Assembly Bill A7769

2019-2020 Legislative Session

Relates to reporting and publishing of certain financial statements and statistical reports received by the commissioner of education

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Archive: Last Bill Status - In Assembly Committee

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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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to higher education
Jun 14, 2019	amend by restoring to original print 7769
Jun 11, 2019	amend and recommit to higher education
May 20, 2019	referred to higher education
Jun 11, 2019	print number 7769a

Bill Amendments

Original

co-Sponsors

2019-A7769 (ACTIVE) - Details

Current Committee:: Assembly Higher Education
Law Section:: Education Law
Laws Affected:: Add §239-c, Ed L
Versions Introduced in 2021-2022 Legislative Session:: A3296

2019-A7769 (ACTIVE) - Summary

Requires certain for-profit institutions to make annual reports to the commissioner of education and requires the commissioner to make such reports publicly available.

2019-A7769 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7769
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2019
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Higher Education
 
 AN ACT to amend the education law, in relation to reporting and publish-
   ing of certain financial statements and statistical  reports  received
   by the commissioner of education

   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  239-c
 to read as follows:
   § 239-C. FOR-PROFIT HIGHER EDUCATION INSTITUTIONS; ENHANCED REPORTING.
 1.  AS  USED  IN THIS SECTION THE TERM "FOR-PROFIT INSTITUTION OF HIGHER
 EDUCATION" MEANS A SCHOOL THAT:
   (A) PROVIDES A PROGRAM  LEADING  TO  AN  ASSOCIATES  OR  BACCALAUREATE
 DEGREE;
   (B)  IS  LEGALLY  AUTHORIZED IN NEW YORK STATE TO PROVIDE A PROGRAM OF
 EDUCATION BEYOND SECONDARY EDUCATION; AND
   (C) IS NEITHER A PUBLIC OR NONPROFIT INSTITUTION.
   2. FOR SCHOOL FISCAL YEARS BEGINNING ON  AND  AFTER  JULY  FIRST,  TWO
 THOUSAND  TWENTY,  EACH FOR-PROFIT INSTITUTION OF HIGHER EDUCATION SHALL
 FILE ANNUALLY AN AUDITED FINANCIAL STATEMENT AUDITED ACCORDING TO GENER-
 ALLY ACCEPTED AUDITING STANDARDS  BY  AN  INDEPENDENT  CERTIFIED  PUBLIC
 ACCOUNTANT  OR  AN INDEPENDENT PUBLIC ACCOUNTANT AND STATISTICAL REPORTS
 CERTIFIED BY THE OWNER OR OPERATOR OF THE INSTITUTION,  AS  REQUIRED  BY
 THE  COMMISSIONER; PROVIDED, HOWEVER, THAT THE COMMISSIONER SHALL ACCEPT
 A COPY OF A CURRENT FINANCIAL STATEMENT PREVIOUSLY FILED BY AN  INSTITU-
 TION   WITH  ANY  OTHER  GOVERNMENTAL  AGENCY  IN  COMPLIANCE  WITH  THE
 PROVISIONS OF ANY FEDERAL OR STATE LAWS, OR RULES OR REGULATIONS IF SUCH
 STATEMENT CONTAINS ALL OF THE INFORMATION REQUIRED  UNDER  THIS  SECTION
 AND  CONFORMS  TO  THIS  SECTION'S  REQUIREMENTS OF AUDITING, REVIEW AND
 CERTIFICATION. ANY REQUIRED AUDIT OF THE FINANCIAL  STATEMENT  SHALL  BE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11661-02-9

 A. 7769                             2
 
 PAID  FOR  BY  THE  INSTITUTION,  AND THE RESULTS OF SUCH AUDIT SHALL BE
 FORWARDED TO THE COMMISSIONER.
   3.  THE  COMMISSIONER  MAY  REQUIRE AUDITED STATISTICAL REPORTS UPON A
 DETERMINATION THAT A FOR-PROFIT  INSTITUTION  OF  HIGHER  EDUCATION  HAS
 PROVIDED  FALSE  OR INACCURATE CERTIFIED STATISTICAL REPORTS. THE FINAN-
 CIAL STATEMENTS SHALL BE BASED ON THE FISCAL YEAR OF THE INSTITUTION AND
 SHALL ALSO INCLUDE AN ITEMIZED ACCOUNT OF TUITION REFUNDS DUE AND  OWING
 TO  PAST  OR  PRESENTLY  ENROLLED  STUDENTS.  STATISTICAL  REPORTS SHALL
 INCLUDE, BUT NOT BE LIMITED TO, ENROLLMENT, COMPLETION, AVERAGE  STUDENT
 DEBT AND PLACEMENT DATA.
   4.  FOR  SCHOOL  FISCAL  YEARS  BEGINNING ON AND AFTER JULY FIRST, TWO
 THOUSAND TWENTY, THE COMMISSIONER  SHALL  MAKE  PUBLICLY  AVAILABLE  AND
 PUBLISH ON THE WEBSITE OF THE DEPARTMENT ALL ANNUAL FINANCIAL STATEMENTS
 AND  STATISTICAL REPORTS RECEIVED PURSUANT TO THIS SECTION WITHIN THIRTY
 DAYS OF RECEIPT BY THE COMMISSIONER OF SUCH STATEMENTS AND REPORTS.  THE
 DEPARTMENT  SHALL  MAINTAIN  AND MAKE PUBLICLY AVAILABLE SUCH RECORDS ON
 ITS WEBSITE FOR A PERIOD OF NO LESS THAN TEN YEARS.
   § 2. Paragraph e of subdivision 4 of section 5001 of the education law
 is amended by adding a new subparagraph (iv) to read as follows:
   (IV) FOR SCHOOL FISCAL YEARS BEGINNING ON AND AFTER  JULY  FIRST,  TWO
 THOUSAND  TWENTY,  THE  COMMISSIONER  SHALL  MAKE PUBLICLY AVAILABLE AND
 PUBLISH ON THE WEBSITE OF THE DEPARTMENT ALL ANNUAL FINANCIAL STATEMENTS
 AND STATISTICAL REPORTS RECEIVED PURSUANT TO THIS PARAGRAPH WITHIN THIR-
 TY DAYS OF RECEIPT BY THE COMMISSIONER OF SUCH STATEMENTS  AND  REPORTS.
 THE  DEPARTMENT  SHALL MAINTAIN AND MAKE PUBLICLY AVAILABLE SUCH RECORDS
 ON ITS WEBSITE FOR A PERIOD OF NO LESS THAN TEN YEARS.
   § 3. This act shall take effect immediately.

co-Sponsors

2019-A7769A - Details

Current Committee:: Assembly Higher Education
Law Section:: Education Law
Laws Affected:: Add §239-c, Ed L
Versions Introduced in 2021-2022 Legislative Session:: A3296

2019-A7769A - Summary

Requires certain for-profit institutions to make annual reports to the commissioner of education and requires the commissioner to make such reports publicly available.

2019-A7769A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  7769--A
 
                        2019-2020 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               May 20, 2019
                                ___________
 
 Introduced  by  M.  of  A.  EPSTEIN,  GOTTFRIED,  REYES -- read once and
   referred 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 reporting and publish-
   ing  of  certain financial statements and statistical reports received
   by the commissioner of education
 
   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 239-c
 to read as follows:
   § 239-C. FOR-PROFIT HIGHER EDUCATION INSTITUTIONS; ENHANCED REPORTING.
 1. DEFINITIONS.  AS USED IN THIS SECTION THE TERM  "FOR-PROFIT  INSTITU-
 TION  OF  HIGHER  EDUCATION"  MEANS  ANY LICENSED PRIVATE CAREER SCHOOL,
 CERTIFIED ENGLISH AS A  SECOND  LANGUAGE  SCHOOL,  OR  ONLINE  EDUCATION
 MARKETPLACE  AS  DEFINED  IN ARTICLE ONE HUNDRED ONE OF THIS CHAPTER, OR
 COLLEGE THAT:
   (A) PROVIDES A PROGRAM  LEADING  TO  AN  ASSOCIATES  OR  BACCALAUREATE
 DEGREE;
   (B)  IS  LEGALLY  AUTHORIZED IN NEW YORK STATE TO PROVIDE A PROGRAM OF
 EDUCATION BEYOND SECONDARY EDUCATION; AND
   (C) IS NEITHER A PUBLIC OR NONPROFIT INSTITUTION.
   2. THE NYS PROPRIETARY INSTITUTION DISCLOSURE WEBSITE. (A) THE COMMIS-
 SIONER SHALL ESTABLISH A PUBLICLY ACCESSIBLE  WEBSITE  FOR  THE  DISSEM-
 INATION  OF  DATA  AND DISCLOSURES RELATED TO FOR-PROFIT INSTITUTIONS OF
 HIGHER EDUCATION. THE WEBSITE AT A MINIMUM SHALL PUBLISH:
   (I) A LISTING OF EACH FOR-PROFIT INSTITUTION OF  HIGHER  EDUCATION  IN
 THE  STATE. SUCH LISTING OF EACH FOR-PROFIT INSTITUTION OF HIGHER EDUCA-
 TION SHALL DISPLAY  INFORMATION  INCLUDING,  BUT  NOT  LIMITED  TO,  THE
 FOLLOWING:

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11661-07-9

 A. 7769--A                          2
 
   (1)  ALL  APPROVED  LOCATIONS  OF THE FOR-PROFIT INSTITUTION OF HIGHER
 EDUCATION;
   (2)  LISTING  OF ALL DEGREE AND CERTIFICATE PROGRAMS OF THE FOR-PROFIT
 INSTITUTION OF HIGHER EDUCATION THAT HAVE BEEN APPROVED BY  THE  DEPART-
 MENT;
   (3)  BASIC  INFORMATION OF THE FOR-PROFIT INSTITUTION OF HIGHER EDUCA-
 TION SUCH AS THE YEAR FOUNDED AND ANY ACCREDITATIONS HELD;
   (4) WHETHER THE FOR-PROFIT  INSTITUTION  OF  HIGHER  EDUCATION  IS  AN
 APPROVED  STATE  AUTHORIZATION RECIPROCITY AGREEMENT INSTITUTION AND, IF
 SO, THE INSTITUTION'S MEMBERSHIP STATUS;
   (5) WHETHER THE FOR-PROFIT INSTITUTION OF HIGHER EDUCATION IS ELIGIBLE
 TO PARTICIPATE IN FEDERAL TITLE IV PROGRAMS;
   (6) WHETHER THE FOR-PROFIT INSTITUTION  OF  HIGHER  EDUCATION  PARTIC-
 IPATES IN ANY STATE SPECIFIC PROGRAMS INCLUDING, BUT NOT LIMITED TO, THE
 TUITION  ASSISTANCE  PROGRAM,  ENHANCED  TUITION  AWARDS  PROGRAM,  OR A
 PROGRAM PURSUANT TO SECTION SIXTY-FOUR HUNDRED FIFTY-ONE OF  THIS  CHAP-
 TER.
   (II)  FORMS  AND/OR  LINKS  TO  THE  FOR-PROFIT  INSTITUTION OF HIGHER
 EDUCATION'S COMPLAINT PROCESS AND INSTRUCTIONS OR LINKS TO  INSTRUCTIONS
 DETAILING  HOW  STUDENTS  CAN  FORMALLY  MAKE  A COMPLAINT AGAINST THEIR
 PROGRAM TO BOTH THEIR SCHOOL AND LATER, IF NECESSARY, TO THE DEPARTMENT;
   (III) ANY REPORTS PRODUCED REGARDING COMPLAINTS THAT HAVE BEEN  INVES-
 TIGATED  BY  THE  DEPARTMENT AND NOTICE OF ANY ADVERSE ACTIONS THAT HAVE
 BEEN TAKEN BY THE DEPARTMENT AGAINST A FOR-PROFIT INSTITUTION OF  HIGHER
 EDUCATION PROGRAM DUE TO A FINDING OF A VIOLATION;
   (IV)  AN  ELECTRONIC  MEANS  FOR  FORMER STUDENTS OF CLOSED FOR-PROFIT
 INSTITUTIONS OF HIGHER EDUCATION TO FORMALLY REQUEST FROM THE DEPARTMENT
 THEIR STUDENT TRANSCRIPTS OR OTHER RECORDS THAT MAY HAVE BEEN  COLLECTED
 AND DIGITALLY STORED BY THE DEPARTMENT;
   (V)  DATA TRACKING THE ANNUAL ENROLLMENT AT FOR-PROFIT INSTITUTIONS OF
 HIGHER EDUCATION; AND
   (VI) OTHER INFORMATION RELATED TO FOR-PROFIT  INSTITUTIONS  OF  HIGHER
 EDUCATION  THAT  THE COMMISSIONER HAS BEEN REQUIRED BY ANOTHER PROVISION
 OF LAW TO POST ON A PUBLICLY ACCESSIBLE WEBSITE.
   (B) THE DEPARTMENT SHALL ALSO INCLUDE AS A  PART  OF  EACH  FOR-PROFIT
 INSTITUTION OF HIGHER EDUCATION LISTING INFORMATION TAKEN FROM THE ANNU-
 AL  AUDITED  FINANCIAL  STATEMENTS  OF  EACH INSTITUTION. THE DEPARTMENT
 SHALL DISPLAY IN A WAY EASY TO UNDERSTAND BY THE PUBLIC A VISUAL  REPRE-
 SENTATION  PORTRAYING THE FINANCIAL VIABILITY OF THE FOR-PROFIT INSTITU-
 TION. THE DEPARTMENT IN CONSTRUCTING THIS FINANCIAL REPRESENTATION SHALL
 CONSULT WITH MEMBERS OF THE FOR-PROFIT SECTOR TO DEVELOP A CLEAR WAY  TO
 ACCURATELY  DISPLAY  RELEVANT INFORMATION THAT IS PART OF THE FOR-PROFIT
 INSTITUTION'S ANNUAL AUDITED FINANCIAL STATEMENTS. AT MINIMUM, THE VISU-
 AL REPRESENTATION SHOULD CONSIDER FINANCES SPENT  ON  STUDENT  SERVICES,
 RENT  AND  UPKEEP, PAYMENT OF PROFESSORS AND STAFF, AND THE AMOUNT SPENT
 ON ADVERTISING, AND THE FEDERAL FINANCIAL RESPONSIBILITY COMPOSITE SCORE
 OF THE INSTITUTION.
   (C) ALL ACTIONS BY THE  FEDERAL  GOVERNMENT,  AN  ACCREDITOR,  ANOTHER
 STATE,  OR  COUNTRY  TAKEN  AGAINST  A  FOR-PROFIT INSTITUTION OF HIGHER
 EDUCATION MUST BE LISTED IN A CLEAR AND CONSPICUOUS WAY ON EACH FOR-PRO-
 FIT INSTITUTION'S LISTING.
   (D) THE DEPARTMENT SHOULD UPDATE THE WEBSITE LISTING FOR EACH PROPRIE-
 TARY INSTITUTION WITH ANY CHANGES AS SUCH INFORMATION IS RECEIVED AND AT
 A MINIMUM SHALL UPDATE ANNUALLY EACH PROPRIETARY  INSTITUTION'S  LISTING
 FOR ACCURACY.

 A. 7769--A                          3
 
   (E)  THE  COMMISSIONER  SHALL PROMULGATE ANY NECESSARY REGULATIONS FOR
 THE PROVISIONS RELATING TO THE WEBSITE, INCLUDING A FULL ACCOUNT OF  ALL
 THE METRICS THAT THE COMMISSIONER SHALL UTILIZE FOR THE VISUAL REPRESEN-
 TATION  PORTRAYING  A  FOR-PROFIT INSTITUTION'S FINANCIAL VIABILITY. THE
 COMMISSIONER  SHALL  ALSO  PROVIDE  A  PROCESS SO THAT FOR-PROFIT INSTI-
 TUTIONS MAY, IF NEEDED, CHALLENGE WHAT IS LISTED FOR THEIR  INSTITUTION.
 AT  NO TIME DURING A CHALLENGE SHOULD A FOR-PROFIT INSTITUTION'S LISTING
 ON THE PUBLICLY ACCESSIBLE WEBSITE BE COMPLETELY REMOVED.
   3. RAPID ENROLLMENT INCREASES OR DECREASES AT FOR-PROFIT  INSTITUTIONS
 OF  HIGHER  EDUCATION.  (A)  IF A PROGRAM AT A FOR-PROFIT INSTITUTION OF
 HIGHER EDUCATION THAT  HAS  BEEN  APPROVED  BY  THE  DEPARTMENT  HAS  AN
 INCREASE  IN ENROLLMENT EQUAL TO OR MORE THAN FIFTEEN PERCENT ON A YEAR-
 TO-YEAR BASIS SUCH ENROLLMENT INCREASE SHALL  CAUSE  THE  DEPARTMENT  TO
 REVIEW  THE  PROGRAM  WITHIN  THIRTY  BUSINESS  DAYS.  THE REVIEW OF THE
 PROGRAM CONDUCTED BY THE DEPARTMENT SHALL ENSURE THAT AN INSTITUTION  IS
 STILL PROVIDING A QUALITY EDUCATION AND IS IN FULL COMPLIANCE WITH STATE
 LAW AND DEPARTMENTAL REGULATIONS. IF AN INSTITUTION IS NOT IN COMPLIANCE
 THEN THE COMMISSIONER IS EMPOWERED TO TAKE STEPS TO REMEDIATE THE ISSUES
 AND  SHALL FLAG ANY ISSUES DISCOVERED ON THE PUBLICLY ACCESSIBLE WEBSITE
 PURSUANT TO SUBDIVISION TWO OF THIS SECTION.
   (B) IF A PROGRAM AT FOR-PROFIT INSTITUTION OF  HIGHER  EDUCATION  THAT
 HAS  BEEN  APPROVED BY THE DEPARTMENT HAS A DECREASE IN ENROLLMENT EQUAL
 TO OR MORE THAN FIFTEEN PERCENT ON A YEAR-TO-YEAR BASIS SUCH  ENROLLMENT
 DECREASE  SHALL CAUSE THE DEPARTMENT TO REVIEW THE PROGRAM WITHIN THIRTY
 BUSINESS DAYS. THE REVIEW OF THE PROGRAM  CONDUCTED  BY  THE  DEPARTMENT
 SHALL  ENSURE THAT AN INSTITUTION IS STILL PROVIDING A QUALITY EDUCATION
 AND IS IN FULL COMPLIANCE WITH STATE LAW AND  DEPARTMENTAL  REGULATIONS.
 IF  AN INSTITUTION IS NOT IN COMPLIANCE THEN THE DEPARTMENT IS EMPOWERED
 TO TAKE STEPS TO REMEDIATE THE ISSUES AND SHALL FLAG ANY ISSUES  DISCOV-
 ERED  ON  THE PUBLICLY ACCESSIBLE WEBSITE PURSUANT TO SUBDIVISION TWO OF
 THIS SECTION.
   (C) FOR VIOLATIONS DISCOVERED BECAUSE OF REVIEWS TAKEN BY THE  DEPART-
 MENT  PURSUANT  TO  PARAGRAPHS  (A)  AND  (B)   OF THIS SUBDIVISION, THE
 COMMISSIONER DEPENDING ON THE SEVERITY OF THE INFRACTION SHALL HAVE  THE
 AUTHORITY  TO  REQUIRE  A  FOR-PROFIT INSTITUTION OF HIGHER EDUCATION TO
 OPERATE UNDER ADDITIONAL RESTRICTIONS, INCLUDING, BUT  NOT  LIMITED  TO,
 THE FOLLOWING:
   (I)  REQUIRING THE FOR-PROFIT INSTITUTION OF HIGHER EDUCATION TO ENACT
 A REMEDIATION PLAN WITH PERIODIC REPORTING;
   (II) LIMITING NEW STUDENT ENROLLMENT INTO  IMPACTED  PROGRAMS  AT  THE
 FOR-PROFIT INSTITUTION OF HIGHER EDUCATION IN QUESTION; OR
   (III)  INSTITUTING  A  MORATORIUM  ON  ANY  NEW PROGRAMS OR DEGREES OR
 CERTIFICATES THAT CAN BE ISSUED BY A FOR-PROFIT  INSTITUTION  OF  HIGHER
 EDUCATION.
   (D)  THE COMMISSIONER SHALL PROMULGATE RULES AND REGULATIONS GOVERNING
 THE MANNER IN WHICH ENROLLMENT SHALL BE TRACKED BY THE DEPARTMENT  USING
 EXISTING INCOMING DATA.
   (E) NOTHING IN THIS SUBDIVISION SHALL LIMIT ANY OPTIONS FOR SUCH ADDI-
 TIONAL  ENFORCEMENT MEASURES THAT THE COMMISSIONER MAY HAVE BY ANY OTHER
 LAW, RULE, OR REGULATION IN PLACE AT THE TIME OF THE EFFECTIVE  DATE  OF
 THIS SECTION.
   §  2. This act shall take effect one year after it shall have become a
 law. Effective immediately, the addition, amendment and/or repeal of any
 rule or regulation necessary for the implementation of this act  on  its
 effective date are authorized to be made and completed on or before such
 effective date.

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Assembly Bill A7769

Sponsored By

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

co-Sponsors

2019-A7769 (ACTIVE) - Details

2019-A7769 (ACTIVE) - Summary

2019-A7769 (ACTIVE) - Bill Text download pdf

co-Sponsors

2019-A7769A - Details

2019-A7769A - Summary

2019-A7769A - Bill Text download pdf

Comments

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Sponsored By

EPSTEIN

Archive: Last Bill Status - In Assembly Committee

Actions

Bill Amendments

co-Sponsors

Richard Gottfried

Karines Reyes

Charles Barron

2019-A7769 (ACTIVE) - Details

2019-A7769 (ACTIVE) - Summary

2019-A7769 (ACTIVE) - Bill Text download pdf

co-Sponsors

Richard Gottfried

Karines Reyes

2019-A7769A - Details

2019-A7769A - Summary

2019-A7769A - Bill Text download pdf

Comments