Fiscal Assistance Amendments
PL 94-488 (H.R.13367), enacted 10/13/1976

PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2341 
Public Law 94-488 
94th Congress 
An Act 
To extend and amend the State and Local Fiscal Assistance Act of 1972, and for 
Oct. 13, 197t>_ 
other purposes. 
[H.R. 13367] 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assembled, 
State and Local 
SECTION,. SHORT TITLE. 
^^llZT:t 
This Act may be cited as the "State and Local Fiscal Assistance 1976. 
Amendments of 1976". 
3^ use 122I 
SEC. 2. AMENDMENT OF STATE AND LOCAL FISCAL ASSISTANCE ACT note. 
OF 1972. 
Except as otherwise expressly provided, whenever in this Act an 
amendment or repeal is expressed in terms of an amendment to, or 
repeal of, a section or other provision, the reference shall be con-
sidered to be made to a section or other provision of the State and 
Local Fiscal Assistance Act of 1972, as amended (31 U.S.C. 1221 
et seq.; 86 Stat. 919). 
SEC. 3. ELIMINATION OF EXPENDITURE CATEGORIES. 
(a) Section 103 (relating to requirement that local governments use Repeal, 
revenue sharing funds only for priority expenditures) is repealed. 31 USC 1222. 
(b) Section 123(a) (relating to assurances to the Secretary of the ^1 USC 1243. 
Treasury) is amended by striking out paragraph (3). 
SEC. 4. ELIMINATION OF PROHIBITION ON USE OF FUNDS FOR 
MATCHING. 
(a) Section 104 (relating to prohibition on use of revenue sharing Repeal, 
funds as matching funds) is repealed. 
31 USC 1223. 
(b) Section 143(a) (relating to judicial review of withholding of ^^ ^^^ 126^. 
payments) is amended by striking out "104(b) or". 
SEC. 5. EXTENSION OF PROGRAM AND FUNDING. 
(a) I N GENERAL.—Section 105 (relating to funding for revenue 31 USC 1224. 
sharing) is amended— 
(1) by inserting "or (c)" immediately after "as provided in 
subsection ( b ) " in subsection ( a ) ( 1 ) ; 
(2) by redesignating subsection (c) as subsection ( d ) ; 
(3) by inserting immediately after subsection (b) the follow-
ing new subsection: 
"(c) 
AUTHORIZATION or APPROPRIATIONS F
O
R ENTITLEMENTS.— 
"(1) I N GENERAL.—In the case of any entitlement period 
described in paragraph (3), there are authorized to be appro-
priated to the Trust Fund to pay the entitlements hereinafter 
provided for such entitlement period an amount equal to 
$6,650,000,000 times a fraction— 
' 
" (A) the numerator of which is the amount of the Federal 
individual income taxes collected in the last calendar year 
ending more than one year before the end of such entitlement 
period, and 
"(B) the denominator of which is the amount of the 
Federal individual income taxes collected in the calendar 
^ 
year 1975. 
90 STAT. 2342 
PUBLIC LAW 94-488—OCT. 13, 1976 
The amount determined under this paragraph is not to exceed 
$6,850,000,000. 
"(2) NONCONTIGUOUS STATES ADJUSTMENT AMOUNTS.—In the 
case of any entitlement period described in paragraph (3), there 
are authorized to be appropriated to the Trust Fund to pay the 
entitlements hereinafter provided for such entitlement period an 
amount equal to $4,780,000 times a fraction— 
" (A) the numerator of which is the amount of the Federal 
individual income taxes collected in the last calendar year 
• 
ending more than one year before the end of such entitlement 
period, and 
"(B) the denominator of which is the amount of the 
Federal individual income taxes collected in the calendar 
year 1975. 
The amount determined under this paragraph is not to exceed 
$4,923,759. 
"(3) 
ENTITLEMENT 
PERIODS.—The 
following 
entitlement 
periods are described in this paragraph: 
"(A) The entitlement period beginning January 1, 1977, 
and ending September 30, 1977; 
"(B) The entitlement period beginning October 1, 1977, 
and ending September 30,1978 ; 
"(C) The entitlement period beginning October 1, 1978, 
and ending September 30,1979; and 
"(D) The entitlement period beginning October 1, 1979, 
and ending September 30, 1980. 
"(4) SHORT ENTITLEMENT PERIOD.—In the case of an entitle-
ment period of 9 months which follows an entitlement period 
of 6 months— 
"(A) the amount determined under paragraph (1) for 
such 9-month period shall be reduced b^y one-half the amount 
appropriated for such 6-month period under subsection 
(b)(1), and 
"(B) the amount determined under paragraph (2) for 
such entitlement period shall be reduced by one-half the 
amount appropriated for such 6-month entitlement period 
under subsection (b)(2)." 
(4) by inserting "; AUTHORIZATIONS FOR ENTITLE-
MENTS" in the heading of such section immediately after 
"APPROPRIATIONS". 
(b) CONFORMING AMENDMENTS.— 
31 use 1225. 
(1) Subsection (a) of section 106 (relating to general rule for 
allocation among States) is amended to read as follows: 
"(a) I N GENERAL.—There shall be allocated an entitlement to each 
State— 
"(1) for each entitlement period beginning before December 31, 
31 use 1224. 
1976, out of amounts appropriated under section 105(b) (1) for 
that entitlement period, an amount which bears the same ratio to 
the amount appropriated under that section for that period as 
the amount allocable to that State under subsection (b) bears to 
the sum of the amounts allocable to all States under subsection 
(b); and 
"(2) for each entitlement period beginning on or after Janu-
Ante, p. 2341. 
ary 1, 1977, out of amounts authorized under section 105(c) (1) 
for that entitlement period, an amount which bears the same ratio 
to the amount authorized under that section for that period as the 
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2343 
amount allocable to that State under subsection (b) bears to the 
sum of the amounts allocable to all States under subsection (b).". 
(2) Paragraph (1) of section 106(b) (relating to general rule 31 USC 1225. 
for determining allocable amounts) is amended to read as follows: 
"(1) IN GENERAL.—For purposes of subsection (a), the amount 
allocable to a State under this subsection for any entitlement 
period shall be determined under paragraph (2), except that such 
amount shall be determined under paragraph (3) if— 
"(A) in the case of an entitlement period beginning before 
December 31, 1976, the amount allocable to such State under 
paragraph (3) is greater than the sum of the amounts alloca-
ble to such State under paragraph (2) and subsection (c); 
and 
"(B) in the case of an entitlement period beginning on or 
after January 1, 1977, the amount allocable to such State 
under paragraph (3) is greater than the amount allocable to 
such State under paragraph (2).". 
(3) Paragraph (1) of section 106(c) (general rule for non-
contiguous State adjustment) is amended to read as follows: 
"(1) I N GENERAL.—In addition to the amounts allocated to the 
States under subsection (a), there shall be allocated for each 
entitlement period an additional amount to any State in which 
civilian employees of the United States Government receive an 
allowance under section 5941 of title 5, United States Code— 
''(A) in the case of an entitlement period beginning before 
December 31, 1976, out of amounts appropriated under sec-
tion 105(b) (2), if the allocation of such State under subsec- 31 USC 1224. 
tion (b) is determined by the formula set forth in paragraph 
(2) of that subsection; and 
"(B) in the case of an entitlement period beginning on or 
after January 1, 1977, out of amounts authorized under sec-
tion 105(c) (2).". 
^ 
Ante, p. 23U. 
(4) Section 106(c)(2) (relating to amount of noncontiguous 31 USC 1225. 
State adjustments) is amended— 
(A) by striking out "subsection (b) (2)" and inserting in 
lieu thereof "subsection (b)", and 
(B) by inserting immediately after "section 105(b)(2) 31 USC 1224. 
for any entitlement period" the following: "beginning before 
December 31, 1976, or authorized under section 105(c)(2) 
for any entitlement period beginning on or after January 1, 
1977,". 
(5) Section 108(b) (6) (D) (i) (relating to entitlements less 31 USC 1227. 
than $200) is amended by inserting after "6 months" the follow-
ing : ", $150 for an entitlement period of 9 months". 
(6) Section 108(c)(1)(C) (relating to optional formula for 
allocation among local governments) is amended by striking out 
"December 31,1976," and inserting in lieu thereof "September 30, 
1980,". 
(7) Section 141(b) (relating to definition of "entitlement 31 USC 1261. 
period") is amended by inserting at the end thereof the following 
new paragraphs: 
"(6) The period beginning January 1, 1977, and ending Sep-
tember 30,1977. 
"(7) The one-year periods beginning October 1 of 1977, 1978, 
and 1979.". 
90 STAT. 2344 
PUBLIC LAW 94-488—OCT. 13, 1976 
SEC. 6. SPECIAL ENTITLEMENT RULES. 
(a) STATE MAINTENANCE OF TRANSFERS TO LOCAL GOVERNMENTS.— 
31 use 1226. 
(1) Paragraph (1) of section 107(b) (relating to general rule 
for State maintenance of transfers to local governments) is 
amended to read as follows: 
" (1) GENERAL RULE.— 
" ( A ) PRE-197 7 ENTITLEMENT PERIODS.—The entitlement of 
any State government for any entitlement period beginning 
on or after July 1, 1973, and before December 31, 1976, shall 
be reduced by the amount (if any) by which— 
"(i) the average of the aggregate amounts transferred 
by the State government (out of its own sources) during 
such period and the preceding entitlement period to all 
units of local government in such State, is less than, 
"(ii) the similar aggregate amount for the one-year 
period beginning July 1, 1971. 
" ( B ) POST- 19 7 e ENTITLEMENT PERIODS.—The entitlement of 
any State government for any entitlement period beginning 
on or after January 1, 1977, shall be reduced by the amount 
(if any) by which— 
"(i) one-half of the aggregate amounts transferred by 
the State government (out of its own sources) during 
the 24-month period ending on the last day of the last 
fiscal year of such State for Avhich the relevant data are 
availaljle (in accordance with regulations prescribed by 
the Secretary) on the first day of such entitlement period, 
to all units of local government in such State, is less than, 
"(ii) one-half of the similar aggregate amount for the 
24-month period ending on the day before the start of the 
24-month period described in clause (i). 
"(C) For purposes of subparagraphs (A) (i) and (B) (i), 
the amount of any reduction in the entitlement of a State 
government under this subsection for any entitlement period 
shall, for subsequent entitlement periods, be treated as an 
amount transferred by the State government (out of its own 
sources) during such period to units of local government in 
such State.". 
(2) Section 107(b)(2) 
(relating to adjustment where State 
assumes responsibility for category of expenditures) is amended— 
(A) by striking out "under paragraph ( 1 ) ( B ) " and in-
serting in lieu thereof "under paragraph ( l ) ( A ) ( i i ) or 
( l ) ( B ) ( i i ) " ; a n d 
(B) by striking out "the one-year period beginning July 1, 
1971," and inserting in lieu thereof "the period utilized for 
purposes of such paragraph". 
(3) Section 107(b) (3) (relating to adjustments in the case of 
new taxing powers) is amended by striking out "paragraph 
( 1 ) ( B ) " and inserting in lieu thereof "paragraph (1) (A) (ii) 
(in the case of an entitlement period beginning before Decem-
ber 31, 1976) or paragraph (1) (B) (ii) (in the case of an entitle-
ment period beginning on or after January 1, 1977)". 
(4) Section 107(b) (relating to State maintenance of support 
to local governments) is amended by redesignating paragraphs 
(6) and (7) as paragraphs (8) and (9), respectively, and by 
inserting after paragraph (5) the following new paragraphs: 
" (6) SPECIAL RULE FOR THE PERIOD BEGINNING JANUARY 1,1977.— 
In the case of the entitlement period beginning January 1, 1977, 
and ending September 30, 1977, the aggregate amounts taken into 
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2345 
account under clauses (i) and (ii) of paragraph (1) (B) shall be 
three-fourths of the amount which (but for this paragraph) would 
be taken into account. 
"(7) 
ADJUSTMENT 
WHERE 
FEDERAL 
GOVERNMENT 
ASSUMES 
RESPONSIBILITY FOR CATEGORY OF EXPENDITURES.—If, fop an entitle-
ment period beginning on or after January 1,1977, a State govern-
ment establishes to the satisfaction of the Secretary that during 
all or part of the period utilized for purposes of paragraph 
(1) (B) (i), the Federal Government has assumed responsibility 
for a category of expenditures for which such State government 
transferred amounts which (but for this paragraph) would be 
included in the aggregate amount taken into account under para-
graph (1) (B) (ii) for the period utilized for purposes of such 
paragraph, then (under regulations prescribed by the Secretary) 
the aggregate amount taken into account under 
paragraph 
(1) (B) (ii) shall be reduced to the extent that increased Federal 
Government spending in that State for such category of expendi-
tures has replaced corresponding amounts which such State gov-
ernment had transferred to units of local government during the 
period utilized for purposes of paragraph ( l ) ( B ) ( i i ) . " . 
(b) 
WAIVERS BY INDIAN TRIBES AND ALASKAN NATIVE VILLAGES.— 
(1) Paragraph (4) of section 108(b) (relating to Indian tribes 31 USC 1227. 
and Alaskan native villages) is amended by striking out the last 
sentence. 
(2) Paragraph (6) (D) of such section (relating to effect of 
waivers) is amended by adding at the end thereof the following: 
"If the entitlement of an Indian tribe or Alaskan native village is 
waived for any entitlement period by the governing body of that 
tribe or village, then the amount of such entitlement for such 
period shall (in lieu of being paid to such tribe or village) be 
added to, and shall become a part of, the entitlement for such 
period of the county government of the county area in which such 
tribe or village is located.''. 
(c) SEPARATE LAW ENFORCEMENT OFFICERS.— 
(1) GENERAL RULE.—Section 108 (relating to entitlements of 
local governments) is amended by adding at the end thereof the 
following new subsection: 
"(e) 
SEPARATE L A W ENFORCEMENT OFFICERS.— 
"(1) 
ENTITLEMENT OF SEPARATE LAW ENFORCEMENT OFFICERS.— 
The office of the separate law enforcement officer for any county 
Louisiana, 
area in the State of Louisiana, other than the parish of East 
Baton Rouge, shall be entitled to receive for each entitlement 
period beginning on or after January 1,1977, an amount equal to 
15 percent of the amount which would (but for the provisions of 
*
*
• 
this subsection) be the entitlement of the government of such 
county area. The office of the separate law enforcement officer for 
f 
the parish of East Baton Rouge shall be entitled to receive for 
each entitlement period beginning on or after January 1, 1977, 
an amount equal to 7.5 percent of the sum of the amounts which 
would (but for the provisions of this subsection) be the entitle-
ments of the governments of Baton Rouge, Baker, and Zachary^ 
Louisiana, for each such entitlement period. 
"(2) 
REDUCTION OF ENTITLEMENT OF COUNTY GOVERNMENT.— 
The entitlement of the government of a county area for an entitle-
ment period shall be reduced by an amount equal to one half of 
the entitlement for the separate law enforcement officer for such 
county area for such entitlement period. For the purpose of 
90 STAT. 2346 
PUBLIC LAW 94-488—OCT. 13, 1976 
applying this paragraph to the parish of East Baton Rouge, 
Louisiana, the entitlements of the governments of Baton Rouge, 
Baker, and Zachary, Louisiana, for each entitlement period shall 
each be reduced by an amount eq|ual to 3.75 percent of the amount 
which would (but for the provisions of this paragraph) be the 
entitlement of each such government. 
''(3) REDUCTION OF ENTITLEMENT OF STATE GOVERNMENT.—The 
entitlement of the State government of Louisiana for an entitle-
ment period shall be reduced by an amount equal to the sum of the 
reductions provided under paragraph (2) for governments of 
county areas in such State for such entitlement period. For pur-
poses of this paragraph— 
"(A) the reductions provided under paragraph (2) for the 
governments of Baton Rouge, Baker, and Zachary, Louisiana, 
shall be considered as reductions of entitlements of govern-
ments of county areas, and 
"(B) the entitlement of the parish of Orleans for an entitle-
ment period shall be considered to have been reduced by an 
amount equal to the additional amount provided for such 
parish for that entitlement period under paragraph (4). 
"(4) 
ENTITLEMENT or PARISH OF ORLEANS.—In the case of 
the 
parish of Orleans, Louisiana, paragraphs (1) and (2) shall not 
apply, and such parish shall be entitled to receive, for each entitle-
ment period beginning after December 31, 1976, an additional 
amount ecjual to 7.5 percent of the amount which would otherwise 
be the entitlement of such parish.". 
(2) CONFORMING AMENDMENTS.— 
31 use 1227. 
(A) Section 108(b) (7) (A) (relating to general rule for 
adjustment of entitlement) is amended by striking out "and 
any adjustment required under paragraph (6) (D) last." and 
inserting in lieu thereof "any adjustment required under 
paragraph (6) (D) next, and any adjustment required under 
Subsection (e) last.". 
(B) Section 108(d)(1) (defining "unit of local govern-
ment") is amended by adding at the end thereof the follow-
ing: "Such term also means (but only for purposes of 
subtitles B and C) the office of the separate law enforcement 
officer to which subsection (e) (1) applies.". 
31 use 1226. 
(C) Section 107 (relating to entitlements of State govern-
ments) is amended by adding at the end thereof the follow-
ing new subsection: 
"(c) 
CROSS REFERENCE.— 
"For reduction of State government entitlement because of provision 
Ante, p. 2345. 
for separate law enforcement officers, see section 108(6).". 
(d) 
CURRENCY OF DATA.— 
31 use 1228. 
(1) Section 109(a) (7) (relating to data used and uniformity 
of data^ is amended— 
(A) in subparagraph (A) by striking out "subparagraph 
( B ) " and inserting in lieu thereof "subparagraph (B) or 
(Cj",and 
(B) by adding at the end thereof the following new 
subparagraph: 
"(C) TAX COLLECTIONS.—Data with respect to tax collec-
tions for a period more recent than the most recent reporting 
year for an entitlement period (as defined in subsection (c) 
( 2 ) ( B ) ) shall not be used in the determination of entitle-
ments for such period.". 
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2347 
(2) Section 109(c)(2)(B) 
(defining "most recent reporting 
31 USC 1228,. 
year") is amended by striking out "made before the close of such 
period." and inserting in lieu thereof "made before the beginning 
of such period.". 
(e) LIMITATION ON ADJUSTMENT OF PAYMENTS.—Section 102 (relat- 
31 USC 1221, 
ing to payments to State and local governments) is amended— 
(1) by striking out "Except" and inserting in lieu thereof 
" ( a ) I N GENERAL.—Except"; and 
(2) adding at the end thereof the following new subsection: 
"(b) LIMITATIONS ON ADJUSTMENTS.—No adjustment shall be made 
to increase or decrease a payment made for any entitlement period 
beginning after December 31, 1976, to a State government or a unit 
of local government, unless a demand therefor shall have been made 
by such government or the Secretary within 1 year of the end of the 
entitlement period with respect to which the payment was made.". 
(f) 
RESERVES FOR ADJUSTMENTS.—Section 102 (relating to pay-
ments to State and local governments), as amended by subsection (e), 
is amended by adding at the end thereof the following subsection: 
"(c) RESERVES FOR ADJUSTMENTS.—The Secretary may reserve such 
percentage (not exceeding 0.5 percent) of the total entitlement pay-
ment for any entitlement period with respect to any State government 
and all units of local government within such State as he deems neces-
sary to insure that there will be sufficient funds available to pay 
adjustments due after the final allocation of funds among such 
governments.". 
(g) RECOVERY OF CERTAIN OVERPAYMENTS.—In the case of an adjust- 
31 USC 1221 
ment to decrease a payment made for an entitlement period ending note, 
before January 1, 1977, under title I of the State and Local Fiscal 
Assistance Act of 1972 to a unit of local government (as defined in 31 USC 1221. 
section 108(d) (1) of that Act), the amount of such adjustment shall 31 USC 1227. 
be withheld from the reserves for adjustments established by the Sec-
retary under section 102(c) of such Act for the State within which Supm. 
such units of local government are located. Amounts withheld under 
this subsection shall be covered into the State and Local Government 
Fiscal Assistance Trust Fund. 
SEC. 7. CITIZEN PARTICIPATION; REPORTS, ENFORCEMENTS. 
(a) CITIZENS PARTICIPATION.—Section 121 (relating to reports on 31 USC 1241. 
use of funds and publication of reports) is amended to read as 
followS(: 
'5 
«SEC. 121. REPORT ON USE OF FUNDS; PUBLICATION AND PUBLIC 
HEARINGS. 
"(a) REPORTS ON USE OF FUNDS.—Each State government and unit 
Report to 
of local government which receives funds under subtitle A shall, after 
Secretary of the 
the close of each fiscal year, submit a report to the Secretary (which 
Treasury, 
report shall be available to the public for inspection) setting forth the 
amounts and purposes for which funds received under subtitle A have 
been appropriated, spent, or obligated during such period and showing 
the relationship of those funds to the relevant functional items in the 
government's budget. Such report shall identify differences between 
the actual use of funds received and the proposed use of such funds. 
Such reports shall be in such form and detail and shall be submitted 
at such time as the Secretary may prescribe. 
"(b) 
PUBLIC HEARINGS REQUIRED.— 
"(1) HEARING ON PROPOSED USE.—Not less than 7 calendar days 
Notice, 
before its budget is presented to the governmental body respon-
sible for enacting the budget, each State government or unit of 
local government which expends funds received under subtitle A 
90 STAT. 234e 
PUBLIC LAW 94-488—OCT. 13, 1976 
in any fiscal period, the budget for which is to be enacted on or 
after January 1, 1977, shall, after adequate public notice, have 
at least one public hearing at which citizens shall have the oppor-
tunity to provide written and oral comment on the possible uses 
of such funds before the governmental authority responsible for 
presenting the proposed budget to such body. 
"(2) BUDGET HEARING.—Each State government or unit of local 
31 use 1221. 
government which expends fund received under subtitle A in any 
fiscal period, the budget for which is to be enacted on or after 
January 1,1977, shall have at least one public hearing on the pro-
posed use of such funds in relation to its entire budget. At such 
hearing, citizens shall have the opportunity to provide written 
and oral comment to the body responsible for enacting the budget, 
and to ask questions concerning the entire budget and the relation 
thereto of funds made available under subtitle A. Such hearing 
shall be at a place and time that permits and encourages public 
attendance and participation. 
" (3) WAIVER.—The provisions of paragraph (1) may be waived 
in whole or in part in accordance with regulations of the Secre-
tary if the cost of such a requirement would be unreasonably 
burdensome in relation to the entitlement of such State govern-
ment or unit of local government to funds made available under 
subtitle A. The provisions of paragraph (2) may be waived in 
whole or in part in accordance with regulations of the Secretary 
if the budget processes required under applicable State or local 
laws or charter provisions assure the opportunity for public 
attendance and participation contemplated by the provisions of 
this subsection and a portion of such process includes a hearing 
on the proposed use of funds made available under subtitle A in 
relation to its entire budget. 
"(c) 
NOTIFICATION AND PUBLICITY or 
PUBLIC HEARINGS; ACCESS 
TO BUDGET SUMMARY AND PROPOSED U S E or FUNDS.— 
"(1) I N GENERAL.—Each State government and unit of local 
government which expends funds received under subtitle A in any 
fiscal period, the budget for which is to be enacted on or after 
January 1,1977, shall— 
" (A) at least 10 days prior to the public hearing required by 
subsection (b) (2) — 
Publication. 
"(i) publish, in at least one newspaper of general cir-
culation, the proposed uses of funds made available 
under subtitle A together with a summary of its pro-
posed budget and a notice of the time and place of such 
public hearing; and 
Public inspection. 
" (ii) make available for inspection by the public at the 
principal office of such State government or unit of local 
government a statement of the proposed use of funds, 
together with a summary of its proposed budget; and 
"(B) within 30 days after adoption of its budget as pro-
vided for under State or local law— 
"(i) make a summary of the adopted budget, including 
the proposed use of funds made available under subtitle 
A, available for inspection by the public at the principal 
office of such State government or unit of local govern-
ment; and 
"(ii) publish in at least one newspaper of general 
circulation a notice of the availability for inspection of 
the information referred to in clause (i). 
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2349 
"(2) 
WAIVER.—The provisions of paragraph 
(1) may be 
waived, in whole or in part, with respect to publication of the 
proposed use of funds and the summaries, in accordance with 
regulations of the Secretary, where the cost of such publication 
would be unreasonably burdensome in relation to the entitlement 
of such State government or unit of local government to funds 
made available under subtitle A, or where such publication is 31 USC 1221. 
otherwise impractical or infeasible. In addition, the 10-da;y pro-
visions of paragraph (1) (A) may be modified to the maximum 
extent necessary to comply with applicable State and local law 
if the Secretary is satisfied that the citizens of such State or local 
government will receive adequate notification of the proposed 
use of funds consistent with the intent of this section. 
"(d) 
REPORT SUBMITTED TO THE GOVERNOR.—The Secretary shall 
furnish to the Governor of the State in which any unit of local govern-
ment which receives funds under subtitle A is located, a copy of each 
report filed with the Secretary as required under sul)section (a), in 
such manner and form as the Secretary may prescribe by regulation. 
"(e) BUDGETS.—The Secretary shall promulgate regulations for Regulations, 
the application of this section to circumstances under which the State 
government or unit of local government does not adopt a budget. 
"(f) REPORT or THE SECRETARY.—The Secretary shall include with Report to 
the report required under section 105(a) (2) a report to the Congress Congress, 
on the implementation and administration of this Act during the 31 USC 1224. 
preceding fiscal year. Such report shall include, but not be limited to, 
a comprehensive and detailed analysis of— 
"(1) the measures taken to comply with section 122, includ- Post, p. 2350. 
ing a description of the nature and extent of any noncompliance 
and the status of all pending complaints; 
"(2) the extent to which recipient jurisdictions have complied 
with section 123, including a description of the nature and extent 
31 USC 1243. 
of any noncompliance and of measures taken to ensure the 
independence of audits conducted pursuant to subsection (c) of 
such section; 
"(3) the manner in which funds distributed under subtitle A 
have been distributed in recipient jurisdictions; and 
"(4) any significant problems arising in the administration of 
the Act and the proposals to remedy such problems through 
appropriate legislation. 
" (g) PARTICIPATION BY SENIOR CITIZENS.—In conducting any hear-
ing required under this section, or under its own budget processes, a 
State or unit of local government shall endeavor to provide senior 
citizens and their organizations with an opportunity to be heard prior 
to the final allocation of any funds provided under the Act pursuant 
to such a hearing.". 
(b) ENFORCEMENT.—Subtitle B (relating to administrative provi-
sions) is amended by adding at the end thereof the following new 
sections: 
"SEC. 124. PRIVATE CIVIL ACTIONS. 
"(a) STANDING.—Whenever a State government or a unit of local 
31 USC 1244. 
government, or any officer or employee thereof acting in an official 
capacity, has engaged or is engaging in any act or practice prohibited 
by this Act, upon exhaustion of administrative remedies, a civil 
action may be instituted by the person aggrieved in an appropriate 
United States district court or in a State court of general jurisdiction. 
"(b) RELIEF.—The court may grant as relief to the plaintiff any 
temporary restraining order, preliminary or permanent injunction or 
89-194 O—78—pt. 2 
56 
90 STAT. 2350 
PUBLIC LAW 94-488—OCT. 13, 1976 
other order, including the suspension, termination, or repayment of 
funds, or placing any further payments under this title in escrow 
pending the outcome of the litigation. 
"(c) INTERVENTION BY ATTORNEY GENERAL.—In any action insti-
Infra. 
tuted under this section to enforce compliance with section 122(a), the 
Attorney General, or a specially designated assistant for or in the 
name of the United States, may intervene upon timely application 
if he certifies that the action is of general public importance. In such 
action the United States shall be entitled to the same relief as if it had 
instituted the action. 
"(d) EXHAUSTION OF ADMINISTRATIVE REMEDIES.—As used in this 
section, administrative remedies shall be deemed to be exhausted upon 
the exi)iration of 90 days after the date the administrative complaints 
were filed with the Secretary or with an Agency with which the 
Secretary has an agreement under section 122(h) if, within «uch 
period, the Secretary or such Agency— 
"(1) issues a determination that such Government under unit 
has not failed to comply with this Act; or 
"(2) fails to issue a determination on such complaint. 
"(e) ATTORNEY FEES.—In any action under this section to enforce 
section 122(a), the court, in its discretion, may allow to the prevail-
ing party, other than the United States, reasonable attorney fees, and 
th" TTrtited States shall be liable for fees and costs the same as a private 
person. 
"SEC. 125. INVESTIGATIONS AND COMPLIANCE REVIEWS. 
Regulations. 
"Bv March 31, 1977, the Secretary shall promulgate regulations 
31 use 1245. 
establishing— 
"(1) reasonable and specific time limits (in no event to exceed 
90 days) for the Secretary to conduct an investigation and make 
a 
finding 
after receiving a complaint (described in section 
Supra. 
124(d)), a determination by a ^tate or local administrative 
agency, or other information relating to the possible violation of 
the provisions of this Act; 
"(2) reasonable and specific time limits for the Secretary to 
conduct audits and reviews (including investigations of allega-
tions) relating to ])ossible violations of the provisions of this Act. 
The regulations promulgated pursuant to paragraphs (1) and (2) 
shall also establish reasonable and specific time limits for the Sec-
retary to advise any comnlainant of the status of his investigation, 
audit, or review of any allegation of violation of section 122(a) or 
any other provision of this Act.". 
31 use 1263. 
(c) JUDICIAL REVIEW.—Section 148(a) (relating to petitions for 
judicial review) is amended by strikinqr out "receives a notice of with-
holding of pavments under section 104(b) or 123(b)," and ing?rting 
in lieu thereof "receives a notice of withholding of payments under 
section 104(b) or 123(b) a determination under section 122(b) (3) (C) 
that payments be suspended, or a determination under section 122 
(b) (3) (D) that payments be terminated,". 
SEC. 8. NONDISCRIMINATION PROVISIONS. 
31 use 1242. 
(a) I N GENERAL.^Section 122 (relating to nondiscrimination pro-
visions) is amended to read as follows: 
"SEC. 122. NONDISCRIMINATION PROVISIONS. 
"(a) 
PROHIBITION.— 
"(1) I N GENERAL.—No person in the United States shall, on 
the ground of race, color, national origin, or sex, be excluded 
from participation in, be denied the benefits of, or be subjected to 
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2351 
discrimination inider any program or activity of a State govern-
ment or unit of local government, which government or unit 
receives funds made available under subtitle A. Any prohibition 
against, discrimination on the basis of age under the Age Dis-
crimination Act of 1975 or with respect to an otherwise qualified 
handicapped individual as provided in section 504 of the Reha-
bilitation Act of 1973 shall also apply to any such program or 
activity. Any prohibition against discrimination on the basis of 
religion, or any exemption from such prohibition, as provided in 
the Civil Rights Act of 1964 or title V I I I of the Act of April 11, 
1968. hereafter referred to as (^ivil Rights Act of 1968, shall also 
apply to any such program or activity. 
"(2) 
EXCEPTIONS.— 
''(A) FuxnixG.—^The provisions of paragraph (1) of this 
subsection shall not apply where any State government or 
unit of local government demonstrates, by clear and convinc-
ing evidence, that the program or activity with respect to 
which the allegation of discrimination has been made is not 
funded in whole or in part with funds made available under 
subtitle A. 
"(B) CoxsTHucTiox PROJECTS IX PROGRESS.—The pi'ovisious 
of paragraph (1), relating to discrimination on the basis 
of handicapped status, shall not apply wnth respect to con-
struction i)rojects connnenced prior to January 1,1977. 
"(b) 
DETERMIXATIOX BY THE SECRETARY.— 
"(1) XoTicE OF xoxcoMPLiAXCE.—Witliiu 10 days after the 
Secretary has received a holding described in subsection (c)(1) 
or has made a finding described in subsection (c) (4), with respect 
to a State government or a unit of local government, he shall send 
a notice of noncompliance to such gOAernment setting forth the 
basis of such holding or finding. 
"(2) 
PROCEDURE BEFORE SECRETARY; SUSPEXSIOX OF PAYMENT OF 
REVExuE siiARixG FUNDS.—AVithiii 30 days after a notice of non-
compliance has been sent to a State government or a unit of local 
government in accordance with paragraph (1), such government 
may informally present evidence to the Secretary regarding the 
issues of— 
" ( A ) (except in the case of a holding described in subsec-
tion (c) (1)) Avhether there has been exclusion, denial, or dis-
crimination on account of race, color, national orgin, or sex, 
or a violation of any prohibition against discrimination on 
the basis of age under the Age Discrimination Act of 1975, 
or with respect to an 'otherwise qualified handicapped indi-
vidual', as provided in section 504 of the Rehabilitation Act 
of 1973, or a violation of any prohibition against discrimina-
tion on the basis of religion as provided in the Civil Rights 
Act of 1964 or title V I I I of the Civil Rights Act of 1968, and 
"(B) whether the program or activity in connection with 
which such exclusion, denial, discrimination, or violation is 
charged has been funded in Avhole or in part with funds made 
available under subtitle A. 
Before the end of such 30-day period, unless a compliance agree-
ment is entered into with such government, the Secretary shall 
issue a determination as to whether such government failed to 
comply with subsection (a). If the Secretary determines that such 
government has failed to comply with subsection (a), the Secre-
tary shall suspend the payment of funds under subtitle A to such 
government unless such government within the 10 day period 
42 use 6101 
note. 
29 use 794. 
42 use 2000a 
note. 
42 use 3601. 
31 use 1221. 
Effective date. 
90 STAT. 2352 
PUBLIC LAW 94-488—OCT. 13, 1976 
following such determination enters into a compliance agreement 
or requests a hearing with respect to such determination. 
"(3) 
HEARINGS BEFORE ADMINISTRATIVE LAW JUDGE; SUSPENSION 
O
R TERMINATION OF PAYMENT OF REVENUE SHARING FUNDS. 
"(A) Hearings requested by a State government or a unit 
of local govermnent pursuant to paragraph (2) shall begin 
before an administrative law judge within 30 days after the 
Secretary receives the request for the hearing. 
"(B) Within 30 days after the beginning of the hearing 
provided under subparagraph (A), the administrative law 
judge conducting the hearing shall, on the record then before 
him, issue a preliminary finding (which shall be consistent 
with subsection (c) (2)) as to whether such government has 
failed to comply with subsection (a). If the administrative 
law judge issues a preliminary finding that such government 
is not likely to prevail, on the basis of the evidence presented, 
in demonstrating compliance with subsection (a), then the 
Secretary shall suspend the payment of funds under subtitle 
A to such government. No such preliminary finding shall be 
issued in any case where a determination has previously been 
issued under subparagraph (C). 
"(C) If, after the completion of such hearing, the adminis-
trative law judge issues a determination (consistently with 
subsection (c) (2)) that such government has failed to com-
ply with subsection (a), then, unless such government enters 
into a compliance agreement before the 31st day after such 
issuance, the Secretary, subject to the provisions of subpara-
graph (D), shall suspend the payment of funds under subtitle 
A to such government; if a suspension in accordance with 
subparagraph 
(B) is still in effect, then, subject to the 
provisions of subparagraph (D), that suspension is to be 
continued. 
"(D) In the event of a determination described in sub-
paragraph (C), the administrative law judge may, in his 
discretion, order the termination of payment of funds under 
subtitle A to such government or unit. 
" ( E ) If, after the completion of such hearing, the adminis-
trative law judge issues a determination (consistently with 
subsection (c) (2)) that there has not been a failure to com-
ply with subsection (a), and a suspension is in effect in 
accordance with subparagraph (B), such suspension shall be 
promptly discontinued. 
"(c) 
HOLDING BY COURT OR GOVERNMENTAL AGENCY; FINDING BY 
SECRETARY.— 
" (1) DESCRIPTION.—A holding is described in this paragraph if 
it is a holding by a Federal Court, a State Court, or a Federal 
administrative law judge, with respect to a State government or a 
unit of local government which expends funds received under sub-
31 use 1221. 
title A that such government has, in the case of a person in the 
United States, excluded such person from participation in, denied 
such person the benefits of, or subjected such person to discrimi-
nation under any program or activity on the ground of race, color, 
national origin, or sex, or violated any prohibition against dis-
crimination (A) on the basis of age under the Age Discrimina-
42 use 6101 
tion Act of 1975 or (B) with respect to an 'otherwise qualified 
note. 
handicapped individual', as provided in section 504 of the Reha-
29 use 794. 
bilitation Act of 1973 or (C) on the basis of religion as provided 
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2353 
in the Civil Rights Act of 1964 or title V I I I of the Civil Rights 42 USC 2000a 
Act of 1968, in connection with any such program or activity. 
Ao^ikr ^601 
"(2) EFFECT ON PROCEEDINGS OR HEARING.—If there has been a 
^^ ^^^ 
^°"^-
holding described in paragraph (1) with respect to a State gov-
ernment or a unit of local government, then, in the case of pro-
ceedings by the Secretary pursuant to subsection (b) (2) or a 
hearing pursuant to subsection (b) (3) with respect to such gov-
ernment, such proceedings or such hearing shall relate only to the 
question of whether the program or activity in which the exclu-
sion, denial, discrimination, or violation occurred is funded in 
whole or in part with funds made available under subtitle A. In 31 USC 1221. 
such proceedings or hearing, the holding described in paragraph 
(1), to the effect that there lias been exclusion, denial, or discrimi-
nation on account of race, color, national origin, or sex, or a viola-
tion of any prohibition against discrimination (A) on the basis 
of age effected by the Age Discrimination Act of 1975, (B) with 
42 USC 6101 
respect to an 'otherwise qualified handicapped individual', as pro- "'^t^-
vided in section 504 of the Reliabilitation Act of 1973, (C) on the 29 USC 794. 
basis of religion as provided in the Civil Rights Act of 1964 or 
title V I I I of the Civil Rights Act of 1968, shall be treated as con-
clusive. 
"(3) EFFECT OF REVERSAL.—If a holding described in paragraph 
(1) is reversed by an appellate tribunal, then proceedings under 
subsection (b) which are dependent upon sucii holding shall be 
discontinued; any suspension or termination of payments result-
ing from such proceedings shall also be discontinued. 
''(4) FINDING BY SECRETARY.—A finding is described in this 
paragraph if it is a finding by the Secretary with respect to a com-
plaint referred to in section 124(d), a determination by a State Ante, p. 2349. 
01- local administrative agency, or other information (pursuant to 
procedures pi-ovided in regulations prescribed by the Secretary) 
that it is more likely than not that a State government or unit of 
local government has failed to comply with subsection (a). 
"(d) COMPLIANCE AGREEMENT.—For purposes of this section and 
section 124, a compliance agreement is an agreement between— 
" (1) the governmental office or agency responsible for prosecut-
ing the claim or complaint which is the basis of the holding 
described in subsection (c) (1) and the chief executive officer of the 
biate government or the unit of local government that has failed 
to comply with subsection (a), if such agreement is approved by 
the Secretary, or 
" (2) the Secretary and such chief executive officer, setting forth 
the terms and conditions with which such government or unit 
has agreed to comply that would satisfy the obligations of such 
government under subsection (a). Such agreement shall cover all 
the matters which had been determined or would constitute fail-
ures to comply with subsection (a), and may consist of a series of 
agreements which, in the aggregate, dispose of all such matters. 
Within 15 days after the execution of such agreement (or, in the Copies, 
case of an agreement under paragraph (1), the approval of such 
agreement by the Secretary, if later), the Secretary shall send a 
copy of such agreement to each person who has filed a complaint 
referred to in section 124(d) with respect to such failure to com-
ply with subsection (a), or, in the case of an agreement under 
paragraph (1), to each person who has filed a complaint with the 
governmental office or agency (described in such paragraph) with 
respect to such failure to comply with subsection (a). 
" (e) RESUMPTION OF SUSPENDED PAYMENTS.—If payment to a State 
90 STAT. 2354 
PUBLIC LAW 94-488—OCT. 13, 1976 
government or a unit of local government of funds made available 
31 use 1221. 
under subtitle A has been suspended under subsection (b) (2) or 
(b) (3), payment of such funds shall be resumed only if— 
"(1) such government enters into a compliance agreement 
(but only at the times and under the circumstances set forth in 
such agreement, or, in the case of any agreement under subsection 
(d) (1), only at the times and under the circumstances set forth 
in the Secretary's approval of such agreement) ; 
"(2) such government complies fully with the holding of a 
Federal or State court, or Federal administrative law judge, if 
that holding covers all the matters raised by the Secretary in the 
notice pursuant to subsection (b) (1), or if such government is 
found to be in compliance with subsection (a) by such court or 
Federal administrative law judge; 
"(3) in the case of a hearing before an administrative law 
judge under subsection (b)(3), the judge determines that such 
government is in compliance with subsection ( a ) ; or 
"(4) the provisions of subsection (c) (3) (relating to reversal 
of holding of discrimination) require such suspension of payment 
to be discontinued. 
For purposes of this section, compliance by a government may include 
the satisfying of a requirement of the payment of restitution to per-
sons injured by the failure of such government to comply with 
subsection (a). 
"(f) 
RESUMPTION or TERMINATED PAYMENTS.—If payment to a 
State government or unit of local government of funds made available 
under subtitle A has been terminated under subsection ( b ) ( 3 ) ( D ) , 
payment of such funds shall be resumed only if the determination 
resulting in such termination is reversed by an appellate tribunal. 
Civil actions. 
"(g) AUTHORITY OF ATTORNEY GENERAL.—Whenever the Attorney 
General has reason to believe that a State government or a unit of 
local government has engaged or is engaging in a pattern or practice 
in violation of the provisions of this section, the Attorney General 
may bring a civil action in an appropriate United States district 
court. Such court may grant as relief any temporary restraining order, 
preliminary or permanent injunction, or other order, as necessary or 
appropriate to insure the full enjoyment of the rights described in this 
section, including the suspension, termination, or repayment of funds 
made available imder subtitle A, or placing any further payments 
under subtitle A in escrow pending the outcome of the litigation. 
" ( h ) 
AGREEMENTS 
BETWEEN 
AGENCIES.—The 
Secretary 
shall 
endeavor to enter into agreements with State agencies and with other 
Federal agencies authorizing such agencies to investigate noncom-
pliance with subsection (a). The agreements shall describe the coop-
erative efforts to be undertaken (including the sharing of civil rights 
enforcement personnel and resources) to secure compRance with this 
section, and shall provide for the immediate notification of the Secre-
tary of any actions instituted by such agencies against a State govern-
ment or a unit of local government alleging a violation of any Federal 
civil rights statute or regulations issued thereunder.". 
SEC. 9. ACCOUNTING AND AUDITING PROVISIONS. 
31 use 1243. 
Section 123(c) (relating to accounting, auditing, and evaluation) 
is amended— 
(1) by redesignating paragraph (2) as paragraph (9), and 
(2) by striking out paragraph (1) and inserting in lieu thereof 
the following new paragraphs : 
"(1) INDEPENDENT AUDITS.—Each State government and unit 
of local government which expects to receive funds under sub-
title A for any entitlement period beginning on or after Janu-
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2355 
ary 1, 1977 (other than a government to which an election under 
paragraph (2) applies with respect to such entitlement period), 
shall have an independent audit of its financial statements con-
ducted for the purpose of determining compliance with this title, 
in accordance with generally accepted auditing standards, not 
less often than once every 3 years. 
"(2) ELECTION.—Paragraph (1) shall not apply to any State 
or unit of local government whose financial statements are audited 
by independent auditors under State or local law not less often 
:;^ i i 
than every 3 years, if (A) such government makes an election 
under this paragraph that the provisions of paragraph (1) shall 
not apply, and (B) such government certifies that such audits 
under State or local law will be conducted in accordance with 
generally accepted auditing standards. Such election shall include 
a brief description of the auditing standards to be applied. Such 
election shall apply to audits of funds received under subtitle 
A for such entitlement periods as are specified in such election 31 USC 1221. 
and as to which such State or local law auditing provisions are 
applicable. 
"(3) SERIES or AUDITS.—If a series of audits conducted over a 
period not exceeding 3 fiscal years covers, in the aggregate, all 
of the funds of accounts in the financial activity of such a gov-
ernment, then such series of audits shall be treated as a single 
audit for purposes of paragraph (1) and paragraph (2). 
"(4) 
ENTITLEMENTS UNDER $25,000,— 
" ( A ) The requirements of paragraph (1) shall not apply 
to a State government or unit of local government for any 
fiscal period in which such government receives less than 
$25,000 of funds made available under subtitle A, unless sub-
paragraph (B) applies for such fiscal period. 
" ( B ) In the case of a fiscal period which is described in 
subparagraph (A), if State or local law requires an audit 
of such government's financial statements, then the conduct-
ing of such audit shall constitute compliance with the require-
ments of paragraph (1). 
"(5) WAIVER.—The Secretary may waive the requirements of 
paragraph (1) or paragraph (2), in whole or in part, with respect 
to any State government or unit of local government for any fiscal 
period as to which he finds (in accordance with regulations pre-
scribed by the Secretary) (A) that the financial accounts of such 
governments for such period are not auditable, and (B) that such 
government demonstrates substantial progress toward making 
such financial accounts auditable. 
"(6) 
COORDINATION WITH OTHER FEDERALLY REQUIRED AUDITS.— 
An audit of the financial statements of a State government or 
unit of local government for a fiscal period, conducted in accord-
ance with the provisions of any Federal law other than this title, 
shall be accepted as an audit which satisfies the requirements of 
paragraph (1) with respect to the fiscal period for which such 
A 
audit is conducted, if such audit substantially complies with the 
requirements for audits conducted under paragraph (1). 
"(7) AUDIT OPINIONS.—Any opinions rendered with respect to 
audits made pursuant to this subsection shall be provided to the 
Secretary, in such form and at such times as he may require. 
"(8) 
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 
90 STAT. 2356 
PUBLIC LAW 94-488—OCT. 13, 1976 
the units of local government as may be necessary for the Con-
gress to evaluate compliance and operations under this title.". 
SEC. 10. MISCELLANEOUS PROVISIONS. 
31 use 1243 
(a) BUDGET ACT.—In accordance with section 401(d)(2) of the 
note. 
Congressional Budget Act of 1974 (31 U.S.C. 1351(d) (2); 88 Stat. 
297, 318), subsections (a) and (b) of section 401 of such Act shall not 
apply to this Act. 
(b) DEFINITION or " U N I T OF LOCAL GOVERNMENT".—Section 108(d) 
31 use 1227. 
(1) (defining "unit of local government") is amended by striking out 
"municipality, township, or other unit of local government below the 
State which is a unit of general government" and inserting in lieu 
thereof "municipality, or township, which is a unit of general govern-
ment below the State". 
SEC. 11. STUDY OF REVENUE SHARING AND FEDERALISM. 
31 use 1261. 
Subtitle C (relating to general provisions) is amended by adding 
at the end thereof the following new section: 
"SEC. 145. STUDY OF REVENUE SHARING AND FEDERALISM. 
31 use 1265. 
"(a) 
STUDY.—The Advisory Commission on Intergovernmental 
Relations shall study and evaluate the American Federal fiscal system 
in terms of the allocation and coordination of public resources among 
Federal, State, and local governments including, but not limited to, 
a study and evaluation of—• 
"(1) the allocation and coordination of taxing and spending 
authorities between levels of government, including a comparison 
of other Federal Government systems; 
"(2) State and local governmental organization from both 
legal and operational viewpoints to determine how general local 
governments do and ought to relate to each other, to special 
districts, and to State governments in terms of service and financ-
ing responsibilities, as well as annexation and incorporation 
responsibilities; 
"(3) the efi^ectiveness of Federal Government stabilization 
policies on State and local areas and the effects of State and 
local fiscal decisions on aggregate economic activity; 
"(4) the legal and operational aspects of citizen participation 
in Federal, State, and local governmental fiscal decisions; 
"(5) forces likely to affect the nature of the American Federal 
system in the short-term and long-term future and possible 
adjustments to such system, if any, which may be desirable, in 
light of future developments. 
"(b) 
COOPERATION OF OTHER FEDERAL AGENCIES.— 
"(1) Each department, agency, and instrumentality of the 
Federal Government is authorized and directed to furnish to the 
Commission, upon request made by the Chairman, and to the 
extent permitted by law and within the limits of available funds, 
such data, reports, and other information as the Commission 
deems necessary to carry out its functions under this section. 
"(2) The head of each department or agency of the Federal 
Government is authorized to provide to the Commission such serv-
ices as the Commission requests on such basis, reimbursable and 
otherwise, as may be agreed between the department or agency 
and the Chairman of the Commission. All such requests shall be 
made by the Chairman of the Commission. 
Administrative 
"(3) The Administrator of General Services shall provide to 
support services. 
the Commission, on a reimbursable basis, such administrative sup-
port services as the Commission may request. 
PUBLIC LAW 94-488—OCT. 13, 1976 
90 STAT. 2357 
"(c) EEPORTS.—The Commission shall submit to the President and Reports to 
the Congress such interim reports as it deems advisable, and not later President and 
than three years after the day on which the first appropriation is made Congress. 
available under subsection (d), a final report containing a detailed 
statement of the findings and conclusions of the Commission, together 
with such recommendations for legislation as it deems advisable. 
" ( d ) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 
be appropriated to the Commission, effective with the fiscal year 
beginning October 1,1977, such sums as may be necessary to carry out 
the provisions of this section.". 
SEC. 12. PROHIBITION ON USE FOR LOBBYING PURPOSES. 
Section 123 (relating to miscellaneous provisions) is amended by 31 USC 1243. 
adding at the end thereof the following new subsection: 
"(e) PROHIBITION OF U S E FOR LOBBYING PURPOSES.—No State gov-
ernment or unit of local government may use any part of the funds it 
receives under subtitle A for the purpose of lobbying or other activities 31 USC 1221. 
intended to influence any legislation regarding the provisions of this 
Act. For the purpose of this subsection, dues paid to National or State 
associations shall be deemed not to have been paid from funds received 
under subtitle A.". 
SEC. 13. EFFECTIVE DATES. 
(a) Except as otherwise provided in this Act, the amendments made 31 USC 1222 
by this Act shall apply to entitlement periods beginning on or after 
"°*^-
January 1,1977. 
(b) The amendment made by section 11 takes effect on February 1, 31 USC 1265 
1977. 
note. 
Approved October 13, 1976. 
LEGISLATIVE HISTORY: 
HOUSE REPORTS: No. 94-1165, Part 1 and No. 94-1165, Part II (both from Comm. 
on Government Operations), No. 94-1165, Part 3 (Comm. on 
Appropriations) and No. 94-1720 (Comm. of Conference). 
SENATE REPORT No. 94-1207 (Comm. on Finance). 
CONGRESSIONAL RECORD: 
Vol. 122 (1976): June 10, considered and passed House. 
Sept. 13, 14, considered and passed Senate, amended. 
Sept. 30, House receded and concurred in Senate amendment 
with an amendment; Senate agreed to House amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS: 
VoL 12, No. 40 (1976): Sept. 30, Presidential statement. 
Vol. 12, No. 42 (1976): Oct. 13, Presidential statement.