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Federal Register / Vol. 86, No. 93 / Monday, May 17, 2021 / Rules and Regulations
ii The amount of funds received by such recipient.
c Notice. If Treasury calculates an amount subject to recoupment under paragraph b of this section, Treasury will provide the recipient a written notice of the amount subject to recoupment along with an explanation of such amounts.
d Request for reconsideration.
Unless Treasury extends the time period, within 60 calendar days of receipt of a notice of recoupment provided under paragraph c of this section, a recipient may submit a written request to Treasury requesting reconsideration of any amounts subject to recoupment under paragraph b of this section. To request reconsideration of any amounts subject to recoupment, a recipient must submit to Treasury a written request that includes:
1 An explanation of why the recipient believes all or some of the amount should not be subject to recoupment; and 2 A discussion of supporting reasons, along with any additional information.
e Final amount subject to recoupment. Unless Treasury extends the time period, within 60 calendar days of receipt of the recipients request for reconsideration provided pursuant to paragraph d of this section, the recipient will be notified of the Secretarys decision to affirm, withdraw, or modify the notice of recoupment.
Such notification will include an explanation of the decision, including responses to the recipients supporting reasons and consideration of additional information provided.
f Repayment of funds. Unless Treasury extends the time period, a recipient shall repay to the Secretary any amounts subject to recoupment in accordance with instructions provided by Treasury:
1 Within 120 calendar days of receipt of the notice of recoupment provided under paragraph c of this section, in the case of a recipient that does not submit a request for reconsideration in accordance with the
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requirements of paragraph d of this section; or 2 Within 120 calendar days of receipt of the Secretarys decision under paragraph e of this section, in the case of a recipient that submits a request for reconsideration in accordance with the requirements of paragraph d of this section.
35.11

Payments to States.

a In general. With respect to any State or Territory that has an unemployment rate as of the date that it submits an initial certification for payment of funds pursuant to section 602d1 of the Social Security Act that is less than two percentage points above its unemployment rate in February 2020, the Secretary will withhold 50
percent of the amount of funds allocated under section 602b of the Social Security Act to such State or territory until the date that is twelve months from the date such initial certification is provided to the Secretary.
b Payment of withheld amount. In order to receive the amount withheld under paragraph a of this section, the State or Territory must submit to the Secretary at least 30 days prior to the date referenced in paragraph a the following information:
1 A certification, in the form provided by the Secretary, that such State or Territory requires the payment to carry out the activities specified in section 602c of the Social Security Act and will use the payment in compliance with section 602c of the Social Security Act; and, 2 Any reports required to be filed by that date pursuant to this subpart that have not yet been filed.
35.12 Distributions to nonentitlement units of local government and units of general local government.

a Nonentitlement units of local government. Each State or Territory that receives a payment from Treasury pursuant to section 603b2B of the Social Security Act shall distribute the amount of the payment to nonentitlement units of government in such State or Territory in accordance
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with the requirements set forth in section 603b2C of the Social Security Act and without offsetting any debt owed by such nonentitlement units of local governments against such payments.
b Budget cap. A State or Territory may not make a payment to a nonentitlement unit of local government pursuant to section 603b2C of the Social Security Act and paragraph a of this section in excess of the amount equal to 75 percent of the most recent budget for the nonentitlement unit of local government as of January 27, 2020.
A State or Territory shall permit a nonentitlement unit of local government without a formal budget as of January 27, 2020, to provide a certification from an authorized officer of the nonentitlement unit of local government of its most recent annual expenditures as of January 27, 2020, and a State or Territory may rely on such certification for purposes of complying with this paragraph b.
c Units of general local government.
Each State or Territory that receives a payment from Treasury pursuant to section 603b3Bii of the Social Security Act, in the case of an amount to be paid to a county that is not a unit of general local government, shall distribute the amount of the payment to units of general local government within such county in accordance with the requirements set forth in section 603b3Bii of the Social Security Act and without offsetting any debt owed by such units of general local government against such payments.
d Additional conditions. A State or Territory may not place additional conditions or requirements on distributions to nonentitlement units of local government or units of general local government beyond those required by section 603 of the Social Security Act or this subpart.
Laurie Schaffer, Acting General Counsel.
FR Doc. 202110283 Filed 51321; 11:15 am BILLING CODE 4810AKP

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