S. 2014: Special District Fairness and Accessibility Act

The Special District Fairness and Accessibility Act aims to clarify the status of special districts in relation to receiving federal financial assistance. Here’s a summary of its key provisions:

Definitions

• Special District: A political subdivision created by state law with defined boundaries and the ability to manage its budget. It performs specific governmental functions that are distinct from other local government units.
• Federal Financial Assistance: This includes various forms of non-repayable support such as grants, loans, or property provided to non-federal entities, but excludes amounts received for services rendered.

Requirements for Federal Agencies

1. Issuance of Guidance: The Director of the Office of Management and Budget (OMB) is required to issue guidance within 180 days of the bill's enactment. This guidance will detail how federal agencies should recognize special districts as units of local government for the purposes of eligibility for federal financial assistance.
2. Agency Implementation: Federal agencies must adopt the OMB’s guidance and adjust their policies and procedures accordingly within one year of the guidance being issued.
3. Evaluation Report: Within two years of the bill's enactment, the OMB Director must submit a report to specified congressional committees, evaluating how well federal agencies have implemented and conformed to the guidance regarding special districts.

Impact on Special Districts

The act aims to reduce ambiguity about the eligibility of special districts for federal funding. By formally recognizing special districts as units of local government, the bill seeks to ensure that these entities can access financial resources available to local governments under federal programs.

Timeline

• 180 days: OMB must issue guidance.
• 1 year: Federal agencies must implement the guidance.
• 2 years: OMB must submit an implementation report to Congress.

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