§ 6703. — Qualification for payment.
[Laws in effect as of January 7, 2003]
[Document not affected by Public Laws enacted between
January 7, 2003 and December 19, 2003]
[CITE: 31USC6703]
TITLE 31--MONEY AND FINANCE
SUBTITLE V--GENERAL ASSISTANCE ADMINISTRATION
CHAPTER 67--FEDERAL PAYMENTS
Sec. 6703. Qualification for payment
(a) In General.--The Secretary shall issue regulations establishing
procedures under which eligible units of general local government are
required to provide notice to the Secretary of the units' proposed use
of assistance under this chapter. Subject to subsection (c), the
assistance provided shall be used, in amounts determined by the unit,
for activities under, or for activities that are substantially similar
to an activity under, 1 or more of the following programs and the notice
shall identify 1 or more of the following programs for each such use:
(1) The Drug Abuse Resistance Education Program under section
5122 of the Elementary and Secondary Education Act of 1965.
(2) The National Youth Sports Program under section 682 of the
Community Services Block Grant Act (Public Law 97-35) as amended by
section 205, Public Law 103-252.
(3) The Gang Resistance Education and Training Program under the
Act entitled ``An Act making appropriations for the Treasury
Department, the United States Postal Service, the Executive Office
of the President, and certain Independent Agencies, for the fiscal
year ending September 30, 1991, and for other purposes'', approved
November 5, 1990 (Public Law 101-509).
(4) Programs under title I of the Workforce Investment Act of
1998.
(5) Programs under subtitle C of title I of the National and
Community Service Act of 1990 (42 U.S.C. 12571 et seq.), as amended.
(6) Programs under the School to Work Opportunities Act (Public
Law 103-239).
(7) Substance Abuse Treatment and Prevention programs authorized
under title V or XIX of the Public Health Services Act (43 U.S.C.
201 et seq.).\1\
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\1\ See References in Text note below.
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(8) Programs under the Head Start Act (42 U.S.C. 9831 et seq.).
(9) Programs under part A or B of chapter 1 of title I of the
Elementary and Secondary Education Act of 1965.
(10) The TRIO programs under part A of title IV of the Higher
Education Act of 1965 (20 U.S.C. 1070 et seq.).
(11) Programs under the National Literacy Act of 1991.
(12) Programs under the Carl Perkins Vocational Educational and
Applied Technology Education Act (20 U.S.C. 2301 et seq.).
(13) The demonstration partnership programs including the
community initiative targeted to minority youth under section 203
\1\ of the Human Services Reauthorization Act of 1994 (Public Law
103-252).
(14) The runaway and homeless youth program and the transitional
living program for homeless youth under title III of the Juvenile
Justice and Delinquency Prevention Act (Public Law 102-586).
(15) After-school activities for school aged children under the
Child Care and Development Block Grant Act (42 U.S.C. 9858 et seq.).
(16) The community-based family resource programs under section
401 \1\ of the Human Services Reauthorization Act of 1994 (Public
Law 103-252).
(17) The family violence programs under the Child Abuse
Prevention and Treatment Act Amendments of 1984.
(18) Job training programs administered by the Department of
Agriculture, the Department of Defense, or the Department of Housing
and Urban Development.
(b) Notice to Agency.--Upon receipt of notice under subsection (a)
from an eligible unit of general local government, the Secretary shall
notify the head of the appropriate Federal agency for each program
listed in subsection (a) that is identified in the notice as a program
under which an activity will be conducted with assistance under this
chapter. The notification shall state that the unit has elected to use
some or all of its assistance under this chapter for activities under
that program. The head of a Federal agency that receives such a
notification shall ensure that such use is in compliance with the laws
and regulations applicable to that program, except that any requirement
to provide matching funds shall not apply to that use.
(c) Alternative Uses of Funds.--
(1) Alternative uses authorized.--In lieu of, or in addition to,
use for an activity described in subsection (a) and notice for that
use under subsection (a), an eligible unit of general local
government may use assistance under this chapter, and shall provide
notice of that use to the Secretary under subsection (a), for any
other activity that is consistent with 1 or more of the purposes
described in section 6701(a)(2).
(2) Notice deemed to describe consistent use.--Notice by a unit
of general local government that it intends to use assistance under
this chapter for an activity other than an activity described in
subsection (a) is deemed to describe an activity that is consistent
with 1 or more of the purposes described in section 6701(a)(2)
unless the Secretary provides to the unit, within 30 days after
receipt of that notice of intent from the unit, written notice
(including an explanation) that the use is not consistent with those
purposes.
(d) General Requirements for Qualification.--A unit of general local
government qualifies for a payment under this chapter for a payment
period only after establishing to the satisfaction of the Secretary
that--
(1) the government will establish a trust fund in which the
government will deposit all payments received under this chapter;
(2) the government will use amounts in the trust fund (including
interest) during a reasonable period;
(3) the government will expend the payments so received, in
accordance with the laws and procedures that are applicable to the
expenditure of revenues of the government;
(4) if at least 25 percent of the pay of individuals employed by
the government in a public employee occupation is paid out of the
trust fund, individuals in the occupation any part of whose pay is
paid out of the trust fund will receive pay at least equal to the
prevailing rate of pay for individuals employed in similar public
employee occupations by the government;
(5) all laborers and mechanics employed by contractors or
subcontractors in the performance of any contract and subcontract
for the repair, renovation, alteration, or construction, including
painting and decorating, of any building or work that is financed in
whole or in part by a grant under this title, shall be paid wages
not less than those determined by the Secretary of Labor in
accordance with sections 3141-3144, 3146, and 3147 of title 40. The
Secretary of Labor shall have the authority and functions set forth
in Reorganization Plan No. 14 of 1950 (15 FR 3176; 64 Stat. 1267)
and section 3145 of title 40;
(6) the government will use accounting, audit, and fiscal
procedures that conform to guidelines which shall be prescribed by
the Secretary. As applicable, amounts received under this chapter
shall be audited in compliance with the Single Audit Act of 1984;
(7) after reasonable notice to the government, the government
will make available to the Secretary and the Comptroller General of
the United States, with the right to inspect, records the Secretary
reasonably requires to review compliance with this chapter or the
Comptroller General of the United States reasonably requires to
review compliance and operations under section 6718(b);
(8) the government will make reports the Secretary reasonably
requires, in addition to the annual reports required under section
6719(b); and
(9) the government will spend the funds only for the purposes
set forth in section 6701(a)(2).
(e) Review by Governors.--A unit of general local government shall
give the chief executive officer of the State in which the government is
located an opportunity for review and comment before establishing
compliance with subsection (d).
(f) Sanctions for Noncompliance.--
(1) In general.--If the Secretary decides that a unit of general
local government has not complied substantially with subsection (d)
or regulations prescribed under subsection (d), the Secretary shall
notify the government. The notice shall state that if the government
does not take corrective action by the 60th day after the date the
government receives the notice, the Secretary will withhold
additional payments to the government for the current payment period
and later payment periods until the Secretary is satisfied that the
government--
(A) has taken the appropriate corrective action; and
(B) will comply with subsection (d) and regulations
prescribed under subsection (d).
(2) Notice.--Before giving notice under paragraph (1), the
Secretary shall give the chief executive officer of the unit of
general local government reasonable notice and an opportunity for
comment.
(3) Payment conditions.--The Secretary may make a payment to a
unit of general local government notified under paragraph (1) only
if the Secretary is satisfied that the government--
(A) has taken the appropriate corrective action; and
(B) will comply with subsection (d) and regulations
prescribed under subsection (d).
(Added Pub. L. 103-322, title III, Sec. 31001(a), Sept. 13, 1994, 108
Stat. 1861; amended Pub. L. 104-316, title I, Sec. 115(j), Oct. 19,
1996, 110 Stat. 3835; Pub. L. 105-277, div. A, Sec. 101(f) [title VIII,
Sec. 405(c)(3), (d)(27), (f)(19)], Oct. 21, 1998, 112 Stat. 2681-337,
2681-417, 2681-424, 2681-432; Pub. L. 107-217, Sec. 3(h)(8), Aug. 21,
2002, 116 Stat. 1300.)
References in Text
The Elementary and Secondary Education Act of 1965, referred to in
subsec. (a)(1), (9), is Pub. L. 89-10, Apr. 11, 1965, 79 Stat. 27, as
amended. Parts A and B of chapter 1 of title I of the Act were
classified generally to parts A (Sec. 2711 et seq.) and B (Sec. 2741 et
seq.) of division 1 of subchapter I of chapter 47 of Title 20,
Education, prior to being omitted in the general amendment of Pub. L.
89-10 by Pub. L. 103-382, title I, Sec. 101, Oct. 20, 1994, 108 Stat.
3519. See part A (Sec. 6311 et seq.) and subpart 3 (Sec. 6381 et seq.)
of part B of subchapter I of chapter 70 of Title 20. Section 5122 of the
Act was classified to section 3192 of Title 20 prior to being omitted in
the general amendment of Pub. L. 89-10 by Pub. L. 103-382. A new section
5122 of the Act, relating to applications for assistance under
educational reform programs, was added by Pub. L. 107-110 and is
classified to section 7213a of Title 20.
Section 682 of the Community Services Block Grant Act, referred to
in subsec. (a)(2), which was classified to section 9910c of Title 42,
The Public Health and Welfare, was omitted in the general amendment of
chapter 106 of Title 42, by Pub. L. 105-285, title II, Sec. 201, Oct.
27, 1998, 112 Stat. 2728. A new section 682 of the Act, containing
similar subject matter, is classified to section 9923 of Title 42.
Public Law 101-509, referred to in subsec. (a)(3), is Pub. L. 101-
509, Nov. 5, 1990, 104 Stat. 1389. For complete classification of this
Act to the Code, see Tables.
The Workforce Investment Act of 1998, referred to in subsec. (a)(4),
is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as amended. Title I of
the Act is classified principally to chapter 30 (Sec. 2801 et seq.) of
Title 29, Labor. For complete classification of this Act to the Code,
see Short Title note set out under section 9201 of Title 20, Education,
and Tables.
The National and Community Service Act of 1990, referred to in
subsec. (a)(5), is Pub. L. 101-610, Nov. 16, 1990, 104 Stat. 3127, as
amended. Subtitle C of title I of the Act is classified generally to
division C (Sec. 12571 et seq.) of subchapter I of chapter 129 of Title
42, The Public Health and Welfare. For complete classification of this
Act to the Code, see Short Title note set out under section 12501 of
Title 42 and Tables.
The School to Work Opportunities Act, referred to in subsec. (a)(6),
probably means the School-to-Work Opportunities Act of 1994, Pub. L.
103-239, May 4, 1994, 108 Stat. 568, which is classified principally to
chapter 69 (Sec. 6101 et seq.) of Title 20, Education. For complete
classification of this Act to the Code, see Short Title note set out
under section 6101 of Title 20 and Tables.
The Public Health Services Act, referred to in subsec. (a)(7),
probably means the Public Health Service Act, act July 1, 1944, ch. 373,
58 Stat. 682, as amended. Titles V and XIX of the Act are classified
generally to subchapters III-A (Sec. 290aa et seq.) and XVII (Sec. 300w
et seq.) of chapter 6A of Title 42, The Public Health and Welfare. For
complete classification of this Act to the Code, see Short Title note
set out under section 201 of Title 42 and Tables.
The Head Start Act, referred to in subsec. (a)(8), is subchapter B
(Secs. 635-657) of chapter 8 of subtitle A of title VI of Pub. L. 97-35,
Aug. 13, 1981, 95 Stat. 499, as amended, which is classified generally
to subchapter II (Sec. 9831 et seq.) of chapter 105 of Title 42. For
complete classification of this Act to the Code, see Short Title note
set out under section 9801 of Title 42 and Tables.
The Higher Education Act of 1965, referred to in subsec. (a)(10), is
Pub. L. 89-329, Nov. 8, 1965, 79 Stat. 1219, as amended. Part A of title
IV of the Act is classified generally to part A (Sec. 1070 et seq.) of
subchapter IV of chapter 28 of Title 20, Education. For complete
classification of this Act to the Code, see Short Title note set out
under section 1001 of Title 20 and Tables.
The National Literacy Act of 1991, referred to in subsec. (a)(11),
was Pub. L. 102-73, July 25, 1991, 105 Stat. 333, as amended, which was
repealed by Pub. L. 105-220, title II, Sec. 251(a)(2), Aug. 7, 1998, 112
Stat. 1079. For complete classification of this Act to the Code, see
Tables.
The Carl Perkins Vocational Educational and Applied Technology
Education Act, referred to in subsec. (a)(12), probably meant the Carl
D. Perkins Vocational and Applied Technology Education Act, Pub. L. 88-
210, Dec. 18, 1963, 77 Stat. 403, as amended, which was classified
generally to chapter 44 (Sec. 2301 et seq.) of Title 20, Education,
prior to being amended generally and renamed the Carl D. Perkins
Vocational and Technical Education Act of 1998 by Pub. L. 105-332,
Sec. 1(b), Oct. 31, 1998, 112 Stat. 3076. For complete classification of
Pub. L. 88-210 to the Code, see Short Title note set out under section
2301 of Title 20 and Tables.
Sections 203 and 401 of the Human Services Reauthorization Act of
1994 (Public Law 103-252), referred to in subsec. (a)(13), (16),
probably mean sections 203 and 401 of the Human Services Amendments of
1994, Pub. L. 103-252, May 18, 1994, 108 Stat. 654, 666. Section 203 of
Pub. L. 103-252 amended section 9910 of Title 42, The Public Health and
Welfare. Section 401 of Pub. L. 103-252 generally amended subchapter III
(Sec. 5116 et seq.) of chapter 67 of Title 42 and repealed sections
5106a-1 and 12339 of Title 42.
The Juvenile Justice and Delinquency Prevention Act, referred to in
subsec. (a)(14), probably means the Juvenile Justice and Delinquency
Prevention Act of 1974, Pub. L. 93-415, Sept. 7, 1974, 88 Stat. 1109, as
amended. Title III of the Act is classified generally to subchapter III
(Sec. 5701 et seq.) of chapter 72 of Title 42, The Public Health and
Welfare. For complete classification of this Act to the Code, see Short
Title note set out under section 5601 of Title 42 and Tables.
The Child Care and Development Block Grant Act, referred to in
subsec. (a)(15), probably means the Child Care and Development Block
Grant Act of 1990, subchapter C (Sec. 658A et seq.) of chapter 8 of
subtitle A of title VI of Pub. L. 97-35, as added by Pub. L. 101-508,
title V, Sec. 5082(2), Nov. 5, 1990, 104 Stat. 1388-236, as amended,
which is classified generally to subchapter II-B (Sec. 9858 et seq.) of
chapter 105 of Title 42, The Public Health and Welfare. For complete
classification of this Act to the Code, see Short Title note set out
under section 9801 of Title 42 and Tables.
The Child Abuse Prevention and Treatment Act Amendments of 1984,
referred to in subsec. (a)(17), probably means the Child Abuse
Amendments of 1984, Pub. L. 98-457, Oct. 9, 1984, 98 Stat. 1749, as
amended. Title III of the Act, relating to family violence programs, is
classified generally to chapter 110 (Sec. 10401 et seq.) of Title 42,
The Public Health and Welfare. For complete classification of this Act
to the Code, see Short Title of 1984 Amendment note set out under
section 5101 of Title 42 and Tables.
Reorganization Plan No. 14 of 1950, referred to in subsec. (d)(5),
is set out in the Appendix to Title 5, Government Organization and
Employees.
The Single Audit Act of 1984, referred to in subsec. (d)(6), is Pub.
L. 98-502, Oct. 19, 1984, 98 Stat. 2327, as amended, which is classified
generally to chapter 75 (Sec. 7501 et seq.) of this title. For complete
classification of this Act to the Code, see Short Title note set out
under section 7501 of this title and Tables.
Prior Provisions
A prior section 6703, Pub. L. 97-258, Sept. 13, 1982, 96 Stat. 1012;
Pub. L. 98-185, Sec. 3, Nov. 30, 1983, 97 Stat. 1309, related to State
and Local Government Fiscal Assistance Trust Fund, prior to repeal by
Pub. L. 99-272, title XIV, Sec. 14001(a)(1), (e), Apr. 7, 1986, 100
Stat. 327, 329, eff. Oct. 18, 1986.
Amendments
2002--Subsec. (d)(5). Pub. L. 107-217 substituted ``sections 3141-
3144, 3146, and 3147 of title 40'' for ``the Act of March 3, 1931
(commonly known as the Davis-Bacon Act); as amended (40 U.S.C. 276a-
276a-5)'' and ``section 3145 of title 40'' for ``section 2 of the Act of
June 1, 1934 (commonly known as the Copeland Anti-Kickback Act), as
amended (40 U.S.C. 276c, 48 Stat. 948)''.
1998--Subsec. (a)(4). Pub. L. 105-277, Sec. 101(f) [title VIII,
Sec. 405(f)(19)], added par. (4) and struck out former par. (4) which
read as follows: ``Programs under title II or IV of the Job Training
Partnership Act or under title I of the Workforce Investment Act of
1998.''
Pub. L. 105-277, Sec. 101(f) [title VIII, Sec. 405(d)(27)], added
par. (4) and struck out former par. (4) which read as follows:
``Programs under title II or IV of the Job Training Partnership Act (29
U.S.C. 1601 et seq.).''
Subsec. (a)(15) to (19). Pub. L. 105-277, Sec. 101(f) [title VIII,
Sec. 405(c)(3)], redesignated pars. (16) to (19) as (15) to (18),
respectively, and struck out former par. (15) which read as follows:
``The family support program under subtitle F of title VII of the
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11481 et seq.).''
1996--Subsec. (d)(6). Pub. L. 104-316 struck out ``after
consultation with the Comptroller General of the United States'' after
``by the Secretary''.
Effective Date of 1998 Amendment
Amendment by section 101(f) [title VIII, Sec. 405(c)(3), (d)(27)] of
Pub. L. 105-277 effective Oct. 21, 1998, and amendment by section 101(f)
[title VIII, Sec. 405(f)(19)] of Pub. L. 105-277 effective July 1, 2000,
see section 101(f) [title VIII, Sec. 405(g)(1), (2)(B)] of Pub. L. 105-
277, set out as a note under section 3502 of Title 5, Government
Organization and Employees.
Section Referred to in Other Sections
This section is referred to in sections 6701, 6717, 6720 of this
title.
