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3. A local authority may designate for the purpose of providing refuge to children under section 38(1)(a) of the Act–
(a)a residential establishment controlled or managed by them; and
(b)a household which is approved by virtue of section 5(3)(b) of the 1968 Act (provision for securing that persons are not placed in any household unless the household has prescribed approval),
where the authority are satisfied as to the matters specified in regulation 4.
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