Bill S4075A-2009

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

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

Details

Actions

  • Jun 30, 2010: SUBSTITUTED BY A8079A
  • Jun 30, 2010: ORDERED TO THIRD READING CAL.1378
  • Jun 30, 2010: COMMITTEE DISCHARGED AND COMMITTED TO RULES
  • May 20, 2010: PRINT NUMBER 4075A
  • May 20, 2010: AMEND (T) AND RECOMMIT TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Jan 6, 2010: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS
  • Apr 9, 2009: REFERRED TO CORPORATIONS, AUTHORITIES AND COMMISSIONS

Votes

VOTE: COMMITTEE VOTE: - Rules - Jun 30, 2010
Ayes (20): Smith, Espada, Stachowski, Montgomery, Hassell-Thompson, Krueger, Serrano, Stewart-Cousins, Dilan, Klein, Valesky, Skelos, Johnson O, Padavan, Volker, LaValle, Seward, Hannon, Larkin, Saland
Ayes W/R (2): Duane, Farley
Nays (1): Parker

Memo

 BILL NUMBER:  S4075A

TITLE OF BILL : An act to amend the education law, the public authorities 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 : The purpose of this legislation is 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: Short title.

Section 2: Paragraph c of subdivision 1 of section 6304 of the education law is amended by adding a new undesignated paragraph.

Section 3: Subdivision 8 of section 6304 of the education law is amended by adding a new paragraph c.

Section 4: Subdivision 10 of section 6304 of the education law is amended by adding a new paragraph c.

Section 5: Section 6310 of the education law is amended by adding a new subdivision 17.

Section 6: The undesignated paragraph of subdivision 1 of section 1680 of the public authorities law is amended.

Section 7: The opening paragraph of subdivision 15 of section 1680 of the public authorities law is amended.

Section 8: Section 4 of the chapter 297 of the laws of 1985 authorizing the transfer of sponsorship of Coming community college from the city school district of the city of Coming to a community college region, is amended by adding a new undesignated paragraph.

Section 9: Section 6 of Chapter 144 of laws of 1996 is amended by adding a new undesignated paragraph.

Section 10: Section 6310 of the education law is amended by adding a new subdivision 10-a.

Section 11: Effective Date.

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 for those community college 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 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 list 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 sponsors mature of a community college region make it much more difficult for a community college region to do capital financings in order to upgrade facilities. 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--A 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 -- recommitted to the Committee on Corporations, Authorities and Commissions in accordance with Senate Rule 6, sec. 8 -- committee discharged, bill amended, ordered reprinted as amended and recommitted to said committee AN ACT to amend the education law, the public authorities 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 and may be cited as the "community college region capital financing act of 2010". S 2. 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. A COMMUNITY COLLEGE REGION IS HEREBY AUTHORIZED TO PLEDGE ANY REVENUES OR OTHER MONIES TO THE PAYMENT OF ANY OBLIGATIONS ISSUED, OR ANY FINANCING AGREE- MENT ENTERED INTO WITH THE DORMITORY AUTHORITY. S 3. 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 4. 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 5. Section 6310 of the education law is amended by adding a new subdivision 17 to read as follows: 17. NOTWITHSTANDING ANY PROVISION OF THIS CHAPTER TO THE CONTRARY, A COMMUNITY COLLEGE REGIONAL BOARD OF TRUSTEES OF A COMMUNITY COLLEGE REGION SHALL BE THE LOCAL SPONSOR OF SUCH COMMUNITY COLLEGE FOR THE PURPOSES OF ENTERING INTO AGREEMENTS WITH THE DORMITORY AUTHORITY OF THE STATE OF NEW YORK ON BEHALF OF THE COMMUNITY COLLEGE PURSUANT TO SUBDI- VISIONS NINE, TEN, ELEVEN, TWELVE, THIRTEEN, FOURTEEN AND SIXTEEN OF SECTION SIXTEEN HUNDRED EIGHTY OF THE PUBLIC AUTHORITIES LAW AND SHALL HAVE FULL AUTHORITY TO PERFORM, ON BEHALF OF SUCH COMMUNITY COLLEGE, ALL OBLIGATIONS OF THE COLLEGE UNDER ITS AGREEMENTS WITH THE DORMITORY AUTHORITY. S 6. The undesignated paragraph of subdivision 1 of section 1680 of the public authorities law, as separately amended by chapters 165, 538, 624 and 625 of the laws of 1978, is amended to read as follows: A local sponsor as defined by subdivision three of section sixty-three hundred one of the education law, OR AS DEFINED BY SUBDIVISION FOUR OF SECTION SIXTY-THREE HUNDRED ONE OF THE EDUCATION LAW WITH RESPECT TO A COMMUNITY COLLEGE REGION, A COMMUNITY COLLEGE REGIONAL BOARD OF TRUS- TEES, or, with respect to locally sponsored community colleges in the city of New York, the city of New York or the board of education, as the case may be. S 7. The opening paragraph of subdivision 15 of section 1680 of the public authorities law, as amended by chapter 332 of the laws of 1975, is amended to read as follows:
In order to effectuate the purposes of this title, the following provisions shall apply to powers in connection with the provision of facilities for locally sponsored community colleges except a facility for a locally sponsored community college in the city of New York OR A FACILITY FOR A COMMUNITY COLLEGE SPONSORED BY A COMMUNITY COLLEGE REGION: 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 judgment 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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