A06938 Summary:

BILL NOA06938B
 
SAME ASSAME AS S05924-C
 
SPONSOREpstein
 
COSPNSRSeawright, Steck, Burdick, Dinowitz, Clark, Magnarelli, Gonzalez-Rojas, Gottfried, Kelles, Simon, Zinerman, Colton, Ramos, Fernandez, Jacobson, Gibbs, De Los Santos, Forrest
 
MLTSPNSR
 
Add Art 13-C §640, Ed L
 
Prohibits certain practices regarding collection and enforcement of student debt.
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A06938 Actions:

BILL NOA06938B
 
04/14/2021referred to higher education
05/14/2021amend (t) and recommit to higher education
05/14/2021print number 6938a
01/05/2022referred to higher education
02/03/2022amend and recommit to higher education
02/03/2022print number 6938b
02/08/2022reported referred to codes
02/15/2022reported referred to ways and means
03/28/2022reported referred to rules
03/28/2022reported
03/28/2022rules report cal.63
03/28/2022ordered to third reading rules cal.63
03/28/2022passed assembly
03/28/2022delivered to senate
03/28/2022REFERRED TO CONSUMER PROTECTION
03/31/2022SUBSTITUTED FOR S5924C
03/31/20223RD READING CAL.132
03/31/2022PASSED SENATE
03/31/2022RETURNED TO ASSEMBLY
04/27/2022delivered to governor
05/04/2022signed chap.180
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A06938 Committee Votes:

HIGHER EDUCATION Chair:Glick DATE:02/08/2022AYE/NAY:20/4 Action: Favorable refer to committee Codes
GlickAyeWalczykNay
GottfriedAyeSmithAye
EnglebrightAyeFitzpatrickNay
CahillAyeReillyAye
CusickAyeSalkaNay
LupardoAyeSmullenNay
StirpeAyeGandolfoAye
FahyAye
SimonAye
McDonaldAye
BichotteAye
HyndmanAye
EpsteinAye
GriffinAye
McMahonAye
ButtenschonAye
ClarkAye
ForrestExcused

CODES Chair:Dinowitz DATE:02/15/2022AYE/NAY:16/6 Action: Favorable refer to committee Ways and Means
DinowitzAyeMorinelloNay
PretlowAyeGiglioNay
CookAyeMontesanoNay
CymbrowitzAyeReillyNay
O'DonnellAyeMikulinNay
LavineAyeTannousisNay
PerryAye
AbinantiAye
WeprinAye
HevesiAye
SeawrightAye
RosenthalAye
WalkerAye
VanelAye
CruzAye
CarrollAye

WAYS AND MEANS Chair:Weinstein DATE:03/28/2022AYE/NAY:25/8 Action: Favorable refer to committee Rules
WeinsteinAyeRaNay
GlickExcusedFitzpatrickNay
NolanAyeHawleyNay
PretlowAyeMontesanoNay
PerryExcusedBlankenbushNay
ColtonAyeNorrisNay
CookAyeBrabenecNay
CahillAyePalmesanoNay
AubryAyeByrneAye
CusickAyeAshbyAye
BenedettoAye
WeprinAye
RamosAye
BraunsteinAye
McDonaldAye
RozicAye
DinowitzAye
JoynerAye
MagnarelliAye
ZebrowskiAye
BronsonAye
DilanAye
SeawrightAye
HyndmanAye
WalkerAye

RULES Chair:Heastie DATE:03/28/2022AYE/NAY:19/8 Action: Favorable
HeastieExcusedBarclayNay
GottfriedAyeHawleyNay
NolanExcusedGiglioNay
WeinsteinAyeBlankenbushNay
PretlowAyeNorrisNay
CookAyeMontesanoNay
GlickExcusedRaNay
AubryAyeBrabenecNay
EnglebrightAye
DinowitzAye
ColtonAye
MagnarelliAye
PerryExcused
PaulinAye
Peoples-StokesAye
BenedettoAye
LavineAye
LupardoAye
ZebrowskiAye
ThieleAye
BraunsteinAye
DickensAye
DavilaAye

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A06938 Floor Votes:

DATE:03/28/2022Assembly Vote  YEA/NAY: 106/41
AbbateYColtonYGalefYLalorNOPaulinYSmithY
AbinantiYConradYGallagherYLavineYPeoples-StokesYSmullenNO
AndersonYCookYGallahanNOLawlerNOPerryYSolagesY
AngelinoNOCruzYGandolfoNOLemondesNOPheffer AmatoNOSteckY
AshbyYCusickYGibbsYLucasYPretlowYSternY
AubryYCymbrowitzYGiglio JANOLunsfordYQuartERStirpeY
BarclayNODarlingYGiglio JMNOLupardoYRaNOTagueNO
BarnwellYDavilaYGlickYMagnarelliYRajkumarYTannousisNO
BarrettYDe Los SantosYGonzalez-RojasYMamdaniYRamosYTapiaY
BenedettoYDeStefanoNOGoodellNOManktelowNOReillyNOTaylorY
BichotteYDickensYGottfriedYMcDonaldYReyesYThieleY
BlankenbushNODilanYGriffinYMcDonoughNORivera J YVanelY
BrabenecNODinowitzYGuntherYMcMahonYRivera JDYWalczykNO
BraunsteinYDiPietroNOHawleyNOMeeksYRosenthal D YWalkerY
BronsonYDursoNOHevesiYMikulinNORosenthal L YWallaceY
BrownNOEichensteinYHunterYMillerNORozicYWalshNO
BurdickYEnglebrightYHyndmanYMitaynesYSalkaNOWeinsteinY
BurgosYEpsteinYJacksonYMontesanoNOSantabarbaraYWeprinY
BurkeYFahyYJacobsonYMorinelloNOSayeghYWilliamsY
ButtenschonNOFallYJean-PierreYNiouYSchmittNOWoernerY
ByrneYFernandezYJensenNONolanYSeawrightYZebrowskiY
ByrnesNOFitzpatrickNOJonesYNorrisNOSeptimoYZinermanY
CahillYForrestYJoynerYO'DonnellYSillittiYMr. SpeakerY
CarrollYFriendNOKellesYOtisYSimonY
ClarkYFrontusYKimYPalmesanoNOSimpsonNO

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A06938 Memo:

NEW YORK STATE ASSEMBLY
MEMORANDUM IN SUPPORT OF LEGISLATION
submitted in accordance with Assembly Rule III, Sec 1(f)
 
BILL NUMBER: A6938B
 
SPONSOR: Epstein
  TITLE OF BILL: An act to amend the education law, in relation to prohibiting certain practices in the collection of student debt   PURPOSE OR GENERAL IDEA OF BILL: To ensure students have access to transcript data necessary to complete their degree and obtain employment, where such data is currently with- held due to outstanding debts owed to a postsecondary institution.   SUMMARY OF PROVISIONS: Section one amends the Education Law to: * Prohibit degree granting institutions and licensed private career schools from 1) withholding a student's transcript because of a debt to the school or institution, 2) conditioning the provision of a student's transcript on the payment of a debt to the institution or school, or 3) charging a higher fee or provide less favorable treatment of a tran- script request because a student owes a debt to the institution or school. * Ensure that the state does not bear the full cost of compliance by establishing remedies for students harmed by the withholding of a tran- script. Section two sets an effective date of 30 days after the bill becomes law.   JUSTIFICATION: Thousands of New York residents owe 'institutional debts'-debts owed by the student directly to a college or university, often for small balances tied to unpaid tuition, library fines, or even parking tickets. Today, postsecondary institutions across New York, including for-profit colleges, coding bootcamps, vocational schools, as well as public and private nonprofit universities, are currently withholding students' official transcripts because of outstanding institutional debts. As a result, students are prevented from re-enrolling in school to finish their degrees or qualify for careers in the fields for which they trained-simply because these students cannot provide official records of their education. According to preliminary research, within the SUNY system alone, there are 40,000 open institutional debt accounts. Other research on for-pro- fit schools and private colleges in the state indicate that tens of thousands additional New Yorkers are also currently being denied access to their official transcripts. Transcript withholding forces students into an unaffordable Catch-22: without their transcript, they cannot get a better job. And without a better job, they cannot pay off their debt to release their transcript. For decades, this practice has stymied the futures of New York residents. Each withheld transcript represents a student who was denied the opportunity to pursue a chosen career path, denied access to social and economic mobility through higher education, and ultimately denied access to the American Dream. As this state begins down the long road of helping its citizens recover from the economic fallout of the pandemic, it has the opportunity to change this dynamic. In fact, with this legislation, New York can improve the future economic prospects of its citizens. Importantly, this legislation does not prevent schools from collecting on past due debts. Instead it simply removes an ineffective and counter- productive barrier to students' ability to successfully repay that debt. Additionally, this legislation encourages students to complete their degrees by targeting College Access Challenge Grant funds to cover the remaining costs of tuition. Collectively, these measures will ensure all residents of New York have the right to a full and complete higher education.   PRIOR LEGISLATIVE HISTORY: New legislation.   FISCAL IMPLICATIONS: None.   EFFECTIVE DATE: This act shall take effect on the thirtieth day after it shall have become a law.
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A06938 Text:



 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                         6938--B
 
                               2021-2022 Regular Sessions
 
                   IN ASSEMBLY
 
                                     April 14, 2021
                                       ___________
 
        Introduced  by  M.  of  A. EPSTEIN, SEAWRIGHT, STECK, BURDICK, DINOWITZ,
          CLARK, MAGNARELLI, GONZALEZ-ROJAS, GOTTFRIED, KELLES, SIMON, ZINERMAN,
          COLTON -- read once and referred to the Committee on Higher  Education
          --  committee  discharged,  bill amended, ordered reprinted as amended
          and recommitted to said committee -- recommitted to the  Committee  on
          Higher Education in accordance with Assembly Rule 3, sec. 2 -- commit-
          tee  discharged, bill amended, ordered reprinted as amended and recom-
          mitted to said committee
 
        AN ACT to amend the education law, in relation  to  prohibiting  certain
          practices in the collection of student debt
 
          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:
 
     1    Section 1. The education law is amended by adding a new  article  13-C
     2  to read as follows:
     3                                ARTICLE 13-C
     4                     STUDENT DEBT; PROHIBITED PRACTICES
     5  Section 640. Student debt; prohibited practices.
     6    §  640.  Student  debt;  prohibited practices. 1.   No degree-granting
     7  institution or licensed private career school,  as  defined  by  section
     8  five thousand one of this chapter, shall:
     9    (a) withhold a transcript because a student owes a debt to such insti-
    10  tution or school;
    11    (b)  condition the provision of a transcript on a student's payment of
    12  a debt to such institution or school; or
    13    (c) charge a higher fee or provide less favorable treatment of a tran-
    14  script request because a student owes a  debt  to  such  institution  or
    15  school, provided however, that an institution or school may charge a fee
    16  for the issuance of a transcript.
    17    2.  In  addition  to  such penalties as may otherwise be applicable by
    18  law, the superintendent of financial  services  may,  after  notice  and
    19  hearing,  enjoin  such  transcript withholding practices and require any

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD08218-11-2

        A. 6938--B                          2
 
     1  institution or school found to be in violation of the provisions of this
     2  article to pay to the people of this state a penalty   of  five  hundred
     3  dollars for each violation.
     4    3. In addition to the right of action granted to the superintendent of
     5  financial  services  pursuant  to  this section, any person who has been
     6  injured by reason of any violation of this section may bring  an  action
     7  in  their  own  name  to enjoin such unlawful act or practice. The court
     8  may, in its discretion, award reasonable attorneys' fees to the prevail-
     9  ing plaintiff.
    10    § 2. This act shall take effect on the thirtieth day  after  it  shall
    11  have become a law.
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A06938 LFIN:

 NO LFIN
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A06938 Chamber Video/Transcript:

3-28-22Video (@ 00:14:26)Transcript pdf Transcript html
3-28-22Video (@ 02:13:53)Transcript pdf Transcript html
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