(a) No department or agency may make expenditure of any Federal funds regardless whether such funds are advanced prior to expenditure or as reimbursement unless such expenditures are made pursuant to specific appropriations of the Legislature.

(b) The Health Security Trust Fund, subject to legislative approval, may be invested or reinvested in bonds or in securities that are approved for the Retirement Fund, or according to modern investment practices of similar funds. The appropriations from the Health Security Trust Fund shall be limited to fifty percent (50%) of the initial deposit from the proceeds of the sale for the first four (4) years. Thereafter, expenditures shall be limited to ninety percent (90%) of the earnings of the Fund.

(c) If Federal funds received are greater than the amount of such funds appropriated by the Legislature for a specific purpose pursuant to this Article, the total appropriation level of Federal and local funds allocated for such purpose shall remain at the level designated by the Legislature.

SOURCE: GC § 6803 added by P.L. 14-83:1. Subsection (b) amended by
P.L. 27-69:6(b).

COMMENT: See COMMENT to § 22301. Many federal grants provide for specific ratios of local to federal funds. Other grants and programs provide that federal funds cannot supplant local funds for the project. Check with the specific grant or program for details.