; and (5) any other person that the Secretary considers appropriate. (e) Eligible entity defined In this section, the term eligible entity means a State or local government, a part or program of a State or local government, or a nationally recognized, congressionally chartered disaster response non-profit organization. (f) Grant mandate The Secretary shall, to the extent provided in advance in appropriation Acts, use not less than 35 percent of the net investment income from the Federal Natural Catastrophe Reinsurance Fund earned in each fiscal year pursuant to section 305(d) for grants under this section. V General provisions 501. Eligible State programs (a) Eligible State programs A State program shall be considered an eligible State program for purposes of this Act if the Secretary certifies, in accordance with the procedures established under subsection (c), that the State program complies with the following requirements: (1) State program design The State program is established and authorized by State law as an insurance program or a reinsurance program that is designed to improve private insurance markets and that offers residential property insurance coverage for losses arising from any personal residential line of insurance, as defined in the Uniform Property and Casualty Product Coding Matrix of the National Association of Insurance Commissioners. (2) Operation The State program shall meet the following requirements: (A) A majority of the members of the governing body of the State program shall be public officials or appointed by public officials. (B) The State shall have a financial interest in the State program. (C) If the State has at any time appropriated amounts from the State program's funds for any purpose other than payments for losses insured under the State program, or payments made in connection with any of the State program's authorized activities, the State shall have returned such amounts to the State fund, together with interest as determined by the individual State on such amounts. (3)