STATE OF NEW YORK
________________________________________________________________________
5799--B
2019-2020 Regular Sessions
IN SENATE
May 15, 2019
___________
Introduced by Sens. THOMAS, JACKSON, KRUEGER, PARKER, SKOUFIS -- 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 --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
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 reporting.
4 1. Definitions. As used in this section the term "for-profit institu-
5 tion of higher education" means any licensed private career school,
6 certified English as a second language school, or online education
7 marketplace as defined in article one hundred one of this chapter, or
8 college that:
9 (a) provides a program leading to an associates or baccalaureate
10 degree;
11 (b) is legally authorized in New York state to provide a program of
12 education beyond secondary education; and
13 (c) is neither a public or nonprofit institution.
14 2. The NYS proprietary institution disclosure website. (a) The commis-
15 sioner shall establish a publicly accessible website for the dissem-
16 ination of data and disclosures related to for-profit institutions of
17 higher education. The website at a minimum shall publish:
18 (i) A listing of each for-profit institution of higher education in
19 the state. Such listing of each for-profit institution of higher educa-
20 tion shall display information including, but not limited to, the
21 following:
22 (1) All approved locations of the for-profit institution of higher
23 education;
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD11661-06-9
S. 5799--B 2
1 (2) Listing of all degree and certificate programs of the for-profit
2 institution of higher education that have been approved by the depart-
3 ment;
4 (3) Basic information of the for-profit institution of higher educa-
5 tion such as the year founded and any accreditations held;
6 (4) Whether the for-profit institution of higher education is an
7 approved state authorization reciprocity agreement institution and, if
8 so, the institution's membership status;
9 (5) Whether the for-profit institution of higher education is eligible
10 to participate in federal title IV programs;
11 (6) Whether the for-profit institution of higher education partic-
12 ipates in any state specific programs including, but not limited to, the
13 tuition assistance program, enhanced tuition awards program, or a
14 program pursuant to section sixty-four hundred fifty-one of this chap-
15 ter.
16 (ii) Forms and/or links to the for-profit institution of higher
17 education's complaint process and instructions or links to instructions
18 detailing how students can formally make a complaint against their
19 program to both their school and later, if necessary, to the department;
20 (iii) Any reports produced regarding complaints that have been inves-
21 tigated by the department and notice of any adverse actions that have
22 been taken by the department against a for-profit institution of higher
23 education program due to a finding of a violation;
24 (iv) An electronic means for former students of closed for-profit
25 institutions of higher education to formally request from the department
26 their student transcripts or other records that may have been collected
27 and digitally stored by the department;
28 (v) Data tracking the annual enrollment at for-profit institutions of
29 higher education; and
30 (vi) Other information related to for-profit institutions of higher
31 education that the commissioner has been required by another provision
32 of law to post on a publicly accessible website.
33 (b) The department shall also include as a part of each for-profit
34 institution of higher education listing information taken from the annu-
35 al audited financial statements of each institution. The department
36 shall display in a way easy to understand by the public a visual repre-
37 sentation portraying the financial viability of the for-profit institu-
38 tion. The department in constructing this financial representation shall
39 consult with members of the for-profit sector to develop a clear way to
40 accurately display relevant information that is part of the for-profit
41 institution's annual audited financial statements. At minimum, the visu-
42 al representation should consider finances spent on student services,
43 rent and upkeep, payment of professors and staff, and the amount spent
44 on advertising, and the federal financial responsibility composite score
45 of the institution.
46 (c) All actions by the federal government, an accreditor, another
47 state, or country taken against a for-profit institution of higher
48 education must be listed in a clear and conspicuous way on each for-pro-
49 fit institution's listing.
50 (d) The department should update the website listing for each proprie-
51 tary institution with any changes as such information is received and at
52 a minimum shall update annually each proprietary institution's listing
53 for accuracy.
54 (e) The commissioner shall promulgate any necessary regulations for
55 the provisions relating to the website, including a full account of all
56 the metrics that the commissioner shall utilize for the visual represen-
S. 5799--B 3
1 tation portraying a for-profit institution's financial viability. The
2 commissioner shall also provide a process so that for-profit insti-
3 tutions may, if needed, challenge what is listed for their institution.
4 At no time during a challenge should a for-profit institution's listing
5 on the publicly accessible website be completely removed.
6 3. Rapid enrollment increases or decreases at for-profit institutions
7 of higher education. (a) If a program at a for-profit institution of
8 higher education that has been approved by the department has an
9 increase in enrollment equal to or more than fifteen percent on a year-
10 to-year basis such enrollment increase shall cause the department to
11 review the program within thirty business days. The review of the
12 program conducted by the department shall ensure that an institution is
13 still providing a quality education and is in full compliance with state
14 law and departmental regulations. If an institution is not in compliance
15 then the commissioner is empowered to take steps to remediate the issues
16 and shall flag any issues discovered on the publicly accessible website
17 pursuant to subdivision two of this section.
18 (b) If a program at for-profit institution of higher education that
19 has been approved by the department has a decrease in enrollment equal
20 to or more than fifteen percent on a year-to-year basis such enrollment
21 decrease shall cause the department to review the program within thirty
22 business days. The review of the program conducted by the department
23 shall ensure that an institution is still providing a quality education
24 and is in full compliance with state law and departmental regulations.
25 If an institution is not in compliance then the department is empowered
26 to take steps to remediate the issues and shall flag any issues discov-
27 ered on the publicly accessible website pursuant to subdivision two of
28 this section.
29 (c) For violations discovered because of reviews taken by the depart-
30 ment pursuant to paragraphs (a) and (b) of this subdivision, the
31 commissioner depending on the severity of the infraction shall have the
32 authority to require a for-profit institution of higher education to
33 operate under additional restrictions, including, but not limited to,
34 the following:
35 (i) Requiring the for-profit institution of higher education to enact
36 a remediation plan with periodic reporting;
37 (ii) Limiting new student enrollment into impacted programs at the
38 for-profit institution of higher education in question; or
39 (iii) Instituting a moratorium on any new programs or degrees or
40 certificates that can be issued by a for-profit institution of higher
41 education.
42 (d) The commissioner shall promulgate rules and regulations governing
43 the manner in which enrollment shall be tracked by the department using
44 existing incoming data.
45 (e) Nothing in this subdivision shall limit any options for such addi-
46 tional enforcement measures that the commissioner may have by any other
47 law, rule, or regulation in place at the time of the effective date of
48 this section.
49 § 2. This act shall take effect one year after it shall have become a
50 law. Effective immediately, the addition, amendment and/or repeal of any
51 rule or regulation necessary for the implementation of this act on its
52 effective date are authorized to be made and completed on or before such
53 effective date.