senate Bill S4075

Amended

Enacts the "community college region capital financing act of 2010"

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Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
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actions

  • 09 / Apr / 2009
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 06 / Jan / 2010
    • REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 20 / May / 2010
    • AMEND (T) AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • 20 / May / 2010
    • PRINT NUMBER 4075A
  • 30 / Jun / 2010
    • COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • 30 / Jun / 2010
    • ORDERED TO THIRD READING CAL.1378
  • 30 / Jun / 2010
    • SUBSTITUTED BY A8079A

Summary

Enacts the "community college region capital financing act of 2010".

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Bill Details

See Assembly Version of this Bill:
A8079
Versions:
S4075
S4075A
Legislative Cycle:
2009-2010
Law Section:
Public Authorities Law
Laws Affected:
Amd §1680, Pub Auth L; amd §§6304 & 6310, Ed L; amd §4, Chap 297 of 1985; amd §6, Chap 144 of 1996

Sponsor Memo

BILL NUMBER: S4075

TITLE OF BILL : An act to amend the public authorities law, the
education law, chapter 297 of the laws of 1985 authorizing the
transfer of sponsorship of Corning community college from the city
school district of the city of Corning to a community college region,
and chapter 144 of the laws of 1996 amending the education law
relating to the establishment of a community college region to sponsor
Jamestown community college and authorizing the transfer of
sponsorship of Jamestown community college from the city of Jamestown
to a community college region, in relation to capital financings of
community college regions


PURPOSE :
To permit community college regions to finance capital improvements
through the facilities of the Dormitory Authority of the State of New
York.

SUMMARY OF PROVISIONS :
Section 1 of the bill is the Short title. This act shall be known as
and may be cited as the "Community College Region Capital Financing
Act of 2009."

Section 2 of the bill amends the public authorities law to clarify
that a locally sponsored community college includes any community
college administered by a regional board of trustees included Coming
Community College Region and the Jamestown Community College Region.

Section 3 of the bill amends the public authorities law to permit a
community college region itself to be a participant in a financing
transaction by the Dormitory Authority of the State of New York.

Section 4 of the bill amends the public authorities law to clarify
that a "local sponsor" in the case of a community college region may
be the board of trustees itself for purposes of financing of capital
projects of the region.

Section 5 of the bill amends the education law to permit a community
college regional board of trustees as finance board of the region to
authorize the issuance of bonds, notes, or other evidence of
indebtedness including financing transactions with the Dormitory
Authority of the State of New York by the region itself. Section 5
also provides the method of authorization by adoption of a bond
resolution by two-thirds of the voting strength of the regional board
of trustees and upon receipt of the approvals of the governing boards
of each of the sponsors of the region, publication of a legal notice
of estoppel.

Section 6 of the bill amends the education law to permit a board of
trustees of a community college region itself to be the recipient of
certain state aid when the region is to act as the local sponsor for
purposes of financing a capital project.

Section 7 of the bill amends the education law to clarify that a board
of trustees of a community college region itself may also act as the
local sponsor for purposes of financing a capital project through the
auspices of the Dormitory Authority.

Section 8 of the bill amends Chapter 297 of the laws of nineteen
hundred eighty-five to permit the Coming Community College Regional
Board of Trustees to enter into capital financing transactions with
the Dormitory Authority of the State of New York.

Section 9 of the bill amends Chapter 144 of the laws of nineteen
hundred ninety-six to permit the Jamestown Community College Regional
Board of Trustees to enter into capital financing transactions with
the Dormitory Authority of the State of New York.

Section 10 of the bill conforms Section 6310 of the education law to
Sections 2, 3, 4, 5, 6, and 7 of the bill.

Section 11 of the bill is a severability provision.

Section 12 of the bill provides that it should take effect
immediately.

JUSTIFICATION : Each community college in the state has the authority
to have capital improvements financed either directly by the issuance
of debt by its sponsoring municipality or by the sponsor entering into
a financing agreement with the Dormitory Authority of the State of New
York. Except those community colleges which are sponsored by more than
one municipality, it is a single sponsoring municipality that must
take the necessary steps to arrange for a capital financing. Regional
community colleges, governed by a regional board of trustees, have
clear authority only for financing of their capital projects by their
sponsoring municipalities through the issuance of the debt of multiple
parties--either proportionately by each of the sponsors or on a joint
or several basis. A community college region itself (as compared to
its multiple sponsors) presently does not have clear authority to
effectuate a financing with the Dormitory Authority of the State of
New York. Although Section 1680(1) of the public authorities law lists
a "local sponsor" eligible of a community college as an "educational
institution" for Dormitory Authority financing, Section 6301(3) of the
education law reference therein defines "local sponsor" in an
ambiguous manner, leaving unclear whether only the sponsors of a
region jointly or the region itself acting through its board of
trustees are a party which may enter into financing arrangements with
the Dormitory Authority. The multiple sponsor nature of a community
college region makes it much more difficult for a community college
region to do capital financings in order to upgrade facilities, in
order to remain competitive and adapt to new skills training needed in
the 21st century. This complication has put community college regions
at an unintended disadvantage vis-a-vis all other community colleges
in the state.

LEGISLATIVE HISTORY :
New Bill.

FISCAL IMPLICATIONS :
None.

LOCAL FISCAL IMPLICATIONS :
None.

EFFECTIVE DATE :
Immediately.
view bill text
                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4075

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 9, 2009
                               ___________

Introduced by Sens. WINNER, YOUNG -- read twice and ordered printed, and
  when printed to be committed to the Committee on Corporations, Author-
  ities and Commissions

AN  ACT  to amend the public authorities law, the education law, chapter
  297 of the laws of 1985 authorizing the  transfer  of  sponsorship  of
  Corning community college from the city school district of the city of
  Corning  to a community college region, and chapter 144 of the laws of
  1996 amending the education law relating to  the  establishment  of  a
  community  college  region  to sponsor Jamestown community college and
  authorizing the transfer of sponsorship of Jamestown community college
  from the city of Jamestown to a community college region, in  relation
  to capital financings of community college regions

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Short title. This act shall be known as and may be cited as
the "community college region capital financing act of 2009".
  S 2. Subdivision 7 of section 1676 of the public authorities  law,  as
added by chapter 332 of the laws of 1975, is amended to read as follows:
  7. The term "locally sponsored community college" shall mean a college
established  and administered pursuant to article one hundred twenty-six
of the education law, INCLUDING  ESTABLISHED  PURSUANT  TO  CHAPTER  TWO
HUNDRED  NINETY-SEVEN  OF  THE  LAWS OF NINETEEN HUNDRED EIGHTY-FIVE, OR
ESTABLISHED PURSUANT TO CHAPTER ONE HUNDRED FORTY-FOUR OF  THE  LAWS  OF
NINETEEN HUNDRED NINETY-SIX;
  S  3.  Subdivision  1 of section 1680 of the public authorities law is
amended by adding a new undesignated paragraph to read as follows:
  A COMMUNITY COLLEGE REGION.
  S 4. Subdivision 9 of section 1680 of the public  authorities  law  is
amended by adding a new paragraph (h) to read as follows:
  (H)  FOR  PURPOSES  OF  THIS SUBDIVISION, AND SUBDIVISIONS TEN, ELEVEN
TWELVE, THIRTEEN, FOURTEEN, FIFTEEN, AND SIXTEEN OF  THIS  SECTION,  THE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD11049-01-9

S. 4075                             2

TERM  "LOCAL SPONSOR" SHALL ALTERNATELY INCLUDE A BOARD OF TRUSTEES OF A
COMMUNITY COLLEGE REGION, IN ADDITION TO,  AND  APART  FROM,  THE  LOCAL
SPONSORS REPRESENTED THEREIN.
  S 5. Paragraph c of subdivision 1 of section 6304 of the education law
is amended by adding a new undesignated paragraph to read as follows:
  NOTWITHSTANDING  ANY  PROVISION OF LAW TO THE CONTRARY, IN THE CASE OF
COMMUNITY COLLEGE REGIONS, A COMMUNITY COLLEGE REGIONAL BOARD  OF  TRUS-
TEES AS FINANCE BOARD OF THE REGION MAY AUTHORIZE THE ISSUANCE OF BONDS,
NOTES OR OTHER EVIDENCE OF INDEBTEDNESS OR THE EFFECTUATION OF A FINANC-
ING  TRANSACTION  BY  THE  COMMUNITY  COLLEGE  REGION WITH THE DORMITORY
AUTHORITY PURSUANT TO THE PROVISIONS OF ARTICLE EIGHT OF TITLE  FOUR  OF
THE  PUBLIC  AUTHORITIES LAW TO PROVIDE ALL OR ANY PORTION OF SUCH COSTS
FOR WHICH A PERIOD OF POSSIBLE USEFULNESS HAS BEEN  ESTABLISHED  IN  THE
LOCAL  FINANCE  LAW.    NOTWITHSTANDING  ANY OTHER PROVISION OF LAW, THE
COMMUNITY COLLEGE REGION SHALL ITSELF HAVE THE POWER TO BORROW MONEY FOR
SPECIFIC OBJECTS OR PURPOSES  OR  A  CLASS  OR  CLASSES  OF  OBJECTS  OR
PURPOSES  DESCRIBED  IN  SECTION  11.00  OF  THE  LOCAL  FINANCE  LAW BY
ADOPTION, BY TWO-THIRDS OF THE VOTING STRENGTH OF THE REGIONAL BOARD  OF
TRUSTEES  THEREOF, OF A BOND RESOLUTION AS DESCRIBED IN SECTION 32.00 OF
THE LOCAL FINANCE LAW AND SHALL  INCLUDE  THE  RECITATION  DESCRIBED  IN
SECTION  80.00  OF  THE  LOCAL  FINANCE  LAW. SAID BOND RESOLUTION SHALL
INCLUDE THE POWER TO ENTER INTO FINANCING TRANSACTIONS WITH THE DORMITO-
RY AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE EIGHT OF TITLE
FOUR OF THE PUBLIC AUTHORITIES LAW. UPON ADOPTION  AND  RECEIPT  OF  THE
APPROVALS  DESCRIBED  IN  SUBDIVISION TEN OF SECTION SIXTY-THREE HUNDRED
TEN OF THIS ARTICLE, THE COMMUNITY COLLEGE REGION SHALL PUBLISH A  LEGAL
NOTICE  OF  ESTOPPEL  AS DESCRIBED IN SECTION 81.00 OF THE LOCAL FINANCE
LAW, WHICH SHALL BE APPLICABLE TO SAID BOND RESOLUTION.
  S 6. Subdivision 8 of section 6304 of the education law is amended  by
adding a new paragraph c to read as follows:
  C.  FOR PURPOSES OF THIS SUBDIVISION, THE REFERENCE TO THE LOCAL SPON-
SOR OF A COMMUNITY COLLEGE MAY BE DEEMED, IN THE  CASE  OF  A  COMMUNITY
COLLEGE REGION, TO ALTERNATIVELY REFER TO THE COMMUNITY COLLEGE REGIONAL
BOARD OF TRUSTEES THEREOF.
  S 7. Subdivision 10 of section 6304 of the education law is amended by
adding a new paragraph c to read as follows:
  C.  A  COMMUNITY COLLEGE REGION SHALL HAVE FULL POWER AND AUTHORITY TO
FINANCE ALL OR A PORTION OF THE CAPITAL COSTS OF  A  REGIONAL  COMMUNITY
COLLEGE  FACILITY  PURSUANT  TO THE PROVISIONS OF ARTICLE EIGHT OF TITLE
FOUR OF THE PUBLIC AUTHORITIES LAW AND TO EXPEND THE PROCEEDS  THEREFROM
TO PAY SUCH COSTS.
  S  8.  Section  4  of  chapter 297 of the laws of 1985 authorizing the
transfer of sponsorship of  Corning  community  college  from  the  city
school district of the city of Corning to a community college region, is
amended by adding a new undesignated paragraph to read as follows:
  NOTWITHSTANDING  ANY  OTHER  PROVISION  OF  LAW, THE COMMUNITY COLLEGE
REGION SHALL HAVE THE POWER TO BORROW  MONEY  FOR  SPECIFIC  OBJECTS  OR
PURPOSES  OR  A  CLASS  OR  CLASSES  OF OBJECTS OR PURPOSES DESCRIBED IN
SECTION 11.00 OF THE LOCAL FINANCE LAW BY ADOPTION, BY TWO-THIRDS OF THE
VOTING STRENGTH OF THE REGIONAL BOARD OF TRUSTEES  THEREOF,  OF  A  BOND
RESOLUTION  AS  DESCRIBED  IN SECTION 32.00 OF THE LOCAL FINANCE LAW AND
SHALL INCLUDE THE RECITATION DESCRIBED IN SECTION  80.00  OF  THE  LOCAL
FINANCE  LAW. SAID BOND RESOLUTION SHALL INCLUDE THE POWER TO ENTER INTO
FINANCING TRANSACTIONS WITH THE DORMITORY AUTHORITY OF THE STATE OF  NEW
YORK IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE EIGHT OF TITLE FOUR OF
THE PUBLIC AUTHORITIES LAW.

S. 4075                             3

  S  9. Section 6 of chapter 144 of the laws of 1996 amending the educa-
tion law relating to the establishment of a community college region  to
sponsor  Jamestown  community  college  and  authorizing the transfer of
sponsorship of Jamestown community college from the city of Jamestown to
a  community  college  region,  is  amended by adding a new undesignated
paragraph to read as follows:
  NOTWITHSTANDING ANY OTHER PROVISION  OF  LAW,  THE  COMMUNITY  COLLEGE
REGION  SHALL  HAVE  THE  POWER  TO BORROW MONEY FOR SPECIFIC OBJECTS OR
PURPOSES OR A CLASS OR CLASSES  OF  OBJECTS  OR  PURPOSES  DESCRIBED  IN
SECTION 11.00 OF THE LOCAL FINANCE LAW BY ADOPTION, BY TWO-THIRDS OF THE
VOTING  STRENGTH  OF  THE  REGIONAL BOARD OF TRUSTEES THEREOF, OF A BOND
RESOLUTION AS DESCRIBED IN SECTION 32.00 OF THE LOCAL  FINANCE  LAW  AND
SHALL  INCLUDE  THE  RECITATION  DESCRIBED IN SECTION 80.00 OF THE LOCAL
FINANCE LAW. SAID BOND RESOLUTION SHALL INCLUDE THE POWER TO ENTER  INTO
FINANCING  TRANSACTIONS WITH THE DORMITORY AUTHORITY OF THE STATE OF NEW
YORK IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE EIGHT OF TITLE FOUR OF
THE PUBLIC AUTHORITIES LAW.
  S 10. Section 6310 of the education law is amended  by  adding  a  new
subdivision 10-a to read as follows:
  10-A.  NOTWITHSTANDING  THE  PROVISIONS  OF  SUBDIVISION  TEN  OF THIS
SECTION, UPON RECEIPT OF THE APPROVALS SET FORTH  IN  SUCH  SUBDIVISION,
THE BOARD OF TRUSTEES OF THE COMMUNITY COLLEGE REGION MAY FINANCE A DULY
AUTHORIZED SPECIFIC OBJECT OR PURPOSE OR CLASS OF OBJECTS OR PURPOSES BY
THE ISSUANCE OF BONDS, NOTES OR OTHER EVIDENCE OF INDEBTEDNESS OR PURSU-
ANT  TO A FINANCING TRANSACTION OF THE COMMUNITY COLLEGE REGION WITH THE
DORMITORY AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF  ARTICLE  EIGHT
OF TITLE FOUR OF THE PUBLIC AUTHORITIES LAW.
  S 11. If any clause, sentence, subdivision, paragraph, section or part
of  this  act  be  adjudged by any court of competent jurisdiction to be
invalid, such judgement shall  not  affect,  impair  or  invalidate  the
remainder thereof, but shall be confined in its operation to the clause,
sentence,  subdivision,  paragraph,  section  or  part  thereof directly
involved in the controversy in  which  such  judgment  shall  have  been
rendered.
  S 12. This act shall take effect immediately.

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