being channeled into the State or any of its subdivisions. The title removes any existing requirement that grant funds be kept by the State in a separate bank account. The State shall make regular reports to the Federal agency involved and the agency and the General Accounting Office shall have access to pertinent books hand papers. Federal funds will be transferred to the receiving State in accordance with program needs so as to minimize the time elapsing between the transfer of such funds and their disbursement by the State.

Title III permits Federal agencies to provide specialized and technical services to States or local communities and be reimbursed for the cost of such services. This will make available for a fee techniques and expertise which now repose in the Federal Government but which would be of great benefit to the States and local communities. However, these services must be consistent with the Government's policy of relying on private industry to provide those services which are reasonably and expeditiously available through ordinary business channels.

Title IV is designed to provide coordination on the Federal level of the sometime numerous separate assistance programs and funds which may be focused on a given community by various Federal agencies. These programs, though beneficial to the areas they serve, are frequently duplicating, overlapping and seemingly in conflict with each other. Such administration can create severe confusion and have an ill effect on the recipient local government and its future development. Accordingly, the President is given discretionary authority to establish rules and regulations governing Federal programs and projects to the end that they most effectively serve certain stated objectives considered important to healthful living and orderly community development. The title further requires that all viewpoints and objectives-national, regional, State and local-to the extent possible, be considered when Federal development projects are being planned. Federal aid, to the maximum extent possible. shall be consistent with the objectives of State, regional, and local comprehensive planning. Each Federal department and agency administering a development assistance program must consult with and seek advice from other significantly affected Federal agencies in an effort to assure fully coordinated programs. Insofar as possible. Federal planning shall be coordinated with and made a part of local and areawide development planning. Furthermore, to strengthen local government, Federal agencies in making loans or grants should give preference to units of general local government over specialpurpose units. This title originally applied only to Federal programs in urban areas but was expanded by the committee to include rural areas where many of the same problems in administration of Federal

assistance exist.

Title V provides that in order to promote more harmonious intergovernmental relations the General Services Administration, prior to the disposal of land in urban areas, give notice to the local zoning authority so that the land may be zoned in accord with local comprehensive planning objectives. The GSA shall notify the local zoning authority unless it deems such advance notice will have an adverse impact on the proposed purchase. The GSA is to consider objections made by local governments and, to the extent practicable, comply

BACKGROUND

H.R. 18826 is a clean bill succeeding H.R. 16718. It was introduced by Congressman John A. Blatnik, of Minnesota, chairman of the Subcommittee on Executive and Legislative Reorganization, and joined by all of the members of the subcommittee, including Congresswoman Florence P. Dwyer, of New Jersey, ex officio.

The legislation had its origin in a proposed Intergovernmental Cooperation Act first introduced in the 89th Congress by Congressman L. H. Fountain, of North Carolina, and Mrs. Dwyer, and followed by similar bills by a number of other Members. The present bill contains in substance all but one of the titles included in that earlier measure which resulted from studies of the Subcommittee on Intergovernmental Relations and other bodies.

In the 89th Congress, thorough hearings were held on the legislation by the subcommittee then under the chairmanship of Congressman Chet Holifield, of California.' The subcommittee reached agreement on H.R. 17955, introduced by Congressman Dante B. Fascell, of Florida, but the full committee was unable to act upon it before the end of the session.

In the 90th Congress, draft legislation was submitted to the House and Senate by the Advisory Commission on Intergovernmental Relations similar to the Fascell bill in the 89th. This was introduced by Chairman Blatnik and Congressman John N. Erlenborn, of Illinois, ranking minority member of the subcommittee, and became H.R. 16718. Related bills were also introduced by Congressmen Reuss (Wisconsin), Fascell (Florida), Fountain (North Carolina), Fuqua (Florida), Gonzalez (Texas), Saylor (Pennsylvania), Machen (Maryland), Ullman (Oregon), McCarthy (New York), Rooney (New York), Long (Maryland), and Congresswoman Dwyer (New Jersey).

All of these Members played significant roles in shaping the legislative product here presented.

HEARINGS

Hearings on H.R. 16718, the predecessor bill to H.R. 18826, were held by the Subcommittee on Executive and Legislative Reorganization. Members of Congress, Federal officials, and representatives of interested national organizations were heard. The Secretary of Housing and Urban Development, the Deputy Director of the Bureau of the Budget, the Chairman of the Advisory Commission on Intergovernmental Relations, and the Assistant Secretary of Health, Education, and Welfare testified on behalf of the Federal Government. The Governor of Utah testified for the National Governors' Conference and the mayor of Syracuse spoke for the National League of Cities and the U.S. Conference of Mayors. Many communications were received from leaders of government and civic organizations in various parts of the country.

All witnesses and correspondents favored the bill.

1 Hearings before the Subcommittee on Executive and Legislative Reorganization of the House Committee on Government Operations on H.R. 17955, Mar. 1, 2, 8, 9; Oct. 5 and 18, 1966.

2 Hearings before the Subcommittee on Executive and Legislative Reorganization of the House Committee on Government Operations on II. R. 16718 and related bills, June 12 and 13, 1968.

SECTION-BY-SECTION ANALYSIS

TITLE I-DEFINITIONS

This title contains the definition of 10 terms that are used frequently throughout the other titles.

Section 101 defines the term "Federal agency" as any department. agency, or instrumentality in the executive branch of the Govern ment and any wholly owned Federal Government corporation.

Section 102 defines "State" as it is usually found in most Federal statutes, with the exception that it does not include the governments of the political subdivisions of the State.

Section 103 provides an identical definition for the terms "political subdivision" and "local governments." This definition includes those jurisdictional units listed by the Bureau of the Census as political subdivisions of a State.

Section 104 defines a "unit of general local government"

city, county, town, parish, village, or other general-purpose political subdivision of a State." This definition is based on the Census Bureau's treatment of the term.

Section 105 defines "special-purpose unit of local government" as "any special district, public-purpose corporation, or other strictly limited-purpose political subdivision of a State, but shall not include à school district."

Section 106 provides an identical definition for the terms "grant“ and "grant-in-aid" as "money, or property provided in lieu of money, paid or furnished by the United States under a fixed annual or aggregate authorization (A) to a State; or (B) to a political subdivision of a State; or (C) to a beneficiary under a plan or program which is subject to approval by a Federal agency; if such authorization either (i) requires the States or political subdivisions to expend non-Federal funds as a condition for the receipt of money or property from the United States; or (ii) specifies directly, or establishes by means of a formula, the amounts which may be paid or furnished to States or political subdivisions, or the amounts to be allotted for use in each of the States by the States, political subdivisions, or other beneficiaries." Certain categories of payments, however, are specifically excluded. Section 107 specifies that the term "Federal financial assistance" does not include any annual payment by the United States to the District of Columbia authorized by article VI of the District of Columbia Revenue Act of 1947.

Section 108 defines "specialized or technical services" as statistical and other studies and compilations among other service functions that State and local governments might be able to utilize under the provisions of title III.

Section 109 contains a definition of "comprehensive planning” which is basically the same as that found in section 701(d) of the Housing Act of 1954, as amended, which contains its own definitions.

Section 110 specifies that the terms "head of a Federal agency" or "head of a State agency" include a duly designated delegate of such agency head.

TITLE II-IMPROVED ADMINISTRATION OF GRANTS-IN-AID TO THE STATES

Section 201 provides that the Governor (or some other State officer designated by him) and the State legislature will be informed by the Federal department or agency administering a grant program, upon request, of the purposes and amounts of actual grants-in-aid to the State or to any of its political subdivisions.

Section 202 provides that no Federal law or administrative regulation shall require any State to deposit grant-in-aid funds in a separate bank account apart from other funds administered by the State. The development of modern accounting methods renders separate bank accounts unnecessary. Federal funds shall be so accounted for in the accounts of the State. The State agency shall make regular reports to the appropriate Federal agency covering the status and application of the funds, the liabilities and other obligations on hand, and any other facts that may be necessary, and the head of the Federal agency and the Comptroller General of the United States, or a duly appointed representative thereof, shall have access for the purpose of audit and examination to any books, documents, papers, and records that pertain to the grants-in-aid received by the States.

Section 203 requires Federal agencies to schedule the transfer of grant funds to the States in a manner that reduces to a minimum the time between such transfer and the disbursements of the funds by the State. Thus, Federal funds will be retained by the U.S. Treasury until actually needed by the State for the payment of obligations incurred under the particular grant program.

Section 204 authorizes Federal departments and agencies to waive any requirements for a single State agency or multimember board or commission. The departments and agencies may act upon the request of the Governor or other appropriate executive or legislative authority of the State responsible for determining or revising the organizational structure of State government. In place of current requirements, heads of Federal departments and agencies may approve other forms of administrative organization. Such action is contingent on a determination, by the head of the Federal agency or department concerned, that the objectives of the Federal statute authorizing the grant-in-aid program will not be endangered by the use of any alternative State structure or arrangement. The intent of this section is to allow States to reorganize their structure of government in order to permit integration of State agencies and functions; the goal is greater flexibility, to permit more efficient and practical State governmental administration. It is not the intent of this act to permit State reorganizations that would fragment the administration of any federally aided program.

TITLE III-PERMITTING FEDERAL DEPARTMENTS AND AGENCIES TO PROVIDE SPECIAL OR TECHNICAL SERVICES TO STATE AND LOCAL UNITS OF GOVERNMENT

This title is designed to permit Federal departments and agencies to provide specialized or technical services to State and local units of government on a reimbursable basis.

Section 301 states that the purposes of this title are (1) to encourage intergovernmental cooperation in the conduct of specialized and

technical services, and provision of facilities essential to the administration of State or local governmental activities, many of which are nationwide in scope and financed in part by Federal funds; (2) to enable State and local governments to avoid unnecessary duplication of special service functions; and (3) to authorize Federal departments and agencies to provide such services on a reimbursable basis. A number of Federal departments already provide specialized services to State and local governments on a reimbursable basis, including the Bureau of the Census, the Weather Bureau, the Bureau of Reclamation, and the Internal Revenue Service. This title would extend, on a Government-wide basis, the principle embodied in these specific cases.

Section 302 provides the authority to Federal agencies to make available specialized or technical services on written request from a State or local government. The requesting governments will pay for the personnel services and all other identifiable direct or indirect expenditures of the Federal department or agency for performing the services. Agencies will be permitted, but not required, to provide the requested service. The services authorized by this title, however shall include only those which the Director of the Bureau of the Budget through rules and regulations determines Federal departments and agencies have special competence to provide.

The Federal Government, however, unless clearly authorized by statute, will not be placed in direct competition with private businesses which are normally capable of performing the needed services.

Section 303 provides that any payments received for specialized or technical services shall be deposited to miscellaneous receipts of the Treasury rather than to the appropriation of the Federal agency.

Section 304 calls for an annual report, in summary form, of the scope of the services provided under this title. The reports will be submitted to the Committees on Government Operations of the Senate and House of Representatives.

Section 305 reserves the existing authority now possessed by any Federal department or agency with respect to furnishing specialized services to State and local governments. It is not the intention of this title to alter any current provisions for the rendering of such services, whether they are currently provided on a reimbursable or nonreimbursable basis.

TITLE IV-COORDINATED INTERGOVERNMENTAL POLICY AND ADMINISTRATION OF DEVELOPMENT ASSISTANCE PROGRAMS

Section 401(a) sets forth a policy recognizing the importance of the sound and orderly development of all areas within the Nation, both urban and rural. To effectuate the policy the President is given the discretion to establish rules and regulations to be followed by Federal agencies governing the formulation, evaluation, and review of Federal programs and projects having a significant impact on area and community development.

The rules and regulations which the President may promulgate shall provide for full consideration of the concurrent achievement of certain specified objectives and, to the extent authorized by law, reasoned choices shall be made between such objectives when they conflict. The stated objectives are: (1) Appropriate land uses for housing, com