112 STAT. 2750 PUBLIC LAW 105-285—OCT. 27, 1998 "(B) to remove religious art, icons, scripture, or other symbols; in order to be eligible to provide assistance under a program described in subsection (a). "(3) EMPLOYMENT PRACTICES. —^A religious organization's exemption provided under section 702 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-l) regarding employment practices shall not be affected by its participation in, or receipt of funds from, programs described in subsection (a). "(c) LIMITATIONS ON USE OP FUNDS FOR CERTAIN PURPOSES.— No funds provided directly to a religious organization to provide assistance under any program described in subsection (a) shall be expended for sectarian worship, instruction, or proselytization. "(d) FISCAL ACCOUNTABILITY. — "(1) IN GENERAL.— Except as provided in paragraph (2), any religious organization providing assistsince under any program described in subsection (a) shall be subject to the same regulations as other nongovernmental organizations to account in accord with generally accepted accounting principles for the use of such funds provided under such program. "(2) LIMITED AUDIT. — Such organization shall segregate government funds provided under such program into a separate account. Only the government funds shall be subject to audit by the government. "(e) TREATMENT OF ELIGIBLE ENTITIES AND OTHER INTERMEDI- ATE ORGANIZATIONS. — If an eligible entity or other organization (referred to in this subsection as an 'intermediate organization'), acting under a contract, or grant or other agreement, with the Federal Government or a State or local government, is given the authority under the contract or agreement to select nongovernmental organizations to provide assistance under the programs described in subsection (a), the intermediate organization shall have the same duties under this section as the government. 42 USC 9921. "SEC. 680. DISCRETIONARY AUTHORITY OF THE SECRETARY. "(a) GRANTS, CONTRACTS, ARRANGEMENTS, LOANS, AND GUARAN- TEES.— "(1) IN GENERAL. —The Secretary shall, from funds reserved under section 674(b)(3), make grants, loans, or guarantees to States and public agencies and private, nonprofit organizations, or enter into contracts or jointly financed cooperative arrangements with States and public agencies and private, nonprofit organizations (and for-profit organizations, to the extent specified in paragraph (2)(E)) for each of the objectives described in paragraphs (2) through (4). "(2) COMMUNITY ECONOMIC DEVELOPMENT.— "(A) ECONOMIC DEVELOPMENT ACTIVITIES. —The Secretary shall make grants described in paragraph (1) on a competitive basis to private, nonprofit organizations that are community development corporations to provide technical and financial assistance for economic development activities designed to address the economic needs of lowincome individuals and families by creating employment and business development opportunities. "(B) CONSULTATION. — The Secretary shall exercise the authority provided under subparagraph (A) after consultation with other relevant Federal officials.
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