This bill has been amended

Bill S4075-2009

Enacts the "community college region capital financing act of 2009"

Enacts the "community college region capital financing act of 2010".

Details

Actions

  • Jan 6, 2010: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Apr 9, 2009: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Memo

 BILL NUMBER:  S4075

TITLE OF BILL : An act to amend the public authorities law, the education law, chapter 297 of the laws of 1985 authorizing the transfer of sponsorship of Corning community college from the city school district of the city of Corning to a community college region, and chapter 144 of the laws of 1996 amending the education law relating to the establishment of a community college region to sponsor Jamestown community college and authorizing the transfer of sponsorship of Jamestown community college from the city of Jamestown to a community college region, in relation to capital financings of community college regions

PURPOSE : To permit community college regions to finance capital improvements through the facilities of the Dormitory Authority of the State of New York.

SUMMARY OF PROVISIONS : Section 1 of the bill is the Short title. This act shall be known as and may be cited as the "Community College Region Capital Financing Act of 2009."

Section 2 of the bill amends the public authorities law to clarify that a locally sponsored community college includes any community college administered by a regional board of trustees included Coming Community College Region and the Jamestown Community College Region.

Section 3 of the bill amends the public authorities law to permit a community college region itself to be a participant in a financing transaction by the Dormitory Authority of the State of New York.

Section 4 of the bill amends the public authorities law to clarify that a "local sponsor" in the case of a community college region may be the board of trustees itself for purposes of financing of capital projects of the region.

Section 5 of the bill amends the education law to permit a community college regional board of trustees as finance board of the region to authorize the issuance of bonds, notes, or other evidence of indebtedness including financing transactions with the Dormitory Authority of the State of New York by the region itself. Section 5 also provides the method of authorization by adoption of a bond resolution by two-thirds of the voting strength of the regional board of trustees and upon receipt of the approvals of the governing boards of each of the sponsors of the region, publication of a legal notice of estoppel.

Section 6 of the bill amends the education law to permit a board of trustees of a community college region itself to be the recipient of certain state aid when the region is to act as the local sponsor for purposes of financing a capital project.

Section 7 of the bill amends the education law to clarify that a board of trustees of a community college region itself may also act as the local sponsor for purposes of financing a capital project through the auspices of the Dormitory Authority.

Section 8 of the bill amends Chapter 297 of the laws of nineteen hundred eighty-five to permit the Coming Community College Regional Board of Trustees to enter into capital financing transactions with the Dormitory Authority of the State of New York.

Section 9 of the bill amends Chapter 144 of the laws of nineteen hundred ninety-six to permit the Jamestown Community College Regional Board of Trustees to enter into capital financing transactions with the Dormitory Authority of the State of New York.

Section 10 of the bill conforms Section 6310 of the education law to Sections 2, 3, 4, 5, 6, and 7 of the bill.

Section 11 of the bill is a severability provision.

Section 12 of the bill provides that it should take effect immediately.

JUSTIFICATION : Each community college in the state has the authority to have capital improvements financed either directly by the issuance of debt by its sponsoring municipality or by the sponsor entering into a financing agreement with the Dormitory Authority of the State of New York. Except those community colleges which are sponsored by more than one municipality, it is a single sponsoring municipality that must take the necessary steps to arrange for a capital financing. Regional community colleges, governed by a regional board of trustees, have clear authority only for financing of their capital projects by their sponsoring municipalities through the issuance of the debt of multiple parties--either proportionately by each of the sponsors or on a joint or several basis. A community college region itself (as compared to its multiple sponsors) presently does not have clear authority to effectuate a financing with the Dormitory Authority of the State of New York. Although Section 1680(1) of the public authorities law lists a "local sponsor" eligible of a community college as an "educational institution" for Dormitory Authority financing, Section 6301(3) of the education law reference therein defines "local sponsor" in an ambiguous manner, leaving unclear whether only the sponsors of a region jointly or the region itself acting through its board of trustees are a party which may enter into financing arrangements with the Dormitory Authority. The multiple sponsor nature of a community college region makes it much more difficult for a community college region to do capital financings in order to upgrade facilities, in order to remain competitive and adapt to new skills training needed in the 21st century. This complication has put community college regions at an unintended disadvantage vis-a-vis all other community colleges in the state.

LEGISLATIVE HISTORY : New Bill.

FISCAL IMPLICATIONS : None.

LOCAL FISCAL IMPLICATIONS : None.

EFFECTIVE DATE : Immediately.

Text

STATE OF NEW YORK ________________________________________________________________________ 4075 2009-2010 Regular Sessions IN SENATE April 9, 2009 ___________
Introduced by Sens. WINNER, YOUNG -- read twice and ordered printed, and when printed to be committed to the Committee on Corporations, Author- ities and Commissions AN ACT to amend the public authorities law, the education law, chapter 297 of the laws of 1985 authorizing the transfer of sponsorship of Corning community college from the city school district of the city of Corning to a community college region, and chapter 144 of the laws of 1996 amending the education law relating to the establishment of a community college region to sponsor Jamestown community college and authorizing the transfer of sponsorship of Jamestown community college from the city of Jamestown to a community college region, in relation to capital financings of community college regions THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. Short title. This act shall be known as and may be cited as the "community college region capital financing act of 2009". S 2. Subdivision 7 of section 1676 of the public authorities law, as added by chapter 332 of the laws of 1975, is amended to read as follows: 7. The term "locally sponsored community college" shall mean a college established and administered pursuant to article one hundred twenty-six of the education law, INCLUDING ESTABLISHED PURSUANT TO CHAPTER TWO HUNDRED NINETY-SEVEN OF THE LAWS OF NINETEEN HUNDRED EIGHTY-FIVE, OR ESTABLISHED PURSUANT TO CHAPTER ONE HUNDRED FORTY-FOUR OF THE LAWS OF NINETEEN HUNDRED NINETY-SIX; S 3. Subdivision 1 of section 1680 of the public authorities law is amended by adding a new undesignated paragraph to read as follows: A COMMUNITY COLLEGE REGION. S 4. Subdivision 9 of section 1680 of the public authorities law is amended by adding a new paragraph (h) to read as follows: (H) FOR PURPOSES OF THIS SUBDIVISION, AND SUBDIVISIONS TEN, ELEVEN TWELVE, THIRTEEN, FOURTEEN, FIFTEEN, AND SIXTEEN OF THIS SECTION, THE
TERM "LOCAL SPONSOR" SHALL ALTERNATELY INCLUDE A BOARD OF TRUSTEES OF A COMMUNITY COLLEGE REGION, IN ADDITION TO, AND APART FROM, THE LOCAL SPONSORS REPRESENTED THEREIN. S 5. Paragraph c of subdivision 1 of section 6304 of the education law is amended by adding a new undesignated paragraph to read as follows: NOTWITHSTANDING ANY PROVISION OF LAW TO THE CONTRARY, IN THE CASE OF COMMUNITY COLLEGE REGIONS, A COMMUNITY COLLEGE REGIONAL BOARD OF TRUS- TEES AS FINANCE BOARD OF THE REGION MAY AUTHORIZE THE ISSUANCE OF BONDS, NOTES OR OTHER EVIDENCE OF INDEBTEDNESS OR THE EFFECTUATION OF A FINANC- ING TRANSACTION BY THE COMMUNITY COLLEGE REGION WITH THE DORMITORY AUTHORITY PURSUANT TO THE PROVISIONS OF ARTICLE EIGHT OF TITLE FOUR 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 DORMITO- RY 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. S 6. Subdivision 8 of section 6304 of the education law is amended by adding a new paragraph c to read as follows: C. FOR PURPOSES OF THIS SUBDIVISION, THE REFERENCE TO THE LOCAL SPON- SOR 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. S 7. Subdivision 10 of section 6304 of the education law is amended by adding a new paragraph c to read as follows: 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. S 8. Section 4 of chapter 297 of the laws of 1985 authorizing the transfer of sponsorship of Corning community college from the city school district of the city of Corning to a community college region, is amended by adding a new undesignated paragraph to read as follows: NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMMUNITY COLLEGE REGION SHALL 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 OF THE STATE OF NEW YORK IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE EIGHT OF TITLE FOUR OF THE PUBLIC AUTHORITIES LAW.
S 9. Section 6 of chapter 144 of the laws of 1996 amending the educa- tion law relating to the establishment of a community college region to sponsor Jamestown community college and authorizing the transfer of sponsorship of Jamestown community college from the city of Jamestown to a community college region, is amended by adding a new undesignated paragraph to read as follows: NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE COMMUNITY COLLEGE REGION SHALL 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 OF THE STATE OF NEW YORK IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE EIGHT OF TITLE FOUR OF THE PUBLIC AUTHORITIES LAW. S 10. Section 6310 of the education law is amended by adding a new subdivision 10-a to read as follows: 10-A. NOTWITHSTANDING THE PROVISIONS OF SUBDIVISION TEN OF THIS SECTION, UPON RECEIPT OF THE APPROVALS SET FORTH IN SUCH SUBDIVISION, THE BOARD OF TRUSTEES OF THE COMMUNITY COLLEGE REGION MAY FINANCE A DULY AUTHORIZED SPECIFIC OBJECT OR PURPOSE OR CLASS OF OBJECTS OR PURPOSES BY THE ISSUANCE OF BONDS, NOTES OR OTHER EVIDENCE OF INDEBTEDNESS OR PURSU- ANT TO A FINANCING TRANSACTION OF THE COMMUNITY COLLEGE REGION WITH THE DORMITORY AUTHORITY IN ACCORDANCE WITH THE PROVISIONS OF ARTICLE EIGHT OF TITLE FOUR OF THE PUBLIC AUTHORITIES LAW. S 11. If any clause, sentence, subdivision, paragraph, section or part of this act be adjudged by any court of competent jurisdiction to be invalid, such judgement shall not affect, impair or invalidate the remainder thereof, but shall be confined in its operation to the clause, sentence, subdivision, paragraph, section or part thereof directly involved in the controversy in which such judgment shall have been rendered. S 12. This act shall take effect immediately.

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