New York Consolidated Laws, Education Law - EDN § 5006. Teachout plans

1. A school may submit a teachout plan to the commissioner for approval pursuant to regulations established by the commissioner.  A teachout plan shall consist of a contract between a licensed private career school, with another school, hereinafter called the teachout school, so that in the event that the licensed private career school ceases instruction, the teachout school will provide the necessary instruction specified in a student's original enrollment agreement with the school ceasing instruction.  A teachout plan may employ more than one teachout school to provide instruction to students in the school ceasing instruction.  Schools under common ownership but having separate licenses may, subject to the approval of the commissioner, enter into teachout agreements.  A teachout plan may be contracted between the commissioner and one or more teachout schools in the event that the closing school is unable or unwilling to do so.

2. A teachout plan shall include the following provisions:  (a) the teachout school must offer courses of study that are substantially similar to those offered in the school ceasing instruction;

3. The licensed school shall provide to the teachout school and to the department the following information prior to closure:

4. The department will provide to the teachout school, immediately upon notification of a school closing, a copy of each approved curriculum that the closing school is presently offering.

5. The commissioner shall require all teachout schools to address the following issues:

6. The student shall not be subject to any costs beyond the total costs identified in the original enrollment agreement.

7. A student may decline to pursue instruction at the teachout school and may instead seek a refund pursuant to section five thousand seven of this article.