(a) Any two or more counties (except the five counties within the City of New York), cities, towns or villages or any combination of these units may apply to the commissioner for State aid to finance part of the costs of a comprehensive study and report concerning a joint municipal service or facility. School districts may also apply for such grants provided they are acting in conjunction with a county (except the five counties within the City of New York), city, town or village or any combination of these units. School districts may not apply for a grant to cooperate with another school district. Fire districts may make such application for State aid for a comprehensive study and report only in conjunction with another fire district.

(b) The eligible applicants shall delegate the responsibility for the comprehensive study and report to an appropriate “local agency”. Such local agency may be created pursuant to the provisions of General Municipal Law, article 12-c, section 239-n (joint municipal survey committees). The local agency shall be designated by a resolution of the legislative body of the municipality. The resolution shall provide for the number of members to be appointed by each unit of local government; a fiscal officer, who shall be one of the fiscal officers of the cooperating municipalities, and shall be bonded; the apportionment of costs among the units of local government; and an appropriation of sufficient funds to meet the local government units share of the costs of the committee's expenses. Fire districts shall designate the local agency pursuant to General Municipal Law, article 5-J. A copy of the resolution designating or creating the local agency shall be annexed to the application for State aid.