ALTERNATIVE FINANCING MECHANISMS AUTHORIZED.

SEC. 301. ALTERNATIVE FINANCING MECHANISMS AUTHORIZED. The Act (29 U.S.C. 2201 et seq.) is amended by adding at the end the following: “TITLE III— ALTERNATIVE FINANCING MECHANISMS “SEC. 301. GENERAL AUTHORITY TO PROVIDE ALTERNATIVE FINANCING MECHANISMS. “(a) In General.— The Secretary shall award grants to States to pay for the Federal share of the cost of the establishment and administration of, or the expansion and administration of, alternative financing mechanisms (referred to individually in this title as an ‘alternative financing mechanism’) to allow individuals with disabilities and their family members, guardians, and authorized representatives to purchase assistive technology devices and assistive technology services. “(b) Mechanisms.— The alternative financing mechanisms may include— “(1) a low-interest loan fund; “(2) a revolving fund; “(3) a loan insurance program; 108 STAT. 92 “(4) a partnership with private entities for the purchase, lease, or other acquisition of assistive technology devices or the provision of assistive technology services; and “(5) other alternative financing mechanisms that meet the requirements of this Act and are approved by the Secretary. “(c) Construction.— Nothing in this section shall be construed as affecting the authority of a State to establish alternative financing mechanisms under title I. “SEC. 302. APPLICATIONS AND PROCEDURES. “(a) Eligibility.— States that receive or have received grants under section 102 or 103 shall be eligible to compete for grants under section 301. “(b) Requirements.— The Secretary shall make grants under section 301 under such conditions as the Secretary shall, by regulation, determine, except that— “(1) a State may receive only 1 grant under section 301 and may only receive such a grant for 1 year under this title; “(2) a State that desires to receive a grant under section 301 shall submit an application to the Secretary, at such time and in such manner as the Secretary may require, containing— “(A) an assurance that the State will provide at least 50 percent of the cost described in section 301(a), as set forth in section 304, for the purpose of supporting the alternative financing mechanisms that are covered by the grant; “(B) an assurance that an alternative financing mechanism will continue on a permanent basis; and “(C) a description of the degree to which the alternative financing mechanisms to be funded under section 301 will expand and emphasize consumer choice and control; “(3) a State that receives a grant under section 301— “(A) shall enter into a contract, with a community-based organization (or a consortia of such organizations) that has individuals with disabilities involved at all organizational levels, for the administration of the alternative financing mechanisms that are supported under section 301; and “(B) shall require that such community-based organization enter into a contract, for the purpose of expanding opportunities under section 301 and facilitating the administration of the alternative financing mechanisms, with— “(i) commercial lending institutions or organizations; or “(ii) State financing agencies; and “(4) a contract between a State that receives a grant under section 301 and a community-based organization described in paragraph (3)— “(A) shall include a provision regarding the administration of the Federal and the non-Federal shares in a manner consistent with the provisions of this title; and “(B) shall include any provision required by the Secretary dealing with oversight and evaluation as may be necessary to protect the financial interests of the United States. 108 STAT. 93 “SEC. 303. GRANT ADMINISTRATION REQUIREMENTS. “A State that receives a grant under section 301, together with any community-based organization that enters into a contract with the State to administer an alternative financing mechanism that is supported under section 301, shall develop and submit to the Secretary, pursuant to a timeline that the Secretary may establish or, if the Secretary does not establish a timeline, within the 12-month period beginning on the date that the State receives the grant, the following policies or procedures for administration of the mechanism: “(1) A procedure to review and process in a timely fashion requests for financial assistance for both immediate and potential technology needs, including consideration of methods to reduce paperwork and duplication of effort, particularly relating to need, eligibility, and determination of the specific device or service to be provided. “(2) A policy and procedure to assure that access to the alternative financing mechanism shall be given to consumers regardless of type of disability, age, location of residence in the State, or type of assistive technology device or assistive technology service requested and shall be made available to applicants of all income levels. “(3) A procedure to assure consumer-controlled oversight. “SEC. 304. FINANCIAL REQUIREMENTS. “(a) Federal Share.— The Federal share of the costs described in section 301(a) shall be not more than 50 percent. “(b) Requirements.— A State that desires to receive a grant under section 301 shall include in the application submitted under section 302 assurances that the State will meet the following requirements regarding funds supporting an alternative funding mechanism assisted under section 301: “(1) The State shall make available the funds necessary to provide the non-Federal share of the costs described in section 301(a), in cash, from State, local, or private sources. “(2) Funds that support an alternative financing mechanism assisted under section 301— “(A) shall be used to supplement and not supplant other Federal, State, and local public funds expended to provide public funding options; and “(B) may only be distributed through the entity carrying out the alternative financing mechanism as a payer of last resort for assistance that is not available in a reasonable or timely fashion from any other Federal, State, or local source. “(3) All funds that support an alternative financing mechanism assisted under section 301, including funds repaid during the life of the mechanism, shall be placed in a permanent separate account and identified and accounted for separately from any other fund. Funds within this account may be invested in low-risk securities in which a regulated insurance company may invest under the law of the State for which the grant is provided and shall be administered 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. 108 STAT. 94 “(4) Funds comprised of the principal and interest from an account described in paragraph (3) shall be available to support an alternative financing mechanism assisted under section 301. Any interest or investment income that accrues on such funds after such funds have been placed under the control of the entity administering the mechanism, but before such funds are distributed for purposes of supporting the mechanism, shall be the property of the entity administering the mechanism and shall not be taken into account by any officer or employee of the Federal Government for any purpose. “SEC. 305. AMOUNT OF GRANTS. “(a) Amount.— “(1) In general.— Except as provided in paragraph (2), a grant under section 301 shall be for an amount that is not more than $500,000. “(2) Increases.— Such a grant may be increased by any additional funds made available under subsection (b). “(b) Excess Funds.— If funds appropriated under section 308 for a fiscal year exceed the amount necessary to fund the activities described in acceptable applications submitted under section 302 for such year, the Secretary shall make such excess amount available, on a competitive basis, to States receiving grants under section 301 for such year. A State that desires to receive additional funds under this subsection shall amend and resubmit to the Secretary the application submitted under section 302. Such amended application shall contain an assurance that the State will provide an additional amount for the purpose of supporting the alternative financing mechanisms covered by the grant that is not less than the amount of any additional funds paid to the State by the Secretary under this subsection. “(c) Insufficient Funds.— If funds appropriated under section 308 for a fiscal year are not sufficient to fund each of the activities described in the acceptable applications for such year, a State whose application was approved as acceptable for such year but that did not receive a grant under section 301, may update such application for the succeeding fiscal year. Priority shall be given in such succeeding fiscal year to such updated applications, if acceptable. “SEC. 306. TECHNICAL ASSISTANCE. “(a) In General.— The Secretary shall provide information and technical assistance to States under this title, and the information and technical assistance shall include— “(1) assisting States in the preparation of applications for grants under section 301; “(2) assisting States that receive such grants in developing and implementing alternative financing mechanisms; and “(3) providing any other information and technical assistance to assist States in accomplishing the objectives of this title. “(b) Grants, Contracts, and Agreements.— The Secretary shall provide the information and technical assistance described in subsection (a) through grants, contracts, or cooperative agreements with public or private agencies and organizations, including institutions of higher education, with documented experience, expertise, and capacity to assist States in the development and 108 STAT. 95implementation of the alternative financing mechanisms described in section 301. “SEC. 307. ANNUAL REPORT. “(a) In General.— Not later than December 31 of each year, the Secretary shall submit a report to the Congress stating whether each State program to provide alternative financing mechanisms that was supported under section 301 during the year is making significant progress in achieving the objectives of this title. “(b) Contents.— The report shall include information on— “(1) the number of applications for grants under section 301 that were received by the Secretary; “(2) the number of grants made and the amounts of such grants; “(3) the ratio of the amount of funds provided by each State for a State program to provide alternative financing mechanisms to the amount of Federal funds provided for such program; “(4) the type of program to provide alternative financing mechanisms that was adopted in each State and the community-based organization (or consortia of such organizations) with which each State has entered into a contract; and “(5) the amount of assistance given to consumers (who shall be classified by age, type of disability, type of assistive technology device or assistive technology service received, geographic distribution within the State, gender, and whether the consumers are part of an underrepresented population or a rural population). “SEC. 308. AUTHORIZATION OF APPROPRIATIONS. “(a) In General.— There are authorized to be appropriated to carry out this title $8,000,000 for fiscal year 1994, and such sums as may be necessary for each of the fiscal years 1995 through 1998. “(b) Availability in Succeeding Fiscal Year.— Amounts appropriated under subsection (a) shall remain available for obligation for the fiscal year immediately following the fiscal year for which such amounts were appropriated. “(c) Reservation.— Of the amounts appropriated under subsection (a), the Secretary shall reserve $250,000 for the purpose of providing information and technical assistance to States under section 306.”.