S T A T E   O F   N E W   Y O R K
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                                 5307--A

                       2015-2016 Regular Sessions

                          I N  A S S E M B L Y

                            February 17, 2015
                               ___________

Introduced  by  M.  of A. GALEF, PAULIN, THIELE, KAVANAGH, ORTIZ, ROSEN-
  THAL, JAFFEE, LAVINE, McDONALD, ROZIC, LUPARDO, KEARNS, CORWIN,  RAIA,
  GIGLIO,  BUTLER,  MONTESANO, TENNEY, FINCH -- Multi-Sponsored by -- M.
  of A. BARCLAY, BLANKENBUSH, CERETTO, CROUCH, CURRAN, DiPIETRO, DUPREY,
  HAWLEY, KOLB, LOPEZ, LUPINACCI, MAGEE, McDONOUGH,  McKEVITT,  McLAUGH-
  LIN,  SALADINO, SCHIMEL, SIMON, STEC, TEDISCO, WALTER -- read once and
  referred to the Committee on Governmental Operations -- recommitted to
  the Committee on Governmental Operations in accordance  with  Assembly
  Rule  3,  sec.  2  --  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, discretionary funds
  and unitemized lump sum appropriations and authorizes the  legislative
  ethics  commission to review violations of the qualification of member
  items, discretionary funds and unitemized lump sum appropriations; and
  to amend the state finance law, in  relation  to  requiring  that  all
  member  items,  discretionary  funds and unitemized lump sum appropri-
  ations 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,  DISCRETIONARY  FUNDS AND UNITEMIZED LUMP SUM
APPROPRIATIONS. 1. AS USED IN  THIS  SECTION,  THE  TERM  "MEMBER  ITEM,
DISCRETIONARY  FUND  OR  UNITEMIZED LUMP SUM APPROPRIATION" SHALL MEAN A
BUDGETARY ALLOCATION AS FUNDED BY  THE  LEGISLATIVE  COMMUNITY  PROJECTS
FUND  AS  DEFINED IN SECTION NINETY-NINE-Y OF THE STATE FINANCE LAW, AND
THE  EXECUTIVE  COMMUNITY  PROJECTS   FUND   AS   DEFINED   IN   SECTION
NINETY-NINE-Z  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 INTERNAL REVENUE

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD00053-08-6
              

A. 5307--A                          2

CODE IN NEW YORK STATE, A STATE AGENCY, A MUNICIPALITY OR  THEIR  AFFIL-
IATED DEPARTMENT, UNIVERSITY, COLLEGE, OR SCHOOL DISTRICT.
  2.  MEMBER ITEMS, DISCRETIONARY FUNDS OR UNITEMIZED LUMP SUM APPROPRI-
ATIONS SHALL NOT BE APPROPRIATED WHEN  A  CONFLICT  OF  INTEREST  EXISTS
BETWEEN  THE LEGISLATOR OR GOVERNOR DESIGNATING THE MEMBER ITEM, DISCRE-
TIONARY FUND AND UNITEMIZED LUMP SUM  APPROPRIATION  AND  THE  POTENTIAL
RECIPIENT.  A  MEMBER  ITEM,  DISCRETIONARY  FUND OR UNITEMIZED LUMP SUM
APPROPRIATION CANNOT FUND ORGANIZATIONS THAT EMPLOY OR OTHERWISE COMPEN-
SATE THE LEGISLATOR OR GOVERNOR, A MEMBER OF THE LEGISLATOR'S OR  GOVER-
NOR'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, DISCRETIONARY  FUNDS  AND  UNITEMIZED  LUMP  SUM
APPROPRIATIONS  IF  THE LEGISLATOR OR GOVERNOR, A MEMBER OF THE LEGISLA-
TOR'S OR GOVERNOR'S FAMILY, ANY PERSON SHARING THE HOME OF THE  LEGISLA-
TOR  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 ORGANIZATION.
  3. PRIOR TO THE APPROPRIATION OF MEMBER ITEMS DISCRETIONARY FUNDS  AND
UNITEMIZED LUMP SUM APPROPRIATIONS, 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
DISCRETIONARY  FUNDS  OR  UNITEMIZED LUMP SUM APPROPRIATION ALLOCATED TO
THE RESPECTIVE LEGISLATIVE BODY;
  (B) REQUIRE THE LEGISLATOR OR GOVERNOR REQUESTING  SUCH  MEMBER  ITEM,
DISCRETIONARY  FUND  OR  UNITEMIZED  LUMP  SUM APPROPRIATION TO SUBMIT A
SIGNED CONFLICT OF INTEREST FORM ALONG WITH THE MEMBER ITEM  DISCRETION-
ARY  FUND  OR  UNITEMIZED  LUMP SUM APPROPRIATION REQUEST FORM TO ENSURE
THAT NO CONFLICT OF INTEREST EXISTS. THE LEGISLATOR  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, DISCRETIONARY FUND OR UNITEMIZED LUMP SUM  APPROPRI-
ATION  FUNDING.  SUCH A CONFLICT OF INTEREST FORM SHALL BE SIGNED BY THE
LEGISLATOR OR GOVERNOR UNDER PENALTY OF PERJURY, STATING THAT THE MEMBER
ITEM, DISCRETIONARY FUND OR UNITEMIZED LUMP  SUM  APPROPRIATION  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, DISCRETIONARY FUNDS AND UNITEMIZED LUMP SUM APPROPRIATIONS EVALU-
ATE THE SPENDING OF SUCH MEMBER  ITEM  FUNDS,  DISCRETIONARY  FUNDS  AND
UNITEMIZED LUMP SUM APPROPRIATIONS 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;

A. 5307--A                          3

  (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.
  (E) THE LEGISLATURE SHALL PRODUCE AND MAKE PUBLIC A COMPILED QUARTERLY
REPORT  WITH  RESPECT TO EACH MEMBER ITEM, DISCRETIONARY FUND OR UNITEM-
IZED LUMP SUM APPROPRIATION, THE NAME OF THE MEMBER OF THE  SENATE,  THE
MEMBER OF THE ASSEMBLY, THE GOVERNOR, OR ANY STATE ELECTED OFFICIAL THAT
IS  SPONSORING THE MEMBER ITEM DISCRETIONARY FUND OR UNITEMIZED LUMP SUM
APPROPRIATION, THE DOLLAR AMOUNT OF THE MEMBER ITEM  DISCRETIONARY  FUND
OR UNITEMIZED LUMP SUM APPROPRIATION TO BE APPROPRIATED, THE NAME OF THE
LOCAL  PROJECT, ORGANIZATION, OR OTHER ENTITY RECEIVING SUCH MEMBER ITEM
DISCRETIONARY FUND OR UNITEMIZED LUMP SUM APPROPRIATION.  SUCH  COMPILED
QUARTERLY  REPORTS  DETAILING AND DISCLOSING THE USE OF SUCH FUNDS SHALL
START WITH THE DATE OF THE ENACTING STATE BUDGET  WITH  UPDATED  REPORTS
BEING DELIVERED ON EACH FIRST DAY OF EVERY FOURTH MONTH THEREAFTER. SUCH
PUBLICATION  SHALL,  AT  A  MINIMUM, BE PUBLISHED ON THE WEBSITE OF EACH
HOUSE OF THE LEGISLATURE IN A MANNER THAT IS EASILY ACCESSIBLE.
  4. ALL MEMBER ITEM, DISCRETIONARY FUND AND UNITEMIZED LUMP SUM  APPRO-
PRIATION 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,  DISCRE-
TIONARY FUND OR UNITEMIZED LUMP SUM APPROPRIATION RECIPIENT ORGANIZATION
SHALL  ATTEST  UNDER  PENALTY OF PERJURY THAT THE RECIPIENT ORGANIZATION
ACTUALLY SPENT THE  MEMBER  ITEM  GRANT  MONEY,  DISCRETIONARY  FUND  OR
UNITEMIZED  LUMP  SUM  APPROPRIATION  IN THE MANNER AND FOR THE PURPOSES
DESIGNATED IN ITS APPLICATION FOR A MEMBER ITEM, DISCRETIONARY FUND  AND
ITEMIZED  LUMP  SUM  APPROPRIATION  ALLOCATION. FOR ALLOCATIONS TOTALING
MORE THAN FIFTY THOUSAND DOLLARS, A DULY  AUTHORIZED  REPRESENTATIVE  OF
THE MEMBER ITEM, DISCRETIONARY FUND OR UNITEMIZED LUMP SUM APPROPRIATION
RECIPIENT  ORGANIZATION  SHALL  ATTEST UNDER PENALTY OF PERJURY THAT THE
RECIPIENT ORGANIZATION ACTUALLY  SPENT  THE  MEMBER  ITEM  GRANT  MONEY,
DISCRETIONARY  FUND  OR  UNITEMIZED LUMP SUM APPROPRIATION IN THE MANNER
AND FOR THE PURPOSES DESIGNATED IN ITS APPLICATION FOR  A  MEMBER  ITEM,
DISCRETIONARY  FUND  AND  ITEMIZED LUMP SUM APPROPRIATION ALLOCATION AND
SHALL FILE A FINAL REPORT,  UNDER  PENALTY  OF  PERJURY,  DETAILING  THE
EXPENDITURES.  SUCH REPORT SHALL BE SUBMITTED BY MAY THIRTY-FIRST OF THE
CALENDAR YEAR FOLLOWING THE CALENDAR YEAR  IN  WHICH  THE  MEMBER  ITEM,
DISCRETIONARY  FUND  OR  UNITEMIZED LUMP SUM APPROPRIATION WAS ALLOCATED
AND SHALL FOLLOW THE REQUIREMENTS ESTABLISHED BY THE  ATTORNEY  GENERAL.

A. 5307--A                          4

NO FUTURE MEMBER ITEM GRANTS, DISCRETIONARY FUNDS OR UNITEMIZED LUMP SUM
APPROPRIATIONS SHALL BE APPROVED FOR AN ORGANIZATION WHICH HAS PREVIOUS-
LY  RECEIVED  A  MEMBER  ITEM,  DISCRETIONARY FUND AND ITEMIZED LUMP SUM
APPROPRIATION  ALLOCATION  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, DISCRETIONARY
FUND AND ITEMIZED LUMP SUM APPROPRIATION ALLOCATION,  EACH  ORGANIZATION
SEEKING  A  MEMBER ITEM, DISCRETIONARY FUND AND ITEMIZED LUMP SUM APPRO-
PRIATION ALLOCATION MUST MEET PRE-CERTIFICATION 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-CERTIFI-
CATION  IS  A CERTIFIED TAX-EXEMPT NON-PROFIT ORGANIZATION UNDER SECTION
501(C)(3) OF THE INTERNAL REVENUE CODE IN NEW YORK STATE, A STATE  AGEN-
CY,  A MUNICIPALITY OR THEIR AFFILIATED 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 ORGAN-
IZATION HAS RECEIVED MEMBER ITEM FUNDING, DISCRETIONARY FUNDS OR UNITEM-
IZED LUMP SUM APPROPRIATIONS 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 ADDITIONAL REGULATORY STANDARDS ESTABLISHED BY THE ATTORNEY
GENERAL.
  6.  ANY  STATE  AGENCY THAT PROVIDES FUNDING FOR MEMBER ITEMS, DISCRE-
TIONARY FUNDS OR UNITEMIZED LUMP SUM APPROPRIATIONS SHALL REVIEW  MEMBER
ITEM  SPENDING,  DISCRETIONARY  FUNDS  AND UNITEMIZED LUMP SUM APPROPRI-
ATIONS ON AN ANNUAL BASIS AND PERIODICALLY REVIEW GRANT RECIPIENTS'  USE
OF GRANT MONEY.
  7.  ANY  MEMBER ITEM, DISCRETIONARY FUND OR UNITEMIZED LUMP SUM APPRO-
PRIATION APPROPRIATED BY THE LEGISLATURE SHALL BE SET  FORTH  SEPARATELY
AND APART FROM EVERY OTHER MEMBER ITEM, DISCRETIONARY FUND OR UNITEMIZED
LUMP  SUM APPROPRIATION 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,  DISCRETIONARY FUND OR UNITEMIZED LUMP SUM APPROPRIATION TO COMPLY
WITH THE PROVISIONS OF THIS CHAPTER SHALL BE SUBMITTED TO (A) THE LEGIS-
LATIVE ETHICS COMMISSION WITH REGARD TO  A  MEMBER  ITEM,  DISCRETIONARY
FUND  OR  UNITEMIZED  LUMP  SUM  APPROPRIATION  ALLOCATION  MADE  AT THE
DISCRETION OF A LEGISLATOR, OR (B) THE COMMISSION  ON  PUBLIC  INTEGRITY
WITH  REGARD TO A MEMBER ITEM, DISCRETIONARY FUND OR UNITEMIZED LUMP SUM
APPROPRIATION ALLOCATION MADE AT THE DISCRETION OF  THE  GOVERNOR.  EACH
COMPLAINT  SHALL BE INVESTIGATED IN ACCORDANCE WITH THE RULES AND PROCE-
DURES 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

A. 5307--A                          5

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, DISCRETIONARY FUND OR UNITEMIZED
LUMP SUM APPROPRIATION ALLOCATIONS TOGETHER WITH  OTHER  MEMBER'S  ALLO-
CATIONS 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-y 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-z to
read as follows:
  S 99-Z. 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

A. 5307--A                          6

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 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, discretionary funds and unitemized  lump  sum
appropriations  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, discretionary fund or unitemized lump sum appropri-

A. 5307--A                          7

ation recipients or member item grants, discretionary funds and  unitem-
ized lump sum appropriations.
  S 7. This act shall take effect immediately.