Bill Text: NY S05598 | 2019-2020 | General Assembly | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Authorizes the attorney general to bring an action to enjoin unfair practices of proprietary institutions of higher education; defines unlawful unfair acts or practices.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO CONSUMER PROTECTION [S05598 Detail]

Download: New_York-2019-S05598-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________
                                          5598
                               2019-2020 Regular Sessions
                    IN SENATE
                                       May 8, 2019
                                       ___________
        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 unlawful unfair
          practices of proprietary institutions of higher education
          The People of the State of New York, represented in Senate and  Assem-
        bly, do enact as follows:
     1    Section 1. The general business law is amended by adding a new section
     2  349-f to read as follows:
     3    § 349-f. Proprietary institutions of higher education; unlawful unfair
     4  practices.  1.  For  purposes of this section, "proprietary institution"
     5  shall be defined  as  any  licensed  private  career  school,  certified
     6  English  as a Second Language school, or online education marketplace as
     7  defined in article one hundred one of the education law, or a for-profit
     8  degree-granting institution  approved  pursuant  to  the  department  of
     9  education.
    10    2.  In addition to the protections afforded to consumers in this arti-
    11  cle, including but not limited to section three  hundred  forty-nine  of
    12  this  article, for students that are attending or at one time attended a
    13  proprietary institution in this state, the attorney general whenever  he
    14  or  she  believes  from  evidence  satisfactory  to  him or her that any
    15  proprietary institution, whether such institution maintains  a  physical
    16  presence  in  the  state or enrolls New York state students in an online
    17  distance education program, or agent or employee thereof has engaged  in
    18  or  is  about  to  engage  in  any of the acts or practices deemed to be
    19  unlawful unfair under this section, the attorney general  may  bring  an
    20  action  in the name and on behalf of the people of the state of New York
    21  to enjoin such unlawful unfair acts or practices, obtain restitution  of
    22  any  moneys  or  property  obtained  directly  or indirectly by any such
    23  unlawful unfair acts or practices, and/or  obtain  civil  penalties  for
    24  violations  of  this section.   In such action preliminary relief may be
    25  granted under article sixty-three of the civil practice law and rules.
         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11534-03-9
        S. 5598                             2
     1    3. An act or practice shall  be  deemed  unlawful  unfair  under  this
     2  section if:
     3    (a)  it  causes  or  is likely to cause substantial injury to students
     4  that are attending or at one time  attended  a  proprietary  institution
     5  that  cannot  be reasonably avoided by students that are attending or at
     6  one time attended a proprietary institution, as defined and regulated by
     7  the state education department; or
     8    (b) it is not outweighed by countervailing benefits to  students  that
     9  are  attending  or  at  one  time attended a proprietary institution, as
    10  defined and regulated by the state education department, or to  competi-
    11  tion.
    12    4.  Nothing in this section shall supersede, amend or repeal any other
    13  law of this state under which the attorney general is authorized to take
    14  any action or conduct any inquiry.
    15    § 2. The commissioner of education shall promulgate  rules  and  regu-
    16  lations  necessary  for  the  implementation of this act within 180 days
    17  after the effective date of this act.
    18    § 3. This act shall take effect immediately.