School Ownership Change Fact Sheet

Effective December 15, 2012, Education Law § 5001(7), and § 126.10(c) of the Commissioner’s Regulations, require that any transfer or assignment of any interest of 25% or more of the total equity or assets of a licensed private career school* must be simultaneously accompanied by a new school application. This means that a licensed private career school whose equity or assets are being transferred or assigned shall be deemed a new school which is required, as an ordinary new school is required, to file a new school application and to comply with all of the requirements for new career schools seeking licensure.

Thus, if your school seeks to transfer or assign 25% or more of its equity or assets, by sale or otherwise, it must comply with all of the requirements for new schools seeking licensure, including the completion of a new school license application and payment of a new school license application fee. Further information about the requirements for new school licensure, and the new school licensing procedure, is available here:

In addition, for such “25% or more” transfers or assignments, you must also submit Form BPSS-1T (1212) with your new school application.

The requirement of filing a new school application upon the transfer or assignment of the equity or assets of a school in the amount of 25% or more does not apply to the transfer or assignment of the equity or assets of a school in the amount of less than 25%. However, such “24% or less” transfers or assignments are still considered transfers of school licenses pursuant to Education Law § 5001(7), and § 126.10(c) of the Commissioner’s Regulations, and thus require the Commissioner’s approval. Therefore, if your school is seeking to transfer or assign 24% or less of its equity or assets, your school must, contemporaneously with the transfer or assignment, follow the instructions

Failure by a school to comply with the provisions of the Education Law and Commissioner’s Regulations governing transfers or assignments of a licensed private career school’s equity or assets may result in the school being subject to disciplinary action.

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* Please note that these transfer and assignment provisions do not apply to ESL schools. ESL schools similarly seeking to transfer or assign any part of their equity or assets must comply with Commissioner’s regulation § 126.10(j)(2)(iii). Guidance on complying with that provision is available.