NY Educ L § 5004 (2021)
2021 New York Laws EDN - Education Title 6 - Special Schools and Instruction Article 101 - Licensed Private Career Schools and Certified English as a Second Language Schools 5004 - Private School Agent's Certificate.

§ 5004. Private  school agent's certificate. 1. a. No party may, for a consideration or remuneration procure, solicit or enroll any student for instruction in or given by any school within or without the state of New York, unless (i) the party is a salaried employee of the school and (ii) the party shall have secured a private school agent's  certificate  from the department pursuant to regulations of the commissioner.   b.  Upon  submission  of  a complete new application for licensure, an applicant may procure, solicit or enroll any  student  for  instruction; provided,  however,  that  such  applicant be in possession at all times during the  procurement,  solicitation  or  enrollment  processes  of  a temporary approval certificate which the commissioner shall issue within five days of receipt by mail or on the same day at designated offices. A school  shall  submit  such  application  for licensure on or before the first day of employment of such individual.   c. No consideration or remuneration shall be paid in the form of a fee per student enrolled by a private school agent except  pursuant  to  the following limitations:  (1)  a  school  may  pay  twenty-five  percent of the consideration or remuneration after the student has completed three weeks of the program;  (2)  a  school  may  pay  the  remainder  of  the   consideration   or remuneration after the student has completed eight weeks of the program;  (3)  the  total  amount  of the consideration or remuneration paid per student may not exceed one percent of the  annual  salary  paid  to  the agent.   d.  In  promulgating  regulations  in relation to the issuance of such certificates and the conduct of the holders of  such  certificates,  the commissioner shall give consideration to:  (1) good moral character of the candidate for such certificate;  (2)  the  use of ethical and fair practices in the presentation of the school's offerings; and  (3) whether the prospective agent has within five years of the date of the  application  violated  any  provision  of  this  article   or   the regulations of the commissioner adopted pursuant to this article.   2.  Instruction, as contemplated by this section, shall be any plan or method for teaching any subject or  subjects  in  any  form  or  manner, including correspondence or home study.   3.  a.  Exempted  from  the  requirements  of this section are persons acting solely for schools which are not required to be licensed  or  are specifically exempted from the licensing requirements of this article.   b.  (i)  Also  exempted  from  the  requirements of this section is an online education marketplace as defined in paragraph  c  of  subdivision one  of  section  five  thousand  one of this article, provided that the online education marketplace complies with each of the following:  (1) An online education marketplace shall  not  solicit,  procure,  or enroll  any  student for instruction in a licensed private career school or certified ESL school, as defined by the commissioner in regulations.  (2) Upon receipt of  any  monies  collected  by  an  online  education marketplace  from  a  prospective  student for payment of tuition and/or fees, the prospective student and the licensed private career school  or certified ESL school shall execute an enrollment agreement in accordance with  regulations of the commissioner. If an enrollment agreement is not executed, the monies shall  be  promptly  returned  to  the  prospective student  in  a  timeframe  and  manner prescribed by the commissioner in regulations.  (3) If an enrollment  agreement  is  executed,  the  online  education marketplace  shall  forward  the  monies  received  from the prospective student to the licensed private career school or certified ESL school in a timeframe and manner prescribed by the commissioner in regulations.  (4) An online education marketplace shall not receive from  a  student an amount greater than the tuition or fees to be charged by the licensed private  career school or certified ESL school to the student, and shall separately account for monies received from the prospective  student  to be  thereafter  transferred  to  a  licensed  private  career  school or certified ESL school in payment of tuition or fees, and any remuneration and/or compensation received by the online education marketplace from  a licensed  private  career  school or certified ESL school in payment for services rendered to such school by the  online  education  marketplace. The  licensed  private  career school or certified ESL school shall also separately account for tuition or fees transferred to the school  by  an online  education  marketplace  on  behalf  of  a  student in payment of tuition or fees, and payments made by the school to an online  education marketplace  for services rendered to the school by the online education marketplace.  (5) The commissioner may take disciplinary action  against  an  online education  marketplace  pursuant  to section five thousand three of this article, to the extent such provisions  are  deemed  applicable  by  the commissioner in regulations.  (6)  An  online  education  marketplace  is  prohibited  from offering advertising/marketing services to an unlicensed private career school or uncertified ESL school.  (ii) Any licensed private career school or certified ESL  school  that contracts  with  an  online  education marketplace shall comply with the provisions of this subdivision and the regulations of  the  commissioner or  they  may be subject to disciplinary action pursuant to section five thousand three of this article.   c. Persons who are paid to procure, solicit or enroll students on  the premises of schools required to be licensed shall not be exempt from the provisions of this section.   4.  Application  and  renewal application for a private school agent's certificate shall be filed on forms to be prescribed and provided by the commissioner. Said certificate shall be valid for three years  from  the date  of  issuance.  Certificates which have been renewed shall be valid for a period of three years from the expiration date of the  certificate which  has been renewed. Every applicant and renewal applicant shall pay to the department a fee of two hundred dollars.   4-a. Notwithstanding  the  provisions  of  subdivision  four  of  this section,  the  school  director  may  apply for a private school agent's certificate on forms to be prescribed and provided by  the  commissioner without incurring the agent application fee.   5.  No  recovery shall be had against any student or enrollee and full recovery shall be made on any contract for or  in  connection  with  any instruction  if  the  student  or  enrollee  was  procured, solicited or enrolled outside or on the school premises by a person paid to  procure, solicit or enroll students but not having a valid private school agent's certificate  pursuant to the provisions of this section at the time that the contract was negotiated or executed or the sale of  the  instruction was  made,  or  by  a  person  who holds such a certificate but has made fraudulent or improper claims. Each enrollment agreement shall  include, where  applicable  the  name  of  the  agent  responsible for procuring, soliciting or enrolling the student or enrollee.   6. The issuance of such a private school agent's certificate shall not be deemed to constitute approval of any  course  or  of  the  person  or institution offering, conducting or administering the same.   7. The commissioner, after giving to the certificate holder due notice and opportunity to be heard, may fine a private school agent, suspend or revoke  a  private school agent's certificate at any time for failure to  comply with the  provisions  of  the  law  or  the  regulations  of  the commissioner or for any other good cause.   8.  No  employer  of  a  private  school agent other than a school may indemnify, save harmless or otherwise reimburse any agent for the amount of any fines imposed  pursuant  to  this  section.  If  a  person  fined pursuant  to  this  section  can  demonstrate to the satisfaction of the commissioner that  the  action  for  which  the  fine  was  imposed  was undertaken  pursuant  to  explicit  instructions  from the employer, the employer shall idemnify, save harmless, and reimburse  that  person  for the  fine  and  shall  pay  to the commissioner an additional fine of an equal amount.