Bill Text: NY S05800 | 2019-2020 | General Assembly | Introduced


Bill Title: Requires for-profit higher education institutions to spend no less than fifty percent of such institution's annual revenues on expenditures in the areas of student instruction, academic support and advising, or career services.

Spectrum: Partisan Bill (Democrat 4-0)

Status: (Introduced - Dead) 2020-01-08 - REFERRED TO HIGHER EDUCATION [S05800 Detail]

Download: New_York-2019-S05800-Introduced.html



                STATE OF NEW YORK
        ________________________________________________________________________

                                          5800

                               2019-2020 Regular Sessions

                    IN SENATE

                                      May 15, 2019
                                       ___________

        Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
          printed to be committed to the Committee on Higher Education

        AN ACT to amend the education law, in relation to standards for for-pro-
          fit higher education institutions

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

     1    Section  1. The education law is amended by adding a new section 239-c
     2  to read as follows:
     3    § 239-c. Standards for for-profit higher  education  institutions.  1.
     4  For  the  purposes  of  this  section the following terms shall have the
     5  following meanings:
     6    (a) "For-profit institution of higher education" means a school that:
     7    (i) provides a program  leading  to  an  associates  or  baccalaureate
     8  degree;
     9    (ii)  is  legally authorized in New York state to provide a program of
    10  education beyond secondary education; and
    11    (iii) is neither a public or non-profit institution.
    12    (b) "Student instruction"  means  expenditures  for  salaries,  fringe
    13  benefits,  professional development expenses, and other payments made to
    14  instructors related to classroom instruction.
    15    (c) "Academic support and advising" means expenditures related to  the
    16  advisement of students on course selection or out of classroom tutoring.
    17    (d)  "Career services" means expenditures in assisting students in the
    18  areas of resume and cover letter writing,  interviewing  and  strategies
    19  for getting a job.
    20    2.  (a)  Commencing  in the two thousand nineteen--two thousand twenty
    21  academic year and thereafter, a for-profit institution of higher  educa-
    22  tion shall spend no less than fifty percent of such institution's annual
    23  revenues  on  expenditures in the areas of student instruction, academic
    24  support and advising, or career services.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD10823-01-9

        S. 5800                             2

     1    (b) Expenditures made for in the areas of student instruction, academ-
     2  ic support and advising, or career services shall not  include  expendi-
     3  tures  for student recruitment, marketing, direct mailing or expenses of
     4  non-instructional staff whose primary duties are  not  student  instruc-
     5  tion, academic support and advising, or career services.
     6    (c)  A  for-profit  institution of higher education that fails to meet
     7  the requirement of paragraph (a) of this subdivision shall be ineligible
     8  to enroll new students participating in  any  program  authorized  under
     9  this  chapter for a period of not less than two academic years, commenc-
    10  ing with the academic year immediately following the year in  which  the
    11  institution's  financial  statement  demonstrating  failure  to meet the
    12  requirement for the academic  year  is  submitted  to  the  commissioner
    13  pursuant  to subdivision three of this section. To regain eligibility to
    14  enroll new students participating in the programs authorized under  this
    15  chapter,  a for-profit institution of higher education shall demonstrate
    16  compliance with paragraph (a) of this subdivision for a minimum  of  two
    17  consecutive academic years after the academic year in which the institu-
    18  tion became ineligible.
    19    3.  On  or  before September first, a for-profit institution of higher
    20  education shall annually submit to the commissioner a detailed financial
    21  statement disclosing the institution's revenues and expenditures for the
    22  prior academic year and shall disclose the sources of revenue by type as
    23  well as types of expenditures. Such statement shall also include a list-
    24  ing of the total individual compensation from  the  institution  to  all
    25  officers,  directors,  board  members,  trustees, shareholders, members,
    26  owners, and senior administrators, including all fringe benefits, bonus-
    27  es, and performance incentives paid in the  prior  academic  year.  Such
    28  statement  shall  adhere to generally accepted accounting principles and
    29  shall be certified by an independent  certified  public  accountant  and
    30  certified  by  the president of the institution. Such statement shall be
    31  submitted in a form and manner as determined by the commissioner.
    32    4. The commissioner is authorized to promulgate rules and regulations,
    33  and may promulgate emergency regulations, necessary for the  implementa-
    34  tion of the provisions of this section.
    35    § 2. This act shall take effect immediately.
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