§ 97-ttt. 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 to be known as the federal revenue maximization contract fund. 2. Such fund shall consist of those revenues specified by the office of temporary and disability assistance or the department of health, as approved by the director of the budget, and properly received from the federal government on account of federal revenue maximization activities conducted by the former department of social services or the office of temporary and disability assistance or the department of health, 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. Notwithstanding any provision of law to the contrary, to the extent that federal revenues specified under subdivision two of this section and related to medical assistance expenditures are properly received under a federal revenue maximization contract which has been properly executed by the department of health, and approved by the director of the budget, and are used to reduce the state and local district cost of medical assistance expenditures, the commissioner of health shall, subject to the approval of the director of the budget, transfer such specified revenues to the federal revenue maximization contract fund and shall make all payments or transfers required by this section. 4. 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 a contractor of the former department of social services or the office of temporary and disability assistance or the department of health 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 the office of temporary and disability assistance or the department of health, 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 the office of temporary and disability assistance or the department of health and the director of the budget. 5. 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 the office of temporary and disability assistance or the department of health and the director of the budget, by any other city or county agency. 6. 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. 7. Upon the identification, by the director of the budget, of moneys resulting from federal revenue maximization activities conducted by the former department of social services or the office of temporary and disability assistance or the department of health, the state comptroller shall apportion the moneys 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 former department of social services or the office of temporary and disability assistance or the department of health, 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 commissioner of the office of temporary and disability assistance and any other state department or agency, as necessary; and

(c) remaining moneys shall be deposited to the contingency reserve fund. 8. Payments to a contractor of the former department of social services or the office of temporary and disability assistance or the department of health 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 contractor account. 9. Notwithstanding any law to the contrary, and in accordance with section four of the state finance law, the comptroller is hereby authorized and directed to transfer, upon request from the director of the budget, $95,000,000 from any of the office of temporary and disability assistance special revenue federal funds to the federal revenue maximization fund (359) or the contingency reserve fund (005).