S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  9229

                          I N  A S S E M B L Y

                              April 2, 2014
                               ___________

Introduced  by M. of A. LALOR -- read once and referred to the Committee
  on Higher Education

AN ACT to amend the education law,  in  relation  to  the  financing  of
  community colleges

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

  Section 1. Section 6304 of the education law, as  amended  by  chapter
552  of the laws of 1984, subparagraph (i) of paragraph b of subdivision
1 as separately amended by chapter 762 of the laws of  1984,  paragraphs
b-1  and b-2 of subdivision 1 as added by section 1 of part D of chapter
57 of the laws of 2013, paragraph c of subdivision  1,  paragraph  b  of
subdivision  8, paragraph b of subdivision 9 and paragraph b of subdivi-
sion 10 as amended by chapter 295 of the laws of 1995, the closing para-
graph of paragraph c of subdivision 1, paragraph c of subdivision 8  and
paragraph  c  of  subdivision  10 as added by chapter 492 of the laws of
2010, subdivision 6 as amended by chapter  614  of  the  laws  of  1988,
subparagraph (iv) of paragraph a of subdivision 8 as added by section 31
of part II of chapter 59 of the laws of 2004 and subdivisions 11, 12 and
13  as  added  by chapter 702 of the laws of 2005, is amended to read as
follows:
  S 6304. Financing of community colleges. 1. The master plan, standards
and regulations  prescribed  by  the  state  university  trustees  shall
include  provisions  for financing the capital costs and operating costs
of such colleges in the following manner:
  a. State financial aid shall be [one-third of] the amount of operating
costs, as approved by the state university trustees MINUS ANY AMOUNT  OF
SUPPORT RECEIVED FROM LOCAL SPONSORS.  Operating costs shall not include
any  payment  of  debt  service  or rentals or other payments by a local
sponsor to the dormitory authority pursuant to any  lease,  sublease  or
other agreement entered into between the dormitory authority and a local
sponsor.  Such  aid  for  a college shall, however, be for two-fifths of
operating costs for any fiscal year of the college during  which  it  is
implementing  a  program  of  full  opportunity provided a plan has been
approved by the state university trustees. Such  plan,  which  shall  be

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

                                                           LBD14330-01-4

A. 9229                             2

submitted  by  the  college only after approval by the board of trustees
and the local sponsor or sponsors, shall
  (i)  establish  a  policy  of  offering  acceptance  in an appropriate
program of the college to all applicants  residing  in  the  sponsorship
area  who graduated from high school within the prior year and to appli-
cants who are high school graduates and who were  released  from  active
duty with the armed forces of the United States within the prior year;
  (ii) provide for full implementation of such policy by the fall semes-
ter  of  nineteen hundred seventy or, if the college demonstrates to the
state university trustees that full implementation by  such  time  would
not  be feasible and in the best interests of the college, provide for a
timetable to achieve such full implementation within  five  years  which
provides for substantial growth in registration each year;
  (iii)  make  provision  for  and  contain  adequate  assurances of the
expenditure of funds by the sponsor or sponsors at a level [pursuant  to
state  university regulations] AS DETERMINED BY THE SPONSOR OR SPONSORS,
at least that necessary to implement the plan;
  (iv) provide for adequate programs  of  remediation,  instruction  and
counselling  to  meet  the  needs  of  all  students to be served by the
college. The trustees may require  periodic  reports  or  certifications
from  colleges  which  have submitted plans which have been approved and
may, in appropriate cases, revoke such approval in case a college is  in
default of implementing its plan.
  b.  (i)  Operating costs shall not include any payment of debt service
or rentals or other payments by a local sponsor to the dormitory author-
ity pursuant to any lease, sublease  or  other  agreement  entered  into
between  the  dormitory  authority  and  a local sponsor. Such operating
costs shall be subject to such maximum limitations and joint regulations
as shall be prescribed by both the  city  university  trustees  and  the
state university trustees with the approval of the director of the budg-
et.  Such limitations shall be based upon maximum allowances per student
for each student in attendance in the case of  operating  costs,  or  in
accordance with such other factors as may be deemed appropriate. Operat-
ing  costs  shall  include  courses offered for the purpose of providing
occupational training or assistance to business  for  the  creation  and
retention  of job opportunities and for the improvement of productivity,
through contracts or arrangements between  a  community  college  and  a
business,  labor  organization,  or not-for-profit corporations or other
nongovernmental  organizations,  including  labor-management  committees
composed  of  labor, business and community leaders organized to promote
labor-management relations, productivity, the quality of  working  life,
industrial development, and retention of business in the community.
  (ii)  By  December  thirty-first,  nineteen hundred seventy-three, the
state university trustees shall develop a new formula for the  financing
of  the  operating costs of community colleges. Such formula may include
maximum limitations, regulations, and incentives to  achieve  compliance
with the code of standards and procedures for community colleges.
  The  state  university trustees shall present to the governor proposed
legislation incorporating such formula into law for consideration during
the nineteen hundred seventy-four regular session  of  the  legislature.
The  state university trustees shall also present a detailed analysis of
the fiscal impact of such a formula on the state and on  each  community
college  within  the  state.    THE UNIVERSITY TRUSTEES SHALL DEVELOP AN
AMENDED FORMULA AND SHALL PRESENT SUCH FORMULA TO THE GOVERNOR BY  JANU-
ARY FIRST, TWO THOUSAND FIFTEEN.

A. 9229                             3

  Such  formula or the amended version thereof, upon enactment into law,
shall replace any limitations and regulations then in existence concern-
ing the financing of community colleges  promulgated  pursuant  to  this
section.
  (iii) The state university trustees shall, on or before December thir-
ty-first  in each year, make a report to the governor and legislature as
to the status of community college programs and curricula  provided  for
in  article  one  hundred  twenty-six of this chapter. Such report shall
also contain recommendations for  any  revision  or  alteration  in  the
formula for financing the operating costs of community colleges.
  (iv)  The  state  university  trustees  shall  promulgate regulations,
effective the first day of July, nineteen  hundred  seventy-four,  which
shall  include a code of standards and procedures for the administration
and operation of community colleges. Such code of standards  and  proce-
dures, may include, but not be limited to, minimum and maximum standards
for academic curricula, minimum and maximum qualitative and quantitative
standards  for facilities, and standard administrative procedures, which
may include schedules and formats for the preparation and submission  of
annual  budgets  by the boards of trustees and the local sponsors to the
state university trustees, schedules for local  sponsors'  disbursements
to  the  community  colleges of their provided shares of operating costs
and systems of accounts for use by the boards of trustees and the  local
sponsors  of  the  community  colleges. Such regulations may supplement,
replace or amend any  limitations  and  regulations  then  in  existence
promulgated pursuant to this section.
  b-1. (i) Notwithstanding any provision of law to the contrary, for the
community  college fiscal year two thousand thirteen--two thousand four-
teen and thereafter, each program that confers a credit-bearing  certif-
icate,  an  associate of occupational studies degree, or an associate of
applied science degree, shall demonstrate that it is preparing  students
for current and future job opportunities by partnering with employers as
follows:
  (A) The program is a partnership between the community college and one
or more employers to train and employ students in a specific occupation;
  (B)  The  program has an advisory committee made up of members of whom
the majority are employers in the occupation or  sector,  or  a  related
sector,  or is otherwise advised by one or more employers in the occupa-
tion or sector, that employ or will employ workers in the  region  where
the  community  college  is located, and such committee serves to advise
the community college on the program's curriculum,  recruitment,  place-
ment  and  evaluation so that it remains up-to-date with employer needs;
or
  (C) The program is in a high-tech sector and is in demand for  current
or  projected  job  growth,  including  those  sectors identified by the
regional economic development council, and  is  advised  by  current  or
potential future employers in the occupation or sector.
  (ii)  On or before January first, two thousand fourteen for the commu-
nity college fiscal year two thousand thirteen--two  thousand  fourteen,
November  first,  two thousand fourteen for the community college fiscal
year two thousand fourteen--two thousand fifteen and November  first  of
each  community  college  fiscal  year  thereafter, the state university
trustees and the city university trustees shall each submit a job  link-
age  report  to the director of the budget, the chairs of the senate and
assembly higher education committees and the chair of the senate finance
committee and the chair  of  the  assembly  ways  and  means  committee,
including  an  accounting of full time equivalent enrollment in programs

A. 9229                             4

that  confer  credit-bearing  certificates,  associate  of  occupational
studies degrees, or associate of applied science degrees, in such a form
and  manner  as the director of the budget may require to verify compli-
ance with subparagraph (i) of this paragraph.
  b-2.  (i) Notwithstanding any provision of law to the contrary, within
amounts appropriated for incentive funding, the state university of  New
York  and  city  university  of  New York shall make awards to community
colleges from the next generation NY job linkage program incentive  fund
based  on  measures  of  student  success  for  all students enrolled in
programs that confer a credit-bearing certificate, an associate of occu-
pational studies degree, or an  associate  of  applied  science  degree,
including, but not limited to:
  (A)  The  number  of  students  who  are  employed following degree or
certificate completion and their wage gains, if any,  as  determined  by
the  department  of  labor,  which shall be given the greatest weighting
among all measures of student success;
  (B) The number of  degree  completions,  certificate  completions  and
student transfers to other institutions of higher education;
  (C)  The number of degree and certificate completions under clause (B)
of this [paragraph] SUBPARAGRAPH  by  students  considered  academically
at-risk  due to economic disadvantage or other factor of under-represen-
tation within the field of study; veterans; and the disabled;
  (D)  The  number  of  students  who  make  adequate  progress  towards
completion  of  a  degree  or certificate, which may include accelerated
completion of a developmental education program;
  (E) The number of degree completions in innovative  programs  designed
to  enable students to balance school, work and other personal responsi-
bilities; and
  (F) The number of students engaged in career and  employment  opportu-
nities  including  apprenticeships,  cooperative  education  programs or
other paid work experience that is an integral part  of  their  academic
program.
  (ii)  Awards  shall  be  made on a pro-rata basis in accordance with a
methodology and in a form and manner developed by the  director  of  the
budget, in consultation with the state university and city university.
  (iii) On or before December first of each year, or an alternative date
as  determined  by  the  director of the budget in consultation with the
state university and city university, the state university trustees  and
the  city  university  trustees shall each submit a plan for approval by
the director of the budget to allocate amounts available  for  the  next
generation NY job linkage program incentive fund in accordance with this
paragraph.
  c. The local sponsor or sponsors shall provide [one-half of] A PORTION
OF  the amount of the capital costs, or so much as may be necessary, and
[one-third or], in the case of a college implementing a program of  full
opportunity  for  local  residents,  [four-fifteenths]  A PORTION of the
operating costs IN AN AMOUNT AS DETERMINED BY THE LOCAL SPONSOR,  or  so
much  as  may  be  necessary, by appropriations from general revenues or
from funds derived from special tax levies earmarked in  part  or  whole
for  such purposes, by the use of gifts of money or, with the consent of
the state university trustees, by the use of property, gifts of property
or by the furnishing of services or, where a community college region is
the local sponsor, in the manner provided by section sixty-three hundred
ten of this chapter. Where the local sponsor or sponsors provide all  or
a portion of its or their share of capital or operating costs in real or
personal  property  or  in  services, the valuation of such property and

A. 9229                             5

services for the purpose of determining the amount of state aid shall be
made by the state university trustees with the approval of the  director
of  the  budget.  Local  sponsors  and, in the case of community college
regions, any county, city or school district which has appointed members
to  a  community  college  regional  board of trustees may authorize the
issuance of bonds or notes pursuant  to  the  provisions  of  the  local
finance law to provide any portion or all of its requisite share of such
costs  for which a period of probable usefulness has been established in
the local finance law. Where a county or city is the local sponsor of  a
community  college,  or appoints members to a community college regional
board of trustees, the expenditures  of  the  county  or  city  for  the
college,  or  community college region, shall be a purpose of the county
or city provided, however, that taxes to pay the local  sponsor's  share
of  operating  costs,  or  the operating shares of the community college
region charged to the county, may be charged  back  to  the  cities  and
towns  in  the  county in proportion to the number of students attending
the community college each term who were residents of each such city  or
town at the beginning of such term.
  C-1. Notwithstanding any provision of law to the contrary, in the case
of  community  college  regions,  a  community college regional board of
trustees as finance board of the region may authorize  the  issuance  of
bonds,  notes or other evidence of indebtedness or the effectuation of a
financing 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.  A  community
college  region  is  hereby  authorized  to pledge any revenues or other
monies to the payment of any obligations issued, or any financing agree-
ment entered into with the dormitory authority.
  d. Tuition and fees charged students shall  be  fixed  so  as  not  to
exceed  in  the aggregate more than one-third of the amount of operating
costs of the community college.
  1-b. For the purpose of budgeting and  expending  funds  and  for  the
purpose of determining eligibility for state financial aid for operating
costs  pursuant to subdivision one of this section, subject to rules and
regulations of the state university trustees and  the  approval  of  the
director  of  the budget, the community colleges in the city of New York
sponsored by the board of higher education or by the city  of  New  York
where  the board of higher education has been designated as the trustees
of such colleges, shall be treated as a single community college.

A. 9229                             6

  2. Community colleges shall be empowered and authorized through  their
boards  of trustees, to accept gifts, grants, bequests and devises abso-
lutely or in trust for such purposes as may be appropriate or proper for
effectuating the programs and objectives of such colleges.
  3.  Nothing  herein  contained shall be construed to prevent any local
sponsor or sponsors from creating and operating community colleges which
exceed maximum cost limitations or allowances prescribed  by  the  state
university trustees, provided however, that the [excess] costs over such
prescribed limits or allowances shall be borne and paid for or otherwise
made  available  to or by such sponsors IN AN AMOUNT TO BE DETERMINED BY
THE LOCAL SPONSOR.
  4. Where two or more local sponsors jointly establish  and  operate  a
community  college, the local share of the capital costs shall be appor-
tioned among them according  to  [their  respective  equalized  assessed
valuations  or  such  other  factors  or  bases  as  may  be provided or
prescribed in the plans, standards and  regulations  prescribed  by  the
state  university  trustees.  The  local share of the operating expenses
shall be apportioned among such joint sponsors in  accordance  with  the
number  of students who are residents of their respective areas, or such
other factors as may be prescribed in the  plans,  standards  and  regu-
lations by the state university trustees] AN AGREEMENT BETWEEN THE SPON-
SORS.
  5.  Any  community  college  may, with the consent and approval of its
local legislative body or board, community  college  regional  board  of
trustees, or other appropriate governing agency, and the state universi-
ty trustees, require lesser tuition charges or fees from persons who are
residents  of the sponsoring community, communities or community college
region [than the amount necessary in the aggregate to provide  one-third
of  the  operating  costs],  or  provide tuition to such persons without
charge, provided that the local legislative  body  or  board,  community
college regional board of trustees or other appropriate governing agency
appropriates  sufficient  funds,  or sufficient funds are made available
from other sources  to  provide  the  amount  which  would  normally  be
provided  by such tuition and fees. Each community college shall provide
that upon request by a student who is an eligible veteran the payment of
tuition and fees, less the amounts payable for such purposes from schol-
arships or other financial assistance awarded said veteran  pursuant  to
article  thirteen  of  this  chapter, article one hundred thirty of this
chapter or any other community college, state or federal  financial  aid
program,  shall  be deferred in such amounts and until such times as the
several payments of veterans' benefits under the Veterans'  Readjustment
Benefit  Act  of l966, as amended, are received by the veteran, provided
that the veteran has filed a claim for such benefits and presents to the
community college proof of eligibility, extent of entitlement  to  bene-
fits and the need for deferral until the receipt of such benefits.
  5-a.  Notwithstanding  the provisions of any general, special or local
law to the contrary, the fiscal year of a community college  other  than
in  the  city  of  New  York  and  other  than one sponsored by a school
district, shall begin with the first day of September and end  with  the
thirty-first  day  of  August in each year. All of the provisions of law
fixing times or dates within which or by which  certain  acts  shall  be
performed in relation to the preparation and adoption of the budget of a
city  or  a  county, including but not limited to submission of a budget
estimate, filing of a tentative budget, public hearing and adoption of a
budget, shall apply to the budget of a community  college  sponsored  by
such city or county but shall be correspondingly changed, as to time, to

A. 9229                             7

relate  to the commencement of the fiscal year of the community college;
provided, however, that after the budget for the community college shall
have been adopted, the local legislative body or board or  other  appro-
priate governing body shall provide for the raising of taxes required by
such  budget,  without any decrease in amount, in the same manner and at
the same time prescribed by law for the annual levy of taxes by  or  for
the  city or county. All of the provisions of law fixing times and dates
within which or by which certain acts shall be performed in relation  to
the  preparation  and  adoption of the budget of a school district shall
apply to the budget  of  a  community  college  sponsored  by  a  school
district. The provisions of this subdivision shall not apply to communi-
ty college regions.
  5-b.  Moneys raised by taxation for maintenance of a community college
and moneys received from all other sources for purposes of the community
college, other than in the city of New York, shall be kept separate  and
distinct  from any other moneys of the sponsor or sponsors and shall not
be used for any other purpose. The amount of taxes  levied  for  mainte-
nance  of  a community college shall be credited thereto and made avail-
able therefor within the fiscal year  of  such  community  college.  The
provisions  of  this  subdivision  shall  not apply to community college
regions.
  6. The local legislative body or board, or other appropriate governing
agency, other than a community college regional board of trustees, shall
provide the local sponsor's share of the community college operating and
capital costs in conformance with such sponsor's annual budgetary appro-
priation, and shall direct that payment of all appropriations for  main-
tenance  of  the college be made to the board of trustees of the college
for expenditure by the board, subject to the  terms  and  conditions  of
such  appropriations  appearing  in  such budget and to such regulations
regarding the custody, deposit, audit and payment thereof as such  local
legislative  body  or  board, or other appropriate governing agency, may
deem proper to carry out the terms of  the  budget;  provided  that  any
local sponsor which, as of January first, nineteen hundred eighty-eight,
provided  for audit and payment of charges against the community college
in the same manner as it provides for other charges  against  the  local
sponsor, may continue to do so for a period not to extend beyond Septem-
ber first, nineteen hundred eighty-nine.
  Such  local  legislative body or board, or other appropriate governing
agency, shall authorize the board of trustees of the college to elect  a
treasurer,  establish  a  bank  account  or  accounts in the name of the
college and deposit therein moneys received or collected by the college,
including moneys appropriated and paid  by  the  local  sponsor,  moneys
received  from  tuition,  fees, charges, sales of products and services,
and from all other sources. The board of trustees of the college  shall,
subject  to  the  requirements  specified in or imposed pursuant to this
subdivision, authorize  the  treasurer  to  pay  all  proper  bills  and
accounts of the college, including salaries and wages, from funds in its
custody.  The  treasurer shall execute a bond or official undertaking to
the board of trustees of the college in such sum and with such  sureties
as  that  board  shall  require, the expense of which shall be a college
charge.
  The board of trustees of the college  similarly  shall  authorize  the
treasurer  to  establish and maintain petty cash funds, not in excess of
two hundred dollars each,  for  specified  college  purposes  or  under-
takings,  from which may be paid, in advance of audit, properly itemized
and verified or certified bills  for  materials,  supplies  or  services

A. 9229                             8

furnished  to  the college for the conduct of its affairs and upon terms
calling for the payment of cash to the vendor upon the delivery  of  any
such  materials or supplies or the rendering of any such services. Lists
of  all  expenditures made from such petty cash funds shall be presented
to the board of trustees at each regular meeting thereof, together  with
the  bills  supporting  such expenditures, for audit and the board shall
direct reimbursement of such petty cash funds from the appropriate budg-
etary item or items in an amount equal to the total of such bills  which
it  shall so audit and allow. Any of such bills or any portion of any of
such bills as shall be disallowed  upon  audit  shall  be  the  personal
responsibility  of the treasurer and such official shall forthwith reim-
burse such petty cash fund in the amount of such disallowances.
  The board of trustees of the college shall provide for periodic audits
of all accounts maintained at its  direction  and  render  such  reports
respecting  any  and all receipts and expenditures of the college as the
local legislative body or board, or other appropriate governing  agency,
may direct.
  7.  The  board  of  trustees  of the college, or the community college
regional board of trustees may require  any  bank  or  banker  in  which
community  college  moneys are on deposit or are to be deposited to file
with the board a surety bond payable to the college executed by a surety
company authorized to transact business in this state  and  securing  to
the  college the payment of such deposits and the agreed interest there-
on, if any. In lieu of a surety bond, the board  may  require  any  such
bank  or  banker to deposit with it outstanding unmatured obligations of
the United States of America, the state of New York, or of  any  munici-
pality  or college of the state of New York, as security for such moneys
so deposited; but such obligations shall be subject to the  approval  of
the  board  and  shall  be  deposited  in such place and held under such
conditions as the board  may  determine.  Every  depositary  of  college
moneys  is  hereby  authorized  and empowered to secure deposits of such
moneys as provided in this subdivision.
  8. a. The state shall, in addition to any  other  funds  that  may  be
appropriated  for assistance to community colleges, annually appropriate
and pay
  (i) to the local sponsor of each community college, except a community
college where the local sponsor has entered into an agreement  with  the
dormitory authority to finance and construct a community college facili-
ty, an amount equal to the aggregate of all rentals and all payments due
and  payable to the dormitory authority pursuant to any lease, sublease,
or other agreement entered into between the dormitory authority and such
local sponsor, whether or not such local sponsor shall be liable  there-
for,  for each twelve-month period beginning on the next succeeding July
first, and
  (ii) to the local sponsor of each community college  where  the  local
sponsor  has  entered  into an agreement with the dormitory authority to
finance and construct a community college facility, an amount  equal  to
one-half of all rentals and all payments due and payable to the dormito-
ry authority pursuant to any lease, sublease, or other agreement entered
into  between the dormitory authority and such local sponsor, whether or
not such local sponsor shall be liable therefor, for  each  twelve-month
period  beginning  on the next succeeding July first, provided, however,
if such a local sponsor shall thereafter agree to finance the  costs  of
providing  all  or part of a community college facility the state shall,
instead, annually appropriate and pay to such local  sponsor  an  amount
equal to that portion of all rentals and all payments due and payable to

A. 9229                             9

the  dormitory authority during the twelve-month period beginning on the
next succeeding July first pursuant to  any  lease,  sublease  or  other
agreement  providing  for  such  financing  which portion represents the
state's  share  (one-half)  of the cost of each facility being financed,
whether or not the local sponsor shall be liable to pay such rentals and
payments, and
  (iii) to the  local  sponsor  of  each  community  college  which  has
financed  the  entire  capital  cost of constructing a community college
facility, an amount equal to one-half of  the  annual  debt  service  on
obligations issued by such local sponsor for the purpose of constructing
such facility. No local sponsor of a community college shall be eligible
for  assistance pursuant to the provisions of this paragraph unless: (a)
a first instance appropriation has been enacted into state law prior  to
the  commencement  of  construction;  and  (b) the state comptroller has
approved the interest rate of any and all  obligations  issued  by  such
local  sponsor after July twenty-fourth, nineteen hundred seventy-six to
finance the cost of such facility prior to the issuance  of  such  obli-
gations;  and  (c)  all  contracts for the construction of such facility
entered into by such local sponsor after  July  twenty-fourth,  nineteen
hundred  seventy-six  have  been  approved by the director of the budget
prior to the awarding of such contracts.
  (iv) notwithstanding any other provision  of  this  paragraph  to  the
contrary,  if  the  dormitory  authority and the state university of New
York shall have entered into an agreement pursuant to subdivision  twen-
ty-one  of  section sixteen hundred seventy-eight of the public authori-
ties law and paragraph x of subdivision two  of  section  three  hundred
fifty-five  of  this chapter, the amounts otherwise payable to the local
sponsors of the community colleges  pursuant  to  this  subparagraph  on
account of the state's share of the cost of each facility being financed
shall  be payable to the dormitory authority in accordance with subdivi-
sion five of section ninety-seven-p of the state finance law.
  b. For the purposes of this subdivision, all references to  the  local
sponsor of a community college shall be deemed, in the case of community
college  regions, to refer to those counties, cities or school districts
which have appointed members to a community college  regional  board  of
trustees.
  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.
  9. a. Where construction of a community college facility has commenced
pursuant  to the provisions of a lease, sublease or other agreement with
the dormitory authority or prior to July twenty-fourth, nineteen hundred
seventy-six, the local sponsor of such community college  may  elect  to
finance  the  entire capital cost of constructing such facility pursuant
to the provisions of subdivision ten of this section, provided, however,
that the proceeds of obligations issued by such local sponsor to finance
the capital cost of constructing such facility may be paid to the dormi-
tory authority to the extent of amounts owing under a lease, sublease or
other agreement with the dormitory authority entered into by such  local
sponsor  with  respect  to  such facility, and provided further that any
such local sponsor which elected to refinance the entire capital cost of
constructing a community college facility pursuant to the provisions  of
this subdivision, may, at the time it enters into permanent financing of
such facility, elect to do so pursuant to the provisions of the dormito-
ry authority act or subdivision ten of this section.

A. 9229                            10

  b.  For  the purposes of this subdivision, all references to the local
sponsor of a community college shall be deemed, in the case of community
college regions, to refer to those counties, cities or school  districts
which  have  appointed  members to a community college regional board of
trustees.
  10. a. Each local sponsor of a community college shall have full power
and  authority  to  finance  all  or a portion of the capital costs of a
community college facility pursuant  to  the  provisions  of  the  local
finance law and to expend the proceeds therefrom to pay such costs.
  b.  For  the  purposes of this subdivision, the reference to the local
sponsor of a community college shall be deemed, in the case of community
college regions, to refer to those counties, cities or school  districts
which  have  appointed  members to a community college regional board of
trustees.
  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.
  11. a. The following terms, when used or referred to in this  subdivi-
sion, shall have the following meaning:
  (i)  "Credit  card"  means any credit card, credit plate, charge card,
charge plate, courtesy card,  debit  card,  other  identification  card,
value  transfer  device  as  defined  by the state comptroller or device
issued by a person to another person which may be used to obtain a  cash
advance  or  a  loan  or  credit,  or  to  purchase or lease property or
services on the credit of the person issuing the credit card or a person
who has agreed with the issuer to pay obligations arising from  the  use
of a credit card issued to another person.
  (ii)  "Card  issuer"  means an issuer of a credit card, charge card or
other value transfer device.
  (iii) "Financing agency" means any agency defined as such in  subdivi-
sion eighteen of section four hundred one of the personal property law.
  (iv)  "Person"  means  an  individual, partnership, corporation or any
other legal or commercial entity.
  b. The board of trustees of any community college  may  determine,  by
resolution, that it is in the public interest to authorize such communi-
ty  college to enter into agreements with one or more financing agencies
or card issuers to provide for the acceptance, by such officers  of  the
community  college as may be designated pursuant to this subdivision, of
credit cards as a means of payment of tuition, expenses, fees,  charges,
revenue,  financial obligations or other amounts owed by students to the
community college. Any such agreement shall govern the terms and  condi-
tions  upon  which  a  credit  card  proffered  as a means of payment of
tuition, expenses, fees,  charges,  revenue,  financial  obligations  or
other amounts shall be accepted or declined and the manner in and condi-
tions  upon  which the financing agency or card issuer shall pay to such
community college the amount of tuition, expenses, fees, charges, reven-
ue, financial obligations or other amounts paid by  means  of  a  credit
card  pursuant to such agreement. Any such agreement may provide for the
payment by such community college  to  such  financing  agency  or  card
issuer  of  fees  for  the services provided by such financing agency or
card issuer pursuant to such agreement, which  fees  may  consist  of  a
discount  deducted from or payable in respect of the amount of each such
tuition, expense, fee, charge, revenue, financial  obligation  or  other
amount.  If fees are paid by such a discount, they shall be post-audited

A. 9229                            11

by the officer or board of the community college responsible for  audit-
ing claims against the community college.
  c.  Any  community  college which has entered into an agreement with a
financing agency or card issuer as authorized by  this  subdivision  may
accept  credit  cards  as a means of payment of tuition, expenses, fees,
charges, revenue, financial obligations or other amounts, as provided in
such agreement and may pay such fees as are specified in such  agreement
to such financing agency or card issuer in consideration of the services
rendered  by  such financing agency or card issuer thereunder.  Notwith-
standing any other provision of law to the contrary,  it  shall  be  the
option  of the board of trustees of the community college to require, as
a condition of accepting payment by credit card, that such person offer-
ing payment by credit or charge card pay a service fee to the  community
college  not  exceeding  costs  incurred  by  the  community  college in
connection with the credit or charge card payment transaction, including
any fee owed by the community college to the financing  agency  or  card
issuer arising from that transaction.
  d.  Contracts entered into pursuant to this subdivision between commu-
nity college and financing agencies or card issuers shall be awarded  in
accordance  with  the  community college's written internal policies and
procedures governing procurements.
  e. The underlying debt,  lien,  obligation,  bill,  account  or  other
amount owed by the student to the community college for which payment by
credit  card is accepted by the community college shall not be expunged,
cancelled, released, discharged or satisfied, and any receipt  or  other
evidence  of  payment  shall  be deemed conditional, until the community
college has received final and unconditional payment of the full  amount
due from the financing agency or card issuer for such credit card trans-
action.
  f.  The  board  of trustees, in enacting a resolution pursuant to this
subdivision, shall designate which of its  officers,  charged  with  the
duty  of  collecting  or  receiving  moneys  on  behalf of the community
college, shall be authorized to  accept  credit  cards  as  a  means  of
payment  of  tuition,  expenses, fees, charges, revenue, financial obli-
gations and other amounts.
  g. Under circumstances where community colleges are otherwise  author-
ized  by  law to contract for the collection of tuition, expenses, fees,
charges, revenue, financial obligations or other amounts, such  contract
shall provide that the contractor accept credit cards as a mechanism for
payment.
  12.  a.  Notwithstanding  any  other  law to the contrary, whenever an
officer of a community college is authorized pursuant to law to disburse
or transfer on behalf of the community college funds in the  custody  of
the  officer,  that  officer shall be authorized to disburse or transfer
such funds by means of electronic or wire  transfer.  Such  disbursement
shall be otherwise subject to applicable laws, provided that:
  (i)  the board of trustees of the community college has entered into a
written agreement with the bank or trust company  in  which  such  funds
have  been deposited, prescribing the manner in which electronic or wire
transfer of such funds shall be accomplished, identifying by number  and
name those accounts from which electronic or wire transfers may be made,
identifying  which officer or officers are authorized to order the elec-
tronic or wire transfer of funds from those accounts, and implementing a
security procedure as defined in section 4-A-201 of the uniform  commer-
cial code; and

A. 9229                            12

  (ii)  the  bank or trust company processing the transfer shall provide
to the officer ordering the electronic or wire transfer of funds written
confirmation of each such transaction no later  than  the  business  day
following the day on which the funds are transmitted.
  b.  It  shall  be  the  duty of the board of trustees of the community
college to adopt a system of internal controls for the documentation and
reporting of all transfers or disbursements  of  funds  accomplished  by
electronic or wire transfer.
  13.  a.  The board of trustees of any community college may determine,
by resolution, that it is in the  public  interest  and  authorize  such
community  college  to  provide for the acceptance of tuition, expenses,
fees, charges, revenue, financial obligations or  other  amounts  via  a
community college internet website. However, submission via the internet
may  not  be  required as the sole method for the collection of tuition,
expenses, fees, charges  and  other  amounts.  Such  payments  shall  be
accepted  via  the  internet  in  a manner and condition defined by such
community college. Any method used to receive  internet  payments  shall
comply  with  article  one of the state technology law and any rules and
regulations promulgated and guidelines developed thereunder  and,  at  a
minimum must:
  (i) authenticate the identity of the sender; and
  (ii) ensure the security of the information transmitted.
  b.  Payments received via the internet shall be considered received by
the appropriate officer and paid by the payor at the time  the  internet
transaction is completed and sent by the payor.
  c.  The  underlying  debt,  lien,  obligation,  bill, account or other
amount owed by the student to the community college for which payment by
internet is accepted by the community college  shall  not  be  expunged,
cancelled,  released,  discharged or satisfied, and any receipt or other
evidence of payment shall be deemed  conditional,  until  the  community
college  has received final and unconditional payment of the full amount
due.
  d. The board of trustees, in enacting a resolution  pursuant  to  this
subdivision,  shall  designate  which  of its officers, charged with the
duty of collecting or  receiving  moneys  on  behalf  of  the  community
college, shall be authorized to accept such payments via the internet.
  S  2.  This  act  shall take effect immediately and shall apply to all
school years commencing on and after July 1, 2015.