§ 368-b. State reimbursement to local health districts; chargebacks.
1. Each approved local health district which enters into a contract
with the department of health pursuant to section three hundred
sixty-four-a of this title shall submit to the department of health a
quarterly report of expenditures for administrative expenses incurred in
the performance of such contract. The department of health shall review
such expenditures and, upon approval, shall submit the report to the
department. Upon receipt of such approved report, there shall be paid
to each such district

(a) the amount of federal funds, if any, properly received or to be
received on account of such expenditures; and

(b) fifty per centum of the amount expended for such administrative
expenses, after first deducting therefrom any federal funds properly
received or to be received on account thereof.

2. The department of health shall submit a quarterly report to the
department of expenditures for administrative expenses incurred by each
of the state health districts in the performance of the cooperative
agreement entered into pursuant to section three hundred sixty-four-a of
this title. Upon receipt of such report, the department shall deduct
the amount of federal funds, if any, properly received or to be received
on account of such expenditures from the total amounts reported for each
such district Fifty per centum of the balance shall be apportioned
among the public welfare districts served by such district in the ratio
that the total expenditures by each such public welfare district for
medical assistance for needy persons for the quarter bears to the total
expenditures by all such public welfare districts for such quarter. The
proportionate share shall be deducted from the next payment due each of
such public welfare districts pursuant to section three hundred
sixty-eight-a of this title.