§6907 State Legislation Requiring Reallocation or Redistribution of Payments to Smaller Units of General Purpose Government

Summary

A State can pass a law that says money the federal government would pay to a big local government must be split or sent instead to smaller local governments inside it. To get that money, the smaller governments must be inside the larger one's borders, provide general government services, and have entitlement lands. The split should match how much service each smaller government gives and how many entitlement acres it has. After the State law is passed, the federal official will send one total payment to the State equal to what he would have paid the larger governments. The State must distribute that money within 30 days. The State may not use any of the federal payment to run the redistribution. Money set aside for a fiscal year may also be used to fix underpayments from the prior fiscal year so all qualified recipients are treated fairly.