NY State Senate Bill 2021-S5924A

Senate Bill S5924A

Signed By Governor

2021-2022 Legislative Session

Relates to prohibited practices relating to student educational debt

download bill text pdf

Archive: Last Bill Status Via A6938 - Signed by Governor

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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 04, 2022	signed chap.180
Apr 27, 2022	delivered to governor
Mar 31, 2022	returned to assembly passed senate 3rd reading cal.132 substituted for s5924c
Mar 31, 2022	substituted by a6938b
Mar 07, 2022	amended on third reading 5924c
Mar 01, 2022	amended on third reading (t) 5924b
Jan 19, 2022	advanced to third reading
Jan 18, 2022	2nd report cal.
Jan 12, 2022	1st report cal.132
Jan 05, 2022	referred to consumer protection returned to senate died in assembly
May 25, 2021	referred to higher education delivered to assembly passed senate
May 24, 2021	advanced to third reading
May 20, 2021	2nd report cal.
May 18, 2021	1st report cal.1078
Apr 28, 2021	print number 5924a
Apr 28, 2021	amend (t) and recommit to consumer protection
Mar 23, 2021	referred to consumer protection

Votes

- Mar 31, 2022 - Floor Vote
  A6938
  
  44
  
  Aye
  
  19
  
  Nay
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Floor Vote: Mar 31, 2022
      
      aye (44)
      
      Addabbo Jr.
      
      Bailey
      
      Biaggi
      
      Breslin
      
      Brisport
      
      Brooks
      
      Brouk
      
      Cleare
      
      Comrie
      
      Cooney
      
      Felder
      
      Gaughran
      
      Gianaris
      
      Gounardes
      
      Harckham
      
      Hinchey
      
      Hoylman-Sigal
      
      Jackson
      
      Kaminsky
      
      Kaplan
      
      Kavanagh
      
      Kennedy
      
      Krueger
      
      Liu
      
      Mannion
      
      May
      
      Mayer
      
      Myrie
      
      Parker
      
      Persaud
      
      Ramos
      
      Reichlin-Melnick
      
      Ritchie
      
      Rivera
      
      Ryan
      
      Salazar
      
      Sanders Jr.
      
      Savino
      
      Sepúlveda
      
      Serrano
      
      Skoufis
      
      Stavisky
      
      Stewart-Cousins
      
      Thomas
      
      nay (19)
      
      Akshar
      
      Borrello
      
      Boyle
      
      Gallivan
      
      Griffo
      
      Helming
      
      Jordan
      
      Lanza
      
      Martucci
      
      Mattera
      
      O'Mara
      
      Oberacker
      
      Ortt
      
      Palumbo
      
      Rath III
      
      Serino
      
      Stec
      
      Tedisco
      
      Weik
  Jan 12, 2022 - Consumer Protection Committee Vote
  S5924A
  
  5
  
  Aye
  
  2
  
  Nay
  
  0
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Consumer Protection Committee Vote: Jan 12, 2022
      
      aye (5)
      
      Gounardes
      
      Kavanagh
      
      Myrie
      
      Reichlin-Melnick
      
      Thomas
      
      nay (2)
      
      Mattera
      
      Tedisco

Bill Amendments

Original

C (Active)

co-Sponsors

2021-S5924 - Details

Law Section:: General Business Law
Laws Affected:: Amd §§601 & 602, Gen Bus L; amd §2, add Art 13-C §640, Ed L
Versions Introduced in 2021-2022 Legislative Session:: S5924

2021-S5924 - Summary

Prohibits certain practices regarding collection and enforcement of student debt.

2021-S5924 - Sponsor Memo

                                
 
BILL NUMBER: S5924

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law, in relation to prohibiting
certain practices in the collection of education debt; and to amend the
education law, in relation to student debts and extending college access
challenge grant funds to ready adults returning to school to complete a
degree

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure students have access to transcript data necessary to complete
their degree and obtain employment, where such data is currently with-
held due to outstanding debts owed to a postsecondary institution.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the General Business Law to make transcript withhold-
ing a prohibited debt collection practice.

Section two amends the General Business Law to define the practice with-
holding a student's transcript to solicit payments on a debt as a decep-
tive business practice.

Section three provides definitions.

Section four amends the Education Law to:  òDefine the conditions under
which transcript withholding is prohibited, including when needed for
job applications, when transferring schools, when applying for financial
aid to complete a degree, and when enlisting in the military or national
guard.  òProvide for colleges to charge a nominal fee to issue a tran-
script.  òEstablish due process and penalties to be administered by the
New York Department of Education and/or Attorney General for failure to
abide by this law.  òEnsure that the state does not bear the full cost
of compliance by establishing remedies for students harmed by the with-
holding of a transcript.

Section five establishes the Ready Adult Grant Program to use funds from
the College Access Challenge Grant to cover the full amount of tuition
for any adult New York resident who has completed at least seventy-five
percent of a degree or certificate program, but has failed to complete,
up to the cost needed to complete an undergraduate degree or certif-
ication program.

Section six sets an effective date of 30 days after the bill becomes
law.

 
JUSTIFICATION:

Thousands of New York residents owe 'institutional debts'-debts owed by
the student directly to a college or university, often for small
balances tied to unpaid tuition, library fines, or even parking tickets.
Today, postsecondary institutions across New York, including for-profit
colleges, coding bootcamps, vocational schools, as well as public and
private nonprofit universities, are currently withholding students'
official transcripts because of outstanding institutional debts. As a
result, students are prevented from re-enrolling in school to finish
their degrees or qualify for careers in the fields for which they
trained-simply because these students cannot provide official records of
their education.  According to preliminary research, within the SUNY
system alone, there are 40,000 open institutional debt accounts. Other
research on for-profit schools and private colleges in the state indi-
cate that tens of thousands additional New Yorkers are also currently
being denied access to their official transcripts. Transcript withhold-
ing forces students into an unaffordable Catch-22: without their tran-
script, they cannot get a better job. And without a better job, they
cannot pay off their debt to release their transcript.  For decades,
this practice has stymied the futures of New York residents. Each with-
held transcript represents a student who was denied the opportunity to
pursue a chosen career path, denied access to social and economic mobil-
ity through higher education, and ultimately denied access to the Ameri-
can Dream.

As this state begins down the long road of helping its citizens recover
from the economic fallout of the pandemic, it has the opportunity to
change this dynamic. In fact, with this legislation, New York can
improve the future economic prospects of its citizens.  Importantly,
this legislation does not prevent schools from collecting on past due
debts. Instead it simply removes an ineffective and counterproductive
barrier to students' ability to successfully repay that debt. Addi-
tionally, this legislation encourages students to complete their degrees
by targeting College Access Challenge Grant funds to cover the remaining
costs of tuition. Collectively, these measures will ensure all residents
of New York have the right to a full and complete higher education.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S5924 - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5924
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2021
                                ___________
 
 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  prohibiting
   certain  practices  in  the collection of education debt; and to amend
   the education law, in relation to student debts and extending  college
   access  challenge  grant  funds to ready adults returning to school to
   complete a degree
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Section  601  of the general business law is amended by
 adding a new subdivision 12 to read as follows:
   12. NOTWITHSTANDING SECTION THREE HUNDRED FIFTY-FIVE OF THE  EDUCATION
 LAW  OR 8 NYCRR PART 302, WITHHOLD A STUDENT'S TRANSCRIPT FOR FAILURE TO
 PAY PAST OR PRESENTLY DUE TUITION, CONDITION THE PROVISION  OF  A  TRAN-
 SCRIPT ON THE PAYMENT OF A DEBT, OTHER THAN A FEE CHARGED TO PROVIDE THE
 TRANSCRIPT,  OR  OTHERWISE  USE  TRANSCRIPT  ISSUANCE AS A TOOL FOR DEBT
 COLLECTION.
   § 2. Section 602 of the general business law is amended  by  adding  a
 new subdivision 4 to read as follows:
   4. ANY VIOLATION OF THIS ARTICLE IS ALSO A DECEPTIVE ACT AND PRACTICES
 UNDER SECTION THREE HUNDRED FORTY-NINE OF THIS CHAPTER.
   §  3. Section 2 of the education law is amended by adding a new subdi-
 vision 25 to read as follows:
   25. DEBT. THE TERM "DEBT" MEANS ANY MONEY, OBLIGATION, CLAIM, OR  SUM,
 DUE  OR  OWING,  OR ALLEGED TO BE DUE OR OWING, FROM A STUDENT, BUT DOES
 NOT INCLUDE THE FEE, IF ANY, CHARGED TO  ALL  STUDENTS  FOR  THE  ACTUAL
 COSTS OF PROVIDING THE TRANSCRIPTS.
   § 4. The education law is amended by adding a new article 13-c to read
 as follows:
 
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES

 SECTION 640. STUDENT DEBT; PROHIBITED PRACTICES.

 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08218-02-1

 S. 5924                             2
 
   §  640.  STUDENT  DEBT;  PROHIBITED  PRACTICES. 1. NOTWITHSTANDING ANY
 PROVISIONS  OF  LAW,  NO  INSTITUTION  OF  HIGHER  EDUCATION,  INCLUDING
 COLLEGES,  UNIVERSITIES, AND ORGANIZATIONS OFFERING CAREER EDUCATION, AS
 DEFINED IN SECTION 2 OF THIS CHAPTER SHALL:
   (A)  WITHHOLD  A STUDENT'S TRANSCRIPT FOR FAILURE TO PAY PAST OR PRES-
 ENTLY DUE TUITION;
   (B) CONDITION THE PROVISION OF A TRANSCRIPT ON THE PAYMENT OF A  DEBT,
 OTHER THAN A FEE CHARGED TO PROVIDE THE TRANSCRIPT;
   (C)  CHARGE  A  HIGHER FEE FOR OBTAINING A TRANSCRIPT, OR PROVIDE LESS
 FAVORABLE TREATMENT OF A TRANSCRIPT REQUEST BECAUSE  A  STUDENT  OWES  A
 DEBT; OR
   (D) USE TRANSCRIPT ISSUANCE AS A TOOL FOR DEBT COLLECTION.
   2. INSTITUTIONS OF HIGHER EDUCATION, INCLUDING COLLEGES, UNIVERSITIES,
 AND ORGANIZATIONS OFFERING CAREER EDUCATION MAY NOT WITHHOLD A STUDENT'S
 OFFICIAL  TRANSCRIPT,  REGARDLESS  OF  DEBT,  EXCEPT  THE FEE CHARGED TO
 PROVIDE AN OFFICIAL TRANSCRIPT, IF THE OFFICIAL TRANSCRIPT IS  REQUESTED
 BY A STUDENT OR ENTITY FOR ANY OF THE FOLLOWING PURPOSES:
   (A) JOB APPLICATION;
   (B) TRANSFERRING TO ANOTHER INSTITUTION;
   (C) APPLYING FOR FINANCIAL AID;
   (D) PURSUIT OF OPPORTUNITIES IN THE MILITARY OR NATIONAL GUARD; OR
   (E) PURSUIT OF OTHER POST-SECONDARY OPPORTUNITIES.
   3.  IN  ADDITION  TO  SUCH PENALTIES AS MAY OTHERWISE BE APPLICABLE BY
 LAW, THE COMMISSIONER OR THE SUPERINTENDENT OF FINANCIAL  SERVICES  MAY,
 AFTER  NOTICE  AND HEARING, ENJOIN SUCH TRANSCRIPT WITHHOLDING PRACTICES
 AND REQUIRE ANY COLLEGE FOUND TO BE VIOLATING  THE  PROVISIONS  OF  THIS
 ARTICLE  OR THE RULES OR REGULATIONS PROMULGATED HEREUNDER TO PAY TO THE
 PEOPLE OF THIS STATE A  PENALTY    OF  FIVE  HUNDRED  DOLLARS  FOR  EACH
 VIOLATION.
   4. IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE DEPARTMENT OR THE
 SUPERINTENDENT  OF  FINANCIAL  SERVICES  PURSUANT  TO  THIS SECTION, ANY
 PERSON WHO HAS BEEN INJURED BY REASON OF ANY VIOLATION OF  THIS  SECTION
 MAY  BRING  AN  ACTION  IN THEIR OWN NAME TO ENJOIN SUCH UNLAWFUL ACT OR
 PRACTICE. THE COURT MAY, IN ITS DISCRETION, AWARD REASONABLE  ATTORNEY'S
 FEES TO THE PREVAILING PLAINTIFF.
   5.  NOTHING  IN  THIS  ARTICLE SHALL LIMIT ANY STATUTORY OR COMMON LAW
 RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE
 RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF LAW.
   § 5. The education law is amended by adding a  new  section  669-i  to
 read as follows:
   §  669-I.  READY  ADULT  GRANT  PROGRAM.  1.  FOR THE PURPOSES OF THIS
 SECTION, "ELIGIBLE READY ADULT APPLICANT" MEANS A PERSON WHO WAS  PREVI-
 OUSLY  ENROLLED AT A STATE-OPERATED INSTITUTION OR COMMUNITY COLLEGE AND
 WHO HAS COMPLETED AT LEAST SEVENTY-FIVE PERCENT OF A DEGREE  OR  CERTIF-
 ICATE PROGRAM.
   2.  WITHIN AMOUNTS RECEIVED BY THE STATE FROM THE COLLEGE ACCESS CHAL-
 LENGE GRANT, THE CORPORATION SHALL GRANT AWARDS TO ELIGIBLE READY  ADULT
 APPLICANTS  EQUAL TO UP TO ONE HUNDRED PERCENT OF THE TUITION CHARGED TO
 STATE RESIDENT STUDENTS ATTENDING AN UNDERGRADUATE PROGRAM FULL-TIME  AT
 THE  STATE  UNIVERSITY  OF  NEW  YORK  OR A COMMUNITY COLLEGE, OR ACTUAL
 TUITION CHARGED, WHICHEVER IS LESS, FOR CREDITS NEEDED  TO  COMPLETE  AN
 UNDERGRADUATE DEGREE OR CERTIFICATE PROGRAM.
   §  6.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

co-Sponsors

View additional co-sponsors

2021-S5924A - Details

Law Section:: General Business Law
Laws Affected:: Amd §§601 & 602, Gen Bus L; amd §2, add Art 13-C §640, Ed L
Versions Introduced in 2021-2022 Legislative Session:: S5924

2021-S5924A - Summary

Prohibits certain practices regarding collection and enforcement of student debt.

2021-S5924A - Sponsor Memo

                                 
BILL NUMBER: S5924A

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the general business law and the education law, in
relation to prohibiting certain practices in the collection of education
debt

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure students have access to transcript data necessary to complete
their degree and obtain employment, where such data is currently with-
held due to outstanding debts owed to a postsecondary institution.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the General Business Law to make transcript withhold-
ing a prohibited debt collection practice.

Section two amends the General Business Law to define the practice with-
holding a student's transcript to solicit payments on a debt as a decep-

tive business practice.

Section three provides definitions.

Section four amends the Education Law to:
  *Prohibit higher education institutions from refusing to provide a
transcript for a current or former student on the grounds that the
student owes a debt; conditioning the provision of a transcript on the
payment of a debt, other than a fee charged to provide the transcript;
charging a higher fee for obtaining a transcript, or providing less
favorable treatment of a transcript request because a student owes a
debt; and using transcript issuance as a tool for debt collection.
  *Establish due process and penalties to be administered by the New
York Department of Education and/or Attorney General for failure to
abide by this law.
  *Ensure that the state does not bear the full cost of compliance by
establishing remedies for students harmed by the withholding of a tran-
script.

Section five sets an effective date of 30 days after the bill becomes
law.   
JUSTIFICATION:

Thousands of New York residents owe 'institutional debts'-debts owed by
the student directly to a college or university, often for small
balances tied to unpaid tuition, library fines, or even parking tickets.
Today, postsecondary institutions across New York, including for-profit
colleges, coding bootcamps, vocational schools, as well as public and
private nonprofit universities, are currently withholding students'
official transcripts because of outstanding institutional debts. As a
result, students are prevented from re-enrolling in school to finish
their degrees or qualify for careers in the fields for which they
trained-simply because these students cannot provide official records of
their education.

According to preliminary research, within the SUNY system alone, there
are 40,000 open institutional debt accounts. Other research on for-pro-
fit schools and private colleges in the state indicate that tens of
thousands additional New Yorkers are also currently being denied access
to their official transcripts. Transcript withholding forces students
into an unaffordable Catch-22: without their transcript, they cannot get
a better job. And without a better job, they cannot pay off their debt
to release their transcript.

For decades, this practice has stymied the futures of New York resi-
dents. Each withheld transcript represents a student who was denied the
opportunity to pursue a chosen career path, denied access to social and
economic mobility through higher education, and ultimately denied access
to the American Dream.

As this state begins down the long road of helping its citizens recover
from the economic fallout of the pandemic, it has the opportunity to
change this dynamic. In fact, with this legislation, New York can
improve the future economic prospects of its citizens.

Importantly, this legislation does not prevent schools from collecting
on past due debts. Instead it simply removes an ineffective and counter-
productive barrier to students' ability to successfully repay that debt.
Additionally, this legislation encourages students to complete their
degrees by targeting College Access Challenge Grant funds to cover the
remaining costs of tuition. Collectively, these measures will ensure all
residents of New York have the right to a full and complete higher
education.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S5924A - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5924--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2021
                                ___________
 
 Introduced by Sens. THOMAS, GOUNARDES -- read twice and ordered printed,
   and  when  printed  to  be  committed  to  the  Committee  on Consumer
   Protection -- committee discharged, bill amended, ordered reprinted as
   amended and recommitted to said committee
 
 AN ACT to amend the general business  law  and  the  education  law,  in
   relation  to prohibiting certain practices in the collection of educa-
   tion debt
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Section  601  of the general business law is amended by
 adding a new subdivision 12 to read as follows:
   12. NOTWITHSTANDING SECTION THREE HUNDRED FIFTY-FIVE OF THE  EDUCATION
 LAW  OR 8 NYCRR PART 302, WITHHOLD A STUDENT'S TRANSCRIPT FOR FAILURE TO
 PAY PAST OR PRESENTLY DUE TUITION, CONDITION THE PROVISION  OF  A  TRAN-
 SCRIPT ON THE PAYMENT OF A DEBT, OTHER THAN A FEE CHARGED TO PROVIDE THE
 TRANSCRIPT,  OR  OTHERWISE  USE  TRANSCRIPT  ISSUANCE AS A TOOL FOR DEBT
 COLLECTION.
   § 2. Section 602 of the general business law is amended  by  adding  a
 new subdivision 4 to read as follows:
   4. ANY VIOLATION OF THIS ARTICLE IS ALSO A DECEPTIVE ACT AND PRACTICES
 UNDER SECTION THREE HUNDRED FORTY-NINE OF THIS CHAPTER.
   §  3. Section 2 of the education law is amended by adding a new subdi-
 vision 25 to read as follows:
   25. DEBT. THE TERM "DEBT" MEANS ANY MONEY, OBLIGATION, CLAIM, OR  SUM,
 DUE  OR  OWING,  OR ALLEGED TO BE DUE OR OWING, FROM A STUDENT, BUT DOES
 NOT INCLUDE THE FEE, IF ANY, CHARGED TO  ALL  STUDENTS  FOR  THE  ACTUAL
 COSTS OF PROVIDING THE TRANSCRIPTS.
   § 4. The education law is amended by adding a new article 13-C to read
 as follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08218-03-1

 S. 5924--A                          2
 
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES
 
 SECTION 640. STUDENT DEBT; PROHIBITED PRACTICES.
   §  640.  STUDENT  DEBT;  PROHIBITED  PRACTICES. 1. NOTWITHSTANDING ANY
 PROVISIONS  OF  LAW,  NO  INSTITUTION  OF  HIGHER  EDUCATION,  INCLUDING
 COLLEGES,  UNIVERSITIES, AND ORGANIZATIONS OFFERING CAREER EDUCATION, AS
 DEFINED IN SECTION TWO OF THIS CHAPTER SHALL:
   (A) WITHHOLD A STUDENT'S TRANSCRIPT FOR FAILURE TO PAY PAST  OR  PRES-
 ENTLY DUE TUITION;
   (B)  CONDITION THE PROVISION OF A TRANSCRIPT ON THE PAYMENT OF A DEBT,
 OTHER THAN A FEE CHARGED TO PROVIDE THE TRANSCRIPT;
   (C) CHARGE A HIGHER FEE FOR OBTAINING A TRANSCRIPT,  OR  PROVIDE  LESS
 FAVORABLE  TREATMENT  OF  A  TRANSCRIPT REQUEST BECAUSE A STUDENT OWES A
 DEBT; OR
   (D) USE TRANSCRIPT ISSUANCE AS A TOOL FOR DEBT COLLECTION.
   2. IN ADDITION TO SUCH PENALTIES AS MAY  OTHERWISE  BE  APPLICABLE  BY
 LAW,  THE  COMMISSIONER OR THE SUPERINTENDENT OF FINANCIAL SERVICES MAY,
 AFTER NOTICE AND HEARING, ENJOIN SUCH TRANSCRIPT  WITHHOLDING  PRACTICES
 AND  REQUIRE  ANY  COLLEGE  FOUND TO BE VIOLATING THE PROVISIONS OF THIS
 ARTICLE OR THE RULES OR REGULATIONS PROMULGATED HEREUNDER TO PAY TO  THE
 PEOPLE  OF  THIS  STATE  A  PENALTY    OF  FIVE HUNDRED DOLLARS FOR EACH
 VIOLATION.
   3. IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE DEPARTMENT OR THE
 SUPERINTENDENT OF FINANCIAL  SERVICES  PURSUANT  TO  THIS  SECTION,  ANY
 PERSON  WHO  HAS BEEN INJURED BY REASON OF ANY VIOLATION OF THIS SECTION
 MAY BRING AN ACTION IN THEIR OWN NAME TO ENJOIN  SUCH  UNLAWFUL  ACT  OR
 PRACTICE.  THE COURT MAY, IN ITS DISCRETION, AWARD REASONABLE ATTORNEY'S
 FEES TO THE PREVAILING PLAINTIFF.
   4. NOTHING IN THIS ARTICLE SHALL LIMIT ANY  STATUTORY  OR  COMMON  LAW
 RIGHT OF ANY PERSON TO BRING ANY ACTION IN ANY COURT FOR ANY ACT, OR THE
 RIGHT OF THE STATE TO PUNISH ANY PERSON FOR ANY VIOLATION OF LAW.
   §  5.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

co-Sponsors

View additional co-sponsors

2021-S5924B - Details

Law Section:: General Business Law
Laws Affected:: Amd §§601 & 602, Gen Bus L; amd §2, add Art 13-C §640, Ed L
Versions Introduced in 2021-2022 Legislative Session:: S5924

2021-S5924B - Summary

Prohibits certain practices regarding collection and enforcement of student debt.

2021-S5924B - Sponsor Memo

                                 
BILL NUMBER: S5924B

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the education law, in relation to prohibiting certain
practices in the collection of education debt

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure students have access to transcript data necessary to complete
their degree and obtain employment, where such data is currently with-
held due to outstanding debts owed to a postsecondary institution.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the Education Law to:

*Prohibit degree granting institutions and licensed private career
schools from 1) withholding a student's transcript because of a debt to
the school or institution; 2) conditioning the provision of a student's
transcript on the payment of a debt to the institution or school; or 3)

charging a higher fee or providing less favorable treatment of a tran-
script request because a student owes a debt to the institution or
school.

*Ensure that the state does not bear the full cost of compliance by
establishing remedies for students harmed by the withholding of a tran-
script.

Section two sets an effective date of 30 days after the bill becomes
law.

 
JUSTIFICATION:

Thousands of New York residents owe 'institutional debts'-debts owed by
the student directly to a college or university, often for small
balances tied to unpaid tuition, library fines, or even parking tickets.
Today, postsecondary institutions across New York, including for-profit
colleges, coding bootcamps, vocational schools, as well as public and
private nonprofit universities, are currently withholding students'
official transcripts because of outstanding institutional debts. As a
result, students are prevented from re-enrolling in school to finish
their degrees or qualify for careers in the fields for which they
trained-simply because these students cannot provide official records of
their education.

According to preliminary research, within the SONY system alone, there
are 40,000 open institutional debt accounts. Other research on for-pro-
fit schools and private colleges in the state indicate that tens of
thousands additional New Yorkers are also currently being denied access
to their official transcripts. Transcript withholding forces students
into an unaffordable Catch-22: without their transcript, they cannot get
a better job. And without a better job, they cannot pay off their debt
to release their transcript.

For decades, this practice has stymied the futures of New York resi-
dents. Each withheld transcript represents a student who was denied the
opportunity to pursue a chosen career path, denied access to social and
economic mobility through higher education, and ultimately denied access
to the American Dream.

As this state begins down the long road of helping its citizens recover
from the economic fallout of the pandemic, it has the opportunity to
change this dynamic. In fact, with this legislation, New York can
improve the future economic prospects of its citizens.

Importantly, this legislation does not prevent schools from collecting
on past due debts. Instead it simply removes an ineffective and counter-
productive barrier to students' ability to successfully repay that debt.
Additionally, this legislation encourages students to complete their
degrees by targeting College Access Challenge Grant funds to cover the
remaining costs of tuition. Collectively, these measures will ensure all
residents of New York have the right to a full and complete higher
education.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S5924B - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5924--B
     Cal. No. 132
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2021
                                ___________
 
 Introduced  by  Sens. THOMAS, ADDABBO, BIAGGI, GOUNARDES, HINCHEY, JACK-
   SON, MANNION, MAY, RAMOS -- read twice and ordered printed,  and  when
   printed  to  be  committed  to the Committee on Consumer Protection --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said  committee  --  recommitted  to the Committee on
   Consumer Protection in accordance  with  Senate  Rule  6,  sec.  8  --
   reported  favorably  from  said committee, ordered to first and second
   report, ordered to a third reading,  amended  and  ordered  reprinted,
   retaining its place in the order of third reading
 
 AN  ACT  to  amend the education law, in relation to prohibiting certain
   practices in the collection of education debt
 
   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 article 13-C
 to read as follows:
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES
 SECTION 640. STUDENT DEBT; PROHIBITED PRACTICES.
   § 640. STUDENT DEBT; PROHIBITED PRACTICES. 1.  NO INSTITUTION OF HIGH-
 ER EDUCATION SHALL:
   (A) WITHHOLD OR CONDITION THE PROVISION OF A STUDENT'S  TRANSCRIPT  ON
 THE PAYMENT OF A DEBT TO THE INSTITUTION; OR
   (B) CHARGE A HIGHER FEE OR PROVIDE LESS FAVORABLE TREATMENT OF A TRAN-
 SCRIPT  REQUEST  BECAUSE  A  STUDENT  OWES  A  DEBT  TO THE INSTITUTION,
 PROVIDED HOWEVER, THAT AN INSTITUTION MAY CHARGE A FEE FOR THE  ISSUANCE
 OF A TRANSCRIPT.
   2.  IN  ADDITION  TO  SUCH PENALTIES AS MAY OTHERWISE BE APPLICABLE BY
 LAW, THE SUPERINTENDENT OF FINANCIAL  SERVICES  MAY,  AFTER  NOTICE  AND
 HEARING,  ENJOIN  SUCH  TRANSCRIPT WITHHOLDING PRACTICES AND REQUIRE ANY
 INSTITUTION FOUND TO BE IN VIOLATION OF THE PROVISIONS OF  THIS  ARTICLE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08218-08-2

 S. 5924--B                          2
 
 TO  PAY  TO  THE PEOPLE OF THIS STATE A PENALTY  OF FIVE HUNDRED DOLLARS
 FOR EACH VIOLATION.
   3. IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE SUPERINTENDENT OF
 FINANCIAL  SERVICES  PURSUANT  TO  THIS SECTION, ANY PERSON WHO HAS BEEN
 INJURED BY REASON OF ANY VIOLATION OF THIS SECTION MAY BRING  AN  ACTION
 IN  THEIR  OWN  NAME TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE.  THE COURT
 MAY, IN ITS DISCRETION, AWARD REASONABLE ATTORNEYS' FEES TO THE PREVAIL-
 ING PLAINTIFF.
   § 2. This act shall take effect on the thirtieth day  after  it  shall
 have become a law.

co-Sponsors

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2021-S5924C (ACTIVE) - Details

Law Section:: General Business Law
Laws Affected:: Amd §§601 & 602, Gen Bus L; amd §2, add Art 13-C §640, Ed L
Versions Introduced in 2021-2022 Legislative Session:: S5924

2021-S5924C (ACTIVE) - Summary

Prohibits certain practices regarding collection and enforcement of student debt.

2021-S5924C (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S5924C

SPONSOR: THOMAS
 
TITLE OF BILL:

An act to amend the education law, in relation to prohibiting certain
practices in the collection of student debt

 
PURPOSE OR GENERAL IDEA OF BILL:

To ensure students have access to transcript data necessary to complete
their degree and obtain employment, where such data is currently with-
held due to outstanding debts owed to a postsecondary institution.

 
SUMMARY OF SPECIFIC PROVISIONS:

Section one amends the Education Law to:

* Prohibit degree granting institutions and licensed private career
schools from 1) withholding a student's transcript because of a debt to
the school or institution; 2) conditioning the provision of a student's
transcript on the payment of a debt to the institution or school; or 3)

charging a higher fee or providing less favorable treatment of a tran-
script request because a student owes a debt to the institution or
school.

* Ensure that the state does not bear the full cost of compliance by
establishing remedies for students harmed by the withholding of a tran-
script.

Section two sets an effective date of 30 days after the bill becomes
law.

 
JUSTIFICATION:

Thousands of New York residents owe 'institutional debts'-debts owed by
the student directly to a college or university, often for small
balances tied to unpaid tuition, library fines, or even parking tickets.
Today, postsecondary institutions across New York, including for-profit
colleges, coding bootcamps, vocational schools, as well as public and
private nonprofit universities, are currently withholding students'
official transcripts because of outstanding institutional debts. As a
result, students are prevented from re-enrolling in school to finish
their degrees or qualify for careers in the fields for which they
trained-simply because these students cannot provide official records of
their education.

According to preliminary research, within the SUNY system alone, there
are 40,000 open institutional debt accounts. Other research on for-pro-
fit schools and private colleges in the state indicate that tens of
thousands additional New Yorkers are also currently being denied access
to their official transcripts. Transcript withholding forces students
into an unaffordable Catch-22: without their transcript, they cannot get
a better job. And without a better job, they cannot pay off their debt
to release their transcript.

For decades, this practice has stymied the futures of New York resi-
dents. Each withheld transcript represents a student who was denied the
opportunity to pursue a chosen career path, denied access to social and
economic mobility through higher education, and ultimately denied access
to the American Dream.

As this state begins down the long road of helping its citizens recover
from the economic fallout of the pandemic, it has the opportunity to
change this dynamic. In fact, with this legislation, New York can
improve the future economic prospects of its citizens.

Importantly, this legislation does not prevent schools from collecting
on past due debts. Instead it simply removes an ineffective and counter-
productive barrier to students' ability to successfully repay that debt.
Additionally, this legislation encourages students to complete their
degrees by targeting College Access Challenge Grant funds to cover the
remaining costs of tuition. Collectively, these measures will ensure all
residents of New York have the right to a full and complete higher
education.

 
PRIOR LEGISLATIVE HISTORY:

New legislation.

 
FISCAL IMPLICATIONS:

None.

 
EFFECTIVE DATE:
This act shall take effect immediately.

2021-S5924C (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5924--C
     Cal. No. 132
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                              March 23, 2021
                                ___________
 
 Introduced  by  Sens. THOMAS, ADDABBO, BIAGGI, GOUNARDES, HINCHEY, JACK-
   SON, MANNION, MAY, RAMOS -- read twice and ordered printed,  and  when
   printed  to  be  committed  to the Committee on Consumer Protection --
   committee discharged, bill amended, ordered reprinted as  amended  and
   recommitted  to  said  committee  --  recommitted  to the Committee on
   Consumer Protection in accordance  with  Senate  Rule  6,  sec.  8  --
   reported  favorably  from  said committee, ordered to first and second
   report, ordered to a third reading,  amended  and  ordered  reprinted,
   retaining its place in the order of third reading -- again amended and
   ordered reprinted, retaining its place in the order of third reading
 
 AN  ACT  to  amend the education law, in relation to prohibiting certain
   practices in the collection of student debt
 
   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 article 13-C
 to read as follows:
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES
 SECTION 640. STUDENT DEBT; PROHIBITED PRACTICES.
   § 640. STUDENT DEBT; PROHIBITED  PRACTICES.  1.    NO  DEGREE-GRANTING
 INSTITUTION  OR  LICENSED  PRIVATE  CAREER SCHOOL, AS DEFINED BY SECTION
 FIVE THOUSAND ONE OF THIS CHAPTER, SHALL:
   (A) WITHHOLD A TRANSCRIPT BECAUSE A STUDENT OWES A DEBT TO SUCH INSTI-
 TUTION OR SCHOOL;
   (B) CONDITION THE PROVISION OF A TRANSCRIPT ON A STUDENT'S PAYMENT  OF
 A DEBT TO SUCH INSTITUTION OR SCHOOL; OR
   (C) CHARGE A HIGHER FEE OR PROVIDE LESS FAVORABLE TREATMENT OF A TRAN-
 SCRIPT  REQUEST  BECAUSE  A  STUDENT  OWES A DEBT TO SUCH INSTITUTION OR
 SCHOOL, PROVIDED HOWEVER, THAT AN INSTITUTION OR SCHOOL MAY CHARGE A FEE
 FOR THE ISSUANCE OF A TRANSCRIPT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08218-12-2

 S. 5924--C                          2
 
   2. IN ADDITION TO SUCH PENALTIES AS MAY  OTHERWISE  BE  APPLICABLE  BY
 LAW,  THE  SUPERINTENDENT  OF  FINANCIAL  SERVICES MAY, AFTER NOTICE AND
 HEARING, ENJOIN SUCH TRANSCRIPT WITHHOLDING PRACTICES  AND  REQUIRE  ANY
 INSTITUTION OR SCHOOL FOUND TO BE IN VIOLATION OF THE PROVISIONS OF THIS
 ARTICLE  TO  PAY  TO THE PEOPLE OF THIS STATE A PENALTY  OF FIVE HUNDRED
 DOLLARS FOR EACH VIOLATION.
   3. IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE SUPERINTENDENT OF
 FINANCIAL SERVICES PURSUANT TO THIS SECTION, ANY  PERSON  WHO  HAS  BEEN
 INJURED  BY  REASON OF ANY VIOLATION OF THIS SECTION MAY BRING AN ACTION
 IN THEIR OWN NAME TO ENJOIN SUCH UNLAWFUL ACT  OR  PRACTICE.  THE  COURT
 MAY, IN ITS DISCRETION, AWARD REASONABLE ATTORNEYS' FEES TO THE PREVAIL-
 ING PLAINTIFF.
   §  2.  This  act shall take effect on the thirtieth day after it shall
 have become a law.

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Senate Bill S5924A

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Sponsored By

Archive: Last Bill Status Via A6938 - Signed by Governor

Bill Amendments

co-Sponsors

2021-S5924 - Details

2021-S5924 - Summary

2021-S5924 - Sponsor Memo

2021-S5924 - Bill Text download pdf

co-Sponsors

2021-S5924A - Details

2021-S5924A - Summary

2021-S5924A - Sponsor Memo

2021-S5924A - Bill Text download pdf

co-Sponsors

2021-S5924B - Details

2021-S5924B - Summary

2021-S5924B - Sponsor Memo

2021-S5924B - Bill Text download pdf

co-Sponsors

2021-S5924C (ACTIVE) - Details

2021-S5924C (ACTIVE) - Summary

2021-S5924C (ACTIVE) - Sponsor Memo

2021-S5924C (ACTIVE) - Bill Text download pdf

Comments