Section 603. Municipal public health services plan; implementation

1. In
  order to be eligible for state aid under this title,  each  municipality
  shall  administer  its  public  health  programs  in accordance with its
  approved  municipal  public  health  services  plan  and  standards   of
  performance   established   by   the   commissioner  through  rules  and
  regulations and shall, in particular, ensure that public health services
  are provided in an efficient and effective manner to all persons in  the
  municipality.
    2.  The  commissioner  may withhold state aid reimbursement under this
  title for  the  appropriate  services  if,  on  audit  and  review,  the
  commissioner  finds  that such services are not furnished or rendered in
  conformance  with  the  rules  and  regulations   established   by   the
  commissioner  or  that  the  expenditures were not made according to the
  approved public health services plan required by section six hundred two
  of this title. In such cases, the commissioner, in order to ensure  that
  the public health is promoted as defined in paragraph (b) of subdivision
  three   of   section  six  hundred  two  of  this  title,  may  use  any
  proportionate share of a municipality's per capita or base grant that is
  withheld to contract with agencies, associations, or organizations.  The
  health  department  may  use any such withheld share to provide services
  upon approval of the director of the division of the budget.  Copies  of
  such  transactions  shall  be  filed  with  the fiscal committees of the
  legislature.