New York A 2182: Establishes the Non-Degree Proprietary School Supervision and Student Protection Act

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A02182 Summary:

BILL NOA02182 

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SAME ASNo Same As

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SPONSORHyndman

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COSPNSR

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MLTSPNSR

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Add §239-c, amd §§5003, 5007 & 5002, Ed L

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Establishes the Non-Degree Proprietary School Supervision and Student Protection Act.

Go to top A02182 Actions:

BILL NOA02182 

&nbsp

01/15/2025referred to higher education

01/07/2026referred to higher education

Go to topA02182 Committee&nbspVotes:

Go to topA02182 Floor&nbspVotes:

There are no Assembly votes for this bill in this legislative session.

Go to topA02182 Text:

 STATE OF NEW YORK
 ________________________________________________________________________

 2182

 2025-2026 Regular Sessions

 IN ASSEMBLY

 January 15, 2025
 ___________

 Introduced by M. of A. HYNDMAN -- read once and referred to the Commit-
 tee on Higher Education

 AN ACT to amend the education law, in relation to enacting the "Non-De-
 gree Proprietary School Supervision and Student Protection Act"

 The People of the State of New York, represented in Senate and Assem-
 bly, do enact as follows:

 1 Section 1. Short title. This act shall be known and may be cited as
 2 the "Non-Degree Proprietary School Supervision and Student Protection
 3 Act".
 4 § 2. The education law is amended by adding a new section 239-c to
 5 read as follows:
 6 § 239-c. Arbitration clauses in proprietary institution enrollment
 7 contracts. 1. No proprietary institution of higher education shall
 8 include any provision requiring mandatory binding arbitration of
 9 disputes regarding any student enrollment contract or agreement.
 10 2. For purposes of this section, "proprietary institution" shall be
 11 defined as any licensed private career school, certified English as a
 12 second language school, or online education marketplace as defined in
 13 paragraph c of subdivision one of section five thousand one of this
 14 chapter or any approved for-profit degree-granting institution pursuant
 15 to the department.
 16 § 3. Subparagraphs 1 and 2 of paragraph c of subdivision 1 of section
 17 5003 of the education law, as amended by chapter 381 of the laws of
 18 2012, are amended to read as follows:
 19 (1) Any person who believes [he or she has] they have been aggrieved
 20 by a violation of this section, except a person aggrieved by the actions
 21 or omissions of a candidate school, shall have the right to file a writ-
 22 ten complaint within: (A) [two] six years of the alleged violation; or
 23 (B) one year of receiving notification from the higher education
 24 services corporation or any other guarantee agency that the student has
 25 defaulted on a student loan payment[; provided, however, that no

 EXPLANATION--Matter in italics (underscored) is new; matter in brackets
 [ ] is old law to be omitted.
 LBD04995-01-5

 A. 2182 2

 1 complaint may be filed after three years from the date of the alleged
 2 violation]. The commissioner shall maintain a written record of each
 3 complaint that is made. The commissioner shall also send to the
 4 complainant a form acknowledging the complaint and requesting further
 5 information if necessary and shall advise the director of the school
 6 that a complaint has been made and, where appropriate the nature of the
 7 complaint.
 8 (2) The commissioner shall within twenty days of receipt of such writ-
 9 ten complaint commence an investigation of the alleged violation and
 10 shall within ninety days of the receipt of such written complaint, issue
 11 a written finding. The commissioner shall furnish such findings to the
 12 person who filed the complaint and to the chief operating officer of the
 13 school cited in the complaint. If the commissioner finds that there has
 14 been a violation of this section, the commissioner shall take appropri-
 15 ate action. If the commissioner shall find that there has been a
 16 violation of this section, the commissioner shall also place such a
 17 finding on a publicly accessible website disclosing the institution that
 18 was in violation and the substance of the complaint within thirty days
 19 of the commissioner's finding.
 20 § 4. Paragraphs a and b of subdivision 6 of section 5003 of the educa-
 21 tion law, as amended by chapter 381 of the laws of 2012, are amended to
 22 read as follows:
 23 a. A hearing officer may recommend, and th