PUBLIC LAW 94-488—OCT. 13, 1976
90 STAT. 2347
(2) Section 1 0 9 (c)(2)(B) (defining "most recent reporting 31 USC 1228,. year") is amended by striking out "made before the close of such period." and inserting in lieu thereof "made before the beginning of such period.". (e) L I M I T A T I O N ON ADJUSTMENT OF P A Y M E N T S. — S e c t i o n 102 (relat-
31 USC 1221,
i n g to payments to State and local governments) is amended— (1) by striking out " E x c e p t " and inserting in lieu thereof " (a) IN GENERAL.—Except"; and
(2) a d d i n g a t the end thereof the following new subsection: " (b) LIMITATIONS ON ADJUSTMENTS. — N o adjustment shall be m a d e
to increase or decrease a payment made for any entitlement period beginning after December 31, 1976, to a State government or a unit of local government, unless a demand therefor shall have been made by such government or the Secretary within 1 year of the end of the entitlement period with respect to which the payment was made.". (f)
RESERVES FOR ADJUSTMENTS.—Section 102 ( r e l a t i n g to p a y -
ments to State and local governments), as amended by subsection (e), is amended by adding at the end thereof the following subsection: " (c) RESERVES FOR ADJUSTMENTS. — The Secretary may reserve such
percentage (not exceeding 0.5 percent) of the total entitlement payment for any entitlement period with respect to any State government and all units of local government within such State as he deems necessary to insure that there will be sufficient funds available to p a y adjustments due after the final allocation of funds among such governments.". (g) RECOVERY OF CERTAIN OVERPAYMENTS.—In the case of an adjust-
ment to decrease a payment made for an entitlement period ending before January 1, 1977, under title I of the State and Local Fiscal Assistance Act of 1972 to a unit of local government (as defined in section 108(d)(1) of that Act), the amount of such adjustment shall be withheld from the reserves for adjustments established by the Secretary under section 102(c) of such Act for the State within which such units of local government are located. Amounts withheld under this subsection shall be covered into the State and Local Government Fiscal Assistance T r u s t F u n d. SEC. 7. CITIZEN PARTICIPATION; REPORTS, ENFORCEMENTS. (a) CITIZENS PARTICIPATION.—Section 121 ( r e l a t i n g to reports on
31 USC 1221
note, 31 USC 1221. 31 USC 1227. Supm.
31 USC 1241.
use of funds and publication of reports) is amended to read as followS(: '5 «SEC. 121. REPORT ON USE OF FUNDS; PUBLICATION AND PUBLIC HEARINGS. " (a) REPORTS ON U S E OF F U N D S. — E a c h State government and unit Report to of local government which receives funds under subtitle A shall, after Secretary of the the close of each fiscal year, submit a report to the Secretary (which Treasury, report shall be available to the public for inspection) setting forth the amounts and purposes for which funds received under subtitle A have been appropriated, spent, or obligated during such period and showing the relationship of those funds to the relevant functional items in the government's budget. Such report shall identify differences between the actual use of funds received and the proposed use of such funds. Such reports shall be in such form and detail and shall be submitted at such time as the Secretary may prescribe. "(b)
P U B L I C HEARINGS REQUIRED.— " (1) H E A R I N G ON PROPOSED USE.—Not less than 7 calendar d a y s
before its budget is presented to the governmental body responsible for enacting the budget, each State government or unit of local government which expends funds received under subtitle A
Notice,
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