Authorizes the attorney general to bring an action to enjoin unfair practices of proprietary institutions of higher education; defines unlawful unfair acts or practices.
STATE OF NEW YORK
________________________________________________________________________
5598--A
Cal. No. 691
2019-2020 Regular Sessions
IN SENATE
May 8, 2019
___________
Introduced by Sen. THOMAS -- read twice and ordered printed, and when
printed to be committed to the Committee on Consumer Protection --
reported favorably from said committee, ordered to first and second
report, ordered to a third reading, amended and ordered reprinted,
retaining its place in the order of third reading
AN ACT to amend the general business law, in relation to unfair prac-
tices of proprietary institutions of higher education
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. The general business law is amended by adding a new section
2 349-f to read as follows:
3 § 349-f. Proprietary institutions of higher education; unlawful unfair
4 practices. 1. For purposes of this section, "proprietary institution"
5 shall be defined as any licensed private career school, certified
6 English as a Second Language school, or online education marketplace as
7 defined in article one hundred one of the education law, or a for-profit
8 degree-granting institution approved pursuant to the department of
9 education, including any such institution with a physical presence in
10 the state or enrolling New York state students in an online distance
11 education program.
12 2. In addition to the protections afforded to consumers in this arti-
13 cle for students that are attending or at one time attended a proprie-
14 tary institution in this state, the attorney general whenever he or she
15 believes from evidence satisfactory to him or her that any proprietary
16 institution or agent or employee thereof has engaged in any of the acts
17 or practices deemed to be unfair under this section, the attorney gener-
18 al may bring an action in the name and on behalf of the people of the
19 state of New York to enjoin such unfair acts or practices, obtain resti-
20 tution of any moneys or property obtained directly or indirectly by any
21 such unfair acts or practices, and/or obtain civil penalties for
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11534-04-9
S. 5598--A 2
1 violations of this section. In such action preliminary relief may be
2 granted under article sixty-three of the civil practice law and rules.
3 3. An act or practice shall be deemed unfair under this section if:
4 (a) it causes or is likely to cause substantial injury to students
5 that are attending or at one time attended a proprietary institution
6 that cannot be reasonably avoided by students that are attending or at
7 one time attended a proprietary institution; or
8 (b) it is not outweighed by countervailing benefits to students that
9 are attending or at one time attended a proprietary institution, or to
10 competition.
11 4. Nothing in this section shall supersede, amend or repeal any other
12 law of this state under which the attorney general is authorized to take
13 any action or conduct any inquiry.
14 § 2. This act shall take effect immediately.
