§ 6704. — State area allocations; allocations and payments to territorial 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: 31USC6704]
TITLE 31--MONEY AND FINANCE
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
CHAPTER 67--FEDERAL PAYMENTS
Sec. 6704. State area allocations; allocations and payments to
territorial governments
(a) Formula Allocation by State.--For each payment period, the
Secretary shall allocate to each State out of the amount appropriated
for the period under the authority of section 6702(b) (minus the amounts
allocated to territorial governments under subsection (e) for the
payment period) an amount bearing the same ratio to the amount
appropriated (minus such amounts allocated under subsection (e)) as the
amount allocated to the State under this section bears to the total
amount allocated to all States under this section. The Secretary shall--
(1) determine the amount allocated to the State under subsection
(b) or (c) of this section and allocate the larger amount to the
State; and
(2) allocate the amount allocated to the State to units of
general local government in the State under sections 6705 and 6706.
(b) General Formula.--
(1) In general.--For the payment period beginning October 1,
1994, the amount allocated to a State under this subsection for a
payment period is the amount bearing the same ratio to
$5,300,000,000 as--
(A) the population of the State, multiplied by the general
tax effort factor of the State (determined under paragraph (2)),
multiplied by the relative income factor of the State
(determined under paragraph (3)), multiplied by the relative
rate of the labor force unemployed in the State (determined
under paragraph (4)); bears to
(B) the sum of the products determined under subparagraph
(A) of this paragraph for all States.
(2) General tax effort factor.--The general tax effort factor of
a State for a payment period is--
(A) the net amount of State and local taxes of the State
collected during the year 1991 as reported by the Bureau of the
Census in the publication Government Finances 1990-1991; divided
by
(B) the total income of individuals, as determined by the
Secretary of Commerce for national accounts purposes for 1992 as
reported in the publication Survey of Current Business (August
1993), attributed to the State for the same year.
(3) Relative income factor.--The relative income factor of a
State is a fraction in which--
(A) the numerator is the per capita income of the United
States; and
(B) the denominator is the per capita income of the State.
(4) Relative rate of labor force.--The relative rate of the
labor force unemployed in a State is a fraction in which--
(A) the numerator is the percentage of the labor force of
the State that is unemployed in the calendar year preceding the
payment period (as determined by the Secretary of Labor for
general statistical purposes); and
(B) the denominator is the percentage of the labor force of
the United States that is unemployed in the calendar year
preceding the payment period (as determined by the Secretary of
Labor for general statistical purposes).
(c) Alternative Formula.--For the payment period beginning October
1, 1994, the amount allocated to a State under this subsection for a
payment period is the total amount the State would receive if--
(1) $1,166,666,667 were allocated among the States on the basis
of population by allocating to each State an amount bearing the same
ratio to the total amount to be allocated under this paragraph as
the population of the State bears to the population of all States;
(2) $1,166,666,667 were allocated among the States on the basis
of population inversely weighted for per capita income, by
allocating to each State an amount bearing the same ratio to the
total amount to be allocated under this paragraph as--
(A) the population of the State, multiplied by a fraction in
which--
(i) the numerator is the per capita income of all
States; and
(ii) the denominator is the per capita income of the
State; bears to
(B) the sum of the products determined under subparagraph
(A) for all States;
(3) $600,000,000 were allocated among the States on the basis of
income tax collections by allocating to each State an amount bearing
the same ratio to the total amount to be allocated under this
paragraph as the income tax amount of the State (determined under
subsection (d)(1)) bears to the sum of the income tax amounts of all
States;
(4) $600,000,000 were allocated among the States on the basis of
general tax effort by allocating to each State an amount bearing the
same ratio to the total amount to be allocated under this paragraph
as the general tax effort amount of the State (determined under
subsection (d)(2)) bears to the sum of the general tax effort
amounts of all States;
(5) $600,000,000 were allocated among the States on the basis of
unemployment by allocating to each State an amount bearing the same
ratio to the total amount to be allocated under this paragraph as--
(A) the labor force of the State, multiplied by a fraction
in which--
(i) the numerator is the percentage of the labor force
of the State that is unemployed in the calendar year
preceding the payment period (as determined by the Secretary
of Labor for general statistical purposes); and
(ii) the denominator is the percentage of the labor
force of the United States that is unemployed in the
calendar year preceding the payment period (as determined by
the Secretary of Labor for general statistical purposes)
bears to
(B) the sum of the products determined under subparagraph
(A) for all States; and
(6) $1,166,666,667 were allocated among the States on the basis
of urbanized population by allocating to each State an amount
bearing the same ratio to the total amount to be allocated under
this paragraph as the urbanized population of the State bears to the
urbanized population of all States. In this paragraph, the term
``urbanized population'' means the population of an area consisting
of a central city or cities of at least 50,000 inhabitants and the
surrounding closely settled area for the city or cities considered
as an urbanized area as published by the Bureau of the Census for
1990 in the publication General Population Characteristics for
Urbanized Areas.
(d) Income Tax Amount and Tax Effort Amount.--
(1) Income tax amount.--The income tax amount of a State for a
payment period is 15 percent of the net amount collected during the
calendar year ending before the beginning of the payment period from
the tax imposed on the income of individuals by the State and
described as a State income tax under section 164(a)(3) of the
Internal Revenue Code of 1986 (26 U.S.C. 164(a)(3)). The income tax
amount for a payment period shall be at least 1 percent but not more
than 6 percent of the United States Government individual income tax
liability attributed to the State for the taxable year ending during
the last calendar year ending before the beginning of the payment
period. The Secretary shall determine the Government income tax
liability attributed to the State by using the data published by the
Secretary for 1991 in the publication Statistics of Income Bulletin
(Winter 1993-1994).
(2) General tax effort amount.--The general tax effort amount of
a State for a payment period is the amount determined by
multiplying--
(A) the net amount of State and local taxes of the State
collected during the year 1991 as reported in the Bureau of \1\
Census in the publication Government Finances 1990-1991; and
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\1\ So in original. Probably should be ``of the''.
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(B) the general tax effort factor of the State determined
under subsection (b)(2).
(e) Allocation for Puerto Rico, Guam, American Samoa, and the Virgin
Islands.--
(1) In general.--(A) For each payment period for which funds are
available for allocation under this chapter, the Secretary shall
allocate to each territorial government an amount equal to the
product of 1 percent of the amount of funds available for allocation
multiplied by the applicable territorial percentage.
(B) For the purposes of this paragraph, the applicable
territorial percentage of a territory is equal to the quotient
resulting from the division of the territorial population of such
territory by the sum of the territorial population for all
territories.
(2) Payments to local governments.--The governments of the
territories shall make payments to local governments within their
jurisdiction from sums received under this subsection as they
consider appropriate.
(3) Definitions.--For purposes of this subsection--
(A) the term ``territorial government'' means the government
of a territory;
(B) the term ``territory'' means Puerto Rico, Guam, American
Samoa, and the Virgin Islands; and
(C) the term ``territorial population'' means the most
recent population for each territory as determined by the Bureau
of \1\ Census.
(Added Pub. L. 103-322, title III, Sec. 31001(a), Sept. 13, 1994, 108
Stat. 1864.)
Prior Provisions
A prior section 6704, Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1013;
Pub. L. 98-185, Sec. 9(b), Nov. 30, 1983, 97 Stat. 1311, related to
qualifications of State or local governments for payments under this
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.
Section Referred to in Other Sections
This section is referred to in sections 6705, 6706, 6709, 6720 of
this title.
