31 U.S.C. § 6701 — Payments to local governments

Page 536 TITLE 31—MONEY AND FINANCE § 6701 (A) the extent to which— (i) the program conflicts with or dupli- cates other grant programs; and (ii) more effective, efficient, economical, and uniform administration of the program may be achieved by changing the require- ments and procedures applicable to it; and (B) budgetary, accounting, reporting, and administrative procedures of the program. (2) The Comptroller General shall submit to Congress a report on a study made under this subsection and any recommendations. To the ex- tent practicable, a report on an expiring pro- gram shall be submitted in the year before the year in which a program ends. (b)(1) When requested by a committee of Con- gress having jurisdiction over a grant program, the Advisory Commission on Intergovernmental Relations shall study the intergovernmental re- lations aspects of the program, including— (A) the impact of the program on the struc- tural organization of States and local govern- ments and on Federal-State-local fiscal rela- tions; and (B) the coordination of administration of the program by the United States Government and State and local governments. (2) The Commission shall submit to the com- mittee requesting the study and to Congress a report and any recommendations. (Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1010.) HISTORICAL AND REVISION NOTES Revised Section Source (U.S. Code) Source (Statutes at Large) 6508(a) ..... 42:4242. Oct. 16, 1968, Pub. L. 90–577, §§ 602, 603, 82 Stat. 1107. 6508(b) ..... 42:4243. In the section, the words ‘‘of Congress’’ are added for clarity. The words ‘‘grant program’’ are substituted for ‘‘grant-in-aid program’’ for consistency in the chapter. In subsection (a)(1), before clause (A), the words ‘‘The study shall include a review of’’ are substituted for ‘‘to determine’’ for clarity. In clause (B), the words ‘‘among other relevant matters’’ are omitted as unnecessary. In subsection (b)(1)(B), the words ‘‘administration of the program by the United States Government’’ are substituted for ‘‘Federal administration’’ for consist- ency in the revised title. In subsection (b)(2), the words ‘‘requesting the study’’ are added for clarity. CHAPTER 67—FEDERAL PAYMENTS Sec. 6701. Payments to local governments. 6702. Local Government Fiscal Assistance Fund. 6703. Qualification for payment. 6704. State area allocations; allocations and pay- ments to territorial governments. 6705. Local government allocations. 6706. Income gap multiplier. 6707. State variation of local government alloca- tions. 6708. Adjustments of local government allocations. 6709. Information used in allocation formulas. 6710. Public participation. 6711. Prohibited discrimination. 6712. Discrimination proceedings. 6713. Suspension and termination of payments in discrimination proceedings. 6714. Compliance agreements. 6715. Enforcement by the Attorney General of pro- hibitions on discrimination. Sec. 6716. Civil action by a person adversely affected. 6717. Judicial review. 6718. Investigations and reviews. 6719. Reports. 6720. Definitions, application, and administration. Editorial Notes PRIOR PROVISIONS A prior chapter 67, consisting of sections 6701 to 6724, related to revenue sharing, prior to repeal by Pub. L. 99–272, title XIV, § 14001(a)(1), (e), Apr. 7, 1986, 100 Stat. 327, 329, eff. Oct. 18, 1986. § 6701. Payments to local governments (a) PAYMENT AND USE.— (1) PAYMENT.—The Secretary shall pay to each unit of general local government which qualifies for a payment under this chapter an amount equal to the sum of any amounts allo- cated to the government under this chapter for each payment period. The Secretary shall pay such amount out of the Local Government Fiscal Assistance Fund under section 6702. (2) USE.—Amounts paid to a unit of general local government under this section shall be used by that unit for carrying out one or more programs of the unit related to— (A) education to prevent crime; (B) substance abuse treatment to prevent crime; or (C) job programs to prevent crime. (3) COORDINATION.—Programs funded under this title shall be coordinated with other ex- isting Federal programs to meet the overall needs of communities that benefit from funds received under this section. (b) TIMING OF PAYMENTS.—The Secretary shall pay each amount allocated under this chapter to a unit of general local government for a pay- ment period by the later of 90 days after the date the amount is available or the first day of the payment period provided that the unit of general local government has provided the Sec- retary with the assurances required by section 6703(d). (c) ADJUSTMENTS.— (1) IN GENERAL.—Subject to paragraph (2), the Secretary shall adjust a payment under this chapter to a unit of general local govern- ment to the extent that a prior payment to the government was more or less than the amount required to be paid. (2) CONSIDERATIONS.—The Secretary may in- crease or decrease under this subsection a pay- ment to a unit of local government only if the Secretary determines the need for the increase or decrease, or the unit requests the increase or decrease, within one year after the end of the payment period for which the payment was made. (d) RESERVATION FOR ADJUSTMENTS.—The Sec- retary may reserve a percentage of not more than 2 percent of the amount under this section for a payment period for all units of general local government in a State if the Secretary considers the reserve is necessary to ensure the availability of sufficient amounts to pay adjust- ments after the final allocation of amounts among the units of general local government in the State. Page 537 TITLE 31—MONEY AND FINANCE § 6702 1 See References in Text note below. 2 So in original. Probably should be ‘‘632(p)’’. (e) REPAYMENT OF UNEXPENDED AMOUNTS.— (1) REPAYMENT REQUIRED.—A unit of general local government shall repay to the Secretary, by not later than 15 months after receipt from the Secretary, any amount that is— (A) paid to the unit from amounts appro- priated under the authority of this section; and (B) not expended by the unit within one year after receipt from the Secretary. (2) PENALTY FOR FAILURE TO REPAY.—If the amount required to be repaid is not repaid, the Secretary shall reduce payments in future payment periods accordingly. (3) DEPOSIT OF AMOUNTS REPAID.—Amounts received by the Secretary as repayments under this subsection shall be deposited in the Local Government Fiscal Assistance Fund for future payments to units of general local gov- ernment. (f) EXPENDITURE WITH DISADVANTAGED BUSI- NESS ENTERPRISES.— (1) GENERAL RULE.—Of amounts paid to a unit of general local government under this chapter for a payment period, not less than 10 percent of the total combined amounts obli- gated by the unit for contracts and sub- contracts shall be expended with— (A) small business concerns controlled by socially and economically disadvantaged in- dividuals and women; (B) historically Black colleges and univer- sities and colleges and universities having a student body in which more than 20 percent of the students are Hispanic Americans or Native Americans; and (C) qualified HUBZone small business con- cerns. (2) EXCEPTION.—Paragraph (1) shall not apply to amounts paid to a unit of general local government to the extent the unit deter- mines that the paragraph does not apply through a process that provides for public par- ticipation. (3) DEFINITIONS.—For purposes of this sub- section— (A) the term ‘‘small business concern’’ has the meaning such term has under section 3 of the Small Business Act; (B) the term ‘‘socially and economically disadvantaged individuals’’ has the meaning such term has under section 8(d) of the Small Business Act and relevant subcon- tracting regulations promulgated pursuant to that section; and (C) the term ‘‘qualified HUBZone small business concern’’ has the meaning given that term in section 3(p) 1 of the Small Busi- ness Act (15 U.S.C. 632(o) 2). (g) NONSUPPLANTING REQUIREMENT.— (1) IN GENERAL.—Funds made available under this chapter to units of local government shall not be used to supplant State or local funds, but will be used to increase the amount of funds that would, in the absence of funds under this chapter, be made available from State or local sources. (2) BASE LEVEL AMOUNT.—The total level of funding available to a unit of local govern- ment for accounts serving eligible purposes under this chapter in the fiscal year imme- diately preceding receipt of a grant under this chapter shall be designated the ‘‘base level ac- count’’ for the fiscal year in which a grant is received. Grants under this chapter in a given fiscal year shall be reduced on a dollar for dol- lar basis to the extent that a unit of local gov- ernment reduces its base level account in that fiscal year. (Added Pub. L. 103–322, title III, § 31001(a), Sept. 13, 1994, 108 Stat. 1859; amended Pub. L. 105–135, title VI, § 604(e)(2), Dec. 2, 1997, 111 Stat. 2633.) Editorial Notes REFERENCES IN TEXT Sections 3 and 8(d) of the Small Business Act, re- ferred to in subsec. (f)(3), are classified to sections 632 and 637(d), respectively, of Title 15, Commerce and Trade. Section 3(p) of the Act was redesignated as sec- tion 31(b) by Pub. L. 115–91, div. A, title XVII, § 1701(a)(2), Dec. 12, 2017, 131 Stat. 1795, and is now clas- sified to section 657a(b) of Title 15. PRIOR PROVISIONS A prior section 6701, Pub. L. 97–258, Sept. 13, 1982, 96 Stat. 1010; Pub. L. 98–185, §§ 2, 9(a), Nov. 30, 1983, 97 Stat. 1309, 1311, related to definitions and application of chapter, prior to repeal by Pub. L. 99–272, title XIV, § 14001(a)(1), (e), Apr. 7, 1986, 100 Stat. 327, 329, eff. Oct. 18, 1986. AMENDMENTS 1997—Subsec. (f)(1)(C). Pub. L. 105–135, § 604(e)(2)(A), added subpar. (C). Subsec. (f)(3)(C). Pub. L. 105–135, § 604(e)(2)(B), added subpar. (C). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1997 AMENDMENT Amendment by Pub. L. 105–135 effective Oct. 1, 1997, see section 3 of Pub. L. 105–135, set out as a note under section 631 of Title 15, Commerce and Trade. REGULATIONS Pub. L. 103–322, title III, § 31001(b), Sept. 13, 1994, 108 Stat. 1881, provided that: ‘‘Within 90 days of the date of enactment of this Act [Sept. 13, 1994] the Secretary shall issue regulations, which may be interim regula- tions, to implement subsection (a) [enacting this chap- ter], modifying the regulations for carrying into effect the Revenue Sharing Act [former chapter 67 of this title] that were in effect as of July 1, 1987, and that were published in 31 C.F.R. part 51. The Secretary need not hold a public hearing before issuing these regula- tions.’’ § 6702. Local Government Fiscal Assistance Fund (a) ADMINISTRATION OF FUND.—The Depart- ment of the Treasury has a Local Government Fiscal Assistance Fund, which consists of amounts appropriated to the Fund. (b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated to the Fund— (1) $270,000,000 for fiscal year 1996; (2) $283,500,000 for fiscal year 1997; (3) $355,500,000 for fiscal year 1998; (4) $355,500,000 for fiscal year 1999; and (5) $355,500,000 for fiscal year 2000. Such sums are to remain available until ex- pended.