Bill Text: NY S05799 | 2019-2020 | General Assembly | Introduced

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

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Bill Title: Requires certain for-profit institutions to make annual reports to the commissioner of education and requires the commissioner to make such reports publicly available.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HIGHER EDUCATION [S05799 Detail]

Download: New_York-2019-S05799-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          5799

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 15, 2019
                                       ___________

        Introduced  by  Sen.  THOMAS -- 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 reporting and publish-
          ing of certain financial statements and statistical  reports  received
          by the commissioner of education

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. The education law is amended by adding a new section  239-c
     2  to read as follows:
     3    §  239-c.  For-profit  higher education institutions; enhanced disclo-
     4  sure. 1. As used in this section the  term  "for-profit  institution  of
     5  higher education" means a school that:
     6    (a)  provides  a  program  leading  to  an associates or baccalaureate
     7  degree;
     8    (b) is legally authorized in New York state to provide  a  program  of
     9  education beyond secondary education; and
    10    (c) is neither a public or nonprofit institution.
    11    2.  For  school  fiscal  years  beginning on and after July first, two
    12  thousand twenty, each for-profit institution of higher  education  shall
    13  file annually an audited financial statement audited according to gener-
    14  ally  accepted  auditing  standards  by  an independent certified public
    15  accountant or an independent public accountant and  statistical  reports
    16  certified  by  the  owner or operator of the institution, as required by
    17  the commissioner; provided, however, that the commissioner shall  accept
    18  a  copy of a current financial statement previously filed by an institu-
    19  tion  with  any  other  governmental  agency  in  compliance  with   the
    20  provisions of any federal or state laws, or rules or regulations if such
    21  statement  contains  all  of the information required under this section
    22  and conforms to this section's  requirements  of  auditing,  review  and
    23  certification.  Any  required  audit of the financial statement shall be

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD11661-01-9
        S. 5799                             2

     1  paid for by the institution, and the results  of  such  audit  shall  be
     2  forwarded to the commissioner.
     3    3.  The  commissioner  may  require audited statistical reports upon a
     4  determination that a for-profit  institution  of  higher  education  has
     5  provided  false  or inaccurate certified statistical reports. The finan-
     6  cial statements shall be based on the fiscal year of the institution and
     7  shall also include an itemized account of tuition refunds due and  owing
     8  to  past  or  presently  enrolled  students.  Statistical  reports shall
     9  include, but not be limited to,  enrollment,  completion  and  placement
    10  data.
    11    4.  For  school  fiscal  years  beginning on and after July first, two
    12  thousand twenty, the commissioner  shall  make  publicly  available  and
    13  publish on the website of the department all annual financial statements
    14  and  statistical reports received pursuant to this section within thirty
    15  days of receipt by the commissioner of such statements and reports.  The
    16  department  shall  maintain  and make publicly available such records on
    17  its website for a period of no less than ten years.
    18    § 2. Paragraph e of subdivision 4 of section 5001 of the education law
    19  is amended by adding a new subparagraph (iv) to read as follows:
    20    (iv) For school fiscal years beginning on and after  July  first,  two
    21  thousand  twenty,  the  commissioner  shall  make publicly available and
    22  publish on the website of the department all annual financial statements
    23  and statistical reports received pursuant to this paragraph within thir-
    24  ty days of receipt by the commissioner of such statements  and  reports.
    25  The  department  shall maintain and make publicly available such records
    26  on its website for a period of no less than ten years.
    27    § 3. This act shall take effect immediately.