NY State Senate Bill 2019-S7148

Senate Bill S7148

2019-2020 Legislative Session

Relates to preventing institutions from implementing contingencies on the receipt of state funding

download bill text pdf

Archive: Last Bill Status - In Senate Committee Higher Education 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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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to higher education

2019-S7148 (ACTIVE) - Details

See Assembly Version of this Bill:: A8838
Current Committee:: Senate Higher Education
Law Section:: Education Law
Laws Affected:: Amd §665-a, Ed L
Versions Introduced in 2021-2022 Legislative Session:: S4237, A3136

2019-S7148 (ACTIVE) - Summary

Prevents institutions from implementing contingencies on the receipt of state funding by preventing the use of language in agreements regarding mandatory arbitration, internal dispute processes, prohibiting class actions and prohibiting the disclosure of any information in the agreement to anyone.

2019-S7148 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S7148

SPONSOR: STAVISKY
 
TITLE OF BILL:

An act to amend the education law, in relation to preventing insti-
tutions from implementing contingencies on the receipt of state funding

 
PURPOSE OR GENERAL IDEA OF BILL:

To prohibit institutions of higher education from participating in state
award programs if they require students to submit to mandatory arbi-
tration and/or other policies that limit students' ability to resolve
complaints in our court system, with state agencies, or other govern-
mental entities.

 
SUMMARY OF PROVISIONS:

Section 1 amends subdivision 1 of section 665-a of the education law by
requiring participation agreements between the Higher Education Services
Corporation (HESC) and institutions wishing to participate in award

programs described in article 14 of the education law to include terms
and conditions making participation in award programs conditional on an
institution's agreement to not require students:
    -to submit to mandatory arbitration before the commencement of any
     legal action
    -resolve a complaint through an internal dispute process
    -waive any rights, forum, or procedure including the right to file
     civil action or a complaint
     refrain from disclosing the terms of the agreement or any violation
     thereof

Institutions are prohibited from threatening or discriminating against
students who are eligible for an award program described in article 14
of the education law who refuse to consent to mandatory arbitration or
other policies that limit their ability to resolve complaints in our
court system, with state agencies, or other governmental entities.

Institutions who wish to participate in award programs described in
article 14 are prohibited from requiring students to enter agreements
that require them to take an affirmative action to preserve their
rights.

Courts can award attorneys' fees to a prevailing plaintiff enforcing
their rights.

Nothing in the paragraph is intended to invalidate arbitration agree-
ments enforceable under the Federal Arbitration Act.

An institution's violation of the terms of its participation agreement
or any other applicable laws, rules, or procedures could result in the
termination of its participation in state award programs after a hearing
process carried out in accordance with the State Administrative Proce-
dure Act.

Section 2 provides the effective date.

 
JUSTIFICATION:

Forced arbitration agreements make it easier for people to get away with
wrongdoing undetected because arbitration lacks transparency and because
arbitration chills people from coming forward to file claims.  Because
the state of New York has limited public funds, we muAt.  ensure those
funds are spent on good and safe products, like quality education.
Forced arbitration would make it easier for any school to conceal that
its product wasn't good and safe. Therefore, we don't want to spend
public funds on schools that use forced arbitration.

 
PRIOR LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
180 days after becoming law.

2019-S7148 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7148
 
                             I N  S E N A T E
 
                              January 8, 2020
                                ___________
 
 Introduced  by Sen. STAVISKY -- 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  preventing  insti-
   tutions  from implementing contingencies on the receipt of state fund-
   ing
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  Subdivision  1  of section 665-a of the education law, as
 amended by chapter 681 of the laws  of  1986,  is  amended  to  read  as
 follows:
   1.  Participation agreement. (A) No institution may participate in the
 general, academic or other award  programs  described  in  this  article
 unless  it  shall  have entered into a written agreement with the corpo-
 ration under which it shall be bound to comply with all laws  and  rules
 applicable to such programs.  EACH PARTICIPATION AGREEMENT SHALL INCLUDE
 THE FOLLOWING TERMS AND CONDITIONS:
   (I)  AN  INSTITUTION  SHALL  NOT,  AS A CONDITION OF ANY AWARD OR LOAN
 PURSUANT TO THIS ARTICLE, REQUIRE ANY STUDENT:
   (1) SUBMIT TO MANDATORY ARBITRATION TO RESOLVE ANY  MATTER  THEREAFTER
 ARISING  UNDER  SUCH  AGREEMENT  PRIOR  TO THE COMMENCEMENT OF ANY LEGAL
 ACTION TO ENFORCE THE PROVISIONS OF SUCH AGREEMENT;
   (2) RESOLVE A COMPLAINT THROUGH AN INTERNAL DISPUTE PROCESS;
   (3) WAIVE ANY RIGHT, FORUM,  OR  PROCEDURE  FOR  A  VIOLATION  OF  ANY
 PROVISION  OF  THIS  CHAPTER,  INCLUDING  THE RIGHT TO FILE AND PURSUE A
 CIVIL ACTION, CLASS ACTION OR A COMPLAINT WITH, OR OTHERWISE NOTIFY, ANY
 STATE AGENCY, OTHER PUBLIC PROSECUTOR, LAW ENFORCEMENT  AGENCY,  OR  ANY
 COURT OR OTHER GOVERNMENTAL ENTITY OF ANY ALLEGED VIOLATION; AND
   (4)  BE PROHIBITED FROM DISCLOSING, DISCUSSING, DESCRIBING OR COMMENT-
 ING UPON THE TERMS OF THE AGREEMENT OR ANY VIOLATION THEREOF.
   (II) AN INSTITUTION SHALL  NOT  THREATEN,  RETALIATE  OR  DISCRIMINATE
 AGAINST  ANY  STUDENT  ELIGIBLE  FOR  SUCH  AWARD OR LOAN BECAUSE OF THE
 REFUSAL BY SUCH STUDENT TO CONSENT TO MANDATORY ARBITRATION, TO  RESOLVE
 A  COMPLAINT  THROUGH  AN  INTERNAL DISPUTE PROCESS, TO WAIVE ANY RIGHT,
 FORUM, OR PROCEDURE FOR A VIOLATION OF THIS CHAPTER, INCLUDING THE RIGHT
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets

                       [ ] is old law to be omitted.
                                                            LBD14224-01-9

 S. 7148                             2
 
 TO FILE AND PURSUE A CIVIL ACTION, CLASS ACTION OR A COMPLAINT WITH,  OR
 OTHERWISE  NOTIFY,  ANY  STATE  AGENCY,  OTHER  PUBLIC  PROSECUTOR,  LAW
 ENFORCEMENT AGENCY, OR ANY COURT OR OTHER  GOVERNMENTAL  ENTITY  OF  ANY
 ALLEGED VIOLATION, OR NOT TO DISCLOSE, DISCUSS, DESCRIBE OR COMMENT UPON
 THE TERMS OF THE AGREEMENT OR ANY VIOLATION THEREOF.
   (III)  FOR  PURPOSES  OF  THIS PARAGRAPH, AN AGREEMENT THAT REQUIRES A
 STUDENT TO OPT OUT OF A WAIVER OR TAKE ANY AFFIRMATIVE ACTION  IN  ORDER
 TO  PRESERVE  THEIR  RIGHTS  IS  DEEMED A CONDITION OF ANY AWARD OR LOAN
 PURSUANT TO THIS ARTICLE.
   (IV) IN ADDITION TO INJUNCTIVE RELIEF AND ANY  OTHER  REMEDIES  AVAIL-
 ABLE,  A  COURT  MAY AWARD A PREVAILING PLAINTIFF ENFORCING THEIR RIGHTS
 UNDER THIS PARAGRAPH REASONABLE ATTORNEYS' FEES.
   (V) NOTHING IN THIS PARAGRAPH IS  INTENDED  TO  INVALIDATE  A  WRITTEN
 ARBITRATION  AGREEMENT  THAT  IS OTHERWISE ENFORCEABLE UNDER THE FEDERAL
 ARBITRATION ACT.
   (B) The participation agreement  may  contain  such  other  terms  and
 conditions,  consistent with such applicable laws, rules and procedures,
 as the president may require in accordance with rules adopted  for  this
 purpose  by  the  board  and shall be developed in consultation with the
 commissioner of education.
   (C) In accordance with rules adopted by the board  for  this  purpose,
 the  president, may suspend, limit or terminate an institution's partic-
 ipation in these programs in the event it shall be  determined  after  a
 hearing  conducted in accordance with the state administrative procedure
 act that the institution has violated  any  applicable  laws,  rules  or
 procedures  provided  for under the agreement in accordance with law and
 the rules of the board.
   § 2. This act shall take effect on the one hundred eightieth day after
 it shall have become a law. Effective immediately, the addition,  amend-
 ment and/or repeal of any rule or regulation necessary for the implemen-
 tation  of  this act on its effective date are authorized to be made and
 completed on or before such effective date.

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