12 USC 5703 - Approving States for participation

U.S Code last checked for updates: Nov 22, 2024

§ 5703.

Approving States for participation

(a)

Application

(b)

General approval criteria

The Secretary shall approve a State to be a participating State, if—

(1)

a specific department, agency, or political subdivision of the State has been designated to implement a State program and participate in the Program;

(2)

all legal actions necessary to enable such designated department, agency, or political subdivision to implement a State program and participate in the Program have been accomplished;

(3)

the State has filed an application with the Secretary for approval of a State capital access program under section 5704 of this title or approval as a State other credit support program under section 5705 of this title, in each case within the time period provided in the respective section; and

(4)

the State and the Secretary have executed an allocation agreement that—

(A)

conforms to the requirements of this chapter;

(B)

ensures that the State program complies with such national standards as are established by the Secretary under section 5708(a)(2) of this title;

(C)

sets forth internal control, compliance, and reporting requirements as established by the Secretary, and such other terms and conditions necessary to carry out the purposes of this chapter, including an agreement by the State to allow the Secretary to audit State programs;

(D)

requires that the State program be fully positioned, within 90 days of the State’s execution of the allocation agreement with the Secretary, to act on providing the kind of credit support that the State program was established to provide; and

(E)

includes an agreement by the State to deliver to the Secretary, and update annually, a schedule describing how the State intends to apportion among its State programs the Federal funds allocated to the State.

(c)

Contractual arrangements for implementation of State programs

A State may be approved to be a participating State, and be eligible for an allocation of Federal funds under the Program, if the State has contractual arrangements for the implementation and administration of its State program with—

(1)

an existing, approved State program administered by another State; or

(2)

an authorized agent of, or entity supervised by, the State, including for-profit and not-for-profit entities.

(d)

Special permission

(1)

Circumstances when a municipality may apply directly

(2)

Timing requirements applicable to municipalities applying directly

(3)

Notices of intent and applications from more than 1 municipality

(4)

Approval criteria

(5)

Allocation to municipalities

(A)

If more than 3

(B)

If 3 or fewer

(6)

Apportionment of allocated amount among participating municipalities

(7)

Approving State programs for municipalities

(Pub. L. 111–240, title III, § 3004, Sept. 27, 2010, 124 Stat. 2573; Pub. L. 117–2, title III, § 3301(a)(1)(B), Mar. 11, 2021, 135 Stat. 69.)

cite as: 12 USC 5703