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S5769Senate2015-2016 SessionSame asA6973

Relates to licensed private schools and registered business schools

Sponsor Kenneth P. LaValleSD-1Affects Education
Status
Senate Floor Calendar
Impact
Pending
Outcome
Companion signed

Bill progress

Signed via A6973

What's happening

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Who cares

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Sponsors

Primary sponsor
Kenneth P. LaValle

Senator · Senate District 1

Chair, Higher Education

No co-sponsors yet.

History

  1. Substituted by A6973A
  2. Ordered to third reading cal.1588
  3. Committee discharged and committed to rules
  4. Referred to higher education

Companion bill

The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.

A6973Assembly

Relates to licensed private schools and registered business schools

Signed by Governor · Sponsor Victor M. Pichardo

Signed into law

Full text

The text isn't available here yet. Check nysenate.gov.

Sponsor's memo

BILL NUMBER:S5769

Title of bill

An act to amend chapter 434 of the laws of 1999, amending the education law relating to licensed private schools and registered business schools, in relation to the effectiveness thereof

Purpose

To extend the law that allows the State Education Department (SED) to move assessments collected into the Bureau of Proprietary School Supervisions account to assist in funding SED's oversight of proprietary schools.

Summary of provisions

This bill would extend the law that allows assessments collected by SED from proprietary schools for the Tuition Reimbursement Account to be deposited into SED's Bureau of Proprietary School Supervisions account when the net balance of the tuition reimbursement account is equal to or greater than $1.5 million to assist in funding SED's oversight of proprietary schools.

Justification

Currently, proprietary schools licensed by SED after June 30, 1993 are required to pay a "special assessment" that is deposited into Tuition Reimbursement Account (TRA). SED uses these additional funds to refund tuition to students in the event that their schools close or do not properly provide the education program as approved by SED's Bureau of Proprietary School Supervisions (BPSS). After the balance of TRA exceeds $1.5 million, any additional funds received are transferred into the BPSS Account to assist in funding SED's oversight of the proprietary school sector. In this fashion, it is assured that there are sufficient resources in the TRA to protect student tuition dollars.

The Special Assessment on newly licensed schools and who licensed after June 30, 1993 have met the purpose of which they were created.

The Special Assessment has helped stabilize the Tuition Reimbursement Account and has added some much-needed resources to the BPSS Account. The Special Assessment paid by school amounts to 3/10 of 1 percent of a school's gross tuition receipts. The Special Assessment is based upon financial hardship; a school is allowed to make its Special Assessment payments over a five year period. The Special Assessment is also equitable in that all schools, even those licensed before June 30, 1993, were required to pay this amount to fund the TRA until the TRA was capped 1993. Therefore, the Special Assessment revenue is a fee that all schools paid to fund the TRA since its inception in 1989. Since 1998, BPSS has paid out approximately $4.7 million in student tuition refunds from TRA. The Special Assessment revenue, about $153,000 per year, has assisted BPSS in ensuring that TRA is sufficient at a balance of $2.2 million to meet all student obligations.

Legislative history

New bill.

Fiscal implications

Undetermined.

Effective date

Immediately.

Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.