S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  1679--A
 
                        2017-2018 Regular Sessions
 
                             I N  S E N A T E
 
                             January 10, 2017
                                ___________
 
 Introduced  by  Sen. TEDISCO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Finance -- recommitted  to
   the  Committee  on Finance 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  state  finance law, in relation to enacting the
   "truth in spending act"
 
   THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section  1.  This act shall be known and may be cited as the "truth in
 spending act".
   § 2. The state finance law is amended by adding a new section 53-e  to
 read as follows:
   §  53-E. APPROPRIATIONS; FULL DISCLOSURE. 1. PRIOR TO THE DISBURSEMENT
 OF ANY BUDGETARY ALLOCATION MADE PURSUANT TO THIS ARTICLE, SECTION NINE-
 TY-NINE-D OF THIS CHAPTER, OR SUBDIVISION FIVE OF SECTION TWENTY-FOUR OF
 THIS CHAPTER AT THE REQUEST OF THE GOVERNOR OR MEMBER  OF  THE  LEGISLA-
 TURE, THE GOVERNOR AND THE LEGISLATURE SHALL:
   (A) ENSURE THAT FUNDS SHALL INCLUDE A BRIEF DESCRIPTION OF THE PROJECT
 TO BE FUNDED;
   (B)  REQUIRE THE GOVERNOR OR MEMBER OF THE LEGISLATURE REQUESTING SUCH
 APPROPRIATION TO SIGN A CONFLICT OF INTEREST FORM, AS PRESCRIBED BY  THE
 ATTORNEY  GENERAL,  WHICH  SHALL BE SUBMITTED TO THE ATTORNEY GENERAL TO
 ENSURE THAT NO CONFLICT OF INTEREST  EXISTS.  SUCH  FORM  SHALL  REQUIRE
 DISCLOSURE  OF  ALL  POLITICAL  DONATIONS  RECEIVED WITHIN THE PAST FIVE
 YEARS BY SUCH OFFICIAL FROM THE INTENDED RECIPIENT OF APPROPRIATED FUND-
 ING IF THE CUMULATIVE AMOUNT OF SUCH DONATIONS  MEETS  OR  EXCEEDS  FOUR
 THOUSAND  DOLLARS  AND  WERE MADE WITHIN THE PAST FIVE YEARS.  SUCH FORM
 SHALL BE SIGNED BY THE GOVERNOR  OR  MEMBER  OF  THE  LEGISLATURE  UNDER
 PENALTY  OF  PERJURY  AND SHALL BE FILED, IN THE CASE OF A MEMBER OF THE
 ASSEMBLY, THE CLERK OF THE ASSEMBLY AND IN THE CASE OF A MEMBER  OF  THE
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD05620-02-8

 S. 1679--A                          2
 
 SENATE,  THE  SERGEANT  AT ARMS OF THE SENATE.  SUCH REQUESTED APPROPRI-
 ATION SHALL NOT BE PROVIDED IF A CONFLICT OF INTEREST EXISTS BETWEEN THE
 GOVERNOR OR A MEMBER OF THE LEGISLATURE  DESIGNATING  THE  APPROPRIATION
 AND  THE  POTENTIAL RECIPIENT. SUCH APPROPRIATIONS SHALL NOT BE PROVIDED
 TO ORGANIZATIONS THAT EMPLOY OR OTHERWISE  COMPENSATE  THE  GOVERNOR  OR
 MEMBER OF THE LEGISLATURE, GOVERNOR'S FAMILY OR LEGISLATOR'S FAMILY, ANY
 PERSON  SHARING  THE  PRIMARY RESIDENCE OF THE GOVERNOR OR MEMBER OF THE
 LEGISLATURE OR THE GOVERNOR'S OR A MEMBER OF THE LEGISLATURE'S STAFF FOR
 SERVICES OR LABOR RENDERED. FURTHERMORE SUCH APPROPRIATIONS SHALL NOT BE
 DESIGNATED IF THE GOVERNOR OR MEMBER OF THE LEGISLATURE, A MEMBER OF THE
 GOVERNOR'S OR MEMBER OF THE LEGISLATOR'S FAMILY, ANY PERSON SHARING  THE
 PRIMARY  RESIDENCE  OF  THE  GOVERNOR  OR MEMBER OF THE LEGISLATURE OR A
 MEMBER OF THE  GOVERNOR'S  OR  MEMBER  OF  THE  LEGISLATURE'S  STAFF  IS
 INVOLVED  WITH  THE  OPERATIONS  OF THE ORGANIZATION WHICH WOULD RECEIVE
 SUCH APPROPRIATION IN A  DECISION-MAKING  CAPACITY  INCLUDING,  BUT  NOT
 LIMITED  TO, WORKING ON AN UNPAID, VOLUNTEER BASIS OR AS A MEMBER OF THE
 DIRECTING BOARD OF AN ORGANIZATION; AND
   (C) ENSURE THAT FUNDS BE USED FOR A PUBLIC PURPOSE.
   2. AT LEAST SEVENTY-TWO HOURS PRIOR TO APPROVAL BY THE LEGISLATURE  OF
 THE  STATE  BUDGET, OR A LEGISLATIVE BILL CONTAINING AN APPROPRIATION AS
 DESCRIBED IN SUBDIVISION FIVE OF SECTION TWENTY-FOUR OF THIS CHAPTER THE
 LEGISLATURE MUST MAKE PUBLIC WITH RESPECT TO EACH ALLOCATION, THE MEMBER
 OF THE SENATE, THE MEMBER OF THE ASSEMBLY OR THE GOVERNOR SPONSORING THE
 ALLOCATION, THE DOLLAR AMOUNT TO BE APPROPRIATED, THE SENATE AND  ASSEM-
 BLY  DISTRICT  IN WHICH THE ENTITY RECEIVING SUCH FUNDING IS PRINCIPALLY
 LOCATED, THE NAME OF THE LOCAL PROJECT,  ORGANIZATION  OR  OTHER  ENTITY
 RECEIVING  SUCH ALLOCATION AND A DESCRIPTION OF THE PROJECT TO BE FUNDED
 OR PURPOSE FOR MAKING SUCH ALLOCATION.   SUCH PUBLICATION  SHALL,  AT  A
 MINIMUM,  BE  MADE  ON  THE WEBSITE OF EACH HOUSE OF THE LEGISLATURE AND
 SHALL BE ACCESSIBLE VIA A LINK ON THE HOME PAGE OF SUCH WEBSITE.    SUCH
 WEBPAGE  SHALL  BE  IN  A  MACHINE READABLE FORMAT AND SHALL INCLUDE ALL
 MEMORANDA OF UNDERSTANDING, PLANS, RESOLUTIONS, CONTRACTS, AND ANY OTHER
 AGREEMENTS RELATED TO THE DISTRIBUTION OF FUNDS TO  RECIPIENTS.    ADDI-
 TIONALLY,  THE COMPTROLLER SHALL ESTABLISH AND MAINTAIN SUCH INFORMATION
 ON A SEPARATE WEBSITE.
   3. ALL 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 ALLOCATION RECIPIENT'S
 ORGANIZATION SHALL ATTEST UNDER PENALTY OF PERJURY  THAT  THE  RECIPIENT
 ORGANIZATION  ACTUALLY  SPENT  SUCH  FUNDS  IN  THE  MANNER  AND FOR THE
 PURPOSES DESIGNATED IN ANY APPLICATION  FOR  AN  ALLOCATION.  FOR  ALLO-
 CATIONS  TOTALING  MORE  THAN  FIFTY THOUSAND DOLLARS, A DULY AUTHORIZED
 REPRESENTATIVE OF THE RECIPIENT ORGANIZATION SHALL ATTEST UNDER  PENALTY
 OF  PERJURY  THAT THE RECIPIENT ORGANIZATION ACTUALLY SPENT THE MONEY IN
 THE MANNER AND FOR THE PURPOSES DESIGNATED IN ITS APPLICATION  FOR  SUCH
 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
 ALLOCATION WAS MADE AND SHALL FOLLOW THE REQUIREMENTS ESTABLISHED BY THE
 ATTORNEY GENERAL. NO FUTURE ALLOCATION SHALL BE APPROVED FOR  AN  ORGAN-
 IZATION WHICH HAS PREVIOUSLY RECEIVED AN ALLOCATION UNTIL SUCH DOCUMENTS
 HAVE BEEN SIGNED AND RECEIVED BY THE OFFICE OF THE NEW YORK STATE ATTOR-
 NEY GENERAL.
   4.  PRIOR  TO SUBMITTING AN APPLICATION FOR AN ALLOCATION, EACH ORGAN-
 IZATION SEEKING AN ALLOCATION SHALL MEET PRE-CERTIFICATION STANDARDS  AS
 ESTABLISHED  BY  THE OFFICE OF THE NEW YORK STATE ATTORNEY GENERAL. AT A

 S. 1679--A                          3

 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 AFFILIATED DEPARTMENT, UNIVERSI-
 TY,  COLLEGE,  OR SCHOOL DISTRICT CAPABLE OF ACCEPTING POTENTIAL FUNDING
 AND THAT SUCH ENTITY IS NOT IN BANKRUPTCY OR ARREARS ON ANY STATE  OBLI-
 GATIONS.  IF AN ORGANIZATION HAS RECEIVED AN ALLOCATION IN THE PAST, THE
 ORGANIZATION SHALL ALSO COMPLY  WITH  THE  REQUIREMENTS  OF  SUBDIVISION
 THREE  OF  THIS  SECTION.  NO APPLICATION FROM ANY ORGANIZATION SHALL BE
 CONSIDERED BY A LEGISLATOR UNTIL THE OFFICE OF THE NEW YORK STATE ATTOR-
 NEY GENERAL HAS CERTIFIED SUCH ORGANIZATION BASED UPON THE CRITERIA  SET
 FORTH  IN  THIS SUBDIVISION AND UPON ANY ADDITIONAL REGULATORY STANDARDS
 ESTABLISHED BY THE ATTORNEY GENERAL.
   5. ANY ALLOCATION BY THE LEGISLATURE AND THE  GOVERNOR  SHALL  BE  SET
 FORTH  SEPARATELY  AND  APART  FROM  EVERY OTHER ALLOCATION IN THE STATE
 BUDGET AND IDENTIFY EACH LEGISLATOR'S OR THE GOVERNOR'S REQUEST.
   6. ANY VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL  BE  REFERRED
 TO   THE   LEGISLATIVE   ETHICS  COMMISSION  OR  ITS  SUCCESSOR  ENTITY.
 COMPLAINTS REGARDING THE FAILURE TO USE AN ALLOCATION TO COMPLY WITH THE
 PROVISIONS OF THIS CHAPTER SHALL BE SUBMITTED  TO  (A)  THE  LEGISLATIVE
 ETHICS COMMISSION WITH REGARD TO AN ALLOCATION MADE AT THE DISCRETION OF
 A  LEGISLATOR,  OR (B) THE JOINT COMMISSION ON PUBLIC ETHICS WITH REGARD
 TO AN 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.
   §  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 THE  LEGISLATOR  REQUESTING  SUCH  APPROPRIATION  and
 [provided  further  that] for all non-federal state operations appropri-
 ations, such bill or bills shall only  contain  itemized  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] LEGISLATIVE BILL 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

 S. 1679--A                          4

 vote.   THE PROVISIONS OF THIS SECTION SHALL NOT PRECLUDE MEMBERS OF THE
 LEGISLATURE FROM COLLABORATING WITH EACH OTHER IN THE SELECTION OF ALLO-
 CATIONS AND PACKAGING THEIR INDIVIDUAL ALLOCATIONS TOGETHER  WITH  OTHER
 MEMBERS' ALLOCATIONS FOR SPECIFIED REGIONAL OR JOINT PROJECTS.
   §  4. Section 40 of the state finance law is amended by adding two new
 subdivisions 5 and 6 to read as follows:
   5. NOTWITHSTANDING ANY OTHER LAW, RULE OR REGULATION TO THE  CONTRARY,
 THE  PROVISIONS OF SUBDIVISION THREE OF THIS SECTION SHALL NOT BE SUPER-
 SEDED EXCEPT UPON APPROVAL BY A TWO-THIRDS VOTE OF THE SENATE AND ASSEM-
 BLY.
   6. A RESOLUTION PROVIDING FOR THE DISBURSEMENT OF  FUNDS  PURSUANT  TO
 ANY  PROVISION  OF LAW SHALL NOT BE APPROVED LESS THAN SEVENTY-TWO HOURS
 SUBSEQUENT TO THE INTRODUCTION OF SUCH RESOLUTION.
   § 5. Subdivision 2 of section 24 of the state finance law  is  amended
 by adding a new paragraph (c) to read as follows:
   (C)  ON OR AFTER JANUARY FIRST, TWO THOUSAND NINETEEN, ANY BUDGET BILL
 SUBMITTED BY THE GOVERNOR SHALL ONLY CONTAIN ITEMIZED APPROPRIATIONS.
   § 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.
   §  7. Allocations made pursuant to article 4 or section 99-d, known as
 the community projects fund, of the state finance law 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 allocation recipients or
 discretionary grants.
   § 8. This act shall take effect immediately.