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 Assem-
        bly, do enact as follows:
     1    Section 1. Section 207-a of the education law is amended by  adding  a
     2  new subdivision 5 to read as follows:
     3    5.  a. In the event an institution of higher education fails to comply
     4  with the disclosure requirements of subdivision three of  this  section,
     5  the department shall immediately provide a notification to such institu-
     6  tion  of  higher  education that it may be subject to a full audit to be
     7  conducted by the state comptroller if the  disclosure  requirements  are
     8  not met within twenty-five days of such notification.
     9    b.  In  the  event  an institution of higher education fails to comply
    10  with the disclosure requirements of subdivision three  of  this  section
    11  within the twenty-five days provided for in paragraph a of this subdivi-
    12  sion,  upon  the  expiration of such twenty-five days the department may
    13  request the state comptroller to initiate a full audit of  the  institu-
    14  tion  of  higher education. The results of such audit may be made avail-
    15  able to the public at the discretion of the department.
    16    c. In the event an audit is conducted pursuant to this subdivision and
    17  the institution of higher education is found to have unlawfully withheld
    18  from the department disclosure information required by this section, the
    19  department may seek damages in a court of  competent  jurisdiction.  The
    20  department may seek such damages for:
    21    (i)  any  gifts received from foreign governments, foreign legal enti-
    22  ties, or foreign persons, or an equivalent value of any such gifts; or
    23    (ii) punitive damages that shall not exceed the lesser of ten  percent
    24  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
     1  Any damages received, less court costs and costs arising from the audit,
     2  shall be awarded to the university of the state of New York.
     3    d.  The  department shall have the authority to forgive any failure to
     4  comply with subdivision three of this section, and  excuse  any  damages
     5  that  an  institution  of  higher  education  has  incurred as result of
     6  noncompliance with this section.
     7    § 2. This act shall take effect immediately.