42 U.S.C. § 6705

Limitations on use of grants

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(a) Projects relating to natural watercourse or canals

No grant shall be made under section 6702, 6703, or 6704 of this title for any project having as its principal purpose the channelization, damming, diversion, or dredging of any natural watercourse, or the construction or enlargement of any canal (other than a canal or raceway designated for maintenance as an historic site) and having as its permanent effect the channelization, damming, diversion, or dredging of such watercourse or construction or enlargement of any canal (other than a canal or raceway designated for maintenance as an historic site).

(b) Acquisition of interest in real property

No part of any grant made under section 6702, 6703, or 6704 of this title shall be used for the acquisition of any interest in real property.

Nothing in this chapter shall be construed to authorize the payment of maintenance costs in connection with any projects constructed (in whole or in part) with Federal financial assistance under this chapter.

(d) Commencement of on-site labor within 90 days of project approval as prerequisite

Grants made by the Secretary under this chapter shall be made only for projects for which the applicant gives satisfactory assurances, in such manner and form as may be required by the Secretary and in accordance with such terms and conditions as the Secretary may prescribe, that, if funds are available, on-site labor can begin within ninety days of project approval.

(e) Performance of projects by State or local governments prohibited; competitive bidding; illegal aliens(1) No part of the construction (including demolition and other site preparation activities), renovation, repair, or other improvement of any public works project for which a grant is made under this chapter after May 13, 1977, shall be performed directly by any department, agency, or instrumentality of any State or local government. Construction of each such project shall be performed by contract awarded by competitive bidding, unless the Secretary shall affirmatively find that, under the circumstances relating to such project, some other method is in the public interest. Contracts for the construction of each project shall be awarded only on the basis of the lowest responsive bid submitted by a bidder meeting established criteria of responsibility. No requirement or obligation shall be imposed as a condition precedent to the award of a contract to such bidder for a project, or to the Secretary’s concurrence in the award of a contract to such bidder, unless such requirement or obligation is otherwise lawful and is specifically set forth in the advertised specifications.(2) No grant shall be made under this chapter for any local public works project unless the State or local government applying for such grant submits with its application a certification acceptable to the Secretary that no contract will be awarded in connection with such project to any bidder who will employ on such project any alien in the United States in violation of the Immigration and Nationality Act [8 U.S.C. 1101 et seq.] or any other law, convention, or treaty of the United States relating to the immigration, exclusion, deportation, or expulsion of aliens.(f) Use of products made in United States; minority business enterprises(1)(A) Notwithstanding any other provision of law, no grant shall be made under this chapter for any local public works project unless only such unmanufactured articles, materials, and supplies as have been mined or produced in the United States, and only such manufactured articles, materials, and supplies as have been manufactured in the United States substantially all from articles, materials, and supplies mined, produced, or manufactured, as the case may be, in the United States, will be used in such project.(B) Subparagraph (A) of this paragraph shall not apply in any case where the Secretary determines it to be inconsistent with the public interest, or the cost to be unreasonable, or if articles, materials, or supplies of the class or kind to be used or the articles, materials, or supplies from which they are manufactured are not mined, produced, or manufactured, as the case may be, in the United States in sufficient and reasonably available commercial quantities and of a satisfactory quality.(2) Except to the extent that the Secretary determines otherwise, no grant shall be made under this chapter for any local public works project unless the applicant gives satisfactory assurance to the Secretary that at least 10 per centum of the amount of each grant shall be expended for minority business enterprises. For purposes of this paragraph, the term “minority business enterprise” means a business at least 50 per centum of which is owned by minority group members or, in case of a publicly owned business, at least 51 per centum of the stock of which is owned by minority group members. For the purposes of the preceding sentence, minority group members are citizens of the United States who are Asian American, Native Hawaiian, Pacific Islanders, African American, Hispanic, Native American, or Alaska Natives.(g) Accessibility standards for handicapped and elderly

No grant shall be made under this chapter for any project for which the applicant does not give assurances satisfactory to the Secretary that the project will be designed and constructed in accordance with the standards for accessibility for public buildings and facilities to the handicapped and elderly under the Act entitled “An Act to insure that certain buildings financed with Federal funds are so designed and constructed as to be accessible to the physically handicapped”, approved August 12, 1968 (42 U.S.C. 4151 et seq.). The Architectural and Transportation Barriers Compliance Board established by the Rehabilitation Act of 1973 (P.L. 93–112) [29 U.S.C. 701 et seq.] is authorized to insure that any construction and renovation done pursuant to any grant made under this chapter complies with the accessibility standards for public bunldings 11 So in original. Probably should be “buildings”. and facilities issued under the Act of August 12, 1968.

(Pub. L. 94–369, title I, § 106, July 22, 1976, 90 Stat. 1000; Pub. L. 95–28, title I, § 103, May 13, 1977, 91 Stat. 116; Pub. L. 114–157, § 1(b), May 20, 2016, 130 Stat. 393.)Editorial NotesReferences in Text

The Immigration and Nationality Act, referred to in subsec. (e)(2), is act June 27, 1952, ch. 477, 66 Stat. 163, which is classified principally to chapter 12 (§ 1101 et seq.) of Title 8, Aliens and Nationality. For complete classification of this Act to the Code, see Short Title note set out under section 1101 of Title 8 and Tables.

Act of August 12, 1968, entitled “An Act to insure that certain buildings financed with Federal funds are so designed and constructed as to be accessible to the physically handicapped”, referred to in subsec. (g), is Pub. L. 90–480, Aug. 12, 1968, 82 Stat. 718, popularly known as the Architectural Barriers Act of 1968, which is classified generally to chapter 51 (§ 4151 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4151 of this title and Tables.

The Rehabilitation Act of 1973, referred to in subsec. (g), is Pub. L. 93–112, Sept. 26, 1973, 87 Stat. 355, which is classified generally to chapter 16 (§ 701 et seq.) of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 701 of Title 29 and Tables.

Amendments

2016—Subsec. (f)(2). Pub. L. 114–157 substituted “Asian American, Native Hawaiian, Pacific Islanders, African American, Hispanic, Native American, or Alaska Natives” for “Negroes, Spanish-speaking, Orientals, Indians, Eskimos, and Aleuts”.

1977—Subsecs. (e) to (g). Pub. L. 95–28 added subsecs. (e) to (g).

Notes of Decisions

Cited in 52 cases, 1977–2016 · leading case: Fullilove v. Klutznick

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Fullilove v. Klutznick (1980) scotus · cites it 11× “…the lowest competitive bids and who meet established criteria of responsibility. 42 U. S. C. § 6705 (e) (1) (1976 ed., Supp. II). One class of contracting firms defined solely according to the racial and ethnic attributes of their ownersis, however, excepted from the…”

Regents of the University of California v. Bakke (1978) scotus · cites it 2× “117 , 42 U. S. C. § 6705 (f) (2) (1976 ed.”

City of Richmond v. J. A. Croson Co. (1989) scotus · cites it 2× “116 , 42 U. S. C. § 6705 (f)(2)). MBE's were defined as businesses effectively controlled by "citizens of the United States who are Negroes, Spanish-speaking, Orientals, Indians, Eskimos, and Aleuts.”

Steup v. Indiana Housing Finance Authority (1980) ind · cites it 5× “1023 , addressed itself to a situation wherein a plaintiff brought an action to restrain the Secretary of Commerce from enforcing 42 U.S.C. § 6705 (f)(2), the Minority Business Enterprise provision of the Local Public Works Capital Development and Investment Act of 1976, as…”

Wright Farms Construction, Inc. v. Kreps (1977) vtd · cites it 7× “Plaintiff brings this action for injunctive relief to restrain defendant Secretary of Commerce from enforcing in the future 42 U.S.C. § 6705 (f)(2), the minority business enterprise (MBE) provision of the Local Public Works Capital Development and Investment Act of 1976 (LPW…”

Va. Chapter, Associated Gen. Contractors v. Kreps (1978) vawd · cites it 7× “1 Specifically, plaintiffs claim one of the 1977 amendments, 42 U.S.C. § 6705 (f)(2), is an illegal racial “quota” which cannot withstand the strict judicial scrutiny required of racial classifications.”

Associated Gen. Contr., Cal. v. Secretary of Com., US (1977) cacd · cites it 15× “116 -121, 42 U.S.C. § 6705 (f)(2), which requires that 10 percent of the amount of each federal grant applied for under the Act be expended for "minority business enterprises.”

Harrison & Burrowes Bridge Constructors, Inc. v. Cuomo (1990) nynd · cites it 3× “The provisions of STAA were, in turn, modeled after section 103(f)(2) of the Public Works Employment Act of 1977 (“PWEA”), 42 U.S.C. § 6705 (f)(2). See Senate Report (Environment and Public Works Committee) No.”

Associated General Contractors v. Secretary of Commerce of the United States Department of Commerce (1977) cacd · cites it 15× “116 -121, 42 U.S.C. § 6705 (f)(2), which requires that 10 percent of the amount of each federal grant applied for under the Act be expended for “minority business enterprises.”

Rothe Development, Inc. v. United States Department of Defense (2016) cadc “) (quoting 42 U.S.C. § 6705 (f)(2)). 3 In contrast to section 8(d) *70 and the Public Works Employment Act, section 8(a) benefits “socially disadvantaged” individuals, as defined by their experience of discrimination and not just their racial or ethnic group membership.”

Rhode Island Chapter, Associated General Contractors of America, Inc. v. Kreps (1978) rid · cites it 3× “42 U.S.C. § 6705 (e)(1) (1977). Congress further provided, and this is the nub of the present controversy, that ten percent of the amount of each grant must go to minority businesses: Except to the extent that the Secretary determines otherwise, no grant shall be made under this…”

Ohio Contractors Association v. The Economic Development Administration (1978) ca6 · cites it 4× “116 -21, 42 U.S.C. § 6705 . 2 The PWE Act and the regulations promulgated thereunder require that ten percent of all federal funds authorized for specified public works projects be allocated to “minority business enterprises” as defined in 42 U.”

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