S T A T E O F N E W Y O R K ________________________________________________________________________ 5307 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, BROOK-KRASNY, McDONALD, ROZIC, LUPARDO, KEARNS, CORWIN, RAIA, GIGLIO, BUTLER, MONTESANO, TENNEY, FINCH -- Multi-Spon- sored by -- M. of A. BARCLAY, BLANKENBUSH, CERETTO, CROUCH, CURRAN, DUPREY, HAWLEY, KOLB, LOPEZ, LUPINACCI, MAGEE, McDONOUGH, McKEVITT, McLAUGHLIN, SALADINO, SCHIMEL, TEDISCO, WALTER -- read once and referred to the Committee on Governmental Operations 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: 1 Section 1. The legislative law is amended by adding a new section 54-c 2 to read as follows: 3 S 54-C. MEMBER ITEMS. 1. AS USED IN THIS SECTION, THE TERM "MEMBER 4 ITEM" SHALL MEAN A BUDGETARY ALLOCATION AS FUNDED BY THE LEGISLATIVE 5 COMMUNITY PROJECTS FUND AS DEFINED IN SECTION NINETY-NINE-W OF THE STATE 6 FINANCE LAW, AND THE EXECUTIVE COMMUNITY PROJECTS FUND AS DEFINED IN 7 SECTION NINETY-NINE-X OF THE STATE FINANCE LAW AT THE DISCRETION AND 8 REQUEST OF THE GOVERNOR OR A MEMBER OF THE LEGISLATURE FOR A CERTIFIED 9 TAX-EXEMPT NON-PROFIT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTER- 10 NAL REVENUE CODE IN NEW YORK STATE, A STATE AGENCY, A MUNICIPALITY OR 11 THEIR AFFILIATED DEPARTMENT, UNIVERSITY, COLLEGE, OR SCHOOL DISTRICT. 12 2. MEMBER ITEMS SHALL NOT BE APPROPRIATED WHEN A CONFLICT OF INTEREST 13 EXISTS BETWEEN THE LEGISLATOR OR GOVERNOR DESIGNATING THE MEMBER ITEM 14 AND THE POTENTIAL RECIPIENT. A MEMBER ITEM CANNOT FUND ORGANIZATIONS 15 THAT EMPLOY OR OTHERWISE COMPENSATE THE LEGISLATOR OR GOVERNOR, A MEMBER 16 OF THE LEGISLATOR'S OR GOVERNOR'S FAMILY, ANY PERSON SHARING THE HOME OF 17 THE LEGISLATOR OR GOVERNOR OR A MEMBER OF THE LEGISLATOR'S OR GOVERNOR'S EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD00053-01-5 A. 5307 2 1 STAFF FOR SERVICES OR LABOR RENDERED. FURTHERMORE, LEGISLATORS AND THE 2 GOVERNOR SHALL NOT DESIGNATE MEMBER ITEMS IF THE LEGISLATOR OR GOVERNOR, 3 A MEMBER OF THE LEGISLATOR'S OR GOVERNOR'S FAMILY, ANY PERSON SHARING 4 THE HOME OF THE LEGISLATOR OR GOVERNOR OR A MEMBER OF THE LEGISLATOR'S 5 OR GOVERNOR'S STAFF IS INVOLVED WITH THE OPERATIONS OF THE ORGANIZATION 6 IN A DECISION-MAKING CAPACITY INCLUDING BUT NOT LIMITED TO WORKING ON AN 7 UNPAID, VOLUNTEER BASIS OR A MEMBER OF THE DIRECTING BOARD OF AN ORGAN- 8 IZATION. 9 3. PRIOR TO THE APPROPRIATION OF MEMBER ITEMS, THE LEGISLATURE SHALL: 10 (A) PROVIDE THAT EACH MEMBER OF THE SENATE AND EACH MEMBER OF THE 11 ASSEMBLY RECEIVE AN EQUAL SHARE OF THE DOLLAR AMOUNT OF MEMBER ITEMS 12 ALLOCATED TO THE RESPECTIVE LEGISLATIVE BODY; 13 (B) REQUIRE THE LEGISLATOR OR GOVERNOR REQUESTING SUCH MEMBER ITEM TO 14 SUBMIT A SIGNED CONFLICT OF INTEREST FORM ALONG WITH THE MEMBER ITEM 15 REQUEST FORM TO ENSURE THAT NO CONFLICT OF INTEREST EXISTS. THE LEGISLA- 16 TOR OR GOVERNOR SHALL DISCLOSE ON THE CONFLICT OF INTEREST FORM ALL 17 POLITICAL DONATIONS HE OR SHE IS RECEIVING OR HAS RECEIVED IN THE PAST 18 FROM THE INTENDED RECIPIENT OF THE MEMBER ITEM FUNDING. SUCH A CONFLICT 19 OF INTEREST FORM SHALL BE SIGNED BY THE LEGISLATOR OR GOVERNOR UNDER 20 PENALTY OF PERJURY, STATING THAT THE MEMBER ITEM IS NOT BEING DIRECTED 21 IN A MANNER DESCRIBED IN SUBDIVISION TWO OF THIS SECTION; 22 (C) PROVIDE THAT ANY STATE AGENCY THAT PROVIDES FUNDING FOR MEMBER 23 ITEMS EVALUATE THE SPENDING OF SUCH MEMBER ITEM FUNDS BY THE LOCAL 24 PROJECT, ORGANIZATION OR OTHER ENTITY RECEIVING SUCH FUNDS. THE STATE 25 AGENCY SHALL TRACK THE FUNDS TO ENSURE THAT THEY ARE BEING SPENT IN A 26 MANNER CONSISTENT WITH THE MEMBER ITEM APPLICATION; 27 (D) ENSURE THAT THE FOLLOWING CRITERIA ARE SATISFIED: 28 (1) GRANTS ARE TO BE DESIGNATED FOR PUBLIC PURPOSES. THE PROGRAM 29 FUNDED MUST BE OPEN AND AVAILABLE TO ALL INDIVIDUALS ON A NONSECTARIAN 30 BASIS; 31 (2) GRANTS ARE PROVIDED IN SUPPORT OF SERVICES AND ACTIVITIES THAT 32 HAVE STATEWIDE BENEFIT OR BENEFIT LOCAL COMMUNITIES; 33 (3) GRANTS ARE ONLY DESIGNATED FOR NOT-FOR-PROFIT ORGANIZATIONS, MUNI- 34 CIPALITIES OR THEIR AFFILIATED DEPARTMENTS/AGENCIES, UNIVERSITIES, 35 COLLEGES, OR SCHOOL DISTRICTS; 36 (4) GRANTS ARE AVAILABLE SOLELY FOR ACTIVITIES AND PROGRAMS CONDUCTED 37 WITHIN THE STATE OF NEW YORK; 38 (5) GRANTS ARE NOT TO BE REDISTRIBUTED UNLESS THE GRANT RECIPIENT IS 39 IDENTIFIED AND THE GRANT TO THE END RECIPIENT COMPLIES WITH THE CRITE- 40 RIA; 41 (6) GRANTS ARE TO BE USED ONLY FOR THE PURPOSE STATED IN THE FUNDING 42 REQUEST; 43 (7) GRANTS ARE NOT TO BE USED TO FUND LOAN PROGRAMS; 44 (8) GRANTS ARE NOT TO BE USED FOR THE FOLLOWING PURPOSES: (A) TO FUND 45 AN ENTITY IN BANKRUPTCY, RECEIVERSHIP, OR FORECLOSURE OR TO FUND LEGAL 46 OR ADMINISTRATIVE EXPENSES RELATED TO BANKRUPTCY, RECEIVERSHIP OR FORE- 47 CLOSURE PROCEEDINGS; (B) TO PAY FOR ANY ARREARS IN WORKERS' COMPEN- 48 SATION, UNEMPLOYMENT INSURANCE OR OTHER EMPLOYEE BENEFITS; OR (C) TO PAY 49 FOR ANY ARREARS OR CURRENT OBLIGATIONS FOR FEDERAL, STATE, OR MUNICIPAL 50 TAXES; FOR LOBBYING ACTIVITIES AS DEFINED UNDER SECTION ONE-C OF THIS 51 CHAPTER AND COMPARABLE SECTIONS OF FEDERAL OR MUNICIPAL LAW; 52 (9) GRANTS ARE NOT TO BE THE ONLY SIGNIFICANT SOURCE OF FUNDING FOR 53 THE ORGANIZATION; 54 (10) GRANT APPLICATIONS SHALL INCLUDE A BRIEF DESCRIPTION OF THE 55 PROJECT TO BE FUNDED; AND A. 5307 3 1 (11) GRANTS SHALL NOT BE USED BY RECIPIENTS TO PAY WAGES OR OTHER 2 EMPLOYEE BENEFITS. 3 (E) AT LEAST TWENTY-FOUR HOURS PRIOR TO APPROVAL BY THE LEGISLATURE OF 4 THE STATE BUDGET, THE LEGISLATURE MUST MAKE PUBLIC WITH RESPECT TO EACH 5 MEMBER ITEM, THE MEMBER OF THE SENATE, THE MEMBER OF THE ASSEMBLY OR THE 6 GOVERNOR SPONSORING THE MEMBER ITEM, THE DOLLAR AMOUNT OF THE MEMBER 7 ITEM TO BE APPROPRIATED, AND THE NAME OF THE LOCAL PROJECT, ORGANIZATION 8 OR OTHER ENTITY RECEIVING SUCH MEMBER ITEM. SUCH PUBLICATION SHALL, AT A 9 MINIMUM, BE MADE ON THE WEBSITE OF EACH HOUSE OF THE LEGISLATURE IN A 10 MANNER THAT IS EASILY ACCESSIBLE. 11 4. ALL MEMBER ITEM ALLOCATION RECIPIENTS SHALL PROVIDE CERTIFICATION 12 OF PROPER USE OF FUNDS RECEIVED. FOR ALLOCATIONS TOTALING LESS THAN 13 FIFTY THOUSAND DOLLARS, A DULY AUTHORIZED REPRESENTATIVE OF THE MEMBER 14 ITEM RECIPIENT ORGANIZATION SHALL ATTEST UNDER PENALTY OF PERJURY THAT 15 THE RECIPIENT ORGANIZATION ACTUALLY SPENT THE MEMBER ITEM GRANT MONEY IN 16 THE MANNER AND FOR THE PURPOSES DESIGNATED IN ITS APPLICATION FOR A 17 MEMBER ITEM ALLOCATION. FOR ALLOCATIONS TOTALING MORE THAN FIFTY THOU- 18 SAND DOLLARS, A DULY AUTHORIZED REPRESENTATIVE OF THE MEMBER ITEM RECIP- 19 IENT ORGANIZATION SHALL ATTEST UNDER PENALTY OF PERJURY THAT THE RECIPI- 20 ENT ORGANIZATION ACTUALLY SPENT THE MEMBER ITEM GRANT MONEY IN THE 21 MANNER AND FOR THE PURPOSES DESIGNATED IN ITS APPLICATION FOR A MEMBER 22 ITEM ALLOCATION AND SHALL FILE A FINAL REPORT, UNDER PENALTY OF PERJURY, 23 DETAILING THE EXPENDITURES. SUCH REPORT SHALL BE SUBMITTED BY MAY THIR- 24 TY-FIRST OF THE CALENDAR YEAR FOLLOWING THE CALENDAR YEAR IN WHICH THE 25 MEMBER ITEM WAS ALLOCATED AND SHALL FOLLOW THE REQUIREMENTS ESTABLISHED 26 BY THE ATTORNEY GENERAL. NO FUTURE MEMBER ITEM GRANTS SHALL BE APPROVED 27 FOR AN ORGANIZATION WHICH HAS PREVIOUSLY RECEIVED A MEMBER ITEM ALLO- 28 CATION UNTIL SUCH DOCUMENTS HAVE BEEN SIGNED AND RECEIVED BY THE OFFICE 29 OF THE NEW YORK STATE ATTORNEY GENERAL. 30 5. PRIOR TO SUBMITTING AN APPLICATION FOR A MEMBER ITEM ALLOCATION, 31 EACH ORGANIZATION SEEKING A MEMBER ITEM ALLOCATION MUST MEET PRE-CERTI- 32 FICATION STANDARDS AS ESTABLISHED BY THE OFFICE OF THE NEW YORK STATE 33 ATTORNEY GENERAL. AT A MINIMUM, THOSE STANDARDS SHALL REQUIRE THAT THE 34 ORGANIZATION SEEKING PRE-CERTIFICATION IS A CERTIFIED TAX-EXEMPT 35 NON-PROFIT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE 36 CODE IN NEW YORK STATE, A STATE AGENCY, A MUNICIPALITY OR THEIR AFFIL- 37 IATED DEPARTMENT, UNIVERSITY, COLLEGE, OR SCHOOL DISTRICT CAPABLE OF 38 ACCEPTING POTENTIAL FUNDING AND THAT SUCH ENTITY IS NOT IN BANKRUPTCY OR 39 ARREARS ON ANY OBLIGATIONS. IF AN ORGANIZATION HAS RECEIVED MEMBER ITEM 40 FUNDING IN THE PAST, THE ORGANIZATION SHALL ALSO COMPLY WITH THE 41 REQUIREMENTS OF SUBDIVISION FOUR OF THIS SECTION. NO APPLICATION FROM 42 ANY ORGANIZATION SHALL BE CONSIDERED BY A LEGISLATOR UNTIL THE OFFICE OF 43 THE NEW YORK STATE ATTORNEY GENERAL HAS CERTIFIED SUCH ORGANIZATION 44 BASED UPON THE CRITERIA SET FORTH IN THIS SUBDIVISION AND UPON ANY ADDI- 45 TIONAL REGULATORY STANDARDS ESTABLISHED BY THE ATTORNEY GENERAL. 46 6. ANY STATE AGENCY THAT PROVIDES FUNDING FOR MEMBER ITEMS SHALL 47 REVIEW MEMBER ITEM SPENDING ON AN ANNUAL BASIS AND PERIODICALLY REVIEW 48 GRANT RECIPIENTS' USE OF GRANT MONEY. 49 7. ANY MEMBER ITEM APPROPRIATED BY THE LEGISLATURE SHALL BE SET FORTH 50 SEPARATELY AND APART FROM EVERY OTHER MEMBER ITEM IN THE STATE BUDGET IN 51 ORDER TO CLEARLY IDENTIFY EACH LEGISLATOR'S OR GOVERNOR'S REQUEST. 52 8. ANY VIOLATION OF THE PROVISIONS OF THIS SECTION SHALL BE REFERRED 53 TO THE LEGISLATIVE ETHICS COMMISSION OR ITS SUCCESSOR ENTITY. 54 COMPLAINTS REGARDING THE FAILURE OF AN ALLOCATION OR USE OF A MEMBER 55 ITEM TO COMPLY WITH THE PROVISIONS OF THIS CHAPTER SHALL BE SUBMITTED TO 56 (A) THE LEGISLATIVE ETHICS COMMISSION WITH REGARD TO A MEMBER ITEM ALLO- A. 5307 4 1 CATION MADE AT THE DISCRETION OF A LEGISLATOR, OR (B) THE COMMISSION ON 2 PUBLIC INTEGRITY WITH REGARD TO A MEMBER ITEM ALLOCATION MADE AT THE 3 DISCRETION OF THE GOVERNOR. EACH COMPLAINT SHALL BE INVESTIGATED IN 4 ACCORDANCE WITH THE RULES AND PROCEDURES OF THE COMMISSION RECEIVING THE 5 COMPLAINT. 6 S 2. Subdivisions 4 and 5 of section 24 of the state finance law, as 7 added by chapter 1 of the laws of 2007, are amended to read as follows: 8 4. Any appropriation added to such budget bills, pursuant to section 9 four of article seven of the constitution, shall only contain itemized 10 appropriations which shall not be in the form of lump sum appropri- 11 ations[,] AND SHALL DESIGNATE FOR EACH APPROPRIATION A GRANTEE OF SUCH 12 APPROPRIATION, and [provided further that] for all non-federal state 13 operations appropriations, such bill or bills shall only contain item- 14 ized appropriations and shall be made, where practicable, by agency, and 15 within each agency by program and within each program at the following 16 level of detail and in the following order: 17 (a) by fund type, which at a minimum shall include general fund, 18 special revenue-other funds, capital projects funds and debt service 19 funds; 20 (b) for personal service appropriations, separate appropriations shall 21 be made for regular personal service, temporary personal service, and 22 holiday and overtime pay; 23 (c) for nonpersonal service appropriations, separate appropriations 24 shall be made for supplies and materials, travel, contractual services, 25 equipment and fringe benefits, as appropriate. 26 5. [Any appropriation added pursuant to section four of article seven 27 of the constitution without designating a grantee shall be allocated 28 only pursuant to a plan setting forth an itemized list of grantees with 29 the amount to be received by each, or the methodology for allocating 30 such appropriation. Such plan shall be subject to the approval of the 31 chair of the senate finance committee, the chair of the assembly ways 32 and means committee, and the director of the budget, and thereafter 33 shall be included in a concurrent resolution calling for the expenditure 34 of such monies, which resolution must be approved by a majority vote of 35 all members elected to each house upon a roll call vote.] THE PROVISIONS 36 OF THIS SECTION SHALL NOT PRECLUDE MEMBERS OF THE LEGISLATURE FROM 37 COLLABORATING WITH EACH OTHER IN THE SELECTION OF MEMBER ITEMS AND PACK- 38 AGING THEIR INDIVIDUAL MEMBER ITEM ALLOCATIONS TOGETHER WITH OTHER 39 MEMBER'S ALLOCATIONS FOR SPECIFIED REGIONAL OR JOINT PROJECTS. 40 S 3. Section 99-d of the state finance law, as added by chapter 474 of 41 the laws of 1996, is renumbered section 99-w and the section heading and 42 subdivision 1, subdivision 1 as amended by section 2 of part BB of chap- 43 ter 686 of the laws of 2003, are amended to read as follows: 44 [Community] LEGISLATIVE COMMUNITY projects fund. 1. There is hereby 45 established in the joint custody of the comptroller and the commissioner 46 of taxation and finance a special fund to be known as the LEGISLATIVE 47 community projects fund. This fund may have separate accounts designated 48 pursuant to a specific appropriation to such account or pursuant to a 49 written suballocation plan approved in a memorandum of understanding 50 executed by the director of the budget, the secretary of the senate 51 finance committee and the secretary of the assembly ways and means 52 committee. Such suballocation shall be submitted to the comptroller. 53 S 4. The state finance law is amended by adding a new section 99-x to 54 read as follows: 55 S 99-X. EXECUTIVE COMMUNITY PROJECTS FUND. 1. THERE IS HEREBY ESTAB- 56 LISHED IN THE JOINT CUSTODY OF THE COMPTROLLER AND THE COMMISSIONER OF A. 5307 5 1 TAXATION AND FINANCE A SPECIAL FUND TO BE KNOWN AS THE EXECUTIVE COMMU- 2 NITY PROJECTS FUND. THIS FUND MAY HAVE SEPARATE ACCOUNTS DESIGNATED 3 PURSUANT TO A SPECIFIC APPROPRIATION TO SUCH ACCOUNT OR PURSUANT TO A 4 WRITTEN SUBALLOCATION PLAN APPROVED IN A MEMORANDUM OF UNDERSTANDING 5 EXECUTED BY THE DIRECTOR OF THE BUDGET, THE SECRETARY OF THE SENATE 6 FINANCE COMMITTEE AND THE SECRETARY OF THE ASSEMBLY WAYS AND MEANS 7 COMMITTEE. SUCH SUBALLOCATION SHALL BE SUBMITTED TO THE COMPTROLLER. 8 2. SUCH FUND SHALL CONSIST OF MONIES TRANSFERRED TO SUCH FUND FROM THE 9 GENERAL FUND/STATE PURPOSES ACCOUNT, OR ANY OTHER MONIES REQUIRED TO BE 10 TRANSFERRED OR DEPOSITED. MONIES MAY NOT BE TRANSFERRED OR LOANED 11 BETWEEN THE ACCOUNTS OF THIS FUND, UNLESS SPECIFICALLY OTHERWISE 12 PROVIDED BY LETTER SIGNED BY THE DIRECTOR OF THE BUDGET, BUT ONLY UPON 13 THE JOINT REQUEST OF THE SECRETARY OF THE SENATE FINANCE COMMITTEE AND 14 THE SECRETARY OF THE ASSEMBLY WAYS AND MEANS COMMITTEE. 15 3. (A) AS REQUIRED TO MAKE TIMELY PAYMENTS FROM SUCH ACCOUNTS UPON 16 PRESENTMENT OF PROPER VOUCHERS THEREFOR, THE STATE COMPTROLLER SHALL 17 MAKE TRANSFERS TO ANY ACCOUNT IN THIS FUND UP TO THE AMOUNTS ANNUALLY 18 SPECIFIED FOR TRANSFER TO SUCH ACCOUNT AND IN COMPLIANCE WITH SUBDIVI- 19 SION TWO OF THIS SECTION, BUT ONLY FROM SUCH FUND OR FUNDS AUTHORIZED TO 20 PROVIDE SUCH TRANSFERS. 21 (B) BY THE CLOSE OF EACH FISCAL YEAR, ALL REMAINING AMOUNTS NOT YET 22 TRANSFERRED SHALL BE TRANSFERRED TO THE DESIGNATED ACCOUNTS FOR WHICH 23 SUCH TRANSFERS WERE AUTHORIZED, UP TO THE TOTAL AMOUNTS SPECIFIED FOR 24 TRANSFER TO EACH ACCOUNT IN EACH FISCAL YEAR AND IN COMPLIANCE WITH 25 SUBDIVISION TWO OF THIS SECTION. 26 4. NOTWITHSTANDING SECTION FORTY OF THIS CHAPTER OR ANY OTHER 27 PROVISION OF LAW, APPROPRIATIONS OF THIS FUND SHALL BE AVAILABLE FOR 28 LIABILITIES INCURRED DURING AND AFTER THE CLOSE OF THE FISCAL YEAR FOR 29 WHICH SUCH APPROPRIATIONS ARE ENACTED, PROVIDED HOWEVER THAT SUCH APPRO- 30 PRIATIONS SHALL LAPSE ON THE FIFTEENTH DAY OF SEPTEMBER FOLLOWING THE 31 CLOSE OF THE FISCAL YEAR, AND NO MONIES SHALL THEREAFTER BE PAID OUT OF 32 THE STATE TREASURY OR ANY OF ITS FUNDS OR THE FUNDS UNDER ITS MANAGEMENT 33 PURSUANT TO SUCH APPROPRIATIONS. 34 5. THE DIRECTOR OF THE BUDGET SHALL ISSUE A CERTIFICATE OF APPROVAL 35 FOR ANY APPROPRIATION IN ANY ACCOUNT OF THIS FUND NO LATER THAN THE 36 LATER OF SIXTY DAYS AFTER THE ENACTMENT OF SUCH APPROPRIATION OR FIVE 37 DAYS AFTER THE EXECUTION OF A WRITTEN SUBALLOCATION PLAN PURSUANT TO THE 38 PROVISIONS OF SUBDIVISION ONE OF THIS SECTION. SUCH APPROVAL SHALL 39 SATISFY ANY OTHER REQUIREMENT FOR A CERTIFICATE OF APPROVAL. 40 6. (A) THE STATE SHALL NOT BE LIABLE FOR PAYMENTS PURSUANT TO ANY 41 CONTRACT, GRANT OR AGREEMENT MADE PURSUANT TO AN APPROPRIATION IN ANY 42 ACCOUNT OF THIS FUND IF INSUFFICIENT MONIES ARE AVAILABLE FOR TRANSFER 43 TO SUCH ACCOUNT OF THIS FUND, AFTER REQUIRED TRANSFERS PURSUANT TO 44 SUBDIVISION THREE OF THIS SECTION. EXCEPT WITH RESPECT TO GRANTS, OR 45 AGREEMENTS EXECUTED BY ANY STATE OFFICER, EMPLOYEE, DEPARTMENT, INSTITU- 46 TION, COMMISSION, BOARD, OR OTHER AGENCY OF THE STATE PRIOR TO THE 47 EFFECTIVE DATE OF THIS SECTION, ANY CONTRACT, GRANT OR AGREEMENT MADE 48 PURSUANT TO AN APPROPRIATION IN THIS FUND SHALL INCORPORATE THIS 49 PROVISION AS A TERM OF SUCH CONTRACT, GRANT OR AGREEMENT. 50 (B) THE EXHAUSTION OF FUNDS AVAILABLE FOR SUCH TRANSFERS SHALL NOT 51 PRECLUDE THE APPROVAL OF CONTRACTS HEREUNDER PURSUANT TO SECTION ONE 52 HUNDRED TWELVE OF THIS CHAPTER. NOTWITHSTANDING ANY OTHER PROVISION OF 53 LAW, INTEREST SHALL NOT BE DUE TO ANY RECIPIENT FOR ANY LATE PAYMENTS 54 MADE FROM THIS FUND WHICH RESULT FROM INSUFFICIENT MONIES BEING AVAIL- 55 ABLE IN AN ACCOUNT OF THIS FUND. A. 5307 6 1 7. MONIES SHALL BE PAID OUT OF SUCH ACCOUNTS ON THE AUDIT AND WARRANT 2 OF THE STATE COMPTROLLER ON VOUCHERS CERTIFIED OR APPROVED BY THE HEAD 3 OF THE APPROPRIATE AGENCY. 4 S 5. This act does not preclude either house of the legislature or the 5 governor from adopting more stringent standards through its own guide- 6 lines or through the application process. 7 S 6. Member item grants shall continue to be subject to review by the 8 respective assembly and senate fiscal and counsel staffs, division of 9 the budget, the administering state agency, the office of the state 10 comptroller, and the office of the attorney general. Nothing in this act 11 shall limit the authority of the state comptroller and the attorney 12 general to review member item grant recipients or member item grants. 13 S 7. This act shall take effect immediately.