S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   7699
 
                             I N  S E N A T E
 
                              January 7, 2022
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 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 a chapter of the laws of  2021  amending  the  education  law
 relating  to  preventing institutions from implementing contingencies on
 the receipt of state funding, as proposed in legislative  bills  numbers
 S.  4237-A and A. 3136-A, is amended and a new subdivision 3 is added 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
   (4)  be prohibited from disclosing, discussing, describing or comment-
 ing upon the terms of the agreement or any violation thereof.

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD02144-04-2
              

 S. 7699                             2

   (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.
   3.  CONTINGENCIES  ON THE RECEIPT OF STATE FUNDING. (A) AN INSTITUTION
 SHALL NOT, AS A CONDITION OF ANY AWARD OR LOAN PURSUANT TO THIS ARTICLE,
 REQUIRE ANY STUDENT TO:
   (I) SUBMIT TO MANDATORY ARBITRATION TO RESOLVE ANY MATTER RELATING  TO
 SUCH  AWARD  OR  LOAN  PRIOR  TO THE COMMENCEMENT OF ANY LEGAL ACTION TO
 ENFORCE AN ENTITLEMENT THERETO;
   (II) RESOLVE A COMPLAINT RELATING TO ANY  AWARD  OR  LOAN  THROUGH  AN
 INTERNAL DISPUTE PROCESS;
   (III)  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; OR
   (IV) BE PROHIBITED FROM DISCLOSING, DISCUSSING, DESCRIBING OR COMMENT-
 ING UPON THE TERMS OF THE AGREEMENT OR ANY VIOLATION THEREOF.
   (B) 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
 S. 7699                             3
 
 ALLEGED VIOLATION, OR NOT TO DISCLOSE, DISCUSS, DESCRIBE OR COMMENT UPON
 THE TERMS OF THE AGREEMENT OR ANY VIOLATION THEREOF.
   (C)  FOR  PURPOSES  OF  THIS SUBDIVISION, 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 THAT VIOLATES PARAGRAPH
 (A) OF THIS SUBDIVISION.
   (D) IN ADDITION TO INJUNCTIVE RELIEF AND ANY OTHER REMEDIES AVAILABLE,
 A COURT MAY AWARD A PREVAILING PLAINTIFF ENFORCING  THEIR  RIGHTS  UNDER
 THIS SUBDIVISION REASONABLE ATTORNEYS' FEES.
   (E)  NOTHING  IN  THIS SUBDIVISION IS INTENDED TO INVALIDATE A WRITTEN
 ARBITRATION AGREEMENT THAT IS OTHERWISE ENFORCEABLE  UNDER  THE  FEDERAL
 ARBITRATION ACT.
   §  2.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws  of  2021  amending  the  education  law
 relating  to  preventing institutions from implementing contingencies on
 the receipt of state funding, as proposed in legislative  bills  numbers
 S. 4237-A and A. 3136-A, takes effect.