90 STAT. 2344
PUBLIC LAW 94-488—OCT. 13, 1976 SEC. 6. SPECIAL ENTITLEMENT RULES. (a)
31 USC 1226.
STATE M A I N T E N A N C E OF TRANSFERS TO LOCAL GOVERNMENTS.—
(1) Paragraph (1) of section 107(b) (relating to general rule for State maintenance of transfers to local governments) is amended to read as follows: " (1) GENERAL RULE.— " (A) P R E - 1977 ENTITLEMENT PERIODS.—The entitlement of
any State government for any entitlement period beginning on or after July 1, 1973, and before December 31, 1976, shall be reduced by the amount (if any) by which— " (i) the average of the aggregate amounts transferred by the State government (out of its own sources) during such period and the preceding entitlement period to all units of local government in such State, i s less than, " ( i i) the similar aggregate amount for the one-year period beginning July 1, 1971. " (B) POST- 19 7 e ENTITLEMENT PERIODS.—The entitlement of
any State government for any entitlement period beginning on or after January 1, 1977, shall be reduced by the amount (if any) by which— " (i) one-half of the aggregate amounts transferred by the State government ( o u t of its own sources) during the 24-month period ending on the last d a y of the last fiscal year of such State for which the relevant data are availaljle ( i n accordance with regulations prescribed by the Secretary) on the first day of such entitlement period, to all units of local government in such State, is less than, " ( i i) one-half of the similar aggregate amount for the 24-month period ending on the day before the start of the 24-month period described in clause (i). " (C) For purposes of subparagraphs (A)(i) and (B)(i), the amount of any reduction in the entitlement of a State government under this subsection for any entitlement period shall, for subsequent entitlement periods, be treated as an amount transferred by the State government (out of its own sources) during such period to units of local government in such State.". (2) Section 1 0 7 (b)(2) (relating to adjustment where State assumes responsibility for category of expenditures) is amended— (A) by striking out "under paragraph (1)(B) " and inserting i n lieu thereof "under paragraph (l)(A) ( i i) or (l)(B)(ii)";and (B) by striking out "the one-year period beginning July 1, 1971," and inserting in lieu thereof "the period utilized for purposes of such paragraph ". (3) Section 107(b)(3) (relating to adjustments i n the case of new taxing powers) is amended by striking out " paragraph (1)(B) " and inserting in lieu thereof " paragraph (1)(A) (ii) (in the case of an entitlement period beginning before December 31, 1976) or paragraph (1)(B) (ii) (in the case of a n entitlement period beginning on or after January 1, 1977)". (4) Section 107(b) (relating to State maintenance of support to local governments) is amended by redesignating paragraph s (6) and (7) as paragraph s (8) and (9), respectively, and by inserting after paragraph (5) the following new paragraph s: " (6) SPECIAL RULE FOR THE PERIOD BEGINNING JANUARY 1, 1977.—
I n the case of the entitlement period beginning January 1, 1977, and ending September 30, 1977, the aggregate amounts taken into
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