§ 71. Abolition, maintenance and establishment of funds. 1. Notwithstanding any provision of law to the contrary, each fund established prior to the effective date of this section other than by law and in existence at the time of the effective date of this section, shall be either abolished or continued in existence by the comptroller with the concurrence of the director of the budget. The balance in any fund so abolished shall be paid into the appropriate fund. The comptroller, after consultation with the director of the budget and the heads of agencies and public benefit corporations significantly involved in the operations of such funds, but in no event later than one hundred twenty days following the effective date of this section, shall submit to the legislature and the governor a report specifying the action which, with the concurrence of the director of the budget, he has taken or intends to take in regard to every such fund and the fund type into which he intends to classify each fund so continued. The comptroller with the concurrence of the director of the budget, at any time following the submission of this report, may abolish any fund established other than by law provided that at the time of such action he shall submit a notice of such action and the reasons therefor to the legislature and the governor.

2. The comptroller, after consultation with the director of the budget and the heads of agencies and public benefit corporations significantly involved in the operations of funds established by law but in no event later than one hundred twenty days following the effective date of this section, shall submit to the legislature and the governor a report specifying every such fund and setting forth for each such fund a recommendation of the comptroller as to the desirability of repealing the statute establishing such fund, continuing the statutory authorization for such fund, or modifying the statute establishing such fund in one or more particular respects. Such report shall also indicate the fund type into which the comptroller intends to classify each fund established by law in the event that the legislative action recommended in such report as to that fund is enacted and the fund type into which he intends to classify each fund if no legislative action is taken in regard to that fund.

3. The comptroller with the concurrence of the director of the budget may establish such additional funds as are necessary to properly manage and account for the financial activities and resources of the state, provided that in establishing funds and in continuing funds, only the minimum number of funds necessary to comply with legal requirements and generally accepted accounting principles shall be established and continued and provided that at the time an additional fund is established he shall submit to the legislature and the governor a notice of such action and a statement setting forth the initial date of such action, the sources and uses of the financial resources of such fund, the fund type into which he intends to classify such fund, and an explanation of the necessity for its establishment.