((a)) ** Contracts**

((1)) An eligible system may use its allotment under this subchapter to enter into contracts with State agencies and nonprofit organizations which operate throughout the State. In order to be eligible for a contract under this paragraph—

((A)) such an agency shall be independent of any agency which provides treatment or services (other than advocacy services) to individuals with mental illness; and

((B)) such an agency or organization shall have the capacity to protect and advocate the rights of individuals with mental illness.

((2)) In carrying out paragraph (1), an eligible system should consider entering into contracts with organizations including, in particular, groups run by individuals who have received or are receiving mental health services, or the family members of such individuals, which, provide protection or advocacy services to individuals with mental illness.

((b)) ** Obligation of allotments; technical assistance and training**

((1)) If an eligible system is a public entity, the government of the State in which the system is located may not require the system to obligate more than 5 percent of its allotment under this subchapter in any fiscal year for administrative expenses.

((2)) An eligible system may not use more than 10 percent of any allotment under this subchapter for any fiscal year for the costs of providing technical assistance and training to carry out this subchapter.

((c)) ** Representation of individuals with mental illness** An eligible system may use its allotment under this subchapter to provide representation to individuals with mental illness in Federal facilities who request representation by the eligible system. Representatives of such individuals from such system shall be accorded all the rights and authority accorded to other representatives of residents of such facilities pursuant to State law and other Federal laws.

((d)) ** Definition for purposes of representation of individuals with mental illness; priority** The definition of “individual with a mental illness” contained in section 10802(4)(B)(iii)  of this title shall apply, and thus an eligible system may use its allotment under this subchapter to provide representation to such individuals, only if the total allotment under this subchapter for any fiscal year is $30,000,000 or more, and in such case, an eligible system must give priority to representing persons with mental illness as defined in subparagraphs (A) and (B)(i) of .2section 10802(4) of this title