§7113 Transition Payments to States

Summary

For fiscal years 2008, 2009, and 2010, the Secretary of the Treasury must pay each covered State and its eligible counties an "adjusted amount" instead of the usual payment. The covered States are California, Louisiana, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, and Washington. The adjusted amount is a percentage of the total money those eligible counties received in fiscal year 2006 under federal payment rules: 90% for 2008, 81% for 2009, and 73% for 2010. For Oregon, the calculation uses the county payments from the same 2006 rules. The 2006 rules cited are sections 102(a)(2) and 103(a)(2) as they stood on September 29, 2006, and only apply to counties that chose under section 7112(b) to get a share. The law says the money paid in 2008–2010 should be split among counties the same way it was split in 2006, unless another rule applies. For California, the payments under this rule and California’s county shares of state payments for fiscal years 2011–2015 and 2017–2026 must be divided among its eligible counties in the same proportions as in fiscal year 2006. Any payment made this way is treated as a payment under section 7112(a).