Bill Text: NY S07699 | 2021-2022 | General Assembly | Introduced

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Bill Title: Prevents institutions from implementing contingencies on the receipt of state funding by preventing the use of language in agreements regarding mandatory arbitration, internal dispute processes, prohibiting class actions and prohibiting the disclosure of any information in the agreement to anyone.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Passed) 2022-03-18 - SIGNED CHAP.146 [S07699 Detail]

Download: New_York-2021-S07699-Introduced.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                          7699

                    IN SENATE

                                     January 7, 2022
                                       ___________

        Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules

        AN ACT to amend the education law,  in  relation  to  preventing  insti-
          tutions  from implementing contingencies on the receipt of state fund-
          ing

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

     1    Section  1.  Subdivision  1  of section 665-a of the education law, as
     2  amended by a chapter of the laws of  2021  amending  the  education  law
     3  relating  to  preventing institutions from implementing contingencies on
     4  the receipt of state funding, as proposed in legislative  bills  numbers
     5  S.  4237-A and A. 3136-A, is amended and a new subdivision 3 is added to
     6  read as follows:
     7    1. Participation agreement. [(a)] No institution  may  participate  in
     8  the  general, academic or other award programs described in this article
     9  unless it shall have entered into a written agreement  with  the  corpo-
    10  ration  under  which it shall be bound to comply with all laws and rules
    11  applicable to such programs. [Each participation agreement shall include
    12  the following terms and conditions:
    13    (i) An institution shall not, as a condition  of  any  award  or  loan
    14  pursuant to this article, require any student:
    15    (1)  submit  to mandatory arbitration to resolve any matter thereafter
    16  arising under such agreement prior to  the  commencement  of  any  legal
    17  action to enforce the provisions of such agreement;
    18    (2)  resolve  a  complaint  relating  to  any award or loan through an
    19  internal dispute process;
    20    (3) waive any right, forum,  or  procedure  for  a  violation  of  any
    21  provision  of  this  chapter,  including  the right to file and pursue a
    22  civil action, class action or a complaint with, or otherwise notify, any
    23  state agency, other public prosecutor, law enforcement  agency,  or  any
    24  court or other governmental entity of any alleged violation; and
    25    (4)  be prohibited from disclosing, discussing, describing or comment-
    26  ing upon the terms of the agreement or any violation thereof.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD02144-04-2
        S. 7699                             2

     1    (ii) An institution shall  not  threaten,  retaliate  or  discriminate
     2  against  any  student  eligible  for  such  award or loan because of the
     3  refusal by such student to consent to mandatory arbitration, to  resolve
     4  a  complaint  through  an  internal dispute process, to waive any right,
     5  forum, or procedure for a violation of this chapter, including the right
     6  to  file and pursue a civil action, class action or a complaint with, or
     7  otherwise  notify,  any  state  agency,  other  public  prosecutor,  law
     8  enforcement  agency,  or  any  court or other governmental entity of any
     9  alleged violation, or not to disclose, discuss, describe or comment upon
    10  the terms of the agreement or any violation thereof.
    11    (iii) For purposes of this paragraph, an  agreement  that  requires  a
    12  student  to  opt out of a waiver or take any affirmative action in order
    13  to preserve their rights is deemed a condition  of  any  award  or  loan
    14  pursuant to this article.
    15    (iv)  In  addition  to injunctive relief and any other remedies avail-
    16  able, a court may award a prevailing plaintiff  enforcing  their  rights
    17  under this paragraph reasonable attorneys' fees.
    18    (v)  Nothing  in  this  paragraph  is intended to invalidate a written
    19  arbitration agreement that is otherwise enforceable  under  the  Federal
    20  Arbitration Act.
    21    (b)]  The  participation  agreement  may  contain such other terms and
    22  conditions, consistent with such applicable laws, rules and  procedures,
    23  as  the  president may require in accordance with rules adopted for this
    24  purpose by the board and shall be developed  in  consultation  with  the
    25  commissioner of education.
    26    [(c)]  In accordance with rules adopted by the board for this purpose,
    27  the president, may suspend, limit or terminate an institution's  partic-
    28  ipation  in  these  programs in the event it shall be determined after a
    29  hearing conducted in accordance with the state administrative  procedure
    30  act  that  the  institution  has  violated any applicable laws, rules or
    31  procedures provided for under the agreement in accordance with  law  and
    32  the rules of the board.
    33    3.  Contingencies  on the receipt of state funding. (a) An institution
    34  shall not, as a condition of any award or loan pursuant to this article,
    35  require any student to:
    36    (i) submit to mandatory arbitration to resolve any matter relating  to
    37  such  award  or  loan  prior  to the commencement of any legal action to
    38  enforce an entitlement thereto;
    39    (ii) resolve a complaint relating to any  award  or  loan  through  an
    40  internal dispute process;
    41    (iii)  waive  any  right,  forum,  or procedure for a violation of any
    42  provision of this chapter, including the right  to  file  and  pursue  a
    43  civil action, class action or a complaint with, or otherwise notify, any
    44  state  agency,  other  public prosecutor, law enforcement agency, or any
    45  court or other governmental entity of any alleged violation; or
    46    (iv) be prohibited from disclosing, discussing, describing or comment-
    47  ing upon the terms of the agreement or any violation thereof.
    48    (b) An institution  shall  not  threaten,  retaliate  or  discriminate
    49  against  any  student  eligible  for  such  award or loan because of the
    50  refusal by such student to consent to mandatory arbitration, to  resolve
    51  a  complaint  through  an  internal dispute process, to waive any right,
    52  forum, or procedure for a violation of this chapter, including the right
    53  to file and pursue a civil action, class action or a complaint with,  or
    54  otherwise  notify,  any  state  agency,  other  public  prosecutor,  law
    55  enforcement agency, or any court or other  governmental  entity  of  any
        S. 7699                             3

     1  alleged violation, or not to disclose, discuss, describe or comment upon
     2  the terms of the agreement or any violation thereof.
     3    (c)  For  purposes  of  this subdivision, an agreement that requires a
     4  student to opt out of a waiver or take any affirmative action  in  order
     5  to  preserve  their rights is deemed a condition that violates paragraph
     6  (a) of this subdivision.
     7    (d) In addition to injunctive relief and any other remedies available,
     8  a court may award a prevailing plaintiff enforcing  their  rights  under
     9  this subdivision reasonable attorneys' fees.
    10    (e)  Nothing  in  this subdivision is intended to invalidate a written
    11  arbitration agreement that is otherwise enforceable  under  the  Federal
    12  Arbitration Act.
    13    §  2.  This  act  shall  take  effect on the same date and in the same
    14  manner as a chapter of the laws  of  2021  amending  the  education  law
    15  relating  to  preventing institutions from implementing contingencies on
    16  the receipt of state funding, as proposed in legislative  bills  numbers
    17  S. 4237-A and A. 3136-A, takes effect.