Relates to licensed private career schools with gross tuition of less than one hundred thousand dollars; authorizes certain licensed private career schools to file an unaudited financial statement under certain circumstances.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2180
SPONSOR: Hyndman TITLE OF BILL:
An act to amend the education law, in relation to licensed private
career schools with gross tuition of less than one hundred thousand
dollars; and providing for the repeal of such provisions upon expiration
thereof
PURPOSE:
To allow licensed private career schools whose gross tuition is less
than $100,000 in a school fiscal year and which receives less than one
hundred thousand dollars in state and federal student financial aid in a
school fiscal year to file unaudited financial statements with the State
Education Department, provided that once every three years such licensed
private career school files an audited financial statement with the
State Education Department.
SUMMARY OF PROVISIONS:
Section 1: Amends Section 5001 of the Education Law to allow licensed
private career schools whose gross tuition is less than $100,000 in a
school fiscal year and which receives less than one hundred thousand
dollars in state and federal student financial aid in a school fiscal
year to file unaudited financial statements with the State Education
Department, provided that once every three years such licensed private
career school files an audited financial statement with the State Educa-
tion Department.
Section 2: sets forth the effective and repeal date.
JUSTIFICATION:
In recent years, the economy has affected numerous private career
schools. With declines in enrollment and increases in operational costs
and expenses, numerous schools in this sector have been financially
challenged; some even forced to permanently close. This legislation is
in efforts to help lessen the financial burden of the cost-of-business
schools grossing under $100,000 in tuition can furnish the commissioner
with unaudited financial statements. Audited financial statements can be
extremely costly, especially to schools struggling financially to oper-
ate.
FISCAL IMPACT:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
