A school that transfers or assigns any interest totaling twenty-five percent (25%) or more of the total equity or assets of the school, is deemed a new school required to submit a new school application and obtain a new license pursuant to New York State Education Law Section 5001(7). The following guidelines apply to transfers of 25% or more of the total equity or assets of the school:
- A new school application may be submitted prior to the effective date of the transfer or assignment of any interest or assets.
- If a new school application is properly submitted on the effective date of a transfer, or before, the previous school license will remain in effect, allowing the new ownership to operate the school under the previous license, until a new school application is approved or denied, or until the previous license expires or is revoked, whichever occurs first. The new ownership is responsible for the conduct, performance, debts, and liabilities of the previous school license.
- If a new school application is not properly submitted on the effective date of the transfer, or before, the previous school license is revoked as of the date of the transfer, the school must cease operation, both previous and new ownership may be liable for issuing full tuition refunds to students enrolled at the time of the cessation of authorized operation, and the new ownership may not operate a new school unless or until the Bureau of Proprietary School Supervision (BPSS) approves its new school application.
To avoid any unlawful and unlicensed operation, cessation of operation, or disruption to student’s instruction, BPSS advises current school owners and prospective new ownership contact BPSS prior to any transfer of ownership, and strongly advises prospective new ownership to submit a new school application prior to the effective date of the transfer or assignment.
School owners and prospective school owners pursuing a transfer of ownership should contact BPSS@nysed.gov for more information.
Statutory and Regulatory Authority
New York State Education Law 5001(7); Commissioner’s Regulation 126.10(c)