Assembly Bill A6938

Signed By Governor
2021-2022 Legislative Session

Relates to prohibited practices relating to student educational debt

download bill text pdf

Sponsored By

Archive: Last Bill Status - Signed by Governor

  • 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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Bill Amendments

2021-A6938 - Details

Law Section:
General Business Law
Laws Affected:
Amd §§601 & 602, Gen Bus L; amd §2, add Art 13-C §640, §669-i, Ed L

2021-A6938 - Summary

Prohibits certain practices regarding collection and enforcement of student debt.

2021-A6938 - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6938
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 14, 2021
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Higher Education
 
 AN ACT to amend the general business law,  in  relation  to  prohibiting
   certain  practices  in  the collection of education debt; and to amend
   the education law, in relation to student debts and extending  college
   access  challenge  grant  funds to ready adults returning to school to
   complete a degree
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Section  601  of the general business law is amended by
 adding a new subdivision 12 to read as follows:
   12. NOTWITHSTANDING SECTION THREE HUNDRED FIFTY-FIVE OF THE  EDUCATION
 LAW  OR 8 NYCRR PART 302, WITHHOLD A STUDENT'S TRANSCRIPT FOR FAILURE TO
 PAY PAST OR PRESENTLY DUE TUITION, CONDITION THE PROVISION  OF  A  TRAN-
 SCRIPT ON THE PAYMENT OF A DEBT, OTHER THAN A FEE CHARGED TO PROVIDE THE
 TRANSCRIPT,  OR  OTHERWISE  USE  TRANSCRIPT  ISSUANCE AS A TOOL FOR DEBT
 COLLECTION.
   § 2. Section 602 of the general business law is amended  by  adding  a
 new subdivision 4 to read as follows:
   4. ANY VIOLATION OF THIS ARTICLE IS ALSO A DECEPTIVE ACT AND PRACTICES
 UNDER SECTION THREE HUNDRED FORTY-NINE OF THIS CHAPTER.
   §  3. Section 2 of the education law is amended by adding a new subdi-
 vision 25 to read as follows:
   25. DEBT. THE TERM "DEBT" MEANS ANY MONEY, OBLIGATION, CLAIM, OR  SUM,
 DUE  OR  OWING,  OR ALLEGED TO BE DUE OR OWING, FROM A STUDENT, BUT DOES
 NOT INCLUDE THE FEE, IF ANY, CHARGED TO  ALL  STUDENTS  FOR  THE  ACTUAL
 COSTS OF PROVIDING THE TRANSCRIPTS.
   § 4. The education law is amended by adding a new article 13-c to read
 as follows:
 
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES

 SECTION 640. STUDENT DEBT; PROHIBITED PRACTICES.

co-Sponsors

2021-A6938A - Details

Law Section:
General Business Law
Laws Affected:
Amd §§601 & 602, Gen Bus L; amd §2, add Art 13-C §640, §669-i, Ed L

2021-A6938A - Summary

Prohibits certain practices regarding collection and enforcement of student debt.

2021-A6938A - Bill Text download pdf 

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6938--A
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 14, 2021
                                ___________
 
 Introduced  by M. of A. EPSTEIN -- read once and referred to the Commit-
   tee on Higher Education -- committee discharged, bill amended, ordered
   reprinted as amended and recommitted to said committee
 
 AN ACT to amend the general business  law  and  the  education  law,  in
   relation  to prohibiting certain practices in the collection of educa-
   tion debt
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.    Section  601  of the general business law is amended by
 adding a new subdivision 12 to read as follows:
   12. NOTWITHSTANDING SECTION THREE HUNDRED FIFTY-FIVE OF THE  EDUCATION
 LAW  OR 8 NYCRR PART 302, WITHHOLD A STUDENT'S TRANSCRIPT FOR FAILURE TO
 PAY PAST OR PRESENTLY DUE TUITION, CONDITION THE PROVISION  OF  A  TRAN-
 SCRIPT ON THE PAYMENT OF A DEBT, OTHER THAN A FEE CHARGED TO PROVIDE THE
 TRANSCRIPT,  OR  OTHERWISE  USE  TRANSCRIPT  ISSUANCE AS A TOOL FOR DEBT
 COLLECTION.
   § 2. Section 602 of the general business law is amended  by  adding  a
 new subdivision 4 to read as follows:
   4. ANY VIOLATION OF THIS ARTICLE IS ALSO A DECEPTIVE ACT AND PRACTICES
 UNDER SECTION THREE HUNDRED FORTY-NINE OF THIS CHAPTER.
   §  3. Section 2 of the education law is amended by adding a new subdi-
 vision 25 to read as follows:
   25. DEBT. THE TERM "DEBT" MEANS ANY MONEY, OBLIGATION, CLAIM, OR  SUM,
 DUE  OR  OWING,  OR ALLEGED TO BE DUE OR OWING, FROM A STUDENT, BUT DOES
 NOT INCLUDE THE FEE, IF ANY, CHARGED TO  ALL  STUDENTS  FOR  THE  ACTUAL
 COSTS OF PROVIDING THE TRANSCRIPTS.
   § 4. The education law is amended by adding a new article 13-C to read
 as follows:
 
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

co-Sponsors

2021-A6938B (ACTIVE) - Details

Law Section:
General Business Law
Laws Affected:
Amd §§601 & 602, Gen Bus L; amd §2, add Art 13-C §640, §669-i, Ed L

2021-A6938B (ACTIVE) - Summary

Prohibits certain practices regarding collection and enforcement of student debt.

2021-A6938B (ACTIVE) - Bill Text download pdf 

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  6938--B
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                              April 14, 2021
                                ___________
 
 Introduced  by  M.  of  A. EPSTEIN, SEAWRIGHT, STECK, BURDICK, DINOWITZ,
   CLARK, MAGNARELLI, GONZALEZ-ROJAS, GOTTFRIED, KELLES, SIMON, ZINERMAN,
   COLTON -- read once and referred to the Committee on Higher  Education
   --  committee  discharged,  bill amended, ordered reprinted as amended
   and recommitted to said committee -- recommitted to the  Committee  on
   Higher Education in accordance with Assembly Rule 3, sec. 2 -- commit-
   tee  discharged, bill amended, ordered reprinted as amended and recom-
   mitted to said committee
 
 AN ACT to amend the education law, in relation  to  prohibiting  certain
   practices in the collection of student debt
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. The education law is amended by adding a new  article  13-C
 to read as follows:
                               ARTICLE 13-C
                    STUDENT DEBT; PROHIBITED PRACTICES
 SECTION 640. STUDENT DEBT; PROHIBITED PRACTICES.
   §  640.  STUDENT  DEBT;  PROHIBITED PRACTICES. 1.   NO DEGREE-GRANTING
 INSTITUTION OR LICENSED PRIVATE CAREER SCHOOL,  AS  DEFINED  BY  SECTION
 FIVE THOUSAND ONE OF THIS CHAPTER, SHALL:
   (A) WITHHOLD A TRANSCRIPT BECAUSE A STUDENT OWES A DEBT TO SUCH INSTI-
 TUTION OR SCHOOL;
   (B)  CONDITION THE PROVISION OF A TRANSCRIPT ON A STUDENT'S PAYMENT OF
 A DEBT TO SUCH INSTITUTION OR SCHOOL; OR
   (C) CHARGE A HIGHER FEE OR PROVIDE LESS FAVORABLE TREATMENT OF A TRAN-
 SCRIPT REQUEST BECAUSE A STUDENT OWES A  DEBT  TO  SUCH  INSTITUTION  OR
 SCHOOL, PROVIDED HOWEVER, THAT AN INSTITUTION OR SCHOOL MAY CHARGE A FEE
 FOR THE ISSUANCE OF A TRANSCRIPT.
   2.  IN  ADDITION  TO  SUCH PENALTIES AS MAY OTHERWISE BE APPLICABLE BY
 LAW, THE SUPERINTENDENT OF FINANCIAL  SERVICES  MAY,  AFTER  NOTICE  AND
 HEARING,  ENJOIN  SUCH  TRANSCRIPT WITHHOLDING PRACTICES AND REQUIRE ANY

  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08218-11-2

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