Relates to licensed private career schools with gross tuition of less than one hundred thousand dollars; authorizes certain licensed private career schools to file an unaudited financial statement under certain circumstances.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A2349
SPONSOR: Hyndman TITLE OF BILL:
An act to amend the education law, in relation to licensed private
career schools with gross tuition of less than one hundred thousand
dollars; and providing for the repeal of such provisions upon expiration
thereof
PURPOSE:
To allow licensed private career schools whose gross tuition is less
than $100,000 in a school fiscal year and which receives less than one
hundred thousand dollars in state and federal student financial aid in a
school fiscal year to file unaudited financial statements with the State
Education Department, provided that once every three years such licensed
private career school files an audited financial statement with the
State Education Department.
SUMMARY OF PROVISIONS:
Section 1: Amends Section 5001 of the Education Law to allow licensed
private career schools whose gross tuition is less than $100,000 in a
school fiscal year and which receives less than one hundred thousand
dollars in state and federal student financial aid in a school fiscal
year to file unaudited financial statements with the State Education
Department, provided that once every three years such licensed private
career school files an audited financial statement with the State Educa-
tion Department.
Section 2: sets forth the effective and repeal date.
JUSTIFICATION:
In recent years, the economy has affected numerous private career
schools. With declines in enrollment and increases in operational costs
and expenses, numerous schools in this sector have been financially
challenged; some even forced to permanently close. This legislation is
in efforts to help lessen the financial burden of the cost-of-business
schools grossing under $100,000 in tuition can furnish the commissioner
with unaudited financial statements. Audited financial statements can be
extremely costly, especially to schools struggling financially to oper-
ate.
FISCAL IMPACT:
None.
EFFECTIVE DATE:
This act shall take effect immediately.
STATE OF NEW YORK
________________________________________________________________________
2349
2023-2024 Regular Sessions
IN ASSEMBLY
January 25, 2023
___________
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 licensed private
career schools with gross tuition of less than one hundred thousand
dollars; and providing for the repeal of such provisions upon expira-
tion thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Paragraph e of subdivision 4 of section 5001 of the educa-
2 tion law is amended by adding a new subparagraph (iv) to read as
3 follows:
4 (iv) Schools whose gross tuition is less than one hundred thousand
5 dollars in a school fiscal year and which receive less than one hundred
6 thousand dollars in state and federal student financial aid in a school
7 fiscal year shall file with the commissioner an unaudited financial
8 statement in a format prescribed by the commissioner, provided, however,
9 that for such schools, audited financial statements shall be required
10 every three years, at minimum, with reviewed financial statements
11 allowed during the years where an audited financial statement is not
12 filed. Upon a determination by the commissioner that a school has
13 submitted false or inaccurate statements or that a significant, unsub-
14 stantiated decline in gross tuition has occurred, the commissioner may
15 require any such school to file an audited financial statement pursuant
16 to this paragraph even during years when reviewed statements would ordi-
17 narily be allowed.
18 § 2. This act shall take effect immediately and shall expire and be
19 deemed repealed 5 years after such date.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD06412-01-3
