FEDERAL FUNDS - PRESCRIBING THE DISPOSITION OF
                 Act of Jun. 29, 1976, P.L. 469, No. 117              Cl. 72
                                  AN ACT

     Relating to the fiscal affairs of the Commonwealth concerning
        duties of the Governor, the Secretary of Revenue and the
        Budget Secretary, with respect to the submission of and
        signing the budget for any fiscal year; and, after a budget
        is enacted, regulating the issuance of warrants by the State
        Treasurer for certain requisitioned funds and imposing duties
        on persons authorized by law to issue requisitions for the
        payment of moneys from the State Treasury; and prescribing
        that Federal funds received by the Commonwealth shall be
        deposited in the General Fund account with certain
        exceptions.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Any person authorized by law to issue
     requisitions for the payment of moneys from the State Treasury
     shall, when submitting any such requisition to the State
     Treasury, indicate thereon whether any of the funds so requested
     were derived, in whole or in part, from Federal funds.
        Section 2.  Any person authorized by law to issue
     requisitions for the payment of moneys from the State Treasury
     shall, when submitting any such requisition to the State
     Treasurer, indicate thereon whether any of the funds so
     requested will be used, directly or indirectly, as matching
     funds to Federal funds.
        Section 3.  The State Treasurer is hereby specifically
     prohibited from issuing any warrant for requisitioned funds
     which were derived, in whole or in part, from Federal funds
     unless such funds have been specifically appropriated by an act
     of the General Assembly.
        Section 4.  The State Treasurer is hereby specifically
     prohibited from issuing any warrants for requisitioned funds
     which will be used, directly or indirectly, as matching funds to
     Federal funds unless such Federal funds have been specifically
     appropriated by an act of the General Assembly.
        Section 5.  Except as may be hereinafter provided in this
     section, no Federal funds, whether designated as grants,
     augmentations, credits or otherwise, received from the Federal
     Government in any fiscal year shall, by executive order of the
     Governor or by any other executive action, be deposited in or
     designated as a special or restricted fund account, separate and
     distinct from the General Fund account. All such Federal funds
     shall be deposited in and credited to the General Fund account,
     be contained in the budget as hereinafter provided, and be
     available for appropriation by the General Assembly as part of
     its operating budget, except that such Federal funds need not be
     deposited in nor disbursed by appropriation from the General
     Fund account under the following limited statutory
     circumstances. If the General Assembly has by statutory
     enactment created a special fund or restricted receipt account
     and has specifically provided therein for an exclusive, special
     purpose or purposes for which Federal funds deposited in such
     special fund or restricted receipt account can only be used,
     then under such statutory circumstances, Federal funds received
     which are specifically and exclusively ear-marked for such
     General Assembly determined special fund or restricted receipt
     purpose or purposes may be deposited in such statutorily created
     special fund or restricted receipt account. And, without further
     statutory appropriation being required, can be used solely and
     exclusively for such specific statutory special fund or
     restricted receipt purpose or purposes. But, under no
     circumstances shall Federal funds received and deposited in such
     statutorily created special fund or restricted receipt account
     be disbursed by executive order of the Governor or by any other
     executive action for any purpose or purposes not specifically
     prescribed by the statute which created said special or
     restricted receipt account, except by appropriation made by law
     during the fiscal year in which such funds were received.
        Section 6.  Notwithstanding anything in any law to the
     contrary, it shall be the duty of the Secretary of Revenue when
     submitting to the Budget Secretary and to the Governor his
     officially certified estimate of revenues and receipts from any
     and all sources for use in the preparation of the Governor's
     proposed budget for the ensuing fiscal year to specifically
     include therein an estimate of any and all funds received or
     anticipated to be received from the Federal Government whether
     such funds are designated as grants, augmentations, credits or
     otherwise, together with the purposes for which such funds, as
     aforesaid, are provided or to be provided. The Secretary of
     Revenue shall provide a Federal funds estimate to the Governor
     for use by the Governor in signing any appropriation bill.
        The General Assembly hereby declares its legislative intent
     not to enact any operating budget for any fiscal year unless and
     until a budget is submitted in accordance with the provisions of
     this act.
        Section 7.  Notwithstanding any other law or portion of any
     other law including section 3 of the act of December 27, 1933
     (Sp.Sess., P.L.113, No.29), entitled "An act authorizing the
     State Treasurer to act as custodian of moneys and securities
     contributed to or deposited with the Commonwealth, or officers,
     departments, boards or commissions of the Commonwealth;
     prescribing the manner in which such moneys or securities shall
     be held and disbursed or delivered up; and making an
     appropriation to the Treasury Department for the cost of
     administering such moneys and securities," the provisions of
     this act shall prevail.
        Section 8.  This act shall take effect immediately.