NY State Senate Bill 2023-S9391

Senate Bill S9391

2023-2024 Legislative Session

Authorizes and directs the commissioner of education establish rules and regulations for a college or university seeking to cease operations

download bill text pdf

Current 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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Actions

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	Assembly Actions - Lowercase Senate Actions - UPPERCASE
May 14, 2024	referred to higher education

2023-S9391 (ACTIVE) - Details

See Assembly Version of this Bill:: A10396
Current Committee:: Senate Higher Education
Law Section:: Education Law
Laws Affected:: Amd §305, Ed L

2023-S9391 (ACTIVE) - Summary

Authorizes and directs the commissioner of education to establish rules and regulations for a college or university seeking to cease operations in an orderly process.

2023-S9391 (ACTIVE) - Sponsor Memo

                                 
BILL NUMBER: S9391

SPONSOR: MAY
 
TITLE OF BILL:

An act to amend the education law, in relation to authorizing and
directing the commissioner of education establish rules and regulations
for a college or university seeking to cease operations

 
PURPOSE:

To establish rules and regulations that will ensure the orderly closure
of a college or university

 
SUMMARY OF SPECIFIC PROVISIONS:

Section 1 lists the rules and regulations that the commissioner is
authorized and directed to promulgate. These rules include but are not
limited to instructions to inform the school's community of a plan to
close at least a year prior, requires the college to host public meet-
ings about the closure, and an outline for engagement with state and
local governments on campus resources and services.

Section 2 establishes the effective date of the bill and repeals any
rule or regulation necessary for the implementation of this act.

 
JUSTIFICATION:

This bill would outline orderly procedures for colleges and universities
seeking to close down operations to allow more seamless transitions for
the students, staff, and faculty, as well as for the state and local
governments. It would require the colleges to provide notice of an
impending closure at least a year in advance, to host public meetings to
address concerns, and to provide the students with teach out or transfer
agreements at least six months in advance.  Crucially, it would require
stakeholders in the college to be in touch with their local governments
about campus resources six months before planned closures.

According to US Department of Education data, hundreds of post-secondary
institutions close every year. In 2023, fourteen small nonprofit
colleges closed in the US. Of these, three were in New York. This year,
we will see the closure of at least three more New York institutions of
higher education with one hundred year plus histories, which have served
as anchors of their communities.

While some institutions give ample notice of their closures, allowing
students, staff, and faculty to make other plans, other colleges have
closed more abruptly. This could mean the loss of dozens of jobs without
sufficient notice, and students having to scramble to figure out the
future of their education, with or without a "teach out" agreement.
Abrupt closures lead to lower re- enrollment and completion rates for
students compared to orderly closures for their peers, underscoring the
necessity of this bill.

 
LEGISLATIVE HISTORY:

New bill

 
FISCAL IMPLICATIONS:
None to the state

 
EFFECTIVE DATE:
One year after it shall become a law

2023-S9391 (ACTIVE) - Bill Text download pdf

                             
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   9391
 
                             I N  S E N A T E
 
                               May 14, 2024
                                ___________
 
 Introduced  by  Sen.  MAY  --  read  twice and ordered printed, and when
   printed to be committed to the Committee on Higher Education
 
 AN ACT to amend the  education  law,  in  relation  to  authorizing  and
   directing  the  commissioner  of  education  establish rules and regu-
   lations for a college or university seeking to cease operations

   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 62 to read as follows:
   62.  THE  COMMISSIONER  IS AUTHORIZED AND DIRECTED TO PROMULGATE RULES
 AND REGULATIONS THAT SHALL ESTABLISH AN ORDERLY PROCESS FOR THE  CLOSURE
 OF  A  COLLEGE  OR UNIVERSITY. SUCH RULES AND REGULATIONS SHALL INCLUDE,
 BUT NOT BE LIMITED TO:
   (A) ANY DECISION TO CEASE OPERATIONS AT A COLLEGE OR UNIVERSITY  SHALL
 BE  MADE  PUBLIC  AND  DISCLOSED AT LEAST ONE YEAR PRIOR TO THE PROPOSED
 CLOSING DATE;
   (B) ANY COLLEGE OR UNIVERSITY CEASING OPERATIONS SHALL HOLD  AT  LEAST
 THREE PUBLIC MEETINGS TO ADDRESS CONCERNS FROM STUDENTS, FACULTY, STAFF,
 AND THE LOCAL COMMUNITY;
   (C)  ANY COLLEGE OR UNIVERSITY CEASING OPERATIONS SHALL PROVIDE NOTICE
 TO SUCH COLLEGE OR UNIVERSITY'S ACCREDITING AGENCY AT LEAST NINE  MONTHS
 PRIOR TO THE PROPOSED CLOSING DATE;
   (D) ANY COLLEGE OR UNIVERSITY CEASING OPERATIONS SHALL PROVIDE DETAILS
 ON  TEACH OUT PLANS OR TRANSFER AGREEMENTS TO ENROLLED STUDENTS AT LEAST
 SIX MONTHS PRIOR TO THE PROPOSED CLOSING DATE;
   (E) ANY COLLEGE OR UNIVERSITY CEASING OPERATIONS SHALL PROVIDE DETAILS
 ON ANY PLANS TO SELL, TRANSFER, OR UTILIZE CAMPUS  RESOURCES,  INCLUDING
 BUT  NOT  LIMITED TO BUILDINGS, GROUNDS, AND FACILITIES TO LOCAL GOVERN-
 MENTS AT LEAST SIX MONTHS PRIOR TO THE PROPOSED CLOSING DATE; AND
   (F) ANY COLLEGE OR UNIVERSITY CEASING OPERATIONS THAT SHARES RESPONSI-
 BILITY FOR OR PROVIDES SHARED SERVICES TO LOCAL GOVERNMENTS OR  AGENCIES
 FOR PROGRAMS OR PHYSICAL OPERATIONS SHALL DEVELOP A TRANSITION PLAN WITH
 THE  RELEVANT PARTNER AT LEAST FOUR MONTHS PRIOR TO THE PROPOSED CLOSING
 DATE.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.

                                                            LBD15526-01-4
 S. 9391                             2
 
   § 2. 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.

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