S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   5942
 
                        2021-2022 Regular Sessions
 
                           I N  A S S E M B L Y
 
                               March 2, 2021
                                ___________
 
 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:
   § 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
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD07355-01-1

 A. 5942                             2
 
 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
 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

 A. 5942                             3
 
 AMENDED  FORMULA AND SHALL PRESENT SUCH FORMULA TO THE GOVERNOR BY JANU-
 ARY FIRST, TWO THOUSAND TWENTY-TWO.
   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

 A. 5942                             4
 
 committee and the chair  of  the  assembly  ways  and  means  committee,
 including  an  accounting of full time equivalent enrollment in programs
 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]  ARTICLE.   Where the local sponsor or sponsors

 A. 5942                             5
 
 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 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
 ARTICLE  EIGHT  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  resol-
 ution  shall include the power to enter into financing transactions with
 the dormitory authority in accordance with the  provisions  of  [article
 eight  of]  title  four  OF ARTICLE EIGHT 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  agreement  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

 A. 5942                             6
 
 where  the board of higher education has been designated as the trustees
 of such colleges, shall be treated as a single community college.
   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

 A. 5942                             7
 
 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
 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-

 A. 5942                             8
 
 takings, from which may be paid, in advance of audit, properly  itemized
 and  verified  or  certified  bills  for materials, supplies or services
 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,

 A. 5942                             9
 
 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
 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

 A. 5942                            10
 
 such facility, elect to do so pursuant to the provisions of the dormito-
 ry authority act or subdivision ten of this section.
   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 ARTICLE EIGHT 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

 A. 5942                            11

 tuition,  expense,  fee,  charge, revenue, financial obligation or other
 amount. If fees are paid by such a discount, they shall be  post-audited
 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

 A. 5942                            12
 
 security procedure as defined in section 4-A-201 of the uniform  commer-
 cial code; and
   (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.
   §  2.  This  act  shall take effect immediately and shall apply to all
 school years commencing on and after July 1, 2022.