amount equal to 110 percent of any amount ex-
pended out of such trust fund in violation of this 
paragraph, unless such amount is promptly repaid to 
such trust fund (or the violation is otherwise cor-
rected) after notice and opportunity for corrective 
action; 
(4) it will provide for the expenditure of 
amounts received under title I only in accordance 
with the laws and procedures applicable to the ex-
penditure of its own revenues; 
(5) it will— 
(A) use fiscal, accounting, and audit proce-
dures which conform to guidelines established 
therefor by the Secretary (after consultation 
with the Comptroller General of the United 
States), 
(B) provide to the Secretary (and to the 
Comptroller General of the United States), on 
reasonable notice, access to, and the right to ex-
amine, such books, documents, papers, or 
records as the Secretary may reasonably require 
for purposes of reviewing compliance with this 
Act (or, in the case of the Comptroller General, 
as the Comptroller General may reasonably re-
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quire for purposes of reviewing compliance and 
operations under subsection (c)(2)), and 
(C) make such annual and interim reports 
(other than reports required by section 201) to 
the Secretary as he may reasonably require; 
(6) all laborers and mechanics employed by con-
tractors or subcontractors in the performance of 
work on any construction project, 25 percent or 
more of the costs of which project are paid out of 
its trust fund established under paragraph (1), will 
be paid wages at rates not less than those prevailing 
on similar construction in the locality as determined 
by the Secretary of Labor in accordance with sub-
chapter IV of chapter 31 of title 40, United States 
Code (commonly referred to as the ‘‘Davis-Bacon 
Act’’); 
(7) individuals employed by it whose wages are 
paid in whole or in part out of its trust fund estab-
lished under paragraph (1) will be paid wages which 
are not lower than the prevailing rates of pay for 
persons employed in similar public occupations by 
the same employer; and 
(8) in the case of a unit of local government as 
defined in the second sentence of section 106(d)(1) 
(relating to governments of Indian tribes and Alas-
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kan native villages), it will expend funds received by 
it under title I for the benefit of members of the 
tribe or village residing in the county area from the 
allocation of which funds are allocated to it under 
section 106(b)(4). 
Paragraph (7) shall apply with respect to employees in 
any category only if 25 percent or more of the wages of 
all employees of the State government or unit of local gov-
ernment in such category are paid from the trust fund 
established by it under paragraph (1). 
(b) WITHHOLDING OF PAYMENTS.—If the Secretary 
determines that a State government or unit of local gov-
ernment has failed to comply substantially with any provi-
sion of subsection (a) or any regulations prescribed there-
under, after giving reasonable notice and opportunity for 
a hearing to the Governor of the State or the chief execu-
tive officer of the unit of local government, he shall notify 
the State government or unit of local government that if 
it fails to take corrective action within 60 days from the 
date of receipt of such notification further payments to 
it will be withheld for the remainder of the entitlement 
period and for any subsequent entitlement period until 
such time as the Secretary is satisfied that appropriate 
corrective action has been taken and that there will no 
longer be any failure to comply. Until he is satisfied, the 
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Secretary shall make no further payments of such 
amounts. 
(c) ACCOUNTING, AUDITING, AND EVALUATION.— 
(1) IN GENERAL.—The Secretary shall provide 
for such accounting and auditing procedures, evalua-
tions, and reviews as may be necessary to insure 
that the expenditures of funds received under title I 
by State governments and units of local government 
comply fully with the requirements of this Act. The 
Secretary is authorized to accept an audit by a State 
of such expenditures of a State government or unit 
of local government if he determines that such audit 
and the audit procedures of that State are suffi-
ciently reliable to enable him to carry out his duties 
under this Act. 
(2) COMPTROLLER
GENERAL
SHALL
REVIEW 
COMPLIANCE.—The Comptroller General of the 
United States shall make such reviews of the work 
as done by the Secretary, the State governments, 
and the units of local government as may be nec-
essary for the Congress to evaluate compliance and 
operations under this Act. 
SEC. 203. DEFINITIONS. 
(a) SECRETARY.—For purposes of this Act, the term 
‘‘Secretary’’ means the Secretary of the Treasury or his 
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delegate. The term ‘‘Secretary of the Treasury’’ means the 
Secretary of the Treasury personally, not including any 
delegate. 
(b) ENTITLEMENT PERIOD.—For purposes of this 
Act, the term ‘‘entitlement period’’ means each of the fol-
lowing: 
(1) The period beginning on the date of the en-
actment of this Act and ending September 30, 2009. 
(2) Fiscal year 2010. 
(3) Fiscal year 2011. 
Æ 
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