2023 New York Laws › EDN - Education › Title 7 - State and City Colleges and Institutions-Cornell University › Article 126 - Community Colleges and State-Aided Four-Year Colleges › 6304 - Financing of Community Colleges.

§ 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.  Operating  costs
shall  not  include  any  payment  of  debt  service or rentals or other
payments by a local sponsor to the dormitory authority pursuant  to  any
lease,  sublease  or  other agreement entered into between the dormitory
authority and a local sponsor. Such aid for a college shall, however, be
for two-fifths of operating costs for any fiscal  year  of  the  college
during which it is implementing a program of full opportunity provided a
plan  has  been  approved  by  the state university trustees. Such plan,
which shall be 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
applicants  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
semester 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, 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
authority 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
budget.  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.
Operating 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.
Such  formula or the amended version thereof, upon enactment into law,
shall  replace  any  limitations  and  regulations  then  in   existence
concerning  the  financing of community colleges promulgated pursuant to
this section.
(iii) The state university  trustees  shall,  on  or  before  December
thirty-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
procedures,  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
fourteen and thereafter, each  program  that  confers  a  credit-bearing
certificate,   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
occupation  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,
placement 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
community  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 linkage report to the director of the budget, the chairs of
the senate and assembly higher education committees and the chair of the
senate  finance  committee  and the chair of the assembly ways and means
committee, including an accounting of full time equivalent enrollment in
programs  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 compliance 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
occupational  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  by  students considered academically at-risk due to
economic disadvantage or other factor of under-representation 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
responsibilities; and
(F)  The  number  of  students  engaged  in  career   and   employment
opportunities  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 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 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. 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 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.
Notwithstanding  any  provision of law to the contrary, in the case of
community  college  regions,  a  community  college  regional  board  of
trustees  as  finance  board of the region may authorize the issuance of
bonds, notes or other evidence of indebtedness or the effectuation of  a
financing transaction by the community college region with the dormitory
authority  pursuant  to the provisions of article eight of title four of
the public authorities law to provide all or any portion of  such  costs
for  which  a  period of possible usefulness has been established in the
local finance law. Notwithstanding  any  other  provision  of  law,  the
community college region shall itself have the power to borrow money for
specific  objects  or  purposes  or  a  class  or  classes of objects or
purposes described  in  section  11.00  of  the  local  finance  law  by
adoption,  by two-thirds of the voting strength of the regional board of
trustees thereof, of a bond resolution as described in section 32.00  of
the  local  finance  law  and  shall include the recitation described in
section 80.00 of the local  finance  law.  Said  bond  resolution  shall
include  the  power  to  enter  into  financing  transactions  with  the
dormitory authority in accordance with the provisions of  article  eight
of  title  four of the public authorities law. Upon adoption and receipt
of the approvals described in subdivision  ten  of  section  sixty-three
hundred  ten of this article, the community college region shall publish
a legal notice of estoppel as described in section 81.00  of  the  local
finance  law,  which  shall  be  applicable  to  said bond resolution. A
community college region is hereby authorized to pledge any revenues  or
other  monies to the payment of any obligations issued, or any financing
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
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
absolutely 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.
4. Where two or more local sponsors jointly establish  and  operate  a
community  college,  the  local  share  of  the  capital  costs shall be
apportioned 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
regulations by the state university trustees.
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
university 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 scholarships 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 benefits and the need for deferral until the
receipt of such benefits.
5-a. Notwithstanding the provisions of any general, special  or  local
law  to  the contrary, the fiscal year of a community college other than
in the city of New York  and  other  than  one  sponsored  by  a  school
district,  shall  begin with the first day of September and end with the
thirty-first day of August in each year. All of the  provisions  of  law
fixing  times  or  dates  within which or by which certain acts shall be
performed in relation to the preparation and adoption of the budget of a
city or a county, including but not limited to submission  of  a  budget
estimate, filing of a tentative budget, public hearing and adoption of a
budget,  shall  apply  to the budget of a community college sponsored by

such city or county but shall be correspondingly changed, as to time, to
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
appropriate 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
community 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
maintenance of a community college shall be credited  thereto  and  made
available 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
appropriation,  and  shall direct that payment of all appropriations for
maintenance 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 September 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
undertakings,  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 budgetary 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  reimburse  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
thereon,  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
municipality  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
facility, 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 therefor, 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
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 therefor, for each
twelve-month  period  beginning  on  the  next  succeeding  July  first,
provided,  however,  if  such  a local sponsor shall thereafter agree to
finance the costs of providing  all  or  part  of  a  community  college
facility  the state shall, instead, annually appropriate and pay to such
local sponsor an amount equal to that portion of  all  rentals  and  all
payments   due  and  payable  to  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
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.
(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
twenty-one  of  section  sixteen  hundred  seventy-eight  of  the public
authorities 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
subdivision 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
sponsor 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
dormitory authority to the  extent  of  amounts  owing  under  a  lease,
sublease or other agreement with the dormitory authority entered into by
such  local  sponsor with respect to such facility, and provided further
that any such local  sponsor  which  elected  to  refinance  the  entire
capital  cost  of  constructing a community college facility pursuant to
the provisions of this subdivision, may, at  the  time  it  enters  into
permanent  financing  of  such  facility, elect to do so pursuant to the
provisions of the dormitory 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 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
subdivision, 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
subdivision  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
community  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  conditions  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 conditions upon which the financing agency or card  issuer
shall  pay  to  such  community college the amount of tuition, expenses,
fees, charges, revenue, financial obligations or other amounts  paid  by
means  of  a  credit card pursuant to such agreement. Any such agreement
may provide for the payment by such community college to such  financing
agency  or  card  issuer  of  fees  for  the  services  provided by such
financing agency or card issuer pursuant to such agreement,  which  fees
may  consist  of  a  discount deducted from or payable in respect of the
amount of each such tuition, expense, fee,  charge,  revenue,  financial
obligation  or  other  amount. If fees are paid by such a discount, they
shall be post-audited by the officer or board of the  community  college
responsible for auditing 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.
Notwithstanding 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
offering 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
community  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
transaction.
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
obligations and other amounts.
g.  Under  circumstances  where  community  colleges   are   otherwise
authorized  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
electronic   or   wire  transfer  of  funds  from  those  accounts,  and
implementing a security procedure as defined in section 4-A-201  of  the
uniform commercial 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.