The New York State Senate

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6938
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 14, 2021
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Higher Education
 
 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

 A. 6938                             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.

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6938--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 14, 2021
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Higher Education -- 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:
 
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD08218-04-1

 A. 6938--A                          2
 
 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.