S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5562--A
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 7, 2019
                                ___________
 
 Introduced  by Sen. STAVISKY -- read twice and ordered printed, and when
   printed to be committed  to  the  Committee  on  Higher  Education  --
   reported  favorably from said committee and committed to the Committee
   on Rules -- committee discharged, bill amended, ordered  reprinted  as
   amended and recommitted to said committee

 AN  ACT  to  amend  the  education  law,  in relation to degree-granting
   proprietary colleges; and to amend the state finance law, in  relation
   to creating the proprietary college tuition reimbursement account
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. This act shall be known and may be cited  as  the  "degree-
 granting proprietary college supervision and student protection act".
   §  2.  The  education  law is amended by adding a new section 212-d to
 read as follows:
   § 212-D. PROPRIETARY COLLEGE TUITION REIMBURSEMENT ACCOUNT.  1.    FEE
 ASSESSMENT.    (A)  THE COMMISSIONER SHALL ANNUALLY ASSESS AND HAVE EACH
 PROPRIETARY DEGREE-GRANTING COLLEGE PAY A FEE BASED  ON  THAT  COLLEGE'S
 GROSS  ANNUAL  INCOME  INTO  A PROPRIETARY COLLEGE TUITION REIMBURSEMENT
 ACCOUNT. THE GROSS ANNUAL INCOME SHALL BE DETERMINED BY ANNUAL FINANCIAL
 STATEMENTS THAT ARE SUBMITTED TO THE COMMISSIONER.
   (B) THE GROSS ANNUAL INCOME FEE SHALL BE  ASSESSED  ACCORDING  TO  THE
 FOLLOWING SCHEDULE:
                          GROSS ANNUAL INCOME FEE
   GROSS ANNUAL INCOME BETWEEN 0-$199,999 - ASSESSED FEE = $1,000.00
   GROSS  ANNUAL  INCOME  BETWEEN  $200,000-$499,999  -  ASSESSED  FEE  =
 $1,500.00
   GROSS  ANNUAL  INCOME  BETWEEN  $500,000-$999,999  -  ASSESSED  FEE  =
 $2,500.00
   GROSS  ANNUAL  INCOME  BETWEEN  $1,000,000-$4,999,999 - ASSESSED FEE =
 $5,000.00

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD11523-04-9
              

 S. 5562--A                          2
 
   GROSS ANNUAL INCOME BETWEEN $5,000,000-$9,999,999  -  ASSESSED  FEE  =
 $10,000.00
   GROSS  ANNUAL  INCOME  BETWEEN  $10,000,000  OR ABOVE - ASSESSED FEE =
 $20,000.00
   THIS ASSESSMENT SHALL BE BASED UPON EACH COLLEGE'S GROSS ANNUAL INCOME
 FROM THE PREVIOUS YEAR, AND SHALL BE  PAYABLE  TO  THE  COMMISSIONER  IN
 EQUAL QUARTERLY INSTALLMENTS WHICH SHALL BE DUE ON DECEMBER FIRST, MARCH
 FIRST, JUNE FIRST, AND SEPTEMBER FIRST.
   (C) ALL OF THE TOTAL ASSESSMENT PROVIDED FOR WITHIN THIS SECTION SHALL
 ACCRUE  TO  THE  CREDIT OF THE PROPRIETARY COLLEGE TUITION REIMBURSEMENT
 ACCOUNT.
   (D) IN THE EVENT THAT THE BALANCE OF THE PROPRIETARY  COLLEGE  TUITION
 REIMBURSEMENT ACCOUNT PROVIDED FOR IN THIS SECTION EXCEEDS THREE MILLION
 DOLLARS,  ALL  ADDITIONAL  FUNDS  SHALL BE DEDICATED TO FUND THE DEPART-
 MENT'S SUPERVISION,  REGULATION,  AND  PUBLICLY  ACCESSIBLE  WEBSITE  OF
 PROPRIETARY DEGREE-GRANTING COLLEGES PURSUANT TO AN ANNUAL APPROPRIATION
 AND  AN  ANNUAL  PLAN  OF  EXPENDITURE  PREPARED BY THE COMMISSIONER AND
 APPROVED BY THE DIRECTOR OF THE BUDGET.
   (E) PAYMENTS MADE WITHIN THIRTY DAYS FOLLOWING THE DUE DATE  SHALL  BE
 SUBJECT  TO  INTEREST  AT  ONE  PERCENT ABOVE THE PREVAILING PRIME RATE.
 THEREAFTER, LATE PAYMENTS MAY RESULT IN ENROLLMENT CAPS ON THE NUMBER OF
 NEW STUDENTS A COLLEGE HAS THE ABILITY TO REGISTER  AND  THE  DEPARTMENT
 SHALL  APPROVE  NO  NEW  PROGRAMS AT A COLLEGE THAT IS IN ARREARS TO THE
 PROPRIETARY COLLEGE TUITION REIMBURSEMENT ACCOUNT.
   (F) NOTHING IN THIS SECTION SHALL PROHIBIT THE STATE, IF IT DETERMINES
 THAT THERE IS A NEED, TO ALLOCATE ADDITIONAL FUNDING TO THE  PROPRIETARY
 COLLEGE TUITION REIMBURSEMENT ACCOUNT TO PROVIDE FOR THE NEEDS OF HARMED
 STUDENTS.
   2.  COMPLAINT  PROCESS  FOR  ACCESS TO THE PROPRIETARY COLLEGE TUITION
 REIMBURSEMENT ACCOUNT.   (A)(I)  CLAIMANTS  WHO  HAD  BEEN  ENROLLED  IN
 PROPRIETARY  DEGREE-GRANTING  COLLEGES  WHICH  HAVE NOT CLOSED OR CEASED
 OPERATION SHALL BE REQUIRED TO SHOW,  IN  A  MANNER  DETERMINED  BY  THE
 COMMISSIONER, THAT:
   (1)  THE  STUDENT  IS  ELIGIBLE  PURSUANT TO SUBPARAGRAPH (II) OF THIS
 PARAGRAPH FOR A REFUND AMOUNT UP TO THE TOTAL COST OF  TUITION  EXPENDED
 BY THE STUDENT AS DETERMINED USING A REFUND FORMULA TO BE PROMULGATED BY
 THE COMMISSIONER;
   (2)  THE STUDENT HAS MADE A REQUEST TO THE COLLEGE FOR A REFUND AMOUNT
 UP TO THE TOTAL COST OF TUITION EXPENDED BY THE STUDENT AND HAS DONE  SO
 IN  A  MANNER CONSISTENT WITH ANY EXISTING COMPLAINT PROCESS AS OUTLINED
 BY THE DEPARTMENT PRIOR TO THE EFFECTIVE DATE OF  THIS  SECTION  OR  ANY
 FUTURE PROCESS PROMULGATED BY THE DEPARTMENT;
   (3)  THE COLLEGE HAS FAILED TO PROVIDE A REFUND AMOUNT UP TO THE TOTAL
 COST OF TUITION EXPENDED BY THE STUDENT WITHIN THE NINETY  DAYS  OF  THE
 COMPLAINT BEING SUBMITTED BY THE STUDENT TO THE COLLEGE;
   (4)  THE STUDENT HAS IN THEIR COMPLAINT CLEARLY IDENTIFIED THE PROGRAM
 OR DEGREE THAT THE STUDENT BELIEVES IS NOT COMPLIANT WITH  THIS  SECTION
 AND HAS INCLUDED INFORMATION NECESSARY FOR THE DEPARTMENT TO COMPLETE AN
 INVESTIGATION OF THE PROGRAM; AND
   (5)  THE  STUDENT  HAS,  IF  APPLICABLE, ATTEMPTED TO HAVE ANY FEDERAL
 STUDENT LOANS DISCHARGED PURSUANT TO A  BORROWER  DEFENSE  TO  REPAYMENT
 CLAIM WITH THE UNITED STATES DEPARTMENT OF EDUCATION.
   (II)  THE  COMMISSIONER SHALL COMPUTE THE TOTAL REFUND AMOUNT, IF ANY,
 IN AN AMOUNT UP TO THE TOTAL COST OF TUITION  EXPENDED  BY  THE  STUDENT
 USING  A REFUND FORMULA TO BE PROMULGATED BY THE DEPARTMENT. THE COMMIS-

 S. 5562--A                          3
 
 SIONER SHALL ACT ON EACH REFUND REQUEST WITHIN THIRTY BUSINESS  DAYS  OF
 SUCH REQUEST.
   (III)  UTILIZING ANY EXISTING COMPLAINT PROCESS AT THE DEPARTMENT THAT
 MAY EXIST OR ANY NEW COMPLAINT PROCESS THAT THE DEPARTMENT  MAY  PROMUL-
 GATE,  IF  A  STUDENT WHO MEETS THE ELIGIBILITY REQUIREMENTS OF SUBPARA-
 GRAPH (I) OF THIS PARAGRAPH AND CAN IN SUCH COMPLAINT MAKE A GOOD  CAUSE
 SHOWING OF A VIOLATION PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION HAS
 OCCURRED  THEN  THAT STUDENT SHALL BE DEEMED ELIGIBLE FOR A REFUND IN AN
 AMOUNT UP TO THE TOTAL COST OF TUITION EXPENDED BY THE STUDENT AS DETER-
 MINED USING A REFUND FORMULA TO BE PROMULGATED BY THE COMMISSIONER.
   (IV) FOR A STUDENT WHO HAD BEEN  ENROLLED  IN  A  PROPRIETARY  DEGREE-
 GRANTING  COLLEGE  THAT  HAS  NOT CLOSED OR CEASED OPERATION, THE REFUND
 SHALL BE AN AMOUNT UP  TO  THE  TOTAL  COST  OF  TUITION,  HOWEVER,  ANY
 DISCHARGE  OF  STUDENT  LOANS  AS  PRESCRIBED  UNDER BORROWER DEFENSE TO
 REPAYMENT CLAIMS WITH THE UNITED STATES DEPARTMENT OF EDUCATION THAT THE
 STUDENT HAS SUCCESSFULLY RECEIVED SHALL  BE  DEDUCTED  FROM  ANY  REFUND
 CALCULATION UNDER THIS SECTION.
   (V)  (1)  WHERE  A  CLAIM  IS PAID TO A STUDENT RELATING TO A VERIFIED
 COMPLAINT ASSERTING A VIOLATION BY A DEGREE-GRANTING PROPRIETARY COLLEGE
 THAT HAS NOT CLOSED OR CEASED OPERATION  THE  COMMISSIONER  SHALL  IMME-
 DIATELY  NOTIFY  THE  COLLEGE  WITHIN  THIRTY  DAYS OF ITS DECISION ON A
 STUDENT'S COMPLAINT TO THE DEPARTMENT.
   (2) WITHIN FIFTEEN DAYS OF THE RECEIPT  OF  THE  NOTICE,  THE  COLLEGE
 SHALL  EITHER REQUEST A HEARING TO CHALLENGE THE COMMISSIONER'S DETERMI-
 NATION THAT A REFUND WAS OWED TO THE STUDENT OR REIMBURSE THE  FUND  THE
 AMOUNT  PAID TO THE CLAIMANT. THIS PAYMENT SHALL ALSO INCUR INTEREST FOR
 EACH DAY IT REMAINS UNPAID AT AN ANNUAL INTEREST  RATE  OF  ONE  PERCENT
 ABOVE THE PRIME RATE. THE COMMISSIONER MAY PROMULGATE STREAMLINED PROCE-
 DURES FOR CONDUCTING HEARINGS PURSUANT TO THIS CLAUSE.
   (VI)  PERSONS  AND ENTITIES RECEIVING REFUNDS UNDER THIS SECTION SHALL
 BE DEEMED TO HAVE  ASSIGNED  OR  SUBROGATED  THEIR  PROPRIETARY  COLLEGE
 TUITION  REIMBURSEMENT  ACCOUNT  RIGHTS TO THE COMMISSIONER ON BEHALF OF
 THE PROPRIETARY COLLEGE  TUITION  REIMBURSEMENT  ACCOUNT  ONLY  FOR  THE
 AMOUNT   REFUNDED  BY  THE  PROPRIETARY  COLLEGE  TUITION  REIMBURSEMENT
 ACCOUNT. WITHIN NINETY DAYS OF ANY REFUND MADE PURSUANT TO THIS SECTION,
 THE COMMISSIONER OR THE ATTORNEY GENERAL SHALL TAKE  APPROPRIATE  ACTION
 TO  RECOVER  THE  TOTAL  AMOUNT OF THE REFUNDS MADE, PLUS ADMINISTRATIVE
 COSTS, FROM THE COLLEGE.
   (B) THE COMMISSIONER SHALL DEVELOP A COMPLAINT FORM  FOR  STUDENTS  OF
 CLOSED  OR  CLOSING  INSTITUTIONS  AND PROVIDE SUCH FORM TO STUDENTS. IN
 ORDER TO CLAIM A REFUND AMOUNT UP TO THE TOTAL COST OF TUITION  EXPENDED
 BY  THE  STUDENT  FROM  THE  PROPRIETARY  COLLEGE  TUITION REIMBURSEMENT
 ACCOUNT, A STUDENT, FOR THE SECTION ALSO  REFERRED  TO  AS  A  CLAIMANT,
 SHALL  APPLY  TO  THE  DEPARTMENT  WITH A COMPLAINT FORM PURSUANT TO THE
 FOLLOWING REQUIREMENTS:
   (I) CLAIMANTS WHO HAD BEEN  ENROLLED  IN  PROPRIETARY  DEGREE-GRANTING
 COLLEGES WHICH HAVE CLOSED OR CEASED OPERATION SHALL BE REQUIRED TO SHOW
 IN A MANNER DETERMINED BY THE COMMISSIONER THAT:
   (1)  THE  STUDENT  IS  ELIGIBLE  PURSUANT TO SUBPARAGRAPH (II) OF THIS
 PARAGRAPH FOR A REFUND AMOUNT EQUAL UP TO  THE  TOTAL  COST  OF  TUITION
 EXPENDED  BY  THE  STUDENT  AS  DETERMINED  USING A REFUND FORMULA TO BE
 PROMULGATED BY THE COMMISSIONER;
   (2) THE STUDENT HAS IN THEIR COMPLAINT CLEARLY IDENTIFIED THE  PROGRAM
 OR  DEGREE THAT THE STUDENT BELIEVES WAS NOT COMPLIANT WITH THIS SECTION
 AT THE CLOSED COLLEGE AND HAS INCLUDED  INFORMATION  NECESSARY  FOR  THE
 DEPARTMENT TO COMPLETE AND MAKE A DETERMINATION OF THE PROGRAM; AND

 S. 5562--A                          4
 
   (3)  THE  STUDENT  HAS,  IF  APPLICABLE, ATTEMPTED TO HAVE ANY FEDERAL
 STUDENT LOANS DISCHARGED PURSUANT TO A  BORROWER  DEFENSE  TO  REPAYMENT
 CLAIM WITH THE UNITED STATES DEPARTMENT OF EDUCATION.
   (II)  THE  COMMISSIONER SHALL COMPUTE THE TOTAL REFUND AMOUNT, IF ANY,
 IN AN AMOUNT UP TO THE TOTAL COST OF TUITION  EXPENDED  BY  THE  STUDENT
 USING  A REFUND FORMULA TO BE PROMULGATED BY THE DEPARTMENT. THE COMMIS-
 SIONER SHALL ACT ON EACH REFUND REQUEST WITHIN THIRTY BUSINESS  DAYS  OF
 SUCH  REQUEST,  UNLESS  SUCH  REQUEST  RELATES  TO A RECENT OR IMPENDING
 COLLEGE CLOSURE IN WHICH CASE THE DEPARTMENT SHALL HANDLE ALL  SIMILARLY
 SITUATED  CLAIMS  WITHIN  A REASONABLE AMOUNT OF TIME BUT IN NO INSTANCE
 SHALL THAT TIME BE LONGER THAN NINETY BUSINESS DAYS.
   (III) UTILIZING ANY EXISTING COMPLAINT PROCESS AT THE DEPARTMENT  THAT
 MAY  EXIST  OR ANY NEW COMPLAINT PROCESS THAT THE DEPARTMENT MAY PROMUL-
 GATE, IF A STUDENT WHO MEETS THE ELIGIBILITY  REQUIREMENTS  OF  SUBPARA-
 GRAPH  (I) OF THIS PARAGRAPH AND CAN IN SUCH COMPLAINT MAKE A GOOD CAUSE
 SHOWING OF A VIOLATION PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION HAS
 OCCURRED THEN THAT STUDENT SHALL BE DEEMED ELIGIBLE FOR A REFUND  IN  AN
 AMOUNT  UP  TO  THE TOTAL COST OF TUITION EXPENDED BY THE THE STUDENT AS
 DETERMINED USING A REFUND FORMULA TO BE PROMULGATED BY THE COMMISSIONER.
   (IV) FOR A STUDENT WHO HAS BEEN  ENROLLED  IN  A  PROPRIETARY  DEGREE-
 GRANTING  COLLEGE  THAT HAS CLOSED OR CEASED OPERATION, THE REFUND SHALL
 BE PAID IN AN AMOUNT UP TO THE TOTAL  COST  OF  TUITION  EXPENDED  BY  A
 STUDENT  FOR THE PROGRAM THE STUDENT WAS ENROLLED IN AT COLLEGE CLOSURE,
 HOWEVER, ANY DISCHARGE OF STUDENT LOANS  AS  PRESCRIBED  UNDER  BORROWER
 DEFENSE  TO REPAYMENT CLAIMS WITH THE UNITED STATES DEPARTMENT OF EDUCA-
 TION THAT THE STUDENT HAS SUCCESSFULLY RECEIVED SHALL BE  DEDUCTED  FROM
 ANY REFUND CALCULATION UNDER THIS SUBDIVISION.
   (V)  A  STUDENT WHO IS OFFERED A TEACHOUT PLAN APPROVED BY AN INSTITU-
 TIONAL ACCREDITING AGENCY FOR THE  PROGRAM  IN  WHICH  THE  STUDENT  WAS
 ENROLLED AT THE TIME THE COLLEGE CLOSED OR CEASED OPERATION MAY ELECT TO
 CONTINUE  INSTRUCTION  PURSUANT  TO  THE TEACHOUT PLAN OR MAY DECLINE TO
 CONTINUE INSTRUCTION AND MAY INSTEAD APPLY FOR A REFUND IN AN AMOUNT  UP
 TO THE TOTAL COST OF TUITION EXPENDED BY THE STUDENT UNDER THIS SECTION.
 THE  OPTION  TO  APPLY FOR A REFUND SHALL EXTEND TO THE END OF THE FIRST
 WEEK OF INSTRUCTION AT THE TEACHOUT COLLEGE.
   (VI) A STUDENT WHO  WAS  ENROLLED  IN  A  PROPRIETARY  DEGREE-GRANTING
 COLLEGE  AT  THE  TIME  THE  COLLEGE CLOSES OR CEASES OPERATION SHALL BE
 ENTITLED TO A REFUND OF THE FULL AMOUNT ANY PREPAID TUITION OR  EXPENSES
 THE STUDENT EXPENDED. IN ADDITION, COMMENCING SEPTEMBER FIRST, TWO THOU-
 SAND  TWENTY,  A  STUDENT WHO DROPS OUT OF A COLLEGE, WHERE SUCH COLLEGE
 CLOSES WITHIN THIRTY DAYS OF  THE  STUDENT'S  WITHDRAWAL  AND  PRIOR  TO
 COMPLETION  OF  SUCH STUDENT'S PROGRAM, SHALL BE ENTITLED TO A REFUND IN
 AN AMOUNT UP TO THE TOTAL COST OF TUITION EXPENDED BY THE STUDENT.
   (VII) NOTWITHSTANDING ALL NOTICE PROCEDURES DESCRIBED IN THIS SUBDIVI-
 SION, IN THE EVENT OF A PROPRIETARY DEGREE-GRANTING COLLEGE CLOSING, THE
 COMMISSIONER ON HIS OR HER OWN INITIATIVE MAY TAKE APPROPRIATE ACTION IN
 ACCORDANCE WITH THIS SECTION TO PROCESS REFUND CLAIMS ON BEHALF  OF  ALL
 OF THE STUDENTS OF THE CLOSED COLLEGE.
   (C)  FOR  THE  PURPOSES  OF  THIS  SECTION A GOOD CAUSE SHOWING THAT A
 VIOLATION HAS OCCURRED SHALL INCLUDE ANY OF THE FOLLOWING:
   (I) FRAUDULENT STATEMENTS OR REPRESENTATIONS TO  THE  DEPARTMENT,  THE
 PUBLIC OR TO THE STUDENT IN CONNECTION WITH ANY PROGRAM THAT THE STUDENT
 WAS  ENROLLED  IN WHILE MATRICULATING AT THE PROPRIETARY DEGREE-GRANTING
 COLLEGE;
   (II) VIOLATION OF ANY PROVISIONS OF THIS ARTICLE OR REGULATION OF  THE
 COMMISSIONER  THAT  OCCURRED  WITHIN  A  PROGRAM  THAT  THE  STUDENT WAS

 S. 5562--A                          5

 ENROLLED IN  WHILE  MATRICULATING  AT  THE  PROPRIETARY  DEGREE-GRANTING
 COLLEGE;
   (III)  CONVICTION  OR  A  PLEA OF NO CONTEST ON THE PART OF ANY OWNER,
 OPERATOR, OR MEMBER OF THE PROPRIETARY DEGREE-GRANTING  COLLEGE'S  BOARD
 OF TRUSTEES, IF SUCH CONVICTION NEGATIVELY IMPACTS THE STUDENT'S PROGRAM
 OF STUDY:
   (1) TO ANY OF THE FOLLOWING FELONIES DEFINED IN THE PENAL LAW: BRIBERY
 INVOLVING  PUBLIC  SERVANTS;  COMMERCIAL  BRIBERY; PERJURY IN THE SECOND
 DEGREE; REWARDING OFFICIAL MISCONDUCT; LARCENY, IN CONNECTION  WITH  THE
 PROVISION  OF  SERVICES  OR  INVOLVING  THE THEFT OF GOVERNMENTAL FUNDS;
 OFFERING A FALSE INSTRUMENT FOR  FILING,  FALSIFYING  BUSINESS  RECORDS;
 TAMPERING  WITH  PUBLIC  RECORDS;  CRIMINAL USURY; SCHEME TO DEFRAUD; OR
 DEFRAUDING THE GOVERNMENT; OR
   (2) IN ANY OTHER JURISDICTION FOR AN OFFENSE  WHICH  IS  SUBSTANTIALLY
 SIMILAR  TO ANY OF THE FELONIES SET FORTH IN CLAUSE ONE OF THIS SUBPARA-
 GRAPH AND FOR WHICH A SENTENCE TO A TERM OF IMPRISONMENT  IN  EXCESS  OF
 ONE  YEAR  WAS  AUTHORIZED AND IS AUTHORIZED IN THIS STATE REGARDLESS OF
 WHETHER SUCH SENTENCE WAS IMPOSED; OR
   (IV) INCOMPETENCE OF ANY OWNER OR OPERATOR TO OPERATE A  COLLEGE  THAT
 NEGATIVELY  IMPACTED  ANY PROGRAM THAT THE STUDENT WAS ENROLLED IN WHILE
 MATRICULATING AT THE COLLEGE.
   3.  MANAGEMENT  OF  THE  PROPRIETARY  COLLEGE  TUITION   REIMBURSEMENT
 ACCOUNT.  (A) AS USED IN THIS SUBDIVISION, NET BALANCE IS DEFINED AS THE
 ACTUAL  CASH  BALANCE  OF  THE  ACCOUNT AS DETERMINED BY THE STATE COMP-
 TROLLER ON NOVEMBER THIRTIETH,  TWO  THOUSAND  TWENTY  AND  EVERY  THREE
 MONTHS  THEREAFTER.  FOR THE PURPOSE OF CALCULATING THE NET BALANCE, THE
 STATE COMPTROLLER SHALL NOT TAKE INTO  CONSIDERATION  ANY  REFUNDS  MADE
 FROM  THE  ACCOUNT  PURSUANT  TO  THIS  SECTION FOR THE YEAR IMMEDIATELY
 PRECEDING THE DATE ON WHICH THE CALCULATION IS MADE.
   (B) (I) IN THE EVENT THAT THE ACCOUNT HAS ACCUMULATED A NET BALANCE IN
 EXCESS OF THREE  MILLION  DOLLARS,  THE  COMMISSIONER  SHALL,  WITH  THE
 APPROVAL  OF  THE  DIRECTOR OF THE BUDGET, WAIVE AN AMOUNT NOT TO EXCEED
 THE AMOUNT DUE FOR THE  NEXT  QUARTERLY  ASSESSMENT  FOR  A  PROPRIETARY
 DEGREE-GRANTING  COLLEGE  THAT  HAS  PAID  SIXTEEN  QUARTERS  OR MORE OF
 ASSESSMENTS PURSUANT TO THIS SECTION. IN SUCH EVENT, PAYMENT  OF  FUTURE
 QUARTERLY  ASSESSMENTS  SHALL  BE SUSPENDED FOR COLLEGES WHICH HAVE PAID
 SIXTEEN QUARTERS OR MORE OF ASSESSMENTS UNTIL THE  NET  BALANCE  OF  THE
 ACCOUNT FALLS BELOW TWO MILLION THREE HUNDRED THOUSAND DOLLARS.
   (II)  IN  THE  EVENT  THE  NET  BALANCE OF THE ACCOUNT FALLS BELOW TWO
 MILLION THREE HUNDRED THOUSAND DOLLARS, IF THE QUARTERLY ASSESSMENT  HAS
 BEEN  SUSPENDED FOR COLLEGES WHICH HAVE PAID SIXTEEN QUARTERS OR MORE OF
 ASSESSMENTS PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH, IT SHALL  BE
 REINSTATED FOR THE NEXT QUARTERLY ASSESSMENT AND ALL SUBSEQUENT QUARTER-
 LY ASSESSMENTS UNTIL THE ACCOUNT HAS ACCUMULATED A NET BALANCE IN EXCESS
 OF THREE MILLION DOLLARS.
   (C)  THE  COMMISSIONER  MAY  ANNUALLY  APPORTION  FROM THE PROPRIETARY
 COLLEGE TUITION REIMBURSEMENT ACCOUNT AN AMOUNT UP TO TWO HUNDRED  THOU-
 SAND  DOLLARS FOR THE PURPOSE OF SECURING, SCANNING AND OTHERWISE MAKING
 STUDENT TRANSCRIPTS FROM  CLOSED  COLLEGES  AVAILABLE  TO  STUDENTS  WHO
 ATTENDED  SUCH  PROPRIETARY DEGREE-GRANTING COLLEGES. PROVIDED, HOWEVER,
 THAT IN NO CASE SHALL SUCH APPORTIONMENT CAUSE THE ACCOUNT TO FALL BELOW
 A BALANCE OF TWO MILLION DOLLARS.
   (D) THE STATE COMPTROLLER SHALL AUDIT  OR  CAUSE  TO  BE  AUDITED  THE
 PROPRIETARY  COLLEGE  TUITION REIMBURSEMENT ACCOUNT ONCE EVERY TWO YEARS
 AND PRODUCE  AN  AUDITED  FINANCIAL  STATEMENT  ACCORDING  TO  GENERALLY
 ACCEPTED ACCOUNTING PRINCIPLES.

 S. 5562--A                          6
 
   (E)  WITHIN  THE FIRST YEAR THAT A PROPRIETARY DEGREE-GRANTING COLLEGE
 BEGINS OPERATION AS A FULLY ACCREDITED DEGREE-GRANTING INSTITUTION,  THE
 COMMISSIONER  SHALL  ASSESS  SUCH COLLEGE AN AMOUNT TO BE DEPOSITED INTO
 THE ACCOUNT IN AN AMOUNT TO  BE  DETERMINED  BY  THE  COMMISSIONER.  THE
 AMOUNT  DETERMINED  BY  THE  COMMISSIONER SHALL NOT EXCEED THE AMOUNT OF
 FIVE PAYMENTS OF THE MAXIMUM ASSESSED FEE COLLECTED  BY  THE  DEPARTMENT
 UNDER THIS SECTION.
   4. PROPRIETARY COLLEGE TUITION REIMBURSEMENT ACCOUNT STUDENT COMPLAINT
 VERIFICATION.  (A)  ANY  CURRENT  OR  FORMER  STUDENT  OF  A PROPRIETARY
 DEGREE-GRANTING COLLEGE WHO BELIEVES HE OR SHE HAS BEEN AGGRIEVED  BY  A
 VIOLATION  OF  THIS  SECTION  SHALL  HAVE  THE  RIGHT  TO FILE A WRITTEN
 COMPLAINT WITHIN:
   (I) SIX YEARS OF THE ALLEGED VIOLATION; OR
   (II) ONE YEAR AFTER RECEIVING NOTIFICATION FROM THE  HIGHER  EDUCATION
 SERVICES  CORPORATION OR ANY OTHER GUARANTEE AGENCY THAT THE STUDENT HAS
 DEFAULTED ON A STUDENT LOAN PAYMENT AS LONG AS THAT REMAINS  WITHIN  SIX
 YEARS  OF  COMPLETED  MATRICULATION  FROM THEIR PROGRAM OR THE STUDENT'S
 WITHDRAWAL  FROM  THEIR  PROGRAM  AT  THE  PROPRIETARY   DEGREE-GRANTING
 COLLEGE.
   (B) THE COMMISSIONER SHALL MAINTAIN A WRITTEN RECORD OF EACH COMPLAINT
 THAT IS MADE. THE COMMISSIONER SHALL ALSO SEND TO THE COMPLAINANT A FORM
 ACKNOWLEDGING THE COMPLAINT AND REQUESTING FURTHER INFORMATION IF NECES-
 SARY  AND  SHALL ADVISE THE DIRECTOR OF THE COLLEGE THAT A COMPLAINT HAS
 BEEN MADE AND, WHERE APPROPRIATE, THE NATURE OF THE COMPLAINT.
   5.  PROPRIETARY  COLLEGE  COMPLAINT  INVESTIGATION  PROCESS.  (A)  THE
 COMMISSIONER  SHALL  WITHIN  TWENTY  DAYS  OF  RECEIPT  OF  SUCH WRITTEN
 COMPLAINT COMMENCE AN INVESTIGATION OF THE ALLEGED VIOLATION  AND  SHALL
 WITHIN  NINETY  DAYS  OF  THE RECEIPT OF SUCH WRITTEN COMPLAINT, ISSUE A
 WRITTEN FINDING. THE COMMISSIONER SHALL FURNISH  SUCH  FINDINGS  TO  THE
 PERSON WHO FILED THE COMPLAINT AND TO THE CHIEF OPERATING OFFICER OF THE
 COLLEGE CITED IN THE COMPLAINT. IF THE COMMISSIONER FINDS THAT THERE HAS
 BEEN  A VIOLATION OF THIS SECTION, THE COMMISSIONER SHALL TAKE APPROPRI-
 ATE ACTION, INCLUDING BUT NOT LIMITED TO REFERRING CASES  OF  MISCONDUCT
 TO  THE  STATE  ATTORNEY  GENERAL,  BEGINNING A REVIEW OF THE PROGRAM IN
 VIOLATION, AND PROVIDING NOTICE TO STUDENTS OF THE  INSTITUTION  OF  THE
 VIOLATION BY A PUBLICLY ACCESSIBLE WEBSITE.
   (B)  IF THE COMMISSIONER FINDS THAT THERE HAS BEEN A VIOLATION OF THIS
 SECTION, THE COMMISSIONER SHALL ALSO PLACE SUCH FINDING  ON  A  PUBLICLY
 ACCESSIBLE  WEBSITE DISCLOSING THE INSTITUTION THAT WAS IN VIOLATION AND
 THE SUBSTANCE OF THE COMPLAINT WITHIN THIRTY DAYS OF THE  COMMISSIONER'S
 FINDING.
   (C)  THE  DEPARTMENT  SHALL  ANNUALLY  BE  ALLOCATED UP TO ONE MILLION
 DOLLARS FROM THE STATE GENERAL  FUND  TO  CARRY  OUT  INVESTIGATIONS  OF
 STUDENT COMPLAINTS PURSUANT TO THIS SUBDIVISION.
   (D) ANY ALLOCATION PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION SHALL
 BE REDUCED BY THE AMOUNT OF FUNDING APPORTIONED TO THE DEPARTMENT PURSU-
 ANT TO PARAGRAPH (D) OF SUBDIVISION ONE OF THIS SECTION.
   §  3. The state finance law is amended by adding a new section 97-j to
 read as follows:
   § 97-J. PROPRIETARY COLLEGE TUITION REIMBURSEMENT ACCOUNT. 1.    THERE
 IS  HEREBY  ESTABLISHED  IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE
 COMMISSIONER OF TAXATION AND FINANCE A FUND TO BE KNOWN AS THE "PROPRIE-
 TARY COLLEGE TUITION REIMBURSEMENT ACCOUNT".
   2. THE PROPRIETARY COLLEGE TUITION REIMBURSEMENT  ACCOUNT  ESTABLISHED
 IN  THIS  SECTION  SHALL  BE  FOR  REIMBURSEMENT  OF  TUITION TO CERTAIN

 S. 5562--A                          7
 
 STUDENTS OF PROPRIETARY DEGREE-GRANTING COLLEGES  PURSUANT  TO  SECTIONS
 TWO HUNDRED TWELVE-B AND TWO HUNDRED TWELVE-D OF THE EDUCATION LAW.
   3.  (A)  NOTWITHSTANDING  ANY  OTHER  LAW,  RULE, OR REGULATION TO THE
 CONTRARY, THE STATE COMPTROLLER IS HEREBY  AUTHORIZED  AND  DIRECTED  TO
 RECEIVE  FOR  DEPOSIT  TO  THE CREDIT OF THE ACCOUNT ESTABLISHED IN THIS
 SECTION MONEYS COLLECTED PURSUANT TO SECTIONS TWO HUNDRED  TWELVE-B  AND
 TWO HUNDRED TWELVE-D OF THE EDUCATION LAW INCLUDING, BUT NOT LIMITED TO,
 ALL  FEES  AND  ASSESSMENTS  RELATING  TO THE SUPERVISION OF PROPRIETARY
 DEGREE-GRANTING COLLEGES RECEIVED AFTER SEPTEMBER  FIRST,  TWO  THOUSAND
 NINETEEN  PURSUANT  TO  SUCH  SECTIONS  AND ALL OTHER MONEYS CREDITED OR
 TRANSFERRED TO SUCH ACCOUNTS FROM ANY OTHER FUND OR SOURCE  PURSUANT  TO
 LAW.
   (B) THE COMPTROLLER IS HEREBY AUTHORIZED AND DIRECTED TO PERMIT INTER-
 EST  EARNINGS  ON  ANY  ACCOUNT BALANCES ON ACCOUNTS ESTABLISHED IN THIS
 SECTION TO ACCRUE TO THE BENEFIT OF EACH OF THE ACCOUNTS.
   4. MONIES OF THE  ACCOUNTS  ESTABLISHED  IN  THIS  SECTION,  FOLLOWING
 APPROPRIATION  BY  THE  LEGISLATURE, SHALL BE AVAILABLE TO THE EDUCATION
 DEPARTMENT AND MAY BE EXPENDED PURSUANT TO SECTIONS TWO HUNDRED TWELVE-B
 AND TWO HUNDRED TWELVE-D OF THE EDUCATION LAW. MONIES SHALL BE PAID  OUT
 OF SUCH ACCOUNTS ON THE AUDIT AND WARRANT OF THE STATE COMPTROLLER.
   § 4. Severability clause. If any clause, sentence, paragraph, subdivi-
 sion,  section  or  part  of  this act shall be adjudged by any court of
 competent jurisdiction to be invalid, such judgment  shall  not  affect,
 impair,  or  invalidate  the remainder thereof, but shall be confined in
 its operation to the clause, sentence, paragraph,  subdivision,  section
 or part thereof directly involved in the controversy in which such judg-
 ment shall have been rendered. It is hereby declared to be the intent of
 the  legislature  that  this  act  would  have been enacted even if such
 invalid provisions had not been included herein.
   § 5. This act shall take effect one year after it shall have become  a
 law.    Effective  immediately, the addition, amendment and/or repeal of
 any rule or regulation necessary for the implementation of this  act  on
 its  effective date are authorized to be made and completed on or before
 such effective date.