Prevents institutions from implementing contingencies on the receipt of state funding by preventing the use of language in agreements regarding mandatory arbitration, internal dispute processes, prohibiting class actions and prohibiting the disclosure of any information in the agreement to anyone.
STATE OF NEW YORK
________________________________________________________________________
4237--A
2021-2022 Regular Sessions
IN SENATE
February 3, 2021
___________
Introduced by Sen. STAVISKY -- read twice and ordered printed, and when
printed to be committed to the Committee on Higher Education --
committee discharged, bill amended, ordered reprinted as amended and
recommitted to said committee
AN ACT to amend the education law, in relation to preventing insti-
tutions from implementing contingencies on the receipt of state fund-
ing
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Subdivision 1 of section 665-a of the education law, as
2 amended by chapter 681 of the laws of 1986, is amended to read as
3 follows:
4 1. Participation agreement. (a) No institution may participate in the
5 general, academic or other award programs described in this article
6 unless it shall have entered into a written agreement with the corpo-
7 ration under which it shall be bound to comply with all laws and rules
8 applicable to such programs. Each participation agreement shall include
9 the following terms and conditions:
10 (i) An institution shall not, as a condition of any award or loan
11 pursuant to this article, require any student:
12 (1) submit to mandatory arbitration to resolve any matter thereafter
13 arising under such agreement prior to the commencement of any legal
14 action to enforce the provisions of such agreement;
15 (2) resolve a complaint relating to any award or loan through an
16 internal dispute process;
17 (3) waive any right, forum, or procedure for a violation of any
18 provision of this chapter, including the right to file and pursue a
19 civil action, class action or a complaint with, or otherwise notify, any
20 state agency, other public prosecutor, law enforcement agency, or any
21 court or other governmental entity of any alleged violation; and
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD02144-03-1
S. 4237--A 2
1 (4) be prohibited from disclosing, discussing, describing or comment-
2 ing upon the terms of the agreement or any violation thereof.
3 (ii) An institution shall not threaten, retaliate or discriminate
4 against any student eligible for such award or loan because of the
5 refusal by such student to consent to mandatory arbitration, to resolve
6 a complaint through an internal dispute process, to waive any right,
7 forum, or procedure for a violation of this chapter, including the right
8 to file and pursue a civil action, class action or a complaint with, or
9 otherwise notify, any state agency, other public prosecutor, law
10 enforcement agency, or any court or other governmental entity of any
11 alleged violation, or not to disclose, discuss, describe or comment upon
12 the terms of the agreement or any violation thereof.
13 (iii) For purposes of this paragraph, an agreement that requires a
14 student to opt out of a waiver or take any affirmative action in order
15 to preserve their rights is deemed a condition of any award or loan
16 pursuant to this article.
17 (iv) In addition to injunctive relief and any other remedies avail-
18 able, a court may award a prevailing plaintiff enforcing their rights
19 under this paragraph reasonable attorneys' fees.
20 (v) Nothing in this paragraph is intended to invalidate a written
21 arbitration agreement that is otherwise enforceable under the Federal
22 Arbitration Act.
23 (b) The participation agreement may contain such other terms and
24 conditions, consistent with such applicable laws, rules and procedures,
25 as the president may require in accordance with rules adopted for this
26 purpose by the board and shall be developed in consultation with the
27 commissioner of education.
28 (c) In accordance with rules adopted by the board for this purpose,
29 the president, may suspend, limit or terminate an institution's partic-
30 ipation in these programs in the event it shall be determined after a
31 hearing conducted in accordance with the state administrative procedure
32 act that the institution has violated any applicable laws, rules or
33 procedures provided for under the agreement in accordance with law and
34 the rules of the board.
35 § 2. This act shall take effect on the one hundred eightieth day after
36 it shall have become a law. Effective immediately, the addition, amend-
37 ment and/or repeal of any rule or regulation necessary for the implemen-
38 tation of this act on its effective date are authorized to be made and
39 completed on or before such effective date.
