I
103D CONGRESS
1ST SESSION
H. R. 581
To authorize payments to units of general local government for fiscal years
1993 and 1994.
IN THE HOUSE OF REPRESENTATIVES
JANUARY 26, 1993
Mr. CONYERS (for himself, Mrs. COLLINS of Illinois, Mr. WAXMAN, Mr. LAN-
TOS, Mr. OWENS, Mr. TOWNS, Ms. THURMAN, Mr. RUSH, Ms. MALONEY,
Mr. PAYNE of New Jersey, Mr. ABERCROMBIE, Mr. BLACKWELL, Mrs.
COLLINS of Michigan, Mr. DELLUMS, Mr. DE LUGO, Mr. EVANS, Mr.
FALEOMAVAEGA, Mr. FRANK of Massachusetts, Mr. FORD of Tennessee,
Mr. JEFFERSON, Mr. LIPINSKI, Mr. MARTINEZ, Mr. MAZZOLI, Mr.
MFUME, Mr. THORNTON, Mr. TUCKER, Ms. WATERS, Mr. WHEAT, and
Mr. SANDERS) introduced the following bill; which was referred to the
Committee on Government Operations
A BILL
To authorize payments to units of general local government
for fiscal years 1993 and 1994.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Local Partnership Act
of 1993’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) the total number of individuals in the Unit-
ed States who have full time jobs has declined by
900,000 since June 1990, falling from 98,400,000
in June 1990 to 97,500,000 in December 1992;
(2) effective local governments and the services
they provide contribute to national economic growth;
(3) because of the recession, many local govern-
ments are curtailing vital public services and raising
local taxes;
(4) local governments would spend quickly and
productively any additional Federal funds they re-
ceive under this Act;
(5) local governments, including counties, cities,
towns, Indian tribes, and Alaskan Native villages,
provide many essential public services more effec-
tively than the Federal Government;
(6) the amount of money provided by the Fed-
eral Government directly to county, municipal, and
township 
local 
governments 
declined 
from
$16,600,000,000 in 1981 to $10,500,000,000 in
1990;
(7) many new Federal laws, especially in the
environmental area, require substantial expenditures
by local governments to meet national standards
without providing any Federal funds to offset these
expenditures;
(8) over the past decade the population of the
United States has become increasingly concentrated
in wealthier or poorer counties, with fewer people liv-
ing in middle-income counties in 1987 than in 1977;
(9) the disparities in per capita income between
cities and their suburbs accelerated in the 1980’s;
(10) in the 1980’s poverty became increasingly
concentrated in the Nation’s cities;
(11) many cities and rural areas face common
problems: an exodus of jobs and people, an eroding
tax base, and declining social services;
(12) there is a growing discrepancy in the abil-
ity of the Nation’s local governments to provide nec-
essary public services for their residents;
(13) this discrepancy has serious adverse con-
sequences for the entire Nation;
(14) rising labor unemployment both increases
the need for local governments to provide services
and reduces their tax receipts;
(15) there are differences among the States in
their rate of labor unemployment;
(16) in 1989–90 county, municipal, and town
governments raised $128,000,000,000 in taxes, of
which about 63 percent, or $81,000,000,000, came
from property taxes;
(17) the Federal income tax raises revenue
more equitably and efficiently than the local prop-
erty tax;
(18) in August 1992 the Congressional Budget
Office estimated that total Federal individual and
corporate income tax receipts will increase from
$574,000,000,000 
in 
fiscal 
year 
1992 
to
$666,000,000,000 in fiscal year 1994; and
(19) returning some of this extra Federal in-
come tax revenue to local governments in a manner
that is focused on the Nation’s most impoverished
local governments is in the national interest.
SEC. 3. ESTABLISHMENT OF PAYMENT PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—Title 31, Unit-
ed States Code, is amended by inserting after chapter 65
the following:
‘‘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 payments to territorial govern-
ments.
‘‘6705. Local government allocations.
‘‘6706. Income gap multiplier.
‘‘6707. State variation of local government allocations.
‘‘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 prohibitions on discrimination.
‘‘6716. Civil action by a person adversely affected.
‘‘6717. Judicial review.
‘‘6718. Audits, investigations, and reviews.
‘‘6719. Reports.
‘‘6720. Definitions and application.
‘‘§ 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 govern-
ment 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—
‘‘(A) rehiring workers, restoring services,
or expanding programs which, because of the
most recent recession, have been laid-off, elimi-
nated, or overburdened, respectively; and
‘‘(B) carrying out one or more programs of
the unit related to—
‘‘(i) education;
‘‘(ii) public safety;
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 0.5 per-
cent of the amount under this section for a payment pe-
riod for all units of general local government in a State
if the Secretary considers the reserve is necessary to en-
sure 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.
‘‘(e) REPAYMENT OF UNEXPENDED AMOUNTS.—
‘‘(1) REPAYMENT REQUIRED.—A unit of gen-
eral local government shall repay to the Secretary,
by not later than November 15, 1994, 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 by October
31, 1994.
‘‘(2) DEPOSIT OF AMOUNTS REPAID.—Amounts
received by the Secretary as repayments under this
subsection shall be deposited in the general fund of
the Treasury as miscellaneous receipts.
‘‘(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 obligated by the unit for
contracts and subcontracts shall be expended with—
‘‘(A) small business concerns controlled by
socially and economically disadvantaged individ-
uals and women; and
‘‘(B) historically Black colleges and univer-
sities and colleges and universities having a stu-
dent body in which more than 20 percent of the
students are Hispanic Americans or Native
Americans.
‘‘(2) EXCEPTION.—Paragraph (1) shall not
apply to amounts paid to a unit of general local gov-
ernment 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 sub-
section—
‘‘(A) the term ‘small business concern’ has
the meaning such term has under section 3 of
the Small Business Act; and
‘‘(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 regu-
lations promulgated pursuant to that section.
‘‘§ 6702. Local Government Fiscal Assistance Fund
‘‘(a) ADMINISTRATION OF FUND.—The Department
of Housing and Urban Development has a Local Govern-
ment Fiscal Assistance Fund, which consists of amounts
appropriated to the Fund.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Fund
$3,000,000,000 for fiscal years 1993 and 1994.
‘‘§ 6703. Qualification for payment
‘‘(a) IN GENERAL.—Under regulations issued by the
Secretary, a unit of general local government qualifies for
a payment under this chapter for a payment period only
after establishing to the satisfaction of the Secretary
that—
‘‘(1) the government will establish a trust fund
in which the government will deposit all payments
received under this chapter;
‘‘(2) the government will use amounts in the
trust fund (including interest) during a reasonable
period specified in the regulations issued by the Sec-
retary;
‘‘(3) the government will expend the payments
so received, in accordance with the laws and proce-
dures that are applicable to the expenditure of reve-
nues of the government;
‘‘(4) if at least 25 percent of the pay of individ-
uals employed by the government in a public em-
ployee occupation is paid out of the trust fund, indi-
viduals in the occupation any part of whose pay is
paid out of the trust fund will receive pay at least
equal to the prevailing rate of pay for individuals
employed in similar public employee occupations by
the government;
‘‘(5) if at least 25 percent of the costs of a con-
struction project are paid out of the trust fund, la-
borers and mechanics employed by contractors or
subcontractors on the project will receive pay at
least equal to the prevailing rate of pay for similar
construction in the locality as determined by the
Secretary of Labor under the Act of March 3, 1931
(46 Stat. 1494 et seq.; popularly known as the
Davis-Bacon Act), and the Secretary of Labor shall
act on labor standards under this paragraph in a
manner that is in accordance with Reorganization
Plan No. 14 of 1950 (64 Stat. 1267) and section 2
of the Act of June 13, 1934 (48 Stat. 948);
‘‘(6) the government will use accounting, audit,
and fiscal procedures that conform to guidelines
which shall be prescribed by the Secretary after con-
sultation with the Comptroller General of the United
States;
‘‘(7) after reasonable notice to the government,
the government will make available to the Secretary
and the Comptroller General of the United States,
with the right to inspect, records the Secretary rea-
sonably requires to review compliance with this
chapter or the Comptroller General of the United
States reasonably requires to review compliance and
operations under section 6718(b); and
‘‘(8) the government will make reports the Sec-
retary reasonably requires, in addition to the annual
reports required under section 6719(b).
‘‘(b) REVIEW BY GOVERNORS.—A unit of general
local government shall give the chief executive officer of
the State in which the government is located an oppor-
tunity for review and comment before establishing compli-
ance with subsection (a).
‘‘(c) SANCTIONS FOR NONCOMPLIANCE.—(1) If the
Secretary decides that a unit of general local government
has not complied substantially with subsection (a) or regu-
lations prescribed under subsection (a), the Secretary shall
notify the government. The notice shall state that if the
government does not take corrective action by the 60th
day after the date the government receives the notice, the
Secretary will withhold additional payments to the govern-
ment for the current payment period and later payment
periods until the Secretary is satisfied that the govern-
ment—
‘‘(A) has taken the appropriate corrective ac-
tion; and
‘‘(B) will comply with subsection (a) and regu-
lations prescribed under subsection (a).
‘‘(2) Before giving notice under paragraph (1), the
Secretary shall give the chief executive officer of the unit
of general local government reasonable notice and an op-
portunity for a proceeding.
‘‘(3) The Secretary may make a payment to a unit
of general local government notified under paragraph (1)
only if the Secretary is satisfied that the government—
‘‘(A) has taken the appropriate corrective ac-
tion; and
‘‘(B) will comply with subsection (a) and regu-
lations prescribed under subsection (a).
‘‘§ 6704. State area allocations; allocations and pay-
ments 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) 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 (deter-
mined under paragraph (2)), multiplied by the rel-
ative 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
subclause (A) of this paragraph for all States.
‘‘(2) 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 years used by the Sec-
retary of Commerce in the most recent Bureau of
the Census general determination of State and local
taxes made before the beginning of the payment pe-
riod; divided by
‘‘(B) the total income of individuals, as deter-
mined by the Secretary of Commerce for national in-
come accounts purposes, attributed to the State for
the same years.
‘‘(3) The relative income factor of a State is a frac-
tion 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) 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 (as de-
termined by the Secretary of Labor for general sta-
tistical purposes); and
‘‘(B) the denominator is the percentage of the
labor force of the United States that is unemployed
(as determined by the Secretary of Labor for general
statistical purposes).
‘‘(c) ALTERNATIVE FORMULA.—The amount allo-
cated to a State under this subsection for a payment pe-
riod 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, multi-
plied 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 allo-
cating 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 allocat-
ing to each State an amount bearing the same ratio
to the total amount to be allocated under this para-
graph 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, multi-
plied by a fraction in which—
‘‘(i) the numerator is the percentage
of the labor force of the State that is un-
employed (as determined by the Secretary
of Labor for general statistical purposes);
and
‘‘(ii) the denominator is the percent-
age of the labor force of the United States
that is unemployed (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 allo-
cating 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 by the Sec-
retary of Commerce for general statistical purposes.
‘‘(d) INCOME TAX AMOUNT
AND TAX EFFORT
AMOUNT.—(1) 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 in-
come 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 one percent
but not more than 6 percent of the United States Govern-
ment 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 li-
ability attributed to the State on the same basis as the
Secretary of the Treasury determines that liability for gen-
eral statistical purposes.
‘‘(2) The general tax effort amount of a State for
a payment period is the amount determined by multiply-
ing—
‘‘(A) the net amount of State and local taxes of
the State collected during the years used by the Sec-
retary of Commerce in the most recent Bureau of
the Census general determination of State and local
taxes made before the beginning of the payment pe-
riod; by
‘‘(B) the general tax effort factor of the State
determined under subsection (b)(2).
‘‘(e) ALLOCATION FOR PUERTO RICO, GUAM, AMER-
ICAN SAMOA, AND THE VIRGIN ISLANDS.—(1)(A) For
each payment period for which funds are available for allo-
cation under this chapter, the Secretary shall allocate to
each territorial government an amount equal to the prod-
uct of 1 percent of the amount of funds available for allo-
cation multiplied by the applicable territorial percentage.
‘‘(B) For the purposes of this paragraph, the applica-
ble territorial percentage of a territory is equal to the
quotient resulting from the division of the territorial popu-
lation of such territory by the sum of the territorial popu-
lation for all territories.
‘‘(2) 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) 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 ter-
ritory as determined by the Bureau of Census.
‘‘§ 6705. Local government allocations
‘‘(a) INDIAN TRIBES AND ALASKAN NATIVES VIL-
LAGES.—If there is in a State an Indian tribe or Alaskan
native village having a recognized governing body carrying
out substantial governmental duties and powers, the Sec-
retary shall allocate to the tribe or village, out of the
amount allocated to the State under section 6704, an
amount bearing the same ratio to the amount allocated
to the State as the population of the tribe or village bears
to the population of the State. The Secretary shall allocate
amounts under this subsection to Indian tribes and Alas-
kan native villages in a State before allocating amounts
to units of general local government in the State under
subsection (b).
‘‘(b) OTHER LOCAL GOVERNMENT ALLOCATIONS.—
(1) The Secretary shall allocate among the units of general
local government in a State (other than units receiving
allocations under subsection (a)) the amount allocated to
the State under section 6704 (as that amount is reduced
by allocations under subsection (a)). Of the amount to be
allocated, the Secretary shall allocate a portion equal to
1⁄2 of such amount in accordance with section 6706(1),
and shall allocate a portion equal to 1⁄2 of such amount
in accordance with section 6706(2). A unit of general local
government shall receive an amount equal to the sum of
amounts allocated to the unit from each portion.
‘‘(2) From each portion to be allocated to units of
local government in a State under paragraph (1), the Sec-
retary shall allocate to a unit an amount bearing the same
ratio to the funds to be allocated as—
‘‘(A) the population of the unit, multiplied by
the general tax effort factor of the unit (determined
under paragraph (3)), multiplied by the income gap
of the unit (determined under paragraph (4)), bears
to
‘‘(B) the sum of the products determined under
subparagraph (A) for all units in the State for which
the income gap for that portion under paragraph (4)
is greater than zero.
‘‘(3)(A) Except as provided in subparagraph (C), the
general tax effort factor of a unit of general local govern-
ment for a payment period is—
‘‘(i) the adjusted taxes of the unit; divided by
‘‘(ii) the total income attributed to the unit.
‘‘(B) If the amount determined under subparagraphs
(A)(i) and (ii) for a unit of general local government is
less than zero, the general tax effort factor of the unit
is deemed to be zero.
‘‘(C)(i) Except as otherwise provided in this subpara-
graph, the adjusted taxes of a unit of general local govern-
ment are the taxes imposed by the unit for public purposes
(except employee and employer assessments and contribu-
tions to finance retirement and social insurance systems
and other special assessments for capital outlay), as deter-
mined by the Secretary of Commerce for general statistical
purposes and adjusted (under regulations of the Sec-
retary) to exclude amounts properly allocated to education
expenses.
‘‘(ii) The Secretary shall, for purposes of clause (i),
include that part of sales taxes transferred to a unit of
general local government that are imposed by a county
government in the geographic area of which is located the
unit of general local government as taxes imposed by the
unit for public purposes if—
‘‘(I) the county government transfers any part
of the revenue from the taxes to the unit of general
local government without specifying the purpose for
which the unit of general local government may ex-
pend the revenue; and
‘‘(II) the chief executive officer of the State no-
tifies the Secretary that the taxes satisfy the re-
quirements of this clause.
‘‘(iii) The adjusted taxes of a unit of general local
government shall not exceed the maximum allowable ad-
justed taxes for that unit.
‘‘(iv) The maximum allowable adjusted taxes for a
unit of general local government is the allowable adjusted
taxes of the unit minus the excess adjusted taxes of the
unit.
‘‘(v) The allowable adjusted taxes of a unit of general
government is the greater of—
‘‘(I) the amount equal to 2.5, multiplied by the
per capita adjusted taxes of all units of general local
government of the same type in the State, multiplied
by the population of the unit; or
‘‘(II) the amount equal to the population of the
unit, multiplied by the sum of the adjusted taxes of
all units of municipal local government in the State,
divided by the sum of the populations of all the units
of municipal local government in the State.
‘‘(vi) The excess adjusted taxes of a unit of general
local government is the amount equal to—
‘‘(I) the adjusted taxes of the unit, minus
‘‘(II) 1.5 multiplied by the allowable adjusted
taxes of the unit;
except that if this amount is less than zero then the excess
adjusted taxes of the unit is deemed to be zero.
‘‘(vii) For purposes of this subparagraph—
‘‘(I) the term ‘per capita adjusted taxes of all
units of general local government of the same type’
means the sum of the adjusted taxes of all units of
general local government of the same type divided by
the sum of the populations of all units of general
local government of the same type; and
‘‘(II) the term ‘units of general local govern-
ment of the same type’ means all townships if the
unit of general local government is a township, all
municipalities if the unit of general local government
is a municipality, all counties if the unit of general
local government is a county, or all unified city/
county governments if the unit of general local gov-
ernment is a unified city/county government.
‘‘(4)(A) Except as provided in subparagraph (B), the
income gap of a unit of general local government is—
‘‘(i) the number which applies under section
6706, multiplied by the per capita income of the
State in which the unit is located; minus
‘‘(ii) the per capita income of the geographic
area of the unit.
‘‘(B) If the amount determined under subparagraph
(A) for a unit of general local government is less than
zero, then the relative income factor of the unit is deemed
to be zero.
‘‘(c) SMALL GOVERNMENT ALLOCATIONS.—If the
Secretary decides that information available for a unit of
general local government with a population below a num-
ber (of not more than 500) prescribed by the Secretary
is inadequate, the Secretary may allocate to the unit, in
lieu of any allocation under subsection (b) for a payment
period, an amount bearing the same ratio to the total
amount to be allocated under subsection (b) for the period
for all units of general local government in the State as
the population of the unit bears to the population of all
units in the State.
‘‘§ 6706. Income gap multiplier
‘‘For purposes of determining the income gap of a
unit 
of 
general 
local 
government 
under 
section
6705(b)(4)(A), the number which applies is—
‘‘(1) 1.6, with respect to 1⁄2 of any amount allo-
cated under section 6704 to the State in which the
unit is located; and
‘‘(2) 1.2, with respect to the remainder of such
amount.
‘‘§ 6707. State variation of local government alloca-
tions
‘‘(a) STATE FORMULA.—A State government may
provide by law for the allocation of amounts among units
of general local government in the State on the basis of
population multiplied by the general tax effort factors or
income gaps of the units of general local government (de-
termined under sections 6705(a) and (b) or a combination
of those factors. A State government providing for a vari-
ation of an allocation formula provided under section
6705(a) and (b) shall notify the Secretary of the variation
by the 30th day before the beginning of the first payment
period in which the variation applies. A variation shall—
‘‘(1) provide for allocating the total amount al-
located under section 6705(a) and (b);
‘‘(2) apply uniformly in the State; and
‘‘(3) apply only to payment periods beginning
before October 1, 1995.
‘‘(b) CERTIFICATION.—A variation by a State govern-
ment under this section may apply only if the Secretary
certifies that the variation complies with this section. The
Secretary may certify a variation only if the Secretary is
notified of the variation at least 30 days before the first
payment period in which the variation applies.
‘‘§ 6708. Adjustments of local government allocations
‘‘(a) MAXIMUM AMOUNT.—The amount allocated to
a unit of general local government for a payment period
may not exceed the adjusted taxes imposed by the unit
of general local government as determined under section
6705(b)(3). Amounts in excess of adjusted taxes shall be
paid to the Governor of the State in which the unit of
local government is located.
‘‘(b) DE MINIMIS ALLOCATIONS.—If the amount al-
located to a unit of general local government (except an
Indian tribe or an Alaskan native village) for a payment
period would be less than $5,000 but for this subsection
or is waived by the governing authority of the unit of gen-
eral local government, the Secretary shall pay the amount
to the Governor of the State in which the unit is located.
‘‘(c) USE OF PAYMENTS TO STATES.—The Governor
of a State shall use all amounts paid to the Governor
under subsections (a) and (b) for public works projects
in areas of the State where are located the units of general
local government with respect to which amounts are paid
under subsection (b).
‘‘§ 6709. Information used in allocation formulas
‘‘(a) USE OF MOST RECENT INFORMATION.—Except
as provided in this section, the Secretary shall use the
most recent available information provided by the Sec-
retary of Commerce and the Secretary of Labor before the
beginning of the payment period to determine an alloca-
tion under this chapter. If the Secretary decides that the
information is not current or complete enough to provide
for a fair allocation, the Secretary may use additional in-
formation (including information based on estimates) as
provided under regulations of the Secretary.
‘‘(b) POPULATION DATA.—(1) The Secretary shall
determine population on the same basis that the Secretary
of Commerce determines resident population for general
statistical purposes.
‘‘(2) The Secretary shall request the Secretary of
Commerce to adjust the population information provided
to the Secretary as soon as practicable to include a reason-
able estimate of the number of resident individuals not
counted in the 1990 census or revisions of the census. The
Secretary shall use the estimates in determining alloca-
tions for the payment period beginning after the Secretary
receives the estimates. The Secretary shall adjust popu-
lation information to reflect adjustments made under sec-
tion 118 of the Act of October 1, 1980 (Public Law 96–
369, 94 Stat. 1357).
‘‘(c) ADDITIONAL DATA LIMITATIONS.—The Sec-
retary may not—
‘‘(1) in determining an allocation for a payment
period, use information on tax collections for years
more recent than the years used by the Secretary of
Commerce in the most recent Bureau of the Census
general determination of State and local taxes made
before the beginning of that period; or
‘‘(2) consider a change in information used to
determine an allocation for a period of 60 months if
the change—
‘‘(A) results from a major disaster declared
by the President under section 401 of The Rob-
ert T. Stafford Disaster Relief and Emergency
Assistance Act; and
‘‘(B) reduces the amount of an allocation.
‘‘§ 6710. Public participation
‘‘(a) HEARINGS.—(1) A unit of general local govern-
ment expending payments under this chapter shall hold
at least one public hearing on the proposed use of the pay-
ment in relation to its entire budget. At the hearing, per-
sons shall be given an opportunity to provide written and
oral views to the governmental authority responsible for
enacting the budget and to ask questions about the entire
budget and the relation of the payment to the entire budg-
et. The government shall hold the hearing at a time and
a place that allows and encourages public attendance and
participation.
‘‘(2) A unit of general local government holding a
hearing required under this subsection or by the budget
process of the government shall try to provide senior citi-
zens and senior citizen organizations with an opportunity
to present views at the hearing before the government
makes a final decision on the use of the payment.
‘‘(b) DISCLOSURE
OF INFORMATION.—(1) By the
10th day before a hearing required under subsection
(a)(1) is held, a unit of general local government shall—
‘‘(A) make available for inspection by the public
at the principal office of the government a statement
of the proposed use of the payment and a summary
of the proposed budget of the government; and
‘‘(B) publish in at least one newspaper of gen-
eral circulation the proposed use of the payment
with the summary of the proposed budget and a no-
tice of the time and place of the hearing.
‘‘(2) By the 30th day after adoption of the budget
under State or local law, the government shall—
‘‘(A) make available for inspection by the public
at the principal office of the government a summary
of the adopted budget, including the proposed use of
the payment; and
‘‘(B) publish in at least one newspaper of gen-
eral circulation a notice that the information re-
ferred to in subparagraph (A) is available for inspec-
tion.
‘‘(c) WAIVERS OF REQUIREMENTS.—Under regula-
tions of the Secretary, a requirement—
‘‘(1) under subsection (a)(1) may be waived if
the budget process required under the applicable
State or local law or charter provisions—
‘‘(A) ensures the opportunity for public at-
tendance and participation contemplated by
subsection (a); and
‘‘(B) includes a hearing on the proposed
use of a payment received under this chapter in
relation to the entire budget of the government;
and
‘‘(2) under subsection (b)(1)(B) and (2)(B)
may be waived if the cost of publishing the informa-
tion would be unreasonably burdensome in relation
to the amount allocated to the government from
amounts available for payment under this chapter,
or if publication is otherwise impracticable.
‘‘(d) EXCEPTION TO 10-DAY LIMITATION.—If the
Secretary is satisfied that a unit of general local govern-
ment will provide adequate notice of the proposed use of
a payment received under this chapter, the 10-day period
under subsection (b)(1) may be changed to the extent nec-
essary to comply with applicable State or local law.
‘‘(e) APPLICATION
TO
GOVERNMENTS
WITHOUT
BUDGETS.—The Secretary shall prescribe regulations for
applying this section to units of general local government
that do not adopt budgets.
‘‘§ 6711. Prohibited discrimination
‘‘(a) GENERAL PROHIBITION.—No person in the
United States shall be excluded from participating in, be
denied the benefits of, or be subject to discrimination
under, a program or activity of a unit of general local gov-
ernment because of race, color, national origin, or sex if
the government receives a payment under this chapter.
‘‘(b) ADDITIONAL
PROHIBITIONS.—The following
prohibitions and exemptions also apply to a program or
activity of a unit of general local government if the govern-
ment receives a payment under this chapter:
‘‘(1) A prohibition against discrimination be-
cause of age under the Age Discrimination Act of
1975.
‘‘(2) 
A 
prohibition 
against 
discrimination
against an otherwise qualified handicapped individ-
ual under section 504 of the Rehabilitation Act of
1973.
‘‘(3) A prohibition against discrimination be-
cause of religion, or an exemption from that prohibi-
tion, under the Civil Rights Act of 1964 or title VIII
of the Act of April 11, 1968 (popularly known as the
Civil Rights Act of 1968).
‘‘(c) LIMITATIONS ON APPLICABILITY OF PROHIBI-
TIONS.—Subsections (a) and (b) do not apply if the gov-
ernment shows, by clear and convincing evidence, that a
payment received under this chapter is not used to pay
for any part of the program or activity with respect to
which the allegation of discrimination is made.
‘‘(d) INVESTIGATION AGREEMENTS.—The Secretary
shall try to make agreements with heads of agencies of
the United States Government and State agencies to in-
vestigate noncompliance with this section. An agreement
shall—
‘‘(1) describe the cooperative efforts to be taken
(including sharing civil rights enforcement personnel
and resources) to obtain compliance with this sec-
tion; and
‘‘(2) provide for notifying immediately the Sec-
retary of actions brought by the United States Gov-
ernment or State agencies against a unit of general
local government alleging a violation of a civil rights
law or a regulation prescribed under a civil rights
law.
‘‘§ 6712. Discrimination proceedings
‘‘(a) NOTICE OF NONCOMPLIANCE.—By the 10th day
after the Secretary makes a finding of discrimination or
receives a holding of discrimination about a unit of general
local government, the Secretary shall submit a notice of
noncompliance to the government. The notice shall state
the basis of the finding or holding.
‘‘(b) INFORMAL PRESENTATION OF EVIDENCE.—A
unit of general local government may present evidence in-
formally to the Secretary within 30 days after the govern-
ment receives a notice of noncompliance from the Sec-
retary. Except as provided in subsection (e), the govern-
ment may present evidence on whether—
‘‘(1) a person in the United States has been ex-
cluded or denied benefits of, or discriminated against
under, the program or activity of the government, in
violation of section 6711(a);
‘‘(2) the program or activity of the government
violated a prohibition described in section 6711(b);
and
‘‘(3) any part of that program or activity has
been paid for with a payment received under this
chapter.
‘‘(c) TEMPORARY SUSPENSION OF PAYMENTS.—By
the end of the 30-day period under subsection (b), the Sec-
retary shall decide whether the unit of general local gov-
ernment has not complied with section 6711 (a) or (b),
unless the government has entered into a compliance
agreement under section 6714. If the Secretary decides
that the government has not complied, the Secretary shall
notify the government of the decision and shall suspend
payments to the government under this chapter unless,
within 10 days after the government receives notice of the
decision, the government—
‘‘(1) enters into a compliance agreement under
section 6714; or
‘‘(2) requests a proceeding under subsection
(d)(1).
‘‘(d) ADMINISTRATIVE REVIEW OF SUSPENSIONS.—
(1) A proceeding requested under subsection (c)(2) shall
begin by the 30th day after the Secretary receives a re-
quest for the proceeding. The proceeding shall be before
an administrative law judge appointed under section 3105
of title 5. By the 30th day after the beginning of the pro-
ceeding, the judge shall issue a preliminary decision based
on the record at the time on whether the unit of general
local government is likely to prevail in showing compliance
with section 6711 (a) or (b).
‘‘(2) If the administrative law judge decides at the
end of a proceeding under paragraph (1) that the unit
of general local government has—
‘‘(A) not complied with section 6711 (a) or (b),
the judge may order payments to the government
under this chapter terminated; or
‘‘(B) complied with section 6711 (a) or (b), a
suspension under section 6713(a)(1)(A) shall be dis-
continued promptly.
‘‘(3) An administrative law judge may not issue a
preliminary decision that the government is not likely to
prevail if the judge has issued a decision described in para-
graph (2)(A).
‘‘(e) BASIS FOR REVIEW.—In a proceeding under
subsections (b) through (d) on a program or activity of
a unit of general local government about which a holding
of discrimination has been made, the Secretary or admin-
istrative law judge may consider only whether a payment
under this chapter was used to pay for any part of the
program or activity. The holding of discrimination is con-
clusive. If the holding is reversed by an appellate court,
the Secretary or judge shall end the proceeding.
‘‘§ 6713. Suspension and termination of payments in
discrimination proceedings
‘‘(a) IMPOSITION AND CONTINUATION OF SUSPEN-
SIONS.—(1) The Secretary shall suspend payment under
this chapter to a unit of general local government—
‘‘(A) if an administrative law judge appointed
under section 3105 of title 5 issues a preliminary de-
cision in a proceeding under section 6712(d)(1) that
the government is not likely to prevail in showing
compliance with section 6711 (a) and (b);
‘‘(B) if the administrative law judge decides at
the end of the proceeding that the government has
not complied with section 6711 (a) or (b), unless the
government makes a compliance agreement under
section 6714 by the 30th day after the decision; or
‘‘(C) if required under section 6712(c).
‘‘(2) A suspension already ordered under paragraph
(1)(A) continues in effect if the administrative law judge
makes a decision under paragraph (1)(B).
‘‘(b) LIFTING
OF
SUSPENSIONS
AND
TERMI-
NATIONS.—If a holding of discrimination is reversed by
an appellate court, a suspension or termination of pay-
ments in a proceeding based on the holding shall be dis-
continued.
‘‘(c) RESUMPTION OF PAYMENTS UPON ATTAINING
COMPLIANCE.—The Secretary may resume payment to a
unit of general local government of payments suspended
by the Secretary only—
‘‘(1) as of the time of, and under the conditions
stated in—
‘‘(A) the approval by the Secretary of a
compliance 
agreement 
under 
section
6714(a)(1); or
‘‘(B) a compliance agreement entered into
by the Secretary under section 6714(a)(2);
‘‘(2) if the government complies completely with
an order of a United States court, a State court, or
administrative law judge that covers all matters
raised in a notice of noncompliance submitted by the
Secretary under section 6712(a);
‘‘(3) if a United States court, a State court, or
an administrative law judge decides (including a
judge in a proceeding under section 6712(d)(1)),
that the government has complied with sections
6711 (a) and (b); or
‘‘(4) if a suspension is discontinued under sub-
section (b).
‘‘(d) PAYMENT OF DAMAGES AS COMPLIANCE.—For
purposes of subsection (c)(2), compliance by a government
may consist of the payment of restitution to a person in-
jured because the government did not comply with section
6711 (a) or (b).
‘‘(e) RESUMPTION OF PAYMENTS UPON REVERSAL
BY COURT.—The Secretary may resume payment to a unit
of general local government of payments terminated under
section 6712(d)(2)(A) only if the decision resulting in the
termination is reversed by an appellate court.
‘‘§ 6714. Compliance agreements
‘‘(a) TYPES OF COMPLIANCE AGREEMENTS.—A com-
pliance agreement is an agreement—
‘‘(1) approved by the Secretary, between the
governmental authority responsible for prosecuting a
claim or complaint that is the basis of a holding of
discrimination and the chief executive officer of the
unit of general local government that has not com-
plied with section 6711 (a) or (b); or
‘‘(2) between the Secretary and the chief execu-
tive officer.
‘‘(b) CONTENTS
OF AGREEMENTS.—A compliance
agreement—
‘‘(1) shall state the conditions the unit of gen-
eral local government has agreed to comply with
that would satisfy the obligations of the government
under sections 6711 (a) and (b);
‘‘(2) shall cover each matter that has been
found not to comply, or would not comply, with sec-
tion 6711 (a) or (b); and
‘‘(3) may be a series of agreements that dispose
of those matters.
‘‘(c) AVAILABILITY OF AGREEMENTS TO PARTIES.—
The Secretary shall submit a copy of a compliance agree-
ment to each person who filed a complaint referred to in
section 6716(b), or, if an agreement under subsection
(a)(1), each person who filed a complaint with a govern-
mental authority, about a failure to comply with section
6711 (a) or (b). The Secretary shall submit the copy by
the 15th day after an agreement is made. However, if the
Secretary approves an agreement under subsection (a)(1)
after the agreement is made, the Secretary may submit
the copy by the 15th day after approval of the agreement.
‘‘§ 6715. Enforcement by the Attorney General of pro-
hibitions on discrimination
‘‘The Attorney General may bring a civil action in
an appropriate district court of the United States against
a unit of general local government that the Attorney Gen-
eral has reason to believe has engaged or is engaging in
a pattern or practice in violation of section 6711 (a) or
(b). The court may grant—
‘‘(1) a temporary restraining order;
‘‘(2) an injunction; or
‘‘(3) an appropriate order to ensure enjoyment
of rights under section 6711 (a) or (b), including an
order suspending, terminating, or requiring repay-
ment of, payments under this chapter or placing ad-
ditional payments under this chapter in escrow
pending the outcome of the action.
‘‘§ 6716. Civil action by a person adversely affected
‘‘(a) AUTHORITY FOR PRIVATE SUITS IN FEDERAL
OR STATE COURT.—If a unit of general local government,
or an officer or employee of a unit of general local govern-
ment acting in an official capacity, engages in a practice
prohibited by this chapter, a person adversely affected by
the practice may bring a civil action in an appropriate dis-
trict court of the United States or a State court of general
jurisdiction. Before bringing an action under this section,
the person must exhaust administrative remedies under
subsection (b).
‘‘(b) ADMINISTRATIVE REMEDIES REQUIRED TO BE
EXHAUSTED.—A person adversely affected shall file an
administrative complaint with the Secretary or the head
of another agency of the United States Government or the
State agency with which the Secretary has an agreement
under section 6711(d). Administrative remedies are
deemed to be exhausted by the person after the 90th day
after the complaint was filed if the Secretary, the head
of the Government agency, or the State agency—
‘‘(1) issues a decision that the government has
not failed to comply with this chapter; or
‘‘(2) does not issue a decision on the complaint.
‘‘(c) AUTHORITY OF COURT.—In an action under this
section, the court—
‘‘(1) may grant—
‘‘(A) a temporary restraining order;
‘‘(B) an injunction; or
‘‘(C) another order, including suspension,
termination, or repayment of, payments under
this chapter or placement of additional pay-
ments under this chapter in escrow pending the
outcome of the action; and
‘‘(2) to enforce compliance with section 6711
(a) or (b), may allow a prevailing party (except the
United States Government) a reasonable attorney’s
fee.
‘‘(d) INTERVENTION BY ATTORNEY GENERAL.—In
an action under this section to enforce compliance with
section 6711 (a) or (b), the Attorney General may inter-
vene in the action if the Attorney General certifies that
the action is of general public importance. The United
States Government is entitled to the same relief as if the
Government had brought the action and is liable for the
same fees and costs as a private person.
‘‘§ 6717. Judicial review
‘‘(a) APPEALS IN FEDERAL COURT OF APPEALS.—
A unit of general local government which receives notice
from the Secretary about withholding payments under sec-
tion 
6703(c), 
suspending 
payments 
under 
section
6713(a)(1)(B), or terminating payments under section
6712(d)(2)(A), may apply for review of the action of the
Secretary by filing a petition for review with the court of
appeals of the United States for the circuit in which the
government is located. The petition shall be filed by the
60th day after the date the notice is received. The clerk
of the court shall immediately send a copy of the petition
to the Secretary and the Attorney General.
‘‘(b) FILING OF RECORD OF ADMINISTRATIVE PRO-
CEEDING.—The Secretary shall file with the court a
record of the proceeding on which the Secretary based the
action. The court may consider only objections to the ac-
tion of the Secretary that were presented before the Sec-
retary.
‘‘(c) COURT ACTION.—The court may affirm, change,
or set aside any part of the action of the Secretary. The
findings of fact by the Secretary are conclusive if sup-
ported by substantial evidence in the record. If a finding
is not supported by substantial evidence in the record, the
court may remand the case to the Secretary to take addi-
tional evidence. Upon such a remand, the Secretary may
make new or modified findings and shall certify additional
proceedings to the court.
‘‘(d) REVIEW ONLY BY SUPREME COURT.—A judg-
ment of a court under this section may be reviewed only
by the Supreme Court under section 1254 of title 28.
‘‘§ 6718. Audits, investigations, and reviews
‘‘(a) INDEPENDENT AUDIT.—(1) Except as provided
in this section, a unit of general local government that
receives a payment under this chapter shall have an inde-
pendent audit made of the financial statements of the gov-
ernment at least as often as is required by paragraph (2)
to determine compliance with this chapter. The audit shall
be carried out under generally accepted government audit-
ing standards issued by the Comptroller General of the
United States.
‘‘(2) Paragraph (1) does not apply to a unit of gen-
eral local government for a fiscal year in which the govern-
ment receives less than $25,000 under this chapter. A unit
of general local government which receives at least
$25,000 but not more than $100,000 under this chapter
for a fiscal year shall have an audit made in accordance
with paragraph (1) at least once every 3 years. A govern-
ment which receives more than $100,000 under this chap-
ter for a fiscal year shall have an audit made in accord-
ance with paragraph (1) for such fiscal year, except that,
if the government operates on a biennial fiscal period, such
audit may be made biennially but shall cover the financial
statement or statements for, and compliance with the re-
quirements of the chapter during, both years within such
period.
‘‘(3) An audit of financial statements of a unit of gen-
eral local government carried out under another law of the
United States for a fiscal year is deemed to be in compli-
ance with paragraph (1) for that year if the audit substan-
tially complies with the requirements of paragraph (1).
‘‘(b) WAIVER BY LOCAL GOVERNMENT.—A unit of
general local government may waive application of sub-
section (a)(1) if—
‘‘(1) the financial statements of the government
are audited by independent auditors under State or
local law at least as often as would be required by
subsection (a)(2);
‘‘(2) the government certifies that the audit is
carried out under generally accepted auditing stand-
ards issued by the Comptroller General of the Unit-
ed States;
‘‘(3) the auditing provisions of the State or
local law are applicable to the payment period to
which the waiver applies; and
‘‘(4) the government submits to the Secretary a
brief description of the auditing standards used
under the relevant State or local law and specifica-
tion of the payment period to which the waiver ap-
plies.
‘‘(c) WAIVER BY SECRETARY.—Under regulations of
the Secretary, the Secretary may waive any requirement
under subsection (a)(1) or (b) for a unit of general local
government for a fiscal year if the Secretary decides that
the financial statements of the government for the year—
‘‘(1) cannot be audited, and the government
shows substantial progress in making the statements
auditable; or
‘‘(2) have been audited by a State agency that
does not follow generally accepted auditing stand-
ards issued by the Comptroller General of the Unit-
ed States or that is not independent, and the State
agency shows progress in meeting those auditing
standards or in becoming independent.
‘‘(d) SERIES OF AUDITS.—A series of audits carried
out over a period of not more than 3 years covering the
total amount in the financial accounts of a unit of general
local government is deemed to be a single audit under sub-
sections (a)(1) and (b) of this section.
‘‘(e) AUDIT OPINION.—An opinion of an audit car-
ried out under this section shall be provided to the Sec-
retary in the form and at times required by the Secretary.
No later than 30 days following the completion of the
audit, the unit of general local government shall make the
audit report available for public inspection.
‘‘(f) INVESTIGATIONS BY SECRETARY.—(1) The Sec-
retary shall maintain regulations providing reasonable and
specific time limits for the Secretary to—
‘‘(A) carry out an investigation and make a
finding after receiving a complaint referred to in sec-
tion 6716(b), a determination by a State or local ad-
ministrative agency, or other information about a
possible violation of this chapter;
‘‘(B) carry out audits and reviews (including in-
vestigations of allegations) about possible violations
of this chapter; and
‘‘(C) advise a complainant of the status of an
audit, investigation, or review of an allegation by the
complainant of a violation of section 6711 (a) or (b)
or other provision of this chapter.
‘‘(2) The maximum time limit under paragraph
(1)(A) is 90 days.
‘‘(g) REVIEWS BY COMPTROLLER GENERAL.—The
Comptroller General of the United States shall carry out
reviews of the activities of the Secretary, State govern-
ments, and units of general local government necessary
for the Congress to evaluate compliance and operations
under this chapter.
‘‘§ 6719. Reports
‘‘(a) REPORTS BY SECRETARY TO CONGRESS.—Be-
fore June 2 of each year, the Secretary personally shall
report to the Congress on—
‘‘(1) the status and operation of the Local Gov-
ernment Fiscal Assistance Fund during the prior fis-
cal year; and
‘‘(2) the administration of this chapter, includ-
ing a complete and detailed analysis of—
‘‘(A) actions taken to comply with sections
6711 through 6715, including a description of
the kind and extent of noncompliance and the
status of pending complaints;
‘‘(B) the extent to which units of general
local government receiving payments under this
chapter have complied with sections 6702 and
6718(a), (b), and (d), including a description of
the kind and extent of noncompliance and ac-
tions taken to ensure the independence of au-
dits conducted under section 6718(a), (b), and
(d);
‘‘(C) the way in which payments under this
chapter have been distributed in the jurisdic-
tions receiving payments; and
‘‘(D) significant problems in carrying out
this chapter and recommendations for legisla-
tion to remedy the problems.
‘‘(b) REPORTS BY UNITS OF GENERAL LOCAL GOV-
ERNMENT TO SECRETARY.—(1) At the end of each fiscal
year, each unit of general local government which received
a payment under this chapter for the fiscal year shall sub-
mit a report to the Secretary. The report shall be submit-
ted in the form and at a time prescribed by the Secretary
and shall be available to the public for inspection. The re-
port shall state—
‘‘(A) the amounts and purposes for which the
payment has been appropriated, expended, or obli-
gated in the fiscal year;
‘‘(B) the relationship of the payment to the rel-
evant functional items in the budget of the govern-
ment; and
‘‘(C) the differences between the actual and
proposed use of the payment.
‘‘(2) The Secretary shall provide a copy of a report
submitted under paragraph (1) by a unit of general local
government to the chief executive officer of the State in
which the government is located. The Secretary shall pro-
vide the report in the manner and form prescribed by the
Secretary.
‘‘(c) REGULATIONS.—The Secretary shall prescribe
regulations for applying this section to units of general
local government that do not adopt budgets.
‘‘§ 6720. Definitions and application
‘‘(a) DEFINITIONS.—In this chapter—
‘‘(1) ‘unit of general local government’ means—
‘‘(A) a county, township, city, or political
subdivision of a county, township, or city, that
is a unit of general local government as deter-
mined by the Secretary of Commerce for gen-
eral statistical purposes; and
‘‘(B) the District of Columbia and the rec-
ognized governing body of an Indian tribe or
Alaskan Native village that carries out substan-
tial governmental duties and powers;
‘‘(2) ‘payment period’ means each one-year pe-
riod beginning on October 1 of 1992 and 1993;
‘‘(3) ‘State and local taxes’ means taxes im-
posed by a State government or unit of general local
government or other political subdivision of a State
government for public purposes (except employee
and employer assessments and contributions to fi-
nance retirement and social insurance systems and
other special assessments for capital outlay) as de-
termined by the Secretary of Commerce for general
statistical purposes;
‘‘(4) ‘State’ means any of the several States
and the District of Columbia;
‘‘(5) ‘income’ means the total money income re-
ceived from all sources as determined by the Sec-
retary of Commerce for general statistical purposes;
‘‘(6) ‘per capita income’ means—
‘‘(A) in the case of the United States, the
income of the United States divided by the pop-
ulation of the United States;
‘‘(B) in the case of a State, the income of
that State, divided by the population of that
State; and
‘‘(C) in the case of a unit of general local
government, the income of that unit of general
local government divided by the population of
the unit of general local government;
‘‘(7) ‘finding of discrimination’ means a deci-
sion by the Secretary about a complaint described in
section 6716(b), a decision by a State or local ad-
ministrative agency, or other information (under
regulations prescribed by the Secretary) that it is
more likely than not that a unit of general local gov-
ernment has not complied with section 6711 (a) or
(b);
‘‘(8) ‘holding of discrimination’ means a holding
by a United States court, a State court, or an ad-
ministrative law judge appointed under section 3105
of title 5, that a unit of general local government ex-
pending amounts received under this chapter has—
‘‘(A) excluded a person in the United
States from participating in, denied the person
the benefits of, or subjected the person to dis-
crimination under, a program or activity be-
cause of race, color, national origin, or sex; or
‘‘(B) violated a prohibition against dis-
crimination described in section 6711(b); and
‘‘(9) ‘public safety’ includes—
‘‘(A) crime and substance abuse prevention
activities;
‘‘(B) the establishment of neighborhood
satellite police precincts for the purpose of en-
hancing community-based policing; and
‘‘(10) ‘Secretary’ means the Secretary of Hous-
ing and Urban Development.
‘‘(b) TREATMENT OF SUBSUMED AREAS.—If the en-
tire geographic area of a unit of general local government
is located in a larger entity, the unit of general local gov-
ernment is deemed to be located in the larger entity. If
only part of the geographic area of a unit is located in
a larger entity, each part is deemed to be located in the
larger entity and to be a separate unit of general local
government in determining allocations under this chapter.
Except as provided in regulations prescribed by the Sec-
retary, the Secretary shall make all data computations
based on the ratio of the estimated population of the part
to the population of the entire unit of general local govern-
ment.
‘‘(c) BOUNDARY AND OTHER CHANGES.—If a bound-
ary line change, a State statutory or constitutional change,
annexation, a governmental reorganization, or other cir-
cumstance results in the application of sections 6704
through 6708 in a way that does not carry out the pur-
poses of sections 6701 through 6708, the Secretary shall
apply sections 6701 through 6708 under regulations of the
Secretary in a way that is consistent with those pur-
poses.’’.
(b) DEFICIT NEUTRALITY.—Any appropriation to
carry out the amendment made by this Act to title 31,
United States Code, for fiscal year 1993 or 1994 shall
be offset by cuts elsewhere in appropriations for that fiscal
year.
SEC. 4. CLERICAL AMENDMENT.
The table of chapters at the beginning of subtitle V
of title 31, United States Code, is amended by adding at
after the item relating to chapter 65 the following:
‘‘67. Federal Payments ..................................................................... 6701’’.
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