NY State Senate Bill S4237A

Archive: Last Bill Status - Signed by Governor

Introduced
In Committee
On Floor Calendar
- Passed Senate
- Passed Assembly
Delivered to Governor
Signed by Governor

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Actions

view actions (16)

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Nov 03, 2021	approval memo.33 signed chap.573
Oct 22, 2021	delivered to governor
Jun 09, 2021	returned to senate passed assembly ordered to third reading rules cal.301 substituted for a3136a
Jun 07, 2021	referred to ways and means delivered to assembly passed senate
May 24, 2021	advanced to third reading
May 20, 2021	2nd report cal.
May 18, 2021	1st report cal.1133
May 12, 2021	print number 4237a
May 12, 2021	amend and recommit to higher education
Feb 03, 2021	referred to higher education

Votes

Bill Amendments

Original

A (Active)

Original

A (Active)

S4237 - Details

See Assembly Version of this Bill:: A3136
Law Section:: Education Law
Laws Affected:: Amd §665-a, Ed L
Versions Introduced in 2019-2020 Legislative Session:: S7148, A8838

S4237 - 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.

S4237 - Sponsor Memo

 
BILL NUMBER: S4237

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 must 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:

Introduced in a previous session.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
180 days after becoming law.

S4237 - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   4237
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD02144-01-1

 S. 4237                             2
 
 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
 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.

S4237A (ACTIVE) - Details

See Assembly Version of this Bill:: A3136
Law Section:: Education Law
Laws Affected:: Amd §665-a, Ed L
Versions Introduced in 2019-2020 Legislative Session:: S7148, A8838

S4237A (ACTIVE) - Summary

S4237A (ACTIVE) - Sponsor Memo

 
BILL NUMBER: S4237A        REVISED 05/14/2021

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 must 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:

Introduced in a previous session.

 
FISCAL IMPLICATIONS FOR STATE AND LOCAL GOVERNMENTS:

To be determined.

 
EFFECTIVE DATE:
180 days after becoming law.

S4237A (ACTIVE) - Bill Text download pdf

 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  4237--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                             February 3, 2021
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Higher  Education  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 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 RELATING TO  ANY  AWARD  OR  LOAN  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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02144-03-1

 S. 4237--A                          2
 
   (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
 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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The New York State Senate

senate Bill S4237A

Sponsored By

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Jun 7, 2021 - floor Vote

Floor Vote: Jun 7, 2021

May 18, 2021 - Higher Education committee Vote

Higher Education Committee Vote: May 18, 2021

Bill Amendments

S4237 - Details

S4237 - Summary

S4237 - Sponsor Memo

S4237 - Bill Text download pdf

S4237A (ACTIVE) - Details

S4237A (ACTIVE) - Summary

S4237A (ACTIVE) - Sponsor Memo

S4237A (ACTIVE) - Bill Text download pdf

Comments

senate Bill S4237A

Share this bill

Sponsored By

Toby Ann Stavisky

Archive: Last Bill Status - Signed by Governor

Your Voice

Actions

Votes

Jun 7, 2021 - floor Vote

Floor Vote: Jun 7, 2021

May 18, 2021 - Higher Education committee Vote

Higher Education Committee Vote: May 18, 2021

Bill Amendments

S4237 - Details

S4237 - Summary

S4237 - Sponsor Memo

S4237 - Bill Text download pdf

S4237A (ACTIVE) - Details

S4237A (ACTIVE) - Summary

S4237A (ACTIVE) - Sponsor Memo

S4237A (ACTIVE) - Bill Text download pdf

Comments