INTERAGENCY AGREEMENTS.

SEC. 802. INTERAGENCY AGREEMENTS. Section 206(b) of the State Justice Institute Act of 1984 (42 U.S.C. 10705(b)) is amended— 106 STAT. 4516 (1) in paragraph (1)— (A) by striking “shall give priority to grants, cooperative agreements, or contracts” and inserting “may award grants to or enter into cooperative agreements or contracts”; and (B) in subparagraph (A) by striking the comma and inserting a semicolon; (2) in paragraph (2) by inserting “to” after “award grants”; (3) by striking paragraph (3) and inserting the following: “(3) Upon application by an appropriate State or local agency or institution and if the arrangements to be made by such agency or institution will provide services which could not be provided adequately through nongovernmental arrangements, the Institute may award a grant or enter into a cooperative agreement or contract with a unit of State or local government other than a court.”; (4) by redesignating paragraph (4) as paragraph (5); and (5) by inserting after paragraph (3) the following new paragraph: “(4) The Institute may enter into contracts with Federal agencies to carry out the purposes of this title.”.