Bill Text: NY S00100 | 2021-2022 | General Assembly | Amended

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Bill Title: Authorizes the attorney general to bring an action to enjoin unfair practices of proprietary institutions of higher education; defines unlawful unfair acts or practices.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2022-01-05 - REFERRED TO CONSUMER PROTECTION [S00100 Detail]

Download: New_York-2021-S00100-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         100--A

                               2021-2022 Regular Sessions

                    IN SENATE

                                       (Prefiled)

                                     January 6, 2021
                                       ___________

        Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
          printed to be committed to the Committee  on  Consumer  Protection  --
          committee  discharged,  bill amended, ordered reprinted as amended and
          recommitted to said committee

        AN ACT to amend the general business law, in relation  to  unfair  prac-
          tices of proprietary institutions of higher education

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Subdivisions (a) and (g) of  section  349  of  the  general
     2  business law, as added by chapter 43 of the laws of 1970, are amended to
     3  read as follows:
     4    (a)  Deceptive or unfair acts or practices in the conduct of any busi-
     5  ness, trade or commerce or in the furnishing  of  any  service  in  this
     6  state are hereby declared unlawful.
     7    (g)  This section shall apply to all deceptive or unfair acts or prac-
     8  tices declared to be unlawful, whether or not subject to any  other  law
     9  of this state, and shall not supersede, amend or repeal any other law of
    10  this  state  under  which the attorney general is authorized to take any
    11  action or conduct any inquiry.
    12    § 2. The general business law is amended by adding a new section 349-g
    13  to read as follows:
    14    § 349-g. Proprietary institutions of higher education; unlawful unfair
    15  practices. 1. For purposes of this  section,  "proprietary  institution"
    16  shall  be  defined  as  any  licensed  private  career school, certified
    17  English as a Second Language school, or online education marketplace  as
    18  defined in article one hundred one of the education law, or a for-profit
    19  degree-granting  institution  approved  pursuant  to  the  department of
    20  education, including any such institution with a  physical  presence  in
    21  the  state  or  enrolling  New York state students in an online distance
    22  education program.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02334-03-1
        S. 100--A                           2

     1    2. In addition to the protections afforded to consumers in this  arti-
     2  cle  for  students that are attending or at one time attended a proprie-
     3  tary institution in this state, the attorney general whenever he or  she
     4  believes  from  evidence satisfactory to him or her that any proprietary
     5  institution,  an  agent  or  employee  thereof, or a private third party
     6  operating in concert with or at the direction of the proprietary  insti-
     7  tution,  has engaged in any of the acts or practices deemed to be unfair
     8  under this section, the attorney general may bring an action in the name
     9  and on behalf of the people of the state of  New  York  to  enjoin  such
    10  unfair  acts  or practices, obtain restitution of any moneys or property
    11  obtained directly or indirectly by any such unfair  acts  or  practices,
    12  and/or  obtain  civil penalties for violations of this section.  In such
    13  action preliminary relief may be granted under  article  sixty-three  of
    14  the civil practice law and rules.
    15    3. An act or practice shall be deemed unfair under this section if:
    16    (a)  it  causes  or  is likely to cause substantial injury to students
    17  that are attending or at one time  attended  a  proprietary  institution
    18  that  cannot  be reasonably avoided by students that are attending or at
    19  one time attended a proprietary institution; or
    20    (b) it is not outweighed by countervailing benefits to  students  that
    21  are  attending  or at one time attended a proprietary institution, or to
    22  competition.
    23    4. Nothing in this section shall supersede, amend or repeal any  other
    24  law of this state under which the attorney general is authorized to take
    25  any action or conduct any inquiry.
    26    5.  In addition to the right of action granted to the attorney general
    27  pursuant to this section, any person or class or persons who  have  been
    28  injured  by  reason of any violation of this section may bring an action
    29  to enjoin such unlawful act or practice, an  action  to  recover  actual
    30  damages,  or  both  such  actions.  The  court  may,  in its discretion,
    31  increase the award damages to an amount not to exceed  three  times  the
    32  actual  damages.  The  court  may  award reasonable attorney's fees to a
    33  prevailing plaintiff.
    34    § 3. This act shall take effect immediately.