Page:United States Statutes at Large Volume 112 Part 5.djvu/901

 PUBLIC LAW 105-394—NOV. 13, 1998 112 STAT. 3659 be used to supplement and not supplant other Federal, State, and local public funds expended to provide alternative financing mechanisms; (5) an assurance that the State will ensure that— (A) all funds that support the alternative financing program, including funds repaid during the life of the program, will be placed in a permanent separate account and identified and accounted for separately from any other fund; (B) if the organization administering the program invests funds within this account, the organization will invest the funds in low-risk securities in which a regulated insurance company may invest under the law of the State; and (C) the organization will administer the funds with the same judgment and care that a person of prudence, discretion, and intelligence would exercise in the management of the financial affairs of such person; (6) an assurance that— (A) funds comprised of the principal and interest from the account described in paragraph (5) will be available to support the alternative financing program; and (B) any interest or investment income that accrues on or derives from such funds after such funds have been placed under the control of the organization administering the alternative financing program, but before such funds are distributed for purposes of supporting the program, will be the property of the organization administering the program; and (7) an assurance that the percentage of the funds made available through the grant that is used for indirect costs shall not exceed 10 percent. (c) LIMIT. —The interest and income described in subsection (b)(6)(B) shall not be taken into account by any officer or employee of the Federal Government for purposes of determining eligibihty for any Federal program. SEC. 304. CONTRACTS WITH COMMUNITY-BASED ORGANIZATIONS. 29 USC 3054. (a) IN GENERAL.—A State that receives a grant under this title shall enter into a contract with a community-based organization (including a group of such organizations) that has individuals with disabihties involved in organizational decisionmaking at all organizational levels, to administer the alternative financing program. (b) PROVISIONS. —The contract shall— (1) include a provision requiring that the program funds, including the Federal and non-Federal shares of the cost of the program, be administered in a manner consistent with the provisions of this title; (2) include any provision the Secretary requires concerning oversight and evaluation necessary to protect Federal financial interests; and (3) require the community-based organization to enter into a contract, to expand opportunities under this title and facilitate administration of the alternative financing program, with—

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