S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5598
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 8, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 AN ACT to amend the general business law, in relation to unlawful unfair
   practices of proprietary institutions of higher education
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The general business law is amended by adding a new section
 349-f to read as follows:
   § 349-F. PROPRIETARY INSTITUTIONS OF HIGHER EDUCATION; UNLAWFUL UNFAIR
 PRACTICES.  1.  FOR  PURPOSES OF THIS SECTION, "PROPRIETARY INSTITUTION"
 SHALL BE DEFINED  AS  ANY  LICENSED  PRIVATE  CAREER  SCHOOL,  CERTIFIED
 ENGLISH  AS A SECOND LANGUAGE SCHOOL, OR ONLINE EDUCATION MARKETPLACE AS
 DEFINED IN ARTICLE ONE HUNDRED ONE OF THE EDUCATION LAW, OR A FOR-PROFIT
 DEGREE-GRANTING INSTITUTION  APPROVED  PURSUANT  TO  THE  DEPARTMENT  OF
 EDUCATION.
   2.  IN ADDITION TO THE PROTECTIONS AFFORDED TO CONSUMERS IN THIS ARTI-
 CLE, INCLUDING BUT NOT LIMITED TO SECTION THREE  HUNDRED  FORTY-NINE  OF
 THIS  ARTICLE, FOR STUDENTS THAT ARE ATTENDING OR AT ONE TIME ATTENDED A
 PROPRIETARY INSTITUTION IN THIS STATE, THE ATTORNEY GENERAL WHENEVER  HE
 OR  SHE  BELIEVES  FROM  EVIDENCE  SATISFACTORY  TO  HIM OR HER THAT ANY
 PROPRIETARY INSTITUTION, WHETHER SUCH INSTITUTION MAINTAINS  A  PHYSICAL
 PRESENCE  IN  THE  STATE OR ENROLLS NEW YORK STATE STUDENTS IN AN ONLINE
 DISTANCE EDUCATION PROGRAM, OR AGENT OR EMPLOYEE THEREOF HAS ENGAGED  IN
 OR  IS  ABOUT  TO  ENGAGE  IN  ANY OF THE ACTS OR PRACTICES DEEMED TO BE
 UNLAWFUL UNFAIR UNDER THIS SECTION, THE ATTORNEY GENERAL  MAY  BRING  AN
 ACTION  IN THE NAME AND ON BEHALF OF THE PEOPLE OF THE STATE OF NEW YORK
 TO ENJOIN SUCH UNLAWFUL UNFAIR ACTS OR PRACTICES, OBTAIN RESTITUTION  OF
 ANY  MONEYS  OR  PROPERTY  OBTAINED  DIRECTLY  OR INDIRECTLY BY ANY SUCH
 UNLAWFUL UNFAIR ACTS OR PRACTICES, AND/OR  OBTAIN  CIVIL  PENALTIES  FOR
 VIOLATIONS  OF  THIS SECTION.   IN SUCH ACTION PRELIMINARY RELIEF MAY BE
 GRANTED UNDER ARTICLE SIXTY-THREE OF THE CIVIL PRACTICE LAW AND RULES.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD11534-03-9

 S. 5598                             2
 
   3. AN ACT OR PRACTICE SHALL  BE  DEEMED  UNLAWFUL  UNFAIR  UNDER  THIS
 SECTION IF:
   (A)  IT  CAUSES  OR  IS LIKELY TO CAUSE SUBSTANTIAL INJURY TO STUDENTS
 THAT ARE ATTENDING OR AT ONE TIME  ATTENDED  A  PROPRIETARY  INSTITUTION
 THAT  CANNOT  BE REASONABLY AVOIDED BY STUDENTS THAT ARE ATTENDING OR AT
 ONE TIME ATTENDED A PROPRIETARY INSTITUTION, AS DEFINED AND REGULATED BY
 THE STATE EDUCATION DEPARTMENT; OR
   (B) IT IS NOT OUTWEIGHED BY COUNTERVAILING BENEFITS TO  STUDENTS  THAT
 ARE  ATTENDING  OR  AT  ONE  TIME ATTENDED A PROPRIETARY INSTITUTION, AS
 DEFINED AND REGULATED BY THE STATE EDUCATION DEPARTMENT, OR TO  COMPETI-
 TION.
   4.  NOTHING IN THIS SECTION SHALL SUPERSEDE, AMEND OR REPEAL ANY OTHER
 LAW OF THIS STATE UNDER WHICH THE ATTORNEY GENERAL IS AUTHORIZED TO TAKE
 ANY ACTION OR CONDUCT ANY INQUIRY.
   § 2. The commissioner of education shall promulgate  rules  and  regu-
 lations  necessary  for  the  implementation of this act within 180 days
 after the effective date of this act.
   § 3. This act shall take effect immediately.