N.Y. Education Law § 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.