Page:United States Statutes at Large Volume 108 Part 3.djvu/112

 108 STAT. 1864 PUBLIC LAW 103-322—SEPT. 13, 1994 reasonably requires to review compliance and operations under section 6718(b); Reports. "(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). '^§6704. State area allocations; allocations and payments to territorial governments "(a) FORMULA ALLOCATION BY STATE.— For each payment period, the Secretary shall allocate to each State out of the amount appropriated for the period under the authority of section 6702(b) (minus the amounts allocated to territorial governments under subsection (e) for the payment period) an amount bearing the same ratio to the amount appropriated (minus such amounts allocated under subsection (e)) as the amount allocated to the State under this section bears to the total amount allocated to all States under this section. The Secretary shall— "(1) determine the amount allocated to the State under subsection (b) or (c) of this section and allocate the larger amount to the State; and "(2) allocate the amount allocated to the State to units of general local government in the State under sections 6705 and 6706. " (b) GENERAL FORMULA.— "(1) IN GENERAL.—For the payment period beginning October 1, 1994, the amount allocated to a State under this sub-

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