S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3295
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 22, 2021
                                ___________
 
 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 standards for for-pro-
   fit higher education institutions
 
   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. STANDARDS FOR FOR-PROFIT HIGHER  EDUCATION  INSTITUTIONS.  1.
 FOR  THE  PURPOSES  OF  THIS  SECTION THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (A) "FOR-PROFIT INSTITUTION OF HIGHER EDUCATION" MEANS A SCHOOL THAT:
   (I) PROVIDES A PROGRAM  LEADING  TO  AN  ASSOCIATES  OR  BACCALAUREATE
 DEGREE;
   (II)  IS  LEGALLY AUTHORIZED IN NEW YORK STATE TO PROVIDE A PROGRAM OF
 EDUCATION BEYOND SECONDARY EDUCATION; AND
   (III) IS NEITHER A PUBLIC OR NON-PROFIT INSTITUTION.
   (B) "STUDENT INSTRUCTION"  MEANS  EXPENDITURES  FOR  SALARIES,  FRINGE
 BENEFITS,  PROFESSIONAL DEVELOPMENT EXPENSES, AND OTHER PAYMENTS MADE TO
 INSTRUCTORS RELATED TO CLASSROOM INSTRUCTION.
   (C) "ACADEMIC SUPPORT AND ADVISING" MEANS EXPENDITURES RELATED TO  THE
 ADVISEMENT OF STUDENTS ON COURSE SELECTION OR OUT OF CLASSROOM TUTORING.
   (D)  "CAREER SERVICES" MEANS EXPENDITURES IN ASSISTING STUDENTS IN THE
 AREAS OF RESUME AND COVER LETTER WRITING,  INTERVIEWING  AND  STRATEGIES
 FOR GETTING A JOB.
   2.  (A)  COMMENCING IN THE TWO THOUSAND TWENTY-ONE--TWO THOUSAND TWEN-
 TY-TWO ACADEMIC YEAR AND THEREAFTER, A FOR-PROFIT INSTITUTION OF  HIGHER
 EDUCATION  SHALL  SPEND NO LESS THAN FIFTY PERCENT OF SUCH INSTITUTION'S
 ANNUAL REVENUES ON EXPENDITURES IN THE  AREAS  OF  STUDENT  INSTRUCTION,
 ACADEMIC SUPPORT AND ADVISING, OR CAREER SERVICES.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02084-01-1
              

 A. 3295                             2
 
   (B) EXPENDITURES MADE FOR IN THE AREAS OF STUDENT INSTRUCTION, ACADEM-
 IC  SUPPORT  AND ADVISING, OR CAREER SERVICES SHALL NOT INCLUDE EXPENDI-
 TURES FOR STUDENT RECRUITMENT, MARKETING, DIRECT MAILING OR EXPENSES  OF
 NON-INSTRUCTIONAL  STAFF  WHOSE  PRIMARY DUTIES ARE NOT STUDENT INSTRUC-
 TION, ACADEMIC SUPPORT AND ADVISING, OR CAREER SERVICES.
   (C)  A  FOR-PROFIT  INSTITUTION OF HIGHER EDUCATION THAT FAILS TO MEET
 THE REQUIREMENT OF PARAGRAPH (A) OF THIS SUBDIVISION SHALL BE INELIGIBLE
 TO ENROLL NEW STUDENTS PARTICIPATING IN  ANY  PROGRAM  AUTHORIZED  UNDER
 THIS  CHAPTER FOR A PERIOD OF NOT LESS THAN TWO ACADEMIC YEARS, COMMENC-
 ING WITH THE ACADEMIC YEAR IMMEDIATELY FOLLOWING THE YEAR IN  WHICH  THE
 INSTITUTION'S  FINANCIAL  STATEMENT  DEMONSTRATING  FAILURE  TO MEET THE
 REQUIREMENT FOR THE ACADEMIC  YEAR  IS  SUBMITTED  TO  THE  COMMISSIONER
 PURSUANT  TO SUBDIVISION THREE OF THIS SECTION. TO REGAIN ELIGIBILITY TO
 ENROLL NEW STUDENTS PARTICIPATING IN THE PROGRAMS AUTHORIZED UNDER  THIS
 CHAPTER,  A FOR-PROFIT INSTITUTION OF HIGHER EDUCATION SHALL DEMONSTRATE
 COMPLIANCE WITH PARAGRAPH (A) OF THIS SUBDIVISION FOR A MINIMUM  OF  TWO
 CONSECUTIVE ACADEMIC YEARS AFTER THE ACADEMIC YEAR IN WHICH THE INSTITU-
 TION BECAME INELIGIBLE.
   3.  ON  OR  BEFORE SEPTEMBER FIRST, A FOR-PROFIT INSTITUTION OF HIGHER
 EDUCATION SHALL ANNUALLY SUBMIT TO THE COMMISSIONER A DETAILED FINANCIAL
 STATEMENT DISCLOSING THE INSTITUTION'S REVENUES AND EXPENDITURES FOR THE
 PRIOR ACADEMIC YEAR AND SHALL DISCLOSE THE SOURCES OF REVENUE BY TYPE AS
 WELL AS TYPES OF EXPENDITURES. SUCH STATEMENT SHALL ALSO INCLUDE A LIST-
 ING OF THE TOTAL INDIVIDUAL COMPENSATION FROM  THE  INSTITUTION  TO  ALL
 OFFICERS,  DIRECTORS,  BOARD  MEMBERS,  TRUSTEES, SHAREHOLDERS, MEMBERS,
 OWNERS, AND SENIOR ADMINISTRATORS, INCLUDING ALL FRINGE BENEFITS, BONUS-
 ES, AND PERFORMANCE INCENTIVES PAID IN THE  PRIOR  ACADEMIC  YEAR.  SUCH
 STATEMENT  SHALL  ADHERE TO GENERALLY ACCEPTED ACCOUNTING PRINCIPLES AND
 SHALL BE CERTIFIED BY AN INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANT  AND
 CERTIFIED  BY  THE PRESIDENT OF THE INSTITUTION. SUCH STATEMENT SHALL BE
 SUBMITTED IN A FORM AND MANNER AS DETERMINED BY THE COMMISSIONER.
   4. THE COMMISSIONER IS AUTHORIZED TO PROMULGATE RULES AND REGULATIONS,
 AND MAY PROMULGATE EMERGENCY REGULATIONS, NECESSARY FOR THE  IMPLEMENTA-
 TION OF THE PROVISIONS OF THIS SECTION.
   § 2. This act shall take effect immediately.