§ 6701. — Payments to local governments.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC6701]
TITLE 31--MONEY AND FINANCE
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
CHAPTER 67--FEDERAL PAYMENTS
Sec. 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 allocated 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 existing 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
payment 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 Secretary 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
government 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 increase or decrease
under this subsection a payment 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 Secretary 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 adjustments after the final
allocation of amounts among the units of general local government in the
State.
(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 appropriated 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 government.
(f) Expenditure With Disadvantaged Business 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 obligated by the unit for
contracts and subcontracts shall be expended with--
(A) small business concerns controlled by socially and
economically disadvantaged individuals and women;
(B) historically Black colleges and universities 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 concerns.
(2) Exception.--Paragraph (1) shall not apply to amounts paid to
a unit of general local government to the extent the unit determines
that the paragraph does not apply through a process that provides
for public participation.
(3) Definitions.--For purposes of this subsection--
(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 subcontracting
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) of the Small
Business Act (15 U.S.C. 632(o) \1\).
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\1\ So in original. Probably should be ``632(p)''.
(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 government for accounts serving eligible purposes
under this chapter in the fiscal year immediately preceding receipt
of a grant under this chapter shall be designated the ``base level
account'' 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 dollar basis to the extent that a unit of local
government reduces its base level account in that fiscal year.
(Added Pub. L. 103-322, title III, Sec. 31001(a), Sept. 13, 1994, 108
Stat. 1859; amended Pub. L. 105-135, title VI, Sec. 604(e)(2), Dec. 2,
1997, 111 Stat. 2633.)
References in Text
Sections 3 and 8(d) of the Small Business Act, referred to in
subsec. (f)(3), are classified to sections 632 and 637(d), respectively,
of Title 15, Commerce and Trade.
Prior Provisions
A prior section 6701, Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1010;
Pub. L. 98-185, Secs. 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, Sec. 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, Sec. 604(e)(2)(A), added
subpar. (C).
Subsec. (f)(3)(C). Pub. L. 105-135, Sec. 604(e)(2)(B), added subpar.
(C).
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
Section 31001(b) of Pub. L. 103-322 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 regulations, to implement
subsection (a) [enacting this chapter], 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 regulations.''
Section Referred to in Other Sections
This section is referred to in sections 6703, 6705, 6708, 6720 of
this title.
