Clarifies the qualification of member items, discretionary funds and unitemized lump sum appropriations

§ 54-b. Member items, discretionary funds and unitemized lump sum appropriations (MIDFULSA).

1. Defines 'MIDFULSA'.

2. MIDFULSA shall not be appropriated when a conflict of interest exists between the legislator or governor designating the MIDFULSA and the potential recipient. A MIDFULSA cannot fund an organization that employs or compensates legislators or the governor, their families, anyone sharing a home with them, or a member of their staff, for services or labor rendered, or if any of the above mentioned people are 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 MIDFULSA, the legislature shall: (a) provide each member receive an equal share of the dollar amount allocated to the respective legislative body; (b) require requester submit a signed conflict of interest form along with the member item request; (c) have state agencies that provide funding for MIDFULSA evaluate the spending of such funds by the local project, organization or other entity receiving such funds. The state agency shall track the funds; (d) ensure the grants are designated for public purposes, provided in support of services and activities that benefit communities or the whole state, are only designated for not-for-profit organizations, municipalities, agencies, universities, colleges or school districts, are for activities and programs conducted within NYS, are not to be redistributed, are to be used only for the purpose stated in the funding request, are not to be used to fund loan programs, are not to be used to fund an entity in bankruptcy, receivership, or foreclosure or to fund legal or administrative expenses related to bankruptcy, receivership or foreclosure proceedings, or to pay for any arrears or current obligations for federal, state, or municipal taxes, are not to be the only significant source of funding for the organization, are to have grant applications that include a brief description of the project to be funded, and are not to be used by recipients to pay wages or other employee benefits; and (e) the legislature shall produce and make public a compiled quarterly report, which shall include the name of the elected official

requesting the funds, the dollar amount, the name of the project, organization or entity receiving the MIDFULSA.

4. All MIDFULSA recipients shall provide certification of proper use of funds received. Further provisions are outlined.

5. Prior to submitting an application for a MIDFULSA, each organization seeking an allocation must meet pre-certification standards as established by the Office of the NYS Attorney General. It further explains the standards that are required to be met.

6. Any state agency that provides funding for MIDFULSA shall review MIDFULSA spending on an annual basis and review grant recipients' use of grant money.

7. Any MIDFULSA appropriated by the legislature shall be set forth separately and apart from every other MIDFULSA 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 misuse are to be directed to the legislative ethics commission or the commission on public integrity. Each complaint shall be investigated.

Section 2. Subdivisions 4 and 5 of section 24 of the State Finance Law, are amended as follows: 4. Any appropriation added to such budget bills shall only contain itemized appropriations which shall not be in the form of lump sum appropriations and shall designate for each appropriation a grantee of such appropriation, and for all non-federal state operations appropriations, 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 various levels of detail. It also adds that the provisions of this section shall not preclude members of the legislature from collaborating with each other in the selection of member items and packaging their individual member item allocation together with other member's allocations for specified regional or joint projects.

Section 3. Section 99-d of the State Finance law is amended by replacing 'community' with 'legislative community'.

Section 4. The State Finance Law is amended by adding a new section 99-x. § 99-z. Executive 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 Executive Community Projects Fund. 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 of deposited. 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 subdivision two of this section, but only from such fund or funds authorized to provide such transfers. (b) Pertains to transfer of funds at the close of each fiscal year. 4. 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, with additional provisions. 5. The director of the budget issues a certificate of approval for any appropriation in any account of this fund within a specified time frame. 6. (a) The state shall not be liable for payments pursuant to any contract, grant or agreement made pursuant to an appropriation in an account of this fund if insufficient monies are available for transfer to such account of this fund.after required transfers. (b) The exhaustion of funds available for such transfers shall not preclude the approval of contracts hereunder pursuant to this chapter. 7. Monies shall be paid out of such accounts on the audit and warrant of state comptroller on vouchers certified or approved by the head of the appropriate agency.

Section 5. This act does not preclude either house or the governor from adopting more stringent standards.

Section 6. MIDFULSA shall continue to be subject to review by respective assembly and senate fiscal and counsel staffs, etc.

Section 7. Establishes the effective date.

Justification

The member item process is neither equitable, open not efficient. This bill would add fairness, transparency, and accountability to a broken system. Clearly, the process is unfair; some legislators receive large amounts of funding for their districts, while others receive little or no funding. There is no rational basis for this system. Furthermore, the current system does not take adequate measures to ensure that member item funds are used appropriately. This bill would go to great lengths to establish standards to ensure the member item funds are used effectively for projects that have a public purpose. Finally, the bill would seek to make the member item process more open by requiring publication of important member item information at least 24 hours prior to the approval of the State Budget.

We should hole ourselves, and our colleagues, accountable to the residents of New York. Member items are paid for with taxpayer money. The current member item system is full of waste and scandal. This legislation would help fix the broken system. It is particularly important now, with the state facing a fiscal crisis that we insist on integrity of the member item process.

Prior legislative history

2010: S.7007, Referred to Investigations & Government Operations 2012: S.1681A 2013-2014: S.920 - Referred to Investigations & Government Operations

Fiscal implications

The fiscal implications have not yet been determined.

Effective date

This act shall take effect immediately.