(1)  If the recipient attends an institution of the city university of
New York or an institution of the state university  of  New  York  other
than  the  statutory  colleges  at Cornell, the college of environmental
science and forestry at Syracuse and the college of ceramics at  Alfred,
the annual scholarship award shall be an amount equal to the non-tuition
cost  of  attendance  at  such institution or college reduced by (i) the
amount of a Pell grant and (ii) the  amount  of  such  other  state  and
federal  scholarships  and  grants,  other  than  tuition  assistance or
supplemental tuition assistance received under this  chapter,  which  do
not  require  repayment,  awarded  to  the  recipient  for  the  cost of
attendance at  the  institution  being  attended,  as  reported  to  the
president; provided, however, that such scholarship shall be reduced one
dollar  for every three dollars of income in excess of eighteen thousand
dollars of income; or
  (2) If the recipient attends  any  other  degree-granting  institution
within  New  York  state  and  enrolls  in  a  program  approved  by the
commissioner, the annual scholarship award shall be based upon an amount
equal to the average non-tuition cost of attendance,  as  determined  by
the  commissioner  in consultation with the president and as approved by
the director of the budget, for a student at the state university of New
York or actual non-tuition cost of  attendance    at  such  institution,
whichever  is  less,  reduced  by  (i)  the  amount  of a Pell grant the
recipient would have been entitled to had  the  recipient  attended  the
state university of New York and (ii) the amount of such other state and
federal  scholarships  and  grants,  other  than  tuition  assistance or
supplemental tuition assistance received under this  chapter,  which  do
not  require  repayment,  awarded  to  the  recipient  for  the  cost of
attendance at  the  institution  being  attended,  as  reported  to  the
president;  provided,  however,  that such scholarships shall be reduced
one dollar for every three dollars  of  income  in  excess  of  eighteen
thousand dollars of income.
  (3)  Scholarships  and  grants  that reduce the cost of attendance for
purposes of determining the amount of  a  scholarship  award  shall  not
include  supplemental  financial  assistance  provided  on a last dollar
basis pursuant to the provisions of section sixty-four hundred fifty-one
or sixty-four hundred fifty-two of this chapter.
  (4) "Non-tuition cost of attendance", as used in this paragraph, shall
mean: (i) the actual amount charged by  the  institution  for  room  and
board  and  (ii)  an allowance for transportation, books and supplies as
determined by the commissioner in consultation with the president and as
approved by the director of the budget, provided that such determination
shall be made no later than December first of each year for use  in  the
succeeding  academic year. In the event a student does not incur room or
board charges at the institution, "non-tuition cost of attendance" shall
mean an allowance for room and board as determined by  the  commissioner
in  consultation  with the president and approved by the director of the
budget. In determining allowances pursuant  to  this  subparagraph,  the
commissioner  may take into consideration the allowances provided for in
the Pell grant program.
  b.  For  the  purposes  of  determining  annual scholarships, the term
"income" shall be  determined  in  accordance  with  the  provisions  of
section  six  hundred sixty-three of this chapter, except that in making
such determination, adjusted gross income, as defined in regulations  of
the trustees of the corporation, shall be used instead of New York state
net taxable income.
  c.  In  no  event  shall  the combination of all student financial aid
received by a student exceed the recipient's total cost of attendance at
the institution being attended.
  7.  Ineligibility  for  a  tuition  assistance,  supplemental  tuition
assistance  or  Pell grant award in a particular academic year shall not
prevent a recipient from receiving a liberty scholarship  award  in  any
subsequent  year  in  which  such  recipient shall become eligible for a
tuition assistance, supplemental tuition assistance or Pell grant award,
provided, however, the seven-year  period  referred  to  in  subdivision
seven  of  section  six  hundred  sixty-five  of  this  chapter,  or  an
eight-year period for part-time study, shall not have elapsed.
  8.  Relationship  to  educational  opportunity  programs.      Liberty
scholarship  recipients  who  qualify  for  admission to the educational
opportunity programs established in section sixty-four hundred fifty-one
or sixty-four hundred fifty-two of this  chapter  shall  in  no  way  be
precluded  from  participation  in  such  programs  as a result of their
status as liberty scholarship recipients. Recipients who qualify and are
selected for participation in the opportunity programs shall be eligible
to receive the same tutoring and counseling services provided  to  other
educational  opportunity  program  students,  and  shall  be eligible to
receive  supplemental  financial  assistance  through  the   educational
opportunity  programs  for any approved costs not otherwise funded under
such scholarship.
  9. Notification. The superintendent of schools or other  chief  school
officer  of  each public school district and the chief school officer of
nonpublic secondary schools shall take  steps  to  inform  students  and
parents  about  the  liberty  scholarship  program  and various types of
student financial aid that are available for their  college  educations.
The corporation, in cooperation with the commissioner, shall assist such
efforts  by  making  available  to school districts, nonpublic secondary
schools and students information relating to such programs and  aid.  In
addition, the commissioner, in cooperation with the president and school
officials shall also provide such other information as is appropriate to
encourage  students  to  complete  high school and to assist students in
preparing to attend college.
  10. Regulations. All regulations of the commissioner or regulations of
the trustees of the corporation to  implement  the  provisions  of  this
article shall be subject to the approval of the director of the budget.