S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8197
 
                             I N  S E N A T E
 
                             January 12, 2024
                                ___________
 
 Introduced  by  Sen.  THOMAS -- read twice and ordered printed, and when
   printed to be committed to the Committee on Banks
 
 AN ACT to amend the financial services law, in relation  to  creating  a
   private education debt registry
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:

   Section 1. The financial services law is amended by adding a new arti-
 cle 9 to read as follows:
                                 ARTICLE 9
                      PRIVATE EDUCATION DEBT REGISTRY
 SECTION 901. DEFINITIONS.
         902. PRIVATE EDUCATION DEBT REGISTRY.
         903. RULES AND REGULATIONS.
         904. VIOLATIONS.
         905. SEVERABILITY.
   § 901. DEFINITIONS. AS USED IN THIS ARTICLE:
   1. "FISCAL YEAR" MEANS THE TWELVE-MONTH PERIOD THAT THE PRIVATE EDUCA-
 TION CREDITOR USES FOR FINANCIAL REPORTING AND BUDGETING.
   2. "HIGHER EDUCATION" MEANS HIGHER EDUCATION, INCLUDING CAREER  EDUCA-
 TION,  AS  THOSE  TERMS ARE DEFINED IN SECTION TWO OF THE EDUCATION LAW,
 VIA CORRESPONDENCE, ONLINE, OR IN  PERSON,  REGARDLESS  OF  WHETHER  THE
 HIGHER EDUCATION INSTITUTION IS ACCREDITED WITHIN NEW YORK STATE.
   3.  "HIGHER  EDUCATION  EXPENSE" MEANS ANY EXPENSE ARISING FROM HIGHER
 EDUCATION.
   4. "PRIVATE EDUCATION CREDITOR" MEANS ANY PERSON ENGAGED IN THE  BUSI-
 NESS  OF SECURING, MAKING, OR EXTENDING A PRIVATE EDUCATION DEBT, OR ANY
 HOLDER OF A PRIVATE EDUCATION DEBT, INCLUDING PROVIDERS OF HIGHER EDUCA-
 TION TO WHICH A STUDENT EDUCATION DEBT IS OWED. "PRIVATE EDUCATION CRED-
 ITOR" SHALL NOT INCLUDE THE FOLLOWING PERSONS, ONLY TO THE  EXTENT  THAT
 STATE REGULATION IS PREEMPTED BY FEDERAL LAW:
   (A) ANY FEDERALLY CHARTERED BANK, SAVINGS BANK, SAVINGS AND LOAN ASSO-
 CIATION, OR CREDIT UNION;
   (B)  ANY  BANK,  SAVINGS BANK, SAVINGS AND LOAN ASSOCIATION, OR CREDIT
 UNION ORGANIZED UNDER THE LAWS OF THIS OR ANY OTHER STATE;
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD08128-05-4
 S. 8197                             2
 
   (C) ANY WHOLLY OWNED SUBSIDIARY OF A FEDERALLY CHARTERED BANK OR CRED-
 IT UNION; AND
   (D) ANY OPERATING SUBSIDIARY WHERE EACH OWNER OF THE OPERATING SUBSID-
 IARY  IS  WHOLLY  OWNED  BY  THE SAME FEDERALLY CHARTERED BANK OR CREDIT
 UNION.
   5. "PRIVATE EDUCATION DEBT" MEANS AN EXTENSION OF CREDIT  OR  DEBT  OR
 OBLIGATION  OWED  OR  INCURRED  BY A CONSUMER, CONTRACTUAL OR OTHERWISE,
 CONTINGENT OR ABSOLUTE, THAT MEETS ALL OF THE FOLLOWING CRITERIA:
   (A) IS NOT MADE, INSURED, OR GUARANTEED UNDER TITLE IV OF  THE  HIGHER
 EDUCATION ACT OF 1965 (20 U.S.C. S.1070 ET SEQ.);
   (B)  IS EXTENDED TO A CONSUMER EXPRESSLY, IN WHOLE OR IN PART, FOR, OR
 ACCRUES FROM NONPAYMENT OF, HIGHER  EDUCATION  EXPENSES,  REGARDLESS  OF
 WHETHER  THE  CREDIT  OR  DEBT  OR OBLIGATION IS OWED TO THE PROVIDER OF
 HIGHER EDUCATION THAT THE STUDENT ATTENDS; AND
   (C) SHALL NOT INCLUDE ANY LOAN THAT IS SECURED BY REAL PROPERTY  OR  A
 DWELLING.
   "PRIVATE EDUCATION DEBT" SHALL INCLUDE EXTENSIONS OF CREDIT OR DEBT OR
 OBLIGATIONS OWED OR INCURRED TO REFINANCE A PRIVATE EDUCATION DEBT.
   6.  "PROVIDER  OF HIGHER EDUCATION" OR "SCHOOL" MEANS A PERSON ENGAGED
 IN THE BUSINESS OF HIGHER EDUCATION. FOR  THE  PURPOSES  OF  THIS  DEFI-
 NITION,  A  PERSON NEED NOT HAVE OBTAINED AUTHORIZATION FROM THE DEPART-
 MENT OF EDUCATION TO OPERATE IN THIS STATE AND NEED NOT BE AN ACCREDITED
 INSTITUTION.
   § 902. PRIVATE EDUCATION DEBT REGISTRY. 1. BEGINNING ON OR  AFTER  THE
 ONE  HUNDRED  EIGHTIETH DAY AFTER THE EFFECTIVE DATE OF THIS ARTICLE, NO
 PERSON SHALL ENGAGE IN BUSINESS AS A PRIVATE EDUCATION CREDITOR IN  THIS
 STATE  WITHOUT  FIRST SATISFYING THE FOLLOWING REQUIREMENTS SET FORTH IN
 SUBDIVISIONS TWO AND THREE OF THIS SECTION.
   2. (A) A PRIVATE EDUCATION CREDITOR  OPERATING  IN  THIS  STATE  SHALL
 REGISTER WITH THE SUPERINTENDENT PURSUANT TO ANY REGISTRATION PROCEDURES
 SET FORTH BY THE SUPERINTENDENT BY RULE OR REGULATION, WHICH MAY INCLUDE
 REGISTRATION  THROUGH  THE  NATIONWIDE  MULTISTATE  LICENSING SYSTEM AND
 REGISTRY, AND SHALL PAY A FEE SET BY THE SUPERINTENDENT. THE SUPERINTEN-
 DENT MAY PRESCRIBE AN ALTERNATIVE REGISTRATION PROCESS AND FEE STRUCTURE
 FOR A PROVIDER OF HIGHER EDUCATION. REGISTRATION  SHALL  INCLUDE,  AT  A
 MINIMUM,  THE NAME AND ADDRESS OF THE PRIVATE EDUCATION CREDITOR AND ANY
 OFFICER, DIRECTOR, PARTNER, OR OWNER OF A CONTROLLING  INTEREST  OF  THE
 PRIVATE EDUCATION CREDITOR.  A PRIVATE EDUCATION CREDITOR SHALL ANNUALLY
 RENEW ITS REGISTRATION AND PAY A RENEWAL FEE PURSUANT TO A PROCEDURE AND
 ON OR BEFORE A DATE TO BE DETERMINED BY THE SUPERINTENDENT.
   (B)  THIS  SUBDIVISION  SHALL  NOT APPLY TO REGULATED PERSONS, AS SUCH
 TERM IS DEFINED IN SECTION ONE HUNDRED FOUR OF THIS CHAPTER, ENGAGED  IN
 BUSINESS  AS  A  PRIVATE EDUCATION CREDITOR IN THIS STATE, TO THE EXTENT
 SUCH REGULATION RELATES TO ITS BUSINESS AS A PRIVATE EDUCATION  CREDITOR
 AND SUCH PERSONS ARE REQUIRED TO FURNISH DATA OR REPORTS ANNUALLY TO THE
 SUPERINTENDENT.
   3.  A PRIVATE EDUCATION CREDITOR OPERATING IN THIS STATE SHALL ANNUAL-
 LY, ON OR BEFORE A DATE TO BE DETERMINED BY THE SUPERINTENDENT  AND  NOT
 TO  EXCEED  SIX  MONTHS  FOLLOWING  THE  EFFECTIVE DATE OF THIS ARTICLE,
 PROVIDE THE SUPERINTENDENT WITH THE FOLLOWING DOCUMENTS AND  INFORMATION
 ABOUT  SUCH  CREDITOR'S  PRIVATE  EDUCATION  DEBT  PORTFOLIO  RELATED TO
 CONSUMERS THAT RESIDE IN THIS STATE PURSUANT TO ANY PROCEDURE SET  FORTH
 BY  THE  SUPERINTENDENT, WHICH MAY INCLUDE REPORTING THROUGH THE NATION-
 WIDE MULTISTATE LICENSING SYSTEM AND REGISTRY,  AND  WHICH  MAY  FURTHER
 INCLUDE  DIFFERENT  PROCEDURES  FOR  REGULATED  PERSONS, AS THAT TERM IS
 S. 8197                             3
 
 DEFINED IN SECTION ONE HUNDRED FOUR OF THIS CHAPTER,  AND  NON-REGULATED
 PERSONS:
   (A)  FOR  PRIVATE  EDUCATION  CREDITORS  THAT  SECURE, MAKE, OR EXTEND
 PRIVATE EDUCATION  DEBTS,  OTHER  THAN  THOSE  PRIVATE  EDUCATION  DEBTS
 REPORTED PURSUANT TO PARAGRAPH (C) OF THIS SUBDIVISION, RELATING TO SUCH
 DEBTS  OWED  BY  A  CONSUMER RESIDING IN THIS STATE AS OF THE END OF THE
 PRIOR FISCAL YEAR:
   (I) A LIST OF ALL SCHOOLS FOR WHICH SUCH PRIVATE EDUCATION DEBTS  WERE
 USED  TO FINANCE HIGHER EDUCATION, INCLUDING, IN THE CASE OF A REFINANC-
 ING LOAN, THE SCHOOL THAT THE CONSUMER ATTENDED USING THE PRIVATE EDUCA-
 TION DEBT THAT WAS REFINANCED;
   (II) THE TOTAL OUTSTANDING DOLLAR AMOUNT AND NUMBER  OF  SUCH  PRIVATE
 EDUCATION  DEBTS AND THE NUMBER OF CONSUMERS WHO OWE SUCH PRIVATE EDUCA-
 TION DEBTS;
   (III) THE TOTAL DOLLAR AMOUNT AND NUMBER  OF  SUCH  PRIVATE  EDUCATION
 DEBTS  ASSOCIATED  WITH EACH SCHOOL IDENTIFIED UNDER SUBPARAGRAPH (I) OF
 THIS PARAGRAPH;
   (IV) THE TOTAL DOLLAR AMOUNT AND NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 SECURED, MADE, OR EXTENDED IN THE PRIOR FISCAL YEAR;
   (V)  THE  TOTAL  DOLLAR  AMOUNT  AND NUMBER OF PRIVATE EDUCATION DEBTS
 SECURED, MADE, OR EXTENDED IN THE PRIOR FISCAL YEAR ASSOCIATED WITH EACH
 SCHOOL IDENTIFIED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH;
   (VI) THE RANGE OF STARTING INTEREST RATES FOR PRIVATE EDUCATION  DEBTS
 SECURED,  MADE,  OR  EXTENDED  TO CONSUMERS IN THE PRIOR FISCAL YEAR AND
 PERCENTAGE OF CONSUMERS WHO RECEIVE THOSE RATES;
   (VII) THE OVERALL DEFAULT RATE, AS WELL AS  THE  OVERALL  DEFAULT  FOR
 SUCH  DEBTS ASSOCIATED WITH EACH  SCHOOL  LISTED  UNDER SUBPARAGRAPH (I)
 OF THIS PARAGRAPH;
   (VIII) THE TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE  EDUCATION  DEBTS
 THAT DEFAULTED FOR REASONS OTHER  THAN  NON-PAYMENT IN THE PRIOR  FISCAL
 YEAR, AS APPLICABLE;
   (IX)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 WITH A COSIGNER, AS APPLICABLE;
   (X) THE TOTAL DOLLAR AMOUNT AND  NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 SECURED,  MADE, OR EXTENDED WITH A COSIGNER IN THE PRIOR FISCAL YEAR, AS
 APPLICABLE;
   (XI) THE TOTAL DOLLAR AMOUNT AND NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 SECURED, MADE, OR EXTENDED TO REFINANCE OTHER PRIVATE EDUCATION DEBTS OR
 FEDERAL STUDENT LOANS, RESPECTIVELY, AS APPLICABLE;
   (XII)  THE  TOTAL  DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 SECURED, MADE, OR EXTENDED TO REFINANCE OTHER PRIVATE EDUCATION DEBTS OR
 FEDERAL STUDENT LOANS, RESPECTIVELY, IN THE PRIOR FISCAL YEAR, AS APPLI-
 CABLE;
   (XIII) THE TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE  EDUCATION  DEBTS
 FOR  WHICH  THE  PRIVATE  EDUCATION  CREDITOR HAS SUED TO COLLECT IN THE
 PRIOR FISCAL YEAR, AS APPLICABLE;
   (XIV) ADDITIONAL INFORMATION AS MAY IN THE JUDGMENT OF THE SUPERINTEN-
 DENT BE NECESSARY AND APPROPRIATE IN ORDER TO ASSESS THE TOTAL SIZE  AND
 STATUS OF THE PRIVATE EDUCATION DEBT MARKET AND TO ASSESS BORROWER WELL-
 BEING; AND
   (XV) A COPY OF ANY MODEL PROMISSORY NOTE, AGREEMENT, CONTRACT OR OTHER
 INSTRUMENT  USED  BY  A  PRIVATE  EDUCATION CREDITOR DURING THE PREVIOUS
 FISCAL YEAR TO SUBSTANTIATE THAT A NEW PRIVATE EDUCATION DEBT  HAS  BEEN
 EXTENDED TO THE CONSUMER OR THAT A CONSUMER OWES A DEBT OR OBLIGATION TO
 THE PRIVATE EDUCATION CREDITOR.
 S. 8197                             4
 
   (B)  FOR  PRIVATE  EDUCATION  CREDITORS THAT ACQUIRE OR ASSUME PRIVATE
 EDUCATION DEBTS OWED BY A CONSUMER RESIDING IN THIS STATE,  RELATING  TO
 SUCH DEBTS AS OF THE END OF THE PRIOR FISCAL YEAR:
   (I)  A LIST OF ALL SCHOOLS FOR WHICH SUCH PRIVATE EDUCATION DEBTS WERE
 USED TO FINANCE HIGHER EDUCATION, INCLUDING, IN THE CASE OF A  REFINANC-
 ING LOAN, THE SCHOOL THAT THE CONSUMER ATTENDED USING THE PRIVATE EDUCA-
 TION DEBT THAT WAS REFINANCED;
   (II)  THE  TOTAL  OUTSTANDING DOLLAR AMOUNT AND NUMBER OF SUCH PRIVATE
 EDUCATION DEBTS AND NUMBER OF CONSUMERS WHO OWE SUCH  PRIVATE  EDUCATION
 DEBTS;
   (III)  THE  TOTAL  DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 ASSOCIATED WITH EACH SCHOOL IDENTIFIED UNDER SUBPARAGRAPH  (I)  OF  THIS
 PARAGRAPH;
   (IV)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 ACQUIRED OR ASSUMED IN THE PRIOR FISCAL YEAR;
   (V) THE TOTAL DOLLAR AMOUNT AND  NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 ACQUIRED OR ASSUMED IN THE PRIOR FISCAL YEAR ASSOCIATED WITH EACH SCHOOL
 IDENTIFIED UNDER SUBPARAGRAPH (I) OF THIS PARAGRAPH;
   (VI) THE OVERALL DEFAULT RATE, AS WELL AS THE OVERALL DEFAULT FOR SUCH
 DEBTS  ASSOCIATED WITH EACH SCHOOL LISTED UNDER SUBPARAGRAPH (I) OF THIS
 PARAGRAPH;
   (VII) THE TOTAL DOLLAR AMOUNT AND NUMBER OF  PRIVATE  EDUCATION  DEBTS
 THAT  DEFAULTED  FOR  REASONS  OTHER THAN NONPAYMENT IN THE PRIOR FISCAL
 YEAR, AS APPLICABLE;
   (VIII) THE TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE  EDUCATION  DEBTS
 WITH A COSIGNER, AS APPLICABLE;
   (IX)  THE  TOTAL  DOLLAR  AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS
 THAT WERE USED TO REFINANCE OTHER PRIVATE EDUCATION DEBTS,  AS  APPLICA-
 BLE;
   (X)  THE TOTAL DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCATION DEBTS FOR
 WHICH THE PRIVATE EDUCATION CREDITOR HAS SUED TO COLLECT  IN  THE  PRIOR
 FISCAL YEAR, AS APPLICABLE; AND
   (XI)  ADDITIONAL INFORMATION AS MAY IN THE JUDGMENT OF THE SUPERINTEN-
 DENT BE NECESSARY AND APPROPRIATE IN ORDER TO ASSESS THE TOTAL SIZE  AND
 STATUS OF THE PRIVATE EDUCATION DEBT MARKET AND TO ASSESS BORROWER WELL-
 BEING.
   (C)  FOR  PRIVATE  EDUCATION  CREDITORS  THAT  ARE PROVIDERS OF HIGHER
 EDUCATION AND WHOSE PRIVATE EDUCATION DEBTS RESULT FROM UNPAID DEBTS  OR
 OBLIGATIONS  THAT  WERE  NOT  EXTENSIONS  OF CREDIT AND THAT RESULT FROM
 HIGHER EDUCATION PROVIDED IN THIS STATE, RELATING TO SUCH  DEBTS  AS  OF
 THE END OF THE PRIOR FISCAL YEAR, REPORTED BY RACE AND GENDER:
   (I)  THE  TOTAL OUTSTANDING DOLLAR AMOUNT AND NUMBER OF PRIVATE EDUCA-
 TION DEBTS AND NUMBER OF CONSUMERS WHO OWE THOSE DEBTS;
   (II) THE TOTAL DOLLAR AMOUNT AND NUMBER  OF  PRIVATE  EDUCATION  DEBTS
 ACCRUED  AND NUMBER OF CONSUMERS WHO OWE THOSE DEBTS IN THE PRIOR FISCAL
 YEAR;
   (III) THE TOTAL NUMBER AND BALANCE OF STUDENT ACCOUNTS WITH AN ACADEM-
 IC OR ADMINISTRATIVE HOLD RESULTING FROM A PRIVATE EDUCATION DEBT;
   (IV) THE TOTAL NUMBER AND BALANCE OF STUDENT ACCOUNTS WITH AN ACADEMIC
 OR ADMINISTRATIVE HOLD RESULTING FROM A PRIVATE EDUCATION DEBT FOR WHICH
 A PAYMENT WAS MADE IN THE PRIOR FISCAL YEAR AND AVERAGE PAYMENT MADE;
   (V) THE TOTAL NUMBER OF STUDENT ACCOUNTS FOR WHICH  FEDERAL  FINANCIAL
 AID WAS RETURNED TO THE FEDERAL GOVERNMENT UPON THE STUDENT'S WITHDRAWAL
 FROM  THE PROVIDER OF HIGHER EDUCATION IN THE PRIOR FISCAL YEAR, AND THE
 TOTAL DOLLAR AMOUNT OF ANY PRIVATE EDUCATION DEBT ACCRUED AS A RESULT;
 S. 8197                             5
 
   (VI) THE NUMBER OF CONSUMERS WHO OWE  A  PRIVATE  EDUCATION  DEBT  WHO
 RECEIVED A FEDERAL PELL GRANT AND THE AVERAGE DEBT OWED;
   (VII) THE NUMBER OF CONSUMERS WHO OWE A PRIVATE EDUCATION DEBT WHO ARE
 CONSIDERED  IN-STATE  AND OUT-OF-STATE STUDENTS, AND THE TOTAL DEBT OWED
 BY EACH GROUP;
   (VIII) THE TOTAL DOLLAR AMOUNT, NUMBER OF PRIVATE EDUCATION DEBTS, AND
 NUMBER OF CONSUMERS FOR WHICH THE PRIVATE EDUCATION CREDITOR HAS IN  THE
 PRIOR FISCAL YEAR (A) CHARGED OFF THE DEBT, (B) SENT THE DEBT TO A THIRD
 PARTY  COLLECTION  AGENCY,  (C)  INITIATED  A  COLLECTION  LAWSUIT,  (D)
 REPORTED THE DEBT TO A CONSUMER CREDIT REPORTING AGENCY,  AND  (E)  SOLD
 THE DEBT;
   (IX)  THE  TOTAL DOLLAR AMOUNT, NUMBER OF PRIVATE EDUCATION DEBTS, AND
 NUMBER OF CONSUMERS FOR WHICH THE PRIVATE EDUCATION CREDITOR HAS, IN THE
 PRIOR FISCAL YEAR, COLLECTED ON A PRIVATE EDUCATION DEBT IN THE  FOLLOW-
 ING  INSTANCES:  (A)  PAYMENT  ARRANGEMENTS  WHEREIN THE PAYMENT WAS NOT
 CONSIDERED  PAST  DUE,  SUCH  AS  TUITION  INSTALLMENT  AGREEMENTS;  (B)
 PAYMENTS MADE ON PAST DUE DEBTS DURING THE SAME ACADEMIC TERM OR BILLING
 CYCLE  IN  WHICH  THE  DEBT ACCRUED AND BEFORE SUCH DEBTS WERE SENT TO A
 COLLECTION AGENCY; (C) PAYMENTS MADE ON PAST DUE DEBTS BEFORE THEY  WERE
 SENT  TO  A  COLLECTION AGENCY, EXCLUDING THOSE PAYMENTS MADE DURING THE
 SAME ACADEMIC TERM OR BILLING CYCLE IN WHICH THE  DEBT  ACCRUED;  (D)  A
 THIRD  PARTY COLLECTION AGENCY, PRIOR TO INITIATING A LAWSUIT; AND (E) A
 COLLECTION LAWSUIT, INCLUDING PAYMENTS MADE BY SETTLEMENT OR PURSUANT TO
 A JUDGMENT;
   (X) ADDITIONAL INFORMATION AS MAY IN THE JUDGMENT OF  THE  SUPERINTEN-
 DENT  BE NECESSARY AND APPROPRIATE IN ORDER TO ASSESS THE TOTAL SIZE AND
 STATUS OF THE PRIVATE EDUCATION DEBT MARKET AND TO ASSESS BORROWER WELL-
 BEING; AND
   (XI) A COPY OF ANY MODEL WRITTEN INSTRUMENT  USED  BY  A  PROVIDER  OF
 HIGHER  EDUCATION  IN  THE  PRIOR  FISCAL YEAR TO SUBSTANTIATE A PRIVATE
 EDUCATION DEBT, INCLUDING BUT NOT LIMITED TO A PROMISSORY NOTE,  ENROLL-
 MENT AGREEMENT, OR CONTRACT.
   4.  NOT  LATER  THAN  ONE  YEAR  FOLLOWING  THE EFFECTIVE DATE OF THIS
 SECTION, THE SUPERINTENDENT SHALL CREATE A PUBLICLY  ACCESSIBLE  WEBSITE
 THAT INCLUDES AT LEAST THE FOLLOWING INFORMATION ABOUT PRIVATE EDUCATION
 CREDITORS REGISTERED IN THIS STATE:
   (A)  THE  NAME,  ADDRESS, TELEPHONE NUMBER AND WEBSITE FOR ALL PRIVATE
 EDUCATION CREDITORS;
   (B) A SUMMARY OF THE INFORMATION REQUIRED BY SUBDIVISION THREE OF THIS
 SECTION; AND
   (C) COPIES OF ALL DOCUMENTS PROVIDED UNDER SUBPARAGRAPH (XV) OF  PARA-
 GRAPH  (A) OF SUBDIVISION THREE OF THIS SECTION AND SUBPARAGRAPH (XI) OF
 PARAGRAPH (C) OF SUBDIVISION THREE OF THIS SECTION.
   § 903. RULES AND REGULATIONS. IN ADDITION TO SUCH POWERS AS MAY OTHER-
 WISE BE PRESCRIBED BY THIS CHAPTER, THE SUPERINTENDENT IS HEREBY AUTHOR-
 IZED AND EMPOWERED TO PROMULGATE SUCH RULES AND REGULATIONS  AS  MAY  IN
 THE  JUDGMENT  OF  THE SUPERINTENDENT BE CONSISTENT WITH THE PURPOSES OF
 THIS ARTICLE, OR APPROPRIATE FOR THE EFFECTIVE  ADMINISTRATION  OF  THIS
 ARTICLE.
   §  904.  VIOLATIONS.  1. IF THE SUPERINTENDENT FINDS, AFTER NOTICE AND
 HEARING, THAT A PRIVATE EDUCATION CREDITOR HAS KNOWINGLY  VIOLATED  THIS
 ARTICLE BY FAILING TO COMPLY WITH ANY REGISTRATION OR REPORTING REQUIRE-
 MENT  OR BY FURNISHING INACCURATE INFORMATION TO THE SUPERINTENDENT, THE
 SUPERINTENDENT MAY IMPOSE A CIVIL PENALTY OF NOT MORE THAN TEN  THOUSAND
 DOLLARS FOR EACH VIOLATION.
 S. 8197                             6
 
   2.  THE SUPERINTENDENT MAY ORDER THAT ANY PERSON WHO HAS BEEN FOUND TO
 HAVE KNOWINGLY VIOLATED ANY PROVISION OF THIS ARTICLE, OR OF  THE  RULES
 AND  REGULATIONS  ISSUED PURSUANT THERETO, AND HAS THEREBY CAUSED FINAN-
 CIAL HARM TO CONSUMERS, BE BARRED FOR A TERM  NOT  EXCEEDING  TEN  YEARS
 FROM  ACTING  AS  A  PRIVATE EDUCATION CREDITOR, OR A STOCKHOLDER, OR AN
 OFFICER, DIRECTOR, PARTNER OR OTHER OWNER, OR AN EMPLOYEE OF  A  PRIVATE
 EDUCATION CREDITOR.
   §  905. SEVERABILITY. IF ANY PROVISION OF THIS ARTICLE OR THE APPLICA-
 TION THEREOF TO ANY PERSON OR CIRCUMSTANCE  IS  ADJUDGED  INVALID  BY  A
 COURT  OF  COMPETENT  JURISDICTION,  THAT  JUDGMENT  SHALL NOT AFFECT OR
 IMPAIR THE VALIDITY OF THE OTHER  PROVISIONS  OF  THIS  ARTICLE  OR  THE
 APPLICATION THEREOF TO OTHER PERSONS AND CIRCUMSTANCES.
   § 2. This act shall take effect immediately.