S T A T E   O F   N E W   Y O R K
________________________________________________________________________

    S. 7007--A                                           A. 10116--A

                      S E N A T E - A S S E M B L Y

                              March 5, 2010
                               ___________

IN SENATE -- Introduced by Sens. SERRANO, BONACIC, BRESLIN, DeFRANCISCO,
  ESPADA,  FARLEY, GRIFFO, KRUEGER, LITTLE, OPPENHEIMER, PADAVAN, PERAL-
  TA, SALAND, SCHNEIDERMAN, SEWARD, SQUADRON, STAVISKY,  STEWART-COUSINS
  -- read twice and ordered printed, and when printed to be committed to
  the Committee on Investigations and Government Operations -- committee
  discharged, bill amended, ordered reprinted as amended and recommitted
  to said committee

IN ASSEMBLY -- Introduced by M. of A. GALEF, PAULIN, KOON, THIELE, MENG,
  KAVANAGH,  BARRON,  CALHOUN,  SAYWARD,  BURLING, CORWIN, RAIA, GIGLIO,
  JORDAN, TOBACCO, SKARTADOS,  CASTRO,  BENJAMIN,  ESPAILLAT,  CASTELLI,
  MILLMAN,  FIELDS,  ORTIZ, KELLNER, SPANO, ROSENTHAL -- Multi-Sponsored
  by -- M. of A. AMEDORE,  BACALLES,  BARCLAY,  CONTE,  CROUCH,  DUPREY,
  ERRIGO,  FINCH,  HAYES,  JEFFRIES,  KOLB, LATIMER, LUPARDO, MAYERSOHN,
  McKEVITT, MOLINARO, MONTESANO, MURRAY, O'MARA, PHEFFER, RABBITT, SALA-
  DINO, SCHIMEL, TOWNSEND -- read once and referred to the Committee  on
  Governmental Operations -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN  ACT  to  amend  the  legislative  law, in relation to clarifying the
  appropriation and qualification of member  items  and  authorizes  the
  legislative  ethics  commission to review violations of the qualifica-
  tion of member items; and to amend the state finance law, in  relation
  to requiring that all member items be fully itemized

  THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. The legislative law is amended by adding a new section 54-b
to read as follows:
  S 54-B. MEMBER ITEMS. 1. AS USED IN THIS  SECTION,  THE  TERM  "MEMBER
ITEM"  SHALL  MEAN  A  BUDGETARY ALLOCATION AS FUNDED BY THE LEGISLATIVE
COMMUNITY PROJECTS FUND AS DEFINED IN SECTION NINETY-NINE-T OF THE STATE
FINANCE LAW, AND THE EXECUTIVE COMMUNITY PROJECTS  FUND  AS  DEFINED  IN
SECTION  NINETY-NINE-U  OF  THE  STATE FINANCE LAW AT THE DISCRETION AND
REQUEST OF THE GOVERNOR OR A MEMBER OF THE LEGISLATURE FOR  A  CERTIFIED
TAX-EXEMPT NON-PROFIT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTER-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
              

                                                           LBD15767-05-0

S. 7007--A                          2                        A. 10116--A

NAL  REVENUE  CODE  IN NEW YORK STATE, A STATE AGENCY, A MUNICIPALITY OR
THEIR AFFILIATED DEPARTMENT, UNIVERSITY, COLLEGE, OR SCHOOL DISTRICT.
  2.  MEMBER ITEMS SHALL NOT BE APPROPRIATED WHEN A CONFLICT OF INTEREST
EXISTS BETWEEN THE LEGISLATOR OR GOVERNOR DESIGNATING  THE  MEMBER  ITEM
AND  THE  POTENTIAL  RECIPIENT.  A MEMBER ITEM CANNOT FUND ORGANIZATIONS
THAT EMPLOY OR OTHERWISE COMPENSATE THE LEGISLATOR OR GOVERNOR, A MEMBER
OF THE LEGISLATOR'S OR GOVERNOR'S FAMILY, ANY PERSON SHARING THE HOME OF
THE LEGISLATOR OR GOVERNOR OR A MEMBER OF THE LEGISLATOR'S OR GOVERNOR'S
STAFF FOR SERVICES OR LABOR RENDERED. FURTHERMORE, LEGISLATORS  AND  THE
GOVERNOR SHALL NOT DESIGNATE MEMBER ITEMS IF THE LEGISLATOR OR GOVERNOR,
A  MEMBER  OF  THE LEGISLATOR'S OR GOVERNOR'S FAMILY, ANY PERSON SHARING
THE HOME OF THE LEGISLATOR OR GOVERNOR OR A MEMBER OF  THE  LEGISLATOR'S
OR  GOVERNOR'S STAFF IS INVOLVED WITH THE OPERATIONS OF THE ORGANIZATION
IN A DECISION-MAKING CAPACITY INCLUDING BUT NOT LIMITED TO WORKING ON AN
UNPAID, VOLUNTEER BASIS OR A MEMBER OF THE DIRECTING BOARD OF AN  ORGAN-
IZATION.
  3. PRIOR TO THE APPROPRIATION OF MEMBER ITEMS, THE LEGISLATURE SHALL:
  (A)  PROVIDE  THAT  EACH  MEMBER  OF THE SENATE AND EACH MEMBER OF THE
ASSEMBLY RECEIVE AN EQUAL SHARE OF THE DOLLAR  AMOUNT  OF  MEMBER  ITEMS
ALLOCATED TO THE RESPECTIVE LEGISLATIVE BODY;
  (B)  REQUIRE THE LEGISLATOR OR GOVERNOR REQUESTING SUCH MEMBER ITEM TO
SUBMIT A SIGNED CONFLICT OF INTEREST FORM ALONG  WITH  THE  MEMBER  ITEM
REQUEST FORM TO ENSURE THAT NO CONFLICT OF INTEREST EXISTS. THE LEGISLA-
TOR  OR  GOVERNOR  SHALL  DISCLOSE  ON THE CONFLICT OF INTEREST FORM ALL
POLITICAL DONATIONS HE OR SHE IS RECEIVING OR HAS RECEIVED IN  THE  PAST
FROM  THE INTENDED RECIPIENT OF THE MEMBER ITEM FUNDING. SUCH A CONFLICT
OF INTEREST FORM SHALL BE SIGNED BY THE  LEGISLATOR  OR  GOVERNOR  UNDER
PENALTY  OF  PERJURY, STATING THAT THE MEMBER ITEM IS NOT BEING DIRECTED
IN A MANNER DESCRIBED IN SUBDIVISION TWO OF THIS SECTION;
  (C) PROVIDE THAT ANY STATE AGENCY THAT  PROVIDES  FUNDING  FOR  MEMBER
ITEMS  EVALUATE  THE  SPENDING  OF  SUCH  MEMBER ITEM FUNDS BY THE LOCAL
PROJECT, ORGANIZATION OR OTHER ENTITY RECEIVING SUCH  FUNDS.  THE  STATE
AGENCY  SHALL  TRACK  THE FUNDS TO ENSURE THAT THEY ARE BEING SPENT IN A
MANNER CONSISTENT WITH THE MEMBER ITEM APPLICATION;
  (D) ENSURE THAT THE FOLLOWING CRITERIA ARE SATISFIED:
  (1) GRANTS ARE TO BE DESIGNATED FOR  PUBLIC  PURPOSES.    THE  PROGRAM
FUNDED  MUST  BE OPEN AND AVAILABLE TO ALL INDIVIDUALS ON A NONSECTARIAN
BASIS;
  (2) GRANTS ARE PROVIDED IN SUPPORT OF  SERVICES  AND  ACTIVITIES  THAT
HAVE STATEWIDE BENEFIT OR BENEFIT LOCAL COMMUNITIES;
  (3) GRANTS ARE ONLY DESIGNATED FOR NOT-FOR-PROFIT ORGANIZATIONS, MUNI-
CIPALITIES   OR  THEIR  AFFILIATED  DEPARTMENTS/AGENCIES,  UNIVERSITIES,
COLLEGES, OR SCHOOL DISTRICTS;
  (4) GRANTS ARE AVAILABLE SOLELY FOR ACTIVITIES AND PROGRAMS  CONDUCTED
WITHIN THE STATE OF NEW YORK;
  (5)  GRANTS  ARE NOT TO BE REDISTRIBUTED UNLESS THE GRANT RECIPIENT IS
IDENTIFIED AND THE GRANT TO THE END RECIPIENT COMPLIES WITH  THE  CRITE-
RIA;
  (6)  GRANTS  ARE TO BE USED ONLY FOR THE PURPOSE STATED IN THE FUNDING
REQUEST;
  (7) GRANTS ARE NOT TO BE USED TO FUND LOAN PROGRAMS;
  (8) GRANTS ARE NOT TO BE USED FOR THE FOLLOWING PURPOSES: (A) TO  FUND
AN  ENTITY  IN BANKRUPTCY, RECEIVERSHIP, OR FORECLOSURE OR TO FUND LEGAL
OR ADMINISTRATIVE EXPENSES RELATED TO BANKRUPTCY, RECEIVERSHIP OR  FORE-
CLOSURE  PROCEEDINGS;  (B)  TO  PAY  FOR ANY ARREARS IN WORKERS' COMPEN-
SATION, UNEMPLOYMENT INSURANCE OR OTHER EMPLOYEE BENEFITS; OR (C) TO PAY

S. 7007--A                          3                        A. 10116--A

FOR ANY ARREARS OR CURRENT OBLIGATIONS FOR FEDERAL, STATE, OR  MUNICIPAL
TAXES;  FOR  LOBBYING  ACTIVITIES AS DEFINED UNDER SECTION ONE-C OF THIS
CHAPTER AND COMPARABLE SECTIONS OF FEDERAL OR MUNICIPAL LAW;
  (9)  GRANTS  ARE  NOT TO BE THE ONLY SIGNIFICANT SOURCE OF FUNDING FOR
THE ORGANIZATION;
  (10) GRANT APPLICATIONS SHALL  INCLUDE  A  BRIEF  DESCRIPTION  OF  THE
PROJECT TO BE FUNDED; AND
  (11)  GRANTS  SHALL  NOT  BE  USED BY RECIPIENTS TO PAY WAGES OR OTHER
EMPLOYEE BENEFITS.
  (E) AT LEAST TWENTY-FOUR HOURS PRIOR TO APPROVAL BY THE LEGISLATURE OF
THE STATE BUDGET, THE LEGISLATURE MUST MAKE PUBLIC WITH RESPECT TO  EACH
MEMBER ITEM, THE MEMBER OF THE SENATE, THE MEMBER OF THE ASSEMBLY OR THE
GOVERNOR  SPONSORING  THE  MEMBER  ITEM, THE DOLLAR AMOUNT OF THE MEMBER
ITEM TO BE APPROPRIATED, AND THE NAME OF THE LOCAL PROJECT, ORGANIZATION
OR OTHER ENTITY RECEIVING SUCH MEMBER ITEM. SUCH PUBLICATION SHALL, AT A
MINIMUM, BE MADE ON THE WEBSITE OF EACH HOUSE OF THE  LEGISLATURE  IN  A
MANNER THAT IS EASILY ACCESSIBLE.
  4.  ALL  MEMBER ITEM ALLOCATION RECIPIENTS SHALL PROVIDE CERTIFICATION
OF PROPER USE OF FUNDS RECEIVED.  FOR  ALLOCATIONS  TOTALING  LESS  THAN
FIFTY  THOUSAND  DOLLARS, A DULY AUTHORIZED REPRESENTATIVE OF THE MEMBER
ITEM RECIPIENT ORGANIZATION SHALL ATTEST UNDER PENALTY OF  PERJURY  THAT
THE RECIPIENT ORGANIZATION ACTUALLY SPENT THE MEMBER ITEM GRANT MONEY IN
THE  MANNER  AND  FOR  THE  PURPOSES DESIGNATED IN ITS APPLICATION FOR A
MEMBER ITEM ALLOCATION. FOR ALLOCATIONS TOTALING MORE THAN  FIFTY  THOU-
SAND DOLLARS, A DULY AUTHORIZED REPRESENTATIVE OF THE MEMBER ITEM RECIP-
IENT ORGANIZATION SHALL ATTEST UNDER PENALTY OF PERJURY THAT THE RECIPI-
ENT  ORGANIZATION  ACTUALLY  SPENT  THE  MEMBER  ITEM GRANT MONEY IN THE
MANNER AND FOR THE PURPOSES DESIGNATED IN ITS APPLICATION FOR  A  MEMBER
ITEM ALLOCATION AND SHALL FILE A FINAL REPORT, UNDER PENALTY OF PERJURY,
DETAILING  THE EXPENDITURES. SUCH REPORT SHALL BE SUBMITTED BY MAY THIR-
TY-FIRST OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN  WHICH  THE
MEMBER  ITEM WAS ALLOCATED AND SHALL FOLLOW THE REQUIREMENTS ESTABLISHED
BY THE ATTORNEY GENERAL. NO FUTURE MEMBER ITEM GRANTS SHALL BE  APPROVED
FOR  AN  ORGANIZATION  WHICH HAS PREVIOUSLY RECEIVED A MEMBER ITEM ALLO-
CATION UNTIL SUCH DOCUMENTS HAVE BEEN SIGNED AND RECEIVED BY THE  OFFICE
OF THE NEW YORK STATE ATTORNEY GENERAL.
  5.  PRIOR  TO  SUBMITTING AN APPLICATION FOR A MEMBER ITEM ALLOCATION,
EACH ORGANIZATION SEEKING A MEMBER ITEM ALLOCATION MUST MEET  PRE-CERTI-
FICATION  STANDARDS  AS  ESTABLISHED BY THE OFFICE OF THE NEW YORK STATE
ATTORNEY GENERAL. AT A MINIMUM, THOSE STANDARDS SHALL REQUIRE  THAT  THE
ORGANIZATION   SEEKING   PRE-CERTIFICATION  IS  A  CERTIFIED  TAX-EXEMPT
NON-PROFIT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL  REVENUE
CODE  IN  NEW YORK STATE, A STATE AGENCY, A MUNICIPALITY OR THEIR AFFIL-
IATED DEPARTMENT, UNIVERSITY, COLLEGE, OR  SCHOOL  DISTRICT  CAPABLE  OF
ACCEPTING POTENTIAL FUNDING AND THAT SUCH ENTITY IS NOT IN BANKRUPTCY OR
ARREARS  ON ANY OBLIGATIONS. IF AN ORGANIZATION HAS RECEIVED MEMBER ITEM
FUNDING IN THE  PAST,  THE  ORGANIZATION  SHALL  ALSO  COMPLY  WITH  THE
REQUIREMENTS  OF  SUBDIVISION  FOUR OF THIS SECTION. NO APPLICATION FROM
ANY ORGANIZATION SHALL BE CONSIDERED BY A LEGISLATOR UNTIL THE OFFICE OF
THE NEW YORK STATE ATTORNEY  GENERAL  HAS  CERTIFIED  SUCH  ORGANIZATION
BASED UPON THE CRITERIA SET FORTH IN THIS SUBDIVISION AND UPON ANY ADDI-
TIONAL REGULATORY STANDARDS ESTABLISHED BY THE ATTORNEY GENERAL.
  6.  ANY  STATE  AGENCY  THAT  PROVIDES  FUNDING FOR MEMBER ITEMS SHALL
REVIEW MEMBER ITEM SPENDING ON AN ANNUAL BASIS AND  PERIODICALLY  REVIEW
GRANT RECIPIENTS' USE OF GRANT MONEY.

S. 7007--A                          4                        A. 10116--A

  7.  ANY MEMBER ITEM APPROPRIATED BY THE LEGISLATURE SHALL BE SET FORTH
SEPARATELY AND APART FROM EVERY OTHER MEMBER ITEM IN THE STATE BUDGET IN
ORDER TO CLEARLY IDENTIFY EACH LEGISLATOR'S OR GOVERNOR'S REQUEST.
  8.  ANY  VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE REFERRED
TO  THE  LEGISLATIVE  ETHICS  COMMISSION  OR   ITS   SUCCESSOR   ENTITY.
COMPLAINTS  REGARDING  THE  FAILURE  OF AN ALLOCATION OR USE OF A MEMBER
ITEM TO COMPLY WITH THE PROVISIONS OF THIS CHAPTER SHALL BE SUBMITTED TO
(A) THE LEGISLATIVE ETHICS COMMISSION WITH REGARD TO A MEMBER ITEM ALLO-
CATION MADE AT THE DISCRETION OF A LEGISLATOR, OR (B) THE COMMISSION  ON
PUBLIC  INTEGRITY  WITH  REGARD  TO A MEMBER ITEM ALLOCATION MADE AT THE
DISCRETION OF THE GOVERNOR. EACH  COMPLAINT  SHALL  BE  INVESTIGATED  IN
ACCORDANCE WITH THE RULES AND PROCEDURES OF THE COMMISSION RECEIVING THE
COMPLAINT.
  S  2.  Paragraph  1  of subdivision 7 of section 80 of the legislative
law, as amended by chapter 14 of the laws of 2007, is amended to read as
follows:
  l. Receive and act on complaints  regarding  persons  subject  to  its
jurisdiction  alleging  a  possible violation of SECTION FIFTY-FOUR-B OF
THIS CHAPTER OR section seventy-three, seventy-three-a  or  seventy-four
of  the  public  officers  law,  and  conduct  such  investigations  and
proceedings as are authorized and necessary to carry out the  provisions
of  this section. In connection with such investigations, the commission
may administer oaths or affirmations, subpoena witnesses,  compel  their
attendance  and  require the production of any books or records which it
may deem relevant or material;
  S 3. Subdivisions 4 and 5 of section 24 of the state finance  law,  as
added by chapter 1 of the laws of 2007, are amended to read as follows:
  4.  Any  appropriation added to such budget bills, pursuant to section
four of article seven of the constitution, shall only  contain  itemized
appropriations  which  shall  not  be  in the form of lump sum appropri-
ations[,] AND SHALL DESIGNATE FOR EACH APPROPRIATION A GRANTEE  OF  SUCH
APPROPRIATION,  and  [provided  further  that] for all non-federal state
operations appropriations, such bill or bills shall only  contain  item-
ized appropriations and shall be made, where practicable, by agency, and
within  each  agency by program and within each program at the following
level of detail and in the following order:
  (a) by fund type, which at  a  minimum  shall  include  general  fund,
special  revenue-other  funds,  capital  projects funds and debt service
funds;
  (b) for personal service appropriations, separate appropriations shall
be made for regular personal service, temporary  personal  service,  and
holiday and overtime pay;
  (c)  for  nonpersonal  service appropriations, separate appropriations
shall be made for supplies and materials, travel, contractual  services,
equipment and fringe benefits, as appropriate.
  5.  [Any appropriation added pursuant to section four of article seven
of the constitution without designating a  grantee  shall  be  allocated
only  pursuant to a plan setting forth an itemized list of grantees with
the amount to be received by each, or  the  methodology  for  allocating
such  appropriation.  Such  plan shall be subject to the approval of the
chair of the senate finance committee, the chair of  the  assembly  ways
and  means  committee,  and  the  director of the budget, and thereafter
shall be included in a concurrent resolution calling for the expenditure
of such monies, which resolution must be approved by a majority vote  of
all members elected to each house upon a roll call vote.] THE PROVISIONS
OF  THIS  SECTION  SHALL  NOT  PRECLUDE  MEMBERS OF THE LEGISLATURE FROM

S. 7007--A                          5                        A. 10116--A

COLLABORATING WITH EACH OTHER IN THE SELECTION OF MEMBER ITEMS AND PACK-
AGING THEIR INDIVIDUAL  MEMBER  ITEM  ALLOCATIONS  TOGETHER  WITH  OTHER
MEMBER'S ALLOCATIONS FOR SPECIFIED REGIONAL OR JOINT PROJECTS.
  S 4. Section 99-d of the state finance law, as added by chapter 474 of
the laws of 1996, is renumbered section 99-t and the section heading, as
added  by chapter 474 of the laws of 1996, and subdivision 1, as amended
by section 2 of part BB of chapter 686 of the laws of 2003, are  amended
to read as follows:
  [Community]  LEGISLATIVE  COMMUNITY  projects fund. 1. There is hereby
established in the joint custody of the comptroller and the commissioner
of taxation and finance a special fund to be known  as  the  LEGISLATIVE
community projects fund. This fund may have separate accounts designated
pursuant  to  a  specific appropriation to such account or pursuant to a
written suballocation plan approved in  a  memorandum  of  understanding
executed  by  the  director  of  the budget, the secretary of the senate
finance committee and the secretary  of  the  assembly  ways  and  means
committee. Such suballocation shall be submitted to the comptroller.
  S  5. The state finance law is amended by adding a new section 99-u to
read as follows:
  S 99-U. EXECUTIVE COMMUNITY PROJECTS FUND. 1. THERE IS  HEREBY  ESTAB-
LISHED  IN  THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF
TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE EXECUTIVE  COMMU-
NITY  PROJECTS  FUND.  THIS  FUND  MAY HAVE SEPARATE ACCOUNTS DESIGNATED
PURSUANT TO A SPECIFIC APPROPRIATION TO SUCH ACCOUNT OR  PURSUANT  TO  A
WRITTEN  SUBALLOCATION  PLAN  APPROVED  IN A MEMORANDUM OF UNDERSTANDING
EXECUTED BY THE DIRECTOR OF THE BUDGET,  THE  SECRETARY  OF  THE  SENATE
FINANCE  COMMITTEE  AND  THE  SECRETARY  OF  THE ASSEMBLY WAYS AND MEANS
COMMITTEE. SUCH SUBALLOCATION SHALL BE SUBMITTED TO THE COMPTROLLER.
  2. SUCH FUND SHALL CONSIST OF MONIES TRANSFERRED TO SUCH FUND FROM THE
GENERAL FUND/STATE PURPOSES ACCOUNT, OR ANY OTHER MONIES REQUIRED TO  BE
TRANSFERRED  OR  DEPOSITED.  MONIES  MAY  NOT  BE  TRANSFERRED OR LOANED
BETWEEN  THE  ACCOUNTS  OF  THIS  FUND,  UNLESS  SPECIFICALLY  OTHERWISE
PROVIDED  BY  LETTER SIGNED BY THE DIRECTOR OF THE BUDGET, BUT ONLY UPON
THE JOINT REQUEST OF THE SECRETARY OF THE SENATE FINANCE  COMMITTEE  AND
THE SECRETARY OF THE ASSEMBLY WAYS AND MEANS COMMITTEE.
  3.  (A)  AS  REQUIRED  TO MAKE TIMELY PAYMENTS FROM SUCH ACCOUNTS UPON
PRESENTMENT OF PROPER VOUCHERS THEREFOR,  THE  STATE  COMPTROLLER  SHALL
MAKE  TRANSFERS  TO  ANY ACCOUNT IN THIS FUND UP TO THE AMOUNTS ANNUALLY
SPECIFIED FOR TRANSFER TO SUCH ACCOUNT AND IN COMPLIANCE  WITH  SUBDIVI-
SION TWO OF THIS SECTION, BUT ONLY FROM SUCH FUND OR FUNDS AUTHORIZED TO
PROVIDE SUCH TRANSFERS.
  (B)  BY  THE  CLOSE OF EACH FISCAL YEAR, ALL REMAINING AMOUNTS NOT YET
TRANSFERRED SHALL BE TRANSFERRED TO THE DESIGNATED  ACCOUNTS  FOR  WHICH
SUCH  TRANSFERS  WERE  AUTHORIZED, UP TO THE TOTAL AMOUNTS SPECIFIED FOR
TRANSFER TO EACH ACCOUNT IN EACH FISCAL  YEAR  AND  IN  COMPLIANCE  WITH
SUBDIVISION TWO OF THIS SECTION.
  4.  NOTWITHSTANDING  SECTION  FORTY  OF  THIS  CHAPTER  OR  ANY  OTHER
PROVISION OF LAW, APPROPRIATIONS OF THIS FUND  SHALL  BE  AVAILABLE  FOR
LIABILITIES  INCURRED  DURING AND AFTER THE CLOSE OF THE FISCAL YEAR FOR
WHICH SUCH APPROPRIATIONS ARE ENACTED, PROVIDED HOWEVER THAT SUCH APPRO-
PRIATIONS SHALL LAPSE ON THE FIFTEENTH DAY OF  SEPTEMBER  FOLLOWING  THE
CLOSE  OF THE FISCAL YEAR, AND NO MONIES SHALL THEREAFTER BE PAID OUT OF
THE STATE TREASURY OR ANY OF ITS FUNDS OR THE FUNDS UNDER ITS MANAGEMENT
PURSUANT TO SUCH APPROPRIATIONS.
  5.  THE DIRECTOR OF THE BUDGET SHALL ISSUE A CERTIFICATE  OF  APPROVAL
FOR  ANY  APPROPRIATION  IN  ANY  ACCOUNT OF THIS FUND NO LATER THAN THE

S. 7007--A                          6                        A. 10116--A

LATER OF SIXTY DAYS AFTER THE ENACTMENT OF SUCH  APPROPRIATION  OR  FIVE
DAYS AFTER THE EXECUTION OF A WRITTEN SUBALLOCATION PLAN PURSUANT TO THE
PROVISIONS  OF  SUBDIVISION  ONE  OF  THIS  SECTION. SUCH APPROVAL SHALL
SATISFY ANY OTHER REQUIREMENT FOR A CERTIFICATE OF APPROVAL.
  6.  (A)  THE  STATE  SHALL  NOT BE LIABLE FOR PAYMENTS PURSUANT TO ANY
CONTRACT, GRANT OR AGREEMENT MADE PURSUANT TO AN  APPROPRIATION  IN  ANY
ACCOUNT  OF  THIS FUND IF INSUFFICIENT MONIES ARE AVAILABLE FOR TRANSFER
TO SUCH ACCOUNT OF THIS  FUND,  AFTER  REQUIRED  TRANSFERS  PURSUANT  TO
SUBDIVISION  THREE  OF  THIS SECTION. EXCEPT WITH RESPECT TO, GRANTS, OR
AGREEMENTS EXECUTED BY ANY STATE OFFICER, EMPLOYEE, DEPARTMENT, INSTITU-
TION, COMMISSION, BOARD, OR OTHER AGENCY  OF  THE  STATE  PRIOR  TO  THE
EFFECTIVE  DATE  OF  THIS SECTION, ANY CONTRACT, GRANT OR AGREEMENT MADE
PURSUANT TO  AN  APPROPRIATION  IN  THIS  FUND  SHALL  INCORPORATE  THIS
PROVISION AS A TERM OF SUCH CONTRACT, GRANT OR AGREEMENT.
  (B)  THE  EXHAUSTION  OF  FUNDS AVAILABLE FOR SUCH TRANSFERS SHALL NOT
PRECLUDE THE APPROVAL OF CONTRACTS HEREUNDER  PURSUANT  TO  SECTION  ONE
HUNDRED  TWELVE  OF THIS CHAPTER. NOTWITHSTANDING ANY OTHER PROVISION OF
LAW, INTEREST SHALL NOT BE DUE TO ANY RECIPIENT FOR  ANY  LATE  PAYMENTS
MADE  FROM  THIS FUND WHICH RESULT FROM INSUFFICIENT MONIES BEING AVAIL-
ABLE IN AN ACCOUNT OF THIS FUND.
  7. MONIES SHALL BE PAID OUT OF SUCH ACCOUNTS ON THE AUDIT AND  WARRANT
OF  THE  STATE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE HEAD
OF THE APPROPRIATE AGENCY.
  S 6. This act does not preclude either house of the legislature or the
governor from adopting more stringent standards through its  own  guide-
lines or through the application process.
  S  7. Member item grants shall continue to be subject to review by the
respective assembly and senate fiscal and counsel  staffs,  division  of
the  budget,  the  administering  state  agency, the office of the state
comptroller, and the office of the attorney general. Nothing in this act
shall limit the authority of the  state  comptroller  and  the  attorney
general to review member item grant recipients or member item grants.
  S 8. This act shall take effect immediately.