QUALIFICATION FOR PAYMENT.

SEC. 30203. QUALIFICATION FOR PAYMENT. (a) In General.— The Attorney General shall issue regulations establishing procedures under which eligible units of general local government are required to provide notice to the Attorney General of the units’ proposed use of assistance under this subtitle. (b) General Requirements for Qualification.— A unit of general local government Qualifies for a payment under this subtitle for a payment period only after establishing to the satisfaction of the Attorney General that— (1) the government will establish a trust fund in which the government will deposit all payments received under this subtitle; (2) the government will use amounts in the trust fund (including interest) during a reasonable period; (3) the government will expend the payments so received, in accordance with the laws and procedures that are applicable to the expenditure of revenues of the government; (4) if at least 25 percent of the pay of individuals employed by the government in a public employee occupation is paid out of the trust fund, individuals in the occupation any part of whose pay is paid out of the trust fund will receive pay at least equal to the prevailing rate of pay for individuals employed in similar public employee occupations by the government; (5) the government will use accounting, audit, and fiscal procedures that conform to guidelines which shall be prescribed by the Attorney General after consultation with the Comptroller 108 STAT. 1842General of the United States. As applicable, amounts received under this subtitle shall be audited in compliance with the Single Audit Act of 1984; (6) after reasonable notice to the government, the government will make available to the Attorney General and the Comptroller General of the United States, with the right to inspect, records the Attorney General reasonably requires to review compliance with this subtitle or the Comptroller General of the United States reasonably requires to review compliance and operations; (7) the government will make reports the Attorney General reasonably requires, in addition to the annual reports required under this subtitle; and (8) the government will spend the funds only for the purposes set forth in section 30201(a)(2). (c) 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). (d) Sanctions for Noncompliance.— (1) In general.— If the Attorney General decides that a unit of general local government has not complied substantially with subsection (b) or regulations prescribed under subsection (b), the Attorney General 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 Attorney General will withhold additional payments to the government for the current payment period and later payment periods until the Attorney General is satisfied that the government— (A) has taken the appropriate corrective action; and (B) will comply with subsection (b) and regulations prescribed under subsection (b). (2) Notice.— Before giving notice under paragraph (1), the Attorney General shall give the chief executive officer of the unit of general local government reasonable notice and an opportunity for comment. (3) Payment conditions.— The Attorney General may make a payment to a unit of general local government notified under paragraph (1) only if the Attorney General is satisfied that the government— (A) has taken the appropriate corrective action; and (B) will comply with subsection (b) and regulations prescribed under subsection (b).