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

                                   920

                       2013-2014 Regular Sessions

                            I N  S E N A T E

                               (PREFILED)

                             January 9, 2013
                               ___________

Introduced  by  Sens.  SERRANO,  BONACIC,  BRESLIN, DeFRANCISCO, GRIFFO,
  KRUEGER,  LITTLE,  PERALTA,  RIVERA,   SEWARD,   SQUADRON,   STAVISKY,
  STEWART-COUSINS -- read twice and ordered printed, and when printed to
  be  committed  to the Committee on Investigations and Government Oper-
  ations

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-c
to read as follows:
  S  54-C.  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-U OF THE STATE
FINANCE  LAW,  AND  THE  EXECUTIVE COMMUNITY PROJECTS FUND AS DEFINED IN
SECTION NINETY-NINE-V 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-
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

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

                                                           LBD00533-01-3

S. 920                              2

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
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.

S. 920                              3

  (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.
  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

S. 920                              4

DISCRETION OF THE GOVERNOR. EACH  COMPLAINT  SHALL  BE  INVESTIGATED  IN
ACCORDANCE WITH THE RULES AND PROCEDURES OF THE COMMISSION RECEIVING THE
COMPLAINT.
  S  2.  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
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 3. Section 99-d of the state finance law, as added by chapter 474 of
the laws of 1996, is renumbered section 99-u and the section heading and
subdivision 1, subdivision 1 as amended by section 2 of part BB of chap-
ter 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 4. The state finance law is amended by adding a new section 99-v  to
read as follows:
  S  99-V.  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

S. 920                              5

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
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. 920                              6

  S 5. 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  6. 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 7. This act shall take effect immediately.