AT THE CORPORATION THROUGH THEIR PLACE ON
AN ELIGIBLE LIST AS DEFINED IN SECTION FIFTY-SIX OF  THE  CIVIL  SERVICE
LAW  AND  WHO  HAVE SUCCESSFULLY COMPLETED A PROMOTIONAL EXAM SUBJECT TO
SECTION FIFTY-TWO OF THE CIVIL SERVICE LAW IF SUCH SECURITY  INFORMATION
IS  NECESSARY  FOR  THE  EMPLOYEES TO BE IN COMPLIANCE WITH THE ADMINIS-
TRATION OF FEDERAL STUDENT LOANS OR OTHER  FEDERAL  PROGRAMS  UNDER  THE
FEDERAL  DIRECT  LOAN PROGRAM.  THE CORPORATION SHALL INFORM SUBJECTS OF
BACKGROUND AND SECURITY CLEARANCE INVESTIGATIONS OF THE  FACTORS  TO  BE
CONSIDERED  IN THE EVALUATION OF THE CRIMINAL BACKGROUND INFORMATION AND
CREDIT INFORMATION OBTAINED.
  3. IF AN EMPLOYEE OR PROSPECTIVE EMPLOYEE NEEDS BACKGROUND AND SECURI-
TY CLEARANCE IN ORDER TO BE COMPLIANT WITH THE ADMINISTRATION OF FEDERAL
STUDENT LOANS OR OTHER FEDERAL PROGRAMS UNDER THE  FEDERAL  DIRECT  LOAN
PROGRAM, THE CORPORATION SHALL BE AUTHORIZED TO REQUIRE SUCH AN EMPLOYEE
OR  PROSPECTIVE  EMPLOYEE TO SUBMIT TO THE CORPORATION OR OTHER STATE OR
FEDERAL GOVERNMENT AGENCY  AUTHORIZED  TO  PERFORM  SUCH  INVESTIGATIONS
IDENTIFYING  INFORMATION,  WHICH  SHALL  INCLUDE  FINGERPRINTS, PERSONAL
INFORMATION, OR OTHER AUTHORIZATIONS, REQUIRED BY THE CORPORATION OR THE
DIVISION OF CRIMINAL  JUSTICE  SERVICES  OR  FEDERAL  GOVERNMENT  AGENCY
AUTHORIZED  TO PERFORM SUCH INVESTIGATIONS. THE FINGERPRINTS SO OBTAINED
SHALL BE  FORTHWITH  FORWARDED  TO  THE  DIVISION  OF  CRIMINAL  JUSTICE
SERVICES  FOR  A  STATE  CRIMINAL  HISTORY RECORD CHECK, AND THE FEDERAL
BUREAU OF INVESTIGATION OR OTHER FEDERAL GOVERNMENT AGENCY HAVING FACIL-
ITIES FOR CONDUCTING A NATIONAL CRIMINAL HISTORY RECORD CHECK,  FOR  THE
PURPOSES  OF  DETERMINING  WHETHER  OR  NOT CRIMINAL CHARGES ARE PENDING
AGAINST THE EMPLOYEE OR PROSPECTIVE  EMPLOYEE  OR  WHETHER  OR  NOT  THE
EMPLOYEE  OR  PROSPECTIVE  EMPLOYEE  HAD  PREVIOUSLY BEEN CONVICTED OF A
CRIME, AND SUCH AGENCY SHALL REPORT A FINDING OF  SUCH  PENDING  CHARGES
AND  PREVIOUS  CONVICTIONS,  IF ANY, TO THE CORPORATION IN WRITING OR BY
ELECTRONIC MEANS OR ANY OTHER METHOD AGREED UPON BY THE CORPORATION  AND
THE  AGENCY.    ALL  SUCH  CRIMINAL  HISTORY RECORDS OR OTHER BACKGROUND
INFORMATION RECEIVED BY THE CORPORATION SHALL BE  CONFIDENTIAL  PURSUANT
TO  APPLICABLE  FEDERAL AND STATE LAWS, RULES AND REGULATIONS, AND SHALL
NOT BE PUBLISHED OR IN ANY WAY DISCLOSED EXCEPT TO  THOSE  EMPLOYEES  OF
THE  CORPORATION  RESPONSIBLE FOR EVALUATING THE INFORMATION OBTAINED OR
UPON THE REQUEST OF FEDERAL OFFICIALS RESPONSIBLE FOR ADMINISTRATION  OF
A  FEDERAL  STUDENT  LOAN PROGRAM.   ALL DETERMINATIONS MADE PURSUANT TO
THIS SECTION SHALL BE IN ACCORDANCE WITH THE PROVISIONS  OF  SUBDIVISION
SIXTEEN OF SECTION TWO HUNDRED NINETY-SIX OF THE EXECUTIVE LAW AND ARTI-
CLE  TWENTY-THREE-A  OF THE CORRECTION LAW UNLESS SUCH PROVISIONS ARE IN
DIRECT CONFLICT WITH FEDERAL LAW OR FEDERAL LOAN  PROGRAM  REQUIREMENTS.
THE  CORPORATION SHALL PROVIDE THE SUBJECT OF THE CRIMINAL HISTORY CHECK
OR CHECKS WITH A COPY OF ANY CRIMINAL HISTORY  RECORD  TOGETHER  WITH  A
COPY  OF  ARTICLE  TWENTY-THREE-A  OF THE CORRECTION LAW AND INFORM SUCH
APPLICANT OF HIS OR HER  RIGHT  TO  SEEK  CORRECTION  OF  ANY  INCORRECT
INFORMATION  CONTAINED IN SUCH RECORD.  THE SUBJECT SHALL HAVE THE RIGHT
TO SEEK CORRECTION  OF  ANY  INCORRECT  INFORMATION  CONTAINED  IN  SUCH
RECORDS  PURSUANT  TO APPLICABLE STATE AND FEDERAL LAWS AND REGULATIONS.
THE CORPORATION SHALL BE RESPONSIBLE FOR ANY FEES ASSOCIATED WITH  BACK-
GROUND  AND SECURITY CHECKS REQUIRED BY THIS SECTION FOR CURRENT EMPLOY-
EES.
  S 2. This act shall take effect immediately.

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Senate Bill S3987A

Signed By Governor

Sponsored By

Archive: Last Bill Status Via A8159 - Signed by Governor

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Jun 22, 2011 - Floor Vote

Floor Vote: Jun 22, 2011

Jun 22, 2011 - Rules Committee Vote

Rules Committee Vote: Jun 22, 2011

Bill Amendments

2011-S3987 - Details

2011-S3987 - Summary

2011-S3987 - Sponsor Memo

2011-S3987 - Bill Text download pdf

2011-S3987A - Details

2011-S3987A - Summary

2011-S3987A - Sponsor Memo

2011-S3987A - Bill Text download pdf

2011-S3987B (ACTIVE) - Details

2011-S3987B (ACTIVE) - Summary

2011-S3987B (ACTIVE) - Sponsor Memo

2011-S3987B (ACTIVE) - Bill Text download pdf

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Senate Bill S3987A

Signed By Governor

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Sponsored By

Kenneth P. LaValle

Archive: Last Bill Status Via A8159 - Signed by Governor

Actions

Votes

Bill Amendments

2011-S3987 - Details

2011-S3987 - Summary

2011-S3987 - Sponsor Memo

2011-S3987 - Bill Text download pdf

2011-S3987A - Details

2011-S3987A - Summary

2011-S3987A - Sponsor Memo

2011-S3987A - Bill Text download pdf

2011-S3987B (ACTIVE) - Details

2011-S3987B (ACTIVE) - Summary

2011-S3987B (ACTIVE) - Sponsor Memo

2011-S3987B (ACTIVE) - Bill Text download pdf

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