STATE OF NEW YORK
________________________________________________________________________
5924--C
Cal. No. 132
2021-2022 Regular Sessions
IN SENATE
March 23, 2021
___________
Introduced by Sens. THOMAS, ADDABBO, BIAGGI, GOUNARDES, HINCHEY, JACK-
SON, MANNION, MAY, RAMOS -- read twice and ordered printed, and when
printed to be committed to the Committee on Consumer Protection --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee -- recommitted to the Committee on
Consumer Protection in accordance with Senate Rule 6, sec. 8 --
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 -- again amended and
ordered reprinted, retaining its place in the order of third reading
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.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD08218-12-2
S. 5924--C 2
1 2. In addition to such penalties as may otherwise be applicable by
2 law, the superintendent of financial services may, after notice and
3 hearing, enjoin such transcript withholding practices and require any
4 institution or school found to be in violation of the provisions of this
5 article to pay to the people of this state a penalty of five hundred
6 dollars for each violation.
7 3. In addition to the right of action granted to the superintendent of
8 financial services pursuant to this section, any person who has been
9 injured by reason of any violation of this section may bring an action
10 in their own name to enjoin such unlawful act or practice. The court
11 may, in its discretion, award reasonable attorneys' fees to the prevail-
12 ing plaintiff.
13 § 2. This act shall take effect on the thirtieth day after it shall
14 have become a law.