USE OF FUNDS BY LOCAL GOVERNMENTS FOR PRIORITY EXPENDITURES.

SEC. 103. USE OF FUNDS BY LOCAL GOVERNMENTS FOR PRIORITY EXPENDITURES. (a) In General.— Funds received by units of local government under this subtitle may be used only for priority expenditures. For purposes of this title, the term “priority expenditures” means only— (1) ordinary and necessary maintenance and operating expenses for— (A) public safety (including law enforcement, fire protection, and building code enforcement), (B) environmental protection (including sewage disposal, sanitation, and pollution abatement), (C) public transportation (including transit systems and streets and roads), (D) health, (E) recreation, (F) libraries, (G) social services for the poor or aged, and (H) financial administration; and (2) ordinary and necessary capital expenditures authorized by law. (b) Certificates by Local Governments.— 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 used86 Stat. 920 the funds received by it under this subtitle 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.