Page:United States Statutes at Large Volume 104 Part 2.djvu/79

 PUBLIC LAW 101-453—OCT. 24, 1990 104 STAT. 1059 "(2) shall not be paid from amounts available for funding programs of an executive agency.". (b) CLERICAL AMENDMENT.— The chapter analysis for chapter 33 of title 31, United States Code, is amended by inserting after the item relating to section 3334 the following: "3335. Timely disbursement of Federal funds.". (c) REGULATIONS.—The Secretary of the Treasury shall prescribe 31 USC 3335 regulations under section 3335 of title 31, United States Code, as "°*®- added by subsection (a), to ensure the full implementation of that section by the date which is 2 years after the date of the enactment of this Act. SEC. 5. PAYMENT OF INTEREST. (a) DEFINITION OF STATE.— Section 6501 of title 31, United States Code, is amended— (1) by redesignating paragraphs (7), (8), and (9) as paragraphs (8), (9), and (10), respectively; (2) by inserting after paragraph (6) the following new paragraph: "(7) 'Secretary' means the Secretary of the Treasury."; and (3) by striking out paragraph (9) (as redesignated by paragraph (D) and inserting in lieu thereof the following: "(9) 'State' means a State of the United States, the District of Columbia, a territory or possession of the United States, and an agency, instrumentality, or fiscal agent of a State but does not mean a local government of a State.". (b) INTERGOVERNMENTAL TRANSFERS OF FUNDS; PAYMENT OF IN- TEREST.— Section 6503 of title 31, United States Code, is amended to read as follows: "§ 6503. Intergovernmental Hnancing "(a) Consistent with program purposes and with regulations of the Secretary, and in accordance with an agreement under subsection (b) entered into by the Secretary and a State— "(1) the head of an executive agency (other than the Tennessee Valley Authority) carrying out a program shall schedule transfers of funds to the State under the program so as to minimize the time elapsing between transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payments by other means by a State; and "(2) the State shall minimize the time elapsing between transfer of funds from the United States Treasury and the issuance or redemption of checks, warrants, or payments by other means for prc^ram purposes. "(b)(l) The Secretary shall enter into an agreement with each Government State to which transfers of funds are made, which establishes proce- contracts, dures and requirements for implementing this section. "(2) An agreement under this subsection shall— "(A) specify procedures chosen by the State for carrsdng out transfers of funds under the agreement; "(B) describe the process by which the Federal Government shall review and approve the implementation of the procedures specified under subparagraph (A); "(C) establish the methods to be used for calculating and documenting payments of interest pursuant to this section; and

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