31 U.S.C. § 6503 — Intergovernmental financing

Page 530 TITLE 31—MONEY AND FINANCE § 6502 Par. (4)(A). Pub. L. 101–453, § 3(3), substituted ‘‘sub- paragraph (C)’’ for ‘‘subclause (C) of this clause (4)’’. Par. (4)(B). Pub. L. 101–453, § 3(4), substituted ‘‘sub- paragraph (C)’’ for ‘‘subclause (C) of this clause (4)’’. Par. (7). Pub. L. 101–453, § 5(a)(2), added par. (7). Former par. (7) redesignated (8). Par. (8). Pub. L. 101–453, § 5(a)(1), redesignated par. (7) as (8). Former par. (8) redesignated (9). Par. (9). Pub. L. 101–453, § 5(a)(1), (3), redesignated par. (8) as (9), added new text, and struck out former text which read as follows: ‘‘ ‘State’ means a State of the United States, the District of Columbia, a territory or possession of the United States, and an agency or in- strumentality of a State but does not mean a local gov- ernment of a State.’’ Former par. (9) redesignated (10). Par. (10). Pub. L. 101–453, § 5(a)(1), redesignated par. (9) as (10). 1983—Par. (1)(B). Pub. L. 97–452 struck out ‘‘the law of’’ after ‘‘provided by’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–33 effective Oct. 1, 1997, except as otherwise provided in title XI of Pub. L. 105–33, see section 11721 of Pub. L. 105–33, set out as a note under section 4246 of Title 18, Crimes and Criminal Procedure. EFFECTIVE DATE OF 1983 AMENDMENT Amendment effective Sept. 13, 1982, see section 2(i) of Pub. L. 97–452, set out as a note under section 3331 of this title. SHORT TITLE OF 1992 AMENDMENT Pub. L. 102–589, § 1, Nov. 10, 1992, 106 Stat. 5133, pro- vided that: ‘‘This Act [amending sections 3718 and 3720A of this title, enacting provisions set out as notes under section 3718 of this title, and amending provisions set out as notes under sections 3335, 3718, and 6503 of this title] may be cited as the ‘Cash Management Improve- ment Act Amendments of 1992’.’’ SHORT TITLE OF 1990 AMENDMENT Pub. L. 101–453, § 1, Oct. 24, 1990, 104 Stat. 1058, pro- vided that: ‘‘This Act [enacting section 3335 of this title, amending this section and section 6503 of this title, and enacting provisions set out as notes under this section and sections 3335 and 6503 of this title] may be cited as the ‘Cash Management Improvement Act of 1990’.’’ PURPOSE OF 1990 ACT Pub. L. 101–453, § 2, Oct. 24, 1990, 104 Stat. 1058, pro- vided that: ‘‘The purpose of this Act [see Short Title of 1990 Amendment note above] is to ensure greater effi- ciency, effectiveness, and equity in the exchange of funds between the Federal Government and the States.’’ § 6502. Information on grants received On request of a chief executive officer of a State, a State legislature, or an official des- ignated by either of them, an executive agency carrying out a grant program to States and local governments shall provide the requesting officer or legislature with written information on the purpose and amounts of grants provided to the State or local government. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1007.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6502 ......... 42:4211. Oct. 16, 1968, Pub. L. 90–577, § 201, 82 Stat. 1101. The words ‘‘chief executive officer’’ are substituted for ‘‘Governor’’ because the definition of State includes the District of Columbia. The words ‘‘executive agen- cy’’ are substituted for ‘‘department or agency of the United States Government’’ because of the definition in sections 102 and 6501(3) of the revised title. The words ‘‘shall provide the requesting officer or legislature’’ are substituted for the last sentence of 42:4211 to eliminate unnecessary words. The word ‘‘information’’ is sub- stituted for ‘‘such data’’ because it is more accurate. The words ‘‘in writing’’ and ‘‘actual’’ are omitted as unnecessary. § 6503. Intergovernmental financing (a) Consistent with program purposes and with regulations of the Secretary, and in accordance with an agreement under subsection (b) entered into by the Secretary and a State— (1) the head of an executive agency (other than the Tennessee Valley Authority) car- rying out a program shall schedule transfers of funds to the State under the program so as to minimize the time elapsing between transfer of funds from the United States Treasury and the issuance or redemption of checks, war- rants, or payments by other means by a State; and (2) the State shall minimize the time elaps- ing between transfer of funds from the United States Treasury and the issuance or redemp- tion of checks, warrants, or payments by other means for program purposes. (b)(1) The Secretary shall enter into an agree- ment with each State to which transfers of funds are made, which establishes procedures and requirements for implementing this section. (2) An agreement under this subsection shall— (A) specify procedures chosen by the State for carrying out transfers of funds under the agreement; (B) describe the process by which the Fed- eral Government shall review and approve the implementation of the procedures specified under subparagraph (A); (C) establish the methods to be used for cal- culating and documenting payments of inter- est pursuant to this section; and (D) specify those types of costs directly in- curred by the State for interest calculations required under this section, and require the Secretary to consider those costs in com- puting payments under this section. (3) The Secretary shall issue regulations es- tablishing procedures and requirements for im- plementing this section with respect to a State with which no agreement is entered into by the Secretary under paragraph (1). Such regulations shall apply to a State until such time as the Secretary enters into an agreement with the State under paragraph (1). (c)(1) The Secretary shall issue regulations that shall require a State, when not inconsistent with program purposes, to pay interest to the United States on funds from the time funds are deposited by the United States to the State’s ac- count until the time that funds are paid out by the State in order to redeem checks or warrants or make payments by other means for program purposes. Except as provided under paragraph (3)(B) (relating to the Unemployment Trust Fund), the interest payable under this sub- Page 531 TITLE 31—MONEY AND FINANCE § 6503 section shall be calculated at a rate equal to the average of the bond equivalent rates of 13-week Treasury bills auctioned during the period for which interest is calculated, as determined by the Secretary. (2) Except as provided in paragraph (3), amounts received by the United States as pay- ment of interest under this subsection shall be deposited in the Treasury and credited as mis- cellaneous receipts. (3)(A) Amounts paid by a State under para- graph (1) as interest on funds paid to a State from a trust fund for which the Secretary is the trustee shall be credited to such trust fund. (B) Notwithstanding any other provision of this section, amounts of interest paid by a State, on funds drawn from its account in the Unemployment Trust Fund, shall be deposited into that account and shall consist of actual in- terest earnings by the State, less related bank- ing costs incurred by the State, for the period for which interest is calculated. (d)(1) If a State disburses its own funds for pro- gram purposes in accordance with Federal law, Federal regulation, or Federal-State agreement, the State shall be entitled to interest from the time the State’s funds are paid out to redeem checks or warrants, or make payments by other means, until the Federal funds are deposited to the State’s bank account. The Secretary shall pay, out of any money in the Treasury not oth- erwise appropriated, such amounts as may be necessary for interest owed to a State under this subsection. Such interest shall be calculated, at a rate equal to the average of the bond equiva- lent rates of 13-week Treasury bills auctioned during the period for which interest is cal- culated, as determined by the Secretary. (2) If interest is paid under this subsection as a result of a State disbursing its own funds be- fore receiving payment from a trust fund for which the Secretary of the Treasury is the trustee, such interest shall be charged against such trust fund. (e) The budget submitted by the President under section 1105 of this title for a fiscal year shall include a statement specifying, for the most recently completed fiscal year, amounts of interest accrued to the Federal Government under subsection (c) and amounts of interest paid to States under subsection (d). (f) If a State receives refunds of funds dis- bursed by the State under a Federal program, the State shall return those refunds to the Fed- eral executive agency administering the pro- gram or apply those refunds to reduce the amount of funds owed by the Federal Govern- ment to the State under such program. Interest earned on such refunds shall be considered when setting overall interest obligations between the State and the Federal Government as required by this section. (g) If the Federal Government makes a pay- ment to a recipient under a Federal program, and a portion of the payment is an amount which the Federal Government is paying to such recipient on behalf of a State, such amount shall be considered to be a transfer of funds between the Federal Government and the State for pur- poses of this section. (h) A State may not be required by a law or regulation of the United States to deposit funds received by it in a separate bank account. How- ever, a State shall account for funds made avail- able to the State as United States Government funds in the accounts of the State. The head of the State agency concerned shall make periodic authenticated reports to the head of the appro- priate Federal executive agency on the status and the application of the funds, the liabilities and obligations on hand, and other information required by the head of the executive agency. Records related to the funds received by the State shall be made available to the head of the executive agency, the Inspector General of the executive agency, and the Comptroller General for necessary audits. (i) The Secretary shall prescribe methods for the payment of interest under this section be- tween the Federal Government and the States, including provisions for offsetting amounts owed by the respective parties. Such methods of payment shall require payment of interest on an annual basis and shall provide for comparable treatment in manner, technique, and timing for both the States and the Federal Government. (j) Consistent with Federal program purposes and regulations of the Director of the Office of Management and Budget, the head of a Federal executive agency carrying out a program shall execute grant awards to States on a timely basis to assure the availability of funds to accomplish transfers in compliance with subsection (a) of this section. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1007; Pub. L. 101–453, § 5(b), Oct. 24, 1990, 104 Stat. 1059.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6503(a) ..... 42:4213. Oct. 16, 1968, Pub. L. 90–577, §§ 202, 203, 82 Stat. 1101. 6503(b) ..... 42:4212. In the section, the words ‘‘executive agency’’ are sub- stituted for ‘‘Federal departments and agencies’’ be- cause of the definition in sections 102 and 6501(3) of the revised title. In subsection (a), the word ‘‘money’’ is substituted for ‘‘funds’’ for consistency in the section. The words ‘‘so as’’ and ‘‘United States’’ are omitted as surplus. The words ‘‘before or after’’ are substituted for ‘‘prior to or subsequent to’’ for consistency. The words ‘‘subse- quent to such transfer of funds’’ are omitted as unnec- essary the second time they are used. In subsection (b), the words ‘‘apart from other funds administered by the state’’, ‘‘properly’’, ‘‘In each case’’, and ‘‘examination’’ are omitted as unnecessary. The word ‘‘money’’ is substituted for ‘‘all federal grant-in- aid funds’’ for consistency in the section. The words ‘‘United States Government grant money’’ are sub- stituted for ‘‘Federal funds’’ for consistency in the re- vised title. The word ‘‘make’’ is substituted for ‘‘render’’, the word ‘‘periodic’’ is substituted for ‘‘reg- ular’’, and the word ‘‘information’’ is substituted for ‘‘facts’’, for clarity. The words ‘‘or any of their duly au- thorized representatives’’ are omitted as unnecessary. The words ‘‘Records shall be made available to . . . for auditing’’ are substituted for ‘‘shall have access for the purpose of audit and examination to any books, docu- ments, papers, and records’’ for consistency in the re- vised title and with other titles of the United States Code. Page 532 TITLE 31—MONEY AND FINANCE § 6504 Editorial Notes AMENDMENTS 1990—Pub. L. 101–453 amended section generally, sub- stituting provisions relating to intergovernmental fi- nancing for provisions relating to transfer and deposit requirements. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–453, § 5(e), Oct. 24, 1990, 104 Stat. 1061, as amended by Pub. L. 102–589, § 2(2)(C), Nov. 10, 1992, 106 Stat. 5133, provided that: ‘‘The amendments made by this section [amending this section and section 6501 of this title] shall take effect on the date of enactment of this Act [Oct. 24, 1990], except that subsections (c) and (d) of section 6503 of title 31, United States Code, as added by subsection (b) of this section (relating to pay- ments of interest between the Federal Government and State governments), shall take effect on July 1, 1993 or the first day of a State’s fiscal year beginning in 1993, whichever is later.’’ TREATMENT OF COMPENSATION OR REIMBURSEMENT PAID PURSUANT TO OTHER LAWS Pub. L. 107–273, div. A, title II, § 204(f), Nov. 2, 2002, 116 Stat. 1776, as amended by Pub. L. 109–162, title XI, § 1151(a), (b), Jan. 5, 2006, 119 Stat. 3112, provided that: ‘‘No compensation or reimbursement paid pursuant to the Southwest Border Prosecutor Initiative (as carried out pursuant to paragraph (3) (117 Stat. 64) under the heading relating to Community Oriented Policing Serv- ices of the Department of Justice Appropriations Act, 2003 (title I of division B of Public Law 108–7), or as car- ried out pursuant to any subsequent authority) or sec- tion 501(a) of Public Law 99–603 [8 U.S.C. 1365(a)] (100 Stat. 3443) or section 241(i) of the Act of June 27, 1952 [8 U.S.C. 1231(i)] (ch. 477) shall be subject to sections [sic] 3335(b) or 6503(d) of title 31, United States Code, and no funds available to the Attorney General may be used to pay any assessment made pursuant to such sec- tions [sic] 3335(b) or 6503 with respect to any such com- pensation or reimbursement.’’ AGREEMENTS WITH STATES Pub. L. 101–453, § 5(d), Oct. 24, 1990, 104 Stat. 1061, as amended by Pub. L. 102–589, § 2(2)(A), (B), Nov. 10, 1992, 106 Stat. 5133, provided that: ‘‘(1) SECRETARY’S EFFORTS TO ENTER AGREEMENTS.— The Secretary of the Treasury shall make all reason- able efforts to enter into an agreement with each State under section 6503(b) of title 31, United States Code, as added by this section (relating to procedures and re- quirements for transfers of funds between executive agencies and States), by July 1, 1993 or the first day of a State’s fiscal year beginning in 1993, whichever is later. ‘‘(2) EFFECTIVE DATE OF REGULATIONS.—Regulations issued by the Secretary of the Treasury under sub- section (b)(3) of section 6503 of title 31, United States Code, as added by the [this] section (relating to proce- dures and requirements for transfers of funds involving States not entering agreements), shall take effect on July 1, 1993 or the first day of a State’s fiscal year be- ginning in 1993, whichever is later.’’ GAO REPORT Pub. L. 101–453, § 6, Oct. 24, 1990, 104 Stat. 1062, as amended by Pub. L. 102–589, § 2(3), Nov. 10, 1992, 106 Stat. 5133, which directed Comptroller General, five years after Oct. 24, 1990, to submit an audit of the implemen- tation of amendments made by section 5 of Pub. L. 101–453 (which amended this section and section 6501 of this title) and to submit a report to Congress describ- ing results of that audit, was repealed by Pub. L. 104–316, title I, § 115(i), Oct. 19, 1996, 110 Stat. 3835. § 6504. Use of existing State or multimember agency to administer grant programs Notwithstanding a law of the United States providing that one State agency or multi- member agency must be established or des- ignated to carry out or supervise the adminis- tration of a grant program, the head of the exec- utive agency carrying out the program may, when requested by the executive or legislative authority of the State responsible for the orga- nizational structure of a State government— (1) waive the one State agency or multi- member agency provision on an adequate showing that the provision prevents the estab- lishment of the most effective and efficient or- ganizational arrangement within the State government; and (2) approve another State administrative structure or arrangement after deciding that the objectives of the law authorizing the grant program will not be endangered by using an- other State structure or arrangement. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1007.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6504 ......... 42:4214. Oct. 16, 1968, Pub. L. 90–577, § 204, 82 Stat. 1101. In the section, the word ‘‘agency’’ is substituted for ‘‘board or commission’’ for consistency in the revised title. Before clause (1), the words ‘‘executive agency’’ are substituted for ‘‘Federal department or agency’’ be- cause of the definition in sections 102 and 6501(3) of the revised title. The words ‘‘appropriate’’ and ‘‘deter- mining or revising’’ are omitted as surplus. The words ‘‘Governor or other’’ are omitted as covered by ‘‘execu- tive . . . authority’’. In clause (2), the words ‘‘after de- ciding’’ are substituted for ‘‘Provided, That the head of the Federal department or agency determines’’ to eliminate unnecessary words. § 6505. Authority to provide specialized or tech- nical services (a) The President may prescribe statistical and other studies and compilations, develop- ment projects, technical tests and evaluations, technical information, training activities, sur- veys, reports, documents, and other similar services that an executive agency is especially competent and authorized by law to provide. The services prescribed must be consistent with and further the policy of the United States Gov- ernment of relying on the private enterprise sys- tem to provide services reasonably and quickly available through ordinary business channels. (b) The head of an executive agency may pro- vide services prescribed by the President under this section to a State or local government when— (1) written request is made by the State or local government; and (2) payment of pay and all other identifiable costs of providing the services is made to the executive agency by the State or local govern- ment making the request. (c) Payment received by an executive agency for providing services under this section shall be deposited to the credit of the principal appro- priation from which the cost of providing the services has been paid or will be charged.