§ 97-zz. Federal revenue maximization contract fund. 1. There is
hereby established in the joint custody of the state comptroller and the
commissioner of taxation and finance a fund known as the federal revenue
maximization contract fund.

2. Such fund shall consist of those revenues specified by the
department of social services, subject to the approval of the director
of the budget, and properly received from the federal government on
account of federal revenue maximization activities conducted by the
department of social services and social services districts, both
directly and through their contractors, that are credited or transferred
thereto from any other fund or source pursuant to law.

3. Moneys in the fund, pursuant to appropriation by the legislature
and issuance of a certificate of approval by the director of the budget,
shall be made available for the following purposes:

(a) payment of fees, pursuant to a contract approved by the state
comptroller, to any contractor of the department of social services
providing federal revenue maximization services; and,

(b) payment or reimbursement of the federal share of social services
district expenditures based on social services district claims for
additional federal reimbursements submitted in accordance with section
one hundred thirty-one-g of the social services law and identified by
the commissioner of social services as federal revenue maximization
claims submitted on behalf of a city or county department or social
services district. Moneys shall be paid out of the fund on the audit
and warrant of the state comptroller on vouchers certified or approved
by the commissioner of social services and the director of the budget.

4. Notwithstanding any other provision of law to the contrary, any
federal revenues received by the state based on federal revenue
maximization contractor activities which reimburse social services
districts for activities which have been or will be subject to state
reimbursement shall be proportionately reduced by the amount of state
reimbursement received by the social services district or, as determined
by the commissioner of social services and the director of the budget,
by any other city or county agency.

5. Moneys in the federal revenue maximization contract fund shall be
kept separate and shall not be commingled with any moneys in the custody
of the comptroller. Further, the comptroller shall establish within the
federal revenue maximization contract fund a revenue maximization
contractor account and a local maximization account.

6. Upon the identification, by the director of the budget, of moneys
resulting from federal revenue maximization activities conducted by the
department of social services, the comptroller shall apportion the
monies as follows:

(a) The first portion shall be deposited to the revenue maximization
contractor account, pursuant to the provisions of the applicable
contract with the department of social services or a social services
district. The director of the budget shall review and approve or
disapprove the amounts to be so deposited.

(b) The second portion shall be deposited to the local maximization
account, in amounts to be determined by the director of the budget in
consultation with the department of social services and any other state
department or agency, as necessary.

(c) Remaining moneys shall be deposited to the contingency reserve
fund.

7. Payments to a contractor of a department of social services, or a
social services district, who was engaged in revenue maximization
activities generating reimbursement specified for deposit in the federal
revenue maximization fund pursuant to subdivision three of this section,
shall be made only from the revenue maximization account.