§ 53-b. Authorization of applications for state participation in
certain grant or contract supported programs. 1. No agency shall make
application for participation in any continuing grant or contract
supported program when authorization to apply for participation in such
program is disapproved by the director of the budget pursuant to the
following procedure:

a. The chief executive officer of the agency seeking authorization to
make application for participation in a continuing grant or contract
supported program shall, at least forty days prior to any deadline for
making application, except as provided in paragraph d of this
subdivision, notify the director of the budget, the chairman of the
senate finance committee and the chairman of the assembly ways and means
committee of such agency's proposed application on forms and in a manner
to be prescribed by the director of the budget, and shall provide such
persons with such further information as they shall require. Such notice
shall:

(i) refer to the statutory authority under which the action is
proposed;

(ii) describe the substance of the application;

(iii) indicate where a complete copy of the application and any
amendments or supplements thereto may be obtained and the name and
location of the organization or organizations to which the agency
intends to apply for such grant or contract; and

(iv) contain a fiscal statement setting forth: (1) the estimated
amount of revenues to be received from the organization to which the
agency is proposing to apply during each state fiscal year for the
program for which such moneys are sought, (2) the estimated amount of
moneys to be supplied by the state, including any state matching
commitment, and a statement as to the method through which such moneys,
or such commitment shall be provided, (3) the estimated amount of
revenues to be provided by any other agency, unit of local government,
and any other source from which revenues will be required, (4) the
number of years during which financial support for such program is
expected to be available from the organization to which the agency is
proposing to apply, and (5) the expected future obligation of the state,
if any, to continue the funding of the program including the expenditure
level which the state will or may be required or expected to maintain
for the program upon termination of such grant or contract moneys.

b. The director of the budget shall review all requests for
authorization to make application for participation in a continuing
grant or contract supported program, and at least twenty days prior to
approving, disapproving, or conditionally approving any such request
shall notify the chairman of the senate finance committee and the
chairman of the assembly ways and means committee of his intended action
on such request.

c. Within fifteen days of receipt of a notification from the director
of the budget pursuant to paragraph b of this subdivision, such chairmen
may make recommendations thereon as to the approval, modification or
disapproval of any proposed application. The director of the budget
shall consider such chairman's recommendations in his decision to
approve, modify or disapprove any proposed application, and shall notify
such chairman of action taken and the reasons in support of such action
where it contravenes that recommended by either chairman.

d. Whenever a deadline for making an application is less than forty
days, or whenever it is necessary for the preservation of the health,
safety, or general welfare of the state that action on a request for
authorization to make application for participation in a continuing
grant or contract supported program be taken by the director of the
budget in less than forty days, the chief executive officer of the
agency making such request shall include a statement of such necessity
in the notification to the director of the budget, the chairman of the
senate finance committee and the chairman of the assembly ways and means
committee provided for in paragraph a of this subdivision. In such
circumstances the director of the budget may waive, to such extent as
necessary, the time period of the notification requirements provided in
paragraph a of this subdivision for such application, and if necessary,
may issue a provisional authorization for such agency to make such
application pending formal review pursuant to paragraphs b and c of this
subdivision provided, however, that such formal review shall then be
scheduled to occur within thirty days of such provisional authorization.
In the event such request is not approved pursuant to such paragraphs
within such time, the provisional authorization to make such application
shall terminate and any such application may thereafter be again made
only after formal review and approval.

2. All applications for participation in any grant or contract
supported program including such programs offered by a state agency or
state affiliated corporation, shall include a request for full overhead
reimbursement to the maximum extent allowable under such program unless
the notification provided for in paragraph a of subdivision one of this
section includes an explanation of the agency's reasons for requesting
less than the maximum overhead reimbursement available.

3. The provisions of this section shall not apply to applications for
sponsored research grants or contracts which do not incorporate the
provision of services to the public or to any organization, or the
employees or clients thereof.

4. The provisions of paragraphs b, c and d of subdivision one of this
section shall not apply to applications for grants or contracts to
support specific projects which are intended to be undertaken during a
fixed period of time and to be completed within eighteen months of the
date on which work on such a project begins and which do not involve
participation in a continuing program of activity.

5. The provisions of this section shall not apply to applications for
reallocations of federal funds, to minor amendments to applications
already approved, or to applications for programs, participation in
which is authorized by an appropriation or other enactment of the
legislature.

6. For the purposes of this section agency shall mean any department,
agency, board, bureau, commission, division, council or office of the
state.