What's happening
This bill establishes penalties, audits, and possible damages for higher education institutions in New York that fail to disclose certain gifts, especially from foreign sources.
Why it matters
Strengthens oversight on foreign influence. By targeting undisclosed gifts from foreign sources, the bill aims to reduce the risk of foreign governments or entities exerting unmonitored influence over New York higher education institutions.
Creates real financial and reputational risks. Institutions now face audits, potential public disclosure of audit findings, and punitive damages, which could incentivize stricter internal controls and transparency regarding gift acceptance.
Empowers state agencies. The Department of Education and the State Comptroller are given new tools and discretion, including the ability to audit, seek damages, and forgive violations, allowing for both enforcement and flexibility in handling noncompliance.
Directs recovered funds to education. Any damages (after costs) are returned to the University of the State of New York, potentially providing additional funding for the state’s educational system rather than punitive revenue for general state use.
Albany, before your first meeting.
Every bill that moved yesterday, summarized in a sentence and ranked by impact. The Albany Scorecard follows on Sundays.
Free. Unsubscribe in one click. Want alerts on specific bills? Create an account.
Who cares
Headline styles
Fine Colleges for Hiding Gifts
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to higher education
- Referred to higher education
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4828
2017-2018 Regular Sessions
IN ASSEMBLY
February 3, 2017
Introduced by M. of A. O'DONNELL -- read once and referred to the Committee on Higher Education
AN ACT to amend the education law, in relation to establishing penalties for institutions of higher education which do not comply with certain gift disclosure requirements
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Section 207-a of the education law is amended by adding a new subdivision 5 to read as follows:
5. a. In the event an institution of higher education fails to comply with the disclosure requirements of subdivision three of this section, the department shall immediately provide a notification to such institution of higher education that it may be subject to a full audit to be conducted by the state comptroller if the disclosure requirements are not met within twenty-five days of such notification.
b. In the event an institution of higher education fails to comply with the disclosure requirements of subdivision three of this section within the twenty-five days provided for in paragraph a of this subdivision, upon the expiration of such twenty-five days the department may request the state comptroller to initiate a full audit of the institution of higher education. The results of such audit may be made available to the public at the discretion of the department.
c. In the event an audit is conducted pursuant to this subdivision and the institution of higher education is found to have unlawfully withheld from the department disclosure information required by this section, the department may seek damages in a court of competent jurisdiction. The department may seek such damages for:
(i) any gifts received from foreign governments, foreign legal entities, or foreign persons, or an equivalent value of any such gifts; or
(ii) punitive damages that shall not exceed the lesser of ten percent of the value of the gift received, or seventy-five thousand dollars.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD09430-01-7
A. 4828 2
Any damages received, less court costs and costs arising from the audit, shall be awarded to the university of the state of New York.
d. The department shall have the authority to forgive any failure to comply with subdivision three of this section, and excuse any damages that an institution of higher education has incurred as result of noncompliance with this section.
§ 2. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.