Section 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.
    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.
    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.
    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.
    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.