Agency financial assistance guidance on special districts

(a) Requirements for agency acknowledgment of special districts as grant recipients (1) OMB guidance Not later than 180 days after the date of the enactment of this Act, the Director shall issue guidance that clarifies how an agency recognizes a special district as a unit of local government for the purpose of being eligible to receive Federal financial assistance. (2) Agency requirements Not later than 1 year after the date on which the guidance is issued pursuant to paragraph (1), the head of each agency shall implement the requirements of such guidance and conform any policy, principle, practice, procedure, or guideline relating to the administration of the Federal financial assistance programs of the agency. (3) Reporting requirement Not later than 2 years after the date of the enactment of this Act, the Director shall submit to the Committee on Oversight and Government Reform of the House of Representatives and the Committee on Homeland Security and Governmental Affairs of the Senate a report that evaluates agency implementation of and conformity to the guidance issued pursuant to paragraph (1). (b) Definitions In this section: (1) Agency The term agency has the meaning given the term in section 552 of title 5, United States Code. (2) Director The term Director means the Director of the Office of Management and Budget. (3) Federal financial assistance The term Federal financial assistance — (A) means assistance that a non-Federal entity receives or administers in the form of a grant, loan, loan guarantee, property, cooperative agreement, interest subsidy, insurance, food commodity, direct appropriation, or other assistance; and (B) does not include an amount received as reimbursement for services rendered to an individual in accordance with guidance issued by the Director. (4) Special district The term special district means a political subdivision of a State, with specified boundaries and significant budgetary autonomy or control, created by or pursuant to the laws of the State, for the purpose of performing limited and specific governmental or proprietary functions that distinguish it as a significantly separate entity from the administrative governance structure of any other form of local government unit within a State. (5) State The term State means each of the several States, the District of Columbia, each commonwealth, territory, or possession of the United States, and each federally recognized Indian Tribe.