Bill S5376-2011

Extends effectiveness of provisions of chapter 434 of the laws of 1999, relating to deposit of excessive funds in proprietary vocational school supervision account

Extends the effectiveness of provisions of chapter 434 of the laws of 1999, relating to the tuition reimbursement account and deposit to the proprietary vocational school supervision account.

Details

Actions

  • Jun 13, 2011: SUBSTITUTED BY A7073
  • Jun 1, 2011: ADVANCED TO THIRD READING
  • May 25, 2011: 2ND REPORT CAL.
  • May 24, 2011: 1ST REPORT CAL.827
  • May 13, 2011: REFERRED TO HIGHER EDUCATION

Votes

VOTE: COMMITTEE VOTE: - Higher Education - May 24, 2011
Ayes (18): LaValle, Alesi, Flanagan, Griffo, Grisanti, Maziarz, Ritchie, Robach, Seward, Zeldin, Stavisky, Kennedy, Krueger, Oppenheimer, Parker, Rivera, Serrano, Carlucci

Memo

BILL NUMBER:S5376

TITLE OF BILL: An act to amend chapter 434 of the laws of 1999, amending the education law relating to licensed private schools and registered business schools, in relation to the effectiveness thereof

PURPOSE: The purpose of this bill is to extend the sunset provision of paragraph g of subdivision 10 of section 5007 of the education law until December 1, 2015.

SUMMARY OF PROVISIONS: This bill would amend section 23 of Chapter 566 of the laws of 2007 by extending the effective date of paragraph g of subdivision 10 of section 5007 of the education law until December 1, 2015.

JUSTIFICATION: Proprietary schools licensed by SED after June 30, 1993 are required to pay a "special assessment" that is deposited into the Tuition Reimbursement Account (TRA). SED uses these additional funds to refund student tuition if their schools close or do not properly provide the approved educational program, approved by SED's Bureau of Proprietary School Supervisions (BPSS).

This bill would extend a provision of law that allows TRA funds in excess of $1.5 million to be transferred into the proprietary vocational school supervision account, which helps fund the BPSS. These funds are used to assist SED in their oversight of the proprietary school sector.

The special assessment paid by proprietary sector schools amounts to 3/10 of 1 percent of a single school's gross tuition receipts. The amount of a special assessment payment is based upon such school's financial ability to pay and a school is allowed to make its payment over a five year period. Since 1993, the BPSS has paid out approximately $4.7 million in student tuition refunds from TRA. The special assessment revenue yields approximately $153,000 per year and has helped ensure that the TRA maintains a sufficient balance to meet all student obligations.

LEGISLATIVE HISTORY: New legislation.

FISCAL IMPLICATIONS: Undetermined.

EFFECTIVE DATE: Immediately.


Text

STATE OF NEW YORK ________________________________________________________________________ 5376 2011-2012 Regular Sessions IN SENATE May 13, 2011 ___________
Introduced by Sen. LAVALLE -- read twice and ordered printed, and when printed to be committed to the Committee on Higher Education AN ACT to amend chapter 434 of the laws of 1999, amending the education law relating to licensed private schools and registered business schools, in relation to the effectiveness thereof THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Section 23 of chapter 434 of the laws of 1999, amending the education law relating to licensed private schools and registered busi- ness schools, as amended by chapter 566 of the laws of 2007, is amended to read as follows: S 23. This act shall take effect immediately; provided, that the provisions of paragraph n of subdivision 2 of section 5001 of the educa- tion law, as added by section three of this act, shall expire and be deemed repealed September 1, 2000; paragraphs f and h of subdivision 10 of section 5007 of the education law, as added by section seventeen of this act shall expire and be deemed repealed December 1, 2007; and para- graph g of subdivision 10 of section 5007 of the education law, as added by section seventeen of this act, shall expire and be deemed repealed December 1, [2011] 2015. S 2. This act shall take effect immediately.

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