NY State Senate Bill 2019-S5600

Senate Bill S5600

2019-2020 Legislative Session

Relates to directing the commissioner of education to develop certain information regarding for-profit institutions of higher education for the benefit of veteran students

download bill text pdf

Archive: Last Bill Status - In Senate Committee Higher Education Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 08, 2020	referred to higher education
May 08, 2019	committee discharged and committed to higher education referred to education

2019-S5600 (ACTIVE) - Details

See Assembly Version of this Bill:: A7757
Current Committee:: Senate Higher Education
Law Section:: Education Law
Laws Affected:: Amd §305, Ed L; amd §353, Exec L
Versions Introduced in 2021-2022 Legislative Session:: S143, A3294

2019-S5600 (ACTIVE) - Summary

Directs the commissioner of education to establish a database of information on for-profit institutions of higher education and a system for grading such institutions for the benefit of veterans seeking post secondary education, and requires for-profit institutions of higher education to prominently display on its website the letter grade most recently assigned.

2019-S5600 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S5600

SPONSOR: THOMAS
 
TITLE OF BILL:  An act to amend the education law and the executive
law, in relation to directing the commissioner of education to develop
certain information regarding for-profit institutions of higher educa-
tion for the benefit of veterans

 
PURPOSE:

To develop certain information regarding for-profit institutions of
higher education for the benefit of veterans.

 
SUMMARY OF PROVISIONS:

Section one amends section 305 of the education law by adding a new
subdivision 60 by allowing the commissioner authorization to establish
and maintain a database regarding the total cost of the higher education
cost; the veteran graduation rate, the veteran graduate placement rate;
total placement rate for veterans who receive a degree; community
service programs provided to students to do volunteer work; support

services available to veterans; median time in which a veteran student
completes a higher education program; median cumulative student debt
amount; average amount borrowed; cohort default rate; post school earn-
ings for veterans and outstanding student debt of higher education
veteran graduates 10 years out.

Section two amends section 353 of the executive law by adding a new
subdivision 14-b by making available to veterans seeking post secondary
information, the information developed by the commissioner.

Section three provides an effective date.

 
JUSTIFICATION:

Based on the VA's GI Bill data, in New York, for-profit schools lead in
post-9/11 GI Bill enrollments. One of those schools were sued by the FTC
and NY AG for deceptive advertising that misrepresented job outcomes for
students, while another was sued by DCA for consumer fraud.

When it comes to recruitment practices of for-profit institutions, in
addition to general misrepresentations, some mislead veterans by falsely
claiming that their benefits cover the cost of tuition. VES has laid out
how a loophole in federal 90/10 policy prompts aggressive recruitment of
veterans. These examples suggest that the incentive to recruit veterans
is so strong that schools continue to find ways to circumvent informa-
tion & disclosure policies.

This bill will provide accurate and objective information for veterans
applying to for-profit schools in NY.

 
LEGISLATIVE HISTORY:

New legislation

 
FISCAL IMPLICATIONS:

None to the state.

 
EFFECTIVE DATE:
This act shall take effect on the first of January next succeeding the
date on which 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.

2019-S5600 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5600
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                                May 8, 2019
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Education
 
 AN ACT to amend the education law and the executive law, in relation  to
   directing the commissioner of education to develop certain information
   regarding  for-profit institutions of higher education for the benefit
   of veterans

   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 305 of the education law is amended by adding a new
 subdivision 60 to read as follows:
   60.  A.  THE  COMMISSIONER IS AUTHORIZED AND DIRECTED TO ESTABLISH AND
 MAINTAIN A DATABASE OF THE FOLLOWING INFORMATION RELATING  TO  VETERANS,
 FOR EVERY FOR-PROFIT INSTITUTION OF HIGHER EDUCATION:
   (I) TOTAL FOR-PROFIT INSTITUTION OF HIGHER EDUCATION PROGRAM COST;
   (II) VETERAN GRADUATION RATE;
   (III) VETERAN GRADUATE PLACEMENT RATE;
   (IV) TOTAL PLACEMENT RATE FOR VETERANS WHO RECEIVE A DEGREE;
   (V)  COMMUNITY  SERVICE  PROGRAMS PROVIDED TO STUDENTS TO DO VOLUNTEER
 WORK FOR  EITHER  A  CORPORATION,  ASSOCIATION,  ORGANIZATION  OR  TRUST
 DESCRIBED  IN  SECTION 501 (C) (3) OF THE UNITED STATES INTERNAL REVENUE
 CODE OR A GOVERNMENT AGENCY;
   (VI) SUPPORT SERVICES AVAILABLE TO VETERANS INCLUDING CAREER AND GUID-
 ANCE COUNSELING AND MENTAL HEALTH SERVICES;
   (VII) MEDIAN TIME IN WHICH A VETERAN STUDENT  COMPLETES  A  FOR-PROFIT
 INSTITUTION OF HIGHER EDUCATION PROGRAM;
   (VIII) MEDIAN CUMULATIVE STUDENT DEBT AMOUNT FOR VETERAN STUDENTS;
   (IX) AVERAGE AMOUNT BORROWED BY VETERAN STUDENTS FROM ALL SOURCES;
   (X) COHORT DEFAULT RATE;
   (XI) POST SCHOOL EARNINGS FOR VETERANS; AND
   (XII)  OUTSTANDING  STUDENT  DEBT  OF FOR-PROFIT INSTITUTION OF HIGHER
 EDUCATION VETERAN GRADUATES TEN YEARS OUT.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD11237-03-9

 S. 5600                             2
 
   B. (I) ANNUALLY ON OR BEFORE JULY FIRST, EACH  FOR-PROFIT  INSTITUTION
 OF  HIGHER  EDUCATION  SHALL  REPORT  TO  THE DEPARTMENT ALL INFORMATION
 REGARDING SUBPARAGRAPHS (I) THROUGH (VI) OF PARAGRAPH A OF THIS SUBDIVI-
 SION NECESSARY FOR THE COMMISSIONER TO ESTABLISH AND MAINTAIN THE  DATA-
 BASE PURSUANT TO PARAGRAPH A OF THIS SUBDIVISION. THE COMMISSIONER SHALL
 PROMULGATE  RULES AND REGULATIONS REGARDING THE FORM AND CONTENT OF SUCH
 REPORT.
   (II) THE COMMISSIONER SHALL UTILIZE  ALL  INFORMATION  REPORTED  BY  A
 FOR-PROFIT  INSTITUTION  OF  HIGHER  EDUCATION  AND INFORMATION PUBLICLY
 AVAILABLE FROM THE FEDERAL GOVERNMENT AND ANY  OTHER  SOURCE  AS  DEEMED
 NECESSARY  BY  SUCH  COMMISSIONER  TO  CARRY  OUT THE PROVISIONS OF THIS
 SUBDIVISION.
   C. (I) THE COMMISSIONER  SHALL  DEVISE  A  METHOD  FOR  ASSIGNING  AND
 PUBLISHING  A  LETTER  GRADE  TO  EVERY FOR-PROFIT INSTITUTION OF HIGHER
 EDUCATION BASED UPON THE INFORMATION CONTAINED IN  THE  DATABASE  ESTAB-
 LISHED  PURSUANT TO THIS SUBDIVISION.  SUCH GRADE SHALL BE UPDATED ANNU-
 ALLY.
   (II) EACH FOR-PROFIT INSTITUTION OF HIGHER EDUCATION SHALL PROMINENTLY
 DISPLAY ON ITS WEBSITE THE LETTER GRADE MOST RECENTLY ASSIGNED  TO  SUCH
 INSTITUTION PURSUANT TO SUBPARAGRAPH (I) OF THIS PARAGRAPH.
   D.  THE  COMMISSIONER  SHALL  TRANSMIT  ALL  THE INFORMATION DEVELOPED
 PURSUANT TO THIS SUBDIVISION TO THE STATE DIRECTOR OF  THE  DIVISION  OF
 VETERANS' SERVICES.
   E.  AS  USED  IN  THIS SUBDIVISION, THE FOLLOWING TERMS SHALL HAVE THE
 FOLLOWING MEANINGS:
   (I) "FOR-PROFIT INSTITUTION OF HIGHER EDUCATION" MEANS A SCHOOL THAT:
   (1) PROVIDES A PROGRAM  LEADING  TO  AN  ASSOCIATES  OR  BACCALAUREATE
 DEGREE;
   (2)  IS  LEGALLY  AUTHORIZED IN NEW YORK STATE TO PROVIDE A PROGRAM OF
 EDUCATION BEYOND SECONDARY EDUCATION; AND
   (3) IS NEITHER A PUBLIC OR NON-PROFIT INSTITUTION.
   (II) "GRADUATION  RATE  OF  VETERANS"  MEANS  THE  NUMBER  OF  VETERAN
 STUDENTS  AT  A  FOR-PROFIT INSTITUTION OF HIGHER EDUCATION WHO RECEIVED
 CERTIFICATES, DIPLOMAS, OR DEGREES IN THE PROGRAM DURING THE LATEST  TWO
 CALENDAR  YEARS,  DIVIDED BY THE NUMBER OF VETERAN STUDENTS WHO ENROLLED
 IN THE PROGRAM DURING THE LATEST TWO CALENDAR YEARS. THE GRADUATION RATE
 OF VETERANS SHALL BE DETERMINED WITHIN ONE HUNDRED EIGHTY DAYS FROM  THE
 END  OF  EACH  CALENDAR  YEAR  AND  SHALL  BE  CALCULATED SEPARATELY FOR
 STUDENTS ADMITTED AS FRESHMEN AND STUDENTS WHO TRANSFER IN.
   (III) "GRADUATE PLACEMENT RATE OF VETERANS" MEANS THE NUMBER OF VETER-
 AN STUDENTS OBTAINING FULL-TIME (AT LEAST THIRTY-TWO  HOURS  PER  WEEK),
 NON-TEMPORARY  EMPLOYMENT  IN  THE  FIELD OF STUDY DURING THE LATEST TWO
 CALENDAR YEARS FOR WHICH THE FOR-PROFIT INSTITUTION OF HIGHER  EDUCATION
 HAS OBTAINED VERIFICATION, DIVIDED BY THE NUMBER OF ALL VETERAN STUDENTS
 GRADUATING  FROM  THE  PROGRAM DURING THE LATEST TWO CALENDAR YEARS. THE
 GRADUATE PLACEMENT RATE SHALL BE DETERMINED WITHIN  ONE  HUNDRED  EIGHTY
 DAYS  FROM  THE  END OF EACH CALENDAR YEAR AND SHALL BE CALCULATED SEPA-
 RATELY FOR VETERAN STUDENTS ADMITTED AS FRESHMEN AND STUDENTS WHO TRANS-
 FER IN.
   (IV) "TOTAL PLACEMENT RATE OF VETERANS" MEANS THE PRODUCT OF THE GRAD-
 UATE PLACEMENT RATE OF VETERANS AND THE  GRADUATION  RATE  OF  VETERANS.
 THE  TOTAL  PLACEMENT RATE SHALL BE DETERMINED WITHIN ONE HUNDRED EIGHTY
 DAYS FROM THE END OF EACH CALENDAR YEAR.
   (V) "MEDIAN CUMULATIVE DEBT AMOUNT" MEANS THE MEDIAN AMOUNT OF CUMULA-
 TIVE DEBT, INCLUDING PRIVATE, INSTITUTIONAL, AND FEDERAL, INCURRED BY  A

 S. 5600                             3
 
 VETERAN  STUDENT  WHO ATTENDED A FOR-PROFIT INSTITUTION OF HIGHER EDUCA-
 TION WHETHER OR NOT THEY COMPLETED A PROGRAM AT SUCH INSTITUTION.
   (VI)  "AVERAGE  AMOUNT  BORROWED" MEANS THE AVERAGE AMOUNT OF PRIVATE,
 INSTITUTIONAL, AND FEDERAL, LOANS A VETERAN STUDENT WHO ATTENDED A  FOR-
 PROFIT INSTITUTION OF HIGHER EDUCATION BORROWS TO ENROLL IN A PROGRAM AT
 SUCH INSTITUTION.
   (VII)  "POST  SCHOOL  EARNINGS"  MEANS  THE SUM OF ANY WAGES, DEFERRED
 COMPENSATION AND SELF-EMPLOYMENT EARNINGS.
   (VIII) "COHORT DEFAULT RATE" MEANS  THE  PERCENTAGE  OF  A  FOR-PROFIT
 INSTITUTION  OF HIGHER EDUCATION'S VETERAN BORROWERS WHO ENTER REPAYMENT
 ON ANY PRIVATE, INSTITUTIONAL AND FEDERAL LOANS DURING THE  FISCAL  YEAR
 AND  DEFAULT WITHIN THE COHORT DEFAULT PERIOD. COHORT DEFAULT RATE SHALL
 BE CALCULATED FOR THE PERIODS OF THREE YEARS, FIVE YEARS AND TEN YEARS.
   (IX) "VETERAN" SHALL MEAN A PERSON WHO SERVED IN AND WHO HAS  RECEIVED
 AN  HONORABLE  OR  GENERAL DISCHARGE FROM, THE UNITED STATES ARMY, NAVY,
 AIR FORCE, MARINES, COAST GUARD, AND/OR  RESERVES  THEREOF,  AND/OR  THE
 ARMY  NATIONAL GUARD, AIR NATIONAL GUARD, NEW YORK GUARD AND/OR NEW YORK
 NAVAL MILITIA.
   § 2. Section 353 of the executive law  is  amended  by  adding  a  new
 subdivision 14-b to read as follows:
   14-B.  TO MAKE AVAILABLE TO VETERANS SEEKING POST SECONDARY EDUCATION,
 THE INFORMATION DEVELOPED BY THE COMMISSIONER OF EDUCATION  PURSUANT  TO
 SUBDIVISION  SIXTY  OF  SECTION THREE HUNDRED FIVE OF THE EDUCATION LAW.
 THE DIVISION SHALL POST  SUCH  INFORMATION  ON  ITS  WEBSITE  AND  SHALL
 PROVIDE  ASSISTANCE  TO VETERANS IN EVALUATING EDUCATIONAL OPPORTUNITIES
 AT FOR-PROFIT INSTITUTIONS OF HIGHER EDUCATION BASED UPON  THE  INFORMA-
 TION AND GRADING SYSTEM DEVELOPED BY THE COMMISSIONER OF EDUCATION.
   §  3. This act shall take effect on the first of January next succeed-
 ing the date on which it shall have become a law. Effective immediately,
 the addition, amendment and/or repeal of any rule or  regulation  neces-
 sary  for  the  implementation  of  this  act  on its effective date are
 authorized to be made and completed on or before such effective date.

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