§ 603. Core public health services; implementation. 1. In order to be
eligible for state aid under this title, each municipality shall
administer its core public health services in accordance with the
standards of performance established by the commissioner through rules
and regulations pursuant to section six hundred nineteen of this
article. Each municipality shall, in particular, ensure that public
health services are provided in an efficient and effective manner to all
persons in the municipality.

2. The commissioner may withhold state aid reimbursement under this
title for the appropriate services if, on any audit, review of a state
aid application or periodic claim for state aid, or other information
available to the department, the commissioner finds that such services
are not furnished or rendered in conformance with the rules and
regulations established by the commissioner, including but not limited
to the standards of performance established pursuant to section six
hundred nineteen of this article, or that the expenditures were not for
an activity set forth in section six hundred two of this title. In such
cases, the commissioner, in order to ensure that the public health is
promoted as defined in section six hundred two of this title, may use
any proportionate share of a municipality's per capita or base grant
that is withheld to contract with agencies, associations, or
organizations. The health department may use any such withheld share to
provide services upon approval of the director of the division of the
budget. Copies of such transactions shall be filed with the fiscal
committees of the legislature.

3. Consistent with paragraph (h) of subdivision two of section six
hundred one of this title, when determining whether to approve a state
aid application or periodic claim for state aid, the commissioner shall
have authority to request any and all financial and other documents
necessary or relevant to verify that the claimed expenditures are
eligible for state aid under this article.