S T A T E O F N E W Y O R K
________________________________________________________________________
2622--A
2017-2018 Regular Sessions
I N S E N A T E
January 13, 2017
___________
Introduced by Sens. LAVALLE, FUNKE, RITCHIE, SEWARD -- read twice and
ordered printed, and when printed to be committed to the Committee on
Higher Education -- recommitted to the Committee on Higher Education
in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill
amended, ordered reprinted as amended and recommitted to said commit-
tee
AN ACT to amend the education law, in relation to financing of community
colleges
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Paragraph c of subdivision 1 of section 6304 of the educa-
tion law, as amended by chapter 295 of the laws of 1995 and the closing
paragraph as added by chapter 492 of the laws of 2010, is amended to
read as follows:
c. The local sponsor or sponsors shall provide [one-half] TWENTY-FIVE
PERCENT of the amount of the COSTS OF ALTERATIONS AND IMPROVEMENTS TO
EXISTING FACILITIES FOR CAPITAL CRITICAL MAINTENANCE, OR SO MUCH AS MAY
BE NECESSARY, AND FORTY PERCENT OF ALL OTHER capital costs, or so much
as may be necessary, and one-third or, in the case of a college imple-
menting a program of full opportunity for local residents, four-fif-
teenths of the operating costs, 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 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
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08039-02-8
S. 2622--A 2
state university trustees with the approval of the director of the budg-
et. Local sponsors and, in the case of community college regions, any
county, city or school district which has appointed members to a commu-
nity 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 oper-
ating 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 commu-
nity college each term who were residents of each such city or town at
the beginning of such term.
Notwithstanding any provision of law to the contrary, in the case of
community college regions, a community college regional board of trus-
tees as finance board of the region may authorize the issuance of bonds,
notes or other evidence of indebtedness or the effectuation of a financ-
ing transaction by the community college region with the dormitory
authority pursuant to the provisions of [article eight of title four]
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] TITLE FOUR OF ARTICLE EIGHT of the public authori-
ties law. Upon adoption and receipt of the approvals described in subdi-
vision 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.
§ 2. Subparagraphs (ii) and (iii) of paragraph (a) of subdivision 8 of
section 6304 of the education law, as amended by chapter 552 of the laws
of 1984, are amended to read as follows:
(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] SEVENTY-FIVE PERCENT IN THE CASE OF ALTERATIONS AND IMPROVE-
MENTS TO EXISTING FACILITIES FOR CAPITAL CRITICAL MAINTENANCE, OR AS
MUCH AS MAY BE NECESSARY, AND SIXTY PERCENT 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
S. 2622--A 3
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 appro-
priate 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)]
(SEVENTY-FIVE PERCENT IN THE CASE OF ALTERATIONS AND IMPROVEMENTS TO
EXISTING FACILITIES FOR CAPITAL CRITICAL MAINTENANCE, OR AS MUCH AS MAY
BE NECESSARY, AND SIXTY PERCENT) of [the cost] ALL COSTS of each facili-
ty 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] SIXTY PERCENT of the annual debt
service on obligations issued by such local sponsor for the purpose of
constructing such facility, EXCEPT THAT FOR THE COST OF ALTERATIONS AND
IMPROVEMENTS TO EXISTING FACILITIES FOR CAPITAL CRITICAL MAINTENANCE,
SUCH AMOUNT SHALL BE EQUAL TO SEVENTY-FIVE PERCENT. 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 obligations; 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.
§ 3. This act shall take effect April 1, 2019.
