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

                                  3779

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            January 27, 2015
                               ___________

Introduced by M. of A. LALOR -- Multi-Sponsored by -- M. of A. CAMARA --
  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

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00775-01-5
              

A. 3779                             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. 3779                             3

AMENDED  FORMULA AND SHALL PRESENT SUCH FORMULA TO THE GOVERNOR BY JANU-
ARY FIRST, TWO THOUSAND SIXTEEN.
  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. 3779                             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. Where the local sponsor or sponsors provide all or

A. 3779                             5

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. 3779                             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. 3779                             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. 3779                             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. 3779                             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. 3779                            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. 3779                            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. 3779                            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.
  S  2.  This  act  shall take effect immediately and shall apply to all
school years commencing on and after July 1, 2016.