NY State Senate Bill 2021-S143

Senate Bill S143

2021-2022 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

Please enter your contact information

First Name

Last Name

Email Address

A valid email address is required.

Home address is used to determine the senate district in which you reside. Your support or opposition to this bill is then shared immediately with the senator who represents you.

Optional services from the NY State Senate:

Create an account. An account allows you to officially support or oppose key legislation, sign petitions with a single click, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.

Include a custom message for your Senator? (Optional)

Enter a message to your senator. Many New Yorkers use this to share the reasoning behind their support or opposition to the bill. Others might share a personal anecdote about how the bill would affect them or people they care about.

Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jan 05, 2022	referred to higher education
Jan 06, 2021	referred to higher education

2021-S143 (ACTIVE) - Details

See Assembly Version of this Bill:: A3294
Current Committee:: Senate Higher Education
Law Section:: Education Law
Laws Affected:: Amd §305, Ed L; amd §353, Exec L
Versions Introduced in 2019-2020 Legislative Session:: S5600, A7757

2021-S143 (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; requires for-profit institutions of higher education to prominently display on its website the letter grade most recently assigned.

2021-S143 (ACTIVE) - Sponsor Memo

                                
 
BILL NUMBER: S143

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 education 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 1 amends section 305 of the education law by adding a new subdi-
vision 60:

Subdivision 60, paragraph (a) authorizes and directs the commissioner to

establish and maintain a database on veterans attending for-profit
institutions of higher education. The information in the database will
include the total cost of education; veteran graduation rate; 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 completes a higher education program; median cumulative student
debt amount; average amount borrowed; cohort default rate; post-school
earnings for veterans; and outstanding student debt of veteran graduates
ten years out.

Subdivision 60, paragraph (c) states that the commissioner will annually
give a letter grade to every for-profit school based on the information
contained in the database. The for-profit school will have to prominent-
ly display the most recently assigned letter grade on its website.

Subdivision 60, paragraph (e) defines "for-profit institution of higher
education," "graduation rate of veterans", "graduate placement rate of
veterans", "total placement rate of veterans", "median cumulative debt
amount", "average amount borrowed", "post school earnings", "cohort
default rate", and "veteran".

Section 2 amends section 353 of the executive law by adding a new subdi-
vision 14-b. Under this subdivision, the New York State Education
Department will post information developed by the commissioner on its
website to assist veterans in evaluating educational opportunities at
for-profit institutions of higher education.

Section 3 provides an effective date.

 
JUSTIFICATION:

Based on the VA's GI Bill data, for-profit institutions lead in
post-9/11 GI Bill enrollments in New York. Even so, the Federal Trade
Commission and the New York State Attorney General has sued a for-profit
institution for deceptive advertising that misrepresented job outcomes
for students; and the DCA sued another one 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.  Veterans Evalu-
ation Services has laid out how a loophole in the 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 information & disclosure policies.

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

 
LEGISLATIVE HISTORY:

2020: 5.5600 (Thomas) / A.7757 (Epstein) - Referred to Higher Education.
2019: S.5600 (Thomas) / A.7757 (Epstein) - Education Committee
Discharged and Committed to Higher Education.

 
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.

2021-S143 (ACTIVE) - Bill Text download pdf

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                    143
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                                (PREFILED)
 
                              January 6, 2021
                                ___________
 
 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 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 59 to read as follows:
   59.  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

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

                                                            LBD02050-01-1

 S. 143                              2
 
   (XII)  OUTSTANDING  STUDENT  DEBT  OF FOR-PROFIT INSTITUTION OF HIGHER
 EDUCATION VETERAN GRADUATES TEN YEARS OUT.
   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.

 S. 143                              3
 
   (V) "MEDIAN CUMULATIVE DEBT AMOUNT" MEANS THE MEDIAN AMOUNT OF CUMULA-
 TIVE  DEBT, INCLUDING PRIVATE, INSTITUTIONAL, AND FEDERAL, INCURRED BY A
 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  FIFTY-NINE  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.

Comments

Open Legislation is a forum for New York State legislation. All comments are subject to review and community moderation is encouraged.

Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity, hate or toxic speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Attempts to intimidate and silence contributors or deliberately deceive the public, including excessive or extraneous posting/posts, or coordinated activity, are prohibited and may result in the temporary or permanent banning of the user. Comment moderation is generally performed Monday through Friday. By contributing or voting you agree to the Terms of Participation and verify you are over 13.

Create an account. An account allows you to sign petitions with a single click, officially support or oppose key legislation, and follow issues, committees, and bills that matter to you. When you create an account, you agree to this platform's terms of participation.