§ 6304 — Financing of community colleges

New York § 6304

• Jurisdiction: New York
• Law EDN: Education
• Title 7: State and City Colleges and Institutions-cornell University
• Art. 126: Community Colleges and State-aided Four-year Colleges

Text

§ 6304. Financing of community colleges. 1. The master plan, standards\nand regulations prescribed by the state university trustees shall\ninclude provisions for financing the capital costs and operating costs\nof such colleges in the following manner:\n a. State financial aid shall be one-third of the amount of operating\ncosts, as approved by the state university trustees. Operating costs\nshall not include any payment of debt service or rentals or other\npayments by a local sponsor to the dormitory authority pursuant to any\nlease, sublease or other agreement entered into between the dormitory\nauthority and a local sponsor. Such aid for a college shall, however, be\nfor two-fifths of operating costs for any fiscal year of the college\nduring which it is implementing a program of full opportunity provided a\nplan has been approved by the state university trustees. Such plan,\nwhich shall be submitted by the college only after approval by the board\nof trustees and the local sponsor or sponsors, shall\n (i) establish a policy of offering acceptance in an appropriate\nprogram of the college to all applicants residing in the sponsorship\narea who graduated from high school within the prior year and to\napplicants who are high school graduates and who were released from\nactive duty with the armed forces of the United States within the prior\nyear;\n (ii) provide for full implementation of such policy by the fall\nsemester of nineteen hundred seventy or, if the college demonstrates to\nthe state university trustees that full implementation by such time\nwould not be feasible and in the best interests of the college, provide\nfor a timetable to achieve such full implementation within five years\nwhich provides for substantial growth in registration each year;\n (iii) make provision for and contain adequate assurances of the\nexpenditure of funds by the sponsor or sponsors at a level pursuant to\nstate university regulations, at least that necessary to implement the\nplan;\n (iv) provide for adequate programs of remediation, instruction and\ncounselling to meet the needs of all students to be served by the\ncollege. The trustees may require periodic reports or certifications\nfrom colleges which have submitted plans which have been approved and\nmay, in appropriate cases, revoke such approval in case a college is in\ndefault of implementing its plan.\n b. (i) Operating costs shall not include any payment of debt service\nor rentals or other payments by a local sponsor to the dormitory\nauthority pursuant to any lease, sublease or other agreement entered\ninto between the dormitory authority and a local sponsor. Such operating\ncosts shall be subject to such maximum limitations and joint regulations\nas shall be prescribed by both the city university trustees and the\nstate university trustees with the approval of the director of the\nbudget. Such limitations shall be based upon maximum allowances per\nstudent for each student in attendance in the case of operating costs,\nor in accordance with such other factors as may be deemed appropriate.\nOperating costs shall include courses offered for the purpose of\nproviding occupational training or assistance to business for the\ncreation and retention of job opportunities and for the improvement of\nproductivity, through contracts or arrangements between a community\ncollege and a business, labor organization, or not-for-profit\ncorporations or other nongovernmental organizations, including\nlabor-management committees composed of labor, business and community\nleaders organized to promote labor-management relations, productivity,\nthe quality of working life, industrial development, and retention of\nbusiness in the community.\n (ii) By December thirty-first, nineteen hundred seventy-three, the\nstate university trustees shall develop a new formula for the financing\nof the operating costs of community colleges. Such formula may include\nmaximum limitations, regulations, and incentives to achieve compliance\nwith the code of standards and procedures for community colleges.\n The state university trustees shall present to the governor proposed\nlegislation incorporating such formula into law for consideration during\nthe nineteen hundred seventy-four regular session of the legislature.\nThe state university trustees shall also present a detailed analysis of\nthe fiscal impact of such a formula on the state and on each community\ncollege within the state.\n Such formula or the amended version thereof, upon enactment into law,\nshall replace any limitations and regulations then in existence\nconcerning the financing of community colleges promulgated pursuant to\nthis section.\n (iii) The state university trustees shall, on or before December\nthirty-first in each year, make a report to the governor and legislature\nas to the status of community college programs and curricula provided\nfor in article one hundred twenty-six of this chapter. Such report shall\nalso contain recommendations for any revision or alteration in the\nformula for financing the operating costs of community colleges.\n (iv) The state university trustees shall promulgate regulations,\neffective the first day of July, nineteen hundred seventy-four, which\nshall include a code of standards and procedures for the administration\nand operation of community colleges. Such code of standards and\nprocedures, may include, but not be limited to, minimum and maximum\nstandards for academic curricula, minimum and maximum qualitative and\nquantitative standards for facilities, and standard administrative\nprocedures, which may include schedules and formats for the preparation\nand submission of annual budgets by the boards of trustees and the local\nsponsors to the state university trustees, schedules for local sponsors'\ndisbursements to the community colleges of their provided shares of\noperating costs and systems of accounts for use by the boards of\ntrustees and the local sponsors of the community colleges. Such\nregulations may supplement, replace or amend any limitations and\nregulations then in existence promulgated pursuant to this section.\n b-1. (i) Notwithstanding any provision of law to the contrary, for the\ncommunity college fiscal year two thousand thirteen--two thousand\nfourteen and thereafter, each program that confers a credit-bearing\ncertificate, an associate of occupational studies degree, or an\nassociate of applied science degree, shall demonstrate that it is\npreparing students for current and future job opportunities by\npartnering with employers as follows:\n (A) The program is a partnership between the community college and one\nor more employers to train and employ students in a specific occupation;\n (B) The program has an advisory committee made up of members of whom\nthe majority are employers in the occupation or sector, or a related\nsector, or is otherwise advised by one or more employers in the\noccupation or sector, that employ or will employ workers in the region\nwhere the community college is located, and such committee serves to\nadvise the community college on the program's curriculum, recruitment,\nplacement and evaluation so that it remains up-to-date with employer\nneeds; or\n (C) The program is in a high-tech sector and is in demand for current\nor projected job growth, including those sectors identified by the\nregional economic development council, and is advised by current or\npotential future employers in the occupation or sector.\n (ii) On or before January first, two thousand fourteen for the\ncommunity college fiscal year two thousand thirteen--two thousand\nfourteen, November first, two thousand fourteen for the community\ncollege fiscal year two thousand fourteen--two thousand fifteen and\nNovember first of each community college fiscal year thereafter, the\nstate university trustees and the city university trustees shall each\nsubmit a job linkage report to the director of the budget, the chairs of\nthe senate and assembly higher education committees and the chair of the\nsenate finance committee and the chair of the assembly ways and means\ncommittee, including an accounting of full time equivalent enrollment in\nprograms that confer credit-bearing certificates, associate of\noccupational studies degrees, or associate of applied science degrees,\nin such a form and manner as the director of the budget may require to\nverify compliance with subparagraph (i) of this paragraph.\n b-2. (i) Notwithstanding any provision of law to the contrary, within\namounts appropriated for incentive funding, the state university of New\nYork and city university of New York shall make awards to community\ncolleges from the next generation NY job linkage program incentive fund\nbased on measures of student success for all students enrolled in\nprograms that confer a credit-bearing certificate, an associate of\noccupational studies degree, or an associate of applied science degree,\nincluding, but not limited to:\n (A) The number of students who are employed following degree or\ncertificate completion and their wage gains, if any, as determined by\nthe department of labor, which shall be given the greatest weighting\namong all measures of student success;\n (B) The number of degree completions, certificate completions and\nstudent transfers to other institutions of higher education;\n (C) The number of degree and certificate completions under clause (B)\nof this paragraph by students considered academically at-risk due to\neconomic disadvantage or other factor of under-representation within the\nfield of study; veterans; and the disabled;\n (D) The number of students who make adequate progress towards\ncompletion of a degree or certificate, which may include accelerated\ncompletion of a developmental education program;\n (E) The number of degree completions in innovative programs designed\nto enable students to balance school, work and other personal\nresponsibilities; and\n (F) The number of students engaged in career and employment\nopportunities including apprenticeships, cooperative education programs\nor other paid work experience that is an integral part of their academic\nprogram.\n (ii) Awards shall be made on a pro-rata basis in accordance with a\nmethodology and in a form and manner developed by the director of the\nbudget, in consultation with the state university and city university.\n (iii) On or before December first of each year, or an alternative date\nas determined by the director of the budget in consultation with the\nstate university and city university, the state university trustees and\nthe city university trustees shall each submit a plan for approval by\nthe director of the budget to allocate amounts available for the next\ngeneration NY job linkage program incentive fund in accordance with this\nparagraph.\n c. The local sponsor or sponsors shall provide one-half of the amount\nof the capital costs, or so much as may be necessary, and one-third or,\nin the case of a college implementing a program of full opportunity for\nlocal residents, four-fifteenths of the operating costs, or so much as\nmay be necessary, by appropriations from general revenues or from funds\nderived from special tax levies earmarked in part or whole for such\npurposes, by the use of gifts of money or, with the consent of the state\nuniversity trustees, by the use of property, gifts of property or by the\nfurnishing of services or, where a community college region is the local\nsponsor, in the manner provided by section sixty-three hundred ten of\nthis chapter. Where the local sponsor or sponsors provide all or a\nportion of its or their share of capital or operating costs in real or\npersonal property or in services, the valuation of such property and\nservices for the purpose of determining the amount of state aid shall be\nmade by the state university trustees with the approval of the director\nof the budget. Local sponsors and, in the case of community college\nregions, any county, city or school district which has appointed members\nto a community college regional board of trustees may authorize the\nissuance of bonds or notes pursuant to the provisions of the local\nfinance law to provide any portion or all of its requisite share of such\ncosts for which a period of probable usefulness has been established in\nthe local finance law. Where a county or city is the local sponsor of a\ncommunity college, or appoints members to a community college regional\nboard of trustees, the expenditures of the county or city for the\ncollege, or community college region, shall be a purpose of the county\nor city provided, however, that taxes to pay the local sponsor's share\nof operating costs, or the operating shares of the community college\nregion charged to the county, may be charged back to the cities and\ntowns in the county in proportion to the number of students attending\nthe community college each term who were residents of each such city or\ntown at the beginning of such term.\n Notwithstanding any provision of law to the contrary, in the case of\ncommunity college regions, a community college regional board of\ntrustees as finance board of the region may authorize the issuance of\nbonds, notes or other evidence of indebtedness or the effectuation of a\nfinancing transaction by the community college region with the dormitory\nauthority pursuant to the provisions of article eight of title four of\nthe public authorities law to provide all or any portion of such costs\nfor which a period of possible usefulness has been established in the\nlocal finance law. Notwithstanding any other provision of law, the\ncommunity college region shall itself have the power to borrow money for\nspecific objects or purposes or a class or classes of objects or\npurposes described in section 11.00 of the local finance law by\nadoption, by two-thirds of the voting strength of the regional board of\ntrustees thereof, of a bond resolution as described in section 32.00 of\nthe local finance law and shall include the recitation described in\nsection 80.00 of the local finance law. Said bond resolution shall\ninclude the power to enter into financing transactions with the\ndormitory authority in accordance with the provisions of article eight\nof title four of the public authorities law. Upon adoption and receipt\nof the approvals described in subdivision ten of section sixty-three\nhundred ten of this article, the community college region shall publish\na legal notice of estoppel as described in section 81.00 of the local\nfinance law, which shall be applicable to said bond resolution. A\ncommunity college region is hereby authorized to pledge any revenues or\nother monies to the payment of any obligations issued, or any financing\nagreement entered into with the dormitory authority.\n d. Tuition and fees charged students shall be fixed so as not to\nexceed in the aggregate more than one-third of the amount of operating\ncosts of the community college.\n 1-b. For the purpose of budgeting and expending funds and for the\npurpose of determining eligibility for state financial aid for operating\ncosts pursuant to subdivision one of this section, subject to rules and\nregulations of the state university trustees and the approval of the\ndirector of the budget, the community colleges in the city of New York\nsponsored by the board of higher education or by the city of New York\nwhere the board of higher education has been designated as the trustees\nof such colleges, shall be treated as a single community college.\n 2. Community colleges shall be empowered and authorized through their\nboards of trustees, to accept gifts, grants, bequests and devises\nabsolutely or in trust for such purposes as may be appropriate or proper\nfor effectuating the programs and objectives of such colleges.\n 3. Nothing herein contained shall be construed to prevent any local\nsponsor or sponsors from creating and operating community colleges which\nexceed maximum cost limitations or allowances prescribed by the state\nuniversity trustees, provided however, that the excess costs over such\nprescribed limits or allowances shall be borne and paid for or otherwise\nmade available to or by such sponsors.\n 4. Where two or more local sponsors jointly establish and operate a\ncommunity college, the local share of the capital costs shall be\napportioned among them according to their respective equalized assessed\nvaluations or such other factors or bases as may be provided or\nprescribed in the plans, standards and regulations prescribed by the\nstate university trustees. The local share of the operating expenses\nshall be apportioned among such joint sponsors in accordance with the\nnumber of students who are residents of their respective areas, or such\nother factors as may be prescribed in the plans, standards and\nregulations by the state university trustees.\n 5. Any community college may, with the consent and approval of its\nlocal legislative body or board, community college regional board of\ntrustees, or other appropriate governing agency, and the state\nuniversity trustees, require lesser tuition charges or fees from persons\nwho are residents of the sponsoring community, communities or community\ncollege region than the amount necessary in the aggregate to provide\none-third of the operating costs, or provide tuition to such persons\nwithout charge, provided that the local legislative body or board,\ncommunity college regional board of trustees or other appropriate\ngoverning agency appropriates sufficient funds, or sufficient funds are\nmade available from other sources to provide the amount which would\nnormally be provided by such tuition and fees. Each community college\nshall provide that upon request by a student who is an eligible veteran\nthe payment of tuition and fees, less the amounts payable for such\npurposes from scholarships or other financial assistance awarded said\nveteran pursuant to article thirteen of this chapter, article one\nhundred thirty of this chapter or any other community college, state or\nfederal financial aid program, shall be deferred in such amounts and\nuntil such times as the several payments of veterans' benefits under the\nVeterans' Readjustment Benefit Act of l966, as amended, are received by\nthe veteran, provided that the veteran has filed a claim for such\nbenefits and presents to the community college proof of eligibility,\nextent of entitlement to benefits and the need for deferral until the\nreceipt of such benefits.\n 5-a. Notwithstanding the provisions of any general, special or local\nlaw to the contrary, the fiscal year of a community college other than\nin the city of New York and other than one sponsored by a school\ndistrict, shall begin with the first day of September and end with the\nthirty-first day of August in each year. All of the provisions of law\nfixing times or dates within which or by which certain acts shall be\nperformed in relation to the preparation and adoption of the budget of a\ncity or a county, including but not limited to submission of a budget\nestimate, filing of a tentative budget, public hearing and adoption of a\nbudget, shall apply to the budget of a community college sponsored by\nsuch city or county but shall be correspondingly changed, as to time, to\nrelate to the commencement of the fiscal year of the community college;\nprovided, however, that after the budget for the community college shall\nhave been adopted, the local legislative body or board or other\nappropriate governing body shall provide for the raising of taxes\nrequired by such budget, without any decrease in amount, in the same\nmanner and at the same time prescribed by law for the annual levy of\ntaxes by or for the city or county. All of the provisions of law fixing\ntimes and dates within which or by which certain acts shall be performed\nin relation to the preparation and adoption of the budget of a school\ndistrict shall apply to the budget of a community college sponsored by a\nschool district. The provisions of this subdivision shall not apply to\ncommunity college regions.\n 5-b. Moneys raised by taxation for maintenance of a community college\nand moneys received from all other sources for purposes of the community\ncollege, other than in the city of New York, shall be kept separate and\ndistinct from any other moneys of the sponsor or sponsors and shall not\nbe used for any other purpose. The amount of taxes levied for\nmaintenance of a community college shall be credited thereto and made\navailable therefor within the fiscal year of such community college. The\nprovisions of this subdivision shall not apply to community college\nregions.\n 6. The local legislative body or board, or other appropriate governing\nagency, other than a community college regional board of trustees, shall\nprovide the local sponsor's share of the community college operating and\ncapital costs in conformance with such sponsor's annual budgetary\nappropriation, and shall direct that payment of all appropriations for\nmaintenance of the college be made to the board of trustees of the\ncollege for expenditure by the board, subject to the terms and\nconditions of such appropriations appearing in such budget and to such\nregulations regarding the custody, deposit, audit and payment thereof as\nsuch local legislative body or board, or other appropriate governing\nagency, may deem proper to carry out the terms of the budget; provided\nthat any local sponsor which, as of January first, nineteen hundred\neighty-eight, provided for audit and payment of charges against the\ncommunity college in the same manner as it provides for other charges\nagainst the local sponsor, may continue to do so for a period not to\nextend beyond September first, nineteen hundred eighty-nine.\n Such local legislative body or board, or other appropriate governing\nagency, shall authorize the board of trustees of the college to elect a\ntreasurer, establish a bank account or accounts in the name of the\ncollege and deposit therein moneys received or collected by the college,\nincluding moneys appropriated and paid by the local sponsor, moneys\nreceived from tuition, fees, charges, sales of products and services,\nand from all other sources. The board of trustees of the college shall,\nsubject to the requirements specified in or imposed pursuant to this\nsubdivision, authorize the treasurer to pay all proper bills and\naccounts of the college, including salaries and wages, from funds in its\ncustody. The treasurer shall execute a bond or official undertaking to\nthe board of trustees of the college in such sum and with such sureties\nas that board shall require, the expense of which shall be a college\ncharge.\n The board of trustees of the college similarly shall authorize the\ntreasurer to establish and maintain petty cash funds, not in excess of\ntwo hundred dollars each, for specified college purposes or\nundertakings, from which may be paid, in advance of audit, properly\nitemized and verified or certified bills for materials, supplies or\nservices furnished to the college for the conduct of its affairs and\nupon terms calling for the payment of cash to the vendor upon the\ndelivery of any such materials or supplies or the rendering of any such\nservices. Lists of all expenditures made from such petty cash funds\nshall be presented to the board of trustees at each regular meeting\nthereof, together with the bills supporting such expenditures, for audit\nand the board shall direct reimbursement of such petty cash funds from\nthe appropriate budgetary item or items in an amount equal to the total\nof such bills which it shall so audit and allow. Any of such bills or\nany portion of any of such bills as shall be disallowed upon audit shall\nbe the personal responsibility of the treasurer and such official shall\nforthwith reimburse such petty cash fund in the amount of such\ndisallowances.\n The board of trustees of the college shall provide for periodic audits\nof all accounts maintained at its direction and render such reports\nrespecting any and all receipts and expenditures of the college as the\nlocal legislative body or board, or other appropriate governing agency,\nmay direct.\n 7. The board of trustees of the college, or the community college\nregional board of trustees may require any bank or banker in which\ncommunity college moneys are on deposit or are to be deposited to file\nwith the board a surety bond payable to the college executed by a surety\ncompany authorized to transact business in this state and securing to\nthe college the payment of such deposits and the agreed interest\nthereon, if any. In lieu of a surety bond, the board may require any\nsuch bank or banker to deposit with it outstanding unmatured obligations\nof the United States of America, the state of New York, or of any\nmunicipality or college of the state of New York, as security for such\nmoneys so deposited; but such obligations shall be subject to the\napproval of the board and shall be deposited in such place and held\nunder such conditions as the board may determine. Every depositary of\ncollege moneys is hereby authorized and empowered to secure deposits of\nsuch moneys as provided in this subdivision.\n 8. a. The state shall, in addition to any other funds that may be\nappropriated for assistance to community colleges, annually appropriate\nand pay\n (i) to the local sponsor of each community college, except a community\ncollege where the local sponsor has entered into an agreement with the\ndormitory authority to finance and construct a community college\nfacility, an amount equal to the aggregate of all rentals and all\npayments due and payable to the dormitory authority pursuant to any\nlease, sublease, or other agreement entered into between the dormitory\nauthority and such local sponsor, whether or not such local sponsor\nshall be liable therefor, for each twelve-month period beginning on the\nnext succeeding July first, and\n (ii) to the local sponsor of each community college where the local\nsponsor has entered into an agreement with the dormitory authority to\nfinance and construct a community college facility, an amount equal to\none-half of all rentals and all payments due and payable to the\ndormitory authority pursuant to any lease, sublease, or other agreement\nentered into between the dormitory authority and such local sponsor,\nwhether or not such local sponsor shall be liable therefor, for each\ntwelve-month period beginning on the next succeeding July first,\nprovided, however, if such a local sponsor shall thereafter agree to\nfinance the costs of providing all or part of a community college\nfacility the state shall, instead, annually appropriate and pay to such\nlocal sponsor an amount equal to that portion of all rentals and all\npayments due and payable to the dormitory authority during the\ntwelve-month period beginning on the next succeeding July first pursuant\nto any lease, sublease or other agreement providing for such financing\nwhich portion represents the state's share (one-half) of the cost of\neach facility being financed, whether or not the local sponsor shall be\nliable to pay such rentals and payments, and\n (iii) to the local sponsor of each community college which has\nfinanced the entire capital cost of constructing a community college\nfacility, an amount equal to one-half of the annual debt service on\nobligations issued by such local sponsor for the purpose of constructing\nsuch facility. No local sponsor of a community college shall be eligible\nfor assistance pursuant to the provisions of this paragraph unless: (a)\na first instance appropriation has been enacted into state law prior to\nthe commencement of construction; and (b) the state comptroller has\napproved the interest rate of any and all obligations issued by such\nlocal sponsor after July twenty-fourth, nineteen hundred seventy-six to\nfinance the cost of such facility prior to the issuance of such\nobligations; and (c) all contracts for the construction of such facility\nentered into by such local sponsor after July twenty-fourth, nineteen\nhundred seventy-six have been approved by the director of the budget\nprior to the awarding of such contracts.\n (iv) notwithstanding any other provision of this paragraph to the\ncontrary, if the dormitory authority and the state university of New\nYork shall have entered into an agreement pursuant to subdivision\ntwenty-one of section sixteen hundred seventy-eight of the public\nauthorities law and paragraph x of subdivision two of section three\nhundred fifty-five of this chapter, the amounts otherwise payable to the\nlocal sponsors of the community colleges pursuant to this subparagraph\non account of the state's share of the cost of each facility being\nfinanced shall be payable to the dormitory authority in accordance with\nsubdivision five of section ninety-seven-p of the state finance law.\n b. For the purposes of this subdivision, all references to the local\nsponsor of a community college shall be deemed, in the case of community\ncollege regions, to refer to those counties, cities or school districts\nwhich have appointed members to a community college regional board of\ntrustees.\n c. For purposes of this subdivision, the reference to the local\nsponsor of a community college may be deemed, in the case of a community\ncollege region, to alternatively refer to the community college regional\nboard of trustees thereof.\n 9. a. Where construction of a community college facility has commenced\npursuant to the provisions of a lease, sublease or other agreement with\nthe dormitory authority or prior to July twenty-fourth, nineteen hundred\nseventy-six, the local sponsor of such community college may elect to\nfinance the entire capital cost of constructing such facility pursuant\nto the provisions of subdivision ten of this section, provided, however,\nthat the proceeds of obligations issued by such local sponsor to finance\nthe capital cost of constructing such facility may be paid to the\ndormitory authority to the extent of amounts owing under a lease,\nsublease or other agreement with the dormitory authority entered into by\nsuch local sponsor with respect to such facility, and provided further\nthat any such local sponsor which elected to refinance the entire\ncapital cost of constructing a community college facility pursuant to\nthe provisions of this subdivision, may, at the time it enters into\npermanent financing of such facility, elect to do so pursuant to the\nprovisions of the dormitory authority act or subdivision ten of this\nsection.\n b. For the purposes of this subdivision, all references to the local\nsponsor of a community college shall be deemed, in the case of community\ncollege regions, to refer to those counties, cities or school districts\nwhich have appointed members to a community college regional board of\ntrustees.\n 10. a. Each local sponsor of a community college shall have full power\nand authority to finance all or a portion of the capital costs of a\ncommunity college facility pursuant to the provisions of the local\nfinance law and to expend the proceeds therefrom to pay such costs.\n b. For the purposes of this subdivision, the reference to the local\nsponsor of a community college shall be deemed, in the case of community\ncollege regions, to refer to those counties, cities or school districts\nwhich have appointed members to a community college regional board of\ntrustees.\n c. A community college region shall have full power and authority to\nfinance all or a portion of the capital costs of a regional community\ncollege facility pursuant to the provisions of article eight of title\nfour of the public authorities law and to expend the proceeds therefrom\nto pay such costs.\n 11. a. The following terms, when used or referred to in this\nsubdivision, shall have the following meaning:\n (i) "Credit card" means any credit card, credit plate, charge card,\ncharge plate, courtesy card, debit card, other identification card,\nvalue transfer device as defined by the state comptroller or device\nissued by a person to another person which may be used to obtain a cash\nadvance or a loan or credit, or to purchase or lease property or\nservices on the credit of the person issuing the credit card or a person\nwho has agreed with the issuer to pay obligations arising from the use\nof a credit card issued to another person.\n (ii) "Card issuer" means an issuer of a credit card, charge card or\nother value transfer device.\n (iii) "Financing agency" means any agency defined as such in\nsubdivision eighteen of section four hundred one of the personal\nproperty law.\n (iv) "Person" means an individual, partnership, corporation or any\nother legal or commercial entity.\n b. The board of trustees of any community college may determine, by\nresolution, that it is in the public interest to authorize such\ncommunity college to enter into agreements with one or more financing\nagencies or card issuers to provide for the acceptance, by such officers\nof the community college as may be designated pursuant to this\nsubdivision, of credit cards as a means of payment of tuition, expenses,\nfees, charges, revenue, financial obligations or other amounts owed by\nstudents to the community college. Any such agreement shall govern the\nterms and conditions upon which a credit card proffered as a means of\npayment of tuition, expenses, fees, charges, revenue, financial\nobligations or other amounts shall be accepted or declined and the\nmanner in and conditions upon which the financing agency or card issuer\nshall pay to such community college the amount of tuition, expenses,\nfees, charges, revenue, financial obligations or other amounts paid by\nmeans of a credit card pursuant to such agreement. Any such agreement\nmay provide for the payment by such community college to such financing\nagency or card issuer of fees for the services provided by such\nfinancing agency or card issuer pursuant to such agreement, which fees\nmay consist of a discount deducted from or payable in respect of the\namount of each such tuition, expense, fee, charge, revenue, financial\nobligation or other amount. If fees are paid by such a discount, they\nshall be post-audited by the officer or board of the community college\nresponsible for auditing claims against the community college.\n c. Any community college which has entered into an agreement with a\nfinancing agency or card issuer as authorized by this subdivision may\naccept credit cards as a means of payment of tuition, expenses, fees,\ncharges, revenue, financial obligations or other amounts, as provided in\nsuch agreement and may pay such fees as are specified in such agreement\nto such financing agency or card issuer in consideration of the services\nrendered by such financing agency or card issuer thereunder.\nNotwithstanding any other provision of law to the contrary, it shall be\nthe option of the board of trustees of the community college to require,\nas a condition of accepting payment by credit card, that such person\noffering payment by credit or charge card pay a service fee to the\ncommunity college not exceeding costs incurred by the community college\nin connection with the credit or charge card payment transaction,\nincluding any fee owed by the community college to the financing agency\nor card issuer arising from that transaction.\n d. Contracts entered into pursuant to this subdivision between\ncommunity college and financing agencies or card issuers shall be\nawarded in accordance with the community college's written internal\npolicies and procedures governing procurements.\n e. The underlying debt, lien, obligation, bill, account or other\namount owed by the student to the community college for which payment by\ncredit card is accepted by the community college shall not be expunged,\ncancelled, released, discharged or satisfied, and any receipt or other\nevidence of payment shall be deemed conditional, until the community\ncollege has received final and unconditional payment of the full amount\ndue from the financing agency or card issuer for such credit card\ntransaction.\n f. The board of trustees, in enacting a resolution pursuant to this\nsubdivision, shall designate which of its officers, charged with the\nduty of collecting or receiving moneys on behalf of the community\ncollege, shall be authorized to accept credit cards as a means of\npayment of tuition, expenses, fees, charges, revenue, financial\nobligations and other amounts.\n g. Under circumstances where community colleges are otherwise\nauthorized by law to contract for the collection of tuition, expenses,\nfees, charges, revenue, financial obligations or other amounts, such\ncontract shall provide that the contractor accept credit cards as a\nmechanism for payment.\n 12. a. Notwithstanding any other law to the contrary, whenever an\nofficer of a community college is authorized pursuant to law to disburse\nor transfer on behalf of the community college funds in the custody of\nthe officer, that officer shall be authorized to disburse or transfer\nsuch funds by means of electronic or wire transfer. Such disbursement\nshall be otherwise subject to applicable laws, provided that:\n (i) the board of trustees of the community college has entered into a\nwritten agreement with the bank or trust company in which such funds\nhave been deposited, prescribing the manner in which electronic or wire\ntransfer of such funds shall be accomplished, identifying by number and\nname those accounts from which electronic or wire transfers may be made,\nidentifying which officer or officers are authorized to order the\nelectronic or wire transfer of funds from those accounts, and\nimplementing a security procedure as defined in section 4-A-201 of the\nuniform commercial code; and\n (ii) the bank or trust company processing the transfer shall provide\nto the officer ordering the electronic or wire transfer of funds written\nconfirmation of each such transaction no later than the business day\nfollowing the day on which the funds are transmitted.\n b. It shall be the duty of the board of trustees of the community\ncollege to adopt a system of internal controls for the documentation and\nreporting of all transfers or disbursements of funds accomplished by\nelectronic or wire transfer.\n 13. a. The board of trustees of any community college may determine,\nby resolution, that it is in the public interest and authorize such\ncommunity college to provide for the acceptance of tuition, expenses,\nfees, charges, revenue, financial obligations or other amounts via a\ncommunity college internet website. However, submission via the internet\nmay not be required as the sole method for the collection of tuition,\nexpenses, fees, charges and other amounts. Such payments shall be\naccepted via the internet in a manner and condition defined by such\ncommunity college. Any method used to receive internet payments shall\ncomply with article one of the state technology law and any rules and\nregulations promulgated and guidelines developed thereunder and, at a\nminimum must:\n (i) authenticate the identity of the sender; and\n (ii) ensure the security of the information transmitted.\n b. Payments received via the internet shall be considered received by\nthe appropriate officer and paid by the payor at the time the internet\ntransaction is completed and sent by the payor.\n c. The underlying debt, lien, obligation, bill, account or other\namount owed by the student to the community college for which payment by\ninternet is accepted by the community college shall not be expunged,\ncancelled, released, discharged or satisfied, and any receipt or other\nevidence of payment shall be deemed conditional, until the community\ncollege has received final and unconditional payment of the full amount\ndue.\n d. The board of trustees, in enacting a resolution pursuant to this\nsubdivision, shall designate which of its officers, charged with the\nduty of collecting or receiving moneys on behalf of the community\ncollege, shall be authorized to accept such payments via the internet.\n