<enum>I</enum><header>Allocation and Payment of Funds</header> <section id="H3973D0D5D809423B8721F288C6615B01" section-type="subsequent-section"><enum>101.</enum><header>Short title; table of contents</header> <subsection id="H977A8021DCDD4CFF943B87FE7EB01F01"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Local Fiscal Assistance Act of 2009</short-title></quote>.</text> </subsection><subsection id="HB506250AC5D34BFA92ADE8C9D6C70C17"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for this Act is as follows:</text> <toc container-level="legis-body-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H68C1CF70D4D443938E938525ED609615" level="title">Title I—Allocation and Payment of Funds</toc-entry> <toc-entry idref="H3973D0D5D809423B8721F288C6615B01" level="section">Sec. 101. Short title; table of contents.</toc-entry> <toc-entry idref="H0B08FF9BD00B43F99F28C32ECC01D591" level="section">Sec. 102. Payments to local governments.</toc-entry> <toc-entry idref="HF41A266F000348049D7C282CB6765CBC" level="section">Sec. 103. Use of funds by local governments for priority expenditures.</toc-entry> <toc-entry idref="H53B4DBE199AB47E08F4D154740326BCD" level="section">Sec. 104. Creation of trust fund; appropriations.</toc-entry> <toc-entry idref="H81C7F614F7914A51B4E389E3B7B3CDC3" level="section">Sec. 105. Allocation among States.</toc-entry> <toc-entry idref="HA5320BECD7C54891914638A81250EC8F" level="section">Sec. 106. Entitlements of local governments.</toc-entry> <toc-entry idref="HE1B15CAECB85438ABD03F85C061358BE" level="section">Sec. 107. Definitions and special rules for application of allocation formulas.</toc-entry> <toc-entry idref="H7C1F24F25A664D6696C21064C8169510" level="title">Title II—Administrative Provisions</toc-entry> <toc-entry idref="H59215985813C4B7785D7BF4B896BF500" level="section">Sec. 201. Reports on use of funds; publication.</toc-entry> <toc-entry idref="H9BE24F59BC0347B7BF7870B157032F00" level="section">Sec. 202. Miscellaneous provisions.</toc-entry> <toc-entry idref="HB13B4D4B7AEB4CD382B6958C7BDBA58B" level="section">Sec. 203. Definitions.</toc-entry> </toc> </subsection></section><section id="H0B08FF9BD00B43F99F28C32ECC01D591"><enum>102.</enum><header>Payments to local governments</header> <subsection id="H4025C2B3D2D64A41904C3E244097DE8F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this Act, the Secretary shall, for each entitlement period, pay out of the Trust Fund to each unit of local government a total amount equal to the entitlement of such unit determined under section 106 for such period.</text> </subsection><subsection id="H1735DD4A127B4A38ADC52C422FC605C3"><enum>(b)</enum><header>Installments</header><text>In the case of entitlement periods ending after the date of the enactment of this Act, such payments shall be made in installments, but not less often than once for each quarter, and, in the case of quarters ending after the date of the enactment of this Act, shall be paid not later than 5 days after the close of each quarter. Such payments for any entitlement period may be initially made on the basis of estimates. Proper adjustment shall be made in the amount of any payment to a unit of local government to the extent that the payments previously made to such government under this title were in excess of or less than the amounts required to be paid.</text> </subsection></section><section id="HF41A266F000348049D7C282CB6765CBC"><enum>103.</enum><header>Use of funds by local governments for priority expenditures</header> <subsection id="HBC418FCDD64B4A5BA9113A06FC8EC67E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Funds received by units of local government under this title may be used only for priority expenditures. For purposes of this Act, the term <term>priority expenditures</term> means only—</text> <paragraph id="H05FFD8F8FA5F443EB15CED479648FBA3"><enum>(1)</enum><text>ordinary and necessary maintenance and operating expenses for—</text> <subparagraph id="H0DF0E3F88A594B8DA0BF6194F918A0BA"><enum>(A)</enum><text>public safety (including law enforcement, fire protection, and building code enforcement);</text> </subparagraph><subparagraph id="HBCFB8A34F3FC49EBA56E891341703D6D"><enum>(B)</enum><text>environmental protection (including sewage disposal, sanitation, and pollution abatement);</text> </subparagraph><subparagraph id="H5DF31A4AAE0049E9A996BBC19508AF3B"><enum>(C)</enum><text>public transportation (including transit systems and streets and roads);</text> </subparagraph><subparagraph id="H5350123835F440B3B531C3BECBA527A3"><enum>(D)</enum><text>health;</text> </subparagraph><subparagraph id="H98D383A1C91A4F1286F0C7BB801396A7"><enum>(E)</enum><text>recreation;</text> </subparagraph><subparagraph id="HAD723C31AED2402CBD841619D80340B9"><enum>(F)</enum><text>libraries;</text> </subparagraph><subparagraph id="HA69039D9B5EA40E6BBF9EC2303246157"><enum>(G)</enum><text>social services for the poor or aged; and</text> </subparagraph><subparagraph id="H7545A462BD2A49DF8D9B72CB49AA1BB3"><enum>(H)</enum><text>financial administration; and</text> </subparagraph></paragraph><paragraph id="H37E5B5F75614471B998752C627BF4965"><enum>(2)</enum><text>ordinary and necessary capital expenditures authorized by law.</text> </paragraph></subsection><subsection id="H5D912D9F4C4645868655EF9D28F5EFDD"><enum>(b)</enum><header>Certificates by local governments</header><text>The Secretary is authorized to accept a certification by the chief executive officer of a unit of local government that the unit of local government has used the funds received by it under this title for an entitlement period only for priority expenditures, unless he determines that such certification is not sufficiently reliable to enable him to carry out his duties under this title.</text> </subsection></section><section id="H53B4DBE199AB47E08F4D154740326BCD"><enum>104.</enum><header>Creation of trust fund; appropriations</header> <subsection id="H51FB34B128144F4F8DE5DA8581B24AD5"><enum>(a)</enum><header>Trust Fund</header> <paragraph id="H100AD6CC552F4E9485EEEC0DD195E40B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is hereby established on the books of the Treasury of the United States a trust fund to be known as the <quote>Local Government Fiscal Assistance Trust Fund</quote> (referred to in this title as the <quote>Trust Fund</quote>). The Trust Fund shall remain available without fiscal year limitation and shall consist of such amounts as may be appropriated to it and deposited in it as provided in subsection (b). Except as provided in this Act, amounts in the Trust Fund may be used only for the payments to local governments provided by this title.</text> </paragraph><paragraph id="H4E4381C2A70B4D3FB4B44FBCB181BDAB"><enum>(2)</enum><header>Trustee</header><text>The Secretary of the Treasury shall be the trustee of the Trust Fund and shall report to the Congress not later than March 1 of each year on the operation and status of the Trust Fund during the preceding fiscal year.</text> </paragraph></subsection><subsection id="H9EB9FC12B19E4318BB596FA2903B08EC"><enum>(b)</enum><header>Appropriations</header> <paragraph id="HC0E3DCFEB8FA441F9D88B5F0C4610FE0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is appropriated to the Trust Fund, out of amounts in the general fund of the Treasury attributable to the collections of the Federal individual income taxes not otherwise appropriated—</text> <subparagraph id="H36D36D4F25DA4748AB0B5D2A147EA87F"><enum>(A)</enum><text display-inline="yes-display-inline">for the period beginning on the date of the enactment of this Act, and ending September 30, 2009, $30,000,000,000;</text> </subparagraph><subparagraph id="H1D4064F84BDC4669AA8E6273D9274EEB"><enum>(B)</enum><text>for fiscal year 2010, $30,000,000,000; and</text> </subparagraph><subparagraph id="H28A2145A7A574FB2B006242EF3634D59"><enum>(C)</enum><text>for fiscal year 2011, $30,000,000,000.</text> </subparagraph></paragraph><paragraph id="H4F0C61AAB4FF422A8054EEF1ACAAF543"><enum>(2)</enum><header>Deposits</header><text>Amounts appropriated by paragraph (1) for any fiscal year or other period shall be deposited in the Trust Fund on the later of (A) the first day of such year or period, or (B) the day after the date of enactment of this Act.</text> </paragraph></subsection><subsection id="H94E71EEC746B47E8A363C3781FE0B845"><enum>(c)</enum><header>Transfers from trust fund to general fund</header><text>The Secretary shall from time to time transfer from the Trust Fund to the general fund of the Treasury any moneys in the Trust Fund which he determines will not be needed to make payments to units of local government under this title.</text> </subsection></section><section id="H81C7F614F7914A51B4E389E3B7B3CDC3"><enum>105.</enum><header>Allocation among States</header> <subsection id="H34D8860B91CF49D8B9D6FF0D96780AD9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There shall be allocated to each State for each entitlement period, out of amounts appropriated under section 104(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).</text> </subsection><subsection id="HB2705D0E360C4B6E873829AB8E1E01B7"><enum>(b)</enum><header>Determination of allocable amount</header> <paragraph id="HF6A0A82D6925488881F1ED3B668BEFA2"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the amount allocable to a State under this subsection for any entitlement period shall be determined under paragraph (2).</text> </paragraph><paragraph id="HDB8C299AB1844DB5BE8DF4B541FA0B0A"><enum>(2)</enum><header>Three factor formula</header><text>For purposes of paragraph (1), the amount allocable to a State under this paragraph for any entitlement period is the amount which bears the same ratio to $20,000,000,000 as—</text> <subparagraph id="H2C31D9E571F747A4B754CEFE9D3DEBCB"><enum>(A)</enum><text display-inline="yes-display-inline">the population of that State, multiplied by the general tax effort factor of that State, multiplied by the relative income factor of that State, bears to</text> </subparagraph><subparagraph id="HFFBC76D404DF47B7988B0CB4AA779363"><enum>(B)</enum><text>the sum of the products determined under subparagraph (A) for all States.</text> </subparagraph></paragraph></subsection></section><section id="HA5320BECD7C54891914638A81250EC8F"><enum>106.</enum><header>Entitlements of local governments</header> <subsection id="H08630A7F2546445080D583A6A99C7355"><enum>(a)</enum><header>Allocation among county areas</header><text display-inline="yes-display-inline">The amount to be allocated to the units of local government within a State for any entitlement period shall be allocated among the county areas located in that State so that each county area will receive an amount which bears the same ratio to the total amount to be allocated to the units of local government within that State as—</text> <paragraph id="HEE0C1576138F44EC89ABD3B0F4E7EEB9"><enum>(1)</enum><text display-inline="yes-display-inline">the population of that county area, multiplied by the general tax effort factor of that county area, multiplied by the relative income factor of that county area, bears to</text> </paragraph><paragraph id="HDCADF64A74C148599A2F70D9E54D92C5"><enum>(2)</enum><text>the sum of the products determined under paragraph (1) for all county areas within that State.</text> </paragraph></subsection><subsection id="H2362BE2D57CA44AFBA72B2E745EB71D7"><enum>(b)</enum><header>Allocation to county governments, municipalities, townships, etc</header> <paragraph id="HCDA630EE2E7D4150AE64C819410A6522"><enum>(1)</enum><header>County governments</header><text display-inline="yes-display-inline">The county government shall be allocated that portion of the amount allocated to the county area for the entitlement period under subsection (a) which bears the same ratio to such amount as the adjusted taxes of the county government bear to the adjusted taxes of the county government and all other units of local government located in the county area.</text> </paragraph><paragraph id="H0D47043CDF5B4D6EBEEC432339262317"><enum>(2)</enum><header>Other units of local government</header><text>The amount remaining for allocation within a county area after the application of paragraph (1) shall be allocated among the units of local government (other than the county government and other than township governments) located in that county area so that each unit of local government will receive an amount which bears the same ratio to the total amount to be allocated to all such units as—</text> <subparagraph id="H9DC63139FC1441F584B15E2D80C667FA"><enum>(A)</enum><text>the population of that local government, multiplied by the general tax effort factor of that local government, multiplied by the relative income factor of that local government, bears to</text> </subparagraph><subparagraph id="H80F1A5F0F04A4586BCF9B477C2BD11BD"><enum>(B)</enum><text>the sum of the products determined under subparagraph (A) for all such units.</text> </subparagraph></paragraph><paragraph id="H08896BF35ECD43D78C898C2284FC178F"><enum>(3)</enum><header>Township governments</header><text>If the county area includes one or more township governments, then before applying paragraph (2)—</text> <subparagraph id="HE65CD6F7BFD34124927F6BF84140E387"><enum>(A)</enum><text>there shall be set aside for allocation under subparagraph (B) to such township governments that portion of the amount allocated to the county area for the entitlement period which bears the same ratio to such amount as the sum of the adjusted taxes of all such township governments bears to the aggregate adjusted taxes of the county government, such township governments, and all other units of local government located in the county area, and</text> </subparagraph><subparagraph id="H6975C26C17E3495C8922404E93A792CE"><enum>(B)</enum><text>that portion of each amount set aside under subparagraph (A) shall be allocated to each township government on the same basis as amounts are allocated to units of local government under paragraph (2).</text> </subparagraph><continuation-text continuation-text-level="paragraph">If this paragraph applies with respect to any county area for any entitlement period, the remaining portion allocated under paragraph (2) to the units of local government located in the county area (other than the county government and the township governments) shall be appropriately reduced to reflect the amounts set aside under subparagraph (A).</continuation-text></paragraph><paragraph id="H3755353945B64667B4F03C2F83696D49"><enum>(4)</enum><header>Indian tribes and alaskan native villages</header><text>If within a county area there is an Indian tribe or Alaskan native village which has a recognized governing body which performs substantial governmental functions, then before applying paragraph (1) there shall be allocated to such tribe or village a portion of the amount allocated to the county area for the entitlement period which bears the same ratio to such amount as the population of that tribe or village within that county area bears to the population of that county area. If this paragraph applies with respect to any county area for any entitlement period, the amount to be allocated under paragraph (1) shall be appropriately reduced to reflect the amount allocated under the preceding sentence. If the entitlement of any such tribe or village is waived for any entitlement period by the governing body of that tribe or village, then the provisions of this paragraph shall not apply with respect to the amount of such entitlement for such period.</text> </paragraph><paragraph id="HCF036C809FDB4A0AAA3F71ED9F504270"><enum>(5)</enum><header>Rule for small units of government</header><text>If the Secretary determines that in any county area the data available for any entitlement period are not adequate for the application of the formulas set forth in paragraphs (2) and (3)(B) with respect to units of local government (other than a county government) with a population below a number (not more than 500) prescribed for that county area by the Secretary, he may apply paragraph (2) or (3)(B) by allocating for such entitlement period to each such unit located in that county area an amount which bears the same ratio to the total amount to be allocated under paragraph (2) or (3)(B) for such entitlement period as the population of such unit bears to the population of all units of local government in that county area to which allocations are made under such paragraph. If the preceding sentence applies with respect to any county area, the total amount to be allocated under paragraph (2) or (3)(B) to other units of local government in that county area for the entitlement period shall be appropriately reduced to reflect the amounts allocated under the preceding sentence.</text> </paragraph><paragraph id="H5D458EC7CBBD4A808F86C8566CBACDD1"><enum>(6)</enum><header>Entitlement</header> <subparagraph id="H097209FF1A924371A682BBDF04487D00"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided in this paragraph, the entitlement of any unit of local government for any entitlement period shall be the amount allocated to such unit under this subsection (after taking into account any applicable modification under subsection (c)).</text> </subparagraph><subparagraph id="H8E2D9977C3034B789CBF8C9C63614C17"><enum>(B)</enum><header>Maximum and minimum per capita entitlement</header><text>Subject to the provisions of subparagraphs (C) and (D), the per capita amount allocated to any county area or any unit of local government (other than a county government) within a State under this section for any entitlement period shall not be less than 20 percent, nor more than 145 percent, of two-thirds of the amount allocated to the State under section 105, divided by the population of that State.</text> </subparagraph><subparagraph id="H8706D432F4BB45E78D91D699A45D64D9"><enum>(C)</enum><header>Limitation</header><text>The amount allocated to any unit of local government under this section for any entitlement period shall not exceed 50 percent of the sum of (i) such government’s adjusted taxes, and (ii) the intergovernmental transfers of revenue to such government (other than transfers to such government under this title).</text> </subparagraph><subparagraph id="H8AF56B86851C49869E1C00B1F9E645F2"><enum>(D)</enum><header>Entitlement less than $1,000, or governing body waives entitlement</header><text>If (but for this subparagraph) the entitlement of any unit of local government below the level of the county government—</text> <clause id="HFA49E36897ED4C46838D031622008787"><enum>(i)</enum><text>would be less than $1,000 for any entitlement period ($500 for an entitlement period of 6 months), or</text> </clause><clause id="HC4A05822FF934744B475E084C006B335"><enum>(ii)</enum><text>is waived for any entitlement period by the governing body of such unit,</text> </clause><continuation-text continuation-text-level="subparagraph">then the amount of such entitlement for such period shall (in lieu of being paid to such unit) 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 unit is located.</continuation-text></subparagraph></paragraph><paragraph id="H650DD7436D4B476D9BED24E2829C963D"><enum>(7)</enum><header>Adjustment of entitlement</header> <subparagraph id="H942CC039231B4E0AB9142493C9121ECA"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In adjusting the allocation of any county area or unit of local government, the Secretary shall make any adjustment required under paragraph (6)(B) first, any adjustment required under paragraph (6)(C) next, and any adjustment required under paragraph (6)(D) last.</text> </subparagraph><subparagraph id="H2052D43469E64EF5BBF33B2C9FC5B4C"><enum>(B)</enum><header>Adjustment for application of maximum or minimum per capita entitlement</header><text>The Secretary shall adjust the allocations made under this section to county areas or to units of local governments in any State in order to bring those allocations into compliance with the provisions of paragraph (6)(B). In making such adjustments he shall make any necessary adjustments with respect to county areas before making any necessary adjustments with respect to units of local government.</text> </subparagraph><subparagraph id="H6562F4DCB4D34E97A60401315C3282F3"><enum>(C)</enum><header>Adjustment for application of limitation</header><text display-inline="yes-display-inline">In any case in which the amount allocated to a unit of local government is reduced under paragraph (6)(C) by the Secretary, the amount of that reduction—</text> <clause id="HB389B5961D67492AAB417E28FA55A5EC"><enum>(i)</enum><text>in the case of a unit of local government (other than a county government), shall be added to and increase the allocation of the county government of the county area in which it is located, unless (on account of the application of paragraph (6)) that county government may not receive it, in which case the amount of the reduction shall be added to and increase the entitlement of the State government of the State in which that unit of local government is located; and</text> </clause><clause id="HA53EB5B7BD1841119049C3853169D642"><enum>(ii)</enum><text>in the case of a county government, shall be added to and increase the entitlement of the State government of the State in which it is located.</text> </clause></subparagraph></paragraph></subsection><subsection id="HE2CC4D5F54624C899F5FD2ED113C8BFE"><enum>(c)</enum><header>Special allocation rules</header> <paragraph id="H8F2DBB80FB7744EAA0285D8519D9BF26"><enum>(1)</enum><header>Optional formula</header><text display-inline="yes-display-inline">A State may by law provide for the allocation of funds among county areas, or among units of local government (other than county governments), on the basis of the population multiplied by the general tax effort factors of such areas or units of local government, on the basis of the population multiplied by the relative income factors of such areas or units of local government, or on the basis of a combination of those two factors. Any State which provides by law for such a variation in the allocation formula provided by subsection (a), or by paragraphs (2) and (3) of subsection (b), shall notify the Secretary of such law not later than 30 days before the beginning of the first entitlement period to which such law is to apply. Any such law shall—</text> <subparagraph id="HAD8A7259DDD34F30A8A55EC2843A2C"><enum>(A)</enum><text>provide for allocating 100 percent of the aggregate amount to be allocated under subsection (a), or under paragraphs (2) and (3) of subsection (b);</text> </subparagraph><subparagraph id="HB520C4B1E8AB48FC9FAB4379DE44A459"><enum>(B)</enum><text>apply uniformly throughout the State; and</text> </subparagraph><subparagraph id="HA4C5DBDDDF3B43639D2F409E81E51B7F"><enum>(C)</enum><text>apply during the period beginning on the first day of the first entitlement period to which it applies and ending on September 30, 2011.</text> </subparagraph></paragraph><paragraph id="H056328EC821C458D81C1A64C4000D769"><enum>(2)</enum><header>Certification</header><text>Paragraph (1) shall apply within a State only if the Secretary certifies that the State law complies with the requirements of such paragraph. The Secretary shall not certify any such law with respect to which he receives notification later than 30 days prior to the first entitlement period during which it is to apply.</text> </paragraph></subsection><subsection id="H65257A91DF884B4796EAB8C79CB7F9D"><enum>(d)</enum><header>Governmental definitions and related rules</header><text>For purposes of this Act—</text> <paragraph id="HD2EF3C18F105448F89C7F5D62BBCD13"><enum>(1)</enum><header>Units of local government</header><text display-inline="yes-display-inline">The term <term>unit of local government</term> means the government of a county, municipality, township, or other unit of government below the State which is a unit of general government (determined on the basis of the same principles as are used by the Bureau of the Census for general statistical purposes). Such term also means, except for purposes of paragraphs (1), (2), (3), (5), (6)(C), and (6)(D) of subsection (b), and, except for purposes of subsection (c), the recognized governing body of an Indian tribe or Alaskan native village which performs substantial governmental functions.</text> </paragraph><paragraph id="H650BE1817BC84058A6CEFE3B109528BF"><enum>(2)</enum><header>Certain areas treated as counties</header><text>In any State in which any unit of local government (other than a county government) constitutes the next level of government below the State government level, then, except as provided in the next sentence, the geographic area of such unit of government shall be treated as a county area (and such unit of government shall be treated as a county government) with respect to that portion of the State’s geographic area. In any State in which any county area is not governed by a county government but contains two or more units of local government, such units shall not be treated as county governments and the geographic areas of such units shall not be treated as county areas.</text> </paragraph><paragraph id="HA18078831D3441B3BE4B3001A10DCB3"><enum>(3)</enum><header>Townships</header><text>The term <term>township</term> includes equivalent subdivisions of government having different designations (such as <term>towns</term>), and shall be determined on the basis of the same principles as are used by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="HCC0CCF56823A45D1B1B76C00DFF59C14"><enum>(4)</enum><header>Units of local government located in larger entity</header><text>A unit of local government shall be treated as located in a larger entity if part or all of its geographic area is located in the larger entity.</text> </paragraph><paragraph id="H767246117F794DCB801DF6B8BBAB2604"><enum>(5)</enum><header>Only part of unit located in larger entity</header><text>If only part of a unit of local government is located in a larger entity, such part shall be treated for allocation purposes as a separate unit of local government, and all computations shall, except as otherwise provided in regulations, be made on the basis of the ratio which the estimated population of such part bears to the population of the entirety of such unit.</text> </paragraph><paragraph id="HBDA64C1EDB77415EB47BE763C58651DF"><enum>(6)</enum><header>Boundary changes, governmental reorganization, etc</header><text>If, by reason of boundary line changes, by reason of State statutory or constitutional changes, by reason of annexations or other governmental reorganizations, or by reason of other circumstances, the application of any provision of this section to units of local government does not carry out the purposes of this title, the application of such provision shall be made, under regulations prescribed by the Secretary, in a manner which is consistent with such purposes.</text> </paragraph></subsection></section><section id="HE1B15CAECB85438ABD03F85C061358BE"><enum>107.</enum><header>Definitions and special rules for application of allocation formulas</header> <subsection id="H5076EFF58ED3485DB69651198FE7635E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this title—</text> <paragraph id="H1D0DE163EB084D69937FE152B49F254F"><enum>(1)</enum><header>Population</header><text display-inline="yes-display-inline">Population shall be determined on the same basis as resident population is determined by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="H39BBAC7D2FA64D37AE9439A300C18B00"><enum>(2)</enum><header>Urbanized population</header><text>Urbanized population means the population of any area consisting of a central city or cities of 50,000 or more inhabitants (and of the surrounding closely settled territory for such city or cities) which is treated as an urbanized area by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="HD7576CD9908C499500B3A4D7CFC28879"><enum>(3)</enum><header>Income</header><text>Income means total money income received from all sources, as determined by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="HCFD5107A1C2C4E33A88DE53ED14874A1"><enum>(4)</enum><header>Personal income</header><text>Personal income means the income of individuals, as determined by the Department of Commerce for national income accounts purposes.</text> </paragraph><paragraph id="HC9461E17071C45A4BB4F3E8E90F08719"><enum>(5)</enum><header>Dates for determining allocations and entitlements</header><text>Except as provided in regulations, the determination of allocations and entitlements for any entitlement period shall be made as of the first day of the third month immediately preceding the beginning of such period.</text> </paragraph><paragraph id="HDC91BF1FE3984B55B9212742DF45A1B7"><enum>(6)</enum><header>Intergovernmental transfers</header><text>The intergovernmental transfers of revenue to any government are the amounts of revenue received by that government from other governments as a share in financing (or as reimbursement for) the performance of governmental functions, as determined by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="H2EAE233D6FA84A38A01271BDA0C9BA00"><enum>(7)</enum><header>Data used; uniformity of data</header> <subparagraph id="H16E24798911743F8B5158FADDD8C70D8"><enum>(A)</enum><header>General rule</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the data used shall be the most recently available data provided by the Bureau of the Census or the Department of Commerce, as the case may be.</text> </subparagraph><subparagraph id="H790CD92BFFE249BFBCDEBDA0A9418E7F"><enum>(B)</enum><header>Use of estimates, etc</header><text>Where the Secretary determines that the data referred to in subparagraph (A) are not current enough or are not comprehensive enough to provide for equitable allocations, he may use such additional data (including data based on estimates) as may be provided for in regulations.</text> </subparagraph></paragraph></subsection><subsection id="H60D989E45E3A4B5995A946F9A1DC47E8"><enum>(b)</enum><header>Income tax amount of states</header><text>For purposes of this title—</text> <paragraph id="H825A9C018E0F4BCC86409FD61B20E08E"><enum>(1)</enum><header>In general</header><text>The income tax amount of any State for any entitlement period is the income tax amount of such State as determined under paragraphs (2) and (3).</text> </paragraph><paragraph id="H4AABF424A3644EDE9600BFCD4FB1FEA9"><enum>(2)</enum><header>Income tax amount</header><text>The income tax amount of any State for any entitlement period is 15 percent of the net amount collected from the State individual income tax of such State during 2009 or (if later) during the last calendar year ending before the beginning of such entitlement period.</text> </paragraph><paragraph id="HB4330DEC79614F11AEA94FAB26556356"><enum>(3)</enum><header>Ceiling and floor</header><text>The income tax amount of any State for any entitlement period—</text> <subparagraph id="HD71377BF846142C39FE628D5CF459168"><enum>(A)</enum><text>shall not exceed 6 percent, and</text> </subparagraph><subparagraph id="HE7A30E90EDFB45EC0005A36633CAEBD9"><enum>(B)</enum><text>shall not be less than 1 percent,</text> </subparagraph><continuation-text continuation-text-level="paragraph">of the Federal individual income tax liabilities attributed to such State for taxable years ending during 2008 or (if later) during the last calendar year ending before the beginning of such entitlement period.</continuation-text></paragraph><paragraph id="H827E939B16084FAEBF5195681EC2A14F"><enum>(4)</enum><header>State individual income tax</header><text>The individual income tax of any State is the tax imposed upon the income of individuals by such State and described as a State income tax under section 164(a)(3) of the Internal Revenue Code of 1986.</text> </paragraph><paragraph id="HFF21C982CF684F12853EAA00B6CD7E58"><enum>(5)</enum><header>Federal individual income tax liabilities</header><text>Federal individual income tax liabilities attributed to any State for any period shall be determined on the same basis as such liabilities are determined for such period by the Internal Revenue Service for general statistical purposes.</text> </paragraph></subsection><subsection id="H9E376B86A0D447D1AEADF93929D6D17"><enum>(c)</enum><header>General tax effort of states</header> <paragraph id="H372A2CB32BC343E4B380B4FF6C85F3A5"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this title—</text> <subparagraph id="H14F7BD29A07A4443B64657E55C33BDC3"><enum>(A)</enum><header>General tax effort factor</header><text>The general tax effort factor of any State for any entitlement period is (i) the net amount collected from the State and local taxes of such State during the most recent reporting year, divided by (ii) the aggregate personal income (as defined in paragraph (4) of subsection (a)) attributed to such State for the same period.</text> </subparagraph><subparagraph id="H620A4915D7A74BCFAAB6548DCD00CC"><enum>(B)</enum><header>General tax effort amount</header><text>The general tax effort amount of any State for any entitlement period is the amount determined by multiplying—</text> <clause id="H020B5A94D869408C9D1C80C5C32B92E5"><enum>(i)</enum><text>the net amount collected from the State and local taxes of such State during the most recent reporting year, by</text> </clause><clause id="HA56DDAC7758E4473A898744FFAB0175C"><enum>(ii)</enum><text>the general tax effort factor of that State.</text> </clause></subparagraph></paragraph><paragraph id="HBFE956F1676C4993AEDA230000206422"><enum>(2)</enum><header>State and local taxes</header> <subparagraph id="H7C9D70C35D1F41B89DDD8E7BA2B6B633"><enum>(A)</enum><header>Taxes taken into account</header><text display-inline="yes-display-inline">The State and local taxes taken into account under paragraph (1) are the compulsory contributions exacted by the State (or by any unit of local government or other political subdivision of the State) for public purposes (other than employee and employer assessments and contributions to finance retirement and social insurance systems, and other than special assessments for capital outlay), as such contributions are determined by the Bureau of the Census for general statistical purposes.</text> </subparagraph><subparagraph id="H31DEFF9D1A0348EC8EFA206008068B3"><enum>(B)</enum><header>Most recent reporting year</header><text>The most recent reporting year with respect to any entitlement period consists of the years taken into account by the Bureau of the Census in its most recent general determination of State and local taxes made before the close of such period.</text> </subparagraph></paragraph></subsection><subsection id="H5A725C4CEC63416E9B00048CF8C518DC"><enum>(d)</enum><header>General tax effort factor of county area</header><text>For purposes of this title, the general tax effort factor of any county area for any entitlement period is—</text> <paragraph id="H2627E0981CCE41D5A1001E23E1A36D96"><enum>(1)</enum><text>the adjusted taxes of the county government plus the adjusted taxes of each other unit of local government within that county area, divided by</text> </paragraph><paragraph id="HF37E0413C73B466AA96EFB496B048411"><enum>(2)</enum><text>the aggregate income (as defined in paragraph (3) of subsection (a)) attributed to that county area.</text> </paragraph></subsection><subsection id="HDABFA2A95F14480EB09DCCE6A3082210"><enum>(e)</enum><header>General tax effort factor of unit of local government</header><text>For purposes of this title—</text> <paragraph id="H59146B38981D467597915388D1DBC2DD"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The general tax effort factor of any unit of local government for any entitlement period is—</text> <subparagraph id="H8175716AF9F347E893C7AFD077A7B2C0"><enum>(A)</enum><text>the adjusted taxes of that unit of local government, divided by</text> </subparagraph><subparagraph id="H329643855C474F99BC03F09EA65CC942"><enum>(B)</enum><text>the aggregate income (as defined in paragraph (3) of subsection (a)) attributed to that unit of local government.</text> </subparagraph></paragraph><paragraph id="HEF91366E1F034751B8004ED46DE2BEE5"><enum>(2)</enum><header>Adjusted taxes</header> <subparagraph id="HA9A7DD65C4B444A0AE00A79D811BE18"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The adjusted taxes of any unit of local government are—</text> <clause id="H58F9DB6241F2414FABCE92D0CE61FE12"><enum>(i)</enum><text>the compulsory contributions exacted by such government for public purposes (other than employee and employer assessments and contributions to finance retirement and social insurance systems, and other than special assessments for capital outlay), as such contributions are determined by the Bureau of the Census for general statistical purposes, and</text> </clause><clause id="H7DAD06AF06F9490FA8E6120F561F23D"><enum>(ii)</enum><text>adjusted (under regulations prescribed by the Secretary) by excluding an amount equal to that portion of such compulsory contributions which is properly allocable to expenses for education.</text> </clause></subparagraph><subparagraph id="H52861028AB654E96BB005E16CDE160C4"><enum>(B)</enum><header>Certain sales taxes collected by counties</header><text>In any case where—</text> <clause id="H936CAAAAA44A4A94AC6B635DB391D4E4"><enum>(i)</enum><text>a county government exacts sales taxes within the geographic area of a unit of local government and transfers part or all of such taxes to such unit without specifying the purposes for which such unit may spend the revenues, and</text> </clause><clause id="HA41AB4F6F944412400CDC8DF5207506C"><enum>(ii)</enum><text>the Governor of the State notifies the Secretary that the requirements of this subparagraph have been met with respect to such taxes,</text> </clause><continuation-text continuation-text-level="subparagraph">then the taxes so transferred shall be treated as the taxes of the unit of local government (and not the taxes of the county government).</continuation-text></subparagraph></paragraph></subsection><subsection id="HF337CD06C3F84250A95C62E891D2042D"><enum>(f)</enum><header>Relative income factor</header><text>For purposes of this title, the relative income factor is a fraction—</text> <paragraph id="H979921E203E646F9B269AEA050BBCF07"><enum>(1)</enum><text>in the case of a State, the numerator of which is the per capita income of the United States and the denominator of which is the per capita income of that State;</text> </paragraph><paragraph id="HB93DAE50C4144BEF81D9B5A04B01F08"><enum>(2)</enum><text>in the case of a county area, the numerator of which is the per capita income of the State in which it is located and the denominator of which is the per capita income of that county area; and</text> </paragraph><paragraph id="HD0DAA49A7E314F1084691C204EABA77D"><enum>(3)</enum><text>in the case of a unit of local government, the numerator of which is the per capita income of the county area in which it is located and the denominator of which is the per capita income of the geographic area of that unit of local government.</text> </paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, per capita income shall be determined on the basis of income as defined in paragraph (3) of subsection (a).</continuation-text></subsection></section>

<enum>I</enum><header>Allocation and Payment of Funds</header> <section id="H3973D0D5D809423B8721F288C6615B01" section-type="subsequent-section"><enum>101.</enum><header>Short title; table of contents</header> <subsection id="H977A8021DCDD4CFF943B87FE7EB01F01"><enum>(a)</enum><header>Short title</header><text display-inline="yes-display-inline">This Act may be cited as the <quote><short-title>Local Fiscal Assistance Act of 2009</short-title></quote>.</text> </subsection><subsection id="HB506250AC5D34BFA92ADE8C9D6C70C17"><enum>(b)</enum><header>Table of contents</header><text>The table of contents for this Act is as follows:</text> <toc container-level="legis-body-container" lowest-bolded-level="division-lowest-bolded" lowest-level="section" quoted-block="no-quoted-block" regeneration="yes-regeneration"> <toc-entry idref="H68C1CF70D4D443938E938525ED609615" level="title">Title I—Allocation and Payment of Funds</toc-entry> <toc-entry idref="H3973D0D5D809423B8721F288C6615B01" level="section">Sec. 101. Short title; table of contents.</toc-entry> <toc-entry idref="H0B08FF9BD00B43F99F28C32ECC01D591" level="section">Sec. 102. Payments to local governments.</toc-entry> <toc-entry idref="HF41A266F000348049D7C282CB6765CBC" level="section">Sec. 103. Use of funds by local governments for priority expenditures.</toc-entry> <toc-entry idref="H53B4DBE199AB47E08F4D154740326BCD" level="section">Sec. 104. Creation of trust fund; appropriations.</toc-entry> <toc-entry idref="H81C7F614F7914A51B4E389E3B7B3CDC3" level="section">Sec. 105. Allocation among States.</toc-entry> <toc-entry idref="HA5320BECD7C54891914638A81250EC8F" level="section">Sec. 106. Entitlements of local governments.</toc-entry> <toc-entry idref="HE1B15CAECB85438ABD03F85C061358BE" level="section">Sec. 107. Definitions and special rules for application of allocation formulas.</toc-entry> <toc-entry idref="H7C1F24F25A664D6696C21064C8169510" level="title">Title II—Administrative Provisions</toc-entry> <toc-entry idref="H59215985813C4B7785D7BF4B896BF500" level="section">Sec. 201. Reports on use of funds; publication.</toc-entry> <toc-entry idref="H9BE24F59BC0347B7BF7870B157032F00" level="section">Sec. 202. Miscellaneous provisions.</toc-entry> <toc-entry idref="HB13B4D4B7AEB4CD382B6958C7BDBA58B" level="section">Sec. 203. Definitions.</toc-entry> </toc> </subsection></section><section id="H0B08FF9BD00B43F99F28C32ECC01D591"><enum>102.</enum><header>Payments to local governments</header> <subsection id="H4025C2B3D2D64A41904C3E244097DE8F"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Except as otherwise provided in this Act, the Secretary shall, for each entitlement period, pay out of the Trust Fund to each unit of local government a total amount equal to the entitlement of such unit determined under section 106 for such period.</text> </subsection><subsection id="H1735DD4A127B4A38ADC52C422FC605C3"><enum>(b)</enum><header>Installments</header><text>In the case of entitlement periods ending after the date of the enactment of this Act, such payments shall be made in installments, but not less often than once for each quarter, and, in the case of quarters ending after the date of the enactment of this Act, shall be paid not later than 5 days after the close of each quarter. Such payments for any entitlement period may be initially made on the basis of estimates. Proper adjustment shall be made in the amount of any payment to a unit of local government to the extent that the payments previously made to such government under this title were in excess of or less than the amounts required to be paid.</text> </subsection></section><section id="HF41A266F000348049D7C282CB6765CBC"><enum>103.</enum><header>Use of funds by local governments for priority expenditures</header> <subsection id="HBC418FCDD64B4A5BA9113A06FC8EC67E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">Funds received by units of local government under this title may be used only for priority expenditures. For purposes of this Act, the term <term>priority expenditures</term> means only—</text> <paragraph id="H05FFD8F8FA5F443EB15CED479648FBA3"><enum>(1)</enum><text>ordinary and necessary maintenance and operating expenses for—</text> <subparagraph id="H0DF0E3F88A594B8DA0BF6194F918A0BA"><enum>(A)</enum><text>public safety (including law enforcement, fire protection, and building code enforcement);</text> </subparagraph><subparagraph id="HBCFB8A34F3FC49EBA56E891341703D6D"><enum>(B)</enum><text>environmental protection (including sewage disposal, sanitation, and pollution abatement);</text> </subparagraph><subparagraph id="H5DF31A4AAE0049E9A996BBC19508AF3B"><enum>(C)</enum><text>public transportation (including transit systems and streets and roads);</text> </subparagraph><subparagraph id="H5350123835F440B3B531C3BECBA527A3"><enum>(D)</enum><text>health;</text> </subparagraph><subparagraph id="H98D383A1C91A4F1286F0C7BB801396A7"><enum>(E)</enum><text>recreation;</text> </subparagraph><subparagraph id="HAD723C31AED2402CBD841619D80340B9"><enum>(F)</enum><text>libraries;</text> </subparagraph><subparagraph id="HA69039D9B5EA40E6BBF9EC2303246157"><enum>(G)</enum><text>social services for the poor or aged; and</text> </subparagraph><subparagraph id="H7545A462BD2A49DF8D9B72CB49AA1BB3"><enum>(H)</enum><text>financial administration; and</text> </subparagraph></paragraph><paragraph id="H37E5B5F75614471B998752C627BF4965"><enum>(2)</enum><text>ordinary and necessary capital expenditures authorized by law.</text> </paragraph></subsection><subsection id="H5D912D9F4C4645868655EF9D28F5EFDD"><enum>(b)</enum><header>Certificates by local governments</header><text>The Secretary is authorized to accept a certification by the chief executive officer of a unit of local government that the unit of local government has used the funds received by it under this title for an entitlement period only for priority expenditures, unless he determines that such certification is not sufficiently reliable to enable him to carry out his duties under this title.</text> </subsection></section><section id="H53B4DBE199AB47E08F4D154740326BCD"><enum>104.</enum><header>Creation of trust fund; appropriations</header> <subsection id="H51FB34B128144F4F8DE5DA8581B24AD5"><enum>(a)</enum><header>Trust Fund</header> <paragraph id="H100AD6CC552F4E9485EEEC0DD195E40B"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is hereby established on the books of the Treasury of the United States a trust fund to be known as the <quote>Local Government Fiscal Assistance Trust Fund</quote> (referred to in this title as the <quote>Trust Fund</quote>). The Trust Fund shall remain available without fiscal year limitation and shall consist of such amounts as may be appropriated to it and deposited in it as provided in subsection (b). Except as provided in this Act, amounts in the Trust Fund may be used only for the payments to local governments provided by this title.</text> </paragraph><paragraph id="H4E4381C2A70B4D3FB4B44FBCB181BDAB"><enum>(2)</enum><header>Trustee</header><text>The Secretary of the Treasury shall be the trustee of the Trust Fund and shall report to the Congress not later than March 1 of each year on the operation and status of the Trust Fund during the preceding fiscal year.</text> </paragraph></subsection><subsection id="H9EB9FC12B19E4318BB596FA2903B08EC"><enum>(b)</enum><header>Appropriations</header> <paragraph id="HC0E3DCFEB8FA441F9D88B5F0C4610FE0"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">There is appropriated to the Trust Fund, out of amounts in the general fund of the Treasury attributable to the collections of the Federal individual income taxes not otherwise appropriated—</text> <subparagraph id="H36D36D4F25DA4748AB0B5D2A147EA87F"><enum>(A)</enum><text display-inline="yes-display-inline">for the period beginning on the date of the enactment of this Act, and ending September 30, 2009, $30,000,000,000;</text> </subparagraph><subparagraph id="H1D4064F84BDC4669AA8E6273D9274EEB"><enum>(B)</enum><text>for fiscal year 2010, $30,000,000,000; and</text> </subparagraph><subparagraph id="H28A2145A7A574FB2B006242EF3634D59"><enum>(C)</enum><text>for fiscal year 2011, $30,000,000,000.</text> </subparagraph></paragraph><paragraph id="H4F0C61AAB4FF422A8054EEF1ACAAF543"><enum>(2)</enum><header>Deposits</header><text>Amounts appropriated by paragraph (1) for any fiscal year or other period shall be deposited in the Trust Fund on the later of (A) the first day of such year or period, or (B) the day after the date of enactment of this Act.</text> </paragraph></subsection><subsection id="H94E71EEC746B47E8A363C3781FE0B845"><enum>(c)</enum><header>Transfers from trust fund to general fund</header><text>The Secretary shall from time to time transfer from the Trust Fund to the general fund of the Treasury any moneys in the Trust Fund which he determines will not be needed to make payments to units of local government under this title.</text> </subsection></section><section id="H81C7F614F7914A51B4E389E3B7B3CDC3"><enum>105.</enum><header>Allocation among States</header> <subsection id="H34D8860B91CF49D8B9D6FF0D96780AD9"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">There shall be allocated to each State for each entitlement period, out of amounts appropriated under section 104(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).</text> </subsection><subsection id="HB2705D0E360C4B6E873829AB8E1E01B7"><enum>(b)</enum><header>Determination of allocable amount</header> <paragraph id="HF6A0A82D6925488881F1ED3B668BEFA2"><enum>(1)</enum><header>In general</header><text>For purposes of subsection (a), the amount allocable to a State under this subsection for any entitlement period shall be determined under paragraph (2).</text> </paragraph><paragraph id="HDB8C299AB1844DB5BE8DF4B541FA0B0A"><enum>(2)</enum><header>Three factor formula</header><text>For purposes of paragraph (1), the amount allocable to a State under this paragraph for any entitlement period is the amount which bears the same ratio to $20,000,000,000 as—</text> <subparagraph id="H2C31D9E571F747A4B754CEFE9D3DEBCB"><enum>(A)</enum><text display-inline="yes-display-inline">the population of that State, multiplied by the general tax effort factor of that State, multiplied by the relative income factor of that State, bears to</text> </subparagraph><subparagraph id="HFFBC76D404DF47B7988B0CB4AA779363"><enum>(B)</enum><text>the sum of the products determined under subparagraph (A) for all States.</text> </subparagraph></paragraph></subsection></section><section id="HA5320BECD7C54891914638A81250EC8F"><enum>106.</enum><header>Entitlements of local governments</header> <subsection id="H08630A7F2546445080D583A6A99C7355"><enum>(a)</enum><header>Allocation among county areas</header><text display-inline="yes-display-inline">The amount to be allocated to the units of local government within a State for any entitlement period shall be allocated among the county areas located in that State so that each county area will receive an amount which bears the same ratio to the total amount to be allocated to the units of local government within that State as—</text> <paragraph id="HEE0C1576138F44EC89ABD3B0F4E7EEB9"><enum>(1)</enum><text display-inline="yes-display-inline">the population of that county area, multiplied by the general tax effort factor of that county area, multiplied by the relative income factor of that county area, bears to</text> </paragraph><paragraph id="HDCADF64A74C148599A2F70D9E54D92C5"><enum>(2)</enum><text>the sum of the products determined under paragraph (1) for all county areas within that State.</text> </paragraph></subsection><subsection id="H2362BE2D57CA44AFBA72B2E745EB71D7"><enum>(b)</enum><header>Allocation to county governments, municipalities, townships, etc</header> <paragraph id="HCDA630EE2E7D4150AE64C819410A6522"><enum>(1)</enum><header>County governments</header><text display-inline="yes-display-inline">The county government shall be allocated that portion of the amount allocated to the county area for the entitlement period under subsection (a) which bears the same ratio to such amount as the adjusted taxes of the county government bear to the adjusted taxes of the county government and all other units of local government located in the county area.</text> </paragraph><paragraph id="H0D47043CDF5B4D6EBEEC432339262317"><enum>(2)</enum><header>Other units of local government</header><text>The amount remaining for allocation within a county area after the application of paragraph (1) shall be allocated among the units of local government (other than the county government and other than township governments) located in that county area so that each unit of local government will receive an amount which bears the same ratio to the total amount to be allocated to all such units as—</text> <subparagraph id="H9DC63139FC1441F584B15E2D80C667FA"><enum>(A)</enum><text>the population of that local government, multiplied by the general tax effort factor of that local government, multiplied by the relative income factor of that local government, bears to</text> </subparagraph><subparagraph id="H80F1A5F0F04A4586BCF9B477C2BD11BD"><enum>(B)</enum><text>the sum of the products determined under subparagraph (A) for all such units.</text> </subparagraph></paragraph><paragraph id="H08896BF35ECD43D78C898C2284FC178F"><enum>(3)</enum><header>Township governments</header><text>If the county area includes one or more township governments, then before applying paragraph (2)—</text> <subparagraph id="HE65CD6F7BFD34124927F6BF84140E387"><enum>(A)</enum><text>there shall be set aside for allocation under subparagraph (B) to such township governments that portion of the amount allocated to the county area for the entitlement period which bears the same ratio to such amount as the sum of the adjusted taxes of all such township governments bears to the aggregate adjusted taxes of the county government, such township governments, and all other units of local government located in the county area, and</text> </subparagraph><subparagraph id="H6975C26C17E3495C8922404E93A792CE"><enum>(B)</enum><text>that portion of each amount set aside under subparagraph (A) shall be allocated to each township government on the same basis as amounts are allocated to units of local government under paragraph (2).</text> </subparagraph><continuation-text continuation-text-level="paragraph">If this paragraph applies with respect to any county area for any entitlement period, the remaining portion allocated under paragraph (2) to the units of local government located in the county area (other than the county government and the township governments) shall be appropriately reduced to reflect the amounts set aside under subparagraph (A).</continuation-text></paragraph><paragraph id="H3755353945B64667B4F03C2F83696D49"><enum>(4)</enum><header>Indian tribes and alaskan native villages</header><text>If within a county area there is an Indian tribe or Alaskan native village which has a recognized governing body which performs substantial governmental functions, then before applying paragraph (1) there shall be allocated to such tribe or village a portion of the amount allocated to the county area for the entitlement period which bears the same ratio to such amount as the population of that tribe or village within that county area bears to the population of that county area. If this paragraph applies with respect to any county area for any entitlement period, the amount to be allocated under paragraph (1) shall be appropriately reduced to reflect the amount allocated under the preceding sentence. If the entitlement of any such tribe or village is waived for any entitlement period by the governing body of that tribe or village, then the provisions of this paragraph shall not apply with respect to the amount of such entitlement for such period.</text> </paragraph><paragraph id="HCF036C809FDB4A0AAA3F71ED9F504270"><enum>(5)</enum><header>Rule for small units of government</header><text>If the Secretary determines that in any county area the data available for any entitlement period are not adequate for the application of the formulas set forth in paragraphs (2) and (3)(B) with respect to units of local government (other than a county government) with a population below a number (not more than 500) prescribed for that county area by the Secretary, he may apply paragraph (2) or (3)(B) by allocating for such entitlement period to each such unit located in that county area an amount which bears the same ratio to the total amount to be allocated under paragraph (2) or (3)(B) for such entitlement period as the population of such unit bears to the population of all units of local government in that county area to which allocations are made under such paragraph. If the preceding sentence applies with respect to any county area, the total amount to be allocated under paragraph (2) or (3)(B) to other units of local government in that county area for the entitlement period shall be appropriately reduced to reflect the amounts allocated under the preceding sentence.</text> </paragraph><paragraph id="H5D458EC7CBBD4A808F86C8566CBACDD1"><enum>(6)</enum><header>Entitlement</header> <subparagraph id="H097209FF1A924371A682BBDF04487D00"><enum>(A)</enum><header>In general</header><text>Except as otherwise provided in this paragraph, the entitlement of any unit of local government for any entitlement period shall be the amount allocated to such unit under this subsection (after taking into account any applicable modification under subsection (c)).</text> </subparagraph><subparagraph id="H8E2D9977C3034B789CBF8C9C63614C17"><enum>(B)</enum><header>Maximum and minimum per capita entitlement</header><text>Subject to the provisions of subparagraphs (C) and (D), the per capita amount allocated to any county area or any unit of local government (other than a county government) within a State under this section for any entitlement period shall not be less than 20 percent, nor more than 145 percent, of two-thirds of the amount allocated to the State under section 105, divided by the population of that State.</text> </subparagraph><subparagraph id="H8706D432F4BB45E78D91D699A45D64D9"><enum>(C)</enum><header>Limitation</header><text>The amount allocated to any unit of local government under this section for any entitlement period shall not exceed 50 percent of the sum of (i) such government’s adjusted taxes, and (ii) the intergovernmental transfers of revenue to such government (other than transfers to such government under this title).</text> </subparagraph><subparagraph id="H8AF56B86851C49869E1C00B1F9E645F2"><enum>(D)</enum><header>Entitlement less than $1,000, or governing body waives entitlement</header><text>If (but for this subparagraph) the entitlement of any unit of local government below the level of the county government—</text> <clause id="HFA49E36897ED4C46838D031622008787"><enum>(i)</enum><text>would be less than $1,000 for any entitlement period ($500 for an entitlement period of 6 months), or</text> </clause><clause id="HC4A05822FF934744B475E084C006B335"><enum>(ii)</enum><text>is waived for any entitlement period by the governing body of such unit,</text> </clause><continuation-text continuation-text-level="subparagraph">then the amount of such entitlement for such period shall (in lieu of being paid to such unit) 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 unit is located.</continuation-text></subparagraph></paragraph><paragraph id="H650DD7436D4B476D9BED24E2829C963D"><enum>(7)</enum><header>Adjustment of entitlement</header> <subparagraph id="H942CC039231B4E0AB9142493C9121ECA"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">In adjusting the allocation of any county area or unit of local government, the Secretary shall make any adjustment required under paragraph (6)(B) first, any adjustment required under paragraph (6)(C) next, and any adjustment required under paragraph (6)(D) last.</text> </subparagraph><subparagraph id="H2052D43469E64EF5BBF33B2C9FC5B4C"><enum>(B)</enum><header>Adjustment for application of maximum or minimum per capita entitlement</header><text>The Secretary shall adjust the allocations made under this section to county areas or to units of local governments in any State in order to bring those allocations into compliance with the provisions of paragraph (6)(B). In making such adjustments he shall make any necessary adjustments with respect to county areas before making any necessary adjustments with respect to units of local government.</text> </subparagraph><subparagraph id="H6562F4DCB4D34E97A60401315C3282F3"><enum>(C)</enum><header>Adjustment for application of limitation</header><text display-inline="yes-display-inline">In any case in which the amount allocated to a unit of local government is reduced under paragraph (6)(C) by the Secretary, the amount of that reduction—</text> <clause id="HB389B5961D67492AAB417E28FA55A5EC"><enum>(i)</enum><text>in the case of a unit of local government (other than a county government), shall be added to and increase the allocation of the county government of the county area in which it is located, unless (on account of the application of paragraph (6)) that county government may not receive it, in which case the amount of the reduction shall be added to and increase the entitlement of the State government of the State in which that unit of local government is located; and</text> </clause><clause id="HA53EB5B7BD1841119049C3853169D642"><enum>(ii)</enum><text>in the case of a county government, shall be added to and increase the entitlement of the State government of the State in which it is located.</text> </clause></subparagraph></paragraph></subsection><subsection id="HE2CC4D5F54624C899F5FD2ED113C8BFE"><enum>(c)</enum><header>Special allocation rules</header> <paragraph id="H8F2DBB80FB7744EAA0285D8519D9BF26"><enum>(1)</enum><header>Optional formula</header><text display-inline="yes-display-inline">A State may by law provide for the allocation of funds among county areas, or among units of local government (other than county governments), on the basis of the population multiplied by the general tax effort factors of such areas or units of local government, on the basis of the population multiplied by the relative income factors of such areas or units of local government, or on the basis of a combination of those two factors. Any State which provides by law for such a variation in the allocation formula provided by subsection (a), or by paragraphs (2) and (3) of subsection (b), shall notify the Secretary of such law not later than 30 days before the beginning of the first entitlement period to which such law is to apply. Any such law shall—</text> <subparagraph id="HAD8A7259DDD34F30A8A55EC2843A2C"><enum>(A)</enum><text>provide for allocating 100 percent of the aggregate amount to be allocated under subsection (a), or under paragraphs (2) and (3) of subsection (b);</text> </subparagraph><subparagraph id="HB520C4B1E8AB48FC9FAB4379DE44A459"><enum>(B)</enum><text>apply uniformly throughout the State; and</text> </subparagraph><subparagraph id="HA4C5DBDDDF3B43639D2F409E81E51B7F"><enum>(C)</enum><text>apply during the period beginning on the first day of the first entitlement period to which it applies and ending on September 30, 2011.</text> </subparagraph></paragraph><paragraph id="H056328EC821C458D81C1A64C4000D769"><enum>(2)</enum><header>Certification</header><text>Paragraph (1) shall apply within a State only if the Secretary certifies that the State law complies with the requirements of such paragraph. The Secretary shall not certify any such law with respect to which he receives notification later than 30 days prior to the first entitlement period during which it is to apply.</text> </paragraph></subsection><subsection id="H65257A91DF884B4796EAB8C79CB7F9D"><enum>(d)</enum><header>Governmental definitions and related rules</header><text>For purposes of this Act—</text> <paragraph id="HD2EF3C18F105448F89C7F5D62BBCD13"><enum>(1)</enum><header>Units of local government</header><text display-inline="yes-display-inline">The term <term>unit of local government</term> means the government of a county, municipality, township, or other unit of government below the State which is a unit of general government (determined on the basis of the same principles as are used by the Bureau of the Census for general statistical purposes). Such term also means, except for purposes of paragraphs (1), (2), (3), (5), (6)(C), and (6)(D) of subsection (b), and, except for purposes of subsection (c), the recognized governing body of an Indian tribe or Alaskan native village which performs substantial governmental functions.</text> </paragraph><paragraph id="H650BE1817BC84058A6CEFE3B109528BF"><enum>(2)</enum><header>Certain areas treated as counties</header><text>In any State in which any unit of local government (other than a county government) constitutes the next level of government below the State government level, then, except as provided in the next sentence, the geographic area of such unit of government shall be treated as a county area (and such unit of government shall be treated as a county government) with respect to that portion of the State’s geographic area. In any State in which any county area is not governed by a county government but contains two or more units of local government, such units shall not be treated as county governments and the geographic areas of such units shall not be treated as county areas.</text> </paragraph><paragraph id="HA18078831D3441B3BE4B3001A10DCB3"><enum>(3)</enum><header>Townships</header><text>The term <term>township</term> includes equivalent subdivisions of government having different designations (such as <term>towns</term>), and shall be determined on the basis of the same principles as are used by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="HCC0CCF56823A45D1B1B76C00DFF59C14"><enum>(4)</enum><header>Units of local government located in larger entity</header><text>A unit of local government shall be treated as located in a larger entity if part or all of its geographic area is located in the larger entity.</text> </paragraph><paragraph id="H767246117F794DCB801DF6B8BBAB2604"><enum>(5)</enum><header>Only part of unit located in larger entity</header><text>If only part of a unit of local government is located in a larger entity, such part shall be treated for allocation purposes as a separate unit of local government, and all computations shall, except as otherwise provided in regulations, be made on the basis of the ratio which the estimated population of such part bears to the population of the entirety of such unit.</text> </paragraph><paragraph id="HBDA64C1EDB77415EB47BE763C58651DF"><enum>(6)</enum><header>Boundary changes, governmental reorganization, etc</header><text>If, by reason of boundary line changes, by reason of State statutory or constitutional changes, by reason of annexations or other governmental reorganizations, or by reason of other circumstances, the application of any provision of this section to units of local government does not carry out the purposes of this title, the application of such provision shall be made, under regulations prescribed by the Secretary, in a manner which is consistent with such purposes.</text> </paragraph></subsection></section><section id="HE1B15CAECB85438ABD03F85C061358BE"><enum>107.</enum><header>Definitions and special rules for application of allocation formulas</header> <subsection id="H5076EFF58ED3485DB69651198FE7635E"><enum>(a)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this title—</text> <paragraph id="H1D0DE163EB084D69937FE152B49F254F"><enum>(1)</enum><header>Population</header><text display-inline="yes-display-inline">Population shall be determined on the same basis as resident population is determined by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="H39BBAC7D2FA64D37AE9439A300C18B00"><enum>(2)</enum><header>Urbanized population</header><text>Urbanized population means the population of any area consisting of a central city or cities of 50,000 or more inhabitants (and of the surrounding closely settled territory for such city or cities) which is treated as an urbanized area by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="HD7576CD9908C499500B3A4D7CFC28879"><enum>(3)</enum><header>Income</header><text>Income means total money income received from all sources, as determined by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="HCFD5107A1C2C4E33A88DE53ED14874A1"><enum>(4)</enum><header>Personal income</header><text>Personal income means the income of individuals, as determined by the Department of Commerce for national income accounts purposes.</text> </paragraph><paragraph id="HC9461E17071C45A4BB4F3E8E90F08719"><enum>(5)</enum><header>Dates for determining allocations and entitlements</header><text>Except as provided in regulations, the determination of allocations and entitlements for any entitlement period shall be made as of the first day of the third month immediately preceding the beginning of such period.</text> </paragraph><paragraph id="HDC91BF1FE3984B55B9212742DF45A1B7"><enum>(6)</enum><header>Intergovernmental transfers</header><text>The intergovernmental transfers of revenue to any government are the amounts of revenue received by that government from other governments as a share in financing (or as reimbursement for) the performance of governmental functions, as determined by the Bureau of the Census for general statistical purposes.</text> </paragraph><paragraph id="H2EAE233D6FA84A38A01271BDA0C9BA00"><enum>(7)</enum><header>Data used; uniformity of data</header> <subparagraph id="H16E24798911743F8B5158FADDD8C70D8"><enum>(A)</enum><header>General rule</header><text display-inline="yes-display-inline">Except as provided in subparagraph (B), the data used shall be the most recently available data provided by the Bureau of the Census or the Department of Commerce, as the case may be.</text> </subparagraph><subparagraph id="H790CD92BFFE249BFBCDEBDA0A9418E7F"><enum>(B)</enum><header>Use of estimates, etc</header><text>Where the Secretary determines that the data referred to in subparagraph (A) are not current enough or are not comprehensive enough to provide for equitable allocations, he may use such additional data (including data based on estimates) as may be provided for in regulations.</text> </subparagraph></paragraph></subsection><subsection id="H60D989E45E3A4B5995A946F9A1DC47E8"><enum>(b)</enum><header>Income tax amount of states</header><text>For purposes of this title—</text> <paragraph id="H825A9C018E0F4BCC86409FD61B20E08E"><enum>(1)</enum><header>In general</header><text>The income tax amount of any State for any entitlement period is the income tax amount of such State as determined under paragraphs (2) and (3).</text> </paragraph><paragraph id="H4AABF424A3644EDE9600BFCD4FB1FEA9"><enum>(2)</enum><header>Income tax amount</header><text>The income tax amount of any State for any entitlement period is 15 percent of the net amount collected from the State individual income tax of such State during 2009 or (if later) during the last calendar year ending before the beginning of such entitlement period.</text> </paragraph><paragraph id="HB4330DEC79614F11AEA94FAB26556356"><enum>(3)</enum><header>Ceiling and floor</header><text>The income tax amount of any State for any entitlement period—</text> <subparagraph id="HD71377BF846142C39FE628D5CF459168"><enum>(A)</enum><text>shall not exceed 6 percent, and</text> </subparagraph><subparagraph id="HE7A30E90EDFB45EC0005A36633CAEBD9"><enum>(B)</enum><text>shall not be less than 1 percent,</text> </subparagraph><continuation-text continuation-text-level="paragraph">of the Federal individual income tax liabilities attributed to such State for taxable years ending during 2008 or (if later) during the last calendar year ending before the beginning of such entitlement period.</continuation-text></paragraph><paragraph id="H827E939B16084FAEBF5195681EC2A14F"><enum>(4)</enum><header>State individual income tax</header><text>The individual income tax of any State is the tax imposed upon the income of individuals by such State and described as a State income tax under section 164(a)(3) of the Internal Revenue Code of 1986.</text> </paragraph><paragraph id="HFF21C982CF684F12853EAA00B6CD7E58"><enum>(5)</enum><header>Federal individual income tax liabilities</header><text>Federal individual income tax liabilities attributed to any State for any period shall be determined on the same basis as such liabilities are determined for such period by the Internal Revenue Service for general statistical purposes.</text> </paragraph></subsection><subsection id="H9E376B86A0D447D1AEADF93929D6D17"><enum>(c)</enum><header>General tax effort of states</header> <paragraph id="H372A2CB32BC343E4B380B4FF6C85F3A5"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">For purposes of this title—</text> <subparagraph id="H14F7BD29A07A4443B64657E55C33BDC3"><enum>(A)</enum><header>General tax effort factor</header><text>The general tax effort factor of any State for any entitlement period is (i) the net amount collected from the State and local taxes of such State during the most recent reporting year, divided by (ii) the aggregate personal income (as defined in paragraph (4) of subsection (a)) attributed to such State for the same period.</text> </subparagraph><subparagraph id="H620A4915D7A74BCFAAB6548DCD00CC"><enum>(B)</enum><header>General tax effort amount</header><text>The general tax effort amount of any State for any entitlement period is the amount determined by multiplying—</text> <clause id="H020B5A94D869408C9D1C80C5C32B92E5"><enum>(i)</enum><text>the net amount collected from the State and local taxes of such State during the most recent reporting year, by</text> </clause><clause id="HA56DDAC7758E4473A898744FFAB0175C"><enum>(ii)</enum><text>the general tax effort factor of that State.</text> </clause></subparagraph></paragraph><paragraph id="HBFE956F1676C4993AEDA230000206422"><enum>(2)</enum><header>State and local taxes</header> <subparagraph id="H7C9D70C35D1F41B89DDD8E7BA2B6B633"><enum>(A)</enum><header>Taxes taken into account</header><text display-inline="yes-display-inline">The State and local taxes taken into account under paragraph (1) are the compulsory contributions exacted by the State (or by any unit of local government or other political subdivision of the State) for public purposes (other than employee and employer assessments and contributions to finance retirement and social insurance systems, and other than special assessments for capital outlay), as such contributions are determined by the Bureau of the Census for general statistical purposes.</text> </subparagraph><subparagraph id="H31DEFF9D1A0348EC8EFA206008068B3"><enum>(B)</enum><header>Most recent reporting year</header><text>The most recent reporting year with respect to any entitlement period consists of the years taken into account by the Bureau of the Census in its most recent general determination of State and local taxes made before the close of such period.</text> </subparagraph></paragraph></subsection><subsection id="H5A725C4CEC63416E9B00048CF8C518DC"><enum>(d)</enum><header>General tax effort factor of county area</header><text>For purposes of this title, the general tax effort factor of any county area for any entitlement period is—</text> <paragraph id="H2627E0981CCE41D5A1001E23E1A36D96"><enum>(1)</enum><text>the adjusted taxes of the county government plus the adjusted taxes of each other unit of local government within that county area, divided by</text> </paragraph><paragraph id="HF37E0413C73B466AA96EFB496B048411"><enum>(2)</enum><text>the aggregate income (as defined in paragraph (3) of subsection (a)) attributed to that county area.</text> </paragraph></subsection><subsection id="HDABFA2A95F14480EB09DCCE6A3082210"><enum>(e)</enum><header>General tax effort factor of unit of local government</header><text>For purposes of this title—</text> <paragraph id="H59146B38981D467597915388D1DBC2DD"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The general tax effort factor of any unit of local government for any entitlement period is—</text> <subparagraph id="H8175716AF9F347E893C7AFD077A7B2C0"><enum>(A)</enum><text>the adjusted taxes of that unit of local government, divided by</text> </subparagraph><subparagraph id="H329643855C474F99BC03F09EA65CC942"><enum>(B)</enum><text>the aggregate income (as defined in paragraph (3) of subsection (a)) attributed to that unit of local government.</text> </subparagraph></paragraph><paragraph id="HEF91366E1F034751B8004ED46DE2BEE5"><enum>(2)</enum><header>Adjusted taxes</header> <subparagraph id="HA9A7DD65C4B444A0AE00A79D811BE18"><enum>(A)</enum><header>In general</header><text display-inline="yes-display-inline">The adjusted taxes of any unit of local government are—</text> <clause id="H58F9DB6241F2414FABCE92D0CE61FE12"><enum>(i)</enum><text>the compulsory contributions exacted by such government for public purposes (other than employee and employer assessments and contributions to finance retirement and social insurance systems, and other than special assessments for capital outlay), as such contributions are determined by the Bureau of the Census for general statistical purposes, and</text> </clause><clause id="H7DAD06AF06F9490FA8E6120F561F23D"><enum>(ii)</enum><text>adjusted (under regulations prescribed by the Secretary) by excluding an amount equal to that portion of such compulsory contributions which is properly allocable to expenses for education.</text> </clause></subparagraph><subparagraph id="H52861028AB654E96BB005E16CDE160C4"><enum>(B)</enum><header>Certain sales taxes collected by counties</header><text>In any case where—</text> <clause id="H936CAAAAA44A4A94AC6B635DB391D4E4"><enum>(i)</enum><text>a county government exacts sales taxes within the geographic area of a unit of local government and transfers part or all of such taxes to such unit without specifying the purposes for which such unit may spend the revenues, and</text> </clause><clause id="HA41AB4F6F944412400CDC8DF5207506C"><enum>(ii)</enum><text>the Governor of the State notifies the Secretary that the requirements of this subparagraph have been met with respect to such taxes,</text> </clause><continuation-text continuation-text-level="subparagraph">then the taxes so transferred shall be treated as the taxes of the unit of local government (and not the taxes of the county government).</continuation-text></subparagraph></paragraph></subsection><subsection id="HF337CD06C3F84250A95C62E891D2042D"><enum>(f)</enum><header>Relative income factor</header><text>For purposes of this title, the relative income factor is a fraction—</text> <paragraph id="H979921E203E646F9B269AEA050BBCF07"><enum>(1)</enum><text>in the case of a State, the numerator of which is the per capita income of the United States and the denominator of which is the per capita income of that State;</text> </paragraph><paragraph id="HB93DAE50C4144BEF81D9B5A04B01F08"><enum>(2)</enum><text>in the case of a county area, the numerator of which is the per capita income of the State in which it is located and the denominator of which is the per capita income of that county area; and</text> </paragraph><paragraph id="HD0DAA49A7E314F1084691C204EABA77D"><enum>(3)</enum><text>in the case of a unit of local government, the numerator of which is the per capita income of the county area in which it is located and the denominator of which is the per capita income of the geographic area of that unit of local government.</text> </paragraph><continuation-text continuation-text-level="subsection">For purposes of this subsection, per capita income shall be determined on the basis of income as defined in paragraph (3) of subsection (a).</continuation-text></subsection></section><enum>II</enum><header>Administrative Provisions</header> <section id="H59215985813C4B7785D7BF4B896BF500"><enum>201.</enum><header>Reports on use of funds; publication</header> <subsection id="H3DBD50B14FA74C67AD94D68B003C13ED"><enum>(a)</enum><header>Reports on use of funds</header><text display-inline="yes-display-inline">Each State government and unit of local government which receives funds under title I shall, after the close of each entitlement period, submit a report to the Secretary setting forth the amounts and purposes for which funds received during such period have been spent or obligated. Such reports shall be in such form and detail and shall be submitted at such time as the Secretary may prescribe. The Secretary shall establish a publicly accessible website for purposes of this Act and shall post such reports on that website.</text> </subsection><subsection id="H6F718CD3D7A24B5FB5A0D01BFED95706"><enum>(b)</enum><header>Reports on planned use of funds</header><text>Each State government and unit of local government which expects to receive funds under title I for any entitlement period beginning on or after October 1, 2009 shall submit a report to the Secretary setting forth the amounts and purposes for which it plans to spend or obligate the funds which it expects to receive during such period. Such reports shall be in such form and detail as the Secretary may prescribe and shall be submitted at such time before the beginning of the entitlement period as the Secretary may prescribe.</text> </subsection></section><section id="H9BE24F59BC0347B7BF7870B157032F00"><enum>202.</enum><header>Miscellaneous provisions</header> <subsection id="HCDEA40A687694E80A0DE6E52910021EB"><enum>(a)</enum><header>Assurances to the Secretary</header><text display-inline="yes-display-inline">In order to qualify for any payment under title I for any entitlement period beginning on or after October 1, 2009, a State government or unit of local government must establish (in accordance with regulations prescribed by the Secretary, and, with respect to a unit of local government, after an opportunity for review and comment by the Governor of the State in which such unit is located) to the satisfaction of the Secretary that—</text> <paragraph id="H87DCCCC7E0C64FBD989B8E5300B801C7"><enum>(1)</enum><text>it will establish a trust fund in which it will deposit all payments it receives under title I;</text> </paragraph><paragraph id="HEC0402793FBC4FC28C204CBD6001EFF"><enum>(2)</enum><text>it will use amounts in such trust fund (including any interest earned thereon while in such trust fund) during such reasonable period or periods as may be provided in such regulations;</text> </paragraph><paragraph id="HB2D39CA0AFDB4A88B66EB4CC4033A0E6"><enum>(3)</enum><text>in the case of a unit of local government, it will use amounts in such trust fund (including any interest earned thereon while in such trust fund) only for priority expenditures (as defined in section 103(a)), and will pay over to the Secretary (for deposit in the general fund of the Treasury) an amount equal to 110 percent of any amount expended 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 corrected) after notice and opportunity for corrective action;</text> </paragraph><paragraph id="HD911A4960BCD4D2D90D5E7DA7900F1A1"><enum>(4)</enum><text>it will provide for the expenditure of amounts received under title I only in accordance with the laws and procedures applicable to the expenditure of its own revenues;</text> </paragraph><paragraph id="H82BF50086D9B445883A06D00907BE9BE"><enum>(5)</enum><text>it will—</text> <subparagraph id="H61D0E2AE52F747268BAF9147DD757E00"><enum>(A)</enum><text>use fiscal, accounting, and audit procedures which conform to guidelines established therefor by the Secretary (after consultation with the Comptroller General of the United States),</text> </subparagraph><subparagraph id="H5D6E7D8371FD41AFB5357E8D695215C8"><enum>(B)</enum><text>provide to the Secretary (and to the Comptroller General of the United States), on reasonable notice, access to, and the right to examine, 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 require for purposes of reviewing compliance and operations under subsection (c)(2)), and</text> </subparagraph><subparagraph id="HDE7FD67CE50845F180DBE0EBC162D32E"><enum>(C)</enum><text>make such annual and interim reports (other than reports required by section 201) to the Secretary as he may reasonably require;</text> </subparagraph></paragraph><paragraph commented="no" id="H3691232CFB944E988766ABC9377853EB"><enum>(6)</enum><text>all laborers and mechanics employed by contractors 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 subchapter IV of chapter 31 of title 40, United States Code (commonly referred to as the <quote>Davis-Bacon Act</quote>);</text> </paragraph><paragraph id="H8B99E22C5521446BA1ECE5CD7A9CF22"><enum>(7)</enum><text>individuals employed by it whose wages are paid in whole or in part out of its trust fund established 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</text> </paragraph><paragraph id="HE363D2F1AB144F19AEF39C4513B6179B"><enum>(8)</enum><text>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 Alaskan 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).</text> </paragraph><continuation-text continuation-text-level="subsection">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 government in such category are paid from the trust fund established by it under paragraph (1).</continuation-text></subsection><subsection id="H78E8066EF7A54036004829FFFDED6C8C"><enum>(b)</enum><header>Withholding of payments</header><text>If the Secretary determines that a State government or unit of local government has failed to comply substantially with any provision of subsection (a) or any regulations prescribed thereunder, after giving reasonable notice and opportunity for a hearing to the Governor of the State or the chief executive 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 Secretary shall make no further payments of such amounts.</text> </subsection><subsection id="HD60EB57457384DDF971309A6BE49706B"><enum>(c)</enum><header>Accounting, auditing, and evaluation</header> <paragraph id="H503240D3E7074ABB00A4DBF4FA4CEECA"><enum>(1)</enum><header>In general</header><text display-inline="yes-display-inline">The Secretary shall provide for such accounting and auditing procedures, evaluations, 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 sufficiently reliable to enable him to carry out his duties under this Act.</text> </paragraph><paragraph id="HB832CF8154104FB282BBD3BF85884251"><enum>(2)</enum><header>Comptroller general shall review compliance</header><text>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 necessary for the Congress to evaluate compliance and operations under this Act.</text> </paragraph></subsection></section><section id="HB13B4D4B7AEB4CD382B6958C7BDBA58B"><enum>203.</enum><header>Definitions</header> <subsection id="H5B05EA1079CC48BA857CBF6E548690C"><enum>(a)</enum><header>Secretary</header><text display-inline="yes-display-inline">For purposes of this Act, the term <term>Secretary</term> means the Secretary of the Treasury or his delegate. The term <term>Secretary of the Treasury</term> means the Secretary of the Treasury personally, not including any delegate.</text> </subsection><subsection id="H1B09C82ACA034E92A5C758A8A035416B"><enum>(b)</enum><header>Entitlement period</header><text>For purposes of this Act, the term <term>entitlement period</term> means each of the following:</text> <paragraph id="HA4798E114E684BD2A4ED0431374E0EC6"><enum>(1)</enum><text display-inline="yes-display-inline">The period beginning on the date of the enactment of this Act and ending September 30, 2009.</text> </paragraph><paragraph id="H47FD1A5C0870429FB86F577BFB236155"><enum>(2)</enum><text>Fiscal year 2010.</text> </paragraph><paragraph id="H70AF064C55CC468C841FF88FCB31583D"><enum>(3)</enum><text>Fiscal year 2011.</text> </paragraph></subsection></section>