S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    493
 
                        2023-2024 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              January 9, 2023
                                ___________
 
 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  unfair  prac-
   tices 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. Subdivisions (a) and (g) of  section  349  of  the  general
 business law, as added by chapter 43 of the laws of 1970, are amended to
 read as follows:
   (a)  Deceptive OR UNFAIR acts or practices in the conduct of any busi-
 ness, trade or commerce or in the furnishing  of  any  service  in  this
 state are hereby declared unlawful.
   (g)  This section shall apply to all deceptive OR UNFAIR acts or prac-
 tices declared to be unlawful, whether or not subject to any  other  law
 of this state, and shall not 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 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, INCLUDING ANY SUCH INSTITUTION WITH A  PHYSICAL  PRESENCE  IN
 THE  STATE  OR  ENROLLING  NEW YORK STATE STUDENTS IN AN ONLINE DISTANCE
 EDUCATION PROGRAM.
   2. IN ADDITION TO THE PROTECTIONS AFFORDED TO CONSUMERS IN THIS  ARTI-
 CLE  FOR  STUDENTS THAT ARE ATTENDING OR AT ONE TIME ATTENDED A PROPRIE-
 TARY INSTITUTION IN THIS STATE, THE ATTORNEY GENERAL WHENEVER HE OR  SHE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD00170-01-3
              

 A. 493                              2
 
 BELIEVES  FROM  EVIDENCE SATISFACTORY TO HIM OR HER THAT ANY PROPRIETARY
 INSTITUTION, AN AGENT OR EMPLOYEE THEREOF,  OR  A  PRIVATE  THIRD  PARTY
 OPERATING  IN CONCERT WITH OR AT THE DIRECTION OF THE PROPRIETARY INSTI-
 TUTION,  HAS ENGAGED IN ANY OF THE ACTS OR PRACTICES DEEMED TO BE 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
 UNFAIR  ACTS  OR PRACTICES, OBTAIN RESTITUTION OF ANY MONEYS OR PROPERTY
 OBTAINED DIRECTLY OR INDIRECTLY BY ANY SUCH 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.
   3. AN ACT OR PRACTICE SHALL BE DEEMED 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; OR
   (B) IT IS NOT OUTWEIGHED BY COUNTERVAILING BENEFITS TO  STUDENTS  THAT
 ARE  ATTENDING  OR AT ONE TIME ATTENDED A PROPRIETARY INSTITUTION, OR TO
 COMPETITION.
   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.
   5.  IN ADDITION TO THE RIGHT OF ACTION GRANTED TO THE ATTORNEY GENERAL
 PURSUANT TO THIS SECTION, ANY PERSON OR CLASS OR PERSONS WHO  HAVE  BEEN
 INJURED  BY  REASON OF ANY VIOLATION OF THIS SECTION MAY BRING AN ACTION
 TO ENJOIN SUCH UNLAWFUL ACT OR PRACTICE, AN  ACTION  TO  RECOVER  ACTUAL
 DAMAGES,  OR  BOTH  SUCH  ACTIONS.  THE  COURT  MAY,  IN ITS DISCRETION,
 INCREASE THE AWARD DAMAGES TO AN AMOUNT NOT TO EXCEED  THREE  TIMES  THE
 ACTUAL  DAMAGES.  THE  COURT  MAY  AWARD REASONABLE ATTORNEY'S FEES TO A
 PREVAILING PLAINTIFF.
   § 3. This act shall take effect immediately.