What's happening
This bill allows the attorney general to take legal action against proprietary higher education institutions for unfair practices harming students.
Why it matters
Expands legal protections for students by clearly defining what constitutes "unlawful unfair practices". at for-profit and certain private educational institutions, including online programs, making it easier for authorities to target deceptive or harmful conduct.
Empowers the attorney general to seek restitution, civil penalties, and injunctions. against institutions engaging in practices that substantially harm students or have no significant benefit to students or competition, potentially deterring exploitative behavior.
Covers a wide range of educational providers,. including private career schools, ESL schools, online education marketplaces, and for-profit colleges, ensuring that both in-person and online students are protected regardless of where they reside or study.
Requires the state education department to help implement and regulate these new protections,. ensuring that enforcement is backed by clear rules and procedures, and reinforcing the state’s oversight role in higher education consumer protection.
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Who cares
Current and former proprietary-school students
The bill would authorize the attorney general to seek restitution and stop unlawful unfair practices affecting them.
Private career schools, certified ESL schools, online education marketplaces and for-profit colleges
Covered institutions, including those enrolling New York students online, could face injunctions, restitution and civil penalties for unlawful unfair practices.
New York attorney general
The bill would expressly authorize enforcement actions against covered institutions and their agents or employees for practices they have engaged in or are about to undertake.
State education commissioner
The bill would require the commissioner to issue implementing rules and regulations within 180 days after its effective date.
Headline styles
Stop College Fraud Practices
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to consumer affairs and protection
- Referred to consumer affairs and protection
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
7965
2019-2020 Regular Sessions
IN ASSEMBLY
May 29, 2019
Introduced by M. of A. EPSTEIN -- read once and referred to the Committee on Consumer Affairs and 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 Assembly, do enact as follows:
Section 1. The general business law is amended by adding a new section 349-f to read as follows:
§ 349-f. Proprietary institutions of higher education; unlawful unfair practices. 1. For purposes of this section, "proprietary institution" shall be defined as any licensed private career school, certified English as a Second Language school, or online education marketplace as defined in article one hundred one of the education law, or a for-profit degree-granting institution approved pursuant to the department of education.
2. In addition to the protections afforded to consumers in this article, including but not limited to section three hundred forty-nine of this article, for students that are attending or at one time attended a proprietary institution in this state, the attorney general whenever he or she believes from evidence satisfactory to him or her that any proprietary institution, whether such institution maintains a physical presence in the state or enrolls New York state students in an online distance education program, or agent or employee thereof has engaged in or is about to engage in any of the acts or practices deemed to be unlawful unfair under this section, the attorney general may bring an action in the name and on behalf of the people of the state of New York to enjoin such unlawful unfair acts or practices, obtain restitution of any moneys or property obtained directly or indirectly by any such unlawful unfair acts or practices, and/or obtain civil penalties for violations of this section. In such action preliminary relief may be 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
A. 7965 2
3. An act or practice shall be deemed unlawful unfair under this section if:
(a) it causes or is likely to cause substantial injury to students that are attending or at one time attended a proprietary institution that cannot be reasonably avoided by students that are attending or at one time attended a proprietary institution, as defined and regulated by the state education department; or
(b) it is not outweighed by countervailing benefits to students that are attending or at one time attended a proprietary institution, as defined and regulated by the state education department, or to competition.
4. Nothing in this section shall supersede, amend or repeal any other law of this state under which the attorney general is authorized to take any action or conduct any inquiry.
§ 2. The commissioner of education shall promulgate rules and regulations necessary for the implementation of this act within 180 days after the effective date of this act.
§ 3. 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.