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“SEC. 1101. (a) In order to assist the States in comprehensive surveys and analyses of the cost of bringing existing 6 residential facilities into compliance with the standards estab

lished under part C of this Act, review existing State plans

concerned with providing services and programs for the 9 mentally retarded and develop strategies which include im10 plementation and monitoring mechanisms which minimize 11 inappropriate placement in residential facilities particularly 12 through the provision of alternative programs of care and co13 'ordinate and integrate existing residential facilities with exist14 ing and future regional and community mental retardation

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programs and services, which shall be done in cooperation 16 with the National Advisory Council on Standards for Resi

17 dential Facilities for the Mentally Retarded established 18 under section 1109 of this Act, and to study administrative 19 relationships, including the identification of legal, economic, 20 social and other barriers to compliance with the standards

21 established under part C of this Act and financing of pro

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grams and services from both public and private sources

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among Federal, State, and local governments in the field of

24 mental retardation with recommendations for improvement,

25 the Secretary may make grants, to such applicants and upon 26 such terms and conditions as he shall by regulations prescribe.

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“(b) In order to assist the States in improving existing

2 residential facilities for the mentally retarded so as to con

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3 tribute more effectively in providing the resident with 4 experiences which will enable such individual (1) to develop 5 his physical, intellectual, and social capabilities to the fullest 6 extent possible; (2) to develop emotional maturity commen7 surate with social and intellectual growth; (3) whenever 8 possible, to develop skills, habits, and attitudes essential for 9 returu to conteniporary society; and (4) to live a personally

satisfying life within the residential environment and to other11 wise conform to the standards established under part C of 12 this title, the Secretary may, in accordance with the provi13 sions of this part, make grants, not to exceed $300,000 per 14 institution, to cover costs of administering and operating 15 demonstration facilities and training programs to render serv16 ices in the care of mentally retarded persons in residential 17 facilities and reduce excess residential facility population, 18 which shall be evaluated for effectiveness in improving resi19 dential care for the mentally retarded. 20 "(c) For the purpose of inaking grants under section 21 (a) of this part there are authorized to be appropriated 22 $15,000,000 for the fiscal year ending June 30, 1973 and for 23 each of the next two succeeding fiscal years and for the pur24

pose of making grants under section (b) of this part there 25' are authorized to be appropriated $15,000,000 for the fiscal

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year ending June 30, 1973 and for each of the next two suc

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"SEC. 1102. (a) For the purpose of assisting States in

8 meeting the expenses, directly or indirectly, for bringing 9 publicly operated facilities and publicly assisted facilities into 10 conformity with the standards established under part C of this

11 title, which seek to assure the humane care, protection, 12 habilitation, and treatment of the mentally retarded in resi

13 dential facilities, there are authorized to be appropriated 14 such sums as are necessary to enable the Secretary to make

15 grants under this title.

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“(b) In considering applications for such grants, the 17 Secretary shall give priority to those applicants whose pub18 licly operated residential facility or publicly assisted facilities 19 are in the greatest need of assistance to comply with such

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22 "SEC. 1103. (a) Any State desiring to receive a grant 23 under this title shall submit a plan to the Secretary: 24

“(1) setting forth a schedule for compliance with 25 the standards established under part C of this title for

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each facility for which assistance is requested;

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“(2) designating a State planning and advisory council, which shall include representatives of local agen

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cies and nongovernmental organizations concerned with

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services for mentally retarded persons and at least one

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third of the membership of such council shall consist of

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representatives of consumers of such services from publicly operated and publicly assisted residential facilities for the mentally retarded;

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“(3) assuring reasonable State financial participation in the cost of carrying out the plan to comply with

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the standards set forth in this title and how the resi

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dential facility for the mentally retarded will complement and augment rather than duplicate or replace other community services for the nientally retarded or meet the requirements of part C of this title ;

“(4) setting forth a schedule of costs to achieve compliance with the standards established under part C of this title; and

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“(5) designating how placement in residential fa

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“(b) The Secretary shall approve a plan which sets 24 forth a reasonable time for compliance with the standards 25 established under this title, and he shall not finally dis

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approve a plan except after reasonable notice and opportu2 nity for a hearing to such State.

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'AMOUNT OF GRANTS; PAYMENTS

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“Sec. 1104. (a) The total of the grants with respect

5 to any project under this part may not exceed 75 per centum 6 of the necessary cost thereof as determined by the Secretary. 7

“(b) Payments of grants under this part shall be made 8 in advance or by way of reimbursement, and on such condi

9 tions as the Secretary may determine.

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"MAINTENANCE OF EFFORT

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“Sec. 1105. Applications for grants under this part may 12 be approved by the Secretary only if the application contains 13 or is supported by reasonable assurances that the grants will

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not result in any decrease in the level of State, local, and

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other non-Federal funds for services for mentally retarded 16 which would (except for such grant) be available to the 17

applicant, but that such grants will be used to supplement, 18 and, to the extent practicable, to increase the level of such

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“WITIIHOLDING OF GRANTS

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“SEC. 1106. (a) Whenever the Secretary, after an op

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portunity for a hearing on the record finds

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“(1) that there has been a failure to comply substantially with any requirement set forth in the plan of that State approved under section 1103; or

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