(1)    In this section:

      (ad)    “Cross-disability basis” has the meaning given under 29 USC 796f-4 (b) (2).

      (ah)    “Independent living center” means a community-based, nonresidential private nonprofit agency that vests power and authority in individuals with disabilities, that is designed and operated within a local community by individuals with disabilities and that provides an array of independent living services, including independent living core services, on a cross-disability basis.

      (am)    “Independent living core services” has the meaning given in 29 U.S. Code § 705 (17).

      (ap)    “Independent living services” has the meaning given under 29 U.S. Code § 705 (18).

      (at)    “Individual with a disability” has the meaning given under 29 U.S. Code § 705 (20).

      (b)    “Severely disabled individual” means any individual with a severe physical or mental impairment whose ability to function independently in his or her family or community or whose ability to obtain, maintain or advance in employment is substantially limited and for whom the delivery of independent living services will improve either his or her ability to function independently in his or her family or community or his or her ability to engage in employment.

   (2)   The department shall make grants from the appropriations under s. 20.435 (1) (cx) and (kc) and (7) (na) to independent living centers for nonresidential services to severely disabled individuals.

   (2d)   The department shall make grants from the appropriations under s. 20.435 (1) (cx) and (7) (na) for the purposes for which the federal moneys are received, including for independent living services.

   (3m)   

      (a)    By July 1, 1994, an independent living center that receives funds under sub. (2) shall comply with all of the following requirements:

         1.    The independent living center shall have a board of directors that is the principal governing body of the independent living center.

         2.    Severely disabled individuals shall be substantially involved in policy direction and management of the independent living center and shall be employed by the independent living center.

         3.    The independent living center shall offer severely disabled individuals a combination of independent living services that includes, as appropriate, those services that assist severely disabled individuals to increase personal self-determination and to minimize unnecessary dependence upon others.

      (am)    Notwithstanding par. (a), all of the following apply:

         1.    Any independent living center that first receives funding under this section after June 21, 1996, shall comply with requirements that are specified under 29 USC 796f-4.

         2.    Any independent living center that is receiving funding under this section on June 21, 1996, shall comply with requirements under 29 USC 796f-4 by July 1, 1998.

      (b)    The department shall periodically review independent living centers and identify instances of noncompliance with the requirements of par. (a), if any. If the department identifies an instance of noncompliance, the department shall direct the noncomplying independent living center to comply within a reasonable period of time, which may not be less than 60 days after the date of the directive.