S T A T E O F N E W Y O R K
________________________________________________________________________
3316
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 Consumer Affairs and 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-g to read as follows:
§ 349-G. 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.
LBD02334-02-1
A. 3316 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.