[Title 34 CFR ]
[Code of Federal Regulations (annual edition) - July 1, 2013 Edition]
[From the U.S. Government Printing Office]



[[Page i]]

          

             Title 34

Education


________________________

Parts 300 to 399

                         Revised as of July 1, 2013

          Containing a codification of documents of general 
          applicability and future effect

          As of July 1, 2013
                    Published by the Office of the Federal Register 
                    National Archives and Records Administration as a 
                    Special Edition of the Federal Register

[[Page ii]]

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                            Table of Contents



                                                                    Page
  Explanation.................................................       v

  Title 34:
    SUBTITLE B--Regulations of the Offices of the Department 
      of Education (Continued)
          Chapter III--Office of Special Education and 
          Rehabilitative Services, Department of Education           5
  Findings Aids:
      Table of CFR Titles and Chapters........................     513
      Alphabetical List of Agencies Appearing in the CFR......     533
      List of CFR Sections Affected...........................     543

[[Page iv]]





                     ----------------------------

                     Cite this Code: CFR
                     To cite the regulations in 
                       this volume use title, 
                       part and section number. 
                       Thus, 34 CFR 300.1 refers 
                       to title 34, part 300, 
                       section 1.

                     ----------------------------

[[Page v]]



                               EXPLANATION

    The Code of Federal Regulations is a codification of the general and 
permanent rules published in the Federal Register by the Executive 
departments and agencies of the Federal Government. The Code is divided 
into 50 titles which represent broad areas subject to Federal 
regulation. Each title is divided into chapters which usually bear the 
name of the issuing agency. Each chapter is further subdivided into 
parts covering specific regulatory areas.
    Each volume of the Code is revised at least once each calendar year 
and issued on a quarterly basis approximately as follows:

Title 1 through Title 16.................................as of January 1
Title 17 through Title 27..................................as of April 1
Title 28 through Title 41...................................as of July 1
Title 42 through Title 50................................as of October 1

    The appropriate revision date is printed on the cover of each 
volume.

LEGAL STATUS

    The contents of the Federal Register are required to be judicially 
noticed (44 U.S.C. 1507). The Code of Federal Regulations is prima facie 
evidence of the text of the original documents (44 U.S.C. 1510).

HOW TO USE THE CODE OF FEDERAL REGULATIONS

    The Code of Federal Regulations is kept up to date by the individual 
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    To determine whether a Code volume has been amended since its 
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Sections Affected (LSA),'' which is issued monthly, and the ``Cumulative 
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Register page number of the latest amendment of any given rule.

EFFECTIVE AND EXPIRATION DATES

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OMB CONTROL NUMBERS

    The Paperwork Reduction Act of 1980 (Pub. L. 96-511) requires 
Federal agencies to display an OMB control number with their information 
collection request.

[[Page vi]]

Many agencies have begun publishing numerous OMB control numbers as 
amendments to existing regulations in the CFR. These OMB numbers are 
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PAST PROVISIONS OF THE CODE

    Provisions of the Code that are no longer in force and effect as of 
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Code users may find the text of provisions in effect on any given date 
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``[RESERVED]'' TERMINOLOGY

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``[Reserved]'' location at any time. Occasionally ``[Reserved]'' is used 
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INCORPORATION BY REFERENCE

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This material, like any other properly issued regulation, has the force 
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alphabetical list of agencies publishing in the CFR are also included in 
this volume.

[[Page vii]]

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    Charles A. Barth,
    Director,
    Office of the Federal Register.
    July 1, 2013.







[[Page ix]]



                               THIS TITLE

    Title 34--Education is composed of four volumes. The parts in these 
volumes are arranged in the following order: Parts 1-299, parts 300-399, 
parts 400-679, and part 680 to end. The contents of these volumes 
represent all regulations codified under this title of the CFR as of 
July 1, 2013.

    For this volume, Michele Bugenhagen was Chief Editor. The Code of 
Federal Regulations publication program is under the direction of 
Michael L. White, assisted by Ann Worley.

[[Page 1]]



                           TITLE 34--EDUCATION




                  (This book contains parts 300 to 399)

  --------------------------------------------------------------------

 SUBTITLE B--Regulations of the Offices of the Department of Education 
                                (Continued)

                                                                    Part

chapter III--Office of Special Education and Rehabilitative 
  Services, Department of Education.........................         300

[[Page 3]]

 Subtitle B--Regulations of the Offices of the Department of Education 
                               (Continued)

[[Page 5]]



 CHAPTER III--OFFICE OF SPECIAL EDUCATION AND REHABILITATIVE SERVICES, 
                         DEPARTMENT OF EDUCATION




  --------------------------------------------------------------------
Part                                                                Page
300             Assistance to States for the education of 
                    children with disabilities..............           7
303             Early intervention program for infants and 
                    toddlers with disabilities..............         165
304             Service obligations under special 
                    education--personnel development to 
                    improve services and results for 
                    children with disabilities..............         269
350             Disability and Rehabilitation Research 
                    Projects and Centers Program............         272
356             Disability and rehabilitation research: 
                    Research fellowships....................         287
359             Disability and rehabilitation research: 
                    Special projects and demonstrations for 
                    spinal cord injuries....................         290
361             State Vocational Rehabilitation Services 
                    Program.................................         293
363             The State Supported Employment Services 
                    Program.................................         358
364             State Independent Living Services Program 
                    and Centers for Independent Living 
                    Program: General provisions.............         364
365             State independent living services...........         383
366             Centers for independent living..............         387
367             Independent living services for older 
                    individuals who are blind...............         407
369             Vocational rehabilitation service projects..         413
370             Client Assistance Program...................         420
371             Vocational rehabilitation service projects 
                    for American Indians with disabilities..         431
373             Special demonstration programs..............         435
376             Special projects and demonstrations for 
                    providing transitional rehabilitation 
                    services to youth with disabilities.....         441

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377             Demonstration Projects To Increase Client 
                    Choice Program..........................         443
379             Projects with industry......................         449
380             Special projects and demonstrations for 
                    providing supported employment services 
                    to individuals with the most severe 
                    disabilities and technical assistance 
                    projects................................         459
381             Protection and advocacy of individual rights         464
385             Rehabilitation training.....................         469
386             Rehabilitation training: Rehabilitation 
                    long-term training......................         476
387             Experimental and innovative training........         483
388             State vocational rehabilitation unit in-
                    service training........................         484
389             Rehabilitation continuing education programs         487
390             Rehabilitation short-term training..........         489
395             Vending facility program for the blind on 
                    Federal and other property..............         491
396             Training of interpreters for individuals who 
                    are deaf and individuals who are deaf-
                    blind...................................         506
397-399

[Reserved]

[[Page 7]]



PART 300_ASSISTANCE TO STATES FOR THE EDUCATION OF CHILDREN WITH 
DISABILITIES--Table of Contents



                            Subpart A_General

                       Purposes and Applicability

Sec.
300.1 Purposes.
300.2 Applicability of this part to State and local agencies.

                      Definitions Used in This Part

300.4 Act.
300.5 Assistive technology device.
300.6 Assistive technology service.
300.7 Charter school.
300.8 Child with a disability.
300.9 Consent.
300.10 Core academic subjects.
300.11 Day; business day; school day.
300.12 Educational service agency.
300.13 Elementary school.
300.14 Equipment.
300.15 Evaluation.
300.16 Excess costs.
300.17 Free appropriate public education.
300.18 Highly qualified special education teachers.
300.19 Homeless children.
300.20 Include.
300.21 Indian and Indian tribe.
300.22 Individualized education program.
300.23 Individualized education program team.
300.24 Individualized family service plan.
300.25 Infant or toddler with a disability.
300.26 Institution of higher education.
300.27 Limited English proficient.
300.28 Local educational agency.
300.29 Native language.
300.30 Parent.
300.31 Parent training and information center.
300.32 Personally identifiable.
300.33 Public agency.
300.34 Related services.
300.35 Scientifically based research.
300.36 Secondary school.
300.37 Services plan.
300.38 Secretary.
300.39 Special education.
300.40 State.
300.41 State educational agency.
300.42 Supplementary aids and services.
300.43 Transition services.
300.44 Universal design.
300.45 Ward of the State.

                       Subpart B_State Eligibility

                                 General

300.100 Eligibility for assistance.

                            FAPE Requirements

300.101 Free appropriate public education (FAPE).
300.102 Limitation--exception to FAPE for certain ages.

                         Other FAPE Requirements

300.103 FAPE--methods and payments.
300.104 Residential placement.
300.105 Assistive technology.
300.106 Extended school year services.
300.107 Nonacademic services.
300.108 Physical education.
300.109 Full educational opportunity goal (FEOG).
300.110 Program options.
300.111 Child find.
300.112 Individualized education programs (IEP).
300.113 Routine checking of hearing aids and external components of 
          surgically implanted medical devices.

                   Least Restrictive Environment (LRE)

300.114 LRE requirements.
300.115 Continuum of alternative placements.
300.116 Placements.
300.117 Nonacademic settings.
300.118 Children in public or private institutions.
300.119 Technical assistance and training activities.
300.120 Monitoring activities.

                   Additional Eligibility Requirements

300.121 Procedural safeguards.
300.122 Evaluation.
300.123 Confidentiality of personally identifiable information.
300.124 Transition of children from the Part C program to preschool 
          programs.
300.125-300.128 [Reserved]

                       Children in Private Schools

300.129 State responsibility regarding children in private schools.

 Children With Disabilities Enrolled by Their Parents in Private Schools

300.130 Definition of parentally-placed private school children with 
          disabilities.
300.131 Child find for parentally-placed private school children with 
          disabilities.
300.132 Provision of services for parentally-placed private school 
          children with disabilities--basic requirement.
300.133 Expenditures.
300.134 Consultation.
300.135 Written affirmation.
300.136 Compliance.
300.137 Equitable services determined.
300.138 Equitable services provided.
300.139 Location of services and transportation.

[[Page 8]]

300.140 Due process complaints and State complaints.
300.141 Requirement that funds not benefit a private school.
300.142 Use of personnel.
300.143 Separate classes prohibited.
300.144 Property, equipment, and supplies.

  Children With Disabilities in Private Schools Placed or Referred by 
                             Public Agencies

300.145 Applicability of Sec. Sec. 300.146 through 300.147.
300.146 Responsibility of SEA.
300.147 Implementation by SEA.

Children With Disabilities Enrolled by Their Parents in Private Schools 
                          When FAPE is at Issue

300.148 Placement of children by parents when FAPE is at issue.

    SEA Responsibility for General Supervision and Implementation of 
                          Procedural Safeguards

300.149 SEA responsibility for general supervision.
300.150 SEA implementation of procedural safeguards.

                       State Complaint Procedures

300.151 Adoption of State complaint procedures.
300.152 Minimum State complaint procedures.
300.153 Filing a complaint.

                      Methods of Ensuring Services

300.154 Methods of ensuring services.

                   Additional Eligibility Requirements

300.155 Hearings relating to LEA eligibility.
300.156 Personnel qualifications.
300.157 Performance goals and indicators.
300.158-300.159 [Reserved]
300.160 Participation in assessments.
300.161 [Reserved]
300.162 Supplementation of State, local, and other Federal funds.
300.163 Maintenance of State financial support.
300.164 Waiver of requirement regarding supplementing and not 
          supplanting with Part B funds.
300.165 Public participation.
300.166 Rule of construction.

                          State Advisory Panel

300.167 State advisory panel.
300.168 Membership.
300.169 Duties.

             Other Provisions Required for State Eligibility

300.170 Suspension and expulsion rates.
300.171 Annual description of use of Part B funds.
300.172 Access to instructional materials.
300.173 Overidentification and disproportionality.
300.174 Prohibition on mandatory medication.
300.175 SEA as provider of FAPE or direct services.
300.176 Exception for prior State plans.
300.177 States' sovereign immunity and positive efforts to employ and 
          advance qualified individuals with disabilities.

                          Department Procedures

300.178 Determination by the Secretary that a State is eligible to 
          receive a grant.
300.179 Notice and hearing before determining that a State is not 
          eligible to receive a grant.
300.180 Hearing official or panel.
300.181 Hearing procedures.
300.182 Initial decision; final decision.
300.183 Filing requirements.
300.184 Judicial review.
300.185 [Reserved]
300.186 Assistance under other Federal programs.

                 By-pass for Children in Private Schools

300.190 By-pass--general.
300.191 Provisions for services under a by-pass.
300.192 Notice of intent to implement a by-pass.
300.193 Request to show cause.
300.194 Show cause hearing.
300.195 Decision.
300.196 Filing requirements.
300.197 Judicial review.
300.198 Continuation of a by-pass.

                          State Administration

300.199 State administration.

             Subpart C_Local Educational Agency Eligibility

300.200 Condition of assistance.
300.201 Consistency with State policies.
300.202 Use of amounts.
300.203 Maintenance of effort.
300.204 Exception to maintenance of effort.
300.205 Adjustment to local fiscal efforts in certain fiscal years.
300.206 Schoolwide programs under title I of the ESEA.
300.207 Personnel development.
300.208 Permissive use of funds.
300.209 Treatment of charter schools and their students.
300.210 Purchase of instructional materials.
300.211 Information for SEA.
300.212 Public information.
300.213 Records regarding migratory children with disabilities.

[[Page 9]]

300.214-300.219 [Reserved]
300.220 Exception for prior local plans.
300.221 Notification of LEA or State agency in case of ineligibility.
300.222 LEA and State agency compliance.
300.223 Joint establishment of eligibility.
300.224 Requirements for establishing eligibility.
300.225 [Reserved]
300.226 Early intervening services.
300.227 Direct services by the SEA.
300.228 State agency eligibility.
300.229 Disciplinary information.
300.230 SEA flexibility.

   Subpart D_Evaluations, Eligibility Determinations, Individualized 
             Education Programs, and Educational Placements

                            Parental Consent

300.300 Parental consent.

                      Evaluations and Reevaluations

300.301 Initial evaluations.
300.302 Screening for instructional purposes is not evaluation.
300.303 Reevaluations.
300.304 Evaluation procedures.
300.305 Additional requirements for evaluations and reevaluations.
300.306 Determination of eligibility.

 Additional Procedures for Identifying Children With Specific Learning 
                              Disabilities

300.307 Specific learning disabilities.
300.308 Additional group members.
300.309 Determining the existence of a specific learning disability.
300.310 Observation.
300.311 Specific documentation for the eligibility determination.

                    Individualized Education Programs

300.320 Definition of individualized education program.
300.321 IEP Team.
300.322 Parent participation.
300.323 When IEPs must be in effect.

                           Development of IEP

300.324 Development, review, and revision of IEP.
300.325 Private school placements by public agencies.
300.326 [Reserved]
300.327 Educational placements.
300.328 Alternative means of meeting participation.

                     Subpart E_Procedural Safeguards

             Due Process Procedures for Parents and Children

300.500 Responsibility of SEA and other public agencies.
300.501 Opportunity to examine records; parent participation in 
          meetings.
300.502 Independent educational evaluation.
300.503 Prior notice by the public agency; content of notice.
300.504 Procedural safeguards notice.
300.505 Electronic mail.
300.506 Mediation.
300.507 Filing a due process complaint.
300.508 Due process complaint.
300.509 Model forms.
300.510 Resolution process.
300.511 Impartial due process hearing.
300.512 Hearing rights.
300.513 Hearing decisions.
300.514 Finality of decision; appeal; impartial review.
300.515 Timelines and convenience of hearings and reviews.
300.516 Civil action.
300.517 Attorneys' fees.
300.518 Child's status during proceedings.
300.519 Surrogate parents.
300.520 Transfer of parental rights at age of majority.
300.521-300.529 [Reserved]

                          Discipline Procedures

300.530 Authority of school personnel.
300.531 Determination of setting.
300.532 Appeal.
300.533 Placement during appeals.
300.534 Protections for children not determined eligible for special 
          education and related services.
300.535 Referral to and action by law enforcement and judicial 
          authorities.
300.536 Change of placement because of disciplinary removals.
300.537 State enforcement mechanisms.
300.538-300.599 [Reserved]

    Subpart F_Monitoring, Enforcement, Confidentiality, and Program 
                               Information

            Monitoring, Technical Assistance, and Enforcement

300.600 State monitoring and enforcement.
300.601 State performance plans and data collection.
300.602 State use of targets and reporting.
300.603 Secretary's review and determination regarding State 
          performance.
300.604 Enforcement.
300.605 Withholding funds.
300.606 Public attention.
300.607 Divided State agency responsibility.
300.608 State enforcement.
300.609 Rule of construction.

[[Page 10]]

                     Confidentiality of Information

300.610 Confidentiality.
300.611 Definitions.
300.612 Notice to parents.
300.613 Access rights.
300.614 Record of access.
300.615 Records on more than one child.
300.616 List of types and locations of information.
300.617 Fees.
300.618 Amendment of records at parent's request.
300.619 Opportunity for a hearing.
300.620 Result of hearing.
300.621 Hearing procedures.
300.622 Consent.
300.623 Safeguards.
300.624 Destruction of information.
300.625 Children's rights.
300.626 Enforcement.
300.627 Department use of personally identifiable information.

                      Reports--Program Information

300.640 Annual report of children served--report requirement.
300.641 Annual report of children served--information required in the 
          report.
300.642 Data reporting.
300.643 Annual report of children served--certification.
300.644 Annual report of children served--criteria for counting 
          children.
300.645 Annual report of children served--other responsibilities of the 
          SEA.
300.646 Disproportionality.

   Subpart G_Authorization, Allotment, Use of Funds, Authorization of 
                             Appropriations

                  Allotments, Grants, and Use of Funds

300.700 Grants to States.
300.701 Outlying areas, freely associated States, and the Secretary of 
          the Interior.
300.702 Technical assistance.
300.703 Allocations to States.
300.704 State-level activities.
300.705 Subgrants to LEAs.
300.706 [Reserved]

                        Secretary of the Interior

300.707 Use of amounts by Secretary of the Interior.
300.708 Submission of information.
300.709 Public participation.
300.710 Use of funds under Part B of the Act.
300.711 Early intervening services.
300.712 Payments for education and services for Indian children with 
          disabilities aged three through five.
300.713 Plan for coordination of services.
300.714 Establishment of advisory board.
300.715 Annual reports.
300.716 Applicable regulations.

                 Definitions That Apply to This Subpart

300.717 Definitions applicable to allotments, grants, and use of funds.

  Acquisition of Equipment and Construction or Alteration of Facilities

300.718 Acquisition of equipment and construction or alteration of 
          facilities.

        Subpart H_Preschool Grants for Children With Disabilities

300.800 In general.
300.801-300.802 [Reserved]
300.803 Definition of State.
300.804 Eligibility.
300.805 [Reserved]
300.806 Eligibility for financial assistance.
300.807 Allocations to States.
300.808 Increase in funds.
300.809 Limitations.
300.810 Decrease in funds.
300.811 [Reserved]
300.812 Reservation for State activities.
300.813 State administration.
300.814 Other State-level activities.
300.815 Subgrants to LEAs.
300.816 Allocations to LEAs.
300.817 Reallocation of LEA funds.
300.818 Part C of the Act inapplicable.

Appendix A to Part 300--Excess Costs Calculation
Appendix B to Part 300--Proportionate Share Calculation
Appendix C to Part 300--National Instructional Materials Accessibility 
          Standard (NIMAS)
Appendix D to Part 300--Maintenance of Effort and Early Intervening 
          Services
Appendix E to Part 300--Index for IDEA--Part B Regulations (34 CFR Part 
          300)

    Authority: 20 U.S.C. 1221e-3, 1406, 1411-1419, unless otherwise 
noted.

    Source: 71 FR 46753, Aug. 14, 2006, unless otherwise noted.



                            Subpart A_General

                       Purposes and Applicability



Sec. 300.1  Purposes.

    The purposes of this part are--
    (a) To ensure that all children with disabilities have available to 
them a free appropriate public education that emphasizes special 
education and related services designed to meet their unique needs and 
prepare them for further education, employment, and independent living;

[[Page 11]]

    (b) To ensure that the rights of children with disabilities and 
their parents are protected;
    (c) To assist States, localities, educational service agencies, and 
Federal agencies to provide for the education of all children with 
disabilities; and
    (d) To assess and ensure the effectiveness of efforts to educate 
children with disabilities.

(Authority: 20 U.S.C. 1400(d))



Sec. 300.2  Applicability of this part to State and local agencies.

    (a) States. This part applies to each State that receives payments 
under Part B of the Act, as defined in Sec. 300.4.
    (b) Public agencies within the State. The provisions of this part--
    (1) Apply to all political subdivisions of the State that are 
involved in the education of children with disabilities, including:
    (i) The State educational agency (SEA).
    (ii) Local educational agencies (LEAs), educational service agencies 
(ESAs), and public charter schools that are not otherwise included as 
LEAs or ESAs and are not a school of an LEA or ESA.
    (iii) Other State agencies and schools (such as Departments of 
Mental Health and Welfare and State schools for children with deafness 
or children with blindness).
    (iv) State and local juvenile and adult correctional facilities; and
    (2) Are binding on each public agency in the State that provides 
special education and related services to children with disabilities, 
regardless of whether that agency is receiving funds under Part B of the 
Act.
    (c) Private schools and facilities. Each public agency in the State 
is responsible for ensuring that the rights and protections under Part B 
of the Act are given to children with disabilities--
    (1) Referred to or placed in private schools and facilities by that 
public agency; or
    (2) Placed in private schools by their parents under the provisions 
of Sec. 300.148.

(Authority: 20 U.S.C. 1412)

                      Definitions Used in This Part



Sec. 300.4  Act.

    Act means the Individuals with Disabilities Education Act, as 
amended.

(Authority: 20 U.S.C. 1400(a))



Sec. 300.5  Assistive technology device.

    Assistive technology device means any item, piece of equipment, or 
product system, whether acquired commercially off the shelf, modified, 
or customized, that is used to increase, maintain, or improve the 
functional capabilities of a child with a disability. The term does not 
include a medical device that is surgically implanted, or the 
replacement of such device.

(Authority: 20 U.S.C. 1401(1))



Sec. 300.6  Assistive technology service.

    Assistive technology service means any service that directly assists 
a child with a disability in the selection, acquisition, or use of an 
assistive technology device. The term includes--
    (a) The evaluation of the needs of a child with a disability, 
including a functional evaluation of the child in the child's customary 
environment;
    (b) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by children with disabilities;
    (c) Selecting, designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing assistive technology devices;
    (d) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing education and rehabilitation plans and programs;
    (e) Training or technical assistance for a child with a disability 
or, if appropriate, that child's family; and
    (f) Training or technical assistance for professionals (including 
individuals providing education or rehabilitation services), employers, 
or other individuals who provide services to, employ, or are otherwise 
substantially involved in the major life functions of that child.

(Authority: 20 U.S.C. 1401(2))

[[Page 12]]



Sec. 300.7  Charter school.

    Charter school has the meaning given the term in section 5210(1) of 
the Elementary and Secondary Education Act of 1965, as amended, 20 
U.S.C. 6301 et seq. (ESEA).

(Authority: 20 U.S.C. 7221i(1))



Sec. 300.8  Child with a disability.

    (a) General. (1) Child with a disability means a child evaluated in 
accordance with Sec. Sec. 300.304 through 300.311 as having mental 
retardation, a hearing impairment (including deafness), a speech or 
language impairment, a visual impairment (including blindness), a 
serious emotional disturbance (referred to in this part as ``emotional 
disturbance''), an orthopedic impairment, autism, traumatic brain 
injury, an other health impairment, a specific learning disability, 
deaf-blindness, or multiple disabilities, and who, by reason thereof, 
needs special education and related services.
    (2)(i) Subject to paragraph (a)(2)(ii) of this section, if it is 
determined, through an appropriate evaluation under Sec. Sec. 300.304 
through 300.311, that a child has one of the disabilities identified in 
paragraph (a)(1) of this section, but only needs a related service and 
not special education, the child is not a child with a disability under 
this part.
    (ii) If, consistent with Sec. 300.39(a)(2), the related service 
required by the child is considered special education rather than a 
related service under State standards, the child would be determined to 
be a child with a disability under paragraph (a)(1) of this section.
    (b) Children aged three through nine experiencing developmental 
delays. Child with a disability for children aged three through nine (or 
any subset of that age range, including ages three through five), may, 
subject to the conditions described in Sec. 300.111(b), include a 
child--
    (1) Who is experiencing developmental delays, as defined by the 
State and as measured by appropriate diagnostic instruments and 
procedures, in one or more of the following areas: Physical development, 
cognitive development, communication development, social or emotional 
development, or adaptive development; and
    (2) Who, by reason thereof, needs special education and related 
services.
    (c) Definitions of disability terms. The terms used in this 
definition of a child with a disability are defined as follows:
    (1)(i) Autism means a developmental disability significantly 
affecting verbal and nonverbal communication and social interaction, 
generally evident before age three, that adversely affects a child's 
educational performance. Other characteristics often associated with 
autism are engagement in repetitive activities and stereotyped 
movements, resistance to environmental change or change in daily 
routines, and unusual responses to sensory experiences.
    (ii) Autism does not apply if a child's educational performance is 
adversely affected primarily because the child has an emotional 
disturbance, as defined in paragraph (c)(4) of this section.
    (iii) A child who manifests the characteristics of autism after age 
three could be identified as having autism if the criteria in paragraph 
(c)(1)(i) of this section are satisfied.
    (2) Deaf-blindness means concomitant hearing and visual impairments, 
the combination of which causes such severe communication and other 
developmental and educational needs that they cannot be accommodated in 
special education programs solely for children with deafness or children 
with blindness.
    (3) Deafness means a hearing impairment that is so severe that the 
child is impaired in processing linguistic information through hearing, 
with or without amplification, that adversely affects a child's 
educational performance.
    (4)(i) Emotional disturbance means a condition exhibiting one or 
more of the following characteristics over a long period of time and to 
a marked degree that adversely affects a child's educational 
performance:
    (A) An inability to learn that cannot be explained by intellectual, 
sensory, or health factors.
    (B) An inability to build or maintain satisfactory interpersonal 
relationships with peers and teachers.
    (C) Inappropriate types of behavior or feelings under normal 
circumstances.
    (D) A general pervasive mood of unhappiness or depression.

[[Page 13]]

    (E) A tendency to develop physical symptoms or fears associated with 
personal or school problems.
    (ii) Emotional disturbance includes schizophrenia. The term does not 
apply to children who are socially maladjusted, unless it is determined 
that they have an emotional disturbance under paragraph (c)(4)(i) of 
this section.
    (5) Hearing impairment means an impairment in hearing, whether 
permanent or fluctuating, that adversely affects a child's educational 
performance but that is not included under the definition of deafness in 
this section.
    (6) Mental retardation means significantly subaverage general 
intellectual functioning, existing concurrently with deficits in 
adaptive behavior and manifested during the developmental period, that 
adversely affects a child's educational performance.
    (7) Multiple disabilities means concomitant impairments (such as 
mental retardation-blindness or mental retardation-orthopedic 
impairment), the combination of which causes such severe educational 
needs that they cannot be accommodated in special education programs 
solely for one of the impairments. Multiple disabilities does not 
include deaf-blindness.
    (8) Orthopedic impairment means a severe orthopedic impairment that 
adversely affects a child's educational performance. The term includes 
impairments caused by a congenital anomaly, impairments caused by 
disease (e.g., poliomyelitis, bone tuberculosis), and impairments from 
other causes (e.g., cerebral palsy, amputations, and fractures or burns 
that cause contractures).
    (9) Other health impairment means having limited strength, vitality, 
or alertness, including a heightened alertness to environmental stimuli, 
that results in limited alertness with respect to the educational 
environment, that--
    (i) Is due to chronic or acute health problems such as asthma, 
attention deficit disorder or attention deficit hyperactivity disorder, 
diabetes, epilepsy, a heart condition, hemophilia, lead poisoning, 
leukemia, nephritis, rheumatic fever, sickle cell anemia, and Tourette 
syndrome; and
    (ii) Adversely affects a child's educational performance.
    (10) Specific learning disability--(i) General. Specific learning 
disability means a disorder in one or more of the basic psychological 
processes involved in understanding or in using language, spoken or 
written, that may manifest itself in the imperfect ability to listen, 
think, speak, read, write, spell, or to do mathematical calculations, 
including conditions such as perceptual disabilities, brain injury, 
minimal brain dysfunction, dyslexia, and developmental aphasia.
    (ii) Disorders not included. Specific learning disability does not 
include learning problems that are primarily the result of visual, 
hearing, or motor disabilities, of mental retardation, of emotional 
disturbance, or of environmental, cultural, or economic disadvantage.
    (11) Speech or language impairment means a communication disorder, 
such as stuttering, impaired articulation, a language impairment, or a 
voice impairment, that adversely affects a child's educational 
performance.
    (12) Traumatic brain injury means an acquired injury to the brain 
caused by an external physical force, resulting in total or partial 
functional disability or psychosocial impairment, or both, that 
adversely affects a child's educational performance. Traumatic brain 
injury applies to open or closed head injuries resulting in impairments 
in one or more areas, such as cognition; language; memory; attention; 
reasoning; abstract thinking; judgment; problem-solving; sensory, 
perceptual, and motor abilities; psychosocial behavior; physical 
functions; information processing; and speech. Traumatic brain injury 
does not apply to brain injuries that are congenital or degenerative, or 
to brain injuries induced by birth trauma.
    (13) Visual impairment including blindness means an impairment in 
vision that, even with correction, adversely affects a child's 
educational performance. The term includes both partial sight and 
blindness.

(Authority: 20 U.S.C. 1401(3); 1401(30))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]

[[Page 14]]



Sec. 300.9  Consent.

    Consent means that--
    (a) The parent has been fully informed of all information relevant 
to the activity for which consent is sought, in his or her native 
language, or through another mode of communication;
    (b) The parent understands and agrees in writing to the carrying out 
of the activity for which his or her consent is sought, and the consent 
describes that activity and lists the records (if any) that will be 
released and to whom; and
    (c)(1) The parent understands that the granting of consent is 
voluntary on the part of the parent and may be revoked at any time.
    (2) If a parent revokes consent, that revocation is not retroactive 
(i.e., it does not negate an action that has occurred after the consent 
was given and before the consent was revoked).
    (3) If the parent revokes consent in writing for their child's 
receipt of special education services after the child is initially 
provided special education and related services, the public agency is 
not required to amend the child's education records to remove any 
references to the child's receipt of special education and related 
services because of the revocation of consent.

(Authority: 20 U.S.C. 1414(a)(1)(D))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007; 
73 FR 73027, Dec. 1, 2008]



Sec. 300.10  Core academic subjects.

    Core academic subjects means English, reading or language arts, 
mathematics, science, foreign languages, civics and government, 
economics, arts, history, and geography.

(Authority: 20 U.S.C. 1401(4))



Sec. 300.11  Day; business day; school day.

    (a) Day means calendar day unless otherwise indicated as business 
day or school day.
    (b) Business day means Monday through Friday, except for Federal and 
State holidays (unless holidays are specifically included in the 
designation of business day, as in Sec. 300.148(d)(1)(ii)).
    (c)(1) School day means any day, including a partial day that 
children are in attendance at school for instructional purposes.
    (2) School day has the same meaning for all children in school, 
including children with and without disabilities.

(Authority: 20 U.S.C. 1221e-3)



Sec. 300.12  Educational service agency.

    Educational service agency means--
    (a) A regional public multiservice agency--
    (1) Authorized by State law to develop, manage, and provide services 
or programs to LEAs;
    (2) Recognized as an administrative agency for purposes of the 
provision of special education and related services provided within 
public elementary schools and secondary schools of the State;
    (b) Includes any other public institution or agency having 
administrative control and direction over a public elementary school or 
secondary school; and
    (c) Includes entities that meet the definition of intermediate 
educational unit in section 602(23) of the Act as in effect prior to 
June 4, 1997.

(Authority: 20 U.S.C. 1401(5))



Sec. 300.13  Elementary school.

    Elementary school means a nonprofit institutional day or residential 
school, including a public elementary charter school, that provides 
elementary education, as determined under State law.

(Authority: 20 U.S.C. 1401(6))



Sec. 300.14  Equipment.

    Equipment means--
    (a) Machinery, utilities, and built-in equipment, and any necessary 
enclosures or structures to house the machinery, utilities, or 
equipment; and
    (b) All other items necessary for the functioning of a particular 
facility as a facility for the provision of educational services, 
including items such as instructional equipment and necessary furniture; 
printed, published and audio-visual instructional materials; 
telecommunications, sensory, and other technological aids and devices; 
and books, periodicals, documents, and other related materials.

(Authority: 20 U.S.C. 1401(7))

[[Page 15]]



Sec. 300.15  Evaluation.

    Evaluation means procedures used in accordance with Sec. Sec. 
300.304 through 300.311 to determine whether a child has a disability 
and the nature and extent of the special education and related services 
that the child needs.

(Authority: 20 U.S.C. 1414(a) (c))



Sec. 300.16  Excess costs.

    Excess costs means those costs that are in excess of the average 
annual per-student expenditure in an LEA during the preceding school 
year for an elementary school or secondary school student, as may be 
appropriate, and that must be computed after deducting--
    (a) Amounts received--
    (1) Under Part B of the Act;
    (2) Under Part A of title I of the ESEA; and
    (3) Under Parts A and B of title III of the ESEA and;
    (b) Any State or local funds expended for programs that would 
qualify for assistance under any of the parts described in paragraph (a) 
of this section, but excluding any amounts for capital outlay or debt 
service. (See appendix A to part 300 for an example of how excess costs 
must be calculated.)

(Authority: 20 U.S.C. 1401(8))



Sec. 300.17  Free appropriate public education.

    Free appropriate public education or FAPE means special education 
and related services that--
    (a) Are provided at public expense, under public supervision and 
direction, and without charge;
    (b) Meet the standards of the SEA, including the requirements of 
this part;
    (c) Include an appropriate preschool, elementary school, or 
secondary school education in the State involved; and
    (d) Are provided in conformity with an individualized education 
program (IEP) that meets the requirements of Sec. Sec. 300.320 through 
300.324.

(Authority: 20 U.S.C. 1401(9))



Sec. 300.18  Highly qualified special education teachers.

    (a) Requirements for special education teachers teaching core 
academic subjects. For any public elementary or secondary school special 
education teacher teaching core academic subjects, the term highly 
qualified has the meaning given the term in section 9101 of the ESEA and 
34 CFR 200.56, except that the requirements for highly qualified also--
    (1) Include the requirements described in paragraph (b) of this 
section; and
    (2) Include the option for teachers to meet the requirements of 
section 9101 of the ESEA by meeting the requirements of paragraphs (c) 
and (d) of this section.
    (b) Requirements for special education teachers in general. (1) When 
used with respect to any public elementary school or secondary school 
special education teacher teaching in a State, highly qualified requires 
that--
    (i) The teacher has obtained full State certification as a special 
education teacher (including certification obtained through alternative 
routes to certification), or passed the State special education teacher 
licensing examination, and holds a license to teach in the State as a 
special education teacher, except that when used with respect to any 
teacher teaching in a public charter school, highly qualified means that 
the teacher meets the certification or licensing requirements, if any, 
set forth in the State's public charter school law;
    (ii) The teacher has not had special education certification or 
licensure requirements waived on an emergency, temporary, or provisional 
basis; and
    (iii) The teacher holds at least a bachelor's degree.
    (2) A teacher will be considered to meet the standard in paragraph 
(b)(1)(i) of this section if that teacher is participating in an 
alternative route to special education certification program under 
which--
    (i) The teacher--
    (A) Receives high-quality professional development that is 
sustained, intensive, and classroom-focused in

[[Page 16]]

order to have a positive and lasting impact on classroom instruction, 
before and while teaching;
    (B) Participates in a program of intensive supervision that consists 
of structured guidance and regular ongoing support for teachers or a 
teacher mentoring program;
    (C) Assumes functions as a teacher only for a specified period of 
time not to exceed three years; and
    (D) Demonstrates satisfactory progress toward full certification as 
prescribed by the State; and
    (ii) The State ensures, through its certification and licensure 
process, that the provisions in paragraph (b)(2)(i) of this section are 
met.
    (3) Any public elementary school or secondary school special 
education teacher teaching in a State, who is not teaching a core 
academic subject, is highly qualified if the teacher meets the 
requirements in paragraph (b)(1) or the requirements in (b)(1)(iii) and 
(b)(2) of this section.
    (c) Requirements for special education teachers teaching to 
alternate academic achievement standards. When used with respect to a 
special education teacher who teaches core academic subjects exclusively 
to children who are assessed against alternate academic achievement 
standards established under 34 CFR 200.1(d), highly qualified means the 
teacher, whether new or not new to the profession, may either--
    (1) Meet the applicable requirements of section 9101 of the ESEA and 
34 CFR 200.56 for any elementary, middle, or secondary school teacher 
who is new or not new to the profession; or
    (2) Meet the requirements of paragraph (B) or (C) of section 
9101(23) of the ESEA as applied to an elementary school teacher, or, in 
the case of instruction above the elementary level, meet the 
requirements of paragraph (B) or (C) of section 9101(23) of the ESEA as 
applied to an elementary school teacher and have subject matter 
knowledge appropriate to the level of instruction being provided and 
needed to effectively teach to those alternate academic achievement 
standards, as determined by the State.
    (d) Requirements for special education teachers teaching multiple 
subjects. Subject to paragraph (e) of this section, when used with 
respect to a special education teacher who teaches two or more core 
academic subjects exclusively to children with disabilities, highly 
qualified means that the teacher may either--
    (1) Meet the applicable requirements of section 9101 of the ESEA and 
34 CFR 200.56(b) or (c);
    (2) In the case of a teacher who is not new to the profession, 
demonstrate competence in all the core academic subjects in which the 
teacher teaches in the same manner as is required for an elementary, 
middle, or secondary school teacher who is not new to the profession 
under 34 CFR 200.56(c) which may include a single, high objective 
uniform State standard of evaluation (HOUSSE) covering multiple 
subjects; or
    (3) In the case of a new special education teacher who teaches 
multiple subjects and who is highly qualified in mathematics, language 
arts, or science, demonstrate, not later than two years after the date 
of employment, competence in the other core academic subjects in which 
the teacher teaches in the same manner as is required for an elementary, 
middle, or secondary school teacher under 34 CFR 200.56(c), which may 
include a single HOUSSE covering multiple subjects.
    (e) Separate HOUSSE standards for special education teachers. 
Provided that any adaptations of the State's HOUSSE would not establish 
a lower standard for the content knowledge requirements for special 
education teachers and meet all the requirements for a HOUSSE for 
regular education teachers--
    (1) A State may develop a separate HOUSSE for special education 
teachers; and
    (2) The standards described in paragraph (e)(1) of this section may 
include single HOUSSE evaluations that cover multiple subjects.
    (f) Rule of construction. Notwithstanding any other individual right 
of action that a parent or student may maintain under this part, nothing 
in this part shall be construed to create a right of action on behalf of 
an individual student or class of students for the failure of a 
particular SEA or LEA employee to be highly qualified, or to

[[Page 17]]

prevent a parent from filing a complaint under Sec. Sec. 300.151 
through 300.153 about staff qualifications with the SEA as provided for 
under this part.
    (g) Applicability of definition to ESEA; and clarification of new 
special education teacher. (1) A teacher who is highly qualified under 
this section is considered highly qualified for purposes of the ESEA.
    (2) For purposes of Sec. 300.18(d)(3), a fully certified regular 
education teacher who subsequently becomes fully certified or licensed 
as a special education teacher is a new special education teacher when 
first hired as a special education teacher.
    (h) Private school teachers not covered. The requirements in this 
section do not apply to teachers hired by private elementary schools and 
secondary schools including private school teachers hired or contracted 
by LEAs to provide equitable services to parentally-placed private 
school children with disabilities under Sec. 300.138.

(Authority: 20 U.S.C. 1401(10))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]



Sec. 300.19  Homeless children.

    Homeless children has the meaning given the term homeless children 
and youths in section 725 (42 U.S.C. 11434a) of the McKinney-Vento 
Homeless Assistance Act, as amended, 42 U.S.C. 11431 et seq.

(Authority: 20 U.S.C. 1401(11))



Sec. 300.20  Include.

    Include means that the items named are not all of the possible items 
that are covered, whether like or unlike the ones named.

(Authority: 20 U.S.C. 1221e-3)



Sec. 300.21  Indian and Indian tribe.

    (a) Indian means an individual who is a member of an Indian tribe.
    (b) Indian tribe means any Federal or State Indian tribe, band, 
rancheria, pueblo, colony, or community, including any Alaska Native 
village or regional village corporation (as defined in or established 
under the Alaska Native Claims Settlement Act, 43 U.S.C. 1601 et seq.).
    (c) Nothing in this definition is intended to indicate that the 
Secretary of the Interior is required to provide services or funding to 
a State Indian tribe that is not listed in the Federal Register list of 
Indian entities recognized as eligible to receive services from the 
United States, published pursuant to Section 104 of the Federally 
Recognized Indian Tribe List Act of 1994, 25 U.S.C. 479a-1.

(Authority: 20 U.S.C. 1401(12) and (13))



Sec. 300.22  Individualized education program.

    Individualized education program or IEP means a written statement 
for a child with a disability that is developed, reviewed, and revised 
in accordance with Sec. Sec. 300.320 through 300.324.

(Authority: 20 U.S.C. 1401(14))



Sec. 300.23  Individualized education program team.

    Individualized education program team or IEP Team means a group of 
individuals described in Sec. 300.321 that is responsible for 
developing, reviewing, or revising an IEP for a child with a disability.

(Authority: 20 U.S.C. 1414(d)(1)(B))



Sec. 300.24  Individualized family service plan.

    Individualized family service plan or IFSP has the meaning given the 
term in section 636 of the Act.

(Authority: 20 U.S.C. 1401(15))



Sec. 300.25  Infant or toddler with a disability.

    Infant or toddler with a disability--
    (a) Means an individual under three years of age who needs early 
intervention services because the individual--
    (1) Is experiencing developmental delays, as measured by appropriate 
diagnostic instruments and procedures in one or more of the areas of 
cognitive development, physical development, communication development, 
social or emotional development, and adaptive development; or
    (2) Has a diagnosed physical or mental condition that has a high 
probability of resulting in developmental delay; and

[[Page 18]]

    (b) May also include, at a State's discretion--
    (1) At-risk infants and toddlers; and
    (2) Children with disabilities who are eligible for services under 
section 619 and who previously received services under Part C of the Act 
until such children enter, or are eligible under State law to enter, 
kindergarten or elementary school, as appropriate, provided that any 
programs under Part C of the Act serving such children shall include--
    (i) An educational component that promotes school readiness and 
incorporates pre-literacy, language, and numeracy skills; and
    (ii) A written notification to parents of their rights and 
responsibilities in determining whether their child will continue to 
receive services under Part C of the Act or participate in preschool 
programs under section 619.

(Authority: 20 U.S.C. 1401(16) and 1432(5))



Sec. 300.26  Institution of higher education.

    Institution of higher education--
    (a) Has the meaning given the term in section 101 of the Higher 
Education Act of 1965, as amended, 20 U.S.C. 1021 et seq. (HEA); and
    (b) Also includes any community college receiving funds from the 
Secretary of the Interior under the Tribally Controlled Community 
College or University Assistance Act of 1978, 25 U.S.C. 1801, et seq.

(Authority: 20 U.S.C. 1401(17))



Sec. 300.27  Limited English proficient.

    Limited English proficient has the meaning given the term in section 
9101(25) of the ESEA.

(Authority: 20 U.S.C. 1401(18))



Sec. 300.28  Local educational agency.

    (a) General. Local educational agency or LEA means a public board of 
education or other public authority legally constituted within a State 
for either administrative control or direction of, or to perform a 
service function for, public elementary or secondary schools in a city, 
county, township, school district, or other political subdivision of a 
State, or for a combination of school districts or counties as are 
recognized in a State as an administrative agency for its public 
elementary schools or secondary schools.
    (b) Educational service agencies and other public institutions or 
agencies. The term includes--
    (1) An educational service agency, as defined in Sec. 300.12; and
    (2) Any other public institution or agency having administrative 
control and direction of a public elementary school or secondary school, 
including a public nonprofit charter school that is established as an 
LEA under State law.
    (c) BIA funded schools. The term includes an elementary school or 
secondary school funded by the Bureau of Indian Affairs, and not subject 
to the jurisdiction of any SEA other than the Bureau of Indian Affairs, 
but only to the extent that the inclusion makes the school eligible for 
programs for which specific eligibility is not provided to the school in 
another provision of law and the school does not have a student 
population that is smaller than the student population of the LEA 
receiving assistance under the Act with the smallest student population.

(Authority: 20 U.S.C. 1401(19))



Sec. 300.29  Native language.

    (a) Native language, when used with respect to an individual who is 
limited English proficient, means the following:
    (1) The language normally used by that individual, or, in the case 
of a child, the language normally used by the parents of the child, 
except as provided in paragraph (a)(2) of this section.
    (2) In all direct contact with a child (including evaluation of the 
child), the language normally used by the child in the home or learning 
environment.
    (b) For an individual with deafness or blindness, or for an 
individual with no written language, the mode of communication is that 
normally used by the individual (such as sign language, Braille, or oral 
communication).

(Authority: 20 U.S.C. 1401(20))



Sec. 300.30  Parent.

    (a) Parent means--

[[Page 19]]

    (1) A biological or adoptive parent of a child;
    (2) A foster parent, unless State law, regulations, or contractual 
obligations with a State or local entity prohibit a foster parent from 
acting as a parent;
    (3) A guardian generally authorized to act as the child's parent, or 
authorized to make educational decisions for the child (but not the 
State if the child is a ward of the State);
    (4) An individual acting in the place of a biological or adoptive 
parent (including a grandparent, stepparent, or other relative) with 
whom the child lives, or an individual who is legally responsible for 
the child's welfare; or
    (5) A surrogate parent who has been appointed in accordance with 
Sec. 300.519 or section 639(a)(5) of the Act.
    (b) (1) Except as provided in paragraph (b)(2) of this section, the 
biological or adoptive parent, when attempting to act as the parent 
under this part and when more than one party is qualified under 
paragraph (a) of this section to act as a parent, must be presumed to be 
the parent for purposes of this section unless the biological or 
adoptive parent does not have legal authority to make educational 
decisions for the child.
    (2) If a judicial decree or order identifies a specific person or 
persons under paragraphs (a)(1) through (4) of this section to act as 
the ``parent'' of a child or to make educational decisions on behalf of 
a child, then such person or persons shall be determined to be the 
``parent'' for purposes of this section.

(Authority: 20 U.S.C. 1401(23))



Sec. 300.31  Parent training and information center.

    Parent training and information center means a center assisted under 
sections 671 or 672 of the Act.

(Authority: 20 U.S.C. 1401(25))



Sec. 300.32  Personally identifiable.

    Personally identifiable means information that contains--
    (a) The name of the child, the child's parent, or other family 
member;
    (b) The address of the child;
    (c) A personal identifier, such as the child's social security 
number or student number; or
    (d) A list of personal characteristics or other information that 
would make it possible to identify the child with reasonable certainty.

(Authority: 20 U.S.C. 1415(a))



Sec. 300.33  Public agency.

    Public agency includes the SEA, LEAs, ESAs, nonprofit public charter 
schools that are not otherwise included as LEAs or ESAs and are not a 
school of an LEA or ESA, and any other political subdivisions of the 
State that are responsible for providing education to children with 
disabilities.

(Authority: 20 U.S.C. 1412(a)(11))



Sec. 300.34  Related services.

    (a) General. Related services means transportation and such 
developmental, corrective, and other supportive services as are required 
to assist a child with a disability to benefit from special education, 
and includes speech-language pathology and audiology services, 
interpreting services, psychological services, physical and occupational 
therapy, recreation, including therapeutic recreation, early 
identification and assessment of disabilities in children, counseling 
services, including rehabilitation counseling, orientation and mobility 
services, and medical services for diagnostic or evaluation purposes. 
Related services also include school health services and school nurse 
services, social work services in schools, and parent counseling and 
training.
    (b) Exception; services that apply to children with surgically 
implanted devices, including cochlear implants. (1) Related services do 
not include a medical device that is surgically implanted, the 
optimization of that device's functioning (e.g., mapping), maintenance 
of that device, or the replacement of that device.
    (2) Nothing in paragraph (b)(1) of this section--
    (i) Limits the right of a child with a surgically implanted device 
(e.g., cochlear implant) to receive related services (as listed in 
paragraph (a) of this section) that are determined by the

[[Page 20]]

IEP Team to be necessary for the child to receive FAPE.
    (ii) Limits the responsibility of a public agency to appropriately 
monitor and maintain medical devices that are needed to maintain the 
health and safety of the child, including breathing, nutrition, or 
operation of other bodily functions, while the child is transported to 
and from school or is at school; or
    (iii) Prevents the routine checking of an external component of a 
surgically implanted device to make sure it is functioning properly, as 
required in Sec. 300.113(b).
    (c) Individual related services terms defined. The terms used in 
this definition are defined as follows:
    (1) Audiology includes--
    (i) Identification of children with hearing loss;
    (ii) Determination of the range, nature, and degree of hearing loss, 
including referral for medical or other professional attention for the 
habilitation of hearing;
    (iii) Provision of habilitative activities, such as language 
habilitation, auditory training, speech reading (lip-reading), hearing 
evaluation, and speech conservation;
    (iv) Creation and administration of programs for prevention of 
hearing loss;
    (v) Counseling and guidance of children, parents, and teachers 
regarding hearing loss; and
    (vi) Determination of children's needs for group and individual 
amplification, selecting and fitting an appropriate aid, and evaluating 
the effectiveness of amplification.
    (2) Counseling services means services provided by qualified social 
workers, psychologists, guidance counselors, or other qualified 
personnel.
    (3) Early identification and assessment of disabilities in children 
means the implementation of a formal plan for identifying a disability 
as early as possible in a child's life.
    (4) Interpreting services includes--
    (i) The following, when used with respect to children who are deaf 
or hard of hearing: Oral transliteration services, cued language 
transliteration services, sign language transliteration and interpreting 
services, and transcription services, such as communication access real-
time translation (CART), C-Print, and TypeWell; and
    (ii) Special interpreting services for children who are deaf-blind.
    (5) Medical services means services provided by a licensed physician 
to determine a child's medically related disability that results in the 
child's need for special education and related services.
    (6) Occupational therapy--
    (i) Means services provided by a qualified occupational therapist; 
and
    (ii) Includes--
    (A) Improving, developing, or restoring functions impaired or lost 
through illness, injury, or deprivation;
    (B) Improving ability to perform tasks for independent functioning 
if functions are impaired or lost; and
    (C) Preventing, through early intervention, initial or further 
impairment or loss of function.
    (7) Orientation and mobility services--
    (i) Means services provided to blind or visually impaired children 
by qualified personnel to enable those students to attain systematic 
orientation to and safe movement within their environments in school, 
home, and community; and
    (ii) Includes teaching children the following, as appropriate:
    (A) Spatial and environmental concepts and use of information 
received by the senses (such as sound, temperature and vibrations) to 
establish, maintain, or regain orientation and line of travel (e.g., 
using sound at a traffic light to cross the street);
    (B) To use the long cane or a service animal to supplement visual 
travel skills or as a tool for safely negotiating the environment for 
children with no available travel vision;
    (C) To understand and use remaining vision and distance low vision 
aids; and
    (D) Other concepts, techniques, and tools.
    (8)(i) Parent counseling and training means assisting parents in 
understanding the special needs of their child;
    (ii) Providing parents with information about child development; and
    (iii) Helping parents to acquire the necessary skills that will 
allow them

[[Page 21]]

to support the implementation of their child's IEP or IFSP.
    (9) Physical therapy means services provided by a qualified physical 
therapist.
    (10) Psychological services includes--
    (i) Administering psychological and educational tests, and other 
assessment procedures;
    (ii) Interpreting assessment results;
    (iii) Obtaining, integrating, and interpreting information about 
child behavior and conditions relating to learning;
    (iv) Consulting with other staff members in planning school programs 
to meet the special educational needs of children as indicated by 
psychological tests, interviews, direct observation, and behavioral 
evaluations;
    (v) Planning and managing a program of psychological services, 
including psychological counseling for children and parents; and
    (vi) Assisting in developing positive behavioral intervention 
strategies.
    (11) Recreation includes--
    (i) Assessment of leisure function;
    (ii) Therapeutic recreation services;
    (iii) Recreation programs in schools and community agencies; and
    (iv) Leisure education.
    (12) Rehabilitation counseling services means services provided by 
qualified personnel in individual or group sessions that focus 
specifically on career development, employment preparation, achieving 
independence, and integration in the workplace and community of a 
student with a disability. The term also includes vocational 
rehabilitation services provided to a student with a disability by 
vocational rehabilitation programs funded under the Rehabilitation Act 
of 1973, as amended, 29 U.S.C. 701 et seq.
    (13) School health services and school nurse services means health 
services that are designed to enable a child with a disability to 
receive FAPE as described in the child's IEP. School nurse services are 
services provided by a qualified school nurse. School health services 
are services that may be provided by either a qualified school nurse or 
other qualified person.
    (14) Social work services in schools includes--
    (i) Preparing a social or developmental history on a child with a 
disability;
    (ii) Group and individual counseling with the child and family;
    (iii) Working in partnership with parents and others on those 
problems in a child's living situation (home, school, and community) 
that affect the child's adjustment in school;
    (iv) Mobilizing school and community resources to enable the child 
to learn as effectively as possible in his or her educational program; 
and
    (v) Assisting in developing positive behavioral intervention 
strategies.
    (15) Speech-language pathology services includes--
    (i) Identification of children with speech or language impairments;
    (ii) Diagnosis and appraisal of specific speech or language 
impairments;
    (iii) Referral for medical or other professional attention necessary 
for the habilitation of speech or language impairments;
    (iv) Provision of speech and language services for the habilitation 
or prevention of communicative impairments; and
    (v) Counseling and guidance of parents, children, and teachers 
regarding speech and language impairments.
    (16) Transportation includes--
    (i) Travel to and from school and between schools;
    (ii) Travel in and around school buildings; and
    (iii) Specialized equipment (such as special or adapted buses, 
lifts, and ramps), if required to provide special transportation for a 
child with a disability.

(Authority: 20 U.S.C. 1401(26))



Sec. 300.35  Scientifically based research.

    Scientifically based research has the meaning given the term in 
section 9101(37) of the ESEA.

(Authority: 20 U.S.C. 1411(e)(2)(C)(xi))



Sec. 300.36  Secondary school.

    Secondary school means a nonprofit institutional day or residential 
school, including a public secondary charter school that provides 
secondary education, as determined under State law,

[[Page 22]]

except that it does not include any education beyond grade 12.

(Authority: 20 U.S.C. 1401(27))



Sec. 300.37  Services plan.

    Services plan means a written statement that describes the special 
education and related services the LEA will provide to a parentally-
placed child with a disability enrolled in a private school who has been 
designated to receive services, including the location of the services 
and any transportation necessary, consistent with Sec. 300.132, and is 
developed and implemented in accordance with Sec. Sec. 300.137 through 
300.139.

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.38  Secretary.

    Secretary means the Secretary of Education.

(Authority: 20 U.S.C. 1401(28))



Sec. 300.39  Special education.

    (a) General. (1) Special education means specially designed 
instruction, at no cost to the parents, to meet the unique needs of a 
child with a disability, including--
    (i) Instruction conducted in the classroom, in the home, in 
hospitals and institutions, and in other settings; and
    (ii) Instruction in physical education.
    (2) Special education includes each of the following, if the 
services otherwise meet the requirements of paragraph (a)(1) of this 
section--
    (i) Speech-language pathology services, or any other related 
service, if the service is considered special education rather than a 
related service under State standards;
    (ii) Travel training; and
    (iii) Vocational education.
    (b) Individual special education terms defined. The terms in this 
definition are defined as follows:
    (1) At no cost means that all specially-designed instruction is 
provided without charge, but does not preclude incidental fees that are 
normally charged to nondisabled students or their parents as a part of 
the regular education program.
    (2) Physical education means--
    (i) The development of--
    (A) Physical and motor fitness;
    (B) Fundamental motor skills and patterns; and
    (C) Skills in aquatics, dance, and individual and group games and 
sports (including intramural and lifetime sports); and
    (ii) Includes special physical education, adapted physical 
education, movement education, and motor development.
    (3) Specially designed instruction means adapting, as appropriate to 
the needs of an eligible child under this part, the content, 
methodology, or delivery of instruction--
    (i) To address the unique needs of the child that result from the 
child's disability; and
    (ii) To ensure access of the child to the general curriculum, so 
that the child can meet the educational standards within the 
jurisdiction of the public agency that apply to all children.
    (4) Travel training means providing instruction, as appropriate, to 
children with significant cognitive disabilities, and any other children 
with disabilities who require this instruction, to enable them to--
    (i) Develop an awareness of the environment in which they live; and
    (ii) Learn the skills necessary to move effectively and safely from 
place to place within that environment (e.g., in school, in the home, at 
work, and in the community).
    (5) Vocational education means organized educational programs that 
are directly related to the preparation of individuals for paid or 
unpaid employment, or for additional preparation for a career not 
requiring a baccalaureate or advanced degree.

(Authority: 20 U.S.C. 1401(29))



Sec. 300.40  State.

    State means each of the 50 States, the District of Columbia, the 
Commonwealth of Puerto Rico, and each of the outlying areas.

(Authority: 20 U.S.C. 1401(31))



Sec. 300.41  State educational agency.

    State educational agency or SEA means the State board of education 
or other agency or officer primarily responsible for the State 
supervision of

[[Page 23]]

public elementary schools and secondary schools, or, if there is no such 
officer or agency, an officer or agency designated by the Governor or by 
State law.

(Authority: 20 U.S.C. 1401(32))



Sec. 300.42  Supplementary aids and services.

    Supplementary aids and services means aids, services, and other 
supports that are provided in regular education classes, other 
education-related settings, and in extracurricular and nonacademic 
settings, to enable children with disabilities to be educated with 
nondisabled children to the maximum extent appropriate in accordance 
with Sec. Sec. 300.114 through 300.116.

(Authority: 20 U.S.C. 1401(33))



Sec. 300.43  Transition services.

    (a) Transition services means a coordinated set of activities for a 
child with a disability that--
    (1) Is designed to be within a results-oriented process, that is 
focused on improving the academic and functional achievement of the 
child with a disability to facilitate the child's movement from school 
to post-school activities, including postsecondary education, vocational 
education, integrated employment (including supported employment), 
continuing and adult education, adult services, independent living, or 
community participation;
    (2) Is based on the individual child's needs, taking into account 
the child's strengths, preferences, and interests; and includes--
    (i) Instruction;
    (ii) Related services;
    (iii) Community experiences;
    (iv) The development of employment and other post-school adult 
living objectives; and
    (v) If appropriate, acquisition of daily living skills and provision 
of a functional vocational evaluation.
    (b) Transition services for children with disabilities may be 
special education, if provided as specially designed instruction, or a 
related service, if required to assist a child with a disability to 
benefit from special education.

(Authority: 20 U.S.C. 1401(34))



Sec. 300.44  Universal design.

    Universal design has the meaning given the term in section 3 of the 
Assistive Technology Act of 1998, as amended, 29 U.S.C. 3002.

(Authority: 20 U.S.C. 1401(35))



Sec. 300.45  Ward of the State.

    (a) General. Subject to paragraph (b) of this section, ward of the 
State means a child who, as determined by the State where the child 
resides, is--
    (1) A foster child;
    (2) A ward of the State; or
    (3) In the custody of a public child welfare agency.
    (b) Exception. Ward of the State does not include a foster child who 
has a foster parent who meets the definition of a parent in Sec. 
300.30.

(Authority: 20 U.S.C. 1401(36))



                       Subpart B_State Eligibility

                                 General



Sec. 300.100  Eligibility for assistance.

    A State is eligible for assistance under Part B of the Act for a 
fiscal year if the State submits a plan that provides assurances to the 
Secretary that the State has in effect policies and procedures to ensure 
that the State meets the conditions in Sec. Sec. 300.101 through 
300.176.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a))

                            FAPE Requirements



Sec. 300.101  Free appropriate public education (FAPE).

    (a) General. A free appropriate public education must be available 
to all children residing in the State between the ages of 3 and 21, 
inclusive, including children with disabilities who have been suspended 
or expelled from school, as provided for in Sec. 300.530(d).
    (b) FAPE for children beginning at age 3. (1) Each State must ensure 
that--

[[Page 24]]

    (i) The obligation to make FAPE available to each eligible child 
residing in the State begins no later than the child's third birthday; 
and
    (ii) An IEP or an IFSP is in effect for the child by that date, in 
accordance with Sec. 300.323(b).
    (2) If a child's third birthday occurs during the summer, the 
child's IEP Team shall determine the date when services under the IEP or 
IFSP will begin.
    (c) Children advancing from grade to grade. (1) Each State must 
ensure that FAPE is available to any individual child with a disability 
who needs special education and related services, even though the child 
has not failed or been retained in a course or grade, and is advancing 
from grade to grade.
    (2) The determination that a child described in paragraph (a) of 
this section is eligible under this part, must be made on an individual 
basis by the group responsible within the child's LEA for making 
eligibility determinations.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(1)(A))



Sec. 300.102  Limitation--exception to FAPE for certain ages.

    (a) General. The obligation to make FAPE available to all children 
with disabilities does not apply with respect to the following:
    (1) Children aged 3, 4, 5, 18, 19, 20, or 21 in a State to the 
extent that its application to those children would be inconsistent with 
State law or practice, or the order of any court, respecting the 
provision of public education to children of those ages.
    (2)(i) Children aged 18 through 21 to the extent that State law does 
not require that special education and related services under Part B of 
the Act be provided to students with disabilities who, in the last 
educational placement prior to their incarceration in an adult 
correctional facility--
    (A) Were not actually identified as being a child with a disability 
under Sec. 300.8; and
    (B) Did not have an IEP under Part B of the Act.
    (ii) The exception in paragraph (a)(2)(i) of this section does not 
apply to children with disabilities, aged 18 through 21, who--
    (A) Had been identified as a child with a disability under Sec. 
300.8 and had received services in accordance with an IEP, but who left 
school prior to their incarceration; or
    (B) Did not have an IEP in their last educational setting, but who 
had actually been identified as a child with a disability under Sec. 
300.8.
    (3)(i) Children with disabilities who have graduated from high 
school with a regular high school diploma.
    (ii) The exception in paragraph (a)(3)(i) of this section does not 
apply to children who have graduated from high school but have not been 
awarded a regular high school diploma.
    (iii) Graduation from high school with a regular high school diploma 
constitutes a change in placement, requiring written prior notice in 
accordance with Sec. 300.503.
    (iv) As used in paragraphs (a)(3)(i) through (a)(3)(iii) of this 
section, the term regular high school diploma does not include an 
alternative degree that is not fully aligned with the State's academic 
standards, such as a certificate or a general educational development 
credential (GED).
    (4) Children with disabilities who are eligible under subpart H of 
this part, but who receive early intervention services under Part C of 
the Act.
    (b) Documents relating to exceptions. The State must assure that the 
information it has provided to the Secretary regarding the exceptions in 
paragraph (a) of this section, as required by Sec. 300.700 (for 
purposes of making grants to States under this part), is current and 
accurate.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(1)(B)-(C))

                         Other FAPE Requirements



Sec. 300.103  FAPE--methods and payments.

    (a) Each State may use whatever State, local, Federal, and private 
sources of support that are available in the State to meet the 
requirements of this part. For example, if it is necessary to place a 
child with a disability in a residential facility, a State could

[[Page 25]]

use joint agreements between the agencies involved for sharing the cost 
of that placement.
    (b) Nothing in this part relieves an insurer or similar third party 
from an otherwise valid obligation to provide or to pay for services 
provided to a child with a disability.
    (c) Consistent with Sec. 300.323(c), the State must ensure that 
there is no delay in implementing a child's IEP, including any case in 
which the payment source for providing or paying for special education 
and related services to the child is being determined.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1401(8), 1412(a)(1)).

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]



Sec. 300.104  Residential placement

    If placement in a public or private residential program is necessary 
to provide special education and related services to a child with a 
disability, the program, including non-medical care and room and board, 
must be at no cost to the parents of the child.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(1), 1412(a)(10)(B))



Sec. 300.105  Assistive technology.

    (a) Each public agency must ensure that assistive technology devices 
or assistive technology services, or both, as those terms are defined in 
Sec. Sec. 300.5 and 300.6, respectively, are made available to a child 
with a disability if required as a part of the child's--
    (1) Special education under Sec. 300.36;
    (2) Related services under Sec. 300.34; or
    (3) Supplementary aids and services under Sec. Sec. 300.38 and 
300.114(a)(2)(ii).
    (b) On a case-by-case basis, the use of school-purchased assistive 
technology devices in a child's home or in other settings is required if 
the child's IEP Team determines that the child needs access to those 
devices in order to receive FAPE.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(1), 1412(a)(12)(B)(i))



Sec. 300.106  Extended school year services.

    (a) General. (1) Each public agency must ensure that extended school 
year services are available as necessary to provide FAPE, consistent 
with paragraph (a)(2) of this section.
    (2) Extended school year services must be provided only if a child's 
IEP Team determines, on an individual basis, in accordance with 
Sec. Sec. 300.320 through 300.324, that the services are necessary for 
the provision of FAPE to the child.
    (3) In implementing the requirements of this section, a public 
agency may not--
    (i) Limit extended school year services to particular categories of 
disability; or
    (ii) Unilaterally limit the type, amount, or duration of those 
services.
    (b) Definition. As used in this section, the term extended school 
year services means special education and related services that--
    (1) Are provided to a child with a disability--
    (i) Beyond the normal school year of the public agency;
    (ii) In accordance with the child's IEP; and
    (iii) At no cost to the parents of the child; and
    (2) Meet the standards of the SEA.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(1))



Sec. 300.107  Nonacademic services.

    The State must ensure the following:
    (a) Each public agency must take steps, including the provision of 
supplementary aids and services determined appropriate and necessary by 
the child's IEP Team, to provide nonacademic and extracurricular 
services and activities in the manner necessary to afford children with 
disabilities an equal opportunity for participation in those services 
and activities.
    (b) Nonacademic and extracurricular services and activities may 
include counseling services, athletics, transportation, health services, 
recreational activities, special interest groups or clubs sponsored by 
the public agency,

[[Page 26]]

referrals to agencies that provide assistance to individuals with 
disabilities, and employment of students, including both employment by 
the public agency and assistance in making outside employment available.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(1))



Sec. 300.108  Physical education.

    The State must ensure that public agencies in the State comply with 
the following:
    (a) General. Physical education services, specially designed if 
necessary, must be made available to every child with a disability 
receiving FAPE, unless the public agency enrolls children without 
disabilities and does not provide physical education to children without 
disabilities in the same grades.
    (b) Regular physical education. Each child with a disability must be 
afforded the opportunity to participate in the regular physical 
education program available to nondisabled children unless--
    (1) The child is enrolled full time in a separate facility; or
    (2) The child needs specially designed physical education, as 
prescribed in the child's IEP.
    (c) Special physical education. If specially designed physical 
education is prescribed in a child's IEP, the public agency responsible 
for the education of that child must provide the services directly or 
make arrangements for those services to be provided through other public 
or private programs.
    (d) Education in separate facilities. The public agency responsible 
for the education of a child with a disability who is enrolled in a 
separate facility must ensure that the child receives appropriate 
physical education services in compliance with this section.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5)(A))



Sec. 300.109  Full educational opportunity goal (FEOG).

    The State must have in effect policies and procedures to demonstrate 
that the State has established a goal of providing full educational 
opportunity to all children with disabilities, aged birth through 21, 
and a detailed timetable for accomplishing that goal.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(2))



Sec. 300.110  Program options.

    The State must ensure that each public agency takes steps to ensure 
that its children with disabilities have available to them the variety 
of educational programs and services available to nondisabled children 
in the area served by the agency, including art, music, industrial arts, 
consumer and homemaking education, and vocational education.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(2), 1413(a)(1))



Sec. 300.111  Child find.

    (a) General. (1) The State must have in effect policies and 
procedures to ensure that--
    (i) All children with disabilities residing in the State, including 
children with disabilities who are homeless children or are wards of the 
State, and children with disabilities attending private schools, 
regardless of the severity of their disability, and who are in need of 
special education and related services, are identified, located, and 
evaluated; and
    (ii) A practical method is developed and implemented to determine 
which children are currently receiving needed special education and 
related services.
    (b) Use of term developmental delay. The following provisions apply 
with respect to implementing the child find requirements of this 
section:
    (1) A State that adopts a definition of developmental delay under 
Sec. 300.8(b) determines whether the term applies to children aged 
three through nine, or to a subset of that age range (e.g., ages three 
through five).
    (2) A State may not require an LEA to adopt and use the term 
developmental delay for any children within its jurisdiction.
    (3) If an LEA uses the term developmental delay for children 
described in Sec. 300.8(b), the LEA must conform to both the State's 
definition of that term

[[Page 27]]

and to the age range that has been adopted by the State.
    (4) If a State does not adopt the term developmental delay, an LEA 
may not independently use that term as a basis for establishing a 
child's eligibility under this part.
    (c) Other children in child find. Child find also must include--
    (1) Children who are suspected of being a child with a disability 
under Sec. 300.8 and in need of special education, even though they are 
advancing from grade to grade; and
    (2) Highly mobile children, including migrant children.
    (d) Construction. Nothing in the Act requires that children be 
classified by their disability so long as each child who has a 
disability that is listed in Sec. 300.8 and who, by reason of that 
disability, needs special education and related services is regarded as 
a child with a disability under Part B of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1401(3)); 1412(a)(3))



Sec. 300.112  Individualized education programs (IEP).

    The State must ensure that an IEP, or an IFSP that meets the 
requirements of section 636(d) of the Act, is developed, reviewed, and 
revised for each child with a disability in accordance with Sec. Sec. 
300.320 through 300.324, except as provided in Sec. 300.300(b)(3)(ii).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(4))



Sec. 300.113  Routine checking of hearing aids and external components
of surgically implanted medical devices.

    (a) Hearing aids. Each public agency must ensure that hearing aids 
worn in school by children with hearing impairments, including deafness, 
are functioning properly.
    (b) External components of surgically implanted medical devices. (1) 
Subject to paragraph (b)(2) of this section, each public agency must 
ensure that the external components of surgically implanted medical 
devices are functioning properly.
    (2) For a child with a surgically implanted medical device who is 
receiving special education and related services under this part, a 
public agency is not responsible for the post-surgical maintenance, 
programming, or replacement of the medical device that has been 
surgically implanted (or of an external component of the surgically 
implanted medical device).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1401(1), 1401(26)(B))

                   Least Restrictive Environment (LRE)



Sec. 300.114  LRE requirements.

    (a) General. (1) Except as provided in Sec. 300.324(d)(2) 
(regarding children with disabilities in adult prisons), the State must 
have in effect policies and procedures to ensure that public agencies in 
the State meet the LRE requirements of this section and Sec. Sec. 
300.115 through 300.120.
    (2) Each public agency must ensure that--
    (i) To the maximum extent appropriate, children with disabilities, 
including children in public or private institutions or other care 
facilities, are educated with children who are nondisabled; and
    (ii) Special classes, separate schooling, or other removal of 
children with disabilities from the regular educational environment 
occurs only if the nature or severity of the disability is such that 
education in regular classes with the use of supplementary aids and 
services cannot be achieved satisfactorily.
    (b) Additional requirement--State funding mechanism--(1) General. 
(i) A State funding mechanism must not result in placements that violate 
the requirements of paragraph (a) of this section; and
    (ii) A State must not use a funding mechanism by which the State 
distributes funds on the basis of the type of setting in which a child 
is served that will result in the failure to provide a child with a 
disability FAPE according to the unique needs of the child, as described 
in the child's IEP.
    (2) Assurance. If the State does not have policies and procedures to 
ensure

[[Page 28]]

compliance with paragraph (b)(1) of this section, the State must provide 
the Secretary an assurance that the State will revise the funding 
mechanism as soon as feasible to ensure that the mechanism does not 
result in placements that violate that paragraph.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5))



Sec. 300.115  Continuum of alternative placements.

    (a) Each public agency must ensure that a continuum of alternative 
placements is available to meet the needs of children with disabilities 
for special education and related services.
    (b) The continuum required in paragraph (a) of this section must--
    (1) Include the alternative placements listed in the definition of 
special education under Sec. 300.38 (instruction in regular classes, 
special classes, special schools, home instruction, and instruction in 
hospitals and institutions); and
    (2) Make provision for supplementary services (such as resource room 
or itinerant instruction) to be provided in conjunction with regular 
class placement.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5))



Sec. 300.116  Placements.

    In determining the educational placement of a child with a 
disability, including a preschool child with a disability, each public 
agency must ensure that--
    (a) The placement decision--
    (1) Is made by a group of persons, including the parents, and other 
persons knowledgeable about the child, the meaning of the evaluation 
data, and the placement options; and
    (2) Is made in conformity with the LRE provisions of this subpart, 
including Sec. Sec. 300.114 through 300.118;
    (b) The child's placement--
    (1) Is determined at least annually;
    (2) Is based on the child's IEP; and
    (3) Is as close as possible to the child's home;
    (c) Unless the IEP of a child with a disability requires some other 
arrangement, the child is educated in the school that he or she would 
attend if nondisabled;
    (d) In selecting the LRE, consideration is given to any potential 
harmful effect on the child or on the quality of services that he or she 
needs; and
    (e) A child with a disability is not removed from education in age-
appropriate regular classrooms solely because of needed modifications in 
the general education curriculum.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5))



Sec. 300.117  Nonacademic settings.

    In providing or arranging for the provision of nonacademic and 
extracurricular services and activities, including meals, recess 
periods, and the services and activities set forth in Sec. 300.107, 
each public agency must ensure that each child with a disability 
participates with nondisabled children in the extracurricular services 
and activities to the maximum extent appropriate to the needs of that 
child. The public agency must ensure that each child with a disability 
has the supplementary aids and services determined by the child's IEP 
Team to be appropriate and necessary for the child to participate in 
nonacademic settings.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5))



Sec. 300.118  Children in public or private institutions.

    Except as provided in Sec. 300.149(d) (regarding agency 
responsibility for general supervision of some individuals in adult 
prisons), an SEA must ensure that Sec. 300.114 is effectively 
implemented, including, if necessary, making arrangements with public 
and private institutions (such as a memorandum of agreement or special 
implementation procedures).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]

[[Page 29]]



Sec. 300.119  Technical assistance and training activities.

    Each SEA must carry out activities to ensure that teachers and 
administrators in all public agencies--
    (a) Are fully informed about their responsibilities for implementing 
Sec. 300.114; and
    (b) Are provided with technical assistance and training necessary to 
assist them in this effort.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5))



Sec. 300.120  Monitoring activities.

    (a) The SEA must carry out activities to ensure that Sec. 300.114 
is implemented by each public agency.
    (b) If there is evidence that a public agency makes placements that 
are inconsistent with Sec. 300.114, the SEA must--
    (1) Review the public agency's justification for its actions; and
    (2) Assist in planning and implementing any necessary corrective 
action.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(5))

                   Additional Eligibility Requirements



Sec. 300.121  Procedural safeguards.

    (a) General. The State must have procedural safeguards in effect to 
ensure that each public agency in the State meets the requirements of 
Sec. Sec. 300.500 through 300.536.
    (b) Procedural safeguards identified. Children with disabilities and 
their parents must be afforded the procedural safeguards identified in 
paragraph (a) of this section.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(6)(A))



Sec. 300.122  Evaluation.

    Children with disabilities must be evaluated in accordance with 
Sec. Sec. 300.300 through 300.311 of subpart D of this part.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(7))



Sec. 300.123  Confidentiality of personally identifiable information.

    The State must have policies and procedures in effect to ensure that 
public agencies in the State comply with Sec. Sec. 300.610 through 
300.626 related to protecting the confidentiality of any personally 
identifiable information collected, used, or maintained under Part B of 
the Act.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.124  Transition of children from the Part C program to 
preschool programs.

    The State must have in effect policies and procedures to ensure 
that--
    (a) Children participating in early intervention programs assisted 
under Part C of the Act, and who will participate in preschool programs 
assisted under Part B of the Act, experience a smooth and effective 
transition to those preschool programs in a manner consistent with 
section 637(a)(9) of the Act;
    (b) By the third birthday of a child described in paragraph (a) of 
this section, an IEP or, if consistent with Sec. 300.323(b) and section 
636(d) of the Act, an IFSP, has been developed and is being implemented 
for the child consistent with Sec. 300.101(b); and
    (c) Each affected LEA will participate in transition planning 
conferences arranged by the designated lead agency under section 
635(a)(10) of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(9))



Sec. Sec. 300.125-300.128  [Reserved]

                       Children in Private Schools



Sec. 300.129  State responsibility regarding children in private 
schools.

    The State must have in effect policies and procedures that ensure 
that LEAs, and, if applicable, the SEA, meet

[[Page 30]]

the private school requirements in Sec. Sec. 300.130 through 300.148.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10))

 Children With Disabilities Enrolled by Their Parents in Private 
 Schools



Sec. 300.130  Definition of parentally-placed private school 
children with disabilities.

    Parentally-placed private school children with disabilities means 
children with disabilities enrolled by their parents in private, 
including religious, schools or facilities that meet the definition of 
elementary school in Sec. 300.13 or secondary school in Sec. 300.36, 
other than children with disabilities covered under Sec. Sec. 300.145 
through 300.147.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.131  Child find for parentally-placed private school 
children with disabilities.

    (a) General. Each LEA must locate, identify, and evaluate all 
children with disabilities who are enrolled by their parents in private, 
including religious, elementary schools and secondary schools located in 
the school district served by the LEA, in accordance with paragraphs (b) 
through (e) of this section, and Sec. Sec. 300.111 and 300.201.
    (b) Child find design. The child find process must be designed to 
ensure--
    (1) The equitable participation of parentally-placed private school 
children; and
    (2) An accurate count of those children.
    (c) Activities. In carrying out the requirements of this section, 
the LEA, or, if applicable, the SEA, must undertake activities similar 
to the activities undertaken for the agency's public school children.
    (d) Cost. The cost of carrying out the child find requirements in 
this section, including individual evaluations, may not be considered in 
determining if an LEA has met its obligation under Sec. 300.133.
    (e) Completion period. The child find process must be completed in a 
time period comparable to that for students attending public schools in 
the LEA consistent with Sec. 300.301.
    (f) Out-of-State children. Each LEA in which private, including 
religious, elementary schools and secondary schools are located must, in 
carrying out the child find requirements in this section, include 
parentally-placed private school children who reside in a State other 
than the State in which the private schools that they attend are 
located.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A)(ii))



Sec. 300.132  Provision of services for parentally-placed private 
school children with disabilities--basic requirement.

    (a) General. To the extent consistent with the number and location 
of children with disabilities who are enrolled by their parents in 
private, including religious, elementary schools and secondary schools 
located in the school district served by the LEA, provision is made for 
the participation of those children in the program assisted or carried 
out under Part B of the Act by providing them with special education and 
related services, including direct services determined in accordance 
with Sec. 300.137, unless the Secretary has arranged for services to 
those children under the by-pass provisions in Sec. Sec. 300.190 
through 300.198.
    (b) Services plan for parentally-placed private school children with 
disabilities. In accordance with paragraph (a) of this section and 
Sec. Sec. 300.137 through 300.139, a services plan must be developed 
and implemented for each private school child with a disability who has 
been designated by the LEA in which the private school is located to 
receive special education and related services under this part.
    (c) Record keeping. Each LEA must maintain in its records, and 
provide to the SEA, the following information related to parentally-
placed private school children covered under Sec. Sec. 300.130 through 
300.144:
    (1) The number of children evaluated;
    (2) The number of children determined to be children with 
disabilities; and

[[Page 31]]

    (3) The number of children served.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0600)

(Authority: 20 U.S.C. 1412(a)(10)(A)(i))



Sec. 300.133  Expenditures.

    (a) Formula. To meet the requirement of Sec. 300.132(a), each LEA 
must spend the following on providing special education and related 
services (including direct services) to parentally-placed private school 
children with disabilities:
    (1) For children aged 3 through 21, an amount that is the same 
proportion of the LEA's total subgrant under section 611(f) of the Act 
as the number of private school children with disabilities aged 3 
through 21 who are enrolled by their parents in private, including 
religious, elementary schools and secondary schools located in the 
school district served by the LEA, is to the total number of children 
with disabilities in its jurisdiction aged 3 through 21.
    (2)(i) For children aged three through five, an amount that is the 
same proportion of the LEA's total subgrant under section 619(g) of the 
Act as the number of parentally-placed private school children with 
disabilities aged three through five who are enrolled by their parents 
in a private, including religious, elementary school located in the 
school district served by the LEA, is to the total number of children 
with disabilities in its jurisdiction aged three through five.
    (ii) As described in paragraph (a)(2)(i) of this section, children 
aged three through five are considered to be parentally-placed private 
school children with disabilities enrolled by their parents in private, 
including religious, elementary schools, if they are enrolled in a 
private school that meets the definition of elementary school in Sec. 
300.13.
    (3) If an LEA has not expended for equitable services all of the 
funds described in paragraphs (a)(1) and (a)(2) of this section by the 
end of the fiscal year for which Congress appropriated the funds, the 
LEA must obligate the remaining funds for special education and related 
services (including direct services) to parentally-placed private school 
children with disabilities during a carry-over period of one additional 
year.
    (b) Calculating proportionate amount. In calculating the 
proportionate amount of Federal funds to be provided for parentally-
placed private school children with disabilities, the LEA, after timely 
and meaningful consultation with representatives of private schools 
under Sec. 300.134, must conduct a thorough and complete child find 
process to determine the number of parentally-placed children with 
disabilities attending private schools located in the LEA. (See appendix 
B for an example of how proportionate share is calculated).
    (c) Annual count of the number of parentally-placed private school 
children with disabilities. (1) Each LEA must--
    (i) After timely and meaningful consultation with representatives of 
parentally-placed private school children with disabilities (consistent 
with Sec. 300.134), determine the number of parentally-placed private 
school children with disabilities attending private schools located in 
the LEA; and
    (ii) Ensure that the count is conducted on any date between October 
1 and December 1, inclusive, of each year.
    (2) The count must be used to determine the amount that the LEA must 
spend on providing special education and related services to parentally-
placed private school children with disabilities in the next subsequent 
fiscal year.
    (d) Supplement, not supplant. State and local funds may supplement 
and in no case supplant the proportionate amount of Federal funds 
required to be expended for parentally-placed private school children 
with disabilities under this part.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.134  Consultation.

    To ensure timely and meaningful consultation, an LEA, or, if 
appropriate, an SEA, must consult with private school representatives 
and representatives of parents of parentally-

[[Page 32]]

placed private school children with disabilities during the design and 
development of special education and related services for the children 
regarding the following:
    (a) Child find. The child find process, including--
    (1) How parentally-placed private school children suspected of 
having a disability can participate equitably; and
    (2) How parents, teachers, and private school officials will be 
informed of the process.
    (b) Proportionate share of funds. The determination of the 
proportionate share of Federal funds available to serve parentally-
placed private school children with disabilities under Sec. 300.133(b), 
including the determination of how the proportionate share of those 
funds was calculated.
    (c) Consultation process. The consultation process among the LEA, 
private school officials, and representatives of parents of parentally-
placed private school children with disabilities, including how the 
process will operate throughout the school year to ensure that 
parentally-placed children with disabilities identified through the 
child find process can meaningfully participate in special education and 
related services.
    (d) Provision of special education and related services. How, where, 
and by whom special education and related services will be provided for 
parentally-placed private school children with disabilities, including a 
discussion of--
    (1) The types of services, including direct services and alternate 
service delivery mechanisms; and
    (2) How special education and related services will be apportioned 
if funds are insufficient to serve all parentally-placed private school 
children; and
    (3) How and when those decisions will be made;
    (e) Written explanation by LEA regarding services. How, if the LEA 
disagrees with the views of the private school officials on the 
provision of services or the types of services (whether provided 
directly or through a contract), the LEA will provide to the private 
school officials a written explanation of the reasons why the LEA chose 
not to provide services directly or through a contract.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0600)

(Authority: 20 U.S.C. 1412(a)(10)(A)(iii))



Sec. 300.135  Written affirmation.

    (a) When timely and meaningful consultation, as required by Sec. 
300.134, has occurred, the LEA must obtain a written affirmation signed 
by the representatives of participating private schools.
    (b) If the representatives do not provide the affirmation within a 
reasonable period of time, the LEA must forward the documentation of the 
consultation process to the SEA.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0600)

(Authority: 20 U.S.C. 1412(a)(10)(A)(iv))



Sec. 300.136  Compliance.

    (a) General. A private school official has the right to submit a 
complaint to the SEA that the LEA--
    (1) Did not engage in consultation that was meaningful and timely; 
or
    (2) Did not give due consideration to the views of the private 
school official.
    (b) Procedure. (1) If the private school official wishes to submit a 
complaint, the official must provide to the SEA the basis of the 
noncompliance by the LEA with the applicable private school provisions 
in this part; and
    (2) The LEA must forward the appropriate documentation to the SEA.
    (3)(i) If the private school official is dissatisfied with the 
decision of the SEA, the official may submit a complaint to the 
Secretary by providing the information on noncompliance described in 
paragraph (b)(1) of this section; and
    (ii) The SEA must forward the appropriate documentation to the 
Secretary.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0600)

(Authority: 20 U.S.C. 1412(a)(10)(A)(v))

[[Page 33]]



Sec. 300.137  Equitable services determined.

    (a) No individual right to special education and related services. 
No parentally-placed private school child with a disability has an 
individual right to receive some or all of the special education and 
related services that the child would receive if enrolled in a public 
school.
    (b) Decisions. (1) Decisions about the services that will be 
provided to parentally-placed private school children with disabilities 
under Sec. Sec. 300.130 through 300.144 must be made in accordance with 
paragraph (c) of this section and Sec. 300.134(d).
    (2) The LEA must make the final decisions with respect to the 
services to be provided to eligible parentally-placed private school 
children with disabilities.
    (c) Services plan for each child served under Sec. Sec. 300.130 
through 300.144. If a child with a disability is enrolled in a religious 
or other private school by the child's parents and will receive special 
education or related services from an LEA, the LEA must--
    (1) Initiate and conduct meetings to develop, review, and revise a 
services plan for the child, in accordance with Sec. 300.138(b); and
    (2) Ensure that a representative of the religious or other private 
school attends each meeting. If the representative cannot attend, the 
LEA shall use other methods to ensure participation by the religious or 
other private school, including individual or conference telephone 
calls.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]



Sec. 300.138  Equitable services provided.

    (a) General. (1) The services provided to parentally-placed private 
school children with disabilities must be provided by personnel meeting 
the same standards as personnel providing services in the public 
schools, except that private elementary school and secondary school 
teachers who are providing equitable services to parentally-placed 
private school children with disabilities do not have to meet the highly 
qualified special education teacher requirements of Sec. 300.18.
    (2) Parentally-placed private school children with disabilities may 
receive a different amount of services than children with disabilities 
in public schools.
    (b) Services provided in accordance with a services plan. (1) Each 
parentally-placed private school child with a disability who has been 
designated to receive services under Sec. 300.132 must have a services 
plan that describes the specific special education and related services 
that the LEA will provide to the child in light of the services that the 
LEA has determined, through the process described in Sec. Sec. 300.134 
and 300.137, it will make available to parentally-placed private school 
children with disabilities.
    (2) The services plan must, to the extent appropriate--
    (i) Meet the requirements of Sec. 300.320, or for a child ages 
three through five, meet the requirements of Sec. 300.323(b) with 
respect to the services provided; and
    (ii) Be developed, reviewed, and revised consistent with Sec. Sec. 
300.321 through 300.324.
    (c) Provision of equitable services. (1) The provision of services 
pursuant to this section and Sec. Sec. 300.139 through 300.143 must be 
provided:
    (i) By employees of a public agency; or
    (ii) Through contract by the public agency with an individual, 
association, agency, organization, or other entity.
    (2) Special education and related services provided to parentally-
placed private school children with disabilities, including materials 
and equipment, must be secular, neutral, and nonideological.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A)(vi))



Sec. 300.139  Location of services and transportation.

    (a) Services on private school premises. Services to parentally-
placed private school children with disabilities may be provided on the 
premises of private, including religious, schools, to the extent 
consistent with law.

[[Page 34]]

    (b) Transportation--(1) General. (i) If necessary for the child to 
benefit from or participate in the services provided under this part, a 
parentally-placed private school child with a disability must be 
provided transportation--
    (A) From the child's school or the child's home to a site other than 
the private school; and
    (B) From the service site to the private school, or to the child's 
home, depending on the timing of the services.
    (ii) LEAs are not required to provide transportation from the 
child's home to the private school.
    (2) Cost of transportation. The cost of the transportation described 
in paragraph (b)(1)(i) of this section may be included in calculating 
whether the LEA has met the requirement of Sec. 300.133.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.140  Due process complaints and State complaints.

    (a) Due process not applicable, except for child find. (1) Except as 
provided in paragraph (b) of this section, the procedures in Sec. Sec. 
300.504 through 300.519 do not apply to complaints that an LEA has 
failed to meet the requirements of Sec. Sec. 300.132 through 300.139, 
including the provision of services indicated on the child's services 
plan.
    (b) Child find complaints--to be filed with the LEA in which the 
private school is located. (1) The procedures in Sec. Sec. 300.504 
through 300.519 apply to complaints that an LEA has failed to meet the 
child find requirements in Sec. 300.131, including the requirements in 
Sec. Sec. 300.300 through 300.311.
    (2) Any due process complaint regarding the child find requirements 
(as described in paragraph (b)(1) of this section) must be filed with 
the LEA in which the private school is located and a copy must be 
forwarded to the SEA.
    (c) State complaints. (1) Any complaint that an SEA or LEA has 
failed to meet the requirements in Sec. Sec. 300.132 through 300.135 
and 300.137 through 300.144 must be filed in accordance with the 
procedures described in Sec. Sec. 300.151 through 300.153.
    (2) A complaint filed by a private school official under Sec. 
300.136(a) must be filed with the SEA in accordance with the procedures 
in Sec. 300.136(b).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.141  Requirement that funds not benefit a private school.

    (a) An LEA may not use funds provided under section 611 or 619 of 
the Act to finance the existing level of instruction in a private school 
or to otherwise benefit the private school.
    (b) The LEA must use funds provided under Part B of the Act to meet 
the special education and related services needs of parentally-placed 
private school children with disabilities, but not for meeting--
    (1) The needs of a private school; or
    (2) The general needs of the students enrolled in the private 
school.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.142  Use of personnel.

    (a) Use of public school personnel. An LEA may use funds available 
under sections 611 and 619 of the Act to make public school personnel 
available in other than public facilities--
    (1) To the extent necessary to provide services under Sec. Sec. 
300.130 through 300.144 for parentally-placed private school children 
with disabilities; and
    (2) If those services are not normally provided by the private 
school.
    (b) Use of private school personnel. An LEA may use funds available 
under sections 611 and 619 of the Act to pay for the services of an 
employee of a private school to provide services under Sec. Sec. 
300.130 through 300.144 if--
    (1) The employee performs the services outside of his or her regular 
hours of duty; and
    (2) The employee performs the services under public supervision and 
control.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.143  Separate classes prohibited.

    An LEA may not use funds available under section 611 or 619 of the 
Act for

[[Page 35]]

classes that are organized separately on the basis of school enrollment 
or religion of the children if--'
    (a) The classes are at the same site; and
    (b) The classes include children enrolled in public schools and 
children enrolled in private schools.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A))



Sec. 300.144  Property, equipment, and supplies.

    (a) A public agency must control and administer the funds used to 
provide special education and related services under Sec. Sec. 300.137 
through 300.139, and hold title to and administer materials, equipment, 
and property purchased with those funds for the uses and purposes 
provided in the Act.
    (b) The public agency may place equipment and supplies in a private 
school for the period of time needed for the Part B program.
    (c) The public agency must ensure that the equipment and supplies 
placed in a private school--
    (1) Are used only for Part B purposes; and
    (2) Can be removed from the private school without remodeling the 
private school facility.
    (d) The public agency must remove equipment and supplies from a 
private school if--
    (1) The equipment and supplies are no longer needed for Part B 
purposes; or
    (2) Removal is necessary to avoid unauthorized use of the equipment 
and supplies for other than Part B purposes.
    (e) No funds under Part B of the Act may be used for repairs, minor 
remodeling, or construction of private school facilities.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(A)(vii))

  Children With Disabilities in Private Schools Placed or Referred by 
                             Public Agencies



Sec. 300.145  Applicability of Sec. Sec. 300.146 through 300.147.

    Sections 300.146 through 300.147 apply only to children with 
disabilities who are or have been placed in or referred to a private 
school or facility by a public agency as a means of providing special 
education and related services.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(B))



Sec. 300.146  Responsibility of SEA.

    Each SEA must ensure that a child with a disability who is placed in 
or referred to a private school or facility by a public agency--
    (a) Is provided special education and related services--
    (1) In conformance with an IEP that meets the requirements of 
Sec. Sec. 300.320 through 300.325; and
    (2) At no cost to the parents;
    (b) Is provided an education that meets the standards that apply to 
education provided by the SEA and LEAs including the requirements of 
this part, except for Sec. 300.18 and Sec. 300.156(c); and
    (c) Has all of the rights of a child with a disability who is served 
by a public agency.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(B))



Sec. 300.147  Implementation by SEA.

    In implementing Sec. 300.146, the SEA must--
    (a) Monitor compliance through procedures such as written reports, 
on-site visits, and parent questionnaires;
    (b) Disseminate copies of applicable standards to each private 
school and facility to which a public agency has referred or placed a 
child with a disability; and

[[Page 36]]

    (c) Provide an opportunity for those private schools and facilities 
to participate in the development and revision of State standards that 
apply to them.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(B))

Children With Disabilities Enrolled by Their Parents in Private Schools 
                          When FAPE Is at Issue



Sec. 300.148  Placement of children by parents when FAPE is at issue.

    (a) General. This part does not require an LEA to pay for the cost 
of education, including special education and related services, of a 
child with a disability at a private school or facility if that agency 
made FAPE available to the child and the parents elected to place the 
child in a private school or facility. However, the public agency must 
include that child in the population whose needs are addressed 
consistent with Sec. Sec. 300.131 through 300.144.
    (b) Disagreements about FAPE. Disagreements between the parents and 
a public agency regarding the availability of a program appropriate for 
the child, and the question of financial reimbursement, are subject to 
the due process procedures in Sec. Sec. 300.504 through 300.520.
    (c) Reimbursement for private school placement. If the parents of a 
child with a disability, who previously received special education and 
related services under the authority of a public agency, enroll the 
child in a private preschool, elementary school, or secondary school 
without the consent of or referral by the public agency, a court or a 
hearing officer may require the agency to reimburse the parents for the 
cost of that enrollment if the court or hearing officer finds that the 
agency had not made FAPE available to the child in a timely manner prior 
to that enrollment and that the private placement is appropriate. A 
parental placement may be found to be appropriate by a hearing officer 
or a court even if it does not meet the State standards that apply to 
education provided by the SEA and LEAs.
    (d) Limitation on reimbursement. The cost of reimbursement described 
in paragraph (c) of this section may be reduced or denied--
    (1) If--
    (i) At the most recent IEP Team meeting that the parents attended 
prior to removal of the child from the public school, the parents did 
not inform the IEP Team that they were rejecting the placement proposed 
by the public agency to provide FAPE to their child, including stating 
their concerns and their intent to enroll their child in a private 
school at public expense; or
    (ii) At least ten (10) business days (including any holidays that 
occur on a business day) prior to the removal of the child from the 
public school, the parents did not give written notice to the public 
agency of the information described in paragraph (d)(1)(i) of this 
section;
    (2) If, prior to the parents' removal of the child from the public 
school, the public agency informed the parents, through the notice 
requirements described in Sec. 300.503(a)(1), of its intent to evaluate 
the child (including a statement of the purpose of the evaluation that 
was appropriate and reasonable), but the parents did not make the child 
available for the evaluation; or
    (3) Upon a judicial finding of unreasonableness with respect to 
actions taken by the parents.
    (e) Exception. Notwithstanding the notice requirement in paragraph 
(d)(1) of this section, the cost of reimbursement--
    (1) Must not be reduced or denied for failure to provide the notice 
if--
    (i) The school prevented the parents from providing the notice;
    (ii) The parents had not received notice, pursuant to Sec. 300.504, 
of the notice requirement in paragraph (d)(1) of this section; or
    (iii) Compliance with paragraph (d)(1) of this section would likely 
result in physical harm to the child; and
    (2) May, in the discretion of the court or a hearing officer, not be 
reduced or denied for failure to provide this notice if--
    (i) The parents are not literate or cannot write in English; or

[[Page 37]]

    (ii) Compliance with paragraph (d)(1) of this section would likely 
result in serious emotional harm to the child.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(10)(C))

    SEA Responsibility for General Supervision and Implementation of 
                          Procedural Safeguards



Sec. 300.149  SEA responsibility for general supervision.

    (a) The SEA is responsible for ensuring--
    (1) That the requirements of this part are carried out; and
    (2) That each educational program for children with disabilities 
administered within the State, including each program administered by 
any other State or local agency (but not including elementary schools 
and secondary schools for Indian children operated or funded by the 
Secretary of the Interior)--
    (i) Is under the general supervision of the persons responsible for 
educational programs for children with disabilities in the SEA; and
    (ii) Meets the educational standards of the SEA (including the 
requirements of this part).
    (3) In carrying out this part with respect to homeless children, the 
requirements of subtitle B of title VII of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11431 et seq.) are met.
    (b) The State must have in effect policies and procedures to ensure 
that it complies with the monitoring and enforcement requirements in 
Sec. Sec. 300.600 through 300.602 and Sec. Sec. 300.606 through 
300.608.
    (c) Part B of the Act does not limit the responsibility of agencies 
other than educational agencies for providing or paying some or all of 
the costs of FAPE to children with disabilities in the State.
    (d) Notwithstanding paragraph (a) of this section, the Governor (or 
another individual pursuant to State law) may assign to any public 
agency in the State the responsibility of ensuring that the requirements 
of Part B of the Act are met with respect to students with disabilities 
who are convicted as adults under State law and incarcerated in adult 
prisons.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(11); 1416)



Sec. 300.150  SEA implementation of procedural safeguards.

    The SEA (and any agency assigned responsibility pursuant to Sec. 
300.149(d)) must have in effect procedures to inform each public agency 
of its responsibility for ensuring effective implementation of 
procedural safeguards for the children with disabilities served by that 
public agency.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(11); 1415(a))

                       State Complaint Procedures



Sec. 300.151  Adoption of State complaint procedures.

    (a) General. Each SEA must adopt written procedures for--
    (1) Resolving any complaint, including a complaint filed by an 
organization or individual from another State, that meets the 
requirements of Sec. 300.153 by--
    (i) Providing for the filing of a complaint with the SEA; and
    (ii) At the SEA's discretion, providing for the filing of a 
complaint with a public agency and the right to have the SEA review the 
public agency's decision on the complaint; and
    (2) Widely disseminating to parents and other interested 
individuals, including parent training and information centers, 
protection and advocacy agencies, independent living centers, and other 
appropriate entities, the State procedures under Sec. Sec. 300.151 
through 300.153.
    (b) Remedies for denial of appropriate services. In resolving a 
complaint in which the SEA has found a failure to provide appropriate 
services, an SEA, pursuant to its general supervisory authority under 
Part B of the Act, must address--
    (1) The failure to provide appropriate services, including 
corrective action appropriate to address the needs of the child (such as 
compensatory services or monetary reimbursement); and

[[Page 38]]

    (2) Appropriate future provision of services for all children with 
disabilities.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0600)

(Authority: 20 U.S.C. 1221e-3)



Sec. 300.152  Minimum State complaint procedures.

    (a) Time limit; minimum procedures. Each SEA must include in its 
complaint procedures a time limit of 60 days after a complaint is filed 
under Sec. 300.153 to--
    (1) Carry out an independent on-site investigation, if the SEA 
determines that an investigation is necessary;
    (2) Give the complainant the opportunity to submit additional 
information, either orally or in writing, about the allegations in the 
complaint;
    (3) Provide the public agency with the opportunity to respond to the 
complaint, including, at a minimum--
    (i) At the discretion of the public agency, a proposal to resolve 
the complaint; and
    (ii) An opportunity for a parent who has filed a complaint and the 
public agency to voluntarily engage in mediation consistent with Sec. 
300.506;
    (4) Review all relevant information and make an independent 
determination as to whether the public agency is violating a requirement 
of Part B of the Act or of this part; and
    (5) Issue a written decision to the complainant that addresses each 
allegation in the complaint and contains--
    (i) Findings of fact and conclusions; and
    (ii) The reasons for the SEA's final decision.
    (b) Time extension; final decision; implementation. The SEA's 
procedures described in paragraph (a) of this section also must--
    (1) Permit an extension of the time limit under paragraph (a) of 
this section only if--
    (i) Exceptional circumstances exist with respect to a particular 
complaint; or
    (ii) The parent (or individual or organization, if mediation or 
other alternative means of dispute resolution is available to the 
individual or organization under State procedures) and the public agency 
involved agree to extend the time to engage in mediation pursuant to 
paragraph (a)(3)(ii) of this section, or to engage in other alternative 
means of dispute resolution, if available in the State; and
    (2) Include procedures for effective implementation of the SEA's 
final decision, if needed, including--
    (i) Technical assistance activities;
    (ii) Negotiations; and
    (iii) Corrective actions to achieve compliance.
    (c) Complaints filed under this section and due process hearings 
under Sec. 300.507 and Sec. Sec. 300.530 through 300.532. (1) If a 
written complaint is received that is also the subject of a due process 
hearing under Sec. 300.507 or Sec. Sec. 300.530 through 300.532, or 
contains multiple issues of which one or more are part of that hearing, 
the State must set aside any part of the complaint that is being 
addressed in the due process hearing until the conclusion of the 
hearing. However, any issue in the complaint that is not a part of the 
due process action must be resolved using the time limit and procedures 
described in paragraphs (a) and (b) of this section.
    (2) If an issue raised in a complaint filed under this section has 
previously been decided in a due process hearing involving the same 
parties--
    (i) The due process hearing decision is binding on that issue; and
    (ii) The SEA must inform the complainant to that effect.
    (3) A complaint alleging a public agency's failure to implement a 
due process hearing decision must be resolved by the SEA.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0600)

(Authority: 20 U.S.C. 1221e-3)



Sec. 300.153  Filing a complaint.

    (a) An organization or individual may file a signed written 
complaint under the procedures described in Sec. Sec. 300.151 through 
300.152.
    (b) The complaint must include--
    (1) A statement that a public agency has violated a requirement of 
Part B of the Act or of this part;
    (2) The facts on which the statement is based;

[[Page 39]]

    (3) The signature and contact information for the complainant; and
    (4) If alleging violations with respect to a specific child--
    (i) The name and address of the residence of the child;
    (ii) The name of the school the child is attending;
    (iii) In the case of a homeless child or youth (within the meaning 
of section 725(2) of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11434a(2)), available contact information for the child, and the 
name of the school the child is attending;
    (iv) A description of the nature of the problem of the child, 
including facts relating to the problem; and
    (v) A proposed resolution of the problem to the extent known and 
available to the party at the time the complaint is filed.
    (c) The complaint must allege a violation that occurred not more 
than one year prior to the date that the complaint is received in 
accordance with Sec. 300.151.
    (d) The party filing the complaint must forward a copy of the 
complaint to the LEA or public agency serving the child at the same time 
the party files the complaint with the SEA.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0600)

(Authority: 20 U.S.C. 1221e-3)

                      Methods of Ensuring Services



Sec. 300.154  Methods of ensuring services.

    (a) Establishing responsibility for services. The Chief Executive 
Officer of a State or designee of that officer must ensure that an 
interagency agreement or other mechanism for interagency coordination is 
in effect between each noneducational public agency described in 
paragraph (b) of this section and the SEA, in order to ensure that all 
services described in paragraph (b)(1) of this section that are needed 
to ensure FAPE are provided, including the provision of these services 
during the pendency of any dispute under paragraph (a)(3) of this 
section. The agreement or mechanism must include the following:
    (1) An identification of, or a method for defining, the financial 
responsibility of each agency for providing services described in 
paragraph (b)(1) of this section to ensure FAPE to children with 
disabilities. The financial responsibility of each noneducational public 
agency described in paragraph (b) of this section, including the State 
Medicaid agency and other public insurers of children with disabilities, 
must precede the financial responsibility of the LEA (or the State 
agency responsible for developing the child's IEP).
    (2) The conditions, terms, and procedures under which an LEA must be 
reimbursed by other agencies.
    (3) Procedures for resolving interagency disputes (including 
procedures under which LEAs may initiate proceedings) under the 
agreement or other mechanism to secure reimbursement from other agencies 
or otherwise implement the provisions of the agreement or mechanism.
    (4) Policies and procedures for agencies to determine and identify 
the interagency coordination responsibilities of each agency to promote 
the coordination and timely and appropriate delivery of services 
described in paragraph (b)(1) of this section.
    (b) Obligation of noneducational public agencies. (1)(i) If any 
public agency other than an educational agency is otherwise obligated 
under Federal or State law, or assigned responsibility under State 
policy or pursuant to paragraph (a) of this section, to provide or pay 
for any services that are also considered special education or related 
services (such as, but not limited to, services described in Sec. 300.5 
relating to assistive technology devices, Sec. 300.6 relating to 
assistive technology services, Sec. 300.34 relating to related 
services, Sec. 300.41 relating to supplementary aids and services, and 
Sec. 300.42 relating to transition services) that are necessary for 
ensuring FAPE to children with disabilities within the State, the public 
agency must fulfill that obligation or responsibility, either directly 
or through contract or other arrangement pursuant to paragraph (a) of 
this section or an agreement pursuant to paragraph (c) of this section.
    (ii) A noneducational public agency described in paragraph (b)(1)(i) 
of this section may not disqualify an eligible

[[Page 40]]

service for Medicaid reimbursement because that service is provided in a 
school context.
    (2) If a public agency other than an educational agency fails to 
provide or pay for the special education and related services described 
in paragraph (b)(1) of this section, the LEA (or State agency 
responsible for developing the child's IEP) must provide or pay for 
these services to the child in a timely manner. The LEA or State agency 
is authorized to claim reimbursement for the services from the 
noneducational public agency that failed to provide or pay for these 
services and that agency must reimburse the LEA or State agency in 
accordance with the terms of the interagency agreement or other 
mechanism described in paragraph (a) of this section.
    (c) Special rule. The requirements of paragraph (a) of this section 
may be met through--
    (1) State statute or regulation;
    (2) Signed agreements between respective agency officials that 
clearly identify the responsibilities of each agency relating to the 
provision of services; or
    (3) Other appropriate written methods as determined by the Chief 
Executive Officer of the State or designee of that officer and approved 
by the Secretary.
    (d) Children with disabilities who are covered by public benefits or 
insurance. (1) A public agency may use the Medicaid or other public 
benefits or insurance programs in which a child participates to provide 
or pay for services required under this part, as permitted under the 
public benefits or insurance program, except as provided in paragraph 
(d)(2) of this section.
    (2) With regard to services required to provide FAPE to an eligible 
child under this part, the public agency--
    (i) May not require parents to sign up for or enroll in public 
benefits or insurance programs in order for their child to receive FAPE 
under Part B of the Act;
    (ii) May not require parents to incur an out-of-pocket expense such 
as the payment of a deductible or co-pay amount incurred in filing a 
claim for services provided pursuant to this part, but pursuant to 
paragraph (g)(2) of this section, may pay the cost that the parents 
otherwise would be required to pay;
    (iii) May not use a child's benefits under a public benefits or 
insurance program if that use would--
    (A) Decrease available lifetime coverage or any other insured 
benefit;
    (B) Result in the family paying for services that would otherwise be 
covered by the public benefits or insurance program and that are 
required for the child outside of the time the child is in school;
    (C) Increase premiums or lead to the discontinuation of benefits or 
insurance; or
    (D) Risk loss of eligibility for home and community-based waivers, 
based on aggregate health-related expenditures; and
    (iv) Prior to accessing a child's or parent's public benefits or 
insurance for the first time, and after providing notification to the 
child's parents consistent with paragraph (d)(2)(v) of this section, 
must obtain written, parental consent that--
    (A) Meets the requirements of Sec. 99.30 of this title and Sec. 
300.622, which consent must specify the personally identifiable 
information that may be disclosed (e.g., records or information about 
the services that may be provided to a particular child), the purpose of 
the disclosure (e.g., billing for services under part 300), and the 
agency to which the disclosure may be made (e.g., the State's public 
benefits or insurance program (e.g., Medicaid)); and
    (B) Specifies that the parent understands and agrees that the public 
agency may access the parent's or child's public benefits or insurance 
to pay for services under part 300.
    (v) Prior to accessing a child's or parent's public benefits or 
insurance for the first time, and annually thereafter, must provide 
written notification, consistent with Sec. 300.503(c), to the child's 
parents, that includes--
    (A) A statement of the parental consent provisions in paragraphs 
(d)(2)(iv)(A) and (B) of this section;
    (B) A statement of the ``no cost'' provisions in paragraphs 
(d)(2)(i) through (iii) of this section;
    (C) A statement that the parents have the right under 34 CFR part 99 
and

[[Page 41]]

part 300 to withdraw their consent to disclosure of their child's 
personally identifiable information to the agency responsible for the 
administration of the State's public benefits or insurance program 
(e.g., Medicaid) at any time; and
    (D) A statement that the withdrawal of consent or refusal to provide 
consent under 34 CFR part 99 and part 300 to disclose personally 
identifiable information to the agency responsible for the 
administration of the State's public benefits or insurance program 
(e.g., Medicaid) does not relieve the public agency of its 
responsibility to ensure that all required services are provided at no 
cost to the parents.
    (e) Children with disabilities who are covered by private insurance. 
(1) With regard to services required to provide FAPE to an eligible 
child under this part, a public agency may access the parents' private 
insurance proceeds only if the parents provide consent consistent with 
Sec. 300.9.
    (2) Each time the public agency proposes to access the parents' 
private insurance proceeds, the agency must--
    (i) Obtain parental consent in accordance with paragraph (e)(1) of 
this section; and
    (ii) Inform the parents that their refusal to permit the public 
agency to access their private insurance does not relieve the public 
agency of its responsibility to ensure that all required services are 
provided at no cost to the parents.
    (f) Use of Part B funds. (1) If a public agency is unable to obtain 
parental consent to use the parents' private insurance, or public 
benefits or insurance when the parents would incur a cost for a 
specified service required under this part, to ensure FAPE the public 
agency may use its Part B funds to pay for the service.
    (2) To avoid financial cost to parents who otherwise would consent 
to use private insurance, or public benefits or insurance if the parents 
would incur a cost, the public agency may use its Part B funds to pay 
the cost that the parents otherwise would have to pay to use the 
parents' benefits or insurance (e.g., the deductible or co-pay amounts).
    (g) Proceeds from public benefits or insurance or private insurance. 
(1) Proceeds from public benefits or insurance or private insurance will 
not be treated as program income for purposes of 34 CFR 80.25.
    (2) If a public agency spends reimbursements from Federal funds 
(e.g., Medicaid) for services under this part, those funds will not be 
considered ``State or local'' funds for purposes of the maintenance of 
effort provisions in Sec. Sec. 300.163 and 300.203.
    (h) Construction. Nothing in this part should be construed to alter 
the requirements imposed on a State Medicaid agency, or any other agency 
administering a public benefits or insurance program by Federal statute, 
regulations or policy under title XIX, or title XXI of the Social 
Security Act, 42 U.S.C. 1396 through 1396v and 42 U.S.C. 1397aa through 
1397jj, or any other public benefits or insurance program.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(12) and (e))

[71 FR 46753, Aug. 14, 2006, as amended at 78 FR 10537, Feb. 14, 2013]

                   Additional Eligibility Requirements



Sec. 300.155  Hearings relating to LEA eligibility.

    The SEA must not make any final determination that an LEA is not 
eligible for assistance under Part B of the Act without first giving the 
LEA reasonable notice and an opportunity for a hearing under 34 CFR 
76.401(d).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(13))



Sec. 300.156  Personnel qualifications.

    (a) General. The SEA must establish and maintain qualifications to 
ensure that personnel necessary to carry out the purposes of this part 
are appropriately and adequately prepared and trained, including that 
those personnel have the content knowledge and skills to serve children 
with disabilities.
    (b) Related services personnel and paraprofessionals. The 
qualifications under paragraph (a) of this section must include 
qualifications for related services personnel and paraprofessionals 
that--

[[Page 42]]

    (1) Are consistent with any State-approved or State-recognized 
certification, licensing, registration, or other comparable requirements 
that apply to the professional discipline in which those personnel are 
providing special education or related services; and
    (2) Ensure that related services personnel who deliver services in 
their discipline or profession--
    (i) Meet the requirements of paragraph (b)(1) of this section; and
    (ii) Have not had certification or licensure requirements waived on 
an emergency, temporary, or provisional basis; and
    (iii) Allow paraprofessionals and assistants who are appropriately 
trained and supervised, in accordance with State law, regulation, or 
written policy, in meeting the requirements of this part to be used to 
assist in the provision of special education and related services under 
this part to children with disabilities.
    (c) Qualifications for special education teachers. The 
qualifications described in paragraph (a) of this section must ensure 
that each person employed as a public school special education teacher 
in the State who teaches in an elementary school, middle school, or 
secondary school is highly qualified as a special education teacher by 
the deadline established in section 1119(a)(2) of the ESEA.
    (d) Policy. In implementing this section, a State must adopt a 
policy that includes a requirement that LEAs in the State take 
measurable steps to recruit, hire, train, and retain highly qualified 
personnel to provide special education and related services under this 
part to children with disabilities.
    (e) Rule of construction. Notwithstanding any other individual right 
of action that a parent or student may maintain under this part, nothing 
in this part shall be construed to create a right of action on behalf of 
an individual student or a class of students for the failure of a 
particular SEA or LEA employee to be highly qualified, or to prevent a 
parent from filing a complaint about staff qualifications with the SEA 
as provided for under this part.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(14))



Sec. 300.157  Performance goals and indicators.

    The State must--
    (a) Have in effect established goals for the performance of children 
with disabilities in the State that--
    (1) Promote the purposes of this part, as stated in Sec. 300.1;
    (2) Are the same as the State's objectives for progress by children 
in its definition of adequate yearly progress, including the State's 
objectives for progress by children with disabilities, under section 
1111(b)(2)(C) of the ESEA, 20 U.S.C. 6311;
    (3) Address graduation rates and dropout rates, as well as such 
other factors as the State may determine; and
    (4) Are consistent, to the extent appropriate, with any other goals 
and academic standards for children established by the State;
    (b) Have in effect established performance indicators the State will 
use to assess progress toward achieving the goals described in paragraph 
(a) of this section, including measurable annual objectives for progress 
by children with disabilities under section 1111(b)(2)(C)(v)(II)(cc) of 
the ESEA, 20 U.S.C. 6311; and
    (c) Annually report to the Secretary and the public on the progress 
of the State, and of children with disabilities in the State, toward 
meeting the goals established under paragraph (a) of this section, which 
may include elements of the reports required under section 1111(h) of 
the ESEA.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(15))



Sec. Sec. 300.158-300.159  [Reserved]



Sec. 300.160  Participation in assessments.

    (a) General. A State must ensure that all children with disabilities 
are included in all general State and district-wide assessment programs, 
including assessments described under section

[[Page 43]]

1111 of the ESEA, 20 U.S.C. 6311, with appropriate accommodations and 
alternate assessments, if necessary, as indicated in their respective 
IEPs.
    (b) Accommodation guidelines. (1) A State (or, in the case of a 
district-wide assessment, an LEA) must develop guidelines for the 
provision of appropriate accommodations.
    (2) The State's (or, in the case of a district-wide assessment, the 
LEA's) guidelines must--
    (i) Identify only those accommodations for each assessment that do 
not invalidate the score; and
    (ii) Instruct IEP Teams to select, for each assessment, only those 
accommodations that do not invalidate the score.
    (c) Alternate assessments. (1) A State (or, in the case of a 
district-wide assessment, an LEA) must develop and implement alternate 
assessments and guidelines for the participation of children with 
disabilities in alternate assessments for those children who cannot 
participate in regular assessments, even with accommodations, as 
indicated in their respective IEPs, as provided in paragraph (a) of this 
section.
    (2) For assessing the academic progress of students with 
disabilities under Title I of the ESEA, the alternate assessments and 
guidelines in paragraph (c)(1) of this section must provide for 
alternate assessments that--
    (i) Are aligned with the State's challenging academic content 
standards and challenging student academic achievement standards;
    (ii) If the State has adopted modified academic achievement 
standards permitted in 34 CFR 200.1(e), measure the achievement of 
children with disabilities meeting the State's criteria under Sec. 
200.1(e)(2) against those standards; and
    (iii) If the State has adopted alternate academic achievement 
standards permitted in 34 CFR 200.1(d), measure the achievement of 
children with the most significant cognitive disabilities against those 
standards.
    (d) Explanation to IEP Teams. A State (or in the case of a district-
wide assessment, an LEA) must provide IEP Teams with a clear explanation 
of the differences between assessments based on grade-level academic 
achievement standards and those based on modified or alternate academic 
achievement standards, including any effects of State or local policies 
on the student's education resulting from taking an alternate assessment 
based on alternate or modified academic achievement standards (such as 
whether only satisfactory performance on a regular assessment would 
qualify a student for a regular high school diploma).
    (e) Inform parents. A State (or in the case of a district-wide 
assessment, an LEA) must ensure that parents of students selected to be 
assessed based on alternate or modified academic achievement standards 
are informed that their child's achievement will be measured based on 
alternate or modified academic achievement standards.
    (f) Reports. An SEA (or, in the case of a district-wide assessment, 
an LEA) must make available to the public, and report to the public with 
the same frequency and in the same detail as it reports on the 
assessment of nondisabled children, the following:
    (1) The number of children with disabilities participating in 
regular assessments, and the number of those children who were provided 
accommodations (that did not result in an invalid score) in order to 
participate in those assessments.
    (2) The number of children with disabilities, if any, participating 
in alternate assessments based on grade-level academic achievement 
standards.
    (3) The number of children with disabilities, if any, participating 
in alternate assessments based on modified academic achievement 
standards.
    (4) The number of children with disabilities, if any, participating 
in alternate assessments based on alternate academic achievement 
standards.
    (5) Compared with the achievement of all children, including 
children with disabilities, the performance results of children with 
disabilities on regular assessments, alternate assessments based on 
grade-level academic achievement standards, alternate assessments based 
on modified academic achievement standards, and alternate assessments 
based on alternate academic achievement standards if--

[[Page 44]]

    (i) The number of children participating in those assessments is 
sufficient to yield statistically reliable information; and
    (ii) Reporting that information will not reveal personally 
identifiable information about an individual student on those 
assessments.
    (g) Universal design. An SEA (or, in the case of a district-wide 
assessment, an LEA) must, to the extent possible, use universal design 
principles in developing and administering any assessments under this 
section.

(Authority: 20 U.S.C. 1412(a)(16))

[72 FR 17781, Apr. 9, 2007]



Sec. 300.161  [Reserved]



Sec. 300.162  Supplementation of State, local, and other Federal funds.

    (a) Expenditures. Funds paid to a State under this part must be 
expended in accordance with all the provisions of this part.
    (b) Prohibition against commingling. (1) Funds paid to a State under 
this part must not be commingled with State funds.
    (2) The requirement in paragraph (b)(1) of this section is satisfied 
by the use of a separate accounting system that includes an audit trail 
of the expenditure of funds paid to a State under this part. Separate 
bank accounts are not required. (See 34 CFR 76.702 (Fiscal control and 
fund accounting procedures).)
    (c) State-level nonsupplanting. (1) Except as provided in Sec. 
300.203, funds paid to a State under Part B of the Act must be used to 
supplement the level of Federal, State, and local funds (including funds 
that are not under the direct control of the SEA or LEAs) expended for 
special education and related services provided to children with 
disabilities under Part B of the Act, and in no case to supplant those 
Federal, State, and local funds.
    (2) If the State provides clear and convincing evidence that all 
children with disabilities have available to them FAPE, the Secretary 
may waive, in whole or in part, the requirements of paragraph (c)(1) of 
this section if the Secretary concurs with the evidence provided by the 
State under Sec. 300.164.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(17))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]



Sec. 300.163  Maintenance of State financial support.

    (a) General. A State must not reduce the amount of State financial 
support for special education and related services for children with 
disabilities, or otherwise made available because of the excess costs of 
educating those children, below the amount of that support for the 
preceding fiscal year.
    (b) Reduction of funds for failure to maintain support. The 
Secretary reduces the allocation of funds under section 611 of the Act 
for any fiscal year following the fiscal year in which the State fails 
to comply with the requirement of paragraph (a) of this section by the 
same amount by which the State fails to meet the requirement.
    (c) Waivers for exceptional or uncontrollable circumstances. The 
Secretary may waive the requirement of paragraph (a) of this section for 
a State, for one fiscal year at a time, if the Secretary determines 
that--
    (1) Granting a waiver would be equitable due to exceptional or 
uncontrollable circumstances such as a natural disaster or a precipitous 
and unforeseen decline in the financial resources of the State; or
    (2) The State meets the standard in Sec. 300.164 for a waiver of 
the requirement to supplement, and not to supplant, funds received under 
Part B of the Act.
    (d) Subsequent years. If, for any fiscal year, a State fails to meet 
the requirement of paragraph (a) of this section, including any year for 
which the State is granted a waiver under paragraph (c) of this section, 
the financial support required of the State in future years under 
paragraph (a) of this section shall be the amount that would have been 
required in the absence of that failure and not the reduced level of the 
State's support.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(18))

[[Page 45]]



Sec. 300.164  Waiver of requirement regarding supplementing and not 
supplanting with Part B funds.

    (a) Except as provided under Sec. Sec. 300.202 through 300.205, 
funds paid to a State under Part B of the Act must be used to supplement 
and increase the level of Federal, State, and local funds (including 
funds that are not under the direct control of SEAs or LEAs) expended 
for special education and related services provided to children with 
disabilities under Part B of the Act and in no case to supplant those 
Federal, State, and local funds. A State may use funds it retains under 
Sec. 300.704(a) and (b) without regard to the prohibition on 
supplanting other funds.
    (b) If a State provides clear and convincing evidence that all 
eligible children with disabilities throughout the State have FAPE 
available to them, the Secretary may waive for a period of one year in 
whole or in part the requirement under Sec. 300.162 (regarding State-
level nonsupplanting) if the Secretary concurs with the evidence 
provided by the State.
    (c) If a State wishes to request a waiver under this section, it 
must submit to the Secretary a written request that includes--
    (1) An assurance that FAPE is currently available, and will remain 
available throughout the period that a waiver would be in effect, to all 
eligible children with disabilities throughout the State, regardless of 
the public agency that is responsible for providing FAPE to them. The 
assurance must be signed by an official who has the authority to provide 
that assurance as it applies to all eligible children with disabilities 
in the State;
    (2) All evidence that the State wishes the Secretary to consider in 
determining whether all eligible children with disabilities have FAPE 
available to them, setting forth in detail--
    (i) The basis on which the State has concluded that FAPE is 
available to all eligible children in the State; and
    (ii) The procedures that the State will implement to ensure that 
FAPE remains available to all eligible children in the State, which must 
include--
    (A) The State's procedures under Sec. 300.111 for ensuring that all 
eligible children are identified, located and evaluated;
    (B) The State's procedures for monitoring public agencies to ensure 
that they comply with all requirements of this part;
    (C) The State's complaint procedures under Sec. Sec. 300.151 
through 300.153; and
    (D) The State's hearing procedures under Sec. Sec. 300.511 through 
300.516 and Sec. Sec. 300.530 through 300.536;
    (3) A summary of all State and Federal monitoring reports, and State 
complaint decisions (see Sec. Sec. 300.151 through 300.153) and hearing 
decisions (see Sec. Sec. 300.511 through 300.516 and Sec. Sec. 300.530 
through 300.536), issued within three years prior to the date of the 
State's request for a waiver under this section, that includes any 
finding that FAPE has not been available to one or more eligible 
children, and evidence that FAPE is now available to all children 
addressed in those reports or decisions; and
    (4) Evidence that the State, in determining that FAPE is currently 
available to all eligible children with disabilities in the State, has 
consulted with the State advisory panel under Sec. 300.167.
    (d) If the Secretary determines that the request and supporting 
evidence submitted by the State makes a prima facie showing that FAPE 
is, and will remain, available to all eligible children with 
disabilities in the State, the Secretary, after notice to the public 
throughout the State, conducts a public hearing at which all interested 
persons and organizations may present evidence regarding the following 
issues:
    (1) Whether FAPE is currently available to all eligible children 
with disabilities in the State.
    (2) Whether the State will be able to ensure that FAPE remains 
available to all eligible children with disabilities in the State if the 
Secretary provides the requested waiver.
    (e) Following the hearing, the Secretary, based on all submitted 
evidence, will provide a waiver, in whole or in part, for a period of 
one year if the Secretary finds that the State has provided clear and 
convincing evidence that FAPE is currently available to all eligible 
children with disabilities in

[[Page 46]]

the State, and the State will be able to ensure that FAPE remains 
available to all eligible children with disabilities in the State if the 
Secretary provides the requested waiver.
    (f) A State may receive a waiver of the requirement of section 
612(a)(18)(A) of the Act and Sec. 300.164 if it satisfies the 
requirements of paragraphs (b) through (e) of this section.
    (g) The Secretary may grant subsequent waivers for a period of one 
year each, if the Secretary determines that the State has provided clear 
and convincing evidence that all eligible children with disabilities 
throughout the State have, and will continue to have throughout the one-
year period of the waiver, FAPE available to them.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(17)(C), (18)(C)(ii))



Sec. 300.165  Public participation.

    (a) Prior to the adoption of any policies and procedures needed to 
comply with Part B of the Act (including any amendments to those 
policies and procedures), the State must ensure that there are public 
hearings, adequate notice of the hearings, and an opportunity for 
comment available to the general public, including individuals with 
disabilities and parents of children with disabilities.
    (b) Before submitting a State plan under this part, a State must 
comply with the public participation requirements in paragraph (a) of 
this section and those in 20 U.S.C. 1232d(b)(7).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(19); 20 U.S.C. 1232d(b)(7))



Sec. 300.166  Rule of construction.

    In complying with Sec. Sec. 300.162 and 300.163, a State may not 
use funds paid to it under this part to satisfy State-law mandated 
funding obligations to LEAs, including funding based on student 
attendance or enrollment, or inflation.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(20))

                          State Advisory Panel



Sec. 300.167  State advisory panel.

    The State must establish and maintain an advisory panel for the 
purpose of providing policy guidance with respect to special education 
and related services for children with disabilities in the State.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(21)(A))



Sec. 300.168  Membership.

    (a) General. The advisory panel must consist of members appointed by 
the Governor, or any other official authorized under State law to make 
such appointments, be representative of the State population and be 
composed of individuals involved in, or concerned with the education of 
children with disabilities, including--
    (1) Parents of children with disabilities (ages birth through 26);
    (2) Individuals with disabilities;
    (3) Teachers;
    (4) Representatives of institutions of higher education that prepare 
special education and related services personnel;
    (5) State and local education officials, including officials who 
carry out activities under subtitle B of title VII of the McKinney-Vento 
Homeless Assistance Act, (42 U.S.C. 11431 et seq.);
    (6) Administrators of programs for children with disabilities;
    (7) Representatives of other State agencies involved in the 
financing or delivery of related services to children with disabilities;
    (8) Representatives of private schools and public charter schools;
    (9) Not less than one representative of a vocational, community, or 
business organization concerned with the provision of transition 
services to children with disabilities;
    (10) A representative from the State child welfare agency 
responsible for foster care; and
    (11) Representatives from the State juvenile and adult corrections 
agencies.

[[Page 47]]

    (b) Special rule. A majority of the members of the panel must be 
individuals with disabilities or parents of children with disabilities 
(ages birth through 26).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(21)(B) and (C))



Sec. 300.169  Duties.

    The advisory panel must--
    (a) Advise the SEA of unmet needs within the State in the education 
of children with disabilities;
    (b) Comment publicly on any rules or regulations proposed by the 
State regarding the education of children with disabilities;
    (c) Advise the SEA in developing evaluations and reporting on data 
to the Secretary under section 618 of the Act;
    (d) Advise the SEA in developing corrective action plans to address 
findings identified in Federal monitoring reports under Part B of the 
Act; and
    (e) Advise the SEA in developing and implementing policies relating 
to the coordination of services for children with disabilities.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(21)(D))

             Other Provisions Required for State Eligibility



Sec. 300.170  Suspension and expulsion rates.

    (a) General. The SEA must examine data, including data disaggregated 
by race and ethnicity, to determine if significant discrepancies are 
occurring in the rate of long-term suspensions and expulsions of 
children with disabilities--
    (1) Among LEAs in the State; or
    (2) Compared to the rates for nondisabled children within those 
agencies.
    (b) Review and revision of policies. If the discrepancies described 
in paragraph (a) of this section are occurring, the SEA must review and, 
if appropriate, revise (or require the affected State agency or LEA to 
revise) its policies, procedures, and practices relating to the 
development and implementation of IEPs, the use of positive behavioral 
interventions and supports, and procedural safeguards, to ensure that 
these policies, procedures, and practices comply with the Act.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(22))



Sec. 300.171  Annual description of use of Part B funds.

    (a) In order to receive a grant in any fiscal year a State must 
annually describe--
    (1) How amounts retained for State administration and State-level 
activities under Sec. 300.704 will be used to meet the requirements of 
this part; and
    (2) How those amounts will be allocated among the activities 
described in Sec. 300.704 to meet State priorities based on input from 
LEAs.
    (b) If a State's plans for use of its funds under Sec. 300.704 for 
the forthcoming year do not change from the prior year, the State may 
submit a letter to that effect to meet the requirement in paragraph (a) 
of this section.
    (c) The provisions of this section do not apply to the Virgin 
Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana 
Islands, and the freely associated States.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1411(e)(5))



Sec. 300.172  Access to instructional materials.

    (a) General. The State must--
    (1) Adopt the National Instructional Materials Accessibility 
Standard (NIMAS), published as appendix C to part 300, for the purposes 
of providing instructional materials to blind persons or other persons 
with print disabilities, in a timely manner after publication of the 
NIMAS in the Federal Register on July 19, 2006 (71 FR 41084); and
    (2) Establish a State definition of ``timely manner'' for purposes 
of paragraphs (b)(2) and (b)(3) of this section if the State is not 
coordinating with the National Instructional Materials Access Center 
(NIMAC) or (b)(3) and (c)(2) of this section if the State is 
coordinating with the NIMAC.

[[Page 48]]

    (b) Rights and responsibilities of SEA. (1) Nothing in this section 
shall be construed to require any SEA to coordinate with the NIMAC.
    (2) If an SEA chooses not to coordinate with the NIMAC, the SEA must 
provide an assurance to the Secretary that it will provide instructional 
materials to blind persons or other persons with print disabilities in a 
timely manner.
    (3) Nothing in this section relieves an SEA of its responsibility to 
ensure that children with disabilities who need instructional materials 
in accessible formats, but are not included under the definition of 
blind or other persons with print disabilities in Sec. 300.172(e)(1)(i) 
or who need materials that cannot be produced from NIMAS files, receive 
those instructional materials in a timely manner.
    (4) In order to meet its responsibility under paragraphs (b)(2), 
(b)(3), and (c) of this section to ensure that children with 
disabilities who need instructional materials in accessible formats are 
provided those materials in a timely manner, the SEA must ensure that 
all public agencies take all reasonable steps to provide instructional 
materials in accessible formats to children with disabilities who need 
those instructional materials at the same time as other children receive 
instructional materials.
    (c) Preparation and delivery of files. If an SEA chooses to 
coordinate with the NIMAC, as of December 3, 2006, the SEA must--
    (1) As part of any print instructional materials adoption process, 
procurement contract, or other practice or instrument used for purchase 
of print instructional materials, enter into a written contract with the 
publisher of the print instructional materials to--
    (i) Require the publisher to prepare and, on or before delivery of 
the print instructional materials, provide to NIMAC electronic files 
containing the contents of the print instructional materials using the 
NIMAS; or
    (ii) Purchase instructional materials from the publisher that are 
produced in, or may be rendered in, specialized formats.
    (2) Provide instructional materials to blind persons or other 
persons with print disabilities in a timely manner.
    (d) Assistive technology. In carrying out this section, the SEA, to 
the maximum extent possible, must work collaboratively with the State 
agency responsible for assistive technology programs.
    (e) Definitions. (1) In this section and Sec. 300.210--
    (i) Blind persons or other persons with print disabilities means 
children served under this part who may qualify to receive books and 
other publications produced in specialized formats in accordance with 
the Act entitled ``An Act to provide books for adult blind,'' approved 
March 3, 1931, 2 U.S.C. 135a;
    (ii) National Instructional Materials Access Center or NIMAC means 
the center established pursuant to section 674(e) of the Act;
    (iii) National Instructional Materials Accessibility Standard or 
NIMAS has the meaning given the term in section 674(e)(3)(B) of the Act;
    (iv) Specialized formats has the meaning given the term in section 
674(e)(3)(D) of the Act.
    (2) The definitions in paragraph (e)(1) of this section apply to 
each State and LEA, whether or not the State or LEA chooses to 
coordinate with the NIMAC.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(23), 1474(e))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]



Sec. 300.173  Overidentification and disproportionality.

    The State must have in effect, consistent with the purposes of this 
part and with section 618(d) of the Act, policies and procedures 
designed to prevent the inappropriate overidentification or 
disproportionate representation by race and ethnicity of children as 
children with disabilities, including children with disabilities with a 
particular impairment described in Sec. 300.8.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(24))

[[Page 49]]



Sec. 300.174  Prohibition on mandatory medication.

    (a) General. The SEA must prohibit State and LEA personnel from 
requiring parents to obtain a prescription for substances identified 
under schedules I, II, III, IV, or V in section 202(c) of the Controlled 
Substances Act (21 U.S.C. 812(c)) for a child as a condition of 
attending school, receiving an evaluation under Sec. Sec. 300.300 
through 300.311, or receiving services under this part.
    (b) Rule of construction. Nothing in paragraph (a) of this section 
shall be construed to create a Federal prohibition against teachers and 
other school personnel consulting or sharing classroom-based 
observations with parents or guardians regarding a student's academic 
and functional performance, or behavior in the classroom or school, or 
regarding the need for evaluation for special education or related 
services under Sec. 300.111 (related to child find).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(a)(25))



Sec. 300.175  SEA as provider of FAPE or direct services.

    If the SEA provides FAPE to children with disabilities, or provides 
direct services to these children, the agency--
    (a) Must comply with any additional requirements of Sec. Sec. 
300.201 and 300.202 and Sec. Sec. 300.206 through 300.226 as if the 
agency were an LEA; and
    (b) May use amounts that are otherwise available to the agency under 
Part B of the Act to serve those children without regard to Sec. 
300.202(b) (relating to excess costs).

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(b))



Sec. 300.176  Exception for prior State plans.

    (a) General. If a State has on file with the Secretary policies and 
procedures approved by the Secretary that demonstrate that the State 
meets any requirement of Sec. 300.100, including any policies and 
procedures filed under Part B of the Act as in effect before, December 
3, 2004, the Secretary considers the State to have met the requirement 
for purposes of receiving a grant under Part B of the Act.
    (b) Modifications made by a State. (1) Subject to paragraph (b)(2) 
of this section, policies and procedures submitted by a State in 
accordance with this subpart remain in effect until the State submits to 
the Secretary the modifications that the State determines necessary.
    (2) The provisions of this subpart apply to a modification to an 
application to the same extent and in the same manner that they apply to 
the original plan.
    (c) Modifications required by the Secretary. The Secretary may 
require a State to modify its policies and procedures, but only to the 
extent necessary to ensure the State's compliance with this part, if--
    (1) After December 3, 2004, the provisions of the Act or the 
regulations in this part are amended;
    (2) There is a new interpretation of this Act by a Federal court or 
a State's highest court; or
    (3) There is an official finding of noncompliance with Federal law 
or regulations.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(c)(2) and (3))



Sec. 300.177  States' sovereign immunity and positive efforts to 
employ and advance qualified individuals with disabilities.

    (a) States' sovereign immunity.
    (1) A State that accepts funds under this part waives its immunity 
under the 11th amendment of the Constitution of the United States from 
suit in Federal court for a violation of this part.
    (2) In a suit against a State for a violation of this part, remedies 
(including remedies both at law and in equity) are available for such a 
violation in the suit against any public entity other than a State.
    (3) Paragraphs (a)(1) and (a)(2) of this section apply with respect 
to violations that occur in whole or part after the date of enactment of 
the Education of the Handicapped Act Amendments of 1990.

[[Page 50]]

    (b) Positive efforts to employ and advance qualified individuals 
with disabilities. Each recipient of assistance under Part B of the Act 
must make positive efforts to employ, and advance in employment, 
qualified individuals with disabilities in programs assisted under Part 
B of the Act.

(Authority: 20 U.S.C. 1403, 1405)

[73 FR 73027, Dec. 1, 2008]

                          Department Procedures



Sec. 300.178  Determination by the Secretary that a State is eligible
to receive a grant.

    If the Secretary determines that a State is eligible to receive a 
grant under Part B of the Act, the Secretary notifies the State of that 
determination.

(Authority: 20 U.S.C. 1412(d)(1))



Sec. 300.179  Notice and hearing before determining that a State is
not eligible to receive a grant.

    (a) General. (1) The Secretary does not make a final determination 
that a State is not eligible to receive a grant under Part B of the Act 
until providing the State--
    (i) With reasonable notice; and
    (ii) With an opportunity for a hearing.
    (2) In implementing paragraph (a)(1)(i) of this section, the 
Secretary sends a written notice to the SEA by certified mail with 
return receipt requested.
    (b) Content of notice. In the written notice described in paragraph 
(a)(2) of this section, the Secretary--
    (1) States the basis on which the Secretary proposes to make a final 
determination that the State is not eligible;
    (2) May describe possible options for resolving the issues;
    (3) Advises the SEA that it may request a hearing and that the 
request for a hearing must be made not later than 30 days after it 
receives the notice of the proposed final determination that the State 
is not eligible; and
    (4) Provides the SEA with information about the hearing procedures 
that will be followed.

(Authority: 20 U.S.C. 1412(d)(2))



Sec. 300.180  Hearing official or panel.

    (a) If the SEA requests a hearing, the Secretary designates one or 
more individuals, either from the Department or elsewhere, not 
responsible for or connected with the administration of this program, to 
conduct a hearing.
    (b) If more than one individual is designated, the Secretary 
designates one of those individuals as the Chief Hearing Official of the 
Hearing Panel. If one individual is designated, that individual is the 
Hearing Official.

(Authority: 20 U.S.C. 1412(d)(2))



Sec. 300.181  Hearing procedures.

    (a) As used in Sec. Sec. 300.179 through 300.184 the term party or 
parties means the following:
    (1) An SEA that requests a hearing regarding the proposed 
disapproval of the State's eligibility under this part.
    (2) The Department official who administers the program of financial 
assistance under this part.
    (3) A person, group or agency with an interest in and having 
relevant information about the case that has applied for and been 
granted leave to intervene by the Hearing Official or Hearing Panel.
    (b) Within 15 days after receiving a request for a hearing, the 
Secretary designates a Hearing Official or Hearing Panel and notifies 
the parties.
    (c) The Hearing Official or Hearing Panel may regulate the course of 
proceedings and the conduct of the parties during the proceedings. The 
Hearing Official or Hearing Panel takes all steps necessary to conduct a 
fair and impartial proceeding, to avoid delay, and to maintain order, 
including the following:
    (1) The Hearing Official or Hearing Panel may hold conferences or 
other types of appropriate proceedings to clarify, simplify, or define 
the issues or to consider other matters that may aid in the disposition 
of the case.
    (2) The Hearing Official or Hearing Panel may schedule a prehearing 
conference with the Hearing Official or Hearing Panel and the parties.
    (3) Any party may request the Hearing Official or Hearing Panel to 
schedule a prehearing or other conference. The Hearing Official or 
Hearing Panel

[[Page 51]]

decides whether a conference is necessary and notifies all parties.
    (4) At a prehearing or other conference, the Hearing Official or 
Hearing Panel and the parties may consider subjects such as--
    (i) Narrowing and clarifying issues;
    (ii) Assisting the parties in reaching agreements and stipulations;
    (iii) Clarifying the positions of the parties;
    (iv) Determining whether an evidentiary hearing or oral argument 
should be held; and
    (v) Setting dates for--
    (A) The exchange of written documents;
    (B) The receipt of comments from the parties on the need for oral 
argument or evidentiary hearing;
    (C) Further proceedings before the Hearing Official or Hearing Panel 
(including an evidentiary hearing or oral argument, if either is 
scheduled);
    (D) Requesting the names of witnesses each party wishes to present 
at an evidentiary hearing and estimation of time for each presentation; 
or
    (E) Completion of the review and the initial decision of the Hearing 
Official or Hearing Panel.
    (5) A prehearing or other conference held under paragraph (c)(4) of 
this section may be conducted by telephone conference call.
    (6) At a prehearing or other conference, the parties must be 
prepared to discuss the subjects listed in paragraph (b)(4) of this 
section.
    (7) Following a prehearing or other conference the Hearing Official 
or Hearing Panel may issue a written statement describing the issues 
raised, the action taken, and the stipulations and agreements reached by 
the parties.
    (d) The Hearing Official or Hearing Panel may require parties to 
state their positions and to provide all or part of the evidence in 
writing.
    (e) The Hearing Official or Hearing Panel may require parties to 
present testimony through affidavits and to conduct cross-examination 
through interrogatories.
    (f) The Hearing Official or Hearing Panel may direct the parties to 
exchange relevant documents or information and lists of witnesses, and 
to send copies to the Hearing Official or Panel.
    (g) The Hearing Official or Hearing Panel may receive, rule on, 
exclude, or limit evidence at any stage of the proceedings.
    (h) The Hearing Official or Hearing Panel may rule on motions and 
other issues at any stage of the proceedings.
    (i) The Hearing Official or Hearing Panel may examine witnesses.
    (j) The Hearing Official or Hearing Panel may set reasonable time 
limits for submission of written documents.
    (k) The Hearing Official or Hearing Panel may refuse to consider 
documents or other submissions if they are not submitted in a timely 
manner unless good cause is shown.
    (l) The Hearing Official or Hearing Panel may interpret applicable 
statutes and regulations but may not waive them or rule on their 
validity.
    (m)(1) The parties must present their positions through briefs and 
the submission of other documents and may request an oral argument or 
evidentiary hearing. The Hearing Official or Hearing Panel shall 
determine whether an oral argument or an evidentiary hearing is needed 
to clarify the positions of the parties.
    (2) The Hearing Official or Hearing Panel gives each party an 
opportunity to be represented by counsel.
    (n) If the Hearing Official or Hearing Panel determines that an 
evidentiary hearing would materially assist the resolution of the 
matter, the Hearing Official or Hearing Panel gives each party, in 
addition to the opportunity to be represented by counsel--
    (1) An opportunity to present witnesses on the party's behalf; and
    (2) An opportunity to cross-examine witnesses either orally or with 
written questions.
    (o) The Hearing Official or Hearing Panel accepts any evidence that 
it finds is relevant and material to the proceedings and is not unduly 
repetitious.
    (p)(1) The Hearing Official or Hearing Panel--
    (i) Arranges for the preparation of a transcript of each hearing;
    (ii) Retains the original transcript as part of the record of the 
hearing; and
    (iii) Provides one copy of the transcript to each party.

[[Page 52]]

    (2) Additional copies of the transcript are available on request and 
with payment of the reproduction fee.
    (q) Each party must file with the Hearing Official or Hearing Panel 
all written motions, briefs, and other documents and must at the same 
time provide a copy to the other parties to the proceedings.

(Authority: 20 U.S.C. 1412(d)(2))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61306, Oct. 30, 2007]



Sec. 300.182  Initial decision; final decision.

    (a) The Hearing Official or Hearing Panel prepares an initial 
written decision that addresses each of the points in the notice sent by 
the Secretary to the SEA under Sec. 300.179 including any amendments to 
or further clarifications of the issues, under Sec. 300.181(c)(7).
    (b) The initial decision of a Hearing Panel is made by a majority of 
Panel members.
    (c) The Hearing Official or Hearing Panel mails, by certified mail 
with return receipt requested, a copy of the initial decision to each 
party (or to the party's counsel) and to the Secretary, with a notice 
stating that each party has an opportunity to submit written comments 
regarding the decision to the Secretary.
    (d) Each party may file comments and recommendations on the initial 
decision with the Hearing Official or Hearing Panel within 15 days of 
the date the party receives the Panel's decision.
    (e) The Hearing Official or Hearing Panel sends a copy of a party's 
initial comments and recommendations to the other parties by certified 
mail with return receipt requested. Each party may file responsive 
comments and recommendations with the Hearing Official or Hearing Panel 
within seven days of the date the party receives the initial comments 
and recommendations.
    (f) The Hearing Official or Hearing Panel forwards the parties' 
initial and responsive comments on the initial decision to the Secretary 
who reviews the initial decision and issues a final decision.
    (g) The initial decision of the Hearing Official or Hearing Panel 
becomes the final decision of the Secretary unless, within 25 days after 
the end of the time for receipt of written comments and recommendations, 
the Secretary informs the Hearing Official or Hearing Panel and the 
parties to a hearing in writing that the decision is being further 
reviewed for possible modification.
    (h) The Secretary rejects or modifies the initial decision of the 
Hearing Official or Hearing Panel if the Secretary finds that it is 
clearly erroneous.
    (i) The Secretary conducts the review based on the initial decision, 
the written record, the transcript of the Hearing Official's or Hearing 
Panel's proceedings, and written comments.
    (j) The Secretary may remand the matter to the Hearing Official or 
Hearing Panel for further proceedings.
    (k) Unless the Secretary remands the matter as provided in paragraph 
(j) of this section, the Secretary issues the final decision, with any 
necessary modifications, within 30 days after notifying the Hearing 
Official or Hearing Panel that the initial decision is being further 
reviewed.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1412(d)(2))



Sec. 300.183  Filing requirements.

    (a) Any written submission by a party under Sec. Sec. 300.179 
through 300.184 must be filed by hand delivery, by mail, or by facsimile 
transmission. The Secretary discourages the use of facsimile 
transmission for documents longer than five pages.
    (b) The filing date under paragraph (a) of this section is the date 
the document is--
    (1) Hand-delivered;
    (2) Mailed; or
    (3) Sent by facsimile transmission.
    (c) A party filing by facsimile transmission is responsible for 
confirming that a complete and legible copy of the document was received 
by the Department.
    (d) If a document is filed by facsimile transmission, the Secretary, 
the Hearing Official, or the Hearing Panel, as applicable, may require 
the filing of a follow-up hard copy by hand delivery or by mail within a 
reasonable period of time.

[[Page 53]]

    (e) If agreed upon by the parties, service of a document may be made 
upon the other party by facsimile transmission.

(Authority: 20 U.S.C. 1412(d))



Sec. 300.184  Judicial review.

    If a State is dissatisfied with the Secretary's final decision with 
respect to the eligibility of the State under section 612 of the Act, 
the State may, not later than 60 days after notice of that decision, 
file with the United States Court of Appeals for the circuit in which 
that State is located a petition for review of that decision. A copy of 
the petition must be transmitted by the clerk of the court to the 
Secretary. The Secretary then files in the court the record of the 
proceedings upon which the Secretary's decision was based, as provided 
in 28 U.S.C. 2112.

(Authority: 20 U.S.C. 1416(e)(8))



Sec. 300.185  [Reserved]



Sec. 300.186  Assistance under other Federal programs.

    Part B of the Act may not be construed to permit a State to reduce 
medical and other assistance available, or to alter eligibility, under 
titles V and XIX of the Social Security Act with respect to the 
provision of FAPE for children with disabilities in the State.

(Authority: 20 U.S.C. 1412(e))

                 By-pass for Children in Private Schools



Sec. 300.190  By-pass--general.

    (a) If, on December 2, 1983, the date of enactment of the Education 
of the Handicapped Act Amendments of 1983, an SEA was prohibited by law 
from providing for the equitable participation in special programs of 
children with disabilities enrolled in private elementary schools and 
secondary schools as required by section 612(a)(10)(A) of the Act, or if 
the Secretary determines that an SEA, LEA, or other public agency has 
substantially failed or is unwilling to provide for such equitable 
participation then the Secretary shall, notwithstanding such provision 
of law, arrange for the provision of services to these children through 
arrangements which shall be subject to the requirements of section 
612(a)(10)(A) of the Act.
    (b) The Secretary waives the requirement of section 612(a)(10)(A) of 
the Act and of Sec. Sec. 300.131 through 300.144 if the Secretary 
implements a by-pass.

(Authority: 20 U.S.C. 1412(f)(1))



Sec. 300.191  Provisions for services under a by-pass.

    (a) Before implementing a by-pass, the Secretary consults with 
appropriate public and private school officials, including SEA 
officials, in the affected State, and as appropriate, LEA or other 
public agency officials to consider matters such as--
    (1) Any prohibition imposed by State law that results in the need 
for a by-pass; and
    (2) The scope and nature of the services required by private school 
children with disabilities in the State, and the number of children to 
be served under the by-pass.
    (b) After determining that a by-pass is required, the Secretary 
arranges for the provision of services to private school children with 
disabilities in the State, LEA or other public agency in a manner 
consistent with the requirements of section 612(a)(10)(A) of the Act and 
Sec. Sec. 300.131 through 300.144 by providing services through one or 
more agreements with appropriate parties.
    (c) For any fiscal year that a by-pass is implemented, the Secretary 
determines the maximum amount to be paid to the providers of services by 
multiplying--
    (1) A per child amount determined by dividing the total amount 
received by the State under Part B of the Act for the fiscal year by the 
number of children with disabilities served in the prior year as 
reported to the Secretary under section 618 of the Act; by
    (2) The number of private school children with disabilities (as 
defined in Sec. Sec. 300.8(a) and 300.130) in the State, LEA or other 
public agency, as determined by the Secretary on the basis of the most 
recent satisfactory data available, which may include an estimate of the 
number of those children with disabilities.

[[Page 54]]

    (d) The Secretary deducts from the State's allocation under Part B 
of the Act the amount the Secretary determines is necessary to implement 
a by-pass and pays that amount to the provider of services. The 
Secretary may withhold this amount from the State's allocation pending 
final resolution of any investigation or complaint that could result in 
a determination that a by-pass must be implemented.

(Authority: 20 U.S.C. 1412(f)(2))



Sec. 300.192  Notice of intent to implement a by-pass.

    (a) Before taking any final action to implement a by-pass, the 
Secretary provides the SEA and, as appropriate, LEA or other public 
agency with written notice.
    (b) In the written notice, the Secretary--
    (1) States the reasons for the proposed by-pass in sufficient detail 
to allow the SEA and, as appropriate, LEA or other public agency to 
respond; and
    (2) Advises the SEA and, as appropriate, LEA or other public agency 
that it has a specific period of time (at least 45 days) from receipt of 
the written notice to submit written objections to the proposed by-pass 
and that it may request in writing the opportunity for a hearing to show 
cause why a by-pass should not be implemented.
    (c) The Secretary sends the notice to the SEA and, as appropriate, 
LEA or other public agency by certified mail with return receipt 
requested.

(Authority: 20 U.S.C. 1412(f)(3)(A))



Sec. 300.193  Request to show cause.

    An SEA, LEA or other public agency in receipt of a notice under 
Sec. 300.192 that seeks an opportunity to show cause why a by-pass 
should not be implemented must submit a written request for a show cause 
hearing to the Secretary, within the specified time period in the 
written notice in Sec. 300.192(b)(2).

(Authority: 20 U.S.C. 1412(f)(3))



Sec. 300.194  Show cause hearing.

    (a) If a show cause hearing is requested, the Secretary--
    (1) Notifies the SEA and affected LEA or other public agency, and 
other appropriate public and private school officials of the time and 
place for the hearing;
    (2) Designates a person to conduct the show cause hearing. The 
designee must not have had any responsibility for the matter brought for 
a hearing; and
    (3) Notifies the SEA, LEA or other public agency, and 
representatives of private schools that they may be represented by legal 
counsel and submit oral or written evidence and arguments at the 
hearing.
    (b) At the show cause hearing, the designee considers matters such 
as--
    (1) The necessity for implementing a by-pass;
    (2) Possible factual errors in the written notice of intent to 
implement a by-pass; and
    (3) The objections raised by public and private school 
representatives.
    (c) The designee may regulate the course of the proceedings and the 
conduct of parties during the pendency of the proceedings. The designee 
takes all steps necessary to conduct a fair and impartial proceeding, to 
avoid delay, and to maintain order.
    (d) The designee has no authority to require or conduct discovery.
    (e) The designee may interpret applicable statutes and regulations, 
but may not waive them or rule on their validity.
    (f) The designee arranges for the preparation, retention, and, if 
appropriate, dissemination of the record of the hearing.
    (g) Within 10 days after the hearing, the designee--
    (1) Indicates that a decision will be issued on the basis of the 
existing record; or
    (2) Requests further information from the SEA, LEA, other public 
agency, representatives of private schools or Department officials.

(Authority: 20 U.S.C. 1412(f)(3))



Sec. 300.195  Decision.

    (a) The designee who conducts the show cause hearing--
    (1) Within 120 days after the record of a show cause hearing is 
closed, issues a

[[Page 55]]

written decision that includes a statement of findings; and
    (2) Submits a copy of the decision to the Secretary and sends a copy 
to each party by certified mail with return receipt requested.
    (b) Each party may submit comments and recommendations on the 
designee's decision to the Secretary within 30 days of the date the 
party receives the designee's decision.
    (c) The Secretary adopts, reverses, or modifies the designee's 
decision and notifies all parties to the show cause hearing of the 
Secretary's final action. That notice is sent by certified mail with 
return receipt requested.

(Authority: 20 U.S.C. 1412(f)(3))



Sec. 300.196  Filing requirements.

    (a) Any written submission under Sec. 300.194 must be filed by 
hand-delivery, by mail, or by facsimile transmission. The Secretary 
discourages the use of facsimile transmission for documents longer than 
five pages.
    (b) The filing date under paragraph (a) of this section is the date 
the document is--
    (1) Hand-delivered;
    (2) Mailed; or
    (3) Sent by facsimile transmission.
    (c) A party filing by facsimile transmission is responsible for 
confirming that a complete and legible copy of the document was received 
by the Department.
    (d) If a document is filed by facsimile transmission, the Secretary 
or the hearing officer, as applicable, may require the filing of a 
follow-up hard copy by hand-delivery or by mail within a reasonable 
period of time.
    (e) If agreed upon by the parties, service of a document may be made 
upon the other party by facsimile transmission.
    (f) A party must show a proof of mailing to establish the filing 
date under paragraph (b)(2) of this section as provided in 34 CFR 
75.102(d).

(Authority: 20 U.S.C. 1412(f)(3))



Sec. 300.197  Judicial review.

    If dissatisfied with the Secretary's final action, the SEA may, 
within 60 days after notice of that action, file a petition for review 
with the United States Court of Appeals for the circuit in which the 
State is located. The procedures for judicial review are described in 
section 612(f)(3) (B) through (D) of the Act.

(Authority: 20 U.S.C. 1412(f)(3)(B)-(D))



Sec. 300.198  Continuation of a by-pass.

    The Secretary continues a by-pass until the Secretary determines 
that the SEA, LEA or other public agency will meet the requirements for 
providing services to private school children.

(Authority: 20 U.S.C. 1412(f)(2)(C))

                          State Administration



Sec. 300.199  State administration.

    (a) Rulemaking. Each State that receives funds under Part B of the 
Act must--
    (1) Ensure that any State rules, regulations, and policies relating 
to this part conform to the purposes of this part;
    (2) Identify in writing to LEAs located in the State and the 
Secretary any such rule, regulation, or policy as a State-imposed 
requirement that is not required by Part B of the Act and Federal 
regulations; and
    (3) Minimize the number of rules, regulations, and policies to which 
the LEAs and schools located in the State are subject under Part B of 
the Act.
    (b) Support and facilitation. State rules, regulations, and policies 
under Part B of the Act must support and facilitate LEA and school-level 
system improvement designed to enable children with disabilities to meet 
the challenging State student academic achievement standards.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1407)



             Subpart C_Local Educational Agency Eligibility



Sec. 300.200  Condition of assistance.

    An LEA is eligible for assistance under Part B of the Act for a 
fiscal year if the agency submits a plan that provides assurances to the 
SEA that

[[Page 56]]

the LEA meets each of the conditions in Sec. Sec. 300.201 through 
300.213.

(Authority: 20 U.S.C. 1413(a))



Sec. 300.201  Consistency with State policies.

    The LEA, in providing for the education of children with 
disabilities within its jurisdiction, must have in effect policies, 
procedures, and programs that are consistent with the State policies and 
procedures established under Sec. Sec. 300.101 through 300.163, and 
Sec. Sec. 300.165 through 300.174.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(1))



Sec. 300.202  Use of amounts.

    (a) General. Amounts provided to the LEA under Part B of the Act--
    (1) Must be expended in accordance with the applicable provisions of 
this part;
    (2) Must be used only to pay the excess costs of providing special 
education and related services to children with disabilities, consistent 
with paragraph (b) of this section; and
    (3) Must be used to supplement State, local, and other Federal funds 
and not to supplant those funds.
    (b) Excess cost requirement--(1) General. (i) The excess cost 
requirement prevents an LEA from using funds provided under Part B of 
the Act to pay for all of the costs directly attributable to the 
education of a child with a disability, subject to paragraph (b)(1)(ii) 
of this section.
    (ii) The excess cost requirement does not prevent an LEA from using 
Part B funds to pay for all of the costs directly attributable to the 
education of a child with a disability in any of the ages 3, 4, 5, 18, 
19, 20, or 21, if no local or State funds are available for nondisabled 
children of these ages. However, the LEA must comply with the 
nonsupplanting and other requirements of this part in providing the 
education and services for these children.
    (2)(i) An LEA meets the excess cost requirement if it has spent at 
least a minimum average amount for the education of its children with 
disabilities before funds under Part B of the Act are used.
    (ii) The amount described in paragraph (b)(2)(i) of this section is 
determined in accordance with the definition of excess costs in Sec. 
300.16. That amount may not include capital outlay or debt service.
    (3) If two or more LEAs jointly establish eligibility in accordance 
with Sec. 300.223, the minimum average amount is the average of the 
combined minimum average amounts determined in accordance with the 
definition of excess costs in Sec. 300.16 in those agencies for 
elementary or secondary school students, as the case may be.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(2)(A))



Sec. 300.203  Maintenance of effort.

    (a) General. Except as provided in Sec. Sec. 300.204 and 300.205, 
funds provided to an LEA under Part B of the Act must not be used to 
reduce the level of expenditures for the education of children with 
disabilities made by the LEA from local funds below the level of those 
expenditures for the preceding fiscal year.
    (b) Standard. (1) Except as provided in paragraph (b)(2) of this 
section, the SEA must determine that an LEA complies with paragraph (a) 
of this section for purposes of establishing the LEA's eligibility for 
an award for a fiscal year if the LEA budgets, for the education of 
children with disabilities, at least the same total or per capita amount 
from either of the following sources as the LEA spent for that purpose 
from the same source for the most recent prior year for which 
information is available:
    (i) Local funds only.
    (ii) The combination of State and local funds.
    (2) An LEA that relies on paragraph (b)(1)(i) of this section for 
any fiscal year must ensure that the amount of local funds it budgets 
for the education of children with disabilities in that year is at least 
the same, either in total or per capita, as the amount it spent for that 
purpose in the most recent fiscal year for which information is 
available and the standard in paragraph (b)(1)(i) of this section was 
used

[[Page 57]]

to establish its compliance with this section.
    (3) The SEA may not consider any expenditures made from funds 
provided by the Federal Government for which the SEA is required to 
account to the Federal Government or for which the LEA is required to 
account to the Federal Government directly or through the SEA in 
determining an LEA's compliance with the requirement in paragraph (a) of 
this section.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(2)(A))



Sec. 300.204  Exception to maintenance of effort.

    Notwithstanding the restriction in Sec. 300.203(a), an LEA may 
reduce the level of expenditures by the LEA under Part B of the Act 
below the level of those expenditures for the preceding fiscal year if 
the reduction is attributable to any of the following:
    (a) The voluntary departure, by retirement or otherwise, or 
departure for just cause, of special education or related services 
personnel.
    (b) A decrease in the enrollment of children with disabilities.
    (c) The termination of the obligation of the agency, consistent with 
this part, to provide a program of special education to a particular 
child with a disability that is an exceptionally costly program, as 
determined by the SEA, because the child--
    (1) Has left the jurisdiction of the agency;
    (2) Has reached the age at which the obligation of the agency to 
provide FAPE to the child has terminated; or
    (3) No longer needs the program of special education.
    (d) The termination of costly expenditures for long-term purchases, 
such as the acquisition of equipment or the construction of school 
facilities.
    (e) The assumption of cost by the high cost fund operated by the SEA 
under Sec. 300.704(c).

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(2)(B))



Sec. 300.205  Adjustment to local fiscal efforts in certain fiscal years.

    (a) Amounts in excess. Notwithstanding Sec. 300.202(a)(2) and (b) 
and Sec. 300.203(a), and except as provided in paragraph (d) of this 
section and Sec. 300.230(e)(2), for any fiscal year for which the 
allocation received by an LEA under Sec. 300.705 exceeds the amount the 
LEA received for the previous fiscal year, the LEA may reduce the level 
of expenditures otherwise required by Sec. 300.203(a) by not more than 
50 percent of the amount of that excess.
    (b) Use of amounts to carry out activities under ESEA. If an LEA 
exercises the authority under paragraph (a) of this section, the LEA 
must use an amount of local funds equal to the reduction in expenditures 
under paragraph (a) of this section to carry out activities that could 
be supported with funds under the ESEA regardless of whether the LEA is 
using funds under the ESEA for those activities.
    (c) State prohibition. Notwithstanding paragraph (a) of this 
section, if an SEA determines that an LEA is unable to establish and 
maintain programs of FAPE that meet the requirements of section 613(a) 
of the Act and this part or the SEA has taken action against the LEA 
under section 616 of the Act and subpart F of these regulations, the SEA 
must prohibit the LEA from reducing the level of expenditures under 
paragraph (a) of this section for that fiscal year.
    (d) Special rule. The amount of funds expended by an LEA for early 
intervening services under Sec. 300.226 shall count toward the maximum 
amount of expenditures that the LEA may reduce under paragraph (a) of 
this section.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(2)(C))



Sec. 300.206  Schoolwide programs under title I of the ESEA.

    (a) General. Notwithstanding the provisions of Sec. Sec. 300.202 
and 300.203 or any other provision of Part B of the Act, an LEA may use 
funds received under Part B of the Act for any fiscal year to carry out 
a schoolwide program under section 1114 of the ESEA, except that

[[Page 58]]

the amount used in any schoolwide program may not exceed--
    (1)(i) The amount received by the LEA under Part B of the Act for 
that fiscal year; divided by
    (ii) The number of children with disabilities in the jurisdiction of 
the LEA; and multiplied by
    (2) The number of children with disabilities participating in the 
schoolwide program.
    (b) Funding conditions. The funds described in paragraph (a) of this 
section are subject to the following conditions:
    (1) The funds must be considered as Federal Part B funds for 
purposes of the calculations required by Sec. 300.202(a)(2) and (a)(3).
    (2) The funds may be used without regard to the requirements of 
Sec. 300.202(a)(1).
    (c) Meeting other Part B requirements. Except as provided in 
paragraph (b) of this section, all other requirements of Part B of the 
Act must be met by an LEA using Part B funds in accordance with 
paragraph (a) of this section, including ensuring that children with 
disabilities in schoolwide program schools--
    (1) Receive services in accordance with a properly developed IEP; 
and
    (2) Are afforded all of the rights and services guaranteed to 
children with disabilities under the Act.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(2)(D))



Sec. 300.207  Personnel development.

    The LEA must ensure that all personnel necessary to carry out Part B 
of the Act are appropriately and adequately prepared, subject to the 
requirements of Sec. 300.156 (related to personnel qualifications) and 
section 2122 of the ESEA.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(3))



Sec. 300.208  Permissive use of funds.

    (a) Uses. Notwithstanding Sec. Sec. 300.202, 300.203(a), and 
300.162(b), funds provided to an LEA under Part B of the Act may be used 
for the following activities:
    (1) Services and aids that also benefit nondisabled children. For 
the costs of special education and related services, and supplementary 
aids and services, provided in a regular class or other education-
related setting to a child with a disability in accordance with the IEP 
of the child, even if one or more nondisabled children benefit from 
these services.
    (2) Early intervening services. To develop and implement 
coordinated, early intervening educational services in accordance with 
Sec. 300.226.
    (3) High cost special education and related services. To establish 
and implement cost or risk sharing funds, consortia, or cooperatives for 
the LEA itself, or for LEAs working in a consortium of which the LEA is 
a part, to pay for high cost special education and related services.
    (b) Administrative case management. An LEA may use funds received 
under Part B of the Act to purchase appropriate technology for 
recordkeeping, data collection, and related case management activities 
of teachers and related services personnel providing services described 
in the IEP of children with disabilities, that is needed for the 
implementation of those case management activities.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(4))



Sec. 300.209  Treatment of charter schools and their students.

    (a) Rights of children with disabilities. Children with disabilities 
who attend public charter schools and their parents retain all rights 
under this part.
    (b) Charter schools that are public schools of the LEA. (1) In 
carrying out Part B of the Act and these regulations with respect to 
charter schools that are public schools of the LEA, the LEA must--
    (i) Serve children with disabilities attending those charter schools 
in the same manner as the LEA serves children with disabilities in its 
other schools, including providing supplementary and related services on 
site at the charter school to the same extent to which the LEA has a 
policy or practice of providing such services on the site to its other 
public schools; and
    (ii) Provide funds under Part B of the Act to those charter 
schools--

[[Page 59]]

    (A) On the same basis as the LEA provides funds to the LEA's other 
public schools, including proportional distribution based on relative 
enrollment of children with disabilities; and
    (B) At the same time as the LEA distributes other Federal funds to 
the LEA's other public schools, consistent with the State's charter 
school law.
    (2) If the public charter school is a school of an LEA that receives 
funding under Sec. 300.705 and includes other public schools--
    (i) The LEA is responsible for ensuring that the requirements of 
this part are met, unless State law assigns that responsibility to some 
other entity; and
    (ii) The LEA must meet the requirements of paragraph (b)(1) of this 
section.
    (c) Public charter schools that are LEAs. If the public charter 
school is an LEA, consistent with Sec. 300.28, that receives funding 
under Sec. 300.705, that charter school is responsible for ensuring 
that the requirements of this part are met, unless State law assigns 
that responsibility to some other entity.
    (d) Public charter schools that are not an LEA or a school that is 
part of an LEA. (1) If the public charter school is not an LEA receiving 
funding under Sec. 300.705, or a school that is part of an LEA 
receiving funding under Sec. 300.705, the SEA is responsible for 
ensuring that the requirements of this part are met.
    (2) Paragraph (d)(1) of this section does not preclude a State from 
assigning initial responsibility for ensuring the requirements of this 
part are met to another entity. However, the SEA must maintain the 
ultimate responsibility for ensuring compliance with this part, 
consistent with Sec. 300.149.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(5))



Sec. 300.210  Purchase of instructional materials.

    (a) General. Not later than December 3, 2006, an LEA that chooses to 
coordinate with the National Instructional Materials Access Center 
(NIMAC), when purchasing print instructional materials, must acquire 
those instructional materials in the same manner, and subject to the 
same conditions as an SEA under Sec. 300.172.
    (b) Rights of LEA. (1) Nothing in this section shall be construed to 
require an LEA to coordinate with the NIMAC.
    (2) If an LEA chooses not to coordinate with the NIMAC, the LEA must 
provide an assurance to the SEA that the LEA will provide instructional 
materials to blind persons or other persons with print disabilities in a 
timely manner.
    (3) Nothing in this section relieves an LEA of its responsibility to 
ensure that children with disabilities who need instructional materials 
in accessible formats but are not included under the definition of blind 
or other persons with print disabilities in Sec. 300.172(e)(1)(i) or 
who need materials that cannot be produced from NIMAS files, receive 
those instructional materials in a timely manner.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(6))



Sec. 300.211  Information for SEA.

    The LEA must provide the SEA with information necessary to enable 
the SEA to carry out its duties under Part B of the Act, including, with 
respect to Sec. Sec. 300.157 and 300.160, information relating to the 
performance of children with disabilities participating in programs 
carried out under Part B of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(7))



Sec. 300.212  Public information.

    The LEA must make available to parents of children with disabilities 
and to the general public all documents relating to the eligibility of 
the agency under Part B of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(8))



Sec. 300.213  Records regarding migratory children with disabilities.

    The LEA must cooperate in the Secretary's efforts under section 1308 
of the ESEA to ensure the linkage of records pertaining to migratory 
children with disabilities for the purpose of

[[Page 60]]

electronically exchanging, among the States, health and educational 
information regarding those children.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(a)(9))



Sec. Sec. 300.214-300.219  [Reserved]



Sec. 300.220  Exception for prior local plans.

    (a) General. If an LEA or a State agency described in Sec. 300.228 
has on file with the SEA policies and procedures that demonstrate that 
the LEA or State agency meets any requirement of Sec. 300.200, 
including any policies and procedures filed under Part B of the Act as 
in effect before December 3, 2004, the SEA must consider the LEA or 
State agency to have met that requirement for purposes of receiving 
assistance under Part B of the Act.
    (b) Modification made by an LEA or State agency. Subject to 
paragraph (c) of this section, policies and procedures submitted by an 
LEA or a State agency in accordance with this subpart remain in effect 
until the LEA or State agency submits to the SEA the modifications that 
the LEA or State agency determines are necessary.
    (c) Modifications required by the SEA. The SEA may require an LEA or 
a State agency to modify its policies and procedures, but only to the 
extent necessary to ensure the LEA's or State agency's compliance with 
Part B of the Act or State law, if--
    (1) After December 3, 2004, the effective date of the Individuals 
with Disabilities Education Improvement Act of 2004, the applicable 
provisions of the Act (or the regulations developed to carry out the 
Act) are amended;
    (2) There is a new interpretation of an applicable provision of the 
Act by Federal or State courts; or
    (3) There is an official finding of noncompliance with Federal or 
State law or regulations.

(Authority: 20 U.S.C. 1413(b))



Sec. 300.221  Notification of LEA or State agency in case of ineligibility.

    If the SEA determines that an LEA or State agency is not eligible 
under Part B of the Act, then the SEA must--
    (a) Notify the LEA or State agency of that determination; and
    (b) Provide the LEA or State agency with reasonable notice and an 
opportunity for a hearing.

(Authority: 20 U.S.C. 1413(c))



Sec. 300.222  LEA and State agency compliance.

    (a) General. If the SEA, after reasonable notice and an opportunity 
for a hearing, finds that an LEA or State agency that has been 
determined to be eligible under this subpart is failing to comply with 
any requirement described in Sec. Sec. 300.201 through 300.213, the SEA 
must reduce or must not provide any further payments to the LEA or State 
agency until the SEA is satisfied that the LEA or State agency is 
complying with that requirement.
    (b) Notice requirement. Any State agency or LEA in receipt of a 
notice described in paragraph (a) of this section must, by means of 
public notice, take the measures necessary to bring the pendency of an 
action pursuant to this section to the attention of the public within 
the jurisdiction of the agency.
    (c) Consideration. In carrying out its responsibilities under this 
section, each SEA must consider any decision resulting from a hearing 
held under Sec. Sec. 300.511 through 300.533 that is adverse to the LEA 
or State agency involved in the decision.

(Authority: 20 U.S.C. 1413(d))



Sec. 300.223  Joint establishment of eligibility.

    (a) General. An SEA may require an LEA to establish its eligibility 
jointly with another LEA if the SEA determines that the LEA will be 
ineligible under this subpart because the agency will not be able to 
establish and maintain programs of sufficient size and scope to 
effectively meet the needs of children with disabilities.
    (b) Charter school exception. An SEA may not require a charter 
school that is an LEA to jointly establish its eligibility under 
paragraph (a) of this section unless the charter school is explicitly 
permitted to do so under the State's charter school statute.

[[Page 61]]

    (c) Amount of payments. If an SEA requires the joint establishment 
of eligibility under paragraph (a) of this section, the total amount of 
funds made available to the affected LEAs must be equal to the sum of 
the payments that each LEA would have received under Sec. 300.705 if 
the agencies were eligible for those payments.

(Authority: 20 U.S.C. 1413(e)(1) and (2))



Sec. 300.224  Requirements for establishing eligibility.

    (a) Requirements for LEAs in general. LEAs that establish joint 
eligibility under this section must--
    (1) Adopt policies and procedures that are consistent with the 
State's policies and procedures under Sec. Sec. 300.101 through 
300.163, and Sec. Sec. 300.165 through 300.174; and
    (2) Be jointly responsible for implementing programs that receive 
assistance under Part B of the Act.
    (b) Requirements for educational service agencies in general. If an 
educational service agency is required by State law to carry out 
programs under Part B of the Act, the joint responsibilities given to 
LEAs under Part B of the Act--
    (1) Do not apply to the administration and disbursement of any 
payments received by that educational service agency; and
    (2) Must be carried out only by that educational service agency.
    (c) Additional requirement. Notwithstanding any other provision of 
Sec. Sec. 300.223 through 300.224, an educational service agency must 
provide for the education of children with disabilities in the least 
restrictive environment, as required by Sec. 300.112.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(e)(3) and (4))



Sec. 300.225  [Reserved]



Sec. 300.226  Early intervening services.

    (a) General. An LEA may not use more than 15 percent of the amount 
the LEA receives under Part B of the Act for any fiscal year, less any 
amount reduced by the LEA pursuant to Sec. 300.205, if any, in 
combination with other amounts (which may include amounts other than 
education funds), to develop and implement coordinated, early 
intervening services, which may include interagency financing 
structures, for students in kindergarten through grade 12 (with a 
particular emphasis on students in kindergarten through grade three) who 
are not currently identified as needing special education or related 
services, but who need additional academic and behavioral support to 
succeed in a general education environment. (See appendix D for examples 
of how Sec. 300.205(d), regarding local maintenance of effort, and 
Sec. 300.226(a) affect one another.)
    (b) Activities. In implementing coordinated, early intervening 
services under this section, an LEA may carry out activities that 
include--
    (1) Professional development (which may be provided by entities 
other than LEAs) for teachers and other school staff to enable such 
personnel to deliver scientifically based academic and behavioral 
interventions, including scientifically based literacy instruction, and, 
where appropriate, instruction on the use of adaptive and instructional 
software; and
    (2) Providing educational and behavioral evaluations, services, and 
supports, including scientifically based literacy instruction.
    (c) Construction. Nothing in this section shall be construed to 
either limit or create a right to FAPE under Part B of the Act or to 
delay appropriate evaluation of a child suspected of having a 
disability.
    (d) Reporting. Each LEA that develops and maintains coordinated, 
early intervening services under this section must annually report to 
the SEA on--
    (1) The number of children served under this section who received 
early intervening services; and
    (2) The number of children served under this section who received 
early intervening services and subsequently receive special education 
and related services under Part B of the Act during the preceding two 
year period.
    (e) Coordination with ESEA. Funds made available to carry out this 
section may be used to carry out coordinated, early intervening services 
aligned with activities funded by, and carried out under the ESEA if 
those funds are used to supplement, and not

[[Page 62]]

supplant, funds made available under the ESEA for the activities and 
services assisted under this section.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1413(f))



Sec. 300.227  Direct services by the SEA.

    (a) General. (1) An SEA must use the payments that would otherwise 
have been available to an LEA or to a State agency to provide special 
education and related services directly to children with disabilities 
residing in the area served by that LEA, or for whom that State agency 
is responsible, if the SEA determines that the LEA or State agency--
    (i) Has not provided the information needed to establish the 
eligibility of the LEA or State agency, or elected not to apply for its 
Part B allotment, under Part B of the Act;
    (ii) Is unable to establish and maintain programs of FAPE that meet 
the requirements of this part;
    (iii) Is unable or unwilling to be consolidated with one or more 
LEAs in order to establish and maintain the programs; or
    (iv) Has one or more children with disabilities who can best be 
served by a regional or State program or service delivery system 
designed to meet the needs of these children.
    (2) SEA administrative procedures. (i) In meeting the requirements 
in paragraph (a)(1) of this section, the SEA may provide special 
education and related services directly, by contract, or through other 
arrangements.
    (ii) The excess cost requirements of Sec. 300.202(b) do not apply 
to the SEA.
    (b) Manner and location of education and services. The SEA may 
provide special education and related services under paragraph (a) of 
this section in the manner and at the locations (including regional or 
State centers) as the SEA considers appropriate. The education and 
services must be provided in accordance with this part.

(Authority: 20 U.S.C. 1413(g))



Sec. 300.228  State agency eligibility.

    Any State agency that desires to receive a subgrant for any fiscal 
year under Sec. 300.705 must demonstrate to the satisfaction of the SEA 
that--
    (a) All children with disabilities who are participating in programs 
and projects funded under Part B of the Act receive FAPE, and that those 
children and their parents are provided all the rights and procedural 
safeguards described in this part; and
    (b) The agency meets the other conditions of this subpart that apply 
to LEAs.

(Authority: 20 U.S.C. 1413(h))



Sec. 300.229  Disciplinary information.

    (a) The State may require that a public agency include in the 
records of a child with a disability a statement of any current or 
previous disciplinary action that has been taken against the child and 
transmit the statement to the same extent that the disciplinary 
information is included in, and transmitted with, the student records of 
nondisabled children.
    (b) The statement may include a description of any behavior engaged 
in by the child that required disciplinary action, a description of the 
disciplinary action taken, and any other information that is relevant to 
the safety of the child and other individuals involved with the child.
    (c) If the State adopts such a policy, and the child transfers from 
one school to another, the transmission of any of the child's records 
must include both the child's current IEP and any statement of current 
or previous disciplinary action that has been taken against the child.

(Authority: 20 U.S.C. 1413(i))



Sec. 300.230  SEA flexibility.

    (a) Adjustment to State fiscal effort in certain fiscal years. For 
any fiscal year for which the allotment received by a State under Sec. 
300.703 exceeds the amount the State received for the previous fiscal 
year and if the State in school year 2003-2004 or any subsequent school 
year pays or reimburses all LEAs within the State from State revenue 100 
percent of the non-Federal share of the costs of special education and 
related services, the SEA, notwithstanding Sec. Sec. 300.162 through 
300.163 (related to State-level nonsupplanting

[[Page 63]]

and maintenance of effort), and Sec. 300.175 (related to direct 
services by the SEA) may reduce the level of expenditures from State 
sources for the education of children with disabilities by not more than 
50 percent of the amount of such excess.
    (b) Prohibition. Notwithstanding paragraph (a) of this section, if 
the Secretary determines that an SEA is unable to establish, maintain, 
or oversee programs of FAPE that meet the requirements of this part, or 
that the State needs assistance, intervention, or substantial 
intervention under Sec. 300.603, the Secretary prohibits the SEA from 
exercising the authority in paragraph (a) of this section.
    (c) Education activities. If an SEA exercises the authority under 
paragraph (a) of this section, the agency must use funds from State 
sources, in an amount equal to the amount of the reduction under 
paragraph (a) of this section, to support activities authorized under 
the ESEA, or to support need-based student or teacher higher education 
programs.
    (d) Report. For each fiscal year for which an SEA exercises the 
authority under paragraph (a) of this section, the SEA must report to 
the Secretary--
    (1) The amount of expenditures reduced pursuant to that paragraph; 
and
    (2) The activities that were funded pursuant to paragraph (c) of 
this section.
    (e) Limitation. (1) Notwithstanding paragraph (a) of this section, 
an SEA may not reduce the level of expenditures described in paragraph 
(a) of this section if any LEA in the State would, as a result of such 
reduction, receive less than 100 percent of the amount necessary to 
ensure that all children with disabilities served by the LEA receive 
FAPE from the combination of Federal funds received under Part B of the 
Act and State funds received from the SEA.
    (2) If an SEA exercises the authority under paragraph (a) of this 
section, LEAs in the State may not reduce local effort under Sec. 
300.205 by more than the reduction in the State funds they receive.

(Authority: 20 U.S.C. 1413(j))



   Subpart D_Evaluations, Eligibility Determinations, Individualized 
             Education Programs, and Educational Placements

                            Parental Consent



Sec. 300.300  Parental consent.

    (a) Parental consent for initial evaluation. (1)(i) The public 
agency proposing to conduct an initial evaluation to determine if a 
child qualifies as a child with a disability under Sec. 300.8 must, 
after providing notice consistent with Sec. Sec. 300.503 and 300.504, 
obtain informed consent, consistent with Sec. 300.9, from the parent of 
the child before conducting the evaluation.
    (ii) Parental consent for initial evaluation must not be construed 
as consent for initial provision of special education and related 
services.
    (iii) The public agency must make reasonable efforts to obtain the 
informed consent from the parent for an initial evaluation to determine 
whether the child is a child with a disability.
    (2) For initial evaluations only, if the child is a ward of the 
State and is not residing with the child's parent, the public agency is 
not required to obtain informed consent from the parent for an initial 
evaluation to determine whether the child is a child with a disability 
if--
    (i) Despite reasonable efforts to do so, the public agency cannot 
discover the whereabouts of the parent of the child;
    (ii) The rights of the parents of the child have been terminated in 
accordance with State law; or
    (iii) The rights of the parent to make educational decisions have 
been subrogated by a judge in accordance with State law and consent for 
an initial evaluation has been given by an individual appointed by the 
judge to represent the child.
    (3)(i) If the parent of a child enrolled in public school or seeking 
to be enrolled in public school does not provide consent for initial 
evaluation under paragraph (a)(1) of this section, or the parent fails 
to respond to a request to provide consent, the public agency may, but 
is not required to, pursue the

[[Page 64]]

initial evaluation of the child by utilizing the procedural safeguards 
in subpart E of this part (including the mediation procedures under 
Sec. 300.506 or the due process procedures under Sec. Sec. 300.507 
through 300.516), if appropriate, except to the extent inconsistent with 
State law relating to such parental consent.
    (ii) The public agency does not violate its obligation under Sec. 
300.111 and Sec. Sec. 300.301 through 300.311 if it declines to pursue 
the evaluation.
    (b) Parental consent for services. (1) A public agency that is 
responsible for making FAPE available to a child with a disability must 
obtain informed consent from the parent of the child before the initial 
provision of special education and related services to the child.
    (2) The public agency must make reasonable efforts to obtain 
informed consent from the parent for the initial provision of special 
education and related services to the child.
    (3) If the parent of a child fails to respond to a request for, or 
refuses to consent to, the initial provision of special education and 
related services, the public agency--
    (i) May not use the procedures in subpart E of this part (including 
the mediation procedures under Sec. 300.506 or the due process 
procedures under Sec. Sec. 300.507 through 300.516) in order to obtain 
agreement or a ruling that the services may be provided to the child;
    (ii) Will not be considered to be in violation of the requirement to 
make FAPE available to the child because of the failure to provide the 
child with the special education and related services for which the 
parent refuses to or fails to provide consent; and
    (iii) Is not required to convene an IEP Team meeting or develop an 
IEP under Sec. Sec. 300.320 and 300.324 for the child.
    (4) If, at any time subsequent to the initial provision of special 
education and related services, the parent of a child revokes consent in 
writing for the continued provision of special education and related 
services, the public agency--
    (i) May not continue to provide special education and related 
services to the child, but must provide prior written notice in 
accordance with Sec. 300.503 before ceasing the provision of special 
education and related services;
    (ii) May not use the procedures in subpart E of this part (including 
the mediation procedures under Sec. 300.506 or the due process 
procedures under Sec. Sec. 300.507 through 300.516) in order to obtain 
agreement or a ruling that the services may be provided to the child;
    (iii) Will not be considered to be in violation of the requirement 
to make FAPE available to the child because of the failure to provide 
the child with further special education and related services; and
    (iv) Is not required to convene an IEP Team meeting or develop an 
IEP under Sec. Sec. 300.320 and 300.324 for the child for further 
provision of special education and related services.
    (c) Parental consent for reevaluations. (1) Subject to paragraph 
(c)(2) of this section, each public agency--
    (i) Must obtain informed parental consent, in accordance with Sec. 
300.300(a)(1), prior to conducting any reevaluation of a child with a 
disability.
    (ii) If the parent refuses to consent to the reevaluation, the 
public agency may, but is not required to, pursue the reevaluation by 
using the consent override procedures described in paragraph (a)(3) of 
this section.
    (iii) The public agency does not violate its obligation under Sec. 
300.111 and Sec. Sec. 300.301 through 300.311 if it declines to pursue 
the evaluation or reevaluation.
    (2) The informed parental consent described in paragraph (c)(1) of 
this section need not be obtained if the public agency can demonstrate 
that--
    (i) It made reasonable efforts to obtain such consent; and
    (ii) The child's parent has failed to respond.
    (d) Other consent requirements.
    (1) Parental consent is not required before--
    (i) Reviewing existing data as part of an evaluation or a 
reevaluation; or
    (ii) Administering a test or other evaluation that is administered 
to all children unless, before administration of that test or 
evaluation, consent is required of parents of all children.
    (2) In addition to the parental consent requirements described in 
paragraphs (a), (b), and (c) of this section, a State may require 
parental consent for other services and activities under this

[[Page 65]]

part if it ensures that each public agency in the State establishes and 
implements effective procedures to ensure that a parent's refusal to 
consent does not result in a failure to provide the child with FAPE.
    (3) A public agency may not use a parent's refusal to consent to one 
service or activity under paragraphs (a), (b), (c), or (d)(2) of this 
section to deny the parent or child any other service, benefit, or 
activity of the public agency, except as required by this part.
    (4)(i) If a parent of a child who is home schooled or placed in a 
private school by the parents at their own expense does not provide 
consent for the initial evaluation or the reevaluation, or the parent 
fails to respond to a request to provide consent, the public agency may 
not use the consent override procedures (described in paragraphs (a)(3) 
and (c)(1) of this section); and
    (ii) The public agency is not required to consider the child as 
eligible for services under Sec. Sec. 300.132 through 300.144.
    (5) To meet the reasonable efforts requirement in paragraphs 
(a)(1)(iii), (a)(2)(i), (b)(2), and (c)(2)(i) of this section, the 
public agency must document its attempts to obtain parental consent 
using the procedures in Sec. 300.322(d).

(Authority: 20 U.S.C. 1414(a)(1)(D) and 1414(c))

[71 FR 46753, Aug. 14, 2006, as amended at 73 FR 73027, Dec. 1, 2008]

                      Evaluations and Reevaluations



Sec. 300.301  Initial evaluations.

    (a) General. Each public agency must conduct a full and individual 
initial evaluation, in accordance with Sec. Sec. 300.304 through 
300.306, before the initial provision of special education and related 
services to a child with a disability under this part.
    (b) Request for initial evaluation. Consistent with the consent 
requirements in Sec. 300.300, either a parent of a child or a public 
agency may initiate a request for an initial evaluation to determine if 
the child is a child with a disability.
    (c) Procedures for initial evaluation. The initial evaluation--
    (1)(i) Must be conducted within 60 days of receiving parental 
consent for the evaluation; or
    (ii) If the State establishes a timeframe within which the 
evaluation must be conducted, within that timeframe; and
    (2) Must consist of procedures--
    (i) To determine if the child is a child with a disability under 
Sec. 300.8; and
    (ii) To determine the educational needs of the child.
    (d) Exception. The timeframe described in paragraph (c)(1) of this 
section does not apply to a public agency if--
    (1) The parent of a child repeatedly fails or refuses to produce the 
child for the evaluation; or
    (2) A child enrolls in a school of another public agency after the 
relevant timeframe in paragraph (c)(1) of this section has begun, and 
prior to a determination by the child's previous public agency as to 
whether the child is a child with a disability under Sec. 300.8.
    (e) The exception in paragraph (d)(2) of this section applies only 
if the subsequent public agency is making sufficient progress to ensure 
a prompt completion of the evaluation, and the parent and subsequent 
public agency agree to a specific time when the evaluation will be 
completed.

(Authority: 20 U.S.C. 1414(a))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.302  Screening for instructional purposes is not evaluation.

    The screening of a student by a teacher or specialist to determine 
appropriate instructional strategies for curriculum implementation shall 
not be considered to be an evaluation for eligibility for special 
education and related services.

(Authority: 20 U.S.C. 1414(a)(1)(E))



Sec. 300.303  Reevaluations.

    (a) General. A public agency must ensure that a reevaluation of each 
child with a disability is conducted in accordance with Sec. Sec. 
300.304 through 300.311--
    (1) If the public agency determines that the educational or related 
services needs, including improved academic achievement and functional 
performance, of the child warrant a reevaluation; or

[[Page 66]]

    (2) If the child's parent or teacher requests a reevaluation.
    (b) Limitation. A reevaluation conducted under paragraph (a) of this 
section--
    (1) May occur not more than once a year, unless the parent and the 
public agency agree otherwise; and
    (2) Must occur at least once every 3 years, unless the parent and 
the public agency agree that a reevaluation is unnecessary.

(Authority: 20 U.S.C. 1414(a)(2))



Sec. 300.304  Evaluation procedures.

    (a) Notice. The public agency must provide notice to the parents of 
a child with a disability, in accordance with Sec. 300.503, that 
describes any evaluation procedures the agency proposes to conduct.
    (b) Conduct of evaluation. In conducting the evaluation, the public 
agency must--
    (1) Use a variety of assessment tools and strategies to gather 
relevant functional, developmental, and academic information about the 
child, including information provided by the parent, that may assist in 
determining--
    (i) Whether the child is a child with a disability under Sec. 
300.8; and
    (ii) The content of the child's IEP, including information related 
to enabling the child to be involved in and progress in the general 
education curriculum (or for a preschool child, to participate in 
appropriate activities);
    (2) Not use any single measure or assessment as the sole criterion 
for determining whether a child is a child with a disability and for 
determining an appropriate educational program for the child; and
    (3) Use technically sound instruments that may assess the relative 
contribution of cognitive and behavioral factors, in addition to 
physical or developmental factors.
    (c) Other evaluation procedures. Each public agency must ensure 
that--
    (1) Assessments and other evaluation materials used to assess a 
child under this part--
    (i) Are selected and administered so as not to be discriminatory on 
a racial or cultural basis;
    (ii) Are provided and administered in the child's native language or 
other mode of communication and in the form most likely to yield 
accurate information on what the child knows and can do academically, 
developmentally, and functionally, unless it is clearly not feasible to 
so provide or administer;
    (iii) Are used for the purposes for which the assessments or 
measures are valid and reliable;
    (iv) Are administered by trained and knowledgeable personnel; and
    (v) Are administered in accordance with any instructions provided by 
the producer of the assessments.
    (2) Assessments and other evaluation materials include those 
tailored to assess specific areas of educational need and not merely 
those that are designed to provide a single general intelligence 
quotient.
    (3) Assessments are selected and administered so as best to ensure 
that if an assessment is administered to a child with impaired sensory, 
manual, or speaking skills, the assessment results accurately reflect 
the child's aptitude or achievement level or whatever other factors the 
test purports to measure, rather than reflecting the child's impaired 
sensory, manual, or speaking skills (unless those skills are the factors 
that the test purports to measure).
    (4) The child is assessed in all areas related to the suspected 
disability, including, if appropriate, health, vision, hearing, social 
and emotional status, general intelligence, academic performance, 
communicative status, and motor abilities;
    (5) Assessments of children with disabilities who transfer from one 
public agency to another public agency in the same school year are 
coordinated with those children's prior and subsequent schools, as 
necessary and as expeditiously as possible, consistent with Sec. 
300.301(d)(2) and (e), to ensure prompt completion of full evaluations.
    (6) In evaluating each child with a disability under Sec. Sec. 
300.304 through 300.306, the evaluation is sufficiently comprehensive to 
identify all of the child's special education and related services 
needs, whether or not commonly linked to the disability category in 
which the child has been classified.

[[Page 67]]

    (7) Assessment tools and strategies that provide relevant 
information that directly assists persons in determining the educational 
needs of the child are provided.

(Authority: 20 U.S.C. 1414(b)(1)-(3), 1412(a)(6)(B))



Sec. 300.305  Additional requirements for evaluations and reevaluations.

    (a) Review of existing evaluation data. As part of an initial 
evaluation (if appropriate) and as part of any reevaluation under this 
part, the IEP Team and other qualified professionals, as appropriate, 
must--
    (1) Review existing evaluation data on the child, including--
    (i) Evaluations and information provided by the parents of the 
child;
    (ii) Current classroom-based, local, or State assessments, and 
classroom-based observations; and
    (iii) Observations by teachers and related services providers; and
    (2) On the basis of that review, and input from the child's parents, 
identify what additional data, if any, are needed to determine--
    (i)(A) Whether the child is a child with a disability, as defined in 
Sec. 300.8, and the educational needs of the child; or
    (B) In case of a reevaluation of a child, whether the child 
continues to have such a disability, and the educational needs of the 
child;
    (ii) The present levels of academic achievement and related 
developmental needs of the child;
    (iii)(A) Whether the child needs special education and related 
services; or
    (B) In the case of a reevaluation of a child, whether the child 
continues to need special education and related services; and
    (iv) Whether any additions or modifications to the special education 
and related services are needed to enable the child to meet the 
measurable annual goals set out in the IEP of the child and to 
participate, as appropriate, in the general education curriculum.
    (b) Conduct of review. The group described in paragraph (a) of this 
section may conduct its review without a meeting.
    (c) Source of data. The public agency must administer such 
assessments and other evaluation measures as may be needed to produce 
the data identified under paragraph (a) of this section.
    (d) Requirements if additional data are not needed. (1) If the IEP 
Team and other qualified professionals, as appropriate, determine that 
no additional data are needed to determine whether the child continues 
to be a child with a disability, and to determine the child's 
educational needs, the public agency must notify the child's parents 
of--
    (i) That determination and the reasons for the determination; and
    (ii) The right of the parents to request an assessment to determine 
whether the child continues to be a child with a disability, and to 
determine the child's educational needs.
    (2) The public agency is not required to conduct the assessment 
described in paragraph (d)(1)(ii) of this section unless requested to do 
so by the child's parents.
    (e) Evaluations before change in eligibility. (1) Except as provided 
in paragraph (e)(2) of this section, a public agency must evaluate a 
child with a disability in accordance with Sec. Sec. 300.304 through 
300.311 before determining that the child is no longer a child with a 
disability.
    (2) The evaluation described in paragraph (e)(1) of this section is 
not required before the termination of a child's eligibility under this 
part due to graduation from secondary school with a regular diploma, or 
due to exceeding the age eligibility for FAPE under State law.
    (3) For a child whose eligibility terminates under circumstances 
described in paragraph (e)(2) of this section, a public agency must 
provide the child with a summary of the child's academic achievement and 
functional performance, which shall include recommendations on how to 
assist the child in meeting the child's postsecondary goals.

(Authority: 20 U.S.C. 1414(c))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]

[[Page 68]]



Sec. 300.306  Determination of eligibility.

    (a) General. Upon completion of the administration of assessments 
and other evaluation measures--
    (1) A group of qualified professionals and the parent of the child 
determines whether the child is a child with a disability, as defined in 
Sec. 300.8, in accordance with paragraph (c) of this section and the 
educational needs of the child; and
    (2) The public agency provides a copy of the evaluation report and 
the documentation of determination of eligibility at no cost to the 
parent.
    (b) Special rule for eligibility determination. A child must not be 
determined to be a child with a disability under this part--
    (1) If the determinant factor for that determination is--
    (i) Lack of appropriate instruction in reading, including the 
essential components of reading instruction (as defined in section 
1208(3) of the ESEA);
    (ii) Lack of appropriate instruction in math; or
    (iii) Limited English proficiency; and
    (2) If the child does not otherwise meet the eligibility criteria 
under Sec. 300.8(a).
    (c) Procedures for determining eligibility and educational need. (1) 
In interpreting evaluation data for the purpose of determining if a 
child is a child with a disability under Sec. 300.8, and the 
educational needs of the child, each public agency must--
    (i) Draw upon information from a variety of sources, including 
aptitude and achievement tests, parent input, and teacher 
recommendations, as well as information about the child's physical 
condition, social or cultural background, and adaptive behavior; and
    (ii) Ensure that information obtained from all of these sources is 
documented and carefully considered.
    (2) If a determination is made that a child has a disability and 
needs special education and related services, an IEP must be developed 
for the child in accordance with Sec. Sec. 300.320 through 300.324.

(Authority: 20 U.S.C. 1414(b)(4) and (5))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]

 Additional Procedures for Identifying Children With Specific Learning 
                              Disabilities



Sec. 300.307  Specific learning disabilities.

    (a) General. A State must adopt, consistent with Sec. 300.309, 
criteria for determining whether a child has a specific learning 
disability as defined in Sec. 300.8(c)(10). In addition, the criteria 
adopted by the State--
    (1) Must not require the use of a severe discrepancy between 
intellectual ability and achievement for determining whether a child has 
a specific learning disability, as defined in Sec. 300.8(c)(10);
    (2) Must permit the use of a process based on the child's response 
to scientific, research-based intervention; and
    (3) May permit the use of other alternative research-based 
procedures for determining whether a child has a specific learning 
disability, as defined in Sec. 300.8(c)(10).
    (b) Consistency with State criteria. A public agency must use the 
State criteria adopted pursuant to paragraph (a) of this section in 
determining whether a child has a specific learning disability.

(Authority: 20 U.S.C. 1221e-3; 1401(30); 1414(b)(6))



Sec. 300.308  Additional group members.

    The determination of whether a child suspected of having a specific 
learning disability is a child with a disability as defined in Sec. 
300.8, must be made by the child's parents and a team of qualified 
professionals, which must include--
    (a)(1) The child's regular teacher; or
    (2) If the child does not have a regular teacher, a regular 
classroom teacher qualified to teach a child of his or her age; or
    (3) For a child of less than school age, an individual qualified by 
the SEA to teach a child of his or her age; and
    (b) At least one person qualified to conduct individual diagnostic 
examinations of children, such as a school psychologist, speech-language 
pathologist, or remedial reading teacher.

(Authority: 20 U.S.C. 1221e-3; 1401(30); 1414(b)(6))

[[Page 69]]



Sec. 300.309  Determining the existence of a specific learning 
disability.

    (a) The group described in Sec. 300.306 may determine that a child 
has a specific learning disability, as defined in Sec. 300.8(c)(10), 
if--
    (1) The child does not achieve adequately for the child's age or to 
meet State-approved grade-level standards in one or more of the 
following areas, when provided with learning experiences and instruction 
appropriate for the child's age or State-approved grade-level standards:
    (i) Oral expression.
    (ii) Listening comprehension.
    (iii) Written expression.
    (iv) Basic reading skill.
    (v) Reading fluency skills.
    (vi) Reading comprehension.
    (vii) Mathematics calculation.
    (viii) Mathematics problem solving.
    (2)(i) The child does not make sufficient progress to meet age or 
State-approved grade-level standards in one or more of the areas 
identified in paragraph (a)(1) of this section when using a process 
based on the child's response to scientific, research-based 
intervention; or
    (ii) The child exhibits a pattern of strengths and weaknesses in 
performance, achievement, or both, relative to age, State-approved 
grade-level standards, or intellectual development, that is determined 
by the group to be relevant to the identification of a specific learning 
disability, using appropriate assessments, consistent with Sec. Sec. 
300.304 and 300.305; and
    (3) The group determines that its findings under paragraphs (a)(1) 
and (2) of this section are not primarily the result of--
    (i) A visual, hearing, or motor disability;
    (ii) Mental retardation;
    (iii) Emotional disturbance;
    (iv) Cultural factors;
    (v) Environmental or economic disadvantage; or
    (vi) Limited English proficiency.
    (b) To ensure that underachievement in a child suspected of having a 
specific learning disability is not due to lack of appropriate 
instruction in reading or math, the group must consider, as part of the 
evaluation described in Sec. Sec. 300.304 through 300.306--
    (1) Data that demonstrate that prior to, or as a part of, the 
referral process, the child was provided appropriate instruction in 
regular education settings, delivered by qualified personnel; and
    (2) Data-based documentation of repeated assessments of achievement 
at reasonable intervals, reflecting formal assessment of student 
progress during instruction, which was provided to the child's parents.
    (c) The public agency must promptly request parental consent to 
evaluate the child to determine if the child needs special education and 
related services, and must adhere to the timeframes described in 
Sec. Sec. 300.301 and 300.303, unless extended by mutual written 
agreement of the child's parents and a group of qualified professionals, 
as described in Sec. 300.306(a)(1)--
    (1) If, prior to a referral, a child has not made adequate progress 
after an appropriate period of time when provided instruction, as 
described in paragraphs (b)(1) and (b)(2) of this section; and
    (2) Whenever a child is referred for an evaluation.

(Authority: 20 U.S.C. 1221e-3; 1401(30); 1414(b)(6))



Sec. 300.310  Observation.

    (a) The public agency must ensure that the child is observed in the 
child's learning environment (including the regular classroom setting) 
to document the child's academic performance and behavior in the areas 
of difficulty.
    (b) The group described in Sec. 300.306(a)(1), in determining 
whether a child has a specific learning disability, must decide to--
    (1) Use information from an observation in routine classroom 
instruction and monitoring of the child's performance that was done 
before the child was referred for an evaluation; or
    (2) Have at least one member of the group described in Sec. 
300.306(a)(1) conduct an observation of the child's academic performance 
in the regular classroom after the child has been referred for an 
evaluation and parental consent, consistent with Sec. 300.300(a), is 
obtained.
    (c) In the case of a child of less than school age or out of school, 
a group member must observe the child in an

[[Page 70]]

environment appropriate for a child of that age.

(Authority: 20 U.S.C. 1221e-3; 1401(30); 1414(b)(6))



Sec. 300.311  Specific documentation for the eligibility determination.

    (a) For a child suspected of having a specific learning disability, 
the documentation of the determination of eligibility, as required in 
Sec. 300.306(a)(2), must contain a statement of--
    (1) Whether the child has a specific learning disability;
    (2) The basis for making the determination, including an assurance 
that the determination has been made in accordance with Sec. 
300.306(c)(1);
    (3) The relevant behavior, if any, noted during the observation of 
the child and the relationship of that behavior to the child's academic 
functioning;
    (4) The educationally relevant medical findings, if any;
    (5) Whether--
    (i) The child does not achieve adequately for the child's age or to 
meet State-approved grade-level standards consistent with Sec. 
300.309(a)(1); and
    (ii)(A) The child does not make sufficient progress to meet age or 
State-approved grade-level standards consistent with Sec. 
300.309(a)(2)(i); or
    (B) The child exhibits a pattern of strengths and weaknesses in 
performance, achievement, or both, relative to age, State-approved grade 
level standards or intellectual development consistent with Sec. 
300.309(a)(2)(ii);
    (6) The determination of the group concerning the effects of a 
visual, hearing, or motor disability; mental retardation; emotional 
disturbance; cultural factors; environmental or economic disadvantage; 
or limited English proficiency on the child's achievement level; and
    (7) If the child has participated in a process that assesses the 
child's response to scientific, research-based intervention--
    (i) The instructional strategies used and the student-centered data 
collected; and
    (ii) The documentation that the child's parents were notified 
about--
    (A) The State's policies regarding the amount and nature of student 
performance data that would be collected and the general education 
services that would be provided;
    (B) Strategies for increasing the child's rate of learning; and
    (C) The parents' right to request an evaluation.
    (b) Each group member must certify in writing whether the report 
reflects the member's conclusion. If it does not reflect the member's 
conclusion, the group member must submit a separate statement presenting 
the member's conclusions.

(Authority: 20 U.S.C. 1221e-3; 1401(30); 1414(b)(6))

                    Individualized Education Programs



Sec. 300.320  Definition of individualized education program.

    (a) General. As used in this part, the term individualized education 
program or IEP means a written statement for each child with a 
disability that is developed, reviewed, and revised in a meeting in 
accordance with Sec. Sec. 300.320 through 300.324, and that must 
include--
    (1) A statement of the child's present levels of academic 
achievement and functional performance, including--
    (i) How the child's disability affects the child's involvement and 
progress in the general education curriculum (i.e., the same curriculum 
as for nondisabled children); or
    (ii) For preschool children, as appropriate, how the disability 
affects the child's participation in appropriate activities;
    (2)(i) A statement of measurable annual goals, including academic 
and functional goals designed to--
    (A) Meet the child's needs that result from the child's disability 
to enable the child to be involved in and make progress in the general 
education curriculum; and
    (B) Meet each of the child's other educational needs that result 
from the child's disability;
    (ii) For children with disabilities who take alternate assessments 
aligned to alternate academic achievement standards, a description of 
benchmarks or short-term objectives;
    (3) A description of--

[[Page 71]]

    (i) How the child's progress toward meeting the annual goals 
described in paragraph (2) of this section will be measured; and
    (ii) When periodic reports on the progress the child is making 
toward meeting the annual goals (such as through the use of quarterly or 
other periodic reports, concurrent with the issuance of report cards) 
will be provided;
    (4) A statement of the special education and related services and 
supplementary aids and services, based on peer-reviewed research to the 
extent practicable, to be provided to the child, or on behalf of the 
child, and a statement of the program modifications or supports for 
school personnel that will be provided to enable the child--
    (i) To advance appropriately toward attaining the annual goals;
    (ii) To be involved in and make progress in the general education 
curriculum in accordance with paragraph (a)(1) of this section, and to 
participate in extracurricular and other nonacademic activities; and
    (iii) To be educated and participate with other children with 
disabilities and nondisabled children in the activities described in 
this section;
    (5) An explanation of the extent, if any, to which the child will 
not participate with nondisabled children in the regular class and in 
the activities described in paragraph (a)(4) of this section;
    (6)(i) A statement of any individual appropriate accommodations that 
are necessary to measure the academic achievement and functional 
performance of the child on State and districtwide assessments 
consistent with section 612(a)(16) of the Act; and
    (ii) If the IEP Team determines that the child must take an 
alternate assessment instead of a particular regular State or 
districtwide assessment of student achievement, a statement of why--
    (A) The child cannot participate in the regular assessment; and
    (B) The particular alternate assessment selected is appropriate for 
the child; and
    (7) The projected date for the beginning of the services and 
modifications described in paragraph (a)(4) of this section, and the 
anticipated frequency, location, and duration of those services and 
modifications.
    (b) Transition services. Beginning not later than the first IEP to 
be in effect when the child turns 16, or younger if determined 
appropriate by the IEP Team, and updated annually, thereafter, the IEP 
must include--
    (1) Appropriate measurable postsecondary goals based upon age 
appropriate transition assessments related to training, education, 
employment, and, where appropriate, independent living skills; and
    (2) The transition services (including courses of study) needed to 
assist the child in reaching those goals.
    (c) Transfer of rights at age of majority. Beginning not later than 
one year before the child reaches the age of majority under State law, 
the IEP must include a statement that the child has been informed of the 
child's rights under Part B of the Act, if any, that will transfer to 
the child on reaching the age of majority under Sec. 300.520.
    (d) Construction. Nothing in this section shall be construed to 
require--
    (1) That additional information be included in a child's IEP beyond 
what is explicitly required in section 614 of the Act; or
    (2) The IEP Team to include information under one component of a 
child's IEP that is already contained under another component of the 
child's IEP.

(Authority: 20 U.S.C. 1414(d)(1)(A) and (d)(6))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.321  IEP Team.

    (a) General. The public agency must ensure that the IEP Team for 
each child with a disability includes--
    (1) The parents of the child;
    (2) Not less than one regular education teacher of the child (if the 
child is, or may be, participating in the regular education 
environment);
    (3) Not less than one special education teacher of the child, or 
where appropriate, not less than one special education provider of the 
child;
    (4) A representative of the public agency who--
    (i) Is qualified to provide, or supervise the provision of, 
specially designed

[[Page 72]]

instruction to meet the unique needs of children with disabilities;
    (ii) Is knowledgeable about the general education curriculum; and
    (iii) Is knowledgeable about the availability of resources of the 
public agency.
    (5) An individual who can interpret the instructional implications 
of evaluation results, who may be a member of the team described in 
paragraphs (a)(2) through (a)(6) of this section;
    (6) At the discretion of the parent or the agency, other individuals 
who have knowledge or special expertise regarding the child, including 
related services personnel as appropriate; and
    (7) Whenever appropriate, the child with a disability.
    (b) Transition services participants. (1) In accordance with 
paragraph (a)(7) of this section, the public agency must invite a child 
with a disability to attend the child's IEP Team meeting if a purpose of 
the meeting will be the consideration of the postsecondary goals for the 
child and the transition services needed to assist the child in reaching 
those goals under Sec. 300.320(b).
    (2) If the child does not attend the IEP Team meeting, the public 
agency must take other steps to ensure that the child's preferences and 
interests are considered.
    (3) To the extent appropriate, with the consent of the parents or a 
child who has reached the age of majority, in implementing the 
requirements of paragraph (b)(1) of this section, the public agency must 
invite a representative of any participating agency that is likely to be 
responsible for providing or paying for transition services.
    (c) Determination of knowledge and special expertise. The 
determination of the knowledge or special expertise of any individual 
described in paragraph (a)(6) of this section must be made by the party 
(parents or public agency) who invited the individual to be a member of 
the IEP Team.
    (d) Designating a public agency representative. A public agency may 
designate a public agency member of the IEP Team to also serve as the 
agency representative, if the criteria in paragraph (a)(4) of this 
section are satisfied.
    (e) IEP Team attendance. (1) A member of the IEP Team described in 
paragraphs (a)(2) through (a)(5) of this section is not required to 
attend an IEP Team meeting, in whole or in part, if the parent of a 
child with a disability and the public agency agree, in writing, that 
the attendance of the member is not necessary because the member's area 
of the curriculum or related services is not being modified or discussed 
in the meeting.
    (2) A member of the IEP Team described in paragraph (e)(1) of this 
section may be excused from attending an IEP Team meeting, in whole or 
in part, when the meeting involves a modification to or discussion of 
the member's area of the curriculum or related services, if--
    (i) The parent, in writing, and the public agency consent to the 
excusal; and
    (ii) The member submits, in writing to the parent and the IEP Team, 
input into the development of the IEP prior to the meeting.
    (f) Initial IEP Team meeting for child under Part C. In the case of 
a child who was previously served under Part C of the Act, an invitation 
to the initial IEP Team meeting must, at the request of the parent, be 
sent to the Part C service coordinator or other representatives of the 
Part C system to assist with the smooth transition of services.

(Authority: 20 U.S.C. 1414(d)(1)(B)-(d)(1)(D))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.322  Parent participation.

    (a) Public agency responsibility--general. Each public agency must 
take steps to ensure that one or both of the parents of a child with a 
disability are present at each IEP Team meeting or are afforded the 
opportunity to participate, including--
    (1) Notifying parents of the meeting early enough to ensure that 
they will have an opportunity to attend; and
    (2) Scheduling the meeting at a mutually agreed on time and place.
    (b) Information provided to parents. (1) The notice required under 
paragraph (a)(1) of this section must--

[[Page 73]]

    (i) Indicate the purpose, time, and location of the meeting and who 
will be in attendance; and
    (ii) Inform the parents of the provisions in Sec. 300.321(a)(6) and 
(c) (relating to the participation of other individuals on the IEP Team 
who have knowledge or special expertise about the child), and Sec. 
300.321(f) (relating to the participation of the Part C service 
coordinator or other representatives of the Part C system at the initial 
IEP Team meeting for a child previously served under Part C of the Act).
    (2) For a child with a disability beginning not later than the first 
IEP to be in effect when the child turns 16, or younger if determined 
appropriate by the IEP Team, the notice also must--
    (i) Indicate--
    (A) That a purpose of the meeting will be the consideration of the 
postsecondary goals and transition services for the child, in accordance 
with Sec. 300.320(b); and
    (B) That the agency will invite the student; and
    (ii) Identify any other agency that will be invited to send a 
representative.
    (c) Other methods to ensure parent participation. If neither parent 
can attend an IEP Team meeting, the public agency must use other methods 
to ensure parent participation, including individual or conference 
telephone calls, consistent with Sec. 300.328 (related to alternative 
means of meeting participation).
    (d) Conducting an IEP Team meeting without a parent in attendance. A 
meeting may be conducted without a parent in attendance if the public 
agency is unable to convince the parents that they should attend. In 
this case, the public agency must keep a record of its attempts to 
arrange a mutually agreed on time and place, such as--
    (1) Detailed records of telephone calls made or attempted and the 
results of those calls;
    (2) Copies of correspondence sent to the parents and any responses 
received; and
    (3) Detailed records of visits made to the parent's home or place of 
employment and the results of those visits.
    (e) Use of interpreters or other action, as appropriate. The public 
agency must take whatever action is necessary to ensure that the parent 
understands the proceedings of the IEP Team meeting, including arranging 
for an interpreter for parents with deafness or whose native language is 
other than English.
    (f) Parent copy of child's IEP. The public agency must give the 
parent a copy of the child's IEP at no cost to the parent.

(Authority: 20 U.S.C. 1414(d)(1)(B)(i))



Sec. 300.323  When IEPs must be in effect.

    (a) General. At the beginning of each school year, each public 
agency must have in effect, for each child with a disability within its 
jurisdiction, an IEP, as defined in Sec. 300.320.
    (b) IEP or IFSP for children aged three through five. (1) In the 
case of a child with a disability aged three through five (or, at the 
discretion of the SEA, a two-year-old child with a disability who will 
turn age three during the school year), the IEP Team must consider an 
IFSP that contains the IFSP content (including the natural environments 
statement) described in section 636(d) of the Act and its implementing 
regulations (including an educational component that promotes school 
readiness and incorporates pre-literacy, language, and numeracy skills 
for children with IFSPs under this section who are at least three years 
of age), and that is developed in accordance with the IEP procedures 
under this part. The IFSP may serve as the IEP of the child, if using 
the IFSP as the IEP is--
    (i) Consistent with State policy; and
    (ii) Agreed to by the agency and the child's parents.
    (2) In implementing the requirements of paragraph (b)(1) of this 
section, the public agency must--
    (i) Provide to the child's parents a detailed explanation of the 
differences between an IFSP and an IEP; and
    (ii) If the parents choose an IFSP, obtain written informed consent 
from the parents.
    (c) Initial IEPs; provision of services. Each public agency must 
ensure that--
    (1) A meeting to develop an IEP for a child is conducted within 30 
days of a determination that the child needs special education and 
related services; and
    (2) As soon as possible following development of the IEP, special 
education and related services are made

[[Page 74]]

available to the child in accordance with the child's IEP.
    (d) Accessibility of child's IEP to teachers and others. Each public 
agency must ensure that--
    (1) The child's IEP is accessible to each regular education teacher, 
special education teacher, related services provider, and any other 
service provider who is responsible for its implementation; and
    (2) Each teacher and provider described in paragraph (d)(1) of this 
section is informed of--
    (i) His or her specific responsibilities related to implementing the 
child's IEP; and
    (ii) The specific accommodations, modifications, and supports that 
must be provided for the child in accordance with the IEP.
    (e) IEPs for children who transfer public agencies in the same 
State. If a child with a disability (who had an IEP that was in effect 
in a previous public agency in the same State) transfers to a new public 
agency in the same State, and enrolls in a new school within the same 
school year, the new public agency (in consultation with the parents) 
must provide FAPE to the child (including services comparable to those 
described in the child's IEP from the previous public agency), until the 
new public agency either--
    (1) Adopts the child's IEP from the previous public agency; or
    (2) Develops, adopts, and implements a new IEP that meets the 
applicable requirements in Sec. Sec. 300.320 through 300.324.
    (f) IEPs for children who transfer from another State. If a child 
with a disability (who had an IEP that was in effect in a previous 
public agency in another State) transfers to a public agency in a new 
State, and enrolls in a new school within the same school year, the new 
public agency (in consultation with the parents) must provide the child 
with FAPE (including services comparable to those described in the 
child's IEP from the previous public agency), until the new public 
agency--
    (1) Conducts an evaluation pursuant to Sec. Sec. 300.304 through 
300.306 (if determined to be necessary by the new public agency); and
    (2) Develops, adopts, and implements a new IEP, if appropriate, that 
meets the applicable requirements in Sec. Sec. 300.320 through 300.324.
    (g) Transmittal of records. To facilitate the transition for a child 
described in paragraphs (e) and (f) of this section--
    (1) The new public agency in which the child enrolls must take 
reasonable steps to promptly obtain the child's records, including the 
IEP and supporting documents and any other records relating to the 
provision of special education or related services to the child, from 
the previous public agency in which the child was enrolled, pursuant to 
34 CFR 99.31(a)(2); and
    (2) The previous public agency in which the child was enrolled must 
take reasonable steps to promptly respond to the request from the new 
public agency.

(Authority: 20 U.S.C. 1414(d)(2)(A)-(C))

                           Development of IEP



Sec. 300.324  Development, review, and revision of IEP.

    (a) Development of IEP--(1) General. In developing each child's IEP, 
the IEP Team must consider--
    (i) The strengths of the child;
    (ii) The concerns of the parents for enhancing the education of 
their child;
    (iii) The results of the initial or most recent evaluation of the 
child; and
    (iv) The academic, developmental, and functional needs of the child.
    (2) Consideration of special factors. The IEP Team must--
    (i) In the case of a child whose behavior impedes the child's 
learning or that of others, consider the use of positive behavioral 
interventions and supports, and other strategies, to address that 
behavior;
    (ii) In the case of a child with limited English proficiency, 
consider the language needs of the child as those needs relate to the 
child's IEP;
    (iii) In the case of a child who is blind or visually impaired, 
provide for instruction in Braille and the use of Braille unless the IEP 
Team determines, after an evaluation of the child's reading and writing 
skills, needs, and appropriate reading and writing media (including an 
evaluation of the child's future needs for instruction in Braille or the 
use of Braille),

[[Page 75]]

that instruction in Braille or the use of Braille is not appropriate for 
the child;
    (iv) Consider the communication needs of the child, and in the case 
of a child who is deaf or hard of hearing, consider the child's language 
and communication needs, opportunities for direct communications with 
peers and professional personnel in the child's language and 
communication mode, academic level, and full range of needs, including 
opportunities for direct instruction in the child's language and 
communication mode; and
    (v) Consider whether the child needs assistive technology devices 
and services.
    (3) Requirement with respect to regular education teacher. A regular 
education teacher of a child with a disability, as a member of the IEP 
Team, must, to the extent appropriate, participate in the development of 
the IEP of the child, including the determination of--
    (i) Appropriate positive behavioral interventions and supports and 
other strategies for the child; and
    (ii) Supplementary aids and services, program modifications, and 
support for school personnel consistent with Sec. 300.320(a)(4).
    (4) Agreement. (i) In making changes to a child's IEP after the 
annual IEP Team meeting for a school year, the parent of a child with a 
disability and the public agency may agree not to convene an IEP Team 
meeting for the purposes of making those changes, and instead may 
develop a written document to amend or modify the child's current IEP.
    (ii) If changes are made to the child's IEP in accordance with 
paragraph (a)(4)(i) of this section, the public agency must ensure that 
the child's IEP Team is informed of those changes.
    (5) Consolidation of IEP Team meetings. To the extent possible, the 
public agency must encourage the consolidation of reevaluation meetings 
for the child and other IEP Team meetings for the child.
    (6) Amendments. Changes to the IEP may be made either by the entire 
IEP Team at an IEP Team meeting, or as provided in paragraph (a)(4) of 
this section, by amending the IEP rather than by redrafting the entire 
IEP. Upon request, a parent must be provided with a revised copy of the 
IEP with the amendments incorporated.
    (b) Review and revision of IEPs--(1) General. Each public agency 
must ensure that, subject to paragraphs (b)(2) and (b)(3) of this 
section, the IEP Team--
    (i) Reviews the child's IEP periodically, but not less than 
annually, to determine whether the annual goals for the child are being 
achieved; and
    (ii) Revises the IEP, as appropriate, to address--
    (A) Any lack of expected progress toward the annual goals described 
in Sec. 300.320(a)(2), and in the general education curriculum, if 
appropriate;
    (B) The results of any reevaluation conducted under Sec. 300.303;
    (C) Information about the child provided to, or by, the parents, as 
described under Sec. 300.305(a)(2);
    (D) The child's anticipated needs; or
    (E) Other matters.
    (2) Consideration of special factors. In conducting a review of the 
child's IEP, the IEP Team must consider the special factors described in 
paragraph (a)(2) of this section.
    (3) Requirement with respect to regular education teacher. A regular 
education teacher of the child, as a member of the IEP Team, must, 
consistent with paragraph (a)(3) of this section, participate in the 
review and revision of the IEP of the child.
    (c) Failure to meet transition objectives--(1) Participating agency 
failure. If a participating agency, other than the public agency, fails 
to provide the transition services described in the IEP in accordance 
with Sec. 300.320(b), the public agency must reconvene the IEP Team to 
identify alternative strategies to meet the transition objectives for 
the child set out in the IEP.
    (2) Construction. Nothing in this part relieves any participating 
agency, including a State vocational rehabilitation agency, of the 
responsibility to provide or pay for any transition service that the 
agency would otherwise provide to children with disabilities who meet 
the eligibility criteria of that agency.
    (d) Children with disabilities in adult prisons--(1) Requirements 
that do not apply. The following requirements do not apply to children 
with disabilities

[[Page 76]]

who are convicted as adults under State law and incarcerated in adult 
prisons:
    (i) The requirements contained in section 612(a)(16) of the Act and 
Sec. 300.320(a)(6) (relating to participation of children with 
disabilities in general assessments).
    (ii) The requirements in Sec. 300.320(b) (relating to transition 
planning and transition services) do not apply with respect to the 
children whose eligibility under Part B of the Act will end, because of 
their age, before they will be eligible to be released from prison based 
on consideration of their sentence and eligibility for early release.
    (2) Modifications of IEP or placement. (i) Subject to paragraph 
(d)(2)(ii) of this section, the IEP Team of a child with a disability 
who is convicted as an adult under State law and incarcerated in an 
adult prison may modify the child's IEP or placement if the State has 
demonstrated a bona fide security or compelling penological interest 
that cannot otherwise be accommodated.
    (ii) The requirements of Sec. Sec. 300.320 (relating to IEPs), and 
300.112 (relating to LRE), do not apply with respect to the 
modifications described in paragraph (d)(2)(i) of this section.

(Authority: 20 U.S.C. 1412(a)(1), 1412(a)(12)(A)(i), 1414(d)(3), (4)(B), 
and (7); and 1414(e))



Sec. 300.325  Private school placements by public agencies.

    (a) Developing IEPs. (1) Before a public agency places a child with 
a disability in, or refers a child to, a private school or facility, the 
agency must initiate and conduct a meeting to develop an IEP for the 
child in accordance with Sec. Sec. 300.320 and 300.324.
    (2) The agency must ensure that a representative of the private 
school or facility attends the meeting. If the representative cannot 
attend, the agency must use other methods to ensure participation by the 
private school or facility, including individual or conference telephone 
calls.
    (b) Reviewing and revising IEPs. (1) After a child with a disability 
enters a private school or facility, any meetings to review and revise 
the child's IEP may be initiated and conducted by the private school or 
facility at the discretion of the public agency.
    (2) If the private school or facility initiates and conducts these 
meetings, the public agency must ensure that the parents and an agency 
representative--
    (i) Are involved in any decision about the child's IEP; and
    (ii) Agree to any proposed changes in the IEP before those changes 
are implemented.
    (c) Responsibility. Even if a private school or facility implements 
a child's IEP, responsibility for compliance with this part remains with 
the public agency and the SEA.

(Authority: 20 U.S.C. 1412(a)(10)(B))



Sec. 300.326  [Reserved]



Sec. 300.327  Educational placements.

    Consistent with Sec. 300.501(c), each public agency must ensure 
that the parents of each child with a disability are members of any 
group that makes decisions on the educational placement of their child.

(Authority: 20 U.S.C. 1414(e))



Sec. 300.328  Alternative means of meeting participation.

    When conducting IEP Team meetings and placement meetings pursuant to 
this subpart, and subpart E of this part, and carrying out 
administrative matters under section 615 of the Act (such as scheduling, 
exchange of witness lists, and status conferences), the parent of a 
child with a disability and a public agency may agree to use alternative 
means of meeting participation, such as video conferences and conference 
calls.

(Authority: 20 U.S.C. 1414(f))



 Subpart E_Procedural Safeguards Due Process Procedures for Parents and 
                                Children



Sec. 300.500  Responsibility of SEA and other public agencies.

    Each SEA must ensure that each public agency establishes, maintains, 
and implements procedural safeguards that meet the requirements of 
Sec. Sec. 300.500 through 300.536.

(Authority: 20 U.S.C. 1415(a))

[[Page 77]]



Sec. 300.501  Opportunity to examine records; parent participation in 
meetings.

    (a) Opportunity to examine records. The parents of a child with a 
disability must be afforded, in accordance with the procedures of 
Sec. Sec. 300.613 through 300.621, an opportunity to inspect and review 
all education records with respect to--
    (1) The identification, evaluation, and educational placement of the 
child; and
    (2) The provision of FAPE to the child.
    (b) Parent participation in meetings. (1) The parents of a child 
with a disability must be afforded an opportunity to participate in 
meetings with respect to--
    (i) The identification, evaluation, and educational placement of the 
child; and
    (ii) The provision of FAPE to the child.
    (2) Each public agency must provide notice consistent with Sec. 
300.322(a)(1) and (b)(1) to ensure that parents of children with 
disabilities have the opportunity to participate in meetings described 
in paragraph (b)(1) of this section.
    (3) A meeting does not include informal or unscheduled conversations 
involving public agency personnel and conversations on issues such as 
teaching methodology, lesson plans, or coordination of service 
provision. A meeting also does not include preparatory activities that 
public agency personnel engage in to develop a proposal or response to a 
parent proposal that will be discussed at a later meeting.
    (c) Parent involvement in placement decisions. (1) Each public 
agency must ensure that a parent of each child with a disability is a 
member of any group that makes decisions on the educational placement of 
the parent's child.
    (2) In implementing the requirements of paragraph (c)(1) of this 
section, the public agency must use procedures consistent with the 
procedures described in Sec. 300.322(a) through (b)(1).
    (3) If neither parent can participate in a meeting in which a 
decision is to be made relating to the educational placement of their 
child, the public agency must use other methods to ensure their 
participation, including individual or conference telephone calls, or 
video conferencing.
    (4) A placement decision may be made by a group without the 
involvement of a parent, if the public agency is unable to obtain the 
parent's participation in the decision. In this case, the public agency 
must have a record of its attempt to ensure their involvement.

(Authority: 20 U.S.C. 1414(e), 1415(b)(1))



Sec. 300.502  Independent educational evaluation.

    (a) General. (1) The parents of a child with a disability have the 
right under this part to obtain an independent educational evaluation of 
the child, subject to paragraphs (b) through (e) of this section.
    (2) Each public agency must provide to parents, upon request for an 
independent educational evaluation, information about where an 
independent educational evaluation may be obtained, and the agency 
criteria applicable for independent educational evaluations as set forth 
in paragraph (e) of this section.
    (3) For the purposes of this subpart--
    (i) Independent educational evaluation means an evaluation conducted 
by a qualified examiner who is not employed by the public agency 
responsible for the education of the child in question; and
    (ii) Public expense means that the public agency either pays for the 
full cost of the evaluation or ensures that the evaluation is otherwise 
provided at no cost to the parent, consistent with Sec. 300.103.
    (b) Parent right to evaluation at public expense. (1) A parent has 
the right to an independent educational evaluation at public expense if 
the parent disagrees with an evaluation obtained by the public agency, 
subject to the conditions in paragraphs (b)(2) through (4) of this 
section.
    (2) If a parent requests an independent educational evaluation at 
public expense, the public agency must, without unnecessary delay, 
either--
    (i) File a due process complaint to request a hearing to show that 
its evaluation is appropriate; or

[[Page 78]]

    (ii) Ensure that an independent educational evaluation is provided 
at public expense, unless the agency demonstrates in a hearing pursuant 
to Sec. Sec. 300.507 through 300.513 that the evaluation obtained by 
the parent did not meet agency criteria.
    (3) If the public agency files a due process complaint notice to 
request a hearing and the final decision is that the agency's evaluation 
is appropriate, the parent still has the right to an independent 
educational evaluation, but not at public expense.
    (4) If a parent requests an independent educational evaluation, the 
public agency may ask for the parent's reason why he or she objects to 
the public evaluation. However, the public agency may not require the 
parent to provide an explanation and may not unreasonably delay either 
providing the independent educational evaluation at public expense or 
filing a due process complaint to request a due process hearing to 
defend the public evaluation.
    (5) A parent is entitled to only one independent educational 
evaluation at public expense each time the public agency conducts an 
evaluation with which the parent disagrees.
    (c) Parent-initiated evaluations. If the parent obtains an 
independent educational evaluation at public expense or shares with the 
public agency an evaluation obtained at private expense, the results of 
the evaluation--
    (1) Must be considered by the public agency, if it meets agency 
criteria, in any decision made with respect to the provision of FAPE to 
the child; and
    (2) May be presented by any party as evidence at a hearing on a due 
process complaint under subpart E of this part regarding that child.
    (d) Requests for evaluations by hearing officers. If a hearing 
officer requests an independent educational evaluation as part of a 
hearing on a due process complaint, the cost of the evaluation must be 
at public expense.
    (e) Agency criteria. (1) If an independent educational evaluation is 
at public expense, the criteria under which the evaluation is obtained, 
including the location of the evaluation and the qualifications of the 
examiner, must be the same as the criteria that the public agency uses 
when it initiates an evaluation, to the extent those criteria are 
consistent with the parent's right to an independent educational 
evaluation.
    (2) Except for the criteria described in paragraph (e)(1) of this 
section, a public agency may not impose conditions or timelines related 
to obtaining an independent educational evaluation at public expense.

(Authority: 20 U.S.C. 1415(b)(1) and (d)(2)(A))



Sec. 300.503  Prior notice by the public agency; content of notice.

    (a) Notice. Written notice that meets the requirements of paragraph 
(b) of this section must be given to the parents of a child with a 
disability a reasonable time before the public agency--
    (1) Proposes to initiate or change the identification, evaluation, 
or educational placement of the child or the provision of FAPE to the 
child; or
    (2) Refuses to initiate or change the identification, evaluation, or 
educational placement of the child or the provision of FAPE to the 
child.
    (b) Content of notice. The notice required under paragraph (a) of 
this section must include--
    (1) A description of the action proposed or refused by the agency;
    (2) An explanation of why the agency proposes or refuses to take the 
action;
    (3) A description of each evaluation procedure, assessment, record, 
or report the agency used as a basis for the proposed or refused action;
    (4) A statement that the parents of a child with a disability have 
protection under the procedural safeguards of this part and, if this 
notice is not an initial referral for evaluation, the means by which a 
copy of a description of the procedural safeguards can be obtained;
    (5) Sources for parents to contact to obtain assistance in 
understanding the provisions of this part;
    (6) A description of other options that the IEP Team considered and 
the reasons why those options were rejected; and
    (7) A description of other factors that are relevant to the agency's 
proposal or refusal.

[[Page 79]]

    (c) Notice in understandable language. (1) The notice required under 
paragraph (a) of this section must be--
    (i) Written in language understandable to the general public; and
    (ii) Provided in the native language of the parent or other mode of 
communication used by the parent, unless it is clearly not feasible to 
do so.
    (2) If the native language or other mode of communication of the 
parent is not a written language, the public agency must take steps to 
ensure--
    (i) That the notice is translated orally or by other means to the 
parent in his or her native language or other mode of communication;
    (ii) That the parent understands the content of the notice; and
    (iii) That there is written evidence that the requirements in 
paragraphs (c)(2)(i) and (ii) of this section have been met.

(Authority: 20 U.S.C. 1415(b)(3) and (4), 1415(c)(1), 1414(b)(1))



Sec. 300.504  Procedural safeguards notice.

    (a) General. A copy of the procedural safeguards available to the 
parents of a child with a disability must be given to the parents only 
one time a school year, except that a copy also must be given to the 
parents--
    (1) Upon initial referral or parent request for evaluation;
    (2) Upon receipt of the first State complaint under Sec. Sec. 
300.151 through 300.153 and upon receipt of the first due process 
complaint under Sec. 300.507 in a school year;
    (3) In accordance with the discipline procedures in Sec. 
300.530(h); and
    (4) Upon request by a parent.
    (b) Internet Web site. A public agency may place a current copy of 
the procedural safeguards notice on its Internet Web site if a Web site 
exists.
    (c) Contents. The procedural safeguards notice must include a full 
explanation of all of the procedural safeguards available under Sec. 
300.148, Sec. Sec. 300.151 through 300.153, Sec. 300.300, Sec. Sec. 
300.502 through 300.503, Sec. Sec. 300.505 through 300.518, Sec. Sec. 
300.530 through 300.536 and Sec. Sec. 300.610 through 300.625 relating 
to--
    (1) Independent educational evaluations;
    (2) Prior written notice;
    (3) Parental consent;
    (4) Access to education records;
    (5) Opportunity to present and resolve complaints through the due 
process complaint and State complaint procedures, including--
    (i) The time period in which to file a complaint;
    (ii) The opportunity for the agency to resolve the complaint; and
    (iii) The difference between the due process complaint and the State 
complaint procedures, including the jurisdiction of each procedure, what 
issues may be raised, filing and decisional timelines, and relevant 
procedures;
    (6) The availability of mediation;
    (7) The child's placement during the pendency of any due process 
complaint;
    (8) Procedures for students who are subject to placement in an 
interim alternative educational setting;
    (9) Requirements for unilateral placement by parents of children in 
private schools at public expense;
    (10) Hearings on due process complaints, including requirements for 
disclosure of evaluation results and recommendations;
    (11) State-level appeals (if applicable in the State);
    (12) Civil actions, including the time period in which to file those 
actions; and
    (13) Attorneys' fees.
    (d) Notice in understandable language. The notice required under 
paragraph (a) of this section must meet the requirements of Sec. 
300.503(c).

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1415(d))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.505  Electronic mail.

    A parent of a child with a disability may elect to receive notices 
required by Sec. Sec. 300.503, 300.504, and 300.508 by an electronic 
mail communication, if the public agency makes that option available.

(Authority: 20 U.S.C. 1415(n))



Sec. 300.506  Mediation.

    (a) General. Each public agency must ensure that procedures are 
established

[[Page 80]]

and implemented to allow parties to disputes involving any matter under 
this part, including matters arising prior to the filing of a due 
process complaint, to resolve disputes through a mediation process.
    (b) Requirements. The procedures must meet the following 
requirements:
    (1) The procedures must ensure that the mediation process--
    (i) Is voluntary on the part of the parties;
    (ii) Is not used to deny or delay a parent's right to a hearing on 
the parent's due process complaint, or to deny any other rights afforded 
under Part B of the Act; and
    (iii) Is conducted by a qualified and impartial mediator who is 
trained in effective mediation techniques.
    (2) A public agency may establish procedures to offer to parents and 
schools that choose not to use the mediation process, an opportunity to 
meet, at a time and location convenient to the parents, with a 
disinterested party--
    (i) Who is under contract with an appropriate alternative dispute 
resolution entity, or a parent training and information center or 
community parent resource center in the State established under section 
671 or 672 of the Act; and
    (ii) Who would explain the benefits of, and encourage the use of, 
the mediation process to the parents.
    (3)(i) The State must maintain a list of individuals who are 
qualified mediators and knowledgeable in laws and regulations relating 
to the provision of special education and related services.
    (ii) The SEA must select mediators on a random, rotational, or other 
impartial basis.
    (4) The State must bear the cost of the mediation process, including 
the costs of meetings described in paragraph (b)(2) of this section.
    (5) Each session in the mediation process must be scheduled in a 
timely manner and must be held in a location that is convenient to the 
parties to the dispute.
    (6) If the parties resolve a dispute through the mediation process, 
the parties must execute a legally binding agreement that sets forth 
that resolution and that--
    (i) States that all discussions that occurred during the mediation 
process will remain confidential and may not be used as evidence in any 
subsequent due process hearing or civil proceeding; and
    (ii) Is signed by both the parent and a representative of the agency 
who has the authority to bind such agency.
    (7) A written, signed mediation agreement under this paragraph is 
enforceable in any State court of competent jurisdiction or in a 
district court of the United States.
    (8) Discussions that occur during the mediation process must be 
confidential and may not be used as evidence in any subsequent due 
process hearing or civil proceeding of any Federal court or State court 
of a State receiving assistance under this part.
    (c) Impartiality of mediator. (1) An individual who serves as a 
mediator under this part--
    (i) May not be an employee of the SEA or the LEA that is involved in 
the education or care of the child; and
    (ii) Must not have a personal or professional interest that 
conflicts with the person's objectivity.
    (2) A person who otherwise qualifies as a mediator is not an 
employee of an LEA or State agency described under Sec. 300.228 solely 
because he or she is paid by the agency to serve as a mediator.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1415(e))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.507  Filing a due process complaint.

    (a) General. (1) A parent or a public agency may file a due process 
complaint on any of the matters described in Sec. 300.503(a)(1) and (2) 
(relating to the identification, evaluation or educational placement of 
a child with a disability, or the provision of FAPE to the child).
    (2) The due process complaint must allege a violation that occurred 
not more than two years before the date the parent or public agency knew 
or should have known about the alleged action that forms the basis of 
the due process complaint, or, if the State has

[[Page 81]]

an explicit time limitation for filing a due process complaint under 
this part, in the time allowed by that State law, except that the 
exceptions to the timeline described in Sec. 300.511(f) apply to the 
timeline in this section.
    (b) Information for parents. The public agency must inform the 
parent of any free or low-cost legal and other relevant services 
available in the area if--
    (1) The parent requests the information; or
    (2) The parent or the agency files a due process complaint under 
this section.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1415(b)(6))



Sec. 300.508  Due process complaint.

    (a) General. (1) The public agency must have procedures that require 
either party, or the attorney representing a party, to provide to the 
other party a due process complaint (which must remain confidential).
    (2) The party filing a due process complaint must forward a copy of 
the due process complaint to the SEA.
    (b) Content of complaint. The due process complaint required in 
paragraph (a)(1) of this section must include--
    (1) The name of the child;
    (2) The address of the residence of the child;
    (3) The name of the school the child is attending;
    (4) In the case of a homeless child or youth (within the meaning of 
section 725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11434a(2)), available contact information for the child, and the name of 
the school the child is attending;
    (5) A description of the nature of the problem of the child relating 
to the proposed or refused initiation or change, including facts 
relating to the problem; and
    (6) A proposed resolution of the problem to the extent known and 
available to the party at the time.
    (c) Notice required before a hearing on a due process complaint. A 
party may not have a hearing on a due process complaint until the party, 
or the attorney representing the party, files a due process complaint 
that meets the requirements of paragraph (b) of this section.
    (d) Sufficiency of complaint. (1) The due process complaint required 
by this section must be deemed sufficient unless the party receiving the 
due process complaint notifies the hearing officer and the other party 
in writing, within 15 days of receipt of the due process complaint, that 
the receiving party believes the due process complaint does not meet the 
requirements in paragraph (b) of this section.
    (2) Within five days of receipt of notification under paragraph 
(d)(1) of this section, the hearing officer must make a determination on 
the face of the due process complaint of whether the due process 
complaint meets the requirements of paragraph (b) of this section, and 
must immediately notify the parties in writing of that determination.
    (3) A party may amend its due process complaint only if--
    (i) The other party consents in writing to the amendment and is 
given the opportunity to resolve the due process complaint through a 
meeting held pursuant to Sec. 300.510; or
    (ii) The hearing officer grants permission, except that the hearing 
officer may only grant permission to amend at any time not later than 
five days before the due process hearing begins.
    (4) If a party files an amended due process complaint, the timelines 
for the resolution meeting in Sec. 300.510(a) and the time period to 
resolve in Sec. 300.510(b) begin again with the filing of the amended 
due process complaint.
    (e) LEA response to a due process complaint. (1) If the LEA has not 
sent a prior written notice under Sec. 300.503 to the parent regarding 
the subject matter contained in the parent's due process complaint, the 
LEA must, within 10 days of receiving the due process complaint, send to 
the parent a response that includes--
    (i) An explanation of why the agency proposed or refused to take the 
action raised in the due process complaint;
    (ii) A description of other options that the IEP Team considered and 
the reasons why those options were rejected;

[[Page 82]]

    (iii) A description of each evaluation procedure, assessment, 
record, or report the agency used as the basis for the proposed or 
refused action; and
    (iv) A description of the other factors that are relevant to the 
agency's proposed or refused action.
    (2) A response by an LEA under paragraph (e)(1) of this section 
shall not be construed to preclude the LEA from asserting that the 
parent's due process complaint was insufficient, where appropriate.
    (f) Other party response to a due process complaint. Except as 
provided in paragraph (e) of this section, the party receiving a due 
process complaint must, within 10 days of receiving the due process 
complaint, send to the other party a response that specifically 
addresses the issues raised in the due process complaint.

(Authority: 20 U.S.C. 1415(b)(7), 1415(c)(2))



Sec. 300.509  Model forms.

    (a) Each SEA must develop model forms to assist parents and public 
agencies in filing a due process complaint in accordance with Sec. Sec. 
300.507(a) and 300.508(a) through (c) and to assist parents and other 
parties in filing a State complaint under Sec. Sec. 300.151 through 
300.153. However, the SEA or LEA may not require the use of the model 
forms.
    (b) Parents, public agencies, and other parties may use the 
appropriate model form described in paragraph (a) of this section, or 
another form or other document, so long as the form or document that is 
used meets, as appropriate, the content requirements in Sec. 300.508(b) 
for filing a due process complaint, or the requirements in Sec. 
300.153(b) for filing a State complaint.

(Authority: 20 U.S.C. 1415(b)(8))



Sec. 300.510  Resolution process.

    (a) Resolution meeting. (1) Within 15 days of receiving notice of 
the parent's due process complaint, and prior to the initiation of a due 
process hearing under Sec. 300.511, the LEA must convene a meeting with 
the parent and the relevant member or members of the IEP Team who have 
specific knowledge of the facts identified in the due process complaint 
that--
    (i) Includes a representative of the public agency who has decision-
making authority on behalf of that agency; and
    (ii) May not include an attorney of the LEA unless the parent is 
accompanied by an attorney.
    (2) The purpose of the meeting is for the parent of the child to 
discuss the due process complaint, and the facts that form the basis of 
the due process complaint, so that the LEA has the opportunity to 
resolve the dispute that is the basis for the due process complaint.
    (3) The meeting described in paragraph (a)(1) and (2) of this 
section need not be held if--
    (i) The parent and the LEA agree in writing to waive the meeting; or
    (ii) The parent and the LEA agree to use the mediation process 
described in Sec. 300.506.
    (4) The parent and the LEA determine the relevant members of the IEP 
Team to attend the meeting.
    (b) Resolution period. (1) If the LEA has not resolved the due 
process complaint to the satisfaction of the parent within 30 days of 
the receipt of the due process complaint, the due process hearing may 
occur.
    (2) Except as provided in paragraph (c) of this section, the 
timeline for issuing a final decision under Sec. 300.515 begins at the 
expiration of this 30-day period.
    (3) Except where the parties have jointly agreed to waive the 
resolution process or to use mediation, notwithstanding paragraphs 
(b)(1) and (2) of this section, the failure of the parent filing a due 
process complaint to participate in the resolution meeting will delay 
the timelines for the resolution process and due process hearing until 
the meeting is held.
    (4) If the LEA is unable to obtain the participation of the parent 
in the resolution meeting after reasonable efforts have been made (and 
documented using the procedures in Sec. 300.322(d)), the LEA may, at 
the conclusion of the 30-day period, request that a hearing officer 
dismiss the parent's due process complaint.
    (5) If the LEA fails to hold the resolution meeting specified in 
paragraph (a) of this section within 15 days of receiving notice of a 
parent's due process complaint or fails to participate in the

[[Page 83]]

resolution meeting, the parent may seek the intervention of a hearing 
officer to begin the due process hearing timeline.
    (c) Adjustments to 30-day resolution period. The 45-day timeline for 
the due process hearing in Sec. 300.515(a) starts the day after one of 
the following events:
    (1) Both parties agree in writing to waive the resolution meeting;
    (2) After either the mediation or resolution meeting starts but 
before the end of the 30-day period, the parties agree in writing that 
no agreement is possible;
    (3) If both parties agree in writing to continue the mediation at 
the end of the 30-day resolution period, but later, the parent or public 
agency withdraws from the mediation process.
    (d) Written settlement agreement. If a resolution to the dispute is 
reached at the meeting described in paragraphs (a)(1) and (2) of this 
section, the parties must execute a legally binding agreement that is--
    (1) Signed by both the parent and a representative of the agency who 
has the authority to bind the agency; and
    (2) Enforceable in any State court of competent jurisdiction or in a 
district court of the United States, or, by the SEA, if the State has 
other mechanisms or procedures that permit parties to seek enforcement 
of resolution agreements, pursuant to Sec. 300.537.
    (e) Agreement review period. If the parties execute an agreement 
pursuant to paragraph (d) of this section, a party may void the 
agreement within 3 business days of the agreement's execution.

(Authority: 20 U.S.C. 1415(f)(1)(B))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.511  Impartial due process hearing.

    (a) General. Whenever a due process complaint is received under 
Sec. 300.507 or Sec. 300.532, the parents or the LEA involved in the 
dispute must have an opportunity for an impartial due process hearing, 
consistent with the procedures in Sec. Sec. 300.507, 300.508, and 
300.510.
    (b) Agency responsible for conducting the due process hearing. The 
hearing described in paragraph (a) of this section must be conducted by 
the SEA or the public agency directly responsible for the education of 
the child, as determined under State statute, State regulation, or a 
written policy of the SEA.
    (c) Impartial hearing officer. (1) At a minimum, a hearing officer--
    (i) Must not be--
    (A) An employee of the SEA or the LEA that is involved in the 
education or care of the child; or
    (B) A person having a personal or professional interest that 
conflicts with the person's objectivity in the hearing;
    (ii) Must possess knowledge of, and the ability to understand, the 
provisions of the Act, Federal and State regulations pertaining to the 
Act, and legal interpretations of the Act by Federal and State courts;
    (iii) Must possess the knowledge and ability to conduct hearings in 
accordance with appropriate, standard legal practice; and
    (iv) Must possess the knowledge and ability to render and write 
decisions in accordance with appropriate, standard legal practice.
    (2) A person who otherwise qualifies to conduct a hearing under 
paragraph (c)(1) of this section is not an employee of the agency solely 
because he or she is paid by the agency to serve as a hearing officer.
    (3) Each public agency must keep a list of the persons who serve as 
hearing officers. The list must include a statement of the 
qualifications of each of those persons.
    (d) Subject matter of due process hearings. The party requesting the 
due process hearing may not raise issues at the due process hearing that 
were not raised in the due process complaint filed under Sec. 
300.508(b), unless the other party agrees otherwise.
    (e) Timeline for requesting a hearing. A parent or agency must 
request an impartial hearing on their due process complaint within two 
years of the date the parent or agency knew or should have known about 
the alleged action that forms the basis of the due process complaint, or 
if the State has an explicit time limitation for requesting such a due 
process hearing under this part, in the time allowed by that State law.
    (f) Exceptions to the timeline. The timeline described in paragraph 
(e) of

[[Page 84]]

this section does not apply to a parent if the parent was prevented from 
filing a due process complaint due to--
    (1) Specific misrepresentations by the LEA that it had resolved the 
problem forming the basis of the due process complaint; or
    (2) The LEA's withholding of information from the parent that was 
required under this part to be provided to the parent.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1415(f)(1)(A), 1415(f)(3)(A)-(D))



Sec. 300.512  Hearing rights.

    (a) General. Any party to a hearing conducted pursuant to Sec. Sec. 
300.507 through 300.513 or Sec. Sec. 300.530 through 300.534, or an 
appeal conducted pursuant to Sec. 300.514, has the right to--
    (1) Be accompanied and advised by counsel and by individuals with 
special knowledge or training with respect to the problems of children 
with disabilities, except that whether parties have the right to be 
represented by non-attorneys at due process hearings is determined under 
State law;
    (2) Present evidence and confront, cross-examine, and compel the 
attendance of witnesses;
    (3) Prohibit the introduction of any evidence at the hearing that 
has not been disclosed to that party at least five business days before 
the hearing;
    (4) Obtain a written, or, at the option of the parents, electronic, 
verbatim record of the hearing; and
    (5) Obtain written, or, at the option of the parents, electronic 
findings of fact and decisions.
    (b) Additional disclosure of information. (1) At least five business 
days prior to a hearing conducted pursuant to Sec. 300.511(a), each 
party must disclose to all other parties all evaluations completed by 
that date and recommendations based on the offering party's evaluations 
that the party intends to use at the hearing.
    (2) A hearing officer may bar any party that fails to comply with 
paragraph (b)(1) of this section from introducing the relevant 
evaluation or recommendation at the hearing without the consent of the 
other party.
    (c) Parental rights at hearings. Parents involved in hearings must 
be given the right to--
    (1) Have the child who is the subject of the hearing present;
    (2) Open the hearing to the public; and
    (3) Have the record of the hearing and the findings of fact and 
decisions described in paragraphs (a)(4) and (a)(5) of this section 
provided at no cost to parents.

(Authority: 20 U.S.C. 1415(f)(2), 1415(h))

[71 FR 46753, Aug. 14, 2006, as amended at 73 FR 73027, Dec. 1, 2008]



Sec. 300.513  Hearing decisions.

    (a) Decision of hearing officer on the provision of FAPE. (1) 
Subject to paragraph (a)(2) of this section, a hearing officer's 
determination of whether a child received FAPE must be based on 
substantive grounds.
    (2) In matters alleging a procedural violation, a hearing officer 
may find that a child did not receive a FAPE only if the procedural 
inadequacies--
    (i) Impeded the child's right to a FAPE;
    (ii) Significantly impeded the parent's opportunity to participate 
in the decision-making process regarding the provision of a FAPE to the 
parent's child; or
    (iii) Caused a deprivation of educational benefit.
    (3) Nothing in paragraph (a) of this section shall be construed to 
preclude a hearing officer from ordering an LEA to comply with 
procedural requirements under Sec. Sec. 300.500 through 300.536.
    (b) Construction clause. Nothing in Sec. Sec. 300.507 through 
300.513 shall be construed to affect the right of a parent to file an 
appeal of the due process hearing decision with the SEA under Sec. 
300.514(b), if a State level appeal is available.
    (c) Separate request for a due process hearing. Nothing in 
Sec. Sec. 300.500 through 300.536 shall be construed to preclude a 
parent from filing a separate due process complaint on an issue separate 
from a due process complaint already filed.
    (d) Findings and decision to advisory panel and general public. The 
public agency, after deleting any personally identifiable information, 
must--

[[Page 85]]

    (1) Transmit the findings and decisions referred to in Sec. 
300.512(a)(5) to the State advisory panel established under Sec. 
300.167; and
    (2) Make those findings and decisions available to the public.

(Authority: 20 U.S.C. 1415(f)(3)(E) and (F), 1415(h)(4), 1415(o))



Sec. 300.514  Finality of decision; appeal; impartial review.

    (a) Finality of hearing decision. A decision made in a hearing 
conducted pursuant to Sec. Sec. 300.507 through 300.513 or Sec. Sec. 
300.530 through 300.534 is final, except that any party involved in the 
hearing may appeal the decision under the provisions of paragraph (b) of 
this section and Sec. 300.516.
    (b) Appeal of decisions; impartial review. (1) If the hearing 
required by Sec. 300.511 is conducted by a public agency other than the 
SEA, any party aggrieved by the findings and decision in the hearing may 
appeal to the SEA.
    (2) If there is an appeal, the SEA must conduct an impartial review 
of the findings and decision appealed. The official conducting the 
review must--
    (i) Examine the entire hearing record;
    (ii) Ensure that the procedures at the hearing were consistent with 
the requirements of due process;
    (iii) Seek additional evidence if necessary. If a hearing is held to 
receive additional evidence, the rights in Sec. 300.512 apply;
    (iv) Afford the parties an opportunity for oral or written argument, 
or both, at the discretion of the reviewing official;
    (v) Make an independent decision on completion of the review; and
    (vi) Give a copy of the written, or, at the option of the parents, 
electronic findings of fact and decisions to the parties.
    (c) Findings and decision to advisory panel and general public. The 
SEA, after deleting any personally identifiable information, must--
    (1) Transmit the findings and decisions referred to in paragraph 
(b)(2)(vi) of this section to the State advisory panel established under 
Sec. 300.167; and
    (2) Make those findings and decisions available to the public.
    (d) Finality of review decision. The decision made by the reviewing 
official is final unless a party brings a civil action under Sec. 
300.516.

(Authority: 20 U.S.C. 1415(g) and (h)(4), 1415(i)(1)(A), 1415(i)(2))



Sec. 300.515  Timelines and convenience of hearings and reviews.

    (a) The public agency must ensure that not later than 45 days after 
the expiration of the 30 day period under Sec. 300.510(b), or the 
adjusted time periods described in Sec. 300.510(c)--
    (1) A final decision is reached in the hearing; and
    (2) A copy of the decision is mailed to each of the parties.
    (b) The SEA must ensure that not later than 30 days after the 
receipt of a request for a review--
    (1) A final decision is reached in the review; and
    (2) A copy of the decision is mailed to each of the parties.
    (c) A hearing or reviewing officer may grant specific extensions of 
time beyond the periods set out in paragraphs (a) and (b) of this 
section at the request of either party.
    (d) Each hearing and each review involving oral arguments must be 
conducted at a time and place that is reasonably convenient to the 
parents and child involved.

(Authority: 20 U.S.C. 1415(f)(1)(B)(ii), 1415(g), 1415(i)(1))



Sec. 300.516  Civil action.

    (a) General. Any party aggrieved by the findings and decision made 
under Sec. Sec. 300.507 through 300.513 or Sec. Sec. 300.530 through 
300.534 who does not have the right to an appeal under Sec. 300.514(b), 
and any party aggrieved by the findings and decision under Sec. 
300.514(b), has the right to bring a civil action with respect to the 
due process complaint notice requesting a due process hearing under 
Sec. 300.507 or Sec. Sec. 300.530 through 300.532. The action may be 
brought in any State court of competent jurisdiction or in a district 
court of the United States without regard to the amount in controversy.
    (b) Time limitation. The party bringing the action shall have 90 
days from the date of the decision of the hearing officer or, if 
applicable, the decision of the

[[Page 86]]

State review official, to file a civil action, or, if the State has an 
explicit time limitation for bringing civil actions under Part B of the 
Act, in the time allowed by that State law.
    (c) Additional requirements. In any action brought under paragraph 
(a) of this section, the court--
    (1) Receives the records of the administrative proceedings;
    (2) Hears additional evidence at the request of a party; and
    (3) Basing its decision on the preponderance of the evidence, grants 
the relief that the court determines to be appropriate.
    (d) Jurisdiction of district courts. The district courts of the 
United States have jurisdiction of actions brought under section 615 of 
the Act without regard to the amount in controversy.
    (e) Rule of construction. Nothing in this part restricts or limits 
the rights, procedures, and remedies available under the Constitution, 
the Americans with Disabilities Act of 1990, title V of the 
Rehabilitation Act of 1973, or other Federal laws protecting the rights 
of children with disabilities, except that before the filing of a civil 
action under these laws seeking relief that is also available under 
section 615 of the Act, the procedures under Sec. Sec. 300.507 and 
300.514 must be exhausted to the same extent as would be required had 
the action been brought under section 615 of the Act.

(Authority: 20 U.S.C. 1415(i)(2) and (3)(A), 1415(l))



Sec. 300.517  Attorneys' fees.

    (a) In general. (1) In any action or proceeding brought under 
section 615 of the Act, the court, in its discretion, may award 
reasonable attorneys' fees as part of the costs to--
    (i) The prevailing party who is the parent of a child with a 
disability;
    (ii) To a prevailing party who is an SEA or LEA against the attorney 
of a parent who files a complaint or subsequent cause of action that is 
frivolous, unreasonable, or without foundation, or against the attorney 
of a parent who continued to litigate after the litigation clearly 
became frivolous, unreasonable, or without foundation; or
    (iii) To a prevailing SEA or LEA against the attorney of a parent, 
or against the parent, if the parent's request for a due process hearing 
or subsequent cause of action was presented for any improper purpose, 
such as to harass, to cause unnecessary delay, or to needlessly increase 
the cost of litigation.
    (2) Nothing in this subsection shall be construed to affect section 
327 of the District of Columbia Appropriations Act, 2005.
    (b) Prohibition on use of funds. (1) Funds under Part B of the Act 
may not be used to pay attorneys' fees or costs of a party related to 
any action or proceeding under section 615 of the Act and subpart E of 
this part.
    (2) Paragraph (b)(1) of this section does not preclude a public 
agency from using funds under Part B of the Act for conducting an action 
or proceeding under section 615 of the Act.
    (c) Award of fees. A court awards reasonable attorneys' fees under 
section 615(i)(3) of the Act consistent with the following:
    (1) Fees awarded under section 615(i)(3) of the Act must be based on 
rates prevailing in the community in which the action or proceeding 
arose for the kind and quality of services furnished. No bonus or 
multiplier may be used in calculating the fees awarded under this 
paragraph.
    (2)(i) Attorneys' fees may not be awarded and related costs may not 
be reimbursed in any action or proceeding under section 615 of the Act 
for services performed subsequent to the time of a written offer of 
settlement to a parent if--
    (A) The offer is made within the time prescribed by Rule 68 of the 
Federal Rules of Civil Procedure or, in the case of an administrative 
proceeding, at any time more than 10 days before the proceeding begins;
    (B) The offer is not accepted within 10 days; and
    (C) The court or administrative hearing officer finds that the 
relief finally obtained by the parents is not more favorable to the 
parents than the offer of settlement.
    (ii) Attorneys' fees may not be awarded relating to any meeting of 
the IEP Team unless the meeting is convened as a result of an 
administrative proceeding or judicial action, or at the

[[Page 87]]

discretion of the State, for a mediation described in Sec. 300.506.
    (iii) A meeting conducted pursuant to Sec. 300.510 shall not be 
considered--
    (A) A meeting convened as a result of an administrative hearing or 
judicial action; or
    (B) An administrative hearing or judicial action for purposes of 
this section.
    (3) Notwithstanding paragraph (c)(2) of this section, an award of 
attorneys' fees and related costs may be made to a parent who is the 
prevailing party and who was substantially justified in rejecting the 
settlement offer.
    (4) Except as provided in paragraph (c)(5) of this section, the 
court reduces, accordingly, the amount of the attorneys' fees awarded 
under section 615 of the Act, if the court finds that--
    (i) The parent, or the parent's attorney, during the course of the 
action or proceeding, unreasonably protracted the final resolution of 
the controversy;
    (ii) The amount of the attorneys' fees otherwise authorized to be 
awarded unreasonably exceeds the hourly rate prevailing in the community 
for similar services by attorneys of reasonably comparable skill, 
reputation, and experience;
    (iii) The time spent and legal services furnished were excessive 
considering the nature of the action or proceeding; or
    (iv) The attorney representing the parent did not provide to the LEA 
the appropriate information in the due process request notice in 
accordance with Sec. 300.508.
    (5) The provisions of paragraph (c)(4) of this section do not apply 
in any action or proceeding if the court finds that the State or local 
agency unreasonably protracted the final resolution of the action or 
proceeding or there was a violation of section 615 of the Act.

(Authority: 20 U.S.C. 1415(i)(3)(B)-(G))



Sec. 300.518  Child's status during proceedings.

    (a) Except as provided in Sec. 300.533, during the pendency of any 
administrative or judicial proceeding regarding a due process complaint 
notice requesting a due process hearing under Sec. 300.507, unless the 
State or local agency and the parents of the child agree otherwise, the 
child involved in the complaint must remain in his or her current 
educational placement.
    (b) If the complaint involves an application for initial admission 
to public school, the child, with the consent of the parents, must be 
placed in the public school until the completion of all the proceedings.
    (c) If the complaint involves an application for initial services 
under this part from a child who is transitioning from Part C of the Act 
to Part B and is no longer eligible for Part C services because the 
child has turned three, the public agency is not required to provide the 
Part C services that the child had been receiving. If the child is found 
eligible for special education and related services under Part B and the 
parent consents to the initial provision of special education and 
related services under Sec. 300.300(b), then the public agency must 
provide those special education and related services that are not in 
dispute between the parent and the public agency.
    (d) If the hearing officer in a due process hearing conducted by the 
SEA or a State review official in an administrative appeal agrees with 
the child's parents that a change of placement is appropriate, that 
placement must be treated as an agreement between the State and the 
parents for purposes of paragraph (a) of this section.

(Authority: 20 U.S.C. 1415(j))



Sec. 300.519  Surrogate parents.

    (a) General. Each public agency must ensure that the rights of a 
child are protected when--
    (1) No parent (as defined in Sec. 300.30) can be identified;
    (2) The public agency, after reasonable efforts, cannot locate a 
parent;
    (3) The child is a ward of the State under the laws of that State; 
or
    (4) The child is an unaccompanied homeless youth as defined in 
section 725(6) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11434a(6)).
    (b) Duties of public agency. The duties of a public agency under 
paragraph (a) of this section include the assignment of an individual to 
act as a surrogate for the parents. This must include a method--

[[Page 88]]

    (1) For determining whether a child needs a surrogate parent; and
    (2) For assigning a surrogate parent to the child.
    (c) Wards of the State. In the case of a child who is a ward of the 
State, the surrogate parent alternatively may be appointed by the judge 
overseeing the child's case, provided that the surrogate meets the 
requirements in paragraphs (d)(2)(i) and (e) of this section.
    (d) Criteria for selection of surrogate parents. (1) The public 
agency may select a surrogate parent in any way permitted under State 
law.
    (2) Public agencies must ensure that a person selected as a 
surrogate parent--
    (i) Is not an employee of the SEA, the LEA, or any other agency that 
is involved in the education or care of the child;
    (ii) Has no personal or professional interest that conflicts with 
the interest of the child the surrogate parent represents; and
    (iii) Has knowledge and skills that ensure adequate representation 
of the child.
    (e) Non-employee requirement; compensation. A person otherwise 
qualified to be a surrogate parent under paragraph (d) of this section 
is not an employee of the agency solely because he or she is paid by the 
agency to serve as a surrogate parent.
    (f) Unaccompanied homeless youth. In the case of a child who is an 
unaccompanied homeless youth, appropriate staff of emergency shelters, 
transitional shelters, independent living programs, and street outreach 
programs may be appointed as temporary surrogate parents without regard 
to paragraph (d)(2)(i) of this section, until a surrogate parent can be 
appointed that meets all of the requirements of paragraph (d) of this 
section.
    (g) Surrogate parent responsibilities. The surrogate parent may 
represent the child in all matters relating to--
    (1) The identification, evaluation, and educational placement of the 
child; and
    (2) The provision of FAPE to the child.
    (h) SEA responsibility. The SEA must make reasonable efforts to 
ensure the assignment of a surrogate parent not more than 30 days after 
a public agency determines that the child needs a surrogate parent.

(Authority: 20 U.S.C. 1415(b)(2))



Sec. 300.520  Transfer of parental rights at age of majority.

    (a) General. A State may provide that, when a child with a 
disability reaches the age of majority under State law that applies to 
all children (except for a child with a disability who has been 
determined to be incompetent under State law)--
    (1)(i) The public agency must provide any notice required by this 
part to both the child and the parents; and
    (ii) All rights accorded to parents under Part B of the Act transfer 
to the child;
    (2) All rights accorded to parents under Part B of the Act transfer 
to children who are incarcerated in an adult or juvenile, State or local 
correctional institution; and
    (3) Whenever a State provides for the transfer of rights under this 
part pursuant to paragraph (a)(1) or (a)(2) of this section, the agency 
must notify the child and the parents of the transfer of rights.
    (b) Special rule. A State must establish procedures for appointing 
the parent of a child with a disability, or, if the parent is not 
available, another appropriate individual, to represent the educational 
interests of the child throughout the period of the child's eligibility 
under Part B of the Act if, under State law, a child who has reached the 
age of majority, but has not been determined to be incompetent, can be 
determined not to have the ability to provide informed consent with 
respect to the child's educational program.

(Authority: 20 U.S.C. 1415(m))



Sec. Sec. 300.521-300.529  [Reserved]

                          Discipline Procedures



Sec. 300.530  Authority of school personnel.

    (a) Case-by-case determination. School personnel may consider any 
unique circumstances on a case-by-case basis when determining whether a 
change in placement, consistent with the other

[[Page 89]]

requirements of this section, is appropriate for a child with a 
disability who violates a code of student conduct.
    (b) General. (1) School personnel under this section may remove a 
child with a disability who violates a code of student conduct from his 
or her current placement to an appropriate interim alternative 
educational setting, another setting, or suspension, for not more than 
10 consecutive school days (to the extent those alternatives are applied 
to children without disabilities), and for additional removals of not 
more than 10 consecutive school days in that same school year for 
separate incidents of misconduct (as long as those removals do not 
constitute a change of placement under Sec. 300.536).
    (2) After a child with a disability has been removed from his or her 
current placement for 10 school days in the same school year, during any 
subsequent days of removal the public agency must provide services to 
the extent required under paragraph (d) of this section.
    (c) Additional authority. For disciplinary changes in placement that 
would exceed 10 consecutive school days, if the behavior that gave rise 
to the violation of the school code is determined not to be a 
manifestation of the child's disability pursuant to paragraph (e) of 
this section, school personnel may apply the relevant disciplinary 
procedures to children with disabilities in the same manner and for the 
same duration as the procedures would be applied to children without 
disabilities, except as provided in paragraph (d) of this section.
    (d) Services. (1) A child with a disability who is removed from the 
child's current placement pursuant to paragraphs (c), or (g) of this 
section must--
    (i) Continue to receive educational services, as provided in Sec. 
300.101(a), so as to enable the child to continue to participate in the 
general education curriculum, although in another setting, and to 
progress toward meeting the goals set out in the child's IEP; and
    (ii) Receive, as appropriate, a functional behavioral assessment, 
and behavioral intervention services and modifications, that are 
designed to address the behavior violation so that it does not recur.
    (2) The services required by paragraph (d)(1), (d)(3), (d)(4), and 
(d)(5) of this section may be provided in an interim alternative 
educational setting.
    (3) A public agency is only required to provide services during 
periods of removal to a child with a disability who has been removed 
from his or her current placement for 10 school days or less in that 
school year, if it provides services to a child without disabilities who 
is similarly removed.
    (4) After a child with a disability has been removed from his or her 
current placement for 10 school days in the same school year, if the 
current removal is for not more than 10 consecutive school days and is 
not a change of placement under Sec. 300.536, school personnel, in 
consultation with at least one of the child's teachers, determine the 
extent to which services are needed, as provided in Sec. 300.101(a), so 
as to enable the child to continue to participate in the general 
education curriculum, although in another setting, and to progress 
toward meeting the goals set out in the child's IEP.
    (5) If the removal is a change of placement under Sec. 300.536, the 
child's IEP Team determines appropriate services under paragraph (d)(1) 
of this section.
    (e) Manifestation determination. (1) Within 10 school days of any 
decision to change the placement of a child with a disability because of 
a violation of a code of student conduct, the LEA, the parent, and 
relevant members of the child's IEP Team (as determined by the parent 
and the LEA) must review all relevant information in the student's file, 
including the child's IEP, any teacher observations, and any relevant 
information provided by the parents to determine--
    (i) If the conduct in question was caused by, or had a direct and 
substantial relationship to, the child's disability; or
    (ii) If the conduct in question was the direct result of the LEA's 
failure to implement the IEP.
    (2) The conduct must be determined to be a manifestation of the 
child's disability if the LEA, the parent, and relevant members of the 
child's IEP Team determine that a condition in either

[[Page 90]]

paragraph (e)(1)(i) or (1)(ii) of this section was met.
    (3) If the LEA, the parent, and relevant members of the child's IEP 
Team determine the condition described in paragraph (e)(1)(ii) of this 
section was met, the LEA must take immediate steps to remedy those 
deficiencies.
    (f) Determination that behavior was a manifestation. If the LEA, the 
parent, and relevant members of the IEP Team make the determination that 
the conduct was a manifestation of the child's disability, the IEP Team 
must--
    (1) Either--
    (i) Conduct a functional behavioral assessment, unless the LEA had 
conducted a functional behavioral assessment before the behavior that 
resulted in the change of placement occurred, and implement a behavioral 
intervention plan for the child; or
    (ii) If a behavioral intervention plan already has been developed, 
review the behavioral intervention plan, and modify it, as necessary, to 
address the behavior; and
    (2) Except as provided in paragraph (g) of this section, return the 
child to the placement from which the child was removed, unless the 
parent and the LEA agree to a change of placement as part of the 
modification of the behavioral intervention plan.
    (g) Special circumstances. School personnel may remove a student to 
an interim alternative educational setting for not more than 45 school 
days without regard to whether the behavior is determined to be a 
manifestation of the child's disability, if the child--
    (1) Carries a weapon to or possesses a weapon at school, on school 
premises, or to or at a school function under the jurisdiction of an SEA 
or an LEA;
    (2) Knowingly possesses or uses illegal drugs, or sells or solicits 
the sale of a controlled substance, while at school, on school premises, 
or at a school function under the jurisdiction of an SEA or an LEA; or
    (3) Has inflicted serious bodily injury upon another person while at 
school, on school premises, or at a school function under the 
jurisdiction of an SEA or an LEA.
    (h) Notification. On the date on which the decision is made to make 
a removal that constitutes a change of placement of a child with a 
disability because of a violation of a code of student conduct, the LEA 
must notify the parents of that decision, and provide the parents the 
procedural safeguards notice described in Sec. 300.504.
    (i) Definitions. For purposes of this section, the following 
definitions apply:
    (1) Controlled substance means a drug or other substance identified 
under schedules I, II, III, IV, or V in section 202(c) of the Controlled 
Substances Act (21 U.S.C. 812(c)).
    (2) Illegal drug means a controlled substance; but does not include 
a controlled substance that is legally possessed or used under the 
supervision of a licensed health-care professional or that is legally 
possessed or used under any other authority under that Act or under any 
other provision of Federal law.
    (3) Serious bodily injury has the meaning given the term ``serious 
bodily injury'' under paragraph (3) of subsection (h) of section 1365 of 
title 18, United States Code.
    (4) Weapon has the meaning given the term ``dangerous weapon'' under 
paragraph (2) of the first subsection (g) of section 930 of title 18, 
United States Code.

(Authority: 20 U.S.C. 1415(k)(1) and (7))



Sec. 300.531  Determination of setting.

    The child's IEP Team determines the interim alternative educational 
setting for services under Sec. 300.530(c), (d)(5), and (g).

(Authority: 20 U.S.C. 1415(k)(2))



Sec. 300.532  Appeal.

    (a) General. The parent of a child with a disability who disagrees 
with any decision regarding placement under Sec. Sec. 300.530 and 
300.531, or the manifestation determination under Sec. 300.530(e), or 
an LEA that believes that maintaining the current placement of the child 
is substantially likely to result in injury to the child or others, may 
appeal the decision by requesting a hearing. The hearing is requested by 
filing a complaint pursuant to Sec. Sec. 300.507 and 300.508(a) and 
(b).
    (b) Authority of hearing officer. (1) A hearing officer under Sec. 
300.511 hears,

[[Page 91]]

and makes a determination regarding an appeal under paragraph (a) of 
this section.
    (2) In making the determination under paragraph (b)(1) of this 
section, the hearing officer may--
    (i) Return the child with a disability to the placement from which 
the child was removed if the hearing officer determines that the removal 
was a violation of Sec. 300.530 or that the child's behavior was a 
manifestation of the child's disability; or
    (ii) Order a change of placement of the child with a disability to 
an appropriate interim alternative educational setting for not more than 
45 school days if the hearing officer determines that maintaining the 
current placement of the child is substantially likely to result in 
injury to the child or to others.
    (3) The procedures under paragraphs (a) and (b)(1) and (2) of this 
section may be repeated, if the LEA believes that returning the child to 
the original placement is substantially likely to result in injury to 
the child or to others.
    (c) Expedited due process hearing. (1) Whenever a hearing is 
requested under paragraph (a) of this section, the parents or the LEA 
involved in the dispute must have an opportunity for an impartial due 
process hearing consistent with the requirements of Sec. Sec. 300.507 
and 300.508(a) through (c) and Sec. Sec. 300.510 through 300.514, 
except as provided in paragraph (c)(2) through (4) of this section.
    (2) The SEA or LEA is responsible for arranging the expedited due 
process hearing, which must occur within 20 school days of the date the 
complaint requesting the hearing is filed. The hearing officer must make 
a determination within 10 school days after the hearing.
    (3) Unless the parents and LEA agree in writing to waive the 
resolution meeting described in paragraph (c)(3)(i) of this section, or 
agree to use the mediation process described in Sec. 300.506--
    (i) A resolution meeting must occur within seven days of receiving 
notice of the due process complaint; and
    (ii) The due process hearing may proceed unless the matter has been 
resolved to the satisfaction of both parties within 15 days of the 
receipt of the due process complaint.
    (4) A State may establish different State-imposed procedural rules 
for expedited due process hearings conducted under this section than it 
has established for other due process hearings, but, except for the 
timelines as modified in paragraph (c)(3) of this section, the State 
must ensure that the requirements in Sec. Sec. 300.510 through 300.514 
are met.
    (5) The decisions on expedited due process hearings are appealable 
consistent with Sec. 300.514.

(Authority: 20 U.S.C. 1415(k)(3) and (4)(B), 1415(f)(1)(A))



Sec. 300.533  Placement during appeals.

    When an appeal under Sec. 300.532 has been made by either the 
parent or the LEA, the child must remain in the interim alternative 
educational setting pending the decision of the hearing officer or until 
the expiration of the time period specified in Sec. 300.530(c) or (g), 
whichever occurs first, unless the parent and the SEA or LEA agree 
otherwise.

(Authority: 20 U.S.C. 1415(k)(4)(A))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.534  Protections for children not determined eligible for
special education and related services.

    (a) General. A child who has not been determined to be eligible for 
special education and related services under this part and who has 
engaged in behavior that violated a code of student conduct, may assert 
any of the protections provided for in this part if the public agency 
had knowledge (as determined in accordance with paragraph (b) of this 
section) that the child was a child with a disability before the 
behavior that precipitated the disciplinary action occurred.
    (b) Basis of knowledge. A public agency must be deemed to have 
knowledge that a child is a child with a disability if before the 
behavior that precipitated the disciplinary action occurred--
    (1) The parent of the child expressed concern in writing to 
supervisory or administrative personnel of the appropriate educational 
agency, or a teacher

[[Page 92]]

of the child, that the child is in need of special education and related 
services;
    (2) The parent of the child requested an evaluation of the child 
pursuant to Sec. Sec. 300.300 through 300.311; or
    (3) The teacher of the child, or other personnel of the LEA, 
expressed specific concerns about a pattern of behavior demonstrated by 
the child directly to the director of special education of the agency or 
to other supervisory personnel of the agency.
    (c) Exception. A public agency would not be deemed to have knowledge 
under paragraph (b) of this section if--
    (1) The parent of the child--
    (i) Has not allowed an evaluation of the child pursuant to 
Sec. Sec. 300.300 through 300.311; or
    (ii) Has refused services under this part; or
    (2) The child has been evaluated in accordance with Sec. Sec. 
300.300 through 300.311 and determined to not be a child with a 
disability under this part.
    (d) Conditions that apply if no basis of knowledge. (1) If a public 
agency does not have knowledge that a child is a child with a disability 
(in accordance with paragraphs (b) and (c) of this section) prior to 
taking disciplinary measures against the child, the child may be 
subjected to the disciplinary measures applied to children without 
disabilities who engage in comparable behaviors consistent with 
paragraph (d)(2) of this section.
    (2)(i) If a request is made for an evaluation of a child during the 
time period in which the child is subjected to disciplinary measures 
under Sec. 300.530, the evaluation must be conducted in an expedited 
manner.
    (ii) Until the evaluation is completed, the child remains in the 
educational placement determined by school authorities, which can 
include suspension or expulsion without educational services.
    (iii) If the child is determined to be a child with a disability, 
taking into consideration information from the evaluation conducted by 
the agency and information provided by the parents, the agency must 
provide special education and related services in accordance with this 
part, including the requirements of Sec. Sec. 300.530 through 300.536 
and section 612(a)(1)(A) of the Act.

(Authority: 20 U.S.C. 1415(k)(5))



Sec. 300.535  Referral to and action by law enforcement and judicial
authorities.

    (a) Rule of construction. Nothing in this part prohibits an agency 
from reporting a crime committed by a child with a disability to 
appropriate authorities or prevents State law enforcement and judicial 
authorities from exercising their responsibilities with regard to the 
application of Federal and State law to crimes committed by a child with 
a disability.
    (b) Transmittal of records. (1) An agency reporting a crime 
committed by a child with a disability must ensure that copies of the 
special education and disciplinary records of the child are transmitted 
for consideration by the appropriate authorities to whom the agency 
reports the crime.
    (2) An agency reporting a crime under this section may transmit 
copies of the child's special education and disciplinary records only to 
the extent that the transmission is permitted by the Family Educational 
Rights and Privacy Act.

(Authority: 20 U.S.C. 1415(k)(6))



Sec. 300.536  Change of placement because of disciplinary removals.

    (a) For purposes of removals of a child with a disability from the 
child's current educational placement under Sec. Sec. 300.530 through 
300.535, a change of placement occurs if--
    (1) The removal is for more than 10 consecutive school days; or
    (2) The child has been subjected to a series of removals that 
constitute a pattern--
    (i) Because the series of removals total more than 10 school days in 
a school year;
    (ii) Because the child's behavior is substantially similar to the 
child's behavior in previous incidents that resulted in the series of 
removals; and
    (iii) Because of such additional factors as the length of each 
removal, the total amount of time the child has been removed, and the 
proximity of the removals to one another.

[[Page 93]]

    (b)(1) The public agency determines on a case-by-case basis whether 
a pattern of removals constitutes a change of placement.
    (2) This determination is subject to review through due process and 
judicial proceedings.

(Authority: 20 U.S.C. 1415(k))



Sec. 300.537  State enforcement mechanisms.

    Notwithstanding Sec. Sec. 300.506(b)(7) and 300.510(d)(2), which 
provide for judicial enforcement of a written agreement reached as a 
result of mediation or a resolution meeting, there is nothing in this 
part that would prevent the SEA from using other mechanisms to seek 
enforcement of that agreement, provided that use of those mechanisms is 
not mandatory and does not delay or deny a party the right to seek 
enforcement of the written agreement in a State court of competent 
jurisdiction or in a district court of the United States.

(Authority: 20 U.S.C. 1415(e)(2)(F), 1415(f)(1)(B))



Sec. Sec. 300.538-300.599  [Reserved]



    Subpart F_Monitoring, Enforcement, Confidentiality, and Program 
                               Information

            Monitoring, Technical Assistance, and Enforcement



Sec. 300.600  State monitoring and enforcement.

    (a) The State must--
    (1) Monitor the implementation of this part;
    (2) Make determinations annually about the performance of each LEA 
using the categories in Sec. 300.603(b)(1);
    (3) Enforce this part, consistent with Sec. 300.604, using 
appropriate enforcement mechanisms, which must include, if applicable, 
the enforcement mechanisms identified in Sec. 300.604(a)(1) (technical 
assistance), (a)(3) (conditions on funding of an LEA), (b)(2)(i) (a 
corrective action plan or improvement plan), (b)(2)(v) (withholding 
funds, in whole or in part, by the SEA), and (c)(2) (withholding funds, 
in whole or in part, by the SEA); and
    (4) Report annually on the performance of the State and of each LEA 
under this part, as provided in Sec. 300.602(b)(1)(i)(A) and (b)(2).
    (b) The primary focus of the State's monitoring activities must be 
on--
    (1) Improving educational results and functional outcomes for all 
children with disabilities; and
    (2) Ensuring that public agencies meet the program requirements 
under Part B of the Act, with a particular emphasis on those 
requirements that are most closely related to improving educational 
results for children with disabilities.
    (c) As a part of its responsibilities under paragraph (a) of this 
section, the State must use quantifiable indicators and such qualitative 
indicators as are needed to adequately measure performance in the 
priority areas identified in paragraph (d) of this section, and the 
indicators established by the Secretary for the State performance plans.
    (d) The State must monitor the LEAs located in the State, using 
quantifiable indicators in each of the following priority areas, and 
using such qualitative indicators as are needed to adequately measure 
performance in those areas:
    (1) Provision of FAPE in the least restrictive environment.
    (2) State exercise of general supervision, including child find, 
effective monitoring, the use of resolution meetings, mediation, and a 
system of transition services as defined in Sec. 300.43 and in 20 
U.S.C. 1437(a)(9).
    (3) Disproportionate representation of racial and ethnic groups in 
special education and related services, to the extent the representation 
is the result of inappropriate identification.
    (e) In exercising its monitoring responsibilities under paragraph 
(d) of this section, the State must ensure that when it identifies 
noncompliance with the requirements of this part by LEAs, the 
noncompliance is corrected as soon as possible, and in no case later 
than one year after the State's identification of the noncompliance.

(Approved by the Office of Management and Budget under control number 
1820-0624)

(Authority: 20 U.S.C. 1416(a))

[71 FR 46753, Aug. 14, 2006, as amended at 73 FR 73027, Dec. 1, 2008]

[[Page 94]]



Sec. 300.601  State performance plans and data collection.

    (a) General. Not later than December 3, 2005, each State must have 
in place a performance plan that evaluates the State's efforts to 
implement the requirements and purposes of Part B of the Act, and 
describes how the State will improve such implementation.
    (1) Each State must submit the State's performance plan to the 
Secretary for approval in accordance with the approval process described 
in section 616(c) of the Act.
    (2) Each State must review its State performance plan at least once 
every six years, and submit any amendments to the Secretary.
    (3) As part of the State performance plan, each State must establish 
measurable and rigorous targets for the indicators established by the 
Secretary under the priority areas described in Sec. 300.600(d).
    (b) Data collection. (1) Each State must collect valid and reliable 
information as needed to report annually to the Secretary on the 
indicators established by the Secretary for the State performance plans.
    (2) If the Secretary permits States to collect data on specific 
indicators through State monitoring or sampling, and the State collects 
the data through State monitoring or sampling, the State must collect 
data on those indicators for each LEA at least once during the period of 
the State performance plan.
    (3) Nothing in Part B of the Act shall be construed to authorize the 
development of a nationwide database of personally identifiable 
information on individuals involved in studies or other collections of 
data under Part B of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0624)

(Authority: 20 U.S.C. 1416(b))



Sec. 300.602  State use of targets and reporting.

    (a) General. Each State must use the targets established in the 
State's performance plan under Sec. 300.601 and the priority areas 
described in Sec. 300.600(d) to analyze the performance of each LEA.
    (b) Public reporting and privacy--(1) Public report.
    (i) Subject to paragraph (b)(1)(ii) of this section, the State 
must--
    (A) Report annually to the public on the performance of each LEA 
located in the State on the targets in the State's performance plan as 
soon as practicable but no later than 120 days following the State's 
submission of its annual performance report to the Secretary under 
paragraph (b)(2) of this section; and
    (B) Make each of the following items available through public means: 
the State's performance plan, under Sec. 300.601(a); annual performance 
reports, under paragraph (b)(2) of this section; and the State's annual 
reports on the performance of each LEA located in the State, under 
paragraph (b)(1)(i)(A) of this section. In doing so, the State must, at 
a minimum, post the plan and reports on the SEA's Web site, and 
distribute the plan and reports to the media and through public 
agencies.
    (ii) If the State, in meeting the requirements of paragraph 
(b)(1)(i) of this section, collects performance data through State 
monitoring or sampling, the State must include in its report under 
paragraph (b)(1)(i)(A) of this section the most recently available 
performance data on each LEA, and the date the data were obtained.
    (2) State performance report. The State must report annually to the 
Secretary on the performance of the State under the State's performance 
plan.
    (3) Privacy. The State must not report to the public or the 
Secretary any information on performance that would result in the 
disclosure of personally identifiable information about individual 
children, or where the available data are insufficient to yield 
statistically reliable information.

(Approved by the Office of Management and Budget under control number 
1820-0624)

(Authority: 20 U.S.C. 1416(b)(2)(C))

[71 FR 46753, Aug. 14, 2006, as amended at 73 FR 73027, Dec. 1, 2008]

[[Page 95]]



Sec. 300.603  Secretary's review and determination regarding State 
performance.

    (a) Review. The Secretary annually reviews the State's performance 
report submitted pursuant to Sec. 300.602(b)(2).
    (b) Determination--(1) General. Based on the information provided by 
the State in the State's annual performance report, information obtained 
through monitoring visits, and any other public information made 
available, the Secretary determines if the State--
    (i) Meets the requirements and purposes of Part B of the Act;
    (ii) Needs assistance in implementing the requirements of Part B of 
the Act;
    (iii) Needs intervention in implementing the requirements of Part B 
of the Act; or
    (iv) Needs substantial intervention in implementing the requirements 
of Part B of the Act.
    (2) Notice and opportunity for a hearing. (i) For determinations 
made under paragraphs (b)(1)(iii) and (b)(1)(iv) of this section, the 
Secretary provides reasonable notice and an opportunity for a hearing on 
those determinations.
    (ii) The hearing described in paragraph (b)(2) of this section 
consists of an opportunity to meet with the Assistant Secretary for 
Special Education and Rehabilitative Services to demonstrate why the 
Department should not make the determination described in paragraph 
(b)(1) of this section.

(Authority: 20 U.S.C. 1416(d))



Sec. 300.604  Enforcement.

    (a) Needs assistance. If the Secretary determines, for two 
consecutive years, that a State needs assistance under Sec. 
300.603(b)(1)(ii) in implementing the requirements of Part B of the Act, 
the Secretary takes one or more of the following actions:
    (1) Advises the State of available sources of technical assistance 
that may help the State address the areas in which the State needs 
assistance, which may include assistance from the Office of Special 
Education Programs, other offices of the Department of Education, other 
Federal agencies, technical assistance providers approved by the 
Secretary, and other federally funded nonprofit agencies, and requires 
the State to work with appropriate entities. Such technical assistance 
may include--
    (i) The provision of advice by experts to address the areas in which 
the State needs assistance, including explicit plans for addressing the 
area for concern within a specified period of time;
    (ii) Assistance in identifying and implementing professional 
development, instructional strategies, and methods of instruction that 
are based on scientifically based research;
    (iii) Designating and using distinguished superintendents, 
principals, special education administrators, special education 
teachers, and other teachers to provide advice, technical assistance, 
and support; and
    (iv) Devising additional approaches to providing technical 
assistance, such as collaborating with institutions of higher education, 
educational service agencies, national centers of technical assistance 
supported under Part D of the Act, and private providers of 
scientifically based technical assistance.
    (2) Directs the use of State-level funds under section 611(e) of the 
Act on the area or areas in which the State needs assistance.
    (3) Identifies the State as a high-risk grantee and imposes special 
conditions on the State's grant under Part B of the Act.
    (b) Needs intervention. If the Secretary determines, for three or 
more consecutive years, that a State needs intervention under Sec. 
300.603(b)(1)(iii) in implementing the requirements of Part B of the 
Act, the following shall apply:
    (1) The Secretary may take any of the actions described in paragraph 
(a) of this section.
    (2) The Secretary takes one or more of the following actions:
    (i) Requires the State to prepare a corrective action plan or 
improvement plan if the Secretary determines that the State should be 
able to correct the problem within one year.
    (ii) Requires the State to enter into a compliance agreement under 
section 457 of the General Education Provisions Act, as amended, 20 
U.S.C. 1221 et seq. (GEPA), if the Secretary has reason to believe that 
the State cannot correct the problem within one year.

[[Page 96]]

    (iii) For each year of the determination, withholds not less than 20 
percent and not more than 50 percent of the State's funds under section 
611(e) of the Act, until the Secretary determines the State has 
sufficiently addressed the areas in which the State needs intervention.
    (iv) Seeks to recover funds under section 452 of GEPA.
    (v) Withholds, in whole or in part, any further payments to the 
State under Part B of the Act.
    (vi) Refers the matter for appropriate enforcement action, which may 
include referral to the Department of Justice.
    (c) Needs substantial intervention. Notwithstanding paragraph (a) or 
(b) of this section, at any time that the Secretary determines that a 
State needs substantial intervention in implementing the requirements of 
Part B of the Act or that there is a substantial failure to comply with 
any condition of an SEA's or LEA's eligibility under Part B of the Act, 
the Secretary takes one or more of the following actions:
    (1) Recovers funds under section 452 of GEPA.
    (2) Withholds, in whole or in part, any further payments to the 
State under Part B of the Act.
    (3) Refers the case to the Office of the Inspector General at the 
Department of Education.
    (4) Refers the matter for appropriate enforcement action, which may 
include referral to the Department of Justice.
    (d) Report to Congress. The Secretary reports to the Committee on 
Education and the Workforce of the House of Representatives and the 
Committee on Health, Education, Labor, and Pensions of the Senate within 
30 days of taking enforcement action pursuant to paragraph (a), (b), or 
(c) of this section, on the specific action taken and the reasons why 
enforcement action was taken.

(Authority: 20 U.S.C. 1416(e)(1)-(e)(3), (e)(5))



Sec. 300.605  Withholding funds.

    (a) Opportunity for hearing. Prior to withholding any funds under 
Part B of the Act, the Secretary provides reasonable notice and an 
opportunity for a hearing to the SEA involved, pursuant to the 
procedures in Sec. Sec. 300.180 through 300.183.
    (b) Suspension. Pending the outcome of any hearing to withhold 
payments under paragraph (a) of this section, the Secretary may suspend 
payments to a recipient, suspend the authority of the recipient to 
obligate funds under Part B of the Act, or both, after the recipient has 
been given reasonable notice and an opportunity to show cause why future 
payments or authority to obligate funds under Part B of the Act should 
not be suspended.
    (c) Nature of withholding. (1) If the Secretary determines that it 
is appropriate to withhold further payments under Sec. 300.604(b)(2) or 
(c)(2), the Secretary may determine--
    (i) That the withholding will be limited to programs or projects, or 
portions of programs or projects, that affected the Secretary's 
determination under Sec. 300.603(b)(1); or
    (ii) That the SEA must not make further payments under Part B of the 
Act to specified State agencies or LEAs that caused or were involved in 
the Secretary's determination under Sec. 300.603(b)(1).
    (2) Until the Secretary is satisfied that the condition that caused 
the initial withholding has been substantially rectified--
    (i) Payments to the State under Part B of the Act must be withheld 
in whole or in part; and
    (ii) Payments by the SEA under Part B of the Act must be limited to 
State agencies and LEAs whose actions did not cause or were not involved 
in the Secretary's determination under Sec. 300.603(b)(1), as the case 
may be.

(Authority: 20 U.S.C. 1416(e)(4), (e)(6))



Sec. 300.606  Public attention.

    Whenever a State receives notice that the Secretary is proposing to 
take or is taking an enforcement action pursuant to Sec. 300.604, the 
State must, by means of a public notice, take such actions as may be 
necessary to notify the public within the State of the pendency of an 
action pursuant to Sec. 300.604, including, at a minimum, by posting 
the notice on the SEA's Web site and distributing the notice to the 
media and through public agencies.

(Authority: 20 U.S.C. 1416(e)(7))

[73 FR 73028, Dec. 1, 2008]

[[Page 97]]



Sec. 300.607  Divided State agency responsibility.

    For purposes of this subpart, if responsibility for ensuring that 
the requirements of Part B of the Act are met with respect to children 
with disabilities who are convicted as adults under State law and 
incarcerated in adult prisons is assigned to a public agency other than 
the SEA pursuant to Sec. 300.149(d), and if the Secretary finds that 
the failure to comply substantially with the provisions of Part B of the 
Act are related to a failure by the public agency, the Secretary takes 
appropriate corrective action to ensure compliance with Part B of the 
Act, except that--
    (a) Any reduction or withholding of payments to the State under 
Sec. 300.604 must be proportionate to the total funds allotted under 
section 611 of the Act to the State as the number of eligible children 
with disabilities in adult prisons under the supervision of the other 
public agency is proportionate to the number of eligible individuals 
with disabilities in the State under the supervision of the SEA; and
    (b) Any withholding of funds under Sec. 300.604 must be limited to 
the specific agency responsible for the failure to comply with Part B of 
the Act.

(Authority: 20 U.S.C. 1416(h))



Sec. 300.608  State enforcement.

    (a) If an SEA determines that an LEA is not meeting the requirements 
of Part B of the Act, including the targets in the State's performance 
plan, the SEA must prohibit the LEA from reducing the LEA's maintenance 
of effort under Sec. 300.203 for any fiscal year.
    (b) Nothing in this subpart shall be construed to restrict a State 
from utilizing any other authority available to it to monitor and 
enforce the requirements of Part B of the Act.

(Authority: 20 U.S.C. 1416(f); 20 U.S.C. 1412(a)(11))



Sec. 300.609  Rule of construction.

    Nothing in this subpart shall be construed to restrict the Secretary 
from utilizing any authority under GEPA, including the provisions in 34 
CFR parts 76, 77, 80, and 81 to monitor and enforce the requirements of 
the Act, including the imposition of special conditions under 34 CFR 
80.12.

(Authority: 20 U.S.C. 1416(g))

                     Confidentiality of Information



Sec. 300.610  Confidentiality.

    The Secretary takes appropriate action, in accordance with section 
444 of GEPA, to ensure the protection of the confidentiality of any 
personally identifiable data, information, and records collected or 
maintained by the Secretary and by SEAs and LEAs pursuant to Part B of 
the Act, and consistent with Sec. Sec. 300.611 through 300.627.

(Authority: 20 U.S.C. 1417(c))



Sec. 300.611  Definitions.

    As used in Sec. Sec. 300.611 through 300.625--
    (a) Destruction means physical destruction or removal of personal 
identifiers from information so that the information is no longer 
personally identifiable.
    (b) Education records means the type of records covered under the 
definition of ``education records'' in 34 CFR part 99 (the regulations 
implementing the Family Educational Rights and Privacy Act of 1974, 20 
U.S.C. 1232g (FERPA)).
    (c) Participating agency means any agency or institution that 
collects, maintains, or uses personally identifiable information, or 
from which information is obtained, under Part B of the Act.

(Authority: 20 U.S.C. 1221e-3, 1412(a)(8), 1417(c))



Sec. 300.612  Notice to parents.

    (a) The SEA must give notice that is adequate to fully inform 
parents about the requirements of Sec. 300.123, including--
    (1) A description of the extent that the notice is given in the 
native languages of the various population groups in the State;
    (2) A description of the children on whom personally identifiable 
information is maintained, the types of information sought, the methods 
the State intends to use in gathering the information (including the 
sources from whom information is gathered), and the uses to be made of 
the information;

[[Page 98]]

    (3) A summary of the policies and procedures that participating 
agencies must follow regarding storage, disclosure to third parties, 
retention, and destruction of personally identifiable information; and
    (4) A description of all of the rights of parents and children 
regarding this information, including the rights under FERPA and 
implementing regulations in 34 CFR part 99.
    (b) Before any major identification, location, or evaluation 
activity, the notice must be published or announced in newspapers or 
other media, or both, with circulation adequate to notify parents 
throughout the State of the activity.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.613  Access rights.

    (a) Each participating agency must permit parents to inspect and 
review any education records relating to their children that are 
collected, maintained, or used by the agency under this part. The agency 
must comply with a request without unnecessary delay and before any 
meeting regarding an IEP, or any hearing pursuant to Sec. 300.507 or 
Sec. Sec. 300.530 through 300.532, or resolution session pursuant to 
Sec. 300.510, and in no case more than 45 days after the request has 
been made.
    (b) The right to inspect and review education records under this 
section includes--
    (1) The right to a response from the participating agency to 
reasonable requests for explanations and interpretations of the records;
    (2) The right to request that the agency provide copies of the 
records containing the information if failure to provide those copies 
would effectively prevent the parent from exercising the right to 
inspect and review the records; and
    (3) The right to have a representative of the parent inspect and 
review the records.
    (c) An agency may presume that the parent has authority to inspect 
and review records relating to his or her child unless the agency has 
been advised that the parent does not have the authority under 
applicable State law governing such matters as guardianship, separation, 
and divorce.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.614  Record of access.

    Each participating agency must keep a record of parties obtaining 
access to education records collected, maintained, or used under Part B 
of the Act (except access by parents and authorized employees of the 
participating agency), including the name of the party, the date access 
was given, and the purpose for which the party is authorized to use the 
records.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.615  Records on more than one child.

    If any education record includes information on more than one child, 
the parents of those children have the right to inspect and review only 
the information relating to their child or to be informed of that 
specific information.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.616  List of types and locations of information.

    Each participating agency must provide parents on request a list of 
the types and locations of education records collected, maintained, or 
used by the agency.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.617  Fees.

    (a) Each participating agency may charge a fee for copies of records 
that are made for parents under this part if the fee does not 
effectively prevent the parents from exercising their right to inspect 
and review those records.
    (b) A participating agency may not charge a fee to search for or to 
retrieve information under this part.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.618  Amendment of records at parent's request.

    (a) A parent who believes that information in the education records 
collected, maintained, or used under this part is inaccurate or 
misleading or violates the privacy or other rights of the child may 
request the participating

[[Page 99]]

agency that maintains the information to amend the information.
    (b) The agency must decide whether to amend the information in 
accordance with the request within a reasonable period of time of 
receipt of the request.
    (c) If the agency decides to refuse to amend the information in 
accordance with the request, it must inform the parent of the refusal 
and advise the parent of the right to a hearing under Sec. 300.619.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.619  Opportunity for a hearing.

    The agency must, on request, provide an opportunity for a hearing to 
challenge information in education records to ensure that it is not 
inaccurate, misleading, or otherwise in violation of the privacy or 
other rights of the child.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.620  Result of hearing.

    (a) If, as a result of the hearing, the agency decides that the 
information is inaccurate, misleading or otherwise in violation of the 
privacy or other rights of the child, it must amend the information 
accordingly and so inform the parent in writing.
    (b) If, as a result of the hearing, the agency decides that the 
information is not inaccurate, misleading, or otherwise in violation of 
the privacy or other rights of the child, it must inform the parent of 
the parent's right to place in the records the agency maintains on the 
child a statement commenting on the information or setting forth any 
reasons for disagreeing with the decision of the agency.
    (c) Any explanation placed in the records of the child under this 
section must--
    (1) Be maintained by the agency as part of the records of the child 
as long as the record or contested portion is maintained by the agency; 
and
    (2) If the records of the child or the contested portion is 
disclosed by the agency to any party, the explanation must also be 
disclosed to the party.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.621  Hearing procedures.

    A hearing held under Sec. 300.619 must be conducted according to 
the procedures in 34 CFR 99.22.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.622  Consent.

    (a) Parental consent must be obtained before personally identifiable 
information is disclosed to parties, other than officials of 
participating agencies in accordance with paragraph (b)(1) of this 
section, unless the information is contained in education records, and 
the disclosure is authorized without parental consent under 34 CFR part 
99.
    (b)(1) Except as provided in paragraphs (b)(2) and (b)(3) of this 
section, parental consent is not required before personally identifiable 
information is released to officials of participating agencies for 
purposes of meeting a requirement of this part.
    (2) Parental consent, or the consent of an eligible child who has 
reached the age of majority under State law, must be obtained before 
personally identifiable information is released to officials of 
participating agencies providing or paying for transition services in 
accordance with Sec. 300.321(b)(3).
    (3) If a child is enrolled, or is going to enroll in a private 
school that is not located in the LEA of the parent's residence, 
parental consent must be obtained before any personally identifiable 
information about the child is released between officials in the LEA 
where the private school is located and officials in the LEA of the 
parent's residence.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.623  Safeguards.

    (a) Each participating agency must protect the confidentiality of 
personally identifiable information at collection, storage, disclosure, 
and destruction stages.
    (b) One official at each participating agency must assume 
responsibility for ensuring the confidentiality of any personally 
identifiable information.
    (c) All persons collecting or using personally identifiable 
information

[[Page 100]]

must receive training or instruction regarding the State's policies and 
procedures under Sec. 300.123 and 34 CFR part 99.
    (d) Each participating agency must maintain, for public inspection, 
a current listing of the names and positions of those employees within 
the agency who may have access to personally identifiable information.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.624  Destruction of information.

    (a) The public agency must inform parents when personally 
identifiable information collected, maintained, or used under this part 
is no longer needed to provide educational services to the child.
    (b) The information must be destroyed at the request of the parents. 
However, a permanent record of a student's name, address, and phone 
number, his or her grades, attendance record, classes attended, grade 
level completed, and year completed may be maintained without time 
limitation.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.625  Children's rights.

    (a) The SEA must have in effect policies and procedures regarding 
the extent to which children are afforded rights of privacy similar to 
those afforded to parents, taking into consideration the age of the 
child and type or severity of disability.
    (b) Under the regulations for FERPA in 34 CFR 99.5(a), the rights of 
parents regarding education records are transferred to the student at 
age 18.
    (c) If the rights accorded to parents under Part B of the Act are 
transferred to a student who reaches the age of majority, consistent 
with Sec. 300.520, the rights regarding educational records in 
Sec. Sec. 300.613 through 300.624 must also be transferred to the 
student. However, the public agency must provide any notice required 
under section 615 of the Act to the student and the parents.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.626  Enforcement.

    The SEA must have in effect the policies and procedures, including 
sanctions that the State uses, to ensure that its policies and 
procedures consistent with Sec. Sec. 300.611 through 300.625 are 
followed and that the requirements of the Act and the regulations in 
this part are met.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))



Sec. 300.627  Department use of personally identifiable information.

    If the Department or its authorized representatives collect any 
personally identifiable information regarding children with disabilities 
that is not subject to the Privacy Act of 1974, 5 U.S.C. 552a, the 
Secretary applies the requirements of 5 U.S.C. 552a(b)(1) and (b)(2), 
552a(b)(4) through (b)(11); 552a(c) through 552a(e)(3)(B); 
552a(e)(3)(D); 552a(e)(5) through (e)(10); 552a(h); 552a(m); and 
552a(n); and the regulations implementing those provisions in 34 CFR 
part 5b.

(Authority: 20 U.S.C. 1412(a)(8); 1417(c))

                      Reports--Program Information



Sec. 300.640  Annual report of children served--report requirement.

    (a) The SEA must annually report to the Secretary on the information 
required by section 618 of the Act at the times specified by the 
Secretary.
    (b) The SEA must submit the report on forms provided by the 
Secretary.

(Approved by the Office of Management and Budget under control numbers 
1820-0030, 1820-0043, 1820-0659, 1820-0621, 1820-0518, 1820-0521, 1820-
0517, and 1820-0677)

(Authority: 20 U.S.C. 1418(a))



Sec. 300.641  Annual report of children served--information required
in the report.

    (a) For purposes of the annual report required by section 618 of the 
Act and Sec. 300.640, the State and the Secretary of the Interior must 
count and report the number of children with disabilities receiving 
special education and related services on any date between October 1 and 
December 1 of each year.
    (b) For the purpose of this reporting provision, a child's age is 
the child's actual age on the date of the child count.
    (c) The SEA may not report a child under more than one disability 
category.
    (d) If a child with a disability has more than one disability, the 
SEA

[[Page 101]]

must report that child in accordance with the following procedure:
    (1) If a child has only two disabilities and those disabilities are 
deafness and blindness, and the child is not reported as having a 
developmental delay, that child must be reported under the category 
``deaf-blindness.''
    (2) A child who has more than one disability and is not reported as 
having deaf-blindness or as having a developmental delay must be 
reported under the category ``multiple disabilities.''

(Approved by the Office of Management and Budget under control numbers 
1820-0030, 1820-0043, 1820-0621, 1820-0521, and 1820-0517)

(Authority: 20 U.S.C. 1418(a), (b))



Sec. 300.642  Data reporting.

    (a) Protection of personally identifiable data. The data described 
in section 618(a) of the Act and in Sec. 300.641 must be publicly 
reported by each State in a manner that does not result in disclosure of 
data identifiable to individual children.
    (b) Sampling. The Secretary may permit States and the Secretary of 
the Interior to obtain data in section 618(a) of the Act through 
sampling.

(Approved by the Office of Management and Budget under control numbers 
1820-0030, 1820-0043, 1820-0518, 1820-0521, and 1820-0517)

(Authority: 20 U.S.C. 1418(b))



Sec. 300.643  Annual report of children served--certification.

    The SEA must include in its report a certification signed by an 
authorized official of the agency that the information provided under 
Sec. 300.640 is an accurate and unduplicated count of children with 
disabilities receiving special education and related services on the 
dates in question.

(Approved by the Office of Management and Budget under control numbers 
1820-0030 and 1820-0043)

(Authority: 20 U.S.C. 1418(a)(3))



Sec. 300.644  Annual report of children served--criteria for counting
children.

    The SEA may include in its report children with disabilities who are 
enrolled in a school or program that is operated or supported by a 
public agency, and that--
    (a) Provides them with both special education and related services 
that meet State standards;
    (b) Provides them only with special education, if a related service 
is not required, that meets State standards; or
    (c) In the case of children with disabilities enrolled by their 
parents in private schools, counts those children who are eligible under 
the Act and receive special education or related services or both that 
meet State standards under Sec. Sec. 300.132 through 300.144.

(Approved by the Office of Management and Budget under control numbers 
1820-0030, 1820-0043, 1820-0659, 1820-0621, 1820-0521, and 1820-0517)

(Authority: 20 U.S.C. 1418(a))



Sec. 300.645  Annual report of children served--other responsibilities
of the SEA.

    In addition to meeting the other requirements of Sec. Sec. 300.640 
through 300.644, the SEA must--
    (a) Establish procedures to be used by LEAs and other educational 
institutions in counting the number of children with disabilities 
receiving special education and related services;
    (b) Set dates by which those agencies and institutions must report 
to the SEA to ensure that the State complies with Sec. 300.640(a);
    (c) Obtain certification from each agency and institution that an 
unduplicated and accurate count has been made;
    (d) Aggregate the data from the count obtained from each agency and 
institution, and prepare the reports required under Sec. Sec. 300.640 
through 300.644; and
    (e) Ensure that documentation is maintained that enables the State 
and the Secretary to audit the accuracy of the count.

(Approved by the Office of Management and Budget under control numbers 
1820-0030, 1820-0043, 1820-0659, 1820-0621, 1820-0518, 1820-0521, and 
1820-0517)

(Authority: 20 U.S.C. 1418(a))



Sec. 300.646  Disproportionality.

    (a) General. Each State that receives assistance under Part B of the 
Act, and the Secretary of the Interior, must provide for the collection 
and examination

[[Page 102]]

of data to determine if significant disproportionality based on race and 
ethnicity is occurring in the State and the LEAs of the State with 
respect to--
    (1) The identification of children as children with disabilities, 
including the identification of children as children with disabilities 
in accordance with a particular impairment described in section 602(3) 
of the Act;
    (2) The placement in particular educational settings of these 
children; and
    (3) The incidence, duration, and type of disciplinary actions, 
including suspensions and expulsions.
    (b) Review and revision of policies, practices, and procedures. In 
the case of a determination of significant disproportionality with 
respect to the identification of children as children with disabilities, 
or the placement in particular educational settings of these children, 
in accordance with paragraph (a) of this section, the State or the 
Secretary of the Interior must--
    (1) Provide for the review and, if appropriate revision of the 
policies, procedures, and practices used in the identification or 
placement to ensure that the policies, procedures, and practices comply 
with the requirements of the Act.
    (2) Require any LEA identified under paragraph (a) of this section 
to reserve the maximum amount of funds under section 613(f) of the Act 
to provide comprehensive coordinated early intervening services to serve 
children in the LEA, particularly, but not exclusively, children in 
those groups that were significantly overidentified under paragraph (a) 
of this section; and
    (3) Require the LEA to publicly report on the revision of policies, 
practices, and procedures described under paragraph (b)(1) of this 
section.

(Authority: 20 U.S.C. 1418(d))



 Subpart G_Authorization, Allotment, Use of Funds, and Authorization of 
                             Appropriations

                  Allotments, Grants, and Use of Funds



Sec. 300.700  Grants to States.

    (a) Purpose of grants. The Secretary makes grants to States, 
outlying areas, and freely associated States (as defined in Sec. 
300.717), and provides funds to the Secretary of the Interior, to assist 
them to provide special education and related services to children with 
disabilities in accordance with Part B of the Act.
    (b) Maximum amount. The maximum amount of the grant a State may 
receive under section 611 of the Act is--
    (1) For fiscal years 2005 and 2006--
    (i) The number of children with disabilities in the State who are 
receiving special education and related services--
    (A) Aged three through five, if the State is eligible for a grant 
under section 619 of the Act; and
    (B) Aged 6 through 21; multiplied by--
    (ii) Forty (40) percent of the average per-pupil expenditure in 
public elementary schools and secondary schools in the United States (as 
defined in Sec. 300.717); and
    (2) For fiscal year 2007 and subsequent fiscal years--
    (i) The number of children with disabilities in the 2004-2005 school 
year in the State who received special education and related services--
    (A) Aged three through five if the State is eligible for a grant 
under section 619 of the Act; and
    (B) Aged 6 through 21; multiplied by
    (ii) Forty (40) percent of the average per-pupil expenditure in 
public elementary schools and secondary schools in the United States (as 
defined in Sec. 300.717);
    (iii) Adjusted by the rate of annual change in the sum of--
    (A) Eighty-five (85) percent of the State's population of children 
aged 3 through 21 who are of the same age as children with disabilities 
for whom the State ensures the availability of FAPE under Part B of the 
Act; and
    (B) Fifteen (15) percent of the State's population of children 
described in paragraph (b)(2)(iii)(A) of this section who are living in 
poverty.

(Authority: 20 U.S.C. 1411(a) and (d))



Sec. 300.701  Outlying areas, freely associated States, and the 
Secretary of the Interior.

    (a) Outlying areas and freely associated States--(1) Funds reserved. 
From the

[[Page 103]]

amount appropriated for any fiscal year under section 611(i) of the Act, 
the Secretary reserves not more than one percent, which must be used--
    (i) To provide assistance to the outlying areas in accordance with 
their respective populations of individuals aged 3 through 21; and
    (ii) To provide each freely associated State a grant in the amount 
that the freely associated State received for fiscal year 2003 under 
Part B of the Act, but only if the freely associated State--
    (A) Meets the applicable requirements of Part B of the Act that 
apply to States.
    (B) Meets the requirements in paragraph (a)(2) of this section.
    (2) Application. Any freely associated State that wishes to receive 
funds under Part B of the Act must include, in its application for 
assistance--
    (i) Information demonstrating that it will meet all conditions that 
apply to States under Part B of the Act.
    (ii) An assurance that, notwithstanding any other provision of Part 
B of the Act, it will use those funds only for the direct provision of 
special education and related services to children with disabilities and 
to enhance its capacity to make FAPE available to all children with 
disabilities;
    (iii) The identity of the source and amount of funds, in addition to 
funds under Part B of the Act, that it will make available to ensure 
that FAPE is available to all children with disabilities within its 
jurisdiction; and
    (iv) Such other information and assurances as the Secretary may 
require.
    (3) Special rule. The provisions of Public Law 95-134, permitting 
the consolidation of grants by the outlying areas, do not apply to funds 
provided to the outlying areas or to the freely associated States under 
Part B of the Act.
    (b) Secretary of the Interior. From the amount appropriated for any 
fiscal year under section 611(i) of the Act, the Secretary reserves 
1.226 percent to provide assistance to the Secretary of the Interior in 
accordance with Sec. Sec. 300.707 through 300.716.

(Authority: 20 U.S.C. 1411(b))



Sec. 300.702  Technical assistance.

    (a) In general. The Secretary may reserve not more than one-half of 
one percent of the amounts appropriated under Part B of the Act for each 
fiscal year to support technical assistance activities authorized under 
section 616(i) of the Act.
    (b) Maximum amount. The maximum amount the Secretary may reserve 
under paragraph (a) of this section for any fiscal year is $25,000,000, 
cumulatively adjusted by the rate of inflation as measured by the 
percentage increase, if any, from the preceding fiscal year in the 
Consumer Price Index For All Urban Consumers, published by the Bureau of 
Labor Statistics of the Department of Labor.

(Authority: 20 U.S.C. 1411(c))



Sec. 300.703  Allocations to States.

    (a) General. After reserving funds for technical assistance under 
Sec. 300.702, and for payments to the outlying areas, the freely 
associated States, and the Secretary of the Interior under Sec. 300.701 
(a) and (b) for a fiscal year, the Secretary allocates the remaining 
amount among the States in accordance with paragraphs (b), (c), and (d) 
of this section.
    (b) Special rule for use of fiscal year 1999 amount. If a State 
received any funds under section 611 of the Act for fiscal year 1999 on 
the basis of children aged three through five, but does not make FAPE 
available to all children with disabilities aged three through five in 
the State in any subsequent fiscal year, the Secretary computes the 
State's amount for fiscal year 1999, solely for the purpose of 
calculating the State's allocation in that subsequent year under 
paragraph (c) or (d) of this section, by subtracting the amount 
allocated to the State for fiscal year 1999 on the basis of those 
children.
    (c) Increase in funds. If the amount available for allocations to 
States under paragraph (a) of this section for a fiscal year is equal to 
or greater than the amount allocated to the States under section 611 of 
the Act for the preceding fiscal year, those allocations are calculated 
as follows:
    (1) Allocation of increase--(i) General. Except as provided in 
paragraph (c)(2)

[[Page 104]]

of this section, the Secretary allocates for the fiscal year--
    (A) To each State the amount the State received under this section 
for fiscal year 1999;
    (B) Eighty-five (85) percent of any remaining funds to States on the 
basis of the States' relative populations of children aged 3 through 21 
who are of the same age as children with disabilities for whom the State 
ensures the availability of FAPE under Part B of the Act; and
    (C) Fifteen (15) percent of those remaining funds to States on the 
basis of the States' relative populations of children described in 
paragraph (c)(1)(i)(B) of this section who are living in poverty.
    (ii) Data. For the purpose of making grants under this section, the 
Secretary uses the most recent population data, including data on 
children living in poverty, that are available and satisfactory to the 
Secretary.
    (2) Limitations. Notwithstanding paragraph (c)(1) of this section, 
allocations under this section are subject to the following:
    (i) Preceding year allocation. No State's allocation may be less 
than its allocation under section 611 of the Act for the preceding 
fiscal year.
    (ii) Minimum. No State's allocation may be less than the greatest 
of--
    (A) The sum of--
    (1) The amount the State received under section 611 of the Act for 
fiscal year 1999; and
    (2) One third of one percent of the amount by which the amount 
appropriated under section 611(i) of the Act for the fiscal year exceeds 
the amount appropriated for section 611 of the Act for fiscal year 1999;
    (B) The sum of--
    (1) The amount the State received under section 611 of the Act for 
the preceding fiscal year; and
    (2) That amount multiplied by the percentage by which the increase 
in the funds appropriated for section 611 of the Act from the preceding 
fiscal year exceeds 1.5 percent; or
    (C) The sum of--
    (1) The amount the State received under section 611 of the Act for 
the preceding fiscal year; and
    (2) That amount multiplied by 90 percent of the percentage increase 
in the amount appropriated for section 611 of the Act from the preceding 
fiscal year.
    (iii) Maximum. Notwithstanding paragraph (c)(2)(ii) of this section, 
no State's allocation under paragraph (a) of this section may exceed the 
sum of--
    (A) The amount the State received under section 611 of the Act for 
the preceding fiscal year; and
    (B) That amount multiplied by the sum of 1.5 percent and the 
percentage increase in the amount appropriated under section 611 of the 
Act from the preceding fiscal year.
    (3) Ratable reduction. If the amount available for allocations to 
States under paragraph (c) of this section is insufficient to pay those 
allocations in full, those allocations are ratably reduced, subject to 
paragraph (c)(2)(i) of this section.
    (d) Decrease in funds. If the amount available for allocations to 
States under paragraph (a) of this section for a fiscal year is less 
than the amount allocated to the States under section 611 of the Act for 
the preceding fiscal year, those allocations are calculated as follows:
    (1) Amounts greater than fiscal year 1999 allocations. If the amount 
available for allocations under paragraph (a) of this section is greater 
than the amount allocated to the States for fiscal year 1999, each State 
is allocated the sum of--
    (i) 1999 amount. The amount the State received under section 611 of 
the Act for fiscal year 1999; and
    (ii) Remaining funds. An amount that bears the same relation to any 
remaining funds as the increase the State received under section 611 of 
the Act for the preceding fiscal year over fiscal year 1999 bears to the 
total of all such increases for all States.
    (2) Amounts equal to or less than fiscal year 1999 allocations--(i) 
General. If the amount available for allocations under paragraph (a) of 
this section is equal to or less than the amount allocated to the States 
for fiscal year 1999, each State is allocated the amount it received for 
fiscal year 1999.
    (ii) Ratable reduction. If the amount available for allocations 
under paragraph (d) of this section is insufficient

[[Page 105]]

to make the allocations described in paragraph (d)(2)(i) of this 
section, those allocations are ratably reduced.

(Authority: 20 U.S.C. 1411(d))



Sec. 300.704  State-level activities.

    (a) State administration. (1) For the purpose of administering Part 
B of the Act, including paragraph (c) of this section, section 619 of 
the Act, and the coordination of activities under Part B of the Act 
with, and providing technical assistance to, other programs that provide 
services to children with disabilities--
    (i) Each State may reserve for each fiscal year not more than the 
maximum amount the State was eligible to reserve for State 
administration under section 611 of the Act for fiscal year 2004 or 
$800,000 (adjusted in accordance with paragraph (a)(2) of this section), 
whichever is greater; and
    (ii) Each outlying area may reserve for each fiscal year not more 
than five percent of the amount the outlying area receives under Sec. 
300.701(a) for the fiscal year or $35,000, whichever is greater.
    (2) For each fiscal year, beginning with fiscal year 2005, the 
Secretary cumulatively adjusts--
    (i) The maximum amount the State was eligible to reserve for State 
administration under section 611 of the Act for fiscal year 2004; and
    (ii) $800,000, by the rate of inflation as measured by the 
percentage increase, if any, from the preceding fiscal year in the 
Consumer Price Index for All Urban Consumers, published by the Bureau of 
Labor Statistics of the Department of Labor.
    (3) Prior to expenditure of funds under paragraph (a) of this 
section, the State must certify to the Secretary that the arrangements 
to establish responsibility for services pursuant to section 
612(a)(12)(A) of the Act are current.
    (4) Funds reserved under paragraph (a)(1) of this section may be 
used for the administration of Part C of the Act, if the SEA is the lead 
agency for the State under that Part.
    (b) Other State-level activities. (1) States may reserve a portion 
of their allocations for other State-level activities. The maximum 
amount that a State may reserve for other State-level activities is as 
follows:
    (i) If the amount that the State sets aside for State administration 
under paragraph (a) of this section is greater than $850,000 and the 
State opts to finance a high cost fund under paragraph (c) of this 
section:
    (A) For fiscal years 2005 and 2006, 10 percent of the State's 
allocation under Sec. 300.703.
    (B) For fiscal year 2007 and subsequent fiscal years, an amount 
equal to 10 percent of the State's allocation for fiscal year 2006 under 
Sec. 300.703 adjusted cumulatively for inflation.
    (ii) If the amount that the State sets aside for State 
administration under paragraph (a) of this section is greater than 
$850,000 and the State opts not to finance a high cost fund under 
paragraph (c) of this section--
    (A) For fiscal years 2005 and 2006, nine percent of the State's 
allocation under Sec. 300.703.
    (B) For fiscal year 2007 and subsequent fiscal years, an amount 
equal to nine percent of the State's allocation for fiscal year 2006 
adjusted cumulatively for inflation.
    (iii) If the amount that the State sets aside for State 
administration under paragraph (a) of this section is less than or equal 
to $850,000 and the State opts to finance a high cost fund under 
paragraph (c) of this section:
    (A) For fiscal years 2005 and 2006, 10.5 percent of the State's 
allocation under Sec. 300.703.
    (B) For fiscal year 2007 and subsequent fiscal years, an amount 
equal to 10.5 percent of the State's allocation for fiscal year 2006 
under Sec. 300.703 adjusted cumulatively for inflation.
    (iv) If the amount that the State sets aside for State 
administration under paragraph (a) of this section is equal to or less 
than $850,000 and the State opts not to finance a high cost fund under 
paragraph (c) of this section:
    (A) For fiscal years 2005 and 2006, nine and one-half percent of the 
State's allocation under Sec. 300.703.
    (B) For fiscal year 2007 and subsequent fiscal years, an amount 
equal to nine and one-half percent of the State's allocation for fiscal 
year 2006 under Sec. 300.703 adjusted cumulatively for inflation.

[[Page 106]]

    (2) The adjustment for inflation is the rate of inflation as 
measured by the percentage of increase, if any, from the preceding 
fiscal year in the Consumer Price Index for All Urban Consumers, 
published by the Bureau of Labor Statistics of the Department of Labor.
    (3) Some portion of the funds reserved under paragraph (b)(1) of 
this section must be used to carry out the following activities:
    (i) For monitoring, enforcement, and complaint investigation; and
    (ii) To establish and implement the mediation process required by 
section 615(e) of the Act, including providing for the costs of 
mediators and support personnel;
    (4) Funds reserved under paragraph (b)(1) of this section also may 
be used to carry out the following activities:
    (i) For support and direct services, including technical assistance, 
personnel preparation, and professional development and training;
    (ii) To support paperwork reduction activities, including expanding 
the use of technology in the IEP process;
    (iii) To assist LEAs in providing positive behavioral interventions 
and supports and mental health services for children with disabilities;
    (iv) To improve the use of technology in the classroom by children 
with disabilities to enhance learning;
    (v) To support the use of technology, including technology with 
universal design principles and assistive technology devices, to 
maximize accessibility to the general education curriculum for children 
with disabilities;
    (vi) Development and implementation of transition programs, 
including coordination of services with agencies involved in supporting 
the transition of students with disabilities to postsecondary 
activities;
    (vii) To assist LEAs in meeting personnel shortages;
    (viii) To support capacity building activities and improve the 
delivery of services by LEAs to improve results for children with 
disabilities;
    (ix) Alternative programming for children with disabilities who have 
been expelled from school, and services for children with disabilities 
in correctional facilities, children enrolled in State-operated or 
State-supported schools, and children with disabilities in charter 
schools;
    (x) To support the development and provision of appropriate 
accommodations for children with disabilities, or the development and 
provision of alternate assessments that are valid and reliable for 
assessing the performance of children with disabilities, in accordance 
with sections 1111(b) and 6111 of the ESEA; and
    (xi) To provide technical assistance to schools and LEAs, and direct 
services, including supplemental educational services as defined in 
section 1116(e) of the ESEA to children with disabilities, in schools or 
LEAs identified for improvement under section 1116 of the ESEA on the 
sole basis of the assessment results of the disaggregated subgroup of 
children with disabilities, including providing professional development 
to special and regular education teachers, who teach children with 
disabilities, based on scientifically based research to improve 
educational instruction, in order to improve academic achievement to 
meet or exceed the objectives established by the State under section 
1111(b)(2)(G) of the ESEA.
    (c) Local educational agency high cost fund. (1) In general--
    (i) For the purpose of assisting LEAs (including a charter school 
that is an LEA or a consortium of LEAs) in addressing the needs of high 
need children with disabilities, each State has the option to reserve 
for each fiscal year 10 percent of the amount of funds the State 
reserves for other State-level activities under paragraph (b)(1) of this 
section--
    (A) To finance and make disbursements from the high cost fund to 
LEAs in accordance with paragraph (c) of this section during the first 
and succeeding fiscal years of the high cost fund; and
    (B) To support innovative and effective ways of cost sharing by the 
State, by an LEA, or among a consortium of LEAs, as determined by the 
State in coordination with representatives from LEAs, subject to 
paragraph (c)(2)(ii) of this section.

[[Page 107]]

    (ii) For purposes of paragraph (c) of this section, local 
educational agency includes a charter school that is an LEA, or a 
consortium of LEAs.
    (2)(i) A State must not use any of the funds the State reserves 
pursuant to paragraph (c)(1)(i) of this section, which are solely for 
disbursement to LEAs, for costs associated with establishing, 
supporting, and otherwise administering the fund. The State may use 
funds the State reserves under paragraph (a) of this section for those 
administrative costs.
    (ii) A State must not use more than 5 percent of the funds the State 
reserves pursuant to paragraph (c)(1)(i) of this section for each fiscal 
year to support innovative and effective ways of cost sharing among 
consortia of LEAs.
    (3)(i) The SEA must develop, not later than 90 days after the State 
reserves funds under paragraph (c)(1)(i) of this section, annually 
review, and amend as necessary, a State plan for the high cost fund. 
Such State plan must--
    (A) Establish, in consultation and coordination with representatives 
from LEAs, a definition of a high need child with a disability that, at 
a minimum--
    (1) Addresses the financial impact a high need child with a 
disability has on the budget of the child's LEA; and
    (2) Ensures that the cost of the high need child with a disability 
is greater than 3 times the average per pupil expenditure (as defined in 
section 9101 of the ESEA) in that State;
    (B) Establish eligibility criteria for the participation of an LEA 
that, at a minimum, take into account the number and percentage of high 
need children with disabilities served by an LEA;
    (C) Establish criteria to ensure that placements supported by the 
fund are consistent with the requirements of Sec. Sec. 300.114 through 
300.118;
    (D) Develop a funding mechanism that provides distributions each 
fiscal year to LEAs that meet the criteria developed by the State under 
paragraph (c)(3)(i)(B) of this section;
    (E) Establish an annual schedule by which the SEA must make its 
distributions from the high cost fund each fiscal year; and
    (F) If the State elects to reserve funds for supporting innovative 
and effective ways of cost sharing under paragraph (c)(1)(i)(B) of this 
section, describe how these funds will be used.
    (ii) The State must make its final State plan available to the 
public not less than 30 days before the beginning of the school year, 
including dissemination of such information on the State Web site.
    (4)(i) Each SEA must make all annual disbursements from the high 
cost fund established under paragraph (c)(1)(i) of this section in 
accordance with the State plan published pursuant to paragraph (c)(3) of 
this section.
    (ii) The costs associated with educating a high need child with a 
disability, as defined under paragraph (c)(3)(i)(A) of this section, are 
only those costs associated with providing direct special education and 
related services to the child that are identified in that child's IEP, 
including the cost of room and board for a residential placement 
determined necessary, consistent with Sec. 300.114, to implement a 
child's IEP.
    (iii) The funds in the high cost fund remain under the control of 
the State until disbursed to an LEA to support a specific child who 
qualifies under the State plan for the high cost funds or distributed to 
LEAs, consistent with paragraph (c)(9) of this section.
    (5) The disbursements under paragraph (c)(4) of this section must 
not be used to support legal fees, court costs, or other costs 
associated with a cause of action brought on behalf of a child with a 
disability to ensure FAPE for such child.
    (6) Nothing in paragraph (c) of this section--
    (i) Limits or conditions the right of a child with a disability who 
is assisted under Part B of the Act to receive FAPE pursuant to section 
612(a)(1) of the Act in the least restrictive environment pursuant to 
section 612(a)(5) of the Act; or
    (ii) Authorizes an SEA or LEA to establish a limit on what may be 
spent on the education of a child with a disability.
    (7) Notwithstanding the provisions of paragraphs (c)(1) through (6) 
of this section, a State may use funds reserved

[[Page 108]]

pursuant to paragraph (c)(1)(i) of this section for implementing a 
placement neutral cost sharing and reimbursement program of high need, 
low incidence, catastrophic, or extraordinary aid to LEAs that provides 
services to high need children based on eligibility criteria for such 
programs that were created not later than January 1, 2004, and are 
currently in operation, if such program serves children that meet the 
requirement of the definition of a high need child with a disability as 
described in paragraph (c)(3)(i)(A) of this section.
    (8) Disbursements provided under paragraph (c) of this section must 
not be used to pay costs that otherwise would be reimbursed as medical 
assistance for a child with a disability under the State Medicaid 
program under Title XIX of the Social Security Act.
    (9) Funds reserved under paragraph (c)(1)(i) of this section from 
the appropriation for any fiscal year, but not expended pursuant to 
paragraph (c)(4) of this section before the beginning of their last year 
of availability for obligation, must be allocated to LEAs in the same 
manner as other funds from the appropriation for that fiscal year are 
allocated to LEAs under Sec. 300.705 during their final year of 
availability.
    (d) Inapplicability of certain prohibitions. A State may use funds 
the State reserves under paragraphs (a) and (b) of this section without 
regard to--
    (1) The prohibition on commingling of funds in Sec. 300.162(b).
    (2) The prohibition on supplanting other funds in Sec. 300.162(c).
    (e) Special rule for increasing funds. A State may use funds the 
State reserves under paragraph (a)(1) of this section as a result of 
inflationary increases under paragraph (a)(2) of this section to carry 
out activities authorized under paragraph (b)(4)(i), (iii), (vii), or 
(viii) of this section.
    (f) Flexibility in using funds for Part C. Any State eligible to 
receive a grant under section 619 of the Act may use funds made 
available under paragraph (a)(1) of this section, Sec. 300.705(c), or 
Sec. 300.814(e) to develop and implement a State policy jointly with 
the lead agency under Part C of the Act and the SEA to provide early 
intervention services (which must include an educational component that 
promotes school readiness and incorporates preliteracy, language, and 
numeracy skills) in accordance with Part C of the Act to children with 
disabilities who are eligible for services under section 619 of the Act 
and who previously received services under Part C of the Act until the 
children enter, or are eligible under State law to enter, kindergarten, 
or elementary school as appropriate.

(Approved by the Office of Management and Budget under control number 
1820-0600)

(Authority: 20 U.S.C. 1411(e))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.705  Subgrants to LEAs.

    (a) Subgrants required. Each State that receives a grant under 
section 611 of the Act for any fiscal year must distribute any funds the 
State does not reserve under Sec. 300.704 to LEAs (including public 
charter schools that operate as LEAs) in the State that have established 
their eligibility under section 613 of the Act for use in accordance 
with Part B of the Act. Effective with funds that become available on 
the July 1, 2009, each State must distribute funds to eligible LEAs, 
including public charter schools that operate as LEAs, even if the LEA 
is not serving any children with disabilities.
    (b) Allocations to LEAs. For each fiscal year for which funds are 
allocated to States under Sec. 300.703, each State shall allocate funds 
as follows:
    (1) Base payments. The State first must award each LEA described in 
paragraph (a) of this section the amount the LEA would have received 
under section 611 of the Act for fiscal year 1999, if the State had 
distributed 75 percent of its grant for that year under section 611(d) 
of the Act, as that section was then in effect.
    (2) Base payment adjustments. For any fiscal year after 1999--
    (i) If a new LEA is created, the State must divide the base 
allocation determined under paragraph (b)(1) of this section for the 
LEAs that would have been responsible for serving children with 
disabilities now being served by the new LEA, among the new LEA and 
affected LEAs based on the relative numbers of children with 
disabilities

[[Page 109]]

ages 3 through 21, or ages 6 through 21 if a State has had its payment 
reduced under Sec. 300.703(b), currently provided special education by 
each of the LEAs;
    (ii) If one or more LEAs are combined into a single new LEA, the 
State must combine the base allocations of the merged LEAs;
    (iii) If, for two or more LEAs, geographic boundaries or 
administrative responsibility for providing services to children with 
disabilities ages 3 through 21 change, the base allocations of affected 
LEAs must be redistributed among affected LEAs based on the relative 
numbers of children with disabilities ages 3 through 21, or ages 6 
through 21 if a State has had its payment reduced under Sec. 
300.703(b), currently provided special education by each affected LEA; 
and
    (iv) If an LEA received a base payment of zero in its first year of 
operation, the SEA must adjust the base payment for the first fiscal 
year after the first annual child count in which the LEA reports that it 
is serving any children with disabilities. The State must divide the 
base allocation determined under paragraph (b)(1) of this section for 
the LEAs that would have been responsible for serving children with 
disabilities now being served by the LEA, among the LEA and affected 
LEAs based on the relative numbers of children with disabilities ages 3 
through 21, or ages 6 through 21 currently provided special education by 
each of the LEAs. This requirement takes effect with funds that become 
available on July 1, 2009.
    (3) Allocation of remaining funds. After making allocations under 
paragraph (b)(1) of this section, as adjusted by paragraph (b)(2) of 
this section, the State must--
    (i) Allocate 85 percent of any remaining funds to those LEAs on the 
basis of the relative numbers of children enrolled in public and private 
elementary schools and secondary schools within the LEA's jurisdiction; 
and
    (ii) Allocate 15 percent of those remaining funds to those LEAs in 
accordance with their relative numbers of children living in poverty, as 
determined by the SEA.
    (c) Reallocation of LEA funds. (1) If an SEA determines that an LEA 
is adequately providing FAPE to all children with disabilities residing 
in the area served by that agency with State and local funds, the SEA 
may reallocate any portion of the funds under this part that are not 
needed by that LEA to provide FAPE, to other LEAs in the State that are 
not adequately providing special education and related services to all 
children with disabilities residing in the areas served by those other 
LEAs. The SEA may also retain those funds for use at the State level to 
the extent the State has not reserved the maximum amount of funds it is 
permitted to reserve for State-level activities pursuant to Sec. 
300.704.
    (2) After an SEA distributes funds under this part to an eligible 
LEA that is not serving any children with disabilities, as provided in 
paragraph (a) of this section, the SEA must determine, within a 
reasonable period of time prior to the end of the carryover period in 34 
CFR 76.709, whether the LEA has obligated the funds. The SEA may 
reallocate any of those funds not obligated by the LEA to other LEAs in 
the State that are not adequately providing special education and 
related services to all children with disabilities residing in the areas 
served by those other LEAs. The SEA may also retain those funds for use 
at the State level to the extent the State has not reserved the maximum 
amount of funds it is permitted to reserve for State-level activities 
pursuant to Sec. 300.704.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1411(f))

[71 FR 46753, Aug. 14, 2006, as amended at 73 FR 73028, Dec. 1, 2008]



Sec. 300.706  [Reserved]

                        Secretary of the Interior



Sec. 300.707  Use of amounts by Secretary of the Interior.

    (a) Definitions. For purposes of Sec. Sec. 300.707 through 300.716, 
the following definitions apply:
    (1) Reservation means Indian Country as defined in 18 U.S.C. 1151.

[[Page 110]]

    (2) Tribal governing body has the definition given that term in 25 
U.S.C. 2021(19).
    (b) Provision of amounts for assistance. The Secretary provides 
amounts to the Secretary of the Interior to meet the need for assistance 
for the education of children with disabilities on reservations aged 5 
to 21, inclusive, enrolled in elementary schools and secondary schools 
for Indian children operated or funded by the Secretary of the Interior. 
The amount of the payment for any fiscal year is equal to 80 percent of 
the amount allotted under section 611(b)(2) of the Act for that fiscal 
year. Of the amount described in the preceding sentence, after the 
Secretary of the Interior reserves funds for administration under Sec. 
300.710, 80 percent must be allocated to such schools by July 1 of that 
fiscal year and 20 percent must be allocated to such schools by 
September 30 of that fiscal year.
    (c) Additional requirement. With respect to all other children aged 
3 to 21, inclusive, on reservations, the SEA of the State in which the 
reservation is located must ensure that all of the requirements of Part 
B of the Act are implemented.

(Authority: 20 U.S.C. 1411(h)(1))



Sec. 300.708  Submission of information.

    The Secretary may provide the Secretary of the Interior amounts 
under Sec. 300.707 for a fiscal year only if the Secretary of the 
Interior submits to the Secretary information that--
    (a) Meets the requirements of section 612(a)(1), (3) through (9), 
(10)(B) through (C), (11) through (12), (14) through (16), (19), and 
(21) through (25) of the Act (including monitoring and evaluation 
activities);
    (b) Meets the requirements of section 612(b) and (e) of the Act;
    (c) Meets the requirements of section 613(a)(1), (2)(A)(i), (7) 
through (9) and section 613(i) of the Act (references to LEAs in these 
sections must be read as references to elementary schools and secondary 
schools for Indian children operated or funded by the Secretary of the 
Interior);
    (d) Meets the requirements of section 616 of the Act that apply to 
States (references to LEAs in section 616 of the Act must be read as 
references to elementary schools and secondary schools for Indian 
children operated or funded by the Secretary of the Interior).
    (e) Meets the requirements of this part that implement the sections 
of the Act listed in paragraphs (a) through (d) of this section;
    (f) Includes a description of how the Secretary of the Interior will 
coordinate the provision of services under Part B of the Act with LEAs, 
tribes and tribal organizations, and other private and Federal service 
providers;
    (g) Includes an assurance that there are public hearings, adequate 
notice of the hearings, and an opportunity for comment afforded to 
members of tribes, tribal governing bodies, and affected local school 
boards before the adoption of the policies, programs, and procedures 
related to the requirements described in paragraphs (a) through (d) of 
this section;
    (h) Includes an assurance that the Secretary of the Interior 
provides the information that the Secretary may require to comply with 
section 618 of the Act;
    (i)(1) Includes an assurance that the Secretary of the Interior and 
the Secretary of Health and Human Services have entered into a 
memorandum of agreement, to be provided to the Secretary, for the 
coordination of services, resources, and personnel between their 
respective Federal, State, and local offices and with the SEAs and LEAs 
and other entities to facilitate the provision of services to Indian 
children with disabilities residing on or near reservations.
    (2) The agreement must provide for the apportionment of 
responsibilities and costs, including child find, evaluation, diagnosis, 
remediation or therapeutic measures, and (where appropriate) equipment 
and medical or personal supplies, as needed for a child with a 
disability to remain in a school or program; and
    (j) Includes an assurance that the Department of the Interior will 
cooperate with the Department in its exercise of monitoring and 
oversight of the requirements in this section and Sec. Sec. 300.709 
through 300.711 and Sec. Sec. 300.713 through 300.716, and any 
agreements entered into between the Secretary of the Interior and other 
entities under Part B of

[[Page 111]]

the Act, and will fulfill its duties under Part B of the Act. The 
Secretary withholds payments under Sec. 300.707 with respect to the 
requirements described in this section in the same manner as the 
Secretary withholds payments under section 616(e)(6) of the Act.

(Authority: 20 U.S.C. 1411(h)(2) and (3))



Sec. 300.709  Public participation.

    In fulfilling the requirements of Sec. 300.708 the Secretary of the 
Interior must provide for public participation consistent with Sec. 
300.165.

(Authority: 20 U.S.C. 1411(h))



Sec. 300.710  Use of funds under Part B of the Act.

    (a) The Secretary of the Interior may reserve five percent of its 
payment under Sec. 300.707(b) in any fiscal year, or $500,000, 
whichever is greater, for administrative costs in carrying out the 
provisions of Sec. Sec. 300.707 through 300.709, 300.711, and 300.713 
through 300.716.
    (b) Payments to the Secretary of the Interior under Sec. 300.712 
must be used in accordance with that section.

(Authority: 20 U.S.C. 1411(h)(1)(A))



Sec. 300.711  Early intervening services.

    (a) The Secretary of the Interior may allow each elementary school 
and secondary school for Indian children operated or funded by the 
Secretary of the Interior to use not more than 15 percent of the amount 
the school receives under Sec. 300.707(b) for any fiscal year, in 
combination with other amounts (which may include amounts other than 
education funds), to develop and implement coordinated, early 
intervening services, which may include interagency financing 
structures, for children in kindergarten through grade 12 (with a 
particular emphasis on children in kindergarten through grade three) who 
have not been identified as needing special education or related 
services but who need additional academic and behavioral support to 
succeed in a general education environment, in accordance with section 
613(f) of the Act.
    (b) Each elementary school and secondary school for Indian children 
operated or funded by the Secretary of the Interior that develops and 
maintains coordinated early intervening services in accordance with 
section 613(f) of the Act and Sec. 300.226 must annually report to the 
Secretary of the Interior in accordance with section 613(f) of the Act.

(Authority: 20 U.S.C. 1411(h) and 1413(f))



Sec. 300.712  Payments for education and services for Indian children
with disabilities aged three through five.

    (a) General. With funds appropriated under section 611(i) of the 
Act, the Secretary makes payments to the Secretary of the Interior to be 
distributed to tribes or tribal organizations (as defined under section 
4 of the Indian Self-Determination and Education Assistance Act) or 
consortia of tribes or tribal organizations to provide for the 
coordination of assistance for special education and related services 
for children with disabilities aged three through five on reservations 
served by elementary schools and secondary schools for Indian children 
operated or funded by the Department of the Interior. The amount of the 
payments under paragraph (b) of this section for any fiscal year is 
equal to 20 percent of the amount allotted under Sec. 300.701(b).
    (b) Distribution of funds. The Secretary of the Interior must 
distribute the total amount of the payment under paragraph (a) of this 
section by allocating to each tribe, tribal organization, or consortium 
an amount based on the number of children with disabilities aged three 
through five residing on reservations as reported annually, divided by 
the total of those children served by all tribes or tribal 
organizations.
    (c) Submission of information. To receive a payment under this 
section, the tribe or tribal organization must submit the figures to the 
Secretary of the Interior as required to determine the amounts to be 
allocated under paragraph (b) of this section. This information must be 
compiled and submitted to the Secretary.
    (d) Use of funds. (1) The funds received by a tribe or tribal 
organization must be used to assist in child find, screening, and other 
procedures for the early identification of children aged three through 
five, parent training, and the provision of direct services.

[[Page 112]]

These activities may be carried out directly or through contracts or 
cooperative agreements with the BIA, LEAs, and other public or private 
nonprofit organizations. The tribe or tribal organization is encouraged 
to involve Indian parents in the development and implementation of these 
activities.
    (2) The tribe or tribal organization, as appropriate, must make 
referrals to local, State, or Federal entities for the provision of 
services or further diagnosis.
    (e) Biennial report. To be eligible to receive a grant pursuant to 
paragraph (a) of this section, the tribe or tribal organization must 
provide to the Secretary of the Interior a biennial report of activities 
undertaken under this section, including the number of contracts and 
cooperative agreements entered into, the number of children contacted 
and receiving services for each year, and the estimated number of 
children needing services during the two years following the year in 
which the report is made. The Secretary of the Interior must include a 
summary of this information on a biennial basis in the report to the 
Secretary required under section 611(h) of the Act. The Secretary may 
require any additional information from the Secretary of the Interior.
    (f) Prohibitions. None of the funds allocated under this section may 
be used by the Secretary of the Interior for administrative purposes, 
including child count and the provision of technical assistance.

(Authority: 20 U.S.C. 1411(h)(4))



Sec. 300.713  Plan for coordination of services.

    (a) The Secretary of the Interior must develop and implement a plan 
for the coordination of services for all Indian children with 
disabilities residing on reservations served by elementary schools and 
secondary schools for Indian children operated or funded by the 
Secretary of the Interior.
    (b) The plan must provide for the coordination of services 
benefiting those children from whatever source, including tribes, the 
Indian Health Service, other BIA divisions, other Federal agencies, 
State educational agencies, and State, local, and tribal juvenile and 
adult correctional facilities.
    (c) In developing the plan, the Secretary of the Interior must 
consult with all interested and involved parties.
    (d) The plan must be based on the needs of the children and the 
system best suited for meeting those needs, and may involve the 
establishment of cooperative agreements between the BIA, other Federal 
agencies, and other entities.
    (e) The plan also must be distributed upon request to States; to 
SEAs, LEAs, and other agencies providing services to infants, toddlers, 
and children with disabilities; to tribes; and to other interested 
parties.

(Authority: 20 U.S.C. 1411(h)(5))



Sec. 300.714  Establishment of advisory board.

    (a) To meet the requirements of section 612(a)(21) of the Act, the 
Secretary of the Interior must establish, under the BIA, an advisory 
board composed of individuals involved in or concerned with the 
education and provision of services to Indian infants, toddlers, 
children, and youth with disabilities, including Indians with 
disabilities, Indian parents or guardians of such children, teachers, 
service providers, State and local educational officials, 
representatives of tribes or tribal organizations, representatives from 
State Interagency Coordinating Councils under section 641 of the Act in 
States having reservations, and other members representing the various 
divisions and entities of the BIA. The chairperson must be selected by 
the Secretary of the Interior.
    (b) The advisory board must--
    (1) Assist in the coordination of services within the BIA and with 
other local, State, and Federal agencies in the provision of education 
for infants, toddlers, and children with disabilities;
    (2) Advise and assist the Secretary of the Interior in the 
performance of the Secretary of the Interior's responsibilities 
described in section 611(h) of the Act;
    (3) Develop and recommend policies concerning effective inter- and 
intra-agency collaboration, including modifications to regulations, and 
the elimination of barriers to inter- and intra-agency programs and 
activities;

[[Page 113]]

    (4) Provide assistance and disseminate information on best 
practices, effective program coordination strategies, and 
recommendations for improved early intervention services or educational 
programming for Indian infants, toddlers, and children with 
disabilities; and
    (5) Provide assistance in the preparation of information required 
under Sec. 300.708(h).

(Authority: 20 U.S.C. 1411(h)(6))



Sec. 300.715  Annual reports.

    (a) In general. The advisory board established under Sec. 300.714 
must prepare and submit to the Secretary of the Interior and to Congress 
an annual report containing a description of the activities of the 
advisory board for the preceding year.
    (b) Availability. The Secretary of the Interior must make available 
to the Secretary the report described in paragraph (a) of this section.

(Authority: 20 U.S.C. 1411(h)(7))



Sec. 300.716  Applicable regulations.

    The Secretary of the Interior must comply with the requirements of 
Sec. Sec. 300.103 through 300.108, 300.110 through 300.124, 300.145 
through 300.154, 300.156 through 300.160, 300.165, 300.170 through 
300.186, 300.226, 300.300 through 300.606, 300.610 through 300.646, and 
300.707 through 300.716.

(Authority: 20 U.S.C. 1411(h)(2)(A))

                 Definitions that Apply to this Subpart



Sec. 300.717  Definitions applicable to allotments, grants, and use of
funds.

    As used in this subpart--
    (a) Freely associated States means the Republic of the Marshall 
Islands, the Federated States of Micronesia, and the Republic of Palau;
    (b) Outlying areas means the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana Islands;
    (c) State means each of the 50 States, the District of Columbia, and 
the Commonwealth of Puerto Rico; and
    (d) Average per-pupil expenditure in public elementary schools and 
secondary schools in the United States means--
    (1) Without regard to the source of funds--
    (i) The aggregate current expenditures, during the second fiscal 
year preceding the fiscal year for which the determination is made (or, 
if satisfactory data for that year are not available, during the most 
recent preceding fiscal year for which satisfactory data are available) 
of all LEAs in the 50 States and the District of Columbia; plus
    (ii) Any direct expenditures by the State for the operation of those 
agencies; divided by (2) The aggregate number of children in average 
daily attendance to whom those agencies provided free public education 
during that preceding year.

(Authority: 20 U.S.C. 1401(22), 1411(b)(1) (C) and (g))

  Acquisition of Equipment and Construction or Alteration of Facilities



Sec. 300.718  Acquisition of equipment and construction or alteration
of facilities.

    (a) General. If the Secretary determines that a program authorized 
under Part B of the Act will be improved by permitting program funds to 
be used to acquire appropriate equipment, or to construct new facilities 
or alter existing facilities, the Secretary may allow the use of those 
funds for those purposes.
    (b) Compliance with certain regulations. Any construction of new 
facilities or alteration of existing facilities under paragraph (a) of 
this section must comply with the requirements of--
    (1) Appendix A of part 36 of title 28, Code of Federal Regulations 
(commonly known as the ``Americans with Disabilities Accessibility 
Standards for Buildings and Facilities''); or
    (2) Appendix A of subpart 101-19.6 of title 41, Code of Federal 
Regulations (commonly known as the ``Uniform Federal Accessibility 
Standards'').

(Authority: 20 U.S.C. 1404)

[[Page 114]]



        Subpart H_Preschool Grants for Children with Disabilities



Sec. 300.800  In general.

    The Secretary provides grants under section 619 of the Act to assist 
States to provide special education and related services in accordance 
with Part B of the Act--
    (a) To children with disabilities aged three through five years; and
    (b) At a State's discretion, to two-year-old children with 
disabilities who will turn three during the school year.

(Authority: 20 U.S.C. 1419(a))



Sec. Sec. 300.801-300.802  [Reserved]



Sec. 300.803  Definition of State.

    As used in this subpart, State means each of the 50 States, the 
District of Columbia, and the Commonwealth of Puerto Rico.

(Authority: 20 U.S.C. 1419(i))



Sec. 300.804  Eligibility.

    A State is eligible for a grant under section 619 of the Act if the 
State--
    (a) Is eligible under section 612 of the Act to receive a grant 
under Part B of the Act; and
    (b) Makes FAPE available to all children with disabilities, aged 
three through five, residing in the State.

(Approved by the Office of Management and Budget under control number 
1820-0030)

(Authority: 20 U.S.C. 1419(b))



Sec. 300.805  [Reserved]



Sec. 300.806  Eligibility for financial assistance.

    No State or LEA, or other public institution or agency, may receive 
a grant or enter into a contract or cooperative agreement under subpart 
2 or 3 of Part D of the Act that relates exclusively to programs, 
projects, and activities pertaining to children aged three through five 
years, unless the State is eligible to receive a grant under section 
619(b) of the Act.

(Authority: 20 U.S.C. 1481(e))



Sec. 300.807  Allocations to States.

    The Secretary allocates the amount made available to carry out 
section 619 of the Act for a fiscal year among the States in accordance 
with Sec. Sec. 300.808 through 300.810.

(Authority: 20 U.S.C. 1419(c)(1))



Sec. 300.808  Increase in funds.

    If the amount available for allocation to States under Sec. 300.807 
for a fiscal year is equal to or greater than the amount allocated to 
the States under section 619 of the Act for the preceding fiscal year, 
those allocations are calculated as follows:
    (a) Except as provided in Sec. 300.809, the Secretary--
    (1) Allocates to each State the amount the State received under 
section 619 of the Act for fiscal year 1997;
    (2) Allocates 85 percent of any remaining funds to States on the 
basis of the States' relative populations of children aged three through 
five; and
    (3) Allocates 15 percent of those remaining funds to States on the 
basis of the States' relative populations of all children aged three 
through five who are living in poverty.
    (b) For the purpose of making grants under this section, the 
Secretary uses the most recent population data, including data on 
children living in poverty, that are available and satisfactory to the 
Secretary.

(Authority: 20 U.S.C. 1419(c)(2)(A))



Sec. 300.809  Limitations.

    (a) Notwithstanding Sec. 300.808, allocations under that section 
are subject to the following:
    (1) No State's allocation may be less than its allocation under 
section 619 of the Act for the preceding fiscal year.
    (2) No State's allocation may be less than the greatest of--
    (i) The sum of--
    (A) The amount the State received under section 619 of the Act for 
fiscal year 1997; and
    (B) One-third of one percent of the amount by which the amount 
appropriated under section 619(j) of the Act for the fiscal year exceeds 
the amount appropriated for section 619 of the Act for fiscal year 1997;
    (ii) The sum of--
    (A) The amount the State received under section 619 of the Act for 
the preceding fiscal year; and

[[Page 115]]

    (B) That amount multiplied by the percentage by which the increase 
in the funds appropriated under section 619 of the Act from the 
preceding fiscal year exceeds 1.5 percent; or
    (iii) The sum of--
    (A) The amount the State received under section 619 of the Act for 
the preceding fiscal year; and
    (B) That amount multiplied by 90 percent of the percentage increase 
in the amount appropriated under section 619 of the Act from the 
preceding fiscal year.
    (b) Notwithstanding paragraph (a)(2) of this section, no State's 
allocation under Sec. 300.808 may exceed the sum of--
    (1) The amount the State received under section 619 of the Act for 
the preceding fiscal year; and
    (2) That amount multiplied by the sum of 1.5 percent and the 
percentage increase in the amount appropriated under section 619 of the 
Act from the preceding fiscal year.
    (c) If the amount available for allocation to States under Sec. 
300.808 and paragraphs (a) and (b) of this section is insufficient to 
pay those allocations in full, those allocations are ratably reduced, 
subject to paragraph (a)(1) of this section.

(Authority: 20 U.S.C. 1419(c)(2)(B) and (c)(2)(C))



Sec. 300.810  Decrease in funds.

    If the amount available for allocations to States under Sec. 
300.807 for a fiscal year is less than the amount allocated to the 
States under section 619 of the Act for the preceding fiscal year, those 
allocations are calculated as follows:
    (a) If the amount available for allocations is greater than the 
amount allocated to the States for fiscal year 1997, each State is 
allocated the sum of--
    (1) The amount the State received under section 619 of the Act for 
fiscal year 1997; and
    (2) An amount that bears the same relation to any remaining funds as 
the increase the State received under section 619 of the Act for the 
preceding fiscal year over fiscal year 1997 bears to the total of all 
such increases for all States.
    (b) If the amount available for allocations is equal to or less than 
the amount allocated to the States for fiscal year 1997, each State is 
allocated the amount the State received for fiscal year 1997, ratably 
reduced, if necessary.

(Authority: 20 U.S.C. 1419(c)(3))



Sec. 300.811  [Reserved]



Sec. 300.812  Reservation for State activities.

    (a) Each State may reserve not more than the amount described in 
paragraph (b) of this section for administration and other State-level 
activities in accordance with Sec. Sec. 300.813 and 300.814.
    (b) For each fiscal year, the Secretary determines and reports to 
the SEA an amount that is 25 percent of the amount the State received 
under section 619 of the Act for fiscal year 1997, cumulatively adjusted 
by the Secretary for each succeeding fiscal year by the lesser of--
    (1) The percentage increase, if any, from the preceding fiscal year 
in the State's allocation under section 619 of the Act; or
    (2) The rate of inflation, as measured by the percentage increase, 
if any, from the preceding fiscal year in the Consumer Price Index for 
All Urban Consumers, published by the Bureau of Labor Statistics of the 
Department of Labor.

(Authority: 20 U.S.C. 1419(d))

[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



Sec. 300.813  State administration.

    (a) For the purpose of administering section 619 of the Act 
(including the coordination of activities under Part B of the Act with, 
and providing technical assistance to, other programs that provide 
services to children with disabilities), a State may use not more than 
20 percent of the maximum amount the State may reserve under Sec. 
300.812 for any fiscal year.
    (b) Funds described in paragraph (a) of this section may also be 
used for the administration of Part C of the Act.

(Authority: 20 U.S.C. 1419(e))



Sec. 300.814  Other State-level activities.

    Each State must use any funds the State reserves under Sec. 300.812 
and does

[[Page 116]]

not use for administration under Sec. 300.813--
    (a) For support services (including establishing and implementing 
the mediation process required by section 615(e) of the Act), which may 
benefit children with disabilities younger than three or older than five 
as long as those services also benefit children with disabilities aged 
three through five;
    (b) For direct services for children eligible for services under 
section 619 of the Act;
    (c) For activities at the State and local levels to meet the 
performance goals established by the State under section 612(a)(15) of 
the Act;
    (d) To supplement other funds used to develop and implement a 
statewide coordinated services system designed to improve results for 
children and families, including children with disabilities and their 
families, but not more than one percent of the amount received by the 
State under section 619 of the Act for a fiscal year;
    (e) To provide early intervention services (which must include an 
educational component that promotes school readiness and incorporates 
preliteracy, language, and numeracy skills) in accordance with Part C of 
the Act to children with disabilities who are eligible for services 
under section 619 of the Act and who previously received services under 
Part C of the Act until such children enter, or are eligible under State 
law to enter, kindergarten; or
    (f) At the State's discretion, to continue service coordination or 
case management for families who receive services under Part C of the 
Act, consistent with Sec. 300.814(e).

(Authority: 20 U.S.C. 1419(f))



Sec. 300.815  Subgrants to LEAs.

    Each State that receives a grant under section 619 of the Act for 
any fiscal year must distribute all of the grant funds the State does 
not reserve under Sec. 300.812 to LEAs (including public charter 
schools that operate as LEAs) in the State that have established their 
eligibility under section 613 of the Act. Effective with funds that 
become available on July 1, 2009, each State must distribute funds to 
eligible LEAs that are responsible for providing education to children 
aged three through five years, including public charter schools that 
operate as LEAs, even if the LEA is not serving any preschool children 
with disabilities.

(Authority: 20 U.S.C. 1419(g)(1))

[73 FR 73028, Dec. 1, 2008]



Sec. 300.816  Allocations to LEAs.

    (a) Base payments. The State must first award each LEA described in 
Sec. 300.815 the amount that agency would have received under section 
619 of the Act for fiscal year 1997 if the State had distributed 75 
percent of its grant for that year under section 619(c)(3), as such 
section was then in effect.
    (b) Base payment adjustments. For fiscal year 1998 and beyond--
    (1) If a new LEA is created, the State must divide the base 
allocation determined under paragraph (a) of this section for the LEAs 
that would have been responsible for serving children with disabilities 
now being served by the new LEA, among the new LEA and affected LEAs 
based on the relative numbers of children with disabilities ages three 
through five currently provided special education by each of the LEAs;
    (2) If one or more LEAs are combined into a single new LEA, the 
State must combine the base allocations of the merged LEAs;
    (3) If for two or more LEAs, geographic boundaries or administrative 
responsibility for providing services to children with disabilities ages 
three through five changes, the base allocations of affected LEAs must 
be redistributed among affected LEAs based on the relative numbers of 
children with disabilities ages three through five currently provided 
special education by each affected LEA; and
    (4) If an LEA received a base payment of zero in its first year of 
operation, the SEA must adjust the base payment for the first fiscal 
year after the first annual child count in which the LEA reports that it 
is serving any children with disabilities aged three through five years. 
The State must divide the base allocation determined under paragraph (a) 
of this section for the LEAs that would have been responsible for 
serving children with disabilities aged three through five years now

[[Page 117]]

being served by the LEA, among the LEA and affected LEAs based on the 
relative numbers of children with disabilities aged three through five 
years currently provided special education by each of the LEAs. This 
requirement takes effect with funds that become available on July 1, 
2009.
    (c) Allocation of remaining funds. After making allocations under 
paragraph (a) of this section, the State must--
    (1) Allocate 85 percent of any remaining funds to those LEAs on the 
basis of the relative numbers of children enrolled in public and private 
elementary schools and secondary schools within the LEA's jurisdiction; 
and
    (2) Allocate 15 percent of those remaining funds to those LEAs in 
accordance with their relative numbers of children living in poverty, as 
determined by the SEA.
    (d) Use of best data. For the purpose of making grants under this 
section, States must apply on a uniform basis across all LEAs the best 
data that are available to them on the numbers of children enrolled in 
public and private elementary and secondary schools and the numbers of 
children living in poverty.

(Authority: 20 U.S.C. 1419(g)(1))

[71 FR 46753, Aug. 14, 2006, as amended at 73 FR 73028, Dec. 1, 2008]



Sec. 300.817  Reallocation of LEA funds.

    (a) If an SEA determines that an LEA is adequately providing FAPE to 
all children with disabilities aged three through five years residing in 
the area served by the LEA with State and local funds, the SEA may 
reallocate any portion of the funds under section 619 of the Act that 
are not needed by that LEA to provide FAPE, to other LEAs in the State 
that are not adequately providing special education and related services 
to all children with disabilities aged three through five years residing 
in the areas served by those other LEAs. The SEA may also retain those 
funds for use at the State level to the extent the State has not 
reserved the maximum amount of funds it is permitted to reserve for 
State-level activities pursuant to Sec. 300.812.
    (b) After an SEA distributes section 619 funds to an eligible LEA 
that is not serving any children with disabilities aged three through 
five years, as provided in Sec. 300.815, the SEA must determine, within 
a reasonable period of time prior to the end of the carryover period in 
34 CFR 76.709, whether the LEA has obligated the funds. The SEA may 
reallocate any of those funds not obligated by the LEA to other LEAs in 
the State that are not adequately providing special education and 
related services to all children with disabilities aged three through 
five years residing in the areas served by those other LEAs. The SEA may 
also retain those funds for use at the State level to the extent the 
State has not reserved the maximum amount of funds it is permitted to 
reserve for State-level activities pursuant to Sec. 300.812.

(Authority: 20 U.S.C. 1419(g)(2))

[73 FR 73028, Dec. 1, 2008]



Sec. 300.818  Part C of the Act inapplicable.

    Part C of the Act does not apply to any child with a disability 
receiving FAPE, in accordance with Part B of the Act, with funds 
received under section 619 of the Act.

(Authority: 20 U.S.C. 1419(h))



          Sec. Appendix A to Part 300--Excess Costs Calculation

    Except as otherwise provided, amounts provided to an LEA under Part 
B of the Act may be used only to pay the excess costs of providing 
special education and related services to children with disabilities. 
Excess costs are those costs for the education of an elementary school 
or secondary school student with a disability that are in excess of the 
average annual per student expenditure in an LEA during the preceding 
school year for an elementary school or secondary school student, as may 
be appropriate. An LEA must spend at least the average annual per 
student expenditure on the education of an elementary school or 
secondary school child with a disability before funds under Part B of 
the Act are used to pay the excess costs of providing special education 
and related services.
    Section 602(8) of the Act and Sec. 300.16 require the LEA to 
compute the minimum average amount separately for children with 
disabilities in its elementary schools and for children with 
disabilities in its secondary schools. LEAs may not compute the minimum 
average amount it must spend on the education of children with 
disabilities based

[[Page 118]]

on a combination of the enrollments in its elementary schools and 
secondary schools.
    The following example shows how to compute the minimum average 
amount an LEA must spend for the education of each of its elementary 
school children with disabilities under section 602(3) of the Act before 
it may use funds under Part B of the Act.
    a. First the LEA must determine the total amount of its expenditures 
for elementary school students from all sources--local, State, and 
Federal (including Part B)--in the preceding school year. Only capital 
outlay and debt services are excluded.

    Example: The following is an example of a computation for children 
with disabilities enrolled in an LEA's elementary schools. In this 
example, the LEA had an average elementary school enrollment for the 
preceding school year of 800 (including 100 children with disabilities). 
The LEA spent the following amounts last year for elementary school 
students (including its elementary school children with disabilities):

 
 
 
(1)....................  From State and local tax funds.      $6,500,000
(2)....................  From Federal funds.............         600,000
                                                         ---------------
                          Total expenditures............       7,100,000
 

    Of this total, $60,000 was for capital outlay and debt service 
relating to the education of elementary school students. This must be 
subtracted from total expenditures.

 
 
 
(1)....................  Total Expenditures.............      $7,100,000
(2)....................  Less capital outlay and debt...         -60,000
                                                         ===============
                          Total expenditures for              $7,040,000
                          elementary school students
                          less capital outlay and debt.
 

    b. Next, the LEA must subtract from the total expenditures amounts 
spent for:
    (1) IDEA, Part B allocation,
    (2) ESEA, Title I, Part A allocation,
    (3) ESEA, Title III, Parts A and B allocation,
    (4) State and local funds for children with disabilities, and
    (5) State or local funds for programs under ESEA, Title I, Part A, 
and Title III, Parts A and B.
    These are funds that the LEA actually spent, not funds received last 
year but carried over for the current school year.

    Example: The LEA spent the following amounts for elementary school 
students last year:

 
 
 
(1)....................  From funds under IDEA, Part B         $ 200,000
                          allocation.
(2)....................  From funds under ESEA, Title I,         250,000
                          Part A allocation.
(3)....................  From funds under ESEA, Title             50,000
                          III, Parts A and B allocation.
(4)....................  From State funds and local              500,000
                          funds for children with
                          disabilities.
(5)....................  From State and local funds for          150,000
                          programs under ESEA, Title I,
                          Part A, and Title III, Parts A
                          and B.
                                                         ---------------
                          Total.........................       1,150,000
                                                         ---------------
(1)....................   Total expenditures less              7,040,000
                          capital outlay and debt.
(2)....................  Other deductions...............      -1,150,000
                                                         ===============
                          Total.........................      $5,890,000
 

    c. Except as otherwise provided, the LEA next must determine the 
average annual per student expenditure for its elementary schools 
dividing the average number of students enrolled in the elementary 
schools of the agency during the preceding year (including its children 
with disabilities) into the amount computed under the above paragraph. 
The amount obtained through this computation is the minimum amount the 
LEA must spend (on the average) for the education of each of its 
elementary school children with disabilities. Funds under Part B of the 
Act may be used only for costs over and above this minimum.

 
 
 
(1)....................  Amount from Step b.............      $5,890,000
(2)....................  Average number of students                  800
                          enrolled.
(3)....................  $5,890,000/800 Average annual           $ 7,362
                          per student expenditure.
 

    d. Except as otherwise provided, to determine the total minimum 
amount of funds the LEA must spend for the education of its elementary 
school children with disabilities in the LEA (not including capital 
outlay and debt service), the LEA must multiply the number of elementary 
school children with disabilities in the LEA times the average annual 
per student expenditure obtained in paragraph c above. Funds under Part 
B of the Act can only be used for excess costs over and above this 
minimum.

 
 
 
(1)....................  Number of children with                     100
                          disabilities in the LEA's
                          elementary schools.
(2)....................  Average annual per student              $ 7,362
                          expenditure.
(3)....................  $7,362x100.....................

[[Page 119]]

 
                          Total minimum amount of funds        $ 736,200
                          the LEA must spend for the
                          education of children with
                          disabilities enrolled in the
                          LEA's elementary schools
                          before using Part B funds.
 



      Sec. Appendix B to Part 300--Proportionate Share Calculation

    Each LEA must expend, during the grant period, on the provision of 
special education and related services for the parentally-placed private 
school children with disabilities enrolled in private elementary schools 
and secondary schools located in the LEA an amount that is equal to--
    (1) A proportionate share of the LEA's subgrant under section 611(f) 
of the Act for children with disabilities aged 3 through 21. This is an 
amount that is the same proportion of the LEA's total subgrant under 
section 611(f) of the Act as the number of parentally-placed private 
school children with disabilities aged 3 through 21 enrolled in private 
elementary schools and secondary schools located in the LEA is to the 
total number of children with disabilities enrolled in public and 
private elementary schools and secondary schools located in the LEA aged 
3 through 21; and
    (2) A proportionate share of the LEA's subgrant under section 619(g) 
of the Act for children with disabilities aged 3 through 5. This is an 
amount that is the same proportion of the LEA's total subgrant under 
section 619(g) of the Act as the total number of parentally-placed 
private school children with disabilities aged 3 through 5 enrolled in 
private elementary schools located in the LEA is to the total number of 
children with disabilities enrolled in public and private elementary 
schools located in the LEA aged 3 through 5.
    Consistent with section 612(a)(10)(A)(i) of the Act and Sec. 
300.133 of these regulations, annual expenditures for parentally-placed 
private school children with disabilities are calculated based on the 
total number of children with disabilities enrolled in public and 
private elementary schools and secondary schools located in the LEA 
eligible to receive special education and related services under Part B, 
as compared with the total number of eligible parentally-placed private 
school children with disabilities enrolled in private elementary schools 
located in the LEA. This ratio is used to determine the proportion of 
the LEA's total Part B subgrants under section 611(f) of the Act for 
children aged 3 through 21, and under section 619(g) of the Act for 
children aged 3 through 5, that is to be expended on services for 
parentally-placed private school children with disabilities enrolled in 
private elementary schools and secondary schools located in the LEA.
    The following is an example of how the proportionate share is 
calculated:
    There are 300 eligible children with disabilities enrolled in the 
Flintstone School District and 20 eligible parentally-placed private 
school children with disabilities enrolled in private elementary schools 
and secondary schools located in the LEA for a total of 320 eligible 
public and private school children with disabilities (note: 
proportionate share for parentally-placed private school children is 
based on total children eligible, not children served). The number of 
eligible parentally-placed private school children with disabilities 
(20) divided by the total number of eligible public and private school 
children with disabilities (320) indicates that 6.25 percent of the 
LEA's subgrant must be spent for the group of eligible parentally-placed 
children with disabilities enrolled in private elementary schools and 
secondary schools located in the LEA. Flintstone School District 
receives $152,500 in Federal flow through funds. Therefore, the LEA must 
spend $9,531.25 on special education or related services to the group of 
parentally-placed private school children with disabilities enrolled in 
private elementary schools and secondary schools located in the LEA. 
(Note: The LEA must calculate the proportionate share of IDEA funds 
before earmarking funds for any early intervening activities in Sec. 
300.226).
    The following outlines the calculations for the example of how the 
proportionate share is calculated.

 
 
 
Proportionate Share Calculation for Parentally-Placed Private
 School Children with Disabilities For Flintstone School
 District:
Number of eligible children with disabilities in public              300
 schools in the LEA..........................................
Number of parentally-placed eligible children with                    20
 disabilities in private elementary schools and secondary
 schools located in the LEA..................................
                                                              ----------
    Total number of eligible children........................        320
 
   Federal Flow-Through Funds to Flintstone School District
 
    Total allocation to Flintstone...........................   $152,500

[[Page 120]]

 
Calculating Proportionate Share:
Total allocation to Flinstone................................    152,500
Divided by total number of eligible children.................        320
Average allocation per eligible child........................   476.5625
Multiplied by the number of parentally-placed children with           20
 disabilities................................................
Amount to be expended for parentally-placed children with       9,531.25
 disabilities................................................
 



     Sec. Appendix C to Part 300--National Instructional Materials 
                     Accessibility Standard (NIMAS)

    Under sections 612(a)(23)(A) and 674(e)(4) of the Individuals with 
Disabilities Education Act, as amended by the Individuals with 
Disabilities Education Improvement Act of 2004, the Secretary of 
Education establishes the NIMAS. Under section 674(e)(4) of the Act, the 
NIMAS applies to print instructional materials published after July 19, 
2006. The purpose of the NIMAS is to help increase the availability and 
timely delivery of print instructional materials in accessible formats 
to blind or other persons with print disabilities in elementary and 
secondary schools.

           Technical Specifications--The Baseline Element Set

    The Baseline Element Set details the minimum requirement that must 
be delivered to fulfill the NIMAS. It is the responsibility of 
publishers to provide this NIMAS-conformant XML content file, a package 
file (OPF), a PDF-format copy of the title page (or whichever page(s) 
contain(s) ISBN and copyright information), and a full set of the 
content's images. All of the images included within a work must be 
provided in a folder and placeholders entered in the relevant XML 
document indicating their location (all images must be included). The 
preferred image type is SVG, next is either PNG or JPG format. Images 
should be rendered in the same size/proportion as their originals at 300 
dpi. Images should be named with relative path filenames in XML files 
(example: img id=``staricon4'' src=``./images/U10C02/staricon4.jpg'' 
alt=``star icon'').
    NIMAS-conformant content must be valid to the NIMAS 1.1 [see ANSI/
NISO Z39.86 2005 or subsequent revisions]. In addition, files are 
required to use the tags from the Baseline Element Set when such tags 
are appropriate. Publishers are encouraged to augment the required 
Baseline Element Set with tags from the Optional Element Set (elements 
not included in the Standard) as applicable. For the purposes of NIMAS, 
appropriate usage of elements, both baseline and optional, is defined by 
the DAISY Structure Guidelines. Files that do not follow these 
guidelines in the selection and application of tags are not conformant 
to this Standard. Both optional elements and appropriate structure 
guidelines may be located within Z39.86-2002 and Z39.86-2005 available 
from http://www.daisy.org/z3986/. Use of the most current standard is 
recommended.

                        The Baseline Element Set
------------------------------------------------------------------------
              Element                            Description
------------------------------------------------------------------------
                         a. Document-level tags
------------------------------------------------------------------------
dtbook............................  The root element in the Digital
                                     Talking Book DTD.  contains metadata in  and the contents itself in
                                     .
head..............................  Contains metainformation about the
                                     book but no actual content of the
                                     book itself, which is placed in
                                     .
book..............................  Surrounds the actual content of the
                                     document, which is divided into
                                     ,
                                     , and
                                     . , which contains metadata,
                                     precedes .
meta..............................  Indicates metadata about the book.
                                     It is an empty element that may
                                     appear repeatedly only in .
                                    For the most current usage
                                     guidelines, please refer to http://
                                     www.daisy.org/z3986/
------------------------------------------------------------------------
                       b. Structure and Hierarchy
------------------------------------------------------------------------
frontmatter.......................  Usually contains  and , as
                                     well as preliminary material that
                                     is often enclosed in appropriate
                                      or  etc. Content may include a
                                     copyright notice, a foreword, an
                                     acknowledgements section, a table
                                     of contents, etc.  serves as a guide to the
                                     content and nature of a .
bodymatter........................  Consists of the text proper of a
                                     book, as contrasted with
                                     preliminary material
                                      or
                                     supplementary information in
                                     .
rearmatter........................  Contains supplementary material such
                                     as appendices, glossaries,
                                     bibliographies, and indices. It
                                     follows the 
                                     of the book.
level1............................  The highest-level container of major
                                     divisions of a book. Used in
                                     ,
                                     , and
                                      to mark the
                                     largest divisions of the book
                                     (usually parts or chapters), inside
                                     which 
                                     subdivisions (often sections) may
                                     nest. The class attribute
                                     identifies the actual name (e.g.,
                                     part, chapter) of the structure it
                                     marks. Contrast with .

[[Page 121]]

 
level2............................  Contains subdivisions that nest
                                     within 
                                     divisions. The class attribute
                                     identifies the actual name (e.g.,
                                     subpart, chapter, subsection) of
                                     the structure it marks.
level3............................  Contains sub-subdivisions that nest
                                     within 
                                     subdivisions (e.g., sub-subsections
                                     within subsections). The class
                                     attribute identifies the actual
                                     name (e.g., section, subpart,
                                     subsubsection) of the subordinate
                                     structure it marks.
level4............................  Contains further subdivisions that
                                     nest within 
                                     subdivisions. The class attribute
                                     identifies the actual name of the
                                     subordinate structure it marks.
level5............................  Contains further subdivisions that
                                     nest within 
                                     subdivisions. The class attribute
                                     identifies the actual name of the
                                     subordinate structure it marks.
level6............................  Contains further subdivisions that
                                     nest within 
                                     subdivisions. The class attribute
                                     identifies the actual name of the
                                     subordinate structure it marks.
h1................................  Contains the text of the heading for
                                     a  structure.
h2................................  Contains the text of the heading for
                                     a  structure.
h3................................  Contains the text of the heading for
                                     a  structure.
h4................................  Contains the text of the heading for
                                     a  structure.
h5................................  Contains the text of the heading for
                                     a  structure.
h6................................  Contains the text of the heading for
                                     a  structure.
                                    For the most current usage
                                     guidelines, please refer to http://
                                     www.daisy.org/z3986/
------------------------------------------------------------------------
                            c. Block elements
------------------------------------------------------------------------
author............................  Identifies the writer of a work
                                     other than this one. Contrast with
                                     , which
                                     identifies the author of this work.
                                      typically occurs
                                     within  and
                                     .
blockquote........................  Indicates a block of quoted content
                                     that is set off from the
                                     surrounding text by paragraph
                                     breaks. Compare with ,
                                     which marks short, inline
                                     quotations.
list..............................  Contains some form of list, ordered
                                     or unordered. The list may have an
                                     intermixed heading 
                                     (generally only one, possibly with
                                     ), and an
                                     intermixture of list items  and . If
                                     bullets and outline enumerations
                                     are part of the print content, they
                                     are expected to prefix those list
                                     items in content, rather than be
                                     implicitly generated.
li................................  Marks each list item in a .  content may
                                     be either inline or block and may
                                     include other nested lists.
                                     Alternatively it may contain a
                                     sequence of list item components,
                                     , that identify
                                     regularly occurring content, such
                                     as the heading and page number of
                                     each entry in a table of contents.
hd................................  Marks the text of a heading in a
                                      or .
note..............................  Marks a footnote, endnote, etc. Any
                                     local reference to  is by
                                     yyy''''. [Attribute
                                     id]
p.................................  Contains a paragraph, which may
                                     contain subsidiary 
                                     or .
sidebar...........................  Contains information supplementary
                                     to the main text and/or narrative
                                     flow and is often boxed and printed
                                     apart from the main text block on a
                                     page. It may have a heading .
cite..............................  Marks a reference (or citation) to
                                     another document.
dd................................  Marks a definition of the preceding
                                     term  within a
                                     definition list . A
                                     definition without a preceding
                                      has no semantic
                                     interpretation, but is visually
                                     presented aligned with other .
dl................................  Contains a definition list, usually
                                     consisting of pairs of terms  and definitions . Any definition can contain
                                     another definition list.
dt................................  Marks a term in a definition list
                                      for which a
                                     definition  follows.
                                    For the most current usage
                                     guidelines, please refer to http://
                                     www.daisy.org/z3986/
------------------------------------------------------------------------
                           d. Inline Elements
------------------------------------------------------------------------
em................................  Indicates emphasis. Usually  is rendered in italics.
                                     Compare with .
q.................................  Contains a short, inline quotation.
                                     Compare with , which marks a longer quotation
                                     set off from the surrounding text.
strong............................  Marks stronger emphasis than . Visually  is usually rendered bold.
sub...............................  Indicates a subscript character
                                     (printed below a character's normal
                                     baseline). Can be used recursively
                                     and/or intermixed with .
sup...............................  Marks a superscript character
                                     (printed above a character's normal
                                     baseline). Can be used recursively
                                     and/or intermixed with .
br................................  Marks a forced line break.
line..............................  Marks a single logical line of text.
                                     Often used in conjunction with
                                      in documents
                                     with numbered lines. [Use only when
                                     line breaks must be preserved to
                                     capture meaning (e.g., poems, legal
                                     texts).]
linenum...........................  Contains a line number, for example
                                     in legal text. [Use only when
                                      is used, and only
                                     for lines numbered in print book.]
pagenum...........................  Contains one page number as it
                                     appears from the print document,
                                     usually inserted at the point
                                     within the file immediately
                                     preceding the first item of content
                                     on a new page. [NB: Only valid when
                                     it includes an id attribute].
noteref...........................  Marks one or more characters that
                                     reference a footnote or endnote
                                     . Contrast with
                                     .  and  are
                                     independently skippable.
                                    For the most current usage
                                     guidelines, please refer to http://
                                     www.daisy.org/z3986/
------------------------------------------------------------------------

[[Page 122]]

 
                                e. Tables
------------------------------------------------------------------------
table.............................  Contains cells of tabular data
                                     arranged in rows and columns. A
                                      may have a
                                     . It may have
                                     descriptions of the columns in
                                     s or groupings of
                                     several  in
                                     . A simple
                                      may be made up of
                                     just rows . A long
                                     table crossing several pages of the
                                     print book should have separate
                                      values for each
                                     of the pages containing that
                                      indicated on the
                                     page where it starts. Note the
                                     logical order of optional , optional , then one or more of either
                                      or just rows
                                     . This order
                                     accommodates simple or large,
                                     complex tables. The  and 
                                     information usually helps identify
                                     content of the 
                                     rows. For a multiple-page print
                                      the  and  are
                                     repeated on each page, but not
                                     redundantly tagged.
td................................  Indicates a table cell containing
                                     data.
tr................................  Marks one row of a 
                                     containing  or  cells.
                                    For the most current usage
                                     guidelines, please refer to http://
                                     www.daisy.org/z3986/
------------------------------------------------------------------------
                                f. Images
------------------------------------------------------------------------
imggroup..........................  Provides a container for one or more
                                      and associated
                                     (s) and
                                     (s). A
                                      may contain a
                                     description of the image. The
                                     content model allows: 1) multiple
                                      if they share a
                                     caption, with the ids of each
                                      in the ,
                                     2) multiple  if
                                     several captions refer to a single
                                      where
                                     each caption has the same , 3)
                                     multiple  if
                                     different versions are needed for
                                     different media (e.g., large print,
                                     braille, or print). If several
                                      refer to a
                                     single ,
                                     each prodnote has the same
                                     .
img...............................  Points to the image to be rendered.
                                     An  may stand alone
                                     or be grouped using . Note that providing
                                     extracted images is not a
                                     requirement of the NIMAS. If they
                                     are included, it is best to refer
                                     to them using 
                                     within the 
                                     container.
caption...........................  Describes a  or
                                     . If used with
                                      it must follow
                                     immediately after the  start tag. If used with
                                      it is not so
                                     constrained.
                                    For the most current usage
                                     guidelines, please refer to http://
                                     www.daisy.org/z3986/
------------------------------------------------------------------------

             1. The Optional Elements and Guidelines for Use

    Publishers are encouraged to apply markup beyond the baseline 
(required) elements. The complete DTBook Element Set reflects the tags 
necessary to create the six types of Digital Talking Books and Braille 
output. Because of the present necessity to subdivide the creation of 
alternate format materials into distinct phases, the Panel determined 
that baseline elements would be provided by publishers, and optional 
elements would be added to the NIMAS-conformant files by third party 
conversion entities. In both circumstances the protocols for tagging 
digital files should conform to the most current ANSI/NISO Z39.86 
specification. Content converters are directed to the most current DAISY 
Structure Guidelines (http://www.daisy.org/z3986/) for guidance on their 
use.
    Since the publication of the original National File Format report 
from which the NIMAS technical specifications were derived, ANSI/NISO 
Z39.86-2002 was updated and is now ANSI/NISO Z39.86-2005. It may be best 
to avoid using the following optional elements which are no longer 
included in ANSI/NISO Z39.86-2005: style, notice, hr, and levelhd.
    Also, the following new elements were introduced by ANSI/NISO 
Z39.86-2005 and should be considered optional elements for the NIMAS: 
bridgehead, byline, covertitle, dateline, epigraph, linegroup, and poem. 
Please refer to ANSI/NISO Z39.86-2005 for additional information 
regarding these elements. To access the ANSI/NISO Z39.86-2005 
specification, go to http://www.daisy.org/z3986/.

                             2. Package File

    A package file describes a publication. It identifies all other 
files in the publication and provides descriptive and access information 
about them. A publication must include a package file conforming to the 
NIMAS. The package file is based on the Open eBook Publication Structure 
1.2 package file specification (For most recent detail please see http:/
/www.openebook.org/oebps/oebps1.2/download/oeb12-xhtml.htm#sec2). A 
NIMAS package file must be an XML-valid OeB PS 1.2 package file instance 
and must meet the following additional standards:
    The NIMAS Package File must include the following Dublin Core 
(dc:)metadata:
dc:Title.
dc:Creator (if applicable).
dc:Publisher.
dc:Date (Date of NIMAS-compliant file creation--yyyy-mm-dd).
dc:Format (=``NIMAS 1.0'').
dc:Identifier (a unique identifier for the NIMAS-compliant digital 
publication, e.g., print ISBN + ``-NIMAS''--exact format to be 
determined).

[[Page 123]]

dc:Language (one instance, or multiple in the case of a foreign language 
textbook, etc.).
dc:Rights (details to be determined).
dc:Source (ISBN of print version of textbook).

    And the following x-metadata items:
nimas-SourceEdition (the edition of the print textbook).
nimas-SourceDate (date of publication of the print textbook).

    The following metadata were proposed also as a means of facilitating 
recordkeeping, storage and file retrieval:
dc:Subject (Lang Arts, Soc Studies, etc.).
nimas-grade (specific grade level of the print textbook, e.g.; Grade 6).
nimas gradeRange (specific grade range of the print textbook, e.g.; 
Grades 4-5).

    An additional suggestion references the use of:

dc:audience:educationLevel (for the grade and gradeRange identifiers, 
noting that Dublin Core recommends using educationLevel with an 
appropriate controlled vocabulary for context, and recommends the U.S. 
Department of Education's Level of Education vocabulary online at http:/
/www.ed.gov/admin/reference/index.jsp. Using educationLevel obviates the 
need for a separate field for gradeRange since dc elements can repeat 
more than once. A book used in more than one grade would therefore have 
two elements, one with value ``Grade 4'' and another with value ``Grade 
5.''

    A final determination as to which of these specific metadata 
elements to use needs to be clarified in practice. The package manifest 
must list all provided files (text, images, etc.).
(Note: For purposes of continuity and to minimize errors in 
transformation and processing, the NIMAS-compliant digital text should 
be provided as a single document.)

                          3. Modular Extensions

    The most current DAISY/NISO standard, formally the ANSI/NISO Z39.86, 
Specifications for the Digital Talking Book defines a comprehensive 
system for creating Digital Talking Books. A part of this standard is 
DTBook, an XML vocabulary that provides a core set of elements needed to 
produce most types of books. However, DTBook is not intended to be an 
exhaustive vocabulary for all types of books.
    Guidelines for the correct approach to extend the DAISY/NISO 
standard have been established. Mathematics, video support, testing, 
workbooks, music, dictionaries, chemistry, and searching are some of the 
extensions that have been discussed. Visit http://www.daisy.org/z3986/ 
to learn more about modular extensions.

                                   End



Sec. Appendix D to Part 300--Maintenance of Effort and Early Intervening 
                                Services

    LEAs that seek to reduce their local maintenance of effort in 
accordance with Sec. 300.205(d) and use some of their Part B funds for 
early intervening services under Sec. 300.226 must do so with caution 
because the local maintenance of effort reduction provision and the 
authority to use Part B funds for early intervening services are 
interconnected. The decisions that an LEA makes about the amount of 
funds that it uses for one purpose affect the amount that it may use for 
the other. Below are examples that illustrate how Sec. Sec. 300.205(d) 
and 300.226(a) affect one another.
    Example 1: In this example, the amount that is 15 percent of the 
LEA's total grant (see Sec. 300.226(a)), which is the maximum amount 
that the LEA may use for early intervening services (EIS), is greater 
than the amount that may be used for local maintenance of effort (MOE) 
reduction (50 percent of the increase in the LEA's grant from the prior 
year's grant) (see Sec. 300.205(a)).

 
 
 
Prior Year's Allocation.................................       $900,000.
Current Year's Allocation...............................      1,000,000.
Increase................................................        100,000.
Maximum Available for MOE Reduction.....................         50,000.
Maximum Available for EIS...............................        150,000.
 

    If the LEA chooses to set aside $150,000 for EIS, it may not reduce 
its MOE (MOE maximum $50,000 less $150,000 for EIS means $0 can be used 
for MOE).
    If the LEA chooses to set aside $100,000 for EIS, it may not reduce 
its MOE (MOE maximum $50,000 less $100,000 for EIS means $0 can be used 
for MOE).
    If the LEA chooses to set aside $50,000 for EIS, it may not reduce 
its MOE (MOE maximum $50,000 less $50,000 for EIS means $0 can be used 
for MOE).
    If the LEA chooses to set aside $30,000 for EIS, it may reduce its 
MOE by $20,000 (MOE maximum $50,000 less $30,000 for EIS means $20,000 
can be used for MOE).
    If the LEA chooses to set aside $0 for EIS, it may reduce its MOE by 
$50,000 (MOE maximum $50,000 less $0 for EIS means $50,000 can be used 
for MOE).
    Example 2: In this example, the amount that is 15 percent of the 
LEA's total grant (see Sec. 300.226(a)), which is the maximum amount 
that the LEA may use for EIS, is less than the amount that may be used 
for MOE reduction (50 percent of the increase in the LEA's grant from 
the prior year's grant) (see Sec. 300.205(a)).

 
 
 
Prior Year's Allocation.................................     $1,000,000.

[[Page 124]]

 
Current Year's Allocation...............................      2,000,000.
Increase................................................      1,000,000.
Maximum Available for MOE Reduction.....................        500,000.
Maximum Available for EIS...............................        300,000.
 

    If the LEA chooses to use no funds for MOE, it may set aside 
$300,000 for EIS (EIS maximum $300,000 less $0 means $300,000 for EIS).
    If the LEA chooses to use $100,000 for MOE, it may set aside 
$200,000 for EIS (EIS maximum $300,000 less $100,000 means $200,000 for 
EIS).
    If the LEA chooses to use $150,000 for MOE, it may set aside 
$150,000 for EIS (EIS maximum $300,000 less $150,000 means $150,000 for 
EIS).
    If the LEA chooses to use $300,000 for MOE, it may not set aside 
anything for EIS (EIS maximum $300,000 less $300,000 means $0 for EIS).
    If the LEA chooses to use $500,000 for MOE, it may not set aside 
anything for EIS (EIS maximum $300,000 less $500,000 means $0 for EIS).



Sec. Appendix E to Part 300--Index for IDEA--Part B Regulations (34 CFR 
                                Part 300)

ACCESS TO
 Access rights (Parents).................  300.613.
 Assistive technology devices in child's   300.105(b).
 home.
 Disciplinary records....................  300.229.
 Education records (Procedural safeguards  300.504(c)(4).
 notice).
 General curriculum (Ensure access to)...  300.39(b)(3)(ii).
 Instructional materials (see Sec. Sec.
  300.172, 300.210).
 List of employees who may have access to  300.623(d).
 records.
 Parent's private insurance proceeds.....  300.154(e).
 Record of access (Confidentiality)......  300.614.
 
ACCESSIBILITY STANDARDS (Regarding construction)
 Americans with Disabilities               300.718(b)(1).
 Accessibility Standards for Buildings and Facilities.
 Uniform Federal Accessibility Standards.  300.718(b)(2).
 
ACCOMMODATIONS
 In assessments..........................  300.320(a)(6)(i).
 State level activities in support of....  300.704(b)(4)(x).
 
ACT (Definition)...........................................  300.4.
 
ADD AND ADHD (See ``Attention deficit disorder'' and
 ``Attention deficit hyperactivity disorder'')
 
ADDITIONAL DISCLOSURE OF INFORMATION REQUIREMENT...........  300.512(b).
 
ADULT CORRECTIONAL FACILITIES (See ``Correctional
 facilities'')
 
ADULT PRISONS (Children with disabilities in)
 Divided State agency responsibility.....  300.607.
 FAPE requirements:
    [Omicron] Exception to FAPE............................  300.102(a)(2).
    [Omicron] Modifications of IEP or placement............  300.324(d)(2).
    [Omicron] Requirements that do not apply...............  300.324(d)(1).
 Governor................................  300.149(d).
 Other public agency responsibility......  300.149(d).
 
ADVERSELY AFFECTS EDUCATIONAL PERFORMANCE (See ``Child with
 a disability,'' Sec. 300.8(c)(1)(i), (c)(3), (c)(4)(i),
 (c)(5), (c)(6), (c)(8), (c)(9)(ii), (c)(11), (c)(12))
 
ADVISORY BOARD
(Secretary of the Interior)................................  300.714.
 
ADVISORY PANEL (See ``State advisory panel'')
AGE-APPROPRIATE CLASSROOM..................................  300.116(e).
 

[[Page 125]]

 
ALLOCATION(S)
 By-pass for private school children (see
 Sec. 300.191(d)).
 To LEAs (see Sec. Sec. 300.705(b),
 300.816)
 To Outlying areas.......................  300.701(a).
 To Secretary of the Interior............  300.707.
 To States (see Sec. Sec. 300.703,
 300.807 through 300.810).
 
ALLOWABLE COSTS
(By SEA for State administration)..........................  300.704(a).
 
ALTERATION OF FACILITIES...................................  300.718(b).
 
ALTERNATE ASSESSMENTS
 Aligned with alternate academic           300.320(a)(2)(ii).
 achievement standards.
 Development and provision of in           300.704(b)(4)(x).
 accordance with ESEA.
 Participation determined by IEP Team....  300.320(a)(6)(ii).
 
ALTERNATIVE PLACEMENTS (Continuum).........................  300.115.
 
ALTERNATIVE STRATEGIES to meet transition objectives.......  300.324(c)(1).
 
AMENDMENTS
 To LEA policies and procedures..........  300.220(b).
 To State policies and procedures:
    [Omicron] Made by State................................  300.176(b).
    [Omicron] Required by the Secretary....................  300.176(c).
 
ANNUAL GOALS (IEPs)
 FAPE for children suspended or expelled
 (see Sec. Sec. 300.101(a), 300.530(d))
 IEP content:
    [Omicron] How progress will be measured................  300.320(a)(3).
    [Omicron] Special education and related services.......  300.320(a)(4).
    [Omicron] Statement of measurable annual goals.........  300.320(a)(2)(i).
 Review and revision of IEP..............  300.324(b)(1).
 Review of existing evaluation data......  300.305(a).
 
ANNUAL REPORT
Of children served (see Sec. Sec. 300.640 through
 300.646)
On education of Indian children............................  300.715.
 
APPENDICES TO PART 300 (A through E)
Excess Costs Calculation (see appendix A)
Proportionate Share Calculation (see appendix B)
National Instructional Materials Accessibility Standard
 (NIMAS) (see appendix C)
Maintenance of Effort and Early Intervening Services (see
 appendix D)
Index for IDEA--Part B Regulations (This appendix E)
APPLICABILITY OF THIS PART to State, local, and private      300.2.
 agencies.
 
APPLICATION
 Initial admission to public school......  300.518(b).
 Initial services........................  300.518(c).
 
ASSESSMENT(S)
 For specific learning disability (see
 Sec. 300.309(a)(2)(ii), (b)(2))
 Functional behavioral assessment (see
 Sec. 300.530(d)(1)(ii), (f)(1)(i))
 In evaluation (see Sec. Sec.
 300.304(b), (c), 300.305(a)(1)(ii), (c), (d))
 Of leisure function (in ``Recreation'').  300.34(c)(11)(i).
 
ASSESSMENTS--STATE and DISTRICT-WIDE

[[Page 126]]

 
Alternate assessments (see Sec. 300.320 (a)(2)(ii),
 (a)(6)(ii))
Performance indicators.....................................  300.157.
 
ASSISTANCE UNDER OTHER FEDERAL PROGRAMS....................  300.186.
 
ASSISTIVE TECHNOLOGY (AT)
 AT devices..............................  300.5.
 AT services.............................  300.6.
 Consideration of special factors........  300.324(a)(2)(v).
 Hearing aids............................  300.113.
 Requirement:
    [Omicron] Ensure availability of.......................  300.105(a).
    [Omicron] Use of AT in child's home....................  300.105(b).
 Surgically implanted medical devices
 (see Sec. Sec. 300.5, 300.34(b), 300.113(b))
 
ASTHMA.....................................................  300.8(c)(9).
 
ATTENTION DEFICIT DISORDER (ADD)...........................  300.8(c)(9).
 
ATTENTION DEFICIT HYPERACTIVITY DISORDER (ADHD)............  300.8(c)(9).
 
ATTORNEYS' FEES............................................  300.517.
 Award of fees...........................  300.517(c).
 Prohibition on use of funds for.........  300.517(b).
 When court reduces fee awards...........  300.517(c)(4).
 
AUDIOLOGY..................................................  300.34(c)(1).
 
AUTHORITY (A-O)
 Of guardian.............................  300.30(a)(3).
 Of hearing officer (Discipline).........  300.532(b).
 Of school personnel (Discipline)........  300.530.
 Of Secretary to monitor and enforce.....  300.609.
 
AUTHORITY (P-Z)
 Parental authority to inspect and review  300.613.
 records.
 State complaint procedures..............  300.151(b).
 Waiver request (Signed by person with     300.164(c)(1).
 authority).
 
AUTISM.....................................................  300.8(c)(1).
 
AVERAGE PER-PUPIL EXPENDITURE
(Definition)...............................................  300.717(d).
 
BASE PAYMENTS (to LEAs) (See Sec. 300.705(b)(1), (b)(2))
 
BASIS OF KNOWLEDGE: Protection for children not yet          300.534(b).
 eligible.
 
BEHAVIORAL ASSESSMENT (See ``Functional behavioral
 assessment'')
 
BEHAVIORAL INTERVENTION(S).................................  300.530(f).
 Assist in developing....................  300.34(c)(10)(vi).
 Behavioral intervention plan............  300.530(f).
 Consideration of by IEP Team............  300.324(a)(2)(i).
 Not a manifestation of disability.......  300.530(d).
 Regular education teacher (Determination  300.324(a)(3).
 of).
 Suspension and expulsion rates..........  300.170(b).
 
BENCHMARKS OR SHORT TERM OBJECTIVES........................  300.320(a)(2)(ii).
 
BENEFITS TO NONDISABLED (Permissive use of funds)..........  300.208(a)(1).
 
BIA (See ``Bureau of Indian Affairs'')
 
BLIND(NESS): Under ``Visual impairment''
 Access to instructional materials (see
 Sec. Sec. 300.172, 300.210(b)(3))
 Consideration of special factors by IEP   300.324(a)(2).
 Team.
 Definition..............................  300.8(c)(13).
 

[[Page 127]]

 
BRAILLE (see Sec. Sec. 300.29(b), 300.324(a)(2)(iii))
 
BUREAU OF INDIAN AFFAIRS (BIA)
 BIA funded schools......................  300.28(c).
 In definition of ``LEA''................  300.28(c).
 See also Sec. Sec. 300.21(c),
 300.713(b), (d), 300.714
 Use of funds............................  300.712(d).
 
BUSINESS DAY
 Definition..............................  300.11(b).
 See ``Timelines,'' ``Timelines--
 Discipline''
 
BY-PASS: Private school children with disabilities (see
 Sec. Sec. 300.190 through 300.198)
 
CALENDAR DAY
 Definition..............................  300.11(a).
 See ``Timelines,'' ``Timelines--
 Discipline''
 
CERTIFICATION
 Annual report of children served........  300.643.
 
CHANGE OF PLACEMENT BECAUSE OF DISCIPLINARY REMOVALS.......  300.536.
 
CHARTER SCHOOLS
 Applicability of this part to...........  300.2(b)(1)(ii).
 Definition..............................  300.7.
 Exception: joint establishment of         300.223(b).
 eligibility.
 In definition of ``Elementary school''..  300.13.
 In definition of ``LEA''................  300.28(b)(2).
 In definition of ``Public agency''......  300.33.
 In definition of ``Secondary school''...  300.36.
 State-level activities regarding charter  300.704(b)(4)(ix).
 schools.
 Treatment of charter schools and their    300.209.
 students.
 
CHIEF EXECUTIVE OFFICER (CEO)
 Adult prisons (Assigned by Governor)....  300.149(d).
 Methods of ensuring services (see Sec.
 300.154(a), (c))
 
CHILD COUNT
 Annual report of children served (see
 Sec. Sec. 300.640 through 300.646)
 Certification...........................  300.643.
 Criteria for............................  300.644.
 Dates for count.........................  300.641(a).
 Indian children.........................  300.712(b).
 LEA records of private school children..  300.132(c).
 Procedures for counting children served.  300.645(a).
 
CHILD FIND
 Basic requirement.......................  300.111(a).
 Children advancing from grade to grade..  300.111(c)(1).
 Developmental delay.....................  300.111(b).
 Highly mobile children..................  300.111(c)(2).
 Homeless children.......................  300.111(a)(1)(i).
 Indian children aged 3 through 5........  300.712(d)(1).
 Migrant children........................  300.111(c)(2).
 Private school children.................  300.131(b).
 Protections for children not determined   300.534.
 eligible.
 Secretaries of the Interior and Health    300.708(i)(2).
 and Human Services (Memo of agreement).
 
CHILD WITH A DISABILITY (CWD)
 Adversely affects educational
 performance (see Sec. 300.8(c)(1)(i), (c)(3), (c)(4)(i),
 (c)(5), (c)(6), (c)(8), (c)(9)(ii), (c)(11), (c)(12),
 (c)(13))
 Children experiencing developmental       300.8(b)(1).
 delay(s).

[[Page 128]]

 
 Children who need only a related service  300.8(a)(2).
 Definition..............................  300.8(a)(1).
 Individual disability terms (Defined)...  300.8(c).
 Requirement.............................  300.111(b).
 See ``Developmental delay(s)''
 
CHILD'S STATUS DURING PROCEEDINGS
 Discipline (see Sec. Sec.
 300.530(f)(2), 300.533)
 Pendency (Stay put).....................  300.518.
 
CHILDREN ADVANCING FROM GRADE TO GRADE
 Child find..............................  300.111(c)(1).
 FAPE....................................  300.101(c).
 
CHILDREN EXPERIENCING DEVELOPMENTAL DELAY(S) (See
 ``Developmental delay(s)'')
 
CHILDREN'S RIGHTS (Confidentiality)........................  300.625.
 
CIVIL ACTION--PROCEEDINGS..................................  300.516.
 Finality of review decision.............  300.514(d).
 Mediation...............................  300.506(b)(6)(i).
 Procedural safeguards notice............  300.504(c)(12).
 See ``Court(s)''
 
COCHLEAR IMPLANT (See ``Surgically implanted medical         300.34(b).
 device'').
 
CODE OF CONDUCT
 Case-by-case determination..............  300.530(a).
 Manifestation determination review......  300.530(e).
 Protections for children not determined   300.534(a).
 eligible.
 
COMMINGLING--PROHIBITION AGAINST...........................  300.162(b).
 
COMMUNITY-BASED WAIVERS (Public benefits or insurance).....  300.154(d)(2)(iii).
 
 COMPLAINT(S): DUE PROCESS
 Attorneys' fees.........................  300.517(a)(1).
 Civil action............................  300.516(a).
 Pendency................................  300.518(a).
 Private school children (Complaints)....  300.140(c).
 See ``Due process hearing(s) and
 reviews''
 
COMPLAINT(S): STATE COMPLAINT PROCEDURES (A-P)
 Adoption of State complaint procedures..  300.151(a).
 Complaint investigations (SEA             300.704(b)(3)(i).
 allocations for).
 Filing a complaint......................  300.153(a).
 Minimum State complaint procedures......  300.152.
 Private schools (State complaints)......  300.140.
 Procedural safeguards notice............  300.504(c).
 Provisions for services under by-pass...  300.191(d).
 Public agency failure to implement        300.152(c)(3).
 hearing decision.
 
COMPLAINT(S): STATE COMPLAINT PROCEDURES (Q-Z)
 See also Sec. Sec. 300.151 through
 300.153
 Time limit..............................  300.152(a).
 Waiver of nonsupplanting requirement....  300.163(c)(2).
 
COMPLIANCE--COMPLY (A-M)
 Child find requirements.................  300.111(a).
 Department procedures (If failure to      300.604(c).
 comply).
 FAPE requirement........................  300.101(a).
 LEA and State agency compliance.........  300.222(a).
 LRE (State funding mechanism)...........  300.114(b).
 Modifications of policies:..............
    [Omicron] Made by LEA or State agency..................  300.176(b).

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    [Omicron] Required by SEA..............................  300.220(c).
    [Omicron] Required by Secretary........................  300.176(c).
 Monitoring (See ``Monitor; Monitoring
 activities'');
 
COMPLIANCE--COMPLY (N-Z)
 Physical education......................  300.108.
 Private school placement by parents.....  300.148(e).
 Private school placements by public
 agencies:
    [Omicron] IEP requirement..............................  300.325(c).
    [Omicron] SEA (Monitor compliance).....................  300.147(a)
 Public participation requirements.......  300.165.
 SEA responsibility if LEA does not        300.227(a).
 comply.
 State funding mechanism (LRE)...........  300.114(b).
 
 COMPREHENSIVE EVALUATION................  300.304(c)(6).
 
CONDITION OF ASSISTANCE
 LEA eligibility.........................  300.200.
 State eligibility.......................  300.100.
 
CONFIDENTIALITY (A-C)
 Access rights...........................  300.613.
 Children's rights.......................  300.625.
 Consent.................................  300.622.
 
CONFIDENTIALITY (D-E)
Definitions:
    [Omicron] Destruction of information...................  300.611(a).
    [Omicron] Education records............................  300.611(b).
    [Omicron] Participating agency.........................  300.611(c).
 Department use of personally              300.627.
 identifiable information.
 Disciplinary information................  300.229.
 Enforcement by SEA......................  300.626.
 
CONFIDENTIALITY (F-Z)
 Family Educational Rights and Privacy
 Act:
    [Omicron] Children's rights............................  300.625.
    [Omicron] Disciplinary records.........................  300.535(b)(2).
    [Omicron] In definition of ``Education records''.......  300.611(b).
    [Omicron] Notice to parents............................  300.612(a)(3).
 Fees....................................  300.617.
 Hearing procedures......................  300.621.
 List of types and location of             300.616.
 information.
 Notice to parents.......................  300.612(a).
 Opportunity for a hearing...............  300.619.
 Parental authority to inspect and review  300.613(b).
 records.
 Record of access........................  300.614.
 Records on more than one child..........  300.615.
 Result of hearing.......................  300.620.
 Safeguards..............................  300.623.
 State eligibility requirement...........  300.123.
 
CONSENT (A-I)
 Confidentiality (Records to non-agency    300.622(a).
 officials).
 Definition..............................  300.9.
 IEP vs. IFSP............................  300.323(b)(2)(ii).
 Initial evaluations.....................  300.300(a).
 Initial provision of services...........  300.300(b).
 
CONSENT (J-Z)
 Not required:
    [Omicron] Before administering a test or other           300.300(d)(1)(ii).
     evaluation to all children.
    [Omicron] Before reviewing existing data...............  300.300(d)(1)(i).
    [Omicron] When screening for instructional purposes....  300.302.
 Private insurance (Accessing)...........  300.154(e)(1).

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 Reasonable efforts to obtain consent:
    [Omicron] For initial evaluation.......................  300.300(a)(1)(iii).
    [Omicron] For initial evaluations for wards of the       300.300(a)(2).
     State.
    [Omicron] For initial provision of services............  300.300(b)(2).
    [Omicron] Reasonable efforts requirements..............  300.300(d)(5).
 Reevaluations...........................  300.300(c)(2).
 Release of information from education     300.622.
 records.
 
CONSIDERATION OF SPECIAL FACTORS (by IEP Team).............  300.324(a)(2).
 
CONSISTENCY WITH STATE POLICIES: LEA.......................  300.201.
 
CONSTRUCTION
 Accessibility standards.................  300.718(b).
 Exception to maintenance of effort        300.204(d).
 (Termination of costly expenditures for construction).
 Private schools (No funds may be used     300.144(e).
 for).
 
CONSTRUCTION CLAUSES (A-I)
 Child find (Nothing requires classifying  300.111(d).
 children by disability).
 Civil action (Exhaust administrative      300.516(e).
 remedies under Part B before filing a civil action).
 Early intervening services..............  300.226(c).
 Funding mandated by State law...........  300.166.
 Hearing: right of parent to appeal        300.513(b).
 decision.
 Highly qualified SEA or LEA staff.......  300.156(e).
 Highly qualified teacher................  300.18(f).
 IEP (Inclusion of additional information  300.320(d)(1).
 beyond explicit requirements).
 IEP (Information in more than one         300.320(d)(2).
 component not required).
 
CONSTRUCTION CLAUSES (J-Z)
 Prohibition on mandatory medication.....  300.174(b).
 Referral to and action by law             300.535(a).
 enforcement and judicial authorities.
 Secretary's authority to monitor          300.609.
 enforcement under GEPA.
 State Medicaid agency (Nothing alters     300.154(h).
 requirements imposed under Titles XIX or XXI or other
 public benefits or insurance program).
 Transition service......................  300.324(c)(2).
 
CONSUMER PRICE INDEX For All Urban Consumers (regarding
 rate of inflation) (See Sec. Sec. 300.702(b),
 300.704(a)(2)(ii), (b)(2), 300.812(b)(2))
 
CONTENT OF IEP.............................................  300.320(a).
 
CONTINUUM OF ALTERNATIVE PLACEMENTS (See ``Least             300.115.
 restrictive environment'').
 
CONTROLLED SUBSTANCE (Definition)..........................  300.530(i)(1).
 
COORDINATION OF SERVICES
 Methods of ensuring services............  300.154(a).
 Secretary of the Interior...............  300.708(i)(1).
    [Omicron] Advisory board (Service coordination within    300.714(b)(1).
     BIA).
    [Omicron] Payments for children aged 3 through 5.......  300.712(a).
    [Omicron] Plan for coordination of services............  300.713.
 See ``Interagency agreements,''
 ``Interagency coordination''
 State advisory panel (Advise SEA on)....  300.169(e).
 Use of LEA funds for early intervening    300.208(a)(2).
 services.
 Use of SEA allocations for transition...  300.704(b)(4)(vi).

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CO-PAY OR DEDUCTIBLE (Public benefits or insurance)........  300.154(d)(2)(ii).
 
CORE ACADEMIC SUBJECTS
 Definition..............................  300.10.
 See ``Highly qualified special education  300.18.
 teachers''.
 
CORRECTIONAL FACILITIES
 Applicability of this part to...........  300.2(b)(1)(iv).
 Divided State agency responsibility.....  300.607.
 Exception to FAPE (Children in adult      300.102(a)(2).
 facilities).
 See also ``Adult prisons''
 State advisory panel (Representatives     300.168(a)(11).
 on).
 State juvenile-adult correctional         300.2(b)(1)(iv).
 facilities.
 Transfer of rights to children in.......  300.520(a)(2).
 
CORRECTIVE ACTION (PLAN)
 Corrective actions to achieve compliance
 (see Sec. Sec. 300.152(b)(2)(iii), 300.607)
 Monitoring activities...................  300.120(b)(2).
 Needs intervention by Secretary.........  300.604(b)(2)(i).
 State advisory panel (Advise SEA on)....  300.169(d).
 
COUNSELING SERVICES (Definition)...........................  300.34(c)(2).
 
COUNT (See ``Child count'')
 
COURT(S)
 Attorneys' fees.........................  300.517.
 Civil action............................  300.516.
 Court order:
    [Omicron] Exception to FAPE for certain ages...........  300.102(a)(1).
 Judicial review:
    [Omicron] By-pass......................................  300.197.
    [Omicron] Department procedures........................  300.184.
 New interpretation of Act by courts       300.176(c)(2).
 requiring modification.
 Reimbursement for private school
 placement (see Sec. 300.148(b) through (e))
 
CRIME (See ``Reporting a crime'')..........................  300.535.
 
CRITERIA (A-I)
 Child count.............................  300.644.
 Child eligibility (Determinant factor)..  300.306(b)(1).
 IEP Team (Public agency representative).  300.321(a)(4).
 Independent educational evaluation......  300.502.
 
CRITERIA (J-Z)
 Specific learning disability (see Sec.
 Sec. 300.307, 300.309)
 Surrogate parents.......................  300.519(d).
 
CURRENT PLACEMENT (Discipline)
 Authority of hearing officer............  300.532(b).
 Placement during appeals................  300.533.
 
DATA (A-L)
 Allocation of remaining funds to LEAs...  300.816(d).
 Average per-pupil expenditure             300.717(d).
 (Definition).
 By-pass (Provision of services under)...  300.191(c)(2).
 Determination of needed evaluation data.  300.305(c).
 Disaggregated data......................  300.704(b)(4)(xi).
 Evaluation data:
    [Omicron] Procedures for determining eligibility and     300.306(c).
     placement.
    [Omicron] Review of existing data......................  300.305(a)(1).
 Grants to States most recent data.......  300.703(c)(1)(ii).
 LRE (Placements--meaning of evaluation    300.116(a)(1).
 data.
 

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DATA (M-Z)
 Parental consent (Not required for        300.300(d)(1)(i).
 reviewing existing evaluation data).
 State advisory council (Advise SEA on)..  300.169(c).
 Suspension and expulsion rates..........  300.170(a).
 
DAY
 Business day (Definition)...............  300.11(b).
 Day (Calendar)..........................  300.11(a).
 Discipline (See ``Timelines--
 Discipline'')
 School day (Definition).................  300.11(c).
 See ``Timelines''.......................
 
DECREASE IN ENROLLMENT (Exception to LEA maintenance of      300.204(b).
 effort).
 
DECREASE IN FUNDS (To States)..............................  300.703(d).
 
DEDUCTIBLE OR CO-PAY (Public benefits or insurance)........  300.154(d)(2)(ii).
 
DEFINITIONS (A-D)
 Act.....................................  300.4.
 Assistive technology device.............  300.5.
 Assistive technology service............  300.6.
 At no cost..............................  300.39(b)(1).
 Audiology...............................  300.34(c)(1).
 Autism..................................  300.8(c)(1).
 Average per-pupil expenditure in public   300.717(d).
 elementary and secondary schools in the United States.
 Business day............................  300.11(b).
 Charter school..........................  300.7.
 Child with a disability.................  300.8(a)(1).
 Consent.................................  300.9.
 Controlled substance....................  300.530(i)(1).
 Core academic subjects..................  300.10.
 Counseling services.....................  300.34(c)(2).
 Day; business day; school day...........  300.11.
 Deaf-blindness..........................  300.8(c)(2).
 Deafness................................  300.8(c)(3).
 Destruction (Of information)............  300.611(a).
 Developmental delays(s).................  300.8(b).
 
DEFINITIONS (E-H)
 Early identification and assessment.....  300.34(c)(3).
 Education records.......................  300.611(b).
 Educational service agency..............  300.12.
 Elementary school.......................  300.13.
 Emotional disturbance...................  300.8(c)(4).
 Equipment...............................  300.14.
 Evaluation..............................  300.15.
 Excess costs............................  300.16.
 Extended school year services...........  300.106(b).
 Free appropriate public education.......  300.17.
 Freely associated States................  300.717(a).
 Hearing impairment......................  300.8(c)(5).
 Highly qualified special education        300.18(b).
 teacher.
 Homeless children.......................  300.19.
 
DEFINITIONS (I)
 IEP Team................................  300.23.
 Illegal drug............................  300.530(i)(2).
 Include.................................  300.20.
 Independent educational evaluation......  300.502(a)(3)(i).
 Indian..................................  300.21(a).

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 Indian tribe............................  300.21(b).
 Individualized education program (IEP)..  300.22.
 Individualized family service plan......  300.24.
 Infant or toddler with a disability.....  300.25.
 Institution of higher education.........  300.26.
 Interpreting services...................  300.34(c)(4).
 
DEFINITIONS (J-O)
 Limited English proficient (LEP)........  300.27.
 Local educational agency (LEA)..........  300.28.
 Medical services........................  300.34(c)(5).
 Mental retardation......................  300.8(c)(6).
 Multiple disabilities...................  300.8(c)(7).
 Native language.........................  300.29(a).
 Occupational therapy....................  300.34(c)(6).
 Orientation and mobility services.......  300.34(c)(7).
 Orthopedic impairment...................  300.8(c)(8).
 Other health impairment.................  300.8(c)(9).
 Outlying areas..........................  300.717(b).
 
DEFINITIONS (P-R)
 Parent..................................  300.30(a).
 Parent counseling and training..........  300.34(c)(8).
 Parent training and information center..  300.31.
 Parentally-placed private school          300.130.
 children with disabilities.
 Participating agency (as used in          300.611(c).
 ``Confidentiality'').
 Party or parties (Regarding procedures).  300.181(a).
 Personally identifiable.................  300.32.
 Physical education......................  300.39(b)(2).
 Physical therapy........................  300.34(c)(9).
 Psychological services..................  300.34(c)(10).
 Public agency...........................  300.33.
 Public expense..........................  300.502(a)(3)(ii).
 Recreation..............................  300.34(c)(11).
 Rehabilitation counseling services......  300.34(c)(12).
 Related services........................  300.34(a).
 
DEFINITIONS (S)
 School day..............................  300.11(c).
 School health services..................  300.34(c)(13).
 School nurse services...................  300.34(c)(13).
 Scientifically based research...........  300.35.
 Secondary school........................  300.36.
 Secretary...............................  300.38.
 Serious bodily injury...................  300.530(i)(3).
 Services plan...........................  300.37.
 Social work services in schools.........  300.34(c)(14).
 Special education.......................  300.39(a).
 Specially designed instruction..........  300.39(b)(3).
 Specific learning disability............  300.8(c)(10).
 Speech-language pathology services......  300.34(c)(15).
 Speech or language impairment...........  300.8(c)(11).
 State...................................  300.40.
 State (Special definition)..............  300.717(c).
 State educational agency (SEA)..........  300.41.
 Supplementary aids and services.........  300.42.
 
DEFINITIONS (T-Z)
 Transition services.....................  300.43.
 Transportation..........................  300.34(c)(16).
 Traumatic brain injury..................  300.8(c)(12).
 Travel training.........................  300.38(b)(4).

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 Universal design........................  300.44.
 Visual impairment including blindness...  300.8(c)(13).
 Vocational education....................  300.39(b)(5).
 Ward of the State.......................  300.45.
 Weapon..................................  300.530(i)(4).
 
DEPARTMENT OF LABOR, Bureau of Labor Statistics (Regarding
 rate of inflation) (see Sec. Sec. 300.702(b),
 300.704(a)(2)(ii), (b)(2), 300.812(b)(2))
 
DEPARTMENT (U.S. Department of Education)
 Enforcement: hearing procedures (see
 Sec. Sec. 300.178 through 300.184)
 Monitoring (Regarding Secretary of the    300.708(a).
 Interior).
 Personally identifiable information (Use  300.627.
 of).
 
DESTRUCTION OF INFORMATION.................................  300.624(b).
 Definition..............................  300.611(a).
 
DETERMINANT FACTOR for eligibility determination
 Lack of instruction in reading or math
 (see Sec. 300.306(b)(1)(i), (b)(1)(ii))
 Limited English proficiency.............  300.306(b)(1)(iii).
 
DEVELOPMENT, REVIEW, AND REVISION OF IEP...................  300.324.
 
DEVELOPMENTAL DELAY(S)
 In definition of ``Child with a           300.8(b).
 disability''.
 Requirements for using ``Developmental    300.111(b).
 delay''.
 State definition........................  300.111(b).
 Using specified disability categories...  300.111(d).
 
DIABETES...................................................  300.8(c)(9)(i).
 
DIRECT SERVICES
 For children in private schools (see
 Sec. Sec. 300.132(a); 300.133(a); 300.134(d)(1))
 Nature and location of services.........  300.227(b).
 Payment by Secretary of the Interior....  300.712(d).
 SEA (Additional information)............  300.175(a).
 State-level activities..................  300.704(b)(4)(i).
 Use of LEA allocations for..............  300.227(a).
 
DISABILITY: ADVERSELY AFFECTS EDUCATIONAL PERFORMANCE (See
 ``Adversely affects educational performance'')
 
DISAGGREGATED DATA
 Assessment results for subgroup of        300.704(b)(4)(xi).
 children with disabilities.
 For suspension and expulsion by race and  300.170(a).
 ethnicity.
 
DISCIPLINE (A-B)
 Alternative educational setting (see
 Sec. Sec. 300.530(d)(1), (d)(2), (d)(4), (g), 300.531,
 300.533)
 Appeal..................................  300.532(a).
 Behavioral interventions--intervention    300.530(f).
 plan.
 
DISCIPLINE (C-H)
 Change of placements for disciplinary     300.536.
 removals.
 Child's status during due process         300.518.
 hearings.
 Determination of setting................  300.531.
 Expedited due process hearings..........  300.532(c).
 Functional behavioral assessment (see
 Sec. 300.530(d)(1)(ii), (f)(1)(i)).
 Hearing officer (authority of) (see Sec.
  Sec. 300.532(b), 300.533).
 
DISCIPLINE (I-Z)
 IEP Team (relevant members) (see Sec.
 Sec. 300.530(e)(1), (f), 300.531).

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 Interim alternative educational setting
 (see Sec. Sec. 300.530(b), (d)(2), (g), 300.531,
 300.532(b)(2)(ii), 300.533).
 Manifestation determination.............  300.530(e).
 Placement during appeals................  300.533.
 Protections for children not determined   300.534.
 eligible.
 Referral to and action by law             300.535.
 enforcement and judicial authorities.
 School personnel (Authority of).........  300.530(b).
 See ``Timelines--Discipline''...........
 
DISCLOSURE
 Additional disclosure of information      300.512(b).
 requirement.
 Consent required before disclosing:
    [Omicron] Education records to public benefits or        300.154(d)(2)(iv).
     insurance agencies.
    [Omicron] Personal information to non-agency officials.  300.622(a).
 Notice on disclosure of evaluation        300.504(c)(10).
 results.
 Policies on disclosing information to     300.612(a)(3).
 3rd parties.
 Prohibit evidence not disclosed.........  300.512(a)(3).
 
DISPROPORTIONALITY.........................................  300.646.
 
DISPUTES
 Interagency disputes (Methods of
 ensuring services):
    [Omicron] Ensure services during pendency of dispute...  300.154(a).
    [Omicron] Procedures for resolving.....................  300.154(a)(3).
 Mediation (see also Sec. 300.506.
 300.532(c)(3)).
    [Omicron] Attorneys' fees for..........................  300.517(c)(2)(ii).
    [Omicron] During discipline appeal process.............  300.532(c)(3).
    [Omicron] During resolution process (see Sec.
     300.510(b)(3), (c)(3))
    [Omicron] Enforcement of agreement (see Sec. Sec.
     300.506(b)(7), 300.510(d)(2), 300.537)
 
DIVIDED STATE AGENCY RESPONSIBILITY (Adult prisons)........  300.607.
 
DIVORCE--SEPARATION (Authority to review records)..........  300.613(c).
 
DROPOUT RATES (Performance indicators).....................  300.157(a)(3).
 
DUE PROCESS HEARING(S) AND REVIEWS (A-E)
 Agency responsible for conducting         300.511(b).
 hearing.
 Appeal of decisions; impartial review...  300.514(b).
 Attorneys' fees.........................  300.517(a).
 Basic requirements (see Sec. Sec.
 300.507 through 300.514)
 Child's status during proceedings         300.518.
 (Pendency).
    [Omicron] Parent request for hearing (Discipline)......  300.532(a).
 Civil action............................  300.516(a).
 Evaluations disclosed at least 5          300.512(a)(3).
 business days before hearing.
 Expedited due process hearings            300.532(c).
 (Discipline).
 
DUE PROCESS HEARING(S) AND REVIEWS (F-I)
 Failure to implement a due process        300.152(c)(3).
 hearing decision.
 Finality of decision; appeal; impartial   300.514.
 review.
 Findings of fact and decisions (see Sec.
   300.512(a)(5), (c)(3)):
    [Omicron] To State advisory panel (see Sec. Sec.
     300.513(d), 300.514(c))
 Hearing rights..........................  300.512(a).
 Impartial hearing officer...............  300.511(c).
    [Omicron] See ``Hearing officer(s)''
 
DUE PROCESS HEARING(S) AND REVIEWS (J-Z)
 Parental rights at hearings.............  300.512(c).

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 Party notice to other party.............  300.508(c).
    [Omicron] Model form to assist parents.................  300.509.
 Party request for hearing (Discipline)..  300.532(a).
 Pendency (Stay put).....................  300.518.
 Prohibit evidence not introduced 5        300.512(a)(3).
 business days before hearing.
 Record of hearing.......................  300.512(c)(3).
 See ``Civil action--proceedings,''
 ``Court(s)'' ``Procedural safeguards,'' ``Timelines''
 Timelines and convenience of hearings--
 reviews (see Sec. Sec. 300.506(b)(5), 300.511(e),
 300.516(b))
 
EARLY IDENTIFICATION AND ASSESSMENT (Definition)...........  300.34(c)(3).
 
EARLY INTERVENING SERVICES.................................  300.226.
 Adjustment to local fiscal efforts......  300.205(d).
 Do not limit/create right to FAPE.......  300.226(c).
 For children not currently identified as  300.226(a).
 needing special education or related services.
 Permissive use of funds.................  300.208(a)(2).
 Scientifically based literacy             300.226(b).
 instruction.
 Use of funds:
    [Omicron] By LEA.......................................  300.226(a).
    [Omicron] By Secretary of the Interior.................  300.711.
 
EDUCATION RECORDS (Definition).............................  300.611(b).
 
EDUCATIONAL PLACEMENTS (LRE)...............................  300.114.
 
EDUCATIONAL SERVICE AGENCY (ESA)
 Definition..............................  300.12.
 In definition of ``LEA''................  300.28(b)(1).
 Joint establishment of eligibility        300.224(b).
 (Regarding ESAs).
    [Omicron] Additional requirements (Regarding LRE)......  300.224(c).
 
ELEMENTARY AND SECONDARY EDUCATION ACT OF 1965 (ESEA)
 Coordination of early intervening         300.226(e).
 services.
 Excess cost requirement.................  300.202(b).
 Schoolwide programs.....................  300.206(a).
 
ELIGIBILITY (CHILD--STUDENT) (A-G)
 Additional eligibility requirements (see
 Sec. Sec. 300.121 through 300.124, 300.307 through
 300.311)
 Children with disabilities in adult       300.324(d).
 prisons.
 Children with specific learning           300.311(a).
 disabilities (Documentation of eligibility determination).
 Determinant factor for..................  300.306(b)(1).
 Determination of eligibility............  300.306.
 Developmental delay (Non-use of term by   300.111(b)(iv).
 LEA if not adopted by State).
 Documentation of eligibility (To parent)  300.306(a)(2).
 Graduation with regular diploma:
 termination (see Sec. Sec. 300.102(a)(3),
 300.305(e)(2)).
 
ELIGIBILITY (CHILD--STUDENT) (H-Z)
 Lack of instruction in reading or math..  300.306(b).
 Limited English proficiency.............  300.306(b).
 Public benefits or insurance (Risk loss   Sec. 300.154(d)(2) (iii).
 of eligibility).
 Termination of eligibility (see Sec.
 Sec. 300.204(c), 300.305(e)(2))
 Transfer of rights (Special rule).......  300.520(b).
 
ELIGIBILITY (PUBLIC AGENCIES)
 Hearings related to (See ``Hearings--
 Hearing procedures'')

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 Joint establishment of (see Sec. Sec.
 300.202(b)(3), 300.223(a), 300.224(a))
 LEA (See ``LEA eligibility'') Secretary   300.712(e).
 of the Interior.
 State (See ``State eligibility'')
 State agency eligibility................  300.228.
    [Omicron] See ``State agencies''
 
EMOTIONAL DISTURBANCE (Definition).........................  300.8(c)(4).
 
ENFORCEMENT
 Department procedures (see Sec. Sec.
 300.600, 300.604, 300.605)
 Referral to law enforcement authorities.  300.535.
 State policies and procedures:
    [Omicron] Enforcement mechanisms.......................  300.537.
    [Omicron] LEA not meeting requirements.................  300.608.
    [Omicron] Regarding confidentiality....................  300.626.
 
EPILEPSY...................................................  300.8(c)(9)(i).
 
EQUIPMENT
 Acquisition of..........................  300.718(a).
 Definition..............................  300.14.
 Exception to maintenance of effort......  300.204(d).
 Placement in private school.............  300.144.
 
EVALUATION (A-G)
 Assessments in (see Sec. Sec.
 300.304(b), (c) 300.305(c)).
 Basic requirements (see Sec. Sec.
 300.301, 300.303, 300.324)
 Comprehensive (Identify all special       300.304(c)(6).
 education needs).
 Definition of...........................  300.15.
 Evaluation procedures...................  300.304.
 Evaluation report to parents............  300.306(a)(2).
 Existing evaluation data (Review of)....  300.305(a)(1).
 Graduation (Evaluation not required for)  300.305(e)(2).
 
EVALUATION (H-Z)
 Independent educational evaluation (IEE)  300.502.
 Initial evaluation (see Sec. Sec.
 300.301, 300.305)
 Observation in determining SLD..........  300.310.
 Parent consent..........................  300.300.
 Parent right to evaluation at public      300.502(b).
 expense.
 Reevaluation............................  300.303.
 
EXCEPTION
 Charter schools exception (Joint          300.223(b).
 eligibility).
 For prior local policies and procedures.  300.220.
 For prior State policies and procedures.  300.176(a).
 To FAPE:
    [Omicron] For certain ages.............................  300.102.
    [Omicron] For graduating with a regular diploma........  300.102 (a)(3)(i).
    [Omicron] For children in adult prisons (see Sec. Sec.
       300.102(a)(2), 300.324(d)).
  To maintenance of effort...............  300.204.
 To reimbursement for parental placement.  300.148(e).
 
EXCESS COSTS
 Calculation of (see appendix A--Excess
 Costs Calculation)
 Definition..............................  300.16.
 Excess cost requirement.................  300.202(b)
 Joint establishment of eligibility......  300.202(b)(3)
 LEA requirement.........................  300.202(b)
 Limitation on use of Part B funds.......  300.202(b)
 Meeting the excess cost requirement.....  300.202(b)(2)
 See also Sec. Sec. 300.163(a),
 300.175(b), 300.202(a), 300.227(a)(2)(ii)
 

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EXISTING EVALUATION DATA (Review of).......................  300.305(a)(1).
 
EXPEDITED DUE PROCESS HEARINGS.............................  300.532(c).
 Authority of hearing officer............  300.532(b).
 Party appeal (Hearing requested by        300.532(a).
 parents).
 
EXPULSION (See ``Suspension and expulsion'')
 
EXTENDED SCHOOL YEAR SERVICES..............................  300.106.
 
EXTRACURRICULAR
 IEP content.............................  300.320(a)(4)(ii).
 In supplementary aids and services......  300.42.
 Nonacademic services....................  300.107.
 Nonacademic settings....................  300.117.
 
FACILITIES
 Alteration of...........................  300.718.
 Children in private schools or
 facilities (see Sec. Sec. 300.130, 300.142(a),
 300.144(b), (c), 300.147(c))
 Construction of.........................  300.718.
 Physical education (In separate           300.108(d).
 facilities).
 Private schools and facilities..........  300.2(c).
 See also ``Correctional facilities''
 Termination of expenses for construction  300.204(d).
 of.
 
FAMILY EDUCATIONAL RIGHTS AND PRIVACY ACT (FERPA) (See
 ``Confidentiality'')
 
FAPE (A-G)
 Definition..............................  300.17.
 Documentation of exceptions.............  300.102(b).
 Exception to FAPE:
    [Omicron] For certain ages.............................  300.102(a).
    [Omicron] For children receiving early intervention      300.102(a)(4).
     services.
    [Omicron] For children graduating with a regular         300.102(a)(3).
     diploma.
    [Omicron] For children in adult correctional facilities  300.102(a)(2).
 For children:
    [Omicron] Advancing from grade to grade................  300.101(c).
    [Omicron] Beginning at age 3...........................  300.101(b).
    [Omicron] On Indian reservations.......................  300.707(c).
    [Omicron] Suspended or expelled from school............  300.101(a).
 General requirement.....................  300.101(a).
 
FAPE (H-Z)
 Methods and payments....................  300.103.
 Private school children with
 disabilities:
    [Omicron] Placed by parents when FAPE is at issue......  300.148.
    [Omicron] Placed in or referred by public agencies (see
     Sec. Sec. 300.145 through 300.147)
 Reallocation of LEA funds (FAPE           300.705(c).
 adequately provided).
 Services (and placement) for FAPE:
    [Omicron] Based on child's needs (Not disability         300.304(c)(6).
     category).
 State eligibility condition.............  300.100.
FAS (Freely associated States).............................  300.717(a).
 
FAX (FACSIMILE TRANSMISSION)
 Department procedures (see Sec. Sec.
 300.183, 300.196(a) through (e))
 
FERPA (Family Educational Rights and Privacy Act) (See
 ``Confidentiality'')
 
FILING A CLAIM (Private insurance).........................  300.154(e).
 
FILING A COMPLAINT (State complaint procedures)............  300.153.
 
FILING REQUIREMENTS
 By-pass (Regarding private school         300.196.
 children).

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 Department procedures...................  300.183.
 See Sec. Sec. 300.178 through
 300.186.
 
FINALITY OF DECISION.......................................  300.514.
 
FORMULA
 Allocations to LEAs.....................  300.705(b).
 Allocations to States...................  300.703.
 Allocation to States when by-pass is      300.191.
 implemented.
 Allocation to States regarding section
 619 (see Sec. Sec. 300.807, 300.810).
 Parentally-placed private school          300.133.
 children.
 SEA set aside funds.....................  300.704(b).
 See also Sec. 300.171(a).
 
FOSTER PARENT..............................................  300.30(a)(2).
 See also Sec. 300.45(b).
 
FREELY ASSOCIATED STATES AND OUTLYING AREAS
 Funding for.............................  300.701(a).
 Purpose of grants.......................  300.700(a).
 
FULL EDUCATIONAL OPPORTUNITY GOAL..........................  300.109.
 
FUNCTIONAL BEHAVIORAL ASSESSMENT (see Sec.
 300.530(d)(1)(ii), (f)(1)(i))
 
FUNDING MECHANISM: LRE.....................................  300.114(b).
 
FUNDS (See ``Use of funds'')
 
GENERAL CURRICULUM
 Discipline (Continue participating in)..  300.530(d)(1)(i).
 Evaluation procedures:
    [Omicron] Be involved and progress in..................  300.304(b)(1)(ii).
    [Omicron] Review of existing evaluation data...........  300.305(a)(1).
 IEPs:
    [Omicron] Measurable annual goals......................  300.320(a)(2)(i).
    [Omicron] Present levels of educational performance....  300.320(a)(1).
    [Omicron] Review and revision of IEPs..................  300.324(b)(1)(ii).
    [Omicron] Special education and related services.......  300.320(a)(4)(ii).
 IEP Team................................  300.321(a)(4)(ii).
 Specially designed instruction            300.39(b)(3).
 (Definition).
 
GOALS
Annual goals (See ``IEP'' and ``Annual goals'').
 Performance goals and indicators........  300.157.
    [Omicron] State and local activities to meet...........  300.814(c).
    [Omicron] Use of State-level funds to meet.............  300.704(b)(4)(x).
 
GOVERNOR (Adult prisons)...................................  300.149(d).
 See also ``Chief executive officer''.
 
GRADUATION
 Evaluation not required for.............  300.305(e)(2).
 Exception to FAPE.......................  300.102(a)(3)(i).
 Graduation rates as performance           300.157(a)(3).
 indicators.
 Written prior notice required...........  300.102(a)(3)(iii).
 
GRANDPARENT OR STEPPARENT (In definition of ``Parent'')....  300.30(a)(4).
 
GRANTS
 Grants to States:.......................  300.700.
    [Omicron] Maximum amount...............................  300.700(b).
    [Omicron] Purpose of...................................  300.700(a).
 See ``Subgrants''.
 
GUARDIAN (In definition of ``Parent'').....................  300.30(a)(3).
 

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GUARDIANSHIP, SEPARATION, AND DIVORCE (Regarding parent's    300.613(c).
 authority to review records).
 
HEALTH AND HUMAN SERVICES (Secretary of)...................  300.708(i)(1).
 
HEARING AIDS: Proper functioning of........................  300.113(a).
 
HEARING IMPAIRMENT
 Definition..............................  300.8(c)(5).
 Related services, audiology.............  300.34(c)(1).
HEARING OFFICER(S) (A-B)
 Additional disclosure of information      300.512(b).
 requirement.
 Attorneys' fees.........................  300.517(c)(2)(i).
 Authority of (Discipline)...............  300.532(b).
    [Omicron] Basis of decisions...........................  300.513(a).
 
HEARING OFFICER(S) (C-Z)
 Change of placement:
    [Omicron] Hearing officer decision agrees with parents.  300.518(d).
    [Omicron] Hearing officer may order....................  300.532(b)(2)(ii).
 Expedited due process hearing             300.532(c).
 (Discipline).
 Impartial hearing officer...............  300.511(c).
 Parent appeal (Discipline)..............  300.532(a).
 Placement during appeals................  300.533.
 Private school placement when FAPE is at  300.148(b).
 issue.
 Reimbursement for private school          300.148(c).
 placement by parents.
 Requests for evaluations by.............  300.502(d).
 
HEARING RIGHTS.............................................  300.512.
 
HEARINGS--HEARING PROCEDURES
 Due process (See ``Due process
 hearings'').
 Public hearings on policies and           300.165(a).
 procedures.
 State and local eligibility:
    [Omicron] LEA eligibility..............................  300.155.
    [Omicron] Notification in case of LEA or State           300.221.
     ineligibility.
    [Omicron] State eligibility (Notice and hearing) (see
     Sec. Sec. 300.178, 300.179, 300.181).
 
HEART CONDITION............................................  300.8(c)(9)(i).
 
HEIGHTENED ALERTNESS TO ENVIRONMENTAL STIMULI (In ``Other    300.8(c)(9).
 health impairment'').
HIGH COST FUND (LEA).......................................  300.704(c).
 
HIGHLY MOBILE CHILDREN (e.g., homeless and migrant           300.111(c)(2).
 children).
 
HIGHLY QUALIFIED TEACHER (A-Q)
 Alternative route to certification......  300.18(b)(2).
 Definition of...........................  300.18.
 Private school teachers.................  300.18(h).
 
HIGHLY QUALIFIED TEACHER (R-Z)
 Requirements for in general.............  300.18(b).
 Requirements for teaching to alternate    300.18(c).
 academic achievement standards.
 Requirements for teaching multiple        300.18(d).
 subjects.
 Personnel qualifications................  300.156(c).
 
HIGH NEED CHILD............................................  300.704(c)(3)(i).
 
HOMELESS CHILDREN
 Child find..............................  300.111(a)(1)(i).
 Definition of...........................  300.19.
 McKinney-Vento Homeless Assistance Act
 (see Sec. Sec. 300.19, 300.149(a)(3),
 300.153(b)(4)(iii), 300.168(a)(5), 300.508(b)(4)).
 Surrogate parents for...................  300.519(a)(4).
 

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HYPERACTIVITY (Attention deficit hyperactivity disorder)...  300.8(c)(9)(i).
 
INAPPLICABILITY (Of requirements that prohibit commingling   300.704(d).
 and supplanting of funds).
 
IEE (See ``Independent educational evaluation'')
 
IEP (A-I)
 Agency responsibilities for transition    300.324(c)(1).
 services.
 Basic requirements (see Sec. Sec.
 300.320 through 300.324).
 Child participation when considering      300.321(b)(1).
 transition.
 Consideration of special factors........  300.324(a)(2).
 Consolidation of IEP Team meetings......  300.324(a)(5).
 Content of IEPs.........................  300.320(a).
 Definition (see Sec. Sec. 300.22,
 300.320).
 Development, review, and revision of....  300.324.
 IEP or IFSP for children aged 3 through   300.323(b).
 5.
 IEP Team................................  300.321.
 
IEP (J-Z)
 Modifications of IEP or placement (FAPE   300.324(d)(2)(i).
 for children in adult prisons).
 Modify/Amend without convening meeting
 (see Sec. 300.324(a)(4), (a)(6)).
 Parent participation....................  300.322.
 Alternative means.......................  300.328.
 Part C coordinator involvement..........  300.321(f).
 Private school placements by public       300.325(a)(1).
 agencies.
 Regular education teacher (See ``IEP
 Team'').
 Review and revision of IEPs.............  300.324(b).
 SEA responsibility regarding private      300.325(c).
 school.
 State eligibility requirement...........  300.112.
 Transition services.....................  300.320(b).
 When IEPs must be in effect.............  300.323.
 
IEP TEAM...................................................  300.321.
 Alternative educational setting           300.531.
 (Determined by).
 Consideration of special factors........  300.324(a)(2).
    [Omicron] Assistive technology.........................  300.324(a)(2)(v).
    [Omicron] Behavioral interventions.....................  300.324(a)(2)(i).
    [Omicron] Braille needs................................  300.324(a)(2)(iii).
    [Omicron] Communication needs (Deafness and other        300.324(a)(2)(iv).
     needs).
    [Omicron] Limited English proficiency..................  300.324(a)(2)(ii).
 Determination of knowledge or special     300.321(c).
 expertise.
 Discipline procedures (see Sec. Sec.
 300.530(e), 300.531).
 Manifestation determination.............  300.530(e).
 Other individuals who have knowledge or   300.321(a)(6).
 special expertise (At parent or agency discretion).
 Participation by private school (public   300.325(a).
 agency placement).
 Regular education teacher (see Sec.
 Sec. 300.321(a)(2), 300.324(a)(3)).
 
IFSP (INDIVIDUALIZED FAMILY SERVICE PLAN)
 Definition..............................  300.24.
 Transition from Part C..................  300.124.
 IFSP vs. IEP............................  300.323(b).
 
ILLEGAL DRUG (Definition--discipline)......................  300.530(i)(2).
 
IMPARTIAL DUE PROCESS HEARING..............................  300.511.
 See ``Due process hearings and
 reviews''.
 
IMPARTIAL HEARING OFFICER..................................  300.511(c).
 
 IMPARTIALITY OF MEDIATOR..................................  300.506(b)(1).
 

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INCIDENTAL BENEFITS (Permissive use of funds)..............  300.208.
 
INCIDENTAL FEES (In definition of ``at no cost'' under       300.39(b)(1).
 ``Special education'').
 
INCLUDE (Definition).......................................  300.20.
 
INDEPENDENT EDUCATIONAL EVALUATION (IEE)...................  300.502.
 Agency criteria (see Sec.
 300.502(a)(2), (b)(2)(ii), (c)(1), (e)).
 Definition..............................  300.502(a)(3)(i).
 Parent-initiated evaluations............  300.502(c).
 Parent right to.........................  300.502(a)(1).
 Procedural safeguards notice............  300.504(c)(1).
 Public expense (Definition under IEE)...  300.502(a)(3)(ii).
 Request by hearing officers.............  300.502(d).
 Use as evidence at hearing..............  300.502(c)(2).
 
INDIAN; INDIAN CHILDREN
 Child find for Indian children aged 3     300.712(d).
 through 5.
 Definition of ``Indian''................  300.21(a).
 Definition of ``Indian tribe''..........  300.21(b).
 Early intervening services..............  300.711.
 Payments and use of amounts for:
    [Omicron] Education and services for children aged 3     300.712(a).
     through 5.
    [Omicron] Education of Indian children.................  300.707.
 Plan for coordination of services.......  300.713.
 Submission of information by Secretary    300.708.
 of Interior.
 
INDICATORS.................................................  300.157(b).
 See ``Performance goals and
 indicators''.
 
INDIVIDUALIZED EDUCATION PROGRAM (See ``IEP'')
 
INDIVIDUALIZED FAMILY SERVICE PLAN (See ``IFSP'')
 
INFORMED CONSENT (See ``Consent'')
 
INITIAL EVALUATION.........................................  300.301.
 Consent before conducting...............  300.300(a)(1)(i).
    [Omicron] For ward of State............................  300.300(a)(2).
    [Omicron] Not construed as consent for initial           300.300(a)(1)(ii).
     placement.
    [Omicron] When not required............................  300.300(a)(2).
 Review of existing evaluation data......  300.305(a).
 
INSTITUTION OF HIGHER EDUCATION
 Definition..............................  300.26.
 
INSTRUCTIONAL MATERIALS
 Access to...............................  300.172.
 Audio-visual materials..................  300.14(b).
 LEA purchase of.........................  300.210.
 NIMAC:
    [Omicron] SEA coordination with........................  300.172(c).
    [Omicron] SEA rights and responsibilities if not         300.172(b).
     coordinating.
 
INSURANCE
 Community-based waivers (see Sec.
 300.154(d)(2)(iii)(D)).
 Financial costs.........................  300.154(f)(2).
 Financial responsibility of LEA/SEA.....  300.154(a)(1).
 Out-of-pocket expense...................  300.154(d)(2)(ii).
 Private insurance.......................  300.154(e).
 Public benefits or insurance............  300.154(d).
 Risk of loss of eligibility (see Sec.
 300.154(d)(2)(iii)(D)).
 
INTERAGENCY AGREEMENTS
 FAPE methods and payments (Joint          300.103(a).
 agreements).

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 LRE (Children in public/private           300.114(a)(2)(i).
 institutions).
 Methods of ensuring services............  300.154(a).
 SEA responsibility for general            300.149.
 supervision.
 Secretary of Interior--with Health and    300.708(i)(1).
 Human Services Secretary.
    [Omicron] Cooperative agreements (BIA and other          300.712(d).
     agencies).
 
INTERAGENCY COORDINATION (See ``Coordination of services,''
 ``Interagency agreements'')
 
INTERAGENCY DISPUTES.......................................  300.154(a)(3).
 
INTERAGENCY RESPONSIBILITIES (Transition services).........  300.320(b).
 
INTERIM ALTERNATIVE EDUCATIONAL SETTING (See Sec. Sec.
 300.530(b), 300.531, 300.532(b)(2)(ii), 300.533)
 
INTERPRETING SERVICES
 As a related service....................  300.34(a).
 Definition..............................  300.34(c)(4).
 
JOINT ESTABLISHMENT OF ELIGIBILITY (LEAs)..................  300.223.
 See also Sec. Sec. 300.202(b)(3),
 300.224.
 
JUDICIAL
 Authorities (Referral to)...............  300.535.
 Finding of unreasonableness.............  300.148(d)(3).
 Proceeding (During pendency)............  300.518(a).
 Review..................................  300.197.
 See also:
    [Omicron] Civil action (see Sec. Sec.
     300.504(c)(12), 300.514(d), 300.516).
    [Omicron] Court(s) (see Sec. Sec. 300.102(a)(1),
     300.184, 300.148(c), (d)(3), 300.197, 300.516(a), (c),
     (d), 300.517(a), (c)).
 
JUVENILE-ADULT CORRECTIONS FACILITIES (See ``Correctional
 facilities'')
 
LAW ENFORCEMENT AND JUDICIAL AUTHORITIES
 Referral to.............................  300.535.
 
LEA (LOCAL EDUCATIONAL AGENCY) (A-C)
 Allocations to LEAs.....................  300.705(b).
    [Omicron] Reallocation of funds (If LEA is adequately    300.705(c).
     providing FAPE).
 Charter schools and LEAs (See ``Charter
 schools'').
 Child count--LEAs:
    [Omicron] Parentally-placed private school children      300.133(c).
     with disabilities.
    [Omicron] Procedures for counting all children served    300.645.
     (Annual report).
    [Omicron] See also ``Child count''.
 Child find--LEAs:
    [Omicron] Parentally-placed private school children      300.131.
     with disabilities.
    [Omicron] See also ``Child find''......................
 Compliance (LEA and State agency).......  300.222.
 Consistency of LEA policies with State    300.201.
 policies.
 
LEA (D-G)
 Definition of LEA.......................  300.28.
 Developmental delay: Use of term by LEAs
 (see Sec. 300.111(b)(2) through (b)(4)).
 Direct services by SEA (If LEA is unable  300.227.
 or unwilling to serve CWDs, etc.).
 Discipline and LEAs (See
 ``Discipline'').
 Eligibility of LEA:

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    [Omicron] Condition of assistance (see Sec. Sec.
     300.200 through 300.213).
    [Omicron] Exception for prior local plans..............  300.220.
    [Omicron] Ineligibility of LEA (Notice by SEA).........  300.221.
    [Omicron] SEA hearings on LEA eligibility..............  300.155.
 Excess cost requirement--LEA:...........  300.202(b).
    [Omicron] Use of amounts for excess costs..............  300.202(a)(2).
    [Omicron] See also ``Excess costs''.
 
LEA (H-L)
 Hearings relating to LEA eligibility....  300.155.
 Information for SEA.....................  300.211.
 Instructional materials (Purchase of)...  300.210.
 Joint establishment of eligibility (By    300.202(b)(3).
 two or more LEAs).
    [Omicron] See also Sec. Sec. 300.223, 300.224.......
 LEA and State agency compliance.........  300.222.
 LEA policies (Modification of)..........  300.220(b).
    [Omicron] See ``LEA eligibility,'' ``Eligibility of
     LEA''.
 
LEA (M-P)
 Maintenance of effort regarding LEAs
 (See ``Maintenance of effort'').
 Methods of ensuring services--LEAs (see
 Sec. 300.154(a)(1) through (a)(4), (b)).
 Migratory children with disabilities      300.213.
 (Linkage with records under ESEA).
 Modification of policies by LEA.........  300.220(b).
 Noncompliance of LEA (SEA determination)  300.222(a).
 Notice requirement (On LEA).............  300.222(b).
 Purchase of instructional materials.....  300.210.
 Personnel shortages (Use of funds to      300.704(b)(4)(vii).
 assist LEAs in meeting).
 Public information (By LEA).............  300.212.
 
LEA (R-T)
 Reallocation of LEA funds (If LEA is      300.705(c).
 adequately providing FAPE).
 Reimbursement of LEAs by other agencies
 (See ``Methods of ensuring services,'' Sec.
 300.154(a)(2) through (a)(3), (b)(2)).
 Review and revision of policies.........  300.170(b).
 SEA reduction in payments to LEA........  300.222(a).
 SEA use of LEA allocations for direct     300.227.
 services.
 Show cause hearing (By-pass requirement)  300.194.
 State-level nonsupplanting..............  300.162(c).
 Subgrants to LEAs.......................  300.705(a).
 Suspension and expulsion rates--LEAs....  300.170(a)(1).
 Transition planning conferences (Part C   300.124(c).
 to B).
 
LEA (U-Z)
 Use of amounts (by LEA).................  300.202.
    [Omicron] (See ``Permissive use of funds'').
 Use of SEA allocations (Regarding LEAs).  300.704.
    [Omicron] For capacity-building, etc. (see Sec.
     300.704(b)(4)(viii)).
    [Omicron] To assist in meeting personnel shortages (see
     Sec. 300.704(b)(4)(vii)).
 
LEA ELIGIBILITY (A-I)
 Adjustment to local fiscal efforts in     300.205.
 certain fiscal years.
 Charter schools--public:

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    [Omicron] Rights of children with disabilities who       300.209(a).
     attend public charter schools.
    [Omicron] That are public schools of the LEA...........  300.209(b).
    [Omicron] That are LEAs................................  300.209(c).
    [Omicron] That are not an LEA or a school that is part   300.209(d).
     of an LEA.
    [Omicron] Treatment of charter schools and their         300.209.
     students.
    [Omicron] See also ``Charter schools''.
 Condition of assistance.................  300.200.
    [Omicron] See Sec. Sec. 300.201 through 300.213.
 Consistency with State policies.........  300.201.
 Information for SEA.....................  300.211.
 
LEA ELIGIBILITY (M-Z)
 Maintenance of effort...................  300.203.
    [Omicron] Exception to.................................  300.204.
 Migratory children with disabilities--    300.213.
 records regarding.
 Permissive use of funds.................  300.208.
    [Omicron] Administrative case management...............  300.208(b).
    [Omicron] Early intervening services...................  300.208(a)(2).
    [Omicron] High cost special education and related        300.208(a)(3).
     services.
    [Omicron] Services and aids that also benefit            300.208(a)(1).
     nondisabled children.
 Personnel development...................  300.207.
 Records regarding migratory children      300.213.
 with disabilities.
 State prohibition (If LEA is unable to    300.205(c).
 establish/maintain programs of FAPE).
 Treatment of charter schools and their    300.209.
 students.
 
LEAD POISONING (Other health impairment)...................  300.8(c)(9)(i).
 
LEAST RESTRICTIVE ENVIRONMENT (LRE)
 Children in public or private             300.118.
 institutions.
 Continuum of alternative placements.....  300.115.
 Educational service agency (Additional    300.224(c).
 requirement regarding LRE).
 Monitoring activities...................  300.120.
 Nonacademic settings....................  300.117.
 Placements..............................  300.116.
 State eligibility requirements..........  300.114.
 Additional requirement: State funding     300.114(b).
 mechanism.
 Technical assistance and training.......  300.119.
 
LEISURE EDUCATION (Recreation).............................  300.34(c)(11)(iv).
 
LEP (See ``Limited English proficient'')
 
LEUKEMIA (Other health impairment).........................  300.8(c)(9)(i).
 
LIMITED ENGLISH PROFICIENT (LEP)
 Definition of...........................  300.27.
 Determinant factor in eligibility         300.306(b)(1)(iii).
 determination.
 In development, review, and revision of   300.324(a)(2)(ii).
 IEP.
 In ``native language'' (Definition).....  300.29(a).
 Special rule--LEP not determinant factor  300.306(b)(1)(iii).
 
LOCAL EDUCATIONAL AGENCY (See ``LEA'')
 
LRE (See ``Least restrictive environment'')
 
MAINTENANCE OF EFFORT (MOE-LEA) (A-R)
 Amounts in excess (Reduce level)........  300.205(a).
 Exception to............................  300.204.
 Maintenance of effort and early
 intervening services (see appendix D).

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 Maintenance of effort--LEA..............  300.203.
 Non-reduction of (State enforcement)....  300.608.
 Public benefits or insurance proceeds     300.154(g)(2).
 are not MOE.
    [Omicron] See ``Methods of ensuring services''.
 
MAINTENANCE OF EFFORT (MOE-LEA) (S-Z)
 SEA flexibility.........................  300.230(a).
 State enforcement (SEA must prohibit LEA  300.608.
 from reducing MOE).
 
MAINTENANCE OF STATE FINANCIAL SUPPORT.....................  300.163.
 Reduction of funds for failure to         300.163(b).
 maintain support.
 Subsequent years (Regarding a waiver)...  300.163(d).
 Waivers: Exceptional or uncontrollable    300.163(c).
 circumstances.
 
MANIFESTATION DETERMINATION (See ``Discipline'')...........  300.530(e).
 
McKINNEY-VENTO HOMELESS ASSISTANCE ACT
 In definition of ``Homeless children''..  300.19.
 In filing a State complaint.............  300.153(b)(4)(iii).
 SEA responsibility for general            300.149(a)(3).
 supervision (Regarding homeless children).
 State advisory panel (Membership).......  300.168(a)(5).
 Surrogate parents (Homeless child's       300.519(a)(4).
 rights protected.
 
MEDIATION (A-O)
 Benefits of (Meeting to explain)........  300.506(b)(2)(ii).
 Confidential discussions................  300.506(b)(6)(i).
 Cost of (Borne by State)................  300.506(b)(4).
 Disinterested party (To meet with         300.506(b)(2).
 parents and schools.
 Disputes (Resolve through mediation)....  300.506(a).
 Legally binding agreement...............  300.506(b)(6).
 Mediation procedures (By public agency    300.506(a).
 to allow parties to resolve disputes).
 Mediators:..............................
    [Omicron] Impartiality of..............................  300.506(c).
    [Omicron] List of......................................  300.506(b)(3)(i).
    [Omicron] Qualified and impartial (see Sec.
     300.506(b)(1)(iii)).
 Meeting to explain benefits of..........  300.506(b)(2)(ii).
 Not used as evidence in hearing.........  300.506(b)(8).
 Not used to deny/delay right to hearing.  300.506(b)(1)(ii),
 Opportunity to meet.....................  30.506(b)(2).
 
MEDIATION (P-Z)
 Parent training and information center..  300.506(b)(2)(i).
 Procedural safeguards notice............  300.504(c)(6).
 Random selection of mediators...........  300.506(b)(3)(ii).
 Use of SEA allocations to establish.....  300.704(b)(3)(ii).
 Voluntary...............................  300.506(b)(1)(i).
 Written mediation agreement.............  300.506(b)(7).
 
MEDICAID
 Children covered by public benefits or    300.154(d)(1).
 insurance.
 Construction (Nothing alters              300.154(h).
 requirements imposed under Titles XIX or XXI).
 Financial responsibility of each non-     300.154(a)(1).
 educational public agency (e.g., State Medicaid).
 LEA high cost fund (Disbursements not     300.704(c)(8).
 medical assistance under State Medicaid).
 Medicaid reimbursement not disqualified   300.154(b)(1)(ii).
 because service in school context.
 Methods of ensuring services (see Sec.
 300.154(a)(1), (b)(1)(ii), (d), (g)(2), (h)).
 Proceeds from public or private           300.154(g)(1).
 insurance.

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 Public agency may use Medicaid..........  300.154(a)(1).
 State Medicaid, etc., must precede        300.154(a)(1).
 financial responsibility of LEA.
 
MEDICAL (A-L)
 Assistance under other Federal programs.  300.186.
 Assistive technology device (Does not     300.5.
 include a surgically implanted medical device).
 LEA high cost fund (Disbursements not     300.704(c)(8).
 medical assistance under State Medicaid).
 
MEDICAL (M-Q)
 Medical services in (``Related
 services''):
    [Omicron] Audiology (Referral for).....................  300.34(c)(1)(ii).
    [Omicron] Definition of................................  300.34(c)(5).
    [Omicron] For diagnostic purposes......................  300.34(a).
    [Omicron] Speech-language pathology (Referral for).....  300.34(c)(15)(iii).
 Medical supplies, etc. (Memo of           300.708(i)(2).
 agreement between HHS and Interior).
 Non-medical (Residential placement).....  300.104.
 
MEDICAL (R-Z)
 Referral for medical services:
    [Omicron] Audiology....................................  300.34(c)(1)(ii).
    [Omicron] Speech-language pathology services...........  300.34(c)(15)(iii).
 Related services: Exception; surgically   300.34(b).
 implanted devices (``Cochlear implants'').
 Routine checking of hearing aids and      300.113.
 other devices.
 SLD: Educationally relevant medical       300.311(a)(4).
 findings, if any.
 
MEDICATION
 Prohibition on mandatory medication.....  300.174.
 
MEETING(S)
 Alternative means of meeting              300.328.
 participation.
 Consolidation of IEP Team meetings......  300.324(a)(5).
 Equitable services determined             300.137.
 (Parentally-placed private school CWDs).
 IEP Team meetings (See ``IEP'').
 Mediation (Opportunity to meet).........  300.506(b)(2).
 Opportunity to examine records;           300.501.
 participation in IEP Team meetings.
 Parent participation in meetings (see
 Sec. 300.506(b)(2), (b)(4)).
 Private school placements by public       300.325.
 agencies.
 Reviewing and revising IEPs (Private      300.325(b).
 school placements).
 Services plan for private school          300.137(c)(1).
 children (Meetings).
 
MENTAL RETARDATION (Definition)............................  300.8(c)(6).
 
METHODS OF ENSURING SERVICES...............................  300.154.
 
MIGRANT CHILDREN
 Child find..............................  300.111(c)(2).
 Records regarding migratory children      300.213.
 (Linkage with ESEA).
 
MINIMUM STATE COMPLAINT PROCEDURES.........................  300.152.
 See ``Complaints,'' ``State complaint
 procedures''.
 
MONITOR; MONITORING ACTIVITIES (A-N)
 Allowable costs for monitoring..........  300.704(b)(3)(i).
 Children placed in private schools by     300.147(a).
 public agencies.
 Implementation by SEA...................  300.147(a).
 LRE (SEA monitoring activities).........  300.120.
 Monitoring activities (LRE).............  300.120.

[[Page 148]]

 
 Monitoring--Enforcement (Subpart F).....  300.600.
    [Omicron] Rule of construction (Use any authority under  300.609.
     GEPA to monitor).
    [Omicron] Secretary's review and determination           300.603(b)(1).
     regarding State performance.
    [Omicron] State exercise of general supervision........  300.600(d)(2).
    [Omicron] State use of targets and reporting...........  300.602(a), (b)(1).
 
MONITOR; MONITORING ACTIVITIES (O-Z)
 Outlying areas, etc. (see Sec.
 300.701(a)(1)(ii)).
 Private school children: SEA monitoring.  300.147(a).
 SEA responsibility for general            300.149(b).
 supervision.
 Secretary of the Interior...............  300.708.
 State advisory panel functions (Advise    300.169(d).
 SEA on corrective action plans).
 Use of SEA allocations for monitoring...  300.704(b)(3)(i).
 Waiver (State's procedures for            300.164(c)(2)(ii)(B).
 monitoring).
    [Omicron] Summary of monitoring reports................  300.164(c)(3).
 
MULTIPLE DISABILITIES (Definition).........................  300.8(c)(7).
 
NATIONAL INSTRUCTIONAL MATERIALS ACCESS CENTER (NIMAC).....  300.172(e)(1)(ii).
 
NATIONAL INSTRUCTIONAL MATERIALS ACCESSIBILITY STANDARDS     300.172(e)(1)(iii).
 (NIMAS).
 See also appendix C.
 
NATIVE LANGUAGE
 Confidentiality (Notice to parents).....  300.612(a)(1).
 Definition..............................  300.29.
 Definition of ``Consent''...............  300.9.
 Evaluation procedures (Tests in native    300.304(c)(1)(ii).
 language).
 Notice to parents: Confidentiality (In    300.612(a)(1).
 native language).
 Prior notice:
    [Omicron] Notice in native language....................  300.503(c)(1)(ii).
    [Omicron] Notice translated orally.....................  300.503(c)(2)(i).
    [Omicron] Steps if not a written language..............  300.503(c)(2).
 
NATURE/LOCATION OF SERVICES (Direct services by SEA).......  300.227.
 
NEPHRITIS (In ``Other health impairment'').................  300.8(c)(9)(i).
 
NIMAC (See ``National Instructional Materials Access
 Center'')
 
NIMAS (See ``National Instructional Materials Accessibility
 Standard'')
 
NONACADEMIC
 Activities: Participate in (IEP content)  300.320(a)(4)(ii).
 Services and extracurricular activities   300.107(a).
 (Equal opportunity to participate in).
 Settings................................  300.117.
 
NONCOMMINGLING.............................................  300.162(b).
 
NONDISABLED (Children; students) (A-P)
 At no cost (In definition of ``special    300.39(b)(1).
 education'').
 Disciplinary information................  300.229(a).
 Excess cost requirement.................  300.202(b).
 IEP (definition) (see Sec.
 300.320(a)(1)(i), (a)(4)(iii), (a)(5)).
 LRE (General requirement)...............  300.114.
 Nonacademic settings....................  300.117.
 Placement...............................  300.116.
 Program options.........................  300.110.
 
NONDISABLED (Children; students) (R-Z)

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 Regular physical education..............  300.108(b).
 Services and aids that also benefit       300.208(a)(1).
 nondisabled children.
 Special education (Definition: In         300.39(b)(1).
 definition of ``at no cost'').
 Supplementary aids and services.........  300.42.
 Suspension and expulsion rates..........  300.170(a)(2).
 
NONEDUCATIONAL (Public agency)
 Medicaid service (May not be              300.154(b)(1)(ii).
 disqualified because in school context).
 Methods of ensuring services (see Sec.
 300.154(a), (b))
 Obligation of...........................  300.154(b).
 Reimbursement for services by...........  300.154(b)(2).
 
NON-MEDICAL CARE (Residential placement)...................  300.104.
 
NONSUPPLANTING
 Excess cost requirement (Regarding        300.202(b)(1)(ii).
 children aged 3 through 5 and 18 through 21).
 LEA nonsupplanting......................  300.202(b)(1)(ii).
 SEA flexibility.........................  300.230(a).
 State-level activities (Inapplicability   300.704(d).
 of certain provisions).
 State-level nonsupplanting..............  300.162(c).
 Waiver of requirement...................  300.164.
 
NOTICES: By parents or parties
 Attorneys' fees: When court reduces fee   300.517(c)(4)(iv).
 award regarding due process request notice.
 Children enrolled by parents in private   300.148(d)(1)(i).
 schools when FAPE is at issue.
 Due process complaint (Notice before a    300.508(c).
 hearing on a complaint).
 Private school placement by parents       300.148(d)(1)(i).
 (When FAPE is at issue).
 
NOTICES: Public agency (A-M)
 By-pass (Judicial review)...............  300.197.
 Children's rights (Transfer of rights)..  300.625(c).
 Confidentiality (Notice to parents).....  300.612.
 Department procedures (Notice to States)  300.179.
    [Omicron] See ``Judicial review''......................  300.184.
 Discipline (Notification)...............  300.530(h).
 Exception to FAPE (Graduation)..........  300.102(a)(3).
 Hearings relating to LEA eligibility....  300.155.
 IEP meetings (Parent participation).....  300.322(b).
 Judicial review: If State dissatisfied    300.184.
 with eligibility determination.
 LEA and State agency compliance.........  300.222.
    [Omicron] Notification in case of ineligibility........  300.221(b).
 
NOTICES: Public agency (N-P)
 Notice before a hearing on a due process  300.508(c).
 complaint.
 Notice and hearing before State           300.179.
 ineligible.
 Notice in understandable language.......  300.503(c).
 Notification of LEA in case of            300.221(b).
 ineligibility.
 Parent participation in meetings........  300.501(b)(2).
 Prior notice by public agency...........  300.503.
 Private school placement by parents when  300.148(d)(2).
 FAPE is at issue (Public agency notice).
 Procedural safeguards notice............  300.504.
 Public attention........................  300.606.
 Public participation (Notice of           300.165(a).
 hearings).
 

[[Page 150]]

 
NOTICES: Public agency (Q-Z)
 Secretary of the Interior (Submission of  300.708(g).
 information).
 Secretary's review and determination of   300.603(b)(2).
 State performance.
 Transfer of parental rights.............  300.520(a)(1)(i).
 Use of electronic mail..................  300.505.
 Withholding funds.......................  300.605.
 
OCCUPATIONAL THERAPY.......................................  300.34(c)(6).
 
OPPORTUNITY TO EXAMINE RECORDS.............................  300.501.
 
ORIENTATION AND MOBILITY SERVICES..........................  300.34(c)(7).
 
ORTHOPEDIC IMPAIRMENT......................................  300.8(c)(8).
 
OTHER HEALTH IMPAIRMENT....................................  300.8(c)(9).
 
OTHER INDIVIDUALS ON IEP TEAM..............................  300.321(a)(6).
 
OUTLYING AREAS--FREELY ASSOCIATED STATES
 Allocations to States (General).........  300.703(a).
 Annual description of use of funds......  300.171(c).
 Definitions applicable to allotments,
 grants and use of funds:
    [Omicron] Freely associated States.....................  300.717(a).
    [Omicron] Outlying areas...............................  300.717(b).
 Definition of ``State'' (Includes         300.40.
 ``Outlying areas'').
 Outlying areas and freely associated      300.701.
 States.
 Purpose of grants.......................  300.700(a).
 
OUT-OF-POCKET EXPENSE (Public benefits or insurance).......  300.154(d)(2)(ii).
 
PARAPROFESSIONALS
In ``Personnel qualifications''............................  300.156(b).
PARENT (Definition)........................................  300.30.
PARENT: RIGHTS AND PROTECTIONS (A-G)
 Appeal (Manifestation determination)....  300.532.
 Confidentiality (Authority to inspect     300.613(c).
 and review records).
 Consent (See ``Consent'')
 Counseling and training (Definition)....  300.34(c)(8).
 Definition of ``Parent''................  300.30.
    [Omicron] Foster parent................................  300.30(a)(2).
    [Omicron] Grandparent or stepparent....................  300.30(a)(4).
    [Omicron] Guardian.....................................  300.30(a)(3).
 
PARENT: RIGHTS AND PROTECTIONS (H-N)
 Independent educational evaluation......  300.502.
    [Omicron] Parent-initiated evaluations.................  300.502(c).
    [Omicron] Parent right to evaluation at public expense.  300.502(b).
 IEP and parent involvement:
    [Omicron] Copy of child's IEP..........................  300.322(f).
    [Omicron] Informed of child's progress.................  300.320(a)(3)(ii).
    [Omicron] Option to invite other individuals...........  300.321(a)(6).
    [Omicron] Participation in meetings....................  300.322.
    [Omicron] Team member..................................  300.321(a)(1).
 Informed consent (Accessing private       300.154(e)(1).
 insurance).
 Involvement in placement decisions......  300.501(c).
 Meetings (Participation in).............  300.501(b).
 Notice to public agency:
    [Omicron] Before a hearing on a due process complaint..  300.508(c).
    [Omicron] Before removing child from public school.....  300.148(d)(1)(ii).
    [Omicron] Timeline for requesting a hearing............  300.511(e).
         Exceptions to timeline..........  300.511(f).
    [Omicron] Opportunity to examine records...............  300.501(a).
 

[[Page 151]]

 
PARENT: RIGHTS AND PROTECTIONS (O-Z)
 Parent counseling and training..........  300.34(c)(8).
 Placement decisions (Involvement in)....  300.501(c).
 Request for hearing (Discipline)........  300.532(a).
 Right to an independent educational       300.502(b).
 evaluation.
 
PARENTAL CONSENT (See ``Consent'')
 
PARENTALLY-PLACED PRIVATE SCHOOL CHILDREN WITH DISABILITIES
 (A-E)
 Annual count of the number of...........  300.133(c).
 Bypass (see Sec. Sec. 300.190 through
 300.198)
 Child find for..........................  300.131.
 Calculating proportionate amount........  300.133(b).
 Compliance..............................  300.136.
 Consultation with private schools.......  300.134.
 Written affirmation.....................  300.135.
 Definition of...........................  300.130.
 Due process complaints and State          300.140.
 complaints.
 Equitable services determined...........  300.137.
    [Omicron] Equitable services provided..................  300.138.
 Expenditures............................  300.133.
    [Omicron] Formula......................................  300.133(a).
 
PARENTALLY-PLACED PRIVATE SCHOOL CHILDREN WITH DISABILITIES
 (F-R)
 No individual right to special education  300.137(a).
 and related services.
 Property, equipment, and supplies.......  300.144.
 Proportionate share of funds............  300.134(b).
    [Omicron] See ``Appendix B--Proportionate Share
     Calculation''
 Provision of equitable services.........  300.138(c).
 Religious schools (see Sec. Sec.
 300.131(a), 300.137(c), 300.139(a))
 Requirement that funds not benefit a      300.141.
 private school.
 
PARENTALLY-PLACED PRIVATE SCHOOL CHILDREN WITH DISABILITIES
 (S-T)
 Separate classes prohibited.............  300.143.
 Services on private school premises.....  300.139(a).
 Services plan (Definition)..............  300.37.
    [Omicron] For each child served under Sec. Sec. 300.137(c).
     300.130 through 300.144.
    [Omicron] See also Sec. Sec. 300.132(b), 300.138(b),
     300.140(a)
 State eligibility requirement...........  300.129.
 Transportation (Cost of)................  300.139(b)(2).
 
PARENTALLY-PLACED PRIVATE SCHOOL CHILDREN WITH DISABILITIES
 (U-Z)
 Use of personnel:
    [Omicron] Private school personnel.....................  300.142(b).
    [Omicron] Public school personnel......................  300.142(a).
 Written affirmation.....................  300.135.
 Written explanation by LEA regarding      300.134(e).
 services.
 
PARTICIPATING AGENCY
 Confidentiality provisions:
    [Omicron] Definition of participating agency...........  300.611(c).
    [Omicron] See also Sec. Sec. 300.613(c), 300.614,
     300.616, 300.618, 300.623
 IEP requirements (Transition services)..  300.324(c).
 
PENDENCY (Stay put)
 Child's status during due process         300.518.
 proceedings.
 Placement during appeals (Discipline)...  300.533.
 Procedural safeguards notice............  300.504(c)(7).
 

[[Page 152]]

 
PERFORMANCE GOALS AND INDICATORS
 Assess progress toward achieving goals..  300.157(c).
 Establishment of goals..................  300.157.
 Other State level activities............  300.814(c).
 Performance goals and indicators........  300.157.
 State monitoring and enforcement........  300.600(c).
 State performance plans and data          300.601.
 collection.
 
PERFORMANCE; PERFORMANCE PLANS (STATE)
 Enforcement.............................  300.604.
 Public reporting and privacy............  300.602(b).
 Secretary's review and determination      300.603.
 regarding State performance.
 State performance plans and data          300.601.
 collection.
 State performance report................  300.602(b)(2).
 State use of targets and reporting......  300.602.
    [Omicron] Public reporting.............................  300.602(b)(1).
    [Omicron] State performance report.....................  300.602(b)(2).
 
PERMISSIVE USE OF FUNDS (LEAs)
 Administrative case management..........  300.208(b).
 Early intervening services..............  300.208(a)(2).
 High cost education and related services  300.208(a)(3).
 Permissive use of funds.................  300.208.
 Services and aids that also benefit       300.208(a)(1).
 nondisabled children.
PERSONALLY IDENTIFIABLE (PI) INFORMATION (A-H)
 Confidentiality of (State eligibility     300.123.
 requirement).
 Consent (confidentiality)...............  300.622(a).
 Data collection (State performance        300.601(b)(3).
 plans).
 Definition of ``personally                300.32.
 identifiable''.
 Department use of information...........  300.627.
 Destruction:
    [Omicron] Definition of................................  300.611(a).
    [Omicron] Destruction of information...................  300.624.
 Hearing decisions to advisory panel and   300.513(d).
 the public.
 
PERSONALLY IDENTIFIABLE (PI) INFORMATION (I-Z)
 Notice to parents (Confidentiality):
    [Omicron] Children on whom PI information is maintained  300.612(a)(2).
    [Omicron] Policies and procedures regarding disclosure   300.612(a)(3).
     to third parties, etc.
 Participating agency (Definition).......  300.611(c).
 Protection of PI information............  300.642(a).
 See also Sec. 300.610.................
 Safeguards (Protect PI information).....  300.623.
 
PERSONNEL QUALIFICATIONS...................................  300.156.
 
PERSONNEL SHORTAGES
 Use of SEA allocations to meet..........  300.704(b)(4)(vii).
 
PHYSICAL EDUCATION.........................................
 Definition..............................  300.39(b)(2).
 State eligibility requirement...........  300.108.
 
PHYSICAL THERAPY (Definition)..............................  300.34(c)(9).
 
PLACEMENT(S) (A-Co)
 Adult prisons (CWDs in):
    [Omicron] Last educational placement before              300.102(a)(2)(i).
     incarceration.
    [Omicron] Modifications to IEPs and placements.........  300.324(d)(2).
 Alternative means of meeting              300.328.
 participation (Regarding ``Placement meetings'').

[[Page 153]]

 
 Change in placement: Graduation.........  300.102(a)(3)(iii).
 Child's placement during pendency of any  300.504(c)(7).
 complaint.
    [Omicron] See also ``Pendency'' (Child's status during   300.518.
     proceedings).
 Children with disabilities in adult
 prisons: Placements regarding (see Sec. Sec.
 300.102(a)(2)(i), 300.324(d)(2)).
 Continuum of alternative placements       300.115.
 (Continuum--LRE).
 
PLACEMENT(S) (Cu-L)
 Current placement (see Sec.
 300.530(b)((2), (d))
 Current ``Educational placement:''
    [Omicron] Change of placements because of disciplinary   300.536.
     removals.
    [Omicron] Child's status during proceedings............  300.518(a).
 Disciplinary changes in placement.......  300.530(c).
 Discipline procedures and placements
 (see Sec. Sec. 300.530 through 300.536).
 Educational placements (Parents in any    300.327.
 group that makes placement decisions).
 Graduation: A change in placement         300.102(a)(3)(iii).
 (Exception to FAPE).
 Last educational placement (Before        300.102(a)(2)(i).
 incarceration).
 Least restrictive environment (LRE) (see
 Sec. Sec. 300.114 through 300.120)
 Notification: LEA must notify parents of  300.530(h).
 decision to change placement.
 
PLACEMENT(S) (O-Z)
 Pendency (Child's status during           300.518.
 proceedings).
Placement of children by parents if FAPE is at issue.......  300.148.
 Placements (LRE)........................  300.116.
 Requirements for unilateral placement by  300.504(c)(9).
 parents of CWDs in private schools (In ``Procedural
 safeguards notice'').
 State funding mechanism (Must not result  300.114(b)(1).
 in placements that violate LRE).
 
POLICY: POLICIES AND PROCEDURES
 Condition of assistance (LEA              300.200.
 eligibility).
    [Omicron] Consistency with State policies..............  300.201.
    [Omicron] See also Sec. Sec. 300.200 through 300.213
 Eligibility for assistance (State)......  300.100.
 Exception for prior policies on file:
    [Omicron] With the SEA.................................  300.220.
    [Omicron] With the Secretary...........................  300.176(a).
 FAPE policy.............................  300.101(a).
 Joint establishment of eligibility        300.223.
 (Requirements).
 Modifications of:
    [Omicron] LEA or State agency policies.................  300.220(b).
    [Omicron] Required by Secretary........................  300.176(c).
    [Omicron] State policies (By a State)..................  300.176(b).
 Public participation....................  300.165.
 Secretary of the Interior...............  300.708.
    [Omicron] Public participation.........................  300.709.
    [Omicron] Submission of information....................  300.708.
 
PREPONDERANCE OF EVIDENCE
 Civil action............................  300.516(c)(3).
 
PRESCHOOL GRANTS
 Allocations to LEAs.....................  300.816.
    [Omicron] Subgrants to LEAs............................  300.815.

[[Page 154]]

 
 Other State-level activities............  300.814.
    [Omicron] Provide early intervention services in         300.814(e).
     accordance with Part C of the Act.
    [Omicron] Service coordination or case management......  300.814(f).
 State administration....................  300.813.
 Use of funds for administration of Part   300.813(b).
 C.
 
PRIOR NOTICE
 By public agency........................  300.503.
 Notice required before a hearing on a     300.508(c).
 due process complaint.
 Procedural safeguards notice............  300.504.
 
PRISONS (See ``Adult prisons'')
 
PRIVATE INSURANCE
 Children with disabilities who are        300.154(e).
 covered by.
    [Omicron] Proceeds from public benefits or insurance or  300.154(g).
     private insurance.
    [Omicron] Use of Part B funds..........................  300.154(f).
 
PRIVATE SCHOOLS AND FACILITIES
 Applicability of this part to State and
 local agencies:
    [Omicron] CWDs placed in private schools by parents      300.2(c)(2).
     under Sec. 300.148.
    [Omicron] CWDs referred to or placed in private schools  300.2(c)(1).
     by public agency.
 
PRIVATE SCHOOL CHILDREN ENROLLED BY THEIR PARENTS
 Placement of children by parents when     300.148.
 FAPE is at issue.
 See ``Parentally-placed private school
 children with disabilities''
 
PRIVATE SCHOOL PLACEMENTS BY PUBLIC AGENCIES (A-D)
 Applicability of this part to private     300.2(c)(1).
 schools.
 Applicable standards (SEA to disseminate  300.147(b).
 to private schools involved).
 
PRIVATE SCHOOL PLACEMENTS BY PUBLIC AGENCIES (E-Z)
 Implementation by SEA (Must monitor,      300.147.
 provide standards, etc.).
 Monitor compliance......................  300.147(a).
 Input by private schools (Provide for)..  300.147(c).
 Responsibility of SEA...................  300.146.
 
PROCEDURAL SAFEGUARDS: DUE PROCESS PROCEDURES (A-C)
 Additional disclosure of information (5   300.512(b).
 business days before hearing).
 Agency responsible for conducting         300.511(b).
 hearing.
 Appeal of hearing decisions; impartial    300.514(b).
 review.
 Attorneys' fees.........................  300.517.
 Child's status during proceedings.......  300.518.
 Civil action............................  300.516.
 Consent (Definition)....................  300.9.
 Court (See ``Court(s)'')
 
PROCEDURAL SAFEGUARDS: DUE PROCESS PROCEDURES (D-H)
 Electronic mail (Parent may elect to      300.505.
 receive notices by).
 Evaluation (Definition).................  300.15.

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 Evaluations: Hearing officer requests     300.502(d).
 for.
 Finality of decision; appeal; impartial   300.514.
 review.
 Findings and decision to advisory panel   300.513(d).
 and public.
 Hearing rights..........................  300.512.
 
PROCEDURAL SAFEGUARDS: DUE PROCESS PROCEDURES (I-Pa)
 Impartial due process hearing...........  300.511.
 Impartial hearing officer...............  300.511(c).
 Impartiality of mediator................  300.506(c).
 Independent educational evaluation......  300.502.
    [Omicron] Definition...................................  300.502(a)(3)(i).
 Jurisdiction of district courts.........  300.516(d).
    [Omicron] See ``Court(s)''
 Mediation...............................  300.506.
    [Omicron] Opportunity to meet with a disinterested       300.506(b)(2).
     party.
 Model form to assist parties in filing a  300.509.
 due process or State complaint.
 Notice required before a hearing on a     300.508(c).
 due process complaint.
 Opportunity to examine records..........  300.501(a).
 Parental consent........................  300.300.
 Parent-initiated evaluations............  300.502(c).
 Parent involvement in placement           300.501(c).
 decisions.
 Parent participation in meetings........  300.501(b).
 Parental rights at hearings.............  300.512(c).
 Parent right to evaluation at public      300.502(b).
 expense.
    [Omicron] Public expense (Definition)..................  300.502(a)(3)(ii).
 
PROCEDURAL SAFEGUARDS: DUE PROCESS PROCEDURES (Pe-Z)
 Pendency................................  300.518.
 Personally identifiable (Definition)....  300.32.
 Prior notice by public agency...........  300.503.
 Procedural safeguards notice............  300.504.
 Prohibition on introduction of            300.512(a)(3).
 undisclosed evidence 5 business days before hearing.
 Record of hearing.......................  300.512(a)(4).
 Resolution process......................  300.510.
 SEA implementation of...................  300.150.
 See ``Civil Action Proceedings,''
 ``Court(s),'' ``Hearing Officer(s),'' ``Timelines''
 Surrogate parents.......................  300.519.
 Timelines and convenience of hearings...  300.515.
 Transfer of parental rights at age of     300.520.
 majority.
 
PROCEDURAL SAFEGUARDS NOTICE...............................  300.504.
 Internet Web site (Notice on)...........  300.504(b).
 
PROCEEDS FROM PUBLIC BENEFITS OR INSURANCE OR PRIVATE        300.154(g).
 INSURANCE.
 
PROGRAM INCOME (Not treated as proceeds from insurance)....  300.154(g.)
 
PROGRAM MODIFICATIONS OR SUPPORTS (IEP content)............  300.320(a)(4).
 
PROPORTIONATE SHARE CALCULATION (See appendix B)
 
PROTECTIONS FOR CHILDREN NOT DETERMINED ELIGIBLE             300.534.
 (Discipline).
 
PSYCHOLOGICAL SERVICES (Definition)........................  300.34(c)(10).
 
PUBLIC AGENCY (Definition).................................  300.33.
 

[[Page 156]]

 
PUBLIC BENEFITS OR INSURANCE...............................  300.154(d).
 
PUBLIC BENEFITS OR INSURANCE OR PRIVATE INSURANCE (Proceeds  300.154(g).
 from).
 
PUBLIC CHARTER SCHOOLS (See ``Charter schools'')
 
PUBLIC EXPENSE (Definition under IEE)......................  300.502(a)(3)(ii).
 
PUBLIC HEARINGS (On policies)
 State eligibility.......................  300.165(a).
 Secretary of the Interior...............  300.708(g).
 
PUBLIC INFORMATION (LEA)...................................  300.212.
 
PUBLIC NOTICE
 LEA and State agency compliance.........  300.222(b).
 Public attention (If State has received   300.606.
 a notice under Sec. 300.603).
 
PURPOSES (Of this Part 300)................................  300.1.
 
QUALIFIED PERSONNEL........................................  300.156.
 Related services definitions (see Sec.
 300.34(c)(2), (c)(5), (c)(6), (c)(7), (c)(9), (c)(12),
 (c)(13)).
 
RATE OF INFLATION (In the Consumer Price Index for All
 Urban Consumers) (see Sec. Sec. 300.702(b),
 300.704(a)(2)(ii), 300.704(b)(2), 300.812(b)(2)).
REALLOCATION OF LEA FUNDS (If SEA determines LEA adequately
 providing FAPE) (see Sec. Sec. 300.705(c), 300.817)).
 
RECORDS (A-D)
 Access rights (Parents' right to          300.613.
 inspect).
    [Omicron] Fees for records.............................  300.617.
    [Omicron] Records on more than one child...............  300.615.
 Civil action (Court shall receive         300.516(c)(1).
 records).
 Conducting IEP Team meetings without      300.322(d).
 parents (Records of attempts to convince parents).
Confidentiality (See ``Confidentiality'')
 Consent to release records..............  300.622(b).
Disciplinary records:
    [Omicron] Determination that behavior not manifestation  300.530(e).
    [Omicron] Disciplinary information.....................  300.229(c).
    [Omicron] Referral to and action by law enforcement and  300.535.
     judicial authorities.
 
RECORDS (E-Z)
 Education records (Definition)..........  300.611(b).
 Of parentally-placed private school CWDs  300.132(c).
 (LEA to SEA).
 Opportunity to examine records..........  300.501(a).
 Procedural safeguards notice (Access to   300.504(c)(4).
 education records).
 Record of access........................  300.614.
 See also ``Transfer during academic
 year''
 
RECREATION (Definition)....................................  300.34(c)(11).
 
REDUCTION OF FUNDS FOR FAILURE TO MAINTAIN SUPPORT.........  300.163(b).
 
REEVALUATION
 Frequency of occurrence.................  300.303(b).
 Parental consent required before          300.300(c)(1).
 conducting.
    [Omicron] If parent fails to consent...................  300.300(c)(1)(ii).
 Parental consent not required for:
    [Omicron] Administering a test that all children take..  300.300(d)(1)(ii).
    [Omicron] Reviewing existing data......................  300.300(d)(1)(i).

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 Parent refusal to consent...............  300.300(c)(1)(ii).
 Review of existing evaluation data......  300.305(a).
 Revision of IEP (To address               300.324(b)(1)(ii).
 reevaluation).
 
REFERRAL (A-M)
 Discipline:
    [Omicron] Referral to and action by law enforcement and  300.535.
     judicial authorities.
    [Omicron] Protections for children not determined        300.534.
     eligible.
 Enforcement (Referral for)..............  300.604(b)(2)(vi).
 Indian children (Referral for services    300.712(d)(2).
 or further diagnosis).
 Medical attention (Referral for):
    [Omicron] Audiology....................................  300.34(c)(1)(ii).
    [Omicron] Speech-language pathology services...........  300.34(c)(15)(iii).
 
REFERRAL (N-Z)
 Nonacademic and extracurricular services  300.107(b).
 (Referral to agencies regarding assistance to individuals
 with disabilities).
 Prior notice (If not initial referral     300.503(b)(4).
 for evaluation).
 Private school placement when FAPE is at  300.148(c).
 issue (Reimbursement when no referral by public agency).
 Procedural safeguards notice (Upon        300.504(a)(1).
 initial referral for evaluation).
 Referral to and action by law             300.535.
 enforcement and judicial authorities.
 
REGULAR EDUCATION TEACHER
 Access to IEP...........................  300.323(d).
 IEP Team member.........................  300.321(a)(2).
 Participate in IEP development..........  300.324(a)(3).
    [Omicron] Behavioral interventions.....................  300.324(a)(3)(i).
    [Omicron] Supplementary aids and services..............  300.324(a)(3)(ii).
 
REGULATIONS
 Applicable regulations (Secretary of the  300.716.
 Interior).
 Applicability of this part to State,      300.2.
 local, and private agencies.
 
REHABILITATION
 Assistive technology service (see Sec.
 300.6(d), (f))
 Rehabilitation Act of 1973 (see Sec.
 Sec. 300.34(c)(12), 300.516(e))
 Rehabilitation counseling services:
    [Omicron] Definition...................................  300.34(c)(12).
    [Omicron] In vocational rehabilitation (VR) programs...  300.34(c)(12).
 Transition services (State VR agency      300.324(c)(2).
 responsibility).
 
REHABILITATION COUNSELING SERVICES.........................  300.34(c)(12).
 
REIMBURSEMENT
 Methods of ensuring services (see Sec.
 300.154(a)(3), (b)(1)(ii), (b)(2), (g)(2))
 Private school placement when FAPE is at
 issue:
    [Omicron] Limitation on reimbursement..................  300.148(d).
    [Omicron] Reimbursement for private school placement...  300.148(c).
    [Omicron] Subject to due process procedures............  300.148(b).
 Reimbursement by non-educational public   300.154(b)(2).
 agency.
 Reimbursement by SEA to LEA.............  300.704(c)(7).
 
RELATED SERVICES
 Definition..............................  300.34.
 Observations by teachers and related      300.305(a)(1)(iii).
 services providers regarding existing evaluation data.
 

[[Page 158]]

 
RELATION OF PART B TO OTHER FEDERAL PROGRAMS...............  300.186.
 
RELIGIOUS SCHOOLS
 Child find for parentally-placed private  300.131(a).
 school children.
 Child find for out-of-State children....  300.131(f).
 Formula for LEA expenditures on.........  300.133(a).
 See ``Parentally-placed private school
 children with disabilities''
 Services plan for each child served.....  300.137(c).
 Services provided on-site...............  300.139(a).
 
REMEDIES FOR DENIAL OF APPROPRIATE SERVICES................  300.151(b).
 
REPORTS (A-C)
 Annual report of children served........  300.640.
    [Omicron] See also Sec. Sec. 300.641 through 300.646
 Annual report to Secretary of Interior    300.715(a).
 by advisory board on Indian children.
 Biennial report (Indian tribes).........  300.712(e).
 Child count (Annual report of children    300.641.
 served).
 
REPORTS (D-Z)
 Evaluation reports to parents...........  300.306(a)(2).
 Monitoring compliance of publicly placed  300.147(a).
 children in private schools (e.g., written reports).
 Monitoring reports (Waiver of             300.164(c)(3).
 nonsupplanting requirement).
 Performance goals (Progress reports)....  300.157(c).
 Secretary's report to States regarding    300.812(b).
 25% of funds.
 
REPORT CARDS...............................................  300.320(a)(3)(ii).
 
REPORTING A CRIME to law enforcement and judicial            300.535.
 authorities.
 
RESIDENTIAL PLACEMENTS.....................................  300.104.
 
REVOKE CONSENT AT ANY TIME (In definition of ``Consent'')..  300.9(c)(1).
 
RHEUMATIC FEVER............................................  300.8(c)(9)(i).
 
RISK OF LOSS OF ELIGIBILITY FOR INSURANCE..................  300.154(d)(2)(iii)(D).
 
SCHOOL DAY
 Definition..............................  300.11(c).
 See ``Timelines,'' ``Timelines--
 Discipline''
 
SCHOOL HEALTH SERVICES AND SCHOOL NURSE SERVICES...........  300.34(c)(13).
 
SCHOOL PERSONNEL
 Content of IEP..........................  300.320(a)(4).
 Development, review, and revision of IEP  300.324(a)(4).
 Disciplinary authority..................  300.530.
 Use of private school personnel.........  300.142(b).
 Use of public school personnel..........  300.142(a).
 
SCHOOLWIDE PROGRAMS........................................  300.206.
 
SEA RESPONSIBILITY
 For all education programs..............  300.149.
 For direct services.....................  300.227.
 For each parentally-placed private        300.132(b).
 school child designated to receive services.
 For impartial review....................  300.514(b)(2).
 Prohibition of LEA from reducing          300.608.
 maintenance of effort.
 

[[Page 159]]

 
SECRETARY
 Determination that a State is eligible..  300.178.
 Notice and hearing before determining     300.179.
 that a State is not eligible.
 Waiver of nonsupplanting requirement....  300.164.
 
SECRETARY OF THE INTERIOR
 Advisory board establishment............  300.714.
    [Omicron] Annual report by advisory board..............  300.715.
 Biennial report (By tribe or tribal       300.712(e).
 organization).
 Eligibility (see Sec. Sec. 300.708
 through 300.716)
 Payments for:
    [Omicron] Children aged 3 through 5....................  300.712.
    [Omicron] Child find and screening.....................  300.712(d).
 Plan for coordination of services.......  300.713.
 Use of funds for early intervening        300.711.
 services.
 
SEPARATION--DIVORCE (Authority to review records)..........  300.613(c).
 
SERVICES PLAN for parentally-placed private school children
 (see Sec. Sec. 300.132(b), 300.137(c) 300.138(b))
 
SERVICES THAT ALSO BENEFIT NONDISABLED CHILDREN............  300.208(a)(1).
 
SHORTAGE OF PERSONNEL (Policy to address)..................  300.704(b)(4)(vii).
 
SHORT TERM OBJECTIVES OR BENCHMARKS........................  300.320(a)(2)(ii).
 
SHOULD HAVE KNOWN (Regarding due process complaint)........  300.511(e).
 
SHOW CAUSE HEARING.........................................  300.194.
 Decision................................  300.195.
 Implementation of by-pass (see Sec.
 Sec. 300.192(b)(2), 300.193)
 Right to legal counsel..................  300.194(a)(3).
 
SICKLE CELL ANEMIA.........................................  300.8(c)(9)(i).
 
SLD (See ``Specific Learning Disability'')
 
SOCIAL WORK SERVICES IN SCHOOLS (Definition)...............  300.34(b)(14).
 
SPECIAL FACTORS (IEP Team).................................  300.324(a)(2).
 
SPECIAL EDUCATION (Definition).............................  300.39.
 
SPECIAL EDUCATION PROVIDER.................................  300.321(a)(3).
 
SPECIAL EDUCATION TEACHER
 IEP accessible to.......................  300.323(d).
 On IEP Team.............................  300.321(a)(3).
 Requirements regarding highly qualified.  300.18.
 
SPECIAL RULE
 Adjustments to local efforts............  300.205(d).
 For child's eligibility determination...  300.306(b).
 For increasing funds....................  300.704(e).
 Methods of ensuring services............  300.154(c).
 LEA high cost fund......................  300.704(c).
 Regarding outlying areas and freely       300.701(a)(3).
 associated States.
 Regarding transfer of rights............  300.520(b).
 Regarding use of FY 1999 amount.........  300.703(b).
 State advisory panel (Parent members)...  300.168(b).
 
SPECIFIC LEARNING DISABILITY
 Definition..............................  300.8(c)(10).
 Evaluation requirements and report (see
 Sec. Sec. 300.306(a), 300.307 through 300.311)
 Other alternative research-based          300.307(a)(3).
 procedures.
 Response to scientific, research-based
 intervention (see Sec. Sec. 300.307(a)(2),
 300.309(a)(2)(i), 300.311(a)(7))
 Scientifically based research:

[[Page 160]]

 
    [Omicron] Definition...................................  300.35.
    [Omicron] Enforcement..................................  300.604(a)(1)(ii).
 Severe discrepancy......................  300.307(a)(1).
 
SPEECH-LANGUAGE PATHOLOGY SERVICES
 Definition..............................  300.34(b)(15).
 Speech or language impairment             300.8(c)(11).
 (Definition).
 
STATE
 Definition..............................  300.40.
 Special definition for grants...........  300.717(c).
 Sovereign immunity......................  300.177.
 
STATE ADMINISTRATION (Use of funds for) (see Sec. Sec.
 300.704(a), 300.812(a)).
 
STATE ADVISORY PANEL.......................................  300.167
 Due process hearings (Findings and
 decisions to State advisory panel) (see Sec. Sec.
 300.513(d)(1), 300.514(c)(1))
 Duties..................................  300.169.
 Establishment...........................  300.167.
 Membership..............................  300.168.
 Waiver of nonsupplant requirement (State  300.164(c)(4).
 has consulted with advisory panel regarding provision of
 FAPE).
 
STATE AGENCIES
 Applicability of Part B to other State    300.2(b)(1)(iii).
 agencies.
 Compliance (LEA and State agency).......  300.222.
 Eligibility (LEA and State agency):
    [Omicron] General conditions (see Sec. Sec. 300.200
     through 300.213)
 Notification of LEA or State agency in    300.221.
 case of ineligibility.
 State advisory panel (Membership).......  300.168.
 State agency eligibility................  300.228.
 State Medicaid agency...................  300.154(a)(1), (h).
 
STATE COMPLAINT PROCEDURES (see Sec. Sec. 300.151
 through 300.153)
 See ``Complaint(s): State complaint
 procedures''
 
STATE ELIGIBILITY
 Condition of assistance.................  300.100.
 Department procedures (see Sec. Sec.
 300.178 through 300.186)
 Determination of eligibility (By the      300.178.
 Secretary).
 General conditions......................  300.100.
 Notice and hearing before determining     300.179.
 that a State is not eligible.
 Specific conditions (see Sec. Sec.
 300.101 through 300.176)
 
STATE JUVENILE AND ADULT CORRECTIONAL FACILITIES...........  300.2(b)(1)(iv).
 See also ``Correctional facilities,''
 ``Adult prisons''
 
STATE-LEVEL ACTIVITIES (With Part B funds).................  300.704.
 
STATE-LEVEL NONSUPPLANTING.................................  300.162(c).
 Waiver by Secretary.....................  300.162(c)(2).
 Waiver of requirement...................  300.164.
 
STATE MAINTENANCE OF EFFORT................................  300.163.
 
SUBGRANT(S)
 State agency eligibility................  300.228.
 To LEAs.................................  300.705(a).
 
STATE MEDICAID AGENCY
 Methods of ensuring services............  300.154(a)(1).
 See also ``Medicaid''
 

[[Page 161]]

 
STATE SCHOOLS
 Applicability of this part to schools     300.2(b)(1)(iii).
 for children with deafness or blindness.
 
STATE VOCATIONAL REHABILITATION AGENCY (See
 ``Rehabilitation'')
 
STATES' SOVEREIGN IMMUNITY.................................  300.177.
 
STAY-PUT (Child's status during proceedings)...............  300.518.
 See also ``Pendency''
 
SUBSTANTIAL LIKELIHOOD OF INJURY (Discipline)..............  300.532(a).
 
SUPPLEMENTARY AIDS AND SERVICES
 Definition..............................  300.42.
 IEP content.............................  300.320(a)(4).
 In ``assistive technology''.............  300.105(a)(3).
 LRE requirements........................  300.114(a)(2)(ii).
 Methods of ensuring services............  300.154(b).
 Requirement regarding regular education   300.324(a)(3)(ii).
 teacher (IEP).
 Services that also benefit nondisabled    300.208(a)(1).
 children.
SUPPLEMENT--NOT SUPPLANT
 LEA requirement.........................  300.202(a)(3).
 State level nonsupplanting..............  300.162(c).
 See ``Nonsupplanting''
 
SUPPORT SERVICES (see Sec. Sec. 300.704(b)(4)(i)),
 300.814(a))
 
SURGICALLY IMPLANTED MEDICAL DEVICE (see Sec. Sec.
 300.5, 300.34(b), 300.113(b))
 
SURROGATE PARENTS..........................................  300.519.
 Appointed for homeless youth............  300.519(f).
 In definition of ``Parent''.............  300.30(a)(5).
 Timeline for assignment.................  300.519(h).
 
SUSPENSION (EXPULSION)
 Alternative programming for children      300.704(b)(4)(ix).
 expelled.
 Provision of FAPE.......................  300.101(a).
 Suspension and expulsion rates..........  300.170(a).
 Suspension or expulsion without services  300.534(d)(2)(ii).
 
TEACHERS
See ``Regular education teacher''
See ``Special education teacher''
TECHNICAL ASSISTANCE (Amounts to support)..................  300.702.
 
TECHNICALLY SOUND INSTRUMENTS (Evaluation).................  300.304(b)(3).
 
TERMINATION OF AGENCY OBLIGATION to provide special          300.204(c).
 education to a particular child (Exception to MOE).
 
THERAPEUTIC RECREATION.....................................  300.34(b)(11)(ii).
 
TIMELINES (A-D)
 Access rights (Confidentiality: 45 days)  300.613(a).
 Annual report of children served          300.641(a).
 (Between Oct. 1 and Dec. 1).
 Annual count of parentally-placed         300.133(c).
 private school children (Between Oct. 1 and Dec. 1).
 Assignment of surrogate parent (Not more  300.519(h).
 than 30 days).
 Attorneys' fees (10 days prohibition)...  300.517(c)(2)(i).
 Complaint procedures (State: 60 days)...  300.152(a).
 Department hearing procedures (30 days).  300.179(b)(3).
    [Omicron] See also Sec. Sec. 300.181 through 300.184

[[Page 162]]

 
 Due process hearings and reviews (see
 Sec. Sec. 300.510(b)(2), 300.511(e), (f)):
    [Omicron] Conducted within 20 school days; decision      300.532(c)(2).
     within 10 school days.
    [Omicron] Decision within 45 days after expiration of    300.515(a).
     30 day period.
    [Omicron] Disclose evaluations before hearings (5        300.512(a)(3).
     business days).
 
TIMELINES (E-H)
 Hearing procedures (State eligibility:    300.179(b)(3).
 30 days).
 Hearing rights:
    [Omicron] Disclosure of evaluations (At least 5          300.512(b)(1).
     business days before hearing).
    [Omicron] Prohibit introduction of evidence not          300.512(a)(3).
     disclosed (At least 5 business days before hearing).
    [Omicron] Reviews (Decision not later than 30 days)....  300.515(b).
 
TIMELINES (I-Z)
 IEP (Initial meeting: 30 days)..........  300.323(c)(1).
 Initial evaluation (60 days)............  300.301(c)(1).
 Parent notice before private placement    300.148(d)(2).
 (At least 10 business days).
 Show cause hearing......................  300.194(g).
 Decision................................  300.195(a)(1).
 State eligibility: Department hearing
 procedures (see Sec. Sec. 300.179(b)(3), 300.181(b),
 300.182(d), (e), (g), (k), 300.184)
 Timelines and convenience of hearings     300.515.
 and reviews.
 
TIMELINES--DISCIPLINE (A-P)
 Authority of hearing officer (May order   300.532(b)(2)(ii).
 change of placement for not more than 45 school days).
 Authority of school personnel:
    [Omicron] Change of placement for not more than 45       300.530(g).
     consecutive days for weapons or drugs.
    [Omicron] Removal of a child for not more than 10        300.530(b).
     school days.
 Change of placement for disciplinary
 removals:
    [Omicron] Of more than 10 consecutive school days......  300.536(a)(1).
    [Omicron] Because series of removals total more than 10  300.536(a)(2)(i).
     school days.
 Due process hearing request.............  300.507(a)(2).
 Expedited due process hearings:
    [Omicron] Conducted within 20 days.....................  300.532(c)(2).
    [Omicron] Decision within 10 days......................  300.532(c)(3)(i).
 Hearing officer (Order change of          300.532(b)(2)(ii).
 placement for not more than 45 days).
 Manifestation determination review        300.530(e).
 (Conducted in no more than 10 school days).
 Placement during appeals (Not longer      300.532(b)(2)(ii).
 than 45 days).
 
TIMELINES--DISCIPLINE (Q-Z)
 Removals for not more than:
    [Omicron] 10 school days (By school personnel).........  300.530(b).
    [Omicron] 45 days (To interim alternative educational    300.532(b)(2)(ii).
     setting).
        By hearing officer (For substantial likelihood of    300.532(b)(2)(ii).
         injury to child or others).
        By school personnel (For weapons or drugs) (see
         Sec. 300.530(g)(1), (g)(2))
 
TIMETABLE: Full educational opportunity goal (FEOG)........  300.109.
 

[[Page 163]]

 
TRAINING
 Assistive technology services (see Sec.
  300.6(e), (f))
 Confidentiality procedures (Personnel     300.623(c).
 using personally identifiable information must receive
 training).
 Parent counseling and training..........  300.34(b)(8).
 Technical assistance and training for     300.119.
 teachers and administrators.
 Travel training (see Sec.
 300.39(a)(2)(ii), (b)(4))
 
TRANSFER DURING ACADEMIC YEAR
 Assessments coordinated between public    300.304(c)(5).
 agencies.
 New school district responsibilities
 (see Sec. 300.323(e), (f))
 Transmittal of records..................  300.323(g).
 
TRANSFER OF PARENTAL RIGHTS................................  300.520.
 IEP requirement.........................  300.320(c).
 Special rule............................  300.520(b).
 To children in correctional institutions  300.520(a)(2).
 
TRANSITION FROM PART C TO PART B...........................  300.124.
 
TRANSITION SERVICES (NEEDS)
 Agency responsibilities for (see Sec.
 Sec. 300.321(b)(3), 300.324(c)(2))
 Alternative strategies..................  300.324(c)(1).
 Child participation in IEP Team meetings  300.321(b)(1).
 Definition..............................  300.43.
 IEP requirement (Statement of)
    [Omicron] Transition service needs.....................  300.320(b).
    [Omicron] Needed transition services...................  300.43(b).
 State rehabilitation agency.............  300.324(c)(2).
TRANSMITTAL OF RECORDS TO LAW ENFORCEMENT AND JUDICIAL       300.535(b).
 AUTHORITIES.
 
TRANSPORTATION
 Definition..............................  300.34(c)(16).
 Nonacademic services....................  300.107(b).
 Of private school children..............  300.139(b).
 
TRAUMATIC BRAIN INJURY (Definition)........................  300.8(c)(12).
 
TRAVEL TRAINING (see Sec. 300.39(a)(2)(ii), (b)(4))
 Definition..............................  300.39(b)(4).
 
TREATMENT OF CHARTER SCHOOLS AND THEIR STUDENTS............  300.209.
 
TREATMENT OF FEDERAL FUNDS IN CERTAIN YEARS................  300.205.
 
UNIVERSAL DESIGN
 Definition..............................  300.44.
 Support technology with universal design  300.704(b)(4)(v).
 principles.
 
USE OF AMOUNTS (LEA).......................................  300.202.
 
USE OF FUNDS BY LEAs
 Coordinated services system.............  300.208(a)(2).
 For school-wide programs................  300.206.
 For services and aids that also benefit   300.208(a)(1).
 nondisabled children.
 For use in accordance with Part B.......  300.705.
 
USE OF FUNDS BY STATES (SEAs) (A-C)
 Administering Part B State activities...  300.704(a)(1).
 Administering Part C (If SEA is Lead      300.704(a)(4).
 Agency).
 Administrative costs of monitoring and    300.704(b)(3)(i).
 complaint investigations.
 Allowable costs.........................  300.704(b)(3).
 Amount for State administration.........  300.704(a)

[[Page 164]]

 
 Annual description of use of Part B       300.171.
 funds.
 Assist LEAs in meeting personnel          300.704(b)(4)(vii).
 shortages.
 Complaint investigations................  300.704(b)(3)(i).
 Coordination of activities with other     300.704(b)(1).
 programs.
USE OF FUNDS BY STATES (SEAs) (D-Z)
 Direct and support services.............  300.704(b)(4)(i).
 High cost fund..........................  300.704(c).
 Mediation process.......................  300.704(b)(3)(ii).
 Monitoring..............................  300.704(b)(3)(i).
 Personnel preparation, professional
 development and training (see Sec. 300.704(b)(4)(i),
 (b)(4)(xi)).
 State plan..............................  300.704(c)(3)(i).
 Statewide coordinated services system...  300.814(d).
 Support and direct services.............  300.704(b)(4)(i).
 Technical assistance:
    [Omicron] To LEAs......................................  300.704(b)(4)(xi).
    [Omicron] To other programs that provide services......  300.704(a)(1).
 
USE OF FUNDS BY SECRETARY OF THE INTERIOR (see Sec. Sec.
 300.707 through 300.716)
 By Indian tribes:
    [Omicron] For child find for children aged 3 throught 5  300.712(d).
    [Omicron] For coordination of assistance for services..  300.712(a).
 For administrative costs................  300.710(a).
 
USE OF SEA ALLOCATIONS.....................................  300.704.
 Inapplicability of requirements that      300.704(d).
 prohibit commingling and supplanting of funds.
 
VISUAL IMPAIRMENT INCLUDING BLINDNESS (Definition).........  300.8(c)(13).
 
VOCATIONAL EDUCATION
 Definition..............................  300.39(b)(5).
 In definition of ``Special education''..  300.39(a)(2)(iii).
 Program options.........................  300.110.
 Transition services.....................  300.320(b)(1).
 
VOCATIONAL REHABILITATION (See ``Rehabilitation'')
 
VOLUNTARY DEPARTURE OF PERSONNEL
(Exception to LEA maintenance of effort)...................  300.204(a).
 
WAIVER(S)
 For exceptional and uncontrollable        300.163(c).
 circumstances (State maintenance of effort).
 ``In whole or in part''.................  300.164(e).
 Public benefits or insurance (Risk of     300.154(d)(2)(iii)(D).
 loss of eligibility for home and community-based waivers).
 State-level nonsupplanting..............  300.162(c).
 State maintenance of effort.............  300.163.
 State's procedures for monitoring.......  300.164(c)(2)(ii)(B).
 Waiver procedures.......................  300.164.
 
WARD OF THE STATE
 Appointment of surrogate parent.........  300.519(c).
 Definition..............................  300.45.
 See definition of ``Parent''............  300.30(a)(3).
 See ``Surrogate parents''...............  300.519(a)(3).
 
WEAPON (Definition)........................................  300.530(i)(4).
 
WHEN IEPS MUST BE IN EFFECT................................  300.323.
 


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[71 FR 46753, Aug. 14, 2006, as amended at 72 FR 61307, Oct. 30, 2007]



PART 303_EARLY INTERVENTION PROGRAM FOR INFANTS AND TODDLERS WITH DISABILITIES

                            Subpart A_General

                   Purpose and Applicable Regulations

Sec.
303.1 Purpose of the early intervention program for infants and toddlers 
          with disabilities.
303.2 Eligible recipients of an award and applicability of this part.
303.3 Applicable regulations.

                      Definitions Used in This Part

303.4 Act.
303.5 At-risk infant or toddler.
303.6 Child.
303.7 Consent.
303.8 Council.
303.9 Day.
303.10 Developmental delay.
303.11 Early intervention service program.
303.12 Early intervention service provider.
303.13 Early intervention services.
303.14 Elementary school.
303.15 Free appropriate public education.
303.16 Health services.
303.17 Homeless children.
303.18 Include; including.
303.19 Indian; Indian tribe.
303.20 Individualized family service plan.
303.21 Infant or toddler with a disability.
303.22 Lead agency.
303.23 Local educational agency.
303.24 Multidisciplinary.
303.25 Native language.
303.26 Natural environments.
303.27 Parent.
303.28 Parent training and information center.
303.29 Personally identifiable information.
303.30 Public agency.
303.31 Qualified personnel.
303.32 Scientifically based research.
303.33 Secretary.
303.34 Service coordination services (case management).
303.35 State.
303.36 State educational agency.
303.37 Ward of the State.

Subpart B_State Eligibility for a Grant and Requirements for a Statewide 
                                 System

                    General Authority and Eligibility

303.100 General authority.
303.101 State eligibility--requirements for a grant under this part.

    State Conformity With Part C of the Act and Abrogation of State 
                           Sovereign Immunity

303.102 State conformity with Part C of the Act.
303.103 Abrogation of State sovereign immunity.

                       Equipment and Construction

303.104 Acquisition of equipment and construction or alteration of 
          facilities.

   Positive Efforts To Employ and Advance Qualified Individuals With 
                              Disabilities

303.105 Positive efforts to employ and advance qualified individuals 
          with disabilities.

                Minimum Components of a Statewide System

303.110 Minimum components of a statewide system.
303.111 State definition of developmental delay.
303.112 Availability of early intervention services.
303.113 Evaluation, assessment, and nondiscriminatory procedures.
303.114 Individualized family service plan (IFSP).
303.115 Comprehensive child find system.
303.116 Public awareness program.
303.117 Central directory.
303.118 Comprehensive system of personnel development (CSPD).
303.119 Personnel standards.
303.120 Lead agency role in supervision, monitoring, funding, 
          interagency coordination, and other responsibilities.
303.121 Policy for contracting or otherwise arranging for services.
303.122 Reimbursement procedures.
303.123 Procedural safeguards.
303.124 Data collection.
303.125 State interagency coordinating council.
303.126 Early intervention services in natural environments.

               Subpart C_State Application and Assurances

                                 General

303.200 State application and assurances.

                        Application Requirements

303.201 Designation of lead agency.
303.202 Certification regarding financial responsibility.
303.203 Statewide system and description of services.
303.204 Application's definition of at-risk infants and toddlers and 
          description of services.
303.205 Description of use of funds.

[[Page 166]]

303.206 Referral policies for specific children.
303.207 Availability of resources.
303.208 Public participation policies and procedures.
303.209 Transition to preschool and other programs.
303.210 Coordination with Head Start and Early Head Start, early 
          education, and child care programs.
303.211 State option to make services under this part available to 
          children ages three and older.
303.212 Additional information and assurances.

                               Assurances

303.220 Assurances satisfactory to the Secretary.
303.221 Expenditure of funds.
303.222 Payor of last resort.
303.223 Control of funds and property.
303.224 Reports and records.
303.225 Prohibition against supplanting; indirect costs.
303.226 Fiscal control.
303.227 Traditionally underserved groups.

 Subsequent Applications and Modifications, Eligibility Determinations, 
                       and Standard of Disapproval

303.228 Subsequent State application and modifications of application.
303.229 Determination by the Secretary that a State is eligible.
303.230 Standard for disapproval of an application.

                          Department Procedures

303.231 Notice and hearing before determining that a State is not 
          eligible.
303.232 Hearing Official or Panel.
303.233 Hearing procedures.
303.234 Initial decision; final decision.
303.235 Filing requirements.
303.236 Judicial review.

 Subpart D_Child Find, Evaluations and Assessments, and Individualized 
                          Family Service Plans

                                 General

303.300 General.

 Pre-Referral Procedures--Public Awareness Program and Child Find System

303.301 Public awareness program--information for parents.
303.302 Comprehensive child find system.

                           Referral Procedures

303.303 Referral procedures.
303.304-303.309 [Reserved]

   Post-Referral Procedures--Screenings, Evaluations, and Assessments

303.310 Post-referral timeline (45 days).
303.311-303.319 [Reserved]
303.320 Screening procedures (optional).
303.321 Evaluation of the child and assessment of the child and family.
303.322 Determination that a child is not eligible.

                Individualized Family Service Plan (IFSP)

303.340 Individualized family service plan--general.
303.341 [Reserved]
303.342 Procedures for IFSP development, review, and evaluation.
303.343 IFSP Team meeting and periodic review.
303.344 Content of an IFSP.
303.345 Interim IFSPs--provision of services before evaluations and 
          assessments are completed.
303.346 Responsibility and accountability.

                     Subpart E_Procedural Safeguards

                                 General

303.400 General responsibility of lead agency for procedural safeguards.

    Confidentiality of Personally Identifiable Information and Early 
                          Intervention Records

303.401 Confidentiality and opportunity to examine records.
303.402 Confidentiality.
303.403 Definitions.
303.404 Notice to parents.
303.405 Access rights.
303.406 Record of access.
303.407 Records on more than one child.
303.408 List of types and locations of information.
303.409 Fees for records.
303.410 Amendment of records at a parent's request.
303.411 Opportunity for a hearing.
303.412 Result of hearing.
303.413 Hearing procedures.
303.414 Consent prior to disclosure or use.
303.415 Safeguards.
303.416 Destruction of information.
303.417 Enforcement.

                       Parental Consent and Notice

303.420 Parental consent and ability to decline services.
303.421 Prior written notice and procedural safeguards notice.

                            Surrogate Parents

303.422 Surrogate parents.

                       Dispute Resolution Options

303.430 State dispute resolution options.

[[Page 167]]

                                Mediation

303.431 Mediation.

                       State Complaint Procedures

303.432 Adoption of State complaint procedures.
303.433 Minimum State complaint procedures.
303.434 Filing a complaint.

 States That Choose To Adopt the Part C Due Process Hearing Procedures 
                      Under Section 639 of the Act

303.435 Appointment of an impartial due process hearing officer.
303.436 Parental rights in due process hearing proceedings.
303.437 Convenience of hearings and timelines.
303.438 Civil action.

 States That Choose To Adopt the Part B Due Process Hearing Procedures 
                      Under Section 615 of the Act

303.440 Filing a due process complaint.
303.441 Due process complaint.
303.442 Resolution process.
303.443 Impartial due process hearing.
303.444 Hearing rights.
303.445 Hearing decisions.
303.446 Finality of decision; appeal; impartial review.
303.447 Timelines and convenience of hearings and reviews.
303.448 Civil action.
303.449 State enforcement mechanisms.

             Subpart F_Use of Funds and Payor of Last Resort

                                 General

303.500 Use of funds, payor of last resort and system of payments.

                              Use of Funds

303.501 Permissive use of funds by the lead agency.

                Payor of Last Resort--General Provisions

303.510 Payor of last resort.
303.511 Methods to ensure the provision of, and financial responsibility 
          for, Part C services.

Payor of Last Resort & System of Payments Provisions--Use of Insurance, 
                 Benefits, Systems of Payments, and Fees

303.520 Policies related to use of insurance to pay for Part C services.
303.521 System of payments and fees.

            Subpart G_State Interagency Coordinating Council

303.600 Establishment of Council.
303.601 Composition.
303.602 Meetings.
303.603 Use of funds by the Council.
303.604 Functions of the Council--required duties.
303.605 Authorized activities by the Council.

  Subpart H_-State Monitoring and Enforcement; Federal Monitoring and 
             Enforcement; Reporting; and Allocation of Funds

              Federal and State Monitoring and Enforcement

303.700 State monitoring and enforcement.
303.701 State performance plans and data collection.
303.702 State use of targets and reporting.
303.703 Secretary's review and determination regarding State 
          performance.
303.704 Enforcement.
303.705 Withholding funds.
303.706 Public attention.
303.707 Rule of construction.
303.708 State enforcement.

                      Reports--Program Information

303.720 Data requirements--general.
303.721 Annual report of children served--report requirement.
303.722 Data reporting.
303.723 Annual report of children served--certification.
303.724 Annual report of children served--other responsibilities of the 
          lead agency.

                           Allocation of Funds

303.730 Formula for State allocations.
303.731 Payments to Indians.
303.732 State allotments.
303.733 Reallotment of funds.
303.734 Reservation for State incentive grants.

Appendix A to Part 303--Index for IDEA Part C Regulations

    Authority: 20 U.S.C. 1431 through 1444, unless otherwise noted.

    Source: 76 FR 60244, Sept. 28, 2011, unless otherwise noted.

                            Subpart A_General

                   Purpose and Applicable Regulations

Sec. 303.1  Purpose of the early intervention program for infants and 
          toddlers with disabilities.

    The purpose of this part is to provide financial assistance to 
States to--

[[Page 168]]

    (a) Develop and implement a statewide, comprehensive, coordinated, 
multidisciplinary, interagency system that provides early intervention 
services for infants and toddlers with disabilities and their families;
    (b) Facilitate the coordination of payment for early intervention 
services from Federal, State, local, and private sources (including 
public and private insurance coverage);
    (c) Enhance State capacity to provide quality early intervention 
services and expand and improve existing early intervention services 
being provided to infants and toddlers with disabilities and their 
families;
    (d) Enhance the capacity of State and local agencies and service 
providers to identify, evaluate, and meet the needs of all children, 
including historically underrepresented populations, particularly 
minority, low-income, inner-city, and rural children, and infants and 
toddlers in foster care; and
    (e) Encourage States to expand opportunities for children under 
three years of age who would be at risk of having substantial 
developmental delay if they did not receive early intervention services.

(Authority: 20 U.S.C. 1400(d)(2), 1431(a)(5), 1431(b))

Sec. 303.2  Eligible recipients of an award and applicability of this 
          part.

    (a) Eligible recipients of an award. Eligible recipients include the 
50 States, the Commonwealth of Puerto Rico, the District of Columbia, 
the Secretary of the Interior, and the following jurisdictions: Guam, 
American Samoa, the United States Virgin Islands, and the Commonwealth 
of the Northern Mariana Islands.
    (b) Applicability of this part.
    (1) The provisions of this part apply to--
    (i) The State lead agency and any EIS provider that is part of the 
statewide system of early intervention, regardless of whether that EIS 
provider receives funds under part C of the Act; and
    (ii) All children referred to the part C program, including infants 
and toddlers with disabilities consistent with the definitions in 
Sec. Sec. 303.6 and 303.21, and their families.
    (2) The provisions of this part do not apply to any child with a 
disability receiving a free appropriate public education or FAPE under 
34 CFR part 300.

(Authority: 20 U.S.C. 1401(31), 1434, 1435(a)(10)(A))

Sec. 303.3  Applicable regulations.

    (a) The following regulations apply to this part:
    (1) The regulations in this part 303.
    (2) The Education Department General Administrative Regulations 
(EDGAR), including 34 CFR parts 76 (except for Sec. 76.103), 77, 79, 
80, 81, 82, 84, 85, and 86.
    (b) In applying the regulations cited in paragraph (a)(2) of this 
section, any reference to--
    (1) State educational agency means the lead agency under this part; 
and
    (2) Education records or records means early intervention records.

(Authority: 20 U.S.C. 1221(b), 1221e-3, 1431-1444)

                      Definitions Used in This Part

Sec. 303.4  Act.

    Act means the Individuals with Disabilities Education Act, as 
amended.

(Authority: 20 U.S.C. 1400(a))

Sec. 303.5  At-risk infant or toddler.

    At-risk infant or toddler means an individual under three years of 
age who would be at risk of experiencing a substantial developmental 
delay if early intervention services were not provided to the 
individual. At the State's discretion, at-risk infant or toddler may 
include an infant or toddler who is at risk of experiencing 
developmental delays because of biological or environmental factors that 
can be identified (including low birth weight, respiratory distress as a 
newborn, lack of oxygen, brain hemorrhage, infection, nutritional 
deprivation, a history of abuse or neglect, and being directly affected 
by illegal substance abuse or withdrawal symptoms resulting from 
prenatal drug exposure).

(Authority: 20 U.S.C. 1432(1), 1432(5)(B)(i) and 1437(a)(6))

[[Page 169]]

Sec. 303.6  Child.

    Child means an individual under the age of six and may include an 
infant or toddler with a disability, as that term is defined in Sec. 
303.21.

(Authority: 20 U.S.C. 1432(5))

Sec. 303.7  Consent.

    Consent means that--
    (a) The parent has been fully informed of all information relevant 
to the activity for which consent is sought, in the parent's native 
language, as defined in Sec. 303.25;
    (b) The parent understands and agrees in writing to the carrying out 
of the activity for which the parent's consent is sought, and the 
consent form describes that activity and lists the early intervention 
records (if any) that will be released and to whom they will be 
released; and
    (c)(1) The parent understands that the granting of consent is 
voluntary on the part of the parent and may be revoked at any time.
    (2) If a parent revokes consent, that revocation is not retroactive 
(i.e., it does not apply to an action that occurred before the consent 
was revoked).

(Authority: 20 U.S.C. 1439)

Sec. 303.8  Council.

    Council means the State Interagency Coordinating Council that meets 
the requirements of subpart G of this part.

(Authority: 20 U.S.C. 1432(2))

Sec. 303.9  Day.

    Day means calendar day, unless otherwise indicated.

(Authority: 20 U.S.C. 1221e-3)

Sec. 303.10  Developmental delay.

    Developmental delay, when used with respect to a child residing in a 
State, has the meaning given that term by the State under Sec. 303.111.

(Authority: 20 U.S.C. 1432(3))

Sec. 303.11  Early intervention service program.

    Early intervention service program or EIS program means an entity 
designated by the lead agency for reporting under Sec. Sec. 303.700 
through 303.702.

(Authority: 20 U.S.C. 1416, 1431-1444)

Sec. 303.12  Early intervention service provider.

    (a) Early intervention service provider or EIS provider means an 
entity (whether public, private, or nonprofit) or an individual that 
provides early intervention services under part C of the Act, whether or 
not the entity or individual receives Federal funds under part C of the 
Act, and may include, where appropriate, the lead agency and a public 
agency responsible for providing early intervention services to infants 
and toddlers with disabilities in the State under part C of the Act.
    (b) An EIS provider is responsible for--
    (1) Participating in the multidisciplinary individualized family 
service plan (IFSP) Team's ongoing assessment of an infant or toddler 
with a disability and a family-directed assessment of the resources, 
priorities, and concerns of the infant's or toddler's family, as related 
to the needs of the infant or toddler, in the development of integrated 
goals and outcomes for the IFSP;
    (2) Providing early intervention services in accordance with the 
IFSP of the infant or toddler with a disability; and
    (3) Consulting with and training parents and others regarding the 
provision of the early intervention services described in the IFSP of 
the infant or toddler with a disability.

(Authority: 20 U.S.C. 1431-1444)

Sec. 303.13  Early intervention services.

    (a) General. Early intervention services means developmental 
services that--
    (1) Are provided under public supervision;
    (2) Are selected in collaboration with the parents;
    (3) Are provided at no cost, except, subject to Sec. Sec. 303.520 
and 303.521, where Federal or State law provides for a system of 
payments by families, including a schedule of sliding fees;
    (4) Are designed to meet the developmental needs of an infant or 
toddler with a disability and the needs of the family to assist 
appropriately in the

[[Page 170]]

infant's or toddler's development, as identified by the IFSP Team, in 
any one or more of the following areas, including--
    (i) Physical development;
    (ii) Cognitive development;
    (iii) Communication development;
    (iv) Social or emotional development; or
    (v) Adaptive development;
    (5) Meet the standards of the State in which the early intervention 
services are provided, including the requirements of part C of the Act;
    (6) Include services identified under paragraph (b) of this section;
    (7) Are provided by qualified personnel (as that term is defined in 
Sec. 303.31), including the types of personnel listed in paragraph (c) 
of this section;
    (8) To the maximum extent appropriate, are provided in natural 
environments, as defined in Sec. 303.26 and consistent with Sec. Sec. 
303.126 and 303.344(d); and
    (9) Are provided in conformity with an IFSP adopted in accordance 
with section 636 of the Act and Sec. 303.20.
    (b) Types of early intervention services. Subject to paragraph (d) 
of this section, early intervention services include the following 
services defined in this paragraph:
    (1) Assistive technology device and service are defined as follows:
    (i) Assistive technology device means any item, piece of equipment, 
or product system, whether acquired commercially off the shelf, 
modified, or customized, that is used to increase, maintain, or improve 
the functional capabilities of an infant or toddler with a disability. 
The term does not include a medical device that is surgically implanted, 
including a cochlear implant, or the optimization (e.g., mapping), 
maintenance, or replacement of that device.
    (ii) Assistive technology service means any service that directly 
assists an infant or toddler with a disability in the selection, 
acquisition, or use of an assistive technology device. The term 
includes--
    (A) The evaluation of the needs of an infant or toddler with a 
disability, including a functional evaluation of the infant or toddler 
with a disability in the child's customary environment;
    (B) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by infants or toddlers with 
disabilities;
    (C) Selecting, designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing assistive technology devices;
    (D) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing education and rehabilitation plans and programs;
    (E) Training or technical assistance for an infant or toddler with a 
disability or, if appropriate, that child's family; and
    (F) Training or technical assistance for professionals (including 
individuals providing education or rehabilitation services) or other 
individuals who provide services to, or are otherwise substantially 
involved in the major life functions of, infants and toddlers with 
disabilities.
    (2) Audiology services include--
    (i) Identification of children with auditory impairments, using at-
risk criteria and appropriate audiologic screening techniques;
    (ii) Determination of the range, nature, and degree of hearing loss 
and communication functions, by use of audiological evaluation 
procedures;
    (iii) Referral for medical and other services necessary for the 
habilitation or rehabilitation of an infant or toddler with a disability 
who has an auditory impairment;
    (iv) Provision of auditory training, aural rehabilitation, speech 
reading and listening devices, orientation and training, and other 
services;
    (v) Provision of services for prevention of hearing loss; and
    (vi) Determination of the child's individual amplification, 
including selecting, fitting, and dispensing appropriate listening and 
vibrotactile devices, and evaluating the effectiveness of those devices.
    (3) Family training, counseling, and home visits means services 
provided, as appropriate, by social workers, psychologists, and other 
qualified personnel to assist the family of an infant

[[Page 171]]

or toddler with a disability in understanding the special needs of the 
child and enhancing the child's development.
    (4) Health services has the meaning given the term in Sec. 303.16.
    (5) Medical services means services provided by a licensed physician 
for diagnostic or evaluation purposes to determine a child's 
developmental status and need for early intervention services.
    (6) Nursing services include--
    (i) The assessment of health status for the purpose of providing 
nursing care, including the identification of patterns of human response 
to actual or potential health problems;
    (ii) The provision of nursing care to prevent health problems, 
restore or improve functioning, and promote optimal health and 
development; and
    (iii) The administration of medications, treatments, and regimens 
prescribed by a licensed physician.
    (7) Nutrition services include--
    (i) Conducting individual assessments in--
    (A) Nutritional history and dietary intake;
    (B) Anthropometric, biochemical, and clinical variables;
    (C) Feeding skills and feeding problems; and
    (D) Food habits and food preferences;
    (ii) Developing and monitoring appropriate plans to address the 
nutritional needs of children eligible under this part, based on the 
findings in paragraph (b)(7)(i) of this section; and
    (iii) Making referrals to appropriate community resources to carry 
out nutrition goals.
    (8) Occupational therapy includes services to address the functional 
needs of an infant or toddler with a disability related to adaptive 
development, adaptive behavior, and play, and sensory, motor, and 
postural development. These services are designed to improve the child's 
functional ability to perform tasks in home, school, and community 
settings, and include--
    (i) Identification, assessment, and intervention;
    (ii) Adaptation of the environment, and selection, design, and 
fabrication of assistive and orthotic devices to facilitate development 
and promote the acquisition of functional skills; and
    (iii) Prevention or minimization of the impact of initial or future 
impairment, delay in development, or loss of functional ability.
    (9) Physical therapy includes services to address the promotion of 
sensorimotor function through enhancement of musculoskeletal status, 
neurobehavioral organization, perceptual and motor development, 
cardiopulmonary status, and effective environmental adaptation. These 
services include--
    (i) Screening, evaluation, and assessment of children to identify 
movement dysfunction;
    (ii) Obtaining, interpreting, and integrating information 
appropriate to program planning to prevent, alleviate, or compensate for 
movement dysfunction and related functional problems; and
    (iii) Providing individual and group services or treatment to 
prevent, alleviate, or compensate for, movement dysfunction and related 
functional problems.
    (10) Psychological services include--
    (i) Administering psychological and developmental tests and other 
assessment procedures;
    (ii) Interpreting assessment results;
    (iii) Obtaining, integrating, and interpreting information about 
child behavior and child and family conditions related to learning, 
mental health, and development; and
    (iv) Planning and managing a program of psychological services, 
including psychological counseling for children and parents, family 
counseling, consultation on child development, parent training, and 
education programs.
    (11) Service coordination services has the meaning given the term in 
Sec. 303.34.
    (12) Sign language and cued language services include teaching sign 
language, cued language, and auditory/oral language, providing oral 
transliteration services (such as amplification), and providing sign and 
cued language interpretation.
    (13) Social work services include--
    (i) Making home visits to evaluate a child's living conditions and 
patterns of parent-child interaction;
    (ii) Preparing a social or emotional developmental assessment of the 
infant or toddler within the family context;

[[Page 172]]

    (iii) Providing individual and family-group counseling with parents 
and other family members, and appropriate social skill-building 
activities with the infant or toddler and parents;
    (iv) Working with those problems in the living situation (home, 
community, and any center where early intervention services are 
provided) of an infant or toddler with a disability and the family of 
that child that affect the child's maximum utilization of early 
intervention services; and
    (v) Identifying, mobilizing, and coordinating community resources 
and services to enable the infant or toddler with a disability and the 
family to receive maximum benefit from early intervention services.
    (14) Special instruction includes--
    (i) The design of learning environments and activities that promote 
the infant's or toddler's acquisition of skills in a variety of 
developmental areas, including cognitive processes and social 
interaction;
    (ii) Curriculum planning, including the planned interaction of 
personnel, materials, and time and space, that leads to achieving the 
outcomes in the IFSP for the infant or toddler with a disability;
    (iii) Providing families with information, skills, and support 
related to enhancing the skill development of the child; and
    (iv) Working with the infant or toddler with a disability to enhance 
the child's development.
    (15) Speech-language pathology services include--
    (i) Identification of children with communication or language 
disorders and delays in development of communication skills, including 
the diagnosis and appraisal of specific disorders and delays in those 
skills;
    (ii) Referral for medical or other professional services necessary 
for the habilitation or rehabilitation of children with communication or 
language disorders and delays in development of communication skills; 
and
    (iii) Provision of services for the habilitation, rehabilitation, or 
prevention of communication or language disorders and delays in 
development of communication skills.
    (16) Transportation and related costs include the cost of travel and 
other costs that are necessary to enable an infant or toddler with a 
disability and the child's family to receive early intervention 
services.
    (17) Vision services mean--
    (i) Evaluation and assessment of visual functioning, including the 
diagnosis and appraisal of specific visual disorders, delays, and 
abilities that affect early childhood development;
    (ii) Referral for medical or other professional services necessary 
for the habilitation or rehabilitation of visual functioning disorders, 
or both; and
    (iii) Communication skills training, orientation and mobility 
training for all environments, visual training, and additional training 
necessary to activate visual motor abilities.
    (c) Qualified personnel. The following are the types of qualified 
personnel who provide early intervention services under this part:
    (1) Audiologists.
    (2) Family therapists.
    (3) Nurses.
    (4) Occupational therapists.
    (5) Orientation and mobility specialists.
    (6) Pediatricians and other physicians for diagnostic and evaluation 
purposes.
    (7) Physical therapists.
    (8) Psychologists.
    (9) Registered dieticians.
    (10) Social workers.
    (11) Special educators, including teachers of children with hearing 
impairments (including deafness) and teachers of children with visual 
impairments (including blindness).
    (12) Speech and language pathologists.
    (13) Vision specialists, including ophthalmologists and 
optometrists.
    (d) Other services. The services and personnel identified and 
defined in paragraphs (b) and (c) of this section do not comprise 
exhaustive lists of the types of services that may constitute early 
intervention services or the types of qualified personnel that may 
provide early intervention services. Nothing in this section prohibits 
the identification in the IFSP of another type of service as an early 
intervention service

[[Page 173]]

provided that the service meets the criteria identified in paragraph (a) 
of this section or of another type of personnel that may provide early 
intervention services in accordance with this part, provided such 
personnel meet the requirements in Sec. 303.31.

(Authority: 20 U.S.C. 1432(4))

Sec. 303.14  Elementary school.

    Elementary school means a nonprofit institutional day or residential 
school, including a public elementary charter school, that provides 
elementary education, as determined under State law.

(Authority: 20 U.S.C. 1401(6))

Sec. 303.15  Free appropriate public education.

    Free appropriate public education or FAPE, as used in Sec. Sec. 
303.211, 303.501, and 303.521, means special education and related 
services that--
    (a) Are provided at public expense, under public supervision and 
direction, and without charge;
    (b) Meet the standards of the State educational agency (SEA), 
including the requirements of part B of the Act;
    (c) Include an appropriate preschool, elementary school, or 
secondary school education in the State involved; and
    (d) Are provided in conformity with an individualized education 
program (IEP) that meets the requirements of 34 CFR 300.320 through 
300.324.

(Authority: 20 U.S.C. 1401(9))

Sec. 303.16  Health services.

    (a) Health services mean services necessary to enable an otherwise 
eligible child to benefit from the other early intervention services 
under this part during the time that the child is eligible to receive 
early intervention services.
    (b) The term includes--
    (1) Such services as clean intermittent catheterization, 
tracheostomy care, tube feeding, the changing of dressings or colostomy 
collection bags, and other health services; and
    (2) Consultation by physicians with other service providers 
concerning the special health care needs of infants and toddlers with 
disabilities that will need to be addressed in the course of providing 
other early intervention services.
    (c) The term does not include--
    (1) Services that are--
    (i) Surgical in nature (such as cleft palate surgery, surgery for 
club foot, or the shunting of hydrocephalus);
    (ii) Purely medical in nature (such as hospitalization for 
management of congenital heart ailments, or the prescribing of medicine 
or drugs for any purpose); or
    (iii) Related to the implementation, optimization (e.g., mapping), 
maintenance, or replacement of a medical device that is surgically 
implanted, including a cochlear implant.
    (A) Nothing in this part limits the right of an infant or toddler 
with a disability with a surgically implanted device (e.g., cochlear 
implant) to receive the early intervention services that are identified 
in the child's IFSP as being needed to meet the child's developmental 
outcomes.
    (B) Nothing in this part prevents the EIS provider from routinely 
checking that either the hearing aid or the external components of a 
surgically implanted device (e.g., cochlear implant) of an infant or 
toddler with a disability are functioning properly;
    (2) Devices (such as heart monitors, respirators and oxygen, and 
gastrointestinal feeding tubes and pumps) necessary to control or treat 
a medical condition; and
    (3) Medical-health services (such as immunizations and regular 
``well-baby'' care) that are routinely recommended for all children.

(Authority: 20 U.S.C. 1432(4))

Sec. 303.17  Homeless children.

    Homeless children means children who meet the definition given the 
term homeless children and youths in section 725 (42 U.S.C. 11434a) of 
the McKinney-Vento Homeless Assistance Act, as amended, 42 U.S.C. 11431 
et seq.

(Authority: 20 U.S.C. 1401(11))

Sec. 303.18  Include; including.

    Include or including means that the items named are not all of the 
possible items that are covered, whether like or unlike the ones named.

(Authority: 20 U.S.C. 1221e-3)

[[Page 174]]

Sec. 303.19  Indian; Indian tribe.

    (a) Indian means an individual who is a member of an Indian tribe.
    (b) Indian tribe means any Federal or State Indian tribe, band, 
rancheria, pueblo, colony, or community, including any Alaska Native 
village or regional village corporation (as defined in or established 
under the Alaska Native Claims Settlement Act, 43 U.S.C. 1601 et seq.).
    (c) Nothing in this definition is intended to indicate that the 
Secretary of the Interior is required to provide services or funding to 
a State Indian Tribe that is not listed in the Federal Register list of 
Indian entities recognized as eligible to receive services from the 
United States, published pursuant to section 104 of the Federally 
Recognized Indian Tribe List Act of 1994, 25 U.S.C. 479a-1.

(Authority: 20 U.S.C. 1401(12)-(13))

Sec. 303.20  Individualized family service plan.

    Individualized family service plan or IFSP means a written plan for 
providing early intervention services to an infant or toddler with a 
disability under this part and the infant's or toddler's family that--
    (a) Is based on the evaluation and assessment described in Sec. 
303.321;
    (b) Includes the content specified in Sec. 303.344;
    (c) Is implemented as soon as possible once parental consent for the 
early intervention services in the IFSP is obtained (consistent with 
Sec. 303.420); and
    (d) Is developed in accordance with the IFSP procedures in 
Sec. Sec. 303.342, 303.343, and 303.345.

(Authority: 20 U.S.C. 1401(15), 1435(a)(4), 1436)

Sec. 303.21  Infant or toddler with a disability.

    (a) Infant or toddler with a disability means an individual under 
three years of age who needs early intervention services because the 
individual--
    (1) Is experiencing a developmental delay, as measured by 
appropriate diagnostic instruments and procedures, in one or more of the 
following areas:
    (i) Cognitive development.
    (ii) Physical development, including vision and hearing.
    (iii) Communication development.
    (iv) Social or emotional development.
    (v) Adaptive development; or
    (2) Has a diagnosed physical or mental condition that--
    (i) Has a high probability of resulting in developmental delay; and
    (ii) Includes conditions such as chromosomal abnormalities; genetic 
or congenital disorders; sensory impairments; inborn errors of 
metabolism; disorders reflecting disturbance of the development of the 
nervous system; congenital infections; severe attachment disorders; and 
disorders secondary to exposure to toxic substances, including fetal 
alcohol syndrome.
    (b) Infant or toddler with a disability may include, at a State's 
discretion, an at-risk infant or toddler (as defined in Sec. 303.5).
    (c) Infant or toddler with a disability may include, at a State's 
discretion, a child with a disability who is eligible for services under 
section 619 of the Act and who previously received services under this 
part until the child enters, or is eligible under State law to enter, 
kindergarten or elementary school, as appropriate, provided that any 
programs under this part must include--
    (1) An educational component that promotes school readiness and 
incorporates pre-literacy, language, and numeracy skills for children 
ages three and older who receive part C services pursuant to Sec. 
303.211; and
    (2) A written notification to parents of a child with a disability 
who is eligible for services under section 619 of the Act and who 
previously received services under this part of their rights and 
responsibilities in determining whether their child will continue to 
receive services under this part or participate in preschool programs 
under section 619 of the Act.

(Authority: 20 U.S.C. 1401(16), 1432(5))

Sec. 303.22  Lead agency.

    Lead agency means the agency designated by the State's Governor 
under section 635(a)(10) of the Act and Sec. 303.120 that receives 
funds under section 643 of

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the Act to administer the State's responsibilities under part C of the 
Act.

(Authority: 20 U.S.C. 1435(a)(10))

Sec. 303.23  Local educational agency.

    (a) General. Local educational agency or LEA means a public board of 
education or other public authority legally constituted within a State 
for either administrative control or direction of, or to perform a 
service function for, public elementary schools or secondary schools in 
a city, county, township, school district, or other political 
subdivision of a State, or for a combination of school districts or 
counties as are recognized in a State as an administrative agency for 
its public elementary schools or secondary schools.
    (b) Educational service agencies and other public institutions or 
agencies. The term includes the following:
    (1) Educational service agency, defined as a regional public 
multiservice agency--
    (i) Authorized by State law to develop, manage, and provide services 
or programs to LEAs; and
    (ii) Recognized as an administrative agency for purposes of the 
provision of special education and related services provided within 
public elementary schools and secondary schools of the State.
    (2) Any other public institution or agency having administrative 
control and direction of a public elementary school or secondary school, 
including a public charter school that is established as an LEA under 
State law.
    (3) Entities that meet the definition of intermediate educational 
unit or IEU in section 602(23) of the Act, as in effect prior to June 4, 
1997. Under that definition an intermediate educational unit or IEU 
means any public authority other than an LEA that--
    (i) Is under the general supervision of a State educational agency;
    (ii) Is established by State law for the purpose of providing FAPE 
on a regional basis; and
    (iii) Provides special education and related services to children 
with disabilities within the State.
    (c) BIE-funded schools. The term includes an elementary school or 
secondary school funded by the Bureau of Indian Education, and not 
subject to the jurisdiction of any SEA other than the Bureau of Indian 
Education, but only to the extent that the inclusion makes the school 
eligible for programs for which specific eligibility is not provided to 
the school in another provision of law and the school does not have a 
student population that is smaller than the student population of the 
LEA receiving assistance under the Act with the smallest student 
population.

(Authority: 20 U.S.C. 1401(5), 1401(19))

Sec. 303.24  Multidisciplinary.

    Multidisciplinary means the involvement of two or more separate 
disciplines or professions and with respect to--
    (a) Evaluation of the child in Sec. Sec. 303.113 and 
303.321(a)(1)(i) and assessments of the child and family in Sec. 
303.321(a)(1)(ii), may include one individual who is qualified in more 
than one discipline or profession; and
    (b) The IFSP Team in Sec. 303.340 must include the involvement of 
the parent and two or more individuals from separate disciplines or 
professions and one of these individuals must be the service coordinator 
(consistent with Sec. 303.343(a)(1)(iv)).

(Authority: 20 U.S.C. 1221e-3, 1435(a)(3), 1436(a)(1), 1436(a)(3))

Sec. 303.25  Native language.

    (a) Native language, when used with respect to an individual who is 
limited English proficient or LEP (as that term is defined in section 
602(18) of the Act), means--
    (1) The language normally used by that individual, or, in the case 
of a child, the language normally used by the parents of the child, 
except as provided in paragraph (a)(2) of this section; and
    (2) For evaluations and assessments conducted pursuant to Sec. 
303.321(a)(5) and (a)(6), the language normally used by the child, if 
determined developmentally appropriate for the child by qualified 
personnel conducting the evaluation or assessment.
    (b) Native language, when used with respect to an individual who is 
deaf or hard of hearing, blind or visually impaired, or for an 
individual with no

[[Page 176]]

written language, means the mode of communication that is normally used 
by the individual (such as sign language, braille, or oral 
communication).

(Authority: 20 U.S.C. 1401(20))

Sec. 303.26  Natural environments.

    Natural environments means settings that are natural or typical for 
a same-aged infant or toddler without a disability, may include the home 
or community settings, and must be consistent with the provisions of 
Sec. 303.126.

(Authority: 20 U.S.C. 1432, 1435, 1436)

Sec. 303.27  Parent.

    (a) Parent means--
    (1) A biological or adoptive parent of a child;
    (2) A foster parent, unless State law, regulations, or contractual 
obligations with a State or local entity prohibit a foster parent from 
acting as a parent;
    (3) A guardian generally authorized to act as the child's parent, or 
authorized to make early intervention, educational, health or 
developmental decisions for the child (but not the State if the child is 
a ward of the State);
    (4) An individual acting in the place of a biological or adoptive 
parent (including a grandparent, stepparent, or other relative) with 
whom the child lives, or an individual who is legally responsible for 
the child's welfare; or
    (5) A surrogate parent who has been appointed in accordance with 
Sec. 303.422 or section 639(a)(5) of the Act.
    (b)(1) Except as provided in paragraph (b)(2) of this section, the 
biological or adoptive parent, when attempting to act as the parent 
under this part and when more than one party is qualified under 
paragraph (a) of this section to act as a parent, must be presumed to be 
the parent for purposes of this section unless the biological or 
adoptive parent does not have legal authority to make educational or 
early intervention service decisions for the child.
    (2) If a judicial decree or order identifies a specific person or 
persons under paragraphs (a)(1) through (a)(4) of this section to act as 
the ``parent'' of a child or to make educational or early intervention 
service decisions on behalf of a child, then the person or persons must 
be determined to be the ``parent'' for purposes of part C of the Act, 
except that if an EIS provider or a public agency provides any services 
to a child or any family member of that child, that EIS provider or 
public agency may not act as the parent for that child.

(Authority: 20 U.S.C. 1401(23), 1439(a)(5))

Sec. 303.28  Parent training and information center.

    Parent training and information center means a center assisted under 
section 671 or 672 of the Act.

(Authority: 20 U.S.C. 1401(25))

Sec. 303.29  Personally identifiable information.

    Personally identifiable information means personally identifiable 
information as defined in 34 CFR 99.3, as amended, except that the term 
``student'' in the definition of personally identifiable information in 
34 CFR 99.3 means ``child'' as used in this part and any reference to 
``school'' means ``EIS provider'' as used in this part.

(Authority: 20 U.S.C. 1415, 1439)

Sec. 303.30  Public agency.

    As used in this part, public agency means the lead agency and any 
other agency or political subdivision of the State.

(Authority: 20 U.S.C. 1435(a)(10))

Sec. 303.31  Qualified personnel.

    Qualified personnel means personnel who have met State approved or 
recognized certification, licensing, registration, or other comparable 
requirements that apply to the areas in which the individuals are 
conducting evaluations or assessments or providing early intervention 
services.

(Authority: 20 U.S.C. 1432(4)(F))

Sec. 303.32  Scientifically based research.

    Scientifically based research has the meaning given the term in 
section 9101(37) of the Elementary and Secondary Education Act of 1965, 
as amended (ESEA). In applying the ESEA to the regulations under part C 
of the Act, any reference to ``education

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activities and programs'' refers to ``early intervention services.''

(Authority: 20 U.S.C. 1435(a)(2))

Sec. 303.33  Secretary.

    Secretary means the Secretary of Education.

(Authority: 20 U.S.C. 1401(28))

Sec. 303.34  Service coordination services (case management).

    (a) General. (1) As used in this part, service coordination services 
mean services provided by a service coordinator to assist and enable an 
infant or toddler with a disability and the child's family to receive 
the services and rights, including procedural safeguards, required under 
this part.
    (2) Each infant or toddler with a disability and the child's family 
must be provided with one service coordinator who is responsible for--
    (i) Coordinating all services required under this part across agency 
lines; and
    (ii) Serving as the single point of contact for carrying out the 
activities described in paragraphs (a)(3) and (b) of this section.
    (3) Service coordination is an active, ongoing process that 
involves--
    (i) Assisting parents of infants and toddlers with disabilities in 
gaining access to, and coordinating the provision of, the early 
intervention services required under this part; and
    (ii) Coordinating the other services identified in the IFSP under 
Sec. 303.344(e) that are needed by, or are being provided to, the 
infant or toddler with a disability and that child's family.
    (b) Specific service coordination services. Service coordination 
services include--
    (1) Assisting parents of infants and toddlers with disabilities in 
obtaining access to needed early intervention services and other 
services identified in the IFSP, including making referrals to providers 
for needed services and scheduling appointments for infants and toddlers 
with disabilities and their families;
    (2) Coordinating the provision of early intervention services and 
other services (such as educational, social, and medical services that 
are not provided for diagnostic or evaluative purposes) that the child 
needs or is being provided;
    (3) Coordinating evaluations and assessments;
    (4) Facilitating and participating in the development, review, and 
evaluation of IFSPs;
    (5) Conducting referral and other activities to assist families in 
identifying available EIS providers;
    (6) Coordinating, facilitating, and monitoring the delivery of 
services required under this part to ensure that the services are 
provided in a timely manner;
    (7) Conducting follow-up activities to determine that appropriate 
part C services are being provided;
    (8) Informing families of their rights and procedural safeguards, as 
set forth in subpart E of this part and related resources;
    (9) Coordinating the funding sources for services required under 
this part; and
    (10) Facilitating the development of a transition plan to preschool, 
school, or, if appropriate, to other services.
    (c) Use of the term service coordination or service coordination 
services. The lead agency's or an EIS provider's use of the term service 
coordination or service coordination services does not preclude 
characterization of the services as case management or any other service 
that is covered by another payor of last resort (including Title XIX of 
the Social Security Act--Medicaid), for purposes of claims in compliance 
with the requirements of Sec. Sec. 303.501 through 303.521 (Payor of 
last resort provisions).

(Authority: 20 U.S.C. 1432(4), 1435(a)(4), 1436(d)(7), 1440)

Sec. 303.35  State.

    Except as provided in Sec. 303.732(d)(3) (regarding State 
allotments under this part), State means each of the 50 States, the 
Commonwealth of Puerto Rico, the District of Columbia, and the four 
outlying areas and jurisdictions of Guam, American Samoa, the United 
States Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands.

(Authority: 20 U.S.C. 1401(31))

[[Page 178]]

Sec. 303.36  State educational agency.

    (a) State educational agency or SEA means the State board of 
education or other agency or officer primarily responsible for the State 
supervision of public elementary schools and secondary schools, or, if 
there is no such officer or agency, an officer or agency designated by 
the Governor or by State law.
    (b) The term includes the agency that receives funds under sections 
611 and 619 of the Act to administer the State's responsibilities under 
part B of the Act.

(Authority: 20 U.S.C. 1401(32))

Sec. 303.37  Ward of the State.

    (a) General. Subject to paragraph (b) of this section, ward of the 
State means a child who, as determined by the State where the child 
resides, is--
    (1) A foster child;
    (2) A ward of the State; or
    (3) In the custody of a public child welfare agency.
    (b) Exception. Ward of the State does not include a foster child who 
has a foster parent who meets the definition of a parent in Sec. 
303.27.

(Authority: 20 U.S.C. 1401(36))

Subpart B_State Eligibility for a Grant and Requirements for a Statewide 
                                 System

                    General Authority and Eligibility

Sec. 303.100  General authority.

    The Secretary, in accordance with part C of the Act, makes grants to 
States (from their allotments under section 643 of the Act) to assist 
each State to maintain and implement a statewide, comprehensive, 
coordinated, multidisciplinary, interagency system to provide early 
intervention services for infants and toddlers with disabilities and 
their families.

(Authority: 20 U.S.C. 1433)

Sec. 303.101  State eligibility--requirements for a grant under this 
          part.

    In order to be eligible for a grant under part C of the Act for any 
fiscal year, a State must meet the following conditions:
    (a) Assurances regarding early intervention services and a statewide 
system. The State must provide assurances to the Secretary that--
    (1) The State has adopted a policy that appropriate early 
intervention services, as defined in Sec. 303.13, are available to all 
infants and toddlers with disabilities in the State and their families, 
including--
    (i) Indian infants and toddlers with disabilities and their families 
residing on a reservation geographically located in the State;
    (ii) Infants and toddlers with disabilities who are homeless 
children and their families; and
    (iii) Infants and toddlers with disabilities who are wards of the 
State; and
    (2) The State has in effect a statewide system of early intervention 
services that meets the requirements of section 635 of the Act, 
including policies and procedures that address, at a minimum, the 
components required in Sec. Sec. 303.111 through 303.126.
    (b) State application and assurances. The State must provide 
information and assurances to the Secretary, in accordance with subpart 
C of this part, including--
    (1) Information that shows that the State meets the State 
application requirements in Sec. Sec. 303.200 through 303.212; and
    (2) Assurances that the State also meets the requirements in 
Sec. Sec. 303.221 through 303.227.
    (c) Approval before implementation. The State must obtain approval 
by the Secretary before implementing any policy or procedure required to 
be submitted as part of the State's application in Sec. Sec. 303.203, 
303.204, 303.206, 303.207, 303.208, 303.209, and 303.211.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1434, 1435, 1437)

    State Conformity With Part C of the Act and Abrogation of State 
                           Sovereign Immunity

Sec. 303.102  State conformity with Part C of the Act.

    Each State that receives funds under part C of the Act must ensure 
that any State rules, regulations, and policies

[[Page 179]]

relating to this part conform to the purposes and requirements of this 
part.

(Authority: 20 U.S.C. 1407(a)(1))

Sec. 303.103  Abrogation of State sovereign immunity.

    (a) General. A State is not immune under the 11th amendment of the 
Constitution of the United States from suit in Federal court for a 
violation of part C of the Act.
    (b) Remedies. In a suit against a State for a violation of part C of 
the Act, remedies (including remedies both at law and in equity) are 
available for such a violation to the same extent as those remedies are 
available for such a violation in a suit against any public entity other 
than a State.
    (c) Effective date. Paragraphs (a) and (b) of this section apply 
with respect to violations that occur in whole or part after October 30, 
1990, the date of enactment of the Education of the Handicapped Act 
Amendments of 1990.

(Authority: 20 U.S.C. 1403)

                       Equipment and Construction

Sec. 303.104  Acquisition of equipment and construction or alteration 
          of facilities.

    (a) General. If the Secretary determines that a program authorized 
under part C of the Act will be improved by permitting program funds to 
be used to acquire appropriate equipment or to construct new facilities 
or alter existing facilities, the Secretary may allow the use of those 
funds for those purposes.
    (b) Compliance with certain regulations. Any construction of new 
facilities or alteration of existing facilities under paragraph (a) of 
this section must comply with the requirements of--
    (1) Appendix A of part 36 of title 28, Code of Federal Regulations 
(commonly known as the ``Americans with Disabilities Act Accessibility 
Guidelines for Buildings and Facilities''); or
    (2) Appendix A of subpart 101-19.6 of title 41, Code of Federal 
Regulations (commonly known as the ``Uniform Federal Accessibility 
Standards'').

(Authority: 20 U.S.C. 1404)

   Positive Efforts To Employ and Advance Qualified Individuals With 
                              Disabilities

Sec. 303.105  Positive efforts to employ and advance qualified 
          individuals with disabilities.

    Each recipient of assistance under part C of the Act must make 
positive efforts to employ and advance in employment, qualified 
individuals with disabilities in programs assisted under part C of the 
Act.

(Authority: 20 U.S.C. 1405)

                Minimum Components of a Statewide System

Sec. 303.110  Minimum components of a statewide system.

    Each statewide system (system) must include, at a minimum, the 
components described in Sec. Sec. 303.111 through 303.126.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a))

Sec. 303.111  State definition of developmental delay.

    Each system must include the State's rigorous definition of 
developmental delay, consistent with Sec. Sec. 303.10 and 303.203(c), 
that will be used by the State in carrying out programs under part C of 
the Act in order to appropriately identify infants and toddlers with 
disabilities who are in need of services under part C of the Act. The 
definition must--
    (a) Describe, for each of the areas listed in Sec. 303.21(a)(1), 
the evaluation and assessment procedures, consistent with Sec. 303.321, 
that will be used to measure a child's development; and
    (b) Specify the level of developmental delay in functioning or other 
comparable criteria that constitute a developmental delay in one or more 
of the developmental areas identified in Sec. 303.21(a)(1).

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(1))

[[Page 180]]

Sec. 303.112  Availability of early intervention services.

    Each system must include a State policy that is in effect and that 
ensures that appropriate early intervention services are based on 
scientifically based research, to the extent practicable, and are 
available to all infants and toddlers with disabilities and their 
families, including--
    (a) Indian infants and toddlers with disabilities and their families 
residing on a reservation geographically located in the State; and
    (b) Infants and toddlers with disabilities who are homeless children 
and their families.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(2))

Sec. 303.113  Evaluation, assessment, and nondiscriminatory procedures.

    (a) Subject to paragraph (b) of this section, each system must 
ensure the performance of--
    (1) A timely, comprehensive, multidisciplinary evaluation of the 
functioning of each infant or toddler with a disability in the State; 
and
    (2) A family-directed identification of the needs of the family of 
the infant or toddler to assist appropriately in the development of the 
infant or toddler.
    (b) The evaluation and family-directed identification required in 
paragraph (a) of this section must meet the requirements of Sec. 
303.321.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(3))

Sec. 303.114  Individualized family service plan (IFSP).

    Each system must ensure, for each infant or toddler with a 
disability and his or her family in the State, that an IFSP, as defined 
in Sec. 303.20, is developed and implemented that meets the 
requirements of Sec. Sec. 303.340 through 303.345, and that includes 
service coordination services, as defined in Sec. 303.34.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(4))

Sec. 303.115  Comprehensive child find system.

    Each system must include a comprehensive child find system that 
meets the requirements in Sec. Sec. 303.302 and 303.303.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(5))

Sec. 303.116  Public awareness program.

    Each system must include a public awareness program that--
    (a) Focuses on the early identification of infants and toddlers with 
disabilities; and
    (b) Provides information to parents of infants and toddlers through 
primary referral sources in accordance with Sec. 303.301.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(6))

Sec. 303.117  Central directory.

    Each system must include a central directory that is accessible to 
the general public (i.e., through the lead agency's Web site and other 
appropriate means) and includes accurate, up-to-date information about--
    (a) Public and private early intervention services, resources, and 
experts available in the State;
    (b) Professional and other groups (including parent support, and 
training and information centers, such as those funded under the Act) 
that provide assistance to infants and toddlers with disabilities 
eligible under part C of the Act and their families; and
    (c) Research and demonstration projects being conducted in the State 
relating to infants and toddlers with disabilities.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(7))

Sec. 303.118  Comprehensive system of personnel development (CSPD).

    Each system must include a comprehensive system of personnel 
development, including the training of paraprofessionals and the 
training of primary referral sources with respect to

[[Page 181]]

the basic components of early intervention services available in the 
State. A comprehensive system of personnel development--
    (a) Must include--
    (1) Training personnel to implement innovative strategies and 
activities for the recruitment and retention of EIS providers;
    (2) Promoting the preparation of EIS providers who are fully and 
appropriately qualified to provide early intervention services under 
this part; and
    (3) Training personnel to coordinate transition services for infants 
and toddlers with disabilities who are transitioning from an early 
intervention service program under part C of the Act to a preschool 
program under section 619 of the Act, Head Start, Early Head Start, an 
elementary school program under part B of the Act, or another 
appropriate program.
    (b) May include--
    (1) Training personnel to work in rural and inner-city areas;
    (2) Training personnel in the emotional and social development of 
young children; and
    (3) Training personnel to support families in participating fully in 
the development and implementation of the child's IFSP; and
    (4) Training personnel who provide services under this part using 
standards that are consistent with early learning personnel development 
standards funded under the State Advisory Council on Early Childhood 
Education and Care established under the Head Start Act, if applicable.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(8))

Sec. 303.119  Personnel standards.

    (a) General. Each system must include policies and procedures 
relating to the establishment and maintenance of qualification standards 
to ensure that personnel necessary to carry out the purposes of this 
part are appropriately and adequately prepared and trained.
    (b) Qualification standards. The policies and procedures required in 
paragraph (a) of this section must provide for the establishment and 
maintenance of qualification standards that are consistent with any 
State-approved or State-recognized certification, licensing, 
registration, or other comparable requirements that apply to the 
profession, discipline, or area in which personnel are providing early 
intervention services.
    (c) Use of paraprofessionals and assistants. Nothing in part C of 
the Act may be construed to prohibit the use of paraprofessionals and 
assistants who are appropriately trained and supervised in accordance 
with State law, regulation, or written policy to assist in the provision 
of early intervention services under part C of the Act to infants and 
toddlers with disabilities.
    (d) Policy to address shortage of personnel. A State may adopt a 
policy that includes making ongoing good-faith efforts to recruit and 
hire appropriately and adequately trained personnel to provide early 
intervention services to infants and toddlers with disabilities, 
including, in a geographic area of the State where there is a shortage 
of such personnel, the most qualified individuals available who are 
making satisfactory progress toward completing applicable course work 
necessary to meet the standards described in paragraphs (a) and (b) of 
this section.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(9), 1435(b))

Sec. 303.120  Lead agency role in supervision, monitoring, funding, 
          interagency coordination, and other responsibilities.

    Each system must include a single line of responsibility in a lead 
agency designated or established by the Governor that is responsible for 
the following:
    (a)(1) The general administration and supervision of programs and 
activities administered by agencies, institutions, organizations, and 
EIS providers receiving assistance under part C of the Act.
    (2) The monitoring of programs and activities used by the State to 
carry out part C of the Act (whether or not the programs or activities 
are administered by agencies, institutions, organizations, and EIS 
providers that are receiving assistance under part C of the

[[Page 182]]

Act), to ensure that the State complies with part C of the Act, 
including--
    (i) Monitoring agencies, institutions, organizations, and EIS 
providers used by the State to carry out part C of the Act;
    (ii) Enforcing any obligations imposed on those agencies, 
institutions, organizations, and EIS providers under part C of the Act 
and these regulations;
    (iii) Providing technical assistance, if necessary, to those 
agencies, institutions, organizations, and EIS providers;
    (iv) Correcting any noncompliance identified through monitoring as 
soon as possible and in no case later than one year after the lead 
agency's identification of the noncompliance; and
    (v) Conducting the activities in paragraphs (a)(2)(i) through 
(a)(2)(iv) of this section, consistent with Sec. Sec. 303.700 through 
303.707, and any other activities required by the State under those 
sections.
    (b) The identification and coordination of all available resources 
for early intervention services within the State, including those from 
Federal, State, local, and private sources, consistent with subpart F of 
this part.
    (c) The assignment of financial responsibility in accordance with 
subpart F of this part.
    (d) The development of procedures in accordance with subpart F of 
this part to ensure that early intervention services are provided to 
infants and toddlers with disabilities and their families under part C 
of the Act in a timely manner, pending the resolution of any disputes 
among public agencies or EIS providers.
    (e) The resolution of intra- and interagency disputes in accordance 
with subpart F of this part.
    (f) The entry into formal interagency agreements or other written 
methods of establishing financial responsibility, consistent with Sec. 
303.511, that define the financial responsibility of each agency for 
paying for early intervention services (consistent with State law) and 
procedures for resolving disputes and that include all additional 
components necessary to ensure meaningful cooperation and coordination 
as set forth in subpart F of this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1416, 1435(a)(10), 1442)

Sec. 303.121  Policy for contracting or otherwise arranging for 
          services.

    Each system must include a policy pertaining to the contracting or 
making of other arrangements with public or private individuals or 
agency service providers to provide early intervention services in the 
State, consistent with the provisions of part C of the Act, including 
the contents of the application, and the conditions of the contract or 
other arrangements. The policy must--
    (a) Include a requirement that all early intervention services must 
meet State standards and be consistent with the provisions of this part; 
and
    (b) Be consistent with the Education Department General 
Administrative Regulations in 34 CFR part 80.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(11))

Sec. 303.122  Reimbursement procedures.

    Each system must include procedures for securing the timely 
reimbursement of funds used under part C of the Act, in accordance with 
subpart F of this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(12), 1440(a))

Sec. 303.123  Procedural safeguards.

    Each system must include procedural safeguards that meet the 
requirements of subpart E of this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(13), 1439)

Sec. 303.124  Data collection.

    (a) Each statewide system must include a system for compiling and 
reporting timely and accurate data that meets the requirements in 
paragraph (b) of this section and Sec. Sec. 303.700 through 303.702 and 
303.720 through 303.724.
    (b) The data system required in paragraph (a) of this section must 
include a

[[Page 183]]

description of the process that the State uses, or will use, to compile 
data on infants or toddlers with disabilities receiving early 
intervention services under this part, including a description of the 
State's sampling methods, if sampling is used, for reporting the data 
required by the Secretary under sections 616 and 618 of the Act and 
Sec. Sec. 303.700 through 303.707 and 303.720 through 303.724.

(Approved by Office of Management and Budget under control number 1820-
0550, 1820-0557 and 1820-0578)

(Authority: 20 U.S.C. 1416, 1418(a)-(c), 1435(a)(14), 1442)

Sec. 303.125  State interagency coordinating council.

    Each system must include a State Interagency Coordinating Council 
(Council) that meets the requirements of subpart G of this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(15))

Sec. 303.126  Early intervention services in natural environments.

    Each system must include policies and procedures to ensure, 
consistent with Sec. Sec. 303.13(a)(8) (early intervention services), 
303.26 (natural environments), and 303.344(d)(1)(ii) (content of an 
IFSP), that early intervention services for infants and toddlers with 
disabilities are provided--
    (a) To the maximum extent appropriate, in natural environments; and
    (b) In settings other than the natural environment that are most 
appropriate, as determined by the parent and the IFSP Team, only when 
early intervention services cannot be achieved satisfactorily in a 
natural environment.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(16))

               Subpart C_State Application and Assurances

                                 General

Sec. 303.200  State application and assurances.

    Each application must contain--
    (a) The specific State application requirements (including 
certifications, descriptions, methods, and policies and procedures) 
required in Sec. Sec. 303.201 through 303.212; and
    (b) The assurances required in Sec. Sec. 303.221 through 303.227.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437)

                        Application Requirements

Sec. 303.201  Designation of lead agency.

    Each application must include the name of the State lead agency, as 
designated under Sec. 303.120, that will be responsible for the 
administration of funds provided under this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(a)(1))

Sec. 303.202  Certification regarding financial responsibility.

    Each application must include a certification to the Secretary that 
the arrangements to establish financial responsibility for the provision 
of part C services among appropriate public agencies under Sec. 303.511 
and the lead agency's contracts with EIS providers regarding financial 
responsibility for the provision of part C services both meet the 
requirements in subpart F of this part (Sec. Sec. 303.500 through 
303.521) and are current as of the date of submission of the 
certification.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(a)(2))

Sec. 303.203  Statewide system and description of services.

    Each application must include --
    (a) A description of services to be provided under this part to 
infants and toddlers with disabilities and their families through the 
State's system;

[[Page 184]]

    (b) The State's policies and procedures regarding the identification 
and coordination of all available resources within the State from 
Federal, State, local, and private sources as required under subpart F 
of this part and including--
    (1) Policies or procedures adopted by the State as its system of 
payments that meet the requirements in Sec. Sec. 303.510, 303.520 and 
303.521 (regarding the use of public insurance or benefits, private 
insurance, or family costs or fees); and
    (2) Methods used by the State to implement the requirements in Sec. 
303.511(b)(2) and (b)(3); and
    (c) The State's rigorous definition of developmental delay as 
required under Sec. Sec. 303.10 and 303.111.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1432(3), 1432(4)(B), 1432(4)(C), 1435(a)(1), 
1435(a)(10)(B), 1437(a)(3), 1440)

Sec. 303.204  Application's definition of at-risk infants and toddlers 
          and description of services.

    If the State provides services under this part to at-risk infants 
and toddlers through the statewide system, the application must 
include--
    (a) The State's definition of at-risk infants and toddlers with 
disabilities who are eligible in the State for services under part C of 
the Act (consistent with Sec. Sec. 303.5 and 303.21(b)); and
    (b) A description of the early intervention services provided under 
this part to at-risk infants and toddlers with disabilities who meet the 
State's definition described in paragraph (a) of this section.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(a)(4))

Sec. 303.205  Description of use of funds.

    (a) General. Each State application must include a description of 
the uses for funds under this part for the fiscal year or years covered 
by the application. The description must be presented separately for the 
lead agency and the Council and include the information required in 
paragraphs (b) through (e) of this section.
    (b) State administration funds including administrative positions. 
For lead agencies other than State educational agencies (SEAs), each 
application must include the total--
    (1) Amount of funds retained by the lead agency for administration 
purposes, including the amount in paragraph (b)(2) of this section; and
    (2) Number of full-time equivalent administrative positions to be 
used to implement part C of the Act, and the total amount of salaries 
(including benefits) for those positions.
    (c) Maintenance and implementation activities. Each application must 
include a description of the nature and scope of each major activity to 
be carried out under this part, consistent with Sec. 303.501, and the 
approximate amount of funds to be spent for each activity.
    (d) Direct services. Each application must include a description of 
any direct services that the State expects to provide to infants and 
toddlers with disabilities and their families with funds under this 
part, consistent with Sec. 303.501, and the approximate amount of funds 
under this part to be used for the provision of each direct service.
    (e) Activities by other public agencies. If other public agencies 
are to receive funds under this part, the application must include--
    (1) The name of each agency expected to receive funds;
    (2) The approximate amount of funds each agency will receive; and
    (3) A summary of the purposes for which the funds will be used.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(a)(10)(B), 1435(a)(10)(F), 1437(a)(3), 
1437(a)(5))

Sec. 303.206  Referral policies for specific children.

    Each application must include the State's policies and procedures 
that require the referral for early intervention services under this 
part of specific

[[Page 185]]

children under the age of three, as described in Sec. 303.303(b).

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1412(a)(3)(A), 1431, 1434(1), 1435(a)(2), 
1435(a)(5), 1435(c)(2)(G), 1437(a)(6), 1437(a)(10), 1441)

Sec. 303.207  Availability of resources.

    Each application must include a description of the procedure used by 
the State to ensure that resources are made available under this part 
for all geographic areas within the State.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(a)(7))

Sec. 303.208  Public participation policies and procedures.

    (a) Application. At least 60 days prior to being submitted to the 
Department, each application for funds under this part (including any 
policies, procedures, descriptions, methods, certifications, assurances 
and other information required in the application) must be published in 
a manner that will ensure circulation throughout the State for at least 
a 60-day period, with an opportunity for public comment on the 
application for at least 30 days during that period.
    (b) State Policies and Procedures. Each application must include a 
description of the policies and procedures used by the State to ensure 
that, before adopting any new policy or procedure (including any 
revision to an existing policy or procedure) needed to comply with part 
C of the Act and these regulations, the lead agency--
    (1) Holds public hearings on the new policy or procedure (including 
any revision to an existing policy or procedure);
    (2) Provides notice of the hearings held in accordance with 
paragraph (b)(1) of this section at least 30 days before the hearings 
are conducted to enable public participation; and
    (3) Provides an opportunity for the general public, including 
individuals with disabilities, parents of infants and toddlers with 
disabilities, EIS providers, and the members of the Council, to comment 
for at least 30 days on the new policy or procedure (including any 
revision to an existing policy or procedure) needed to comply with part 
C of the Act and these regulations.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1231d, 1221e-3, 1437(a)(8))

Sec. 303.209  Transition to preschool and other programs.

    (a) Application requirements. Each State must include the following 
in its application:
    (1) A description of the policies and procedures it will use to 
ensure a smooth transition for infants and toddlers with disabilities 
under the age of three and their families from receiving early 
intervention services under this part to--
    (i) Preschool or other appropriate services (for toddlers with 
disabilities); or
    (ii) Exiting the program for infants and toddlers with disabilities.
    (2) A description of how the State will meet each of the 
requirements in paragraphs (b) through (f) of this section.
    (3)(i)(A) If the lead agency is not the SEA, an interagency 
agreement between the lead agency and the SEA; or
    (B) If the lead agency is the SEA, an intra-agency agreement between 
the program within that agency that administers part C of the Act and 
the program within the agency that administers section 619 of the Act.
    (ii) To ensure a seamless transition between services under this 
part and under part B of the Act, an interagency agreement under 
paragraph (a)(3)(i)(A) of this section or an intra-agency agreement 
under paragraph (a)(3)(i)(B) of this section must address how the lead 
agency and the SEA will meet the requirements of paragraphs (b) through 
(f) of this section (including any policies adopted by the lead agency 
under Sec. 303.401(d) and (e)), Sec. 303.344(h), and 34 CFR 
300.101(b), 300.124, 300.321(f), and 300.323(b).
    (4) Any policy the lead agency has adopted under Sec. 303.401(d) 
and (e).
    (b) Notification to the SEA and appropriate LEA. (1) The State lead 
agency must ensure that--
    (i) Subject to paragraph (b)(2) of this section, not fewer than 90 
days before the third birthday of the toddler with a

[[Page 186]]

disability if that toddler may be eligible for preschool services under 
part B of the Act, the lead agency notifies the SEA and the LEA for the 
area in which the toddler resides that the toddler on his or her third 
birthday will reach the age of eligibility for services under part B of 
the Act, as determined in accordance with State law;
    (ii) Subject to paragraph (b)(2) of this section, if the lead agency 
determines that the toddler is eligible for early intervention services 
under part C of the Act more than 45 but less than 90 days before that 
toddler's third birthday and if that toddler may be eligible for 
preschool services under part B of the Act, the lead agency, as soon as 
possible after determining the child's eligibility, notifies the SEA and 
the LEA for the area in which the toddler with a disability resides that 
the toddler on his or her third birthday will reach the age of 
eligibility for services under part B of the Act, as determined in 
accordance with State law; or
    (iii) Subject to paragraph (b)(2) of this section, if a toddler is 
referred to the lead agency fewer than 45 days before that toddler's 
third birthday and that toddler may be eligible for preschool services 
under part B of the Act, the lead agency, with parental consent required 
under Sec. 303.414, refers the toddler to the SEA and the LEA for the 
area in which the toddler resides; but, the lead agency is not required 
to conduct an evaluation, assessment, or an initial IFSP meeting under 
these circumstances.
    (2) The State must ensure that the notification required under 
paragraphs (b)(1)(i) and (b)(1)(ii) of this section is consistent with 
any policy that the State has adopted, under Sec. 303.401(e), 
permitting a parent to object to disclosure of personally identifiable 
information.
    (c) Conference to discuss services. The State lead agency must 
ensure that--
    (1) If a toddler with a disability may be eligible for preschool 
services under part B of the Act, the lead agency, with the approval of 
the family of the toddler, convenes a conference, among the lead agency, 
the family, and the LEA not fewer than 90 days--and, at the discretion 
of all parties, not more than 9 months--before the toddler's third 
birthday to discuss any services the toddler may receive under part B of 
the Act; and.
    (2) If the lead agency determines that a toddler with a disability 
is not potentially eligible for preschool services under part B of the 
Act, the lead agency, with the approval of the family of that toddler, 
makes reasonable efforts to convene a conference among the lead agency, 
the family, and providers of other appropriate services for the toddler 
to discuss appropriate services that the toddler may receive.
    (d) Transition plan. The State lead agency must ensure that for all 
toddlers with disabilities--
    (1)(i) It reviews the program options for the toddler with a 
disability for the period from the toddler's third birthday through the 
remainder of the school year; and
    (ii) Each family of a toddler with a disability who is served under 
this part is included in the development of the transition plan required 
under this section and Sec. 303.344(h);
    (2) It establishes a transition plan in the IFSP not fewer than 90 
days--and, at the discretion of all parties, not more than 9 months--
before the toddler's third birthday; and
    (3) The transition plan in the IFSP includes, consistent with Sec. 
303.344(h), as appropriate--
    (i) Steps for the toddler with a disability and his or her family to 
exit from the part C program; and
    (ii) Any transition services that the IFSP Team identifies as needed 
by that toddler and his or her family.
    (e) Transition conference and meeting to develop transition plan. 
Any conference conducted under paragraph (c) of this section or meeting 
to develop the transition plan under paragraph (d) of this section 
(which conference and meeting may be combined into one meeting) must 
meet the requirements in Sec. Sec. 303.342(d) and (e) and 303.343(a).
    (f) Applicability of transition requirements. (1) The transition 
requirements in paragraphs (b)(1)(i) and (b)(1)(ii), (c)(1), and (d) of 
this section apply to all toddlers with disabilities receiving services 
under this part before those toddlers turn age three, including any 
toddler with a disability under the age

[[Page 187]]

of three who is served by a State that offers services under Sec. 
303.211.
    (2) In a State that offers services under Sec. 303.211, for 
toddlers with disabilities identified in Sec. 303.209(b)(1)(i), the 
parent must be provided at the transition conference conducted under 
paragraph (c)(1) of this section:
    (i) An explanation, consistent with Sec. 303.211(b)(1)(ii), of the 
toddler's options to continue to receive early intervention services 
under this part or preschool services under section 619 of the Act.
    (ii) The initial annual notice referenced in Sec. 303.211(b)(1).
    (3) For children with disabilities age three and older who receive 
services pursuant to Sec. 303.211, the State must ensure that it 
satisfies the separate transition requirements in Sec. 
303.211(b)(6)(ii).

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1412(a)(3) and (a)(9), 1436(a)(3), 1437(a)(9))

Sec. 303.210  Coordination with Head Start and Early Head Start, early 
          education, and child care programs.

    (a) Each application must contain a description of State efforts to 
promote collaboration among Head Start and Early Head Start programs 
under the Head Start Act (42 U.S.C. 9801, et seq., as amended), early 
education and child care programs, and services under this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

    (b) The State lead agency must participate, consistent with section 
642B(b)(1)(C)(viii) of the Head Start Act, on the State Advisory Council 
on Early Childhood Education and Care established under the Head Start 
Act.

(Authority: 20 U.S.C. 1437(a)(10))

Sec. 303.211  State option to make services under this part available 
          to children ages three and older.

    (a) General. (1) Subject to paragraphs (a)(2) and (b) of this 
section, a State may elect to include in its application for a grant 
under this part a State policy, developed and implemented jointly by the 
lead agency and the SEA, under which a parent of a child with a 
disability who is eligible for preschool services under section 619 of 
the Act and who previously received early intervention services under 
this part, may choose the continuation of early intervention services 
under this part for his or her child after the child turns three until 
the child enters, or is eligible under State law to enter, kindergarten 
or elementary school.
    (2) A State that adopts the policy described in paragraph (a)(1) of 
this section may determine whether it applies to children with 
disabilities--
    (i) From age three until the beginning of the school year following 
the child's third birthday;
    (ii) From age three until the beginning of the school year following 
the child's fourth birthday; or
    (iii) From age three until the beginning of the school year 
following the child's fifth birthday.
    (3) In no case may a State provide services under this section 
beyond the age at which the child actually enters, or is eligible under 
State law to enter, kindergarten or elementary school in the State.
    (b) Requirements. If a State's application for a grant under this 
part includes the State policy described in paragraph (a) of this 
section, the system must ensure the following:
    (1) Parents of children with disabilities who are eligible for 
services under section 619 of the Act and who previously received early 
intervention services under this part will be provided an annual notice 
that contains--
    (i) A description of the rights of the parents to elect to receive 
services pursuant to this section or under part B of the Act; and
    (ii) An explanation of the differences between services provided 
pursuant to this section and services provided under part B of the Act, 
including--
    (A) The types of services and the locations at which the services 
are provided;
    (B) The procedural safeguards that apply; and
    (C) Possible costs (including the costs or fees to be charged to 
families as described in Sec. Sec. 303.520 and 303.521), if any, to 
parents of children eligible under this part.

[[Page 188]]

    (2) Consistent with Sec. 303.344(d), services provided pursuant to 
this section will include an educational component that promotes school 
readiness and incorporates preliteracy, language, and numeracy skills.
    (3) The State policy ensures that any child served pursuant to this 
section has the right, at any time, to receive FAPE (as that term is 
defined at Sec. 303.15) under part B of the Act instead of early 
intervention services under part C of the Act.
    (4) The lead agency must continue to provide all early intervention 
services identified in the toddler with a disability's IFSP under Sec. 
303.344 (and consented to by the parent under Sec. 303.342(e)) beyond 
age three until that toddler's initial eligibility determination under 
part B of the Act is made under 34 CFR 300.306. This provision does not 
apply if the LEA has requested parental consent for the initial 
evaluation under 34 CFR 300.300(a) and the parent has not provided that 
consent.
    (5) The lead agency must obtain informed consent from the parent of 
any child with a disability for the continuation of early intervention 
services pursuant to this section for that child. Consent must be 
obtained before the child reaches three years of age, where practicable.
    (6)(i) For toddlers with disabilities under the age of three in a 
State that offers services under this section, the lead agency ensures 
that the transition requirements in Sec. 303.209(b)(1)(i) and 
(b)(1)(ii), (c)(1), and (d) are met.
    (ii) For toddlers with disabilities age three and older in a State 
that offers services under this section, the lead agency ensures a 
smooth transition from services under this section to preschool, 
kindergarten or elementary school by--
    (A) Providing the SEA and LEA where the child resides, consistent 
with any State policy adopted under Sec. 303.401(e), the information 
listed in Sec. 303.401(d)(1) not fewer than 90 days before the child 
will no longer be eligible under paragraph (a)(2) of this section to 
receive, or will no longer receive, early intervention services under 
this section;
    (B) With the approval of the parents of the child, convening a 
transition conference, among the lead agency, the parents, and the LEA, 
not fewer than 90 days--and, at the discretion of all parties, not more 
than 9 months--before the child will no longer be eligible under 
paragraph (a)(2) of this section to receive, or no longer receives, 
early intervention services under this section, to discuss any services 
that the child may receive under part B of the Act; and
    (C) Establishing a transition plan in the IFSP not fewer than 90 
days--and, at the discretion of all parties, not more than 9 months--
before the child will no longer be eligible under paragraph (a)(2) of 
this section to receive, or no longer receives, early intervention 
services under this section.
    (7) In States that adopt the option to make services under this part 
available to children ages three and older pursuant to this section, 
there will be a referral to the part C system, dependent upon parental 
consent, of a child under the age of three who directly experiences a 
substantiated case of trauma due to exposure to family violence, as 
defined in section 320 of the Family Violence Prevention and Services 
Act, 42 U.S.C. 10401, et seq.
    (c) Reporting requirement. If a State includes in its application a 
State policy described in paragraph (a) of this section, the State must 
submit to the Secretary, in the State's report under Sec. 303.124, the 
number and percentage of children with disabilities who are eligible for 
services under section 619 of the Act but whose parents choose for their 
children to continue to receive early intervention services under this 
part.
    (d) Available funds. The State policy described in paragraph (a) of 
this section must describe the funds--including an identification as 
Federal, State, or local funds--that will be used to ensure that the 
option described in paragraph (a) of this section is available to 
eligible children and families who provide the consent described in 
paragraph (b)(5) of this section, including fees, if any, to be charged 
to families as described in Sec. Sec. 303.520 and 303.521.
    (e) Rules of construction. (1) If a statewide system includes a 
State policy described in paragraph (a) of this section,

[[Page 189]]

a State that provides services in accordance with this section to a 
child with a disability who is eligible for services under section 619 
of the Act will not be required to provide the child FAPE under part B 
of the Act for the period of time in which the child is receiving 
services under this part.
    (2) Nothing in this section may be construed to require a provider 
of services under this part to provide a child served under this part 
with FAPE.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1435(c), 1437(a)(11))

Sec. 303.212  Additional information and assurances.

    Each application must contain--
    (a) A description of the steps the State is taking to ensure 
equitable access to, and equitable participation in, the part C 
statewide system as required by section 427(b) of GEPA; and
    (b) Other information and assurances as the Secretary may reasonably 
require.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1228a(b), 1437(a)(11))

                               Assurances

Sec. 303.220  Assurances satisfactory to the Secretary.

    Each application must contain assurances satisfactory to the 
Secretary that the State has met the requirements in Sec. Sec. 303.221 
through 303.227.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(b))

Sec. 303.221  Expenditure of funds.

    The State must ensure that Federal funds made available to the State 
under section 643 of the Act will be expended in accordance with the 
provisions of this part, including Sec. Sec. 303.500 and 303.501.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(b)(1))

Sec. 303.222  Payor of last resort.

    The State must ensure that it will comply with the requirements in 
Sec. Sec. 303.510 and 303.511 in subpart F of this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(b)(2))

Sec. 303.223  Control of funds and property.

    The State must ensure that--
    (a) The control of funds provided under this part, and title to 
property acquired with those funds, will be in a public agency for the 
uses and purposes provided in this part; and
    (b) A public agency will administer the funds and property.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(b)(3))

Sec. 303.224  Reports and records.

    The State must ensure that it will--
    (a) Make reports in the form and containing the information that the 
Secretary may require; and
    (b) Keep records and afford access to those records as the Secretary 
may find necessary to ensure compliance with the requirements of this 
part, the correctness and verification of reports, and the proper 
disbursement of funds provided under this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(b)(4))

Sec. 303.225  Prohibition against supplanting; indirect costs.

    (a) Each application must provide satisfactory assurance that the 
Federal funds made available under section 643 of the Act to the State:
    (1) Will not be commingled with State funds; and
    (2) Will be used so as to supplement the level of State and local 
funds expended for infants and toddlers with disabilities and their 
families and in no case to supplant those State and local funds.
    (b) To meet the requirement in paragraph (a) of this section, the 
total amount of State and local funds budgeted for expenditures in the 
current fiscal year for early intervention services for children 
eligible under this part and their families must be at least equal to

[[Page 190]]

the total amount of State and local funds actually expended for early 
intervention services for these children and their families in the most 
recent preceding fiscal year for which the information is available. 
Allowance may be made for--
    (1) A decrease in the number of infants and toddlers who are 
eligible to receive early intervention services under this part; and
    (2)) Unusually large amounts of funds expended for such long-term 
purposes as the acquisition of equipment and the construction of 
facilities.
    (c) Requirement regarding indirect costs. (1) Except as provided in 
paragraph (c)(2) of this section, a lead agency under this part may not 
charge indirect costs to its part C grant.
    (2) If approved by the lead agency's cognizant Federal agency or by 
the Secretary, the lead agency must charge indirect costs through 
either--
    (i) A restricted indirect cost rate that meets the requirements in 
34 CFR 76.560 through 76.569; or
    (ii) A cost allocation plan that meets the non-supplanting 
requirements in paragraph (b) of this section and 34 CFR part 76 of 
EDGAR.
    (3) In charging indirect costs under paragraph (c)(2)(i) and 
(c)(2)(ii) of this section, the lead agency may not charge rent, 
occupancy, or space maintenance costs directly to the part C grant, 
unless those costs are specifically approved in advance by the 
Secretary.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(b)(5))

Sec. 303.226  Fiscal control.

    The State must ensure that fiscal control and fund accounting 
procedures will be adopted as necessary to ensure proper disbursement 
of, and accounting for, Federal funds paid under this part.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1437(b)(6))

Sec. 303.227  Traditionally underserved groups.

    The State must ensure that policies and practices have been adopted 
to ensure--
    (a) That traditionally underserved groups, including minority, low-
income, homeless, and rural families and children with disabilities who 
are wards of the State, are meaningfully involved in the planning and 
implementation of all the requirements of this part; and
    (b) That these families have access to culturally competent services 
within their local geographical areas.

(Approved by Office of Management and Budget under control number 1820-
0550)

(Authority: 20 U.S.C. 1231d, 1437(b)(7))

 Subsequent Applications and Modifications, Eligibility Determinations, 
                       and Standard of Disapproval

Sec. 303.228  Subsequent State application and modifications of 
          application.

    (a) Subsequent State application. If a State has on file with the 
Secretary a policy, procedure, method, or assurance that demonstrates 
that the State meets an application requirement in this part, including 
any policy, procedure, method, or assurance filed under this part (as in 
effect before the date of enactment of the Act, December 3, 2004), the 
Secretary considers the State to have met that requirement for purposes 
of receiving a grant under this part.
    (b) Modification of application. An application submitted by a State 
that meets the requirements of this part remains in effect until the 
State submits to the Secretary such modifications as the State 
determines necessary. This section applies to a modification of an 
application to the same extent and in the same manner as this paragraph 
applies to the original application.
    (c) Modifications required by the Secretary. The Secretary may 
require a State to modify its application under this part to the extent 
necessary to ensure the State's compliance with this part if--
    (1) An amendment is made to the Act or to a Federal regulation 
issued under the Act;
    (2) A new interpretation of the Act is made by a Federal court or 
the State's highest court; or

[[Page 191]]

    (3) An official finding of noncompliance with Federal law or 
regulations is made with respect to the State.

(Authority: 20 U.S.C. 1437(d)-(f))

Sec. 303.229  Determination by the Secretary that a State is eligible.

    If the Secretary determines that a State is eligible to receive a 
grant under part C of the Act, the Secretary notifies the State of that 
determination.

(Authority: 20 U.S.C. 1437)

Sec. 303.230  Standard for disapproval of an application.

    The Secretary does not disapprove an application under this part 
unless the Secretary determines, after notice and opportunity for a 
hearing in accordance with the procedures in Sec. Sec. 303.231 through 
303.236, that the application fails to comply with the requirements of 
this part.

(Authority: 20 U.S.C. 1437(c))

                          Department Procedures

Sec. 303.231  Notice and hearing before determining that a State is not 
          eligible.

    (a) General. (1) The Secretary does not make a final determination 
that a State is not eligible to receive a grant under part C of the Act 
until providing the State--
    (i) Reasonable notice; and
    (ii) An opportunity for a hearing.
    (2) In implementing paragraph (a)(1)(i) of this section, the 
Secretary sends a written notice to the lead agency by certified mail 
with a return receipt requested.
    (b) Content of notice. In the written notice described in paragraph 
(a)(2) of this section, the Secretary--
    (1) States the basis on which the Secretary proposes to make a final 
determination that the State is not eligible;
    (2) May describe possible options for resolving the issues;
    (3) Advises the lead agency that it may request a hearing and that 
the request for a hearing must be made not later than 30 days after it 
receives the notice of the proposed final determination that the State 
is not eligible; and
    (4) Provides the lead agency with information about the hearing 
procedures that will be followed.

(Authority: 20 U.S.C. 1437(c))

Sec. 303.232  Hearing Official or Panel.

    (a) If the lead agency requests a hearing, the Secretary designates 
one or more individuals, either from the Department or elsewhere, not 
responsible for or connected with the administration of this program, to 
conduct a hearing.
    (b) If more than one individual is designated, the Secretary 
designates one of those individuals as the Chief Hearing Official of the 
Hearing Panel. If one individual is designated, that individual is the 
Hearing Official.

(Authority: 20 U.S.C. 1437(c))

Sec. 303.233  Hearing procedures.

    (a) As used in Sec. Sec. 303.231 through 303.235, the term party or 
parties means any of the following:
    (1) A lead agency that requests a hearing regarding the proposed 
disapproval of the State's eligibility under this part.
    (2) The Department official who administers the program of financial 
assistance under this part.
    (3) A person, group, or agency with an interest in, and having 
relevant information about, the case that has applied for and been 
granted leave to intervene by the Hearing Official or Hearing Panel.
    (b) Within 15 days after receiving a request for a hearing, the 
Secretary designates a Hearing Official or Hearing Panel and notifies 
the parties.
    (c) The Hearing Official or Hearing Panel may regulate the course of 
proceedings and the conduct of the parties during the proceedings. The 
Hearing Official or Panel takes all steps necessary to conduct a fair 
and impartial proceeding, to avoid delay, and to maintain order, 
including the following:
    (1) The Hearing Official or Hearing Panel may hold conferences or 
other types of appropriate proceedings to clarify, simplify, or define 
the issues or to consider other matters that may aid in the disposition 
of the case.

[[Page 192]]

    (2) The Hearing Official or Hearing Panel may schedule a prehearing 
conference with the Hearing Official or Hearing Panel and the parties.
    (3) Any party may request the Hearing Official or Hearing Panel to 
schedule a prehearing or other conference. The Hearing Official or 
Hearing Panel decides whether a conference is necessary and notifies all 
parties.
    (4) At a prehearing or other conference, the Hearing Official or 
Hearing Panel and the parties may consider subjects such as--
    (i) Narrowing and clarifying issues;
    (ii) Assisting the parties in reaching agreements and stipulations;
    (iii) Clarifying the positions of the parties;
    (iv) Determining whether an evidentiary hearing or oral argument 
should be held; and
    (v) Setting dates for--
    (A) The exchange of written documents;
    (B) The receipt of comments from the parties on the need for oral 
argument or an evidentiary hearing;
    (C) Further proceedings before the Hearing Official or Hearing 
Panel, including an evidentiary hearing or oral argument, if either is 
scheduled;
    (D) Requesting the names of witnesses each party wishes to present 
at an evidentiary hearing and an estimation of time for each 
presentation; and
    (E) Completion of the review and the initial decision of the Hearing 
Official or Hearing Panel.
    (5) A prehearing or other conference held under paragraph (c)(4) of 
this section may be conducted by telephone conference call.
    (6) At a prehearing or other conference, the parties must be 
prepared to discuss the subjects listed in paragraph (c)(4) of this 
section.
    (7) Following a prehearing or other conference, the Hearing Official 
or Hearing Panel may issue a written statement describing the issues 
raised, the action taken, and the stipulations and agreements reached by 
the parties.
    (d) The Hearing Official or Hearing Panel may require the parties to 
state their positions and to provide all or part of their evidence in 
writing.
    (e) The Hearing Official or Hearing Panel may require the parties to 
present testimony through affidavits and to conduct cross-examination 
through interrogatories.
    (f) The Hearing Official or Hearing Panel may direct the parties to 
exchange relevant documents, information, and lists of witnesses, and to 
send copies to the Hearing Official or Hearing Panel.
    (g) The Hearing Official or Hearing Panel may receive, rule on, 
exclude, or limit evidence at any stage of the proceedings.
    (h) The Hearing Official or Hearing Panel may rule on motions and 
other issues at any stage of the proceedings.
    (i) The Hearing Official or Hearing Panel may examine witnesses.
    (j) The Hearing Official or Hearing Panel may set reasonable time 
limits for submission of written documents.
    (k) The Hearing Official or Hearing Panel may refuse to consider 
documents or other submissions if they are not submitted in a timely 
manner unless good cause is shown.
    (l) The Hearing Official or Hearing Panel may interpret applicable 
statutes and regulations but may not waive them or rule on their 
validity.
    (m)(1) The parties must present their positions through briefs and 
the submission of other documents and may request an oral argument or 
evidentiary hearing. The Hearing Official or Hearing Panel must 
determine whether an oral argument or an evidentiary hearing is needed 
to clarify the positions of the parties.
    (2) The Hearing Official or Hearing Panel gives each party an 
opportunity to be represented by counsel.
    (n) If the Hearing Official or Hearing Panel determines that an 
evidentiary hearing would materially assist the resolution of the 
matter, the Hearing Official or Hearing Panel gives each party, in 
addition to the opportunity to be represented by counsel--
    (1) An opportunity to present witnesses on the party's behalf; and
    (2) An opportunity to cross-examine witnesses either orally or with 
written questions.
    (o) The Hearing Official or Hearing Panel accepts any evidence that 
it finds is relevant and material to the

[[Page 193]]

proceedings and is not unduly repetitious.
    (p)(1) The Hearing Official or Hearing Panel--
    (i) Arranges for the preparation of a transcript of each hearing;
    (ii) Retains the original transcript as part of the record of the 
hearing; and
    (iii) Provides one copy of the transcript to each party.
    (2) Additional copies of the transcript are available on request and 
with payment of the reproduction fee.
    (q) Each party must file with the Hearing Official or Hearing Panel 
all written motions, briefs, and other documents and must at the same 
time provide a copy to the other parties to the proceedings.

(Authority: 20 U.S.C. 1437(c))

Sec. 303.234  Initial decision; final decision.

    (a) The Hearing Official or Hearing Panel prepares an initial 
written decision that addresses each of the points in the notice sent by 
the Secretary to the lead agency under Sec. 303.231, including any 
amendments to or further clarification of the issues under Sec. 
303.233(c).
    (b) The initial decision of a Hearing Panel is made by a majority of 
Hearing Panel members.
    (c) The Hearing Official or Hearing Panel mails, by certified mail 
with return receipt requested, a copy of the initial decision to each 
party (or to the party's counsel) and to the Secretary, with a notice 
stating that each party has an opportunity to submit written comments 
regarding the decision to the Secretary.
    (d) Each party may file comments and recommendations on the initial 
decision with the Hearing Official or Hearing Panel within 15 days of 
the date the party receives the Panel's decision.
    (e) The Hearing Official or Hearing Panel sends a copy of a party's 
initial comments and recommendations to the other parties by certified 
mail with return receipt requested. Each party may file responsive 
comments and recommendations with the Hearing Official or Hearing Panel 
within seven days of the date the party receives the initial comments 
and recommendations.
    (f) The Hearing Official or Hearing Panel forwards the parties' 
initial and responsive comments on the initial decision to the Secretary 
who reviews the initial decision and issues a final decision.
    (g) The initial decision of the Hearing Official or Hearing Panel 
becomes the final decision of the Secretary unless, within 25 days after 
the end of the time for receipt of written comments, the Secretary 
informs the Hearing Official or Hearing Panel and the parties to a 
hearing in writing that the decision is being further reviewed for 
possible modification.
    (h) The Secretary rejects or modifies the initial decision of the 
Hearing Official or Hearing Panel if the Secretary finds that it is 
clearly erroneous.
    (i) The Secretary conducts the review based on the initial decision, 
the written record, the transcript of the Hearing Official's or Hearing 
Panel's proceedings, and written comments.
    (j) The Secretary may remand the matter to the Hearing Official or 
Hearing Panel for further proceedings.
    (k) Unless the Secretary remands the matter as provided in paragraph 
(j) of this section, the Secretary issues the final decision, with any 
necessary modifications, within 30 days after notifying the Hearing 
Official or Hearing Panel that the initial decision is being further 
reviewed.

(Authority: 20 U.S.C. 1437(c))

Sec. 303.235  Filing requirements.

    (a) Any written submission by a party under Sec. Sec. 303.230 
through 303.236 must be filed with the Secretary by hand-delivery, by 
mail, or by facsimile transmission. The Secretary discourages the use of 
facsimile transmission for documents longer than five pages.
    (b) The filing date under paragraph (a) of this section is the date 
the document is--
    (1) Hand-delivered;
    (2) Mailed; or
    (3) Sent by facsimile transmission.
    (c) A party filing by facsimile transmission is responsible for 
confirming that a complete and legible copy of the document was received 
by the Department.

[[Page 194]]

    (d) If a document is filed by facsimile transmission, the Secretary, 
the Hearing Official, or the Panel, as applicable, may require the 
filing of a follow-up hard copy by hand-delivery or by mail within a 
reasonable period of time.
    (e) If agreed upon by the parties, service of a document may be made 
upon the other party by facsimile transmission.

(Authority: 20 U.S.C. 1437(c))

Sec. 303.236  Judicial review.

    If a State is dissatisfied with the Secretary's final decision with 
respect to the eligibility of the State under part C of the Act, the 
State may, not later than 60 days after notice of that decision, file 
with the United States Court of Appeals for the circuit in which that 
State is located a petition for review of that decision. A copy of the 
petition must be transmitted by the clerk of the court to the Secretary. 
The Secretary then files in the court the record of the proceedings upon 
which the Secretary's action was based, as provided in 28 U.S.C. 2112.

(Authority: 20 U.S.C. 1437(c))

 Subpart D_Child Find, Evaluations and Assessments, and Individualized 
                          Family Service Plans

Sec. 303.300  General.

    The statewide comprehensive, coordinated, multidisciplinary 
interagency system to provide early intervention services for infants 
and toddlers with disabilities and their families referenced in Sec. 
303.100 must include the following components:
    (a) Pre-referral policies and procedures that include--
    (1) A public awareness program as described in Sec. 303.301; and
    (2) A comprehensive child find system as described in Sec. 303.302.
    (b) Referral policies and procedures as described in Sec. 303.303.
    (c) Post-referral policies and procedures that ensure compliance 
with the timeline requirements in Sec. 303.310 and include--
    (1) Screening, if applicable, as described in Sec. 303.320;
    (2) Evaluations and assessments as described in Sec. Sec. 303.321 
and 303.322; and
    (3) Development, review, and implementation of IFSPs as described in 
Sec. Sec. 303.340 through 303.346.

 Pre-Referral Procedures--Public Awareness Program and Child Find System

Sec. 303.301  Public awareness program--information for parents.

    (a) Preparation and dissemination. In accordance with Sec. 303.116, 
each system must include a public awareness program that requires the 
lead agency to--
    (1)(i) Prepare information on the availability of early intervention 
services under this part, and other services, as described in paragraph 
(b) of this section; and
    (ii) Disseminate to all primary referral sources (especially 
hospitals and physicians) the information to be given to parents of 
infants and toddlers, especially parents with premature infants or 
infants with other physical risk factors associated with learning or 
developmental complications; and
    (2) Adopt procedures for assisting the primary referral sources 
described in Sec. 303.303(c) in disseminating the information described 
in paragraph (b) of this section to parents of infants and toddlers with 
disabilities.
    (b) Information to be provided. The information required to be 
prepared and disseminated under paragraph (a) of this section must 
include--
    (1) A description of the availability of early intervention services 
under this part;
    (2) A description of the child find system and how to refer a child 
under the age of three for an evaluation or early intervention services; 
and
    (3) A central directory, as described in Sec. 303.117.
    (c) Information specific to toddlers with disabilities. Each public 
awareness program also must include a requirement that the lead agency 
provide for informing parents of toddlers with disabilities of the 
availability of services under section 619 of the Act not fewer than 90 
days prior to the toddler's third birthday.

(Authority: 20 U.S.C. 1435(a)(6), 1437(a)(9))

[[Page 195]]

Sec. 303.302  Comprehensive child find system.

    (a) General. Each system must include a comprehensive child find 
system that--
    (1) Is consistent with part B of the Act (see 34 CFR 300.111);
    (2) Includes a system for making referrals to lead agencies or EIS 
providers under this part that--
    (i) Includes timelines; and
    (ii) Provides for participation by the primary referral sources 
described in Sec. 303.303(c);
    (3) Ensures rigorous standards for appropriately identifying infants 
and toddlers with disabilities for early intervention services under 
this part that will reduce the need for future services; and
    (4) Meets the requirements in paragraphs (b) and (c) of this section 
and Sec. Sec. 303.303, 303.310, 303.320, and 303.321.
    (b) Scope of child find. The lead agency, as part of the child find 
system, must ensure that--
    (1) All infants and toddlers with disabilities in the State who are 
eligible for early intervention services under this part are identified, 
located, and evaluated, including--
    (i) Indian infants and toddlers with disabilities residing on a 
reservation geographically located in the State (including coordination, 
as necessary, with tribes, tribal organizations, and consortia to 
identify infants and toddlers with disabilities in the State based, in 
part, on the information provided by them to the lead agency under Sec. 
303.731(e)(1)); and
    (ii) Infants and toddlers with disabilities who are homeless, in 
foster care, and wards of the State; and
    (iii) Infants and toddlers with disabilities that are referenced in 
Sec. 303.303(b); and
    (2) An effective method is developed and implemented to identify 
children who are in need of early intervention services.
    (c) Coordination. (1) The lead agency, with the assistance of the 
Council, as defined in Sec. 303.8, must ensure that the child find 
system under this part--
    (i) Is coordinated with all other major efforts to locate and 
identify children by other State agencies responsible for administering 
the various education, health, and social service programs relevant to 
this part, including Indian tribes that receive payments under this 
part, and other Indian tribes, as appropriate; and
    (ii) Is coordinated with the efforts of the--
    (A) Program authorized under part B of the Act;
    (B) Maternal and Child Health program, including the Maternal, 
Infant, and Early Childhood Home Visiting Program, under Title V of the 
Social Security Act, as amended, (MCHB or Title V) (42 U.S.C. 701(a));
    (C) Early Periodic Screening, Diagnosis, and Treatment (EPSDT) under 
Title XIX of the Social Security Act (42 U.S.C. 1396(a)(43) and 
1396(a)(4)(B));
    (D) Programs under the Developmental Disabilities Assistance and 
Bill of Rights Act of 2000 (42 U.S.C. 15001 et seq.);
    (E) Head Start Act (including Early Head Start programs under 
section 645A of the Head Start Act) (42 U.S.C. 9801 et seq.);
    (F) Supplemental Security Income program under Title XVI of the 
Social Security Act (42 U.S.C. 1381);
    (G) Child protection and child welfare programs, including programs 
administered by, and services provided through, the foster care agency 
and the State agency responsible for administering the Child Abuse 
Prevention and Treatment Act (CAPTA) (42 U.S.C. 5106(a));
    (H) Child care programs in the State;
    (I) The programs that provide services under the Family Violence 
Prevention and Services Act (42 U.S.C. 10401 et seq.);
    (J) Early Hearing Detection and Intervention (EHDI) systems (42 
U.S.C. 280g-1) administered by the Centers for Disease Control (CDC); 
and
    (K) Children's Health Insurance Program (CHIP) authorized under 
Title XXI of the Social Security Act (42 U.S.C. 1397aa et seq.).
    (2) The lead agency, with the advice and assistance of the Council, 
must take steps to ensure that--
    (i) There will not be unnecessary duplication of effort by the 
programs identified in paragraph (c)(1)(ii) of this section; and

[[Page 196]]

    (ii) The State will make use of the resources available through each 
public agency and EIS provider in the State to implement the child find 
system in an effective manner.

(Authority: 20 U.S.C. 1412(a)(3)(A), 1431, 1434(1), 1435(a)(2), 
1435(a)(5), 1435(c)(2)(G), 1437(a)(6), 1437(a)(10), 1441)

                           Referral Procedures

Sec. 303.303  Referral procedures.

    (a) General. (1) The lead agency's child find system described in 
Sec. 303.302 must include the State's procedures for use by primary 
referral sources for referring a child under the age of three to the 
part C program.
    (2) The procedures required in paragraph (a)(1) of this section 
must--
    (i) Provide for referring a child as soon as possible, but in no 
case more than seven days, after the child has been identified; and
    (ii) Meet the requirements in paragraphs (b) and (c) of this 
section.
    (b) Referral of specific at-risk infants and toddlers. The 
procedures required in paragraph (a) of this section must provide for 
requiring the referral of a child under the age of three who--
    (1) Is the subject of a substantiated case of child abuse or 
neglect; or
    (2) Is identified as directly affected by illegal substance abuse or 
withdrawal symptoms resulting from prenatal drug exposure.
    (c) Primary referral sources. As used in this subpart, primary 
referral sources include--
    (1) Hospitals, including prenatal and postnatal care facilities;
    (2) Physicians;
    (3) Parents, including parents of infants and toddlers;
    (4) Child care programs and early learning programs;
    (5) LEAs and schools;
    (6) Public health facilities;
    (7) Other public health or social service agencies;
    (8) Other clinics and health care providers;
    (9) Public agencies and staff in the child welfare system, including 
child protective service and foster care;
    (10) Homeless family shelters; and
    (11) Domestic violence shelters and agencies.

(Authority: 20 U.S.C. 1412(a)(3)(A), 1431, 1434(1), 1435(a)(2), 
1435(a)(5), 1435(a)(6), 1435(c)(2)(G), 1437(a)(6), 1437(a)(10), 1441)

Sec. Sec. 303.304-303.309  [Reserved]

   Post-Referral Procedures--Screenings, Evaluations, and Assessments

Sec. 303.310  Post-referral timeline (45 days).

    (a) Except as provided in paragraph (b) of this section, any 
screening under Sec. 303.320 (if the State has adopted a policy and 
elects, and the parent consents, to conduct a screening of a child); the 
initial evaluation and the initial assessments of the child and family 
under Sec. 303.321; and the initial IFSP meeting under Sec. 303.342 
must be completed within 45 days from the date the lead agency or EIS 
provider receives the referral of the child.
    (b) Subject to paragraph (c) of this section, the 45-day timeline 
described in paragraph (a) of this section does not apply for any period 
when--
    (1) The child or parent is unavailable to complete the screening (if 
applicable), the initial evaluation, the initial assessments of the 
child and family, or the initial IFSP meeting due to exceptional family 
circumstances that are documented in the child's early intervention 
records; or
    (2) The parent has not provided consent for the screening (if 
applicable), the initial evaluation, or the initial assessment of the 
child, despite documented, repeated attempts by the lead agency or EIS 
provider to obtain parental consent.
    (c) The lead agency must develop procedures to ensure that in the 
event the circumstances described in (b)(1) or (b)(2) of this section 
exist, the lead agency or EIS provider must--
    (1) Document in the child's early intervention records the 
exceptional family circumstances or repeated attempts by the lead agency 
or EIS provider to obtain parental consent;
    (2) Complete the screening (if applicable), the initial evaluation, 
the initial assessments (of the child and family), and the initial IFSP 
meeting as

[[Page 197]]

soon as possible after the documented exceptional family circumstances 
described in paragraph (b)(1) of this section no longer exist or 
parental consent is obtained for the screening (if applicable), the 
initial evaluation, and the initial assessment of the child; and
    (3) Develop and implement an interim IFSP, to the extent appropriate 
and consistent with Sec. 303.345.
    (d) The initial family assessment must be conducted within the 45-
day timeline in paragraph (a) of this section if the parent concurs and 
even if other family members are unavailable.

(Authority: 20 U.S.C. 1433, 1435(a), 1436(c))

Sec. Sec. 303.311-303.319  [Reserved]

Sec. 303.320  Screening procedures (optional).

    (a) General. (1) The lead agency may adopt procedures, consistent 
with the requirements of this section, to screen children under the age 
of three who have been referred to the part C program to determine 
whether they are suspected of having a disability under this part. If 
the lead agency or EIS provider proposes to screen a child, it must--
    (i) Provide the parent notice under Sec. 303.421 of its intent to 
screen the child to identify whether the child is suspected of having a 
disability and include in that notice a description of the parent's 
right to request an evaluation under Sec. 303.321 at any time during 
the screening process; and
    (ii) Obtain parental consent as required in Sec. 303.420(a)(1) 
before conducting the screening procedures.
    (2) If the parent consents to the screening and the screening or 
other available information indicates that the child is--
    (i) Suspected of having a disability, after notice is provided under 
Sec. 303.421 and once parental consent is obtained as required in Sec. 
303.420, an evaluation and assessment of the child must be conducted 
under Sec. 303.321; or
    (ii) Not suspected of having a disability, the lead agency or EIS 
provider must ensure that notice of that determination is provided to 
the parent under Sec. 303.421, and that the notice describes the 
parent's right to request an evaluation.
    (3) If the parent of the child requests and consents to an 
evaluation at any time during the screening process, evaluation of the 
child must be conducted under Sec. 303.321, even if the lead agency or 
EIS provider has determined under paragraph (a)(2)(ii) of this section 
that the child is not suspected of having a disability.
    (b) Definition of screening procedures. Screening procedures--
    (1) Means activities under paragraphs (a)(1) and (a)(2) of this 
section that are carried out by, or under the supervision of, the lead 
agency or EIS provider to identify, at the earliest possible age, 
infants and toddlers suspected of having a disability and in need of 
early intervention services; and
    (2) Includes the administration of appropriate instruments by 
personnel trained to administer those instruments.
    (c) Condition for evaluation or early intervention services. For 
every child under the age of three who is referred to the part C program 
or screened in accordance with paragraph (a) of this section, the lead 
agency is not required to--
    (1) Provide an evaluation of the child under Sec. 303.321 unless 
the child is suspected of having a disability or the parent requests an 
evaluation under paragraph (a)(3) of this section; or
    (2) Make early intervention services available under this part to 
the child unless a determination is made that the child meets the 
definition of infant or toddler with a disability under Sec. 303.21.

(Authority: 20 U.S.C. 1432(4)(E)(ix), 1434(1), 1435(a)(2), 1435(a)(5) 
and (a)(6), 1435(c)(2)(G), 1437(a)(6), 1439(a)(6))

Sec. 303.321  Evaluation of the child and assessment of the child and 
          family.

    (a) General. (1) The lead agency must ensure that, subject to 
obtaining parental consent in accordance with Sec. 303.420(a)(2), each 
child under the age of three who is referred for evaluation or early 
intervention services under this part and suspected of having a 
disability, receives--
    (i) A timely, comprehensive, multidisciplinary evaluation of the 
child in accordance with paragraph (b) of this section unless 
eligibility is established

[[Page 198]]

under paragraph (a)(3)(i) of this section; and
    (ii) If the child is determined eligible as an infant or toddler 
with a disability as defined in Sec. 303.21--
    (A) A multidisciplinary assessment of the unique strengths and needs 
of that infant or toddler and the identification of services appropriate 
to meet those needs;
    (B) A family-directed assessment of the resources, priorities, and 
concerns of the family and the identification of the supports and 
services necessary to enhance the family's capacity to meet the 
developmental needs of that infant or toddler. The assessments of the 
child and family are described in paragraph (c) of this section and 
these assessments may occur simultaneously with the evaluation, provided 
that the requirements of paragraph (b) of this section are met.
    (2) As used in this part--
    (i) Evaluation means the procedures used by qualified personnel to 
determine a child's initial and continuing eligibility under this part, 
consistent with the definition of infant or toddler with a disability in 
Sec. 303.21. An initial evaluation refers to the child's evaluation to 
determine his or her initial eligibility under this part;
    (ii) Assessment means the ongoing procedures used by qualified 
personnel to identify the child's unique strengths and needs and the 
early intervention services appropriate to meet those needs throughout 
the period of the child's eligibility under this part and includes the 
assessment of the child, consistent with paragraph (c)(1) of this 
section and the assessment of the child's family, consistent with 
paragraph (c)(2) of this section; and
    (iii) Initial assessment refers to the assessment of the child and 
the family assessment conducted prior to the child's first IFSP meeting.
    (3)(i) A child's medical and other records may be used to establish 
eligibility (without conducting an evaluation of the child) under this 
part if those records indicate that the child's level of functioning in 
one or more of the developmental areas identified in Sec. 303.21(a)(1) 
constitutes a developmental delay or that the child otherwise meets the 
criteria for an infant or toddler with a disability under Sec. 303.21. 
If the child's part C eligibility is established under this paragraph, 
the lead agency or EIS provider must conduct assessments of the child 
and family in accordance with paragraph (c) of this section.
    (ii) Qualified personnel must use informed clinical opinion when 
conducting an evaluation and assessment of the child. In addition, the 
lead agency must ensure that informed clinical opinion may be used as an 
independent basis to establish a child's eligibility under this part 
even when other instruments do not establish eligibility; however, in no 
event may informed clinical opinion be used to negate the results of 
evaluation instruments used to establish eligibility under paragraph (b) 
of this section.
    (4) All evaluations and assessments of the child and family must be 
conducted by qualified personnel, in a nondiscriminatory manner, and 
selected and administered so as not to be racially or culturally 
discriminatory.
    (5) Unless clearly not feasible to do so, all evaluations and 
assessments of a child must be conducted in the native language of the 
child, in accordance with the definition of native language in Sec. 
303.25.
    (6) Unless clearly not feasible to do so, family assessments must be 
conducted in the native language of the family members being assessed, 
in accordance with the definition of native language in Sec. 303.25.
    (b) Procedures for evaluation of the child. In conducting an 
evaluation, no single procedure may be used as the sole criterion for 
determining a child's eligibility under this part. Procedures must 
include--
    (1) Administering an evaluation instrument;
    (2) Taking the child's history (including interviewing the parent);
    (3) Identifying the child's level of functioning in each of the 
developmental areas in Sec. 303.21(a)(1);
    (4) Gathering information from other sources such as family members, 
other care-givers, medical providers, social workers, and educators, if 
necessary, to understand the full scope of the child's unique strengths 
and needs; and

[[Page 199]]

    (5) Reviewing medical, educational, or other records.
    (c) Procedures for assessment of the child and family. (1) An 
assessment of each infant or toddler with a disability must be conducted 
by qualified personnel in order to identify the child's unique strengths 
and needs and the early intervention services appropriate to meet those 
needs. The assessment of the child must include the following--
    (i) A review of the results of the evaluation conducted under 
paragraph (b) of this section;
    (ii) Personal observations of the child; and
    (iii) The identification of the child's needs in each of the 
developmental areas in Sec. 303.21(a)(1).
    (2) A family-directed assessment must be conducted by qualified 
personnel in order to identify the family's resources, priorities, and 
concerns and the supports and services necessary to enhance the family's 
capacity to meet the developmental needs of the family's infant or 
toddler with a disability. The family-directed assessment must--
    (i) Be voluntary on the part of each family member participating in 
the assessment;
    (ii) Be based on information obtained through an assessment tool and 
also through an interview with those family members who elect to 
participate in the assessment; and
    (iii) Include the family's description of its resources, priorities, 
and concerns related to enhancing the child's development.

(Authority: 20 U.S.C. 1435(a)(3), 1435(a)(5), 1436(a)(1)-(2))

Sec. 303.322  Determination that a child is not eligible.

    If, based on the evaluation conducted under Sec. 303.321, the lead 
agency determines that a child is not eligible under this part, the lead 
agency must provide the parent with prior written notice required in 
Sec. 303.421, and include in the notice information about the parent's 
right to dispute the eligibility determination through dispute 
resolution mechanisms under Sec. 303.430, such as requesting a due 
process hearing or mediation or filing a State complaint.

(Authority: 20 U.S.C. 1439(a)(6))

                Individualized Family Service Plan (IFSP)

Sec. 303.340  Individualized family service plan--general.

    For each infant or toddler with a disability, the lead agency must 
ensure the development, review, and implementation of an individualized 
family service plan or IFSP developed by a multidisciplinary team, which 
includes the parent, that--
    (a) Is consistent with the definition of that term in Sec. 303.20; 
and
    (b) Meets the requirements in Sec. Sec. 303.342 through 303.346 of 
this subpart.

(Authority: 20 U.S.C. 1435(a)(4), 1436)

Sec. 303.341  [Reserved]

Sec. 303.342  Procedures for IFSP development, review, and evaluation.

    (a) Meeting to develop initial IFSP--timelines. For a child referred 
to the part C program and determined to be eligible under this part as 
an infant or toddler with a disability, a meeting to develop the initial 
IFSP must be conducted within the 45-day time period described in Sec. 
303.310.
    (b) Periodic review. (1) A review of the IFSP for a child and the 
child's family must be conducted every six months, or more frequently if 
conditions warrant, or if the family requests such a review. The purpose 
of the periodic review is to determine--
    (i) The degree to which progress toward achieving the results or 
outcomes identified in the IFSP is being made; and
    (ii) Whether modification or revision of the results, outcomes, or 
early intervention services identified in the IFSP is necessary.
    (2) The review may be carried out by a meeting or by another means 
that is acceptable to the parents and other participants.
    (c) Annual meeting to evaluate the IFSP. A meeting must be conducted 
on at least an annual basis to evaluate and revise, as appropriate, the 
IFSP for a child and the child's family. The results of any current 
evaluations and other information available from the assessments of the 
child and family conducted under Sec. 303.321 must be used

[[Page 200]]

in determining the early intervention services that are needed and will 
be provided.
    (d) Accessibility and convenience of meetings. (1) IFSP meetings 
must be conducted--
    (i) In settings and at times that are convenient for the family; and
    (ii) In the native language of the family or other mode of 
communication used by the family, unless it is clearly not feasible to 
do so.
    (2) Meeting arrangements must be made with, and written notice 
provided to, the family and other participants early enough before the 
meeting date to ensure that they will be able to attend.
    (e) Parental consent. The contents of the IFSP must be fully 
explained to the parents and informed written consent, as described in 
Sec. 303.7, must be obtained, as required in Sec. 303.420(a)(3), prior 
to the provision of early intervention services described in the IFSP. 
Each early intervention service must be provided as soon as possible 
after the parent provides consent for that service, as required in Sec. 
303.344(f)(1).

(Authority: 20 U.S.C. 1435(a)(4), 1436)

Sec. 303.343  IFSP Team meeting and periodic review.

    (a) Initial and annual IFSP Team meeting. (1) Each initial meeting 
and each annual IFSP Team meeting to evaluate the IFSP must include the 
following participants:
    (i) The parent or parents of the child.
    (ii) Other family members, as requested by the parent, if feasible 
to do so.
    (iii) An advocate or person outside of the family, if the parent 
requests that the person participate.
    (iv) The service coordinator designated by the public agency to be 
responsible for implementing the IFSP.
    (v) A person or persons directly involved in conducting the 
evaluations and assessments in Sec. 303.321.
    (vi) As appropriate, persons who will be providing early 
intervention services under this part to the child or family.
    (2) If a person listed in paragraph (a)(1)(v) of this section is 
unable to attend a meeting, arrangements must be made for the person's 
involvement through other means, including one of the following:
    (i) Participating in a telephone conference call.
    (ii) Having a knowledgeable authorized representative attend the 
meeting.
    (iii) Making pertinent records available at the meeting.
    (b) Periodic review. Each periodic review under Sec. 303.342(b) 
must provide for the participation of persons in paragraphs (a)(1)(i) 
through (a)(1)(iv) of this section. If conditions warrant, provisions 
must be made for the participation of other representatives identified 
in paragraph (a) of this section.

(Authority: 20 U.S.C. 1435(a)(4), 1436)

Sec. 303.344  Content of an IFSP.

    (a) Information about the child's status. The IFSP must include a 
statement of the infant or toddler with a disability's present levels of 
physical development (including vision, hearing, and health status), 
cognitive development, communication development, social or emotional 
development, and adaptive development based on the information from that 
child's evaluation and assessments conducted under Sec. 303.321.
    (b) Family information. With the concurrence of the family, the IFSP 
must include a statement of the family's resources, priorities, and 
concerns related to enhancing the development of the child as identified 
through the assessment of the family under Sec. 303.321(c)(2).
    (c) Results or outcomes. The IFSP must include a statement of the 
measurable results or measurable outcomes expected to be achieved for 
the child (including pre-literacy and language skills, as 
developmentally appropriate for the child) and family, and the criteria, 
procedures, and timelines used to determine--
    (1) The degree to which progress toward achieving the results or 
outcomes identified in the IFSP is being made; and
    (2) Whether modifications or revisions of the expected results or 
outcomes, or early intervention services identified in the IFSP are 
necessary.
    (d) Early intervention services. (1) The IFSP must include a 
statement of the specific early intervention services, based on peer-
reviewed research (to the

[[Page 201]]

extent practicable), that are necessary to meet the unique needs of the 
child and the family to achieve the results or outcomes identified in 
paragraph (c) of this section, including--
    (i) The length, duration, frequency, intensity, and method of 
delivering the early intervention services;
    (ii)(A) A statement that each early intervention service is provided 
in the natural environment for that child or service to the maximum 
extent appropriate, consistent with Sec. Sec. 303.13(a)(8), 303.26 and 
303.126, or, subject to paragraph (d)(1)(ii)(B) of this section, a 
justification as to why an early intervention service will not be 
provided in the natural environment.
    (B) The determination of the appropriate setting for providing early 
intervention services to an infant or toddler with a disability, 
including any justification for not providing a particular early 
intervention service in the natural environment for that infant or 
toddler with a disability and service, must be--
    (1) Made by the IFSP Team (which includes the parent and other team 
members);
    (2) Consistent with the provisions in Sec. Sec. 303.13(a)(8), 
303.26, and 303.126; and
    (3) Based on the child's outcomes that are identified by the IFSP 
Team in paragraph (c) of this section;
    (iii) The location of the early intervention services; and
    (iv) The payment arrangements, if any.
    (2) As used in paragraph (d)(1)(i) of this section--
    (i) Frequency and intensity mean the number of days or sessions that 
a service will be provided, and whether the service is provided on an 
individual or group basis;
    (ii) Method means how a service is provided;
    (iii) Length means the length of time the service is provided during 
each session of that service (such as an hour or other specified time 
period); and
    (iv) Duration means projecting when a given service will no longer 
be provided (such as when the child is expected to achieve the results 
or outcomes in his or her IFSP).
    (3) As used in paragraph (d)(1)(iii) of this section, location means 
the actual place or places where a service will be provided.
    (4) For children who are at least three years of age, the IFSP must 
include an educational component that promotes school readiness and 
incorporates pre-literacy, language, and numeracy skills.
    (e) Other services. To the extent appropriate, the IFSP also must--
    (1) Identify medical and other services that the child or family 
needs or is receiving through other sources, but that are neither 
required nor funded under this part; and
    (2) If those services are not currently being provided, include a 
description of the steps the service coordinator or family may take to 
assist the child and family in securing those other services.
    (f) Dates and duration of services. The IFSP must include--
    (1) The projected date for the initiation of each early intervention 
service in paragraph (d)(1) of this section, which date must be as soon 
as possible after the parent consents to the service, as required in 
Sec. Sec. 303.342(e) and 303.420(a)(3); and
    (2) The anticipated duration of each service.
    (g) Service coordinator. (1) The IFSP must include the name of the 
service coordinator from the profession most relevant to the child's or 
family's needs (or who is otherwise qualified to carry out all 
applicable responsibilities under this part), who will be responsible 
for implementing the early intervention services identified in a child's 
IFSP, including transition services, and coordination with other 
agencies and persons.
    (2) In meeting the requirements in paragraph (g)(1) of this section, 
the term ``profession'' includes ``service coordination.''
    (h) Transition from Part C services. (1) The IFSP must include the 
steps and services to be taken to support the smooth transition of the 
child, in accordance with Sec. Sec. 303.209 and 303.211(b)(6), from 
part C services to--
    (i) Preschool services under part B of the Act, to the extent that 
those services are appropriate;
    (ii) Part C services under Sec. 303.211; or
    (iii) Other appropriate services.

[[Page 202]]

    (2) The steps required in paragraph (h)(1) of this section must 
include--
    (i) Discussions with, and training of, parents, as appropriate, 
regarding future placements and other matters related to the child's 
transition;
    (ii) Procedures to prepare the child for changes in service 
delivery, including steps to help the child adjust to, and function in, 
a new setting;
    (iii) Confirmation that child find information about the child has 
been transmitted to the LEA or other relevant agency, in accordance with 
Sec. 303.209(b) (and any policy adopted by the State under Sec. 
303.401(e)) and, with parental consent if required under Sec. 303.414, 
transmission of additional information needed by the LEA to ensure 
continuity of services from the part C program to the part B program, 
including a copy of the most recent evaluation and assessments of the 
child and the family and most recent IFSP developed in accordance with 
Sec. Sec. 303.340 through 303.345; and
    (iv) Identification of transition services and other activities that 
the IFSP Team determines are necessary to support the transition of the 
child.

(Authority: 20 U.S.C. 1435(a)(10)(B), 1435(a)(16), 1436(a)(3), 1436(d), 
1437(a)(9)-(10), 1440)

Sec. 303.345  Interim IFSPs--provision of services before evaluations 
          and assessments are completed.

    Early intervention services for an eligible child and the child's 
family may commence before the completion of the evaluation and 
assessments in Sec. 303.321, if the following conditions are met:
    (a) Parental consent is obtained.
    (b) An interim IFSP is developed that includes--
    (1) The name of the service coordinator who will be responsible, 
consistent with Sec. 303.344(g), for implementing the interim IFSP and 
coordinating with other agencies and persons; and
    (2) The early intervention services that have been determined to be 
needed immediately by the child and the child's family.
    (c) Evaluations and assessments are completed within the 45-day 
timeline in Sec. 303.310.

(Authority: 20 U.S.C. 1436(c))

Sec. 303.346  Responsibility and accountability.

    Each public agency or EIS provider who has a direct role in the 
provision of early intervention services is responsible for making a 
good faith effort to assist each eligible child in achieving the 
outcomes in the child's IFSP. However, part C of the Act does not 
require that any public agency or EIS provider be held accountable if an 
eligible child does not achieve the growth projected in the child's 
IFSP.

(Authority: 20 U.S.C. 1436)

                     Subpart E_Procedural Safeguards

                                 General

Sec. 303.400  General responsibility of lead agency for procedural 
          safeguards.

    Subject to paragraph (c) of this section, each lead agency must--
    (a) Establish or adopt the procedural safeguards that meet the 
requirements of this subpart, including the provisions on 
confidentiality in Sec. Sec. 303.401 through 303.417, parental consent 
and notice in Sec. Sec. 303.420 and 303.421, surrogate parents in Sec. 
303.422, and dispute resolution procedures in Sec. 303.430;
    (b) Ensure the effective implementation of the safeguards by each 
participating agency (including the lead agency and EIS providers) in 
the statewide system that is involved in the provision of early 
intervention services under this part; and
    (c) Make available to parents an initial copy of the child's early 
intervention record, at no cost to the parents.

(Authority: 20 U.S.C. 1439(a))

    Confidentiality of Personally Identifiable Information and Early 
                          Intervention Records

Sec. 303.401  Confidentiality and opportunity to examine records.

    (a) General. Each State must ensure that the parents of a child 
referred under this part are afforded the right to confidentiality of 
personally identifiable information, including the right to written 
notice of, and written consent to, the exchange of that information 
among agencies, consistent with Federal and State laws.

[[Page 203]]

    (b) Confidentiality procedures. As required under sections 617(c) 
and 642 of the Act, the regulations in Sec. Sec. 303.401 through 
303.417 ensure the protection of the confidentiality of any personally 
identifiable data, information, and records collected or maintained 
pursuant to this part by the Secretary and by participating agencies, 
including the State lead agency and EIS providers, in accordance with 
the protections under the Family Educational Rights and Privacy Act 
(FERPA) in 20 U.S.C. 1232g and 34 CFR part 99. Each State must have 
procedures in effect to ensure that--
    (1) Participating agencies (including the lead agency and EIS 
providers) comply with the part C confidentiality procedures in 
Sec. Sec. 303.401 through 303.417; and
    (2) The parents of infants or toddlers who are referred to, or 
receive services under this part, are afforded the opportunity to 
inspect and review all part C early intervention records about the child 
and the child's family that are collected, maintained, or used under 
this part, including records related to evaluations and assessments, 
screening, eligibility determinations, development and implementation of 
IFSPs, provision of early intervention services, individual complaints 
involving the child, or any part of the child's early intervention 
record under this part.
    (c) Applicability and timeframe of procedures. The confidentiality 
procedures described in paragraph (b) of this section apply to the 
personally identifiable information of a child and the child's family 
that--
    (1) Is contained in early intervention records collected, used, or 
maintained under this part by the lead agency or an EIS provider; and
    (2) Applies from the point in time when the child is referred for 
early intervention services under this part until the later of when the 
participating agency is no longer required to maintain or no longer 
maintains that information under applicable Federal and State laws.
    (d) Disclosure of information. (1) Subject to paragraph (e) of this 
section, the lead agency must disclose to the SEA and the LEA where the 
child resides, in accordance with Sec. 303.209(b)(1)(i) and (b)(1)(ii), 
the following personally identifiable information under the Act:
    (i) A child's name.
    (ii) A child's date of birth.
    (iii) Parent contact information (including parents' names, 
addresses, and telephone numbers).
    (2) The information described in paragraph (d)(1) of this section is 
needed to enable the lead agency, as well as LEAs and SEAs under part B 
of the Act, to identify all children potentially eligible for services 
under Sec. 303.211 and part B of the Act.
    (e) Option to inform a parent about intended disclosure. (1) A lead 
agency, through its policies and procedures, may require EIS providers, 
prior to making the limited disclosure described in paragraph (d)(1) of 
this section, to inform parents of a toddler with a disability of the 
intended disclosure and allow the parents a specified time period to 
object to the disclosure in writing.
    (2) If a parent (in a State that has adopted the policy described in 
paragraph (e)(1) of this section) objects during the time period 
provided by the State, the lead agency and EIS provider are not 
permitted to make such a disclosure under paragraph (d) of this section 
and Sec. 303.209(b)(1)(i) and (b)(1)(ii).

(Authority: 20 U.S.C. 1412(a)(8), 1412(a)(9), 1417(c), 1435(a)(5), 
1437(a)(9), 1439(a)(2), 1439(a)(4), 1439(a)(6), 1442)

Sec. 303.402  Confidentiality.

    The Secretary takes appropriate action, in accordance with section 
444 of GEPA, to ensure the protection of the confidentiality of any 
personally identifiable data, information, and records collected, 
maintained, or used by the Secretary and by lead agencies and EIS 
providers pursuant to part C of the Act, and consistent with Sec. Sec. 
303.401 through 303.417. The regulations in Sec. Sec. 303.401 through 
303.417 ensure the protection of the confidentiality of any personally 
identifiable data, information, and records collected or maintained 
pursuant to this part by the Secretary and by participating agencies, 
including the State lead agency and EIS providers, in accordance with 
the Family

[[Page 204]]

Educational Rights and Privacy Act (FERPA), 20 U.S.C. 1232g, and 34 CFR 
part 99.

(Authority: 20 U.S.C. 1417(c), 1435(a)(5), 1439(a)(2), 1442)

Sec. 303.403  Definitions.

    The following definitions apply to Sec. Sec. 303.402 through 
303.417 in addition to the definition of personally identifiable 
information in Sec. 303.29 and disclosure in 34 CFR 99.3:
    (a) Destruction means physical destruction of the record or ensuring 
that personal identifiers are removed from a record so that the record 
is no longer personally identifiable under Sec. 303.29.
    (b) Early intervention records mean all records regarding a child 
that are required to be collected, maintained, or used under part C of 
the Act and the regulations in this part.
    (c) Participating agency means any individual, agency, entity, or 
institution that collects, maintains, or uses personally identifiable 
information to implement the requirements in part C of the Act and the 
regulations in this part with respect to a particular child. A 
participating agency includes the lead agency and EIS providers and any 
individual or entity that provides any part C services (including 
service coordination, evaluations and assessments, and other part C 
services), but does not include primary referral sources, or public 
agencies (such as the State Medicaid or CHIP program) or private 
entities (such as private insurance companies) that act solely as 
funding sources for part C services.

(Authority: 20 U.S.C. 1221e-3, 1417(c), 1435(a)(5), 1439(a)(2), 1442)

Sec. 303.404  Notice to parents.

    The lead agency must give notice when a child is referred under part 
C of the Act that is adequate to fully inform parents about the 
requirements in Sec. 303.402, including--
    (a) A description of the children on whom personally identifiable 
information is maintained, the types of information sought, the methods 
the State intends to use in gathering the information (including the 
sources from whom information is gathered), and the uses to be made of 
the information;
    (b) A summary of the policies and procedures that participating 
agencies must follow regarding storage, disclosure to third parties, 
retention, and destruction of personally identifiable information;
    (c) A description of all the rights of parents and children 
regarding this information, including their rights under the part C 
confidentiality provisions in Sec. Sec. 303.401 through 303.417; and
    (d) A description of the extent that the notice is provided in the 
native languages of the various population groups in the State.

(Authority: 20 U.S.C. 1417(c), 1435(a)(5), 1439(a)(2), 1442)

Sec. 303.405  Access rights.

    (a) Each participating agency must permit parents to inspect and 
review any early intervention records relating to their children that 
are collected, maintained, or used by the agency under this part. The 
agency must comply with a parent's request to inspect and review records 
without unnecessary delay and before any meeting regarding an IFSP, or 
any hearing pursuant to Sec. Sec. 303.430(d) and 303.435 through 
303.439, and in no case more than 10 days after the request has been 
made.
    (b) The right to inspect and review early intervention records under 
this section includes--
    (1) The right to a response from the participating agency to 
reasonable requests for explanations and interpretations of the early 
intervention records;
    (2) The right to request that the participating agency provide 
copies of the early intervention records containing the information if 
failure to provide those copies would effectively prevent the parent 
from exercising the right to inspect and review the records; and
    (3) The right to have a representative of the parent inspect and 
review the early intervention records.
    (c) An agency may presume that the parent has authority to inspect 
and review records relating to his or her child unless the agency has 
been provided documentation that the parent does not have the authority 
under applicable State laws governing such matters

[[Page 205]]

as custody, foster care, guardianship, separation, and divorce.

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.406  Record of access.

    Each participating agency must keep a record of parties obtaining 
access to early intervention records collected, maintained, or used 
under part C of the Act (except access by parents and authorized 
representatives and employees of the participating agency), including 
the name of the party, the date access was given, and the purpose for 
which the party is authorized to use the early intervention records.

(Authority: 20 U.S.C. 1417(c), 1435(a)(5), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.407  Records on more than one child.

    If any early intervention record includes information on more than 
one child, the parents of those children have the right to inspect and 
review only the information relating to their child or to be informed of 
that specific information.

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.408  List of types and locations of information.

    Each participating agency must provide parents, on request, a list 
of the types and locations of early intervention records collected, 
maintained, or used by the agency.

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.409  Fees for records.

    (a) Each participating agency may charge a fee for copies of records 
that are made for parents under this part if the fee does not 
effectively prevent the parents from exercising their right to inspect 
and review those records, except as provided in paragraph (c) of this 
section.
    (b) A participating agency may not charge a fee to search for or to 
retrieve information under this part.
    (c) A participating agency must provide at no cost to parents, a 
copy of each evaluation, assessment of the child, family assessment, and 
IFSP as soon as possible after each IFSP meeting.

(Authority: 20 U.S.C. 1417(c), 1432(4)(B), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.410  Amendment of records at a parent's request.

    (a) A parent who believes that information in the early intervention 
records collected, maintained, or used under this part is inaccurate, 
misleading, or violates the privacy or other rights of the child or 
parent may request that the participating agency that maintains the 
information amend the information.
    (b) The participating agency must decide whether to amend the 
information in accordance with the request within a reasonable period of 
time of receipt of the request.
    (c) If the participating agency refuses to amend the information in 
accordance with the request, it must inform the parent of the refusal 
and advise the parent of the right to a hearing under Sec. 303.411.

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.411  Opportunity for a hearing.

    The participating agency must, on request, provide parents with the 
opportunity for a hearing to challenge information in their child's 
early intervention records to ensure that it is not inaccurate, 
misleading, or otherwise in violation of the privacy or other rights of 
the child or parents. A parent may request a due process hearing under 
the procedures in Sec. 303.430(d)(1) provided that such hearing 
procedures meet the requirements of the hearing procedures in Sec. 
303.413 or may request a hearing directly under the State's procedures 
in Sec. 303.413 (i.e., procedures that are consistent with the FERPA 
hearing requirements in 34 CFR 99.22).

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.412  Result of hearing.

    (a) If, as a result of the hearing, the participating agency decides 
that the information is inaccurate, misleading or in violation of the 
privacy or other rights of the child or parent, it must

[[Page 206]]

amend the information accordingly and so inform the parent in writing.
    (b) If, as a result of the hearing, the agency decides that the 
information is not inaccurate, misleading, or in violation of the 
privacy or other rights of the child or parent, it must inform the 
parent of the right to place in the early intervention records it 
maintains on the child a statement commenting on the information or 
setting forth any reasons for disagreeing with the decision of the 
agency.
    (c) Any explanation placed in the early intervention records of the 
child under this section must--
    (1) Be maintained by the agency as part of the early intervention 
records of the child as long as the record or contested portion is 
maintained by the agency; and
    (2) If the early intervention records of the child or the contested 
portion are disclosed by the agency to any party, the explanation must 
also be disclosed to the party.

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.413  Hearing procedures.

    A hearing held under Sec. 303.411 must be conducted according to 
the procedures under 34 CFR 99.22.

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.414  Consent prior to disclosure or use.

    (a) Except as provided in paragraph (b) of this section, prior 
parental consent must be obtained before personally identifiable 
information is--
    (1) Disclosed to anyone other than authorized representatives, 
officials, or employees of participating agencies collecting, 
maintaining, or using the information under this part, subject to 
paragraph (b) of this section; or
    (2) Used for any purpose other than meeting a requirement of this 
part.
    (b) A lead agency or other participating agency may not disclose 
personally identifiable information, as defined in Sec. 303.29, to any 
party except participating agencies (including the lead agency and EIS 
providers) that are part of the State's part C system without parental 
consent unless authorized to do so under--
    (1) Sections 303.401(d), 303.209(b)(1)(i) and (b)(1)(ii), and 
303.211(b)(6)(ii)(A); or
    (2) One of the exceptions enumerated in 34 CFR 99.31 (where 
applicable to part C), which are expressly adopted to apply to part C 
through this reference. In applying the exceptions in 34 CFR 99.31 to 
this part, participating agencies must also comply with the pertinent 
conditions in 34 CFR 99.32, 99.33, 99.34, 99.35, 99.36, 99.38, and 
99.39; in applying these provisions in 34 CFR part 99 to part C, the 
reference to--
    (i) 34 CFR 99.30 means Sec. 303.414(a);
    (ii) ``Education records'' means early intervention records under 
Sec. 303.403(b);
    (iii) ``Educational'' means early intervention under this part;
    (iv) ``Educational agency or institution'' means the participating 
agency under Sec. 303.404(c);
    (v) ``School officials and officials of another school or school 
system'' means qualified personnel or service coordinators under this 
part;
    (vi) ``State and local educational authorities'' means the lead 
agency under Sec. 303.22; and
    (vii) ``Student'' means child under this part.
    (c) The lead agency must provide policies and procedures to be used 
when a parent refuses to provide consent under this section (such as a 
meeting to explain to parents how their failure to consent affects the 
ability of their child to receive services under this part), provided 
that those procedures do not override a parent's right to refuse consent 
under Sec. 303.420.

(Authority: 20 U.S.C. 1417(c), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.415  Safeguards.

    (a) Each participating agency must protect the confidentiality of 
personally identifiable information at the collection, maintenance, use, 
storage, disclosure, and destruction stages.
    (b) One official at each participating agency must assume 
responsibility for ensuring the confidentiality of any personally 
identifiable information.
    (c) All persons collecting or using personally identifiable 
information

[[Page 207]]

must receive training or instruction regarding the State's policies and 
procedures under Sec. Sec. 303.401 through 303.417 and 34 CFR part 99.
    (d) Each participating agency must maintain, for public inspection, 
a current listing of the names and positions of those employees within 
the agency who may have access to personally identifiable information.

(Authority: 20 U.S.C. 1417(c), 1435(a)(5), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.416  Destruction of information.

    (a) The participating agency must inform parents when personally 
identifiable information collected, maintained, or used under this part 
is no longer needed to provide services to the child under part C of the 
Act, the GEPA provisions in 20 U.S.C. 1232f, and EDGAR, 34 CFR parts 76 
and 80.
    (b) Subject to paragraph (a) of this section, the information must 
be destroyed at the request of the parents. However, a permanent record 
of a child's name, date of birth, parent contact information (including 
address and phone number), names of service coordinator(s) and EIS 
provider(s), and exit data (including year and age upon exit, and any 
programs entered into upon exiting) may be maintained without time 
limitation.

(Authority: 20 U.S.C. 1417(c), 1435(a)(5), 1439(a)(2), 1439(a)(4), 1442)

Sec. 303.417  Enforcement.

    The lead agency must have in effect the policies and procedures, 
including sanctions and the right to file a complaint under Sec. Sec. 
303.432 through 303.434, that the State uses to ensure that its policies 
and procedures, consistent with Sec. Sec. 303.401 through 303.417, are 
followed and that the requirements of the Act and the regulations in 
this part are met.

(Authority: 20 U.S.C. 1417(c), 1435(a)(5), 1439(a)(2), 1439(a)(4), 1442)

                       Parental Consent and Notice

Sec. 303.420  Parental consent and ability to decline services.

    (a) The lead agency must ensure parental consent is obtained 
before--
    (1) Administering screening procedures under Sec. 303.320 that are 
used to determine whether a child is suspected of having a disability;
    (2) All evaluations and assessments of a child are conducted under 
Sec. 303.321;
    (3) Early intervention services are provided to the child under this 
part;
    (4) Public benefits or insurance or private insurance is used if 
such consent is required under Sec. 303.520; and
    (5) Disclosure of personally identifiable information consistent 
with Sec. 303.414.
    (b) If a parent does not give consent under paragraph (a)(1), 
(a)(2), or (a)(3) of this section, the lead agency must make reasonable 
efforts to ensure that the parent--
    (1) Is fully aware of the nature of the evaluation and assessment of 
the child or early intervention services that would be available; and
    (2) Understands that the child will not be able to receive the 
evaluation, assessment, or early intervention service unless consent is 
given.
    (c) The lead agency may not use the due process hearing procedures 
under this part or part B of the Act to challenge a parent's refusal to 
provide any consent that is required under paragraph (a) of this 
section.
    (d) The parents of an infant or toddler with a disability--
    (1) Determine whether they, their infant or toddler with a 
disability, or other family members will accept or decline any early 
intervention service under this part at any time, in accordance with 
State law; and
    (2) May decline a service after first accepting it, without 
jeopardizing other early intervention services under this part.

(Authority: 20 U.S.C. 1436(e), 1439(a)(3))

Sec. 303.421  Prior written notice and procedural safeguards notice.

    (a) General. Prior written notice must be provided to parents a 
reasonable time before the lead agency or an EIS provider proposes, or 
refuses, to initiate or change the identification, evaluation, or 
placement of their infant or toddler, or the provision of early 
intervention services to the infant or toddler with a disability and 
that infant's or toddler's family.

[[Page 208]]

    (b) Content of notice. The notice must be in sufficient detail to 
inform parents about--
    (1) The action that is being proposed or refused;
    (2) The reasons for taking the action; and
    (3) All procedural safeguards that are available under this subpart, 
including a description of mediation in Sec. 303.431, how to file a 
State complaint in Sec. Sec. 303.432 through 303.434 and a due process 
complaint in the provisions adopted under Sec. 303.430(d), and any 
timelines under those procedures.
    (c) Native language. (1) The notice must be--
    (i) Written in language understandable to the general public; and
    (ii) Provided in the native language, as defined in Sec. 303.25, of 
the parent or other mode of communication used by the parent, unless it 
is clearly not feasible to do so.
    (2) If the native language or other mode of communication of the 
parent is not a written language, the public agency or designated EIS 
provider must take steps to ensure that--
    (i) The notice is translated orally or by other means to the parent 
in the parent's native language or other mode of communication;
    (ii) The parent understands the notice; and
    (iii) There is written evidence that the requirements of this 
paragraph have been met.

(Authority: 20 U.S.C. 1439(a)(6)-(7))

                            Surrogate Parents

Sec. 303.422  Surrogate parents.

    (a) General. Each lead agency or other public agency must ensure 
that the rights of a child are protected when--
    (1) No parent (as defined in Sec. 303.27) can be identified;
    (2) The lead agency or other public agency, after reasonable 
efforts, cannot locate a parent; or
    (3) The child is a ward of the State under the laws of that State.
    (b) Duty of lead agency and other public agencies. (1) The duty of 
the lead agency, or other public agency under paragraph (a) of this 
section, includes the assignment of an individual to act as a surrogate 
for the parent. This assignment process must include a method for--
    (i) Determining whether a child needs a surrogate parent; and
    (ii) Assigning a surrogate parent to the child.
    (2) In implementing the provisions under this section for children 
who are wards of the State or placed in foster care, the lead agency 
must consult with the public agency that has been assigned care of the 
child.
    (c) Wards of the State. In the case of a child who is a ward of the 
State, the surrogate parent, instead of being appointed by the lead 
agency under paragraph (b)(1) of this section, may be appointed by the 
judge overseeing the infant or toddler's case provided that the 
surrogate parent meets the requirements in paragraphs (d)(2)(i) and (e) 
of this section.
    (d) Criteria for selection of surrogate parents. (1) The lead agency 
or other public agency may select a surrogate parent in any way 
permitted under State law.
    (2) Public agencies must ensure that a person selected as a 
surrogate parent--
    (i) Is not an employee of the lead agency or any other public agency 
or EIS provider that provides early intervention services, education, 
care, or other services to the child or any family member of the child;
    (ii) Has no personal or professional interest that conflicts with 
the interest of the child he or she represents; and
    (iii) Has knowledge and skills that ensure adequate representation 
of the child.
    (e) Non-employee requirement; compensation. A person who is 
otherwise qualified to be a surrogate parent under paragraph (d) of this 
section is not an employee of the agency solely because he or she is 
paid by the agency to serve as a surrogate parent.
    (f) Surrogate parent responsibilities. The surrogate parent has the 
same rights as a parent for all purposes under this part.
    (g) Lead agency responsibility. The lead agency must make reasonable 
efforts to ensure the assignment of a surrogate parent not more than 30 
days

[[Page 209]]

after a public agency determines that the child needs a surrogate 
parent.

(Authority: 20 U.S.C. 1439(a)(5))

                       Dispute Resolution Options

Sec. 303.430  State dispute resolution options.

    (a) General. Each statewide system must include written procedures 
for the timely administrative resolution of complaints through 
mediation, State complaint procedures, and due process hearing 
procedures, described in paragraphs (b) through (e) of this section.
    (b) Mediation. Each lead agency must make available to parties to 
disputes involving any matter under this part the opportunity for 
mediation that meets the requirements in Sec. 303.431.
    (c) State complaint procedures. Each lead agency must adopt written 
State complaint procedures to resolve any State complaints filed by any 
party regarding any violation of this part that meet the requirements in 
Sec. Sec. 303.432 through 303.434.
    (d) Due process hearing procedures. Each lead agency must adopt 
written due process hearing procedures to resolve complaints with 
respect to a particular child regarding any matter identified in Sec. 
303.421(a), by either adopting--
    (1) The part C due process hearing procedures under section 639 of 
the Act that--
    (i) Meet the requirements in Sec. Sec. 303.435 through 303.438; and
    (ii) Provide a means of filing a due process complaint regarding any 
matter listed in Sec. 303.421(a); or
    (2) The part B due process hearing procedures under section 615 of 
the Act and Sec. Sec. 303.440 through 303.449 (with either a 30-day or 
45-day timeline for resolving due process complaints, as provided in 
Sec. 303.440(c)).
    (e) Status of a child during the pendency of a due process 
complaint. (1) During the pendency of any proceeding involving a due 
process complaint under paragraph (d) of this section, unless the lead 
agency and parents of an infant or toddler with a disability otherwise 
agree, the child must continue to receive the appropriate early 
intervention services in the setting identified in the IFSP that is 
consented to by the parents.
    (2) If the due process complaint under paragraph (d) of this section 
involves an application for initial services under part C of the Act, 
the child must receive those services that are not in dispute.

(Approved by Office of Management and Budget under control number 1820-
0678 and 1820-NEW)

(Authority: 20 U.S.C. 1415(e), 1415(f)(1)(A), 1415(f)(3)(A)-(D), 1439)

                                Mediation

Sec. 303.431  Mediation.

    (a) General. Each lead agency must ensure that procedures are 
established and implemented to allow parties to disputes involving any 
matter under this part, including matters arising prior to the filing of 
a due process complaint, to resolve disputes through a mediation process 
at any time.
    (b) Requirements. The procedures must meet the following 
requirements:
    (1) The procedures must ensure that the mediation process--
    (i) Is voluntary on the part of the parties;
    (ii) Is not used to deny or delay a parent's right to a due process 
hearing, or to deny any other rights afforded under part C of the Act; 
and
    (iii) Is conducted by a qualified and impartial mediator who is 
trained in effective mediation techniques.
    (2)(i) The State must maintain a list of individuals who are 
qualified mediators and knowledgeable in laws and regulations relating 
to the provision of early intervention services.
    (ii) The lead agency must select mediators on a random, rotational, 
or other impartial basis.
    (3) The State must bear the cost of the mediation process, including 
the costs of meetings described in paragraph (d) of this section.
    (4) Each session in the mediation process must be scheduled in a 
timely manner and must be held in a location that is convenient to the 
parties to the dispute.
    (5) If the parties resolve a dispute through the mediation process, 
the parties must execute a legally binding

[[Page 210]]

agreement that sets forth that resolution and that--
    (i) States that all discussions that occurred during the mediation 
process will remain confidential and may not be used as evidence in any 
subsequent due process hearing or civil proceeding; and
    (ii) Is signed by both the parent and a representative of the lead 
agency who has the authority to bind such agency.
    (6) A written, signed mediation agreement under this paragraph is 
enforceable in any State court of competent jurisdiction or in a 
district court of the United States.
    (7) Discussions that occur during the mediation process must be 
confidential and may not be used as evidence in any subsequent due 
process hearing or civil proceeding of any Federal court or State court 
of a State receiving assistance under this part.
    (c) Impartiality of mediator. (1) An individual who serves as a 
mediator under this part--
    (i) May not be an employee of the lead agency or an EIS provider 
that is involved in the provision of early intervention services or 
other services to the child; and
    (ii) Must not have a personal or professional interest that 
conflicts with the person's objectivity.
    (2) A person who otherwise qualifies as a mediator is not an 
employee of a lead agency or an early intervention provider solely 
because he or she is paid by the agency or provider to serve as a 
mediator.
    (d) Meeting to encourage mediation. A lead agency may establish 
procedures to offer to parents and EIS providers that choose not to use 
the mediation process, an opportunity to meet, at a time and location 
convenient to the parents, with a disinterested party--
    (1) Who is under contract with an appropriate alternative dispute 
resolution entity, or a parent training and information center or 
community parent resource center in the State established under section 
671 or 672 of the Act; and
    (2) Who would explain the benefits of, and encourage the use of, the 
mediation process to the parents.

(Approved by Office of Management and Budget under control number 1820-
NEW)

(Authority: 20 U.S.C. 1415(e), 1439(a)(8))

                       State Complaint Procedures

Sec. 303.432  Adoption of State complaint procedures.

    (a) General. Each lead agency must adopt written procedures for--
    (1) Resolving any complaint, including a complaint filed by an 
organization or individual from another State, that meets the 
requirements in Sec. 303.434 by providing for the filing of a complaint 
with the lead agency; and
    (2) Widely disseminating to parents and other interested 
individuals, including parent training and information centers, 
Protection and Advocacy (P&A) agencies, and other appropriate entities, 
the State procedures under Sec. Sec. 303.432 through 303.434.
    (b) Remedies for denial of appropriate services. In resolving a 
complaint in which the lead agency has found a failure to provide 
appropriate services, the lead agency, pursuant to its general 
supervisory authority under part C of the Act, must address--
    (1) The failure to provide appropriate services, including 
corrective actions appropriate to address the needs of the infant or 
toddler with a disability who is the subject of the complaint and the 
infant's or toddler's family (such as compensatory services or monetary 
reimbursement); and
    (2) Appropriate future provision of services for all infants and 
toddlers with disabilities and their families.

(Approved by Office of Management and Budget under control number 1820-
NEW)

(Authority: 20 U.S.C. 1439(a)(1))

Sec. 303.433  Minimum State complaint procedures.

    (a) Time limit; minimum procedures. Each lead agency must include in 
its complaint procedures a time limit of 60 days after a complaint is 
filed under Sec. 303.434 to--

[[Page 211]]

    (1) Carry out an independent on-site investigation, if the lead 
agency determines that an investigation is necessary;
    (2) Give the complainant the opportunity to submit additional 
information, either orally or in writing, about the allegations in the 
complaint;
    (3) Provide the lead agency, public agency, or EIS provider with an 
opportunity to respond to the complaint, including, at a minimum--
    (i) At the discretion of the lead agency, a proposal to resolve the 
complaint; and
    (ii) An opportunity for a parent who has filed a complaint and the 
lead agency, public agency, or EIS provider to voluntarily engage in 
mediation, consistent with Sec. Sec. 303.430(b) and 303.431;
    (4) Review all relevant information and make an independent 
determination as to whether the lead agency, public agency, or EIS 
provider is violating a requirement of part C of the Act or of this 
part; and
    (5) Issue a written decision to the complainant that addresses each 
allegation in the complaint and contains--
    (i) Findings of fact and conclusions; and
    (ii) The reasons for the lead agency's final decision.
    (b) Time extension; final decision; implementation. The lead 
agency's procedures described in paragraph (a) of this section also 
must--
    (1) Permit an extension of the time limit under paragraph (a) of 
this section only if--
    (i) Exceptional circumstances exist with respect to a particular 
complaint; or
    (ii) The parent (or individual or organization, if mediation is 
available to the individual or organization under State procedures) and 
the lead agency, public agency or EIS provider involved agree to extend 
the time to engage in mediation pursuant to paragraph (a)(3)(ii) of this 
section; and
    (2) Include procedures for effective implementation of the lead 
agency's final decision, if needed, including--
    (i) Technical assistance activities;
    (ii) Negotiations; and
    (iii) Corrective actions to achieve compliance.
    (c) Complaints filed under this section and due process hearings 
under Sec. 303.430(d). (1) If a written complaint is received that is 
also the subject of a due process hearing under Sec. 303.430(d), or 
contains multiple issues of which one or more are part of that hearing, 
the State must set aside any part of the complaint that is being 
addressed in the due process hearing until the conclusion of the 
hearing. However, any issue in the complaint that is not a part of the 
due process hearing must be resolved using the time limit and procedures 
described in paragraphs (a) and (b) of this section.
    (2) If an issue raised in a complaint filed under this section has 
previously been decided in a due process hearing involving the same 
parties--
    (i) The due process hearing decision is binding on that issue; and
    (ii) The lead agency must inform the complainant to that effect.
    (3) A complaint alleging a lead agency, public agency, or EIS 
provider's failure to implement a due process hearing decision must be 
resolved by the lead agency.

(Approved by Office of Management and Budget under control number 1820-
NEW)

(Authority: 20 U.S.C. 1439(a)(1))

Sec. 303.434  Filing a complaint.

    (a) An organization or individual may file a signed written 
complaint under the procedures described in Sec. Sec. 303.432 and 
303.433.
    (b) The complaint must include--
    (1) A statement that the lead agency, public agency, or EIS provider 
has violated a requirement of part C of the Act;
    (2) The facts on which the statement is based;
    (3) The signature and contact information for the complainant; and
    (4) If alleging violations with respect to a specific child--
    (i) The name and address of the residence of the child;
    (ii) The name of the EIS provider serving the child;
    (iii) A description of the nature of the problem of the child, 
including facts relating to the problem; and

[[Page 212]]

    (iv) A proposed resolution of the problem to the extent known and 
available to the party at the time the complaint is filed.
    (c) The complaint must allege a violation that occurred not more 
than one year prior to the date that the complaint is received in 
accordance with Sec. 303.432.
    (d) The party filing the complaint must forward a copy of the 
complaint to the public agency or EIS provider serving the child at the 
same time the party files the complaint with the lead agency.

(Approved by Office of Management and Budget under control number 1820-
NEW)

(Authority: 20 U.S.C. 1439(a)(1))

 States That Choose To Adopt the Part C Due Process Hearing Procedures 
                      Under Section 639 of the Act

Sec. 303.435  Appointment of an impartial due process hearing officer.

    (a) Qualifications and duties. Whenever a due process complaint is 
received under Sec. 303.430(d), a due process hearing officer must be 
appointed to implement the complaint resolution process in this subpart. 
The person must--
    (1) Have knowledge about the provisions of this part and the needs 
of, and early intervention services available for, infants and toddlers 
with disabilities and their families; and
    (2) Perform the following duties:
    (i)(A) Listen to the presentation of relevant viewpoints about the 
due process complaint.
    (B) Examine all information relevant to the issues.
    (C) Seek to reach a timely resolution of the due process complaint.
    (ii) Provide a record of the proceedings, including a written 
decision.
    (b) Definition of impartial. (1) Impartial means that the due 
process hearing officer appointed to implement the due process hearing 
under this part--
    (i) Is not an employee of the lead agency or an EIS provider 
involved in the provision of early intervention services or care of the 
child; and
    (ii) Does not have a personal or professional interest that would 
conflict with his or her objectivity in implementing the process.
    (2) A person who otherwise qualifies under paragraph (b)(1) of this 
section is not an employee of an agency solely because the person is 
paid by the agency to implement the due process hearing procedures or 
mediation procedures under this part.

(Authority: 20 U.S.C. 1439(a)(1))

Sec. 303.436  Parental rights in due process hearing proceedings.

    (a) General. Each lead agency must ensure that the parents of a 
child referred to part C are afforded the rights in paragraph (b) of 
this section in the due process hearing carried out under Sec. 
303.430(d).
    (b) Rights. Any parent involved in a due process hearing has the 
right to--
    (1) Be accompanied and advised by counsel and by individuals with 
special knowledge or training with respect to early intervention 
services for infants and toddlers with disabilities;
    (2) Present evidence and confront, cross-examine, and compel the 
attendance of witnesses;
    (3) Prohibit the introduction of any evidence at the hearing that 
has not been disclosed to the parent at least five days before the 
hearing;
    (4) Obtain a written or electronic verbatim transcription of the 
hearing at no cost to the parent; and
    (5) Receive a written copy of the findings of fact and decisions at 
no cost to the parent.

(Authority: 20 U.S.C. 1439(a))

Sec. 303.437  Convenience of hearings and timelines.

    (a) Any due process hearing conducted under this subpart must be 
carried out at a time and place that is reasonably convenient to the 
parents.
    (b) Each lead agency must ensure that, not later than 30 days after 
the receipt of a parent's due process complaint, the due process hearing 
required under this subpart is completed and a written decision mailed 
to each of the parties.

[[Page 213]]

    (c) A hearing officer may grant specific extensions of time beyond 
the period set out in paragraph (b) of this section at the request of 
either party.

(Authority: 20 U.S.C. 1439(a)(1))

Sec. 303.438  Civil action.

    Any party aggrieved by the findings and decision issued pursuant to 
a due process complaint has the right to bring a civil action in State 
or Federal court under section 639(a)(1) of the Act.

(Authority: 20 U.S.C. 1439(a)(1))

 States That Choose To Adopt the Part B Due Process Hearing Procedures 
                      Under Section 615 of the Act

Sec. 303.440  Filing a due process complaint.

    (a) General. (1) A parent, EIS provider, or a lead agency may file a 
due process complaint on any of the matters described in Sec. 
303.421(a), relating to the identification, evaluation, or placement of 
a child, or the provision of early intervention services to the infant 
or toddler with a disability and his or her family under part C of the 
Act.
    (2) The due process complaint must allege a violation that occurred 
not more than two years before the date the parent or EIS provider knew, 
or should have known, about the alleged action that forms the basis of 
the due process complaint, or, if the State has an explicit time 
limitation for filing a due process complaint under this part, in the 
time allowed by that State law, except that the exceptions to the 
timeline described in Sec. 303.443(f) apply to the timeline in this 
section.
    (b) Information for parents. The lead agency must inform the parent 
of any free or low-cost legal and other relevant services available in 
the area if--
    (1) The parent requests the information; or
    (2) The parent or EIS provider files a due process complaint under 
this section.
    (c) Timeline for Resolution. The lead agency may adopt a 30- or 45-
day timeline, subject to Sec. 303.447(a), for the resolution of due 
process complaints and must specify in its written policies and 
procedures under Sec. 303.123 and in its prior written notice under 
Sec. 303.421, the specific timeline it has adopted.

(Approved by Office of Management and Budget under control number 1820-
NEW)

(Authority: 20 U.S.C. 1415(b)(6), 1439)

Sec. 303.441  Due process complaint.

    (a) General. (1) The lead agency must have procedures that require 
either party, or the attorney representing a party, to provide to the 
other party a due process complaint (which must remain confidential).
    (2) The party filing a due process complaint must forward a copy of 
the due process complaint to the lead agency.
    (b) Content of complaint. The due process complaint required in 
paragraph (a)(1) of this section must include--
    (1) The name of the child;
    (2) The address of the residence of the child;
    (3) The name of the EIS provider serving the child;
    (4) In the case of a homeless child (within the meaning of section 
725(2) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11434a(2)), available contact information for the child, and the name of 
the EIS provider serving the child;
    (5) A description of the nature of the problem of the child relating 
to the proposed or refused initiation or change, including facts 
relating to the problem; and
    (6) A proposed resolution of the problem to the extent known and 
available to the party at the time.
    (c) Notice required before a hearing on a due process complaint. A 
party may not have a hearing on a due process complaint until the party, 
or the attorney representing the party, files a due process complaint 
that meets the requirements of paragraph (b) of this section.
    (d) Sufficiency of complaint. (1) The due process complaint required 
by this section must be deemed sufficient unless the party receiving the 
due process complaint notifies the hearing officer and the other party 
in writing, within 15 days of receipt of the due process complaint, that 
the receiving party believes the due process complaint does not meet the 
requirements in paragraph (b) of this section.

[[Page 214]]

    (2) Within five days of receipt of notification under paragraph 
(d)(1) of this section, the hearing officer must make a determination on 
the face of the due process complaint of whether the due process 
complaint meets the requirements in paragraph (b) of this section, and 
must immediately notify the parties in writing of that determination.
    (3) A party may amend its due process complaint only if--
    (i) The other party consents in writing to the amendment and is 
given the opportunity to resolve the due process complaint through a 
meeting held pursuant to Sec. 303.442; or
    (ii) The hearing officer grants permission, except that the hearing 
officer may only grant permission to amend at any time not later than 
five days before the due process hearing begins.
    (4) If a party files an amended due process complaint, the timelines 
for the resolution meeting in Sec. 303.442(a) and the time period to 
resolve in Sec. 303.442(b) begin again with the filing of the amended 
due process complaint.
    (e) Lead agency response to a due process complaint. (1) If the lead 
agency has not sent a prior written notice under Sec. 303.421 to the 
parent regarding the subject matter contained in the parent's due 
process complaint, the lead agency or EIS provider must, within 10 days 
of receiving the due process complaint, send to the parent a response 
that includes--
    (i) An explanation of why the lead agency or EIS provider proposed 
or refused to take the action raised in the due process complaint;
    (ii) A description of other options that the IFSP Team considered 
and the reasons why those options were rejected;
    (iii) A description of each evaluation procedure, assessment, 
record, or report the lead agency or EIS provider used as the basis for 
the proposed or refused action; and
    (iv) A description of the other factors that are relevant to the 
agency's or EIS provider's proposed or refused action.
    (2) A response by the lead agency under paragraph (e)(1) of this 
section does not preclude the lead agency from asserting that the 
parent's due process complaint was insufficient, where appropriate.
    (f) Other party response to a due process complaint. Except as 
provided in paragraph (e) of this section, the party receiving a due 
process complaint must, within 10 days of receiving the due process 
complaint, send to the other party a response that specifically 
addresses the issues raised in the due process complaint.

(Authority: 20 U.S.C. 1415(b)(7), 1415(c)(2), 1439)

Sec. 303.442  Resolution process.

    (a) Resolution meeting. (1) Within 15 days of receiving notice of 
the parent's due process complaint, and prior to the initiation of a due 
process hearing under Sec. 303.443, the lead agency must convene a 
meeting with the parent and the relevant member or members of the IFSP 
Team who have specific knowledge of the facts identified in the due 
process complaint that--
    (i) Includes a representative of the lead agency who has decision-
making authority on behalf of that agency; and
    (ii) May not include an attorney of the lead agency unless the 
parent is accompanied by an attorney.
    (2) The purpose of the resolution meeting is for the parent of the 
child to discuss the due process complaint, and the facts that form the 
basis of the due process complaint, so that the lead agency has the 
opportunity to resolve the dispute that is the basis for the due process 
complaint.
    (3) The meeting described in paragraphs (a)(1) and (a)(2) of this 
section need not be held if--
    (i) The parent and lead agency agree in writing to waive the 
meeting; or
    (ii) The parent and lead agency agree to use the mediation process 
described in Sec. 303.431.
    (4) The parent and the lead agency must determine the relevant 
members of the IFSP Team to attend the meeting.
    (b) Resolution period. (1) If the lead agency has not resolved the 
due process complaint to the satisfaction of the parties within 30 days 
of the receipt of the due process complaint, the due process hearing may 
occur.
    (2) Except as provided in paragraph (c) of this section, the 
timeline for

[[Page 215]]

issuing a final decision under Sec. 303.447 begins at the expiration of 
the 30-day period in paragraph (b)(1) of this section.
    (3) Except where the parties have jointly agreed to waive the 
resolution process or to use mediation, notwithstanding paragraphs 
(b)(1) and (b)(2) of this section, the failure of the parent filing a 
due process complaint to participate in the resolution meeting will 
delay the timelines for the resolution process and due process hearing 
until the meeting is held.
    (4) If the lead agency is unable to obtain the participation of the 
parent in the resolution meeting after reasonable efforts have been 
made, including documenting its efforts, the lead agency may, at the 
conclusion of the 30-day period, request that the hearing officer 
dismiss the parent's due process complaint.
    (5) If the lead agency fails to hold the resolution meeting 
specified in paragraph (a) of this section within 15 days of receiving 
notice of a parent's due process complaint or fails to participate in 
the resolution meeting, the parent may seek the intervention of a 
hearing officer to begin the due process hearing timeline.
    (c) Adjustments to 30-day resolution period. The 30- or 45-day 
timeline adopted by the lead agency under Sec. 303.440(c) for the due 
process hearing described in Sec. 303.447(a) starts the day after one 
of the following events:
    (1) Both parties agree in writing to waive the resolution meeting.
    (2) After either the mediation or resolution meeting starts but 
before the end of the 30-day period, the parties agree in writing that 
no agreement is possible.
    (3) If both parties agree in writing to continue the mediation at 
the end of the 30-day resolution period, but later, the parent or lead 
agency withdraws from the mediation process.
    (d) Written settlement agreement. If a resolution to the dispute is 
reached at the meeting described in paragraphs (a)(1) and (a)(2) of this 
section, the parties must execute a legally binding agreement that is--
    (1) Signed by both the parent and a representative of the lead 
agency who has the authority to bind the agency; and
    (2) Enforceable in any State court of competent jurisdiction or in a 
district court of the United States, or, by the lead agency, if the 
State has other mechanisms or procedures that permit parties to seek 
enforcement of resolution agreements pursuant to this section.
    (e) Agreement review period. If the parties execute an agreement 
pursuant to paragraph (d) of this section, a party may void the 
agreement within three business days of the agreement's execution.

(Authority: 20 U.S.C. 1415(f)(1)(B), 1439)

Sec. 303.443  Impartial due process hearing.

    (a) General. Whenever a due process complaint is received consistent 
with Sec. 303.440, the parents or the EIS provider involved in the 
dispute must have an opportunity for an impartial due process hearing, 
consistent with the procedures in Sec. Sec. 303.440 through 303.442.
    (b) Agency responsible for conducting the due process hearing. The 
hearing described in paragraph (a) of this section must be conducted by 
the lead agency directly responsible for the early intervention services 
of the infant or toddler, as determined under State statute, State 
regulation, or a written policy of the lead agency.
    (c) Impartial hearing officer. (1) At a minimum, a hearing officer--
    (i) Must not be--
    (A) An employee of the lead agency or the EIS provider that is 
involved in the early intervention services or care of the infant or 
toddler; or
    (B) A person having a personal or professional interest that 
conflicts with the person's objectivity in the hearing;
    (ii) Must possess knowledge of, and the ability to understand, the 
provisions of the Act, Federal and State regulations pertaining to the 
Act, and legal interpretations of the Act by Federal and State courts;
    (iii) Must possess the knowledge and ability to conduct hearings in 
accordance with appropriate, standard legal practice; and
    (iv) Must possess the knowledge and ability to render and write 
decisions in

[[Page 216]]

accordance with appropriate, standard legal practice.
    (2) A person who otherwise qualifies to conduct a hearing under 
paragraph (c)(1) of this section is not an employee of the agency solely 
because he or she is paid by the agency to serve as a hearing officer.
    (3) Each lead agency must keep a list of the persons who serve as 
hearing officers. The list must include a statement of the 
qualifications of each of those persons.
    (d) Subject matter of due process hearings. The party requesting the 
due process hearing may not raise issues at the due process hearing that 
were not raised in the due process complaint filed under Sec. 
303.441(b), unless the other party agrees otherwise.
    (e) Timeline for requesting a hearing. A parent, lead agency, or EIS 
provider must request an impartial hearing on their due process 
complaint within two years of the date the parent, lead agency, or EIS 
provider knew or should have known about the alleged action that forms 
the basis of the due process complaint, or if the State has an explicit 
time limitation for requesting such a due process hearing under this 
part, in the time allowed by that State law.
    (f) Exceptions to the timeline. The timeline described in paragraph 
(e) of this section does not apply to a parent if the parent was 
prevented from filing a due process complaint due to--
    (1) Specific misrepresentations by the lead agency or EIS provider 
that it had resolved the problem forming the basis of the due process 
complaint; or
    (2) The lead agency's or EIS provider's failure to provide the 
parent information that was required under this part to be provided to 
the parent.

(Approved by Office of Management and Budget under control number 1820-
NEW)

(Authority: 20 U.S.C. 1415(f)(1)(A), 1415(f)(3)(A)-(D), 1439)

Sec. 303.444  Hearing rights.

    (a) General. Any party to a hearing conducted pursuant to Sec. Sec. 
303.440 through 303.445, or an appeal conducted pursuant to Sec. 
303.446, has the right to--
    (1) Be accompanied and advised by counsel and by individuals with 
special knowledge or training with respect to the problems of infants or 
toddlers with disabilities;
    (2) Present evidence and confront, cross-examine, and compel the 
attendance of witnesses;
    (3) Prohibit the introduction of any evidence at the hearing that 
has not been disclosed to that party at least five business days before 
the hearing;
    (4) Obtain a written or, at the option of the parents, electronic, 
verbatim record of the hearing; and
    (5) Obtain written or, at the option of the parents, electronic 
findings of fact and decisions.
    (b) Additional disclosure of information. (1) At least five business 
days prior to a hearing conducted pursuant to Sec. 303.443(a), each 
party must disclose to all other parties all evaluations completed by 
that date and recommendations based on the offering party's evaluations 
that the party intends to use at the hearing.
    (2) A hearing officer may bar any party that fails to comply with 
paragraph (b)(1) of this section from introducing the relevant 
evaluation or recommendation at the hearing without the consent of the 
other party.
    (c) Parental rights at hearings. Parents involved in hearings must--
    (1) Be given the right to open the hearing to the public; and
    (2) Receive a copy of the record of the hearing and the findings of 
fact and decisions described in paragraphs (a)(4) and (a)(5) of this 
section at no cost.

(Authority: 20 U.S.C. 1415(f)(2), 1415(h), 1439)

Sec. 303.445  Hearing decisions.

    (a) Decision of hearing officer. (1) Subject to paragraph (a)(2) of 
this section, a hearing officer's determination of whether an infant or 
toddler was appropriately identified, evaluated, or placed, or whether 
the infant or toddler with a disability and his or her family were 
appropriately provided early intervention services under part C of the 
Act, must be based on substantive grounds.
    (2) In matters alleging a procedural violation, a hearing officer 
may find that a child was not appropriately identified, evaluated, 
placed, or provided early intervention services under part C of the Act 
only if the procedural inadequacies--

[[Page 217]]

    (i) Impeded the child's right to identification, evaluation, and 
placement or provision of early intervention services for the child and 
that child's family under part C of the Act;
    (ii) Significantly impeded the parent's opportunity to participate 
in the decision-making process regarding identification, evaluation, 
placement or provision of early intervention services for the child and 
that child's family under part C of the Act; or
    (iii) Caused a deprivation of educational or developmental benefit.
    (3) Nothing in paragraph (a) of this section precludes a hearing 
officer from ordering the lead agency or EIS provider to comply with 
procedural requirements under Sec. Sec. 303.400 through 303.449.
    (b) Construction clause. Nothing in Sec. Sec. 303.440 through 
303.445 affects the right of a parent to file an appeal of the due 
process hearing decision with the lead agency under Sec. 303.446(b), if 
the lead agency level appeal is available.
    (c) Separate due process complaint. Nothing in Sec. Sec. 303.440 
through 303.449 precludes a parent from filing a separate due process 
complaint on an issue separate from a due process complaint already 
filed.
    (d) Findings and decisions to general public. The lead agency, after 
deleting any personally identifiable information, must make the findings 
and decisions available to the public.

(Authority: 20 U.S.C. 1415(f)(3)(E)-(F), 1415(h)(4), 1415(o), 1439)

Sec. 303.446  Finality of decision; appeal; impartial review.

    (a) Finality of hearing decision. A decision made in a hearing 
conducted pursuant to Sec. Sec. 303.440 through 303.445 is final, 
except that any party involved in the hearing may appeal the decision 
under the provisions of paragraph (b) of this section and Sec. 303.448.
    (b) Appeal of decisions; impartial review. (1) The lead agency may 
provide for procedures to allow any party aggrieved by the findings and 
decision in the hearing to appeal to the lead agency.
    (2) If there is an appeal, the lead agency must conduct an impartial 
review of the findings and decision appealed. The official conducting 
the review must--
    (i) Examine the entire hearing record;
    (ii) Ensure that the procedures at the hearing were consistent with 
the requirements of due process;
    (iii) Seek additional evidence if necessary. If a hearing is held to 
receive additional evidence, the rights in Sec. 303.444 apply;
    (iv) Afford the parties an opportunity for oral or written argument, 
or both, at the discretion of the reviewing official;
    (v) Make an independent decision on completion of the review; and
    (vi) Give a copy of the written or, at the option of the parents, 
electronic findings of fact and decisions to the parties.
    (c) Findings of fact and decision to the general public. The lead 
agency, after deleting any personally identifiable information, must 
make the findings of fact and decisions described in paragraph 
(b)(2)(vi) of this section available to the general public.
    (d) Finality of review decision. The decision made by the reviewing 
official is final unless a party brings a civil action under Sec. 
303.448.

(Authority: 20 U.S.C. 1415(g), 1415(h)(4), 1415(i)(1)(A), 1415(i)(2), 
1439)

Sec. 303.447  Timelines and convenience of hearings and reviews.

    (a) The lead agency must ensure that not later than either 30 days 
or 45 days (consistent with the lead agency's written policies and 
procedures adopted under Sec. 303.440(c)) after the expiration of the 
30-day period in Sec. 303.442(b), or the adjusted 30-day time periods 
described in Sec. 303.442(c))--
    (1) A final decision is reached in the hearing; and
    (2) A copy of the decision is mailed to each of the parties.
    (b) The lead agency must ensure that not later than 30 days after 
the receipt of a request for a review--
    (1) A final decision is reached in the review; and
    (2) A copy of the decision is mailed to each of the parties.
    (c) A hearing or reviewing officer may grant specific extensions of 
time

[[Page 218]]

beyond the periods set out in paragraphs (a) and (b) of this section at 
the request of either party.
    (d) Each hearing and each review involving oral arguments must be 
conducted at a time and place that is reasonably convenient to the 
parents and child involved.

(Authority: 20 U.S.C. 1415(f)(1)(B)(ii), 1415(g), 1415(i)(1), 1439)

Sec. 303.448  Civil action.

    (a) General. Any party aggrieved by the findings and decision made 
under Sec. Sec. 303.440 through 303.445 who does not have the right to 
an appeal under Sec. 303.446(b), and any party aggrieved by the 
findings and decision under Sec. 303.446(b), has the right to bring a 
civil action with respect to the due process complaint under Sec. 
303.440. The action may be brought in any State court of competent 
jurisdiction or in a district court of the United States without regard 
to the amount in controversy.
    (b) Time limitation. The party bringing the action has 90 days from 
the date of the decision of the hearing officer or, if applicable, the 
decision of the State review official, to file a civil action, or, if 
the State has an explicit time limitation for bringing civil actions 
under part C of the Act, in the time allowed by that State law.
    (c) Additional requirements. In any action brought under paragraph 
(a) of this section, the court--
    (1) Receives the records of the administrative proceedings;
    (2) Hears additional evidence at the request of a party; and
    (3) Basing its decision on the preponderance of the evidence, grants 
the relief that the court determines to be appropriate.
    (d) Jurisdiction of district courts. The district courts of the 
United States have jurisdiction of actions brought under section 615 of 
the Act without regard to the amount in controversy.
    (e) Rule of construction. Nothing in this part restricts or limits 
the rights, procedures, and remedies available under the Constitution, 
the Americans with Disabilities Act of 1990, title V of the 
Rehabilitation Act of 1973, or other Federal laws protecting the rights 
of children with disabilities, except that before the filing of a civil 
action under these laws seeking relief that is also available under 
section 615 of the Act, the procedures under Sec. Sec. 303.440 and 
303.446 must be exhausted to the same extent as would be required had 
the action been brought under section 615 of the Act.

(Authority: 20 U.S.C. 1415(i)(2), 1415(i)(3)(A), 1415(l), 1439)

Sec. 303.449  State enforcement mechanisms.

    Notwithstanding Sec. Sec. 303.431(b)(6) and 303.442(d)(2), which 
provide for judicial enforcement of a written agreement reached as a 
result of a mediation or a resolution meeting, there is nothing in this 
part that would prevent the State from using other mechanisms to seek 
enforcement of that agreement, provided that use of those mechanisms is 
not mandatory and does not delay or deny a party the right to seek 
enforcement of the written agreement in a State court or competent 
jurisdiction or in a district court of the United States.

(Authority: 20 U.S.C. 1415(e)(2)(F), 1415(f)(1)(B), 1439)

             Subpart F_Use of Funds and Payor of Last Resort

                                 General

Sec. 303.500  Use of funds, payor of last resort, and system of 
          payments.

    (a) Statewide system. Each statewide system must include written 
policies and procedures that meet the requirements of the--
    (1) Use of funds provisions in Sec. 303.501; and
    (2) Payor of last resort provisions in Sec. Sec. 303.510 through 
303.521 (regarding the identification and coordination of funding 
resources for, and the provision of, early intervention services under 
part C of the Act within the State).
    (b) System of Payments. A State may establish, consistent with 
Sec. Sec. 303.13(a)(3) and 303.203(b), a system of payments for early 
intervention services under part C of the Act, including a schedule of 
sliding fees or cost participation fees (such as co-payments, premiums, 
or

[[Page 219]]

deductibles) required to be paid under Federal, State, local, or private 
programs of insurance or benefits for which the infant or toddler with a 
disability or the child's family is enrolled, that meets the 
requirements of Sec. Sec. 303.520 and 303.521.

(Authority: 20 U.S.C. 1432(4)(B), 1435(a)(10)-(12), 1437(b), 1438, 
1439(a), 1440)

                              Use of Funds

Sec. 303.501  Permissive use of funds by the lead agency.

    Consistent with Sec. Sec. 303.120 through 303.122 and Sec. Sec. 
303.220 through 303.226, a lead agency may use funds under this part for 
activities or expenses that are reasonable and necessary for 
implementing the State's early intervention program for infants and 
toddlers with disabilities including funds--
    (a) For direct early intervention services for infants and toddlers 
with disabilities and their families under this part that are not 
otherwise funded through other public or private sources (subject to 
Sec. Sec. 303.510 through 303.521);
    (b) To expand and improve services for infants and toddlers with 
disabilities and their families under this part that are otherwise 
available;
    (c)(1) To provide FAPE as that term is defined in Sec. 303.15, in 
accordance with part B of the Act, to children with disabilities from 
their third birthday to the beginning of the following school year;
    (2) The provision of FAPE under paragraph (c)(1) of this section 
does not apply to children who continue to receive early intervention 
services under this part in accordance with paragraph (d) of this 
section and Sec. 303.211;
    (d) With the written consent of the parents, to continue to provide 
early intervention services under this part, in lieu of FAPE provided in 
accordance with part B of the Act, to children with disabilities from 
their third birthday (pursuant to Sec. 303.211) until those children 
enter, or are eligible under State law to enter, kindergarten; and
    (e) In any State that does not provide services under Sec. 303.204 
for at-risk infants and toddlers, as defined in Sec. 303.5, to 
strengthen the statewide system by initiating, expanding, or improving 
collaborative efforts related to at-risk infants and toddlers, including 
establishing linkages with appropriate public and private community-
based organizations, services, and personnel for the purposes of--
    (1) Identifying and evaluating at-risk infants and toddlers;
    (2) Making referrals for the infants and toddlers identified and 
evaluated under paragraph (e)(1) of this section; and
    (3) Conducting periodic follow-up on each referral, to determine if 
the status of the infant or toddler involved has changed with respect to 
the eligibility of the infant or toddler for services under this part.

(Authority: 20 U.S.C. 1435(a)(10)-(12), 1437(b), 1438)

                Payor of Last Resort--General Provisions

Sec. 303.510  Payor of last resort.

    (a) Nonsubstitution of funds. Except as provided in paragraph (b) of 
this section, funds under this part may not be used to satisfy a 
financial commitment for services that would otherwise have been paid 
for from another public or private source, including any medical program 
administered by the Department of Defense, but for the enactment of part 
C of the Act. Therefore, funds under this part may be used only for 
early intervention services that an infant or toddler with a disability 
needs but is not currently entitled to receive or have payment made from 
any other Federal, State, local, or private source (subject to 
Sec. Sec. 303.520 and 303.521).
    (b) Interim payments--reimbursement. If necessary to prevent a delay 
in the timely provision of appropriate early intervention services to a 
child or the child's family, funds under this part may be used to pay 
the provider of services (for services and functions authorized under 
this part, including health services, as defined in Sec. 303.16 (but 
not medical services), functions of the child find system described in 
Sec. Sec. 303.115 through 303.117 and Sec. Sec. 303.301 through 
303.320, and evaluations and assessments in Sec. 303.321), pending 
reimbursement from the agency or entity that has ultimate responsibility 
for the payment.

[[Page 220]]

    (c) Non-reduction of benefits. Nothing in this part may be construed 
to permit a State to reduce medical or other assistance available in the 
State or to alter eligibility under Title V of the Social Security Act, 
42 U.S.C. 701, et seq. (SSA) (relating to maternal and child health) or 
Title XIX of the SSA, 42 U.S.C. 1396 (relating to Medicaid), including 
section 1903(a) of the SSA regarding medical assistance for services 
furnished to an infant or toddler with a disability when those services 
are included in the child's IFSP adopted pursuant to part C of the Act.

(Authority: 20 U.S.C. 1435(a)(10)(B), 1437(a)(2), 1440(a), 1440(c))

Sec. 303.511  Methods to ensure the provision of, and financial 
          responsibility for, Part C services.

    (a) General. Each State must ensure that it has in place methods for 
State interagency coordination. Under these methods, the Chief Executive 
Officer of a State or designee of the Officer must ensure that the 
interagency agreement or other method for interagency coordination is in 
effect between each State public agency and the designated lead agency 
in order to ensure--
    (1) The provision of, and establishing financial responsibility for, 
early intervention services provided under this part; and
    (2) Such services are consistent with the requirement in section 635 
of the Act and the State's application under section 637 of the Act, 
including the provision of such services during the pendency of any 
dispute between State agencies.
    (b) The methods in paragraph (a) of this section must meet all 
requirements in this section and be set forth in one of the following:
    (1) State law or regulation;
    (2) Signed interagency and intra-agency agreements between 
respective agency officials that clearly identify the financial and 
service provision responsibilities of each agency (or entity within the 
agency); or
    (3) Other appropriate written methods determined by the Governor of 
the State, or the Governor's designee, and approved by the Secretary 
through the review and approval of the State's application.
    (c) Procedures for resolving disputes. (1) Each method must include 
procedures for achieving a timely resolution of intra-agency and 
interagency disputes about payments for a given service, or disputes 
about other matters related to the State's early intervention service 
program. Those procedures must include a mechanism for resolution of 
disputes within agencies and for the Governor, Governor's designee, or 
the lead agency to make a final determination for interagency disputes, 
which determination must be binding upon the agencies involved.
    (2) The method must--
    (i) Permit the agency to resolve its own internal disputes (based on 
the agency's procedures that are included in the agreement), so long as 
the agency acts in a timely manner; and
    (ii) Include the process that the lead agency will follow in 
achieving resolution of intra-agency disputes, if a given agency is 
unable to resolve its own internal disputes in a timely manner.
    (3) If, during the lead agency's resolution of the dispute, the 
Governor, Governor's designee, or lead agency determines that the 
assignment of financial responsibility under this section was 
inappropriately made--
    (i) The Governor, Governor's designee, or lead agency must reassign 
the financial responsibility to the appropriate agency; and
    (ii) The lead agency must make arrangements for reimbursement of any 
expenditures incurred by the agency originally assigned financial 
responsibility.
    (d) Delivery of services in a timely manner. The methods adopted by 
the State under this section must--
    (1) Include a mechanism to ensure that no services that a child is 
entitled to receive under this part are delayed or denied because of 
disputes between agencies regarding financial or other responsibilities; 
and
    (2) Be consistent with the written funding policies adopted by the 
State under this subpart and include any provisions the State has 
adopted under Sec. 303.520 regarding the use of insurance to pay for 
part C services.

[[Page 221]]

    (e) Additional components. Each method must include any additional 
components necessary to ensure effective cooperation and coordination 
among, and the lead agency's general supervision (including monitoring) 
of, EIS providers (including all public agencies) involved in the 
State's early intervention service programs.

(Authority: 20 U.S.C. 1435(a)(10), 1437(a)(2), 1440(b))

Payor of Last Resort & System of Payments Provisions--Use of Insurance, 
                 Benefits, Systems of Payments, and Fees

Sec. 303.520  Policies related to use of public benefits or insurance 
          or private insurance to pay for Part C services.

    (a) Use of public benefits or public insurance to pay for Part C 
services.
    (1) A State may not use the public benefits or insurance of a child 
or parent to pay for part C services unless the State provides written 
notification, consistent with Sec. 303.520(a)(3), to the child's 
parents, and the State meets the no-cost protections identified in 
paragraph (a)(2) of this section.
    (2) With regard to using the public benefits or insurance of a child 
or parent to pay for part C services, the State--
    (i) May not require a parent to sign up for or enroll in public 
benefits or insurance programs as a condition of receiving part C 
services and must obtain consent prior to using the public benefits or 
insurance of a child or parent if that child or parent is not already 
enrolled in such a program;
    (ii) Must obtain consent, consistent with Sec. Sec. 303.7 and 
303.420(a)(4), to use a child's or parent's public benefits or insurance 
to pay for part C services if that use would--
    (A) Decrease available lifetime coverage or any other insured 
benefit for that child or parent under that program;
    (B) Result in the child's parents paying for services that would 
otherwise be covered by the public benefits or insurance program;
    (C) Result in any increase in premiums or discontinuation of public 
benefits or insurance for that child or that child's parents; or
    (D) Risk loss of eligibility for the child or that child's parents 
for home and community-based waivers based on aggregate health-related 
expenditures.
    (iii) If the parent does not provide consent under paragraphs 
(a)(2)(i) or (a)(2)(ii) of this section, the State must still make 
available those part C services on the IFSP to which the parent has 
provided consent.
    (3) Prior to using a child's or parent's public benefits or 
insurance to pay for part C services, the State must provide written 
notification to the child's parents. The notification must include--
    (i) A statement that parental consent must be obtained under Sec. 
303.414, if that provision applies, before the State lead agency or EIS 
provider discloses, for billing purposes, a child's personally 
identifiable information to the State public agency responsible for the 
administration of the State's public benefits or insurance program 
(e.g., Medicaid);
    (ii) A statement of the no-cost protection provisions in Sec. 
303.520(a)(2) and that if the parent does not provide the consent under 
Sec. 303.520(a)(2), the State lead agency must still make available 
those part C services on the IFSP for which the parent has provided 
consent;
    (iii) A statement that the parents have the right under Sec. 
303.414, if that provision applies, to withdraw their consent to 
disclosure of personally identifiable information to the State public 
agency responsible for the administration of the State's public benefits 
or insurance program (e.g., Medicaid) at any time; and
    (iv) A statement of the general categories of costs that the parent 
would incur as a result of participating in a public benefits or 
insurance program (such as co-payments or deductibles, or the required 
use of private insurance as the primary insurance).
    (4) If a State requires a parent to pay any costs that the parent 
would incur as a result of the State's using a child's or parent's 
public benefits or insurance to pay for part C services (such as co-
payments or deductibles, or the required use of private insurance as the 
primary insurance), those costs must be identified in the State's system 
of

[[Page 222]]

payments policies under Sec. 303.521 and included in the notification 
provided to the parent under paragraph (a)(3) of this section; 
otherwise, the State cannot charge those costs to the parent.
    (b) Use of private insurance to pay for Part C services. (1)(i) The 
State may not use the private insurance of a parent of an infant or 
toddler with a disability to pay for part C services unless the parent 
provides parental consent, consistent with Sec. Sec. 303.7 and 
303.420(a)(4), to use private insurance to pay for part C services for 
his or her child or the State meets one of the exceptions in paragraph 
(b)(2) of this section. This includes the use of private insurance when 
such use is a prerequisite for the use of public benefits or insurance. 
Parental consent must be obtained--
    (A) When the lead agency or EIS provider seeks to use the parent's 
private insurance or benefits to pay for the initial provision of an 
early intervention service in the IFSP; and
    (B) Each time consent for services is required under Sec. 
303.420(a)(3) due to an increase (in frequency, length, duration, or 
intensity) in the provision of services in the child's IFSP.
    (ii) If a State requires a parent to pay any costs that the parent 
would incur as a result of the State's use of private insurance to pay 
for early intervention services (such as co-payments, premiums, or 
deductibles), those costs must be identified in the State's system of 
payments policies under Sec. 303.521; otherwise, the State may not 
charge those costs to the parent.
    (iii) When obtaining parental consent required under paragraph 
(b)(1)(i) of this section or initially using benefits under a child or 
parent's private insurance policy to pay for an early intervention 
service under paragraph (b)(2) of this section, the State must provide 
to the parent a copy of the State's system of payments policies that 
identifies the potential costs that the parent may incur when their 
private insurance is used to pay for early intervention services under 
this part (such as co-payments, premiums, or deductibles or other long-
term costs such as the loss of benefits because of annual or lifetime 
health insurance coverage caps under the insurance policy).
    (2) The parental consent requirements in paragraph (b)(1) of this 
section do not apply if the State has enacted a State statute regarding 
private health insurance coverage for early intervention services under 
part C of the Act, that expressly provides that--
    (i) The use of private health insurance to pay for part C services 
cannot count towards or result in a loss of benefits due to the annual 
or lifetime health insurance coverage caps for the infant or toddler 
with a disability, the parent, or the child's family members who are 
covered under that health insurance policy;
    (ii) The use of private health insurance to pay for part C services 
cannot negatively affect the availability of health insurance to the 
infant or toddler with a disability, the parent, or the child's family 
members who are covered under that health insurance policy, and health 
insurance coverage may not be discontinued for these individuals due to 
the use of the health insurance to pay for services under part C of the 
Act; and
    (iii) The use of private health insurance to pay for part C services 
cannot be the basis for increasing the health insurance premiums of the 
infant or toddler with a disability, the parent, or the child's family 
members covered under that health insurance policy.
    (3) If a State has enacted a State statute that meets the 
requirements in paragraph (b)(2) of this section, regarding the use of 
private health insurance coverage to pay for early intervention services 
under part C of the Act, the State may reestablish a new baseline of 
State and local expenditures under Sec. 303.225(b) in the next Federal 
fiscal year following the effective date of the statute.
    (c) Inability to pay. If a parent or family of an infant or toddler 
with a disability is determined unable to pay under the State's 
definition of inability to pay under Sec. 303.521(a)(3) and does not 
provide consent under paragraph (b)(1), the lack of consent may not be 
used to delay or deny any services under this part to that child or 
family.
    (d) Proceeds or funds from public insurance or benefits or from 
private insurance.

[[Page 223]]

(1) Proceeds or funds from public insurance or benefits or from private 
insurance are not treated as program income for purposes of 34 CFR 
80.25.
    (2) If the State receives reimbursements from Federal funds (e.g., 
Medicaid reimbursements attributable directly to Federal funds) for 
services under part C of the Act, those funds are considered neither 
State nor local funds under Sec. 303.225(b).
    (3) If the State spends funds from private insurance for services 
under this part, those funds are considered neither State nor local 
funds under Sec. 303.225.
    (e) Funds received from a parent or family member under a State's 
system of payments. Funds received by the State from a parent or family 
member under the State's system of payments established under Sec. 
303.521 are considered program income under 34 CFR 80.25. These funds--
    (1) Are not deducted from the total allowable costs charged under 
part C of the Act (as set forth in 34 CFR 80.25(g)(1));
    (2) Must be used for the State's part C early intervention services 
program, consistent with 34 CFR 80.25(g)(2); and
    (3) Are considered neither State nor local funds under Sec. 
303.225(b).

(Authority: 20 U.S.C. 1432(4)(B), 1435(a)(10), 1439(a))

Sec. 303.521  System of payments and fees.

    (a) General. If a State elects to adopt a system of payments in 
Sec. 303.500(b), the State's system of payments policies must be in 
writing and specify which functions or services, if any, are subject to 
the system of payments (including any fees charged to the family as a 
result of using one or more of the family's public insurance or benefits 
or private insurance), and include--
    (1) The payment system and schedule of sliding or cost participation 
fees that may be charged to the parent for early intervention services 
under this part;
    (2) The basis and amount of payments or fees;
    (3) The State's definition of ability to pay (including its 
definition of income and family expenses, such as extraordinary medical 
expenses), its definition of inability to pay, and when and how the 
State makes its determination of the ability or inability to pay;
    (4) An assurance that--
    (i) Fees will not be charged to parents for the services that a 
child is otherwise entitled to receive at no cost (including those 
services identified under paragraphs (a)(4)(ii), (b), and (c) of this 
section);
    (ii) The inability of the parents of an infant or toddler with a 
disability to pay for services will not result in a delay or denial of 
services under this part to the child or the child's family such that, 
if the parent or family meets the State's definition of inability to 
pay, the infant or toddler with a disability must be provided all part C 
services at no cost.
    (iii) Families will not be charged any more than the actual cost of 
the part C service (factoring in any amount received from other sources 
for payment for that service); and
    (iv) Families with public insurance or benefits or private insurance 
will not be charged disproportionately more than families who do not 
have public insurance or benefits or private insurance;
    (5) Provisions stating that the failure to provide the requisite 
income information and documentation may result in a charge of a fee on 
the fee schedule and specify the fee to be charged; and
    (6) Provisions that permit, but do not require, the lead agency to 
use part C or other funds to pay for costs such as the premiums, 
deductibles, or co-payments.
    (b) Functions not subject to fees. The following are required 
functions that must be carried out at public expense, and for which no 
fees may be charged to parents:
    (1) Implementing the child find requirements in Sec. Sec. 303.301 
through 303.303.
    (2) Evaluation and assessment, in accordance with Sec. 303.320, and 
the functions related to evaluation and assessment in Sec. 303.13(b).
    (3) Service coordination services, as defined in Sec. Sec. 
303.13(b)(11) and 303.33.
    (4) Administrative and coordinative activities related to--
    (i) The development, review, and evaluation of IFSPs and interim 
IFSPs in accordance with Sec. Sec. 303.342 through 303.345; and

[[Page 224]]

    (ii) Implementation of the procedural safeguards in subpart E of 
this part and the other components of the statewide system of early 
intervention services in subpart D of this part and this subpart.
    (c) States with FAPE mandates, or that use funds under Part B of the 
Act to serve children under age three. If a State has in effect a State 
law requiring the provision of FAPE for, or uses part B funds to serve, 
an infant or toddler with a disability under the age of three (or any 
subset of infants and toddlers with disabilities under the age of 
three), the State may not charge the parents of the infant or toddler 
with a disability for any services (e.g., physical or occupational 
therapy) under this part that are part of FAPE for that infant or 
toddler and the child's family, and those FAPE services must meet the 
requirements of both parts B and C of the Act.
    (d) Family fees. (1) Fees or costs collected from a parent or the 
child's family to pay for early intervention services under a State's 
system of payments are program income under 34 CFR 80.25. A State may 
add this program income to its part C grant funds, rather than deducting 
the program income from the amount of the State's part C grant. Any fees 
collected must be used for the purposes of the grant under part C of the 
Act.
    (2) Fees collected under a system of payments are considered neither 
State nor local funds under Sec. 303.225(b).
    (e) Procedural Safeguards. (1) Each State system of payments must 
include written policies to inform parents that a parent who wishes to 
contest the imposition of a fee, or the State's determination of the 
parent's ability to pay, may do one of the following:
    (i) Participate in mediation in accordance with Sec. 303.431.
    (ii) Request a due process hearing under Sec. 303.436 or 303.441, 
whichever is applicable.
    (iii) File a State complaint under Sec. 303.434.
    (iv) Use any other procedure established by the State for speedy 
resolution of financial claims, provided that such use does not delay or 
deny the parent's procedural rights under this part, including the right 
to pursue, in a timely manner, the redress options described in 
paragraphs (e)(2)(i) through (e)(2)(iii) of this section.
    (2) A State must inform parents of these procedural safeguard 
options by either--
    (i) Providing parents with a copy of the State's system of payments 
policies when obtaining consent for provision of early intervention 
services under Sec. 303.420(a)(3); or
    (ii) Including this information with the notice provided to parents 
under Sec. 303.421.

(Authority: 20 U.S.C. 1432(4)(B), 1439(a), 1440)

            Subpart G_State Interagency Coordinating Council

Sec. 303.600  Establishment of Council.

    (a) A State that desires to receive financial assistance under part 
C of the Act must establish a State Interagency Coordinating Council 
(Council) as defined in Sec. 303.8.
    (b) The Council must be appointed by the Governor. The Governor must 
ensure that the membership of the Council reasonably represents the 
population of the State.
    (c) The Governor must designate a member of the Council to serve as 
the chairperson of the Council or require the Council to do so. Any 
member of the Council who is a representative of the lead agency 
designated under Sec. 303.201 may not serve as the chairperson of the 
Council.

(Authority: 20 U.S.C. 1441(a))

Sec. 303.601  Composition.

    (a) The Council must be composed as follows:
    (1)(i) At least 20 percent of the members must be parents, including 
minority parents, of infants or toddlers with disabilities or children 
with disabilities aged 12 years or younger, with knowledge of, or 
experience with, programs for infants and toddlers with disabilities.
    (ii) At least one parent member must be a parent of an infant or 
toddler with a disability or a child with a disability aged six years or 
younger.
    (2) At least 20 percent of the members must be public or private 
providers of early intervention services.

[[Page 225]]

    (3) At least one member must be from the State legislature.
    (4) At least one member must be involved in personnel preparation.
    (5) At least one member must--
    (i) Be from each of the State agencies involved in the provision of, 
or payment for, early intervention services to infants and toddlers with 
disabilities and their families; and
    (ii) Have sufficient authority to engage in policy planning and 
implementation on behalf of these agencies.
    (6) At least one member must--
    (i) Be from the SEA responsible for preschool services to children 
with disabilities; and
    (ii) Have sufficient authority to engage in policy planning and 
implementation on behalf of the SEA.
    (7) At least one member must be from the agency responsible for the 
State Medicaid and CHIP program.
    (8) At least one member must be from a Head Start or Early Head 
Start agency or program in the State.
    (9) At least one member must be from a State agency responsible for 
child care.
    (10) At least one member must be from the agency responsible for the 
State regulation of private health insurance.
    (11) At least one member must be a representative designated by the 
Office of the Coordination of Education of Homeless Children and Youth.
    (12) At least one member must be a representative from the State 
child welfare agency responsible for foster care.
    (13) At least one member must be from the State agency responsible 
for children's mental health.
    (b) The Governor may appoint one member to represent more than one 
program or agency listed in paragraphs (a)(7) through (a)(13) of this 
section.
    (c) The Council may include other members selected by the Governor, 
including a representative from the Bureau of Indian Education (BIE) or, 
where there is no school operated or funded by the BIE in the State, 
from the Indian Health Service or the tribe or tribal council.
    (d) No member of the Council may cast a vote on any matter that 
would provide direct financial benefit to that member or otherwise give 
the appearance of a conflict of interest under State law.

(Authority: 20 U.S.C. 1231d, 1441(b), 1441(f))

Sec. 303.602  Meetings.

    (a) The Council must meet, at a minimum, on a quarterly basis, and 
in such places as it determines necessary.
    (b) The meetings must--
    (1) Be publicly announced sufficiently in advance of the dates they 
are to be held to ensure that all interested parties have an opportunity 
to attend;
    (2) To the extent appropriate, be open and accessible to the general 
public; and
    (3) As needed, provide for interpreters for persons who are deaf and 
other necessary services for Council members and participants. The 
Council may use funds under this part to pay for those services.

(Authority: 20 U.S.C. 1441(c))

Sec. 303.603  Use of funds by the Council.

    (a) Subject to the approval by the Governor, the Council may use 
funds under this part to--
    (1) Conduct hearings and forums;
    (2) Reimburse members of the Council for reasonable and necessary 
expenses for attending Council meetings and performing Council duties 
(including child care for parent representatives);
    (3) Pay compensation to a member of the Council if the member is not 
employed or must forfeit wages from other employment when performing 
official Council business;
    (4) Hire staff; and
    (5) Obtain the services of professional, technical, and clerical 
personnel as may be necessary to carry out the performance of its 
functions under part C of the Act.
    (b) Except as provided in paragraph (a) of this section, Council 
members must serve without compensation from funds available under part 
C of the Act.

(Authority: 20 U.S.C. 1441(d))

Sec. 303.604  Functions of the Council--required duties.

    (a) Advising and assisting the lead agency. The Council must advise 
and

[[Page 226]]

assist the lead agency in the performance of its responsibilities in 
section 635(a)(10) of the Act, including--
    (1) Identification of sources of fiscal and other support for 
services for early intervention service programs under part C of the 
Act;
    (2) Assignment of financial responsibility to the appropriate 
agency;
    (3) Promotion of methods (including use of intra-agency and 
interagency agreements) for intra-agency and interagency collaboration 
regarding child find under Sec. Sec. 303.115 and 303.302, monitoring 
under Sec. 303.120 and Sec. Sec. 303.700 through 303.708, financial 
responsibility and provision of early intervention services under 
Sec. Sec. 303.202 and 303.511, and transition under Sec. 303.209; and
    (4) Preparation of applications under this part and amendments to 
those applications.
    (b) Advising and assisting on transition. The Council must advise 
and assist the SEA and the lead agency regarding the transition of 
toddlers with disabilities to preschool and other appropriate services.
    (c) Annual report to the Governor and to the Secretary. (1) The 
Council must--
    (i) Prepare and submit an annual report to the Governor and to the 
Secretary on the status of early intervention service programs for 
infants and toddlers with disabilities and their families under part C 
of the Act operated within the State; and
    (ii) Submit the report to the Secretary by a date that the Secretary 
establishes.
    (2) Each annual report must contain the information required by the 
Secretary for the year for which the report is made.

(Authority: 20 U.S.C. 1441(e)(1))

Sec. 303.605  Authorized activities by the Council.

    The Council may carry out the following activities:
    (a) Advise and assist the lead agency and the SEA regarding the 
provision of appropriate services for children with disabilities from 
birth through age five.
    (b) Advise appropriate agencies in the State with respect to the 
integration of services for infants and toddlers with disabilities and 
at-risk infants and toddlers and their families, regardless of whether 
at-risk infants and toddlers are eligible for early intervention 
services in the State.
    (c) Coordinate and collaborate with the State Advisory Council on 
Early Childhood Education and Care for children, as described in section 
642B(b)(1)(A)(i) of the Head Start Act, 42 U.S.C. 9837b(b)(1)(A)(i), if 
applicable, and other State interagency early learning initiatives, as 
appropriate.

(Authority: 20 U.S.C. 1435(a)(10), 1441(e)(2))

   Subpart H_State Monitoring and Enforcement; Federal Monitoring and 
             Enforcement; Reporting; and Allocation of Funds

              Federal and State Monitoring and Enforcement

Sec. 303.700  State monitoring and enforcement.

    (a) The lead agency must--
    (1) Monitor the implementation of this part;
    (2) Make determinations annually about the performance of each EIS 
program using the categories identified in Sec. 303.703(b);
    (3) Enforce this part consistent with Sec. 303.704, using 
appropriate enforcement mechanisms, which must include, if applicable, 
the enforcement mechanisms identified in Sec. 303.704(a)(1) (technical 
assistance) and Sec. 303.704(a)(2) (imposing conditions on the lead 
agency's funding of an EIS program or, if the lead agency does not 
provide part C funds to the EIS program, an EIS provider), Sec. 
303.704(b)(2)(i) (corrective action or improvement plan) and Sec. 
303.704(b)(2)(iv) (withholding of funds, in whole or in part by the lead 
agency), and Sec. 303.704(c)(2) (withholding of funds, in whole or in 
part by the lead agency); and
    (4) Report annually on the performance of the State and of each EIS 
program under this part as provided in Sec. 303.702.
    (b) The primary focus of the State's monitoring activities must be 
on--
    (1) Improving early intervention results and functional outcomes for 
all

[[Page 227]]

infants and toddlers with disabilities; and
    (2) Ensuring that EIS programs meet the program requirements under 
part C of the Act, with a particular emphasis on those requirements that 
are most closely related to improving early intervention results for 
infants and toddlers with disabilities.
    (c) As a part of its responsibilities under paragraph (a) of this 
section, the State must use quantifiable indicators and such qualitative 
indicators as are needed to adequately measure performance in the 
priority areas identified in paragraph (d) of this section, and the 
indicators established by the Secretary for the State performance plans.
    (d) The lead agency must monitor each EIS program located in the 
State, using quantifiable indicators in each of the following priority 
areas, and using such qualitative indicators as are needed to adequately 
measure performance in those areas:
    (1) Early intervention services in natural environments.
    (2) State exercise of general supervision, including child find, 
effective monitoring, the use of resolution sessions (if the State 
adopts part B due process hearing procedures under Sec. 303.430(d)(2)), 
mediation, and a system of transition services as defined in section 
637(a)(9) of the Act.
    (e) In exercising its monitoring responsibilities under paragraph 
(d) of this section, the State must ensure that when it identifies 
noncompliance with the requirements of this part by EIS programs and 
providers, the noncompliance is corrected as soon as possible and in no 
case later than one year after the State's identification of the 
noncompliance.

(Approved by Office of Management and Budget under control number 1820-
0578)

(Authority: 20 U.S.C. 1416(a), 1442)

Sec. 303.701  State performance plans and data collection.

    (a) General. Each State must have in place a performance plan that 
meets the requirements described in section 616 of the Act; is approved 
by the Secretary; and includes an evaluation of the State's efforts to 
implement the requirements and purposes of part C of the Act, a 
description of how the State will improve implementation, and measurable 
and rigorous targets for the indicators established by the Secretary 
under the priority areas described in Sec. 303.700(d).
    (b) Review of State performance plan. Each State must review its 
State performance plan at least once every six years and submit any 
amendments to the Secretary.
    (c) Data collection. (1) Each State must collect valid and reliable 
information as needed to report annually to the Secretary under Sec. 
303.702(b)(2) on the indicators established by the Secretary for the 
State performance plans.
    (2) If the Secretary permits States to collect data on specific 
indicators through State monitoring or sampling, and the State collects 
data for a particular indicator through State monitoring or sampling, 
the State must collect and report data on those indicators for each EIS 
program at least once during the six-year period of a State performance 
plan.
    (3) Nothing in part C of the Act or these regulations may be 
construed to authorize the development of a nationwide database of 
personally identifiable information on individuals involved in studies 
or other collections of data under part C of the Act.

(Approved by Office of Management and Budget under control number 1820-
0578)

(Authority: 20 U.S.C. 1416(b), 1442)

Sec. 303.702  State use of targets and reporting.

    (a) General. Each State must use the targets established in the 
State's performance plan under Sec. 303.701 and the priority areas 
described in Sec. 303.700(d) to analyze the performance of each EIS 
program in implementing part C of the Act.
    (b) Public reporting and privacy. (1) Public report. (i) Subject to 
paragraph (b)(1)(ii) of this section, the State must--
    (A) Report annually to the public on the performance of each EIS 
program located in the State on the targets in the State's performance 
plan as soon as practicable but no later than 120 days following the 
State's submission of its annual performance report to the Secretary 
under paragraph (b)(2) of this section; and

[[Page 228]]

    (B) Make the State's performance plan under Sec. 303.701(a), annual 
performance reports under paragraph (b)(2) of this section, and the 
State's annual reports on the performance of each EIS program under 
paragraph (b)(1)(i)(A) of this section available through public means, 
including by posting on the Web site of the lead agency, distribution to 
the media, and distribution to EIS programs.
    (ii) If the State, in meeting the requirements of paragraph 
(b)(1)(i)(A) of this section, collects data through State monitoring or 
sampling, the State must include in its public report on EIS programs 
under paragraph (b)(1)(i)(A) of this section the most recently available 
performance data on each EIS program and the date the data were 
collected.
    (2) State performance report. The State must report annually to the 
Secretary on the performance of the State under the State's performance 
plan.
    (3) Privacy. The State must not report to the public or the 
Secretary any information on performance that would result in the 
disclosure of personally identifiable information about individual 
children, or where the available data are insufficient to yield 
statistically reliable information.

(Approved by Office of Management and Budget under control number 1820-
0578)

(Authority: 20 U.S.C. 1416(b)(2)(B)-(C), 1442)

Sec. 303.703  Secretary's review and determination regarding State 
          performance.

    (a) Review. The Secretary annually reviews the State's performance 
report submitted pursuant to Sec. 303.702(b)(2).
    (b) Determination. (1) General. Based on the information provided by 
the State in the State's annual performance report, information obtained 
through monitoring visits, and any other public information made 
available, the Secretary determines if the State--
    (i) Meets the requirements and purposes of part C of the Act;
    (ii) Needs assistance in implementing the requirements of part C of 
the Act;
    (iii) Needs intervention in implementing the requirements of part C 
of the Act; or
    (iv) Needs substantial intervention in implementing the requirements 
of part C of the Act.
    (2) Notice and opportunity for a hearing. (i) For determinations 
made under paragraphs (b)(1)(iii) and (b)(1)(iv) of this section, the 
Secretary provides reasonable notice and an opportunity for a hearing on 
those determinations.
    (ii) The hearing described in paragraph (b)(2)(i) of this section 
consists of an opportunity to meet with the Assistant Secretary for 
Special Education and Rehabilitative Services to demonstrate why the 
Secretary should not make the determination described in paragraph 
(b)(1)(iii) or (b)(1)(iv) of this section.

(Authority: 20 U.S.C. 1416(d), 1442)

Sec. 303.704  Enforcement.

    (a) Needs assistance. If the Secretary determines, for two 
consecutive years, that a State needs assistance under Sec. 
303.703(b)(1)(ii) in implementing the requirements of part C of the Act, 
the Secretary takes one or more of the following actions:
    (1) Advises the State of available sources of technical assistance 
that may help the State address the areas in which the State needs 
assistance, which may include assistance from the Office of Special 
Education Programs, other offices of the Department of Education, other 
Federal agencies, technical assistance providers approved by the 
Secretary, and other federally funded nonprofit agencies, and requires 
the State to work with appropriate entities. This technical assistance 
may include--
    (i) The provision of advice by experts to address the areas in which 
the State needs assistance, including explicit plans for addressing the 
areas of concern within a specified period of time;
    (ii) Assistance in identifying and implementing professional 
development, early intervention service provision strategies, and 
methods of early intervention service provision that are based on 
scientifically based research;
    (iii) Designating and using administrators, service coordinators, 
service providers, and other personnel from the EIS program to provide 
advice, technical assistance, and support; and

[[Page 229]]

    (iv) Devising additional approaches to providing technical 
assistance, such as collaborating with institutions of higher education, 
educational service agencies, national centers of technical assistance 
supported under part D of the Act, and private providers of 
scientifically based technical assistance.
    (2) Identifies the State as a high-risk grantee and imposes special 
conditions on the State's grant under part C of the Act.
    (b) Needs intervention. If the Secretary determines, for three or 
more consecutive years, that a State needs intervention under Sec. 
303.703(b)(1)(iii) in implementing the requirements of part C of the 
Act, the following apply:
    (1) The Secretary may take any of the actions described in paragraph 
(a) of this section.
    (2) The Secretary takes one or more of the following actions:
    (i) Requires the State to prepare a corrective action plan or 
improvement plan if the Secretary determines that the State should be 
able to correct the problem within one year.
    (ii) Requires the State to enter into a compliance agreement under 
section 457 of the General Education Provisions Act, as amended (GEPA), 
20 U.S.C. 1234f, if the Secretary has reason to believe that the State 
cannot correct the problem within one year.
    (iii) Seeks to recover funds under section 452 of GEPA, 20 U.S.C. 
1234a.
    (iv) Withholds, in whole or in part, any further payments to the 
State under part C of the Act.
    (v) Refers the matter for appropriate enforcement action, which may 
include referral to the Department of Justice.
    (c) Needs substantial intervention. Notwithstanding paragraph (a) or 
(b) of this section, at any time that the Secretary determines that a 
State needs substantial intervention in implementing the requirements of 
part C of the Act or that there is a substantial failure to comply with 
any requirement under part C of the Act by the lead agency or an EIS 
program in the State, the Secretary takes one or more of the following 
actions:
    (1) Recovers funds under section 452 of GEPA, 20 U.S.C. 1234a.
    (2) Withholds, in whole or in part, any further payments to the 
State under part C of the Act.
    (3) Refers the case to the Office of Inspector General of the 
Department of Education.
    (4) Refers the matter for appropriate enforcement action, which may 
include referral to the Department of Justice.
    (d) Report to Congress. The Secretary reports to the Committee on 
Education and Labor of the House of Representatives and the Committee on 
Health, Education, Labor, and Pensions of the Senate within 30 days of 
taking enforcement action pursuant to paragraph (a), (b), or (c) of this 
section, on the specific action taken and the reasons why enforcement 
action was taken.

(Authority: 20 U.S.C. 1416(e)(1)-(3), 1416(e)(5), 1442)

Sec. 303.705  Withholding funds.

    (a) Opportunity for hearing. Prior to withholding any funds under 
part C of the Act, the Secretary provides reasonable notice and an 
opportunity for a hearing to the lead agency involved, pursuant to the 
procedures in Sec. Sec. 303.231 through 303.236.
    (b) Suspension. Pending the outcome of any hearing to withhold 
payments under paragraph (a) of this section, the Secretary may suspend 
payments to a recipient, suspend the authority of the recipient to 
obligate funds under part C of the Act, or both, after the recipient has 
been given reasonable notice and an opportunity to show cause why future 
payments or authority to obligate funds under part C of the Act should 
not be suspended.
    (c) Nature of withholding. (1) Limitation. If the Secretary 
determines that it is appropriate to withhold further payments under 
section 616(e)(2) or (e)(3) of the Act, the Secretary may determine--
    (i) That such withholding will be limited to programs or projects, 
or portions of programs or projects, that affected the Secretary's 
determination under Sec. 303.703(b)(1); or
    (ii) That the lead agency must not make further payments of funds 
under part C of the Act to specified State agencies, EIS programs or, if 
the lead agency does not provide part C funds to

[[Page 230]]

the EIS program, EIS providers that caused or were involved in the 
Secretary's determination under Sec. 303.703(b)(1).
    (2) Withholding until rectified. Until the Secretary is satisfied 
that the condition that caused the initial withholding has been 
substantially rectified--
    (i) Payments to the State under part C of the Act must be withheld 
in whole or in part; and
    (ii) Payments by the lead agency under part C of the Act must be 
limited to State agencies and EIS providers whose actions did not cause 
or were not involved in the Secretary's determination under Sec. 
303.703(b)(1).

(Authority: 20 U.S.C. 1416(e)(4), 1416(e)(6), 1442)

Sec. 303.706  Public attention.

    Whenever a State receives notice that the Secretary is proposing to 
take or is taking an enforcement action pursuant to Sec. 303.704, the 
State must, by means of a public notice, take such measures as may be 
necessary to bring the pendency of an action pursuant to section 616(e) 
of the Act and Sec. 303.704 of the regulations to the attention of the 
public within the State, including by posting the notice on the Web site 
of the lead agency and distributing the notice to the media and to EIS 
programs.

(Authority: 20 U.S.C. 1416(e)(7), 1442)

Sec. 303.707  Rule of construction.

    Nothing in this subpart may be construed to restrict the Secretary 
from utilizing any authority under GEPA, 20 U.S.C. 1221 et seq., and its 
regulations in 34 CFR parts 76, 77, 80, and 81, including the imposition 
of special conditions under 34 CFR 80.12, to monitor and enforce the 
requirements of the Act.

(Authority: 20 U.S.C. 1416(g), 1442)

Sec. 303.708  State enforcement.

    Nothing in this subpart may be construed to restrict a State from 
utilizing any other authority available to it to monitor and enforce the 
requirements of the Act.

(Authority: 20 U.S.C. 1416(a)(1)(C), 1442)

                      Reports--Program Information

Sec. 303.720  Data requirements--general.

    (a) The lead agency must annually report to the Secretary and to the 
public on the information required by section 618 of the Act at the 
times specified by the Secretary.
    (b) The lead agency must submit the report to the Secretary in the 
manner prescribed by the Secretary.

(Approved by Office of Management and Budget under control number 1820-
0557)

(Authority: 20 U.S.C. 1418, 1435(a)(14), 1442)

Sec. 303.721  Annual report of children served--report requirement.

    (a) For the purposes of the annual report required by section 618 of 
the Act and Sec. 303.720, the lead agency must count and report the 
number of infants and toddlers receiving early intervention services on 
any date between October 1 and December 1 of each year. The report must 
include--
    (1) The number and percentage of infants and toddlers with 
disabilities in the State, by race, gender, and ethnicity, who are 
receiving early intervention services (and include in this number any 
children reported to it by tribes, tribal organizations, and consortia 
under Sec. 303.731(e)(1));
    (2) The number and percentage of infants and toddlers with 
disabilities, by race, gender, and ethnicity, who, from birth through 
age two, stopped receiving early intervention services because of 
program completion or for other reasons; and
    (3) The number and percentage of at-risk infants and toddlers (as 
defined in section 632(1) of the Act), by race and ethnicity, who are 
receiving early intervention services under part C of the Act.
    (b) If a State adopts the option under section 635(c) of the Act and 
Sec. 303.211 to make services under this part available to children 
ages three and older, the State must submit to the Secretary a report on 
the number and percentage of children with disabilities who are eligible 
for services under section 619 of the Act but whose parents choose for 
those children to continue to receive early intervention services.

[[Page 231]]

    (c) The number of due process complaints filed under section 615 of 
the Act, the number of hearings conducted and the number of mediations 
held, and the number of settlement agreements reached through such 
mediations.

(Approved by Office of Management and Budget under control number 1820-
0557)

(Authority: 20 U.S.C. 1418(a)(1)(B), (C), (F), (G), and (H), 
1435(a)(14), 1435(c)(3), 1442)

Sec. 303.722  Data reporting.

    (a) Protection of identifiable data. The data described in section 
618(a) of the Act and in Sec. 303.721 must be publicly reported by each 
State in a manner that does not result in disclosure of data 
identifiable to individual children.
    (b) Sampling. The Secretary may permit States and outlying areas to 
obtain data in section 618(a) of the Act through sampling.

(Approved by Office of Management and Budget under control number 1820-
0557)

(Authority: 20 U.S.C. 1418(b), 1435(a)(14), 1442)

Sec. 303.723  Annual report of children served--certification.

    The lead agency must include in its report a certification signed by 
an authorized official of the agency that the information provided under 
Sec. 303.721 is an accurate and unduplicated count of infants and 
toddlers with disabilities receiving early intervention services.

(Approved by Office of Management and Budget under control number 1820-
0557)

(Authority: 20 U.S.C. 1418(a)(3), 1435(a)(14), 1442)

Sec. 303.724  Annual report of children served--other responsibilities 
          of the lead agency.

    In addition to meeting the requirements of Sec. Sec. 303.721 
through 303.723, the lead agency must conduct its own child count or use 
EIS providers to complete its child count. If the lead agency uses EIS 
providers to complete its child count, then the lead agency must--
    (a) Establish procedures to be used by EIS providers in counting the 
number of children with disabilities receiving early intervention 
services;
    (b) Establish dates by which those EIS providers must report to the 
lead agency to ensure that the State complies with Sec. 303.721(a);
    (c) Obtain certification from each EIS provider that an unduplicated 
and accurate count has been made;
    (d) Aggregate the data from the count obtained from each EIS 
provider and prepare the report required under Sec. Sec. 303.721 
through 303.723; and
    (e) Ensure that documentation is maintained to enable the State and 
the Secretary to audit the accuracy of the count.

(Approved by Office of Management and Budget under control number 1820-
0557)

(Authority: 20 U.S.C. 1418(a), 1435(a)(14), 1442)

                           Allocation of Funds

Sec. 303.730  Formula for State allocations.

    (a) Reservation of funds for outlying areas. From the sums 
appropriated to carry out part C of the Act for any fiscal year, the 
Secretary may reserve not more than one percent for payments to American 
Samoa, the Commonwealth of the Northern Mariana Islands, Guam, and the 
United States Virgin Islands in accordance with their respective needs 
for assistance under part C of the Act.
    (b) Consolidation of funds. The provisions of the Omnibus 
Territories Act of 1977, Pub. L. 95-134, permitting the consolidation of 
grants to the outlying areas, do not apply to the funds provided under 
part C of the Act.

(Authority: 20 U.S.C. 1443(a))

Sec. 303.731  Payments to Indians.

    (a) General. (1) The Secretary makes payments to the Secretary of 
the Interior under part C of the Act, which the Secretary of the 
Interior must distribute to tribes or tribal organizations (as defined 
under section 4 of the Indian Self-Determination and Education 
Assistance Act, as amended, 25 U.S.C. 450b), or consortia of those 
entities, for the coordination of assistance in the provision of early 
intervention services by States to infants and toddlers with 
disabilities and their families on reservations served by elementary and 
secondary schools for Indian children operated or funded by the 
Secretary of the Interior.

[[Page 232]]

    (2) A tribe, tribal organization, or consortium of those entities is 
eligible to receive a payment under this section if the tribe, tribal 
organization, or consortium of those entities is on a reservation that 
is served by an elementary or secondary school operated or funded by the 
Secretary of the Interior.
    (3) The amount of the payment to the Secretary of the Interior under 
this section for any fiscal year is 1.25 percent of the aggregate amount 
available to all States under part C of the Act.
    (b) Allocation. For each fiscal year, the Secretary of the Interior 
must distribute the entire payment received under paragraph (a)(1) of 
this section by providing to each tribe, tribal organization, or 
consortium an amount based on the number of infants and toddlers 
residing on the reservation, as determined annually, divided by the 
total number of those children served by all tribes, tribal 
organizations, or consortia.
    (c) Information. To receive a payment under this section, the tribe, 
tribal organization, or consortium must submit the appropriate 
information to the Secretary of the Interior to determine the amounts to 
be distributed under paragraph (b) of this section.
    (d) Use of funds. (1) The funds received by a tribe, tribal 
organization, or consortium must be used to assist States in child find, 
screening, and other procedures for the early identification of Indian 
children under three years of age and for parent training. The funds 
also may be used to provide early intervention services in accordance 
with part C of the Act. These activities may be carried out directly or 
through contracts or cooperative agreements with the Bureau of Indian 
Education, local educational agencies, and other public or private 
nonprofit organizations. The tribe, tribal organization, or consortium 
is encouraged to involve Indian parents in the development and 
implementation of these activities.
    (2) The tribe, tribal organization, or consortium must, as 
appropriate, make referrals to local, State, or Federal entities for the 
provision of services or further diagnosis.
    (e) Reports. (1) To be eligible to receive a payment under paragraph 
(b) of this section, a tribe, tribal organization, or consortium must 
make a biennial report to the Secretary of the Interior of activities 
undertaken under this section, including the number of contracts and 
cooperative agreements entered into, the number of infants and toddlers 
contacted and receiving services for each year, and the estimated number 
of infants and toddlers needing services during the two years following 
the year in which the report is made. This report must include an 
assurance that the tribe, tribal organization, or consortium has 
provided the lead agency in the State child find information (including 
the names and dates of birth and parent contact information) for infants 
or toddlers with disabilities who are included in the report in order to 
meet the child find coordination and child count requirements in 
sections 618 and 643 of the Act.
    (2) The Secretary of the Interior must provide a summary of this 
information (including confirmation that each tribe, tribal 
organization, or consortium has provided to the Secretary of the 
Interior the assurance required under paragraph (e)(1) of this section) 
on a biennial basis to the Secretary along with such other information 
as required of the Secretary of the Interior under part C of the Act. 
The Secretary may require additional information from the Secretary of 
the Interior.
    (3) Within 90 days after the end of each fiscal year the Secretary 
of the Interior must provide the Secretary with a report on the payments 
distributed under this section. The report must include--
    (i) The name of each tribe, tribal organization, or combination of 
those entities that received a payment for the fiscal year;
    (ii) The amount of each payment; and
    (iii) The date of each payment.
    (f) Prohibited uses of funds. None of the funds under this section 
may be used by the Secretary of the Interior for administrative 
purposes, including child count and the provision of technical 
assistance.

(Authority: 20 U.S.C. 1443(b))

Sec. 303.732  State allotments.

    (a) General. Except as provided in paragraphs (b) and (c) of this 
section,

[[Page 233]]

for each fiscal year, from the aggregate amount of funds available under 
part C of the Act for distribution to the States, the Secretary allots 
to each State an amount that bears the same ratio to the aggregate 
amount as the number of infants and toddlers in the State bears to the 
number of infants and toddlers in all States.
    (b) Minimum allocations. Except as provided in paragraph (c) of this 
section, no State may receive less than 0.5 percent of the aggregate 
amount available under this section or $500,000, whichever is greater.
    (c) Ratable reduction. (1) If the sums made available under part C 
of the Act for any fiscal year are insufficient to pay the full amount 
that all States are eligible to receive under this section for that 
year, the Secretary ratably reduces the allotments to those States for 
such year.
    (2) If additional funds become available for making payments under 
this section, allotments that were reduced under paragraph (c)(1) of 
this section will be increased on the same basis the allotments were 
reduced.
    (d) Definitions. For the purpose of allotting funds to the States 
under this section--
    (1) Aggregate amount means the amount available for distribution to 
the States after the Secretary determines the amount of payments to be 
made to the Secretary of the Interior under Sec. 303.731, to the 
outlying areas under Sec. 303.730, and any amount to be reserved for 
State incentive grants under Sec. 303.734;
    (2) Infants and toddlers means children from birth through age two 
in the general population, based on the most recent satisfactory data as 
determined by the Secretary; and
    (3) State means each of the 50 States, the District of Columbia, and 
the Commonwealth of Puerto Rico.

(Authority: 20 U.S.C. 1443(c))

Sec. 303.733  Reallotment of funds.

    If a State (as defined in Sec. 303.35) elects not to receive its 
allotment, the Secretary reallots those funds among the remaining States 
(as defined in Sec. 303.732(d)(3)), in accordance with Sec. 
303.732(c)(2).

(Authority: 20 U.S.C. 1443(d))

Sec. 303.734  Reservation for State incentive grants.

    (a) General. For any fiscal year for which the amount appropriated 
pursuant to the authorization of appropriations under section 644 of the 
Act exceeds $460,000,000, the Secretary reserves 15 percent of the 
appropriated amount exceeding $460,000,000 to provide grants to States 
that are carrying out the policy described in section 635(c) of the Act 
and in Sec. 303.211 (including a State that makes part C services 
available under Sec. 303.211(a)(2)), in order to facilitate the 
implementation of that policy.
    (b) Amount of grant. (1) General. Notwithstanding section 643(c)(2) 
and (c)(3) of the Act, the Secretary provides a grant to each State 
under this section in an amount that bears the same ratio to the amount 
reserved under paragraph (a) of this section as the number of infants 
and toddlers in the State bears to the number of infants and toddlers in 
all States receiving grants under paragraph (a) of this section.
    (2) Maximum amount. No State may receive a grant under paragraph (a) 
of this section for any fiscal year in an amount that is greater than 20 
percent of the amount reserved under that paragraph for the fiscal year.
    (c) Carryover of amounts pursuant to section 643(e)(3) of the Act. 
(1) First succeeding fiscal year. Pursuant to section 421(b) of GEPA, 20 
U.S.C. 1221 et seq., amounts under a grant provided under paragraph (a) 
of this section that are not obligated and expended prior to the 
beginning of the first fiscal year succeeding the fiscal year for which 
those amounts were appropriated must remain available for obligation and 
expenditure during the first succeeding fiscal year.
    (2) Second succeeding fiscal year. Amounts under a grant provided 
under paragraph (a) of this section that are not obligated and expended 
prior to the beginning of the second fiscal year succeeding the fiscal 
year for which those amounts were appropriated must be returned to the 
Secretary and used to make grants to States under section 633 of the Act 
(from their allotments identified in

[[Page 234]]

Sec. Sec. 303.731 through 303.733) during the second succeeding fiscal 
year.

(Authority: 20 U.S.C. 1443)



     Sec. Appendix A to Part 303--Index for IDEA Part C Regulations

ABILITY TO PAY (State definition)  303.521(a)(3).
ABROGATION OF STATE SOVEREIGN      303.103.
 IMMUNITY.
ABUSE or NEGLECT:
     At-risk     303.5.
     infant or toddler
     (Definition).
     Referral    303.303(b).
     of specific at-risk infants
     and toddlers.
ACCESS (TO); ACCESSING (A-O):
     Access      303.405.
     rights (of parents).
     Culturally  303.227(b).
     competent services
     (Traditionally underserved
     groups).
     Early       303.403(b).
     Intervention records
     (definition).
     Early       303.34(b)(1).
     Intervention services.
     See also
     ``Service Coordination
     (Services)''.
ACCESS (TO); ACCESSING (P-Z):
     Personally  303.415(d).
     identifiable information
     (Employees with access).
     Private     303.520(b)(1)(i).
     insurance (Parental consent
     prior to using or accessing).
     Public      303.520(a).
     Insurance (Written
     notification prior to using
     or accessing.
     Records     303.224(b).
     (Keep and afford access to
     the Secretary).
     Safeguards  303.415(d).
     (Employees with access to
     personally identifiable
     information).
ACCESSIBLE; ACCESSIBILITY:
     Central     303.117.
     directory (Accessible to
     general public).
                 303.342(d).
     Individualized family
     service plan (IFSP) meetings
     (Accessibility and
     convenience of).
     See also    303.602(b)(2).
     ``Convenience (of hearings;
     meetings)''.
     Meetings
     (Of Council).
ACCESSIBILITY STANDARDS
 (Construction or Alteration):
     Americans   303.104(b)(1).
     with Disabilities Act
     Accessibility Guidelines for
     Buildings and Facilities.
     Uniform     303.104(b)(2).
     Federal Accessibility
     Standards.
ACQUISITION OF EQUIPMENT
 (Construction):
                 303.104.
     Appropriate equipment and
     construction or alteration
     of facilities.
     See also
     ``Accessibility standards''.
ACT:
     Definition  303.4.
     (Individuals with
     Disabilities Education Act
     (IDEA)).
ADAPTIVE DEVELOPMENT:
                 303.21(a)(1)(v).
     Developmental delay in.
     Early       303.13(a)(4)(v).
     Intervention services
     (Definition).
        [cir] See also in          303.13(b)(8).
         ``Occupational therapy''.
     Evaluation  303.321(b)(3).
     and assessment (Of the
     child).
                 303.344(a).
     Individualized family
     service plan (IFSP) content
     (Child's status).
     Infant or   303.21(a)(1)(v).
     toddler with a disability
     (Definition).
ADVOCATE (Noun):
                 303.343(a)(1)(iii).
     Individualized family
     service plan (IFSP) Team.
AGGREGATE AMOUNT:
     Payments    303.731(a)(3).
     to Indians.
     State       303.732(d)(1).
     allotments (Definition).
        [cir] See also ``State     303.732(a),(b).
         allotments''.
AMENDMENTS (To a State's
 application):
     Functions   303.604(a)(4).
     of the Council (Advise and
     assist lead agency with).
                 303.228(c)(1).
     Modifications required by
     the Secretary.
AMERICANS WITH DISABILITIES ACT:
     Civil       303.448(e).
     Action.
APPLICABLE REGULATIONS...........  303.3.
APPLICATION:
     See
     ``State Application''.

[[Page 235]]

 
ASSESSMENT:
     Assessment  303.321(a)(2)(ii).
     of child and family
     (Definition).
     Early       303.13(b)(6)(i), (b)(7)(i),
     Intervention services (Types   (b)(8)(i), (b)(9)(i), (b)(10)(i)-
     of services).                  (b)(10)(ii), (b)(13)(ii),
                                    (b)(17)(i).
     Procedures  303.321(c)(1).
     for assessment of the child.
     Procedures  303.321(c)(2).
     for assessment of the family.
     Voluntary   303.321(c)(2)(i).
     on part of the family.
     See also
     ``Evaluation (And
     Assessment)''.
ASSISTANTS (In personnel
 standards):
     Use of....  303.119(c).
     See also
     ``Paraprofessionals''.
ASSISTIVE and ORTHOTIC DEVICES:
                 303.13(b)(8)(ii).
     Occupational therapy
     (Fabrication of).
ASSISTIVE TECHNOLOGY (AT):
     Assistive   303.13(b)(1)(i).
     Technology (AT) device.
     Assistive   303.13(b)(1)(ii).
     Technology (AT) service.
AT NO COST:
     Early       303.13(a)(3).
     Intervention services.
     Initial     303.409(c).
     copy of Early Intervention
     record.
     Parental    303.444(c)(2).
     rights at hearings (Record
     of hearing).
     System of   303.521(a)(4)(i)-(a)(4)(ii).
     payments and fees.
AT-RISK:
     Annual      303.721(a)(3).
     report of children served.
     Audiology   303.13(b)(2)(i).
     services (At-risk criteria).
     Council     303.605(b).
     (Authorized activities).
     Definition  303.5.
     (Infant or toddler).
                 303.204(b).
     Description of Early
     Intervention services to.
     Infant or   303.21(b).
     toddler with a disability.
     Permissive  303.501(e).
     use of funds by lead agency.
     Referral    303.303(b).
     of specific at-risk infants
     and toddlers.
     State's     303.204(a).
     definition of (Application
     requirements).
AUDIOLOGY SERVICES:
     Definition  303.13(b)(2).
     Qualified   303.13(c)(1).
     personnel (Audiologists).
AUTHORIZED ACTIVITIES:
     Council...  303.605.
AWARD:
     Eligible    303.2(a).
     recipients.
     See also
     ``Grants''.
BIE:
     See
     ``Bureau of Indian
     Education''.
BLINDNESS; BLIND:
     Native      303.25(b).
     language.
     Special     303.13(c)(11).
     educators (Teachers of
     children with visual
     impairments (Including
     blindness)).
BRAILLE:
     Native      303.25(b).
     language.
BRAIN HEMORRAGE:
     At-Risk     303.5.
     infant or toddler
     (Definition)..
BUREAU OF INDIAN EDUCATION (BIE):
     Bureau of   303.23(c).
     Indian Education (BIE)-
     funded schools.
     Council     303.601(c).
     Composition (Other members
     selected by the Governor).
     Payments    303.731(d).
     to Indians.
BUSINESS DAY (In Individuals with
 Disabilities Education Act
 (IDEA) Part B):
     Resolution  303.442(e).
     process (Agreement review
     period).
     Hearing     303.444(a)(3), (b)(1).
     rights.
CALENDAR DAY:
     See         303.9.
     ``Day'' (Definition).
CHILD ABUSE, PREVENTION, AND
 TREATMENT ACT (CAPTA):
     Child       303.302(c)(1)(ii)(G).
     protection and welfare
     programs under CAPTA.
CASE MANAGEMENT:
     In          303.34.
     ``Service coordination
     services''.

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     Medicaid    303.34(c).
     reference to.
CENTRAL DIRECTORY:
     Public      303.301(b)(3).
     awareness program.
     State       303.117.
     system requirement.
CERTIFICATION (In
 Administration):
     Annual      303.723.
     report of children served.
     Annual      303.724(c).
     report of children served
     (Other responsibilities of
     the lead agency).
     Public      303.208(a).
     participation application.
     Regarding   303.202.
     financial responsibility.
     State       303.200(a).
     application requirement.
CERTIFICATION (Of personnel):
     Personnel   303.119(b).
     qualification standards.
     Qualified   303.31.
     personnel (Definition).
    CHILD (Definition)...........  303.6.
CHILD ABUSE, PREVENTION, AND
 TREATMENT ACT:
     See
     ``CAPTA''.
CHILD COUNT:
     Accurate    303.723.
     and unduplicated count
     (Annual report of children
     served--certification).
     Count and   303.721(a).
     report (Annual report of
     children served--report
     requirement).
     Other
     responsibilities of lead
     agency:
        [cir] Aggregate count      303.724(d).
         data.
        [cir] Ensure               303.724(e).
         documentation of count
         is maintained.
        [cir] Obtain               303.724(c).
         certification (Of
         unduplicated and
         accurate count).
     Prohibited  303.731(f).
     uses of funds (By Secretary
     of the Interior).
CHILD'S ELIGIBILITY:
     Evaluation  303.320(a)(2)(i).
     and assessment of child.
     No single   303.321(b).
     procedure as sole criterion.
     Not         303.322.
     eligible (Agency
     determination).
     Parental    303.420(a)(1)-(2).
     consent before determining a
     child's eligibility.
     Status of   303.430(e)(2).
     child during pendency of a
     due process complaint.
     Transition  303.209(b)(1).
     to preschool.
CHILD FIND (A-E):
     At public   303.521(b)(1).
     expense (Functions not
     subject to fees).
    
     Comprehensive child find
     system:
        [cir] State system         303.115.
         requirement.
        [cir] Substantive          303.302.
         requirement.
     Consistent  303.302(a)(1).
     with Part B.
     Content of  303.344(h)(2)(iii).
     an individualized family
     service plan (IFSP)
     (Transmission of child find
     information).
                 303.302(c)(1)-(c)(2).
     Coordination with other
     Federal and State efforts.
CHILD FIND (F-PO):
     Financial   303.511(a).
     responsibility for.
     Functions   303.604(a)(3).
     of the Council (Intra-agency
     and interagency
     collaboration).
     Payments    303.731(d).
     to Indians (Use of funds).
     Payor of    303.510(b).
     last resort (Interim
     payments and reimbursement).
CHILD FIND (PR-Z):
     Primary     303.303(c).
     referral sources.
     Public      303.301(b).
     awareness program
     (Information to be provided
     to parents).
     Referral    303.303(a)(1).
     procedures (In general).
     Scope of    303.302(b).
     child find.
     Screening   303.320.
     procedures.
     State       303.700(d)(2).
     monitoring and enforcement.
     State       303.115.
     system requirement.
CHILD WITH A DISABILITY:
                 303.601(a)(1)(ii).
     Composition of the Council.
     Infant or   303.21(c).
     toddler with a disability
     (Definition).

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     State       303.211(e)(1).
     option to make Early
     Intervention services
     available to children three
     and older (Rules of
     construction).
CHROMOSOMAL ABNORMALITIES:
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition.
CIVIL ACTION (Part B):
     Civil       303.448(a).
     action (In general).
     Finality    303.446(d).
     of review decision.
     Rule of     303.448(e).
     construction.
     Time        303.448(b).
     limitation.
CIVIL ACTION (Part C)............  303.438.
CLEFT PALATE; CLUB FOOT (Surgery
 for):
     Health      303.16(c)(1)(i).
     services (Not included).
COCHLEAR IMPLANT:
     Assistive   303.13(b)(1)(i).
     technology device (Not
     included).
     Health      303.16(c)(1)(iii).
     services (Not included).
COGNITIVE DEVELOPMENT:
     Content of  303.344(a).
     an individualized family
     service plan (IFSP) (Child's
     status).
                 303.21(a)(1)(i).
     Developmental delay in.
     Early       303.13(a)(4)(ii).
     Intervention services
     (Definition).
     Evaluation  303.321(b)(3).
     and assessment (Of child).
     Infant or   303.21(a)(1)(i).
     toddler with a disability
     (Definition).
COLOSTOMY COLLECTION BAGS:
     Health      303.16(b)(1).
     services (Included).
COMMINGLING:
                 303.225(a)(1).
     Prohibition against.
COMMUNICATION DEVELOPMENT:
     Content of  303.344(a).
     individualized family
     service plan (IFSP) (Child's
     status).
                 303.21(a)(1)(iii).
     Developmental delay in.
     Early       303.13(a)(4)(iii).
     Intervention services
     (Definition).
     Evaluation  303.321(b)(3).
     and assessment (Of child).
     Infant or   303.21(a)(1)(iii).
     toddler with a disability
     (Definition).
COMPLAINTS:
     Annual      303.721(c).
     report of children served
     (Number of due process
     complaints).
                 303.401(b)(2).
     Confidentiality procedures.
     Minimum     303.433(c).
     State complaint procedures
     (Comparison with due process
     complaints).
        [cir] See also ``State
         Complaint Procedures''.
     State
     dispute resolution options:
        [cir] Due process hearing  303.430(d).
         procedures.
        [cir] In general.........  303.430(a).
        [cir] State complaint      303.430(c).
         procedures.
COMPLIANCE:
     Compliance  303.704(b)(2)(ii).
     agreement (Enforcement).
     Compliance  303.104(b).
     with certain regulations
     (Construction or alteration
     of facilities).
     Corrective  303.704(b)(2)(i).
     action plans to achieve
     compliance (Enforcement).
                 303.228(c).
     Modifications of State
     application required by the
     Secretary (For compliance).
     Reports     303.224(b).
     and records (To ensure
     compliance with Part C).
COMPREHENSIVE SYSTEM OF PERSONNEL  303.118.
 DEVELOPMENT (CSPD).
CONFIDENTIALITY (A-D):
     Access      303.405.
     rights.
                 303.401(a)-(c).
     Confidentiality and
     opportunity to examine
     records.
     Consent     303.414.
     prior to disclosure or use.
    
     Definitions:
        [cir] Destruction........  303.403(a).
        [cir] Early Intervention   303.403(b).
         records.
        [cir] Participating        303.403(c).
         agency.
                 303.416.
     Destruction of information.
CONFIDENTIALITY (E-N):

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                 303.417.
     Enforcement by lead agency.
     Family      303.401(b).
     Educational Rights and
     Privacy Act (FERPA).
     Fees for    303.409.
     records.
     Hearing     303.413.
     procedures.
     List of     303.408.
     types and locations of
     information.
     Notice to   303.404.
     parents.
CONFIDENTIALITY (O-Z):
                 303.411.
     Opportunity for a hearing.
     Parental    303.405(c).
     authority to inspect and
     review records.
     Record of   303.406.
     access.
     Records on  303.407.
     more than one child.
     Result of   303.412.
     hearing.
     Safeguards  303.415.
                 303.402.
     Secretary's action (To
     protect).
CONGENITAL DISORDERS:
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition
     (Infant or toddler with a
     disability).
CONGENITAL HEART AILMENTS:
     Health      303.16(c)(1)(ii).
     services (Not included).
CONGENITAL INFECTIONS:
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition
     (Infant or toddler with a
     disability).
CONSENT (A-H):
     Continue    303.501(d).
     Early Intervention services
     from age three to
     kindergarten, with consent.
     Definition  303.7.
     Due         303.441(d)(3)(i).
     process complaint
     (Sufficiency to amend).
     Early       303.420(a)(3).
     Intervention services.
     Early       303.501(d).
     Intervention services in
     lieu of Free Appropriate
     Public Education (FAPE) from
     age three to kindergarten.
     Evaluation  303.420(a)(2).
     and assessment of a child.
     Granting    303.7(c)(1).
     of consent is voluntary.
     Hearing     303.444(b)(2).
     rights (Additional
     disclosure).
CONSENT (I-Q):
                 303.20(c).
     Individualized family
     service plan (IFSP)
     (Definition).
     Insurance:
        [cir] Private insurance..  303.520(b).
        [cir] Public insurance...  303.520(a).
     Interim     303.345(a).
     individualized family
     service plan (IFSP).
     Lead        303.400(a).
     agency responsible for
     procedural safeguards
     (Consent and notice, etc.).
     Lead        303.420(b).
     agency role if consent not
     given.
     Parental    303.420.
     consent and ability to
     decline services.
     Permissive  303.501(d).
     use of funds by lead agency
     (Continue Early Intervention
     services in lieu of Free
     Appropriate Public Education
     (FAPE)).
     Prior to    303.414.
     disclosure or use of
     personally identifiable
     information.
     Provision   303.345(a).
     of Early Intervention
     services before evaluation
     and assessment are completed.
CONSENT (R-Z):
     Required
     before:
        [cir] Administering        303.420(a)(1).
         screening procedures.
        [cir] Conducting an        303.420(a)(2).
         evaluation and
         assessment of a child.
        [cir] Providing Early      303.420(a)(3).
         Intervention services.
        [cir] Using private        303.520(b).
         insurance.
     Revocation  303.7(c)(2).
     of consent (Not retroactive).
     State
     option for Early
     Intervention services after
     age three:
        [cir] Available funds for  303.211(d).
        [cir] Continuation of      303.211(b)(5).
         Early Intervention
         services.
        [cir] Referral to Part C   303.211(b)(7).
         (Trauma due to exposure
         to family violence,
         under age three).
     Status of   303.430(e).
     child during due process
     complaint.

[[Page 239]]

 
     Timelines   303.310(b)(2).
     for screening, initial
     evaluation, or assessments.
CONSTRUCTION or ALTERATION (Of
 facilities):
     Compliance  303.104(b).
     with certain regulations.
     Use of      303.104(a).
     funds for.
CONSTRUCTION CLAUSES (A-M):
     Civil       303.448(e).
     action (Nothing restricts
     rights, except that
     procedures under Sec. Sec.
      303.440 and 303.446 must be
     exhausted before filing a
     civil action).
     Hearing
     decisions--Nothing:
        [cir] Affects the right    303.445(b).
         of a parent to appeal a
         hearing decision.
        [cir] Precludes a hearing  303.445(a)(3).
         officer from requiring
         compliance with Sec.
         Sec. 303.440-449.
        [cir] Precludes a parent   303.445(c).
         from filing a separate
         due process complaint.
     Indian      303.19(c).
     tribe (Nothing requires
     services or funding to a
     State Indian Tribe not in
     the Federal Register list
     pursuant to the Federally
     Recognized Indian Tribe List
     Act of 1994).
CONSTRUCTION CLAUSES (N-Z):
     Nationwide  303.701(c)(3).
     database of personally
     identifiable information on
     individuals involved in
     studies, etc. (Nothing
     construed to authorize).
     Non-        303.510(c).
     reduction of benefits (Payor
     of last resort).
     Personnel   303.119(c).
     standards (Nothing prohibits
     the use of paraprofessionals
     and assistants).
                 303.707.
     Secretary's authority to
     monitor enforcement of
     General Education Provisions
     Act (GEPA).
     State
     option to make services
     available after age three:
        [cir] If Early             303.211(e)(1).
         Intervention services
         provided to a child
         eligible under Sec.
         619, Free Appropriate
         Public Education (FAPE)
         not required.
        [cir] Service provider     303.211(e)(2).
         under Part C not
         required to provide Free
         Appropriate Public
         Education (FAPE).
CONSULTATION:
     By          303.16(b)(2).
     physicians (Health services).
     On child    303.13(b)(10)(iv).
     development (Psychological
     services).
CONTENT OF INDIVIDUALIZED FAMILY   303.344.
 SERVICE PLAN (IFSP).
     See also
     ``Individualized Family
     Service Plan (IFSP)
     Content''.
CONTRACTS:
                 303.202.
     Certification regarding
     financial responsibility
     (Lead agency's contracts
     with Early Intervention
     service providers).
     Payments
     to Indians:
        [cir] Biennial report to   303.731(e)(1).
         Secretary of the
         Interior (Number of
         contracts, etc.).
        [cir] Use of funds for     303.731(d)(1).
         Early Intervention
         services through
         contracts or cooperative
         agreements.
     Mediation   303.431(d)(1).
     (Meeting to encourage).
     Parent      303.27(a)(2).
     (Definition).
     Policy for  303.121.
     contracting for services.
CONVENIENCE (OF HEARINGS;
 MEETINGS):
                 303.437.
     Convenience of hearings and
     timelines (Part C).
                 303.342(d).
     Individualized family
     service plan (IFSP) meetings
     (Accessibility and
     convenience of).
     Timelines   303.447.
     and convenience of hearings
     and reviews (Part B).
     See also
     ``Accessible;
     Accessibility''.
COORDINATION (A-O):
     Child find  303.302(c)(1).
     (Coordination of lead
     agency's efforts with the
     assistance of Council).

[[Page 240]]

 
                 303.511(e).
     Establishing financial
     responsibility for, and
     methods of, ensuring
     services (Additional
     components).
     Head        303.210(a).
     Start, Early Head Start,
     early education, and child
     care.
    
     Individualized family
     service plan (IFSP):
        [cir] Content of (Service  303.344(g)(1).
         coordinator).
        [cir] Statewide system     303.114.
         requirement (Including
         service coordination
         services).
     Lead        303.120(b), (f).
     agency role in interagency
     coordination, etc..
     Methods     303.511.
     for financial interagency
     coordination.
COORDINATION (P-Z):
     Payor of    303.500(a)(2).
     last resort (Coordination of
     funding resources).
     Purpose of  303.1(b).
     Early Intervention program
     (Facilitate coordination of
     payment).
     Service     303.13(b)(11).
     coordination services (In
     definition of ``Early
     Intervention services'').
        [cir] See ``Service        303.34.
         coordination services
         (Case management).''.
        [cir] See also ``Service
         Coordination''.
     Services    303.345(b)(1).
     before evaluations and
     assessments completed
     (Service coordinator).
     Statewide   303.203(b).
     system and description of
     services.
     Use of      303.500(a)(2).
     funds and payor of last
     resort (Coordination of
     funding resources).
CO-PAYMENTS; CO-PAYS:
     Policies
     related to use of insurance
     for payment for services:
        [cir] Private insurance..  303.520(b).
        [cir] Public insurance...  303.520(a).
     System of   303.521(a)(6).
     payments and fees.
     See also
     ``System of Payments'';
     ``Fees''.
COST PARTICIPATION FEES:
     System of   303.521(a)(1).
     payments and fees.
COUNCIL:
     Definition  303.8.
     See         303.600-303.605.
     ``State Interagency
     Coordinating Council''.
CRITERIA:
     Assessment  303.321(c).
     of the child and family.
     At-risk     303.5, 303.204.
     criteria.
     Content of  303.344(c).
     individualized family
     service plan (IFSP) (Results
     or outcomes).
     Early       303.13(b)(2)(i).
     Intervention services
     (Audiology services).
     Early       303.13(d).
     Intervention services (Other
     services).
     State       303.111(b).
     definition of developmental
     delay.
     Surrogate   303.422(d).
     parents (Selection of).
CSPD (COMPREHENSIVE SYSTEM OF      303.118.
 PERSONNEL DEVELOPMENT).
CULTURALLY COMPETENT SERVICES....  303.227(b).
CURRICULUM PLANNING:
     In ``Early  303.13(b)(14)(ii).
     Intervention services''
     definition (Special
     instruction).
DATA (A-H):
     Annual      303.724(d).
     report of children served
     (Aggregate data).
                 303.402.
     Confidentiality (Personally
     identifiable data).
     Data        303.701(c)(3).
     collection (Construction
     clause).
     Data        303.124.
     collection (Statewide
     system).
     Data
     reporting:
        [cir] Protection of        303.722(a).
         identifiable data.
        [cir] Sampling...........  303.722(b).
     Data        303.720.
     requirements (In general).
     Exit data   303.416(b).
     (Destruction of information).
DATA (I-Z):
     Infants     303.732(d)(2).
     and toddlers (Definition).
                 303.702(b)(3).
     Insufficient data (State use
     of targets and reporting).
     State       303.701.
     performance plans and data
     collection.
        [cir] Construction clause  303.701(c)(3).
         (Nationwide data base).

[[Page 241]]

 
        [cir] Data collection....  303.701(c).
        [cir] Data on specific     303.701(c)(2).
         indicators.
     State use   303.702(b)(1)(ii).
     of targets and reporting..
                 303.702(b)(3).
     Statistically reliable
     information (Insufficient
     data).
DAY:
     Definition  303.9.
     See also
     ``Timelines''
DEAF; DEAFNESS:
     Council     303.602(b)(3).
     Meetings (Interpreters for).
     Early       303.13(c)(11).
     Intervention services
     (Special educators).
     Native      303.25(b).
     language.
DEFINITIONS (A-D):
     Ability to  303.521(a)(3).
     pay (State's definition).
     Act.......  303.4.
     Aggregate   303.732(d)(1).
     amount (State allotments).
     Assessment  303.321(a)(2)(ii), 303.321(c)(1)-
     of the child and the family.   (c)(2).
     Assistive   303.13(b)(1).
     technology devices and
     services.
     Audiology   303.13(b)(2).
     services.
     Child.....  303.6.
     Consent...  303.7.
     Council...  303.8.
     Day.......  303.9.
                 303.403(a).
     Destruction (Of a record).
                 303.10.
     Developmental delay.
     Duration    303.344(d)(2)(iv).
     (Content of an
     individualized family
     service plan (IFSP)).
DEFINITIONS (E-H):
     Early       303.3(b)(2), 303.403(b).
     Intervention record.
     Early       303.11.
     Intervention service program.
     Early       303.12.
     Intervention service
     provider.
     Early       303.13.
     Intervention services.
     Education   303.3(b)(2).
     records.
     Elementary  303.14.
     school.
     Evaluation  303.321(a)(2)(i).
     Family      303.13(b)(3).
     training, counseling, and
     home visits.
     Free        303.15.
     Appropriate Public Education
     (FAPE).
     Frequency   303.344(d)(2)(i).
     and intensity (Content of an
     individualized family
     service plan (IFSP)).
     Health      303.16.
     services.
     Homeless    303.17.
     children.
DEFINITIONS (I-M):
     Impartial.  303.435(b).
     Include;    303.18.
     including.
     Indian;     303.19.
     Indian tribe.
                 303.20.
     Individualized family
     service plan (IFSP).
     Infants     303.732(d)(2).
     and toddlers (State
     allotments).
     Infant or   303.21.
     toddler with a disability.
     Lead        303.22.
     agency.
     Length      303.344(d)(2)(iii).
     (Content of an
     individualized family
     service plan (IFSP)).
     Local       303.23.
     educational agency (LEA).
     Location    303.344(d)(3).
     (Content of an
     individualized family
     service plan (IFSP)).
     Medical     303.13(b)(5).
     services.
     Method      303.344(d)(2)(ii).
     (Content of an
     individualized family
     service plan (IFSP)).
                 303.24.
     Multidisciplinary.
DEFINITIONS (N-R):
     Native      303.25.
     language.
     Natural     303.26.
     environments.
     Nursing     303.13(b)(6).
     services.
     Nutrition   303.13(b)(7).
     services.
                 303.13(b)(8).
     Occupational therapy.
     Parent....  303.27.
                 303.403(c).
     Participating agency
     (Personally identifiable
     information).

[[Page 242]]

 
     Parent      303.28.
     training and information
     center.
     Personally  303.29, 303.401.
     identifiable information.
     Physical    303.13(b)(9).
     Therapy.
     Primary     303.303(c).
     referral sources.
                 303.13(b)(10).
     Psychological services.
     Public      303.30.
     agency.
     Qualified   303.31.
     personnel.
DEFINITIONS (S-Z):
                 303.32.
     Scientifically based
     research.
     Screening   303.320(b).
     procedures.
     Secretary.  303.33.
     Service     303.34.
     coordination services (Case
     management).
        [cir] See also ``Early     303.13(b)(11).
         Intervention services''
         definition.
     Sign        303.13(b)(12).
     language and cued language.
     Social      303.13(b)(13).
     work services.
     Special     303.13(b)(14).
     instruction.
     Speech-     303.13(b)(15).
     language pathology services.
     State.....  303.35.
     State       303.732(d)(3).
     (State allotments).
     State       303.36.
     educational agency (SEA).
                 303.13(b)(16).
     Transportation and related
     costs.
     Vision      303.13(b)(17).
     services.
     Ward of     303.37.
     the State.
DEPARTMENT PROCEDURES:
     State       303.231-303.236.
     application and assurances.
DEVELOPMENTAL DELAY:
     At-risk     303.5.
     infant or toddler
     (Definition).
     Definition  303.10.
     Infant or   303.21(a)(1), (a)(2)(i).
     toddler with a disability
     (Definition).
     Purpose of  303.1(e).
     the Early Intervention
     program.
     Statewide   303.203(c).
     system (State's rigorous
     definition).
     State       303.111.
     definition.
DEVELOPMENTAL DISABILITIES
 ASSISTANCE and BILL OF RIGHTS
 ACT:
     Child find  303.302(c)(1)(ii)(D).
     coordination.
DIAGNOSED PHYSICAL OR MENTAL
 CONDITION:
     Infant or   303.21(a)(2).
     toddler with a disability
     (Definition).
DIETICIANS:
     Early       303.13(c)(9).
     Intervention services
     (Qualified personnel).
DIRECT SERVICES:
                 303.205(d).
     Description of use of funds.
        [cir] See also ``Use of
         Funds''.
DISORDERS:
     Infant or   303.21(a)(2)(ii).
     toddler with a disability
     (Definition).
     Speech-     303.13(b)(15).
     language pathology services
     (Definition).
     Vision      303.13(b)(17).
     services (Definition).
DISPUTES; DISPUTE RESOLUTION:
     Impartial   303.443(a).
     due process hearing.
     Intra-      303.511(c)(1).
     agency or interagency
     disputes.
     Lead        303.120(d)-(f).
     agency role in resolving
     disputes.
     Mediation
        [cir] In general.........  303.431.
        [cir] State dispute        303.430(b).
         resolution.
     Procedures  303.511(c).
     for resolving disputes
     (Methods of ensuring
     services).
     Resolution
     process (Part B).
        [cir] Due process          303.430(d).
         procedures (Comparison
         of Part B and C).
        [cir] Resolution meeting.  303.442(a).
        [cir] Written settlement   303.442(d).
         agreement.
     State
     dispute resolution options:
        [cir] Mediation..........  303.430(b).
        [cir] Status of child      303.430(e).
         during pendency of a due
         process complaint.
DRESSINGS; COLOSTOMY BAGS
 (Changing of):
     Health      303.16(b)(1).
     services (Definition).

[[Page 243]]

 
DUE PROCESS HEARING PROCEDURES--
 Options:
     Part B      303.430(d)(2).
     procedures.
     Part C      303.430(d)(1).
     procedures.
DUE PROCESS PROCEDURES--Part B:
     Adopting    303.430(d)(2).
     Part B procedures (By lead
     agency).
     Civil       303.448.
     action.
     Due         303.441.
     process complaint.
     Filing a    303.440.
     due process complaint.
     Finality    303.446.
     of decision; appeal;
     impartial review.
     Hearing     303.445.
     decisions.
     Hearing     303.444.
     rights.
     Impartial   303.443.
     due process hearing.
     Resolution  303.442.
     process.
     State       303.449.
     enforcement mechanisms.
     Timelines   303.447.
     and convenience of hearings
     and reviews.
DUE PROCESS PROCEDURES-Part C:
                 303.435.
     Appointment of impartial
     hearing officer.
        [cir] Definition of        303.435(b).
         ``impartial''.
        [cir] Qualifications and   303.435(a).
         duties.
     Civil       303.438.
     action.
                 303.437.
     Convenience of hearings and
     timelines.
     Parental    303.436.
     rights in due process
     hearings.
     See         303.430(e).
     ``Status of child during
     pendency of a due process
     hearing request''.
     See also
     ``Procedural Safeguards''.
EARLY HEAD START:
     Child find  303.302(c)(1)(ii)(E).
     Coordination.
     Content of  303.344(h)(1)(ii).
     an individualized family
     service plan (IFSP)
     (Transition from Part C).
                 303.210(a).
     Coordination with Head Start
     and Early Head Start, early
     education, and child care
     programs.
                 303.118(a)(3).
     Comprehensive system of
     personnel development (CSPD)
     (Transition from Part C).
EARLY HEARING DETECTION AND
 INTERVENTION (EHDI):
     Child find  303.302(c)(1)(ii)(J).
     system.
EARLY INTERVENTION SERVICES:
    
     Definitions:
        [cir] General............  303.13(a).
        [cir] Other services.....  303.13(d).
        [cir] Qualified personnel  303.13(c).
        [cir] Types of Early       303.13(b).
         Intervention services.
EARLY INTERVENTION SERVICE (EIS)
 PROGRAM:
     Definition  303.11.
     State       303.700.
     monitoring and enforcement.
     State       303.701.
     performance plans and data
     collection.
     State use   303.702.
     of targets and reporting.
EARLY INTERVENTION SERVICE (EIS)
 PROVIDER:
                 303.2(b)(1)(i).
     Applicability of this part.
     Definition  303.12(a).
                 303.403(c).
     Participating agency
     (Definition).
                 303.343(a)(1)(vi).
     Requirement to attend
     individualized family
     service plan (IFSP) meetings.
                 303.12(b), 303.346.
     Responsibility and
     accountability.
     State       303.700(a)(3).
     ability to impose funding
     conditions (State's
     monitoring and enforcement).
     State       303.430.
     dispute resolution options.
     State       303.120.
     requirement to monitor.
EARLY PERIODIC DIAGNOSIS,
 SCREENING, AND TREATMENT
 (EPSDT):
     Child find  303.302 (c)(1)(ii)(C).
     (Coordination).
EDUCATIONAL SERVICE AGENCY:
     Local       303.23(b)(1).
     educational agency (LEA)
     (Definition).
EHDI--Early Hearing Detection and  303.302(c)(1)(ii)(J).
 Intervention.
ELIGIBLE RECIPIENTS OF AN AWARD..  303.2.
ELIGIBILITY (CHILD):
     See
     ``Child Eligibility''
ELIGIBILITY (STATE):

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                 303.101.
     Requirements for a grant.
ENVIRONMENTAL or BIOLOGICAL
 FACTORS:
     At-risk     303.5.
     infant or toddler
     (Definition).
EPSDT:
     See
     ``Early Periodic Screening,
     Diagnosis, and Treatment''.
EQUITABLE ACCESS TO, AND EQUAL     303.212(a).
 PARTICIPATION IN, THE PART C
 STATEWIDE SYSTEM.
ESTABLISHING FINANCIAL             303.511.
 RESPONSIBILITY and METHODS OF
 ENSURING SERVICES.
EVALUATION, ASSESSMENT, and        303.113.
 NONDISCRIMINATORY PROCEDURES.
EVALUATION (AND ASSESSMENT) (A-
 E):
     Assessment  303.321(c)(1).
     of child (Definition).
     Assessment  303.321(c)(2).
     of family (Definition).
                 303.401(b)(2).
     Confidentiality procedures.
     Consent     303.420(a)(2).
     before evaluations and
     assessments are conducted.
                 303.322.
     Determination that a child
     is not eligible.
     Due         303.441(e)(1)(iii).
     process complaint.
     Early
     Intervention services:
        [cir] Qualified personnel  303.13(c)(6).
         (Pediatricians, etc, for
         diagnosis and
         evaluation).
        [cir] Types of services..  303.13(b)(1)(ii)(A), (b)(2)(ii),
                                    (b)(5), (b)(9)(i), (b)(17)(i).
     Evaluation  303.321(a)(2)(i).
     (Definition).
EVALUATION (AND ASSESSMENT) (F-
 L):
     Family      303.321(c)(2), 303.344(b).
     assessment.
     Family      303.344(b).
     information.
     Filing a    303.440(a)(1).
     due process complaint (Part
     B).
     Financial   303.511(a).
     responsibility.
     Functions   303.521(b)(2).
     not subject to fees.
     Hearing     303.445(a)(2)(i)-(ii).
     officer decision.
     Hearing     303.444(b).
     rights.
    
     Individualized family
     service plan (IFSP):
        [cir] Annual meeting to    303.342(c).
         evaluate the
         individualized family
         service plan (IFSP).
        [cir] Child's status.....  303.344(a).
        [cir] Definition.........  303.20(a).
     Initial     303.343(a)(1)(v).
     and annual individualized
     family service plan (IFSP)
     Team meetings.
EVALUATION (AND ASSESSMENT) (M-
 PO):
    
     Multidisciplinary:
        [cir] Definition.........  303.24.
        [cir] Early Intervention   303.12(b)(1).
         service (EIS) provider.
        [cir] Evaluation and       303.321(a)(1)(i).
         assessment of the child.
        [cir] Statewide system...  303.113(a)(1).
     Native      303.25(a)(2).
     language (Definition).
    
     Nondiscriminatory:
        [cir] Evaluation of the    303.321(a)(4).
         child (No single
         procedure used).
        [cir] Nondiscriminatory    303.113.
         procedures (Title).
     Parental    303.420(a)(2), (b)(1)-(b)(2), (c)(1).
     consent.
     Payor of    303.510(b).
     last resort (Interim
     payments).
     Post-       303.310.
     referral timeline (45 days).
        [cir] Exceptional          303.310(b)(1).
         circumstances (Not
         within 45 days).
EVALUATION (AND ASSESSMENT) (PR-
 Z):
     Prior       303.421(a).
     written notice.
     Prior       303.421(c).
     written notice (Must be in
     native language).
     Provision   303.345.
     of Services before
     evaluations and assessments
     are completed.
     Public      303.301(b)(2).
     awareness program.
     Referral    303.303.
     procedures.
     Screening   303.320(a), (c).
     procedures.
     Service     303.34(b)(3).
     coordination services (Case
     management).
     Timelines   303.310(a).
     (45 days).

[[Page 245]]

 
        [cir] Exception to 45-day  303.310(b).
         timeline.
     Transition  303.344(h)(2)(iii).
     from Part C services.
     See also
     ``Assessment''.
EVALUATION, ASSESSMENT, AND        303.113.
 NONDISCRIMINATORY PROCEDURES.
EXCEPTION(S):
     Consent     303.414(b).
     prior to disclosure (Except
     to lead agency and Early
     Intervention service (EIS)
     providers).
     Filing a    303.440(a)(2).
     due process complaint.
     Post-       303.310(b)(1).
     referral timeline
     (Exceptional circumstances).
     Timeline    303.443(f).
     for requesting a hearing
     (Exceptions).
     Ward of     303.37(b).
     the State (Definition).
FAMILY; FAMILIES (A-E):
     Ability to  303.521(a)(3).
     pay (State's definition).
     Assessment  303.321(a)(1)(ii)(B).
     of the family.
                 303.112.
     Availability of Early
     Intervention services.
                 303.118(b)(3).
     Comprehensive system of
     personnel development (CSPD)
     (Training personnel to
     support families).
     Due         303.435(a)(1), 303.440(a)(1).
     process.
     Early       303.13(a)(3)-(a)(4), (b)(1)(ii)(E),
     Intervention services.         (b)(3), (b)(10)(iii), (b)(10)(iv),
                                    (b)(13)(iii)-(b)(13)(v),
                                    (b)(14)(iii), (b)(16).
     Evaluation
     and assessment of child and
     family:
        [cir] In native language.  303.321(a)(5)-(6).
        [cir] Post-referral        303.310(a).
         timeline.
FAMILY; FAMILIES (F-H):
     Family-     303.113(a)(2), (b).
     directed identification of
     needs.
     Family      303.13(c)(2).
     therapists.
     Family      303.13(b)(3).
     training, counseling, and
     home visits.
     Family      303.211(b)(7), 303.302(c)(1)(ii)(I).
     Violence Prevention and
     Services Act.
     Homeless    303.303(c)(10).
     family shelters (Primary
     referral sources).
FAMILY; FAMILIES (INDIVIDUALIZED
 FAMILY SERVICE PLAN (IFSP)):
     Content of  303.344(b), (c).
     an individualized family
     service plan (IFSP) (Family
     information).
    
     Individualized family
     service plan (IFSP) Team
     meetings:
        [cir] Accessibility and    303.342(d)(1)(i), (d)(2).
         convenience.
        [cir] Advocate outside     303.343(a)(1)(iii).
         the family.
        [cir] Native language      303.342(d)(1)(ii).
         (Meeting conducted in).
        [cir] Other family         303.343(a)(1)(ii).
         members as requested by
         parent.
        [cir] Written notice to    303.342(d)(2).
         family.
FAMILY; FAMILIES (IN-R):
     Interim     303.345.
     individualized family
     service plan (IFSP).
     Parents     303.420(d)(1).
     determine whether to accept
     or decline service (For
     other family members).
     Payor of    303.510(b).
     last resort (Interim
     payments).
     Permissive  303.501(a)-(b).
     use of funds by lead agency.
     Prior       303.421(a).
     written notice.
     Private     303.520(b)(2)(i)-(b)(2)(iii).
     insurance.
FAMILY; FAMILIES (SE-ST):
     Service
     coordination services (Case
     management):
        [cir] Specific service     303.34(b)(1), (b)(5).
         coordination services.
        [cir] Definition.........  303.34(a).
     State       303.432(b).
     complaint procedures.
     State       303.101(a)(1)(i)-(a)(1)(ii).
     eligibility requirements
     (Assurance regarding Early
     Intervention services).
     State
     option to make Early
     Intervention services
     available for children three
     and older:
        [cir] Possible costs to    303.211(b)(1)(ii)(C).
         families.
        [cir] Referral of a child  303.211(b)(7).
         (Substantiated case of
         trauma due to family
         violence).
FAMILY; FAMILIES (SU-Z):
     Surrogate   303.422(d).
     parents.

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     Traditionally underserved
     groups:
        [cir] Access to            303.227(b).
         culturally competent
         services.
        [cir] Minority, low-       303.227(a).
         income, homeless, and
         rural families and wards
         of the State.
     Transition
     to preschool:
        [cir] Conference to        303.209(c).
         discuss services.
        [cir] Notification of      303.209(b).
         local educational agency
         (LEA).
        [cir] Transition plan....  303.209(d)(3).
FAMILY ASSESSMENT:
     Assessment  303.321(c)(2).
     of the family (Definition).
     Content of  303.344(b).
     an individualized family
     service plan (IFSP) (Family
     information).
     Evaluation  303.321(c).
     and assessment of child and
     family.
     Post-       303.310(a).
     referral timeline.
FAMILY-DIRECTED:
     Assessment  303.12(b)(1).
     of resources.
                 303.113(a)(2), (b).
     Identification of needs.
FAMILY EDUCATIONAL RIGHTS AND
 PRIVACY ACT (FERPA):
                 303.401(b)(1).
     Confidentiality procedures.
FAMILY THERAPISTS:
     Qualified   303.13(c)(2).
     personnel (Early
     Intervention services).
FAMILY TRAINING, COUNSELING, AND
 HOME VISITS:
     Early       303.13(b)(3).
     Intervention services
     (Definition).
FAMILY VIOLENCE PREVENTION AND     303.211(b)(7), 303.302(c)(1)(ii)(A).
 SERVICES ACT.
FAPE
     See ``Free
     Appropriate Public
     Education.''
FEDERAL COURT:
     Civil       303.438.
     action (Part C).
     Impartial   303.443(c)(1)(ii).
     hearing officer.
     Mediation   303.431(b)(7).
     (Discussions not used in
     court).
     State       303.228(c)(2).
     application (Modifications
     to).
FEDERAL FUNDS:
                 303.221.
     Expenditure of funds.
     Fiscal      303.226.
     control.
     Indirect    303.225(c)(2).
     costs (Cognizant Federal
     agency).
     Proceeds    303.520(d).
     from public or private
     insurance.
                 303.225(a).
     Requirement to supplement
     and not supplant.
FEDERAL LAW(S):
    1.  Alaska   303.19(b).
     Native Claims Settlement Act.
    2.           303.448(e).
     Americans With Disabilities
     Act (ADA) of 1990.
    3.  Child
     Abuse Prevention and
     Treatment Act (CAPTA), see
     CAPTA.
    4.           303.401(a), (c)(2).
     Confidentiality.
    5.           303.302(c)(1)(ii)(D).
     Developmental Disabilities
     Assistance and Bill of
     Rights Act.
    6.  Early    303.13(a)(3).
     Intervention services
     (Services at no cost unless
     Federal or State law
     requires fees).
    7.  Family   303.401(b).
     Educational Rights and
     Privacy Act (FERPA).
    8.  Family   303.211(b)(7), 303.302(c)(1)(ii)(A).
     Violence Prevention &
     Services Act.
    9.           303.19(c).
     Federally Recognized Indian
     Tribe List Act of 1994
     (section 104).
    10.  Head
     Start Act, see Head Start.
    11.  Indian  303.731(a)(1).
     Self-Determination and
     Education Assistance Act.
    12.          303.4.
     Individuals with
     Disabilities Education Act
     (IDEA).
    13.          303.448(e).
     Rehabilitation Act of 1973
     (title V).
    14.  Social
     Security Act (MCHB/Title V,
     SSI/XVI, and Medicaid/Title
     XIX,), see Social Security
     Act.
    15.  State   303.228(c)(3).
     application (Modifications).
FEDERALLY RECOGNIZED INDIAN TRIBE  303.19(c).
 LIST ACT OF 1994.
FEDERAL REGULATIONS:
     Amendment   303.228(c)(1).
     to Act or a Federal
     regulation.
     Knowledge   303.443(c)(1)(ii).
     of impartial hearing officer.

[[Page 247]]

 
FEES (A-R):
     Ability to  303.521(a)(3).
     pay (State's definition).
     Assurance   303.521(a)(4)(i).
     (Fees will not be charged
     for services entitled to at
     no cost).
     Co-         303.521(a)(6).
     payments or deductible
     amounts.
     Cost        303.521(a)(1).
     participation fees.
     Fees        303.409.
     (Under confidentiality).
     Functions   303.521(b).
     not subject to fees.
     Income and  303.521(a)(3).
     family expenses (State's
     definition).
     Inability   303.521(a)(3).
     to pay--State's definition.
FEES (S-Z):
     State       303.211(b)(1)(ii)(C), (d).
     option to make services
     available to children ages
     three and older.
     Sliding
     fees (Schedule of):
        [cir] Early Intervention   303.13(a)(3).
         services.
        [cir] System of payments   303.521(a)(1).
         and fees.
     State's     303.521(a)(3).
     definition of ability to pay.
     State       303.203(b).
     system of payments and fees.
     See also
     ``INSURANCE.''
FERPA (Family Educational Rights   303.401(b)(1).
 and Privacy Act).
FETAL ALCOHOL SYNDROME:
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition.
FILING (FILED) REQUIREMENTS:
     Adoption    303.432(a)(1).
     of State complaint
     procedures.
     Civil       303.448(e).
     action (Rule of
     construction).
     Due         303.441(a)(2), (d)(4).
     process complaint.
     Due         303.430(d)(1)(ii).
     process hearing procedures.
     Filing a    303.430(d)(1)(ii), 303.440(a)(2).
     due process complaint.
     Filing a    303.434(d).
     State complaint.
     Filing      303.235.
     requirements regarding a
     State application.
     Impartial   303.443(f).
     due process hearing
     (Exception to timeline).
     Mediation.  303.431(a).
     Resolution  303.442(b)(3).
     process.
     Separate    303.445(c).
     due process complaint.
FISCAL CONTROL (AND FUND           303.226.
 ACCOUNTING PROCEDURES).
FORMULA:
     For State   303.730.
     allocations.
FOSTER CARE:
     Child
     find:
        [cir] Scope..............  303.302(b)(1)(ii).
        [cir] Coordination.......  303.302(c)(1)(ii)(G).
                 303.405(c).
     Confidentiality (Access
     rights).
     Council     303.601(a)(12).
     (Composition).
     Primary     303.303(c)(9).
     referral sources.
     Purpose of  303.1(d).
     Early Intervention Program.
FOSTER PARENT:
     Parent      303.27(a)(2).
     (Definition).
     Ward of     303.37(b).
     the State (Exception).
FREE APPROPRIATE PUBLIC EDUCATION
 (FAPE):
     Definition  303.15.
     Permissive  303.501(c)-(d).
     use of funds by lead agency.
     State       303.211(e)(1)-(2).
     option to make services
     available to children ages
     three and older.
     States      303.521(c).
     with Free Appropriate Public
     Education (FAPE) mandates to
     serve children under age
     three.
FREQUENCY and INTENSITY:
     Content of  303.344(d)(1)(i).
     an individualized family
     service plan (IFSP).
     Definition  303.344(d)(2)(i).
FUNCTIONS NOT SUBJECT TO FEES:
                 303.521(b)(4).
     Administrative and
     coordinative activities.
     Child find  303.521(b)(1).
     requirements.
     Evaluation  303.521(b)(2).
     and assessment.
     Service     303.521(b)(3).
     coordination services.
FUNDING SOURCES:
     Service     303.34(b)(9).
     coordination services.
FUNDS (A-D):

[[Page 248]]

 
                 303.104(a).
     Acquisition of equipment and
     construction or alteration
     of facilities.
     Allocation
     of funds (Outlying areas):
        [cir] Consolidation of     303.730(b).
         funds.
        [cir] Reservation of       303.730(a).
         funds.
     Control of  303.223.
     funds and property.
     Council:
        [cir] Funds for            303.602(b)(3).
         interpreters.
        [cir] Use of funds by....  303.603.
                 303.201.
     Designation of lead agency.
                 303.205.
     Description of use of funds.
     Direct      303.205(d).
     services.
FUNDS (E-FA):
     Early       303.12(a).
     Intervention service
     provider.
    
     Enforcement (By the
     Secretary):
        [cir] Needs intervention   303.704(b)(2)(iii).
         (Seeks to recover funds).
        [cir] Needs substantial    303.704(c)(1).
         intervention.
        [cir] Opportunity for      303.705(a).
         hearing.
        [cir] Suspension (Of       303.705(b).
         payments).
        [cir] Withholding funds..  303.705.
                 303.221.
     Expenditure of (Federal)
     funds.
     Family      303.521(d).
     fees.
FUNDS (FE-O):
     Federal     303.225(a)(2).
     funds to supplement.
     Fiscal      303.226.
     control.
     Funds       303.521(a)(6), (d).
     under a State's system of
     payments.
     Inability   303.520(e), 303.521(a)(3).
     to pay.
     Lead        303.22.
     agency (Receives Federal
     funds to administer Part C).
     Non-        303.510(a).
     substitution of funds (Payor
     of last resort).
     Outlying    303.730.
     areas (Formula for State
     allocations).
FUNDS (PA-R):
     Payments
     to Indians:
        [cir] Prohibited uses of   303.731(f).
         funds.
        [cir] Use of funds.......  303.731(d)(1).
     Payor of    303.510(a).
     last resort (Non-
     substitution of funds).
     Permissive  303.501.
     use of funds.
     Proceeds    303.520(d).
     or funds from public or
     private insurance.
                 303.225(a)(1).
     Prohibition against
     commingling.
                 303.225(a)(2).
     Prohibition against
     supplanting.
                 303.733.
     Reallotment of (State) funds.
                 303.122.
     Reimbursement procedures.
     Reports     303.224.
     and records.
                 303.730(a).
     Reservation of funds for
     outlying areas.
FUNDS (S-Z)
     State       303.732(a), (c)(2), (d).
     allotments.
     State       303.102.
     conformity with Part C.
     State       303.36(b).
     educational agency (SEA).
     State       303.700(a)(3), 303.704(b)(2)(iii),
     monitoring and enforcement.    303.704(c)(1), 300.705(a)-(b).
     State       303.211(d).
     option to make services
     available to children ages
     three and older (Available
     funds).
     States      303.521(c).
     with Free Appropriate Public
     Education (FAPE) mandates.
     State's     303.521(a)(3), (a)(4)(ii).
     definition (Inability to
     pay).
     Suspension  303.705(b).
     (Of payments).
     System of   303.521(a)(6), (c), (d).
     payments and fees.
     Unable to   303.520(d), 303.520(c),
     pay.                           303.521(a)(6).
     Use of      303.510(a).
     funds (Payor of last resort).
                 303.705.
     Withholding funds.
     See also
     ``Grants'' and ``Payments''.
FUNDS (PART B):

[[Page 249]]

 
     States      303.521(c).
     with Free Appropriate Public
     Education (FAPE) mandates or
     that use Part B funds for
     children under age three.
FUNDS (PART C):
     Early       303.12(a).
     Intervention service
     provider.
     State       303.102.
     conformity with Part C.
    
     Withholding funds:
        [cir] Opportunity for a    303.705(a).
         hearing.
        [cir] Suspension.........  303.705(b).
GENETIC or CONGENITAL DISORDERS:
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition
     (Infant or toddler with a
     disability).
GOVERNOR; GOVERNOR'S DESIGNEE:
     Council:
        [cir] Appointed by         303.600(b).
         Governor.
        [cir] Chairperson........  303.600(c).
        [cir] Composition........  303.601(b)-(c).
        [cir] Functions (Annual    303.604(c).
         report to Governor).
        [cir] Use of funds by      303.603(a).
         Council (Approval).
     Financial
     responsibility and methods
     of ensuring services:
        [cir] Other methods        303.511(b)(3).
         determined by Governor.
        [cir] Procedures for       303.511(c)(1).
         resolving disputes.
     Lead
     agency:
        [cir] Designated by        303.22.
         Governor.
        [cir] Role in              303.120.
         supervision, etc..
     State       303.36(a).
     educational agency (SEA).
GRANDPARENT:
     Parent      303.27(a)(4).
     (Definition).
GRANTS; GRANTS TO STATES:
                 303.730(b).
     Consolidation of grants
     (Outlying areas).
                 303.734.
     Reservation for State
     incentive grants.
                 303.100.
     Secretary's authority to
     make grants.
     See also
     ``Award'' and ``Payments to
     Indians''.
GUARDIAN:
     Parent      303.27(a)(3).
     (Definition).
GUARDIANSHIP:
                 303.405(c).
     Confidentiality (Access
     rights).
HEAD START; HEAD START ACT:
     Child find  303.302(c)(1)(ii)(E).
     system (Coordination).
     Council     303.601(a)(8).
     (Composition).
                 303.118(a)(3), (b)(4).
     Comprehensive system of
     personnel development (CSPD)
     (Training to coordinate
     transition services and
     personnel).
     Early Head
     Start:
        [cir] Coordination with..  303.210(a).
        [cir] Content of an        303.344(h)(1)(ii).
         individualized family
         service plan (IFSP)
         (Transition from Part C).
     Head Start  303.210(a), 303.302 (c)(1)(ii)(E),
     Act (References).              303.601(a)(8).
HEALTH INSURANCE.................  303.520(b)(2), 303.601 (a)(10).
HEALTH SERVICES:
     Definition  303.16.
     Early       303.13(b)(4).
     Intervention services
     (Definition).
     Interim     303.510(b).
     payments--Reimbursement
     (Payor of last resort).
     Non-        303.16(c).
     covered services and devices.
     Services    303.16(b).
     included.
HEALTH STATUS (MEDICAL HISTORY):
     Evaluation  303.321(a)(3)(i).
     and assessment.
     Content of  303.344(a).
     an individualized family
     service plan (IFSP)
     (Information about child's
     status).
HEARING AID:
     Health      303.16(c)(1)(iii)(B).
     services (Nothing prevents
     routinely checking).
HEARING IMPAIRED; HEARING
 IMPAIRMENTS:
     Special     303.13(c)(11).
     educators including teachers
     of children with hearing
     impairments.

[[Page 250]]

 
HEARING LOSS:
     Audiology   303.13(b)(2)(ii), (b)(2)(v).
     services.
HEARING OFFICER:
                 303.443(c), 303.435.
     Appointment of.
     Dismissal   303.442(b)(4).
     of complaint.
     Duties and  303.435(a), 303.443(c).
     qualifications.
     Hearing     303.445.
     decisions.
     Impartial   303.435(b), 303.443(c).
     (Definition).
                 303.441(d).
     Sufficiency of complaint.
HEART AILMENTS:
     Health      303.16(c)(1)(ii).
     services (Non-covered
     services).
HISTORY OF ABUSE OR NEGLECT:
     At-risk     303.5.
     infant or toddler
     (Definition).
HISTORICALLY UNDERREPRESENTED
 POPULATIONS:
     Purpose of  303.1(d).
     Early Intervention program.
     See
     ``Inner-city,'' ``Low-
     income,'' ``Minority,'' and
     ``Rural'' (Children), and
     ``Foster care.''
     See also    303.227.
     ``Traditionally underserved
     groups.''.
HOMELESS CHILDREN:
     Assurances  303.101(a)(1)(ii).
     regarding Early Intervention
     services and a statewide
     system.
     Child find  303.302(b)(1)(ii).
     system.
     Council     303.601(a)(11).
     (Composition)
     (Representative designated
     by Office of the
     Coordination and Education
     of Homeless Children and
     Youth).
     Definition  303.17.
     Due         303.441(b)(4).
     process complaint (Content).
                 303.227(a).
     Traditionally underserved
     groups.
HOMELESS FAMILY SHELTERS:
     Primary     303.303(c)(10).
     referral sources.
HOSPITALS:
     Primary     303.303(c)(1).
     referral sources.
     Public      303.301(a)(1)(ii).
     awareness program.
HOSPITALIZATION (For management
 of congenital heart ailments):
     Non-        303.16(c)(1)(ii).
     covered health services.
HYDROCEPHALUS (Shunting of):
     Non-        303.16(c)(1)(i).
     covered health services.
IDEA (INDIVIDUALS WITH
 DISABILITIES EDUCATION ACT):
     Act         303.4.
     (Definition).
IEP (INDIVIDUALIZED EDUCATION
 PROGRAM):
     Free        303.15(d).
     appropriate public education
     (FAPE) (Definition).
IEU (INTERMEDIATE EDUCATIONAL
 UNIT):
     Local       303.23(b)(3).
     educational agency (LEA)
     (Definition).
IFSP (INDIVIDUALIZED FAMILY
 SERVICE PLAN) (A-F):
     Acceptable  303.342(b)(2).
     time to meet for parents and
     others.
                 303.346.
     Accountability and
     responsibility.
     Annual      303.342(c).
     meeting to evaluate.
     Component   303.114.
     of statewide system.
     Content of
     an individualized family
     service plan (IFSP)
        [cir] See ``IFSP
         (Individualized family
         service plan) Content''.
     Dates and   303.344(f).
     duration of services.
     Definition  303.20.
                 303.342(a).
     Development of.
     Early       303.344(d).
     Intervention services.
        [cir] See also ``IFSP
         (Individualized family
         service plan) Content''.
                 303.344(d)(4).
     Educational component (For
     children at least three
     years old).
     Family      303.344(b).
     information.
IFSP (INDIVIDUALIZED FAMILY
 SERVICE PLAN) (I-N):
    
     Individualized family
     service plan (IFSP) Team.
        [cir] See ``IFSP
         (Individualized family
         service plan) Team''.
                 303.344(a).
     Information about child's
     status.

[[Page 251]]

 
     Initial     303.342(a).
     individualized family
     service plan (IFSP) Meeting.
     Interim     303.345.
     individualized family
     service plan (IFSP).
                 303.344(d)(1)(ii).
     Justification (Natural
     environments)...
     Lead        303.340.
     agency responsibility.
     Location    303.344(d)(1)(ii)-(iii), (d)(3).
     of services.
    
     Meeting(s):
        [cir] Accessibility and    303.342(d).
         convenience of.
        [cir] Annual meeting to    303.342(c).
         evaluate individualized
         family service plan
         (IFSP).
        [cir] To develop initial   303.342(a).
         individualized family
         service plan (IFSP).
     Natural     303.344(d)(1)(ii).
     environments.
        [cir] See also ``Natural
         Environments''.
     Numeracy    303.344(d)(4).
     skills.
IFSP (INDIVIDUALIZED FAMILY
 SERVICE PLAN) (O-Q):
     Other       303.344(e).
     services.
     Outcomes    303.344(c).
     or results.
        [cir] See also
         ``Outcomes''.
     Parental    303.342(e).
     consent before providing
     services.
        [cir] Services before      303.345(a).
         evaluation completed.
     Periodic    303.342(b).
     review.
     Pre-        303.344(d)(4).
     literacy, language, and
     numeracy skills.
     Procedures  303.342.
     for individualized family
     service plan (IFSP)
     development, review, and
     evaluation.
IFSP (INDIVIDUALIZED FAMILY
 SERVICE PLAN) (R-Z):
                 303.346.
     Responsibility and
     accountability.
     Results or  303.344(c).
     outcomes.
     Review and  303.342(b).
     revision (Periodic).
     Service     303.344(g).
     coordinator.
     Services    303.345.
     before evaluation completed.
     Statewide   303.114.
     system component.
     Transition  303.344(h).
     from Part C services.
IFSP (INDIVIDUALIZED FAMILY
 SERVICE PLAN) CONTENT (A-E):
     Child's     303.344(a).
     status (Information about).
     Dates and   303.344(f).
     duration of services.
     Early
     Intervention services:
        [cir] Definition.........  303.13(a).
        [cir] Duration,            303.344(d)(1)(i).
         frequency, intensity,
         length, and method of
         services.
        [cir] Educational          303.344(d)(4).
         component that promotes
         school readiness, and
         incorporates pre-
         literacy, language, and
         numeracy skills.
        [cir] Location of          303.344(d)(1)(iii), (d)(3).
         services.
        [cir] Payment              303.344(d)(1)(iv).
         arrangements, if any.
        [cir] Natural              303.344(d)(1)(ii).
         environments, including
         a justification, if
         applicable.
        [cir] See also ``Natural
         Environments''.
IFSP (INDIVIDUALIZED FAMILY
 SERVICE PLAN) CONTENT (F-Z):
     Family      303.344(b).
     information.
                 303.344(a).
     Information about child's
     status.
     Other       303.344(e).
     services.
     Results or  303.344(c).
     outcomes.
     Service     303.344(g).
     coordinator.
     Transition  303.344(h).
     from Part C services.
IFSP (INDIVIDUALIZED FAMILY
 SERVICE PLAN) TEAM:
                 303.343(a)(1).
     Composition (Meetings and
     periodic reviews).
     Due         303.441(e)(1)(ii).
     process complaint (Other
     options considered by
     individualized family
     service plan (IFSP) Team).
     Early       303.126.
     Intervention services in
     natural environments.
     IFSP Team   303.343.
     meetings and periodic
     reviews.
     Initial     303.343(a).
     and annual individualized
     family service plan (IFSP)
     Team meetings.
                 303.24(b).
     Multidisciplinary.

[[Page 252]]

 
     Natural     303.344(d)(1)(ii)(B)(1),
     environments.                  (d)(1)(ii)(B)(3).
     Resolution  303.442(a)(4).
     meeting.
     Transition  303.344(h)(2)(iv).
     from Part C services.
ILLEGAL SUBSTANCE ABUSE:
     At-risk     303.5.
     infant or toddler.
     Referral    303.303(b)(2).
     of specific at-risk infants
     and toddlers.
IMMUNIZATIONS AND REGULAR WELL-
 BABY CARE:
     Non-        303.16(c)(3).
     covered medical-health
     services.
IMPARTIAL:
                 303.435, 303.443(c).
     Appointment of impartial
     hearing officer.
     Definition  303.435(b)(1), 303.443(c).
     Hearing     303.233(c).
     procedures (Impartial
     proceeding).
     Mediator    303.431(b)(1)(iii), (b)(2)(ii), (c).
     (Qualified and impartial).
INABILITY TO PAY:
     Assurance   303.521(a)(4)(ii).
     that ``inability to pay''
     will not delay or deny
     services if parent or family
     meets State's definition.
     Lack of     303.520(c).
     consent (And inability to
     pay) may not delay or deny
     services.
     Private     303.520(c).
     insurance.
     State's     303.521(a)(3).
     definition.
     System of   303.521(a)(3)-(a)(4).
     payments and fees.
INBORN ERRORS OF METABOLISM:
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition
     (Infant or toddler with a
     disability).
INDIAN CHILDREN:
     Payments    303.731(a)(1), (d)(1).
     to Indians.
     See
     ``Indian infants and
     toddlers''.
INDIAN; INDIAN TRIBE:
     Definition  303.19.
     See
     ``Tribe; Tribal
     organization''.
INDIAN INFANTS AND TODDLERS:
     Assurances  303.101(a)(1)(i).
     regarding Early Intervention
     services.
                 303.112(a).
     Availability of Early
     Intervention services.
     Scope of    303.302(b)(1)(i).
     child find.
INDIAN SELF-DETERMINATION AND      303.731(a)(1).
 EDUCATION ASSISTANCE ACT.
INDIVIDUALIZED FAMILY SERVICE
 PLAN (IFSP):
     See
     ``IFSP''; ``IFSP Content'';
     ``IFSP Team.''
INDIVIDUALS WITH DISABILITIES
 EDUCATION ACT (IDEA):
     Act         303.4.
     (Definition).
INFANT(S) and/or TODDLER(S):
     Annual      303.721(a).
     report of children served.
     At-risk     303.5.
     infant or toddler
     (Definition).
     Authorized  303.605(b).
     activities of the Council.
     Definition  303.732(d)(2).
     (In State allotments).
     Permissive  303.501(e).
     use of funds.
     Payments    303.731(b), (e).
     to Indians.
     Primary     303.303(c)(3).
     referral sources.
     Public      303.301(a)(1)(ii).
     awareness program.
                 303.734(b)(1).
     Reservation for State
     incentive grants.
     Screening   303.320(b)(1).
     procedures.
INFANT OR TODDLER WITH A
 DISABILITY:
     Definition  303.21.
INFECTION; CONGENITAL INFECTIONS:
     At-risk     303.5.
     infant or toddler
     (Definition).
     Infant or   303.21(a)(2)(ii).
     toddler with a disability
     (Definition).
INFORMED CLINICAL OPINION:
     Procedures  303.321(a)(3)(ii).
     for assessment of child.
INFORMED WRITTEN CONSENT:
                 303.342(e).
     Individualized family
     service plan (IFSP)
     (Informed written consent
     before providing services).
     State       303.211(b)(5).
     option to make services
     available to children ages
     three and older.
     See also
     ``Consent''.

[[Page 253]]

 
INNER-CITY:
                 303.118(b)(1).
     Comprehensive system of
     personnel development (CSPD)
     (Training personnel to work
     in rural and inner-city
     areas).
     Purpose of  303.1(d).
     Early Intervention program
     (Enhance capacity to meet
     needs of inner-city
     children).
INSURANCE (A-E):
     Consent
     regarding:
        [cir] Private insurance..  303.520(b)(1), (b)(2).
        [cir] Public insurance...  303.520(a)(3)(i).
     Co-
     payments.
                 303.601(a)(10).
     Composition of Council
     (Agency responsible for
     State regulation of health
     insurance).
                 303.510(c).
     Construction clause (Non-
     reduction of Medicaid
     benefits).
     Cost        303.521(a)(1).
     participation fees or
     sliding fees.
     Costs to    303.520(a)(4), 303.520(b)(1)(ii),
     parents (Use of private        303.520(b)(1)(ii)-(b)(1)(iii).
     insurance to pay for Part C
     services).
     Deductible  303.521(a)(6).
     amounts or co-payments.
     Enrollment  303.520(a)(2)(i).
     in public insurance or
     benefits program (May not
     require parent to enroll).
INSURANCE (F-O):
     Family or
     parent funds:
        [cir] Not treated as       303.520(d)(1).
         ``program income''.
        [cir] Used for Part C      303.520(d)(2).
         services.
     Funds       303.520(e).
     received under a State's
     system of payments.
     Health      303.520(b)(2), 303.601(a)(10).
     insurance.
     Lack of     303.520(b).
     consent may not delay or
     deny services.
     Medicaid    303.510(c).
     (Payor of last resort).
INSURANCE (P-PR):
     Parental    303.420(a)(4).
     consent and ability to
     decline services.
     Parent or   303.520(d)(1).
     family funds to State not
     considered ``program
     income''.
     Policies    303.520(a), 303.520(b).
     related to use of insurance
     to pay for services.
     Private     303.520(b).
     insurance.
     Proceeds
     from public or private
     insurance:
        [cir] Not treated as       303.520(d)(1).
         income.
        [cir] Reimbursements       303.520(d)(2).
         (Medicaid, etc.) for
         Early Intervention
         services are not State
         or local funds.
INSURANCE (PU-Z):
     Public      303.520(a).
     insurance.
     Purpose of  303.1(b).
     Early Intervention program.
     Schedule
     of sliding fees:
        [cir] Early Intervention   303.13(a)(3).
         services (Definition).
        [cir] System of payments   303.521(a)(1).
         and fees.
     State,      303.521(a).
     local, or private programs
     of insurance.
     State       303.520(b)(2).
     statute regarding private
     health insurance (Impact on
     consent requirements).
     System of   303.520(a), 303.521(a).
     payments and fees.
     See also
     ``Fees'' and ``Inability to
     pay''.
     Use of      303.520(a).
     public insurance to pay for
     services.
     Written     303.520(a)(3).
     notification (prior to use
     of public insurance).
     See also
     ``Fees'' and ``Inability to
     pay''.
INTERAGENCY AGREEMENTS:
     Functions   303.604(a)(3).
     of the Council (Promotion of
     methods for intra-agency and
     interagency collaboration).
     Lead        303.120(f).
     agency role (In funding,
     inter-agency agreements,
     etc.).
     Transition  303.209(a)(3).
     to preschool.
INTERAGENCY COORDINATION:
     See
     ``Coordination.''
INTERIM INDIVIDUALIZED FAMILY
 SERVICE PLAN (IFSP):
     Services    303.345.
     before evaluations and
     assessments completed.
INTERMEDIATE EDUCATIONAL UNIT
 (IEU):
     Local       303.23(b)(3).
     educational agency (LEA)
     (Definition).

[[Page 254]]

 
JURISDICTION(S) (Geographic
 location):
     Eligible    303.2(a).
     recipients of an award.
     State       303.35.
     (Definition).
LACK OF CONSENT (INABILITY TO      303.520(c).
 PAY).
     See also
     ``Inability to Pay''.
LACK OF OXYGEN:
     At-risk     303.5.
     infant or toddler
     (Definition).
LEAD AGENCY:
     Definition  303.22.
                 303.201.
     Designation of.
     Lead        303.120.
     agency role in supervision,
     etc..
     Public      303.30.
     agency (Definition).
LIMITED ENGLISH PROFICIENCY
 (LEP):
     Native      303.25(a).
     language (Definition).
        [cir] See ``Native
         language''.
LOCAL EDUCATIONAL AGENCY (LEA):
     Definition  303.23.
                 303.209(b).
     Notification of child
     transitioning to.
LOW BIRTH WEIGHT:
     At-risk     303.5.
     infant or toddler
     (Definition).
LOW-INCOME (Children and
 families):
     Purpose of  303.1(d).
     Early Intervention program
     (Historically
     underrepresented
     populations).
                 303.227(a).
     Traditionally underserved
     groups (Low-income families).
MAPPING:
     Of          303.13(b)(1)(i), 303.16(c)(1)(iii).
     surgically implanted medical
     devices.
MATERNAL AND CHILD HEALTH:
     Child find  303.302(c)(1)(ii)(B).
     (Coordination).
     Payor of    303.510(c).
     last resort--Non-reduction
     of benefits (Construction).
MEDIATION (A-L):
     Annual      303.721(c).
     report of children served
     (Number of mediations held).
     Benefits    303.431(d)(1).
     of (Meeting to explain).
                 303.431(b)(5)(i), (b)(7).
     Confidential discussions.
     Cost of     303.431(b)(3).
     (Borne by State).
     Disputes    303.431(a).
     (Resolve through mediation).
                 303.431(d).
     Disinterested party (to
     encourage).
                 303.431(c).
     Impartiality of mediator.
     Lead        303.431(a).
     agency procedures (to
     resolve disputes through
     mediation).
     Legally     303.431(b)(5).
     binding agreement (if
     parties resolve dispute
     through mediation).
MEDIATION (M-O):
    
     Mediator(s):
        [cir] Impartiality of....  303.431(c).
        [cir] List of............  303.431(b)(2)(i).
        [cir] Qualified and        303.431(b)(1)(iii).
         impartial.
        [cir] Random selection of  303.431(b)(2)(ii).
        [cir] Trained in           303.431(b)(1)(iii).
         effective mediation
         techniques.
     Meeting to  303.431(d).
     encourage mediation.
     Not used    303.431(b)(7).
     as evidence in hearing or
     civil proceeding.
     Not used    303.431(b)(1)(ii).
     to delay/deny right of
     hearing.
MEDIATION (P-Z):
     Parent      303.431(d)(1).
     training and information
     center.
     Prior       303.421(b).
     written notice--Content.
                 303.431(b)(1)-(b)(7).
     Requirements.
     Sessions    303.431(b)(4).
     scheduled--Timely manner and
     convenient location.
     State       303.430.
     dispute resolution options.
     State       303.700(d)(2).
     monitoring and enforcement.
     Voluntary.  303.431(b)(1)(i).
     Written     303.431(b)(6).
     mediation agreement
     (Enforceable in court).
MEDICAID:

[[Page 255]]

 
     Council--   303.601(a)(7).
     Composition (Member from
     State Medicaid program).
     Non-        303.510(c).
     reduction of benefits (Payor
     of last resort)--
     Construction.
     Proceeds    303.520(d)(2).
     from public-private
     insurance for Part C--
     Neither State nor local
     funds under ``nonsupplant''
     (Sec. 303.325(b)).
     ``Service   303.34(c).
     coordination''--Use of term
     not intended to affect
     seeking Medicaid.
MEDICAL SERVICES:
     In Early    303.13(b)(5).
     Intervention Services
     definition.
     Interim     303.510(b).
     payments--reimbursement
     (Payor of last resort).
MEDICAL SERVICES FOR DIAGNOSTIC
 OR EVALUATION PURPOSES:
     See         303.13(b)(5).
     ``Medical services''
     (Definition).
MEDICINE OR DRUGS:
                 303.16(c)(1)(ii).
     Prescribing for any purpose--
     Not covered.
METHOD (Of delivering Individual   303.344(d)(1)(i).
 Family Service Plan (IFSP)
 services).
     Definition  303.344(d)(2)(ii).
METHODS OF ENSURING SERVICES.....  303.511.
METABOLISM (Inborn errors of):
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition.
MINORITY (Children, Families,
 Parents):
     Council--   303.601(a)(1)(i).
     Composition (Minority
     parents).
     Purpose of  303.1(d).
     Early Intervention Program.
                 303.227(a).
     Traditionally underserved
     groups.
MONITOR; MONITORING:
     Council--   303.604(a)(3).
     Functions.
     Financial   303.511(e).
     responsibility and methods
     of ensuring services--Added
     components.
     Lead        303.120(a)(2)(i), (a)(2)(iv).
     agency role in monitoring.
     Rule of     303.707.
     construction--Nothing
     restricts Secretary's
     authority under General
     Education Provisions Act
     (GEPA) to monitor-enforce
     requirements of the Act.
                 303.703(b).
     Secretary's review &
     determination regarding
     State performance.
     State       303.700(a)(1), (b), (d)(2).
     monitoring and enforcement.
     State       303.701(c)(2).
     performance and data
     collection.
     State use   303.702(b)(1)(ii).
     of targets and reporting.
MULTIDISCIPLINARY:
     Definition  303.24.
     Evaluation  303.321(a)(1)(i).
     and assessment.
                 303.113(a)(1).
     Evaluation, assessment, and
     nondiscriminatory procedures.
     Purpose of  303.1(a).
     Early Intervention program.
     State       303.100.
     eligibility (General
     authority).
NATIVE LANGUAGE:
     Consent...  303.7(a).
     Definition  303.25.
     Evaluation  303.321(a)(5), (a)(6).
     and assessment.
                 303.342(d)(1)(ii).
     Individualized Family
     Service Plan (IFSP)
     meetings--Accessibility and
     convenience.
     Notice      303.404.
     regarding confidentiality
     and availability of notice
     in native language.
     Prior       303.421(c).
     written notice--Native
     language.
NATURAL ENVIRONMENTS:
     Definition  303.26.
                 303.344(d)(1)(ii)(A)-(B).
     Determination of appropriate
     setting for Early
     Intervention services.
     Early       303.13(a)(8).
     Intervention services
     (Definition).
     Early       303.126.
     Intervention services in
     natural environments
     (Component of statewide
     system).
                 303.344(d)(1)(ii)(A)-(B).
     Individualized Family
     Service Plan (IFSP) content--
     Early Intervention services
     in.
     State       303.700(d)(1).
     monitoring and enforcement.

[[Page 256]]

 
NEGLECT or ABUSE:
     See
     ``Abuse or neglect''.
NERVOUS SYSTEM (``Disorders
 reflecting disturbance of
 development of''):
     Diagnosed   303.21(a)(2)(ii).
     physical or mental condition
     (Infant or toddler with a
     disability).
NONCOMMINGLING...................  303.225(a).
NONDISCRIMINATORY:
                 303.113, 303.321(a)(4).
     Evaluation, assessment and
     nondiscriminatory procedures.
     Evaluation  303.321(a)(4).
     and assessment--in a
     nondiscriminatory manner.
NON-REDUCTION OF BENEFITS........  303.510(c).
NONSUBSTITUTION OF FUNDS.........  303.510(a).
NONSUPPLANT:
                 303.225(b).
     Requirement to supplement
     not supplant.
                 303.225(c)(2)(ii).
     Requirement regarding
     indirect costs.
NOTICE & HEARING BEFORE            303.231.
 DETERMINING A STATE NOT ELIGIBLE.
NOTICES (State administration):
     Public      303.208(b)(2).
     participation policies--Lead
     agency notice of hearings.
     State
     applications, eligibility
     determinations, etc.:
        [cir] Determination by     303.229.
         Secretary that a State
         is eligible (Secretary
         notifies State).
        [cir] Disapproval of an    303.230.
         application--Standard
         for.
        [cir] Initial decision;    303.234(a), (c).
         final decision.
        [cir] Judicial review....  303.236.
        [cir] Notice and hearing   303.231(a)(1)(i), (a)(2)(b).
         before determining a
         State not eligible.
        [cir] Standard for         303.230.
         disapproval of an
         application.
NOTICES (State monitoring &
 enforcement):
     Public      303.706.
     attention by State--If
     Secretary proposing
     enforcement.
                 303.703(b)(2)(i).
     Secretary's review and
     determination regarding
     State performance.
    
     Withholding funds:
        [cir] Opportunity for a    303.705(a).
         hearing.
        [cir] Suspension.........  303.705(b).
NOTICES (To parents; family) (A-
 O):
                 303.401(a).
     Confidentiality and
     opportunity to examine
     records.
     Due
     process procedures--Part B:
        [cir] Filing a due         303.440(c).
         process complaint (Time-
         line for resolution).
        [cir] Lead agency          303.441(e)(1).
         response to a due
         process complaint.
        [cir] Notice required      303.441(c).
         before a hearing.
        [cir] Resolution process.  303.442(a)(1), (b)(5).
                 303.342(d)(2).
     Individualized Family
     Service Plan (IFSP)
     meetings--Written notice to
     family, etc.
     Lead        303.400(a).
     agency--General
     responsibility for
     procedural safeguards.
     Native      303.404(d).
     language.
     Notice to   303.404.
     parents Re-confidentiality.
NOTICES (To parents; family) (P-
 Z):
     Parental    303.420.
     consent and ability to
     decline service.
     Prior       303.421.
     written notice and
     procedural safeguards notice.
        [cir] Content of notice..  303.421(b).
        [cir] General............  303.421(a).
        [cir] Native language....  303.421(c)(1), (c)(2)(i)-(c)(2)(ii).
     Procedural  303.400(a).
     safeguards--General
     responsibility of lead
     agency for.
     Screening   303.320(a)(1)(i), (2).
     procedures.
     State       303.211(b)(1).
     option--Services to children
     three and older (Annual
     notice to parents).
NUMERACY SKILLS:

[[Page 257]]

 
     Infant or   303.21(c)(1).
     toddler with a disability.
                 303.344(d)(4).
     Individualized Family
     Service Plan (IFSP).
     State       303.211(b)(2).
     option--Services to children
     ages three and older.
NURSES:
     Early       303.13(c)(3).
     Intervention services
     (Definition)--Qualified
     personnel.
NURSING SERVICES:
     Definition  303.13(b)(6).
NUTRITION SERVICES:
    Definition...................  303.13(b)(7).
NUTRITIONAL DEPRIVATION:
     At risk     303.5.
     infant or toddler
     (Definition).
OCCUPATIONAL THERAPY:
     Definition  303.13(b)(8).
                 303.13(c)(4).
     Occupational therapists.
OPTIMIZATION (Relating to          303.13(b)(1)(i), 303.16(c)(1)(iii).
 Cochlear Implants, etc.).
ORIENTATION AND MOBILITY
 TRAINING:
     Early       303.13(b)(17)(iii).
     Intervention services
     (Definition)--In ``Vision
     services.''.
                 303.13(c)(5).
     Orientation and mobility
     specialists.
OTHER SERVICES:
     Early       303.13(d).
     Intervention services
     (Definition).
                 303.344(e).
     Individualized Family
     Service Plan (IFSP) content.
OUTCOMES:
     Early       303.12(b)(1).
     Intervention services
     provider (Definition).
     Health      303.16(c)(1)(iii)(A).
     services--Developmental
     outcomes.
    
     Individualized Family
     Service Plan (IFSP)--
     Content:
        [cir] Duration...........  303.344(d)(2)(iv).
        [cir] Early Intervention   303.344(d)(1).
         services.
        [cir] Early Intervention   303.344(d)(1)(ii)(B)(3).
         services in natural
         environments.
        [cir] Results or outcomes  303.344(c).
                 303.342(b)(1)(i)-(b)(1)(ii).
     Individualized Family
     Service Plan (IFSP)--
     Periodic review.
                 303.346.
     Individualized Family
     Service Plan (IFSP)--
     Responsibility and
     accountability.
     Special     303.13(b)(14)(ii).
     instruction (Definition).
PARAPROFESSIONALS:
                 303.118.
     Comprehensive System of
     Personnel Development (CSPD)
     (Training of).
     Use of....  303.119(c).
PARENT:
     Biological  303.27(a)(1), (a)(4).
     or adoptive parent of a
     child.
     Definition  303.27.
     Foster      303.27(a)(2).
     parent.
                 303.27(a)(4).
     Grandparent.
     Guardian..  303.27(a)(3).
                 303.301(a)(1)(ii).
     Dissemination of Information
     (Public awareness program).
     Stepparent  303.27(a)(4).
     Surrogate   303.27(a)(5).
     parent.
        [cir] See also
         ``Surrogate Parent(s).''
PARENTAL RIGHTS (A-C):
    
     Confidentiality:
        [cir] Access rights......  303.405.
        [cir] Amendment of         303.410.
         records at parent's
         request.
        [cir] Consent prior to     303.414.
         disclosure or use.
        [cir] Council--            303.601(a)(1).
         Composition.
        [cir] Destruction of       303.416.
         information.
        [cir] List of types and    303.408.
         locations of information.
        [cir] Notice to parents..  303.404.
        [cir] Opportunity for a    303.411.
         hearing on records.
        [cir] Opportunity to       303.401(b)(2).
         inspect-review records.
        [cir] Right to             303.401(a).
         confidentiality of
         personally identifiable
         information.
     Consent     303.7.
     (Definition).

[[Page 258]]

 
PARENTAL RIGHTS (D--Part B):
     Due
     process hearings--Part B:
        [cir] Construction--       303.445(b).
         parent's right to file
         an appeal.
        [cir] Construction--       303.445(c).
         filing a separate due
         process complaint.
        [cir] Filing a due         303.440(a)-(b).
         process complaint.
        [cir] Findings of fact     303.444(a)(5), 303.446(b)(2)(vi).
         and decisions.
        [cir] Hearing officer      303.445(a)(2)(ii).
         finding--matters
         alleging procedural
         violations.
        [cir] Hearing rights.....  303.444.
        [cir] Impartial due        303.443(a), (e), (f)(2).
         process hearing.
        [cir] Lead agency          303.441(e).
         response to a due
         process complaint.
        [cir] Parental rights at   303.444(c).
         hearings.
        [cir] Resolution process.  303.442.
        [cir] Separate request     303.445(c).
         for a due process
         hearing.
PARENTAL RIGHTS (D--Part C to
 IF):
     Due
     process hearings--Part C:
        [cir] Convenience of       303.437.
         hearings & timelines.
        [cir] Parental rights in   303.436.
         due process hearings.
     Functions   303.521(b).
     not subject to fees.
    
     Individualized Family
     Service Plan (IFSP)--Consent
     provisions:
        [cir] Parental consent     303.342(e).
         regarding IFSP contents.
        [cir] Services before      303.345(a).
         evaluation completed
         (Parental consent).
    
     Individualized Family
     Service Plan (IFSP) Team
     meeting participants:
        [cir] An advocate or       303.343(a)(1)(iii).
         person outside the
         family--If parent
         requests.
        [cir] Other family         303.343(a)(1)(ii).
         members, if requested by
         the parent.
        [cir] The parent or        303.343(a)(1)(i).
         parents.
        [cir] See also ``Family
         (Families) (IFSP)''.
PARENTAL RIGHTS (IN-O):
     Inability   303.521(a)(4)(ii).
     of parents to pay will not
     delay-deny services.
     Mediation:
        [cir] Binding agreement    303.431(b)(5)(ii).
         to resolve a dispute--
         signed by parents &
         agency.
        [cir] Meeting to           303.431(d).
         encourage.
        [cir] Not used to deny or  303.431(b)(1)(ii).
         delay a parent's right
         to a hearing.
     Native
     language:
        [cir] Consent              303.7(a).
         (definition).
        [cir] Definition.........  303.25.
        [cir] Prior notice--       303.421(c).
         Native language.
PARENTAL RIGHTS (P-Z):
     Parental    303.420.
     consent and ability to
     decline service.
     Payments    303.731(d)(1).
     to Indians--Use of funds
     (Encouraged to involve
     Indian parents).
     Pendency..  303.430(e).
     Prior       303.421.
     notice.
     State
     complaint procedures:
        [cir] Adoption of (and     303.432(a).
         widely disseminating
         procedures to parents).
        [cir] Opportunity to       303.433(a)(3)(ii).
         engage in mediation.
        [cir] Time extension.....  303.433(b)(1)(ii).
     States      303.521(c).
     with Free Appropriate Public
     Education (FAPE) mandates
     may not charge parents for
     services under Part B.
     Status of   303.430(e).
     child during pendency of due
     process hearing.
     State       303.520(a)(4), 303.520(b)(1)(iii).
     system of payments copy for
     parents.
     See also
     ``Due Process Procedures,''
     ``Family (Families),'' and
     ``Procedural Safeguards''.
PARENT TRAINING:

[[Page 259]]

 
     Payment to  303.731(d).
     Indians--Use of funds.
                 303.13(b)(10)(iv).
     Psychological services
     (Definition).
PARENT TRAINING & INFORMATION
 CENTER(S):
     Definition  303.28.
     Mediation-- 303.431(d)(1).
     Meeting to encourage.
     State       303.432(a)(2).
     complaint procedures--Widely
     disseminated to Parent
     Training and Information
     Centers.
PART B (IDEA) (A-O):
     Child       303.302(a)(1), (c)(1)(ii)(A).
     find--Coordination with.
                 303.401(d)(2).
     Confidentiality.
                 303.118(a)(3).
     Comprehensive System of
     Personnel Development (CSPD)
     (Training personnel relating
     to transition).
     Due         303.430(d)(2).
     process hearing procedures
     (Dispute resolution options).
     Free        303.15(b).
     Appropriate Public Education
     (FAPE) (Definition).
     Financial   303.511(b).
     responsibility and methods
     of ensuring services.
                 303.209(d)(3).
     Individualized Family
     Service Plan (IFSP) Content-
     Transition to preschool.
     Monitoring  303.700(d).
     and enforcement.
PART B (IDEA) (P-Z):
     Permissive  303.501(c)(1), (d).
     use of funds.
     State       303.36(b).
     educational agency
     (Definition).
     State       303.211(b)(1)(i)-(b)(1)(ii), (b)(3).
     option-Services to children
     three and older.
        [cir] Construction--If     303.211(e)(1).
         child receives Part C
         services, free
         appropriate public
         education (FAPE) not
         required.
     States      303.521(c).
     with free appropriate public
     education (FAPE) mandates.
PARTICIPATING AGENCY:
     Definition  303.403(c).
     of.
     See also
     ``Confidentiality'' (A-D)
     and Personally
     ``Identifiable Information''
     (A-C).
PAYMENT(S) FOR EARLY INTERVENTION
 SERVICES:
                 303.1(b).
     Coordination of.
                 303.344(d)(1)(iv).
     Individualized Family
     Service Plan (IFSP) content--
     Payment arrangements, if any.
     Interim     303.510(b).
     payments--reimbursement
     (payor of last resort).
     Policies    303.520.
     Re use of insurance for
     payment for services.
     Timely      303.511(c).
     resolution of disputes about
     payments (Methods of
     ensuring services).
     To          303.730(a).
     outlying areas.
     To          303.731(a)(1).
     Secretary of the Interior.
PAYMENTS TO INDIANS..............  303.731.
     Allocation  303.731(b).
                 303.731(c).
     Information.
     Prohibited  303.731(f).
     use of funds.
     Reports...  303.731(e).
     Use of      303.731(d).
     funds.
PAYOR OF LAST RESORT:
     Assurance   303.222.
     regarding.
     General     303.500.
     requirement.
     Interim     303.510(b).
     payments--reimbursement.
     Non-        303.510(c).
     reduction of benefits.
                 303.510(a).
     Nonsubstitution of funds.
PEDIATRICIANS & OTHER PHYSICIANS:
     Qualified   303.13(c)(6).
     personnel.
PENDENCY:
                 303.706.
     Enforcement action--Public
     attention.
     Status of   303.430(e)(1).
     child during pendency of a
     due process hearing request.
PERIODIC REVIEW (Individualized    303.342(b).
 Family Service Plan (IFSP)).
PERMISSIVE USE OF FUNDS BY LEAD
 AGENCY:

[[Page 260]]

 
     At risk     303.501(e).
     infants or toddlers
     (strengthen statewide
     system).
     Continue    303.501(d).
     Early Intervention services
     in lieu of FAPE.
     Expand and  303.501(b).
     improve on services.
     For direct  303.501(a).
     services.
     Provide     303.501(c).
     FAPE (See also ``Use of
     Funds'').
PERSONALLY IDENTIFIABLE
 INFORMATION (A-C):
                 303.401(a).
     Confidentiality.
        [cir] Applicability and    303.401(c).
         timeframe of procedures.
        [cir] Consent prior to     303.414(a).
         disclosure or use.
        [cir] Definitions of       303.403(a), (c).
         ``destruction'' and
         ``participating agency''.
        [cir] Destruction of       303.416(a).
         information.
        [cir] Disclosure of        303.401(d)(1).
         information.
        [cir] Notice to parents..  303.404.
        [cir] Safeguards.........  303.415.
        [cir] Secretary ensures    303.402.
         protection of.
PERSONALLY IDENTIFIABLE
 INFORMATION (D-Z):
     Data        303.701(c)(3).
     collection--Construction
     (Nationwide database not
     authorized).
     Definition  303.29.
     Finality    303.446(c).
     of hearing decision--
     Findings of fact & decisions
     (to public).
     Hearing     303.445(d).
     decisions--Part B (to
     public).
     Parental    303.420(a)(5).
     consent--Exchange of.
     Public      303.702(b)(3).
     reporting and privacy.
     Transition  303.209(b)(2).
     to preschool--State policy
     (Parents may object to
     disclosure).
PERSONNEL (Shortage of):
     Personnel   303.119(d).
     standards--Policy to address.
PERSONNEL STANDARDS:
     Policies    303.119(a).
     and procedures relating to.
     Qualified   303.31.
     personnel (definition).
                 303.119(b).
     Qualification standards.
     Policy to   303.119(d).
     address shortage of
     personnel.
     Use of      303.119(c).
     paraprofessionals and
     assistants.
PHYSICAL DEVELOPMENT, including
 vision and hearing:
                 303.21(a)(1)(ii).
     Developmental delays in.
     Early       303.13(a)(4)(i).
     Intervention Services
     (Definition).
     Evaluation  303.321(b)(3).
     of child's level of
     functioning in.
     In          303.21(a)(1)(ii).
     definition of ``Infants and
     toddlers with disabilities''.
     In          303.344(a).
     Individualized Family
     Service Plan (IFSP) content
     (Information about child's
     status).
PHYSICAL THERAPY:
     Definition  303.13(b)(9).
     Physical    303.13(c)(7).
     therapists.
PHYSICIANS:
     Early       303.13(c)(6).
     intervention services
     (Qualified personnel--
     Pediatricians and other).
     Health      303.16(b)(2).
     services (Consultation by).
     Medical     303.13(b)(5).
     services (Definition).
     Public      303.301(a)(1)(ii).
     awareness program
     (Dissemination to all
     primary referral sources).
     Referral    303.303(c)(2).
     procedures--Primary referral
     sources.
POLICIES (AND PROCEDURES) [P&P]
 (A-D):
    
     Confidentiality:
        [cir] Enforcement (To      303.417.
         ensure requirements are
         met).
        [cir] Consent prior to     303.414(c).
         disclosure--P&P to be
         used when parent refuses
         consent.
        [cir] Notice to parents--  303.404(b).
         summary of P&P regarding
         disclosure.
        [cir] Option to inform     303.401(e).
         parent about intended
         disclosure.
        [cir] Safeguards--         303.415(c).
         Training regarding State
         P&P.
     Due
     process--Part B:
        [cir] 30 or 45 day         303.440(c).
         timeline for resolution
         (Specify in P&P).

[[Page 261]]

 
        [cir] Timelines and        303.447(a).
         convenience of hearings.
POLICIES (AND PROCEDURES) [P&P]
 (E-Q):
     Early       303.126.
     Intervention services in
     natural environments.
     Financial   303.511(a).
     responsibility and methods
     of ensuring services--
     Delivery of services in a
     timely manner.
     Personnel   303.119.
     standards.
     Policies    303.520.
     related to use of insurance
     for services.
     Public      303.208.
     participation P&P.
POLICIES (AND PROCEDURES) [P&P]
 (R-Z):
     Referral    303.206.
     policies for specific
     children.
     State       303.200.
     application and assurances.
     State       303.102.
     conformity with IDEA-Part C.
     Statewide   303.203(b).
     system and description of
     services.
     System of   303.521(a).
     payments and fees--State's
     policies to specify
     functions subject to fees.
                 303.227.
     Traditionally underserved
     groups.
     Transition  303.209(a)(1).
     to preschool, etc..
     Use of      303.500.
     funds--Payor of last resort.
POLICIES RELATED TO USE OF PUBLIC  303.520.
 OR PRIVATE INSURANCE OR PUBLIC
 BENEFITS TO PAY FOR PART C
 SERVICES.
POSITIVE EFFORTS TO EMPLOY AND     303.105.
 ADVANCE QUALIFIED INDIVIDUALS
 WITH DISABILITIES.
POST-REFERRAL PROCEDURES:
     Types of    303.300(c).
     post-referral procedures.
     See also
     ``screening'' (Sec.
     303.320), ``evaluation and
     assessment'' (Sec.
     303.321), ``IFSP
     development'' (Sec. Sec.
     303.342-303.345).
PRELITERACY, LANGUAGE, & NUMERACY
 SKILLS:
     Infant or   303.21(c)(1).
     toddler with a disability.
                 303.344(d)(4).
     Individualized Family
     Service Plan (IFSP)--
     Educational component.
     State       303.211(b)(2).
     option--Services to children
     ages three and older.
PRENATAL DRUG EXPOSURE:
     At-risk     303.5.
     infant or toddler.
     Referral    303.303(b)(2).
     of specific at-risk children.
PRE-REFERRAL PROCEDURES:
     Types of    303.300(a).
     pre-referral procedures.
     See also
     ``public awareness'' (Sec.
     303.301), ``child find''
     (Sec. 303.302).
PRIMARY REFERRAL SOURCE(S):
     Child       303.302(a)(2)(ii).
     find--Participation by.
                 303.118.
     Comprehensive System of
     Personnel Development
     (CSPD)--Training of.
     Definition  303.303(c).
     Public
     awareness program
        [cir] Component of a       303.116(b).
         statewide system.
        [cir] Dissemination of     303.301(a)(1)(ii).
         information to sources.
     Referral    303.303(a)(1).
     procedures.
     Screening   303.320(b).
     procedures (Definition of).
PRIOR WRITTEN NOTICE:
     See Notice
     (To parents; Family) (P-Z).
PRIVATE INSURANCE:
     See
     ``Insurance''.
PROCEDURAL SAFEGUARDS (A-C):
                 303.435.
     Appointment of an impartial
     hearing officer.
     Child's     303.430(e).
     status during proceedings.
     Civil       303.448.
     action--Part B.
     Civil       303.438.
     action--Part C.
                 303.401.
     Confidentiality and
     opportunity to examine
     records.
        [cir] Additional
         requirements (see Sec.
         Sec. 303.402-303.417).
        [cir] See also
         ``Confidentiality''.
     Consent     303.7.
     (Definition).
        [cir] See also
         ``Consent''.
                 303.437.
     Convenience of proceedings &
     timelines.
PROCEDURAL SAFEGUARDS (D-N):
     Due         303.430(d).
     process procedures.

[[Page 262]]

 
        [cir] Part B procedures..  303.440-303.449.
        [cir] Part C procedures..  303.435-303.438.
                 303.521(b)(4)(ii).
     Implementation of (Functions
     not subject to fees &
     carried out at public
     expense).
     Lead        303.400.
     agency responsibility for.
     Mediation.  303.431.
     Native      303.421(c).
     language (Prior written
     notice).
        [cir] See ``Native
         Language''.
                 303.113.
     Nondiscriminatory evaluation
     and assessment procedures.
        [cir] No single procedure  303.321(b).
         used as sole criterion.
PROCEDURAL SAFEGUARDS (O-Z):
                 303.401(b)(2).
     Opportunity to examine
     records (i.e., to inspect &
     review records).
     Parental    303.420.
     consent and ability to
     decline service.
        [cir] See also
         ``Consent''.
     Parental    303.436.
     rights in due process
     hearings.
        [cir] See also ``Due
         Process Rights--Part
         B.''
     Pendency    303.430(e).
     (Status of child).
     Prior       303.421.
     written notice.
     Procedural  303.421(b)(3).
     safeguards notice.
     State       303.430.
     dispute resolution options.
     Surrogate   303.422.
     parents.
     System of   303.521(e).
     payments.
PROTECTION & ADVOCACY AGENCIES:
     State       303.432(a)(2).
     complaint procedures.
PROVISION OF SERVICES BEFORE       303.345.
 EVALUATIONS AND ASSESSMENTS
 COMPLETED.
PSYCHOLOGICAL SERVICES:
     Early       303.13(b)(10).
     Intervention services
     (Definition).
                 303.13(c)(8).
     Psychologists (Qualified
     personnel).
PUBLIC AGENCY:
                 303.401(e)(1).
     Confidentiality--Option to
     inform parent about intended
     disclosure.
     Definition  303.30.
     IFSP Team-- 303.343(a)(1)(iv).
     Service coordinator
     designated by public agency.
     Impartial   303.443(c)(3).
     hearing officer (Public
     agency--List of hearing
     officers).
     Parent      303.27(b)(2).
     (Definition).
     Prior       303.421(c)(2).
     written notice--Native
     language.
     State
     complaint procedures:
        [cir] Filing a complaint.  303.434(b)(1).
     Surrogate   303.422(a)(2).
     parents.
PUBLIC HEARINGS:
     Public      303.208(b)(1).
     participation policies and
     procedures.
     See
     ``Public Participation''.
PUBLIC AWARENESS PROGRAM:
     Component   303.116.
     of statewide system.
     Public      303.301(b).
     awareness program--
     Information for parents.
PUBLIC INSURANCE:
     See
     ``Insurance''.
PUBLIC PARTICIPATION.............  303.208.
                 303.208(a).
     Requirements for State
     applications.
                 303.208(b).
     Requirements for State
     policies and procedures.
PURPOSE OF EARLY INTERVENTION      303.1.
 PROGRAM.
QUALIFIED PERSONNEL:
     All         303.321(a)(2).
     evaluations and assessments
     of child and family
     conducted by qualified
     personnel.
     Definition  303.31.
     Early       303.13(a)(7), (b)(3), (c), (d).
     Intervention Services
     (Definition).
                 303.321(a)(2).
     Evaluations and assessments
     of child and family--All
     conducted by qualified
     personnel.
     Informed    303.321(a)(3)(ii).
     clinical opinion.
     Procedures  303.321(c)(1), (c)(2).
     for assessment of child and
     family.
RECORDS:
     Evaluation  303.321(b)(5).
     of child--Review of records.

[[Page 263]]

 
     Civil       303.448(c)(1).
     action--Part B (records of
     administrative proceedings).
                 303.401-303.417.
     Confidentiality.
     Consent     303.7(b).
     (Definition)--Lists records
     to be released.
     Records     303.321(a)(3)(i).
     used to establish
     eligibility (without
     conducting an evaluation).
                 303.343(a)(2)(iii).
     Individualized Family
     Service Plan (IFSP) Team
     (Making pertinent records
     available at the meeting).
     Parents     303.405(a).
     right to inspect and review.
     References  303.3(b)(2).
     in applicable regulations.
     Reports     303.224(b).
     and records (Assurance--
     Application requirement).
REFERRAL PROCEDURES..............  303.303.
REFERRALS:
     Child       303.302(a)(2).
     find--System for making
     referrals to lead agencies
     or Early Intervention
     service providers.
     Permissive  303.501(e)(2)-(3).
     use of funds--At risk
     children.
REFERRAL SOURCES:
     See
     ``Primary Referral
     Sources''.
REGISTERED DIETICIANS:
     Qualified   303.13(c)(9).
     Personnel.
REHABILITATION (As part of Early   303.13(b)(1)((ii)(D), (b)(2)(iii),
 Intervention services).            (b)(15)(ii)-(b)(15)(iii),
                                    (b)(17)(ii)).
REIMBURSEMENT:
     Financial   303.511(a).
     responsibility & methods of
     ensuring services.
     Payor of    303.510(b).
     last resort (Interim
     payments--Reimbursement).
     Proceeds    303.520(d).
     from public and private
     insurance.
                 303.122.
     Reimbursement procedures
     (Component of statewide
     system).
REPORTS (A-P):
     Annual
     report of children served:
        [cir] Certification......  303.723.
        [cir] Other                303.724(b), (d).
         responsibilities of lead
         agency.
        [cir] Report requirement.  303.721.
     Council--   303.604(c).
     Annual report to Governor
     and Secretary.
     Data        303.722(a).
     reporting.
     Data        303.720.
     requirements--general.
     Payments    303.731(e).
     to Indians.
REPORTS (R-Z):
     Reports     303.224.
     and records (Assurance--
     Application requirement).
     Reports--   303.720, 303.721, 303.722, 303.723,
     Program information.           303.724.
     State
     monitoring & enforcement:
        [cir] Enforcement--        303.704(d).
         Secretary's Report to
         Congress.
        [cir] Lead agency--Annual  303.700(a)(4).
         report on performance of
         State.
        [cir] Public reporting     303.702(b).
         and privacy.
        [cir] Secretary's review   303.703(a)-(b).
         & determination.
        [cir] State performance    303.701(c)(1)-(c)(2).
         plans & data collection.
        [cir] State use of         303.702(b).
         targets and reporting
         (Public reporting &
         privacy).
RESOLUTION OF DISPUTES:
     See
     ``Disputes-Dispute
     Resolution''.
RESPIRATORY DISTRESS:
     At risk     303.5.
     infant or toddler
     (Definition).
ROUTINE MEDICAL SERVICES:
     Not         303.16(c)(3).
     covered.
RURAL (AREAS, CHILDREN,
 FAMILIES):
     Assurance   303.227(a).
     regarding traditionally
     underserved groups (Rural
     families, etc.).
                 303.118(b)(1).
     Comprehensive System of
     Personnel Development (CSPD)
     (Training personnel to work
     in).
     Purpose of  303.1(d).
     Early Intervention program.

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STATE CHILDREN'S HEALTH INSURANCE  303.302(c)(1)(ii)(K).
 PROGRAM (CHIP).
SCHOOL READINESS:
     Infant or   303.21(c)(1).
     toddler with a disability.
                 303.344(d)(4).
     Individualized Family
     Service Plan) IFSP.
     State       303.211(a)(2).
     option--Serve age three to
     five.
SCREENING PROCEDURES.............  303.320.
SEA:
     See
     ``State educational agency''.
SECRETARY (of Education):
     Definition  303.33.
SECRETARY OF THE INTERIOR:
     Eligible    303.2.
     recipients of an award.
     Indian--    303.19(c).
     Indian tribe (Definition--
     Construction clause).
     Payments    303.731.
     to Indians.
     State       303.732(d)(1).
     allotments (Definitions
     ``Aggregate amount'').
SENSORY IMPAIRMENTS:
     Infant or   303.21(a)(2)(ii).
     toddler with a disability
     (Diagnosed condition).
SERVICE COORDINATION (Services):
     Definition  303.13(b)(11), 303.34.
     Functions   303.521(b)(3).
     not subject to fees.
                 303.114.
     Individualized Family
     Service Plans (IFSP) (Early
     Intervention system
     component).
     Early       303.13(b)(11).
     Intervention Services.
     Term        303.34(c).
     ``case management'' not
     precluded.
     Service     303.344(g)(2).
     coordinator--IFSP content
     (``Profession'' includes
     ``service coordination'').
     Specific    303.34(b).
     Service Coordination
     Services.
SERVICE COORDINATOR:
                 303.34(a).
     Entitlement to.
     Named in    303.344(g)(1).
     Individualized Family
     Service Plan (IFSP).
        [cir] In interim IFSP....  303.345(b)(1).
     On          303.343(a)(1)(iv).
     Individualized Family
     Service Plan (IFSP) Team.
SERVICE PROVIDER(S):
     General     303.12(b).
     role of.
     See         303.13(c).
     ``Qualified personnel''.
SEVERE ATTACHMENT DISORDERS:
                 303.21(a)(2)(ii).
     ``Diagnosed physical or
     mental condition''.
SHORTAGE OF PERSONNEL (Policy to   303.119(d).
 address).
SIGN LANGUAGE AND CUED LANGUAGE
 SERVICES:
     Definition  303.13(b)(12).
SLIDING FEE SCALES:..............
     Definition  303.13(a)(3).
     of ``Early Intervention
     services''.
     System of   303.500(b), 303.521(a)(1).
     payments.
SOCIAL OR EMOTIONAL DEVELOPMENT:
                 303.21(a)(1)(iv).
     Developmental delays in.
     Early       303.13(a)(4)(iv).
     Intervention Services
     (Definition).
     Evaluation  303.321(b)(3).
     of child's level of
     functioning in.
     In          303.21(a)(1)(iv).
     definition of ``Infants and
     toddlers with disabilities''.
     In          303.344(a).
     Individualized Family
     Service Plan (IFSP) content
     (Information about child's
     status).
SOCIAL SECURITY ACT:
     Title V--   303.302(c)(1)(ii)(B).
     Maternal and Child Health.
     Title XVI:
        [cir] Supplemental         303.302(c)(1)(ii)(F).
         Security Income (SSI).
     Title XIX:
        [cir] EPSDT (Early         303.302(c)(1)(ii)(C).
         Periodic Screening,
         Diagnosis, and
         Treatment).
        [cir] Medicaid...........  303.510, 303.520.
SOCIAL WORK SERVICES (Definition)  303.13(b)(13).
     Social      303.13(c)(10).
     workers.
SPECIAL INSTRUCTION (Definition).  303.13(b)(14).
     Special     303.13(c)(11).
     educators.
SPEECH-LANGUAGE PATHOLOGY:
     Definition  303.13(b)(15).
     Speech and  303.13(c)(12).
     language pathologists.
SSI (Supplemental Security
 Income):

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     Child find  303.302(c)(1)(ii)(F).
     (Coordination).
     See
     ``Social Security Act''.
STATE (Definition)...............  303.35.
     Special     303.732(d)(3).
     definition -State
     allocations.
STATE ADVISORY COUNCIL ON EARLY
 EDUCATION AND CARE.
                 303.118(b)(4).
     Comprehensive system of
     personnel development (CSPD)
     (Coordination).
                 303.210(b).
     Participation of State lead
     agency.
STATE AGENCIES:
     Child find  303.302(c)(1)(i).
     (Coordination).
     ICC         303.601(a)(5)(i).
     (Composition of Council).
                 303.511(b)(2).
     Interagency agreements.
STATE APPLICATION:
     Amendments  303.208(a).
     to (public participation).
     Conditions  303.200.
     of assistance.
     Components  303.110-303.126.
     of a statewide system.
     Council     303.604(a)(4).
     function (Advise-assist lead
     agency with).
     General     303.201-303.212.
     requirements.
     Public      303.208.
     participation.
        [cir] Reviewing public     303.208(a).
         comments received.
STATE APPROVED OR RECOGNIZED       303.31.
 CERTIFICATION (Qualified
 Personnel).
STATE COMPLAINT PROCEDURES:
     Adoption    303.432.
     of.
        [cir] (See also Sec.
         Sec. 303.432-303.434)
     Filing a    303.434.
     complaint.
     Lead        303.430(c).
     agency must adopt.
     Minimum     303.433.
     State complaint procedures.
        [cir] Time extension;      303.433(b).
         final decision;
         implementation.
        [cir] Time limit (60       303.433(a).
         days).
     Remedies    303.432(b).
     for denial of appropriate
     services.
     State       303.430(a), (c).
     dispute resolution options.
     State       303.433(c).
     complaints & due process
     hearing procedures.
STATE DEFINITION OF ``INABILITY
 TO PAY'':
     Private     303.520(c).
     insurance.
     System of   303.521(a)(3), (4)(ii).
     payments.
STATE EDUCATIONAL AGENCY (SEA):
     Applicable  303.3(b)(1).
     regulations (SEA means the
     lead agency).
                 303.401(d).
     Confidentiality procedures--
     Disclosure of information.
     Council--   303.601(a)(6)(i).
     Composition.
     Council--   303.604(b), 303.605(a).
     Functions.
     Definition  303.36.
     Free        303.15(b).
     Appropriate Public Education
     (FAPE) (Definition)--
     Standards of the SEA.
     State       303.211(a)(1).
     option--Services for
     children 3 and older.
     Transition  303.209(a)(3)(i)(A)-(a)(3)(i)(B),
     to preschool.                  (a)(3)(ii), (b)(2)(i)-(b)(2)(ii).
STATE ELIGIBILITY:
     Conditions  303.101.
     of assistance.
STATE INTERAGENCY COORDINATING
 COUNCIL (Council):
     Advising &  303.604(a).
     assisting the lead agency.
     Advising &  303.604(b).
     assisting on transition.
     Annual      303.604(c).
     report to Governor &
     Secretary.
     Authorized  303.605.
     activities by the Council.
                 303.601.
     Composition.
     Conflict    303.601(d).
     of interest.
                 303.600.
     Establishment.
     Functions   303.604.
     of Council--Required duties.
     Meetings..  303.602.
     Use of      303.603.
     funds by the Council.
STATE MONITORING and ENFORCEMENT.  303.700.
STATE OPTION--EARLY INTERVENTION   303.211.
 SERVICES TO CHILDREN AGES THREE
 and OLDER.
STATE PERFORMANCE PLANS--DATA      303.701.
 COLLECTION.
STATE USE OF TARGETS AND           303.702.
 REPORTING.

[[Page 266]]

 
STATEWIDE SYSTEM (of Early
 Intervention services):
     Assurances  303.101(a).
     regarding Early Intervention
     services and a statewide
     system.
                 303.114.
     Individualized Family
     Service Plans (IFSP)
     (Component of).
     Minimum     303.110.
     components of a statewide
     system (See also Sec.
     303.111-303.126).
     Required    303.300.
     pre-referral, referral, and
     post-referral components.
     Statewide   303.203.
     system & description of
     services.
SUBSTANCE ABUSE (Illegal)........  303.5, 303.303(b)(2).
SYSTEM OF PAYMENTS AND FEES:
     See
     ``Fees.''
SUPPLEMENTAL SECURITY INCOME
 (SSI):
     Child
     find--Coordination (see
     303.302(c)(1)(ii)(F)).
     See
     ``Social Security Act.''
SURGERY (Non-covered health        303.16(c)(1)(i).
 service).
SURGICALLY IMPLANTED DEVICE......  303.13(b)(1)(i),
                                    303.16(c)(1)(iii)(A),
                                    (c)(1)(iii)(B).
SURROGATE PARENT(S):
     Assignment  303.422(b)(1).
     by lead agency.
     30 day      303.422(g).
     timeline.
     Criteria    303.422(d).
     for selecting.
     In          303.27(a)(5).
     definition of ``parent''.
     Non-        303.422(e).
     employee requirement.
     Rights or   303.422(f).
     responsibilities of.
     When a      303.422(a)(1)-(a)(3).
     surrogate parent is needed.
SYSTEM OF PAYMENTS:
     Copy to     303.520(a)(4), 303.520(b)(1)(iii).
     parents.
     Family      303.521(d).
     fees.
     Funds       303.520(d).
     received under a State's
     system of payments.
     In          303.13(a)(3).
     definition of ``Early
     Intervention services''.
     Policies    303.520(a)(4), 303.520(b)(1)(ii)-
     related to use of insurance.   (b)(1)(iii).
     Procedural  303.521(e).
     safeguards.
     Statewide   303.203(b).
     system and description of
     services.
     System of   303.521(a), (d).
     payments and fees.
     See also
     ``Fees;'' ``Co-payments; Co-
     pays.''
TECHNICAL ASSISTANCE (TA):
     Assistive   303.13(b)(1)(ii)(E)-(b)(1)(ii)(F).
     technology service.
     Lead        303.120(a)(2)(iii).
     agency role in monitoring,
     etc..
     Minimum     303.433(b)(2)(i).
     State Complaint procedures
     (Lead agency use of TA).
     Payments    303.731(f).
     to Indians (Not to be used
     for TA).
     State       303.700(a)(3).
     monitoring and enforcement.
        [cir] Enforcement--Needs   303.704(a)(1)(iii)-(a)(1)(iv)).
         assistance.
TIMELINES (A-O):
     Child       303.302(a)(2)(i).
     find--General.
                 303.405(a).
     Confidentiality--Access
     rights.
     Department  303.231(b)(3), 303.233(b),
     hearing procedures on State    303.234(d), (e), (g), (k), 303.236.
     eligibility.
     Due
     process procedures--Part B
     (see ``Timelines--Due
     Process (Part B)'')
                 303.704(d).
     Enforcement--Secretary
     report to Congress w/in 30
     days of taking enforcement
     action.
     Evaluation  303.310.
     and Assessment & initial
     Individualized Family
     Service Plan (IFSP) meeting.
        [cir] Exceptional          303.310(b)(1).
         circumstances.
TIMELINES (PA-PU):
     Part C due
     process hearings; parental
     rights:
        [cir] Decision not later   303.437(b).
         than 30 days after
         receipt of complaint.

[[Page 267]]

 
        [cir] Prohibit             303.436(b)(3).
         information not
         disclosed (at least five
         days before hearing).
     Payments    303.731(e)(1)(3).
     to Indians--reports.
     Primary     303.303(a)(2)(i).
     referral sources.
     Public      303.702(b)(1)(i)(A).
     reporting and privacy (State
     performance reports on
     targets).
     Public      303.208.
     participation (Application,
     etc.).
        [cir] See also ``Public
         Participation''.
TIMELINES (R-Z):
     Report to   303.702(b)(2).
     Secretary on State
     performance.
     State       303.433(a).
     complaint procedures (Time
     limit of 60 days).
                 303.209(c).
     Transition--Conference to
     discuss services.
                 303.209(b).
     Transition--LEA notification.
     Transition  303.209(d).
     plan.
        [cir] Transition           303.211(b)(6).
         timelines for child
         receiving services under
         section 303.211.
TIMELINES-DUE PROCESS (PART B) (A-
 Q):
                 303.442(c).
     Adjustments to 30-day
     resolution period.
     Agreement   303.442(e).
     review period (w/in three
     business days of executing a
     settlement agreement).
     Civil       303.448(b).
     action (90 days from date of
     decision).
     Hearing     303.447(a).
     decision (30 or 45 days
     after expiration of 30-day
     period or adjustments to
     that period in Sec.
     303.442(b) or (c)).
     Hearing
     rights:
        [cir] Additional           303.444(b).
         disclosure (At least
         five business days
         before hearing).
        [cir] Prohibit new         303.444(a)(3).
         evidence (Not disclosed
         at least five business
         days before hearing).
     Lead        303.441(e).
     agency response to complaint
     (within ten days of
     receiving complaint).
     Other       303.441(f).
     party response (within ten
     days of receiving complaint).
TIMELINES-DUE PROCESS (PART B)
 (RE):
     Resolution  303.442(a).
     meeting (w/in 15 days).
        [cir] If no meeting in 15  303.442(b)(5).
         days, parent may seek
         intervention--hearing
         officer.
     Resolution
     period:
        [cir] If lead agency not   303.442(b)(1).
         resolved complaint w/in
         30 days, hearing may
         occur.
        [cir] If no parent         303.442(b)(4).
         participation in 30
         days, complaint may be
         dismissed.
     Review      303.447(b).
     decision (30 days after
     request for review).
TIMELINES--DUE PROCESS (PART B)
 (S-Z):
    
     Sufficiency of complaint:
        [cir] Amended complaint    303.441(d)(3)(ii).
         (Hearing officer
         permits--Not later than
         five days before
         hearing).
        [cir] Complaint            303.441(d)(1).
         sufficient--unless party
         notifies hearing officer
         w/in 15 days.
        [cir] Hearing officer      303.441(d)(2).
         determination (within
         five days of notice).
     Timelines-- 303.447(a)-(c).
     convenience of hearings and
     reviews and exceptions to
     timelines.
     Timeline    303.443(e).
     for requesting a hearing
     (two years).
        [cir] Exception to         303.443(f).
         timeline.
TRACHEOSTOMY CARE (see Health      303.16(b)(1).
 services).
TRADITIONALLY UNDERSERVED GROUPS.  303.227.
     Purpose of  303.1(d).
     Early Intervention program
     (``Historically
     underrepresented
     populations'').
        [cir] See also
         ``Homeless,'' ``Low
         Income,'' ``Minority,''
         & ``Rural'' (children &/
         or families), and ``Ward
         of the State''.
     Scope of    303.302(b)(1)(ii).
     child find regarding
     selected groups.
     State       303.227.
     policies and practices.
TRAINING:
                 303.118.
     Comprehensive System of
     Personnel Development (CSPD).

[[Page 268]]

 
     In
     definition of ``Early
     Intervention services'' (see
     Sec. 303.13(b)(1)(ii)(E)
     (specific to AT services),
     (2)(iv) (specific to
     audiology services), (10)
     (specific to psychological
     services).
     Personnel   300.119.
     standards.
TRANSITION TO PRESCHOOL & OTHER
 PROGRAMS:
                 303.209(a).
     Application requirements.
     Conference  303.209(c).
     to discuss services.
     Council     303.604(b).
     functions--Advising &
     assisting on transition.
     Family      303.209(b).
     involvement; notification of
     local educational agency
     (LEA).
                 303.344(h).
     Individualized Family
     Service Plan (IFSP) content--
     Transition from Part C.
                 303.209(a)(3)(i)-(ii).
     Interagency agreement.
     Policies    303.209(a)(1).
     and procedures regarding.
     Program     303.209(d).
     options & transition plan.
     Service     303.34(b)(10).
     coordination services
     (Facilitating development of
     transition plan).
     Transition  303.209(d)(2).
     plan (Establish not fewer
     than 90 days, not more than
     nine months).
TRANSPORTATION & RELATED COSTS...  303.13(b)(16).
TRAUMA DUE TO EXPOSURE TO FAMILY   303.211(b)(7).
 VIOLENCE.
TRIBE (TRIBAL ORGANIZATION):
     Child       303.302(c)(1)(i).
     find--Coordination (tribes).
     Council--   303.601(c).
     Composition.
     Indian;     303.19.
     Indian tribe (Definition).
     Payments    303.731(a)(1), (2), (b), (c), (d),
     to Indians).                   (e).
TUBE FEEDING (Health service)....  303.16(b)(1).
UNDERREPRESENTED POPULATIONS.....  303.1(d).
     See also
     ``Traditionally underserved
     groups.''
USE OF FUNDS:
     Council     303.603.
     (Use of funds by).
                 303.205.
     Description of use of funds
     (Application requirement).
     Payments    303.731(d).
     to Indians (Use of funds).
     Payor of    303.510.
     last resort.
     Permissive  303.501.
     use of funds by lead agency.
     See
     ``Permissive use of funds by
     lead agency.''
     States      303.521(c).
     with FAPE mandates or that
     use Part B funds.
     See also
     ``Funds'' ``Funds--Part B,''
     ``Funds Part C,'' and
     ``Permissive use of funds by
     lead agency.''
USE OF FUNDS AND PAYOR OF LAST     300.500.
 RESORT.
VISION SERVICES:
     Early       303.13(b)(17).
     Intervention services
     (Definition).
VISUAL IMPAIRMENTS (or
 BLINDNESS):
     Special     303.13(c)(11).
     educators including teachers
     of children with visual
     impairments.
VISION SPECIALISTS...............  303.13(c)(13).
WARD OF THE STATE:
     Assurances  303.101(a)(1)(iii).
     regarding Early Intervention
     services.
     Child       303.302(b)(1)(ii).
     find--Scope.
     Definition  303.37.
        [cir] Exception (If child  303.37(b).
         has a foster parent
         under ``Parent'' Sec.
         303.27).
     Parent      303.27(a)(3).
     (Definition) ``Guardian''
     (but not State, if child is
     a ward of State).
     Surrogate   303.422(a)(3), (b)(2).
     parents.
                 303.227(a).
     Traditionally underserved
     groups.
``WELL-BABY'' CARE and
 IMMUNIZATIONS:
     Non-        303.16(c)(3).
     covered medical services.
WITHHOLDING:
     State       303.700(a)(3).
     monitoring and enforcement.
                 303.705.
     Withholding funds.
        [cir] Nature of            303.705(c).
         withholding.
        [cir] Withholding until    303.705(c)(2)
         rectified.
 


[[Page 269]]



PART 304_SERVICE OBLIGATIONS UNDER SPECIAL EDUCATION_PERSONNEL 
DEVELOPMENT TO IMPROVE SERVICES AND RESULTS FOR CHILDREN WITH 

DISABILITIES--Table of Contents



                            Subpart A_General

Sec.
304.1 Purpose.
304.3 Definitions.

            Subpart B_Conditions That Must Be Met by Grantee

304.21 Allowable costs.
304.22 Requirements for grantees in disbursing scholarships.
304.23 Assurances that must be provided by grantee.

            Subpart C_Conditions That Must Be Met by Scholar

304.30 Requirements for scholar.
304.31 Requirements for obtaining an exception or deferral to 
          performance or repayment under an agreement.

    Authority: 20 U.S.C. 1462(h), unless otherwise noted.

    Source: 71 FR 32398, June 5, 2006, unless otherwise noted.



                            Subpart A_General



Sec. 304.1  Purpose.

    Individuals who receive scholarship assistance from projects funded 
under the Special Education--Personnel Development to Improve Services 
and Results for Children with Disabilities program are required to 
complete a service obligation, or repay all or part of the costs of such 
assistance, in accordance with section 662(h) of the Act and the 
regulations of this part.

(Authority: 20 U.S.C. 1462(h))



Sec. 304.3  Definitions.

    The following definitions apply to this program:
    (a) Academic year means--
    (1) A full-time course of study--
    (i) Taken for a period totaling at least nine months; or
    (ii) Taken for the equivalent of at least two semesters, two 
trimesters, or three quarters; or
    (2) For a part-time scholar, the accumulation of periods of part-
time courses of study that is equivalent to an ``academic year'' under 
paragraph (a)(1) of this definition.
    (b) Act means the Individuals with Disabilities Education Act, as 
amended, 20 U.S.C. 1400 et seq.
    (c) Early intervention services means early intervention services as 
defined in section 632(4) of the Act and includes early intervention 
services to infants and toddlers with disabilities, and as applicable, 
to infants and toddlers at risk for disabilities under sections 632(1) 
and 632(5)(b) of the Act.
    (d) Full-time, for purposes of determining whether an individual is 
employed full-time in accordance with Sec. 304.30 means a full-time 
position as defined by the individual's employer or by the agencies 
served by the individual.
    (e) Related services means related services as defined in section 
602(26) of the Act.
    (f) Repayment means monetary reimbursement of scholarship assistance 
in lieu of completion of a service obligation.
    (g) Scholar means an individual who is pursuing a degree, license, 
endorsement, or certification related to special education, related 
services, or early intervention services and who receives scholarship 
assistance under section 662 of the Act.
    (h) Scholarship means financial assistance to a scholar for training 
under the program and includes all disbursements or credits for tuition, 
fees, stipends, books, and travel in conjunction with training 
assignments.
    (i) Service obligation means a scholar's employment obligation, as 
described in section 662(h) of the Act and Sec. 304.30.
    (j) Special education means special education as defined in section 
602(29) of the Act.

(Authority: 20 U.S.C. 1462(h))



            Subpart B_Conditions That Must be Met by Grantee



Sec. 304.21  Allowable costs.

    In addition to the allowable costs established in the Education 
Department General Administrative Regulations in

[[Page 270]]

34 CFR 75.530 through 75.562, the following items are allowable 
expenditures by projects funded under the program:
    (a) Cost of attendance, as defined in Title IV of the Higher 
Education Act of 1965, as amended, 20 U.S.C. 1087ll (HEA), including the 
following:
    (1) Tuition and fees.
    (2) An allowance for books, supplies, transportation, and 
miscellaneous personal expenses.
    (3) An allowance for room and board.
    (b) Stipends.
    (c) Travel in conjunction with training assignments.

(Authority: 20 U.S.C. 1462(h))



Sec. 304.22  Requirements for grantees in disbursing scholarships.

    Before disbursement of scholarship assistance to an individual, a 
grantee must--
    (a) Ensure that the scholar--
    (1) Is a citizen or national of the United States;
    (2) Is a permanent resident of--
    (i) Puerto Rico, the United States Virgin Islands, Guam, American 
Samoa, or the Commonwealth of the Northern Mariana Islands; or
    (ii) The Republic of the Marshall Islands, the Federated States of 
Micronesia, or the Republic of Palau during the period in which these 
entities are eligible to receive an award under the Personnel 
Development to Improve Services and Results for Children with 
Disabilities program; or
    (3) Provides evidence from the U.S. Department of Homeland Security 
that the individual is--
    (i) A lawful permanent resident of the United States; or
    (ii) In the United States for other than a temporary purpose with 
the intention of becoming a citizen or permanent resident;
    (b) Limit the cost of attendance portion of the scholarship 
assistance (as discussed in Sec. 304.21(a)) to the amount by which the 
individual's cost of attendance at the institution exceeds the amount of 
grant assistance the scholar is to receive for the same academic year 
under title IV of the HEA; and
    (c) Obtain a Certification of Eligibility for Federal Assistance 
from each scholar, as prescribed in 34 CFR 75.60, 75.61, and 75.62.

(Authority: 20 U.S.C. 1462(h))



Sec. 304.23  Assurances that must be provided by grantee.

    Before receiving an award, a grantee that intends to grant 
scholarships under the program must include in its application an 
assurance that the following requirements will be satisfied:
    (a) Requirement for agreement. Prior to granting a scholarship, the 
grantee will require each scholar to enter into a written agreement in 
which the scholar agrees to the terms and conditions set forth in Sec. 
304.30. This agreement must explain the Secretary's authority to grant 
deferrals and exceptions to the service obligation pursuant to Sec. 
304.31 and include the current Department address for purposes of the 
scholar's compliance with Sec. 304.30(i), or any other purpose under 
this part.
    (b) Standards for satisfactory progress. The grantee must establish, 
notify scholars of, and apply reasonable standards for measuring whether 
a scholar is maintaining satisfactory progress in the scholar's course 
of study.
    (c) Exit certification. (1) At the time of exit from the program, 
the grantee must provide the following information to the scholar:
    (i) The number of years the scholar needs to work to satisfy the 
work requirements in Sec. 304.30(d);
    (ii) The total amount of scholarship assistance received subject to 
Sec. 304.30;
    (iii) The time period, consistent with Sec. 304.30(f)(1), during 
which the scholar must satisfy the work requirements; and
    (iv) As applicable, all other obligations of the scholar under Sec. 
304.30.
    (2) Upon receipt of this information from the grantee, the scholar 
must provide written certification to the grantee that the information 
is correct.
    (d) Information. The grantee must forward the information and 
written certification required in paragraph (c) of this section to the 
Secretary, as well as any other information that is necessary to carry 
out the Secretary's functions under section 662 of the Act and this 
part.

[[Page 271]]

    (e) Notification to the Secretary. If the grantee is aware that the 
scholar has chosen not to fulfill or will be unable to fulfill the 
obligation under Sec. 304.30(d), the grantee must notify the Secretary 
when the scholar exits the program.

(Approved by the Office of Management and Budget under control number 
1820-0622)

(Authority: 20 U.S.C. 1462(h))



            Subpart C_Conditions That Must Be Met by Scholar



Sec. 304.30  Requirements for scholar.

    Individuals who receive scholarship assistance from grantees funded 
under section 662 of the Act must--
    (a) Training. Receive the training at the educational institution or 
agency designated in the scholarship;
    (b) Educational allowances. Not accept payment of educational 
allowances from any other entity if that allowance conflicts with the 
scholar's obligation under section 662 of the Act and this part;
    (c) Satisfactory progress. Maintain satisfactory progress toward the 
degree, certificate, endorsement, or license as determined by the 
grantee;
    (d) Service obligation. Upon exiting the training program under 
paragraph (a) of this section, subsequently maintain employment--
    (1) On a full-time or full-time equivalent basis; and
    (2) For a period of at least two years for every academic year for 
which assistance was received;
    (e) Eligible employment. In order to meet the requirements of 
paragraph (d) of this section for any project funded under section 662 
of the Act, be employed in a position in which--
    (1) At least 51 percent of the infants, toddlers, and children to 
whom the individual provides services are receiving special education, 
related services, or early intervention services from the individual;
    (2) The individual spends at least 51 percent of his or her time 
providing special education, related services, or early intervention 
services to infants, toddlers, and children with disabilities; or
    (3) If the position involves supervision (including in the capacity 
of a principal), teaching at the postsecondary level, research, policy, 
technical assistance, program development, or administration, the 
individual spends at least 51 percent of his or her time performing work 
related to the training for which a scholarship was received under 
section 662 of the Act.
    (f) Time period. Meet the service obligation under paragraph (d) of 
this section as follows:
    (1) A scholar must complete the service obligation within the period 
ending not more than the sum of the number of years required in 
paragraph (d)(2) of this section, as appropriate, plus five additional 
years, from the date the scholar completes the training for which the 
scholarship assistance was awarded.
    (2) A scholar may begin eligible employment subsequent to the 
completion of one academic year of the training for which the 
scholarship assistance was received that otherwise meets the 
requirements of paragraph (1);
    (g) Part-time scholars. If the scholar is pursuing coursework on a 
part-time basis, meet the service obligation in this section based on 
the accumulated academic years of training for which the scholarship is 
received;
    (h) Information upon exit. Provide the grantee all requested 
information necessary for the grantee to meet the exit certification 
requirements under Sec. 304.23(c);
    (i) Information after exit. Within 60 days after exiting the 
program, and as necessary thereafter for any changes, provide the 
Department, via U.S. mail, all information that the Secretary needs to 
monitor the scholar's service obligation under this section, including 
social security number, address, employment setting, and employment 
status;
    (j) Repayment. If not fulfilling the requirements in this section, 
subject to the provisions in Sec. 304.31 regarding an exception or 
deferral, repay any scholarship received, plus interest, in an amount 
proportional to the service obligation not completed as follows:
    (1) The Secretary charges the scholar interest on the unpaid balance 
owed in

[[Page 272]]

accordance with the Debt Collection Act of 1982, as amended, 31 U.S.C. 
3717.
    (2)(i) Interest on the unpaid balance accrues from the date the 
scholar is determined to have entered repayment status under paragraph 
(4) of this section.
    (ii) Any accrued interest is capitalized at the time the scholar's 
repayment schedule is established.
    (iii) No interest is charged for the period of time during which 
repayment has been deferred under Sec. 304.31.
    (3) Under the authority of the Debt Collection Act of 1982, as 
amended, the Secretary may impose reasonable collection costs.
    (4) A scholar enters repayment status on the first day of the first 
calendar month after the earliest of the following dates, as applicable:
    (i) The date the scholar informs the grantee or the Secretary that 
the scholar does not plan to fulfill the service obligation under the 
agreement.
    (ii) Any date when the scholar's failure to begin or maintain 
employment makes it impossible for that individual to complete the 
service obligation within the number of years required in Sec. 
304.30(f).
    (iii) Any date on which the scholar discontinues enrollment in the 
course of study under Sec. 304.30(a).
    (5) The scholar must make payments to the Secretary that cover 
principal, interest, and collection costs according to a schedule 
established by the Secretary.
    (6) Any amount of the scholarship that has not been repaid pursuant 
to paragraphs (j)(1) through (j)(5) of this section will constitute a 
debt owed to the United States that may be collected by the Secretary in 
accordance with 34 CFR part 30.

(Approved by the Office of Management and Budget under control number 
1820-0622)

(Authority: 20 U.S.C. 1462(h))



Sec. 304.31  Requirements for obtaining an exception or deferral to 
performance or repayment under an agreement.

    (a) Based upon sufficient evidence to substantiate the grounds, the 
Secretary may grant an exception to the repayment requirement in Sec. 
304.30(j), in whole or part, if the scholar--
    (1) Is unable to continue the course of study in Sec. 304.30 or 
perform the service obligation because of a permanent disability; or
    (2) Has died.
    (b) Based upon sufficient evidence to substantiate the grounds, the 
Secretary may grant a deferral of the repayment requirement in Sec. 
304.30(j) during the time the scholar--
    (1) Is engaging in a full-time course of study at an institution of 
higher education;
    (2) Is serving on active duty as a member of the armed services of 
the United States;
    (3) Is serving as a volunteer under the Peace Corps Act; or
    (4) Is serving as a full-time volunteer under title I of the 
Domestic Volunteer Service Act of 1973.

(Authority: 20 U.S.C. 1462(h))



PART 350_DISABILITY AND REHABILITATION RESEARCH PROJECTS AND CENTERS 
PROGRAM--Table of Contents



                            Subpart A_General

Sec.
350.1 What is the Disability and Rehabilitation Research Projects and 
          Centers Program?
350.2 What is the purpose of the Disability and Rehabilitation Research 
          Project and Centers Program?
350.3 Who is eligible for an award?
350.4 What regulations apply?
350.5 What definitions apply?

           Subpart B_What Projects Does the Secretary Assist?

350.10 What are the general requirements for Disability and 
          Rehabilitation Research Projects?
350.11 What are the general requirements for a Field-Initiated Project?
350.12 What are the general requirements for an Advanced Rehabilitation 
          Research Training Project?
350.13 What must a grantee do in carrying out a research activity?
350.14 What must a grantee do in carrying out a training activity?
350.15 What must a grantee do in carrying out a demonstration activity?
350.16 What must a grantee do in carrying out a development activity?
350.17 What must a grantee do in carrying out a utilization activity?
350.18 What must a grantee do in carrying out a dissemination activity?

[[Page 273]]

350.19 What must a grantee do in carrying out a technical assistance 
          activity?

  Subpart C_What Rehabilitation Research and Training Centers Does the 
                            Secretary Assist?

350.20 What general requirements must a Rehabilitation Research and 
          Training Center meet?
350.21 What collaboration must a Rehabilitation Research and Training 
          Center engage in?
350.22 What activities must a Rehabilitation Research and Training 
          Center conduct?
350.23 What restriction exists on Rehabilitation Research and Training 
          Centers regarding indirect costs?

  Subpart D_What Rehabilitation Engineering Research Centers Does the 
                            Secretary Assist?

350.30 What requirements must a Rehabilitation Engineering Research 
          Center meet?
350.31 What collaboration must a Rehabilitation Engineering Research 
          Center engage in?
350.32 What activities must a Rehabilitation Engineering Research Center 
          conduct?
350.33 What cooperation requirements must a Rehabilitation Engineering 
          Research Center meet?
350.34 Which Rehabilitation Engineering Research Centers must have an 
          advisory committee?
350.35 What are the requirements for the composition of an advisory 
          committee?

               Subpart E_How Does One Apply for an Award?

350.40 What is required of each applicant regarding the needs of 
          individuals with disabilities from minority backgrounds?
350.41 What State agency review must an applicant under the Disability 
          and Rehabilitation Research Projects and Centers Program 
          obtain?

             Subpart F_How Does the Secretary Make an Award?

350.50 What is the peer review process for this Program?
350.51 What is the purpose of peer review?
350.52 What is the composition of a peer review panel?
350.53 How does the Secretary evaluate an application?
350.54 What selection criteria does the Secretary use in evaluating an 
          application?
350.55 What are the additional considerations for selecting Field-
          Initiated Project applications for funding?

          Subpart G_What Conditions Must Be Met After an Award?

350.60 How must a grantee conduct activities?
350.61 What evaluation requirements must a grantee meet?
350.62 What are the matching requirements?
350.63 What are the requirements of a grantee relative to the Client 
          Assistance Program?
350.64 What is the required duration of the training in an Advanced 
          Rehabilitation Research Training Project?
350.65 What level of participation is required of trainees in an 
          Advanced Rehabilitation Research Training Project?
350.66 What must a grantee include in a patent application?

    Authority: Sec. 204; 29 U.S.C. 761-762, unless otherwise noted.

    Source: 62 FR 5713, Feb. 6, 1997, unless otherwise noted.



                            Subpart A_General



Sec. 350.1  What is the Disability and Rehabilitation Research Projects
and Centers Program?

    The Disability and Rehabilitation Research Projects and Centers 
Program provides grants to establish and support--
    (a) The following Disability and Rehabilitation Research and Related 
Projects:
    (1) Disability and Rehabilitation Research Projects.
    (2) Field-Initiated Projects.
    (3) Advanced Rehabilitation Research Training Projects; and
    (b) The following Disability and Rehabilitation Research Centers:
    (1) Rehabilitation Research and Training Centers.
    (2) Rehabilitation Engineering Research Centers.

(Authority: Sec. 204; 29 U.S.C. 762)

[[Page 274]]



Sec. 350.2  What is the purpose of the Disability and Rehabilitation 
Research Project and Centers Program?

    The purpose of the Disability and Rehabilitation Research Project 
and Centers Program is to plan and conduct research, demonstration 
projects, training, and related activities, including international 
activities, to--
    (a) Develop methods, procedures, and rehabilitation technology, that 
maximize the full inclusion and integration into society, employment, 
independent living, family support, and economic and social self-
sufficiency of individuals with disabilities, especially individuals 
with the most severe disabilities; and
    (b) Improve the effectiveness of services authorized under the Act.

(Authority: Secs. 204(a) and (b)(6); 29 U.S.C. 762(a) and (b)(6))



Sec. 350.3  Who is eligible for an award?

    The following entities are eligible for an award under this program:
    (a) States.
    (b) Public or private agencies, including for-profit agencies.
    (c) Public or private organizations, including for-profit 
organizations.
    (d) Institutions of higher education.
    (e) Indian tribes and tribal organizations.

(Authority: Sec. 204(a); 29 U.S.C. 762(a))



Sec. 350.4  What regulations apply?

    The following regulations apply to the Disability and Rehabilitation 
Research Projects and Centers Program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants and Agreements with 
Institutions of Higher Education, Hospitals, and Other Non-profit 
Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (5) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (6) 34 CFR part 82 (New Restrictions on Lobbying).
    (7) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (8) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 350.
    (c)(1) Subject to the additional requirement in paragraph (c)(2) of 
this section, 34 CFR part 97 (Protection of Human Subjects).
    (2) If an institutional review board (IRB) reviews research that 
purposefully requires inclusion of children with disabilities or 
individuals with mental disabilities as research subjects, the IRB must 
have at least one member who is primarily concerned with the welfare of 
these research subjects.

(Authority: 29 U.S.C. 761a, 762, 42 U.S.C. 300v-1(b))



Sec. 350.5  What definitions apply?

    (a) The following definitions in 34 CFR part 77 apply to this part--

Applicant
Application
Award
Budget
Department
EDGAR
Equipment
Facilities
Grant
Grantee
Nonprofit
Private
Project
Project period
Public
Recipient
Secretary
Supplies
State


(Authority: Sec. 202(i)(1); 29 U.S.C. 761a(i)(1))

    (b) The following definitions also apply to this part.
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701, et seq.), 
as amended.


(Authority: Sec. 202(i)(1); (29 U.S.C. 761a(i)(1))

    Assistive technology device means any item, piece of equipment, or 
product

[[Page 275]]

system, whether acquired commercially or off the shelf, modified, or 
customized, that is used to increase, maintain, or improve functional 
capabilities of individuals with disabilities.


(Authority: Sec. 7(23); 29 U.S.C. 706(23))

    Assistive technology service means any service that directly assists 
an individual with a disability in the selection, acquisition, or use of 
an assistive technology device, including--
    (1) The evaluation of the needs of an individual with a disability, 
including a functional evaluation of the individual in the individual's 
customary environment;
    (2) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by individuals with disabilities;
    (3) Selecting, designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing assistive technology devices;
    (4) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing education and rehabilitation plans and programs;
    (5) Training or technical assistance for individuals with 
disabilities, or, if appropriate, their family members, guardians, 
advocates, or authorized representatives; and
    (6) Training or technical assistance for professionals (including 
individuals providing education and rehabilitation services), employers, 
or other individuals who provide services to employ, or are otherwise 
substantially involved in the major life functions of, individuals with 
disabilities.


(Authority: Sec. 7(24); 29 U.S.C. 706(24))

    Disability means a physical or mental impairment that substantially 
limits one or more major life activities.


(Authority: Sec. 202(i)(1); 29 U.S.C. 761a(i)(1))

    Individual with a disability means any individual who:
    (1) Has a physical or mental impairment that substantially limits 
one or more of the individual's major life activities;
    (2) Has a record of this impairment; or
    (3) Is regarded as having this impairment.


(Authority: Sec. 7(8)(B); 29 U.S.C. 706(8)(B))

    Individual with a severe disability means--
    (1)(i) An individual with a disability who has a severe physical or 
mental impairment that seriously limits one or more functional 
capacities (such as mobility, communication, self-care, self-direction, 
interpersonal skills, work tolerance, or work skills) in terms of an 
employment outcome;
    (ii) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (iii) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental 
retardation, mental illness, multiple sclerosis, muscular dystrophy, 
musculoskeletal disorders, neurological disorders (including stroke and 
epilepsy), paraplegia, quadriplegia, other spinal cord impairments, 
sickle cell anemia, specific learning disability, end-stage renal 
disease, or another disability or combination of disabilities determined 
on the basis of an assessment of rehabilitation needs to cause 
comparable substantial functional limitation; or
    (2) An individual with a severe mental or physical impairment whose 
ability to function independently in the 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 the ability to function, continue functioning, or move towards 
functioning independently in the family or community or to continue in 
employment, respectively.


(Authority: Sec. 7(15)(C); 29 U.S.C. 706(15)(C))

    Personal assistance services means a range of services, provided by 
one or more persons, designed to assist an individual with a disability 
to perform daily living activities, on and off the

[[Page 276]]

job, that the individual would typically perform if the individual did 
not have a disability. These services must be designed to increase the 
individual's control in life and ability to perform everyday activities 
on and off the job.


(Authority: Sec. 12(c); 29 U.S.C. 711(c))

    Rehabilitation technology means the systematic application of 
technologies, engineering methodologies, or scientific principles to 
meet the needs of and address the barriers confronted by individuals 
with disabilities in such areas as education, rehabilitation, 
employment, transportation, independent living, and recreation, and 
includes rehabilitation engineering, assistive technology devices, and 
assistive technology services.

(Authority: Sec. 7(13); 29 U.S.C. 706(13))

    Research is classified on a continuum from basic to applied:
    (1) Basic research is research in which the investigator is 
concerned primarily with gaining new knowledge or understanding of a 
subject without reference to any immediate application or utility.
    (2) Applied research is research in which the investigator is 
primarily interested in developing new knowledge, information or 
understanding which can be applied to a predetermined rehabilitation 
problem or need. Applied research builds on selected findings from basic 
research.

(Authority: Sec. 202(i)(1); 29 U.S.C. 761a(i)(1))

    State rehabilitation agency means the sole State agency designated 
to administer (or supervise local administration of) the State plan for 
vocational rehabilitation services. The term includes the State agency 
for the blind, if designated as the State agency with respect to that 
part of the plan relating to the vocational rehabilitation of blind 
individuals.

(Authority: Sec. 101(a)(1)(A); 29 U.S.C. 721(a)(1)(A))

    Target population means the group of individuals, organizations, or 
other entities expected to be affected by the project. More than one 
group may be involved since a project may affect those who receive 
services, provide services, or administer services.

(Authority: Sec. 202(i)(1); 29 U.S.C. 761a(i)(1))



           Subpart B_What Projects Does the Secretary Assist?



Sec. 350.10  What are the general requirements for Disability and 
Rehabilitation Research Projects?

    Disability and Rehabilitation Research Projects must meet the 
following requirements:
    (a) Carry out one or more of the following types of activities, as 
specified in Sec. Sec. 350.13-350.19:
    (1) Research.
    (2) Development.
    (3) Demonstration.
    (4) Training.
    (5) Dissemination.
    (6) Utilization.
    (7) Technical assistance.
    (b) Further one or more of the purposes listed in Sec. 350.2.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.11  What are the general requirements for a Field-Initiated
Project?

    A Field-Initiated Project must--
    (a) Further one or more of the purposes in Sec. 350.2; and
    (b) Carry out one of the following types of activities:
    (1) Research.
    (2) Development.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.12  What are the general requirements for an Advanced 
Rehabilitation Research Training Project?

    An Advanced Rehabilitation Research Training Project must--
    (a) Provide research training and experience at an advanced level to 
individuals with doctorates or similar advanced degrees who have 
clinical or other relevant experience;
    (b) Further one or more of the purposes in Sec. 350.2; and
    (c) Carry out all of the following activities:
    (1) Recruitment and selection of candidates for advanced research 
training.
    (2) Provision of a training program that includes didactic and 
classroom instruction, is multidisciplinary, and emphasizes scientific 
methodology, and

[[Page 277]]

may involve collaboration among institutions.
    (3) Provision of research experience, laboratory experience or its 
equivalent in a community-based research setting, and a practicum that 
involve each individual in clinical research and in practical activities 
with organizations representing individuals with disabilities.
    (4) Provision of academic mentorship or guidance, and opportunities 
for scientific collaboration with qualified researchers at the host 
university and other appropriate institutions.
    (5) Provision of opportunities for participation in the development 
of professional presentations and publications, and for attendance at 
professional conferences and meetings as appropriate for the 
individual's field of study and level of experience.

(Authority: Sec. 202(k); 29 U.S.C. 761a(k))



Sec. 350.13  What must a grantee do in carrying out a research  
activity?

    In carrying out a research activity under this program, a grantee 
shall--
    (a) Identify one or more hypotheses; and
    (b) Based on the hypotheses identified, perform an intensive 
systematic study directed toward--
    (1) New or full scientific knowledge; or
    (2) Understanding of the subject or problem studied.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.14  What must a grantee do in carrying out a training 
activity?

    In carrying out a training activity under this program, a grantee 
shall conduct a planned and systematic sequence of supervised 
instruction that is designed to impart predetermined skills and 
knowledge.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.15  What must a grantee do in carrying out a demonstration 
activity?

    In carrying out a demonstration activity under this program, a 
grantee shall apply results derived from previous research, testing, or 
practice to determine the effectiveness of a new strategy or approach.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.16  What must a grantee do in carrying out a development 
activity?

    In carrying out a development activity under this program, a grantee 
must use knowledge and understanding gained from research to create 
materials, devices, systems, or methods beneficial to the target 
population, including design and development of prototypes and 
processes.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.17  What must a grantee do in carrying out a utilization 
activity?

    In carrying out a utilization activity under this program, a grantee 
must relate research findings to practical applications in planning, 
policy making, program administration, and delivery of services to 
individuals with disabilities.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.18  What must a grantee do in carrying out a dissemination
activity?

    In carrying out a dissemination activity under this program, a 
grantee must systematically distribute information or knowledge through 
a variety of ways to potential users or beneficiaries.

(Authority: Sec. 202; 29 U.S.C. 761a)



Sec. 350.19  What must a grantee do in carrying out a technical
assistance activity?

    In carrying out a technical assistance activity under this program, 
a grantee must provide expertise or information for use in problem-
solving.

(Authority: Sec. 202; 29 U.S.C. 761a)



  Subpart C_What Rehabilitation Research and Training Centers Does the 
                            Secretary Assist?



Sec. 350.20  What general requirements must a Rehabilitation Research 
and Training Center meet?

    A Rehabilitation Research and Training Center shall--
    (a) Plan and conduct activities that further one or more of the 
purposes listed in Sec. 350.2;

[[Page 278]]

    (b) Serve as a center of national excellence and as a national or 
regional resource for providers and individuals with disabilities and 
the parents, family members, guardians, advocates, or authorized 
representatives of the individuals;
    (c) Be of sufficient size, scope, and quality to effectively carry 
out the activities in an efficient manner consistent with appropriate 
State and Federal law; and
    (d) Be able to carry out training activities either directly or 
through another entity that can provide such training.

(Authority: Secs. 204(b) and (b)(2)(K); 29 U.S.C. 762(b) and (b)(2)(K))



Sec. 350.21  What collaboration must a Rehabilitation Research and 
Training Center engage in?

    A Rehabilitation Research and Training Center must be operated by or 
in collaboration with--
    (a) One or more institutions of higher education; or
    (b) One or more providers of rehabilitation or other appropriate 
services.

(Authority: Sec. 204(b)(2); 29 U.S.C. 762(b)(2))



Sec. 350.22  What activities must a Rehabilitation Research and 
Training Center conduct?

    A Rehabilitation Research and Training Center shall--
    (a) Carry out research activities by conducting coordinated and 
advanced programs of research in rehabilitation targeted toward the 
production of new knowledge that will--
    (1) Improve rehabilitation methodology and service delivery systems;
    (2) Alleviate or stabilize disabling conditions; and
    (3) Promote maximum social and economic independence of individuals 
with disabilities;
    (b) Conduct training activities by providing training (including 
graduate, pre-service, and in-service training) to assist--
    (1) Rehabilitation personnel and other individuals to more 
effectively provide rehabilitation services; and
    (2) Rehabilitation research personnel and other rehabilitation 
personnel to improve their capacity to conduct research; and
    (c) Conduct technical assistance activities by serving as an 
informational and technical assistance resource for providers, 
individuals with disabilities, and the parents, family members, 
guardians, advocates, or authorized representatives of the individuals 
with disabilities, through conferences, workshops, public education 
programs, in-service training programs, and similar activities.



Sec. 350.23  What restriction exists on Rehabilitation Research and 
Training Centers regarding indirect costs?

    A host institution with which a Rehabilitation Research and Training 
Center is affiliated may not collect more than fifteen percent of the 
total grant award as indirect cost charges, notwithstanding the 
provisions in 34 CFR 75.562.

(Authority: Sec. 204(b)(2)(O); 29 U.S.C. 762(b)(2)(O))



  Subpart D_What Rehabilitation Engineering Research Centers Does the 
                            Secretary Assist?



Sec. 350.30  What requirements must a Rehabilitation Engineering
Research Center meet?

    A Rehabilitation Engineering Research Center shall plan and conduct 
activities that--
    (a) Further one or more of the purposes listed in Sec. 350.2; and
    (b)(1) Lead to the development of methods, procedures, and devices 
that will benefit individuals with disabilities, especially those with 
the most severe disabilities; or
    (2) Involve rehabilitation technology and enhance opportunities for 
meeting the needs of, and addressing the barriers confronted by, 
individuals with disabilities in all aspects of their lives.

(Authority: Sec. 204(b)(3); 29 U.S.C. 762(b)(3))



Sec. 350.31  What collaboration must a Rehabilitation Engineering 
Research Center engage in?

    A Rehabilitation Engineering Research Center must be operated by or 
in collaboration with--
    (a) One or more institutions of higher education; or

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    (b) One or more nonprofit organizations.

(Authority: Sec. 204(b)(3); 29 U.S.C. 762(b)(3))



Sec. 350.32  What activities must a Rehabilitation Engineering 
Research Center conduct?

    A Rehabilitation Engineering Research Center shall--
    (a) Conduct research or demonstration activities by using one or 
more of the following strategies:
    (1) Developing and disseminating innovative methods of applying 
advanced technology, scientific achievement, and psychological and 
social knowledge to solve rehabilitation problems and remove 
environmental barriers through--
    (i) Planning and conducting research, including cooperative research 
with public or private agencies and organizations, designed to produce 
new scientific knowledge and new or improved methods, equipment, or 
devices; and
    (ii) Studying and evaluating new or emerging technologies, products, 
or environments and their effectiveness and benefits.
    (2) Demonstrating and disseminating--
    (i) Innovative models for the delivery to rural and urban areas of 
cost-effective rehabilitation technology services that will promote the 
use of assistive technology services; and
    (ii) Other scientific research to assist in meeting the employment 
and independent living needs of individuals with severe disabilities.
    (3) Conducting research and demonstration activities that facilitate 
service delivery systems change by demonstrating, evaluating, 
documenting, and disseminating--
    (i) Consumer-responsive and individual and family-centered 
innovative models for the delivery, to both rural and urban areas, of 
innovative, cost-effective rehabilitation technology services that 
promote use of rehabilitation technology; and
    (ii) Other scientific research to assist in meeting the employment 
and independent living needs of, and addressing the barriers confronted 
by individuals with disabilities, including individuals with severe 
disabilities;
    (b) To the extent consistent with the nature and type of research or 
demonstration activities described in paragraph (a) of this section, 
carry out research, training, and information dissemination activities 
by--
    (1) Providing training opportunities to individuals, including 
individuals with disabilities, to enable them to become rehabilitation 
technology researchers and practitioners of rehabilitation technology in 
conjunction with institutions of higher education and nonprofit 
organizations; and
    (2) Responding, through research or demonstration activities, to the 
needs of individuals with all types of disabilities who may benefit from 
the application of technology within the subject area of focus of the 
Center.
    (c) Conduct orientation seminars for rehabilitation service 
personnel to improve the application of rehabilitation technology;
    (d) Conduct activities that specifically demonstrate means for 
utilizing rehabilitation technology; and
    (e) Provide technical assistance and consultation that are 
responsive to concerns of service providers and consumers.

(Authority: Sec. 204(b)(3); 29 U.S.C. 762(b)(3))



Sec. 350.33  What cooperation requirements must a Rehabilitation 
Engineering Research Center meet?

    A Rehabilitation Engineering Research Center--
    (a) Shall cooperate with State agencies and other local, State, 
regional, and national programs and organizations developing or 
delivering rehabilitation technology, including State programs funded 
under the Technology-Related Assistance for Individuals With 
Disabilities Act of 1988 (29 U.S.C. 2201 et seq.); and
    (b) To the extent consistent with the nature and type of research or 
demonstration activities described in Sec. 350.32(a), shall cooperate 
with the entities described in paragraph (a) of this section to provide 
information to individuals with disabilities and their parents, family 
members, guardians, advocates, or authorized representatives, to--

[[Page 280]]

    (1) Increase awareness and understanding of how rehabilitation 
technology can address their needs; and
    (2) Increase awareness and understanding of the range of options, 
programs, services, and resources available, including financing options 
for the technology and services covered by the subject area of focus of 
the Center.

(Authority: Sec. 204(b)(3) and (c); 29 U.S.C. 762(b)(3) and (c))



Sec. 350.34  Which Rehabilitation Engineering Research Centers must 
have an advisory committee?

    A Rehabilitation Engineering Research Center conducting research or 
demonstration activities that facilitate service delivery systems change 
must have an advisory committee.

(Authority: Sec. 204 (b)(3)(D); 29 U.S.C. 762 (b)(3)(D))



Sec. 350.35  What are the requirements for the composition of an 
advisory committee?

    The majority of a Rehabilitation Engineering Research Center 
advisory committee's members must be comprised of individuals with 
disabilities who are users of rehabilitation technology, or their 
parents, family members, guardians, advocates, or authorized 
representatives.

(Authority: Sec. 204(b)(3)(D); 29 U.S.C. 762(b)(3)(D))



               Subpart E_How Does One Apply for an Award?



Sec. 350.40  What is required of each applicant regarding the needs
of individuals with disabilities from minority backgrounds?

    (a) Unless the Secretary indicates otherwise in a notice published 
in the Federal Register, an applicant for assistance under this program 
must demonstrate in its application how it will address, in whole or in 
part, the needs of individuals with disabilities from minority 
backgrounds.
    (b) The approaches an applicant may take to meet this requirement 
may include one or more of the following:
    (1) Proposing project objectives addressing the needs of individuals 
with disabilities from minority backgrounds.
    (2) Demonstrating that the project will address a problem that is of 
particular significance to individuals with disabilities from minority 
backgrounds.
    (3) Demonstrating that individuals from minority backgrounds will be 
included in study samples in sufficient numbers to generate information 
pertinent to individuals with disabilities from minority backgrounds.
    (4) Drawing study samples and program participant rosters from 
populations or areas that include individuals from minority backgrounds.
    (5) Providing outreach to individuals with disabilities from 
minority backgrounds to ensure that they are aware of rehabilitation 
services, clinical care, or training offered by the project.
    (6) Disseminating materials to or otherwise increasing the access to 
disability information among minority populations.

(Approved by the Office of Management and Budget under control number 
1820-0027)

(Authority: Sec. 21(b)(6); 29 U.S.C. 718b(b)(6))



Sec. 350.41  What State agency review must an applicant under the 
Disability and Rehabilitation Research Projects and Centers Program 

obtain?

    (a) An applicant that proposes to conduct research, demonstrations, 
or related activities that will either involve clients of the State 
vocational rehabilitation agency as research subjects or study 
vocational rehabilitation services or techniques under this program, 
shall follow the requirements in 34 CFR 75.155 through 75.159.
    (b) For the purposes of this Program, State as used in 34 CFR 75.155 
through 75.159 means the State rehabilitation agency or agencies in the 
primary State or States to be affected by the proposed activities.

(Authority: Secs. 204(c) and 306(i); 29 U.S.C. 762(c) and 766(a))

[[Page 281]]



             Subpart F_How Does the Secretary Make an Award?



Sec. 350.50  What is the peer review process for this Program?

    (a) The Secretary refers each application for a grant governed by 
those regulations in this part to a peer review panel established by the 
Secretary.
    (b) Peer review panels review applications on the basis of the 
applicable selection criteria in Sec. 350.54.

(Authority: Sec. 202(e); 29 U.S.C. 761a(e))



Sec. 350.51  What is the purpose of peer review?

    The purpose of peer review is to insure that--
    (a) Those activities supported by the National Institute on 
Disability and Rehabilitation Research (NIDRR) are of the highest 
scientific, administrative, and technical quality; and
    (b) Activity results may be widely applied to appropriate target 
populations and rehabilitation problems.

(Authority: Sec. 202(e); 29 U.S.C. 761a(e))



Sec. 350.52  What is the composition of a peer review panel?

    (a) The Secretary selects as members of a peer review panel 
scientists and other experts in rehabilitation or related fields who are 
qualified, on the basis of training, knowledge, or experience, to give 
expert advice on the merit of the applications under review.
    (b) Applications for awards of $60,000 or more, except those for the 
purposes of evaluation, dissemination of information, or conferences, 
must be reviewed by a peer review panel that consists of a majority of 
non-Federal members.
    (c) In selecting members to serve on a peer review panel, the 
Secretary takes into account all of the following factors:
    (1) The level of formal scientific or technical education completed 
by potential panel members.
    (2)(i) The extent to which potential panel members have engaged in 
scientific, technical, or administrative activities appropriate to the 
category of applications that the panel will consider;
    (ii) The roles of potential panel members in those activities; and
    (iii) The quality of those activities.
    (3) The recognition received by potential panel members as reflected 
by awards and other honors from scientific and professional agencies and 
organizations outside the Department.
    (4) Whether the panel includes knowledgeable individuals with 
disabilities, or parents, family members, guardians, advocates, or 
authorized representatives of individuals with disabilities.
    (5) Whether the panel includes individuals from diverse populations.

(Authority: Secs. 18 and 202(e); 29 U.S.C. 717 and 761a(e))



Sec. 350.53  How does the Secretary evaluate an application?

    (a)(1)(i) The Secretary selects one or more of the selection 
criteria in Sec. 350.54 to evaluate an application;
    (ii) The Secretary establishes selection criteria based on statutory 
provisions that apply to the Program which may include, but are not 
limited to--
    (A) Specific statutory selection criteria;
    (B) Allowable activities;
    (C) Application content requirements; or
    (D) Other pre-award and post-award conditions; or
    (iii) The Secretary uses a combination of selection criteria 
established under paragraph (a)(1)(ii) of this section and selection 
criteria in Sec. 350.54.
    (2) For Field-Initiated Projects, the Secretary does not consider 
Sec. 350.54(b) (Responsiveness to the Absolute or Competitive Priority) 
in evaluating an application.
    (b)(1) In considering selection criteria in Sec. 350.54, the 
Secretary selects one or more of the factors listed in the criteria 
except as provided for in paragraph (b)(2) of this section.
    (2) Under Sec. 350.54, the Secretary always considers the factor in 
paragraph (n)(2) of that section.
    (c) The maximum possible score for an application is 100 points.
    (d)(1) In the application package or a notice published in the 
Federal Register, the Secretary informs applicants of--
    (i)(A) The selection criteria chosen; and

[[Page 282]]

    (B) The maximum possible score for each of the selection criteria; 
and
    (ii)(A) The factors selected for considering the selection criteria; 
and
    (B) If points are assigned to each factor, the maximum possible 
score for each factor under each criterion.
    (2) If no points are assigned to each factor, the Secretary 
evaluates each factor equally.
    (e) For Field-Initiated Projects, in addition to the selection 
criteria, the Secretary uses the additional considerations in selecting 
applications for funding as described in Sec. 350.55.

(Authority: Sec. 202(e); 29 U.S.C. 761a(e))



Sec. 350.54  What selection criteria does the Secretary use in 
evaluating an application?

    In addition to criteria established under Sec. 350.53(a)(1)(ii), 
the Secretary may select one or more of the following criteria in 
evaluating an application:
    (a) Importance of the problem. (1) The Secretary considers the 
importance of the problem.
    (2) In determining the importance of the problem, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the applicant clearly describes the need and 
target population.
    (ii) The extent to which the proposed activities further the 
purposes of the Act.
    (iii) The extent to which the proposed activities address a 
significant need of one or more disabled populations.
    (iv) The extent to which the proposed activities address a 
significant need of rehabilitation service providers.
    (v) The extent to which the proposed activities address a 
significant need of those who provide services to individuals with 
disabilities.
    (vi) The extent to which the applicant proposes to provide training 
in a rehabilitation discipline or area of study in which there is a 
shortage of qualified researchers, or to a trainee population in which 
there is a need for more qualified researchers.
    (vii) The extent to which the proposed project will have beneficial 
impact on the target population.
    (b) Responsiveness to an absolute or competitive priority. (1) The 
Secretary considers the responsiveness of the application to an absolute 
or competitive priority published in the Federal Register.
    (2) In determining the application's responsiveness to the absolute 
or competitive priority, the Secretary considers one or more of the 
following factors:
    (i) The extent to which the applicant addresses all requirements of 
the absolute or competitive priority.
    (ii) The extent to which the applicant's proposed activities are 
likely to achieve the purposes of the absolute or competitive priority.
    (c) Design of research activities. (1) The Secretary considers the 
extent to which the design of research activities is likely to be 
effective in accomplishing the objectives of the project.
    (2) In determining the extent to which the design is likely to be 
effective in accomplishing the objectives of the project, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the research activities constitute a 
coherent, sustained approach to research in the field, including a 
substantial addition to the state-of-the-art.
    (ii) The extent to which the methodology of each proposed research 
activity is meritorious, including consideration of the extent to 
which--
    (A) The proposed design includes a comprehensive and informed review 
of the current literature, demonstrating knowledge of the state-of-the-
art;
    (B) Each research hypothesis is theoretically sound and based on 
current knowledge;
    (C) Each sample population is appropriate and of sufficient size;
    (D) The data collection and measurement techniques are appropriate 
and likely to be effective; and
    (E) The data analysis methods are appropriate.
    (iii) The extent to which anticipated research results are likely to 
satisfy the original hypotheses and could be used for planning 
additional research, including generation of new hypotheses where 
applicable.
    (d) Design of development activities. (1) The Secretary considers 
the extent to

[[Page 283]]

which the design of development activities is likely to be effective in 
accomplishing the objectives of the project.
    (2)(i) In determining the extent to which the design is likely to be 
effective in accomplishing the objectives of the project, the Secretary 
considers one or more of the following factors:
    (ii) The extent to which the plan for development, clinical testing, 
and evaluation of new devices and technology is likely to yield 
significant products or techniques, including consideration of the 
extent to which--
    (A) The proposed project will use the most effective and appropriate 
technology available in developing the new device or technique;
    (B) The proposed development is based on a sound conceptual model 
that demonstrates an awareness of the state-of-the-art in technology;
    (C) The new device or technique will be developed and tested in an 
appropriate environment;
    (D) The new device or technique is likely to be cost-effective and 
useful;
    (E) The new device or technique has the potential for commercial or 
private manufacture, marketing, and distribution of the product; and
    (F) The proposed development efforts include adequate quality 
controls and, as appropriate, repeated testing of products.
    (e) Design of demonstration activities. (1) The Secretary considers 
the extent to which the design of demonstration activities is likely to 
be effective in accomplishing the objectives of the project.
    (2) In determining the extent to which the design is likely to be 
effective in accomplishing the objectives of the project, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the proposed demonstration activities build 
on previous research, testing, or practices.
    (ii) The extent to which the proposed demonstration activities 
include the use of proper methodological tools and theoretically sound 
procedures to determine the effectiveness of the strategy or approach.
    (iii) The extent to which the proposed demonstration activities 
include innovative and effective strategies or approaches.
    (iv) The extent to which the proposed demonstration activities are 
likely to contribute to current knowledge and practice and be a 
substantial addition to the state-of-the-art.
    (v) The extent to which the proposed demonstration activities can be 
applied and replicated in other settings.
    (f) Design of training activities. (1) The Secretary considers the 
extent to which the design of training activities is likely to be 
effective in accomplishing the objectives of the project.
    (2) In determining the extent to which the design is likely to be 
effective in accomplishing the objectives of the project, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the proposed training materials are likely 
to be effective, including consideration of their quality, clarity, and 
variety.
    (ii) The extent to which the proposed training methods are of 
sufficient quality, intensity, and duration.
    (iii) The extent to which the proposed training content--
    (A) Covers all of the relevant aspects of the subject matter; and
    (B) If relevant, is based on new knowledge derived from research 
activities of the proposed project.
    (iv) The extent to which the proposed training materials, methods, 
and content are appropriate to the trainees, including consideration of 
the skill level of the trainees and the subject matter of the materials.
    (v) The extent to which the proposed training materials and methods 
are accessible to individuals with disabilities.
    (vi) The extent to which the applicant's proposed recruitment 
program is likely to be effective in recruiting highly qualified 
trainees, including those who are individuals with disabilities.
    (vii) The extent to which the applicant is able to carry out the 
training activities, either directly or through another entity.
    (viii) The extent to which the proposed didactic and classroom 
training programs emphasize scientific methodology and are likely to 
develop highly qualified researchers.

[[Page 284]]

    (ix) The extent to which the quality and extent of the academic 
mentorship, guidance, and supervision to be provided to each individual 
trainee are of a high level and are likely to develop highly qualified 
researchers.
    (x) The extent to which the type, extent, and quality of the 
proposed clinical and laboratory research experience, including the 
opportunity to participate in advanced-level research, are likely to 
develop highly qualified researchers.
    (xi) The extent to which the opportunities for collegial and 
collaborative activities, exposure to outstanding scientists in the 
field, and opportunities to participate in the preparation of scholarly 
or scientific publications and presentations are extensive and 
appropriate.
    (g) Design of dissemination activities. (1) The Secretary considers 
the extent to which the design of dissemination activities is likely to 
be effective in accomplishing the objectives of the project.
    (2) In determining the extent to which the design is likely to be 
effective in accomplishing the objectives of the project, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the content of the information to be 
disseminated--
    (A) Covers all of the relevant aspects of the subject matter; and
    (B) If appropriate, is based on new knowledge derived from research 
activities of the project.
    (ii) The extent to which the materials to be disseminated are likely 
to be effective and usable, including consideration of their quality, 
clarity, variety, and format.
    (iii) The extent to which the methods for dissemination are of 
sufficient quality, intensity, and duration.
    (iv) The extent to which the materials and information to be 
disseminated and the methods for dissemination are appropriate to the 
target population, including consideration of the familiarity of the 
target population with the subject matter, format of the information, 
and subject matter.
    (v) The extent to which the information to be disseminated will be 
accessible to individuals with disabilities.
    (h) Design of utilization activities. (1) The Secretary considers 
the extent to which the design of utilization activities is likely to be 
effective in accomplishing the objectives of the project.
    (2) In determining the extent to which the design is likely to be 
effective in accomplishing the objectives of the project, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the potential new users of the information 
or technology have a practical use for the information and are likely to 
adopt the practices or use the information or technology, including new 
devices.
    (ii) The extent to which the utilization strategies are likely to be 
effective.
    (iii) The extent to which the information or technology is likely to 
be of use in other settings.
    (i) Design of technical assistance activities. (1) The Secretary 
considers the extent to which the design of technical assistance 
activities is likely to be effective in accomplishing the objectives of 
the project.
    (2) In determining the extent to which the design is likely to be 
effective in accomplishing the objectives of the project, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the methods for providing technical 
assistance are of sufficient quality, intensity, and duration.
    (ii) The extent to which the information to be provided through 
technical assistance covers all of the relevant aspects of the subject 
matter.
    (iii) The extent to which the technical assistance is appropriate to 
the target population, including consideration of the knowledge level of 
the target population, needs of the target population, and format for 
providing information.
    (iv) The extent to which the technical assistance is accessible to 
individuals with disabilities.
    (j) Plan of operation. (1) The Secretary considers the quality of 
the plan of operation.
    (2) In determining the quality of the plan of operation, the 
Secretary considers one or more of the following factors:

[[Page 285]]

    (i) The adequacy of the plan of operation to achieve the objectives 
of the proposed project on time and within budget, including clearly 
defined responsibilities, and timelines for accomplishing project tasks.
    (ii) The adequacy of the plan of operation to provide for using 
resources, equipment, and personnel to achieve each objective.
    (k) Collaboration. (1) The Secretary considers the quality of 
collaboration.
    (2) In determining the quality of collaboration, the Secretary 
considers one or more of the following factors:
    (i) The extent to which the applicant's proposed collaboration with 
one or more agencies, organizations, or institutions is likely to be 
effective in achieving the relevant proposed activities of the project.
    (ii) The extent to which agencies, organizations, or institutions 
demonstrate a commitment to collaborate with the applicant.
    (iii) The extent to which agencies, organizations, or institutions 
that commit to collaborate with the applicant have the capacity to carry 
out collaborative activities.
    (l) Adequacy and reasonableness of the budget. (1) The Secretary 
considers the adequacy and the reasonableness of the proposed budget.
    (2) In determining the adequacy and the reasonableness of the 
proposed budget, the Secretary considers one or more of the following 
factors:
    (i) The extent to which the costs are reasonable in relation to the 
proposed project activities.
    (ii) The extent to which the budget for the project, including any 
subcontracts, is adequately justified to support the proposed project 
activities.
    (iii) The extent to which the applicant is of sufficient size, 
scope, and quality to effectively carry out the activities in an 
efficient manner.
    (m) Plan of evaluation. (1) The Secretary considers the quality of 
the plan of evaluation.
    (2) In determining the quality of the plan of evaluation, the 
Secretary considers one or more of the following factors:
    (i) The extent to which the plan of evaluation provides for periodic 
assessment of progress toward--
    (A) Implementing the plan of operation; and
    (B) Achieving the project's intended outcomes and expected impacts.
    (ii) The extent to which the plan of evaluation will be used to 
improve the performance of the project through the feedback generated by 
its periodic assessments.
    (iii) The extent to which the plan of evaluation provides for 
periodic assessment of a project's progress that is based on identified 
performance measures that--
    (A) Are clearly related to the intended outcomes of the project and 
expected impacts on the target population; and
    (B) Are objective, and quantifiable or qualitative, as appropriate.
    (n) Project staff. (1) The Secretary considers the quality of the 
project staff.
    (2) In determining the quality of the project staff, the Secretary 
considers the extent to which the applicant encourages applications for 
employment from persons who are members of groups that have 
traditionally been underrepresented based on race, color, national 
origin, gender, age, or disability.
    (3) In addition, the Secretary considers one or more of the 
following:
    (i) The extent to which the key personnel and other key staff have 
appropriate training and experience in disciplines required to conduct 
all proposed activities.
    (ii) The extent to which the commitment of staff time is adequate to 
accomplish all the proposed activities of the project.
    (iii) The extent to which the key personnel are knowledgeable about 
the methodology and literature of pertinent subject areas.
    (iv) The extent to which the project staff includes outstanding 
scientists in the field.
    (v) The extent to which key personnel have up-to-date knowledge from 
research or effective practice in the subject area covered in the 
priority.
    (o) Adequacy and accessibility of resources. (1) The Secretary 
considers the adequacy and accessibility of the applicant's resources to 
implement the proposed project.

[[Page 286]]

    (2) In determining the adequacy and accessibility of resources, the 
Secretary considers one or more of the following factors:
    (i) The extent to which the applicant is committed to provide 
adequate facilities, equipment, other resources, including 
administrative support, and laboratories, if appropriate.
    (ii) The quality of an applicant's past performance in carrying out 
a grant.
    (iii) The extent to which the applicant has appropriate access to 
clinical populations and organizations representing individuals with 
disabilities to support advanced clinical rehabilitation research.
    (iv) The extent to which the facilities, equipment, and other 
resources are appropriately accessible to individuals with disabilities 
who may use the facilities, equipment, and other resources of the 
project.

(Approved by the Office of Management and Budget under control number 
1820-0027)

(Authority: Secs. 202 and 204; 29 U.S.C. 761a and 762)



Sec. 350.55  What are the additional considerations for selecting 
Field-Initiated Project applications for funding?

    (a) The Secretary reserves funds to support some or all of the 
Field-Initiated Project applications that have been awarded points 
totaling 80% or more of the maximum possible points under the procedures 
described in Sec. 350.53.
    (b) In making a final selection of applications to support as Field-
Initiated Projects, the Secretary considers the extent to which 
applications that have been awarded a rating of 80% or more of the 
maximum possible points and meet one or more of the following 
conditions:
    (1) The proposed project represents a unique opportunity to advance 
rehabilitation knowledge to improve the lives of individuals with 
disabilities.
    (2) The proposed project complements research already planned or 
funded by the NIDRR through annual priorities published in the Federal 
Register or addresses the research in a new and promising way.

(Authority: Secs. 202 (g) and (i)(1); 29 U.S.C. 761a(g) and 761a(i)(1))



          Subpart G_What Conditions Must Be Met After an Award?



Sec. 350.60  How must a grantee conduct activities?

    A grantee must--
    (a) Conduct all activities in a manner that is accessible to and 
usable by individuals with disabilities; and
    (b) If a grantee carries out more than one activity, carry out 
integrated activities.

(Authority: Secs. 202 and 204(b)(2); 29 U.S.C. 761a and 762(b))



Sec. 350.61  What evaluation requirements must a grantee meet?

    (a) A grantee must establish performance measures for use in its 
evaluation that--
    (1) Are clearly related to the--
    (i) Intended outcomes of the project; and
    (ii) Expected impacts on the target population; and
    (2) To the extent possible are quantifiable, or are objective and 
qualitative.
    (b) A grantee must make periodic assessments of progress that will 
provide the grantee with performance feedback related to--
    (1) Progress in implementing the plan of operation; and
    (2) Progress in achieving the intended outcomes and expected impacts 
as assessed by the established performance measures.

(Authority: Secs. 202 and 204; 29 U.S.C. 761a and 762)



Sec. 350.62  What are the matching requirements?

    (a)(1) The Secretary may make grants to pay for part of the costs of 
research and demonstration projects that bear directly on the 
development of procedures, methods, and devices to assist the provision 
of vocational and other rehabilitation services, and research training 
and career development projects.
    (2) Each grantee must participate in the costs of those projects.
    (3) The specific amount of cost sharing to be borne by each 
grantee--
    (i) Is negotiated at the time of the award; and

[[Page 287]]

    (ii) Is not considered in the selection process.
    (b)(1) The Secretary may make grants to pay for part or all of the 
costs of--
    (i) Establishment and support of Rehabilitation Research and 
Training Centers and Rehabilitation Engineering Research Centers; and
    (ii) Specialized research or demonstration activities described in 
section 204(b)(2)-(16) of the Act.
    (2) The Secretary determines at the time of the award whether the 
grantee must pay a portion of the project or center costs.

(Authority: Sec. 204; 29 U.S.C. 762)



Sec. 350.63  What are the requirements of a grantee relative to the 
Client Assistance Program?

    All Projects and Centers that provide services to individuals with 
disabilities with funds awarded under this Program must--
    (a) Advise those individuals who are applicants for or recipients of 
services under the Act, or their parents, family members, guardians, 
advocates, or authorized representatives, of the availability and 
purposes of the Client Assistance Program (CAP) funded under the Act; 
and
    (b) Provide information on the means of seeking assistance under the 
CAP.

(Authority: Sec. 20; 29 U.S.C. 718a)



Sec. 350.64  What is the required duration of the training in an
Advanced Rehabilitation Research Training Project?

    A grantee for an Advanced Rehabilitation Research Training Project 
shall provide training to individuals that is at least one academic 
year, unless a longer training period is necessary to ensure that each 
trainee is qualified to conduct independent research upon completion of 
the course of training.

(Authority: Secs. 202-204; 29 U.S.C. 760-762)



Sec. 350.65  What level of participation is required of trainees in 
an Advanced Rehabilitation Research Training Project?

    Individuals who are receiving training under an Advanced 
Rehabilitation Research Training Project shall devote at least eighty 
percent of their time to the activities of the training program during 
the training period.

(Authority: Secs. 202-204; 29 U.S.C. 760-762)



Sec. 350.66  What must a grantee include in a patent application?

    Any patent application filed by a grantee for an invention made 
under a grant must include the following statement in the first 
paragraph:

    The invention described in this application was made under a grant 
from the Department of Education.

(Authority: 20 U.S.C. 1221e-3)



PART 356_DISABILITY AND REHABILITATION RESEARCH: RESEARCH 
FELLOWSHIPS--Table of Contents



                            Subpart A_General

Sec.
356.1 What is the Research Fellowships Program?
356.2 Who is eligible for assistance under this program?
356.3 What regulations apply to this program?
356.4 What definitions apply to this program?

  Subpart B_What Kinds of Activities Does the Department Support Under 
                              This Program?

356.10 What types of activities are authorized?
356.11 What types of problems may be researched under the fellowship 
          program?

     Subpart C_How Does One Apply for Assistance Under This Program?

356.20 What are the application procedures under this part?
356.21 What is the fellowship review process?

            Subpart D_How Does the Secretary Select a Fellow?

356.30 What selection criteria are used for this program?
356.31 How does the Secretary evaluate an application under this part?
356.32 What are the special considerations in selecting applications for 
          funding under this part?

[[Page 288]]

          Subpart E_What Conditions Have To Be Met by a Fellow?

356.40 What is the length of a Fellowship award?
356.41 What are the employment limitations during a fellowship period?
356.42 What acknowledgement of support is required?

   Subpart F_What are the Administrative Responsibilities of a Fellow?

356.50 What kinds of payments are allowed under this program?
356.51 What reports are required?
356.52 Are there other requirements?

    Authority: 29 U.S.C. 760-762, unless otherwise noted.

    Source: 46 FR 45312, Sept. 10, 1981, unless otherwise noted.



                            Subpart A_General



Sec. 356.1  What is the Research Fellowships Program?

    The purpose of this program is to build research capacity by 
providing support to highly qualified individuals, including those who 
are individuals with disabilities, to perform research on the 
rehabilitation of individuals with disabilities.

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984, as amended at 58 FR 49419, Sept. 22, 1993]



Sec. 356.2  Who is eligible for assistance under this program?

    (a) Only individuals are eligible to be recipients of Fellowships.
    (b) Any individual is eligible for assistance under this program who 
has training and experience that indicate a potential for engaging in 
scientific research related to the solution of rehabilitation problems 
of individuals with disabilities.
    (c) This program provides two categories of Fellowships: Merit 
Fellowships and Distinguished Fellowships.
    (1) To be eligible for a Distinguished Fellowship, an individual 
must have seven or more years of research experience in subject areas, 
methods, or techniques relevant to rehabilitation research and must have 
a doctorate, other terminal degree, or comparable academic 
qualifications.
    (2) The Secretary awards Merit Fellowships to individuals in earlier 
stages of their careers in research. To be eligible for a Merit 
Fellowship, an individual must have either advanced professional 
training or experience in independent study in an area which is directly 
pertinent to disability and rehabilitation.
    (d) An applicant for a fellowship under this program must be 
eligible under 34 CFR 75.60.

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984, as amended at 57 FR 30343, July 8, 1992; 58 
FR 49419, Sept. 22, 1993]



Sec. 356.3  What regulations apply to this program?

    The following regulations apply to this program:
    (a) The peer review requirements contained in 34 CFR 350.31-350.32.
    (b) The regulations in this part--34 CFR part 356;
    (c)(1) Subject to the additional requirement in paragraph (c)(2) of 
this section, 34 CFR part 97, Protection of Human Subjects.
    (2) When an IRB reviews research that purposefully requires 
inclusion of children with disabilities or individuals with mental 
disabilities as research subjects, the IRB must include at least one 
person primarily concerned with the welfare of these research subjects.
    (d) The regulations in 34 CFR 75.60-75.61 (regarding the 
ineligibility of certain individuals to receive assistance).

(Authority: 29 U.S.C. 761a(d), 42 U.S.C. 300v-1(b))

[46 FR 45312, Sept. 10, 1981, as amended at 56 FR 28031, June 18, 1991; 
57 FR 30343, July 8, 1992; 58 FR 49419, Sept. 22, 1993; 60 FR 17431, 
Apr. 5, 1995]



Sec. 356.4  What definitions apply to this program?

    The definitions listed in 34 CFR 350.4 apply to this program.

(Authority: Sec. 202(i)(1); (29 U.S.C. 761a(i)(1)))

[[Page 289]]



  Subpart B_What Kinds of Activities Does the Department Support Under 
                              This Program?



Sec. 356.10  What types of activities are authorized?

    (a) Fellows may conduct original research in any area authorized by 
section 204 of the Act.
    (b) Each year the Secretary may determine that research is needed in 
certain areas authorized under section 204 of the Act and may set aside 
funds to provide fellowship assistance for research in these specific 
areas. The Secretary publishes the selected priorities, if any, in a 
notice in the Federal Register.

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984]



Sec. 356.11  What types of problems may be researched under the 
fellowship program?

    Problems encountered by individuals with disabilities in their daily 
lives that are due to the presence of a disabling condition, problems 
associated with the provision of rehabilitation services to individuals 
with disabilities, and problems connected with the conduct of disability 
research may be addressed under this program.

(Authority: Secs. 202(d), 202(g)(1), 204; 29 U.S.C. 761a(d), 761a(g)(1), 
762)

[58 FR 49419, Sept. 22, 1993]



     Subpart C_How Does One Apply for Assistance Under This Program?



Sec. 356.20  What are the application procedures under this part?

    From time to time the Secretary will publish in the Federal Register 
an Application Notice that announces the availability of fellowship 
assistance under this part.

(Authority: Sec. 202(d); (29 U.S.C. 761a(d)))



Sec. 356.21  What is the fellowship review process?

    The Secretary reviews applications for Fellowships in accordance 
with the peer review requirements governing grants in 34 CFR 350.31 and 
350.32 and the selection criteria contained in Sec. 356.30.

(Approved by the Office of Management and Budget under control number 
1800-0027)

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984]



            Subpart D_How Does the Secretary Select a Fellow?



Sec. 356.30  What selection criteria are used for this program?

    The Secretary evaluates an application for a Fellowship on the basis 
of--
    (a) Quality and level of formal education, previous work experience, 
and recommendations of present or former supervisors or colleagues that 
include an indication of the applicant's ability to work creatively in 
scientific research; and
    (b) The quality of a research proposal of no more than 12 pages 
containing the following information:
    (1) The importance of the problem to be investigated to the purpose 
of the Act and the mission of the Institute.
    (2) The research hypotheses or related objectives and the 
methodology and design to be followed.
    (3) Assurance of the availability of any necessary data resources, 
equipment, or institutional support, including technical consultation 
and support where appropriate, required to carry out the proposed 
activity.

(Approved by the Office of Management and Budget under control number 
1800-0027)

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984, as amended at 52 FR 30065, Aug. 12, 1987]



Sec. 356.31  How does the Secretary evaluate an application under this
part?

    The Secretary awards the following points for each application based 
on how well the applicant addresses the two criteria in Sec. 356.30: 
Outstanding (5); Superior (4); Satisfactory (3); Marginal (2); Poor (1).

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984]

[[Page 290]]



Sec. 356.32  What are the special considerations in selecting 
applications for funding under this part?

    (a) The Secretary reserves funds to support some or all of the 
applications which have been awarded a rating of superior or better (4-5 
points) under Sec. 356.31.
    (b) In making a final selection of applicants to support under this 
program, the Secretary considers the extent to which applicants rated 
outstanding or superior present a unique opportunity to effect a major 
advance in knowledge, address critical problems in innovative ways, 
present proposals which are consistent with the Institute's Long-Range 
Plan, build research capacity within the field, or complement and 
significantly increases the potential value of already planned research 
and related activities.

(Approved by the Office of Management and Budget under control number 
1800-0027)

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984, as amended at 52 FR 30065, Aug. 12, 1987]



          Subpart E_What Conditions Have To Be Met by a Fellow?



Sec. 356.40  What is the length of a Fellowship award?

    The Secretary awards Fellowships for a period of 12 months. Under 
exceptional circumstances, the Secretary may extend the period of a 
Fellowship; such an extension may not exceed 12 months.

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984]



Sec. 356.41  What are the employment limitations during a fellowship 
period?

    The Secretary may require a research fellow to work full time on 
authorized fellowship activities.

(Authority: Sec. 202(d); (29 U.S.C. 761a(d)))



Sec. 356.42  What acknowledgement of support is required?

    Publication, distribution, and disposition of all manuscripts and 
other materials resulting from a fellowship awarded under this part must 
acknowledge that assistance was received from the Department and the 
Institute. Three copies of these publications or other materials must be 
furnished to the Secretary.

(Authority: Sec. 202(d); (29 U.S.C. 761a(d)))



   Subpart F_What are the Administrative Responsibilities of a Fellow?



Sec. 356.50  What kinds of payments are allowed under this program?

    A Fellowship award in either the Distinguished or Merit category 
includes a fixed stipend and a flat rate allowance for research and 
research-related expenses including travel expenses.

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984]



Sec. 356.51  What reports are required?

    Fellows shall submit final reports. Each report must contain at a 
minimum an analysis of the significance of the project and an assessment 
of the degree to which the objectives of the project have been achieved.

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984]



Sec. 356.52  Are there other requirements?

    The Secretary may require fellows to attend one or more meetings in 
connection with Fellowship activities.

(Authority: Sec. 202(d); 29 U.S.C. 761a(d))

[49 FR 24979, June 18, 1984]



PART 359_DISABILITY AND REHABILITATION RESEARCH: SPECIAL PROJECTS AND
DEMONSTRATIONS FOR SPINAL CORD INJURIES--Table of Contents



                            Subpart A_General

Sec.
359.1 What is the Special Projects and Demonstrations for Spinal Cord 
          Injuries Program?
359.2 Who is eligible for assistance under this program?
359.3 What regulations apply to this program?
359.4 What definitions apply to this program?
359.5-359.9 [Reserved]

[[Page 291]]

Subpart B_What Kinds of Activities Does the Secretary Assist Under This 
                                Program?

359.10 What types of projects are authorized under this program?
359.11 What activities must each recipient carry out under this program?
359.12-359.19 [Reserved]

Subpart C [Reserved]

             Subpart D_How Does the Secretary Make a Grant?

359.30 How is peer review conducted under this program?
359.31 What selection criteria does the Secretary use in reviewing 
          applications under this program?
359.32 What additional factors does the Secretary consider in making a 
          grant under this program?
359.33-359.39 [Reserved]

    Authority: 29 U.S.C. 762(b)(4), unless otherwise noted.

    Source: 50 FR 16676, Apr. 26, 1985, unless otherwise noted.



                            Subpart A_General



Sec. 359.1  What is the Special Projects and Demonstrations for 
Spinal Cord Injuries Program?

    This program provides assistance to establish innovative projects 
for the delivery, demonstration, and evaluation of comprehensive 
medical, vocational, and other rehabilitation services to meet the wide 
range of needs of individuals with spinal cord injuries.

(Authority: Sec. 204(b)(4); 29 U.S.C. 762(b)(4))



Sec. 359.2  Who is eligible for assistance under this program?

    The agencies and organizations eligible to apply under this program 
are described in 34 CFR 350.2.

(Authority: Sec. 204(b)(4)(A); 29 U.S.C. 762(b)(4)(A))

[58 FR 49420, Sept. 22, 1993]



Sec. 359.3  What regulations apply to this program?

    The regulations referenced in 34 CFR 350.3 apply to this program.

(Authority: Secs. 202 and 204; 29 U.S.C. 761a and 762)



Sec. 359.4  What definitions apply to this program?

    The definitions listed in 34 CFR 350.4 apply to this program.

(Authority: Sec. 202(i)(1); 29 U.S.C. 761a(i)(1))



Sec. Sec. 359.5-359.9  [Reserved]



Subpart B_What Kinds of Activities Does the Secretary Assist Under This 
                                Program?



Sec. 359.10  What types of projects are authorized under this program?

    This program provides assistance for demonstration projects that--
    (a) Provide comprehensive rehabilitation services to individuals 
with spinal cord injuries; and
    (b) Conduct spinal cord research, including clinical research and 
the analysis of standardized data in collaboration with other related 
projects.

(Authority: Sec. 204(b)(4); 29 U.S.C. 762(b)(4))



Sec. 359.11  What activities must each recipient carry out under this
program?

    Each recipient, whether administering a project separately under 
this part or in coordination with other activities supported under title 
II of the Act, shall--
    (a) Establish a multidisciplinary system of providing rehabilitation 
services specifically designed to meet the special needs of individuals 
with spinal cord injuries, including emergency medical services, acute 
care, vocational and other rehabilitation services, community and job 
placement, and long-term community follow up and health maintenance. The 
system must be established on an appropriate geographical basis that 
reflects patterns of patient flow, and must be administered in close 
coordination with similar programs of the Veterans Administration, the 
National Institutes of Health, and other public and private agencies and 
institutions where appropriate;
    (b) Demonstrate and evaluate both the service and cost benefits of a 
regional service system to those individuals with spinal cord injuries 
who might be served within that system;

[[Page 292]]

    (c) Establish within the system a rehabilitation research 
environment for the achievement of new knowledge leading to the 
reduction and treatment of complications arising from spinal cord injury 
and the development of new techniques of medical management and 
rehabilitation;
    (d) Demonstrate and evaluate the development and application of 
improved methods and equipment essential to the care, management, and 
rehabilitation of individuals with spinal cord injury;
    (e) Demonstrate methods of community outreach and education for 
individuals with spinal cord injury in areas such as housing, 
transportation, recreation, employment, and other community activities; 
and
    (f) Address the needs of individuals with spinal cord injuries from 
minority backgrounds;
    (g) Participate as directed by the Secretary in national studies of 
the benefits of a spinal cord injury service system by contributing to a 
national database and by other means as required by the Secretary.

(Authority: Secs. 21(b)(6) and 204(b)(4); 29 U.S.C. 718b and 762(b)(4))

[50 FR 16676, Apr. 26, 1985, as amended at 58 FR 49420, Sept. 22, 1993]



Sec. Sec. 359.12-359.19  [Reserved]

Subpart C [Reserved]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 359.30  How is peer review conducted under this program?

    Peer review is conducted under this program in accordance with 34 
CFR 350.30-350.32, using the selection criteria in Sec. 359.31.

(Authority: Sec. 202(e); 29 U.S.C. 761a(e))



Sec. 359.31  What selection criteria does the Secretary use in 
reviewing applications under this program?

    The Secretary uses the criteria in this section to evaluate 
applications under this program. The maximum score for all the criteria 
is 100 points.
    (a) Project design (20 points). The Secretary reviews each 
application to determine to what degree--
    (1) There is a clear description of how the objectives of the 
project relate to the purpose of the program;
    (2) The research is likely to produce new and useful information;
    (3) The need and target population are adequately defined;
    (4) The outcomes are likely to benefit the defined target 
population;
    (5) The research hypotheses are sound; and
    (6) The research methodology is sound in the sample design and 
selection, the data collection plan, the measurement instruments, and 
the data analysis plan.
    (b) Service comprehensiveness (20 points). The Secretary reviews 
each application to determine to what degree--
    (1) The services to be provided within the project are comprehensive 
in scope, and include emergency medical services, intensive and acute 
medical care, rehabilitation management, psychosocial and community 
reintegration, and follow up;
    (2) A broad range of vocational and other rehabilitation services 
will be available to severely handicapped individuals within the 
project; and
    (3) Services will be coordinated with those services provided by 
other appropriate community resources.
    (c) Plan of operation (15 points). The Secretary reviews each 
application to determine to what degree--
    (1) There is an effective plan of operation that ensures proper and 
efficient administration of the project;
    (2) The applicant's planned use of its resources and personnel is 
likely to achieve each objective;
    (3) Collaboration between institutions, if proposed, is likely to be 
effective; and
    (4) There is a clear description of how the applicant will include 
eligible project participants who have been traditionally 
underrepresented, such as--
    (i) Members of racial or ethnic minority groups;
    (ii) Women;
    (iii) Individuals with disabilities; and
    (iv) The elderly.

[[Page 293]]

    (d) Quality of key personnel (10 points). The Secretary reviews each 
application to determine to what degree--
    (1) The principal investigator and other key staff have adequate 
training or experience, or both, in spinal cord injury care and 
rehabilitation and demonstrate appropriate potential to conduct the 
proposed research, demonstration, training, development, or 
dissemination activity;
    (2) The principal investigator and other key staff are familiar with 
pertinent literature or methods, or both;
    (3) All the disciplines necessary to establish the multidisciplinary 
system described in Sec. 359.11(a) are effectively represented;
    (4) Commitments of staff time are adequate for the project; and
    (5) The applicant is likely, as part of its non-discriminatory 
employment practices, to encourage applications for employment from 
persons who are members of groups that traditionally have been 
underrepresented, such as--
    (i) Members of racial or ethnic minority groups;
    (ii) Women;
    (iii) Individuals with disabilities; and
    (iv) The elderly.
    (e) Adequacy of resources (10 points). The Secretary reviews each 
application to determine to what degree--
    (1) The facilities planned for use are adequate;
    (2) The equipment and supplies planned for use are adequate; and
    (3) The commitment of the applicant to provide administrative and 
other necessary support is evident.
    (f) Budget/cost effectiveness (10 points). The Secretary reviews 
each application to determine to what degree--
    (1) The budget for the project is adequate to support the 
activities;
    (2) The costs are reasonable in relation to the objectives of the 
project; and
    (3) The budget for subcontracts (if required) is detailed and 
appropriate.
    (g) Dissemination/utilization (5 points). The Secretary reviews each 
application to determine to what degree--
    (1) There is a clearly defined plan for dissemination and 
utilization of project findings;
    (2) The research results are likely to become available to others 
working in the field;
    (3) The means to disseminate and promote utilization by others are 
defined; and
    (4) The utilization approach is likely to address the defined need.
    (h) Evaluation plan (10 points). The Secretary reviews each 
application to determine to what degree--
    (1) There is a mechanism to evaluate plans, progress and results;
    (2) The evaluation methods and objectives are likely to produce data 
that are quantifiable; and
    (3) The evaluation results, where relevant, are likely to be 
assessed in a service setting.

(Authority: Secs. 202(e) and 204(b)(4); 29 U.S.C. 761a(e) and 762(b)(4))

[50 FR 16676, Apr. 26, 1985, as amended at 58 FR 49420, Sept. 22, 1993]



Sec. 359.32  What additional factors does the Secretary consider in
making a grant under this program?

    In determining which applicants to fund under this program, the 
Secretary also considers the proposed location of any project in order 
to achieve, to the extent possible, a geographic distribution of 
projects.

(Authority: Sec. 204(b)(4)(C); 29 U.S.C. 762(b)(4)(C))

[52 FR 30066, Aug. 12, 1987]



Sec. Sec. 359.33-359.39  [Reserved]



PART 361_STATE VOCATIONAL REHABILITATION SERVICES PROGRAM--Table of 
Contents



                            Subpart A_General

Sec.
361.1 Purpose.
361.2 Eligibility for a grant.
361.3 Authorized activities.
361.4 Applicable regulations.
361.5 Applicable definitions.

       Subpart B_State Plan and Other Requirements for Vocational 
                         Rehabilitation Services

361.10 Submission, approval, and disapproval of the State plan.
361.11 Withholding of funds.

[[Page 294]]

                             Administration

361.12 Methods of administration.
361.13 State agency for administration.
361.14 Substitute State agency.
361.15 Local administration.
361.16 Establishment of an independent commission or a State 
          Rehabilitation Council.
361.17 Requirements for a State Rehabilitation Council.
361.18 Comprehensive system of personnel development.
361.19 Affirmative action for individuals with disabilities.
361.20 Public participation requirements.
361.21 Consultations regarding the administration of the State plan.
361.22 Coordination with education officials.
361.23 Requirements related to the statewide workforce investment 
          system.
361.24 Cooperation and coordination with other entities.
361.25 Statewideness.
361.26 Waiver of statewideness.
361.27 Shared funding and administration of joint programs.
361.28 Third-party cooperative arrangements involving funds from other 
          public agencies.
361.29 Statewide assessment; annual estimates; annual State goals and 
          priorities; strategies; and progress reports.
361.30 Services to American Indians.
361.31 Cooperative agreements with private nonprofit organizations.
361.32 Use of profitmaking organizations for on-the-job training in 
          connection with selected projects.
361.33 [Reserved.]
361.34 Supported employment State plan supplement.
361.35 Innovation and expansion activities.
361.36 Ability to serve all eligible individuals; order of selection for 
          services.
361.37 Information and referral services.
361.38 Protection, use, and release of personal information.
361.39 State-imposed requirements.
361.40 Reports.

                     Provision and Scope of Services

361.41 Processing referrals and applications.
361.42 Assessment for determining eligibility and priority for services.
361.43 Procedures for ineligibility determination.
361.44 Closure without eligibility determination.
361.45 Development of the individualized plan for employment.
361.46 Content of the individualized plan for employment.
361.47 Record of services.
361.48 Scope of vocational rehabilitation services for individuals with 
          disabilities.
361.49 Scope of vocational rehabilitation services for groups of 
          individuals with disabilities.
361.50 Written policies governing the provision of services for 
          individuals with disabilities.
361.51 Standards for facilities and providers of services.
361.52 Informed choice.
361.53 Comparable services and benefits.
361.54 Participation of individuals in cost of services based on 
          financial need.
361.55 Annual review of individuals in extended employment and other 
          employment under special certificate provisions of the Fair 
          Labor Standards Act.
361.56 Requirements for closing the record of services of an individual 
          who has achieved an employment outcome.
361.57 Review of determinations made by designated State unit personnel.

     Subpart C_Financing of State Vocational Rehabilitation Programs

361.60 Matching requirements.
361.61 Limitation on use of funds for construction expenditures.
361.62 Maintenance of effort requirements.
361.63 Program income.
361.64 Obligation of Federal funds and program income.
361.65 Allotment and payment of Federal funds for vocational 
          rehabilitation services.

Subpart D [Reserved]

        Subpart E_Evaluation Standards and Performance Indicators

361.80 Purpose.
361.81 Applicable definitions.
361.82 Evaluation standards.
361.84 Performance indicators.
361.86 Performance levels.
361.88 Reporting requirements.
361.89 Enforcement procedures.

Appendix A to Part 361--Questions and Answers

    Authority: 29 U.S.C. 709(c), unless otherwise noted.

    Source: 66 FR 4382, Jan. 17, 2001, unless otherwise noted.



                            Subpart A_General



Sec. 361.1  Purpose.

    Under the State Vocational Rehabilitation Services Program 
(Program), the Secretary provides grants to assist

[[Page 295]]

States in operating statewide comprehensive, coordinated, effective, 
efficient, and accountable programs, each of which is--
    (a) An integral part of a statewide workforce investment system; and
    (b) Designed to assess, plan, develop, and provide vocational 
rehabilitation services for individuals with disabilities, consistent 
with their strengths, resources, priorities, concerns, abilities, 
capabilities, interests, and informed choice, so that they may prepare 
for and engage in gainful employment.

(Authority: Section 100(a)(2) of the Act; 29 U.S.C. 720(a)(2))



Sec. 361.2  Eligibility for a grant.

    Any State that submits to the Secretary a State plan that meets the 
requirements of section 101(a) of the Act and this part is eligible for 
a grant under this Program.

(Authority: Section 101(a) of the Act; 29 U.S.C. 721(a))



Sec. 361.3  Authorized activities.

    The Secretary makes payments to a State to assist in--
    (a) The costs of providing vocational rehabilitation services under 
the State plan; and
    (b) Administrative costs under the State plan.

(Authority: Section 111(a)(1) of the Act; 29 U.S.C. 731(a)(1))



Sec. 361.4  Applicable regulations.

    The following regulations apply to this Program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants and Agreements with 
Institutions of Higher Education, Hospitals, and other Non-profit 
Organizations), with respect to subgrants to entities that are not State 
or local governments or Indian tribal organizations.
    (2) 34 CFR part 76 (State-Administered Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments), except for 
Sec. 80.24(a)(2).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug and Alcohol Abuse Prevention).
    (b) The regulations in this part 361.
    (c) 20 CFR part 662 (Description of One-Stop Service Delivery System 
under Title I of the Workforce Investment Act of 1998).
    (d) 29 CFR part 37, to the extent programs and activities are being 
conducted as part of the One-Stop service delivery system under section 
121(b) of the Workforce Investment Act of 1998.

(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))



Sec. 361.5  Applicable definitions.

    (a) Definitions in EDGAR. The following terms used in this part are 
defined in 34 CFR 77.1:

Department
EDGAR
Fiscal year
Nonprofit
Private
Public
Secretary

    (b) Other definitions. The following definitions also apply to this 
part:
    (1) Act means the Rehabilitation Act of 1973, as amended (29 U.S.C. 
701 et seq.).
    (2) Administrative costs under the State plan means expenditures 
incurred in the performance of administrative functions under the 
vocational rehabilitation program carried out under this part, including 
expenses related to program planning, development, monitoring, and 
evaluation, including, but not limited to, expenses for--
    (i) Quality assurance;
    (ii) Budgeting, accounting, financial management, information 
systems, and related data processing;

[[Page 296]]

    (iii) Providing information about the program to the public;
    (iv) Technical assistance and support services to other State 
agencies, private nonprofit organizations, and businesses and 
industries, except for technical assistance and support services 
described in Sec. 361.49(a)(4);
    (v) The State Rehabilitation Council and other advisory committees;
    (vi) Professional organization membership dues for designated State 
unit employees;
    (vii) The removal of architectural barriers in State vocational 
rehabilitation agency offices and State-operated rehabilitation 
facilities;
    (viii) Operating and maintaining designated State unit facilities, 
equipment, and grounds;
    (ix) Supplies;
    (x) Administration of the comprehensive system of personnel 
development described in Sec. 361.18, including personnel 
administration, administration of affirmative action plans, and training 
and staff development;
    (xi) Administrative salaries, including clerical and other support 
staff salaries, in support of these administrative functions;
    (xii) Travel costs related to carrying out the program, other than 
travel costs related to the provision of services;
    (xiii) Costs incurred in conducting reviews of determinations made 
by personnel of the designated State unit, including costs associated 
with mediation and impartial due process hearings under Sec. 361.57; 
and
    (xiv) Legal expenses required in the administration of the program.


(Authority: Section 7(1) of the Act; 29 U.S.C. 705(1))

    (3) American Indian means an individual who is a member of an Indian 
tribe.


(Authority: Section 7(19)(A) of the Act; 29 U.S.C. 705(19)(A))

    (4) Applicant means an individual who submits an application for 
vocational rehabilitation services in accordance with Sec. 
361.41(b)(2).


(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

    (5) Appropriate modes of communication means specialized aids and 
supports that enable an individual with a disability to comprehend and 
respond to information that is being communicated. Appropriate modes of 
communication include, but are not limited to, the use of interpreters, 
open and closed captioned videos, specialized telecommunications 
services and audio recordings, Brailled and large print materials, 
materials in electronic formats, augmentative communication devices, 
graphic presentations, and simple language materials.


(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

    (6) Assessment for determining eligibility and vocational 
rehabilitation needs means, as appropriate in each case--
    (i)(A) A review of existing data--
    (1) To determine if an individual is eligible for vocational 
rehabilitation services; and
    (2) To assign priority for an order of selection described in Sec. 
361.36 in the States that use an order of selection; and
    (B) To the extent necessary, the provision of appropriate assessment 
activities to obtain necessary additional data to make the eligibility 
determination and assignment;
    (ii) To the extent additional data are necessary to make a 
determination of the employment outcomes and the nature and scope of 
vocational rehabilitation services to be included in the individualized 
plan for employment of an eligible individual, a comprehensive 
assessment to determine the unique strengths, resources, priorities, 
concerns, abilities, capabilities, interests, and informed choice, 
including the need for supported employment, of the eligible individual. 
This comprehensive assessment--
    (A) Is limited to information that is necessary to identify the 
rehabilitation needs of the individual and to develop the individualized 
plan of employment of the eligible individual;
    (B) Uses as a primary source of information, to the maximum extent 
possible and appropriate and in accordance with confidentiality 
requirements--

[[Page 297]]

    (1) Existing information obtained for the purposes of determining 
the eligibility of the individual and assigning priority for an order of 
selection described in Sec. 361.36 for the individual; and
    (2) Information that can be provided by the individual and, if 
appropriate, by the family of the individual;
    (C) May include, to the degree needed to make such a determination, 
an assessment of the personality, interests, interpersonal skills, 
intelligence and related functional capacities, educational 
achievements, work experience, vocational aptitudes, personal and social 
adjustments, and employment opportunities of the individual and the 
medical, psychiatric, psychological, and other pertinent vocational, 
educational, cultural, social, recreational, and environmental factors 
that affect the employment and rehabilitation needs of the individual; 
and
    (D) May include, to the degree needed, an appraisal of the patterns 
of work behavior of the individual and services needed for the 
individual to acquire occupational skills and to develop work attitudes, 
work habits, work tolerance, and social and behavior patterns necessary 
for successful job performance, including the use of work in real job 
situations to assess and develop the capacities of the individual to 
perform adequately in a work environment;
    (iii) Referral, for the provision of rehabilitation technology 
services to the individual, to assess and develop the capacities of the 
individual to perform in a work environment; and
    (iv) An exploration of the individual's abilities, capabilities, and 
capacity to perform in work situations, which must be assessed 
periodically during trial work experiences, including experiences in 
which the individual is provided appropriate supports and training.


(Authority: Section 7(2) of the Act; 29 U.S.C. 705(2))

    (7) Assistive technology device means any item, piece of equipment, 
or product system, whether acquired commercially off the shelf, 
modified, or customized, that is used to increase, maintain, or improve 
the functional capabilities of an individual with a disability.


(Authority: Section 7(3) of the Act; 29 U.S.C. 705(3))

    (8) Assistive technology service means any service that directly 
assists an individual with a disability in the selection, acquisition, 
or use of an assistive technology device, including--
    (i) The evaluation of the needs of an individual with a disability, 
including a functional evaluation of the individual in his or her 
customary environment;
    (ii) Purchasing, leasing, or otherwise providing for the acquisition 
by an individual with a disability of an assistive technology device;
    (iii) Selecting, designing, fitting, customizing, adapting, 
applying, maintaining, repairing, or replacing assistive technology 
devices;
    (iv) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing education and rehabilitation plans and programs;
    (v) Training or technical assistance for an individual with a 
disability or, if appropriate, the family members, guardians, advocates, 
or authorized representatives of the individual; and
    (vi) Training or technical assistance for professionals (including 
individuals providing education and rehabilitation services), employers, 
or others who provide services to, employ, or are otherwise 
substantially involved in the major life functions of individuals with 
disabilities, to the extent that training or technical assistance is 
necessary to the achievement of an employment outcome by an individual 
with a disability.


(Authority: Sections 7(4) and 12(c) of the Act; 29 U.S.C. 705(4) and 
709(c))

    (9) Community rehabilitation program. (i) Community rehabilitation 
program means a program that provides directly or facilitates the 
provision of one or more of the following vocational rehabilitation 
services to individuals with disabilities to enable those individuals to 
maximize their opportunities for employment, including career 
advancement:

[[Page 298]]

    (A) Medical, psychiatric, psychological, social, and vocational 
services that are provided under one management.
    (B) Testing, fitting, or training in the use of prosthetic and 
orthotic devices.
    (C) Recreational therapy.
    (D) Physical and occupational therapy.
    (E) Speech, language, and hearing therapy.
    (F) Psychiatric, psychological, and social services, including 
positive behavior management.
    (G) Assessment for determining eligibility and vocational 
rehabilitation needs.
    (H) Rehabilitation technology.
    (I) Job development, placement, and retention services.
    (J) Evaluation or control of specific disabilities.
    (K) Orientation and mobility services for individuals who are blind.
    (L) Extended employment.
    (M) Psychosocial rehabilitation services.
    (N) Supported employment services and extended services.
    (O) Services to family members if necessary to enable the applicant 
or eligible individual to achieve an employment outcome.
    (P) Personal assistance services.
    (Q) Services similar to the services described in paragraphs (A) 
through (P) of this definition.
    (ii) For the purposes of this definition, the word program means an 
agency, organization, or institution, or unit of an agency, 
organization, or institution, that provides directly or facilitates the 
provision of vocational rehabilitation services as one of its major 
functions.
    (10) Comparable services and benefits means--
    (i) Services and benefits that are--
    (A) Provided or paid for, in whole or in part, by other Federal, 
State, or local public agencies, by health insurance, or by employee 
benefits;
    (B) Available to the individual at the time needed to ensure the 
progress of the individual toward achieving the employment outcome in 
the individual's individualized plan for employment in accordance with 
Sec. 361.53; and
    (C) Commensurate to the services that the individual would otherwise 
receive from the designated State vocational rehabilitation agency.
    (ii) For the purposes of this definition, comparable benefits do not 
include awards and scholarships based on merit.


(Authority: Sections 12(c) and 101(a)(8) of the Act; 29 U.S.C. 709(c) 
and 721(a)(8))

    (11) Competitive employment means work--
    (i) In the competitive labor market that is performed on a full-time 
or part-time basis in an integrated setting; and
    (ii) For which an individual is compensated at or above the minimum 
wage, but not less than the customary wage and level of benefits paid by 
the employer for the same or similar work performed by individuals who 
are not disabled.


(Authority: Sections 7(11) and 12(c) of the Act; 29 U.S.C. 705(11) and 
709(c))

    (12) Construction of a facility for a public or nonprofit community 
rehabilitation program means--
    (i) The acquisition of land in connection with the construction of a 
new building for a community rehabilitation program;
    (ii) The construction of new buildings;
    (iii) The acquisition of existing buildings;
    (iv) The expansion, remodeling, alteration, or renovation of 
existing buildings;
    (v) Architect's fees, site surveys, and soil investigation, if 
necessary, in connection with the construction project;
    (vi) The acquisition of initial fixed or movable equipment of any 
new, newly acquired, newly expanded, newly remodeled, newly altered, or 
newly renovated buildings that are to be used for community 
rehabilitation program purposes; and
    (vii) Other direct expenditures appropriate to the construction 
project, except costs of off-site improvements.


(Authority: Sections 7(6) and 12(c) of the Act; 29 U.S.C. 705(6) and 
709(c))

    (13) Designated State agency or State agency means the sole State 
agency,

[[Page 299]]

designated in accordance with Sec. 361.13(a), to administer, or 
supervise the local administration of, the State plan for vocational 
rehabilitation services. The term includes the State agency for 
individuals who are blind, if designated as the sole State agency with 
respect to that part of the plan relating to the vocational 
rehabilitation of individuals who are blind.


(Authority: Sections 7(8)(A) and 101(a)(2)(A) of the Act; 29 U.S.C. 
705(8)(A) and 721(a)(2)(A))

    (14) Designated State unit or State unit means either--
    (i) The State vocational rehabilitation bureau, division, or other 
organizational unit that is primarily concerned with vocational 
rehabilitation or vocational and other rehabilitation of individuals 
with disabilities and that is responsible for the administration of the 
vocational rehabilitation program of the State agency, as required under 
Sec. 361.13(b); or
    (ii) The State agency that is primarily concerned with vocational 
rehabilitation or vocational and other rehabilitation of individuals 
with disabilities.


(Authority: Sections 7(8)(B) and 101(a)(2)(B) of the Act; 29 U.S.C. 
705(8)(B) and 721(a)(2)(B))

    (15) Eligible individual means an applicant for vocational 
rehabilitation services who meets the eligibility requirements of Sec. 
361.42(a).


(Authority: Sections 7(20)(A) and 102(a)(1) of the Act; 29 U.S.C. 
705(20)(A) and 722(a)(1))

    (16) Employment outcome means, with respect to an individual, 
entering or retaining full-time or, if appropriate, part-time 
competitive employment, as defined in Sec. 361.5(b)(11), in the 
integrated labor market, supported employment, or any other type of 
employment in an integrated setting, including self-employment, 
telecommuting, or business ownership, that is consistent with an 
individual's strengths, resources, priorities, concerns, abilities, 
capabilities, interests, and informed choice.


(Authority: Sections 7(11), 12(c), 100(a)(2), and 102(b)(3)(A) of the 
Act; 29 U.S.C. 705(11), 709(c), 720(a)(2), and 722(b)(3)(A))

    (17) Establishment, development, or improvement of a public or 
nonprofit community rehabilitation program means--
    (i) The establishment of a facility for a public or nonprofit 
community rehabilitation program as defined in paragraph (b)(18) of this 
section to provide vocational rehabilitation services to applicants or 
eligible individuals;
    (ii) Staffing, if necessary to establish, develop, or improve a 
community rehabilitation program for the purpose of providing vocational 
rehabilitation services to applicants or eligible individuals, for a 
maximum period of 4 years, with Federal financial participation 
available at the applicable matching rate for the following levels of 
staffing costs:
    (A) 100 percent of staffing costs for the first year.
    (B) 75 percent of staffing costs for the second year.
    (C) 60 percent of staffing costs for the third year.
    (D) 45 percent of staffing costs for the fourth year; and
    (iii) Other expenditures related to the establishment, development, 
or improvement of a community rehabilitation program that are necessary 
to make the program functional or increase its effectiveness in 
providing vocational rehabilitation services to applicants or eligible 
individuals, but are not ongoing operating expenses of the program.


(Authority: Sections 7(12) and 12(c) of the Act; 29 U.S.C. 705(12) and 
709(c))

    (18) Establishment of a facility for a public or nonprofit community 
rehabilitation program means--
    (i) The acquisition of an existing building and, if necessary, the 
land in connection with the acquisition, if the building has been 
completed in all respects for at least 1 year prior to the date of 
acquisition and the Federal share of the cost of acquisition is not more 
than $300,000;
    (ii) The remodeling or alteration of an existing building, provided 
the estimated cost of remodeling or alteration does not exceed the 
appraised value of the existing building;
    (iii) The expansion of an existing building, provided that--

[[Page 300]]

    (A) The existing building is complete in all respects;
    (B) The total size in square footage of the expanded building, 
notwithstanding the number of expansions, is not greater than twice the 
size of the existing building;
    (C) The expansion is joined structurally to the existing building 
and does not constitute a separate building; and
    (D) The costs of the expansion do not exceed the appraised value of 
the existing building;
    (iv) Architect's fees, site survey, and soil investigation, if 
necessary in connection with the acquisition, remodeling, alteration, or 
expansion of an existing building; and
    (v) The acquisition of fixed or movable equipment, including the 
costs of installation of the equipment, if necessary to establish, 
develop, or improve a community rehabilitation program.


(Authority: Sections 7(12) and 12(c) of the Act; 29 U.S.C. 705(12) and 
709(c))

    (19) Extended employment means work in a non-integrated or sheltered 
setting for a public or private nonprofit agency or organization that 
provides compensation in accordance with the Fair Labor Standards Act.


(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

    (20) Extended services means ongoing support services and other 
appropriate services that are needed to support and maintain an 
individual with a most significant disability in supported employment 
and that are provided by a State agency, a private nonprofit 
organization, employer, or any other appropriate resource, from funds 
other than funds received under this part and 34 CFR part 363 after an 
individual with a most significant disability has made the transition 
from support provided by the designated State unit.


(Authority: Sections 7(13) and 623 of the Act; 29 U.S.C. 705(13) and 
795i)

    (21) Extreme medical risk means a probability of substantially 
increasing functional impairment or death if medical services, including 
mental health services, are not provided expeditiously.


(Authority: Sections 12(c) and 101(a)(8)(A)(i)(III) of the Act; 29 
U.S.C. 709(c) and 721(a)(8)(A)(i)(III))

    (22) Fair hearing board means a committee, body, or group of persons 
established by a State prior to January 1, 1985 that--
    (i) Is authorized under State law to review determinations made by 
personnel of the designated State unit that affect the provision of 
vocational rehabilitation services; and
    (ii) Carries out the responsibilities of the impartial hearing 
officer in accordance with the requirements in Sec. 361.57(j).


(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

    (23) Family member, for purposes of receiving vocational 
rehabilitation services in accordance with Sec. 361.48(i), means an 
individual--
    (i) Who either--
    (A) Is a relative or guardian of an applicant or eligible 
individual; or
    (B) Lives in the same household as an applicant or eligible 
individual;
    (ii) Who has a substantial interest in the well-being of that 
individual; and
    (iii) Whose receipt of vocational rehabilitation services is 
necessary to enable the applicant or eligible individual to achieve an 
employment outcome.


(Authority: Sections 12(c) and 103(a)(17) of the Act; 29 U.S.C. 709(c) 
and 723(a)(17))

    (24) Governor means a chief executive officer of a State.


(Authority: Section 7(15) of the Act; 29 U.S.C. 705(15))

    (25) Impartial hearing officer. (i) Impartial hearing officer means 
an individual who--
    (A) Is not an employee of a public agency (other than an 
administrative law judge, hearing examiner, or employee of an 
institution of higher education);
    (B) Is not a member of the State Rehabilitation Council for the 
designated State unit;
    (C) Has not been involved previously in the vocational 
rehabilitation of the applicant or eligible individual;

[[Page 301]]

    (D) Has knowledge of the delivery of vocational rehabilitation 
services, the State plan, and the Federal and State regulations 
governing the provision of services;
    (E) Has received training with respect to the performance of 
official duties; and
    (F) Has no personal, professional, or financial interest that would 
be in conflict with the objectivity of the individual.
    (ii) An individual is not considered to be an employee of a public 
agency for the purposes of this definition solely because the individual 
is paid by the agency to serve as a hearing officer.


(Authority: Section 7(16) of the Act; 29 U.S.C. 705(16))

    (26) Indian tribe means any Federal or State Indian tribe, band, 
rancheria, pueblo, colony, or community, including any Alaskan native 
village or regional village corporation (as defined in or established 
pursuant to the Alaska Native Claims Settlement Act).


(Authority: Section 7(19)(B) of the Act; 29 U.S.C. 705(19)(B))

    (27) Individual who is blind means a person who is blind within the 
meaning of applicable State law. (Authority: Section 12(c) of the Act; 
29 U.S.C. 709(c))
    (28) Individual with a disability, except as provided in Sec. 
361.5(b)(29), means an individual--
    (i) Who has a physical or mental impairment;
    (ii) Whose impairment constitutes or results in a substantial 
impediment to employment; and
    (iii) Who can benefit in terms of an employment outcome from the 
provision of vocational rehabilitation services.


(Authority: Section 7(20)(A) of the Act; 29 U.S.C. 705(20)(A))

    (29) Individual with a disability, for purposes of Sec. Sec. 
361.5(b)(14), 361.13(a), 361.13(b)(1), 361.17(a), (b), (c), and (j), 
361.18(b), 361.19, 361.20, 361.23(b)(2), 361.29(a) and (d)(5), and 
361.51(b), means an individual--
    (i) Who has a physical or mental impairment that substantially 
limits one or more major life activities;
    (ii) Who has a record of such an impairment; or
    (iii) Who is regarded as having such an impairment.


(Authority: Section 7(20)(B) of the Act; 29 U.S.C. 705(20)(B))

    (30) Individual with a most significant disability means an 
individual with a significant disability who meets the designated State 
unit's criteria for an individual with a most significant disability. 
These criteria must be consistent with the requirements in Sec. 
361.36(d)(1) and (2).


(Authority: Sections 7(21)(E)(i) and 101(a)(5)(C) of the Act; 29 U.S.C. 
705(21)(E)(i) and 721(a)(5)(C))

    (31) Individual with a significant disability means an individual 
with a disability--
    (i) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (ii) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (iii) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental 
retardation, mental illness, multiple sclerosis, muscular dystrophy, 
musculo-skeletal disorders, neurological disorders (including stroke and 
epilepsy), spinal cord conditions (including paraplegia and 
quadriplegia), sickle cell anemia, specific learning disability, end-
stage renal disease, or another disability or combination of 
disabilities determined on the basis of an assessment for determining 
eligibility and vocational rehabilitation needs to cause comparable 
substantial functional limitation.


(Authority: Section 7(21)(A) of the Act; 29 U.S.C. 705(21)(A))


[[Page 302]]


    (32) Individual's representative means any representative chosen by 
an applicant or eligible individual, as appropriate, including a parent, 
guardian, other family member, or advocate, unless a representative has 
been appointed by a court to represent the individual, in which case the 
court-appointed representative is the individual's representative.


(Authority: Sections 7(22) and 12(c) of the Act; 29 U.S.C. 705(22) and 
709(c))

    (33) Integrated setting,--
    (i) With respect to the provision of services, means a setting 
typically found in the community in which applicants or eligible 
individuals interact with non-disabled individuals other than non-
disabled individuals who are providing services to those applicants or 
eligible individuals;
    (ii) With respect to an employment outcome, means a setting 
typically found in the community in which applicants or eligible 
individuals interact with non-disabled individuals, other than non-
disabled individuals who are providing services to those applicants or 
eligible individuals, to the same extent that non-disabled individuals 
in comparable positions interact with other persons.


(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

    (34) Local workforce investment board means a local workforce 
investment board established under section 117 of the Workforce 
Investment Act of 1998.


(Authority: Section 7(25) of the Act; 29 U.S.C. 705(25))

    (35) Maintenance means monetary support provided to an individual 
for expenses, such as food, shelter, and clothing, that are in excess of 
the normal expenses of the individual and that are necessitated by the 
individual's participation in an assessment for determining eligibility 
and vocational rehabilitation needs or the individual's receipt of 
vocational rehabilitation services under an individualized plan for 
employment.


(Authority: Sections 12(c) and 103(a)(7) of the Act; 29 U.S.C. 709(c) 
and 723(a)(7))

    (i) Examples: The following are examples of expenses that would meet 
the definition of maintenance. The examples are illustrative, do not 
address all possible circumstances, and are not intended to substitute 
for individual counselor judgment.

    Example 1: The cost of a uniform or other suitable clothing that is 
required for an individual's job placement or job-seeking activities.
    Example 2: The cost of short-term shelter that is required in order 
for an individual to participate in assessment activities or vocational 
training at a site that is not within commuting distance of an 
individual's home.
    Example 3: The initial one-time costs, such as a security deposit or 
charges for the initiation of utilities, that are required in order for 
an individual to relocate for a job placement.
    Example 4: The costs of an individual's participation in enrichment 
activities related to that individual's training program.

    (ii) [Reserved]
    (36) Mediation means the act or process of using an independent 
third party to act as a mediator, intermediary, or conciliator to assist 
persons or parties in settling differences or disputes prior to pursuing 
formal administrative or other legal remedies. Mediation under the 
program must be conducted in accordance with the requirements in Sec. 
361.57(d) by a qualified and impartial mediator as defined in Sec. 
361.5(b)(43).


(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

    (37) Nonprofit, with respect to a community rehabilitation program, 
means a community rehabilitation program carried out by a corporation or 
association, no part of the net earnings of which inures, or may 
lawfully inure, to the benefit of any private shareholder or individual 
and the income of which is exempt from taxation under section 501(c)(3) 
of the Internal Revenue Code of 1986.


(Authority: Section 7(26) of the Act; 29 U.S.C. 705(26))

    (38) Ongoing support services, as used in the definition of 
``Supported employment''
    (i) Means services that are--
    (A) Needed to support and maintain an individual with a most 
significant disability in supported employment;

[[Page 303]]

    (B) Identified based on a determination by the designated State unit 
of the individual's need as specified in an individualized plan for 
employment; and
    (C) Furnished by the designated State unit from the time of job 
placement until transition to extended services, unless post-employment 
services are provided following transition, and thereafter by one or 
more extended services providers throughout the individual's term of 
employment in a particular job placement or multiple placements if those 
placements are being provided under a program of transitional 
employment;
    (ii) Must include an assessment of employment stability and 
provision of specific services or the coordination of services at or 
away from the worksite that are needed to maintain stability based on--
    (A) At a minimum, twice-monthly monitoring at the worksite of each 
individual in supported employment; or
    (B) If under specific circumstances, especially at the request of 
the individual, the individualized plan for employment provides for off-
site monitoring, twice monthly meetings with the individual;
    (iii) Consist of--
    (A) Any particularized assessment supplementary to the comprehensive 
assessment of rehabilitation needs described in paragraph (b)(6)(ii) of 
this section;
    (B) The provision of skilled job trainers who accompany the 
individual for intensive job skill training at the work site;
    (C) Job development and training;
    (D) Social skills training;
    (E) Regular observation or supervision of the individual;
    (F) Follow-up services including regular contact with the employers, 
the individuals, the parents, family members, guardians, advocates or 
authorized representatives of the individuals, and other suitable 
professional and informed advisors, in order to reinforce and stabilize 
the job placement;
    (G) Facilitation of natural supports at the worksite;
    (H) Any other service identified in the scope of vocational 
rehabilitation services for individuals, described in Sec. 361.48; or
    (I) Any service similar to the foregoing services.


(Authority: Sections 7(27) and 12(c) of the Act; 29 U.S.C. 705(27) and 
709(c))

    (39) Personal assistance services means a range of services provided 
by one or more persons designed to assist an individual with a 
disability to perform daily living activities on or off the job that the 
individual would typically perform without assistance if the individual 
did not have a disability. The services must be designed to increase the 
individual's control in life and ability to perform everyday activities 
on or off the job. The services must be necessary to the achievement of 
an employment outcome and may be provided only while the individual is 
receiving other vocational rehabilitation services. The services may 
include training in managing, supervising, and directing personal 
assistance services.


(Authority: Sections 7(28), 102(b)(3)(B)(i)(I), and 103(a)(9) of the 
Act; 29 U.S.C. 705(28), 722(b)(3)(B)(i)(I), and 723(a)(9))

    (40) Physical and mental restoration services means--
    (i) Corrective surgery or therapeutic treatment that is likely, 
within a reasonable period of time, to correct or modify substantially a 
stable or slowly progressive physical or mental impairment that 
constitutes a substantial impediment to employment;
    (ii) Diagnosis of and treatment for mental or emotional disorders by 
qualified personnel in accordance with State licensure laws;
    (iii) Dentistry;
    (iv) Nursing services;
    (v) Necessary hospitalization (either inpatient or outpatient care) 
in connection with surgery or treatment and clinic services;
    (vi) Drugs and supplies;
    (vii) Prosthetic and orthotic devices;
    (viii) Eyeglasses and visual services, including visual training, 
and the examination and services necessary for the prescription and 
provision of eyeglasses, contact lenses, microscopic lenses, telescopic 
lenses, and other special visual aids prescribed by personnel

[[Page 304]]

that are qualified in accordance with State licensure laws;
    (ix) Podiatry;
    (x) Physical therapy;
    (xi) Occupational therapy;
    (xii) Speech or hearing therapy;
    (xiii) Mental health services;
    (xiv) Treatment of either acute or chronic medical complications and 
emergencies that are associated with or arise out of the provision of 
physical and mental restoration services, or that are inherent in the 
condition under treatment;
    (xv) Special services for the treatment of individuals with end-
stage renal disease, including transplantation, dialysis, artificial 
kidneys, and supplies; and
    (xvi) Other medical or medically related rehabilitation services.


(Authority: Sections 12(c) and 103(a)(6) of the Act; 29 U.S.C. 709(c) 
and 723(a)(6))

    (41) Physical or mental impairment means--
    (i) Any physiological disorder or condition, cosmetic disfigurement, 
or anatomical loss affecting one or more of the following body systems: 
neurological, musculo-skeletal, special sense organs, respiratory 
(including speech organs), cardiovascular, reproductive, digestive, 
genitourinary, hemic and lymphatic, skin, and endocrine; or
    (ii) Any mental or psychological disorder such as mental 
retardation, organic brain syndrome, emotional or mental illness, and 
specific learning disabilities.


(Authority: Sections 7(20)(A) and 12(c) of the Act; 29 U.S.C. 705(20)(A) 
and 709(c))

    (42) Post-employment services means one or more of the services 
identified in Sec. 361.48 that are provided subsequent to the 
achievement of an employment outcome and that are necessary for an 
individual to maintain, regain, or advance in employment, consistent 
with the individual's strengths, resources, priorities, concerns, 
abilities, capabilities, interests, and informed choice.


(Authority: Sections 12(c) and 103(a)(18) of the Act; 29 U.S.C. 709(c)) 
and 723(a)(18))

    Note to paragraph (b)(42): Post-employment services are intended to 
ensure that the employment outcome remains consistent with the 
individual's strengths, resources, priorities, concerns, abilities, 
capabilities, interests, and informed choice. These services are 
available to meet rehabilitation needs that do not require a complex and 
comprehensive provision of services and, thus, should be limited in 
scope and duration. If more comprehensive services are required, then a 
new rehabilitation effort should be considered. Post-employment services 
are to be provided under an amended individualized plan for employment; 
thus, a re-determination of eligibility is not required. The provision 
of post-employment services is subject to the same requirements in this 
part as the provision of any other vocational rehabilitation service. 
Post-employment services are available to assist an individual to 
maintain employment, e.g., the individual's employment is jeopardized 
because of conflicts with supervisors or co-workers, and the individual 
needs mental health services and counseling to maintain the employment; 
to regain employment, e.g., the individual's job is eliminated through 
reorganization and new placement services are needed; and to advance in 
employment, e.g., the employment is no longer consistent with the 
individual's strengths, resources, priorities, concerns, abilities, 
capabilities, interests, and informed choice.

    (43) Qualified and impartial mediator. (i) Qualified and impartial 
mediator means an individual who--
    (A) Is not an employee of a public agency (other than an 
administrative law judge, hearing examiner, employee of a State office 
of mediators, or employee of an institution of higher education);
    (B) Is not a member of the State Rehabilitation Council for the 
designated State unit;
    (C) Has not been involved previously in the vocational 
rehabilitation of the applicant or eligible individual;
    (D) Is knowledgeable of the vocational rehabilitation program and 
the applicable Federal and State laws, regulations, and policies 
governing the provision of vocational rehabilitation services;
    (E) Has been trained in effective mediation techniques consistent 
with any State-approved or -recognized certification, licensing, 
registration, or other requirements; and
    (F) Has no personal, professional, or financial interest that would 
be in conflict with the objectivity of the individual during the 
mediation proceedings.

[[Page 305]]

    (ii) An individual serving as a mediator is not considered to be an 
employee of the designated State agency or designated State unit for the 
purposes of this definition solely because the individual is paid by the 
designated State agency or designated State unit to serve as a mediator.


(Authority: Sections 12(c) and 102(c)(4) of the Act; 29 U.S.C. 709(c) 
and 722(c)(4))

    (44) Rehabilitation engineering means the systematic application of 
engineering sciences to design, develop, adapt, test, evaluate, apply, 
and distribute technological solutions to problems confronted by 
individuals with disabilities in functional areas, such as mobility, 
communications, hearing, vision, and cognition, and in activities 
associated with employment, independent living, education, and 
integration into the community.


(Authority: Section 7(12)(c) of the Act; 29 U.S.C. 709(c))

    (45) Rehabilitation technology means the systematic application of 
technologies, engineering methodologies, or scientific principles to 
meet the needs of, and address the barriers confronted by, individuals 
with disabilities in areas that include education, rehabilitation, 
employment, transportation, independent living, and recreation. The term 
includes rehabilitation engineering, assistive technology devices, and 
assistive technology services.


(Authority: Section 7(30) of the Act; 29 U.S.C. 705(30))

    (46) Reservation means a Federal or State Indian reservation, public 
domain Indian allotment, former Indian reservation in Oklahoma, and land 
held by incorporated Native groups, regional corporations, and village 
corporations under the provisions of the Alaska Native Claims Settlement 
Act.


(Authority: Section 121(c) of the Act; 29 U.S.C. 741(c))

    (47) Sole local agency means a unit or combination of units of 
general local government or one or more Indian tribes that has the sole 
responsibility under an agreement with, and the supervision of, the 
State agency to conduct a local or tribal vocational rehabilitation 
program, in accordance with the State plan.


(Authority: Section 7(24) of the Act; 29 U.S.C. 705(24))

    (48) State means any of the 50 States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana Islands.


(Authority: Section 7(32) of the Act; 29 U.S.C. 705(32))

    (49) State workforce investment board means a State workforce 
investment board established under section 111 of the Workforce 
Investment Act of 1998.


(Authority: Section 7(33) of the Act; 29 U.S.C. 705(33))

    (50) Statewide workforce investment system means a system described 
in section 111(d)(2) of the Workforce Investment Act of 1998.


(Authority: Section 7(34) of the Act; 29 U.S.C. 705(34))

    (51) State plan means the State plan for vocational rehabilitation 
services submitted under Sec. 361.10.


(Authority: Sections 12(c) and 101 of the Act; 29 U.S.C. 709(c) and 721)

    (52) Substantial impediment to employment means that a physical or 
mental impairment (in light of attendant medical, psychological, 
vocational, educational, communication, and other related factors) 
hinders an individual from preparing for, entering into, engaging in, or 
retaining employment consistent with the individual's abilities and 
capabilities.


(Authority: Sections 7(20)(A) and 12(c) of the Act; 29 U.S.C. 705(20)(A) 
and 709(c))

    (53) Supported employment means--
    (i) Competitive employment in an integrated setting, or employment 
in integrated work settings in which individuals are working toward 
competitive employment, consistent with the strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and informed 
choice of the individuals

[[Page 306]]

with ongoing support services for individuals with the most significant 
disabilities--
    (A) For whom competitive employment has not traditionally occurred 
or for whom competitive employment has been interrupted or intermittent 
as a result of a significant disability; and
    (B) Who, because of the nature and severity of their disabilities, 
need intensive supported employment services from the designated State 
unit and extended services after transition as described in paragraph 
(b)(20) of this section to perform this work; or
    (ii) Transitional employment, as defined in paragraph (b)(54) of 
this section, for individuals with the most significant disabilities due 
to mental illness.


(Authority: Section 7(35) of the Act; 29 U.S.C. 705(35))

    (54) Supported employment services means ongoing support services 
and other appropriate services needed to support and maintain an 
individual with a most significant disability in supported employment 
that are provided by the designated State unit--
    (i) For a period of time not to exceed 18 months, unless under 
special circumstances the eligible individual and the rehabilitation 
counselor or coordinator jointly agree to extend the time to achieve the 
employment outcome identified in the individualized plan for employment; 
and
    (ii) Following transition, as post-employment services that are 
unavailable from an extended services provider and that are necessary to 
maintain or regain the job placement or advance in employment.


(Authority: Sections 7(36) and 12(c) of the Act; 29 U.S.C. 705(36) and 
709(c))

    (55) Transition services means a coordinated set of activities for a 
student designed within an outcome-oriented process that promotes 
movement from school to post-school activities, including postsecondary 
education, vocational training, integrated employment (including 
supported employment), continuing and adult education, adult services, 
independent living, or community participation. The coordinated set of 
activities must be based upon the individual student's needs, taking 
into account the student's preferences and interests, and must include 
instruction, community experiences, the development of employment and 
other post-school adult living objectives, and, if appropriate, 
acquisition of daily living skills and functional vocational evaluation. 
Transition services must promote or facilitate the achievement of the 
employment outcome identified in the student's individualized plan for 
employment.


(Authority: Section 7(37) and 103(a)(15) of the Act; 29 U.S.C. 705(37) 
and 723(a)(15))

    (56) Transitional employment, as used in the definition of 
``Supported employment,'' means a series of temporary job placements in 
competitive work in integrated settings with ongoing support services 
for individuals with the most significant disabilities due to mental 
illness. In transitional employment, the provision of ongoing support 
services must include continuing sequential job placements until job 
permanency is achieved.


(Authority: Sections 7(35)(B) and 12(c) of the Act; 29 U.S.C. 705(35)(B) 
and 709(c)

    (57) Transportation means travel and related expenses that are 
necessary to enable an applicant or eligible individual to participate 
in a vocational rehabilitation service, including expenses for training 
in the use of public transportation vehicles and systems.


(Authority: 103(a)(8) of the Act; 29 U.S.C. 723(a)(8))

    (i) Examples: The following are examples of expenses that would meet 
the definition of transportation. The examples are purely illustrative, 
do not address all possible circumstances, and are not intended to 
substitute for individual counselor judgment.

    Example 1: Travel and related expenses for a personal care attendant 
or aide if the services of that person are necessary to enable the 
applicant or eligible individual to travel to participate in any 
vocational rehabilitation service.
    Example 2: The purchase and repair of vehicles, including vans, but 
not the modification of these vehicles, as modification would be 
considered a rehabilitation technology service.

[[Page 307]]

    Example 3: Relocation expenses incurred by an eligible individual in 
connection with a job placement that is a significant distance from the 
eligible individual's current residence.

    (ii) [Reserved]
    (58) Vocational rehabilitation services--
    (i) If provided to an individual, means those services listed in 
Sec. 361.48; and
    (ii) If provided for the benefit of groups of individuals, also 
means those services listed in Sec. 361.49.


(Authority: Sections 7(38) and 103(a) and (b) of the Act; 29 U.S.C. 
705(38), 723(a) and (b))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7252, Jan. 22, 2001]



       Subpart B_State Plan and Other Requirements for Vocational 
                         Rehabilitation Services



Sec. 361.10  Submission, approval, and disapproval of the State plan.

    (a) Purpose. For a State to receive a grant under this part, the 
designated State agency must submit to the Secretary, and obtain 
approval of, a State plan that contains a description of the State's 
vocational rehabilitation services program, the plans and policies to be 
followed in carrying out the program, and other information requested by 
the Secretary, in accordance with the requirements of this part.
    (b) Separate part relating to the vocational rehabilitation of 
individuals who are blind. If a separate State agency administers or 
supervises the administration of a separate part of the State plan 
relating to the vocational rehabilitation of individuals who are blind, 
that part of the State plan must separately conform to all requirements 
under this part that are applicable to a State plan.
    (c) State unified plan. The State may choose to submit the State 
plan for vocational rehabilitation services as part of the State unified 
plan under section 501 of the Workforce Investment Act of 1998. The 
portion of the State unified plan that includes the State plan for 
vocational rehabilitation services must meet the State plan requirements 
in this part.
    (d) Public participation. Prior to the adoption of any substantive 
policies or procedures governing the provision of vocational 
rehabilitation services under the State plan, including making any 
substantive amendment to those policies and procedures, the designated 
State agency must conduct public meetings throughout the State, in 
accordance with the requirements of Sec. 361.20.
    (e) Duration. The State plan remains in effect subject to the 
submission of modifications the State determines to be necessary or the 
Secretary may require based on a change in State policy, a change in 
Federal law, including regulations, an interpretation of the Act by a 
Federal court or the highest court of the State, or a finding by the 
Secretary of State noncompliance with the requirements of the Act or 
this part.
    (f) Submission of the State plan. The State must submit the State 
plan for approval--
    (1) To the Secretary on the same date that the State submits a State 
plan relating to the statewide workforce investment system under section 
112 of the Workforce Investment Act of 1998;
    (2) As part of the State unified plan submitted under section 501 of 
that Act; or
    (3) To the Secretary on the same date that the State submits a State 
unified plan under section 501 of that Act that does not include the 
State plan under this part.
    (g) Annual submission. (1) The State must submit to the Secretary 
for approval revisions to the State plan in accordance with paragraph 
(e) of this section and 34 CFR 76.140.
    (2) The State must submit to the Secretary reports containing annual 
updates of the information required under Sec. Sec. 361.18, 361.29, and 
361.35 and any other updates of the information required under this part 
that are requested by the Secretary.
    (3) The State is not required to submit policies, procedures, or 
descriptions required under this part that have been previously 
submitted to the Secretary and that demonstrate that the State meets the 
requirements of this part, including any policies, procedures, or 
descriptions submitted under this part that are in effect on August 6, 
1998.

[[Page 308]]

    (h) Approval. The Secretary approves any State plan and any 
revisions to the State plan that conform to the requirements of this 
part and section 101(a) of the Act.
    (i) Disapproval. The Secretary disapproves any State plan that does 
not conform to the requirements of this part and section 101(a) of the 
Act, in accordance with the following procedures:
    (1) Informal resolution. Prior to disapproving any State plan, the 
Secretary attempts to resolve disputes informally with State officials.
    (2) Notice. If, after reasonable effort has been made to resolve the 
dispute, no resolution has been reached, the Secretary provides notice 
to the State agency of the intention to disapprove the State plan and of 
the opportunity for a hearing.
    (3) State plan hearing. If the State agency requests a hearing, the 
Secretary designates one or more individuals, either from the Department 
or elsewhere, not responsible for or connected with the administration 
of this Program, to conduct a hearing in accordance with the provisions 
of 34 CFR part 81, subpart A.
    (4) Initial decision. The hearing officer issues an initial decision 
in accordance with 34 CFR 81.41.
    (5) Petition for review of an initial decision. The State agency may 
seek the Secretary's review of the initial decision in accordance with 
34 CFR part 81.
    (6) Review by the Secretary. The Secretary reviews the initial 
decision in accordance with 34 CFR 81.43.
    (7) Final decision of the Department. The final decision of the 
Department is made in accordance with 34 CFR 81.44.
    (8) Judicial review. A State may appeal the Secretary's decision to 
disapprove the State plan by filing a petition for review with the 
United States Court of Appeals for the circuit in which the State is 
located, in accordance with section 107(d) of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a) and (b), and 107(d) of the Act; 20 U.S.C. 
1231g(a); and 29 U.S.C. 721(a) and (b), and 727(d))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.11  Withholding of funds.

    (a) Basis for withholding. The Secretary may withhold or limit 
payments under section 111 or 622(a) of the Act, as provided by section 
107(c) and (d) of the Act, if the Secretary determines that--
    (1) The State plan, including the supported employment supplement, 
has been so changed that it no longer conforms with the requirements of 
this part or 34 CFR part 363; or
    (2) In the administration of the State plan, there has been a 
failure to comply substantially with any provision of that plan or a 
program improvement plan established in accordance with section 
106(b)(2) of the Act.
    (b) Informal resolution. Prior to withholding or limiting payments 
in accordance with this section, the Secretary attempts to resolve 
disputed issues informally with State officials.
    (c) Notice. If, after reasonable effort has been made to resolve the 
dispute, no resolution has been reached, the Secretary provides notice 
to the State agency of the intention to withhold or limit payments and 
of the opportunity for a hearing.
    (d) Withholding hearing. If the State agency requests a hearing, the 
Secretary designates one or more individuals, either from the Department 
or elsewhere, not responsible for or connected with the administration 
of this Program, to conduct a hearing in accordance with the provisions 
of 34 CFR part 81, subpart A.
    (e) Initial decision. The hearing officer issues an initial decision 
in accordance with 34 CFR 81.41.
    (f) Petition for review of an initial decision. The State agency may 
seek the Secretary's review of the initial decision in accordance with 
34 CFR 81.42.
    (g) Review by the Secretary. The Secretary reviews the initial 
decision in accordance with 34 CFR 81.43.
    (h) Final decision of the Department. The final decision of the 
Department is made in accordance with 34 CFR 81.44.
    (i) Judicial review. A State may appeal the Secretary's decision to 
withhold or limit payments by filing a petition for review with the U.S. 
Court of Appeals for the circuit in which the

[[Page 309]]

State is located, in accordance with section 107(d) of the Act.

(Authority: Sections 101(b), 107(c), and 107(d) of the Act; 29 U.S.C. 
721(b), 727(c)(1) and (2), and 727(d))

                             Administration



Sec. 361.12  Methods of administration.

    The State plan must assure that the State agency, and the designated 
State unit if applicable, employs methods of administration found 
necessary by the Secretary for the proper and efficient administration 
of the plan and for carrying out all functions for which the State is 
responsible under the plan and this part. These methods must include 
procedures to ensure accurate data collection and financial 
accountability.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(6) and (a)(10)(A) of the Act; 29 U.S.C. 
721(a)(6) and (a)(10)(A))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.13  State agency for administration.

    (a) Designation of State agency. The State plan must designate a 
State agency as the sole State agency to administer the State plan, or 
to supervise its administration in a political subdivision of the State 
by a sole local agency, in accordance with the following requirements:
    (1) General. Except as provided in paragraphs (a)(2) and (3) of this 
section, the State plan must provide that the designated State agency is 
one of the following types of agencies:
    (i) A State agency that is primarily concerned with vocational 
rehabilitation or vocational and other rehabilitation of individuals 
with disabilities; or
    (ii) A State agency that includes a vocational rehabilitation unit 
as provided in paragraph (b) of this section.
    (2) American Samoa. In the case of American Samoa, the State plan 
must designate the Governor.
    (3) Designated State agency for individuals who are blind. If a 
State commission or other agency that provides assistance or services to 
individuals who are blind is authorized under State law to provide 
vocational rehabilitation services to individuals who are blind, and 
this commission or agency is primarily concerned with vocational 
rehabilitation or includes a vocational rehabilitation unit as provided 
in paragraph (b) of this section, the State plan may designate that 
agency as the sole State agency to administer the part of the plan under 
which vocational rehabilitation services are provided for individuals 
who are blind or to supervise its administration in a political 
subdivision of the State by a sole local agency.
    (b) Designation of State unit. (1) If the designated State agency is 
not of the type specified in paragraph (a)(1)(i) of this section or if 
the designated State agency specified in paragraph (a)(3) of this 
section is not primarily concerned with vocational rehabilitation or 
vocational and other rehabilitation of individuals with disabilities, 
the State plan must assure that the agency (or each agency if two 
agencies are designated) includes a vocational rehabilitation bureau, 
division, or unit that--
    (i) Is primarily concerned with vocational rehabilitation or 
vocational and other rehabilitation of individuals with disabilities and 
is responsible for the administration of the State agency's vocational 
rehabilitation program under the State plan;
    (ii) Has a full-time director;
    (iii) Has a staff, at least 90 percent of whom are employed full 
time on the rehabilitation work of the organizational unit; and
    (iv) Is located at an organizational level and has an organizational 
status within the State agency comparable to that of other major 
organizational units of the agency.
    (2) In the case of a State that has not designated a separate State 
agency for individuals who are blind, as provided for in paragraph 
(a)(3) of this section, the State may assign responsibility for the part 
of the plan under which vocational rehabilitation services are provided 
to individuals who are blind to one organizational unit of the 
designated State agency and may assign responsibility for the rest of 
the plan to another organizational unit of the

[[Page 310]]

designated State agency, with the provisions of paragraph (b)(1) of this 
section applying separately to each of these units.
    (c) Responsibility for administration. (1) At a minimum, the 
following activities are the responsibility of the designated State unit 
or the sole local agency under the supervision of the State unit:
    (i) All decisions affecting eligibility for vocational 
rehabilitation services, the nature and scope of available services, and 
the provision of these services.
    (ii) The determination to close the record of services of an 
individual who has achieved an employment outcome in accordance with 
Sec. 361.56.
    (iii) Policy formulation and implementation.
    (iv) The allocation and expenditure of vocational rehabilitation 
funds.
    (v) Participation as a partner in the One-Stop service delivery 
system under Title I of the Workforce Investment Act of 1998, in 
accordance with 20 CFR part 662.
    (2) The responsibility for the functions described in paragraph 
(c)(1) of this section may not be delegated to any other agency or 
individual.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(2) of the Act; 29 U.S.C. 721(a)(2))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.14  Substitute State agency.

    (a) General provisions. (1) If the Secretary has withheld all 
funding from a State under Sec. 361.11, the State may designate another 
agency to substitute for the designated State agency in carrying out the 
State's program of vocational rehabilitation services.
    (2) Any public or nonprofit private organization or agency within 
the State or any political subdivision of the State is eligible to be a 
substitute agency.
    (3) The substitute agency must submit a State plan that meets the 
requirements of this part.
    (4) The Secretary makes no grant to a substitute agency until the 
Secretary approves its plan.
    (b) Substitute agency matching share. The Secretary does not make 
any payment to a substitute agency unless it has provided assurances 
that it will contribute the same matching share as the State would have 
been required to contribute if the State agency were carrying out the 
vocational rehabilitation program.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 107(c)(3) of the Act; 29 U.S.C. 727(c)(3))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.15  Local administration.

    (a) If the State plan provides for the administration of the plan by 
a local agency, the designated State agency must--
    (1) Ensure that each local agency is under the supervision of the 
designated State unit and is the sole local agency as defined in Sec. 
361.5(b)(47) that is responsible for the administration of the program 
within the political subdivision that it serves; and
    (2) Develop methods that each local agency will use to administer 
the vocational rehabilitation program, in accordance with the State 
plan.
    (b) A separate local agency serving individuals who are blind may 
administer that part of the plan relating to vocational rehabilitation 
of individuals who are blind, under the supervision of the designated 
State unit for individuals who are blind.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 7(24) and 101(a)(2)(A) of the Act; 29 U.S.C. 
705(24) and 721(a)(2)(A))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.16  Establishment of an independent commission or a state
rehabilitation council.

    (a) General requirement. Except as provided in paragraph (b) of this 
section, the State plan must contain one of the following two 
assurances:
    (1) An assurance that the designated State agency is an independent 
State commission that--
    (i) Is responsible under State law for operating, or overseeing the 
operation

[[Page 311]]

of, the vocational rehabilitation program in the State and is primarily 
concerned with vocational rehabilitation or vocational and other 
rehabilitation services, in accordance with Sec. 361.13(a)(1)(i);
    (ii) Is consumer-controlled by persons who--
    (A) Are individuals with physical or mental impairments that 
substantially limit major life activities; and
    (B) Represent individuals with a broad range of disabilities, unless 
the designated State unit under the direction of the commission is the 
State agency for individuals who are blind;
    (iii) Includes family members, advocates, or other representatives 
of individuals with mental impairments; and
    (iv) Conducts the functions identified in Sec. 361.17(h)(4).
    (2) An assurance that--
    (i) The State has established a State Rehabilitation Council 
(Council) that meets the requirements of Sec. 361.17;
    (ii) The designated State unit, in accordance with Sec. 361.29, 
jointly develops, agrees to, and reviews annually State goals and 
priorities and jointly submits to the Secretary annual reports of 
progress with the Council;
    (iii) The designated State unit regularly consults with the Council 
regarding the development, implementation, and revision of State 
policies and procedures of general applicability pertaining to the 
provision of vocational rehabilitation services;
    (iv) The designated State unit transmits to the Council--
    (A) All plans, reports, and other information required under this 
part to be submitted to the Secretary;
    (B) All policies and information on all practices and procedures of 
general applicability provided to or used by rehabilitation personnel 
providing vocational rehabilitation services under this part; and
    (C) Copies of due process hearing decisions issued under this part 
and transmitted in a manner to ensure that the identity of the 
participants in the hearings is kept confidential; and
    (v) The State plan, and any revision to the State plan, includes a 
summary of input provided by the Council, including recommendations from 
the annual report of the Council, the review and analysis of consumer 
satisfaction described in Sec. 361.17(h)(4), and other reports prepared 
by the Council, and the designated State unit's response to the input 
and recommendations, including explanations of reasons for rejecting any 
input or recommendation of the Council.
    (b) Exception for separate State agency for individuals who are 
blind. In the case of a State that designates a separate State agency 
under Sec. 361.13(a)(3) to administer the part of the State plan under 
which vocational rehabilitation services are provided to individuals who 
are blind, the State must either establish a separate State 
Rehabilitation Council for each agency that does not meet the 
requirements in paragraph (a)(1) of this section or establish one State 
Rehabilitation Council for both agencies if neither agency meets the 
requirements of paragraph (a)(1) of this section.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(21) of the Act; 29 U.S.C. 721(a)(21))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.17  Requirements for a state rehabilitation council.

    If the State has established a Council under Sec. 361.16(a)(2) or 
(b), the Council must meet the following requirements:
    (a) Appointment. (1) The members of the Council must be appointed by 
the Governor or, in the case of a State that, under State law, vests 
authority for the administration of the activities carried out under 
this part in an entity other than the Governor (such as one or more 
houses of the State legislature or an independent board), the chief 
officer of that entity.
    (2) The appointing authority must select members of the Council 
after soliciting recommendations from representatives of organizations 
representing a broad range of individuals with disabilities and 
organizations interested in individuals with disabilities. In selecting 
members, the appointing authority must consider, to the greatest extent 
practicable, the extent to which minority populations are represented on 
the Council.

[[Page 312]]

    (b) Composition--(1) General. Except as provided in paragraph (b)(3) 
of this section, the Council must be composed of at least 15 members, 
including--
    (i) At least one representative of the Statewide Independent Living 
Council, who must be the chairperson or other designee of the Statewide 
Independent Living Council;
    (ii) At least one representative of a parent training and 
information center established pursuant to section 682(a) of the 
Individuals with Disabilities Education Act;
    (iii) At least one representative of the Client Assistance Program 
established under 34 CFR part 370, who must be the director of or other 
individual recommended by the Client Assistance Program;
    (iv) At least one qualified vocational rehabilitation counselor with 
knowledge of and experience with vocational rehabilitation programs who 
serves as an ex officio, nonvoting member of the Council if employed by 
the designated State agency;
    (v) At least one representative of community rehabilitation program 
service providers;
    (vi) Four representatives of business, industry, and labor;
    (vii) Representatives of disability groups that include a cross 
section of--
    (A) Individuals with physical, cognitive, sensory, and mental 
disabilities; and
    (B) Representatives of individuals with disabilities who have 
difficulty representing themselves or are unable due to their 
disabilities to represent themselves;
    (viii) Current or former applicants for, or recipients of, 
vocational rehabilitation services;
    (ix) In a State in which one or more projects are carried out under 
section 121 of the Act (American Indian Vocational Rehabilitation 
Services), at least one representative of the directors of the projects;
    (x) At least one representative of the State educational agency 
responsible for the public education of students with disabilities who 
are eligible to receive services under this part and part B of the 
Individuals with Disabilities Education Act;
    (xi) At least one representative of the State workforce investment 
board; and
    (xii) The director of the designated State unit as an ex officio, 
nonvoting member of the Council.
    (2) Employees of the designated State agency. Employees of the 
designated State agency may serve only as nonvoting members of the 
Council. This provision does not apply to the representative appointed 
pursuant to paragraph (b)(1)(iii) of this section.
    (3) Composition of a separate Council for a separate State agency 
for individuals who are blind. Except as provided in paragraph (b)(4) of 
this section, if the State establishes a separate Council for a separate 
State agency for individuals who are blind, that Council must--
    (i) Conform with all of the composition requirements for a Council 
under paragraph (b)(1) of this section, except the requirements in 
paragraph (b)(1)(vii), unless the exception in paragraph (b)(4) of this 
section applies; and
    (ii) Include--
    (A) At least one representative of a disability advocacy group 
representing individuals who are blind; and
    (B) At least one representative of an individual who is blind, has 
multiple disabilities, and has difficulty representing himself or 
herself or is unable due to disabilities to represent himself or 
herself.
    (4) Exception. If State law in effect on October 29, 1992 requires a 
separate Council under paragraph (b)(3) of this section to have fewer 
than 15 members, the separate Council is in compliance with the 
composition requirements in paragraphs (b)(1)(vi) and (b)(1)(viii) of 
this section if it includes at least one representative who meets the 
requirements for each of those paragraphs.
    (c) Majority. (1) A majority of the Council members must be 
individuals with disabilities who meet the requirements of Sec. 
361.5(b)(29) and are not employed by the designated State unit.
    (2) In the case of a separate Council established under Sec. 
361.16(b), a majority of the Council members must be individuals who are 
blind and are not employed by the designated State unit.
    (d) Chairperson. The chairperson must be--

[[Page 313]]

    (1) Selected by the members of the Council from among the voting 
members of the Council, subject to the veto power of the Governor; or
    (2) In States in which the Governor does not have veto power 
pursuant to State law, the appointing authority described in paragraph 
(a)(1) of this section must designate a member of the Council to serve 
as the chairperson of the Council or must require the Council to 
designate a member to serve as chairperson.
    (e) Terms of appointment. (1) Each member of the Council must be 
appointed for a term of no more than 3 years, and each member of the 
Council, other than a representative identified in paragraph (b)(1)(iii) 
or (ix) of this section, may serve for no more than two consecutive full 
terms.
    (2) A member appointed to fill a vacancy occurring prior to the end 
of the term for which the predecessor was appointed must be appointed 
for the remainder of the predecessor's term.
    (3) The terms of service of the members initially appointed must be, 
as specified by the appointing authority as described in paragraph 
(a)(1) of this section, for varied numbers of years to ensure that terms 
expire on a staggered basis.
    (f) Vacancies. (1) A vacancy in the membership of the Council must 
be filled in the same manner as the original appointment, except the 
appointing authority as described in paragraph (a)(1) of this section 
may delegate the authority to fill that vacancy to the remaining members 
of the Council after making the original appointment.
    (2) No vacancy affects the power of the remaining members to execute 
the duties of the Council.
    (g) Conflict of interest. No member of the Council shall cast a vote 
on any matter that would provide direct financial benefit to the member 
or the member's organization or otherwise give the appearance of a 
conflict of interest under State law.
    (h) Functions. The Council must, after consulting with the State 
workforce investment board--
    (1) Review, analyze, and advise the designated State unit regarding 
the performance of the State unit's responsibilities under this part, 
particularly responsibilities related to--
    (i) Eligibility, including order of selection;
    (ii) The extent, scope, and effectiveness of services provided; and
    (iii) Functions performed by State agencies that affect or 
potentially affect the ability of individuals with disabilities in 
achieving employment outcomes under this part;
    (2) In partnership with the designated State unit--
    (i) Develop, agree to, and review State goals and priorities in 
accordance with Sec. 361.29(c); and
    (ii) Evaluate the effectiveness of the vocational rehabilitation 
program and submit reports of progress to the Secretary in accordance 
with Sec. 361.29(e);
    (3) Advise the designated State agency and the designated State unit 
regarding activities carried out under this part and assist in the 
preparation of the State plan and amendments to the plan, applications, 
reports, needs assessments, and evaluations required by this part;
    (4) To the extent feasible, conduct a review and analysis of the 
effectiveness of, and consumer satisfaction with--
    (i) The functions performed by the designated State agency;
    (ii) The vocational rehabilitation services provided by State 
agencies and other public and private entities responsible for providing 
vocational rehabilitation services to individuals with disabilities 
under the Act; and
    (iii) The employment outcomes achieved by eligible individuals 
receiving services under this part, including the availability of health 
and other employment benefits in connection with those employment 
outcomes;
    (5) Prepare and submit to the Governor and to the Secretary no later 
than 90 days after the end of the Federal fiscal year an annual report 
on the status of vocational rehabilitation programs operated within the 
State and make the report available to the public through appropriate 
modes of communication;
    (6) To avoid duplication of efforts and enhance the number of 
individuals served, coordinate activities with the activities of other 
councils within the

[[Page 314]]

State, including the Statewide Independent Living Council established 
under 34 CFR part 364, the advisory panel established under section 
612(a)(21) of the Individuals with Disabilities Education Act, the State 
Developmental Disabilities Planning Council described in section 124 of 
the Developmental Disabilities Assistance and Bill of Rights Act, the 
State mental health planning council established under section 1914(a) 
of the Public Health Service Act, and the State workforce investment 
board;
    (7) Provide for coordination and the establishment of working 
relationships between the designated State agency and the Statewide 
Independent Living Council and centers for independent living within the 
State; and
    (8) Perform other comparable functions, consistent with the purpose 
of this part, as the Council determines to be appropriate, that are 
comparable to the other functions performed by the Council.
    (i) Resources. (1) The Council, in conjunction with the designated 
State unit, must prepare a plan for the provision of resources, 
including staff and other personnel, that may be necessary and 
sufficient for the Council to carry out its functions under this part.
    (2) The resource plan must, to the maximum extent possible, rely on 
the use of resources in existence during the period of implementation of 
the plan.
    (3) Any disagreements between the designated State unit and the 
Council regarding the amount of resources necessary to carry out the 
functions of the Council must be resolved by the Governor, consistent 
with paragraphs (i)(1) and (2) of this section.
    (4) The Council must, consistent with State law, supervise and 
evaluate the staff and personnel that are necessary to carry out its 
functions.
    (5) Those staff and personnel that are assisting the Council in 
carrying out its functions may not be assigned duties by the designated 
State unit or any other agency or office of the State that would create 
a conflict of interest.
    (j) Meetings. The Council must--
    (1) Convene at least four meetings a year in locations determined by 
the Council to be necessary to conduct Council business. The meetings 
must be publicly announced, open, and accessible to the general public, 
including individuals with disabilities, unless there is a valid reason 
for an executive session; and
    (2) Conduct forums or hearings, as appropriate, that are publicly 
announced, open, and accessible to the public, including individuals 
with disabilities.
    (k) Compensation. Funds appropriated under Title I of the Act, 
except funds to carry out sections 112 and 121 of the Act, may be used 
to compensate and reimburse the expenses of Council members in 
accordance with section 105(g) of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 105 of the Act; 29 U.S.C. 725)

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.18  Comprehensive system of personnel development.

    The State plan must describe the procedures and activities the State 
agency will undertake to establish and maintain a comprehensive system 
of personnel development designed to ensure an adequate supply of 
qualified rehabilitation personnel, including professionals and 
paraprofessionals, for the designated State unit. If the State agency 
has a State Rehabilitation Council, this description must, at a minimum, 
specify that the Council has an opportunity to review and comment on the 
development of plans, policies, and procedures necessary to meet the 
requirements of paragraphs (b) through (d) of this section. This 
description must also conform with the following requirements:
    (a) Data system on personnel and personnel development. The State 
plan must describe the development and maintenance of a system by the 
State agency for collecting and analyzing on an annual basis data on 
qualified personnel needs and personnel development, in accordance with 
the following requirements:
    (1) Data on qualified personnel needs must include--
    (i) The number of personnel who are employed by the State agency in 
the

[[Page 315]]

provision of vocational rehabilitation services in relation to the 
number of individuals served, broken down by personnel category;
    (ii) The number of personnel currently needed by the State agency to 
provide vocational rehabilitation services, broken down by personnel 
category; and
    (iii) Projections of the number of personnel, broken down by 
personnel category, who will be needed by the State agency to provide 
vocational rehabilitation services in the State in 5 years based on 
projections of the number of individuals to be served, including 
individuals with significant disabilities, the number of personnel 
expected to retire or leave the field, and other relevant factors.
    (2) Data on personnel development must include--
    (i) A list of the institutions of higher education in the State that 
are preparing vocational rehabilitation professionals, by type of 
program;
    (ii) The number of students enrolled at each of those institutions, 
broken down by type of program; and
    (iii) The number of students who graduated during the prior year 
from each of those institutions with certification or licensure, or with 
the credentials for certification or licensure, broken down by the 
personnel category for which they have received, or have the credentials 
to receive, certification or licensure.
    (b) Plan for recruitment, preparation, and retention of qualified 
personnel. The State plan must describe the development, updating, and 
implementation of a plan to address the current and projected needs for 
personnel who are qualified in accordance with paragraph (c) of this 
section. The plan must identify the personnel needs based on the data 
collection and analysis system described in paragraph (a) of this 
section and must provide for the coordination and facilitation of 
efforts between the designated State unit and institutions of higher 
education and professional associations to recruit, prepare, and retain 
personnel who are qualified in accordance with paragraph (c) of this 
section, including personnel from minority backgrounds and personnel who 
are individuals with disabilities.
    (c) Personnel standards. (1) The State plan must include the State 
agency's policies and describe the procedures the State agency will 
undertake to establish and maintain standards to ensure that all 
professional and paraprofessional personnel needed within the designated 
State unit to carry out this part are appropriately and adequately 
prepared and trained, including--
    (i) Standards that are consistent with any national or State-
approved or -recognized certification, licensing, or registration 
requirements, or, in the absence of these requirements, other comparable 
requirements (including State personnel requirements) that apply to the 
profession or discipline in which that category of personnel is 
providing vocational rehabilitation services; and
    (ii) To the extent that existing standards are not based on the 
highest requirements in the State, the steps the State is currently 
taking and the steps the State plans to take to retrain or hire 
personnel to meet standards that are based on the highest requirements 
in the State, including measures to notify State unit personnel, the 
institutions of higher education identified under paragraph (a)(2)(i) of 
this section, and other public agencies of these steps and the timelines 
for taking each step. The steps taken by the State unit under this 
paragraph must be described in a written plan that includes--
    (A) Specific strategies for retraining, recruiting, and hiring 
personnel;
    (B) The specific time period by which all State unit personnel will 
meet the standards described in paragraph (c)(1)(i) of this section;
    (C) Procedures for evaluating the State unit's progress in hiring or 
retraining personnel to meet applicable personnel standards within the 
time period established under paragraph (c)(1)(ii)(B) of this section; 
and
    (D) In instances in which the State unit is unable to immediately 
hire new personnel who meet the requirements in paragraph (c)(1)(i) of 
this section, the initial minimum qualifications that the designated 
State unit will require of newly hired personnel and a plan for training 
those individuals to meet applicable requirements within

[[Page 316]]

the time period established under paragraph (c)(1)(ii)(B) of this 
section.
    (2) As used in this section--
    (i) Highest requirements in the State applicable to that profession 
or discipline means the highest entry-level academic degree needed for 
any national or State-approved or -recognized certification, licensing, 
registration, or, in the absence of these requirements, other comparable 
requirements that apply to that profession or discipline. The current 
requirements of all State statutes and regulations of other agencies in 
the State applicable to that profession or discipline must be considered 
and must be kept on file by the designated State unit and available to 
the public.
    (ii) Profession or discipline means a specific occupational 
category, including any paraprofessional occupational category, that--
    (A) Provides rehabilitation services to individuals with 
disabilities;
    (B) Has been established or designated by the State unit; and
    (C) Has a specified scope of responsibility.
    (d) Staff development. (1) The State plan must include the State 
agency's policies and describe the procedures and activities the State 
agency will undertake to ensure that all personnel employed by the State 
unit receive appropriate and adequate training, including a description 
of--
    (i) A system of staff development for rehabilitation professionals 
and paraprofessionals within the State unit, particularly with respect 
to assessment, vocational counseling, job placement, and rehabilitation 
technology; and
    (ii) Procedures for acquiring and disseminating to rehabilitation 
professionals and paraprofessionals within the designated State unit 
significant knowledge from research and other sources.
    (2) The specific training areas for staff development must be based 
on the needs of each State unit and may include, but are not limited 
to--
    (i) Training regarding the Workforce Investment Act of 1998 and the 
amendments to the Rehabilitation Act of 1973 made by the Rehabilitation 
Act Amendments of 1998;
    (ii) Training with respect to the requirements of the Americans with 
Disabilities Act, the Individuals with Disabilities Education Act, and 
Social Security work incentive programs, including programs under the 
Ticket to Work and Work Incentives Improvement Act of 1999, training to 
facilitate informed choice under this program, and training to improve 
the provision of services to culturally diverse populations; and
    (iii) Activities related to--
    (A) Recruitment and retention of qualified rehabilitation personnel;
    (B) Succession planning; and
    (C) Leadership development and capacity building.
    (e) Personnel to address individual communication needs. The State 
plan must describe how the State unit--
    (1) Includes among its personnel, or obtains the services of, 
individuals able to communicate in the native languages of applicants 
and eligible individuals who have limited English speaking ability; and
    (2) Includes among its personnel, or obtains the services of, 
individuals able to communicate with applicants and eligible individuals 
in appropriate modes of communication.
    (f) Coordination with personnel development under the Individuals 
with Disabilities Education Act. The State plan must describe the 
procedures and activities the State agency will undertake to coordinate 
its comprehensive system of personnel development under the Act with 
personnel development under the Individuals with Disabilities Education 
Act.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(7) of the Act; 29 U.S.C. 721(a)(7))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.19  Affirmative action for individuals with disabilities.

    The State plan must assure that the State agency takes affirmative 
action to employ and advance in employment qualified individuals with 
disabilities covered under and on the same terms

[[Page 317]]

and conditions as stated in section 503 of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(6)(B) of the Act; 29 U.S.C. 721(a)(6)(B))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.20  Public participation requirements.

    (a) Conduct of public meetings. The State plan must assure that 
prior to the adoption of any substantive policies or procedures 
governing the provision of vocational rehabilitation services under the 
State plan, including making any substantive amendments to the policies 
and procedures, the designated State agency conducts public meetings 
throughout the State to provide the public, including individuals with 
disabilities, an opportunity to comment on the policies or procedures.
    (b) Notice requirements. The State plan must assure that the 
designated State agency, prior to conducting the public meetings, 
provides appropriate and sufficient notice throughout the State of the 
meetings in accordance with--
    (1) State law governing public meetings; or
    (2) In the absence of State law governing public meetings, 
procedures developed by the designated State agency in consultation with 
the State Rehabilitation Council.
    (c) Summary of input of the State Rehabilitation Council. The State 
plan must provide a summary of the input of the State Rehabilitation 
Council, if the State agency has a Council, into the State plan and any 
amendment to the plan, in accordance with Sec. 361.16(a)(2)(v).
    (d) Special consultation requirements. The State plan must assure 
that the State agency actively consults with the director of the Client 
Assistance Program, the State Rehabilitation Council, if the State 
agency has a Council, and, as appropriate, Indian tribes, tribal 
organizations, and native Hawaiian organizations on its policies and 
procedures governing the provision of vocational rehabilitation services 
under the State plan.
    (e) Appropriate modes of communication. The State unit must provide 
to the public, through appropriate modes of communication, notices of 
the public meetings, any materials furnished prior to or during the 
public meetings, and the policies and procedures governing the provision 
of vocational rehabilitation services under the State plan.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(16)(A) and 105(c)(3) of the Act; 29 U.S.C. 
721(a)(16)(A), and 725(c)(3))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.21  Consultations regarding the administration of the state 
plan.

    The State plan must assure that, in connection with matters of 
general policy arising in the administration of the State plan, the 
designated State agency takes into account the views of--
    (a) Individuals and groups of individuals who are recipients of 
vocational rehabilitation services or, as appropriate, the individuals' 
representatives;
    (b) Personnel working in programs that provide vocational 
rehabilitation services to individuals with disabilities;
    (c) Providers of vocational rehabilitation services to individuals 
with disabilities;
    (d) The director of the Client Assistance Program; and
    (e) The State Rehabilitation Council, if the State has a Council.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(16)(B) of the Act; 29 U.S.C. 721(a)(16)(B))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.22  Coordination with education officials.

    (a) Plans, policies, and procedures. (1) The State plan must contain 
plans, policies, and procedures for coordination between the designated 
State agency and education officials responsible for the public 
education of students with disabilities that are designed to facilitate 
the transition of

[[Page 318]]

students with disabilities from the receipt of educational services in 
school to the receipt of vocational rehabilitation services under the 
responsibility of the designated State agency.
    (2) These plans, policies, and procedures in paragraph (a)(1) of 
this section must provide for the development and approval of an 
individualized plan for employment in accordance with Sec. 361.45 as 
early as possible during the transition planning process but, at the 
latest, by the time each student determined to be eligible for 
vocational rehabilitation services leaves the school setting or, if the 
designated State unit is operating under an order of selection, before 
each eligible student able to be served under the order leaves the 
school setting.
    (b) Formal interagency agreement. The State plan must include 
information on a formal interagency agreement with the State educational 
agency that, at a minimum, provides for--
    (1) Consultation and technical assistance to assist educational 
agencies in planning for the transition of students with disabilities 
from school to post-school activities, including vocational 
rehabilitation services;
    (2) Transition planning by personnel of the designated State agency 
and educational agency personnel for students with disabilities that 
facilitates the development and completion of their individualized 
education programs (IEPs) under section 614(d) of the Individuals with 
Disabilities Education Act;
    (3) The roles and responsibilities, including financial 
responsibilities, of each agency, including provisions for determining 
State lead agencies and qualified personnel responsible for transition 
services; and
    (4) Procedures for outreach to and identification of students with 
disabilities who are in need of transition services. Outreach to these 
students should occur as early as possible during the transition 
planning process and must include, at a minimum, a description of the 
purpose of the vocational rehabilitation program, eligibility 
requirements, application procedures, and scope of services that may be 
provided to eligible individuals.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(11)(D) of the Act; 29 U.S.C. 721 (a)(11)(D))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.23  Requirements related to the statewide workforce investment
system.

    (a) Responsibilities as a partner of the One-Stop service delivery 
system. As a required partner in the One-Stop service delivery system 
(which is part of the statewide workforce investment system under Title 
I of the Workforce Investment Act of 1998), the designated State unit 
must carry out the following functions consistent with the Act, this 
part, Title I of the Workforce Investment Act of 1998, and the 
regulations in 20 CFR part 662:
    (1) Make available to participants through the One-Stop service 
delivery system the core services (as described in 20 CFR 662.240) that 
are applicable to the Program administered by the designated State unit 
under this part.
    (2) Use a portion of funds made available to the Program 
administered by the designated State unit under this part, consistent 
with the Act and this part, to--
    (i) Create and maintain the One-Stop service delivery system; and
    (ii) Provide core services (as described in 20 CFR 662.240).
    (3) Enter into a memorandum of understanding (MOU) with the Local 
Workforce Investment Board under section 117 of the Workforce Investment 
Act of 1998 relating to the operation of the One-Stop service delivery 
system that meets the requirements of section 121(c) of the Workforce 
Investment Act and 20 CFR 662.300, including a description of services, 
how the cost of the identified services and operating costs of the 
system will be funded, and methods for referrals.
    (4) Participate in the operation of the One-Stop service delivery 
system consistent with the terms of the MOU and the requirements of the 
Act and this part.
    (5) Provide representation on the Local Workforce Investment Board

[[Page 319]]

under section 117 of the Workforce Investment Act of 1998.
    (b) Cooperative agreements with One-Stop partners. (1) The State 
plan must assure that the designated State unit or the designated State 
agency enters into cooperative agreements with the other entities that 
are partners under the One-Stop service delivery system under Title I of 
the Workforce Investment Act of 1998 and replicates those agreements at 
the local level between individual offices of the designated State unit 
and local entities carrying out the One-Stop service delivery system or 
other activities through the statewide workforce investment system.
    (2) Cooperative agreements developed under paragraph (b)(1) of this 
section may provide for--
    (i) Intercomponent training and technical assistance regarding--
    (A) The availability and benefits of, and information on eligibility 
standards for, vocational rehabilitation services; and
    (B) The promotion of equal, effective and meaningful participation 
by individuals with disabilities in the One-Stop service delivery system 
and other workforce investment activities through the promotion of 
program accessibility consistent with the requirements of the Americans 
with Disabilities Act of 1990 and section 504 of the Act, the use of 
nondiscriminatory policies and procedures, and the provision of 
reasonable accommodations, auxiliary aids and services, and 
rehabilitation technology for individuals with disabilities;
    (ii) The use of information and financial management systems that 
link all of the partners of the One-Stop service delivery system to one 
another and to other electronic networks, including nonvisual electronic 
networks, and that relate to subjects such as employment statistics, job 
vacancies, career planning, and workforce investment activities;
    (iii) The use of customer service features such as common intake and 
referral procedures, customer databases, resource information, and human 
services hotlines;
    (iv) The establishment of cooperative efforts with employers to 
facilitate job placement and carry out other activities that the 
designated State unit and the employers determine to be appropriate;
    (v) The identification of staff roles, responsibilities, and 
available resources and specification of the financial responsibility of 
each partner of the One-Stop service delivery system with respect to 
providing and paying for necessary services, consistent with the 
requirements of the Act, this part, other Federal requirements, and 
State law; and
    (vi) The specification of procedures for resolving disputes among 
partners of the One-Stop service delivery system.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(11)(A) of the Act; 29 U.S.C. 721(a)(11)(A); 
Sections 121 and 134 of the Workforce Investment Act of 1998; 29 U.S.C. 
2841 and 2864)

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.24  Cooperation and coordination with other entities.

    (a) Interagency cooperation. The State plan must describe the 
designated State agency's cooperation with and use of the services and 
facilities of Federal, State, and local agencies and programs, including 
programs carried out by the Under Secretary for Rural Development of the 
Department of Agriculture and State use contracting programs, to the 
extent that those agencies and programs are not carrying out activities 
through the statewide workforce investment system.
    (b) Coordination with the Statewide Independent Living Council and 
independent living centers. The State plan must assure that the 
designated State unit, the Statewide Independent Living Council 
established under 34 CFR part 364, and the independent living centers 
established under 34 CFR part 366 have developed working relationships 
and coordinate their activities.
    (c) Cooperative agreement with recipients of grants for services to 
American Indians--(1) General. In applicable cases, the State plan must 
assure that the designated State agency has entered into a formal 
cooperative agreement with each grant recipient in the State

[[Page 320]]

that receives funds under part C of the Act (American Indian Vocational 
Rehabilitation Services).
    (2) Contents of formal cooperative agreement. The agreement required 
under paragraph (a)(1) of this section must describe strategies for 
collaboration and coordination in providing vocational rehabilitation 
services to American Indians who are individuals with disabilities, 
including--
    (i) Strategies for interagency referral and information sharing that 
will assist in eligibility determinations and the development of 
individualized plans for employment;
    (ii) Procedures for ensuring that American Indians who are 
individuals with disabilities and are living near a reservation or 
tribal service area are provided vocational rehabilitation services; and
    (iii) Provisions for sharing resources in cooperative studies and 
assessments, joint training activities, and other collaborative 
activities designed to improve the provision of services to American 
Indians who are individuals with disabilities.
    (d) Reciprocal referral services between two designated State units 
in the same State. If there is a separate designated State unit for 
individuals who are blind, the two designated State units must establish 
reciprocal referral services, use each other's services and facilities 
to the extent feasible, jointly plan activities to improve services in 
the State for individuals with multiple impairments, including visual 
impairments, and otherwise cooperate to provide more effective services, 
including, if appropriate, entering into a written cooperative 
agreement.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c) and 101(a)(11)(C), (E), and (F) of the Act; 
29 U.S.C. 709(c) and 721(a)(11) (C), (E), and (F))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.25  Statewideness.

    The State plan must assure that services provided under the State 
plan will be available in all political subdivisions of the State, 
unless a waiver of statewideness is requested and approved in accordance 
with Sec. 361.26.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(4) of the Act; 29 U.S.C. 721(a)(4))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.26  Waiver of statewideness.

    (a) Availability. The State unit may provide services in one or more 
political subdivisions of the State that increase services or expand the 
scope of services that are available statewide under the State plan if--
    (1) The non-Federal share of the cost of these services is met from 
funds provided by a local public agency, including funds contributed to 
a local public agency by a private agency, organization, or individual;
    (2) The services are likely to promote the vocational rehabilitation 
of substantially larger numbers of individuals with disabilities or of 
individuals with disabilities with particular types of impairments; and
    (3) For purposes other than those specified in Sec. 361.60(b)(3)(i) 
and consistent with the requirements in Sec. 361.60(b)(3)(ii), the 
State includes in its State plan, and the Secretary approves, a waiver 
of the statewideness requirement, in accordance with the requirements of 
paragraph (b) of this section.
    (b) Request for waiver. The request for a waiver of statewideness 
must--
    (1) Identify the types of services to be provided;
    (2) Contain a written assurance from the local public agency that it 
will make available to the State unit the non-Federal share of funds;
    (3) Contain a written assurance that State unit approval will be 
obtained for each proposed service before it is put into effect; and

[[Page 321]]

    (4) Contain a written assurance that all other State plan 
requirements, including a State's order of selection requirements, will 
apply to all services approved under the waiver.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(4) of the Act; 29 U.S.C. 721(a)(4))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.27  Shared funding and administration of joint programs.

    (a) If the State plan provides for the designated State agency to 
share funding and administrative responsibility with another State 
agency or local public agency to carry out a joint program to provide 
services to individuals with disabilities, the State must submit to the 
Secretary for approval a plan that describes its shared funding and 
administrative arrangement.
    (b) The plan under paragraph (a) of this section must include--
    (1) A description of the nature and scope of the joint program;
    (2) The services to be provided under the joint program;
    (3) The respective roles of each participating agency in the 
administration and provision of services; and
    (4) The share of the costs to be assumed by each agency.
    (c) If a proposed joint program does not comply with the 
statewideness requirement in Sec. 361.25, the State unit must obtain a 
waiver of statewideness, in accordance with Sec. 361.26.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(2)(A) of the Act; 29 U.S.C. 721(a)(2)(A))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.28  Third-party cooperative arrangements involving funds 
from other public agencies.

    (a) The designated State unit may enter into a third-party 
cooperative arrangement for providing or administering vocational 
rehabilitation services with another State agency or a local public 
agency that is furnishing part or all of the non-Federal share, if the 
designated State unit ensures that--
    (1) The services provided by the cooperating agency are not the 
customary or typical services provided by that agency but are new 
services that have a vocational rehabilitation focus or existing 
services that have been modified, adapted, expanded, or reconfigured to 
have a vocational rehabilitation focus;
    (2) The services provided by the cooperating agency are only 
available to applicants for, or recipients of, services from the 
designated State unit;
    (3) Program expenditures and staff providing services under the 
cooperative arrangement are under the administrative supervision of the 
designated State unit; and
    (4) All State plan requirements, including a State's order of 
selection, will apply to all services provided under the cooperative 
program.
    (b) If a third party cooperative agreement does not comply with the 
statewideness requirement in Sec. 361.25, the State unit must obtain a 
waiver of statewideness, in accordance with Sec. 361.26.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.29  Statewide assessment; annual estimates; annual State 
goals and priorities; strategies; and progress reports.

    (a) Comprehensive statewide assessment. (1) The State plan must 
include--
    (i) The results of a comprehensive, statewide assessment, jointly 
conducted by the designated State unit and the State Rehabilitation 
Council (if the State unit has a Council) every 3 years describing the 
rehabilitation needs of individuals with disabilities residing within 
the State, particularly the vocational rehabilitation services needs 
of--
    (A) Individuals with the most significant disabilities, including 
their need for supported employment services;

[[Page 322]]

    (B) Individuals with disabilities who are minorities and individuals 
with disabilities who have been unserved or underserved by the 
vocational rehabilitation program carried out under this part; and
    (C) Individuals with disabilities served through other components of 
the statewide workforce investment system as identified by those 
individuals and personnel assisting those individuals through the 
components of the system; and
    (ii) An assessment of the need to establish, develop, or improve 
community rehabilitation programs within the State.
    (2) The State plan must assure that the State will submit to the 
Secretary a report containing information regarding updates to the 
assessments under paragraph (a) of this section for any year in which 
the State updates the assessments.
    (b) Annual estimates. The State plan must include, and must assure 
that the State will annually submit a report to the Secretary that 
includes, State estimates of--
    (1) The number of individuals in the State who are eligible for 
services under this part;
    (2) The number of eligible individuals who will receive services 
provided with funds provided under part B of Title I of the Act and 
under part B of Title VI of the Act, including, if the designated State 
agency uses an order of selection in accordance with Sec. 361.36, 
estimates of the number of individuals to be served under each priority 
category within the order; and
    (3) The costs of the services described in paragraph (b)(1) of this 
section, including, if the designated State agency uses an order of 
selection, the service costs for each priority category within the 
order.
    (c) Goals and priorities--(1) In general. The State plan must 
identify the goals and priorities of the State in carrying out the 
program.
    (2) Council. The goals and priorities must be jointly developed, 
agreed to, reviewed annually, and, as necessary, revised by the 
designated State unit and the State Rehabilitation Council, if the State 
unit has a Council.
    (3) Submission. The State plan must assure that the State will 
submit to the Secretary a report containing information regarding 
revisions in the goals and priorities for any year in which the State 
revises the goals and priorities.
    (4) Basis for goals and priorities. The State goals and priorities 
must be based on an analysis of--
    (i) The comprehensive statewide assessment described in paragraph 
(a) of this section, including any updates to the assessment;
    (ii) The performance of the State on the standards and indicators 
established under section 106 of the Act; and
    (iii) Other available information on the operation and the 
effectiveness of the vocational rehabilitation program carried out in 
the State, including any reports received from the State Rehabilitation 
Council under Sec. 361.17(h) and the findings and recommendations from 
monitoring activities conducted under section 107 of the Act.
    (5) Service and outcome goals for categories in order of selection. 
If the designated State agency uses an order of selection in accordance 
with Sec. 361.36, the State plan must identify the State's service and 
outcome goals and the time within which these goals may be achieved for 
individuals in each priority category within the order.
    (d) Strategies. The State plan must describe the strategies the 
State will use to address the needs identified in the assessment 
conducted under paragraph (a) of this section and achieve the goals and 
priorities identified in paragraph (c) of this section, including--
    (1) The methods to be used to expand and improve services to 
individuals with disabilities, including how a broad range of assistive 
technology services and assistive technology devices will be provided to 
those individuals at each stage of the rehabilitation process and how 
those services and devices will be provided to individuals with 
disabilities on a statewide basis;
    (2) Outreach procedures to identify and serve individuals with 
disabilities who are minorities and individuals with disabilities who 
have been unserved or underserved by the vocational rehabilitation 
program;

[[Page 323]]

    (3) As applicable, the plan of the State for establishing, 
developing, or improving community rehabilitation programs;
    (4) Strategies to improve the performance of the State with respect 
to the evaluation standards and performance indicators established 
pursuant to section 106 of the Act; and
    (5) Strategies for assisting other components of the statewide 
workforce investment system in assisting individuals with disabilities.
    (e) Evaluation and reports of progress. (1) The State plan must 
include--
    (i) The results of an evaluation of the effectiveness of the 
vocational rehabilitation program; and
    (ii) A joint report by the designated State unit and the State 
Rehabilitation Council, if the State unit has a Council, to the 
Secretary on the progress made in improving the effectiveness of the 
program from the previous year. This evaluation and joint report must 
include--
    (A) An evaluation of the extent to which the goals and priorities 
identified in paragraph (c) of this section were achieved;
    (B) A description of the strategies that contributed to the 
achievement of the goals and priorities;
    (C) To the extent to which the goals and priorities were not 
achieved, a description of the factors that impeded that achievement; 
and
    (D) An assessment of the performance of the State on the standards 
and indicators established pursuant to section 106 of the Act.
    (2) The State plan must assure that the designated State unit and 
the State Rehabilitation Council, if the State unit has a Council, will 
jointly submit to the Secretary an annual report that contains the 
information described in paragraph (e)(1) of this section.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(15) of the Act; 29 U.S.C. 721(a)(15))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.30  Services to American Indians.

    The State plan must assure that the designated State agency provides 
vocational rehabilitation services to American Indians who are 
individuals with disabilities residing in the State to the same extent 
as the designated State agency provides vocational rehabilitation 
services to other significant populations of individuals with 
disabilities residing in the State.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(13) and 121(b)(3) of the Act; 29 U.S.C. 
721(a)(13) and 741(b)(3))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.31  Cooperative agreements with private nonprofit organizations.

    The State plan must describe the manner in which cooperative 
agreements with private nonprofit vocational rehabilitation service 
providers will be established.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(24)(B); 29 U.S.C. 721(a)(24)(B))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.32  Use of profitmaking organizations for on-the-job training
in connection with selected projects.

    The State plan must assure that the designated State agency has the 
authority to enter into contracts with for-profit organizations for the 
purpose of providing, as vocational rehabilitation services, on-the-job 
training and related programs for individuals with disabilities under 
the Projects With Industry program, 34 CFR part 379, if the designated 
State agency has determined that for-profit agencies are better 
qualified to provide needed vocational rehabilitation services than 
nonprofit agencies and organizations.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(24)(A) of the Act; 29 U.S.C. 721(a)(24)(A))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]

[[Page 324]]



Sec. 361.33  [Reserved]



Sec. 361.34  Supported employment State plan supplement.

    (a) The State plan must assure that the State has an acceptable plan 
under 34 CFR part 363 that provides for the use of funds under that part 
to supplement funds under this part for the cost of services leading to 
supported employment.
    (b) The supported employment plan, including any needed annual 
revisions, must be submitted as a supplement to the State plan submitted 
under this part.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(22) and 625(a) of the Act; 29 U.S.C. 
721(a)(22) and 795(k))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.35  Innovation and expansion activities.

    (a) The State plan must assure that the State will reserve and use a 
portion of the funds allotted to the State under section 110 of the 
Act--
    (1) For the development and implementation of innovative approaches 
to expand and improve the provision of vocational rehabilitation 
services to individuals with disabilities, particularly individuals with 
the most significant disabilities, consistent with the findings of the 
comprehensive, statewide assessment of the rehabilitation needs of 
individuals with disabilities under Sec. 361.29(a) and the State's 
goals and priorities under Sec. 361.29(c); and
    (2) To support the funding of--
    (i) The State Rehabilitation Council, if the State has a Council, 
consistent with the resource plan identified in Sec. 361.17(i); and
    (ii) The Statewide Independent Living Council, consistent with the 
plan prepared under 34 CFR 364.21(i).
    (b) The State plan must--
    (1) Describe how the reserved funds will be used; and
    (2) Include, on an annual basis, a report describing how the 
reserved funds were used during the preceding year.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(18) of the Act; 29 U.S.C. 721(a)(18))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.36  Ability to serve all eligible individuals; order of 
selection for services.

    (a) General provisions. (1) The designated State unit either must be 
able to provide the full range of services listed in section 103(a) of 
the Act and Sec. 361.48, as appropriate, to all eligible individuals 
or, in the event that vocational rehabilitation services cannot be 
provided to all eligible individuals in the State who apply for the 
services, include in the State plan the order to be followed in 
selecting eligible individuals to be provided vocational rehabilitation 
services.
    (2) The ability of the designated State unit to provide the full 
range of vocational rehabilitation services to all eligible individuals 
must be supported by a determination that satisfies the requirements of 
paragraph (b) or (c) of this section and a determination that, on the 
basis of the designated State unit's projected fiscal and personnel 
resources and its assessment of the rehabilitation needs of individuals 
with significant disabilities within the State, it can--
    (i) Continue to provide services to all individuals currently 
receiving services;
    (ii) Provide assessment services to all individuals expected to 
apply for services in the next fiscal year;
    (iii) Provide services to all individuals who are expected to be 
determined eligible in the next fiscal year; and
    (iv) Meet all program requirements.
    (3) If the designated State unit is unable to provide the full range 
vocational rehabilitation services to all eligible individuals in the 
State who apply for the services, the State plan must--
    (i) Show the order to be followed in selecting eligible individuals 
to be provided vocational rehabilitation services;

[[Page 325]]

    (ii) Provide a justification for the order of selection;
    (iii) Identify service and outcome goals and the time within which 
the goals may be achieved for individuals in each priority category 
within the order, as required under Sec. 361.29(c)(5); and
    (iv) Assure that--
    (A) In accordance with criteria established by the State for the 
order of selection, individuals with the most significant disabilities 
will be selected first for the provision of vocational rehabilitation 
services; and
    (B) Individuals who do not meet the order of selection criteria will 
have access to services provided through the information and referral 
system established under Sec. 361.37.
    (b) Basis for assurance that services can be provided to all 
eligible individuals. (1) For a designated State unit that determined, 
for the current fiscal year and the preceding fiscal year, that it is 
able to provide the full range of services, as appropriate, to all 
eligible individuals, the State unit, during the current fiscal and 
preceding fiscal year, must have in fact--
    (i) Provided assessment services to all applicants and the full 
range of services, as appropriate, to all eligible individuals;
    (ii) Made referral forms widely available throughout the State;
    (iii) Conducted outreach efforts to identify and serve individuals 
with disabilities who have been unserved or underserved by the 
vocational rehabilitation system; and
    (iv) Not delayed, through waiting lists or other means, 
determinations of eligibility, the development of individualized plans 
for employment for individuals determined eligible for vocational 
rehabilitation services, or the provision of services for eligible 
individuals for whom individualized plans for employment have been 
developed.
    (2) For a designated State unit that was unable to provide the full 
range of services to all eligible individuals during the current or 
preceding fiscal year or that has not met the requirements in paragraph 
(b)(1) of this section, the determination that the designated State unit 
is able to provide the full range of vocational rehabilitation services 
to all eligible individuals in the next fiscal year must be based on--
    (i) Circumstances that have changed that will allow the designated 
State unit to meet the requirements of paragraph (a)(2) of this section 
in the next fiscal year, including--
    (A) An estimate of the number of and projected costs of serving, in 
the next fiscal year, individuals with existing individualized plans for 
employment;
    (B) The projected number of individuals with disabilities who will 
apply for services and will be determined eligible in the next fiscal 
year and the projected costs of serving those individuals;
    (C) The projected costs of administering the program in the next 
fiscal year, including, but not limited to, costs of staff salaries and 
benefits, outreach activities, and required statewide studies; and
    (D) The projected revenues and projected number of qualified 
personnel for the program in the next fiscal year;
    (ii) Comparable data, as relevant, for the current or preceding 
fiscal year, or for both years, of the costs listed in paragraphs 
(b)(2)(i)(A) through (C) of this section and the resources identified in 
paragraph (b)(2)(i)(D) of this section and an explanation of any 
projected increases or decreases in these costs and resources; and
    (iii) A determination that the projected revenues and the projected 
number of qualified personnel for the program in the next fiscal year 
are adequate to cover the costs identified in paragraphs (b)(2)(i)(A) 
through (C) of this section to ensure the provision of the full range of 
services, as appropriate, to all eligible individuals.
    (c) Determining need for establishing and implementing an order of 
selection. (1) The designated State unit must determine, prior to the 
beginning of each fiscal year, whether to establish and implement an 
order of selection.
    (2) If the designated State unit determines that it does not need to 
establish an order of selection, it must reevaluate this determination 
whenever changed circumstances during the course of a fiscal year, such 
as a decrease in its fiscal or personnel resources or an increase in its 
program costs, indicate that it may no longer be

[[Page 326]]

able to provide the full range of services, as appropriate, to all 
eligible individuals, as described in paragraph (a)(2) of this section.
    (3) If a DSU establishes an order of selection, but determines that 
it does not need to implement that order at the beginning of the fiscal 
year, it must continue to meet the requirements of paragraph (a)(2) of 
this section, or it must implement the order of selection by closing one 
or more priority categories.
    (d) Establishing an order of selection--(1) Basis for order of 
selection. An order of selection must be based on a refinement of the 
three criteria in the definition of ``individual with a significant 
disability'' in section 7(21)(A) of the Act and Sec. 361.5(b)(31).
    (2) Factors that cannot be used in determining order of selection of 
eligible individuals. An order of selection may not be based on any 
other factors, including--
    (i) Any duration of residency requirement, provided the individual 
is present in the State;
    (ii) Type of disability;
    (iii) Age, gender, race, color, or national origin;
    (iv) Source of referral;
    (v) Type of expected employment outcome;
    (vi) The need for specific services or anticipated cost of services 
required by an individual; or
    (vii) The income level of an individual or an individual's family.
    (e) Administrative requirements. In administering the order of 
selection, the designated State unit must--
    (1) Implement the order of selection on a statewide basis;
    (2) Notify all eligible individuals of the priority categories in a 
State's order of selection, their assignment to a particular category, 
and their right to appeal their category assignment;
    (3) Continue to provide all needed services to any eligible 
individual who has begun to receive services under an individualized 
plan for employment prior to the effective date of the order of 
selection, irrespective of the severity of the individual's disability; 
and
    (4) Ensure that its funding arrangements for providing services 
under the State plan, including third-party arrangements and awards 
under the establishment authority, are consistent with the order of 
selection. If any funding arrangements are inconsistent with the order 
of selection, the designated State unit must renegotiate these funding 
arrangements so that they are consistent with the order of selection.
    (f) State Rehabilitation Council. The designated State unit must 
consult with the State Rehabilitation Council, if the State unit has a 
Council, regarding the--
    (1) Need to establish an order of selection, including any 
reevaluation of the need under paragraph (c)(2) of this section;
    (2) Priority categories of the particular order of selection;
    (3) Criteria for determining individuals with the most significant 
disabilities; and
    (4) Administration of the order of selection.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(d); 101(a)(5); 101(a)(12); 101(a)(15)(A), (B) 
and (C); 101(a)(21)(A)(ii); and 504(a) of the Act; 29 U.S.C. 709(d), 
721(a)(5), 721(a)(12), 721(a)(15)(A), (B) and (C); 721(a)(21)(A)(ii), 
and 794(a))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.37  Information and referral programs.

    (a) General provisions. The State plan must assure that--
    (1) The designated State agency will implement an information and 
referral system adequate to ensure that individuals with disabilities, 
including eligible individuals who do not meet the agency's order of 
selection criteria for receiving vocational rehabilitation services if 
the agency is operating on an order of selection, are provided accurate 
vocational rehabilitation information and guidance (which may include 
counseling and referral for job placement) using appropriate modes of 
communication to assist them in preparing for, securing, retaining, or 
regaining employment; and
    (2) The designated State agency will refer individuals with 
disabilities to other appropriate Federal and State programs, including 
other components

[[Page 327]]

of the statewide workforce investment system.
    (b) The State unit must refer to local extended employment providers 
an individual with a disability who makes an informed choice to pursue 
extended employment as the individual's employment goal. Before making 
the referral required by this paragraph, the State unit must--
    (1) Consistent with Sec. 361.42(a)(4)(i) of this part, explain to 
the individual that the purpose of the vocational rehabilitation program 
is to assist individuals to achieve an employment outcome as defined in 
Sec. 361.5(b)(16) (i.e., employment in an integrated setting);
    (2) Consistent with Sec. 361.52 of this part, provide the 
individual with information concerning the availability of employment 
options, and of vocational rehabilitation services, in integrated 
settings;
    (3) Inform the individual that services under the vocational 
rehabilitation program can be provided to eligible individuals in an 
extended employment setting if necessary for purposes of training or 
otherwise preparing for employment in an integrated setting;
    (4) Inform the individual that, if he or she initially chooses not 
to pursue employment in an integrated setting, he or she can seek 
services from the designated State unit at a later date if, at that 
time, he or she chooses to pursue employment in an integrated setting; 
and
    (5) Refer the individual, as appropriate, to the Social Security 
Administration in order to obtain information concerning the ability of 
individuals with disabilities to work while receiving benefits from the 
Social Security Administration.
    (c) Criteria for appropriate referrals. In making the referrals 
identified in paragraph (a)(2) of this section, the designated State 
unit must--
    (1) Refer the individual to Federal or State programs, including 
programs carried out by other components of the statewide workforce 
investment system, best suited to address the specific employment needs 
of an individual with a disability; and
    (2) Provide the individual who is being referred--
    (i) A notice of the referral by the designated State agency to the 
agency carrying out the program;
    (ii) Information identifying a specific point of contact within the 
agency to which the individual is being referred; and
    (iii) Information and advice regarding the most suitable services to 
assist the individual to prepare for, secure, retain, or regain 
employment.
    (d) Order of selection. In providing the information and referral 
services under this section to eligible individuals who are not in the 
priority category or categories to receive vocational rehabilitation 
services under the State's order of selection, the State unit must 
identify, as part of its reporting under section 101(a)(10) of the Act 
and Sec. 361.40, the number of eligible individuals who did not meet 
the agency's order of selection criteria for receiving vocational 
rehabilitation services and did receive information and referral 
services under this section.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 7(11), 12(c), 101(a)(5)(D), 101(a)(10)(C)(ii), and 
101(a)(20) of the Act; 29 U.S.C. 709(c), 721(a)(5)(D), 
721(a)(10)(C)(ii), and 721(a)(20))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.38  Protection, use, and release of personal information.

    (a) General provisions. (1) The State agency and the State unit must 
adopt and implement written policies and procedures to safeguard the 
confidentiality of all personal information, including photographs and 
lists of names. These policies and procedures must ensure that--
    (i) Specific safeguards are established to protect current and 
stored personal information;
    (ii) All applicants and eligible individuals and, as appropriate, 
those individuals' representatives, service providers, cooperating 
agencies, and interested persons are informed through appropriate modes 
of communication of the confidentiality of personal information and the 
conditions for accessing and releasing this information;
    (iii) All applicants or their representatives are informed about the 
State

[[Page 328]]

unit's need to collect personal information and the policies governing 
its use, including--
    (A) Identification of the authority under which information is 
collected;
    (B) Explanation of the principal purposes for which the State unit 
intends to use or release the information;
    (C) Explanation of whether providing requested information to the 
State unit is mandatory or voluntary and the effects of not providing 
requested information;
    (D) Identification of those situations in which the State unit 
requires or does not require informed written consent of the individual 
before information may be released; and
    (E) Identification of other agencies to which information is 
routinely released;
    (iv) An explanation of State policies and procedures affecting 
personal information will be provided to each individual in that 
individual's native language or through the appropriate mode of 
communication; and
    (v) These policies and procedures provide no fewer protections for 
individuals than State laws and regulations.
    (2) The State unit may establish reasonable fees to cover 
extraordinary costs of duplicating records or making extensive searches 
and must establish policies and procedures governing access to records.
    (b) State program use. All personal information in the possession of 
the State agency or the designated State unit must be used only for the 
purposes directly connected with the administration of the vocational 
rehabilitation program. Information containing identifiable personal 
information may not be shared with advisory or other bodies that do not 
have official responsibility for administration of the program. In the 
administration of the program, the State unit may obtain personal 
information from service providers and cooperating agencies under 
assurances that the information may not be further divulged, except as 
provided under paragraphs (c), (d), and (e) of this section.
    (c) Release to applicants and eligible individuals. (1) Except as 
provided in paragraphs (c)(2) and (c)(3) of this section, if requested 
in writing by an applicant or eligible individual, the State unit must 
make all requested information in that individual's record of services 
accessible to and must release the information to the individual or the 
individual's representative in a timely manner.
    (2) Medical, psychological, or other information that the State unit 
determines may be harmful to the individual may not be released directly 
to the individual, but must be provided to the individual through a 
third party chosen by the individual, which may include, among others, 
an advocate, a family member, or a qualified medical or mental health 
professional, unless a representative has been appointed by a court to 
represent the individual, in which case the information must be released 
to the court-appointed representative.
    (3) If personal information has been obtained from another agency or 
organization, it may be released only by, or under the conditions 
established by, the other agency or organization.
    (4) An applicant or eligible individual who believes that 
information in the individual's record of services is inaccurate or 
misleading may request that the designated State unit amend the 
information. If the information is not amended, the request for an 
amendment must be documented in the record of services, consistent with 
Sec. 361.47(a)(12).
    (d) Release for audit, evaluation, and research. Personal 
information may be released to an organization, agency, or individual 
engaged in audit, evaluation, or research only for purposes directly 
connected with the administration of the vocational rehabilitation 
program or for purposes that would significantly improve the quality of 
life for applicants and eligible individuals and only if the 
organization, agency, or individual assures that--
    (1) The information will be used only for the purposes for which it 
is being provided;
    (2) The information will be released only to persons officially 
connected with the audit, evaluation, or research;
    (3) The information will not be released to the involved individual;

[[Page 329]]

    (4) The information will be managed in a manner to safeguard 
confidentiality; and
    (5) The final product will not reveal any personal identifying 
information without the informed written consent of the involved 
individual or the individual's representative.
    (e) Release to other programs or authorities. (1) Upon receiving the 
informed written consent of the individual or, if appropriate, the 
individual's representative, the State unit may release personal 
information to another agency or organization for its program purposes 
only to the extent that the information may be released to the involved 
individual or the individual's representative and only to the extent 
that the other agency or organization demonstrates that the information 
requested is necessary for its program.
    (2) Medical or psychological information that the State unit 
determines may be harmful to the individual may be released if the other 
agency or organization assures the State unit that the information will 
be used only for the purpose for which it is being provided and will not 
be further released to the individual.
    (3) The State unit must release personal information if required by 
Federal law or regulations.
    (4) The State unit must release personal information in response to 
investigations in connection with law enforcement, fraud, or abuse, 
unless expressly prohibited by Federal or State laws or regulations, and 
in response to an order issued by a judge, magistrate, or other 
authorized judicial officer.
    (5) The State unit also may release personal information in order to 
protect the individual or others if the individual poses a threat to his 
or her safety or to the safety of others.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c) and 101(a)(6)(A) of the Act; 29 U.S.C. 709(c) 
and 721(a)(6)(A))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.39  State-imposed requirements.

    The designated State unit must, upon request, identify those 
regulations and policies relating to the administration or operation of 
its vocational rehabilitation program that are State-imposed, including 
any regulations or policy based on State interpretation of any Federal 
law, regulations, or guideline.

(Authority: Section 17 of the Act; 29 U.S.C. 714)



Sec. 361.40  Reports.

    (a) The State plan must assure that the designated State agency will 
submit reports, including reports required under sections 13, 14, and 
101(a)(10) of the Act--
    (1) In the form and level of detail and at the time required by the 
Secretary regarding applicants for and eligible individuals receiving 
services under this part; and
    (2) In a manner that provides a complete count (other than the 
information obtained through sampling consistent with section 
101(a)(10)(E) of the Act) of the applicants and eligible individuals 
to--
    (i) Permit the greatest possible cross-classification of data; and
    (ii) Protect the confidentiality of the identity of each individual.
    (b) The designated State agency must comply with any requirements 
necessary to ensure the accuracy and verification of those reports.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 101(a)(10)(A) and (F) of the Act; 29 U.S.C. 
721(a)(10)(A) and (F))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]

                     Provision and Scope of Services



Sec. 361.41  Processing referrals and applications.

    (a) Referrals. The designated State unit must establish and 
implement standards for the prompt and equitable handling of referrals 
of individuals for vocational rehabilitation services, including 
referrals of individuals made through the One-Stop service delivery 
systems established under section 121 of the Workforce Investment Act of 
1998. The standards must include timelines for making good faith efforts

[[Page 330]]

to inform these individuals of application requirements and to gather 
information necessary to initiate an assessment for determining 
eligibility and priority for services.
    (b) Applications. (1) Once an individual has submitted an 
application for vocational rehabilitation services, including 
applications made through common intake procedures in One-Stop centers 
established under section 121 of the Workforce Investment Act of 1998, 
an eligibility determination must be made within 60 days, unless--
    (i) Exceptional and unforeseen circumstances beyond the control of 
the designated State unit preclude making an eligibility determination 
within 60 days and the designated State unit and the individual agree to 
a specific extension of time; or
    (ii) An exploration of the individual's abilities, capabilities, and 
capacity to perform in work situations is carried out in accordance with 
Sec. 361.42(e) or, if appropriate, an extended evaluation is carried 
out in accordance with Sec. 361.42(f).
    (2) An individual is considered to have submitted an application 
when the individual or the individual's representative, as appropriate--
    (i)(A) Has completed and signed an agency application form;
    (B) Has completed a common intake application form in a One-Stop 
center requesting vocational rehabilitation services; or
    (C) Has otherwise requested services from the designated State unit;
    (ii) Has provided to the designated State unit information necessary 
to initiate an assessment to determine eligibility and priority for 
services; and
    (iii) Is available to complete the assessment process.
    (3) The designated State unit must ensure that its application forms 
are widely available throughout the State, particularly in the One-Stop 
centers established under section 121 of the Workforce Investment Act of 
1998.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(6)(A) and 102(a)(6) of the Act; 29 U.S.C. 
721(a)(6)(A) and 722(a)(6))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.42  Assessment for determining eligibility and priority for 
services.

    In order to determine whether an individual is eligible for 
vocational rehabilitation services and the individual's priority under 
an order of selection for services (if the State is operating under an 
order of selection), the designated State unit must conduct an 
assessment for determining eligibility and priority for services. The 
assessment must be conducted in the most integrated setting possible, 
consistent with the individual's needs and informed choice, and in 
accordance with the following provisions:
    (a) Eligibility requirements--(1) Basic requirements. The designated 
State unit's determination of an applicant's eligibility for vocational 
rehabilitation services must be based only on the following 
requirements:
    (i) A determination by qualified personnel that the applicant has a 
physical or mental impairment.
    (ii) A determination by qualified personnel that the applicant's 
physical or mental impairment constitutes or results in a substantial 
impediment to employment for the applicant.
    (iii) A determination by a qualified vocational rehabilitation 
counselor employed by the designated State unit that the applicant 
requires vocational rehabilitation services to prepare for, secure, 
retain, or regain employment consistent with the applicant's unique 
strengths, resources, priorities, concerns, abilities, capabilities, 
interests, and informed choice.
    (iv) A presumption, in accordance with paragraph (a)(2) of this 
section, that the applicant can benefit in terms of an employment 
outcome from the provision of vocational rehabilitation services.
    (2) Presumption of benefit. The designated State unit must presume 
that an applicant who meets the eligibility requirements in paragraphs 
(a)(1)(i) and (ii) of this section can benefit in terms of an employment 
outcome unless it demonstrates, based on clear and convincing evidence, 
that the applicant is incapable of benefiting in terms of an employment 
outcome from vocational rehabilitation services due to the severity of 
the applicant's disability.

[[Page 331]]

    (3) Presumption of eligibility for Social Security recipients and 
beneficiaries. (i) Any applicant who has been determined eligible for 
Social Security benefits under Title II or Title XVI of the Social 
Security Act is--
    (A) Presumed eligible for vocational rehabilitation services under 
paragraphs (a)(1) and (2) of this section; and
    (B) Considered an individual with a significant disability as 
defined in Sec. 361.5(b)(31).
    (ii) If an applicant for vocational rehabilitation services asserts 
that he or she is eligible for Social Security benefits under Title II 
or Title XVI of the Social Security Act (and, therefore, is presumed 
eligible for vocational rehabilitation services under paragraph 
(a)(3)(i)(A) of this section), but is unable to provide appropriate 
evidence, such as an award letter, to support that assertion, the State 
unit must verify the applicant's eligibility under Title II or Title XVI 
of the Social Security Act by contacting the Social Security 
Administration. This verification must be made within a reasonable 
period of time that enables the State unit to determine the applicant's 
eligibility for vocational rehabilitation services within 60 days of the 
individual submitting an application for services in accordance with 
Sec. 361.41(b)(2).
    (4) Achievement of an employment outcome. Any eligible individual, 
including an individual whose eligibility for vocational rehabilitation 
services is based on the individual being eligible for Social Security 
benefits under Title II or Title XVI of the Social Security Act, must 
intend to achieve an employment outcome that is consistent with the 
applicant's unique strengths, resources, priorities, concerns, 
abilities, capabilities, interests, and informed choice.
    (i) The State unit is responsible for informing individuals, through 
its application process for vocational rehabilitation services, that 
individuals who receive services under the program must intend to 
achieve an employment outcome.
    (ii) The applicant's completion of the application process for 
vocational rehabilitation services is sufficient evidence of the 
individual's intent to achieve an employment outcome, and no additional 
demonstration on the part of the applicant is required for purposes of 
satisfying paragraph (a)(4) of this section.
    (5) Interpretation. Nothing in this section, including paragraph 
(a)(3)(i), is to be construed to create an entitlement to any vocational 
rehabilitation service.
    (b) Interim determination of eligibility. (1) The designated State 
unit may initiate the provision of vocational rehabilitation services 
for an applicant on the basis of an interim determination of eligibility 
prior to the 60-day period described in Sec. 361.41(b)(2).
    (2) If a State chooses to make interim determinations of 
eligibility, the designated State unit must--
    (i) Establish criteria and conditions for making those 
determinations;
    (ii) Develop and implement procedures for making the determinations; 
and
    (iii) Determine the scope of services that may be provided pending 
the final determination of eligibility.
    (3) If a State elects to use an interim eligibility determination, 
the designated State unit must make a final determination of eligibility 
within 60 days of the individual submitting an application for services 
in accordance with Sec. 361.41(b)(2).
    (c) Prohibited factors. (1) The State plan must assure that the 
State unit will not impose, as part of determining eligibility under 
this section, a duration of residence requirement that excludes from 
services any applicant who is present in the State.
    (2) In making a determination of eligibility under this section, the 
designated State unit also must ensure that--
    (i) No applicant or group of applicants is excluded or found 
ineligible solely on the basis of the type of disability; and
    (ii) The eligibility requirements are applied without regard to 
the--
    (A) Age, gender, race, color, or national origin of the applicant;
    (B) Type of expected employment outcome;
    (C) Source of referral for vocational rehabilitation services; and

[[Page 332]]

    (D) Particular service needs or anticipated cost of services 
required by an applicant or the income level of an applicant or 
applicant's family.
    (d) Review and assessment of data for eligibility determination. 
Except as provided in paragraph (e) of this section, the designated 
State unit--
    (1) Must base its determination of each of the basic eligibility 
requirements in paragraph (a) of this section on--
    (i) A review and assessment of existing data, including counselor 
observations, education records, information provided by the individual 
or the individual's family, particularly information used by education 
officials, and determinations made by officials of other agencies; and
    (ii) To the extent existing data do not describe the current 
functioning of the individual or are unavailable, insufficient, or 
inappropriate to make an eligibility determination, an assessment of 
additional data resulting from the provision of vocational 
rehabilitation services, including trial work experiences, assistive 
technology devices and services, personal assistance services, and any 
other support services that are necessary to determine whether an 
individual is eligible; and
    (2) Must base its presumption under paragraph (a)(3)(i) of this 
section that an applicant who has been determined eligible for Social 
Security benefits under Title II or Title XVI of the Social Security Act 
satisfies each of the basic eligibility requirements in paragraph (a) of 
this section on determinations made by the Social Security 
Administration.
    (e) Trial work experiences for individuals with significant 
disabilities. (1) Prior to any determination that an individual with a 
disability is incapable of benefiting from vocational rehabilitation 
services in terms of an employment outcome because of the severity of 
that individual's disability, the designated State unit must conduct an 
exploration of the individual's abilities, capabilities, and capacity to 
perform in realistic work situations to determine whether or not there 
is clear and convincing evidence to support such a determination.
    (2)(i) The designated State unit must develop a written plan to 
assess periodically the individual's abilities, capabilities, and 
capacity to perform in work situations through the use of trial work 
experiences, which must be provided in the most integrated setting 
possible, consistent with the informed choice and rehabilitation needs 
of the individual.
    (ii) Trial work experiences include supported employment, on-the-job 
training, and other experiences using realistic work settings.
    (iii) Trial work experiences must be of sufficient variety and over 
a sufficient period of time for the designated State unit to determine 
that--
    (A) There is sufficient evidence to conclude that the individual can 
benefit from the provision of vocational rehabilitation services in 
terms of an employment outcome; or
    (B) There is clear and convincing evidence that the individual is 
incapable of benefiting from vocational rehabilitation services in terms 
of an employment outcome due to the severity of the individual's 
disability.
    (iv) The designated State unit must provide appropriate supports, 
including assistive technology devices and services and personal 
assistance services, to accommodate the rehabilitation needs of the 
individual during the trial work experiences.
    (f) Extended evaluation for certain individuals with significant 
disabilities. (1) Under limited circumstances if an individual cannot 
take advantage of trial work experiences or if options for trial work 
experiences have been exhausted before the State unit is able to make 
the determinations described in paragraph (e)(2)(iii) of this section, 
the designated State unit must conduct an extended evaluation to make 
these determinations.
    (2) During the extended evaluation period, vocational rehabilitation 
services must be provided in the most integrated setting possible, 
consistent with the informed choice and rehabilitation needs of the 
individual.
    (3) During the extended evaluation period, the designated State unit 
must develop a written plan for providing

[[Page 333]]

services necessary to make a determination under paragraph (e)(2)(iii) 
of this section.
    (4) During the extended evaluation period, the designated State unit 
provides only those services that are necessary to make the 
determinations described in paragraph (e)(2)(iii) of this section and 
terminates extended evaluation services when the State unit is able to 
make the determinations.
    (g) Data for determination of priority for services under an order 
of selection. If the designated State unit is operating under an order 
of selection for services, as provided in Sec. 361.36, the State unit 
must base its priority assignments on--
    (1) A review of the data that was developed under paragraphs (d) and 
(e) of this section to make the eligibility determination; and
    (2) An assessment of additional data, to the extent necessary.


(Authority: Sections 7(2)(A), 7(2)(B)(ii)(I), 7(2)(C), 7(2)(D), 
101(a)(12), 102(a)(1), 102(a)(2), 102(a)(3), 102(a)(4)(A), 102(a)(4)(B), 
102(a)(4)(C), 103(a)(1), 103(a)(9), 103(a)(10) and 103(a)(14) of the 
Act; 29 U.S.C. 705(2)(A), 705(2)(B)(ii)(I), 705(2)(C), 705(2)(D), 
721(a)(12), 722(a)(1), 722(a)(2), 722(a)(3), 722(a)(4)(A), 722(a)(4)(B), 
722(a)(4)(C), 723(a)(1), 723(a)(9), 723(a)(10) and 723(a)(14))

    Note to Sec. 361.42: Clear and convincing evidence means that the 
designated State unit shall have a high degree of certainty before it 
can conclude that an individual is incapable of benefiting from services 
in terms of an employment outcome. The ``clear and convincing'' standard 
constitutes the highest standard used in our civil system of law and is 
to be individually applied on a case-by-case basis. The term clear means 
unequivocal. For example, the use of an intelligence test result alone 
would not constitute clear and convincing evidence. Clear and convincing 
evidence might include a description of assessments, including 
situational assessments and supported employment assessments, from 
service providers who have concluded that they would be unable to meet 
the individual's needs due to the severity of the individual's 
disability. The demonstration of ``clear and convincing evidence'' must 
include, if appropriate, a functional assessment of skill development 
activities, with any necessary supports (including assistive 
technology), in real life settings. (S. Rep. No. 357, 102d Cong., 2d. 
Sess. 37-38 (1992))



Sec. 361.43  Procedures for ineligibility determination.

    If the State unit determines that an applicant is ineligible for 
vocational rehabilitation services or determines that an individual 
receiving services under an individualized plan for employment is no 
longer eligible for services, the State unit must--
    (a) Make the determination only after providing an opportunity for 
full consultation with the individual or, as appropriate, with the 
individual's representative;
    (b) Inform the individual in writing, supplemented as necessary by 
other appropriate modes of communication consistent with the informed 
choice of the individual, of the ineligibility determination, including 
the reasons for that determination, the requirements under this section, 
and the means by which the individual may express and seek remedy for 
any dissatisfaction, including the procedures for review of State unit 
personnel determinations in accordance with Sec. 361.57;
    (c) Provide the individual with a description of services available 
from a client assistance program established under 34 CFR part 370 and 
information on how to contact that program;
    (d) Refer the individual--
    (1) To other programs that are part of the One-Stop service delivery 
system under the Workforce Investment Act that can address the 
individual's training or employment-related needs; or
    (2) To local extended employment providers if the ineligibility 
determination is based on a finding that the individual is incapable of 
achieving an employment outcome as defined in Sec. 361.5(b)(16).
    (e) Review within 12 months and annually thereafter if requested by 
the individual or, if appropriate, by the individual's representative 
any ineligibility determination that is based on a finding that the 
individual is incapable of achieving an employment outcome. This review 
need not be conducted in situations in which the individual has refused 
it, the individual is no longer present in the State, the individual's

[[Page 334]]

whereabouts are unknown, or the individual's medical condition is 
rapidly progressive or terminal.

(Authority: Sections 12(c), 102(a)(5), and 102(c) of the Act; 29 U.S.C. 
709(c), 722(a)(5), and 722(c))

[66 FR 4382, Jan. 11, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.44  Closure without eligibility determination.

    The designated State unit may not close an applicant's record of 
services prior to making an eligibility determination unless the 
applicant declines to participate in, or is unavailable to complete, an 
assessment for determining eligibility and priority for services, and 
the State unit has made a reasonable number of attempts to contact the 
applicant or, if appropriate, the applicant's representative to 
encourage the applicant's participation.

(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))



Sec. 361.45  Development of the individualized plan for employment.

    (a) General requirements. The State plan must assure that--
    (1) An individualized plan for employment (IPE) meeting the 
requirements of this section and Sec. 361.46 is developed and 
implemented in a timely manner for each individual determined to be 
eligible for vocational rehabilitation services or, if the designated 
State unit is operating under an order of selection in accordance with 
Sec. 361.36, for each eligible individual to whom the State unit is 
able to provide services; and
    (2) Services will be provided in accordance with the provisions of 
the IPE.
    (b) Purpose. (1) The designated State unit must conduct an 
assessment for determining vocational rehabilitation needs, if 
appropriate, for each eligible individual or, if the State is operating 
under an order of selection, for each eligible individual to whom the 
State is able to provide services. The purpose of this assessment is to 
determine the employment outcome, and the nature and scope of vocational 
rehabilitation services to be included in the IPE.
    (2) The IPE must be designed to achieve a specific employment 
outcome, as defined in Sec. 361.5(b)(16), that is selected by the 
individual consistent with the individual's unique strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and informed 
choice.
    (c) Required information. The State unit must provide the following 
information to each eligible individual or, as appropriate, the 
individual's representative, in writing and, if appropriate, in the 
native language or mode of communication of the individual or the 
individual's representative:
    (1) Options for developing an IPE. Information on the available 
options for developing the IPE, including the option that an eligible 
individual or, as appropriate, the individual's representative may 
develop all or part of the IPE--
    (i) Without assistance from the State unit or other entity; or
    (ii) With assistance from--
    (A) A qualified vocational rehabilitation counselor employed by the 
State unit;
    (B) A qualified vocational rehabilitation counselor who is not 
employed by the State unit; or
    (C) Resources other than those in paragraph (A) or (B) of this 
section.
    (2) Additional information. Additional information to assist the 
eligible individual or, as appropriate, the individual's representative 
in developing the IPE, including--
    (i) Information describing the full range of components that must be 
included in an IPE;
    (ii) As appropriate to each eligible individual--
    (A) An explanation of agency guidelines and criteria for determining 
an eligible individual's financial commitments under an IPE;
    (B) Information on the availability of assistance in completing 
State unit forms required as part of the IPE; and
    (C) Additional information that the eligible individual requests or 
the State unit determines to be necessary to the development of the IPE;
    (iii) A description of the rights and remedies available to the 
individual, including, if appropriate, recourse to the processes 
described in Sec. 361.57; and

[[Page 335]]

    (iv) A description of the availability of a client assistance 
program established under 34 CFR part 370 and information on how to 
contact the client assistance program.
    (d) Mandatory procedures. The designated State unit must ensure 
that--
    (1) The IPE is a written document prepared on forms provided by the 
State unit;
    (2) The IPE is developed and implemented in a manner that gives 
eligible individuals the opportunity to exercise informed choice, 
consistent with Sec. 361.52, in selecting--
    (i) The employment outcome, including the employment setting;
    (ii) The specific vocational rehabilitation services needed to 
achieve the employment outcome, including the settings in which services 
will be provided;
    (iii) The entity or entities that will provide the vocational 
rehabilitation services; and
    (iv) The methods available for procuring the services;
    (3) The IPE is--
    (i) Agreed to and signed by the eligible individual or, as 
appropriate, the individual's representative; and
    (ii) Approved and signed by a qualified vocational rehabilitation 
counselor employed by the designated State unit;
    (4) A copy of the IPE and a copy of any amendments to the IPE are 
provided to the eligible individual or, as appropriate, to the 
individual's representative, in writing and, if appropriate, in the 
native language or mode of communication of the individual or, as 
appropriate, the individual's representative;
    (5) The IPE is reviewed at least annually by a qualified vocational 
rehabilitation counselor and the eligible individual or, as appropriate, 
the individual's representative to assess the eligible individual's 
progress in achieving the identified employment outcome;
    (6) The IPE is amended, as necessary, by the individual or, as 
appropriate, the individual's representative, in collaboration with a 
representative of the State unit or a qualified vocational 
rehabilitation counselor (to the extent determined to be appropriate by 
the individual), if there are substantive changes in the employment 
outcome, the vocational rehabilitation services to be provided, or the 
providers of the vocational rehabilitation services;
    (7) Amendments to the IPE do not take effect until agreed to and 
signed by the eligible individual or, as appropriate, the individual's 
representative and by a qualified vocational rehabilitation counselor 
employed by the designated State unit; and
    (8) An IPE for a student with a disability receiving special 
education services is developed--
    (i) In consideration of the student's IEP; and
    (ii) In accordance with the plans, policies, procedures, and terms 
of the interagency agreement required under Sec. 361.22.
    (e) Standards for developing the IPE. The designated State unit must 
establish and implement standards for the prompt development of IPEs for 
the individuals identified under paragraph (a) of this section, 
including timelines that take into consideration the needs of the 
individuals.
    (f) Data for preparing the IPE--(1) Preparation without 
comprehensive assessment. To the extent possible, the employment outcome 
and the nature and scope of rehabilitation services to be included in 
the individual's IPE must be determined based on the data used for the 
assessment of eligibility and priority for services under Sec. 361.42.
    (2) Preparation based on comprehensive assessment.
    (i) If additional data are necessary to determine the employment 
outcome and the nature and scope of services to be included in the IPE 
of an eligible individual, the State unit must conduct a comprehensive 
assessment of the unique strengths, resources, priorities, concerns, 
abilities, capabilities, interests, and informed choice, including the 
need for supported employment services, of the eligible individual, in 
the most integrated setting possible, consistent with the informed 
choice of the individual in accordance with the provisions of Sec. 
361.5(b)(6)(ii).
    (ii) In preparing the comprehensive assessment, the State unit must 
use, to

[[Page 336]]

the maximum extent possible and appropriate and in accordance with 
confidentiality requirements, existing information that is current as of 
the date of the development of the IPE, including--
    (A) Information available from other programs and providers, 
particularly information used by education officials and the Social 
Security Administration;
    (B) Information provided by the individual and the individual's 
family; and
    (C) Information obtained under the assessment for determining the 
individual's eligibility and vocational rehabilitation needs.

(Authority: Sections 7(2)(B), 101(a)(9), 102(b)(1), 102(b)(2), 102(c) 
and 103(a)(1); 29 U.S.C. 705(2)(B), 721(a)(9), 722(b)(1), 722(b)(2), 
722(c) and 723(a)(1))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.46  Content of the individualized plan for employment.

    (a) Mandatory components. Regardless of the approach in Sec. 
361.45(c)(1) that an eligible individual selects for purposes of 
developing the IPE, each IPE must include--
    (1) A description of the specific employment outcome, as defined in 
Sec. 361.5(b)(16), that is chosen by the eligible individual and is 
consistent with the individual's unique strengths, resources, 
priorities, concerns, abilities, capabilities, career interests, and 
informed choice.
    (2) A description of the specific rehabilitation services under 
Sec. 361.48 that are--
    (i) Needed to achieve the employment outcome, including, as 
appropriate, the provision of assistive technology devices, assistive 
technology services, and personal assistance services, including 
training in the management of those services; and
    (ii) Provided in the most integrated setting that is appropriate for 
the services involved and is consistent with the informed choice of the 
eligible individual;
    (3) Timelines for the achievement of the employment outcome and for 
the initiation of services;
    (4) A description of the entity or entities chosen by the eligible 
individual or, as appropriate, the individual's representative that will 
provide the vocational rehabilitation services and the methods used to 
procure those services;
    (5) A description of the criteria that will be used to evaluate 
progress toward achievement of the employment outcome; and
    (6) The terms and conditions of the IPE, including, as appropriate, 
information describing--
    (i) The responsibilities of the designated State unit;
    (ii) The responsibilities of the eligible individual, including--
    (A) The responsibilities the individual will assume in relation to 
achieving the employment outcome;
    (B) If applicable, the extent of the individual's participation in 
paying for the cost of services; and
    (C) The responsibility of the individual with regard to applying for 
and securing comparable services and benefits as described in Sec. 
361.53; and
    (iii) The responsibilities of other entities as the result of 
arrangements made pursuant to the comparable services or benefits 
requirements in Sec. 361.53.
    (b) Supported employment requirements. An IPE for an individual with 
a most significant disability for whom an employment outcome in a 
supported employment setting has been determined to be appropriate 
must--
    (1) Specify the supported employment services to be provided by the 
designated State unit;
    (2) Specify the expected extended services needed, which may include 
natural supports;
    (3) Identify the source of extended services or, to the extent that 
it is not possible to identify the source of extended services at the 
time the IPE is developed, include a description of the basis for 
concluding that there is a reasonable expectation that those sources 
will become available;
    (4) Provide for periodic monitoring to ensure that the individual is 
making satisfactory progress toward meeting the weekly work requirement 
established in the IPE by the time of transition to extended services;
    (5) Provide for the coordination of services provided under an IPE 
with

[[Page 337]]

services provided under other individualized plans established under 
other Federal or State programs;
    (6) To the extent that job skills training is provided, identify 
that the training will be provided on site; and
    (7) Include placement in an integrated setting for the maximum 
number of hours possible based on the unique strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and informed 
choice of individuals with the most significant disabilities.
    (c) Post-employment services. The IPE for each individual must 
contain, as determined to be necessary, statements concerning--
    (1) The expected need for post-employment services prior to closing 
the record of services of an individual who has achieved an employment 
outcome;
    (2) A description of the terms and conditions for the provision of 
any post-employment services; and
    (3) If appropriate, a statement of how post-employment services will 
be provided or arranged through other entities as the result of 
arrangements made pursuant to the comparable services or benefits 
requirements in Sec. 361.53.
    (d) Coordination of services for students with disabilities who are 
receiving special education services. The IPE for a student with a 
disability who is receiving special education services must be 
coordinated with the IEP for that individual in terms of the goals, 
objectives, and services identified in the IEP.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(8), 101(a)(9), 102(b)(3), and 625(b)(6) of 
the Act; 29 U.S.C. 721(a)(8), 721(a)(9), 722(b)(3), and 795(k))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.47  Record of services.

    (a) The designated State unit must maintain for each applicant and 
eligible individual a record of services that includes, to the extent 
pertinent, the following documentation:
    (1) If an applicant has been determined to be an eligible 
individual, documentation supporting that determination in accordance 
with the requirements under Sec. 361.42.
    (2) If an applicant or eligible individual receiving services under 
an IPE has been determined to be ineligible, documentation supporting 
that determination in accordance with the requirements under Sec. 
361.43.
    (3) Documentation that describes the justification for closing an 
applicant's or eligible individual's record of services if that closure 
is based on reasons other than ineligibility, including, as appropriate, 
documentation indicating that the State unit has satisfied the 
requirements in Sec. 361.44.
    (4) If an individual has been determined to be an individual with a 
significant disability or an individual with a most significant 
disability, documentation supporting that determination.
    (5) If an individual with a significant disability requires an 
exploration of abilities, capabilities, and capacity to perform in 
realistic work situations through the use of trial work experiences or, 
as appropriate, an extended evaluation to determine whether the 
individual is an eligible individual, documentation supporting the need 
for, and the plan relating to, that exploration or, as appropriate, 
extended evaluation and documentation regarding the periodic assessments 
carried out during the trial work experiences or, as appropriate, the 
extended evaluation, in accordance with the requirements under Sec. 
361.42(e) and (f).
    (6) The IPE, and any amendments to the IPE, consistent with the 
requirements under Sec. 361.46.
    (7) Documentation describing the extent to which the applicant or 
eligible individual exercised informed choice regarding the provision of 
assessment services and the extent to which the eligible individual 
exercised informed choice in the development of the IPE with respect to 
the selection of the specific employment outcome, the specific 
vocational rehabilitation services needed to achieve the employment 
outcome, the entity to provide the services, the employment setting, the 
settings in which the services will be provided, and the methods to 
procure the services.
    (8) In the event that an individual's IPE provides for vocational 
rehabilitation services in a non-integrated setting, a justification to 
support the need for the non-integrated setting.

[[Page 338]]

    (9) In the event that an individual obtains competitive employment, 
verification that the individual is compensated at or above the minimum 
wage and that the individual's wage and level of benefits are not less 
than that customarily paid by the employer for the same or similar work 
performed by non-disabled individuals in accordance with Sec. 
361.5(b)(11)(ii).
    (10) In the event an individual achieves an employment outcome in 
which the individual is compensated in accordance with section 14(c) of 
the Fair Labor Standards Act or the designated State unit closes the 
record of services of an individual in extended employment on the basis 
that the individual is unable to achieve an employment outcome 
consistent with Sec. 361.5(b)(16) or that an eligible individual 
through informed choice chooses to remain in extended employment, 
documentation of the results of the annual reviews required under Sec. 
361.55, of the individual's input into those reviews, and of the 
individual's or, if appropriate, the individual's representative's 
acknowledgment that those reviews were conducted.
    (11) Documentation concerning any action or decision resulting from 
a request by an individual under Sec. 361.57 for a review of 
determinations made by designated State unit personnel.
    (12) In the event that an applicant or eligible individual requests 
under Sec. 361.38(c)(4) that documentation in the record of services be 
amended and the documentation is not amended, documentation of the 
request.
    (13) In the event an individual is referred to another program 
through the State unit's information and referral system under Sec. 
361.37, including other components of the statewide workforce investment 
system, documentation on the nature and scope of services provided by 
the designated State unit to the individual and on the referral itself, 
consistent with the requirements of Sec. 361.37.
    (14) In the event an individual's record of service is closed under 
Sec. 361.56, documentation that demonstrates the services provided 
under the individual's IPE contributed to the achievement of the 
employment outcome.
    (15) In the event an individual's record of service is closed under 
Sec. 361.56, documentation verifying that the provisions of Sec. 
361.56 have been satisfied.
    (b) The State unit, in consultation with the State Rehabilitation 
Council if the State has a Council, must determine the type of 
documentation that the State unit must maintain for each applicant and 
eligible individual in order to meet the requirements in paragraph (a) 
of this section.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(6), (9), (14), (20) and 102(a), (b), and (d) 
of the Act; 29 U.S.C. 721(a)(6), (9), (14), (20) and 722(a), (b), and 
(d))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.48  Scope of vocational rehabilitation services for individuals
with disabilities.

    As appropriate to the vocational rehabilitation needs of each 
individual and consistent with each individual's informed choice, the 
designated State unit must ensure that the following vocational 
rehabilitation services are available to assist the individual with a 
disability in preparing for, securing, retaining, or regaining an 
employment outcome that is consistent with the individual's strengths, 
resources, priorities, concerns, abilities, capabilities, interests, and 
informed choice:
    (a) Assessment for determining eligibility and priority for services 
by qualified personnel, including, if appropriate, an assessment by 
personnel skilled in rehabilitation technology, in accordance with Sec. 
361.42.
    (b) Assessment for determining vocational rehabilitation needs by 
qualified personnel, including, if appropriate, an assessment by 
personnel skilled in rehabilitation technology, in accordance with Sec. 
361.45.
    (c) Vocational rehabilitation counseling and guidance, including 
information and support services to assist an individual in exercising 
informed choice in accordance with Sec. 361.52.
    (d) Referral and other services necessary to assist applicants and 
eligible individuals to secure needed services from other agencies, 
including other components of the statewide workforce investment system, 
in accordance with

[[Page 339]]

Sec. Sec. 361.23, 361.24, and 361.37, and to advise those individuals 
about client assistance programs established under 34 CFR part 370.
    (e) In accordance with the definition in Sec. 361.5(b)(40), 
physical and mental restoration services, to the extent that financial 
support is not readily available from a source other than the designated 
State unit (such as through health insurance or a comparable service or 
benefit as defined in Sec. 361.5(b)(10)).
    (f) Vocational and other training services, including personal and 
vocational adjustment training, books, tools, and other training 
materials, except that no training or training services in an 
institution of higher education (universities, colleges, community or 
junior colleges, vocational schools, technical institutes, or hospital 
schools of nursing) may be paid for with funds under this part unless 
maximum efforts have been made by the State unit and the individual to 
secure grant assistance in whole or in part from other sources to pay 
for that training.
    (g) Maintenance, in accordance with the definition of that term in 
Sec. 361.5(b)(35).
    (h) Transportation in connection with the rendering of any 
vocational rehabilitation service and in accordance with the definition 
of that term in Sec. 361.5(b)(57).
    (i) Vocational rehabilitation services to family members, as defined 
in Sec. 361.5(b)(23), of an applicant or eligible individual if 
necessary to enable the applicant or eligible individual to achieve an 
employment outcome.
    (j) Interpreter services, including sign language and oral 
interpreter services, for individuals who are deaf or hard of hearing 
and tactile interpreting services for individuals who are deaf-blind 
provided by qualified personnel.
    (k) Reader services, rehabilitation teaching services, and 
orientation and mobility services for individuals who are blind.
    (l) Job-related services, including job search and placement 
assistance, job retention services, follow-up services, and follow-along 
services.
    (m) Supported employment services in accordance with the definition 
of that term in Sec. 361.5(b)(54).
    (n) Personal assistance services in accordance with the definition 
of that term in Sec. 361.5(b)(39).
    (o) Post-employment services in accordance with the definition of 
that term in Sec. 361.5(b)(42).
    (p) Occupational licenses, tools, equipment, initial stocks, and 
supplies.
    (q) Rehabilitation technology in accordance with the definition of 
that term in Sec. 361.5(b)(45), including vehicular modification, 
telecommunications, sensory, and other technological aids and devices.
    (r) Transition services in accordance with the definition of that 
term in Sec. 361.5(b)(55).
    (s) Technical assistance and other consultation services to conduct 
market analyses, develop business plans, and otherwise provide 
resources, to the extent those resources are authorized to be provided 
through the statewide workforce investment system, to eligible 
individuals who are pursuing self-employment or telecommuting or 
establishing a small business operation as an employment outcome.
    (t) Other goods and services determined necessary for the individual 
with a disability to achieve an employment outcome.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 103(a) of the Act; 29 U.S.C. 723(a))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.49  Scope of vocational rehabilitation services for groups of
individuals with disabilities.

    (a) The designated State unit may also provide for the following 
vocational rehabilitation services for the benefit of groups of 
individuals with disabilities:
    (1) The establishment, development, or improvement of a public or 
other nonprofit community rehabilitation

[[Page 340]]

program that is used to provide vocational rehabilitation services that 
promote integration and competitive employment, including, under special 
circumstances, the construction of a facility for a public or nonprofit 
community rehabilitation program. Examples of ``special circumstances'' 
include the destruction by natural disaster of the only available center 
serving an area or a State determination that construction is necessary 
in a rural area because no other public agencies or private nonprofit 
organizations are currently able to provide vocational rehabilitation 
services to individuals.
    (2) Telecommunications systems that have the potential for 
substantially improving vocational rehabilitation service delivery 
methods and developing appropriate programming to meet the particular 
needs of individuals with disabilities, including telephone, television, 
video description services, satellite, tactile-vibratory devices, and 
similar systems, as appropriate.
    (3) Special services to provide nonvisual access to information for 
individuals who are blind, including the use of telecommunications, 
Braille, sound recordings, or other appropriate media; captioned 
television, films, or video cassettes for individuals who are deaf or 
hard of hearing; tactile materials for individuals who are deaf-blind; 
and other special services that provide information through tactile, 
vibratory, auditory, and visual media.
    (4) Technical assistance and support services to businesses that are 
not subject to Title I of the Americans with Disabilities Act of 1990 
and that are seeking to employ individuals with disabilities.
    (5) In the case of any small business enterprise operated by 
individuals with significant disabilities under the supervision of the 
designated State unit, including enterprises established under the 
Randolph-Sheppard program, management services and supervision provided 
by the State unit along with the acquisition by the State unit of 
vending facilities or other equipment, initial stocks and supplies, and 
initial operating expenses, in accordance with the following 
requirements:
    (i) ``Management services and supervision'' includes inspection, 
quality control, consultation, accounting, regulating, in-service 
training, and related services provided on a systematic basis to support 
and improve small business enterprises operated by individuals with 
significant disabilities. ``Management services and supervision'' may be 
provided throughout the operation of the small business enterprise.
    (ii) ``Initial stocks and supplies'' includes those items necessary 
to the establishment of a new business enterprise during the initial 
establishment period, which may not exceed 6 months.
    (iii) Costs of establishing a small business enterprise may include 
operational costs during the initial establishment period, which may not 
exceed 6 months.
    (iv) If the designated State unit provides for these services, it 
must ensure that only individuals with significant disabilities will be 
selected to participate in this supervised program.
    (v) If the designated State unit provides for these services and 
chooses to set aside funds from the proceeds of the operation of the 
small business enterprises, the State unit must maintain a description 
of the methods used in setting aside funds and the purposes for which 
funds are set aside. Funds may be used only for small business 
enterprises purposes, and benefits that are provided to operators from 
set-aside funds must be provided on an equitable basis.
    (6) Other services that promise to contribute substantially to the 
rehabilitation of a group of individuals but that are not related 
directly to the individualized plan for employment of any one 
individual. Examples of those other services might include the purchase 
or lease of a bus to provide transportation to a group of applicants or 
eligible individuals or the purchase of equipment or instructional 
materials that would benefit a group of applicants or eligible 
individuals.
    (7) Consultative and technical assistance services to assist 
educational agencies in planning for the transition of students with 
disabilities from school to post-school activities, including 
employment.

[[Page 341]]

    (b) If the designated State unit provides for vocational 
rehabilitation services for groups of individuals, it must--
    (1) Develop and maintain written policies covering the nature and 
scope of each of the vocational rehabilitation services it provides and 
the criteria under which each service is provided; and
    (2) Maintain information to ensure the proper and efficient 
administration of those services in the form and detail and at the time 
required by the Secretary, including the types of services provided, the 
costs of those services, and, to the extent feasible, estimates of the 
numbers of individuals benefiting from those services.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c), 101(a)(6)(A), and 103(b) of the Act; 29 
U.S.C. 709(c), 721(a)(6), and 723(b))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.50  Written policies governing the provision of services for
individuals with disabilities.

    (a) Policies. The State unit must develop and maintain written 
policies covering the nature and scope of each of the vocational 
rehabilitation services specified in Sec. 361.48 and the criteria under 
which each service is provided. The policies must ensure that the 
provision of services is based on the rehabilitation needs of each 
individual as identified in that individual's IPE and is consistent with 
the individual's informed choice. The written policies may not establish 
any arbitrary limits on the nature and scope of vocational 
rehabilitation services to be provided to the individual to achieve an 
employment outcome. The policies must be developed in accordance with 
the following provisions:
    (b) Out-of-State services. (1) The State unit may establish a 
preference for in-State services, provided that the preference does not 
effectively deny an individual a necessary service. If the individual 
chooses an out-of-State service at a higher cost than an in-State 
service, if either service would meet the individual's rehabilitation 
needs, the designated State unit is not responsible for those costs in 
excess of the cost of the in-State service.
    (2) The State unit may not establish policies that effectively 
prohibit the provision of out-of-State services.
    (c) Payment for services. (1) The State unit must establish and 
maintain written policies to govern the rates of payment for all 
purchased vocational rehabilitation services.
    (2) The State unit may establish a fee schedule designed to ensure a 
reasonable cost to the program for each service, if the schedule is--
    (i) Not so low as to effectively deny an individual a necessary 
service; and
    (ii) Not absolute and permits exceptions so that individual needs 
can be addressed.
    (3) The State unit may not place absolute dollar limits on specific 
service categories or on the total services provided to an individual.
    (d) Duration of services. (1) The State unit may establish 
reasonable time periods for the provision of services provided that the 
time periods are--
    (i) Not so short as to effectively deny an individual a necessary 
service; and
    (ii) Not absolute and permit exceptions so that individual needs can 
be addressed.
    (2) The State unit may not establish absolute time limits on the 
provision of specific services or on the provision of services to an 
individual. The duration of each service needed by an individual must be 
determined on an individual basis and reflected in that individual's 
individualized plan for employment.
    (e) Authorization of services. The State unit must establish 
policies related to the timely authorization of services, including any 
conditions under which verbal authorization can be given.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c) and 101(a)(6) of the Act and 29 U.S.C. 709(c) 
and 721(a)(6))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.51  Standards for facilities and providers of services.

    (a) Accessibility of facilities. The State plan must assure that any 
facility used in connection with the delivery of vocational 
rehabilitation services under

[[Page 342]]

this part meets program accessibility requirements consistent with the 
requirements, as applicable, of the Architectural Barriers Act of 1968, 
the Americans with Disabilities Act of 1990, section 504 of the Act, and 
the regulations implementing these laws.
    (b) Affirmative action. The State plan must assure that community 
rehabilitation programs that receive assistance under part B of Title I 
of the Act take affirmative action to employ and advance in employment 
qualified individuals with disabilities covered under and on the same 
terms and conditions as in section 503 of the Act.
    (c) Special communication needs personnel. The designated State unit 
must ensure that providers of vocational rehabilitation services are 
able to communicate--
    (1) In the native language of applicants and eligible individuals 
who have limited English speaking ability; and
    (2) By using appropriate modes of communication used by applicants 
and eligible individuals.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c) and 101(a)(6)(B) and (C) of the Act; 29 
U.S.C. 709(c) and 721(a)(6)(B) and (C))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.52  Informed choice.

    (a) General provision. The State plan must assure that applicants 
and eligible individuals or, as appropriate, their representatives are 
provided information and support services to assist applicants and 
eligible individuals in exercising informed choice throughout the 
rehabilitation process consistent with the provisions of section 102(d) 
of the Act and the requirements of this section.
    (b) Written policies and procedures. The designated State unit, in 
consultation with its State Rehabilitation Council, if it has a Council, 
must develop and implement written policies and procedures that enable 
an applicant or eligible individual to exercise informed choice 
throughout the vocational rehabilitation process. These policies and 
procedures must provide for--
    (1) Informing each applicant and eligible individual (including 
students with disabilities who are making the transition from programs 
under the responsibility of an educational agency to programs under the 
responsibility of the designated State unit), through appropriate modes 
of communication, about the availability of and opportunities to 
exercise informed choice, including the availability of support services 
for individuals with cognitive or other disabilities who require 
assistance in exercising informed choice throughout the vocational 
rehabilitation process;
    (2) Assisting applicants and eligible individuals in exercising 
informed choice in decisions related to the provision of assessment 
services;
    (3) Developing and implementing flexible procurement policies and 
methods that facilitate the provision of vocational rehabilitation 
services and that afford eligible individuals meaningful choices among 
the methods used to procure vocational rehabilitation services;
    (4) Assisting eligible individuals or, as appropriate, the 
individuals' representatives in acquiring information that enables them 
to exercise informed choice in the development of their IPEs with 
respect to the selection of the--
    (i) Employment outcome;
    (ii) Specific vocational rehabilitation services needed to achieve 
the employment outcome;
    (iii) Entity that will provide the services;
    (iv) Employment setting and the settings in which the services will 
be provided; and
    (v) Methods available for procuring the services; and
    (5) Ensuring that the availability and scope of informed choice is 
consistent with the obligations of the designated State agency under 
this part.
    (c) Information and assistance in the selection of vocational 
rehabilitation services and service providers. In assisting an applicant 
and eligible individual in exercising informed choice during the 
assessment for determining eligibility and vocational rehabilitation 
needs and during development of the IPE, the designated State unit must 
provide the

[[Page 343]]

individual or the individual's representative, or assist the individual 
or the individual's representative in acquiring, information necessary 
to make an informed choice about the specific vocational rehabilitation 
services, including the providers of those services, that are needed to 
achieve the individual's employment outcome. This information must 
include, at a minimum, information relating to the--
    (1) Cost, accessibility, and duration of potential services;
    (2) Consumer satisfaction with those services to the extent that 
information relating to consumer satisfaction is available;
    (3) Qualifications of potential service providers;
    (4) Types of services offered by the potential providers;
    (5) Degree to which services are provided in integrated settings; 
and
    (6) Outcomes achieved by individuals working with service providers, 
to the extent that such information is available.
    (d) Methods or sources of information. In providing or assisting the 
individual or the individual's representative in acquiring the 
information required under paragraph (c) of this section, the State unit 
may use, but is not limited to, the following methods or sources of 
information:
    (1) Lists of services and service providers.
    (2) Periodic consumer satisfaction surveys and reports.
    (3) Referrals to other consumers, consumer groups, or disability 
advisory councils qualified to discuss the services or service 
providers.
    (4) Relevant accreditation, certification, or other information 
relating to the qualifications of service providers.
    (5) Opportunities for individuals to visit or experience various 
work and service provider settings.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c), 101(a)(19); 102(b)(2)(B) and 102(d) of the 
Act; 29 U.S.C. 709(c), 721(a)(19); 722(b)(2)(B) and 722(d))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.53  Comparable services and benefits.

    (a) Determination of availability. The State plan must assure that 
prior to providing any vocational rehabilitation services, except those 
services listed in paragraph (b) of this section, to an eligible 
individual, or to members of the individual's family, the State unit 
must determine whether comparable services and benefits, as defined in 
Sec. 361.5(b)(10), exist under any other program and whether those 
services and benefits are available to the individual unless such a 
determination would interrupt or delay--
    (1) The progress of the individual toward achieving the employment 
outcome identified in the individualized plan for employment;
    (2) An immediate job placement; or
    (3) The provision of vocational rehabilitation services to any 
individual who is determined to be at extreme medical risk, based on 
medical evidence provided by an appropriate qualified medical 
professional.
    (b) Exempt services. The following vocational rehabilitation 
services described in Sec. 361.48(a) are exempt from a determination of 
the availability of comparable services and benefits under paragraph (a) 
of this section:
    (1) Assessment for determining eligibility and vocational 
rehabilitation needs.
    (2) Counseling and guidance, including information and support 
services to assist an individual in exercising informed choice.
    (3) Referral and other services to secure needed services from other 
agencies, including other components of the statewide workforce 
investment system, if those services are not available under this part.
    (4) Job-related services, including job search and placement 
assistance, job retention services, follow-up services, and follow-along 
services.
    (5) Rehabilitation technology, including telecommunications, 
sensory, and other technological aids and devices.
    (6) Post-employment services consisting of the services listed under 
paragraphs (b)(1) through (5) of this section.
    (c) Provision of services. (1) If comparable services or benefits 
exist under

[[Page 344]]

any other program and are available to the individual at the time needed 
to ensure the progress of the individual toward achieving the employment 
outcome in the individual's IPE, the designated State unit must use 
those comparable services or benefits to meet, in whole or part, the 
costs of the vocational rehabilitation services.
    (2) If comparable services or benefits exist under any other 
program, but are not available to the individual at the time needed to 
ensure the progress of the individual toward achieving the employment 
outcome in the individual's IPE, the designated State unit must provide 
vocational rehabilitation services until those comparable services and 
benefits become available.
    (d) Interagency coordination. (1) The State plan must assure that 
the Governor, in consultation with the entity in the State responsible 
for the vocational rehabilitation program and other appropriate 
agencies, will ensure that an interagency agreement or other mechanism 
for interagency coordination takes effect between the designated State 
vocational rehabilitation unit and any appropriate public entity, 
including the State entity responsible for administering the State 
medicaid program, a public institution of higher education, and a 
component of the statewide workforce investment system, to ensure the 
provision of vocational rehabilitation services (other than those 
services listed in paragraph (b) of this section) that are included in 
the IPE, including the provision of those vocational rehabilitation 
services during the pendency of any interagency dispute in accordance 
with the provisions of paragraph (d)(3)(iii) of this section.
    (2) The Governor may meet the requirements of paragraph (d)(1) of 
this section through--
    (i) A State statute or regulation;
    (ii) A signed agreement between the respective officials of the 
public entities that clearly identifies the responsibilities of each 
public entity for the provision of the services; or
    (iii) Another appropriate mechanism as determined by the designated 
State vocational rehabilitation unit.
    (3) The interagency agreement or other mechanism for interagency 
coordination must include the following:
    (i) Agency financial responsibility. An identification of, or 
description of a method for defining, the financial responsibility of 
the public entity for providing the vocational rehabilitation services 
other than those listed in paragraph (b) of this section and a provision 
stating the financial responsibility of the public entity for providing 
those services.
    (ii) Conditions, terms, and procedures of reimbursement. Information 
specifying the conditions, terms, and procedures under which the 
designated State unit must be reimbursed by the other public entities 
for providing vocational rehabilitation services based on the terms of 
the interagency agreement or other mechanism for interagency 
coordination.
    (iii) Interagency disputes. Information specifying procedures for 
resolving interagency disputes under the interagency agreement or other 
mechanism for interagency coordination, including procedures under which 
the designated State unit may initiate proceedings to secure 
reimbursement from other public entities or otherwise implement the 
provisions of the agreement or mechanism.
    (iv) Procedures for coordination of services. Information specifying 
policies and procedures for public entities to determine and identify 
interagency coordination responsibilities of each public entity to 
promote the coordination and timely delivery of vocational 
rehabilitation services other than those listed in paragraph (b) of this 
section.
    (e) Responsibilities under other law. (1) If a public entity (other 
than the designated State unit) is obligated under Federal law (such as 
the Americans with Disabilities Act, section 504 of the Act, or section 
188 of the Workforce Investment Act) or State law, or assigned 
responsibility under State policy or an interagency agreement 
established under this section, to provide or pay for any services 
considered to be vocational rehabilitation services (e.g., interpreter 
services under Sec. 361.48(j)), other than those services listed in 
paragraph (b) of this section, the public

[[Page 345]]

entity must fulfill that obligation or responsibility through--
    (i) The terms of the interagency agreement or other requirements of 
this section;
    (ii) Providing or paying for the service directly or by contract; or
    (iii) Other arrangement.
    (2) If a public entity other than the designated State unit fails to 
provide or pay for vocational rehabilitation services for an eligible 
individual as established under this section, the designated State unit 
must provide or pay for those services to the individual and may claim 
reimbursement for the services from the public entity that failed to 
provide or pay for those services. The public entity must reimburse the 
designated State unit pursuant to the terms of the interagency agreement 
or other mechanism described in paragraph (d) of this section in 
accordance with the procedures established in the agreement or mechanism 
pursuant to paragraph (d)(3)(ii) of this section.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c) and 101(a)(8) of the Act; 29 U.S.C. 709(c) 
and 721(a)(8))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.54  Participation of individuals in cost of services based on
financial need.

    (a) No Federal requirement. There is no Federal requirement that the 
financial need of individuals be considered in the provision of 
vocational rehabilitation services.
    (b) State unit requirements. (1) The State unit may choose to 
consider the financial need of eligible individuals or individuals who 
are receiving services through trial work experiences under Sec. 
361.42(e) or during an extended evaluation under Sec. 361.42(f) for 
purposes of determining the extent of their participation in the costs 
of vocational rehabilitation services, other than those services 
identified in paragraph (b)(3) of this section.
    (2) If the State unit chooses to consider financial need--
    (i) It must maintain written policies--
    (A) Explaining the method for determining the financial need of an 
eligible individual; and
    (B) Specifying the types of vocational rehabilitation services for 
which the unit has established a financial needs test;
    (ii) The policies must be applied uniformly to all individuals in 
similar circumstances;
    (iii) The policies may require different levels of need for 
different geographic regions in the State, but must be applied uniformly 
to all individuals within each geographic region; and
    (iv) The policies must ensure that the level of an individual's 
participation in the cost of vocational rehabilitation services is--
    (A) Reasonable;
    (B) Based on the individual's financial need, including 
consideration of any disability-related expenses paid by the individual; 
and
    (C) Not so high as to effectively deny the individual a necessary 
service.
    (3) The designated State unit may not apply a financial needs test, 
or require the financial participation of the individual--
    (i) As a condition for furnishing the following vocational 
rehabilitation services:
    (A) Assessment for determining eligibility and priority for services 
under Sec. 361.48(a), except those non-assessment services that are 
provided to an individual with a significant disability during either an 
exploration of the individual's abilities, capabilities, and capacity to 
perform in work situations through the use of trial work experiences 
under Sec. 361.42(e) or an extended evaluation under Sec. 361.42(f).
    (B) Assessment for determining vocational rehabilitation needs under 
Sec. 361.48(b).
    (C) Vocational rehabilitation counseling and guidance under Sec. 
361.48(c).
    (D) Referral and other services under Sec. 361.48(d).
    (E) Job-related services under Sec. 361.48(l).
    (F) Personal assistance services under Sec. 361.48(n).
    (G) Any auxiliary aid or service (e.g., interpreter services under 
Sec. 361.48(j), reader services under Sec. 361.48(k)) that an 
individual with a disability requires

[[Page 346]]

under section 504 of the Act (29 U.S.C. 794) or the Americans with 
Disabilities Act (42 U.S.C. 12101, et seq.), or regulations implementing 
those laws, in order for the individual to participate in the VR program 
as authorized under this part; or
    (ii) As a condition for furnishing any vocational rehabilitation 
service if the individual in need of the service has been determined 
eligible for Social Security benefits under Titles II or XVI of the 
Social Security Act.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 12(c) of the Act; 29 U.S.C. 709(c))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.55  Annual review of individuals in extended employment and 
other employment under special certificate provisions of the Fair Labor

Standards Act.

    (a) The State plan must assure that the designated State unit 
conducts an annual review and reevaluation in accordance with the 
requirements in paragraph (b) of this section for an individual with a 
disability served under this part--
    (1) Who has achieved an employment outcome in which the individual 
is compensated in accordance with section 14(c) of the Fair Labor 
Standards Act; or
    (2) Whose record of services is closed while the individual is in 
extended employment on the basis that the individual is unable to 
achieve an employment outcome consistent with Sec. 361.5(b)(16) or that 
the individual made an informed choice to remain in extended employment.
    (b) For each individual with a disability who meets the criteria in 
paragraph (a) of this section, the designated State unit must--
    (1) Annually review and reevaluate the status of each individual for 
2 years after the individual's record of services is closed (and 
thereafter if requested by the individual or, if appropriate, the 
individual's representative) to determine the interests, priorities, and 
needs of the individual with respect to competitive employment or 
training for competitive employment;
    (2) Enable the individual or, if appropriate, the individual's 
representative to provide input into the review and reevaluation and 
must document that input in the record of services, consistent with 
Sec. 361.47(a)(10), with the individual's or, as appropriate, the 
individual's representative's signed acknowledgment that the review and 
reevaluation have been conducted; and
    (3) Make maximum efforts, including identifying and providing 
vocational rehabilitation services, reasonable accommodations, and other 
necessary support services, to assist the individual in engaging in 
competitive employment as defined in Sec. 361.5(b)(11).

(Authority: Sections 12(c) and 101(a)(14) of the Act; 29 U.S.C. 709(c) 
and 721(a)(14))

[66 FR 7253, Jan. 22, 2001]



Sec. 361.56  Requirements for closing the record of services of an 
individual who has achieved an employment outcome.

    The record of services of an individual who has achieved an 
employment outcome may be closed only if all of the following 
requirements are met:
    (a) Employment outcome achieved. The individual has achieved the 
employment outcome that is described in the individual's IPE in 
accordance with Sec. 361.46(a)(1) and is consistent with the 
individual's strengths, resources, priorities, concerns, abilities, 
capabilities, interests, and informed choice.
    (b) Employment outcome maintained. The individual has maintained the 
employment outcome for an appropriate period of time, but not less than 
90 days, necessary to ensure the stability of the employment outcome, 
and the individual no longer needs vocational rehabilitation services.
    (c) Satisfactory outcome. At the end of the appropriate period under 
paragraph (b) of this section, the individual and the qualified 
rehabilitation counselor employed by the designated State unit consider 
the employment outcome to be satisfactory and agree that the individual 
is performing well in the employment.
    (d) Post-employment services. The individual is informed through 
appropriate

[[Page 347]]

modes of communication of the availability of post-employment services.

(Authority: Sections 12(c), 101(a)(6), and 106(a)(2) of the Act; 29 
U.S.C. 711(c), 721(a)(6), and 726(a)(2))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.57  Review of determinations made by designated State unit 
personnel.

    (a) Procedures. The designated State unit must develop and implement 
procedures to ensure that an applicant or eligible individual who is 
dissatisfied with any determination made by personnel of the designated 
State unit that affects the provision of vocational rehabilitation 
services may request, or, if appropriate, may request through the 
individual's representative, a timely review of that determination. The 
procedures must be in accordance with paragraphs (b) through (k) of this 
section:
    (b) General requirements--(1) Notification. Procedures established 
by the State unit under this section must provide an applicant or 
eligible individual or, as appropriate, the individual's representative 
notice of--
    (i) The right to obtain review of State unit determinations that 
affect the provision of vocational rehabilitation services through an 
impartial due process hearing under paragraph (e) of this section;
    (ii) The right to pursue mediation under paragraph (d) of this 
section with respect to determinations made by designated State unit 
personnel that affect the provision of vocational rehabilitation 
services to an applicant or eligible individual;
    (iii) The names and addresses of individuals with whom requests for 
mediation or due process hearings may be filed;
    (iv) The manner in which a mediator or impartial hearing officer may 
be selected consistent with the requirements of paragraphs (d) and (f) 
of this section; and
    (v) The availability of the client assistance program, established 
under 34 CFR part 370, to assist the applicant or eligible individual 
during mediation sessions or impartial due process hearings.
    (2) Timing. Notice described in paragraph (b)(1) of this section 
must be provided in writing--
    (i) At the time the individual applies for vocational rehabilitation 
services under this part;
    (ii) At the time the individual is assigned to a category in the 
State's order of selection, if the State has established an order of 
selection under Sec. 361.36;
    (iii) At the time the IPE is developed; and
    (iv) Whenever vocational rehabilitation services for an individual 
are reduced, suspended, or terminated.
    (3) Evidence and representation. Procedures established under this 
section must--
    (i) Provide an applicant or eligible individual or, as appropriate, 
the individual's representative with an opportunity to submit during 
mediation sessions or due process hearings evidence and other 
information that supports the applicant's or eligible individual's 
position; and
    (ii) Allow an applicant or eligible individual to be represented 
during mediation sessions or due process hearings by counsel or other 
advocate selected by the applicant or eligible individual.
    (4) Impact on provision of services. The State unit may not 
institute a suspension, reduction, or termination of vocational 
rehabilitation services being provided to an applicant or eligible 
individual, including evaluation and assessment services and IPE 
development, pending a resolution through mediation, pending a decision 
by a hearing officer or reviewing official, or pending informal 
resolution under this section unless--
    (i) The individual or, in appropriate cases, the individual's 
representative requests a suspension, reduction, or termination of 
services; or
    (ii) The State agency has evidence that the services have been 
obtained through misrepresentation, fraud, collusion, or criminal 
conduct on the part of the individual or the individual's 
representative.
    (5) Ineligibility. Applicants who are found ineligible for 
vocational rehabilitation services and previously eligible individuals 
who are determined to be

[[Page 348]]

no longer eligible for vocational rehabilitation services pursuant to 
Sec. 361.43 are permitted to challenge the determinations of 
ineligibility under the procedures described in this section.
    (c) Informal dispute resolution. The State unit may develop an 
informal process for resolving a request for review without conducting 
mediation or a formal hearing. A State's informal process must not be 
used to deny the right of an applicant or eligible individual to a 
hearing under paragraph (e) of this section or any other right provided 
under this part, including the right to pursue mediation under paragraph 
(d) of this section. If informal resolution under this paragraph or 
mediation under paragraph (d) of this section is not successful in 
resolving the dispute within the time period established under paragraph 
(e)(1) of this section, a formal hearing must be conducted within that 
same time period, unless the parties agree to a specific extension of 
time.
    (d) Mediation. (1) The State must establish and implement 
procedures, as required under paragraph (b)(1)(ii) of this section, to 
allow an applicant or eligible individual and the State unit to resolve 
disputes involving State unit determinations that affect the provision 
of vocational rehabilitation services through a mediation process that 
must be made available, at a minimum, whenever an applicant or eligible 
individual or, as appropriate, the individual's representative requests 
an impartial due process hearing under this section.
    (2) Mediation procedures established by the State unit under 
paragraph (d) must ensure that--
    (i) Participation in the mediation process is voluntary on the part 
of the applicant or eligible individual, as appropriate, and on the part 
of the State unit;
    (ii) Use of the mediation process is not used to deny or delay the 
applicant's or eligible individual's right to pursue resolution of the 
dispute through an impartial hearing held within the time period 
specified in paragraph (e)(1) of this section or any other rights 
provided under this part. At any point during the mediation process, 
either party or the mediator may elect to terminate the mediation. In 
the event mediation is terminated, either party may pursue resolution 
through an impartial hearing;
    (iii) The mediation process is conducted by a qualified and 
impartial mediator, as defined in Sec. 361.5(b)(43), who must be 
selected from a list of qualified and impartial mediators maintained by 
the State--
    (A) On a random basis;
    (B) By agreement between the director of the designated State unit 
and the applicant or eligible individual or, as appropriate, the 
individual's representative; or
    (C) In accordance with a procedure established in the State for 
assigning mediators, provided this procedure ensures the neutrality of 
the mediator assigned; and
    (iv) Mediation sessions are scheduled and conducted in a timely 
manner and are held in a location and manner that is convenient to the 
parties to the dispute.
    (3) Discussions that occur during the mediation process must be kept 
confidential and may not be used as evidence in any subsequent due 
process hearings or civil proceedings, and the parties to the mediation 
process may be required to sign a confidentiality pledge prior to the 
commencement of the process.
    (4) An agreement reached by the parties to the dispute in the 
mediation process must be described in a written mediation agreement 
that is developed by the parties with the assistance of the qualified 
and impartial mediator and signed by both parties. Copies of the 
agreement must be sent to both parties.
    (5) The costs of the mediation process must be paid by the State. 
The State is not required to pay for any costs related to the 
representation of an applicant or eligible individual authorized under 
paragraph (b)(3)(ii) of this section.
    (e) Impartial due process hearings. The State unit must establish 
and implement formal review procedures, as required under paragraph 
(b)(1)(i) of this section, that provide that--
    (1) A hearing conducted by an impartial hearing officer, selected in 
accordance with paragraph (f) of this section,

[[Page 349]]

must be held within 60 days of an applicant's or eligible individual's 
request for review of a determination made by personnel of the State 
unit that affects the provision of vocational rehabilitation services to 
the individual, unless informal resolution or a mediation agreement is 
achieved prior to the 60th day or the parties agree to a specific 
extension of time;
    (2) In addition to the rights described in paragraph (b)(3) of this 
section, the applicant or eligible individual or, if appropriate, the 
individual's representative must be given the opportunity to present 
witnesses during the hearing and to examine all witnesses and other 
relevant sources of information and evidence;
    (3) The impartial hearing officer must--
    (i) Make a decision based on the provisions of the approved State 
plan, the Act, Federal vocational rehabilitation regulations, and State 
regulations and policies that are consistent with Federal requirements; 
and
    (ii) Provide to the individual or, if appropriate, the individual's 
representative and to the State unit a full written report of the 
findings and grounds for the decision within 30 days of the completion 
of the hearing; and
    (4) The hearing officer's decision is final, except that a party may 
request an impartial review under paragraph (g)(1) of this section if 
the State has established procedures for that review, and a party 
involved in a hearing may bring a civil action under paragraph (i) of 
this section.
    (f) Selection of impartial hearing officers. The impartial hearing 
officer for a particular case must be selected--
    (1) From a list of qualified impartial hearing officers maintained 
by the State unit. Impartial hearing officers included on the list must 
be--
    (i) Identified by the State unit if the State unit is an independent 
commission; or
    (ii) Jointly identified by the State unit and the State 
Rehabilitation Council if the State has a Council; and
    (2)(i) On a random basis; or
    (ii) By agreement between the director of the designated State unit 
and the applicant or eligible individual or, as appropriate, the 
individual's representative.
    (g) Administrative review of hearing officer's decision. The State 
may establish procedures to enable a party who is dissatisfied with the 
decision of the impartial hearing officer to seek an impartial 
administrative review of the decision under paragraph (e)(3) of this 
section in accordance with the following requirements:
    (1) A request for administrative review under paragraph (g) of this 
section must be made within 20 days of the mailing of the impartial 
hearing officer's decision.
    (2) Administrative review of the hearing officer's decision must be 
conducted by--
    (i) The chief official of the designated State agency if the State 
has established both a designated State agency and a designated State 
unit under Sec. 361.13(b); or
    (ii) An official from the office of the Governor.
    (3) The reviewing official described in paragraph (g)(2)(i) of this 
section--
    (i) Provides both parties with an opportunity to submit additional 
evidence and information relevant to a final decision concerning the 
matter under review;
    (ii) May not overturn or modify the hearing officer's decision, or 
any part of that decision, that supports the position of the applicant 
or eligible individual unless the reviewing official concludes, based on 
clear and convincing evidence, that the decision of the impartial 
hearing officer is clearly erroneous on the basis of being contrary to 
the approved State plan, the Act, Federal vocational rehabilitation 
regulations, or State regulations and policies that are consistent with 
Federal requirements;
    (iii) Makes an independent, final decision following a review of the 
entire hearing record and provides the decision in writing, including a 
full report of the findings and the statutory, regulatory, or policy 
grounds for the decision, to the applicant or eligible individual or, as 
appropriate, the individual's representative and to the State unit 
within 30 days of the request for administrative review under paragraph 
(g)(1) of this section; and

[[Page 350]]

    (iv) May not delegate the responsibility for making the final 
decision under paragraph (g) of this section to any officer or employee 
of the designated State unit.
    (4) The reviewing official's decision under paragraph (g) of this 
section is final unless either party brings a civil action under 
paragraph (i) of this section.
    (h) Implementation of final decisions. If a party brings a civil 
action under paragraph (h) of this section to challenge the final 
decision of a hearing officer under paragraph (e) of this section or to 
challenge the final decision of a State reviewing official under 
paragraph (g) of this section, the final decision of the hearing officer 
or State reviewing official must be implemented pending review by the 
court.
    (i) Civil action. (1) Any party who disagrees with the findings and 
decision of an impartial hearing officer under paragraph (e) of this 
section in a State that has not established administrative review 
procedures under paragraph (g) of this section and any party who 
disagrees with the findings and decision under paragraph (g)(3)(iii) of 
this section have a right to bring a civil action with respect to the 
matter in dispute. The action may be brought in any State court of 
competent jurisdiction or in a district court of the United States of 
competent jurisdiction without regard to the amount in controversy.
    (2) In any action brought under paragraph (i) of this section, the 
court--
    (i) Receives the records related to the impartial due process 
hearing and the records related to the administrative review process, if 
applicable;
    (ii) Hears additional evidence at the request of a party; and
    (iii) Basing its decision on the preponderance of the evidence, 
grants the relief that the court determines to be appropriate.
    (j) State fair hearing board. A fair hearing board as defined in 
Sec. 361.5(b)(22) is authorized to carry out the responsibilities of 
the impartial hearing officer under paragraph (e) of this section in 
accordance with the following criteria:
    (1) The fair hearing board may conduct due process hearings either 
collectively or by assigning responsibility for conducting the hearing 
to one or more members of the fair hearing board.
    (2) The final decision issued by the fair hearing board following a 
hearing under paragraph (j)(1) of this section must be made collectively 
by, or by a majority vote of, the fair hearing board.
    (3) The provisions of paragraphs (b)(1), (2), and (3) of this 
section that relate to due process hearings and of paragraphs (e), (f), 
(g), and (h) of this section do not apply to fair hearing boards under 
this paragraph (j).
    (k) Data collection. (1) The director of the designated State unit 
must collect and submit, at a minimum, the following data to the 
Commissioner of the Rehabilitation Services Administration (RSA) for 
inclusion each year in the annual report to Congress under section 13 of 
the Act:
    (i) A copy of the standards used by State reviewing officials for 
reviewing decisions made by impartial hearing officers under this 
section.
    (ii) The number of mediations held, including the number of 
mediation agreements reached.
    (iii) The number of hearings and reviews sought from impartial 
hearing officers and State reviewing officials, including the type of 
complaints and the issues involved.
    (iv) The number of hearing officer decisions that were not reviewed 
by administrative reviewing officials.
    (v) The number of hearing decisions that were reviewed by State 
reviewing officials and, based on these reviews, the number of hearing 
decisions that were--
    (A) Sustained in favor of an applicant or eligible individual;
    (B) Sustained in favor of the designated State unit;
    (C) Reversed in whole or in part in favor of the applicant or 
eligible individual; and
    (D) Reversed in whole or in part in favor of the State unit.
    (2) The State unit director also must collect and submit to the 
Commissioner of RSA copies of all final decisions issued by impartial 
hearing officers under paragraph (e) of this section and by State review 
officials under paragraph (g) of this section.

[[Page 351]]

    (3) The confidentiality of records of applicants and eligible 
individuals maintained by the State unit may not preclude the access of 
the RSA Commissioner to those records for the purposes described in this 
section.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Section 102(c) of the Act; 29 U.S.C. 722(c))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



     Subpart C_Financing of State Vocational Rehabilitation Programs



Sec. 361.60  Matching requirements.

    (a) Federal share--(1) General. Except as provided in paragraph 
(a)(2) of this section, the Federal share for expenditures made by the 
State under the State plan, including expenditures for the provision of 
vocational rehabilitation services and the administration of the State 
plan, is 78.7 percent.
    (2) Construction projects. The Federal share for expenditures made 
for the construction of a facility for community rehabilitation program 
purposes may not be more than 50 percent of the total cost of the 
project.
    (b) Non-Federal share--(1) General. Except as provided in paragraph 
(b)(2) and (3) of this section, expenditures made under the State plan 
to meet the non-Federal share under this section must be consistent with 
the provisions of 34 CFR 80.24.
    (2) Third party in-kind contributions. Third party in-kind 
contributions specified in 34 CFR 80.24(a)(2) may not be used to meet 
the non-Federal share under this section.
    (3) Contributions by private entities. Expenditures made from 
contributions by private organizations, agencies, or individuals that 
are deposited in the account of the State agency or sole local agency in 
accordance with State law and that are earmarked, under a condition 
imposed by the contributor, may be used as part of the non-Federal share 
under this section if the funds are earmarked for--
    (i) Meeting in whole or in part the State's share for establishing a 
community rehabilitation program or constructing a particular facility 
for community rehabilitation program purposes;
    (ii) Particular geographic areas within the State for any purpose 
under the State plan, other than those described in paragraph (b)(3)(i) 
of this section, in accordance with the following criteria:
    (A) Before funds that are earmarked for a particular geographic area 
may be used as part of the non-Federal share, the State must notify the 
Secretary that the State cannot provide the full non-Federal share 
without using these funds.
    (B) Funds that are earmarked for a particular geographic area may be 
used as part of the non-Federal share without requesting a waiver of 
statewideness under Sec. 361.26.
    (C) Except as provided in paragraph (b)(3)(i) of this section, all 
Federal funds must be used on a statewide basis consistent with Sec. 
361.25, unless a waiver of statewideness is obtained under Sec. 361.26; 
and
    (iii) Any other purpose under the State plan, provided the 
expenditures do not benefit in any way the donor, an individual to whom 
the donor is related by blood or marriage or with whom the donor has a 
close personal relationship, or an individual, entity, or organization 
with whom the donor shares a financial interest. The Secretary does not 
consider a donor's receipt from the State unit of a grant, subgrant, or 
contract with funds allotted under this part to be a benefit for the 
purposes of this paragraph if the grant, subgrant, or contract is 
awarded under the State's regular competitive procedures.


(Authority: Sections 7(14), 101(a)(3), 101(a)(4) and 104 of the Act; 29 
U.S.C. 706(14), 721(a)(3), 721(a)(4) and 724))

    Example for paragraph (b)(3): Contributions may be earmarked in 
accordance with Sec. 361.60(b)(3)(iii) for providing particular 
services (e.g., rehabilitation technology services); serving individuals 
with certain types of disabilities (e.g., individuals who are blind), 
consistent with the State's order of selection, if applicable; providing 
services to special groups that State or Federal law permits to be 
targeted for services (e.g., students with disabilities who are 
receiving special education services), consistent with the State's order 
of selection, if applicable; or carrying out particular types of 
administrative activities permissible under State law.

[[Page 352]]

Contributions also may be restricted to particular geographic areas to 
increase services or expand the scope of services that are available 
statewide under the State plan in accordance with the requirements in 
Sec. 361.60(b)(3)(ii).

(Approved by the Office of Management and Budget under control number 
1820-0500)

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.61  Limitation on use of funds for construction expenditures.

    No more than 10 percent of a State's allotment for any fiscal year 
under section 110 of the Act may be spent on the construction of 
facilities for community rehabilitation program purposes.

(Authority: Section 101(a)(17)(A) of the Act; 29 U.S.C. 721(a)(17)(A))



Sec. 361.62  Maintenance of effort requirements.

    (a) General requirements. (1) The Secretary reduces the amount 
otherwise payable to a State for a fiscal year by the amount by which 
the total expenditures from non-Federal sources under the State plan for 
the previous fiscal year were less than the total of those expenditures 
for the fiscal year 2 years prior to the previous fiscal year.

    Example: For fiscal year 2001, a State's maintenance of effort level 
is based on the amount of its expenditures from non-Federal sources for 
fiscal year 1999. Thus, if the State's non-Federal expenditures in 2001 
are less than they were in 1999, the State has a maintenance of effort 
deficit, and the Secretary reduces the State's allotment in 2002 by the 
amount of that deficit.

    (2) If, at the time the Secretary makes a determination that a State 
has failed to meet its maintenance of effort requirements, it is too 
late for the Secretary to make a reduction in accordance with paragraph 
(a)(1) of this section, then the Secretary recovers the amount of the 
maintenance of effort deficit through audit disallowance.
    (b) Specific requirements for construction of facilities. If the 
State provides for the construction of a facility for community 
rehabilitation program purposes, the amount of the State's share of 
expenditures for vocational rehabilitation services under the plan, 
other than for the construction of a facility for community 
rehabilitation program purposes or the establishment of a facility for 
community rehabilitation purposes, must be at least equal to the 
expenditures for those services for the second prior fiscal year. If a 
State fails to meet the requirements of this paragraph, the Secretary 
recovers the amount of the maintenance of effort deficit through audit 
disallowance.
    (c) Separate State agency for vocational rehabilitation services for 
individuals who are blind. If there is a separate part of the State plan 
administered by a separate State agency to provide vocational 
rehabilitation services for individuals who are blind--
    (1) Satisfaction of the maintenance of effort requirements under 
paragraphs (a) and (b) of this section are determined based on the total 
amount of a State's non-Federal expenditures under both parts of the 
State plan; and
    (2) If a State fails to meet any maintenance of effort requirement, 
the Secretary reduces the amount otherwise payable to the State for that 
fiscal year under each part of the plan in direct relation to the amount 
by which expenditures from non-Federal sources under each part of the 
plan in the previous fiscal year were less than they were for that part 
of the plan for the fiscal year 2 years prior to the previous fiscal 
year.
    (d) Waiver or modification. (1) The Secretary may waive or modify 
the maintenance of effort requirement in paragraph (a)(1) of this 
section if the Secretary determines that a waiver or modification is 
necessary to permit the State to respond to exceptional or 
uncontrollable circumstances, such as a major natural disaster or a 
serious economic downturn, that--
    (i) Cause significant unanticipated expenditures or reductions in 
revenue that result in a general reduction of programs within the State; 
or
    (ii) Require the State to make substantial expenditures in the 
vocational rehabilitation program for long-term purposes due to the one-
time costs associated with the construction of a facility for community 
rehabilitation program purposes, the establishment of a facility for 
community rehabilitation program purposes, or the acquisition of 
equipment.

[[Page 353]]

    (2) The Secretary may waive or modify the maintenance of effort 
requirement in paragraph (b) of this section or the 10 percent allotment 
limitation in Sec. 361.61 if the Secretary determines that a waiver or 
modification is necessary to permit the State to respond to exceptional 
or uncontrollable circumstances, such as a major natural disaster, that 
result in significant destruction of existing facilities and require the 
State to make substantial expenditures for the construction of a 
facility for community rehabilitation program purposes or the 
establishment of a facility for community rehabilitation program 
purposes in order to provide vocational rehabilitation services.
    (3) A written request for waiver or modification, including 
supporting justification, must be submitted to the Secretary as soon as 
the State determines that an exceptional or uncontrollable circumstance 
will prevent it from making its required expenditures from non-Federal 
sources.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 101(a)(17) and 111(a)(2) of the Act; 29 U.S.C. 
721(a)(17) and 731(a)(2))

[66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]



Sec. 361.63  Program income.

    (a) Definition. For purposes of this section, program income means 
gross income received by the State that is directly generated by an 
activity supported under this part.
    (b) Sources. Sources of program income include, but are not limited 
to, payments from the Social Security Administration for assisting 
Social Security beneficiaries and recipients to achieve employment 
outcomes, payments received from workers' compensation funds, fees for 
services to defray part or all of the costs of services provided to 
particular individuals, and income generated by a State-operated 
community rehabilitation program.
    (c) Use of program income. (1) Except as provided in paragraph 
(c)(2) of this section, program income, whenever earned, must be used 
for the provision of vocational rehabilitation services and the 
administration of the State plan. Program income is considered earned 
when it is received.
    (2) Payments provided to a State from the Social Security 
Administration for assisting Social Security beneficiaries and 
recipients to achieve employment outcomes may also be used to carry out 
programs under part B of Title I of the Act (client assistance), part B 
of Title VI of the Act (supported employment), and Title VII of the Act 
(independent living).
    (3) The State is authorized to treat program income as--
    (i) An addition to the grant funds to be used for additional 
allowable program expenditures, in accordance with 34 CFR 80.25(g)(2); 
or
    (ii) A deduction from total allowable costs, in accordance with 34 
CFR 80.25(g)(1).
    (4) Program income cannot be used to meet the non-Federal share 
requirement under Sec. 361.60.

(Authority: Section 108 of the Act; 29 U.S.C. 728; 34 CFR 80.25)



Sec. 361.64  Obligation of Federal funds and program income.

    (a) Except as provided in paragraph (b) of this section, any Federal 
funds, including reallotted funds, that are appropriated for a fiscal 
year to carry out a program under this part that are not obligated by 
the State by the beginning of the succeeding fiscal year and any program 
income received during a fiscal year that is not obligated by the State 
by the beginning of the succeeding fiscal year remain available for 
obligation by the State during that succeeding fiscal year.
    (b) Federal funds appropriated for a fiscal year remain available 
for obligation in the succeeding fiscal year only to the extent that the 
State met the matching requirement for those Federal funds by 
obligating, in accordance with 34 CFR 76.707, the non-Federal share in 
the fiscal year for which the funds were appropriated.

(Authority: Section 19 of the Act; 29 U.S.C. 716)

[[Page 354]]



Sec. 361.65  Allotment and payment of Federal funds for vocational 
rehabilitation services.

    (a) Allotment. (1) The allotment of Federal funds for vocational 
rehabilitation services for each State is computed in accordance with 
the requirements of section 110 of the Act, and payments are made to the 
State on a quarterly basis, unless some other period is established by 
the Secretary.
    (2) If the State plan designates one State agency to administer, or 
supervise the administration of, the part of the plan under which 
vocational rehabilitation services are provided for individuals who are 
blind and another State agency to administer the rest of the plan, the 
division of the State's allotment is a matter for State determination.
    (b) Reallotment. (1) The Secretary determines not later than 45 days 
before the end of a fiscal year which States, if any, will not use their 
full allotment.
    (2) As soon as possible, but not later than the end of the fiscal 
year, the Secretary reallots these funds to other States that can use 
those additional funds during the current or subsequent fiscal year, 
provided the State can meet the matching requirement by obligating the 
non-Federal share of any reallotted funds in the fiscal year for which 
the funds were appropriated.
    (3) Funds reallotted to another State are considered to be an 
increase in the recipient State's allotment for the fiscal year for 
which the funds were appropriated.

(Authority: Sections 110 and 111 of the Act; 29 U.S.C. 730 and 731)

Subpart D [Reserved]



        Subpart E_Evaluation Standards and Performance Indicators



Sec. 361.80  Purpose.

    The purpose of this subpart is to establish evaluation standards and 
performance indicators for the Program.

(Authority: 29 U.S.C. 726(a))



Sec. 361.81  Applicable definitions.

    In addition to those definitions in Sec. 361.5(b), the following 
definitions apply to this subpart:
    Average hourly earnings means the average per hour earnings in the 
week prior to exiting the vocational rehabilitation (VR) program of an 
eligible individual who has achieved a competitive employment outcome.
    Business Enterprise Program (BEP) means an employment outcome in 
which an individual with a significant disability operates a vending 
facility or other small business under the management and supervision of 
a designated State unit (DSU). This term includes home industry, 
farming, and other enterprises.
    Exit the VR program means that a DSU has closed the individual's 
record of VR services in one of the following categories:
    (1) Ineligible for VR services.
    (2) Received services under an individualized plan for employment 
(IPE) and achieved an employment outcome.
    (3) Received services under an IPE but did not achieve an employment 
outcome.
    (4) Eligible for VR services but did not receive services under an 
IPE.
    General or combined DSU means a DSU that does not serve exclusively 
individuals with visual impairments or blindness.
    Individuals from a minority background means individuals who report 
their race and ethnicity in any of the following categories: American 
Indian or Alaska Native, Asian, Black or African American, Native 
Hawaiian or Other Pacific Islander, or Hispanic or Latino.
    Minimum wage means the higher of the rate specified in section 
6(a)(1) of the Fair Labor Standards Act of 1938, 29 U.S.C. 206(a)(1), 
(i.e., the Federal minimum wage) or applicable State minimum wage law.
    Non-minority individuals means individuals who report themselves 
exclusively as White, non-Hispanic.
    Performance period is the reporting period during which a DSU's 
performance is measured. For Evaluation Standards 1 and 2, performance 
data must be aggregated and reported for each fiscal year beginning with 
fiscal

[[Page 355]]

year 1999. However, DSUs that exclusively serve individuals with visual 
impairments or blindness must report each year the aggregated data for 
the 2 previous years for Performance Indicators 1.1 through 1.6; the 
second year must coincide with the performance period for general or 
combined DSUs.
    Primary indicators means Performance Indicators 1.3, 1.4, and 1.5, 
which are specifically designed to measure--
    (1) The achievement of competitive, self-, or BEP employment with 
earnings equivalent to the minimum wage or higher, particularly by 
individuals with significant disabilities; and
    (2) The ratio between the average hourly earnings of individuals who 
exit the VR program in competitive, self-, or BEP employment with 
earnings equivalent to the minimum wage or higher and the State's 
average hourly earnings for all employed individuals.
    RSA-911 means the Case Service Report that is submitted annually by 
a DSU as approved by the Office of Management and Budget (OMB).
    Self-employment means an employment outcome in which the individual 
works for profit or fee in his or her own business, farm, shop, or 
office, including sharecroppers.
    Service rate means the result obtained by dividing the number of 
individuals who exit the VR program after receiving one or more services 
under an IPE during any reporting period by the total number of 
individuals who exit the VR program (as defined in this section) during 
that reporting period.
    State's average hourly earnings means the average hourly earnings of 
all persons in the State in which the DSU is located.

(Authority: 29 U.S.C. 726(a))



Sec. 361.82  Evaluation standards.

    (a) The Secretary establishes two evaluation standards to evaluate 
the performance of each DSU that receives funds under this part. The 
evaluation standards assist the Secretary and each DSU to evaluate a 
DSU's performance in serving individuals with disabilities under the VR 
program.
    (b) A DSU must achieve successful performance on both evaluation 
standards during each performance period.
    (c) The evaluation standards for the VR program are--
    (1) Evaluation Standard 1--Employment outcomes. A DSU must assist 
any eligible individual, including an individual with a significant 
disability, to obtain, maintain, or regain high-quality employment.
    (2) Evaluation Standard 2--Equal access to services. A DSU must 
ensure that individuals from minority backgrounds have equal access to 
VR services.

(Approved by the Office of Management and Budget under control number 
1820-0508)

(Authority: 29 U.S.C. 726(a))



Sec. 361.84  Performance indicators.

    (a) The performance indicators establish what constitutes minimum 
compliance with the evaluation standards.
    (b) The performance indicators require a DSU to provide information 
on a variety of factors to enable the Secretary to measure compliance 
with the evaluation standards.
    (c) The performance indicators are as follows:
    (1) Employment outcomes.
    (i) Performance Indicator 1.1. The number of individuals exiting the 
VR program who achieved an employment outcome during the current 
performance period compared to the number of individuals who exit the VR 
program after achieving an employment outcome during the previous 
performance period.
    (ii) Performance Indicator 1.2. Of all individuals who exit the VR 
program after receiving services, the percentage who are determined to 
have achieved an employment outcome.
    (iii) Performance Indicator 1.3. Of all individuals determined to 
have achieved an employment outcome, the percentage who exit the VR 
program in competitive, self-, or BEP employment with earnings 
equivalent to at least the minimum wage.
    (iv) Performance Indicator 1.4. Of all individuals who exit the VR 
program in competitive, self-, or BEP employment with earnings 
equivalent to at least the minimum wage, the percentage who are 
individuals with significant disabilities.
    (v) Performance Indicator 1.5. The average hourly earnings of all 
individuals

[[Page 356]]

who exit the VR program in competitive, self-, or BEP employment with 
earnings levels equivalent to at least the minimum wage as a ratio to 
the State's average hourly earnings for all individuals in the State who 
are employed (as derived from the Bureau of Labor Statistics report 
``State Average Annual Pay'' for the most recent available year).
    (vi) Performance Indicator 1.6. Of all individuals who exit the VR 
program in competitive, self-, or BEP employment with earnings 
equivalent to at least the minimum wage, the difference between the 
percentage who report their own income as the largest single source of 
economic support at the time they exit the VR program and the percentage 
who report their own income as the largest single source of support at 
the time they apply for VR services.
    (2) Equal access to services--(i) Performance Indicator 2.1. The 
service rate for all individuals with disabilities from minority 
backgrounds as a ratio to the service rate for all non-minority 
individuals with disabilities.

(Approved by the Office of Management and Budget under control number 
1820-0508)

(Authority: 29 U.S.C. 726(a))



Sec. 361.86  Performance levels.

    (a) General. (1) Paragraph (b) of this section establishes 
performance levels for--
    (i) General or combined DSUs; and
    (ii) DSUs serving exclusively individuals who are visually impaired 
or blind.
    (2) The Secretary may establish, by regulations, new performance 
levels.
    (b) Performance levels for each performance indicator. (1)(i) The 
performance levels for Performance Indicators 1.1 through 1.6 are--

------------------------------------------------------------------------
                                     Performance level by type of DSU
     Performance indicator      ----------------------------------------
                                   General/Combined          Blind
------------------------------------------------------------------------
1.1............................  Equal or exceed      Same.
                                  previous
                                  performance period.
1.2............................  55.8%..............  68.9%.
1.3............................  72.6%..............  35.4%.
1.4............................  62.4%..............  89.0%.
1.5............................  .52 (Ratio)........  .59.
1.6............................  53.0 (Math.          30.4.
                                  Difference).
------------------------------------------------------------------------

    (ii) To achieve successful performance on Evaluation Standard 1 
(Employment outcomes), a DSU must meet or exceed the performance levels 
established for four of the six performance indicators in the evaluation 
standard, including meeting or exceeding the performance levels for two 
of the three primary indicators (Performance Indicators 1.3, 1.4, and 
1.5).
    (2)(i) The performance level for Performance Indicator 2.1 is--

------------------------------------------------------------------------
         Performance indicator                  Performance levels
------------------------------------------------------------------------
2.1....................................  .80 (Ratio).
------------------------------------------------------------------------

    (ii) To achieve successful performance on Evaluation Standard 2 
(Equal access), DSUs must meet or exceed the performance level 
established for Performance Indicator 2.1 or meet the performance 
requirement in paragraph (2)(iii) of this section.
    (iii) If a DSU's performance does not meet or exceed the performance 
level required for Performance Indicator 2.1, or if fewer than 100 
individuals from a minority population have exited the VR program during 
the reporting period, the DSU must describe the policies it has adopted 
or will adopt and the steps it has taken or will take to ensure that 
individuals with disabilities from minority backgrounds have equal 
access to VR services.

(Authority: 29 U.S.C. 726(a))



Sec. 361.88  Reporting requirements.

    (a) The Secretary requires that each DSU report within 60 days after 
the end of each fiscal year the extent to which the State is in 
compliance with the evaluation standards and performance indicators and 
include in this report the following RSA-911 data:
    (1) The number of individuals who exited the VR program in each 
closure category as specified in the definition of ``Exit the VR 
program'' under Sec. 361.81.
    (2) The number of individuals who exited the VR program in 
competitive, self-, or BEP employment with earnings at or above the 
minimum wage.
    (3) The number of individuals with significant disabilities who 
exited the VR program in competitive, self-, or BEP employment with 
earnings at or above the minimum wage.
    (4) The weekly earnings and hours worked of individuals who exited 
the VR program in competitive, self-, or

[[Page 357]]

BEP employment with earnings at or above the minimum wage.
    (5) The number of individuals who exited the VR program in 
competitive, self-, or BEP employment with earnings at or above the 
minimum wage whose primary source of support at the time they applied 
for VR services was ``personal income.''
    (6) The number of individuals who exited the VR program in 
competitive, self-, or BEP employment with earnings at or above the 
minimum wage whose primary source of support at closure was ``personal 
income.''
    (7) The number of individuals exiting the VR program who are 
individuals from a minority background.
    (8) The number of non-minority individuals exiting the VR program.
    (9) The number of individuals from a minority background exiting the 
VR program after receiving services under an IPE.
    (10) The number of non-minority individuals exiting the VR program 
after receiving services under an IPE.
    (b) In lieu of the report required in paragraph (a) of this section, 
a DSU may submit its RSA-911 data on tape, diskette, or any alternative 
electronic format that is compatible with RSA's capability to process 
such an alternative, as long as the tape, diskette, or alternative 
electronic format includes the data that--
    (1) Are required by paragraph (a)(1) through (10) of this section; 
and
    (2) Meet the requirements of paragraph (c) of this section.
    (c) Data reported by a DSU must be valid, accurate, and in a 
consistent format. If a DSU fails to submit data that are valid, 
accurate, and in a consistent format within the 60-day period, the DSU 
must develop a program improvement plan pursuant to Sec. 361.89(a).

(Approved by the Office of Management and Budget under control number 
1820-0508)

(Authority: 29 U.S.C. 726(b))



Sec. 361.89  Enforcement procedures.

    (a) If a DSU fails to meet the established performance levels on 
both evaluation standards as required by Sec. 361.82(b), the Secretary 
and the DSU must jointly develop a program improvement plan that 
outlines the specific actions to be taken by the DSU to improve program 
performance.
    (b) In developing the program improvement plan, the Secretary 
considers all available data and information related to the DSU's 
performance.
    (c) When a program improvement plan is in effect, review of the plan 
is conducted on a biannual basis. If necessary, the Secretary may 
request that a DSU make further revisions to the plan to improve 
performance. If the Secretary establishes new performance levels under 
Sec. 361.86(a)(2), the Secretary and the DSU must jointly modify the 
program improvement plan based on the new performance levels. The 
Secretary continues reviews and requests revisions until the DSU 
sustains satisfactory performance based on the current performance 
levels over a period of more than 1 year.
    (d) If the Secretary determines that a DSU with less than 
satisfactory performance has failed to enter into a program improvement 
plan or comply substantially with the terms and conditions of the 
program improvement plan, the Secretary, consistent with the procedures 
specified in Sec. 361.11, reduces or makes no further payments to the 
DSU under this program until the DSU has met one of these two 
requirements or raised its subsequent performance to meet the current 
overall minimum satisfactory level on the compliance indicators.

(Approved by the Office of Management and Budget under control number 
1820-0508)

(Authority: 29 U.S.C. 726(b) and (c))



           Sec. Appendix A to Part 361--Questions and Answers

    The following questions and answers provide a summary of some of the 
most common and critical questions that we received regarding this part 
361 and the applicable responses. As is evident from the responses, we 
maintain that redefining the term ``employment outcome'' for purposes of 
the VR program to mean outcomes that occur in integrated settings will 
promote the provision of opportunities for all VR-eligible individuals 
to pursue the types of jobs that generally are available to the public.

[[Page 358]]

      Is Extended Employment Still a Legitimate Employment Option?

    Yes. Employment in a sheltered setting is a legitimate and valuable 
employment option for individuals with disabilities. Implementation of 
these regulations will not change that fact. Individuals still may 
choose to pursue long-term extended employment outside of the VR 
program, and these regulations ensure that those individuals' needs are 
met by requiring the VR agency to make the necessary referral to local 
extended employment providers.

             Do the Regulations Restrict Individual Choice?

    No. We interpret the concept of individual choice in the Act as a 
choice among the employment outcomes under the VR program specified in 
the statute or by the Secretary in regulations.
    Extended employment (i.e., sheltered or non-integrated employment) 
remains both an initial step toward achieving integrated employment 
under the VR program and a long-term employment option through sources 
of support other than the VR program. In recognizing that some 
individuals with disabilities may wish to work in an extended employment 
setting, these regulations require the VR agency to ensure that these 
individuals are afforded the opportunity to do so by referring them to 
local extended employment providers. Those providers currently support 
the vast majority of sheltered workers through non-VR program resources. 
Moreover, persons wishing to prepare for integrated employment by 
initially working in an extended employment setting also may do so. In 
these cases, the VR agency cannot discontinue VR services until the 
individual transitions to integrated work in the community.

   Can State Agencies Refuse To Serve Those With the Most Significant 
                              Disabilities?

    No. Both the Act and regulations guard against that result. Persons 
with disabilities may not be excluded from the VR program based on an 
assumption or belief that the individual is incapable of working in an 
integrated setting. Rather, State units are required to establish clear 
and convincing evidence that an individual is incapable of achieving an 
employment outcome, for purposes of the VR program, and must conduct a 
trial work assessment of the individual's abilities before it can refuse 
services to any individual who it initially believes is incapable of 
working in an intergrated job setting.

 Are Homemaker and Unpaid Family Worker Considered Employment Outcomes 
                     for Purposes of the VR Program?

    Yes. The chief purpose of the regulations is to ensure that 
individuals with disabilities participating in the VR program are able 
to pursue the same type of employment opportunities that are available 
to the general public. Extended employment jobs, unlike homemakers and 
unpaid family workers, are primarily reserved for those with 
disabilities.

      Will the Regulations Serve To Close Down Sheltered Workshops?

    No. Sheltered workshops are primarily supported by other State, 
local, and private resources and rely very little on VR program funds. 
Persons who prefer to work in extended employment on a long-term basis 
are assured access to local extended employment programs through the 
referral requirements in the regulations. Also, those participants in 
the VR program who can best prepare for integrated employment by working 
in an extended employment setting as part of a training and assessment 
program are able to follow that path as well. Thus, extended employment 
programs and sheltered workshops continue to serve essentially the same 
role that they currently serve.

[66 FR 7253, Jan. 22, 2001]



PART 363_THE STATE SUPPORTED EMPLOYMENT SERVICES PROGRAM--Table of 
Contents



                            Subpart A_General

Sec.
363.1 What is the State Supported Employment Services Program?
363.2 Who is eligible for an award?
363.3 Who is eligible for services?
363.4 What are the authorized activities under a State Supported 
          Employment Services grant?
363.5 What regulations apply?
363.6 What definitions apply?

              Subpart B_How Does a State Apply for a Grant?

363.10 What documents must a State submit to receive a grant?
363.11 What information and assurances must be included in the State 
          plan supplement?

             Subpart C_How Does the Secretary Make a Grant?

363.20 How does the Secretary allocate funds?
363.21 How does the Secretary reallocate funds?

Subparts D-E [Reserved]

[[Page 359]]

      Subpart F_What Post-Award Conditions Must Be Met by a State?

363.50 What collaborative agreements must the State develop?
363.51 What are the allowable administrative costs?
363.52 What are the information collection and reporting requirements?
363.53 What special conditions apply to services and activities under 
          this program?
363.54 What requirements must a State meet before it provides for the 
          transition of an individual to extended services?
363.55 What are the requirements for successfully rehabilitating an 
          individual in supported employment?
363.56 What notice requirements apply to this program?

    Authority: 29 U.S.C. 795j-q, unless otherwise noted.

    Source: 59 FR 8331, Feb. 18, 1993, unless otherwise noted.



                            Subpart A_General



Sec. 363.1  What is the State Supported Employment Services Program?

    Under the State Supported Employment Services Program, the Secretary 
provides grants to assist States in developing and implementing 
collaborative programs with appropriate entities to provide programs of 
supported employment services for individuals with the most severe 
disabilities who require supported employment services to enter or 
retain competitive employment.

(Authority: 29 U.S.C. 795j)



Sec. 363.2  Who is eligible for an award?

    Any State is eligible for an award under this program.

(Authority: 29 U.S.C. 795n)



Sec. 363.3  Who is eligible for services?

    A State may provide services under this program to any individual 
if--
    (a) The individual has been determined eligible for vocational 
rehabilitation services in accordance with the criteria in section 
102(a)(1) of the Act;
    (b) The individual has been determined to be an individual with the 
most severe disabilities; and
    (c) Supported employment has been identified as the appropriate 
rehabilitation objective for the individual on the basis of a 
comprehensive assessment of rehabilitation needs, including an 
evaluation of rehabilitation, career, and job needs.

(Authority: 29 U.S.C. 795m)



Sec. 363.4  What are the authorized activities under a State Supported
Employment Services grant?

    Under this program, the following activities are authorized:
    (a) Any particularized assessment that is needed to supplement the 
comprehensive assessment of rehabilitation needs done under 34 CFR part 
361 and that is provided subsequent to the development of the 
individualized written rehabilitation program. The supplementary 
assessment may be provided in circumstances such as the following:
    (1) A reassessment of the suitability of the placement is warranted.
    (2) There is a change in the individual's medical condition.
    (b) Development of and placement in jobs for individuals with the 
most severe disabilities.
    (c) Provision of supported employment services that are needed to 
support individuals with the most severe disabilities in employment, 
such as--
    (1) Intensive on-the-job skills training and other training provided 
by skilled job trainers, co-workers, and other qualified individuals, 
and other services specified in section 103(a) of the Act in order to 
achieve and maintain job stability;
    (2) Follow-up services, including regular contact with employers, 
trainees with the most severe disabilities, parents, guardians or other 
representatives of trainees, and other suitable professional and 
informed advisors in order to reinforce and stabilize the job placement; 
and
    (3) Discrete post-employment services following transition that are 
unavailable from an extended services provider and that are necessary to 
maintain the job placement, such as job station redesign, repair and 
maintenance of assistive technology, and replacement of prosthetic and 
orthotic devices.

(Authority: 29 U.S.C. 795l)

[[Page 360]]



Sec. 363.5  What regulations apply?

    The following regulations apply to the State Supported Employment 
Services Program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 76 (State-Administered Programs).
    (2) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (3) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (4) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (5) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (6) 34 CFR part 82 (New Restrictions on Lobbying).
    (7) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (8) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 363.
    (c) The following regulations in 34 CFR part 361 (The State 
Vocational Rehabilitation Services Program): Sec. Sec. 361.31; 361.32; 
361.33; 361.34; 361.35; 361.39; 361.40; 361.41; 361.42; 361.47(a); 
361.48; and 361.49.
    Note: Many of the regulatory provisions cross-referenced in Sec. 
363.5(c) are affected by statutory changes made by the Rehabilitation 
Act Amendments of 1992. If these provisions conflict with statutory 
language, they are superseded by the statutory language. Program 
regulations for part 361 are being amended to implement statutory 
changes. When final regulations for part 361 are published, these cross-
references will be corrected, if necessary.

(Authority: 29 U.S.C. 795j and 711(c))



Sec. 363.6  What definitions apply?

    (a) Definitions in 34 CFR part 361. The following terms used in this 
part are defined in 34 CFR 369.4(b):

Act
Designated State unit
Individual with disabilities
Individual with severe disabilities
State plan

    (b) Definitions in EDGAR. The following terms used in this part are 
defined in 34 CFR 77.1:

Fiscal Year
Nonprofit
Private Secretary
State

    (c) Other definitions. The following definitions also apply to this 
part:
    (1) Supported employment means--
    (i) Competitive employment in an integrated setting with ongoing 
support services for individuals with the most severe disabilities--
    (A) For whom competitive employment has not traditionally occurred 
or for whom competitive employment has been interrupted or intermittent 
as a result of a severe disability; and
    (B) Who, because of the nature and severity of their disabilities, 
need intensive supported employment services from the designated State 
unit and extended services after transition in order to perform this 
work; or
    (ii) Transitional employment for individuals with the most severe 
disabilities due to mental illness.
    (2) As used in the definition of ``Supported employment''--
    (i) Competitive employment means work--
    (A) In the competitive labor market that is performed on a full-time 
or part-time basis in an integrated setting; and
    (B) For which an individual is compensated at or above the minimum 
wage, but not less than the customary or usual wage paid by the employer 
for the same or similar work performed by individuals who are not 
disabled.
    (ii) Integrated setting means a setting typically found in the 
community in which an individual with the most severe disabilities 
interacts with non-disabled individuals, other than non-disabled 
individuals who are providing services to that individual, to the same 
extent that non-disabled individuals in comparable positions interact 
with other persons.
    (iii) Supported employment services means on-going support services 
provided by the designated State unit with funds under this part--
    (A) For a period not to exceed 18 months, unless under special 
circumstances a longer period to achieve

[[Page 361]]

job stabilization has been jointly agreed to by the individual and the 
rehabilitation counselor and established in the individualized written 
rehabilitation program, before an individual with the most severe 
disabilities makes the transition to extended services; and
    (B) As discrete post-employment services following transition in 
accordance with Sec. 363.4(c)(3);
    (iv) Extended services means on-going support services and other 
appropriate services provided by a State agency, a private nonprofit 
organization, employer, or any other appropriate resource, from funds 
other than funds received under this part, part 381, part 376, or part 
380, after an individual with the most severe disabilities has made the 
transition from State vocational rehabilitation agency support; and
    (v) Transitional employment means a series of temporary job 
placements in competitive work in an integrated work setting with on-
going support services for individuals with the most severe disabilities 
due to mental illness. In transitional employment, the provision of on-
going support services must include continuing sequential job placements 
until job permanency is achieved.
    (3) On-going support services means services that are--
    (i) Needed to support and maintain an individual with the most 
severe disabilities in supported employment;
    (ii) Based on a determination by the designated State unit of the 
individual's needs as specified in an individualized written 
rehabilitation program; and
    (iii) Furnished by the designated State unit from the time of job 
placement until transition to extended services, except as provided in 
Sec. 363.4(c)(3) and, following transition, by one or more extended 
services providers throughout the individual's term of employment in a 
particular job placement or multiple placements if those placements are 
being provided under a program of transitional employment. On-going 
support services must include, at a minimum, twice-monthly monitoring at 
the work site of each individual in supported employment to assess 
employment stability, unless under special circumstances, especially at 
the request of the individual, the individualized written rehabilitation 
program provides for off-site monitoring, and, based upon that 
assessment, the coordination or provision of specific services at or 
away from the work site, that are needed to maintain employment 
stability. If off-site monitoring is determined to be appropriate, it 
must, at a minimum, consist of two meetings with the individual and one 
contact with the employer each month. On-going support services consist 
of--
    (A) Any particularized assessment needed to supplement the 
comprehensive assessment of rehabilitation needs;
    (B) The provision of skilled job trainers who accompany the 
individual for intensive job skill training at the work site;
    (C) Job development and placement;
    (D) Social skills training;
    (E) Regular observation or supervision of the individual;
    (F) Follow-up services such as regular contact with the employers, 
the individuals, the parents, family members, guardians, advocates or 
authorized representatives of the individuals, and other suitable 
professional and informed advisors, in order to reinforce and stabilize 
the job placement;
    (G) Facilitation of natural supports at the worksite;
    (H) Any other service identified in the scope of rehabilitation 
services described in 34 CFR part 361; and
    (I) Any service similar to the foregoing services.

(Authority: 29 U.S.C. 706(18), 711(c), and 795j)

[59 FR 8331, Feb. 18, 1993, as amended at 62 FR 6363, Feb. 11, 1997]



              Subpart B_How Does a State Apply for a Grant?



Sec. 363.10  What documents must a State submit to receive a grant?

    To receive a grant under this part, a State must submit to the 
Secretary, as part of the State plan under 34 CFR part 361, a State plan 
supplement that meets the requirements of Sec. 363.11.

(Authority: 29 U.S.C. 795n)

[[Page 362]]



Sec. 363.11  What information and assurances must be included in the
State plan supplement?

    Each State plan supplement must include the following:
    (a) Designated State agency. Designate the State unit or units for 
vocational rehabilitation services identified in the State plan 
submitted under 34 CFR part 361 as the State agency or agencies to 
administer this program.
    (b) Results of needs assessment. Summarize the results of the needs 
assessment of individuals with severe disabilities conducted under title 
I of the Act with respect to the rehabilitation and career needs of 
individuals with severe disabilities and the need for supported 
employment services. The results of the needs assessment must address 
the coordination and use of information within the State relating to 
section 618(b)(1)(c) of the Individuals with Disabilities Education Act.
    (c) Quality, scope, and extent of services. Describe the quality, 
scope, and extent of supported employment services to be provided to 
individuals with the most severe disabilities under this program. The 
description must address the timing of the transition to extended 
services referred to in Sec. 363.50(b)(2).
    (d) Distribution of funds. Describe the State's goals and plans with 
respect to the distribution of funds received under Sec. 363.20.
    (e) Collaboration. Demonstrate evidence of the efforts of the 
designated State unit to identify and make arrangements, including 
entering into cooperative agreements, with--
    (1) Other State agencies and other appropriate entities to assist in 
the provision of supported employment services; and
    (2) Other public or non-profit agencies or organizations within the 
State, employers, natural supports, and other entities with respect to 
the provision of extended services.
    (f) Minority outreach. Describe the designated State unit's outreach 
procedures for identifying and serving individuals with the most severe 
disabilities who are minorities.
    (g) Assurances. Provide assurances that--
    (1) Funds made available under this part will only be used to 
provide supported employment services authorized under the Act to 
individuals who are eligible under this part to receive the services;
    (2) The comprehensive assessments of individuals with severe 
disabilities conducted under section 102(b)(1)(A) and funded under title 
I of the Act will include consideration of supported employment as an 
appropriate rehabilitation objective;
    (3) An individualized written rehabilitation program, as required by 
section 102 of the Act, will be developed and updated, using funds under 
title I, that--
    (i) Specifies the supported employment services to be provided to 
each individual served under this program, including a description of 
the expected extended services needed, which may include natural 
supports, and an identification of the State, Federal, or private 
programs or other resources that will provide the extended services, 
including a description of the basis for determining that extended 
services are available, or to the extent that it is not possible to 
identify the source of extended services at the time the individualized 
written rehabilitation program is developed, a statement describing the 
basis for concluding that there is a reasonable expectation that sources 
will become available;
    (ii) Provides for periodic monitoring to ensure that each individual 
with severe disabilities is making satisfactory progress toward meeting 
the weekly work requirement established in the individualized written 
rehabilitation program by the time of transition to extended services;
    (4) The State will use funds provided under this part only to 
supplement, and not supplant, the funds provided under title I of the 
Act, in providing supported employment services specified in the 
individualized written rehabilitation program;
    (5) Services provided under an individualized written rehabilitation 
program will be coordinated with services provided under other 
individualized plans established under other Federal or State programs;

[[Page 363]]

    (6) To the extent job skills training is provided, the training will 
be provided on-site;
    (7) Supported employment services will include placement in an 
integrated setting for the maximum number of hours possible based on the 
unique strengths, resources, interests, concerns, abilities, and 
capabilities of individuals with the most severe disabilities;
    (8) The designated State agency or agencies will expend no more than 
5 percent of the State's allotment under this part for administrative 
costs of carrying out this program; and
    (9) The public participation requirements of section 101(a)(23) are 
met.
    (h) Other information. Contain any other information and be 
submitted in the form and in accordance with the procedures that the 
Secretary may require.

(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: 29 U.S.C. 795n)



             Subpart C_How Does the Secretary Make a Grant?



Sec. 363.20  How does the Secretary allocate funds?

    The Secretary allocates funds under this program in accordance with 
section 632(a) of the Act.

(Authority: 29 U.S.C. 795k)



Sec. 363.21  How does the Secretary reallocate funds?

    The Secretary reallocates funds in accordance with section 632(b) of 
the Act.

(Authority: 29 U.S.C. 795k)

Subparts D-E [Reserved]



      Subpart F_What Post-Award Conditions Must Be Met by a State?



Sec. 363.50  What collaborative agreements must the State develop?

    (a) A designated State unit must enter into one or more written 
cooperative agreements or memoranda of understanding with other 
appropriate State agencies, private nonprofit organizations, and other 
available funding sources to ensure collaboration in a plan to provide 
supported employment services and extended services to individuals with 
the most severe disabilities.
    (b) A cooperative agreement or memorandum of understanding must, at 
a minimum, specify the following:
    (1) The supported employment services to be provided by the 
designated State unit with funds received under this part.
    (2) The extended services to be provided by relevant State agencies, 
private nonprofit organizations, or other sources following the 
cessation of supported employment services under this part.
    (3) The estimated funds to be expended by the participating party or 
parties in implementing the agreement or memorandum.
    (4) The projected number of individuals with the most severe 
disabilities who will receive supported employment services and extended 
services under the agreement or memorandum.

(Authority: 29 U.S.C. 795n)



Sec. 363.51  What are the allowable administrative costs?

    (a) Administrative costs--general. Expenditures are allowable for 
the following administrative costs:
    (1) Administration of the State plan supplement for this program.
    (2) Planning program development, and personnel development to 
implement a system of supported employment services.
    (3) Monitoring, supervision, and evaluation of this program.
    (4) Technical assistance to other State agencies, private nonprofit 
organizations, and businesses and industries.
    (b) Limitation on administrative costs. Not more than five percent 
of a State's allotment may be expended for administrative costs for 
carrying out this program.

(Authority: 29 U.S.C. 795n)



Sec. 363.52  What are the information collection and reporting 
requirements?

    (a) A State shall collect and report information as required under 
section

[[Page 364]]

13 of the Act for each individual with the most severe disabilities 
served under this program.
    (b) The State shall collect and report separately information for
    (1) Supported employment clients served under this program; and
    (2) Supported employment clients served under 34 CFR part 361.

(Approved by the Office of Management and Budget under control number 
1820-0551)

(Authority: 29 U.S.C. 712 and 795o)



Sec. 363.53  What special conditions apply to services and activities 
under this program?

    Each grantee shall coordinate the services provided to an individual 
under this part and under 34 CFR part 361 to ensure that the services 
are complementary and not duplicative.

(Authority: 29 U.S.C. 711(c) and 795p)



Sec. 363.54  What requirements must a State meet before it provides for
the transition of an individual to extended services?

    A designated State unit must provide for the transition of an 
individual with the most severe disabilities to extended services no 
later than 18 months after placement in supported employment, unless a 
longer period is established in the individualized written 
rehabilitation program, and only if the individual has made substantial 
progress toward meeting the hours-per-week work goal provided for in the 
individualized written rehabilitation program, the individual is 
stabilized in the job, and extended services are available and can be 
provided without a hiatus in services.

(Authority: 29 U.S.C. 795n and 711(c))



Sec. 363.55  What are the requirements for successfully rehabilitating
an individual in supported employment?

    An individual with the most severe disabilities who is receiving 
supported employment services is considered to be successfully 
rehabilitated if the individual maintains a supported employment 
placement for 60 days after making the transition to extended services.

(Authority: 29 U.S.C. 711(c))



Sec. 363.56  What notice requirements apply to this program?

    Each grantee must advise applicants for or recipients of services 
under this part, or as appropriate, the parents, family members, 
guardians, advocates, or authorized representatives of those 
individuals, of the availability and purposes of the State's Client 
Assistance Program, including information on seeking assistance from 
that program.

(Authority: 29 U.S.C. 718a)



PART 364_STATE INDEPENDENT LIVING SERVICES PROGRAM AND CENTERS FOR 
INDEPENDENT LIVING PROGRAM: GENERAL PROVISIONS--Table of Contents



                            Subpart A_General

Sec.
364.1 What programs are covered?
364.2 What is the purpose of the programs authorized by chapter 1 of 
          title VII?
364.3 What regulations apply?
364.4 What definitions apply?
364.5 What is program income and how may it be used?
364.6 What requirements apply to the obligation of Federal funds and 
          program income?

            Subpart B_What Are the Application Requirements?

364.10 What are the application requirements?
364.11 When must the State plan be submitted for approval?
364.12 How does the Secretary approve State plans?
364.13 Under what circumstances may funds be withheld, reduced, limited, 
          or terminated?

             Subpart C_What Are the State Plan Requirements?

364.20 What are the general requirements for a State plan?
364.21 What are the requirements for the Statewide Independent Living 
          Council (SILC)?
364.22 What is the State's responsibility for administration of the 
          programs authorized by chapter 1 of title VII?
364.23 What are the staffing requirements?
364.24 What assurances are required for staff development?
364.25 What are the requirements for a statewide network of centers for 
          independent living?

[[Page 365]]

364.26 What are the requirements for cooperation, coordination, and 
          working relationships?
364.27 What are the requirements for coordinating Independent Living 
          (IL) services?
364.28 What requirements relate to IL services for older individuals who 
          are blind?
364.29 What are the requirements for coordinating Federal and State 
          sources of funding?
364.30 What notice must be given about the Client Assistance Program 
          (CAP)?
364.31 What are the affirmative action requirements?
364.32 What are the requirements for outreach?
364.33 What is required to meet minority needs?
364.34 What are the fiscal and accounting requirements?
364.35 What records must be maintained?
364.36 What are the reporting requirements?
364.37 What access to records must be provided?
364.38 What methods of evaluation must the State plan include?
364.39 What requirements apply to the administration of grants under the 
          Centers for Independent Living program?
364.40 Who is eligible to receive IL services?
364.41 What assurances must be included regarding eligibility?
364.42 What objectives and information must be included in the State 
          plan?
364.43 What requirements apply to the provision of State IL services?

          Subpart D_What Conditions Must Be Met After an Award?

364.50 What requirements apply to the processing of referrals and 
          applications?
364.51 What requirements apply to determinations of eligibility or 
          ineligibility?
364.52 What are the requirements for an IL plan?
364.53 What records must be maintained for the individual?
364.54 What are the durational limitations on IL services?
364.55 What standards shall service providers meet?
364.56 What are the special requirements pertaining to the protection, 
          use, and release of personal information?
364.57 What functions and responsibilities may the State delegate?
364.58 What appeal procedures must be available to consumers?
364.59 May an individual's ability to pay be considered in determining 
          his or her participation in the costs of IL services?

    Authority: 29 Awarding Grants U.S.C. 796-796f-5, unless otherwise 
noted.

    Source: 59 FR 41887, Aug. 15, 1994, unless otherwise noted.



                            Subpart A_General



Sec. 364.1  What programs are covered?

    (a) This part includes general requirements applicable to the 
conduct of the following programs authorized under title VII of the 
Rehabilitation Act of 1973, as amended:
    (1) The State Independent Living Services (SILS) program (34 CFR 
part 365).
    (2) The Centers for Independent Living (CIL) program (34 CFR part 
366).
    (b) Some provisions in this part also are made specifically 
applicable to the Independent Living Services for Older Individuals Who 
Are Blind (OIB) program (34 CFR part 367).

(Authority: 29 U.S.C. 711(c) and 796-796f-5)



Sec. 364.2  What is the purpose of the programs authorized by chapter
1 of title VII?

    The purpose of the SILS and CIL programs authorized by chapter 1 of 
title VII of the Act is to promote a philosophy of independent living 
(IL), including a philosophy of consumer control, peer support, self-
help, self-determination, equal access, and individual and system 
advocacy, to maximize the leadership, empowerment, independence, and 
productivity of individuals with significant disabilities, and to 
promote and maximize the integration and full inclusion of individuals 
with significant disabilities into the mainstream of American society by 
providing financial assistance to States--
    (a) For providing, expanding, and improving the provision of IL 
services;
    (b) To develop and support statewide networks of centers for 
independent living (centers); and
    (c) For improving working relationships among--
    (1) SILS programs;
    (2) Centers;
    (3) Statewide Independent Living Councils (SILCs) established under 
section 705 of the Act;
    (4) State vocational rehabilitation (VR) programs receiving 
assistance under title I and under part C of title VI of the Act;
    (5) Client assistance programs (CAPs) receiving assistance under 
section 112 of the Act;

[[Page 366]]

    (6) Programs funded under other titles of the Act;
    (7) Programs funded under other Federal laws; and
    (8) Programs funded through non-Federal sources.

(Authority: 29 U.S.C. 796)



Sec. 364.3  What regulations apply?

    The following regulations apply to the SILS and CIL programs:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations), with respect 
to grants or subgrants to an eligible agency that is not a State or 
local government or Indian tribal organization.
    (2) 34 CFR part 75 (Direct Grant Programs), with respect to grants 
under subparts B and C of 34 CFR part 366.
    (3) 34 CFR part 76 (State-Administered Programs), with respect to 
grants under 34 CFR part 365 and subpart D of 34 CFR part 366.
    (4) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (5) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (6) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments), with respect 
to grants to an eligible agency that is a State or local government or 
Indian tribal organization.
    (7) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (8) 34 CFR part 82 (New Restrictions on Lobbying).
    (9) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (10) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 364.
    (c) The regulations in 34 CFR parts 365 and 366 as applicable.

(Authority: 29 U.S.C. 711(c))



Sec. 364.4  What definitions apply?

    (a) Definitions in EDGAR. The following terms used in this part and 
in 34 CFR parts 365, 366, and 367 are defined in 34 CFR 77.1:

Applicant
Application
Award
Department
EDGAR
Fiscal year
Nonprofit
Private
Project
Public
Secretary

    (b) Other definitions. The following definitions also apply to this 
part and to 34 CFR parts 365, 366, and 367:
    Act means the Rehabilitation Act of 1973, as amended.
    Administrative support services means assistance to support IL 
programs and the activities of centers and may include financial and 
technical assistance in planning, budget development, and evaluation of 
center activities, and support for financial management (including 
audits), personnel development, and recordkeeping activities.


(Authority: 29 U.S.C. 796c(c)(2))

    Advocacy means pleading an individual's cause or speaking or writing 
in support of an individual. To the extent permitted by State law or the 
rules of the agency before which an individual is appearing, a non-
lawyer may engage in advocacy on behalf of another individual. Advocacy 
may--
    (1) Involve representing an individual--
    (i) Before private entities or organizations, government agencies 
(whether State, local, or Federal), or in a court of law (whether State 
or Federal); or
    (ii) In negotiations or mediation, in formal or informal 
administrative proceedings before government agencies (whether State, 
local, or Federal), or in legal proceedings in a court of law; and
    (2) Be on behalf of--
    (i) A single individual, in which case it is individual advocacy;
    (ii) A group or class of individuals, in which case it is systems 
(or systemic) advocacy; or
    (iii) Oneself, in which case it is self advocacy.

[[Page 367]]

    Attendant care means a personal assistance service provided to an 
individual with significant disabilities in performing a variety of 
tasks required to meet essential personal needs in areas such as 
bathing, communicating, cooking, dressing, eating, homemaking, 
toileting, and transportation.


(Authority: 20 U.S.C. 706(30)(B)(vi))

    Center for independent living means a consumer-controlled, 
community-based, cross-disability, nonresidential, private nonprofit 
agency that--
    (1) Is designed and operated within a local community by individuals 
with disabilities; and
    (2) Provides an array of IL services.


(Authority: 29 U.S.C. 796a(1))

    Consumer control means, with respect to a center or eligible agency, 
that the center or eligible agency vests power and authority in 
individuals with disabilities, including individuals who are or have 
been recipients of IL services.


(Authority: 29 U.S.C. 796a(2))

    Cross-disability means, with respect to a center, that a center 
provides IL services to individuals representing a range of significant 
disabilities and does not require the presence of one or more specific 
significant disabilities before determining that an individual is 
eligible for IL services.


(Authority: 29 U.S.C. 796a(1))

    Designated State agency or State agency means the sole State agency 
designated to administer (or supervise local administration of) the 
State plan for VR services. The term includes the State agency for 
individuals who are blind, if that agency has been designated as the 
sole State agency with respect to that part of the State VR plan 
relating to the vocational rehabilitation of individuals who are blind.


(Authority: 29 U.S.C. 706(3) and 721(a)(1)(A))

    Designated State unit means either--
    (1) The State agency or the bureau, division, or other 
organizational unit within a State agency that is primarily concerned 
with the vocational rehabilitation, or vocational and other 
rehabilitation, of individuals with disabilities and that is responsible 
for the administration of the VR program of the State agency; or
    (2) The independent State commission, board, or other agency that 
has the vocational rehabilitation, or vocational and other 
rehabilitation, of individuals with disabilities as its primary 
function.


(Authority: 29 U.S.C. 706(3) and 721(a)(2)(A))

    Eligible agency means a consumer-controlled, community-based, cross-
disability, nonresidential, private, nonprofit agency.


(Authority: 29 U.S.C. 796f-5)

    Independent living core services mean, for purposes of services that 
are supported under the SILS or CIL programs--
    (1) Information and referral services;
    (2) IL skills training;
    (3) Peer counseling, including cross-disability peer counseling; and
    (4) Individual and systems advocacy.


(Authority: 29 U.S.C. 706(29))

    Independent living services includes the independent living core 
services and--
    (1) Counseling services, including psychological, psychotherapeutic, 
and related services;
    (2) Services related to securing housing or shelter, including 
services related to community group living, that are supportive of the 
purposes of the Act, and adaptive housing services, including 
appropriate accommodations to and modifications of any space used to 
serve, or to be occupied by, individuals with significant disabilities;
    (3) Rehabilitation technology;
    (4) Mobility training;
    (5) Services and training for individuals with cognitive and sensory 
disabilities, including life skills training and interpreter and reader 
services;
    (6) Personal assistance services, including attendant care and the 
training of personnel providing these services;
    (7) Surveys, directories, and other activities to identify 
appropriate housing, recreation opportunities, and accessible 
transportation, and other support services;

[[Page 368]]

    (8) Consumer information programs on rehabilitation and IL services 
available under the Act, especially for minorities and other individuals 
with significant disabilities who have traditionally been unserved or 
underserved by programs under the Act;
    (9) Education and training necessary for living in a community and 
participating in community activities;
    (10) Supported living;
    (11) Transportation, including referral and assistance for 
transportation;
    (12) Physical rehabilitation;
    (13) Therapeutic treatment;
    (14) Provision of needed prostheses and other appliances and 
devices;
    (15) Individual and group social and recreational services;
    (16) Training to develop skills specifically designed for youths who 
are individuals with significant disabilities to promote self-awareness 
and esteem, develop advocacy and self-empowerment skills, and explore 
career options;
    (17) Services for children;
    (18) Services under other Federal, State, or local programs designed 
to provide resources, training, counseling, or other assistance of 
substantial benefit in enhancing the independence, productivity, and 
quality of life of individuals with significant disabilities;
    (19) Appropriate preventive services to decrease the need of 
individuals with significant disabilities assisted under the Act for 
similar services in the future;
    (20) Community awareness programs to enhance the understanding and 
integration into society of individuals with significant disabilities; 
and
    (21) Any other services that may be necessary to improve the ability 
of an individual with a significant disability to function, continue 
functioning, or move toward functioning independently in the family or 
community or to continue in employment and that are not inconsistent 
with any other provisions of the Act.


(Authority: 29 U.S.C. 796e-2(1))

    Individual with a disability means an individual who--
    (1) Has a physical, mental, cognitive, or sensory impairment that 
substantially limits one or more of the individual's major life 
activities;
    (2) Has a record of such an impairment; or
    (3) Is regarded as having such an impairment.


(Authority: 29 U.S.C. 706(8)(B))

    Individual with a significant disability means an individual with a 
severe physical, mental, cognitive, or sensory impairment whose ability 
to function independently in the family or community or whose ability to 
obtain, maintain, or advance in employment is substantially limited and 
for whom the delivery of IL services will improve the ability to 
function, continue functioning, or move toward functioning independently 
in the family or community or to continue in employment.


(Authority: 29 U.S.C. 706(15)(B))

    Legally authorized advocate or representative means an individual 
who is authorized under State law to act or advocate on behalf of 
another individual. Under certain circumstances, State law permits only 
an attorney, legal guardian, or individual with a power of attorney to 
act or advocate on behalf of another individual. In other circumstances, 
State law may permit other individuals to act or advocate on behalf of 
another individual.


(Authority: 29 U.S.C. 711(c))

    Minority group means Alaskan Natives, American Indians, Asian 
Americans, Blacks (African Americans), Hispanic Americans, Native 
Hawaiians, and Pacific Islanders.
    Nonresidential means, with respect to a center, that the center, as 
of October 1, 1994, does not operate or manage housing or shelter for 
individuals as an IL service on either a temporary or long-term basis 
unless the housing or shelter is--
    (1) Incidental to the overall operation of the center;
    (2) Necessary so that the individual may receive an IL service; and
    (3) Limited to a period not to exceed eight weeks during any six-
month period.


(Authority: 29 U.S.C. 796a, 796f-1(f) and 706f-2(f))


[[Page 369]]


    Peer relationships mean relationships involving mutual support and 
assistance among individuals with significant disabilities who are 
actively pursuing IL goals.
    Peer role models means individuals with significant disabilities 
whose achievements can serve as a positive example for other individuals 
with significant disabilities.
    Personal assistance services means a range of IL services, provided 
by one or more persons, designed to assist an individual with a 
significant disability to perform daily living activities on or off the 
job that the individual would typically perform if the individual did 
not have a disability. These IL services must be designed to increase 
the individual's control in life and ability to perform everyday 
activities on or off the job.


(Authority: 29 U.S.C. 706(11))

    Service provider means--
    (1) A designated State unit (DSU) that directly provides IL services 
to individuals with significant disabilities;
    (2) A center that receives financial assistance under part B or C of 
chapter 1 of title VII of the Act; or
    (3) Any other entity or individual that meets the requirements of 
Sec. 364.43(e) and provides IL services under a grant or contract from 
the DSU pursuant to Sec. 364.43(b).


(Authority: 29 U.S.C. 711(c) and 796(e))

    Significant disability means a severe physical, mental, cognitive, 
or sensory impairment that substantially limits an individual's ability 
to function independently in the family or community or to obtain, 
maintain, or advance in employment.
    State means, except for sections 711(a)(2)(A) and 721(c)(2)(A) and 
where otherwise specified in the Act, in addition to each of the several 
States of the United States, the District of Columbia, the Commonwealth 
of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, 
the Commonwealth of the Northern Mariana Islands, and the Republic of 
Palau (until the Compact of Free Association with Palau takes effect).


(Authority: 29 U.S.C. 706(16))

    State plan means the State IL plan required under section 704 of 
title VII of the Act.
    Transportation means travel and related expenses that are necessary 
to enable an individual with a significant disability to benefit from 
another IL service and travel and related expenses for an attendant or 
aide if the services of that attendant or aide are necessary to enable 
an individual with a significant disability to benefit from that IL 
service.


(Authority: 29 U.S.C. 706(30)(B)(xi) and 711(c))

    Unserved and underserved groups or populations, with respect to 
groups or populations of individuals with significant disabilities in a 
State, include, but are not limited to, groups or populations of 
individuals with significant disabilities who--
    (1) Have cognitive and sensory impairments;
    (2) Are members of racial and ethnic minority groups;
    (3) Live in rural areas; or
    (4) Have been identified by the eligible agency as unserved or 
underserved within a center's project area.

(Authority: 29 U.S.C. 706, 711(c), and 796f-796f-5)



Sec. 364.5  What is program income and how may it be used?

    (a) Definition. Program income means gross income received by a 
grantee under title VII of the Act that is directly generated by an 
activity supported under 34 CFR part 365, 366, or 367.
    (b) Sources. Sources of program income include, but are not limited 
to, payments received from workers' compensation funds or fees for 
services to defray part or all of the costs of services provided to 
particular consumers.
    (c) Use of program income. (1) Program income, whenever earned, must 
be used for the provision of IL services or the administration of the 
State plan, as appropriate.
    (2) A service provider is authorized to treat program income as--
    (i) A deduction from total allowable costs charged to a Federal 
grant, in accordance with 34 CFR 80.25(g)(1); or

[[Page 370]]

    (ii) An addition to the grant funds to be used for additional 
allowable program expenditures, in accordance with 34 CFR 80.25(g)(2).
    (3) Program income may not be used to meet the non-Federal share 
requirement under 34 CFR 365.12(b).

(Authority: 29 U.S.C. 711(c); 34 CFR 80.25)



Sec. 364.6  What requirements apply to the obligation of Federal funds
and program income?

    (a) Except as provided in paragraph (b) of this section, any Federal 
funds, including reallotted funds, that are appropriated for a fiscal 
year to carry out a program under 34 CFR part 365, 366, or 367 that are 
not obligated or expended by the DSU or center prior to the beginning of 
the succeeding fiscal year, and any program income received during a 
fiscal year that is not obligated or expended by the DSU or center prior 
to the beginning of the succeeding fiscal year in which the program 
income was received, remain available for obligation and expenditure by 
the DSU or center during that succeeding fiscal year.
    (b) Federal funds appropriated for a fiscal year under part B of 
chapter 1 and under chapter 2 of title VII of the Act remain available 
for obligation in the succeeding fiscal year only to the extent that the 
DSU complied with any matching requirement by obligating, in accordance 
with 34 CFR 76.707, the non-Federal share in the fiscal year for which 
the funds were appropriated.

(Authority: 29 U.S.C. 718)



            Subpart B_What Are the Application Requirements?



Sec. 364.10  What are the application requirements?

    To receive a grant from a State's allotment of funds under parts B 
and C of chapter 1 of title VII of the Act and 34 CFR parts 365 and 366, 
a State shall submit to the Secretary, and obtain approval of, a three-
year State plan meeting the requirements in subpart C of this part.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(a)(1))



Sec. 364.11  When must the State plan be submitted for approval?

    The designated State unit (DSU) shall submit to the Secretary for 
approval the three-year State plan no later than July 1 of the year 
preceding the first fiscal year of the three-year period for which the 
State plan is submitted.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(a)(4))



Sec. 364.12  How does the Secretary approve State plans?

    (a) General. The Secretary approves a State plan that the Secretary 
determines meets the requirements of section 704 of the Act and subparts 
B through D of this part and disapproves a plan that does not meet these 
requirements.
    (b) Informal resolution. If the Secretary intends to disapprove the 
State plan, the Secretary attempts to resolve disputed issues informally 
with State officials.
    (c) Notice of formal hearing. If, after reasonable effort has been 
made to resolve the dispute informally, no resolution has been reached, 
the Secretary provides written notice to the DSU and the SILC of the 
intention to disapprove the State plan and of the opportunity for a 
hearing.
    (d) Hearing. (1) If the DSU requests a hearing, the Secretary 
designates one or more individuals, either from the Department or 
elsewhere, not responsible for or connected with the Department's 
administration of the programs authorized by title VII of the Act, to 
conduct a hearing.
    (2) If more than one individual is designated, the Secretary 
designates one of those individuals as the Chief Hearing Official of the 
Hearing Panel. If one individual is designated, that individual is the 
Hearing Official.
    (e) Judicial review. A State may appeal the Secretary's decision to 
disapprove its State plan by filing a petition for review with the U.S. 
Court of Appeals for the circuit in which the

[[Page 371]]

State is located, in accordance with section 107(d) of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796d-1(a))



Sec. 364.13  Under what circumstances may funds be withheld, reduced,
limited, or terminated?

    (a) When withheld, reduced, limited, or terminated. Payments to a 
State under chapter 1 of title VII of the Act may be withheld, reduced, 
limited, or terminated as provided by section 107(c) of the Act if the 
Secretary finds that--
    (1) The State plan has been so changed that it no longer conforms 
with the requirements of section 704 of the Act; or
    (2) In the administration of the State plan, there is a failure to 
comply substantially with any provision of the plan.
    (b) Informal resolution. If the Secretary intends to withhold, 
reduce, limit, or terminate payment of funds to a State under title VII 
of the Act as provided by section 107(c) of the Act, the Secretary 
attempts to resolve disputed issues informally with State officials.
    (c) Notice of formal hearing. If, after reasonable effort has been 
made to resolve the dispute informally, no resolution has been reached, 
the Secretary provides written notice to the DSU and SILC of the 
intention to withhold, reduce, limit, or terminate payment of funds 
under title VII of the Act and of the opportunity for a hearing.
    (d) Hearing. If the DSU requests a hearing, the Secretary designates 
an administrative law judge (ALJ) in the Office of Administrative Law 
Judges to conduct a hearing in accordance with the provisions of 34 CFR 
part 81, subpart A.
    (e) Initial decision. The ALJ issues an initial decision in 
accordance with 34 CFR 81.41.
    (f) Petition for review of an initial decision. The DSU may seek the 
Secretary's review of an ALJ's initial decision in accordance with 34 
CFR 81.42.
    (g) Review by the Secretary. The Secretary reviews an ALJ's initial 
decision in accordance with 34 CFR 81.43.
    (h) Final decision of the Department. The ALJ's initial decision 
becomes the final decision of the Department in accordance with 34 CFR 
81.44.
    (i) Judicial review. A State may appeal the Secretary's final 
decision to withhold, reduce, limit, or terminate payment of funds to a 
State under title VII of the Act by filing a petition for review with 
the U.S. Court of Appeals for the circuit in which the State is located, 
in accordance with section 107(d) of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 727(c)-(d) and 796d-1(a))



             Subpart C_What Are the State Plan Requirements?



Sec. 364.20  What are the general requirements for a State plan?

    (a) Form and content. The State plan must contain, in the form 
prescribed by the Secretary, the information required by this part and 
any other information requested by the Secretary.
    (b) Duration. (1) The State plan must cover a three-year period and 
must be amended whenever necessary to reflect any material change in 
State law, organization, policy, or agency operations that affects the 
administration of the State plan.
    (2) The Secretary may require a State to submit an interim State 
plan for a period of less than three years following a reauthorization 
of the Act and prior to the effective date of final regulations.
    (c) Joint development-single agency. The State plan must be 
jointly--
    (1) Developed by the DSU and the SILC; and
    (2) Signed by the--
    (i) Director of the DSU (Director); and
    (ii) Chairperson of the SILC, acting on behalf of and at the 
direction of the SILC.
    (d) Joint development-separate agency for individuals who are blind. 
If a separate State agency is authorized by State law as the sole State 
agency with authority to administer or supervise the administration of 
that part of the State plan relating to the vocational rehabilitation of 
individuals who are blind, the State plan must be jointly--

[[Page 372]]

    (1) Developed by the DSU, the SILC, and the separate State agency 
authorized to provide VR services for individuals who are blind; and
    (2) Signed by the--
    (i) Director;
    (ii) Director of the separate State agency authorized to provide VR 
services for individuals who are blind; and
    (iii) Chairperson of the SILC, acting on behalf of and at the 
direction of the SILC.
    (3) (Cross-reference: See Sec. 364.22(c).)
    (e) The State plan must assure that, as appropriate, the DSU and 
SILC actively consult in the development of the State plan with the 
Director of the CAP authorized under section 112 of the Act.
    (f) Periodic review and revision. The State plan must provide for 
the review and revision of the plan, at least once every three years, to 
ensure the existence of appropriate planning, financial support and 
coordination, and other assistance to appropriately address, on a 
statewide and comprehensive basis, the needs in the State for--
    (1) Providing State IL services;
    (2) Developing and supporting a statewide network of centers; and
    (3) Working relationships between--
    (i) Programs providing IL services and supporting or establishing 
centers; and
    (ii) The VR program established under title I of the Act, and other 
programs providing services for individuals with disabilities.
    (g) Public hearings. (1) The State plan must assure that the DSU and 
SILC conduct public meetings to provide all segments of the public, 
including interested groups, organizations, and individuals, an 
opportunity to comment on the State plan prior to its submission to the 
Secretary and on any revisions to the approved State plan. The DSU and 
SILC may meet the public participation requirement by holding the public 
meetings before a preliminary draft State plan is prepared or by 
providing a preliminary draft State plan for comment at the public 
meetings.
    (2) The State plan must assure that the DSU and SILC establish and 
maintain a written description of procedures for conducting public 
meetings in accordance with the following requirements:
    (i) The DSU and SILC shall provide appropriate and sufficient notice 
of the public meetings. Appropriate and sufficient notice means notice 
provided at least 30 days prior to the public meeting through various 
media available to the general public, such as newspapers and public 
service announcements, and through specific contacts with appropriate 
constituency groups and organizations identified by the DSU and SILC.
    (ii) The DSU and SILC shall make reasonable accommodation to 
individuals with disabilities who rely on alternative modes of 
communication in the conduct of the public meetings, including providing 
sign language interpreters and audio-loops.
    (iii) The DSU and SILC shall provide the notices of the public 
meetings, any written material provided prior to or at the public 
meetings, and the approved State plan in accessible formats for 
individuals who rely on alternative modes of communication.
    (h) The State plan must assure that, at the public meetings to 
develop the State plan, the DSU and SILC identify those provisions in 
the State plan that are State-imposed requirements. For purposes of this 
section, a State-imposed requirement includes any State law, regulation, 
rule, or policy relating to the DSU's administration or operation of IL 
programs under title VII of the Act, including any rule or policy 
implementing any Federal law, regulation, or guideline, that is beyond 
what would be required to comply with the regulations in 34 CFR parts 
364, 365, 366, and 367.
    (i) The State plan also must address how the specific requirements 
in Sec. Sec. 364.21 through 364.43 and in Sec. Sec. 364.56 and 364.59 
will be met.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c (a) and (m)(6))



Sec. 364.21  What are the requirements for the Statewide Independent 
Living Council (SILC)?

    (a) Establishment. (1) To be eligible to receive assistance under 
chapter 1 of title VII of the Act, each State shall

[[Page 373]]

establish a SILC that meets the requirements of section 705 of the Act.
    (2) The SILC may not be established as an entity within a State 
agency, including the designated State agency or DSU. The SILC shall be 
independent of the DSU and all other State agencies.
    (b) Appointment and composition--(1) Appointment. Members of the 
SILC must be appointed by the Governor or the appropriate entity within 
the State responsible, in accordance with State law, for making 
appointments.
    (2) Composition. (i) The SILC must include--
    (A) At least one director of a center chosen by the directors of 
centers within the State; and
    (B) As ex officio, nonvoting members, a representative from the DSU 
and representatives from other State agencies that provide services to 
individuals with disabilities.
    (ii) The SILC may include--
    (A) Other representatives from centers;
    (B) Parents and legal guardians of individuals with disabilities;
    (C) Advocates of and for individuals with disabilities;
    (D) Representatives from private businesses;
    (E) Representatives from organizations that provide services for 
individuals with disabilities; and
    (F) Other appropriate individuals.
    (iii) A majority of the members of the SILC must be individuals with 
disabilities, as defined in Sec. 364.4(b), and not employed by any 
State agency or center.
    (c) Qualifications. The SILC must be composed of members--
    (1) Who provide statewide representation;
    (2) Who represent a broad range of individuals with disabilities; 
and
    (3) Who are knowledgeable about centers and IL services.
    (d) Voting members. A majority of the voting members of the SILC 
must be individuals with disabilities, as defined in Sec. 364.4(b), and 
not employed by any State agency or center.
    (e) Chairperson--(1) In general. Except as provided in paragraph 
(e)(2) of this section, the SILC shall select a chairperson from among 
the voting membership of the SILC.
    (2) Designation by Governor. In States in which the Governor does 
not have veto power pursuant to State law, the Governor shall designate 
a voting member of the SILC to serve as the chairperson of the SILC or 
shall require the SILC to so designate a voting member.
    (f) Terms of appointment. Each member of the SILC shall serve for 
term of three years, except that--
    (1) A member appointed to fill a vacancy occurring prior to the 
expiration of the term for which a predecessor was appointed must be 
appointed for the remainder of that term;
    (2) The terms of service of the members initially appointed must be 
(as specified by the appointing authority) for the fewer number of years 
as will provide for the expiration of terms on a staggered basis; and
    (3) No member of the SILC may serve for more than two consecutive 
full terms.
    (g) Duties. The SILC shall--
    (1) Jointly develop and sign (in conjunction with the DSU) the State 
plan required by section 704 of the Act and Sec. 364.20;
    (2) Monitor, review, and evaluate the implementation of the State 
plan;
    (3) Coordinate activities with the State Rehabilitation Advisory 
Council established under section 105 of the Act and councils that 
address the needs of specific disability populations and issues under 
other Federal law;
    (4) Ensure that all regularly scheduled meetings of the SILC are 
open to the public and sufficient advance notice is provided; and
    (5) Submit to the Secretary all periodic reports as the Secretary 
may reasonably request and keep all records, and afford access to all 
records, as the Secretary finds necessary to verify the periodic 
reports.
    (h) Hearings. The SILC is authorized to hold any hearings and forums 
that the SILC determines to be necessary to carry out its duties.
    (i) Resource plan. (1) The SILC shall prepare, in conjunction with 
the DSU, a resource plan for the provision of resources, including staff 
and personnel, made available under parts B and C of chapter 1 of title 
VII of the Act, part C of title I of the Act, and from other

[[Page 374]]

public and private sources that may be necessary to carry out the 
functions of the SILC under this part.
    (2) The SILC's resource plan must, to the maximum extent possible, 
rely on the use of resources in existence during the period of 
implementation of the State plan.
    (3) No conditions or requirements may be included in the SILC's 
resource plan that may compromise the independence of the SILC.
    (4) The SILC is responsible for the proper expenditure of funds and 
use of resources that it receives under the resource plan.
    (5) A description of the SILC's resource plan required by paragraph 
(i)(1) of this section must be included in the State plan.
    (j) Staff. (1) The SILC shall, consistent with State law, supervise 
and evaluate its staff and other personnel as may be necessary to carry 
out its functions under this section.
    (2) While assisting the SILC in carrying out its duties, staff and 
other personnel made available to the SILC by the DSU may not be 
assigned duties by the designated State agency or DSU, or any other 
agency or office of the State, that would create a conflict of interest.
    (k) Reimbursement and compensation. The SILC may use the resources 
described in paragraph (i) of this section to reimburse members of the 
SILC for reasonable and necessary expenses of attending SILC meetings 
and performing SILC duties (including child care and personal assistance 
services) and to pay compensation to a member of the SILC, if the member 
is not employed or must forfeit wages from other employment, for each 
day the member is engaged in performing SILC duties.
    (l) Conflict of interest. The code of conduct provisions in 34 CFR 
74.162 and the conflict of interest provisions in 34 CFR 75.524 and 
75.525 apply to members of the SILC. For purposes of this paragraph and 
34 CFR 74.162, 75.524, and 75.525, a SILC is not considered a 
government, governmental entity, or governmental recipient.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796d)



Sec. 364.22  What is the State's responsibility for administration of 
the programs authorized by chapter 1 of title VII?

    (a) General. The State plan must identify the DSU as the entity 
that, on behalf of the State, shall--
    (1) Receive, account for, and disburse funds received by the State 
under part B of chapter 1 and section 723 of title VII of the Act (and 
34 CFR parts 365 and 366, as applicable) based on the plan;
    (2) Provide, as applicable, administrative support services for the 
SILS and CIL programs under part B of chapter 1 and section 723 of title 
VII of the Act, respectively, and 34 CFR parts 365 and 366, 
respectively;
    (3) Keep records and afford access to these records as the Secretary 
finds to be necessary with respect to the SILS and CIL programs; and
    (4) Submit additional information or provide assurances as the 
Secretary may require with respect to the SILS and CIL programs.
    (b) Provision of administrative support services. The State plan 
must describe the administrative support services to be provided by the 
DSU under paragraph (a)(2) of this section.
    (c) Designation of State unit for individuals who are blind. The 
State plan may designate a State agency or the organizational unit of a 
State agency that is authorized under State law to provide VR services 
to individuals who are blind under a State VR plan as the DSU to 
administer that part of the State IL plan under which IL services are 
provided to individuals who are blind. However, a State agency 
designated pursuant to this paragraph may not submit a separate State 
plan.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(c))



Sec. 364.23  What are the staffing requirements?

    (a) General staffing requirement. The State plan must assure that 
the staff of the service provider includes personnel who are specialists 
in the development and provision of IL services and in the development 
and support of centers.

[[Page 375]]

    (b) Alternative communication needs staffing. The State plan must 
also assure that, to the maximum extent feasible, the service provider 
makes available personnel able to communicate--
    (1) With individuals with significant disabilities who rely on 
alternative modes of communication, such as manual communication, 
nonverbal communication devices, Braille, or audio tapes, and who apply 
for or receive IL services under title VII of the Act; and
    (2) In the native languages of individuals with significant 
disabilities whose English proficiency is limited and who apply for or 
receive IL services under title VII of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c(a)(1))



Sec. 364.24  What assurances are required for staff development?

    The State plan must assure that the service provider establishes and 
maintains a program of staff development for all classes of positions 
involved in providing IL services and, if appropriate, in administering 
the CIL program. The staff development program must emphasize improving 
the skills of staff directly responsible for the provision of IL 
services, including knowledge of and practice in the IL philosophy.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c(a)(1))



Sec. 364.25  What are the requirements for a statewide network of 
centers for independent living?

    (a) The State plan must include a design for the establishment of a 
statewide network of centers that comply with the standards and 
assurances in section 725 (b) and (c) of the Act and subparts F and G of 
34 CFR part 366.
    (b) The design required by paragraph (a) of this section must 
identify unserved and underserved areas and must provide an order of 
priority for serving these areas.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c(g))



Sec. 364.26  What are the requirements for cooperation, coordination, 
and working relationships?

    (a) The State plan must include steps that will be taken to maximize 
the cooperation, coordination, and working relationships among--
    (1) The SILS program, the SILC, and centers; and
    (2) The DSU, other State agencies represented on the SILC, other 
councils that address the needs of specific disability populations and 
issues, and other public and private entities determined to be 
appropriate by the SILC.
    (b) The State plan must identify the entities to which the DSU and 
the SILC will relate in carrying out the requirements of paragraph (a) 
of this section.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(i))



Sec. 364.27  What are the requirements for coordinating Independent 
Living (IL) services?

    The State plan must describe how IL services funded under chapter 1 
of title VII of the Act will be coordinated with, and complement, other 
services, to avoid unnecessary duplication with other Federal, State, 
and local programs, including the OIB program authorized by chapter 2 of 
title VII of the Act, that provide IL- or VR-related services. This 
description must include those services provided by State and local 
agencies administering the special education, vocational education, 
developmental disabilities services, public health, mental health, 
housing, transportation, and veterans' programs, and the programs 
authorized under titles XVIII through XX of the Social Security Act 
within the State.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(j) and 752(i)(2)(C))



Sec. 364.28  What requirements relate to IL services for older 
individuals who are blind?

    The State plan must include an assurance that the DSU will seek to 
incorporate into and describe in the

[[Page 376]]

State plan any new methods or approaches for the provision to older 
individuals who are blind of IL services that are developed under a 
project funded under chapter 2 of title VII of the Act and that the DSU 
determines to be effective.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c), 796c(j), and 796k(h))



Sec. 364.29  What are the requirements for coordinating Federal and 
State sources of funding?

    (a) The State plan must describe efforts to coordinate Federal and 
State funding for centers and IL services.
    (b) The State plan must identify the amounts, sources, and purposes 
of the funding to be coordinated under paragraph (a) of this section, 
including the amount of State funds earmarked for the general operation 
of centers.
    (c) Cross-reference: See 34 CFR 366.30(a).

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(k))



Sec. 364.30  What notice must be given about the Client Assistance 
Program (CAP)?

    The State plan must include satisfactory assurances that all service 
providers will use formats that are accessible to notify individuals 
seeking or receiving IL services under chapter 1 of title VII about--
    (a) The availability of the CAP authorized by section 112 of the 
Act;
    (b) The purposes of the services provided under the CAP; and
    (c) How to contact the CAP.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 718a and 796c(m)(1))



Sec. 364.31  What are the affirmative action requirements?

    The State plan must include satisfactory assurances that all 
recipients of financial assistance under parts B and C of chapter 1 of 
title VII of the Act will take affirmative action to employ and advance 
in employment qualified individuals with significant disabilities on the 
same terms and conditions required with respect to the employment of 
individuals with disabilities under section 503 of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(m)(2))



Sec. 364.32  What are the requirements for outreach?

    (a) With respect to IL services and centers funded under chapter 1 
of title VII of the Act, the State plan must include steps to be taken 
regarding outreach to populations in the State that are unserved or 
underserved by programs under title VII, including minority groups and 
urban and rural populations.
    (b) The State plan must identify the populations to be designated 
for targeted outreach efforts under paragraph (a) of this section and 
the geographic areas (i.e., communities) in which they reside.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(l))



Sec. 364.33  What is required to meet minority needs?

    The State plan must demonstrate how the State will address the needs 
of individuals with significant disabilities from minority group 
backgrounds.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c), 718b(b), and 796c(l))



Sec. 364.34  What are the fiscal and accounting requirements?

    In addition to complying with applicable EDGAR fiscal and accounting 
requirements, the State plan must include satisfactory assurances that 
all recipients of financial assistance under parts B and C of chapter 1 
of title VII of the Act will adopt those fiscal control and fund 
accounting procedures as may be necessary to ensure the proper 
disbursement of and accounting for those funds.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(m)(3))

[[Page 377]]



Sec. 364.35  What records must be maintained?

    In addition to complying with applicable EDGAR recordkeeping 
requirements, the State plan must include satisfactory assurances that 
all recipients of financial assistance under parts B and C of chapter 1 
of title VII of the Act will maintain--
    (a) Records that fully disclose and document--
    (1) The amount and disposition by the recipient of that financial 
assistance;
    (2) The total cost of the project or undertaking in connection with 
which the financial assistance is given or used;
    (3) The amount of that portion of the cost of the project or 
undertaking supplied by other sources; and
    (4) Compliance with the requirements of chapter 1 of title VII of 
the Act and this part; and
    (b) Other records that the Secretary determines to be appropriate to 
facilitate an effective audit.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(m)(4))



Sec. 364.36  What are the reporting requirements?

    With respect to the records that are required by Sec. 364.35, the 
State plan must include satisfactory assurances that all recipients of 
financial assistance under parts B and C of chapter 1 of title VII of 
the Act will submit reports that the Secretary determines to be 
appropriate.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(m)(4)(D))



Sec. 364.37  What access to records must be provided?

    For the purpose of conducting audits, examinations, and compliance 
reviews, the State plan must include satisfactory assurances that all 
recipients of financial assistance under parts B and C of chapter 1 and 
chapter 2 of title VII of the Act will provide access to the Secretary 
and the Comptroller General, or any of their duly authorized 
representatives, to--
    (a) The records maintained under Sec. 364.35;
    (b) Any other books, documents, papers, and records of the 
recipients that are pertinent to the financial assistance received under 
chapter 1 of title VII of the Act; and
    (c) All individual case records or files or consumer service records 
of individuals served under 34 CFR part 365, 366, or 367, including 
names, addresses, photographs, and records of evaluation included in 
those individual case records or files or consumer service records.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c(m)(4)(c) and (5))



Sec. 364.38  What methods of evaluation must the State plan include?

    The State plan must establish a method for the periodic evaluation 
of the effectiveness of the plan in meeting the objectives established 
in Sec. 364.42, including evaluation of satisfaction by individuals 
with significant disabilities who have participated in the program.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(n))



Sec. 364.39  What requirements apply to the administration of grants 
under the Centers for Independent Living program?

    In States in which State funding for centers equals or exceeds the 
amount of funds allotted to the State under part C of title VII of the 
Act, as determined pursuant to 34 CFR 366.29 and 366.31, and in which 
the State elects to administer the CIL program as provided in section 
723 of the Act, the State plan must include policies, practices, and 
procedures, including the order of priorities that the State may 
establish pursuant to 34 CFR 366.34(a), that are consistent with section 
723 of the Act to govern the awarding of grants to centers and the 
oversight of these centers.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c (g) and (h), 796f-1(d), and 796f-2(d))

[[Page 378]]



Sec. 364.40  Who is eligible to receive IL services?

    The State plan must assure that--
    (a) Any individual with a significant disability, as defined in 
Sec. 364.4(b), is eligible for IL services under the SILS and CIL 
programs authorized under chapter 1 of title VII of the Act;
    (b) Any individual may seek information about IL services under 
these programs and request referral to other services and programs for 
individuals with significant disabilities, as appropriate; and
    (c) The determination of an individual's eligibility for IL services 
under the SILS and CIL programs meets the requirements of Sec. 364.51.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 706(15)(B) and 796b)



Sec. 364.41  What assurances must be included regarding eligibility?

    (a) The State plan must assure that the service provider applies 
eligibility requirements without regard to age, color, creed, gender, 
national origin, race, religion, or type of significant disability of 
the individual applying for IL services.
    (b) The State plan must assure that the service provider does not 
impose any State or local residence requirement that excludes under the 
plan any individual who is present in the State and who is otherwise 
eligible for IL services from receiving IL services.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c(a)(1))



Sec. 364.42  What objectives and information must be included in the
State plan?

    (a) The State plan must specifically describe--
    (1) The objectives to be achieved;
    (2) The financial plan for the use of Federal and non-Federal funds 
to meet these objectives. The financial plan must identify the source 
and amounts of other Federal and non-Federal funds to be used to meet 
these objectives; and
    (3) How funds received under sections 711, 721, and 752 of the Act 
will further these objectives.
    (b) The objectives required by paragraph (a) of this section must 
address--
    (1) The overall goals and mission of the State's IL programs and 
services;
    (2) The various priorities for the types of services and populations 
to be served; and
    (3) The types of services to be provided.
    (c) In developing the objectives required by paragraph (a) of this 
section, the DSU and the SILC shall consider, and incorporate if 
appropriate, the priorities and objectives established by centers 
pursuant to section 725(c)(4) of the Act.
    (d) The State plan must establish timeframes for the achievement of 
the objectives required by paragraph (a) of this section.
    (e) The State plan must explain how the objectives required by 
paragraph (a) of this section are consistent with and further the 
purpose of chapter 1 of title VII of the Act, as stated in section 701 
of the Act and Sec. 364.2.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(d))



Sec. 364.43  What requirements apply to the provision of State IL services?

    (a) The State plan must describe the extent and scope of IL services 
to be provided under title VII of the Act to meet the objectives stated 
in Sec. 364.42.
    (b) The State plan must provide that the State directly, or through 
grants or contracts, will provide IL services with Federal, State, or 
other funds.
    (c) Unless the individual signs a waiver stating that an IL plan is 
unnecessary, IL services provided to individuals with significant 
disabilities must be in accordance with an IL plan that meets the 
requirements of Sec. 364.52 and that is mutually agreed upon by--
    (1) An appropriate staff member of the service provider; and
    (2) The individual.
    (d) If the State provides the IL services that it is required to 
provide by paragraph (b) of this section through grants or contracts 
with third parties, the State plan must describe these arrangements.
    (e) If the State contracts with or awards a grant to a center for 
the general operation of the center, the State

[[Page 379]]

shall delegate to the center the determination of an individual's 
eligibility for services from that center. If the State contracts with 
or awards a grant to a third party to provide specific IL services, the 
State may choose to delegate to the IL service provider the 
determination of eligibility for these services and the development of 
an IL plan for individuals who receive these services.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c), 796c(e)-(f), and 796f-4(b)(2))



          Subpart D_What Conditions Must Be Met After an Award?



Sec. 364.50  What requirements apply to the processing of referrals 
and applications?

    The service provider shall apply the standards and procedures 
established by the DSU pursuant to 34 CFR 365.30 to ensure expeditious 
and equitable handling of referrals and applications for IL services 
from individuals with significant disabilities.

(Authority: 29 U.S.C. 711(c) and 796-796f-5)



Sec. 364.51  What requirements apply to determinations of eligibility
or ineligibility?

    (a) Eligibility. (1) Before or at the same time as an applicant for 
IL services may begin receiving IL services funded under this part, the 
service provider shall determine the applicant's eligibility and 
maintain documentation that the applicant has met the basic requirements 
specified in Sec. 364.40.
    (2) The documentation must be dated and signed by an appropriate 
staff member of the service provider.
    (b) Ineligibility. (1) If a determination is made that an applicant 
for IL services is not an individual with a significant disability, the 
service provider shall provide documentation of the ineligibility 
determination that is dated and signed by an appropriate staff member.
    (2)(i) The service provider may determine an applicant to be 
ineligible for IL services only after full consultation with the 
applicant or, if the applicant chooses, the applicant's parent, 
guardian, or other legally authorized advocate or representative, or 
after providing a clear opportunity for this consultation.
    (ii) The service provider shall notify the applicant in writing of 
the action taken and inform the applicant or, if the applicant chooses, 
the applicant's parent, guardian, or other legally authorized advocate 
or representative, of the applicant's rights and the means by which the 
applicant may appeal the action taken. (Cross-reference: See Sec. 
364.58(a).)
    (iii) The service provider shall provide a detailed explanation of 
the availability and purposes of the CAP established within the State 
under section 112 of the Act, including information on how to contact 
the program.
    (iv) If appropriate, the service provider shall refer the applicant 
to other agencies and facilities, including the State's VR program under 
34 CFR part 361.
    (c) Review of ineligibility determination. (1) If an applicant for 
IL services has been found ineligible, the service provider shall review 
the applicant's ineligibility at least once within 12 months after the 
ineligibility determination has been made and whenever the service 
provider determines that the applicant's status has materially changed.
    (2) The review need not be conducted in situations where the 
applicant has refused the review, the applicant is no longer present in 
the State, or the applicant's whereabouts are unknown.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c(e))



Sec. 364.52  What are the requirements for an IL plan?

    (a) General. (1) Unless the individual who is to be provided IL 
services under this part signs a waiver in accordance with paragraph 
(a)(2) of this section, the service provider, in collaboration with the 
individual with a significant disability, shall develop and periodically 
review an IL plan for the individual in accordance with the requirements 
in Sec. 364.43(c) and paragraphs (b) through (e) of this section.
    (2) The requirements of this section with respect to an IL plan do 
not apply

[[Page 380]]

if the individual knowingly and voluntarily signs a waiver stating that 
an IL plan is unnecessary.
    (3) Subject to paragraph (a)(2) of this section, the service 
provider shall provide each IL service in accordance with the IL plan.
    (b) Initiation and development of an IL plan. (1) Development of an 
individual's IL plan must be initiated after documentation of 
eligibility under Sec. 364.51(a) and must indicate the goals or 
objectives established, the services to be provided, and the anticipated 
duration of the service program and each component service.
    (2) The IL plan must be developed jointly and signed by the 
appropriate staff member of the service provider and the individual with 
a significant disability or, if consistent with State law and the 
individual chooses, the individual's guardian, parent, or other legally 
authorized advocate or representative.
    (3) A copy of the IL plan, and any amendments, must be provided in 
an accessible format to the individual with a significant disability or, 
if consistent with State law and the individual chooses, the 
individual's guardian, parent, or other legally authorized advocate or 
representative.
    (c) Review. (1) The IL plan must be reviewed as often as necessary 
but at least on an annual basis to determine whether services should be 
continued, modified, or discontinued, or whether the individual should 
be referred to a program of VR services under 34 CFR part 361 or to any 
other program of assistance.
    (2) Each individual with a significant disability or, if consistent 
with State law and the individual chooses, the individual's guardian, 
parent, or other legally authorized advocate or representative, must be 
given an opportunity to review the IL plan and, if necessary, jointly 
redevelop and agree by signature to its terms.
    (d) Coordination with vocational rehabilitation, developmental 
disabilities, and special education programs. The development of the IL 
plan and the provision of IL services must be coordinated to the maximum 
extent possible with any individualized--
    (1) Written rehabilitation program for VR services for that 
individual;
    (2) Habilitation program for the individual prepared under the 
Developmental Disabilities Assistance and Bill of Rights Act; and
    (3) Education program for the individual prepared under part B of 
the Individuals with Disabilities Education Act.
    (e) Termination of services. If the service provider intends to 
terminate services to an individual receiving IL services under an IL 
plan, the service provider shall follow the procedures in Sec. 
364.51(b)(2)(ii) through (iv) and (c).

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796c(e) and (j))



Sec. 364.53  What records must be maintained for the individual?

    For each applicant for IL services (other than information and 
referral) and for each individual receiving IL services (other than 
information and referral), the service provider shall maintain a 
consumer service record that includes--
    (a) Documentation concerning eligibility or ineligibility for 
services;
    (b) The services requested by the consumer;
    (c) Either the IL plan developed with the consumer or a waiver 
signed by the consumer stating that an IL plan is unnecessary;
    (d) The services actually provided to the consumer; and
    (e) The IL goals or objectives--
    (1) Established with the consumer, whether or not in the consumer's 
IL plan; and
    (2) Achieved by the consumer.
    (f) A consumer service record may be maintained either 
electronically or in written form, except that the IL plan and waiver 
must be in writing.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c), 712 and 796c(m)(4)(B))



Sec. 364.54  What are the durational limitations on IL services?

    The service provider may not impose any uniform durational 
limitations on

[[Page 381]]

the provision of IL services, except as otherwise provided by Federal 
law or regulation.

(Authority: 29 U.S.C. 711(c) and 796-796f-5)



Sec. 364.55  What standards shall service providers meet?

    In providing IL services to individuals with significant 
disabilities, service providers shall comply with--
    (a) The written standards for IL service providers established by 
the DSU pursuant to 34 CFR 365.31; and
    (b) All applicable State or Federal licensure or certification 
requirements.

(Authority: 29 U.S.C. 711(c) and 796-796f-5)



Sec. 364.56  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) General provisions. The State plan must assure that each service 
provider will adopt and implement policies and procedures to safeguard 
the confidentiality of all personal information, including photographs 
and lists of names. These policies and procedures must assure that--
    (1) Specific safeguards protect current and stored personal 
information;
    (2) All applicants for, or recipients of, IL services and, as 
appropriate, those individuals' legally authorized representatives, 
service providers, cooperating agencies, and interested persons are 
informed of the confidentiality of personal information and the 
conditions for gaining access to and releasing this information;
    (3) All applicants or their legally authorized representatives are 
informed about the service provider's need to collect personal 
information and the policies governing its use, including--
    (i) Identification of the authority under which information is 
collected;
    (ii) Explanation of the principal purposes for which the service 
provider intends to use or release the information;
    (iii) Explanation of whether providing requested information to the 
service provider is mandatory or voluntary and the effects to the 
individual of not providing requested information;
    (iv) Identification of those situations in which the service 
provider requires or does not require informed written consent of the 
individual or his or her legally authorized representative before 
information may be released; and
    (v) Identification of other agencies to which information is 
routinely released;
    (4) Persons who are unable to communicate in English or who rely on 
alternative modes of communication must be provided an explanation of 
service provider policies and procedures affecting personal information 
through methods that can be adequately understood by them;
    (5) At least the same protections are provided to individuals with 
significant disabilities as provided by State laws and regulations; and
    (6) Access to records is governed by rules established by the 
service provider and any fees charged for copies of records are 
reasonable and cover only extraordinary costs of duplication or making 
extensive searches.
    (b) Service provider use. All personal information in the possession 
of the service provider may be used only for the purposes directly 
connected with the provision of IL services and the administration of 
the IL program under which IL services are provided. Information 
containing identifiable personal information may not be shared with 
advisory or other bodies that do not have official responsibility for 
the provision of IL services or the administration of the IL program 
under which IL services are provided. In the provision of IL services or 
the administration of the IL program under which IL services are 
provided, the service provider may obtain personal information from 
other service providers and cooperating agencies under assurances that 
the information may not be further divulged, except as provided under 
paragraphs (c), (d), and (e) of this section.
    (c) Release to recipients of IL services. (1) Except as provided in 
paragraphs (c)(2) and (c)(3) of this section, if requested in writing by 
a recipient of IL services, the service provider shall release all 
information in that individual's record of services to the individual or 
the individual's legally authorized representative in a timely manner.
    (2) Medical, psychological, or other information that the service 
provider

[[Page 382]]

determines may be harmful to the individual may not be released directly 
to the individual, but must be provided through a qualified medical or 
psychological professional or the individual's legally authorized 
representative.
    (3) If personal information has been obtained from another agency or 
organization, it may be released only by, or under the conditions 
established by, the other agency or organization.
    (d) Release for audit, evaluation, and research. Personal 
information may be released to an organization, agency, or individual 
engaged in audit, evaluation, or research activities only for purposes 
directly connected with the administration of an IL program, or for 
purposes that would significantly improve the quality of life for 
individuals with significant disabilities and only if the organization, 
agency, or individual assures that--
    (1) The information will be used only for the purposes for which it 
is being provided;
    (2) The information will be released only to persons officially 
connected with the audit, evaluation, or research;
    (3) The information will not be released to the involved individual;
    (4) The information will be managed in a manner to safeguard 
confidentiality; and
    (5) The final product will not reveal any personally identifying 
information without the informed written consent of the involved 
individual or the individual's legally authorized representative.
    (e) Release to other programs or authorities. (1) Upon receiving the 
informed written consent of the individual or, if appropriate, the 
individual's legally authorized representative, the service provider may 
release personal information to another agency or organization for the 
latter's program purposes only to the extent that the information may be 
released to the involved individual and only to the extent that the 
other agency or organization demonstrates that the information requested 
is necessary for the proper administration of its program.
    (2) Medical or psychological information may be released pursuant to 
paragraph (e)(1) of this section if the other agency or organization 
assures the service provider that the information will be used only for 
the purpose for which it is being provided and will not be further 
released to the individual.
    (3) The service provider shall release personal information if 
required by Federal laws or regulations.
    (4) The service provider shall release personal information in 
response to investigations in connection with law enforcement, fraud, or 
abuse, unless expressly prohibited by Federal or State laws or 
regulations, and in response to judicial order.
    (5) The service provider also may release personal information to 
protect the individual or others if the individual poses a threat to his 
or her safety or to the safety of others.

(Authority: 29 U.S.C. 711(c))



Sec. 364.57  What functions and responsibilities may the State delegate?

    A DSU may carry out the functions and responsibilities described in 
Sec. Sec. 364.50, 364.51 (subject to 364.43(d)), 364.52, 364.53, and 
364.56 or, except as otherwise provided, may delegate these functions 
and responsibilities to the appropriate service provider with which the 
DSU subgrants or contracts to provide IL services.

(Authority: 29 U.S.C. 711(c), 796c(f) and 796e-2)



Sec. 364.58  What appeal procedures must be available to consumers?

    Each service provider shall--
    (a) Establish policies and procedures that an individual may use to 
obtain review of decisions made by the service provider concerning the 
individual's request for IL services or the provision of IL services to 
the individual; and
    (b) Use formats that are accessible to inform each individual who 
seeks or is receiving IL services from the service provider about the 
procedures required by paragraph (a) of this section.

(Authority: 29 U.S.C. 711(c))



Sec. 364.59  May an individual's ability to pay be considered in
determining his or her participation in the costs of IL services?

    (a) No Federal requirement or prohibition. (1) A State is neither 
required to allow nor prohibited from allowing

[[Page 383]]

service providers to charge consumers for the cost of IL services.
    (2) If a State allows service providers to charge consumers for the 
cost of IL services, a State is neither required to allow nor prohibited 
from allowing service providers to consider the ability of individual 
consumers to pay for the cost of IL services in determining how much a 
particular consumer must contribute to the costs of a particular IL 
service.
    (b) State plan requirements. If a State chooses to allow service 
providers to charge consumers for the cost of IL services or if a State 
chooses to allow service providers to consider the ability of individual 
consumers to pay for the cost of IL services, the State plan must--
    (1) Specify the types of IL services for which costs may be charged 
and for which a financial need test may be applied; and
    (2) Assure that any consideration of financial need is applied 
uniformly so that all individuals who are eligible for IL services are 
treated equally.
    (c) Financial need. Consistent with paragraph (b) of this section, a 
service provider may choose to charge consumers for the cost of IL 
services or may choose to consider the financial need of an individual 
who is eligible for IL services.
    (d) Written policies and documentation. If the service provider 
chooses to consider financial need--
    (1) It shall maintain written policies covering the specific types 
of IL services for which a financial need test will be applied; and
    (2) It shall document the individual's participation in the cost of 
any IL services, including the individual's financial need.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c))



PART 365_STATE INDEPENDENT LIVING SERVICES--Table of Contents



                            Subpart A_General

Sec.
365.1 What is the State Independent Living Services (SILS) program?
365.2 Who is eligible for an award?
365.3 What regulations apply?

        Subpart B_How Does the Secretary Make a Grant to a State?

365.10 How does a State apply for a grant?
365.11 How is the allotment of Federal funds for State independent 
          living (IL) services computed?
365.12 How are payments from allotments for IL services made?
365.13 What requirements apply if the State's non-Federal share is in 
          cash?
365.14 What conditions relating to cash or in-kind contributions apply 
          to awards to grantees, subgrantees, or contractors?
365.15 What requirements apply if the State's non-Federal share is in 
          kind?
365.16 What requirements apply to refunds and rebates?

 Subpart C_For What Purpose Are Funds Authorized or Required To Be Used?

365.20 What are the authorized uses of funds?
365.21 What funds may the State use to provide the IL core services?
365.22 What additional IL services may the State provide?
365.23 How does a State make a subgrant or enter into a contract?

          Subpart D_What Conditions Must Be Met After an Award?

365.30 What are the standards for processing referrals and applications?
365.31 What are the standards for service providers?

    Authority: 29 U.S.C. 796e-796e-2, unless otherwise noted.

    Source: 59 FR 41897, Aug. 15, 1994, unless otherwise noted.



                            Subpart A_General



Sec. 365.1  What is the State Independent Living Services (SILS) program?

    The Secretary provides financial assistance to States under the SILS 
program authorized by part B of chapter 1 of title VII of the Act to--
    (a) Provide the resources described in the resource plan required by 
section 705(e) of the Act and 34 CFR 364.21(d) relating to the Statewide 
IL Council (SILC);
    (b) Provide to individuals with significant disabilities the 
independent living (IL) services required by section 704(e) of the Act;

[[Page 384]]

    (c) Demonstrate ways to expand and improve IL services;
    (d) Support the operation of centers for independent living 
(centers) that are in compliance with the standards and assurances in 
section 725 (b) and (c) of the Act and subparts F and G of 34 CFR part 
366;
    (e) Support activities to increase the capacities of public or 
nonprofit agencies and organizations and other entities to develop 
comprehensive approaches or systems for providing IL services;
    (f) Conduct studies and analyses, gather information, develop model 
policies and procedures, and present information, approaches, 
strategies, findings, conclusions, and recommendations to Federal, 
State, and local policy makers in order to enhance IL services for 
individuals with significant disabilities;
    (g) Train individuals with significant disabilities, individuals 
with disabilities, individuals providing services to individuals with 
significant disabilities, and other persons regarding the IL philosophy; 
and
    (h) Provide outreach to populations that are unserved or underserved 
by programs under title VII of the Act, including minority groups and 
urban and rural populations.

(Authority: 29 U.S.C. 796e)



Sec. 365.2  Who is eligible for an award?

    Any designated State unit (DSU) identified by the State pursuant to 
34 CFR 364.22 is eligible to apply for assistance under this part in 
accordance with 34 CFR 364.10 and 364.11.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(a)(1) and (c) and 796e(a))



Sec. 365.3  What regulations apply?

    The following regulations apply to this part:
    (a) The regulations in 34 CFR part 364.
    (b) The regulations in this part 365.

(Authority: 29 U.S.C. 711(c) and 796e)



        Subpart B_How Does the Secretary Make a Grant to a State?



Sec. 365.10  How does a State apply for a grant?

    To receive a grant under this part, a State shall submit to the 
Secretary and obtain approval of a State plan that meets the 
requirements of part A of title VII of the Act and subparts B and C of 
34 CFR part 364.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 796c(a)(1) and (c) and 796e(a))



Sec. 365.11  How is the allotment of Federal funds for State independent
living (IL) services computed?

    (a) The allotment of Federal funds for State IL services for each 
State is computed in accordance with the requirements of section 
711(a)(1) of the Act.
    (b) The allotment of Federal funds for Guam, American Samoa, the 
United States Virgin Islands, the Commonwealth of the Northern Mariana 
Islands, and the Republic of Palau is computed in accordance with 
section 711(a)(2) of the Act.
    (c) If the State plan designates, pursuant to Sec. 364.22(c), a 
unit to administer the part of the plan under which State IL services 
are provided for individuals who are blind and a separate or different 
unit to administer the rest of the plan, the division of the State's 
allotment between these two units is a matter for State determination.

(Authority: 29 U.S.C. 711(c) and 796e(a))



Sec. 365.12  How are payments from allotments for IL services made?

    (a) From the allotment of a State for a fiscal year under Sec. 
365.11, the Secretary pays to the State the Federal share of the 
expenditures incurred by the State during the year in accordance with 
the State plan approved under section 706 of the Act. After any 
necessary adjustments resulting from previously made overpayments or 
underpayments, the payments may be made in advance or by reimbursement, 
in installments, and on conditions that the Secretary may determine.

[[Page 385]]

    (b)(1) The Federal share with respect to any State for any fiscal 
year is 90 percent of the expenditures incurred by the State during that 
fiscal year under its State plan approved under section 706 of the Act.
    (2) The non-Federal share of the cost of any project that receives 
assistance through an allotment under this part may be provided in cash 
or in kind, fairly evaluated, including plant, equipment, or services.

(Authority: U.S.C. 796e-1)



Sec. 365.13  What requirements apply if the State's non-Federal share
is in cash?

    (a) Except as further limited by paragraph (b) of this section, 
expenditures that meet the requirements of 34 CFR 80.24(a) through 
(b)(6) may be used to meet the non-Federal share matching requirement 
under section 712(b) of the Act if--
    (1) The expenditures are made with funds made available by 
appropriation directly to the designated State agency or with funds made 
available by allotment or transfer from any other unit of State or local 
government;
    (2) The expenditures are made with cash contributions from a donor 
that are deposited in the account of the designated State agency in 
accordance with State law for expenditure by, and at the sole discretion 
of, the DSU for activities identified or described in the State plan and 
authorized by Sec. 365.20; or
    (3) The expenditures are made with cash contributions from a donor 
that are earmarked for meeting the State's share for--
    (i) Providing particular services (e.g., personal assistance 
services);
    (ii) Serving individuals with certain types of disabilities (e.g., 
older individuals who are blind);
    (iii) Providing services to specific groups that State or Federal 
law permits to be targeted for services (e.g., children of migrant 
laborers); or
    (iv) Carrying out particular types of administrative activities 
permissible under State law.
    (b) Cash contributions are permissible under paragraph (a)(3) of 
this section only if the cash contributions are not used for 
expenditures that benefit or will benefit in any way the donor, an 
individual to whom the donor is related by blood or marriage or with 
whom the donor has a close personal relationship, or an individual, 
entity, or organization with whom the donor shares a financial interest.
    (c) The receipt of a grant, subgrant, or contract under section 713 
of the Act or a grant, subgrant, or assistance contract under section 
723 of the Act from the DSU is not considered a benefit to the donor of 
a cash contribution for purposes of paragraph (b) of this section if the 
grant, subgrant, or contract was awarded under the State's regular 
competitive procedures.
    (d) For purposes of this section, a donor may be a private agency, a 
profit-making or nonprofit organization, or an individual.

(Authority: 29 U.S.C. 711(c) and 796e-1(b))



Sec. 365.14  What conditions relating to cash or in-kind contributions
apply to awards to grantees, subgrantees, or contractors?

    (a) A State may not condition the award of a grant, subgrant, or 
contract under section 713 of the Act or a grant, subgrant, or 
assistance contract under section 723 of the Act on the requirement that 
the applicant for the grant or subgrant make a cash or in-kind 
contribution of any particular amount or value to the State.
    (b) An individual, entity, or organization that is a grantee or 
subgrantee of the State, or has a contract with the State, may not 
condition the award of a subgrant or subcontract under section 713 of 
the Act or section 723 of the Act on the requirement that the applicant 
for the subgrant or subcontract make a cash or in-kind contribution of 
any particular amount or value to the State or to the grantee or 
contractor of the State.

(Authority: 29 U.S.C. 711(c) and 796e-1(b))



Sec. 365.15  What requirements apply if the State's non-Federal share
is in kind?

    Subject to Sec. 365.14, in-kind contributions may be--
    (a) Used to meet the matching requirement under section 712(b) of 
the Act if the in-kind contributions meet the requirements of 34 CFR 
80.24 (b)(7)

[[Page 386]]

through (g) and if the in-kind contributions would be considered 
allowable costs under this part, as determined by the cost principles 
made applicable by either subpart Q of 34 CFR part 74 or 34 CFR 80.22, 
as appropriate; and
    (b) Made to the program or project by the State or by a third party 
(i.e., an individual, entity, or organization, whether local, public, 
private, for profit, or nonprofit), including a third party that is a 
grantee, subgrantee, or contractor that is receiving or will receive 
assistance under section 713 or 723 of the Act.

(Authority: 29 U.S.C. 711(c) and 796e-1(b))



Sec. 365.16  What requirements apply to refunds and rebates?

    The following must be treated as a reduction of expenditures charged 
to the grant, subgrant, or contract awarded under this part and may not 
be used for meeting the State's matching requirement under section 
712(b) of the Act:
    (a) Rebates, deductions, refunds, discounts, or reductions to the 
price of goods, products, equipment, rental property, real property, or 
services.
    (b) Premiums, bonuses, gifts, and any other payments related to the 
purchase of goods, products, equipment, rental property, real property, 
or services.

(Authority: 29 U.S.C. 711(c), 796e-1(b), and OMB Circulars A-87 and A-
122)



 Subpart C_For What Purpose Are Funds Authorized or Required To Be Used?



Sec. 365.20  What are the authorized uses of funds?

    The State may use funds received under this part to support the 
activities listed in Sec. 365.1 and to meet its obligation under 
section 704(e) of the Act and 34 CFR 364.43(b).

(Authority: 29 U.S.C. 796e-2)



Sec. 365.21  What funds may the State use to provide the IL core services?

    (a) In providing IL services as required under section 704(e) of the 
Act and 34 CFR 364.43(b), a State may use funds provided under this part 
to provide directly, or through grants or contracts, the following IL 
core services:
    (1) Information and referral services.
    (2) IL skills training.
    (3) Peer counseling, including cross-disability peer counseling.
    (4) Individual and systems advocacy.
    (b) Information and referral services may be provided independently 
of the other services described in paragraph (a) of this section and 
without regard to subpart G of 34 CFR part 366.

(Authority: 29 U.S.C. 711(c) and 796c(e))



Sec. 365.22  What additional IL services may the State provide?

    In addition to the IL core services that the State may provide 
pursuant to Sec. 365.21(a) with funds received under part B of chapter 
1 of title VII of the Act, the State also may use funds received under 
part B of chapter 1 of title VII of the Act to provide other IL services 
defined in 34 CFR 364.4 (Independent living services).

(Authority: 29 U.S.C. 796e-2(1))



Sec. 365.23  How does a State make a subgrant or enter into a contract?

    If a State makes a subgrant or enters into a contract to provide IL 
services to meet its obligation under section 704(e) of the Act--
    (a) The provisions of this part apply to both the State and the 
entity or individual to whom it awards a subgrant or with whom it enters 
into a contract; and
    (b) The provisions concerning the administration of subgrants and 
contracts in 34 CFR parts 76 and 80 apply to the State.
    (c) Cross-reference: See 34 CFR parts 74, 76, and 80.

(Authority: 29 U.S.C. 711(c), 796c(f), and 796e-2)



          Subpart D_What Conditions Must Be Met After an Award?



Sec. 365.30  What are the standards for processing referrals and 
applications?

    The DSU shall develop, establish, and maintain written standards and 
procedures to be applied by service providers to assure expeditious and 
equitable handling of referrals and applications

[[Page 387]]

for IL services from individuals with significant disabilities.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c) and 796e)



Sec. 365.31  What are the standards for service providers?

    (a) The DSU shall develop, establish, make available to the public, 
maintain, and implement written minimum standards for the provision of--
    (1) IL services to be met by service providers that are not centers; 
and
    (2) Specialized IL services to individuals with significant 
disabilities by centers under a contract with the DSU.
    (b) The minimum standards developed pursuant to paragraph (a)(2) of 
this section may differ from the standards and assurances in section 725 
of the Act and subparts F and G of 34 CFR part 366.
    (c) The DSU shall assure that participating service providers meet 
all applicable State licensure or certification requirements.

(Approved by the Office of Management and Budget under control number 
1820-0527)

(Authority: 29 U.S.C. 711(c))



PART 366_CENTERS FOR INDEPENDENT LIVING--Table of Contents



                            Subpart A_General

Sec.
366.1 What is the Centers for Independent Living (CIL) program?
366.2 What agencies are eligible for assistance under the CIL program?
366.3 What activities may the Secretary fund?
366.4 What regulations apply?
366.5 What definitions apply to this program?
366.6 How are program funds allotted?

               Subpart B_Training and Technical Assistance

366.10 What agencies are eligible for assistance to provide training and 
          technical assistance?
366.11 What financial assistance does the Secretary provide for training 
          and technical assistance?
366.12 How does the Secretary make an award?
366.13 How does the Secretary determine funding priorities?
366.14 How does the Secretary evaluate an application?
366.15 What selection criteria does the Secretary use?

 Subpart C_Grants to Centers for Independent Living (Centers) in States 
             in Which Federal Funding Exceeds State Funding

366.20 When does the Secretary award grants to centers?
366.21 What are the application requirements for existing eligible 
          agencies?
366.22 What is the order of priorities?
366.23 What grants must be made to existing eligible agencies?
366.24 How is an award made to a new center?
366.25 What additional factor does the Secretary use in making a grant 
          for a new center under Sec. 366.24?
366.26 How does the Secretary evaluate an application?
366.27 What selection criteria does the Secretary use?
366.28 Under what circumstances may the Secretary award a grant to a 
          center in one State to serve individuals in another State?

 Subpart D_Grants to Centers in States in Which State Funding Equals or 
                         Exceeds Federal Funding

   Determining Whether State Funding Equals or Exceeds Federal Funding

366.29 When may the Director of the designated State unit (DSU) award 
          grants to centers?
366.30 What are earmarked funds?
366.31 What happens if the amount of earmarked funds does not equal or 
          exceed the amount of Federal funds for a preceding fiscal 
          year?

                             Awarding Grants

366.32 Under what circumstances may the DSU make grants?
366.33 What are the application requirements for existing eligible 
          agencies?
366.34 What is the order of priorities?
366.35 What grants must be made to existing eligible agencies?
366.36 How is an award made to a new center?
366.37 What procedures does the Director of the DSU (Director) use in 
          making a grant for a new center?
366.38 What are the procedures for review of centers?

[[Page 388]]

              Subpart E_Enforcement and Appeals Procedures

366.39 What procedures does the Secretary use for enforcement?
366.40 How does the Director initiate enforcement procedures?
366.41 What must be included in an initial written notice from the 
          Director?
366.42 When does a Director issue a final written decision?
366.43 What must be included in the Director's final written decision?
366.44 How does a center appeal a decision included in a Director's 
          initial written notice or a Director's final written decision?
366.45 What must a Director do upon receipt of a copy of a center's 
          formal written appeal to the Secretary?
366.46 How does the Secretary review a center's appeal of a decision 
          included in a Director's initial written notice or a 
          Director's final written decision?

                    Subpart F_Assurances for Centers

366.50 What assurances shall a center provide and comply with?

        Subpart G_Evaluation Standards and Compliance Indicators

366.60 What are project evaluation standards?
366.61 What are the compliance indicators?
366.62 What are the requirements for continuation funding?
366.63 What evidence must a center present to demonstrate that it is in 
          minimum compliance with the evaluation standards?

    Authority: 29 U.S.C. 796d-1(b) and 796f-796f-6, unless otherwise 
noted.

    Source: 59 FR 41900, Aug. 15, 1994, unless otherwise noted.



                            Subpart A_General



Sec. 366.1  What is the Centers for Independent Living (CIL) program?

    The CIL program provides financial assistance for planning, 
conducting, administering, and evaluating centers for independent living 
(centers) that comply with the standards and assurances in section 
725(b) and (c) of the Act, consistent with the design included in the 
State plan pursuant to 34 CFR 364.25 for establishing a statewide 
network of centers.

(Authority: 29 U.S.C. 796f, 796f-1(a)(2), and 796f-2(a)(1)(A)(ii))



Sec. 366.2  What agencies are eligible for assistance under the CIL 
program?

    (a) In any State in which the Secretary has approved the State plan 
required by section 704 of the Act, an applicant may receive a grant 
under subpart C or D of this part, as applicable, if the applicant 
demonstrates in its application submitted pursuant to Sec. 366.21, 
366.24, 366.33, 366.35, or 366.36 that it--
    (1) Has the power and authority to--
    (i) Carry out the purpose of part C of title VII of the Act and 
perform the functions listed in section 725(b) and (c) of the Act and 
subparts F and G of this part within a community located within that 
State or in a bordering State; and
    (ii) Receive and administer--
    (A) Funds under this part;
    (B) Funds and contributions from private or public sources that may 
be used in support of a center; and
    (C) Funds from other public and private programs; and
    (2) Is able to plan, conduct, administer, and evaluate a center 
consistent with the standards and assurances in section 725(b) and (c) 
of the Act and subparts F and G of this part.
    (b) An applicant that meets the requirements of paragraph (a) of 
this section is eligible to apply as a new center under Sec. Sec. 
366.24 or 366.36 if it--
    (1) Is not receiving funds under part C of chapter 1 of title VII of 
the Act; or
    (2) Proposes the expansion of an existing center through the 
establishment of a separate and complete center (except that the 
governing board of the existing center may serve as the governing board 
of the new center) at a different geographical location; and
    (3) Meets the requirements of Sec. 366.24;
    (c) A State that received assistance in fiscal year (FY) 1993 to 
directly operate a center in accordance with section 724(a) of the Act 
is eligible to continue to receive assistance under this part to 
directly operate that center for FY 1994 or a succeeding fiscal year if, 
for the fiscal year for which assistance is sought--
    (1) No nonprofit private agency submits and obtains approval of an 
acceptable application under section 722 or

[[Page 389]]

723 of the Act or Sec. 366.21 or Sec. 366.24 to operate a center for 
that fiscal year before a date specified by the Secretary; or
    (2) After funding all applications so submitted and approved, the 
Secretary determines that funds remain available to provide that 
assistance.
    (d) Except for the requirement that the center be a private 
nonprofit agency, a center that is operated by a State that receives 
assistance under paragraph (a), (b), or (c) of this section shall comply 
with all of the requirements of part C of title VII of the Act and the 
requirements in subparts C or D, as applicable, and F of this part.
    (e) Eligibility requirements for assistance under subpart B of this 
part are described in Sec. 366.10.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c), 796f-1(b) and (d)(3), 796f-2(b), and 796f-
3(a)(2) and (b))



Sec. 366.3  What activities may the Secretary fund?

    (a) An eligible agency may use funds awarded under subpart B of this 
part to carry out activities described in Sec. 366.11(b).
    (b) An eligible agency may use funds awarded under subparts C and D 
of this part to--
    (1) Plan, conduct, administer, and evaluate centers that comply with 
the standards and assurances in section 725(b) and (c) of the Act;
    (2) Promote and practice the independent living (IL) philosophy in 
accordance with Evaluation Standard 1 (``Philosophy'');
    (3) Provide IL services (including IL core services and, as 
appropriate, a combination of any other IL services specified in section 
7(30)(B) of the Act) to individuals with a range of significant 
disabilities in accordance with Evaluation Standards 2 and 5 
(``Provision of services'' and ``Independent living core services,'' 
respectively);
    (4) Facilitate the development and achievement of IL goals selected 
by individuals with significant disabilities who seek assistance in the 
development and achievement of IL goals from the center in accordance 
with Evaluation Standard 3 (``Independent living goals'');
    (5) Increase the availability and improve the quality of community 
options for independent living in order to facilitate the development 
and achievement of IL goals by individuals with significant disabilities 
in accordance with Evaluation Standard 4 (``Community options'');
    (6) Increase the capacity of communities within the service area of 
the center to meet the needs of individuals with significant 
disabilities in accordance with Evaluation Standard 6 (``Activities to 
increase community capacity'');
    (7) Conduct resource development activities to obtain funding from 
sources other than chapter 1 of title VII of the Act in accordance with 
Evaluation Standard 7 (Resource development activities); and
    (8) Conduct activities necessary to comply with the assurances in 
section 725(c) of the Act, including, but not limited to the following:
    (i) Aggressive outreach regarding services provided through the 
center in an effort to reach populations of individuals with significant 
disabilities that are unserved or underserved by programs under title 
VII of the Act, especially minority groups and urban and rural 
populations.
    (ii) Training for center staff on how to serve unserved and 
underserved populations, including minority groups and urban and rural 
populations.
    (9) Cross-reference: See Sec. 366.71 in subpart G.

(Authority: 29 U.S.C. 796f through 796f-4)



Sec. 366.4  What regulations apply?

    The following regulations apply to the CIL program:
    (a) The regulations in 34 CFR part 364.
    (b) The regulations in this part 366.

(Authority: 29 U.S.C. 711(c) and 796f-796f-5)



Sec. 366.5  What definitions apply to this program?

    Decisionmaking position means the executive director, any 
supervisory position, and any other policymaking position within the 
center.
    Staff position means a paid non-contract position within the center 
that is

[[Page 390]]

not included within the definition of a ``decisionmaking position.''

(Authority: 29 U.S.C. 796a(a))

[60 FR 39221, Aug. 1, 1995]



Sec. 366.6  How are program funds allotted?

    (a) The Secretary allots Federal funds appropriated for FY 1994 and 
subsequent fiscal years for the CIL program to each State in accordance 
with the requirements of section 721 of the Act.
    (b)(1) After the Secretary makes the reservation required by section 
721(b) of the Act, the Secretary makes an allotment, from the remainder 
of the amount appropriated for a fiscal year to carry out part C of 
title VII of the Act, to each State whose State plan has been approved 
under section 706 of the Act and 34 CFR part 364.
    (2) The Secretary makes the allotment under paragraph (b)(1) of this 
section subject to sections 721(c)(1)(B) and (C), 721(c)(2) and (3), and 
721(d) of the Act.

(Authority: 29 U.S.C. 796f)

[59 FR 41900, Aug. 15, 1994. Redesignated at 60 FR 39221, Aug. 1, 1995]



               Subpart B_Training and Technical Assistance



Sec. 366.10  What agencies are eligible for assistance to provide 
training and technical assistance?

    Entities that have experience in the operation of centers are 
eligible to apply for grants to provide training and technical 
assistance under section 721(b) of the Act to eligible agencies, 
centers, and Statewide Independent Living Councils (SILCs).

(Authority: 29 U.S.C. 796f(b)(1))



Sec. 366.11  What financial assistance does the Secretary provide for 
training and technical assistance?

    (a) From funds, if any, reserved under section 721(b)(1) of the Act 
to carry out the purposes of this subpart, the Secretary makes grants 
to, and enters into contracts, cooperative agreements, and other 
arrangements with, entities that have experience in the operation of 
centers.
    (b) An entity receiving assistance in accordance with paragraph (a) 
of this section shall provide training and technical assistance to 
eligible agencies, centers, and SILCs to plan, develop, conduct, 
administer, and evaluate centers.

(Authority: 29 U.S.C. 796f(b)(1)-(3))



Sec. 366.12  How does the Secretary make an award?

    (a) To be eligible to receive a grant or enter into a contract or 
other arrangement under section 721(b) of the Act and this subpart, an 
applicant shall submit an application to the Secretary containing a 
proposal to provide training and technical assistance to eligible 
agencies, centers, and SILCs and any additional information at the time 
and in the manner that the Secretary may require.
    (b) The Secretary provides for peer review of grant applications by 
panels that include persons who are not Federal government employees and 
who have experience in the operation of centers.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f(b))



Sec. 366.13  How does the Secretary determine funding priorities?

    In making awards under this section, the Secretary determines 
funding priorities in accordance with the training and technical 
assistance needs identified by the survey of SILCs and centers required 
by section 721(b)(3) of the Act.

(Authority: 29 U.S.C. 796f(b)(3))



Sec. 366.14  How does the Secretary evaluate an application?

    (a) The Secretary evaluates each application for a grant under this 
subpart on the basis of the criteria in Sec. 366.15.
    (b) The Secretary awards up to 100 points for these criteria.
    (c) The maximum possible score for each criterion is indicated in 
parentheses.

(Authority: 29 U.S.C. 796f(b)(3))

[[Page 391]]



Sec. 366.15  What selection criteria does the Secretary use?

    The Secretary uses the following criteria to evaluate applications 
for new awards for training and technical assistance:
    (a) Meeting the purposes of the program (30 points). The Secretary 
reviews each application to determine how well the project will be able 
to meet the purpose of the program of providing training and technical 
assistance to eligible agencies, centers, and SILCs with respect to 
planning, developing, conducting, administering, and evaluating centers, 
including consideration of--
    (1) The objectives of the project; and
    (2) How the objectives further training and technical assistance 
with respect to planning, developing, conducting, administering, and 
evaluating centers.
    (b) Extent of need for the project (20 points). The Secretary 
reviews each application to determine the extent to which the project 
meets specific needs recognized in title VII of the Act, including 
consideration of--
    (1) The needs addressed by the project;
    (2) How the applicant identified those needs;
    (3) How those needs will be met by the project; and
    (4) The benefits to be gained by meeting those needs.
    (c) Plan of operation (15 points). The Secretary reviews each 
application for information that shows the quality of the plan of 
operation for the project, including--
    (1) The quality of the design of the project;
    (2) The extent to which the plan of management ensures proper and 
efficient administration of the project;
    (3) How well the objectives of the project relate to the purpose of 
the program;
    (4) The quality of the applicant's plan to use its resources and 
personnel to achieve each objective; and
    (5) How the applicant will ensure that project participants who are 
otherwise eligible to participate are selected without regard to race, 
color, national origin, gender, age, or disability.
    (d) Quality of key personnel (7 points). (1) The Secretary reviews 
each application for information that shows the qualifications of the 
key personnel the applicant plans to use on the project, including--
    (i) The qualifications of the project director, if one is to be 
used;
    (ii) The qualifications of each of the other management and 
decision-making personnel to be used in the project;
    (iii) The time that each person referred to in paragraphs (d)(1)(i) 
and (ii) of this section will commit to the project;
    (iv) How the applicant, as part of its nondiscriminatory employment 
practices, will ensure that its personnel are selected for employment 
without regard to race, color, national origin, gender, age, or 
disability; and
    (v) The extent to which the applicant, as part of its 
nondiscriminatory employment practices, encourages applications for 
employment from persons who are members of groups that have been 
traditionally under-represented, including members of racial or ethnic 
minority groups, women, persons with disabilities, and elderly 
individuals.
    (2) To determine personnel qualifications under paragraphs (d)(1)(i) 
and (ii) of this section, the Secretary considers--
    (i) Experience and training in fields related to the objectives of 
the project; and
    (ii) Any other qualifications that pertain to the objectives of the 
project.
    (e) Budget and cost effectiveness (5 points). The Secretary reviews 
each application for information that shows the extent to which--
    (1) The budget is adequate to support the project; and
    (2) Costs are reasonable in relation to the objectives of the 
project.
    (f) Evaluation plan (5 points). The Secretary reviews each 
application to determine the quality of the evaluation plan for the 
project, including the extent to which the applicant's methods of 
evaluation--
    (1) Are appropriate to the project;
    (2) Will determine how successful the project is in meeting its 
goals and objectives; and

[[Page 392]]

    (3) Are objective and produce data that are quantifiable.
    (4) Cross-reference: See 34 CFR 75.590.
    (g) Adequacy of resources (3 points). The Secretary reviews each 
application to determine the adequacy of the resources that the 
applicant plans to devote to the project, including facilities, 
equipment, and supplies.
    (h) Extent of prior experience (15 points). The Secretary reviews 
each application to determine the extent of experience the applicant has 
in the operation of centers and with providing training and technical 
assistance to centers, including--
    (1) Training and technical assistance with planning, developing, and 
administering centers;
    (2) The scope of training and technical assistance provided, 
including methods used to conduct training and technical assistance for 
centers;
    (3) Knowledge of techniques and approaches for evaluating centers; 
and
    (4) The capacity for providing training and technical assistance as 
demonstrated by previous experience in these areas.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f(b))



 Subpart C_Grants to Centers for Independent Living (Centers) in States 
             in Which Federal Funding Exceeds State Funding



Sec. 366.20  When does the Secretary award grants to centers?

    The Secretary awards grants to centers in a State in a fiscal year 
if--
    (a) The amount of Federal funds allotted to the State under section 
721(c) and (d) of the Act to support the general operation of centers is 
greater than the amount of State funds earmarked for the same purpose, 
as determined pursuant to Sec. Sec. 366.29 and 366.31; or
    (b) The Director of a designated State unit (DSU) does not submit to 
the Secretary and obtain approval of an application to award grants 
under section 723 of the Act and Sec. 366.32(a) and (b).

(Authority: 29 U.S.C. 796f-1 and 796f-2(a)(2))



Sec. 366.21  What are the application requirements for existing eligible
agencies?

    To be eligible for assistance, an eligible agency shall submit--
    (a) An application at the time, in the manner, and containing the 
information that is required;
    (b) An assurance that the eligible agency meets the requirements of 
Sec. 366.2; and
    (c) The assurances required by section 725(c) of the Act and subpart 
F of this part.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-1(b))



Sec. 366.22  What is the order of priorities?

    (a) In accordance with a State's allotment and to the extent funds 
are available, the order of priorities for allocating funds among 
centers within a State is as follows:
    (1) Existing centers, as described in Sec. 366.23, that comply with 
the standards and assurances in section 725(b) and (c) of the Act and 
subparts F and G of this part first receive the level of funding each 
center received in the previous year. However, any funds received by an 
existing center to establish a new center at a different geographical 
location pursuant to proposed Sec. 366.2(b)(2) are not included in 
determining the level of funding to the existing center in any fiscal 
year that the new center applies for and receives funds as a separate 
center.
    (2) Existing centers that meet the requirements of paragraph (a)(1) 
of this section then receive a cost-of-living increase in accordance 
with procedures consistent with section 721(c)(3) of the Act.
    (3) New centers, as described in Sec. 366.2(b), that comply with 
the standards and assurances in section 725(b) and (c) of the Act and 
subparts F and G of this part.
    (b) If, after meeting the priorities in paragraphs (a)(1) and (2) of 
this section, there are insufficient funds under the State's allotment 
under section 721(c) and (d) of the Act to fund a new center under 
paragraph (a)(3) of this section, the Secretary may--

[[Page 393]]

    (1) Use the excess funds in the State to assist existing centers 
consistent with the State plan; or
    (2) Reallot these funds in accordance with section 721(d) of the 
Act.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-1(e))



Sec. 366.23  What grants must be made to existing eligible agencies?

    (a) In accordance with the order of priorities established in Sec. 
366.22, an eligible agency may receive a grant if the eligible agency 
demonstrates in its application that it--
    (1) Meets the requirements in Sec. 366.21 or Sec. 366.24;
    (2) Is receiving funds under part C of title VII of the Act on 
September 30, 1993; and
    (3) Is in compliance with the program and fiscal standards and 
assurances in section 725(b) and (c) of the Act and subparts F and G of 
this part. (The indicators of minimum compliance in subpart G of this 
part are used to determine compliance with the evaluation standards in 
section 725(b) of the Act.)
    (b) For purposes of this section, an eligible agency is receiving 
funds under part C of title VII of the Act on September 30, 1993, if it 
was awarded a grant on or before that date, i.e., during FY 1993.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-1(c))



Sec. 366.24  How is an award made to a new center?

    (a) To apply for a grant as a new center, an eligible agency shall--
    (1) Meet the requirements of Sec. 366.2(b);
    (2) Submit an application that meets the requirements of Sec. 
366.21; and
    (3) Meet the requirements of this section.
    (b) Subject to the order of priorities established in Sec. 366.22, 
a grant for a new center may be awarded to the most qualified eligible 
agency that applies for funds under this section, if--
    (1)(i) No center serves a geographic area of a State; or
    (ii) A geographic area of a State is underserved by centers serving 
other areas of the State;
    (2) The eligible agency proposes to serve the geographic area that 
is unserved or underserved in the State; and
    (3) The increase in the allotment of the State under section 721 of 
the Act for a fiscal year, as compared with the immediately preceding 
fiscal year, is sufficient to support an additional center in the State.
    (c) The establishment of a new center under this subpart must be 
consistent with the design included in the State plan pursuant to 34 CFR 
364.25 for establishing a statewide network of centers.
    (d) An applicant may satisfy the requirements of paragraph (c) of 
this section by submitting appropriate documentation demonstrating that 
the establishment of a new center is consistent with the design in the 
State plan required by 34 CFR 364.25.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-1(d))



Sec. 366.25  What additional factor does the Secretary use in making a
grant for a new center under Sec. 366.24?

    In selecting from among applicants for a grant under Sec. 366.24 
for a new center, the Secretary considers comments regarding the 
application, if any, by the SILC in the State in which the applicant is 
located.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-1(d)(1))



Sec. 366.26  How does the Secretary evaluate an application?

    (a) The Secretary evaluates each application for a grant under this 
subpart on the basis of the criteria in Sec. 366.27.
    (b) The Secretary awards up to 100 points for these criteria.
    (c) The maximum possible score for each criterion is indicated in 
parentheses.

(Authority: 29 U.S.C. 796f(b)(3))

[[Page 394]]



Sec. 366.27  What selection criteria does the Secretary use?

    In evaluating each application for a new center under this part, the 
Secretary uses the following selection criteria:
    (a) Extent of the need for the project (20 points). (1) The 
Secretary reviews each application for persuasive evidence that shows 
the extent to which the project meets the specific needs for the 
program, including considerations of--
    (i) The needs addressed by the project;
    (ii) How the applicant identified those needs (e.g., whether from 
the 1990 census data or other current sources);
    (iii) How those needs will be met by the project; and
    (iv) The benefits to be gained by meeting those needs.
    (2) The Secretary looks for information that shows that the need for 
the center has been established based on an assessment of the ability of 
existing programs and facilities to meet the need for IL services of 
individuals with significant disabilities in the geographic area to be 
served.
    (3) The Secretary looks for information that shows--
    (i) That the applicant proposes to establish a new center to serve a 
priority service area that is identified in the current State plan; and
    (ii) The priority that the State has placed on establishing a new 
center in this proposed service area.
    (b) Past performance (5 points). The Secretary reviews each 
application for information that shows the past performance of the 
applicant in successfully providing services comparable to the IL core 
services and other IL services listed in section 7 (29) and (30) of the 
Act and 34 CFR 365.21 and 365.22 and other services that empower 
individuals with significant disabilities.
    (c) Meeting the standards and the assurances (25 points). The 
Secretary reviews each application for information that shows--
    (1) Evidence of demonstrated success in satisfying, or a clearly 
defined plan to satisfy, the standards in section 725(b) of the Act and 
subpart G of this part; and
    (2) Convincing evidence of demonstrated success in satisfying, or a 
clearly defined plan to satisfy, the assurances in section 725(c) of the 
Act and subpart F of this part.
    (d) Quality of key personnel (10 points). (1) The Secretary reviews 
each application for information that shows the qualifications of the 
key personnel the applicant plans to use on the project, including--
    (i) The qualifications of the project director, if one is to be 
used;
    (ii) The qualifications of each of the other management and 
decision-making personnel to be used in the project;
    (iii) The time that each person referred to in paragraphs (d)(1) (i) 
and (ii) of this section will commit to the project;
    (iv) How the applicant, as part of its nondiscriminatory employment 
practices, will ensure that its personnel are selected for employment 
without regard to race, color, national origin, gender, age, or 
disability; and
    (v) The extent to which the applicant, as part of its 
nondiscriminatory employment practices, encourages applications for 
employment from persons who are members of groups that have been 
traditionally under-represented, including--
    (A) Members of racial or ethnic minority groups;
    (B) Women;
    (C) Persons with disabilities; and
    (D) Elderly individuals.
    (2) To determine personnel qualifications under paragraphs (d)(1) 
(i) and (ii) of this section, the Secretary considers--
    (i) Experience and training in fields related to the objectives of 
the project; and
    (ii) Any other qualifications that pertain to the objectives of the 
project.
    (e) Budget and cost effectiveness (10 points). The Secretary reviews 
each application for information that shows the extent to which--
    (1) The budget is adequate to support the project; and
    (2) Costs are reasonable in relation to the objectives of the 
project.
    (f) Evaluation plan (5 points). The Secretary reviews each 
application for information that shows the quality of the evaluation 
plan for the project, including the extent to which the applicant's 
methods of evaluation--

[[Page 395]]

    (1) Are appropriate for the project;
    (2) Will determine how successful the project is in meeting its 
goals and objectives; and
    (3) Are objective and produce data that are quantifiable.
    (4) (Cross-reference: See 34 CFR 75.590.)
    (g) Plan of operation (20 points). The Secretary reviews each 
application for information that shows the quality of the plan of 
operation for the project, including--
    (1) The quality of the design of the project;
    (2) The extent to which the plan of management ensures proper and 
efficient administration of the project;
    (3) How well the objectives of the project relate to the purpose of 
the program;
    (4) The quality and adequacy of the applicant's plan to use its 
resources (including funding, facilities, equipment, and supplies) and 
personnel to achieve each objective;
    (5) How the applicant will ensure that project participants who are 
otherwise eligible to participate are selected without regard to race, 
color, national origin, gender, age, or disability; and
    (6) A clear description of how the applicant will provide equal 
access to services for eligible project participants who are members of 
groups that have been traditionally under-represented, including--
    (i) Members of racial or ethnic minority groups;
    (ii) Women;
    (iii) Elderly individuals; and
    (iv) Children and youth.
    (h) Involvement of individuals with significant disabilities (5 
points). (1) The Secretary reviews each application for information that 
shows that individuals with significant disabilities are appropriately 
involved in the development of the application.
    (2) The Secretary looks for information that shows that individuals 
with significant disabilities or their parents, guardians, or other 
legally authorized advocates or representatives, as appropriate, will be 
substantially involved in planning, policy direction, and management of 
the center, and, to the greatest extent possible, that individuals with 
significant disabilities will be employed by the center.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-1(d)(2)(B))



Sec. 366.28  Under what circumstances may the Secretary award a grant
to a center in one State to serve individuals in another State?

    (a) The Secretary may use funds from the allotment of one State to 
award a grant to a center located in a bordering State if the Secretary 
determines that the proposal of the out-of-State center to serve 
individuals with significant disabilities who reside in the bordering 
State is consistent with the State plan of the State in which these 
individuals reside.
    (b) An applicant shall submit documentation demonstrating that the 
arrangements described in paragraph (a) of this section are consistent 
with the State plan of the State in which the individuals reside.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f (c) and (d))



 Subpart D_Grants to Centers in States in Which State Funding Equals or 
                         Exceeds Federal Funding

   Determining Whether State Funding Equals or Exceeds Federal Funding



Sec. 366.29  When may the Director of the designated State unit (DSU)
award grants to centers?

    (a) The Director of the DSU (Director) may award grants under 
section 723 of the Act and this subpart to centers located within the 
State or in a bordering State in a fiscal year if--
    (1) The Director submits to the Secretary and obtains approval of an 
application to award grants for that fiscal year under section 723 of 
the Act and Sec. 366.32 (a) and (b); and
    (2) The Secretary determines that the amount of State funds that 
were earmarked by the State to support the general operation of centers 
meeting the requirements of part C of chapter 1

[[Page 396]]

of title VII of the Act in the second fiscal year preceding the fiscal 
year for which the application is submitted equaled or exceeded the 
amount of funds allotted to the State under section 721 (c) and (d) of 
the Act (or part B of title VII of the Act as in effect on October 28, 
1992) for that preceding fiscal year.
    (b) For purposes of section 723(a)(1)(A)(iii) of the Act and this 
subpart, the second fiscal year preceding the fiscal year for which the 
State submits an application to administer the CIL program is considered 
the ``preceding fiscal year.'' Example: If FY 1995 is the fiscal year 
for which the State submits an application to administer the CIL program 
under this subpart, FY 1993 is the ``preceding fiscal year.'' In 
determining the ``preceding fiscal year'' under this subpart, the 
Secretary makes any adjustments necessary to accommodate a State's 
multi-year funding cycle or fiscal year that does not coincide with the 
Federal fiscal year.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-2(a)(3))



Sec. 366.30  What are earmarked funds?

    (a) For purposes of this subpart, the amount of State funds that 
were earmarked by a State to support the general operation of centers 
does not include--
    (1) Federal funds used for the general operation of centers;
    (2) State funds used to purchase specific services from a center, 
including State funds used for grants or contracts to procure or 
purchase personal assistance services or particular types of skills 
training;
    (3) State attendant care funds; or
    (4) Social Security Administration reimbursement funds.
    (b) For purposes of this subpart, earmarked funds means funds 
appropriated by the State and expressly or clearly identified as State 
expenditures in the relevant fiscal year for the sole purpose of funding 
the general operation of centers.

(Authority: 29 U.S.C. 711(c) and 796f-2(a)(1)(A))



Sec. 366.31  What happens if the amount of earmarked funds does not 
equal or exceed the amount of Federal funds for a preceding fiscal 

year?

    If the State submits an application to administer the CIL program 
under section 723 of the Act and this subpart for a fiscal year, but did 
not earmark the amount of State funds required by Sec. 366.29(a)(2) in 
the preceding fiscal year, the State shall be ineligible to make grants 
under section 723 of the Act and this subpart after the end of the 
fiscal year succeeding the preceding fiscal year and for each succeeding 
fiscal year.
    Example: A State meets the earmarking requirement in FY 1994. It 
also meets this requirement in FY 1995. However, in reviewing the 
State's application to administer the CIL program in FY 1998, the 
Secretary determines that the State failed to meet the earmarking 
requirement in FY 1996. The State may continue to award grants in FY 
1997 but may not do so in FY 1998 and succeeding fiscal years.

(Authority: 29 U.S.C. 796f-2(a)(1)(B))

                             Awarding Grants



Sec. 366.32  Under what circumstances may the DSU make grants?

    (a) To be eligible to award grants under this subpart and to carry 
out section 723 of the Act for a fiscal year, the Director must submit 
to the Secretary for approval an application at the time and in the 
manner that the Secretary may require and that includes, at a minimum--
    (1) Information demonstrating that the amount of funds earmarked by 
the State for the general operation of centers meets the requirements in 
Sec. 366.29(a)(1); and
    (2) A summary of the annual performance reports submitted to the 
Director from centers in accordance with Sec. 366.50(n).
    (b) If the amount of funds earmarked by the State for the general 
operation of centers meets the requirements in Sec. 366.29(a)(1), the 
Secretary approves the application and designates the Director to award 
the grants and carry out section 723 of the Act.
    (c) If the Secretary designates the Director to award grants and 
carry out section 723 of the Act under paragraph (b) of this section, 
the Director makes

[[Page 397]]

grants to eligible agencies in a State, as described in Sec. 366.2, for 
a fiscal year from the amount of funds allotted to the State under 
section 721(c) and (d) of the Act.
    (d)(1) In the case of a State in which there is both a DSU 
responsible for providing IL services to the general population and a 
DSU responsible for providing IL services for individuals who are blind, 
for purposes of subparts D and E of this part, the ``Director'' shall be 
the Director of the general DSU.
    (2) The State units described in paragraph (d)(1) of this section 
shall periodically consult with each other with respect to the provision 
of services for individuals who are blind.
    (e) The Director may enter into assistance contracts with centers to 
carry out section 723 of the Act. For purposes of this paragraph, an 
assistance contract is an instrument whose principal purpose is to 
transfer funds allotted to the State under section 721 (c) and (d) of 
the Act and this part to an eligible agency to carry out section 723 of 
the Act. Under an assistance contract, the DSU shall assume a role 
consistent with that of the Secretary under section 722 of the Act. If 
the DSU uses an assistance contract to award funds under section 723 of 
the Act, the DSU may not add any requirements, terms, or conditions to 
the assistance contract other than those that would be permitted if the 
assistance contract were a grant rather than an assistance contract. 
Under an assistance contract, as defined in this paragraph, the role of 
the DSU is to ensure that the terms of the assistance contract, which 
are established by chapter 1 of title VII of the Act and the 
implementing regulations in this part and 34 CFR part 364, are 
satisfied.
    (f) The Director may not enter into procurement contracts with 
centers to carry out section 723 of the Act. For purposes of this 
paragraph, a procurement contract is an instrument whose principal 
purpose is to acquire (by purchase, lease, or barter) property or 
services for the direct benefit or use of the DSU. Under a procurement 
contract, the DSU prescribes the specific services it intends to procure 
and the terms and conditions of the procurement.
    (g) In the enforcement of any breach of the terms and conditions of 
an assistance contract, the DSU shall follow the procedures established 
in Sec. Sec. 366.40 through 366.45.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2(a)(2))



Sec. 366.33  What are the application requirements for existing eligible
agencies?

    To be eligible for assistance under this subpart, an eligible agency 
shall comply with the requirements in Sec. 366.21.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-2(b))



Sec. 366.34  What is the order of priorities?

    (a) Unless the Director and the chairperson of the SILC, or other 
individual designated by the SILC to act on behalf of and at the 
direction of the SILC, jointly agree on another order of priorities, the 
Director shall follow the order of priorities in Sec. 366.22 for 
allocating funds among centers within a State, to the extent funds are 
available.
    (b) If the order of priorities in Sec. 366.22 is followed and, 
after meeting the priorities in Sec. 366.22(a) (1) and (2), there are 
insufficient funds under the State's allotment under section 721(c) and 
(d) of the Act to fund a new center under Sec. 366.22(a)(3), the 
Director may--
    (1) Use the excess funds in the State to assist existing centers 
consistent with the State plan; or
    (2) Return these funds to the Secretary for reallotment in 
accordance with section 721(d) of the Act.

(Authority: 29 U.S.C. 711(c) and 796f-2(e))



Sec. 366.35  What grants must be made to existing eligible agencies?

    In accordance with the order of priorities established in Sec. 
366.34(a), an eligible agency may receive a grant under this subpart if 
the eligible agency meets the applicable requirements in Sec. Sec. 
366.2, 366.21, and 366.23.

(Authority: 29 U.S.C. 796f-2(c))

[[Page 398]]



Sec. 366.36  How is an award made to a new center?

    To be eligible for a grant as a new center under this subpart, an 
eligible agency shall meet the requirements for a new center in 
Sec. Sec. 366.2(b) and 366.24, except that the award of a grant to a 
new center under this section is subject to the order of priorities in 
Sec. 366.34(a).

(Authority: 29 U.S.C. 796f-2(d))



Sec. 366.37  What procedures does the Director of the DSU (Director)
use in making a grant for a new center?

    (a) In selecting from among applicants for a grant for a new center 
under Sec. 366.24 of this subpart--
    (1) The Director and the chairperson of the SILC, or other 
individual designated by the SILC to act on behalf of and at the 
direction of the SILC, shall jointly appoint a peer review committee 
that shall rank applications in accordance with the standards and 
assurances in section 725 (b) and (c) of the Act and subparts F and G of 
this part and any criteria jointly established by the Director and the 
chairperson or other designated individual;
    (2) The peer review committee shall consider the ability of each 
applicant to operate a center and shall recommend an applicant to 
receive a grant under this subpart, based on either the selection 
criteria in Sec. 366.27 or the following:
    (i) Evidence of the need for a center, consistent with the State 
plan.
    (ii) Any past performance of the applicant in providing services 
comparable to IL services.
    (iii) The plan for complying with, or demonstrated success in 
complying with, the standards and the assurances in section 725 (b) and 
(c) of the Act and subparts F and G of this part.
    (iv) The quality of key personnel of the applicant and the 
involvement of individuals with significant disabilities by the 
applicant.
    (v) The budget and cost-effectiveness of the applicant.
    (vi) The evaluation plan of the applicant.
    (vii) The ability of the applicant to carry out the plans identified 
in paragraphs (a)(2) (iii) and (vi) of this section.
    (b) The Director shall award the grant on the basis of the 
recommendations of the peer review committee if the actions of the 
committee are consistent with Federal and State law.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-2(d)(2))



Sec. 366.38  What are the procedures for review of centers?

    (a) The Director shall, in accordance with section 723(g)(1) and (h) 
of the Act, periodically review each center receiving funds under 
section 723 of the Act to determine whether the center is in compliance 
with the standards and assurances in section 725 (b) and (c) of the Act 
and subparts F and G of this part.
    (b) The periodic reviews of centers required by paragraph (a) of 
this section must include annual on-site compliance reviews of at least 
15 percent of the centers assisted under section 723 of the Act in that 
State in each year.
    (c) Each team that conducts an on-site compliance review of a center 
shall include at least one person who is not an employee of the 
designated State agency, who has experience in the operation of centers, 
and who is jointly selected by the Director and the chairperson of the 
SILC, or other individual designated by the SILC to act on behalf of and 
at the direction of the SILC.
    (d) A copy of each review under this section shall be provided to 
the Secretary and the SILC.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2(g)(1) and (h))



              Subpart E_Enforcement and Appeals Procedures



Sec. 366.39  What procedures does the Secretary use for enforcement?

    (a) If the Secretary determines that any center receiving funds 
under this part is not in compliance with the standards and assurances 
in section 725 (b) and (c) of the Act and subparts F and G of this part, 
the Secretary immediately notifies the center, by certified mail, return 
receipt requested, or other means that provide proof of receipt,

[[Page 399]]

that the center is out of compliance. The Secretary also offers 
technical assistance to the center to develop a corrective action plan 
to comply with the standards and assurances.
    (b) The Secretary terminates all funds under section 721 of the Act 
to that center 90 days after the date of the notification required by 
paragraph (a) of this section unless--
    (1) The center submits, within 90 days after receiving the 
notification required by paragraph (a) of this section, a corrective 
action plan to achieve compliance that is approved by the Secretary; or
    (2) The center requests a hearing pursuant to paragraph (c) or (d) 
of this section.
    (c) If the Secretary does not approve a center's corrective action 
plan submitted pursuant to paragraph (b)(1) of this section, the center 
has 30 days from receipt of the Secretary's written notice of 
disapproval of the center's corrective action plan to request a hearing 
by submitting a formal written request that gives the reasons why the 
center believes that the Secretary should have approved the center's 
corrective action plan.
    (d) If the center does not submit a corrective action plan to the 
Secretary, the center has 90 days after receiving the notification 
required by paragraph (a) of this section to request a hearing by 
submitting a formal written request that gives the reasons why the 
center believes that the Secretary should have found the center in 
compliance with the standards and assurances in section 725 (b) and (c) 
of the Act and subparts F and G of this part.
    (e) The date of filing a formal written request for a hearing to the 
Secretary under paragraph (c) or (d) of this section is determined in a 
manner consistent with the requirements of 34 CFR 81.12.
    (f) The Secretary issues a written decision to terminate funds to 
the center if, after providing reasonable notice and an opportunity for 
a hearing, the Secretary finds that--
    (1) The center receiving funds under this part is not in compliance 
with the standards and assurances in section 725 (b) and (c) of the Act 
and subparts F and G of this part; or
    (2) The center's corrective action plan submitted under paragraph 
(b)(1) of this section cannot be approved.
    (g) The Secretary's decision to terminate funds to a center pursuant 
to paragraph (f) of this section takes effect upon issuance.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-1(g))



Sec. 366.40  How does the Director initiate enforcement procedures?

    (a) If the Director determines that any center receiving funds under 
this part is not in compliance with the standards and assurances in 
section 725 (b) and (c) of the Act and subparts F and G of this part, 
the Director shall immediately provide the center, by certified mail, 
return receipt requested, or other means that provide proof of receipt, 
with an initial written notice that the center is out of compliance with 
the standards and assurances and that the Director will terminate the 
center's funds or take other proposed significant adverse action against 
the center 90 days after the center's receipt of this initial written 
notice. The Director shall provide technical assistance to the center to 
develop a corrective action plan to comply with the standards and 
assurances.
    (b) Unless the center submits, within 90 days after receiving the 
notification required by paragraph (a) of this section, a corrective 
action plan to achieve compliance that is approved by the Director or, 
if appealed, by the Secretary, the Director shall terminate all funds 
under section 723 of the Act to a center 90 days after the later of--
    (1) The date that the center receives the initial written notice 
required by paragraph (a) of this section; or
    (2) The date that the center receives the Secretary's final decision 
issued pursuant to Sec. 366.46(c) if--
    (i) The center files a formal written appeal of the Director's final 
written decision pursuant to Sec. 366.44(a); or
    (ii) The center files a formal written appeal of the decision 
described in the

[[Page 400]]

Director's initial written notice pursuant to Sec. 366.44(b).

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2(g) and (i))



Sec. 366.41  What must be included in an initial written notice from 
the Director?

    The initial written notice required by Sec. 366.40(a) must--
    (a) Include, at a minimum, the following:
    (1) The name of the center.
    (2) The reason or reasons for proposing the termination of funds or 
other significant adverse action against the center, including any 
evidence that the center has failed to comply with any of the evaluation 
standards or assurances in section 725(b) and (c) of the Act and 
subparts F and G of this part.
    (3) The effective date of the proposed termination of funds or other 
significant adverse action against the center;
    (b) Be given 90 days in advance of the date the Director intends to 
terminate a center's funds or take any other significant adverse action 
against the center;
    (c) Inform the center that it has 90 days from the date the center 
receives the notice to submit a corrective action plan;
    (d) Inform the center that it may seek mediation and conciliation in 
accordance with Sec. 366.40(a) to resolve any dispute with the Director 
within the 90 days before the proposed termination of funds or other 
significant adverse action against the center; and
    (e) Inform the center that, if mediation and conciliation are not 
successful and the Director does not issue a final written decision 
pursuant to Sec. 366.42, the center may appeal to the Secretary the 
decision described in the Director's initial written notice on or after 
the 90th day, but not later than the 120th day, after the center 
receives the Director's initial decision.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2 (g) and (i))



Sec. 366.42  When does a Director issue a final written decision?

    (a) If the center submits a corrective action plan in accordance 
with Sec. 366.40(b), the Director shall provide to the center, not 
later than the 120th day after the center receives the Director's 
initial written notice, a final written decision approving or 
disapproving the center's corrective action plan and informing the 
center, if appropriate, of the termination of the center's funds or any 
other proposed significant adverse action against the center.
    (b) The Director shall send the final written decision to the center 
by registered or certified mail, return receipt requested, or other 
means that provide a record that the center received the Director's 
final written decision.
    (c) A Director's final written decision to terminate funds or take 
any other adverse action against a center may not take effect until 30 
days after the date that the center receives it.
    (d) If a center appeals pursuant to Sec. 366.44(a), the Director's 
final written decision to terminate funds or take any other adverse 
action against a center does not take effect until the Secretary issues 
a final decision.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2 (g) and (i))



Sec. 366.43  What must be included in the Director's final written 
decision?

    The Director's final written decision to disapprove a center's 
corrective action plan required by Sec. 366.42 must--
    (a) Address any response from the center to the Director's initial 
written notice to terminate funds or take other significant adverse 
action against the center;
    (b) Include a statement of the reasons why the Director could not 
approve the corrective action plan; and
    (c) Inform the center of its right to appeal to the Secretary the 
Director's final written decision to terminate funds or take any other 
significant adverse action against the center.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2 (g) and (i))

[[Page 401]]



Sec. 366.44  How does a center appeal a decision included in a 
Director's initial written notice or a Director's final written 

decision?

    (a) To obtain the Secretary's review of a Director's final written 
decision to disapprove a center's corrective action plan submitted 
pursuant to Sec. 366.40(b), the center shall file, within 30 days from 
receipt of the Director's final written decision, a formal written 
appeal with the Secretary giving the reasons why the center believes 
that the Director should have approved the center's corrective action 
plan. (Cross-reference: See Sec. 366.42.)
    (b) To obtain the Secretary's review of a decision described in a 
Director's initial written notice, a center that does not submit a 
corrective action plan to a Director shall file, in accordance with 
paragraph (c)(1)(i) of this section, a formal written appeal with the 
Secretary giving the reasons why the center believes that the Director 
should have found the center in compliance with the standards and 
assurances in section 725 (b) and (c) of the Act and subparts F and G of 
this part.
    (c) To appeal to the Secretary a decision described in a Director's 
initial written notice or a Director's final written decision to 
disapprove a center's corrective action plan and to terminate or take 
other significant adverse action, a center shall file with the 
Secretary--
    (1) A formal written appeal--
    (i) On or after the 90th day but not later than the 120th day 
following a center's receipt of a Director's initial written notice; or
    (ii) On or before the 30th day after a center's receipt of the 
Director's final written decision to disapprove a center's corrective 
action plan and to terminate or take other significant adverse action;
    (2) A copy of the corrective action plan, if any, submitted to the 
Director; and
    (3) One copy each of any other written submissions sent to the 
Director in response to the Director's initial written notice to 
terminate funds or take other significant adverse action against the 
center.
    (d) The date of filing a formal written appeal to the Secretary 
under paragraph (c) of this section is determined in a manner consistent 
with the requirements of 34 CFR 81.12.
    (e) If the center files a formal written appeal with the Secretary, 
the center shall send a separate copy of this appeal to the Director by 
registered or certified mail, return receipt requested, or other means 
that provide a record that the Director received a separate copy of the 
center's written appeal.
    (f) The center's formal written appeal to the Secretary must state 
why--
    (1) The Director has not met the burden of showing that the center 
is not in compliance with the standards and assurances in section 725 
(b) and (c) of the Act and in subparts F and G of this part;
    (2) The corrective action plan, if any, should have been approved; 
or
    (3) The Director has not met the procedural requirements of 
Sec. Sec. 366.40 through 366.45.
    (g) As part of its submissions under this section, the center may 
request an informal meeting with the Secretary at which representatives 
of both parties will have an opportunity to present their views on the 
issues raised in the appeal.
    (h) A Director's decision to terminate funds that is described in an 
initial written notice or final written decision is stayed as of the 
date (determined pursuant to paragraph (d) of this section) that the 
center files a formal written appeal with the Secretary.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2(g)(2) and (i))



Sec. 366.45  What must a Director do upon receipt of a copy of a 
center's formal written appeal to the Secretary?

    (a) If the center files a formal written appeal in accordance with 
Sec. 366.44(c), the Director shall, within 15 days of receipt of the 
center's appeal, submit to the Secretary one copy each of the following:
    (1) The Director's initial written notice to terminate funds or take 
any other significant adverse action against the center sent to the 
center.

[[Page 402]]

    (2) The Director's final written decision, if any, to disapprove the 
center's corrective action plan and to terminate the center's funds or 
take any other significant adverse action against the center.
    (3) Any other written documentation or submissions the Director 
wishes the Secretary to consider.
    (4) Any other information requested by the Secretary.
    (b) As part of its submissions under this section, the Director may 
request an informal meeting with the Secretary at which representatives 
of both parties will have an opportunity to present their views on the 
issues raised in the appeal.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2(g)(2) and (i))



Sec. 366.46  How does the Secretary review a center's appeal of a 
decision included in a Director's initial written notice or a 

Director's final written decision?

    (a) If either party requests a meeting under Sec. Sec. 366.44(g) or 
366.45(b), the meeting is to be held within 30 days of the date of the 
Secretary's receipt of the submissions from the Director that are 
required by Sec. 366.45(a). The Secretary promptly notifies the parties 
of the date and place of the meeting.
    (b) Within 30 days of the informal meeting permitted under paragraph 
(a) of this section or, if neither party has requested an informal 
meeting, within 60 days of the date of receipt of the submissions 
required from the Director by Sec. 366.45(a), the Secretary issues to 
the parties the Secretary's decision.
    (c) The Secretary reviews a decision included in a Director's 
initial written notice or a Director's final written decision to 
disapprove the center's corrective action plan and to terminate the 
center's funds or take any other significant adverse action against the 
center based on the record submitted under Sec. Sec. 366.44 and 366.45 
and may affirm or, if the Secretary finds that the decision included in 
a Director's initial written notice or a Director's final written 
decision is not supported by the evidence or is not in accordance with 
the law, may--
    (1) Remand the appeal for further findings; or
    (2) Reverse the decision described in the Director's initial written 
notice or the Director's final written decision to disapprove the 
center's corrective action plan and to terminate funds or take any other 
significant adverse action against the center.
    (d) The Secretary sends copies of his or her decision to the parties 
by registered or certified mail, return receipt requested, or other 
means that provide a record of receipt by both parties.
    (e) If the Secretary affirms the decision described in a Director's 
initial written notice or the Director's final written decision, the 
Director's decision takes effect on the date of the Secretary's final 
decision to affirm.

(Authority: 29 U.S.C. 711(c) and 796f-2(g)(2) and (i))



                    Subpart F_Assurances for Centers



Sec. 366.50  What assurances shall a center provide and comply with?

    To be eligible for assistance under this part, an eligible agency 
shall provide satisfactory assurances that--
    (a) The applicant is an eligible agency;
    (b) The center will be designed and operated within local 
communities by individuals with disabilities, including an assurance 
that the center will have a board that is the principal governing body 
of the center and a majority of which must be composed of individuals 
with significant disabilities;
    (c) The applicant will comply with the standards in subpart G;
    (d) The applicant will establish clear priorities through--
    (1) Annual and three-year program and financial planning objectives 
for the center, including overall goals or a mission for the center;
    (2) A work plan for achieving the goals or mission, specific 
objectives, service priorities, and types of services to be provided; 
and
    (3) A description that demonstrates how the proposed activities of 
the applicant are consistent with the most recent three-year State plan 
under section 704 of the Act;
    (e) The applicant will use sound organizational and personnel 
assignment

[[Page 403]]

practices, including taking affirmative action to employ and advance in 
employment qualified individuals with significant disabilities on the 
same terms and conditions required with respect to the employment of 
individuals with disabilities under section 503 of the Act;
    (f) The applicant will ensure that the majority of the staff, and 
individuals in decision-making positions, of the applicant are 
individuals with disabilities;
    (g) The applicant will practice sound fiscal management, including 
making arrangements for an annual independent fiscal audit;
    (h) The applicant will conduct an annual self-evaluation, prepare an 
annual performance report, and maintain records adequate to measure 
performance with respect to the standards in subpart G;
    (i) The annual performance report and the records of the center's 
performance required by paragraph (h) of this section must each contain 
information regarding, at a minimum--
    (1) The extent to which the center is in compliance with the 
standards in section 725(b) of the Act and subpart G of this part 
(Cross-reference: See Sec. Sec. 366.70(a)(2) and 366.73);
    (2) The number and types of individuals with significant 
disabilities receiving services through the center;
    (3) The types of services provided through the center and the number 
of individuals with significant disabilities receiving each type of 
service;
    (4) The sources and amounts of funding for the operation of the 
center;
    (5) The number of individuals with significant disabilities who are 
employed by, and the number who are in management and decision-making 
positions in, the center;
    (6) The number of individuals from minority populations who are 
employed by, and the number who are in management and decision-making 
positions in, the center; and
    (7) A comparison, if appropriate, of the activities of the center in 
prior years with the activities of the center in most recent years;
    (j) Individuals with significant disabilities who are seeking or 
receiving services at the center will be notified by the center of the 
existence of, the availability of, and how to contact the client 
assistance program;
    (k) Aggressive outreach regarding services provided through the 
center will be conducted in an effort to reach populations of 
individuals with significant disabilities that are unserved or 
underserved by programs under title VII of the Act, especially minority 
groups and urban and rural populations;
    (l) Staff at centers will receive training on how to serve unserved 
and underserved populations, including minority groups and urban and 
rural populations;
    (m) The center will submit to the SILC a copy of its approved grant 
application and the annual performance report required under paragraph 
(h) of this section;
    (n) The center will prepare and submit to the DSU, if the center 
received a grant from the Director, or to the Secretary, if the center 
received a grant from the Secretary, within 90 days of the end of each 
fiscal year, the annual performance report that is required to be 
prepared pursuant to paragraph (h) of this section and that contains the 
information described in paragraph (i) of this section; and
    (o) An IL plan as described in section 704(e) of the Act will be 
developed for each individual who will receive services under this part 
unless the individual signs a waiver stating that an IL plan is 
unnecessary.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796f-4)



        Subpart G_Evaluation Standards and Compliance Indicators

    Source: 60 FR 39221, Aug. 1, 1995, unless otherwise noted.



Sec. 366.60  What are the project evaluation standards?

    To be eligible to receive funds under this part, an applicant must 
agree to comply with the following evaluation standards:
    (a) Evaluation standard 1--Philosophy. The center shall promote and 
practice the IL philosophy of--

[[Page 404]]

    (1) Consumer control of the center regarding decisionmaking, service 
delivery, management, and establishment of the policy and direction of 
the center;
    (2) Self-help and self-advocacy;
    (3) Development of peer relationships and peer role models;
    (4) Equal access of individuals with significant disabilities to all 
of the center's services, programs, activities, resources, and 
facilities, whether publicly or privately funded, without regard to the 
type of significant disability of the individual; and
    (5) Promoting equal access of individuals with significant 
disabilities to all services, programs, activities, resources, and 
facilities in society, whether public or private, and regardless of 
funding source, on the same basis that access is provided to other 
individuals with disabilities and to individuals without disabilities.
    (b) Evaluation standard 2--Provision of services. (1) The center 
shall provide IL services to individuals with a range of significant 
disabilities.
    (2) The center shall provide IL services on a cross-disability basis 
(i.e., for individuals with all different types of significant 
disabilities, including individuals with significant disabilities who 
are members of populations that are unserved or underserved by programs 
under title VII of this Act).
    (3) The center shall determine eligibility for IL services. The 
center may not base eligibility on the presence of any one specific 
significant disability.
    (c) Evaluation standard 3--Independent living goals. The center 
shall facilitate the development and achievement of IL goals selected by 
individuals with significant disabilities who seek assistance in the 
development and achievement of IL goals from the center.
    (d) Evaluation standard 4--Community options. The center shall 
conduct activities to increase the availability and improve the quality 
of community options for IL to facilitate the development and 
achievement of IL goals by individuals with significant disabilities.
    (e) Evaluation standard 5--Independent living core services. The 
center shall provide IL core services and, as appropriate, a combination 
of any other IL services specified in section 7(30)(B) of the Act.
    (f) Evaluation standard 6--Activities to increase community 
capacity. The center shall conduct activities to increase the capacity 
of communities within the service area of the center to meet the needs 
of individuals with significant disabilities.
    (g) Evaluation standard 7--Resource development activities. The 
center shall conduct resource development activities to obtain funding 
from sources other than chapter 1 of title VII of the Act.

(Authority: 29 U.S.C. 796f-4)



Sec. 366.61  What are the compliance indicators?

    (a) The compliance indicators establish the activities that a center 
shall carry out to demonstrate minimum compliance with the evaluation 
standards in Sec. 366.60.
    (b) If a center fails to satisfy any one of the indicators, the 
center is out of compliance with the evaluation standards.

(Authority: 20 U.S.C. 796d-1(b))



Sec. 366.62  What are the requirements for continuation funding?

    (a) To be eligible to receive a continuation award for the third or 
any subsequent year of a grant, a center shall--
    (1) Have complied fully during the previous project year with all of 
the terms and conditions of its grant;
    (2) Provide adequate evidence in its most recent annual performance 
report that the center is in minimum compliance with the evaluation 
standards in Sec. 366.60 (Cross-reference: See Sec. Sec. 366.50 (h) 
and (i) and 34 CFR 75.118(a)); and
    (3) Meet the requirements in this part 366.
    (b) If a recipient receives funding for more than one center, each 
individual center that receives a continuation award shall meet the 
requirements of paragraph (a) of this section.

(Approved by the Office of Management and Budget under control number 
1820-0606)

(Authority: 29 U.S.C. 711(c), 796d-1(b), 796e, and 796f-4)

[[Page 405]]



Sec. 366.63  What evidence must a center present to demonstrate that
it is in minimum compliance with the evaluation standards?

    (a) Compliance indicator 1--Philosophy--(1) Consumer control. (i) 
The center shall provide evidence in its most recent annual performance 
report that--
    (A) Individuals with significant disabilities constitute more than 
50 percent of the center's governing board; and
    (B) Individuals with disabilities constitute more than 50 percent of 
the center's--
    (1) Employees in decisionmaking positions; and
    (2) Employees in staff positions.
    (ii) A center may exclude personal assistants, readers, drivers, and 
interpreters employed by the center from the requirement in paragraph 
(a)(1)(B) of this section.
    (iii) The determination that over 50 percent of a center's employees 
in decisionmaking and staff positions are individuals with disabilities 
must be based on the total number of hours (excluding any overtime) for 
which employees are actually paid during the last six-month period 
covered by the center's most recent annual performance report. However, 
a center must include in this determination its employees who are on 
unpaid family or maternity leave during this six-month period.
    (2) Self-help and self-advocacy. The center shall provide evidence 
in its most recent annual performance report that it promotes self-help 
and self-advocacy among individuals with significant disabilities (e.g., 
by conducting activities to train individuals with significant 
disabilities in self-advocacy).
    (3) Development of peer relationships and peer role models. The 
center shall provide evidence in its most recent annual performance 
report that it promotes the development of peer relationships and peer 
role models among individuals with significant disabilities (e.g., by 
using individuals with significant disabilities who have achieved IL 
goals [whether the goals were achieved independently or through 
assistance and services provided by a center] as instructors [volunteer 
or paid] in its training programs or as peer counselors).
    (4) Equal access. The center shall provide evidence in its most 
recent annual performance report that it--
    (i) Ensures equal access of individuals with significant 
disabilities, including communication and physical access, to the 
center's services, programs, activities, resources, and facilities, 
whether publicly or privately funded. Equal access, for purposes of this 
paragraph, means that the same access is provided to any individual with 
a significant disability regardless of the individual's type of 
significant disability.
    (ii) Advocates for and conducts activities that promote the equal 
access to all services, programs, activities, resources, and facilities 
in society, whether public or private, and regardless of funding source, 
for individuals with significant disabilities. Equal access, for 
purposes of this paragraph, means that the same access provided to 
individuals without disabilities is provided in the center's service 
area to individuals with significant disabilities.
    (5) Alternative formats. To ensure that a center complies with Sec. 
366.63(a)(4) and for effective communication, a center shall make 
available in alternative formats, as appropriate, all of its written 
policies and materials and IL services.
    (b) Compliance indicator 2--Provision of services on a cross-
disability basis. The center shall provide evidence in its most recent 
annual performance report that it--
    (1) Provides IL services to eligible individuals or groups of 
individuals without restrictions based on the particular type or types 
of significant disability of an individual or group of individuals, 
unless the restricted IL service (other than the IL core services) is 
unique to the significant disability of the individuals to be served;
    (2) Provides IL services to individuals with a diversity of 
significant disabilities and individuals who are members of populations 
that are unserved or underserved by programs under title VII of the Act; 
and
    (3) Provides IL core services to individuals with significant 
disabilities in a manner that is neither targeted nor

[[Page 406]]

limited to a particular type of significant disability.
    (c) Compliance indicator 3--Independent living goals. (1) The center 
shall provide evidence in its most recent annual performance report that 
it--
    (i) Maintains a consumer service record that meets the requirements 
of 34 CFR 364.53 for each consumer;
    (ii) Facilitates the development and achievement of IL goals 
selected by individuals with significant disabilities who request 
assistance from the center;
    (iii) Provides opportunities for consumers to express satisfaction 
with the center's services and policies in facilitating their 
achievement of IL goals and provides any results to its governing board 
and the appropriate SILC; and
    (iv) Notifies all consumers of their right to develop or waive the 
development of an IL plan (ILP).
    (2) The center shall provide evidence in its most recent annual 
performance report that the center maintains records on--
    (i) The IL goals that consumers receiving services at the center 
believe they have achieved;
    (ii) The number of ILPs developed by consumers receiving services at 
the center; and
    (iii) The number of waivers signed by consumers receiving services 
at the center stating that an ILP is unnecessary.
    (d) Compliance indicator 4--Community options and community 
capacity. The center shall provide evidence in its most recent annual 
performance report that, during the project year covered by the center's 
most recent annual performance report, the center promoted the increased 
availability and improved quality of community-based programs that serve 
individuals with significant disabilities and promoted the removal of 
any existing architectural, attitudinal, communication, environmental, 
or other type of barrier that prevents the full integration of these 
individuals into society. This evidence must demonstrate that the center 
performed at least one activity in each of the following categories:
    (1) Community advocacy.
    (2) Technical assistance to the community on making services, 
programs, activities, resources, and facilities in society accessible to 
individuals with significant disabilities.
    (3) Public information and education.
    (4) Aggressive outreach to members of populations of individuals 
with significant disabilities that are unserved or underserved by 
programs under title VII of the Act in the center's service area.
    (5) Collaboration with service providers, other agencies, and 
organizations that could assist in improving the options available for 
individuals with significant disabilities to avail themselves of the 
services, programs, activities, resources, and facilities in the 
center's service area.
    (e) Compliance indicator 5--IL core services and other IL services. 
The center shall provide evidence in its most recent annual performance 
report that it provides--
    (1) Information and referral services to all individuals who request 
this type of assistance or services from the center in formats 
accessible to the individual requesting these services; and
    (2) As appropriate in response to requests from individuals with 
significant disabilities who are eligible for IL services from the 
center, the following services:
    (i) IL skills training.
    (ii) Peer counseling (including cross-disability peer counseling).
    (iii) Individual and systems advocacy.
    (iv) A combination, as appropriate, of any two or more of the IL 
services defined in section 7(30)(B) of the Act.
    (f) Compliance indicator 6--Resource development activities. The 
center shall provide evidence in its most recent annual performance 
report that it has conducted resource development activities within the 
period covered by the performance report to obtain funding from sources 
other than chapter 1 of title VII of the Act.

(Approved by the Office of Management and Budget under control number 
1820-0606)

(Authority: 29 U.S.C. 711(c), 796d-1(b), and 796f-4)

[[Page 407]]



PART 367_INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
BLIND--Table of Contents



                            Subpart A_General

Sec.
367.1 What is the Independent Living Services for Older Individuals Who 
          Are Blind program?
367.2 Who is eligible for an award?
367.3 What activities may the Secretary fund?
367.4 What regulations apply?
367.5 What definitions apply?

            Subpart B_What Are the Application Requirements?

367.10 How does a designated State agency (DSA) apply for an award?
367.11 What assurances must a DSA include in its application?

    Subpart C_How Does the Secretary Award Discretionary Grants on a 
                           Competitive Basis?

367.20 Under what circumstances does the Secretary award discretionary 
          grants on a competitive basis to States?
367.21 How does the Secretary evaluate an application for a 
          discretionary grant?
367.22 What selection criteria does the Secretary use?
367.23 What additional factor does the Secretary consider?

    Subpart D_How Does the Secretary Award Contingent Formula Grants?

367.30 Under what circumstances does the Secretary award contingent 
          formula grants to States?
367.31 How are allotments made?
367.32 How does the Secretary reallot funds under section 752(j)(4) of 
          the Act?

          Subpart E_What Conditions Must Be Met After an Award?

367.40 What matching requirements apply?
367.41 When may a DSA award grants or contracts?
367.42 When does the Secretary award noncompetitive continuation grants?

    Authority: 29 U.S.C. 796k, unless otherwise noted.

    Source: 59 FR 41909, Aug. 15, 1994, unless otherwise noted.



                            Subpart A_General



Sec. 367.1  What is the Independent Living Services for Older 
Individuals Who Are Blind program?

    This program supports projects that--
    (a) Provide any of the independent living (IL) services to older 
individuals who are blind that are described in Sec. 367.3(b);
    (b) Conduct activities that will improve or expand services for 
these individuals; and
    (c) Conduct activities to help improve public understanding of the 
problems of these individuals.

(Authority: 29 U.S.C. 796k(a) and (b))



Sec. 367.2  Who is eligible for an award?

    Any designated State agency (DSA) is eligible for an award under 
this program if the DSA--
    (a) Is authorized to provide rehabilitation services to individuals 
who are blind; and
    (b) Submits to and obtains approval from the Secretary of an 
application that meets the requirements of section 752(i) of the Act and 
Sec. Sec. 367.10 and 367.11.

(Authority: 29 U.S.C. 796k(a)(2))



Sec. 367.3  What activities may the Secretary fund?

    (a) The DSA may use funds awarded under this part for the activities 
described in Sec. 367.1 and paragraph (b) of this section.
    (b) For purposes of Sec. 367.1(a), IL services for older 
individuals who are blind include--
    (1) Services to help correct blindness, such as--
    (i) Outreach services;
    (ii) Visual screening;
    (iii) Surgical or therapeutic treatment to prevent, correct, or 
modify disabling eye conditions; and
    (iv) Hospitalization related to these services;
    (2) The provision of eyeglasses and other visual aids;
    (3) The provision of services and equipment to assist an older 
individual who is blind to become more mobile and more self-sufficient;
    (4) Mobility training, Braille instruction, and other services and 
equipment

[[Page 408]]

to help an older individual who is blind adjust to blindness;
    (5) Guide services, reader services, and transportation;
    (6) Any other appropriate service designed to assist an older 
individual who is blind in coping with daily living activities, 
including supportive services and rehabilitation teaching services;
    (7) IL skills training, information and referral services, peer 
counseling, and individual advocacy training; and
    (8) Other IL services, as defined in section 7(30) of the Act and as 
listed in 34 CFR 365.22.

(Authority: 29 U.S.C. 796k (d) and (e))



Sec. 367.4  What regulations apply?

    The following regulations apply to the Independent Living Services 
for Older Individuals Who Are Blind program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations), with respect 
to subgrants to an entity that is not a State or local government or 
Indian tribal organization.
    (2) 34 CFR part 75 (Direct Grant Programs), with respect to grants 
under subpart C.
    (3) 34 CFR part 76 (State-Administered Programs), with respect to 
grants under subpart D.
    (4) 34 CFR part 77 (Definitions That Apply to Department 
Regulations).
    (5) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (6) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (7) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (8) 34 CFR part 82 (New Restrictions on Lobbying).
    (9) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (10) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 367.
    (c) The following provisions in 34 CFR part 364:
    (1) Section 364.4 (What definitions apply?).
    (2) Section 364.5 (What is program income and how may it be used?)
    (3) Section 364.6 (What requirements apply to the obligation of 
Federal funds and program income?)
    (4) Section 364.30 (What notice must be given about the Client 
Assistance Program (CAP)?).
    (5) Section 364.37 (What access to records must be provided?).
    (6) Section 364.56 (What are the special requirements pertaining to 
the protection, use, and release of personal information?).
    (d) The following provisions in 34 CFR part 365:
    (1) Section 365.13 (What requirements apply if the State's non-
Federal share is in cash?).
    (2) Section 365.14 (What conditions relating to cash or in-kind 
contributions apply to awards to grantees, subgrantees, or 
contractors?).
    (3) Section 365.15 (What requirements apply if the State's non-
Federal share is in kind?).
    (4) Section 365.16 (What requirements apply to refunds and 
rebates?).

(Authority: 29 U.S.C. 711(c) and 796k)



Sec. 367.5  What definitions apply?

    In addition to the definitions in 34 CFR 364.4, the following 
definitions also apply to this part:
    Independent living services for older individuals who are blind 
means those services listed in Sec. 367.3(b).
    Older individual who is blind means an individual age fifty-five or 
older whose severe visual impairment makes competitive employment 
extremely difficult to obtain but for whom IL goals are feasible.

(Authority: 29 U.S.C. 711(c) and 796j)



            Subpart B_What Are the Application Requirements?



Sec. 367.10  How does a designated State agency (DSA) apply for an award?

    To receive a grant under section 752(i) or a reallotment grant under 
section 752(j)(4) of the Act, a DSA must submit to and obtain approval 
from the

[[Page 409]]

Secretary of an application for assistance under this program at the 
time, in the form and manner, and containing the agreements, assurances, 
and information, that the Secretary determines to be necessary to carry 
out this program.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796k(c)(2) and (i)(1))



Sec. 367.11  What assurances must a DSA include in its application?

    An application for a grant under section 752(i) or a reallotment 
grant under section 752(j)(4) of the Act must contain an assurance 
that--
    (a) Grant funds will be expended only for the purposes described in 
Sec. 367.1;
    (b) With respect to the costs of the program to be carried out by 
the State pursuant to this part, the State will make available, directly 
or through donations from public or private entities, non-Federal 
contributions toward these costs in an amount that is not less than $1 
for each $9 of Federal funds provided in the grant;
    (c) In carrying out Sec. 367.1(a) and (b), and consistent with 34 
CFR 364.28, the DSA will seek to incorporate into and describe in the 
State plan under section 704 of the Act any new methods and approaches 
relating to IL services for older individuals who are blind that are 
developed by projects funded under this part and that the DSA determines 
to be effective;
    (d) At the end of each fiscal year, the DSA will prepare and submit 
to the Secretary a report, with respect to each project or program the 
DSA operates or administers under this part, whether directly or through 
a grant or contract, that contains, information that the Secretary 
determines necessary for the proper and efficient administration of this 
program, including--
    (1) The number and types of older individuals who are blind, 
including older individuals who are blind from minority backgrounds, and 
are receiving services;
    (2) The types of services provided and the number of older 
individuals who are blind and are receiving each type of service;
    (3) The sources and amounts of funding for the operation of each 
project or program;
    (4) The amounts and percentages of resources committed to each type 
of service provided;
    (5) Data on actions taken to employ, and advance in employment, 
qualified--
    (i) Individuals with significant disabilities;
    (ii) Older individuals with significant disabilities who are blind;
    (iii) Individuals who are members of racial or ethnic minority 
groups;
    (iv) Women; and
    (v) Elderly individuals;
    (6) A comparison, if appropriate, of prior year activities with the 
activities of the most recent year; and
    (7) Any new methods and approaches relating to IL services for older 
individuals who are blind that are developed by projects funded under 
this part;
    (e) The DSA will--
    (1) Provide services that contribute to the maintenance of, or the 
increased independence of, older individuals who are blind; and
    (2) Engage in--
    (i) Capacity-building activities, including collaboration with other 
agencies and organizations;
    (ii) Activities to promote community awareness, involvement, and 
assistance; and
    (iii) Outreach efforts;
    (f) The application is consistent with the State plan for providing 
IL services required by section 704 of the Act and subpart C of 34 CFR 
part 364; and
    (g) The applicant has been designated by the State as the sole State 
agency authorized to provide rehabilitation services to individuals who 
are blind.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796k(d), (f), (h), and (i))

[[Page 410]]



    Subpart C_How Does the Secretary Award Discretionary Grants on a 
                           Competitive Basis?



Sec. 367.20  Under what circumstances does the Secretary award 
discretionary grants on a competitive basis to States?

    (a) In the case of a fiscal year for which the amount appropriated 
under section 753 of the Act is less than $13,000,000, the Secretary 
awards discretionary grants under this part on a competitive basis to 
States.
    (b) Subparts A, B, C, and E of this part govern the award of 
competitive grants under this part.

(Authority: 29 U.S.C. 796k(b)(1))



Sec. 367.21  How does the Secretary evaluate an application for a 
discretionary grant?

    (a) The Secretary evaluates an application for a discretionary grant 
on the basis of the criteria in Sec. 367.22.
    (b) The Secretary awards up to 100 points for these criteria.
    (c) The maximum possible score for each criterion is indicated in 
parentheses.

(Authority: 29 U.S.C. 711(c) and 796k(b)(1) and (i)(1))



Sec. 367.22  What selection criteria does the Secretary use?

    The Secretary uses the following criteria to evaluate an application 
for a discretionary grant:
    (a) Extent of need for the project (20 points). (1) The Secretary 
reviews each application to determine the extent to which the project 
meets the specific needs of the program, including consideration of--
    (i) The needs addressed by the project;
    (ii) How the applicant identified those needs;
    (iii) How those needs will be met by the project; and
    (iv) The benefits to be gained by meeting those needs.
    (2) The Secretary reviews each application to determine--
    (i) The extent that the need for IL services for older individuals 
who are blind is justified, in terms of complementing or expanding 
existing IL and aging programs and facilities; and
    (ii) The potential of the project to support the overall mission of 
the IL program, as stated in section 701 of the Act.
    (b) Plan of operation (25 points). The Secretary reviews each 
application to determine the quality of the plan of operation for the 
project, including--
    (1) The quality of the design of the project;
    (2) The extent to which the plan of management ensures proper and 
efficient administration of the project;
    (3) How well the objectives of the project relate to the purpose of 
the program;
    (4) The quality and adequacy of the applicant's plan to use its 
resources (including funding, facilities, equipment, and supplies) and 
personnel to achieve each objective;
    (5) How the applicant will ensure that project participants who are 
otherwise eligible to participate are selected without regard to race, 
color, national origin, gender, age, or disability;
    (6) A clear description of how the applicant will provide equal 
access to services for eligible project participants who are members of 
groups that have been traditionally under-represented, including members 
of racial or ethnic minority groups; and
    (7) The extent to which the plan of operation and management 
includes involvement by older individuals who are blind in planning and 
conducting program activities.
    (c) Quality of key personnel (10 points). (1) The Secretary reviews 
each application to determine the qualifications of the key personnel 
the applicant plans to use on the project, including--
    (i) The qualifications of the project director;
    (ii) The qualifications of each of the other management and 
decision-making personnel to be used in the project;
    (iii) The time that each person referred to in paragraphs (c)(1)(i) 
and (ii) of this section will commit to the project;
    (iv) How the applicant, as part of its nondiscriminatory employment 
practices, will ensure that its personnel are

[[Page 411]]

selected for employment without regard to race, color, national origin, 
gender, age, or disability; and
    (v) The extent to which the applicant, as part of its 
nondiscriminatory employment practices, encourages applications for 
employment from persons who are members of groups that have been 
traditionally under-represented, including--
    (A) Members of racial or ethnic minority groups;
    (B) Women;
    (C) Persons with disabilities; and
    (D) Elderly individuals.
    (2) To determine personnel qualifications under paragraphs (c)(1)(i) 
and (ii) of this section, the Secretary considers--
    (i) Experience and training in fields related to the scope of the 
project; and
    (ii) Any other qualifications that pertain to the objectives of the 
project.
    (d) Budget and cost effectiveness (5 points). The Secretary reviews 
each application to determine the extent to which--
    (1) The budget is adequate to support the project;
    (2) Costs are reasonable in relation to the objectives of the 
project; and
    (3) The applicant demonstrates the cost-effectiveness of project 
services in comparison with alternative services and programs available 
to older individuals who are blind.
    (e) Evaluation plan (5 points). The Secretary reviews each 
application to determine the quality of the evaluation plan for the 
project, including the extent to which the applicant's methods of 
evaluation--
    (1) Accurately evaluate the success and cost-effectiveness of the 
project;
    (2) Are objective and produce data that are quantifiable; and
    (3) Will determine how successful the project is in meeting its 
goals and objectives.
    (4) (Cross-reference: See 34 CFR 75.590.)
    (f) Adequacy of resources (5 points). The Secretary reviews each 
application to determine the adequacy of the resources that the 
applicant plans to devote to the project, including accessibility of 
facilities, equipment, and supplies.
    (g) Service comprehensiveness (20 points). (1) The Secretary reviews 
each application to determine the extent to which the proposed outreach 
activities promote maximum participation of the target population within 
the geographic area served by the project.
    (2) The Secretary reviews each application to determine the extent 
to which the DSA addresses the unmet IL needs in the State of older 
individuals with varying degrees of significant visual impairment. In 
making this determination, the Secretary reviews the extent to which the 
DSA makes available appropriate services listed in Sec. 367.3(b), which 
may include any or all of the following services:
    (i) Orientation and mobility skills training that will enable older 
individuals who are blind to travel independently, safely, and 
confidently in familiar and unfamiliar environments.
    (ii) Skills training in Braille, handwriting, typewriting, or other 
means of communication.
    (iii) Communication aids, such as large print, cassette tape 
recorders, and readers.
    (iv) Training to perform daily living activities, such as meal 
preparation, identifying coins and currency, selection of clothing, 
telling time, and maintaining a household.
    (v) Provision of low-vision services and aids, such as magnifiers to 
perform reading and mobility tasks.
    (vi) Family and peer counseling services to assist older individuals 
who are blind adjust emotionally to the loss of vision as well as to 
assist in their integration into the community and its resources.
    (h) Likelihood of sustaining the program (10 points). The Secretary 
reviews each application to determine--
    (1) The likelihood that the service program will be sustained after 
the completion of Federal project grant assistance;
    (2) The extent to which the applicant intends to continue to operate 
the service program through cooperative agreements and other formal 
arrangements; and
    (3) The extent to which the applicant will identify and, to the 
extent possible, use comparable services and benefits that are available 
under other

[[Page 412]]

programs for which project participants may be eligible.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796k(b)(1) and (i)(1))



Sec. 367.23  What additional factor does the Secretary consider?

    In addition to the criteria in Sec. 367.22, the Secretary considers 
the geographic distribution of projects in making an award.

(Authority: 29 U.S.C. 711(c) and 796k(b)(1) and (i)(1))



    Subpart D_How Does the Secretary Award Contingent Formula Grants?



Sec. 367.30  Under what circumstances does the Secretary award 
contingent formula grants to States?

    (a) In the case of a fiscal year for which the amount appropriated 
under section 753 of the Act is equal to or greater than $13,000,000, 
grants under this part are made to States from allotments under section 
752(c)(2) of the Act.
    (b) Subparts A, B, D, and E of this part govern the award of formula 
grants under this part.

(Authority: 29 U.S.C. 796k(c))



Sec. 367.31  How are allotments made?

    (a) For purposes of making grants under section 752(c) of the Act 
and this subpart, the Secretary makes an allotment to each State in an 
amount determined in accordance with section 752(j) of the Act.
    (b) The Secretary makes a grant to a DSA in the amount of the 
allotment to the State under section 752(j) of the Act if the DSA 
submits to and obtains approval from the Secretary of an application for 
assistance under this program that meets the requirements of section 
752(i) of the Act and Sec. Sec. 367.10 and 367.11.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796k(c)(2))



Sec. 367.32  How does the Secretary reallot funds under section 
752(j)(4) of the Act?

    (a) From the amounts specified in paragraph (b) of this section, the 
Secretary may make reallotment grants to States, as determined by the 
Secretary, whose population of older individuals who are blind has a 
substantial need for the services specified in section 752(d) of the Act 
and Sec. 367.3(b), relative to the populations in other States of older 
individuals who are blind.
    (b) The amounts referred to in paragraph (a) of this section are any 
amounts that are not paid to States under section 752(c)(2) of the Act 
and Sec. 367.31 as a result of--
    (1) The failure of a DSA to prepare, submit, and receive approval of 
an application under section 752(i) of the Act and in accordance with 
Sec. Sec. 367.10 and 367.11; or
    (2) Information received by the Secretary from the DSA that the DSA 
does not intend to expend the full amount of the State's allotment under 
section 752(c) of the Act and this subpart.
    (c) A reallotment grant to a State under paragraph (a) of this 
section is subject to the same conditions as grants made under section 
752(a) of the Act and this part.
    (d) Any funds made available to a State for any fiscal year pursuant 
to this section are regarded as an increase in the allotment of the 
State under Sec. 367.31 for that fiscal year only.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796k(j)(4))



          Subpart E_What Conditions Must Be Met After an Award?



Sec. 367.40  What matching requirements apply?

    (a) Non-Federal contributions required by Sec. 367.11(b) may be in 
cash or in kind, fairly evaluated, including plant, equipment, or 
services.
    (b) For purposes of non-Federal contributions required by Sec. 
367.11(b), amounts provided by the Federal Government, or services 
assisted or subsidized to any significant extent by the

[[Page 413]]

Federal Government, may not be included in determining the amount of 
non-Federal contributions.

(Authority: 29 U.S.C. 796k(f))



Sec. 367.41  When may a DSA award grants or contracts?

    (a) A DSA may operate or administer the program or projects under 
this part to carry out the purposes specified in Sec. 367.1, either 
directly or through--
    (1) Grants to public or private nonprofit agencies or organizations; 
or
    (2) Contracts with individuals, entities, or organizations that are 
not public or private nonprofit agencies or organizations.
    (b) Notwithstanding paragraph (a) of this section, a DSA may enter 
into assistance contracts, but not procurement contracts, with public or 
private nonprofit agencies or organizations in a manner consistent with 
34 CFR 366.32(e).

(Authority: 29 U.S.C. 796k(g) and (i)(2)(A))



Sec. 367.42  When does the Secretary award noncompetitive continuation 
grants?

    (a) In the case of a fiscal year for which the amount appropriated 
under section 753 of the Act is less than $13,000,000, the Secretary 
awards noncompetitive continuation grants for a multi-year project to 
pay for the costs of activities for which a grant was awarded--
    (1) Under chapter 2 of title VII of the Act; or
    (2) Under part C of title VII of the Act, as in effect on October 
28, 1992.
    (b) To be eligible to receive a noncompetitive continuation grant 
under this part, a grantee must satisfy the applicable requirements in 
this part and in 34 CFR 75.253.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 796k(b)(2))



PART 369_VOCATIONAL REHABILITATION SERVICE PROJECTS--Table of Contents



                            Subpart A_General

Sec.
369.1 What are the Vocational Rehabilitation Service Projects?
369.2 Who is eligible for assistance under these programs?
369.3 What regulations apply to these programs?
369.4 What definitions apply to these programs?

Subpart B [Reserved]

                Subpart C_How Does One Apply for a Grant?

369.20 What are the application procedures for these programs?
369.21 What application requirement applies to these programs?

             Subpart D_How Does the Secretary Make a Grant?

369.30 How does the Secretary evaluate an application?
369.32 What other factors does the Secretary consider in reviewing an 
          application?

           Subpart E_What Conditions Must Be Met by a Grantee?

369.40-369.41 [Reserved]
369.42 What special requirements affect provision of services to 
          individuals with disabilities?
369.43 What are the affirmative action plan requirements affecting 
          grantees?
369.44 What wage and hour standards apply to community rehabilitation 
          programs?
369.45 What are the special requirements pertaining to the membership of 
          project advisory committees?
369.46 What are the special requirements pertaining to the protection, 
          use, and release of personal information?
369.47 What are the special requirements affecting the collection of 
          data from State agencies?

    Authority: 29 U.S.C. 711(c), 732, 750, 777(a)(1), 777b, 777f and 
795g, unless otherwise noted.

    Source: 46 FR 5417, Jan. 19, 1981, unless otherwise noted.



                            Subpart A_General



Sec. 369.1  What are the Vocational Rehabilitation Service Projects?

    (a) These programs provide financial assistance for the support of 
special project activities for providing vocational rehabilitation 
services and related services to individuals with disabilities and other 
persons.

[[Page 414]]

    (b) The Secretary awards financial assistance through the following 
programs--
    (1) Vocational Rehabilitation Service Projects for American Indians 
with Disabilities (34 CFR part 371).
    (2) Special Projects and Demonstrations for Providing Vocational 
Rehabilitation Services to Individuals with Disabilities.
    (3) Vocational Rehabilitation Service Projects for Migratory 
Agricultural and Seasonal Farmworkers with Disabilities.
    (4) Special Projects and Demonstrations for Providing Transitional 
Rehabilitation Services to Youths with Disabilities (34 CFR part 376).
    (5) Projects for Initiating Special Recreation Programs for 
Individuals with Disabilities.
    (6) Projects with Industry (34 CFR part 379).

(Authority: Secs. 112, 130, 305, 308, 311a, 311(a)(3), 311(a)(4), 312, 
316, and 621 of the Act; 29 U.S.C. 732, 750, 775, 776, 777(a)(1), 
777(a)(3), 777(a)(4), 777(b), 777f, and 795g)

[46 FR 5417, Jan. 19, 1981, as amended at 50 FR 9962, Mar. 12, 1985; 51 
FR 3895, Jan. 30, 1986; 53 FR 17142, 17143, May 13, 1988; 59 FR 8335, 
Feb. 18, 1994; 62 FR 10403, Mar. 6, 1997]



Sec. 369.2  Who is eligible for assistance under these programs?

    (a) Vocational rehabilitation service projects for American Indians 
with disabilities. Governing bodies of Indian tribes and consortia of 
those governing bodies located on Federal and State reservations are 
eligible for assistance to support projects for providing vocational 
rehabilitation services to American Indians with disabilities.


(Authority: Sec. 130 of the Act; 29 U.S.C. 750)

    (b) Special projects and demonstrations for providing vocational 
rehabilitation services to individuals with disabilities. States and 
public and other nonprofit agencies and organizations are eligible for 
expanding or otherwise improving vocational rehabilitation services to 
individuals with disabilities.


(Authority: Sec. 311(a)(1) of the Act; 29 U.S.C. 777(a)(1))

    (c) Vocational rehabilitation service projects for migratory 
agricultural workers and seasonal farmworkers with disabilities. State 
vocational rehabilitation agencies, local agencies administering 
vocational rehabilitation programs under written agreements with State 
agencies, and nonprofit agencies working in collaboration with State 
vocational rehabilitation agencies are eligible for assistance to 
support projects for providing vocational rehabilitation services to 
migratory agricultural workers or seasonal farmworkers with 
disabilities.


(Authority: Sec. 312 of the Act; 29 U.S.C. 777(b))

    (d) Projects for initiating special recreation programs for 
individuals with disabilities. State and other public agencies and 
private nonprofit agencies and organizations are eligible for assistance 
to support projects for initiating special recreation programs for 
individuals with disabilities.


(Authority: Sec. 316 of the Act; 29 U.S.C. 777(f))

    (e) Projects with industry. Any designated State unit, labor union, 
community rehabilitation program provider, Indian tribe or tribal 
organization employer, trade association, or other agency or 
organization with the capacity to create and expand job and career 
opportunities for individuals with disabilities is eligible for 
assistance to support a project with industry.


(Authority: Sec. 621 of the Act; 29 U.S.C. 795(g))

    (f) Special projects and demonstrations for providing transitional 
rehabilitation services to youths with disabilities. State and other 
public and nonprofit agencies and organizations are eligible for 
assistance under this program.


(Authority: Sec. 311(c) of the Act; 29 U.S.C. 777a(c))

[46 FR 5417, Jan. 19, 1981, as amended at 50 FR 9962, Mar. 12, 1985; 51 
FR 3895, Jan. 30, 1986; 53 FR 17142, 17143, May 13, 1988; 59 FR 8335, 
Feb. 18, 1994; 62 FR 10403, Mar. 6, 1997]



Sec. 369.3  What regulations apply to these programs?

    The following regulations apply to the programs listed in Sec. 
369.1(b):

[[Page 415]]

    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities); except the part 79 does not apply to 
the Vocational Rehabilitation Service Program for American Indians with 
Disabilities.
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 369.
    (c) The regulations in 34 CFR parts 371, 372, 373, 374, 375, 376, 
378, and 379, as appropriate.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[51 FR 3895, Jan. 30, 1986, as amended at 55 FR 21714, May 25, 1990; 59 
FR 8335, Feb. 18, 1994]



Sec. 369.4  What definitions apply to these programs?

    (a) The following definitions in 34 CFR part 77 apply to the 
programs under Vocational Rehabilitation Service Projects--

    Applicant
    Application
    Award
    Budget Period
    Department
    EDGAR
    Nonprofit
    Profit
    Project Period
    Public
    Secretary
    Work of Art


(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    (b) The following definitions also apply to programs under 
Vocational Rehabilitation Service Projects:
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), as 
amended.
    Community rehabilitation program means a program that provides 
directly or facilitates the provision of vocational rehabilitation 
services to individuals with disabilities, and that provides, singly or 
in combination, for an individual with a disability to enable the 
individual to maximize opportunities for employment, including career 
advancement--
    (1) Medical, psychiatric, psychological, social, and vocational 
services that are provided under one management;
    (2) Testing, fitting, or training in the use of prosthetic and 
orthotic devices;
    (3) Recreational therapy;
    (4) Physical and occupational therapy;
    (5) Speech, language and hearing therapy;
    (6) Psychiatric, psychological and social services, including 
positive behavior management;
    (7) Assessment for determining eligibility and vocational 
rehabilitation needs;
    (8) Rehabilitation technology;
    (9) Job development, placement, and retention services;
    (10) Evaluation or control of specific disabilities;
    (11) Orientation and mobility services for individuals who are 
blind;
    (12) Extended employment;
    (13) Psychosocial rehabilitation services;
    (14) Supported employment services and extended services;
    (15) Services to family members when necessary to the vocational 
rehabilitation of the individual;
    (16) Personal assistance services; or
    (17) Services similar to the services described in paragraphs (1) 
through (16) of this definition.


(Authority: Sec. 7(25) of the Act; 29 U.S.C. 706(25))


[[Page 416]]


    Employment outcome means entering or retaining full-time or, if 
appropriate, part-time competitive employment in the integrated labor 
market, the practice of a profession, self-employment, homemaking, farm 
or family work (including work for which payment is in kind rather than 
cash), extended employment in a community rehabilitation program, 
supported employment, or other gainful work.


(Authority: Sec 7(5) of the Act; 29 U.S.C. 706(5))

    Individual who is blind means a person who is blind within the 
meaning of the law relating to vocational rehabilitation in each State.


(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    Individual with a disability means any individual who--
    (1) Has a physical or mental impairment that for that individual 
constitutes or results in a substantial impediment to employment; and
    (2) Can benefit in terms of an employment outcome from vocational 
rehabilitation services provided under title I, III, VI, or VIII of the 
Act.


(Authority: Sec. 7(8)(A) of the Act; 29 U.S.C. 706(8)(A))

    Individual with a severe disability means an individual with a 
disability--
    (1) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental 
retardation, mental illness, multiple sclerosis, muscular dystrophy, 
musculo-skeletal disorders, neurological disorders (including stroke and 
epilepsy), paraplegia, quadriplegia and other spinal cord conditions, 
sickle-cell anemia, specific learning disabilities, end-stage renal 
disease, or another disability or combination of disabilities determined 
to cause comparable substantial functional limitation.


(Authority: Sec. 7(15)(A) of the Act; 29 U.S.C. 706(15)(A))

    Physical and mental restoration services means--
    (1) Medical or corrective surgical treatment for the purpose of 
correcting or modifying substantially a physical or mental condition 
that is stable or slowly progressive and constitutes a substantial 
impediment to employment and that is likely, within a reasonable period 
of time, to be corrected or substantially modified as a result of the 
medical or surgical treatment;
    (2) Diagnosis and treatment for mental or emotional disorders by 
qualified personnel in accordance with State licensure laws;
    (3) Dentistry;
    (4) Nursing services;
    (5) Necessary hospitalization (either inpatient or outpatient care) 
in connection with surgery or treatment and clinic services;
    (6) Convalescent or nursing home care;
    (7) Drugs and supplies;
    (8) Prosthetic, orthotic, or other assistive devices, including 
hearing aids essential to obtaining or retaining employment;
    (9) Eyeglasses and visual services, including visual training, and 
the examination and services necessary for the prescription and 
provision of eyeglasses, contact lenses, microscopic lenses, telescopic 
lenses, and other special visual aids, prescribed by qualified persons 
under State licensure laws, that are selected by the individual;
    (10) Podiatry;
    (11) Physical therapy;
    (12) Occupational therapy;
    (13) Speech and hearing therapy;
    (14) Psychological services;
    (15) Therapeutic recreation services;
    (16) Medical or medically related social work services;
    (17) Treatment of either acute or chronic medical complications and 
emergencies that are associated with or arise out of the provision of 
physical

[[Page 417]]

and mental restoration services or that are inherent in the condition 
under treatment;
    (18) Special services for the treatment of individuals with end-
stage renal disease, including transplantation, dialysis, artificial 
kidneys, and supplies; and
    (19) Other medical or medically related rehabilitation services, 
including art therapy, dance therapy, music therapy, and psychodrama.


(Authority: Sec. 103(a)(4) of the Act; 29 U.S.C. 723(a)(4))

    Physical or mental impairment means a physical or mental condition 
which materially limits, contributes to limiting or, if not corrected, 
will probably result in limiting an individual's employment activities 
or vocational functioning.


(Authority: Sec. 7(8)(A) of the Act; 29 U.S.C. 706(8)(A))

    Reservation means a Federal or State Indian reservation, public 
domain Indian allotment, former Indian reservation in Oklahoma, and land 
held by incorporated Native groups, regional corporations and village 
corporations under the provisions of the Alaska Native Claims Settlement 
Act.


(Authority: Sec. 130(c) of the Act; 29 U.S.C. 750(c))

    State agency means the sole State agency designated to administer 
(or supervise local administration of) the State plan for vocational 
rehabilitation services. The term includes the State agency for the 
blind, if designated as the sole State agency with respect to that part 
of the plan relating to the vocational rehabilitation of individuals who 
are blind.


(Authority: Sec. 7(3)(A) and 101(a)(1)(A) of the Act; 29 U.S.C. 
721(a)(1)(A))

    State plan means the State plan for vocational rehabilitation 
services. (34 CFR part 361)


(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    State unit, State vocational rehabilitation unit or designated State 
unit means either--
    (1) The State agency vocational rehabilitation bureau, division, or 
other organizational unit that is primarily concerned with vocational 
rehabilitation or vocational and other rehabilitation of individuals 
with disabilities and that is responsible for the administration of the 
vocational rehabilitation program of the State agency; or
    (2) The independent State commission, board, or other agency that 
has vocational rehabilitation, or vocational and other rehabilitation as 
its primary function.


(Authority: Sec. 7(3) of the Act; 29 U.S.C. 706(3))

    Substantial impediment to employment means that a physical or mental 
impairment (in light of attendant medical, psychological, vocational, 
educational, and other related factors) significantly restricts an 
individual's occupational performance by preventing his preparing for, 
obtaining, or retaining employment consistent with his capacities and 
abilities.


(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    Vocational rehabilitation services: (1) When provided to an 
individual, means any goods or services necessary to render an 
individual with a disability employable, including, but not limited to, 
the following--
    (i) An assessment for determining eligibility and vocational 
rehabilitation needs by qualified personnel, including, if appropriate, 
an assessment by personnel skilled in rehabilitation technology;
    (ii) Counseling, guidance, and work-related placement services for 
individuals with disabilities, including job search assistance, 
placement assistance, job retention services, personal assistance 
services, and follow-up, follow-along, and specific diagnosis services 
necessary to assist such individuals to maintain, regain, or advance in 
employment;
    (iii) Vocational and other training services for individuals with 
disabilities, including personal and vocational adjustment, books, or 
other training materials;

[[Page 418]]

    (iv) Services to the families of such individuals with disabilities, 
if necessary to the adjustment or rehabilitation of such individuals;
    (v) Physical and mental restoration services;
    (vi) Maintenance for additional costs incurred while participating 
in rehabilitation;
    (vii) Interpreter services and note-taking services for individuals 
who are deaf, including tactile interpreting for individuals who are 
deaf-blind;
    (viii) Reader services and note-taking services for those 
individuals who are determined to be blind after an examination by 
qualified personnel under State licensure laws;
    (ix) Recruitment and training services to provide new employment 
opportunities in the fields of rehabilitation, health, welfare, public 
safety and law enforcement, and other appropriate service employment;
    (x) Rehabilitation teaching services and orientation and mobility 
services for individuals who are blind;
    (xi) Occupational licenses, tools, equipment, and initial stocks and 
supplies;
    (xii) Transportation in connection with the rendering of any 
vocational rehabilitation service;
    (xiii) Telecommunications, sensory, and other technological aids and 
devices;
    (xiv) Rehabilitation technology services;
    (xv) Referral and other services designed to assist individuals with 
disabilities in securing needed services from other agencies;
    (xvi) Transition services that promote or facilitate the 
accomplishment of long-term rehabilitation goals and intermediate 
rehabilitation objectives;
    (xvii) On-the-job or other related personal assistance services 
provided while an individual with a disability is receiving vocational 
rehabilitation services; and
    (xviii) Supported employment services.


(Authority: Sec. 103(a) of the Act; 29 U.S.C. 723(a))

    (2) When provided for the benefit of groups of individuals, 
Vocational rehabilitation services also means--
    (i) In the case of any type of small business enterprise operated by 
individuals with the most severe disabilities under the supervision of 
the State unit, management services, and supervision and acquisition of 
vending facilities or other equipment, and initial stocks and supplies;
    (ii) The establishment, development, or improvement of community 
rehabilitation programs, including, under special circumstances, the 
construction of a rehabilitation facility to provide services that 
promote integration and competitive employment;
    (iii) The provision of services, including services provided at 
community rehabilitation programs, that promise to contribute 
substantially to the rehabilitation of a group of individuals but that 
are not related directly to the individualized written rehabilitation 
program of any one individual with disabilities;
    (iv) The use of existing telecommunications systems;
    (v) The use of services providing recorded material for persons who 
are blind and captioned films or video cassettes for persons who are 
deaf; and
    (vi) Technical assistance and support services to businesses that 
are not subject to title I of the Americans with Disabilities Act of 
1990 and that are seeking to employ individuals with disabilities.

(Authority: Sec. 103(b) of the Act; 29 U.S.C. 723(b))

[46 FR 5417, Jan. 19, 1981, as amended at 50 FR 38630, Sept. 23, 1985; 
53 FR 17143, May 13, 1988; 59 FR 8335, Feb. 18, 1994]

Subpart B [Reserved]



                Subpart C_How Does One Apply for a Grant?



Sec. 369.20  What are the application procedures for these programs?

    The Secretary gives the appropriate State vocational rehabilitation 
unit an opportunity to review and comment on applications submitted from 
within the State that it serves. The procedures to be followed by the 
applicant and the State are in EDGAR Sec. Sec. 75.155-75.159.

(Authority: Sec. 12)(c) of the Act; 29 U.S.C. 711(c))

[[Page 419]]



Sec. 369.21  What application requirement applies to these programs?

    Each applicant for a grant under a program covered by this part must 
include in its application a description of the manner in which it will 
address the needs of individuals with disabilities from minority 
backgrounds.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sec. 21(b)(5) of the Act; 29 U.S.C. 718b)

[59 FR 8337, Feb. 18, 1994, as amended at 62 FR 10403, Mar. 6, 1997]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 369.30  How does the Secretary evaluate an application?

    The Secretary evaluates an application under the procedures in 34 
CFR part 75.

(Authority: 29 U.S.C. 711(c))

[62 FR 10404, Mar. 6, 1997]



Sec. 369.32  What other factors does the Secretary consider in 
reviewing an application?

    In addition to the selection criteria used in accordance with the 
procedures in 34 CFR part 75, the Secretary, in making awards under 
these programs, considers such factors as--
    (a) The geographical distribution of projects in each program 
category throughout the country; and
    (b) The past performance of the applicant in carrying out similar 
activities under previously awarded grants, as indicated by such factors 
as compliance with grant conditions, soundness of programmatic and 
financial management practices and attainment of established project 
objectives.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(a)).

[46 FR 5417, Jan. 19, 1981, as amended at 51 FR 3895, Jan. 30, 1986; 62 
FR 10404, Mar. 6, 1997]



           Subpart E_What Conditions Must Be Met by a Grantee?



Sec. Sec. 369.40-369.41  [Reserved]



Sec. 369.42  What special requirements affect provision of services
to individuals with disabilities?

    (a) Vocational rehabilitation services provided in projects assisted 
under these programs must be provided in the same manner as services 
provided under the State plan for vocational rehabilitation services 
under 34 CFR part 361.
    (b) Each grantee under a program covered by this part must advise 
applicants for or recipients of services under its project, or as 
appropriate, the parents, family members, guardians, advocates, or 
authorized representatives of those individuals, of the availability and 
purposes of the State's Client Assistance Program, including information 
on seeking assistance from that program.

(Authority: Secs. 20 and 306(h) of the Act; 29 U.S.C. 718a and 776(h))

[46 FR 5417, Jan. 19, 1981, as amended at 53 FR 17144, May 13, 1988; 59 
FR 8337, Feb. 18, 1994; 62 FR 10404, Mar. 6, 1997]



Sec. 369.43  What are the affirmative action plan requirements 
affecting grantees?

    A recipient of Federal assistance must develop and implement an 
affirmative action plan to employ and advance in employment qualified 
individuals with disabilities. This plan must provide for specific 
action steps, timetables, and complaint and enforcement procedures 
necessary to assure affirmative action.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[46 FR 5417, Jan. 19, 1981, as amended at 53 FR 17144, May 13, 1988; 59 
FR 8335, Feb. 18, 1994]

[[Page 420]]



Sec. 369.44  What wage and hour standards apply to community 
rehabilitation programs?

    All applicable Federal and State wage and hour standards must be 
observed in projects carried out in community rehabilitation programs.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[46 FR 5417, Jan. 19, 1981. Redesignated and amended at 59 FR 8337, Feb. 
18, 1994]



Sec. 369.45  What are the special requirements pertaining to the 
membership of project advisory committees?

    If an advisory committee is established under a project, its 
membership must include persons with disabilities or their 
representatives and other individuals to be assisted within the project, 
providers of services, and other appropriate individuals.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[46 FR 5417, Jan. 19, 1981, as amended at 53 FR 17144, May 13, 1988; 59 
FR 8335, Feb. 18, 1994. Redesignated at 59 FR 8337, Feb. 18, 1994]



Sec. 369.46  What are the special requirements pertaining to the
protection, use, and release of personal information?

    (a) All personal information about individuals served by any project 
under this part, including lists of names, addresses, photographs, and 
records of evaluation, must be held confidential.
    (b) The use of information and records concerning individuals must 
be limited only to purposes directly connected with the project, 
including project evaluation activities. This information may not be 
disclosed, directly or indirectly, other than in the administration of 
the project unless the consent of the agency providing the information 
and the individual to whom the information applies, or his or her 
representative, have been obtained in writing. The Secretary or other 
Federal or State officials responsible for enforcing legal requirements 
have access to this information without written consent being obtained. 
The final product of the project may not reveal any personal identifying 
information without written consent of the individual or his or her 
representative.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[46 FR 5417, Jan. 19, 1981. Redesignated at 59 FR 8337, Feb. 18, 1994]



Sec. 369.47  What are the special requirements affecting the 
collection of data from State agencies?

    If the collection of data is necessary either from individuals with 
disabilities being served by two or more State agencies or from 
employees of two or more of these agencies, the project director must 
submit requests for the data to appropriate representatives of the 
affected agencies, as determined by the Secretary. This requirement also 
applies to employed project staff and individuals enrolled in courses of 
study supported under this part.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[46 FR 5417, Jan. 19, 1981, as amended at 53 FR 17144, May 13, 1988; 59 
FR 8335, Feb. 18, 1994. Redesignated at 59 FR 8337, Feb. 18, 1994]



PART 370_CLIENT ASSISTANCE PROGRAM--Table of Contents



                            Subpart A_General

Sec.
370.1 What is the Client Assistance Program (CAP)?
370.2 Who is eligible for an award?
370.3 Who is eligible for services and information under the CAP?
370.4 What kinds of activities may the Secretary fund?
370.5 What regulations apply?
370.6 What definitions apply?
370.7 What shall the designated agency do to make its services 
          accessible?

           Subpart B_What Requirements Apply to Redesignation?

370.10 When do the requirements for redesignation apply?
370.11 What requirements apply to a notice of proposed redesignation?
370.12 How does a designated agency preserve its right to appeal a 
          redesignation?
370.13 What are the requirements for a decision to redesignate?
370.14 How does a designated agency appeal a written decision to 
          redesignate?
370.15 What must the Governor of a State do upon receipt of a copy of a 
          designated

[[Page 421]]

          agency's written appeal to the Secretary?
370.16 How does the Secretary review an appeal of a redesignation?
370.17 When does a redesignation become effective?

              Subpart C_How Does a State Apply for a Grant?

370.20 What must be included in a request for a grant?

  Subpart D_How Does the Secretary Allocate and Reallocate Funds to a 
                                 State?

370.30 How does the Secretary allocate funds?
370.31 How does the Secretary reallocate funds?

Subpart E_What Post-Award Conditions Must Be Met by a Designated Agency?

370.40 What are allowable costs?
370.41 What conflict of interest provision applies to employees of a 
          designated agency?
370.42 What access must the CAP be afforded to policymaking and 
          administrative personnel?
370.43 What requirement applies to the use of mediation procedures?
370.44 What reporting requirement applies to each designated agency?
370.45 What limitation applies to the pursuit of legal remedies?
370.46 What consultation requirement applies to a Governor of a State?
370.47 When must grant funds be obligated?
370.48 What are the special requirements pertaining to the protection, 
          use, and release of personal information?

    Authority: 29 U.S.C. 732, unless otherwise noted.

    Source: 60 FR 55766, Nov. 2, 1995, unless otherwise noted.



                            Subpart A_General



Sec. 370.1  What is the Client Assistance Program (CAP)?

    The purpose of this program is to establish and carry out CAPs 
that--
    (a) Advise and inform clients and client applicants of all services 
and benefits available to them through programs authorized under the 
Rehabilitation Act of 1973 (Act), as amended;
    (b) Assist and advocate for clients and client applicants in their 
relationships with projects, programs, and community rehabilitation 
programs providing services under the Act; and
    (c) Inform individuals with disabilities in the State, especially 
individuals with disabilities who have traditionally been unserved or 
underserved by vocational rehabilitation programs, of the services and 
benefits available to them under the Act and under title I of the 
Americans with Disabilities Act of 1990 (ADA), 42 U.S.C. 12101-12213.

(Authority: 29 U.S.C. 732(a))



Sec. 370.2  Who is eligible for an award?

    (a) Any State, through its Governor, is eligible for an award under 
this part if the State submits, and receives approval of, an application 
in accordance with Sec. 370.20.
    (b) The Governor of each State shall designate a public or private 
agency to conduct the State's CAP under this part.
    (c) Except as provided in paragraph (d) of this section, the 
Governor shall designate an agency that is independent of any agency 
that provides treatment, services, or rehabilitation to individuals 
under the Act.
    (d) The Governor may, in the initial designation, designate an 
agency that provides treatment, services, or rehabilitation to 
individuals with disabilities under the Act if, at any time before 
February 22, 1984, there was an agency in the State that both--
    (1) Was a grantee under section 112 of the Act by serving as a 
client assistance agency and directly carrying out a CAP; and
    (2) Was, at the same time, a grantee under any other provision of 
the Act.
    (e) Except as permitted in paragraph (f) of this section, an agency 
designated by the Governor of a State to conduct the State's CAP under 
this part may not award a subgrant to or enter into a contract with an 
agency that provides services under this Act either to carry out the CAP 
or to provide services under the CAP.
    (f) An agency designated by the Governor of a State to conduct the 
State's CAP under this part may enter into a contract with a center for 
independent living (center) that provides services under the Act if--
    (1) On February 22, 1984, the designated agency was contracting with 
one or more centers to provide CAP services; and

[[Page 422]]

    (2) The designated agency meets the requirements of paragraph (g) of 
this section.
    (g) A designated agency that contracts to provide CAP services with 
a center (pursuant to paragraph (f) of this section) or with an entity 
or individual that does not provide services under the Act remains 
responsible for--
    (1) The conduct of a CAP that meets all of the requirements of this 
part;
    (2) Ensuring that the center, entity, or individual expends CAP 
funds in accordance with--
    (i) The regulations in this part; and
    (ii) The cost principles applicable to the designated agency; and
    (3) The direct day-to-day supervision of the CAP services being 
carried out by the contractor. This day-to-day supervision must include 
the direct supervision of the individuals who are employed or used by 
the contractor to provide CAP services.

(Authority: 29 U.S.C. 711(c) and 732(a) and (c)(1)(A))



Sec. 370.3  Who is eligible for services and information under the CAP?

    (a) Any client or client applicant is eligible for the services 
described in Sec. 370.4.
    (b) Any individual with a disability is eligible to receive 
information on the services and benefits available to individuals with 
disabilities under the Act and title I of the ADA.

(Authority: 29 U.S.C. 732(a))



Sec. 370.4  What kinds of activities may the Secretary fund?

    (a) Funds made available under this part must be used for activities 
consistent with the purposes of this program, including--
    (1) Advising and informing clients, client applicants, and 
individuals with disabilities in the State, especially individuals with 
disabilities who have traditionally been unserved or underserved by 
vocational rehabilitation programs, of--
    (i) All services and benefits available to them through programs 
authorized under the Act; and
    (ii) Their rights in connection with those services and benefits;
    (2) Informing individuals with disabilities in the State, especially 
individuals with disabilities who have traditionally been unserved or 
underserved by vocational rehabilitation programs, of the services and 
benefits available to them under title I of the ADA;
    (3) Upon the request of a client or client applicant, assisting and 
advocating on behalf of a client and client applicant in his or her 
relationship with projects, programs, and community rehabilitation 
programs that provide services under the Act by engaging in individual 
or systemic advocacy and pursuing, or assisting and advocating on behalf 
of a client and client applicant to pursue, legal, administrative, and 
other available remedies, if necessary--
    (i) To ensure the protection of the rights of a client or client 
applicant under the Act; and
    (ii) To facilitate access by individuals with disabilities and 
individuals with disabilities who are making the transition from public 
school programs to services funded under the Act; and
    (4) Providing information to the public concerning the CAP.
    (b) In providing assistance and advocacy services under this part 
with respect to services under title I of the Act, a designated agency 
may provide assistance and advocacy services to a client or client 
applicant to facilitate the individual's employment, including 
assistance and advocacy services with respect to the individual's claims 
under title I of the ADA, if those claims under title I of the ADA are 
directly related to services under the Act that the individual is 
receiving or seeking.

(Authority: 29 U.S.C. 732(a))



Sec. 370.5  What regulations apply?

    The following regulations apply to the expenditure of funds under 
the CAP:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals and Nonprofit Organizations) applies to the 
designated agency if the designated agency is not a State agency, local 
government agency, or Indian tribal organization. As

[[Page 423]]

the entity that eventually, if not directly, receives the CAP grant 
funds, the designated agency is considered a recipient for purposes of 
part 74.
    (2) 34 CFR part 76 (State-Administered Programs) applies to the 
State and, if the designated agency is a State or local government 
agency, to the designated agency, except for--
    (i) Sec. 76.103;
    (ii) Sec. Sec. 76.125 through 76.137;
    (iii) Sec. Sec. 76.300 through 76.401;
    (iv) Sec. 76.708;
    (v) Sec. 76.734; and
    (vi) Sec. 76.740.
    (3) 34 CFR part 77 (Definitions That Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments) applies to 
the State and, if the designated agency is a State or local government 
agency, to the designated agency.
    (6) 34 CFR part 81 (General Education Provisions Act-Enforcement) 
applies to both the State and the designated agency, whether or not the 
designated agency is the actual recipient of the CAP grant. As the 
entity that eventually, if not directly, receives the CAP grant funds, 
the designated agency is considered a recipient for purposes of Part 81.
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (b) The regulations in this part 370.
    (c) The regulations in 34 CFR 369.43, 369.46 and 369.48, relating to 
various conditions to be met by grantees.

    Note: Any funds made available to a State under this program that 
are transferred by a State to a designated agency do not comprise a 
subgrant as that term is defined in 34 CFR 77.1. The designated agency 
is not, therefore, in these circumstances a subgrantee, as that term is 
defined in that section or in 34 CFR part 74, 76, or 80.)

(Authority: 29 U.S.C. 711(c) and 732)



Sec. 370.6  What definitions apply?

    (a) Definitions in EDGAR. The following terms used in this part are 
defined in 34 CFR 77.1:

Award
EDGAR
Fiscal year
Nonprofit
Private
Public
Secretary

    (b) Other definitions. The following definitions also apply to this 
part:
    Act means the Rehabilitation Act of 1973, as amended.
    Advocacy means pleading an individual's cause or speaking or writing 
in support of an individual. Advocacy may be formal, as in the case of a 
lawyer representing an individual in a court of law or in formal 
administrative proceedings before government agencies (whether State, 
local or Federal). Advocacy also may be informal, as in the case of a 
lawyer or non-lawyer representing an individual in negotiations, 
mediation, or informal administrative proceedings before government 
agencies (whether State, local or Federal), or as in the case of a 
lawyer or non-lawyer representing an individual's cause before private 
entities or organizations, or government agencies (whether State, local 
or Federal). Advocacy may be on behalf of--
    (1) A single individual, in which case it is individual advocacy;
    (2) More than one individual or a group or class of individuals, in 
which case it is systems (or systemic) advocacy; or
    (3) Oneself, in which case it is self advocacy.
    Class action means a formal legal suit on behalf of a group or class 
of individuals filed in a Federal or State court that meets the 
requirements for a ``class action'' under Federal or State law. 
``Systems (or systemic) advocacy'' that does not include filing a formal 
class action in a Federal or State court is not considered a class 
action for purposes of this part.
    Client or client applicant means an individual receiving or seeking 
services under the Act, respectively.
    Designated agency means the agency designated by the Governor under

[[Page 424]]

Sec. 370.2 to conduct a client assistance program under this part.
    Mediation means the act or process of using an independent third 
party to act as a mediator, intermediary, or conciliator to settle 
differences or disputes between persons or parties. The third party who 
acts as a mediator, intermediary, or conciliator may not be any entity 
or individual who is connected in any way with the eligible system or 
the agency, entity, or individual with whom the individual with a 
disability has a dispute. Mediation may involve the use of professional 
mediators or any other independent third party mutually agreed to by the 
parties to the dispute.
    Services under the Act means vocational rehabilitation, independent 
living, supported employment, and other similar rehabilitation services 
provided under the Act. For purposes of the CAP, the term ``services 
under the Act'' does not include activities carried out under the 
protection and advocacy program authorized by section 509 of the Act 
(i.e., the Protection and Advocacy of Individual Rights (PAIR) program, 
34 CFR part 381).
    State means, in addition to each of the several States of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, The 
United States Virgin Islands, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, and the Republic of Palau (but only until 
September 30, 1998), except for purposes of the allotments under section 
112 of the Act, in which case ``State'' does not mean or include Guam, 
American Samoa, the United States Virgin Islands, the Commonwealth of 
the Northern Mariana Islands, and the Republic of Palau.

(Authority: 29 U.S.C. 711(c) and 732; Pub. L. 101-219 (Dec. 12, 1989); 
Pub. L. 99-658 (Nov. 14, 1986); and Pub. L. 99-239 (Jan. 14, 1986))



Sec. 370.7  What shall the designated agency do to make its services
accessible?

    The designated agency shall provide, as appropriate, the CAP 
services described in Sec. 370.4 in formats that are accessible to 
clients or client applicants who seek or receive CAP services.

(Authority: 29 U.S.C. 711(c))



           Subpart B_What Requirements Apply to Redesignation?



Sec. 370.10  When do the requirements for redesignation apply?

    (a) The Governor may not redesignate the agency designated pursuant 
to section 112(c) of the Act and Sec. 370.2(b) without good cause and 
without complying with the requirements of Sec. Sec. 370.10 through 
370.17.
    (b) For purposes of Sec. Sec. 370.10 through 370.17, a 
``redesignation of'' or ``to redesignate'' a designated agency means any 
change in or transfer of the designation of an agency previously 
designated by the Governor to conduct the State's CAP to a new or 
different agency, unit, or organization, including--
    (1) A decision by a designated agency to cancel its existing 
contract with another entity with which it has previously contracted to 
carry out and operate all or part of its responsibilities under the CAP 
(including providing advisory, assistance, or advocacy services to 
eligible clients and client applicants); or
    (2) A decision by a designated agency not to renew its existing 
contract with another entity with which it has previously contracted. 
Therefore, an agency that is carrying out a State's CAP under a contract 
with a designated agency is considered a designated agency for purposes 
of Sec. Sec. 370.10 through 370.17.
    (c) For purposes of paragraph (a) of this section, a designated 
agency that does not renew a contract for CAP services because it is 
following State procurement laws that require contracts to be awarded 
through a competitive bidding process is presumed to have good cause for 
not renewing an existing contract. However, this presumption may be 
rebutted.
    (d) If State procurement laws require a designated agency to award a 
contract through a competitive bidding process, the designated agency 
must hold public hearings on the request for proposal before awarding 
the new contract.

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))

[[Page 425]]



Sec. 370.11  What requirements apply to a notice of proposed 
redesignation?

    (a) Prior to any redesignation of the agency that conducts the CAP, 
the Governor shall give written notice of the proposed redesignation to 
the designated agency, the State Rehabilitation Advisory Council (SRAC), 
and the State Independent Living Council (SILC) and publish a public 
notice of the Governor's intention to redesignate. Both the notice to 
the designated agency, the SRAC, and the SILC and the public notice must 
include, at a minimum, the following:
    (1) The Federal requirements for the CAP (section 112 of the Act).
    (2) The goals and function of the CAP.
    (3) The name of the current designated agency.
    (4) A description of the current CAP and how it is administered.
    (5) The reason or reasons for proposing the redesignation, including 
why the Governor believes good cause exists for the proposed 
redesignation.
    (6) The effective date of the proposed redesignation.
    (7) The name of the agency the Governor proposes to administer the 
CAP.
    (8) A description of the system that the redesignated (i.e., new) 
agency would administer.
    (b) The notice to the designated agency must--
    (1) Be given at least 30 days in advance of the Governor's written 
decision to redesignate; and
    (2) Advise the designated agency that it has at least 30 days from 
receipt of the notice of proposed redesignation to respond to the 
Governor and that the response must be in writing.
    (c) The notice of proposed redesignation must be published in a 
place and manner that provides the SRAC, the SILC, individuals with 
disabilities or their representatives, and the public with at least 30 
days to submit oral or written comments to the Governor.
    (d) Following public notice, public hearings concerning the proposed 
redesignation must be conducted in an accessible format that provides 
individuals with disabilities or their representatives an opportunity 
for comment. The Governor shall maintain a written public record of 
these hearings.
    (e) The Governor shall fully consider any public comments before 
issuing a written decision to redesignate.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))



Sec. 370.12  How does a designated agency preserve its right to appeal
a redesignation?

    (a) To preserve its right to appeal a Governor's written decision to 
redesignate (see Sec. 370.13), a designated agency must respond in 
writing to the Governor within 30 days after it receives the Governor's 
notice of proposed redesignation.
    (b) The designated agency shall send its response to the Governor by 
registered or certified mail, return receipt requested, or other means 
that provides a record that the Governor received the designated 
agency's response.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))



Sec. 370.13  What are the requirements for a decision to redesignate?

    (a) If, after complying with the requirements of Sec. 370.11, the 
Governor decides to redesignate the designated agency, the Governor 
shall provide to the designated agency a written decision to redesignate 
that includes the rationale for the redesignation. The Governor shall 
send the written decision to redesignate to the designated agency by 
registered or certified mail, return receipt requested, or other means 
that provides a record that the designated agency received the 
Governor's written decision to redesignate.
    (b) If the designated agency submitted to the Governor a timely 
response to the Governor's notice of proposed redesignation, the 
Governor shall inform the designated agency that it has at least 15 days 
from receipt of the Governor's written decision to redesignate to file a 
formal written appeal with the Secretary.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(A))

[[Page 426]]



Sec. 370.14  How does a designated agency appeal a written decision
to redesignate?

    (a) A designated agency may appeal to the Secretary a Governor's 
written decision to redesignate only if the designated agency submitted 
to the Governor a timely written response to the Governor's notice of 
proposed redesignation in accordance with Sec. 370.12.
    (b) To appeal to the Secretary a Governor's written decision to 
redesignate, a designated agency shall file a formal written appeal with 
the Secretary within 15 days after the designated agency's receipt of 
the Governor's written decision to redesignate. The date of filing of 
the designated agency's written appeal with the Secretary will be 
determined in a manner consistent with the requirements of 34 CFR 81.12.
    (c) If the designated agency files a written appeal with the 
Secretary, the designated agency shall send a separate copy of this 
appeal to the Governor by registered or certified mail, return receipt 
requested, or other means that provides a record that the Governor 
received a copy of the designated agency's appeal to the Secretary.
    (d) The designated agency's written appeal to the Secretary must 
state why the Governor has not met the burden of showing that good cause 
for the redesignation exists or has not met the procedural requirements 
under Sec. Sec. 370.11 and 370.13.
    (e) The designated agency's written appeal must be accompanied by 
the designated agency's written response to the Governor's notice of 
proposed redesignation and may be accompanied by any other written 
submissions or documentation the designated agency wishes the Secretary 
to consider.
    (f) As part of its submissions under this section, the designated 
agency may request an informal meeting with the Secretary at which 
representatives of both parties will have an opportunity to present 
their views on the issues raised in the appeal.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))



Sec. 370.15  What must the Governor of a State do upon receipt of
a copy of a designated agency's written appeal to the Secretary?

    (a) If the designated agency files a formal written appeal in 
accordance with Sec. 370.14, the Governor shall, within 15 days of 
receipt of the designated agency's appeal, submit to the Secretary 
copies of the following:
    (1) The written notice of proposed redesignation sent to the 
designated agency.
    (2) The public notice of proposed redesignation.
    (3) Transcripts of all public hearings held on the proposed 
redesignation.
    (4) Written comments received by the Governor in response to the 
public notice of proposed redesignation.
    (5) The Governor's written decision to redesignate, including the 
rationale for the decision.
    (6) Any other written documentation or submissions the Governor 
wishes the Secretary to consider.
    (7) Any other information requested by the Secretary.
    (b) As part of the submissions under this section, the Governor may 
request an informal meeting with the Secretary at which representatives 
of both parties will have an opportunity to present their views on the 
issues raised in the appeal.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))



Sec. 370.16  How does the Secretary review an appeal of a redesignation?

    (a) If either party requests a meeting under Sec. 370.14(f) or 
Sec. 370.15(b), the meeting is to be held within 30 days of the 
submissions by the Governor under Sec. 370.15, unless both parties 
agree to waive this requirement. The Secretary promptly notifies the 
parties of the date and place of the meeting.
    (b) Within 30 days of the informal meeting permitted under paragraph 
(a) of this section or, if neither party has requested an informal 
meeting, within 60 days of the submissions required from the Governor 
under Sec. 370.15, the Secretary issues to the parties a final written 
decision on whether the redesignation was for good cause.

[[Page 427]]

    (c) The Secretary reviews a Governor's decision based on the record 
submitted under Sec. Sec. 370.14 and 370.15 and any other relevant 
submissions of other interested parties. The Secretary may affirm or, if 
the Secretary finds that the redesignation is not for good cause, remand 
for further findings or reverse a Governor's redesignation.
    (d) The Secretary sends copies of the decision to the parties by 
registered or certified mail, return receipt requested, or other means 
that provide a record of receipt by both parties.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))



Sec. 370.17  When does a redesignation become effective?

    A redesignation does not take effect for at least 15 days following 
the designated agency's receipt of the Governor's written decision to 
redesignate or, if the designated agency appeals, for at least 5 days 
after the Secretary has affirmed the Governor's written decision to 
redesignate.

(Authority: 29 U.S.C. 711(c) and 732(c)(1)(B))



              Subpart C_How Does a State Apply for a Grant?



Sec. 370.20  What must be included in a request for a grant?

    (a) Each State seeking assistance under this part shall submit to 
the Secretary, in writing, each fiscal year, an application that 
includes, at a minimum--
    (1) The name of the designated agency; and
    (2) An assurance that the designated agency meets the independence 
requirement of section 112(c)(1)(A) of the Act and Sec. 370.2(c), or 
that the State is exempted from that requirement under section 
112(c)(1)(A) of the Act and Sec. 370.2(d).
    (b)(1) Each State also shall submit to the Secretary an assurance 
that the designated agency has the authority to pursue legal, 
administrative, and other appropriate remedies to ensure the protection 
of the rights of clients or client applicants within the State.
    (2) The authority to pursue remedies described in paragraph (b)(1) 
of this section must include the authority to pursue those remedies 
against the State vocational rehabilitation agency and other appropriate 
State agencies. The designated agency meets this requirement if it has 
the authority to pursue those remedies either on its own behalf or by 
obtaining necessary services, such as legal representation, from outside 
sources.
    (c) Each State also shall submit to the Secretary assurances that--
    (1) All entities conducting, administering, operating, or carrying 
out programs within the State that provide services under the Act to 
individuals with disabilities in the State will advise all clients and 
client applicants of the existence of the CAP, the services provided 
under the program, and how to contact the designated agency;
    (2) The designated agency will meet each of the requirements in this 
part; and
    (3) The designated agency will provide the Secretary with the annual 
report required by section 112(g)(4) of the Act and Sec. 370.44.
    (d) To allow a designated agency to receive direct payment of funds 
under this part, a State must provide to the Secretary, as part of its 
application for assistance, an assurance that direct payment to the 
designated agency is not prohibited by or inconsistent with State law, 
regulation, or policy.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 732 (b) and (f))



  Subpart D_How Does the Secretary Allocate and Reallocate Funds to a 
                                 State?



Sec. 370.30  How does the Secretary allocate funds?

    (a) The Secretary allocates the funds available under this part for 
any fiscal year to the States on the basis of the relative population of 
each State. The Secretary allocates at least $50,000 to each State, 
unless the provisions of section 112(e)(1)(D) of the Act (which provides 
for increasing the minimum allotment if the appropriation for the

[[Page 428]]

CAP exceeds $7,500,000 or the appropriation is increased by a certain 
percentage described in section 112(e)(1)(D)(ii) of the Act) are 
applicable.
    (b) The Secretary allocates $30,000 each, unless the provisions of 
section 112(e)(1)(D) of the Act are applicable, to American Samoa, Guam, 
the Virgin Islands, the Northern Mariana Islands, and the Republic of 
Palau, except that the Secretary allocates to the Republic of Palau only 
75 percent of this allotment in fiscal year 1996, only 50 percent of 
this allotment in fiscal year 1997, only 25 percent of this allotment in 
fiscal year 1998, and none of this allotment in fiscal year 1999 and 
thereafter.
    (c) Unless prohibited or otherwise provided by State law, 
regulation, or policy, the Secretary pays to the designated agency, from 
the State allotment under paragraph (a) or (b) of this section, the 
amount specified in the State's approved request. Because the designated 
agency is the eventual, if not the direct, recipient of the CAP funds, 
34 CFR parts 74 and 81 apply to the designated agency, whether or not 
the designated agency is the actual recipient of the CAP grant. However, 
because it is the State that submits an application for and receives the 
CAP grant, the State remains the grantee for purposes of 34 CFR parts 76 
and 80. In addition, both the State and the designated agency are 
considered recipients for purposes of 34 CFR part 81.

(Authority: 29 U.S.C. 732 (b) and (e); Pub. L. 101-219 (Dec. 12, 1989); 
Pub. L. 99-658 (Nov. 14, 1986); and Pub. L. 99-239 (Jan. 14, 1986))



Sec. 370.31  How does the Secretary reallocate funds?

    (a) The Secretary reallocates funds in accordance with section 
112(e)(2) of the Act.
    (b) A designated agency shall inform the Secretary at least 90 days 
before the end of the fiscal year for which CAP funds were received 
whether the designated agency is making available for reallotment any of 
those CAP funds that it will be unable to obligate in that fiscal year.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 711(c) and 732(e)(2))



Subpart E_What Post-Award Conditions Must Be Met by a Designated 
Agency?



Sec. 370.40  What are allowable costs?

    (a) If the designated agency is a State or local government agency, 
the designated agency shall apply the cost principles in accordance with 
34 CFR 80.22(b).
    (b) If the designated agency is a private nonprofit organization, 
the designated agency shall apply the cost principles in accordance with 
subpart Q of 34 CFR part 74.
    (c) In addition to those allowable costs established in EDGAR, and 
consistent with the program activities listed in Sec. 370.4, the cost 
of travel in connection with the provision to a client or client 
applicant of assistance under this program is allowable. The cost of 
travel includes the cost of travel for an attendant if the attendant 
must accompany the client or client applicant.
    (d) The State and the designated agency are accountable, both 
jointly and severally, to the Secretary for the proper use of funds made 
available under this part. However, the Secretary may choose to recover 
funds under the procedures in 34 CFR part 81 from either the State or 
the designated agency, or both, depending on the circumstances of each 
case.

(Authority: 29 U.S.C. 711(c) and 732(c)(3))



Sec. 370.41  What conflict of interest provision applies to employees
of a designated agency?

    (a) Except as permitted by paragraph (b) of this section, an 
employee of a designated agency, of a center under contract with a 
designated agency (as permitted by Sec. 370.2(f)), or of an entity or 
individual under contract with a designated agency, who carries out any 
CAP duties or responsibilities, while so employed, may not--
    (1) Serve concurrently as a staff member of, consultant to, or in 
any other capacity within, any other rehabilitation project, program, or 
community rehabilitation program receiving assistance under the Act in 
the State; or

[[Page 429]]

    (2) Provide any services under the Act, other than CAP and PAIR 
services.
    (b) An employee of a designated agency or of a center under contract 
with a designated agency, as permitted by Sec. 370.2(f), may--
    (1) Receive a traineeship under section 302 of the Act;
    (2) Provide services under the PAIR program;
    (3) Represent the CAP on any board or council (such as the SRAC) if 
CAP representation on the board or council is specifically permitted or 
mandated by the Act; and
    (4) Consult with policymaking and administrative personnel in State 
and local rehabilitation programs, projects, and community 
rehabilitation programs, if consultation with the designated agency is 
specifically permitted or mandated by the Act.

(Authority: 29 U.S.C. 732(g)(1))



Sec. 370.42  What access must the CAP be afforded to policymaking and
administrative personnel?

    The CAP must be afforded reasonable access to policymaking and 
administrative personnel in State and local rehabilitation programs, 
projects, and community rehabilitation programs. One way in which the 
CAP may be provided that access would be to include the director of the 
designated agency among the individuals to be consulted on matters of 
general policy development and implementation, as required by sections 
101(a) (18) and (23) of the Act.

(Authority: 29 U.S.C. 721(a) (18) and (23) and 732(g)(2))



Sec. 370.43  What requirement applies to the use of mediation
procedures?

    (a) Each designated agency shall implement procedures designed to 
ensure that, to the maximum extent possible, good faith negotiations and 
mediation procedures are used before resorting to formal administrative 
or legal remedies. In designing these procedures, the designated agency 
may take into account its level of resources.
    (b) For purposes of this section, mediation may involve the use of 
professional mediators, other independent third parties mutually agreed 
to by the parties to the dispute, or an employee of the designated 
agency who--
    (1) Is not assigned to advocate for or otherwise represent or is not 
involved with advocating for or otherwise representing the client or 
client applicant who is a party to the mediation; and
    (2) Has not previously advocated for or otherwise represented or 
been involved with advocating for or otherwise representing that same 
client or client applicant.

(Authority: 29 U.S.C. 732(g)(3))



Sec. 370.44  What reporting requirement applies to each designated 
agency?

    In addition to the program and fiscal reporting requirements in 
EDGAR that are applicable to this program, each designated agency shall 
submit to the Secretary, no later than 90 days after the end of each 
fiscal year, an annual report on the operation of its CAP during the 
previous year, including a summary of the work done and the uniform 
statistical tabulation of all cases handled by the program. The annual 
report must contain information on--
    (a) The number of requests received by the designated agency for 
information on services and benefits under the Act and title I of the 
ADA;
    (b) The number of referrals to other agencies made by the designated 
agency and the reason or reasons for those referrals;
    (c) The number of requests for advocacy services received by the 
designated agency from clients or client applicants;
    (d) The number of the requests for advocacy services from clients or 
client applicants that the designated agency was unable to serve;
    (e) The reasons that the designated agency was unable to serve all 
of the requests for advocacy services from clients or client applicants; 
and
    (f) Any other information that the Secretary may require.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 732(g) (4) and (5))

[[Page 430]]



Sec. 370.45  What limitation applies to the pursuit of legal remedies?

    A designated agency may not bring any class action in carrying out 
its responsibilities under this part.

(Authority: 29 U.S.C. 732(d))



Sec. 370.46  What consultation requirement applies to a Governor of 
a State?

    In designating a client assistance agency under Sec. 370.2, 
redesignating a client assistance agency under Sec. 370.10(a), and 
carrying out the other provisions of this part, the Governor shall 
consult with the director of the State vocational rehabilitation agency 
(or, in States with both a general agency and an agency for the blind, 
the directors of both agencies), the head of the developmental 
disability protection and advocacy agency, and representatives of 
professional and consumer organizations serving individuals with 
disabilities in the State.

(Authority: 29 U.S.C. 732(c)(2))



Sec. 370.47  When must grant funds be obligated?

    (a) Any funds appropriated for a fiscal year to carry out the CAP 
that are not expended or obligated by the designated agency prior to the 
beginning of the succeeding fiscal year remain available for obligation 
by the designated agency during the succeeding fiscal year in accordance 
with 34 CFR 76.705 through 76.707.
    (b) A designated agency shall inform the Secretary within 90 days 
after the end of the fiscal year for which the CAP funds were made 
available whether the designated agency carried over to the succeeding 
fiscal year any CAP funds that it was unable to obligate by the end of 
the fiscal year.

(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: 29 U.S.C. 718)



Sec. 370.48  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) All personal information about individuals served by any 
designated agency under this part, including lists of names, addresses, 
photographs, and records of evaluation, must be held strictly 
confidential.
    (b) The designated agency's use of information and records 
concerning individuals must be limited only to purposes directly 
connected with the CAP, including program evaluation activities. Except 
as provided in paragraphs (c) and (e) of this section, this information 
may not be disclosed, directly or indirectly, other than in the 
administration of the CAP, unless the consent of the individual to whom 
the information applies, or his or her parent, legal guardian, or other 
legally authorized representative or advocate (including the 
individual's advocate from the designated agency), has been obtained in 
writing. A designated agency may not produce any report, evaluation, or 
study that reveals any personally identifying information without the 
written consent of the individual or his or her representative.
    (c) Except as limited in paragraphs (d) and (e) of this section, the 
Secretary or other Federal or State officials responsible for enforcing 
legal requirements are to have complete access to all--
    (1) Records of the designated agency that receives funds under this 
program; and
    (2) All individual case records of clients served under this part 
without the consent of the client.
    (d) For purposes of conducting any periodic audit, preparing or 
producing any report, or conducting any evaluation of the performance of 
the CAP established or assisted under this part, the Secretary does not 
require the designated agency to disclose the identity of, or any other 
personally identifiable information related to, any individual 
requesting assistance under the CAP.
    (e) Notwithstanding paragraph (d) of this section and consistent 
with paragraph (f) of this section, a designated agency shall disclose 
to the Secretary, if the Secretary so requests, the identity of, or any 
other personally identifiable information (i.e., name, address, 
telephone number, social security number, or any other official code or 
number by which an individual may be readily identified) related to, any 
individual requesting assistance under the CAP if--

[[Page 431]]

    (1) An audit, evaluation, monitoring review, State plan assurance 
review, or other investigation produces reliable evidence that there is 
probable cause to believe that the designated agency has violated its 
legislative mandate or misused Federal funds; or
    (2) The Secretary determines that this information may reasonably 
lead to further evidence that is directly related to alleged misconduct 
of the designated agency.
    (f) In addition to the protection afforded by paragraph (d) of this 
section, the right of a person or designated agency not to produce 
documents or disclose information to the Secretary is governed by the 
common law of privileges, as interpreted by the courts of the United 
States.

(Authority: 29 U.S.C. 711(c) and 732(g)(6))



PART 371_VOCATIONAL REHABILITATION SERVICE PROJECTS FOR AMERICAN 
INDIANS WITH DISABILITIES--Table of Contents



                            Subpart A_General

Sec.
371.1 What is the Vocational Rehabilitation Services Program for 
          American Indians with Disabilities?
371.2 Who is eligible for assistance under this program?
371.3 What regulations apply to this program?
371.4 What definitions apply to this program?
371.5 What is the length of the project period under this program?

  Subpart B_What Kinds of Activities Does the Department of Education 
                       Assist Under This Program?

371.10 What types of projects are authorized under this program?

                Subpart C_How Does One Apply for a Grant?

371.20 What are the application procedures under this program?
371.21 What are the special application requirements related to the 
          State plan Program?

             Subpart D_How Does the Secretary Make a Grant?

371.31 How are grants awarded?

    Subpart E_What Conditions Apply to a Grantee Under This Program?

371.40 What are the matching requirements?
371.41 What are allowable costs?
371.42 How are services to be administered under this program?
371.43 What other special conditions apply to this program?

    Authority: 29 U.S.C. 709(c) and 741, unless otherwise noted.

    Source: 46 FR 5423, Jan. 19, 1981, unless otherwise noted.



                            Subpart A_General



Sec. 371.1  What is the Vocational Rehabilitation Services Program 
for American Indians with Disabilities?

    This program is designed to provide vocational rehabilitation 
services to American Indians with disabilities who reside on Federal or 
State reservations, consistent with their individual strengths, 
resources, priorities, concerns, abilities, capabilities, and informed 
choice, so that they may prepare for and engage in gainful employment.

(Authority: Secs. 100(a)(2) and 130(a) of the Act; 29 U.S.C. 720(a)(2) 
and 750(a))

[60 FR 58137, Nov. 24, 1995]



Sec. 371.2  Who is eligible for assistance under this program?

    Applications may be made only by the governing bodies of Indian 
tribes and consortia of those governing bodies located on Federal and 
State reservations.

(Authority: Sec. 130(a) of the Act; 29 U.S.C. 750(a))

[46 FR 5423, Jan. 19, 1981, as amended at 52 FR 30555, Aug. 14, 1987]



Sec. 371.3  What regulations apply to this program?

    The following regulations apply to this program--
    (a) 34 CFR part 369;
    (b) The regulations in this part 371.

(Authority: Sec. 130 of the Act; 29 U.S.C. 750)



Sec. 371.4  What definitions apply to this program?

    (a) The definitions in 34 CFR part 369 apply to this program;

[[Page 432]]

    (b) The following definitions also apply specifically to this 
program--
    American Indian means a person who is a member of an Indian tribe.


(Authority: Secs. 12(c) and 130 of the Act; 29 U.S.C. 711(c) and 750)

    Consortium means two or more eligible governing bodies of Indian 
Tribes that apply for an award under this program by either:
    (i) Designating one governing body to apply for the grant; or
    (ii) Establishing and designating a separate legal entity to apply 
for the grant.


(Authority: Secs. 12(c) and 130 of the Act; 29 U.S.C. 711(c) and 750)

    Governing bodies of Indian tribes means those duly elected or 
appointed representatives of an Indian tribe or of an Alaskan native 
village. These representatives must have the authority to enter into 
contracts, agreements, and grants on behalf of their constituency.


(Authority: Secs. 12(c) and 130 of the Act; 29 U.S.C. 711(c) and 750)

    Indian tribe means any Federal or State Indian band, rancheria, 
pueblo, colony, and community, including any Alaskan native village or 
regional village corporation (as defined in or established pursuant to 
the Alaska Native Claims Settlement Act).


(Authority: Secs. 12(c) and 130 of the Act; 29 U.S.C. 711(c) and 750)

    Reservation means a Federal or State Indian reservation, public 
domain Indian allotment, former Indian reservation in Oklahoma, and land 
held by incorporated Native groups, regional corporations and village 
corporations under the provisions of the Alaska Native Claims Settlement 
Act.

(Authority: Secs. 12(c) and 130(c) of the Act; 29 U.S.C. 711(c) and 
750(c))

[46 FR 5423, Jan. 19, 1981, as amended at 52 FR 30555, Aug. 14, 1987; 59 
FR 8338, Feb. 18, 1994; 74 FR 40498, Aug. 12, 2009]



Sec. 371.5  What is the length of the project period under this 
program?

    (a) The Secretary approves a project period of up to three years.
    (b) The Secretary may extend a grant for up to two additional years 
if the grantee includes in its extension request--
    (1) An assurance that the project is in compliance with all 
applicable program requirements; and
    (2) Satisfactory evidence that--
    (i) The project has made substantial and measurable progress in 
meeting the needs of American Indians with disabilities on the 
reservation or reservations it serves;
    (ii) American Indians with disabilities who have received project 
services have achieved employment outcomes consistent with their 
strengths, resources, priorities, concerns, abilities, capabilities, and 
informed choice; and
    (iii) There is a continuing need for the project.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Section 130(b)(3) of the Act; 29 U.S.C. 750(b)(3))

[60 FR 58137, Nov. 24, 1995]



  Subpart B_What Kinds of Activities Does the Department of Education 
                       Assist Under This Program?



Sec. 371.10  What types of projects are authorized under this program?

    The Vocational Rehabilitation Service Program for American Indians 
with Disabilities provides financial assistance for the establishment 
and operation of tribal vocational rehabilitation service programs for 
American Indians with disabilities who reside on Federal or State 
reservations.

(Authority: Sec. 130(a) of the Act; 29 U.S.C. 750(a))

[59 FR 8338, Feb. 18, 1994]



                Subpart C_How Does One Apply for a Grant?



Sec. 371.20  What are the application procedures for this program?

    In the development of an application, a governing body or consortium 
is required to consult with the designated State unit or the designated 
State units of the State or States in which

[[Page 433]]

vocational rehabilitation services are to be provided.

(Authority: Sec. 130(b) of the Act; 29 U.S.C. 750(b))

[46 FR 5423, Jan. 19, 1981, as amended at 52 FR 30555, Aug. 14, 1987]



Sec. 371.21  What are the special application requirements related
to the State plan program?

    Each applicant under this program must provide evidence that--
    (a) Effort will be made to provide a broad scope of vocational 
rehabilitation services in a manner and at a level of quality at least 
comparable to those services provided by the designated State unit under 
34 CFR part 361.


(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    (b) All decisions affecting eligibility for and the nature and scope 
of vocational rehabilitation services to be provided, and the provision 
of these services, will be made by the tribal vocational rehabilitation 
program through its vocational rehabilitation unit and will not be 
delegated to another agency or individual.


(Authority: Secs. 12(c) and 101(a) of the Act; 29 U.S.C. 711(c) and 
721(a))

    (c) Priority in the delivery of vocational rehabilitation service 
will be given to those American Indians with disabilities who are the 
most severely disabled.


(Authority: Secs. 12(c) and 101(a)(5) of the Act; 29 U.S.C. 711(c) and 
721(a)(5))

    (d) An order of selection of individuals with disabilities to be 
served under the program will be specified if services cannot be 
provided to all eligible American Indians with disabilities who apply.


(Authority: Secs. 12(c) and 101(a)(5) of the Act; 29 U.S.C. 711(c) and 
721(a)(5))

    (e) All vocational rehabilitation services will be provided 
according to an individualized written rehabilitation program which has 
been developed jointly by the representative of the service providing 
organization and each American Indian with disabilities being served.


(Authority: Secs. 12(c) and 101(a)(9) of the Act; 29 U.S.C. 711(c) and 
721(a)(9))

    (f) American Indians with disabilities living on Federal or State 
reservations where service programs are being carried out under this 
part will have an opportunity to participate in matters of general 
policy development and implementation affecting vocational 
rehabilitation service delivery on the reservation.


(Authority: Secs. 12(c) and 101(a)(18) of the Act; 29 U.S.C. 711(c) and 
721(a)(18))

    (g) Cooperative working arrangements will be developed with the 
designated State unit, or designated State units, as appropriate, which 
are providing vocational rehabilitation services to other individuals 
with disabilities who reside in the State or States being served.


(Authority: Secs. 12(c) and 101(a)(11) of the Act; 29 U.S.C. 711(c) and 
721(a)(11))

    (h) Any similar benefits available to American Indians with 
disabilities under any other program which might meet in whole or in 
part the cost of any vocational rehabilitation service will be fully 
considered in the provision of vocational rehabilitation services in 
accordance with 34 CFR part 361.


(Authority: Secs. 12(c) and 101(a)(8) of the Act; 29 U.S.C. 711(c) and 
721(a)(8))

    (i) Any American Indian with disabilities who is an applicant or 
recipient of services, and who is dissatisfied with a determination made 
by a counselor or coordinator under this program and files a request for 
a review, will be afforded a review under procedures developed by the 
grantee comparable to those under the provisions of section 102(d) (1)-
(3) of the Act.


(Authority: Secs. 12(c) and 102(d) of the Act; 29 U.S.C. 711(c) and 
722(d))

    (j) Minimum standards will be established for community 
rehabilitation programs and providers of service which will be 
comparable to the standards set by the designated State unit

[[Page 434]]

or designated State units in the State or States in which the program is 
to be provided; and


(Authority: Secs. 12(c) and 101(a) (6) and (7) of the Act; 29 U.S.C. 
711(c) and 721(a) (6) and (7))

    (k) Maximum use will be made of public or other vocational or 
technical training facilities or other appropriate community resources.


(Authority: Secs. 12(c) and 101(a)(12) of the Act; 29 U.S.C. 711(c) and 
721(a)(12))

[46 FR 5423, Jan. 19, 1981, as amended at 52 FR 30555, Aug. 14, 1987; 59 
FR 8337, 8338, Feb. 18, 1994]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 371.31  How are grants awarded?

    To the extent that funds have been appropriated under this program, 
the Secretary approves all applications which meet acceptable standards 
of program quality. If any application is not approved because of 
deficiencies in proposed program standards, the Secretary provides 
technical assistance to the applicant Indian tribe with respect to any 
areas of the proposal which were judged to be deficient.

(Authority: Secs. 12(c) and 130 of the Act; 29 U.S.C. 711(c) and 750)



    Subpart E_What Conditions Apply to a Grantee Under This Program?



Sec. 371.40  What are the matching requirements?

    (a) Federal share. Except as provided in paragraph (c) of this 
section, the Federal share may not be more than 90 percent of the total 
cost of the project.
    (b) Non-Federal share. The non-Federal share of the cost of the 
project may be in cash or in kind, fairly valued.
    (c) Waiver of non-Federal share. In order to carry out the purposes 
of the program, the Secretary may waive the non-Federal share 
requirement, in part or in whole, only if the applicant demonstrates 
that it does not have sufficient resources to contribute the non-Federal 
share of the cost of the project.

(Authority: Secs. 12(c) and 130(a) of the Act; 29 U.S.C. 711(c) and 
750(a))

[52 FR 30556, Aug. 14, 1987]



Sec. 371.41  What are allowable costs?

    (a) In addition to those allowable costs established in EDGAR 
Sec. Sec. 75.530-75.534, the following items are allowable costs under 
this program--
    (1) Expenditures for the provision of vocational rehabilitation 
services and for the administration, including staff development, of a 
program of vocational rehabilitation services.
    (2) Expenditures for services reflecting the cultural background of 
the American Indians being served, including treatment provided by 
native healing practitioners who are recognized as such by the tribal 
vocational rehabilitation program when the services are necessary to 
assist an individual with disabilities to achieve his or her vocational 
rehabilitation objective.
    (b) Expenditures may not be made under this program to cover the 
costs of providing vocational rehabilitation services to individuals 
with disabilities not residing on Federal or State reservations.

(Authority: Secs. 12(c) and 130(a) of the Act; 29 U.S.C. 711(c) and 
750(a))

[46 FR 5423, Jan. 19, 1981, as amended at 52 FR 30555, Aug. 14, 1987; 59 
FR 8337, Feb. 18, 1994]



Sec. 371.42  How are services to be administered under this program?

    (a) Directly or by contract. A grantee under this part may provide 
the vocational rehabilitation services directly or it may contract or 
otherwise enter into an agreement with a designated State unit, a 
community rehabilitation program, or another agency to assist in the 
implementation of the vocational rehabilitation service program for 
American Indians with disabilities.
    (b) Inter-tribal agreement. A grantee under this part may enter into 
an inter-tribal arrangement with governing bodies of other Indian tribes 
for carrying out a project that serves more than one Indian tribe.

[[Page 435]]

    (c) Comparable service program. To the maximum extent feasible, 
services provided by a grantee under this part must be comparable to 
rehabilitation service provided under this title to other individuals 
with disabilities residing in the State.

(Authority: Secs. 12(c) and 130 of the Act; 29 U.S.C. 711(c) and 750)

[52 FR 30556, Aug. 14, 1987, as amended at 59 FR 8337, 8338, Feb. 18, 
1994]



Sec. 371.43  What other special conditions apply to this program?

    (a) Any American Indian with disabilities who is eligible for 
service under this program but who wishes to be provided service by the 
designated State unit must be referred to the State unit for such 
services.
    (b) Preference in employment in connection with the provision of 
vocational rehabilitation services under this section must be given to 
American Indians, with a special priority being given to American 
Indians with disabilities.
    (c) The provisions of sections 5, 6, 7, and 102(a) of the Indian 
Self-Determination and Education Assistance Act also apply under this 
program. These provisions relate to grant reporting and audit 
requirements, maintenance of records, access to records, availability of 
required reports and information to Indian people served or represented, 
repayment of unexpended Federal funds, criminal activities involving 
grants, penalties, wage and labor standards, preference requirements for 
American Indians in the conduct and administration of the grant, and 
requirements affecting requests of tribal organizations to enter into 
contracts. For purposes of applying these requirements to this program, 
the Secretary carries out those responsibilities assigned to the 
Secretary of Interior.

(Authority: Secs. 12(c) and 130(b)(2) of the Act; 29 U.S.C. 711(c) and 
750(b)(2))

[46 FR 5423, Jan. 19, 1981, as amended at 52 FR 30555, Aug. 14, 1987; 59 
FR 8337, Feb. 18, 1994]



PART 373_SPECIAL DEMONSTRATION PROGRAMS--Table of Contents



                            Subpart A_General

Sec.
373.1 What is the purpose of the Special Demonstration Programs?
373.2 Who is eligible for assistance?
373.3 What regulations apply?
373.4 What definitions apply?
373.5 Who is eligible to receive services and to benefit from activities 
          conducted by eligible entities?
373.6 What are the priorities and other factors and requirements for 
          competitions?

             Subpart B_How Does the Secretary Make a Grant?

373.10 What selection criteria does the Secretary use?
373.11 What other factors does the Secretary consider when making a 
          grant?

           Subpart C_What Conditions Must Be Met by a Grantee?

373.20 What are the matching requirements?
373.21 What are the reporting requirements?
373.22 What are the limitations on indirect costs?
373.23 What additional requirements must be met?
373.24 What are the special requirements pertaining to the protection, 
          use, and release of personal information?

    Authority: 29 U.S.C. 773(b), unless otherwise noted.

    Source: 65 FR 77433, Dec. 11, 2000, unless otherwise noted.



                            Subpart A_General



Sec. 373.1  What is the purpose of the Special Demonstration Programs?

    The purpose of this program is to provide competitive grants to, or 
enter into contracts with, eligible entities to expand and improve the 
provision of rehabilitation and other services authorized under the 
Rehabilitation Act of 1973, as amended (Act), or to further the purposes 
and policies in sections 2(b) and (c) of the Act by supporting 
activities that increase the provision, extent, availability, scope, and 
quality of rehabilitation services under the Act, including related 
research and evaluations activities.

(Authority: 29 U.S.C. 701(b) and (c), 711(c), and 773(b))

[[Page 436]]



Sec. 373.2  Who is eligible for assistance?

    (a) The following types of organizations are eligible for assistance 
under this program:
    (1) State vocational rehabilitation agencies.
    (2) Community rehabilitation programs.
    (3) Indian tribes or tribal organizations.
    (4) Other public or nonprofit agencies or organizations, including 
institutions of higher education.
    (5) For-profit organizations, if the Secretary considers them to be 
appropriate.
    (6) Consortia that meet the requirements of 34 CFR 75.128 and 
75.129.
    (7) Other organizations identified by the Secretary and published in 
the Federal Register.
    (b) In competitions held under this program, the Secretary may limit 
competitions to one or more types of these organizations.

(Authority: 29 U.S.C. 711(c) and 773(b)(2))



Sec. 373.3  What regulations apply?

    The following regulations apply to this program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants and Agreements with 
Institutions of Higher Education, Hospitals, and other Non-profit 
Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 35 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug and Alcohol Abuse Prevention).
    (10) 34 CFR part 97 (Protection of Human Subjects).
    (11) 34 CFR part 99 (Family Educational Rights and Privacy).
    (b) The regulations in this part 373.
    (c) The regulations in 48 CFR part 31 (Contracts Cost Principles and 
Procedures).

(Authority: 29 U.S.C. 711(c))



Sec. 373.4  What definitions apply?

    The following definitions apply to this part:
    Act means the Rehabilitation Act of 1973, as amended.


(Authority: 29 U.S.C. 701 et seq.)

    Early intervention means a service delivery or model demonstration 
program for adults with disabilities designed to begin the 
rehabilitation services as soon as possible after the onset or 
identification of actually or potentially disabling conditions. The 
populations served may include, but are not limited to, the following:
    (a) Individuals with chronic and progressive diseases that may 
become more disabling, such as multiple sclerosis, progressive visual 
disabilities, or HIV.
    (b) Individuals in the acute stages of injury or illness, including, 
but not limited to, diabetes, traumatic brain injury, stroke, burns, or 
amputation.


(Authority: 29 U.S.C. 711(c))

    Employment outcome is defined in 34 CFR 361.5.


(Authority: 29 U.S.C. 711(c))

    Individual with a disability is defined as follows:
    (a) For an individual who will receive rehabilitation services under 
this part, an individual with a disability means an individual--
    (1) Who has a physical or mental impairment which, for that 
individual, constitutes or results in a substantial impediment to 
employment; and
    (2) Who can benefit in terms of an employment outcome from 
vocational rehabilitation services.

[[Page 437]]

    (b) For all other purposes of this part, an individual with a 
disability means an individual--
    (1) Who has a physical or mental impairment that substantially 
limits one or more major life activities;
    (2) Who has a record of such an impairment; or
    (3) Who is regarded as having such an impairment.
    (c) For purposes of paragraph (b) of this definition, projects that 
carry out services or activities pertaining to Title V of the Act must 
also meet the requirements for ``an individual with a disability'' in 
section 7(20)(c) through (e) of the Act, as applicable.


(Authority: 29 U.S.C. 705(20)(A) and (B))

    Individual with a significant disability means an individual--
    (a) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (b) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (c) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental 
retardation, mental illness, multiple sclerosis, muscular dystrophy, 
musculo-skeletal disorders, neurological disorders (including stroke and 
epilepsy), paraplegia, quadriplegia and other spinal cord conditions, 
sickle-cell anemia, specific learning disabilities, end-stage renal 
disease, or another disability or combination of disabilities determined 
on the basis of an assessment for determining eligibility and vocational 
rehabilitation needs to cause comparable substantial functional 
limitation.


(Authority: 29 U.S.C. 705(21)(A))

    Informed choice means the provision of activities whereby 
individuals with disabilities served by projects under this part have 
the opportunity to be active, full partners in the rehabilitation 
process, making meaningful and informed choices as follows:
    (a) During assessments of eligibility and vocational rehabilitation 
needs.
    (b) In the selection of employment outcomes, services needed to 
achieve the outcomes, entities providing these services, and the methods 
used to secure these services.


(Authority: 29 U.S.C. 711(c))

    Rehabilitation services means services provided to an individual 
with a disability in preparing for, securing, retaining, or regaining an 
employment outcome that is consistent with the strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and informed 
choice of the individual. Rehabilitation services for an individual with 
a disability may include--
    (a) An assessment for determining eligibility and vocational 
rehabilitation needs by qualified personnel, including, if appropriate, 
an assessment by personnel skilled in rehabilitation technology;
    (b) Counseling and guidance, including information and support 
services to assist an individual in exercising informed choice;
    (c) Referral and other services to secure needed services from other 
agencies;
    (d) Job-related services, including job search and placement 
assistance, job retention services, follow-up services, and follow-along 
services;
    (e) Vocational and other training services, including the provision 
of personal and vocational adjustment services, books, tools, and other 
training materials;
    (f) Diagnosis and treatment of physical and mental impairments;
    (g) Maintenance for additional costs incurred while the individual 
is receiving services;
    (h) Transportation;
    (i) On-the-job or other related personal assistance services;
    (j) Interpreter and reader services;
    (k) Rehabilitation teaching services, and orientation and mobility 
services;
    (l) Occupational licenses, tools, equipment, and initial stocks and 
supplies;

[[Page 438]]

    (m) Technical assistance and other consultation services to conduct 
market analysis, develop business plans, and otherwise provide resources 
to eligible individuals who are pursuing self-employment or 
telecommuting or establishing a small business operation as an 
employment outcome;
    (n) Rehabilitation technology, including telecommunications, 
sensory, and other technological aids and devices;
    (o) Transition services for individuals with disabilities that 
facilitate the achievement of employment outcomes;
    (p) Supported employment services;
    (q) Services to the family of an individual with a disability 
necessary to assist the individual to achieve an employment outcome;
    (r) Post-employment services necessary to assist an individual with 
a disability to retain, regain, or advance in employment; and
    (s) Expansion of employment opportunities for individuals with 
disabilities, which includes, but is not limited to--
    (1) Self-employment, business ownership, and entreprenuership;
    (2) Non-traditional jobs, professional employment, and work 
settings;
    (3) Collaborating with employers, Economic Development Councils, and 
others in creating new jobs and career advancement options in local job 
markets through the use of job restructuring and other methods; and
    (4) Other services as identified by the Secretary and published in 
the Federal Register.


(Authority: 29 U.S.C. 711(c) and 723(a))

    Substantial impediment to employment means that a physical or mental 
impairment (in light of attendant medical, psychological, vocational, 
educational, and other related factors) hinders an individual from 
preparing for, entering into, engaging in, or retaining employment 
consistent with the individual's capacities and abilities.


(Authority: 29 U.S.C. 705(20)(A))

    Youth or Young adults with disabilities means individuals with 
disabilities who are between the ages of 16 and 26 inclusive when 
entering the program.


(Authority: 29 U.S.C. 711(c) and 723(a))



Sec. 373.5  Who is eligible to receive services and to benefit from
activities conducted by eligible entities?

    (a)(1) For projects that provide rehabilitation services or 
activities to expand and improve the provision of rehabilitation 
services and other services authorized under Titles I, III, and VI of 
the Act, individuals are eligible who meet the definition in paragraph 
(a) of an ``individual with a disability'' as stated in Sec. 373.4.
    (2) For projects that provide independent living services or 
activities, individuals are eligible who meet the definition in 
paragraph (b) of an ``individual with a disability'' as stated in Sec. 
373.4.
    (3) For projects that provide other services or activities that 
further the purposes of the Act, individuals are eligible who meet the 
definition in paragraph (b) of an ``individual with a disability'' as 
stated in Sec. 373.4.
    (b) By publishing a notice in the Federal Register, the Secretary 
may identify individuals determined to be eligible under one or more of 
the provisions in paragraph (a) of this section.

(Authority: 29 U.S.C. 711(c) and 723(a))



Sec. 373.6  What are the priorities and other factors and requirements
for competitions?

    (a)(1) In making an award, the Secretary may limit competitions to, 
or otherwise give priority to, one or more of the priority projects 
listed in paragraph (b) of this section that are identified by the 
Secretary and published in a notice in the Federal Register.
    (2) The Secretary also will identify in the notice the following:
    (i) Specific required priority project activities authorized under 
section 303 of the Act that the applicant must conduct for the priority 
project to be approved for funding.
    (ii) Any of the additional factors listed in paragraph (c) of this 
section that the Secretary may consider in making an award.
    (b) Priority projects are as follows:

[[Page 439]]

    (1) Special projects of service delivery.
    (2) Model demonstration.
    (3) Technical assistance.
    (4) Systems change.
    (5) Special studies, research, or evaluations.
    (6) Dissemination and utilization.
    (7) Replication.
    (8) Special projects and demonstration of service delivery for 
adults who are low-functioning and deaf or low-functioning and hard of 
hearing.
    (9) Supported employment.
    (10) Model transitional rehabilitation services for youth and young 
adults with disabilities.
    (11) Expansion of employment opportunities for individuals with 
disabilities, as authorized in paragraph (s) of the definition of 
``rehabilitation services'' as stated in Sec. 373.4.
    (12) Projects to promote meaningful access of individuals with 
disabilities to employment-related services under Title I of the 
Workforce Investment Act of 1998 and under other Federal laws.
    (13) Innovative methods of promoting achievement of high-quality 
employment outcomes.
    (14) The demonstration of the effectiveness of early intervention 
activities in improving employment outcomes.
    (15) Projects to find alternative methods of providing affordable 
transportation services to individuals with disabilities.
    (16) Other projects that will expand and improve the provision, 
extent, availability, scope, and quality of rehabilitation and other 
services under the Act or that further the purpose and policy of the Act 
as stated in section 2(b) and (c) of the Act.
    (c) The Secretary may identify and publish in the Federal Register 
for specific projects listed in paragraph (b) of this section one or 
more of the following factors, including any specific elements defining 
any factor (e.g., the Secretary may identify ages 16 through 21 to be 
the specific age range for a particular competition):
    (1) Specific stages of the rehabilitation process.
    (2) Unserved and underserved populations.
    (3) Unserved and underserved geographical areas.
    (4) Individuals with significant disabilities.
    (5) Low-incidence disability populations.
    (6) Individuals residing in federally designated Empowerment Zones 
and Enterprise Communities.
    (7) Types of disabilities.
    (8) Specific age ranges.
    (9) Other specific populations and geographical areas.
    (d) The Secretary may require that an applicant certify that the 
project does not include building upon or expanding activities that have 
previously been conducted or funded, for that applicant or in that 
service area.
    (e) The Secretary may require that the project widely disseminate 
the methods of rehabilitation service delivery or model proven to be 
effective, so that they may be adapted, replicated, or purchased under 
fee-for-service arrangements by State vocational rehabilitation agencies 
and other disability organizations in the project's targeted service 
area or other locations.

(Authority: 29 U.S.C. 711(c) and 773(b)(4) and (5))



             Subpart B_How Does the Secretary Make a Grant?



Sec. 373.10  What selection criteria does the Secretary use?

    The Secretary publishes in the Federal Register or includes in the 
application package the selection criteria for each competition under 
this program. To evaluate the applications for new grants under this 
program, the Secretary may use the following:
    (a) Selection criteria established under 34 CFR 75.209.
    (b) Selection criteria in 34 CFR 75.210.
    (c) Any combination of selection criteria from paragraphs (a) and 
(b) of this section.

(Authority: 29 U.S.C. 711(c) and 723(a))



Sec. 373.11  What other factors does the Secretary consider when
making a grant?

    (a) The Secretary funds only those applications submitted in 
response to

[[Page 440]]

competitions announced in the Federal Register.
    (b) The Secretary may consider the past performance of the applicant 
in carrying out activities under previously awarded grants.
    (c) The Secretary awards bonus points if identified and published in 
the Federal Register for specific competitions.

(Authority: 29 U.S.C. 711(c) and 723(a))



           Subpart C_What Conditions Must Be Met By a Grantee?



Sec. 373.20  What are the matching requirements?

    The Secretary may make grants to pay all or part of the cost of 
activities covered under this program. If the Secretary determines that 
the grantee is required to pay part of the costs, the amount of grantee 
participation is specified in the application notice, and the Secretary 
will not require grantee participation to be more than 10 percent of the 
total cost of the project.

(Authority: 29 U.S.C. 711(c) and 723(a))



Sec. 373.21  What are the reporting requirements?

    (a) In addition to the program and fiscal reporting requirements in 
EDGAR that are applicable to projects funded under this program, the 
Secretary may require that recipients of grants under this part submit 
information determined by the Secretary to be necessary to measure 
project outcomes and performance, including any data needed to comply 
with the Government Performance and Results Act.
    (b) Specific reporting requirements for competitions will be 
identified by the Secretary and published in the Federal Register.

(Authority: 29 U.S.C. 711(c) and 776)



Sec. 373.22  What are the limitations on indirect costs?

    (a) Indirect cost reimbursement for grants under this program is 
limited to the recipient's actual indirect costs, as determined by its 
negotiated indirect cost rate agreement, or 10 percent of the total 
direct cost base, whichever amount is less.
    (b) Indirect costs in excess of the 10 percent limit may be used to 
satisfy matching or cost-sharing requirements.
    (c) The 10 percent limit does not apply to federally recognized 
Indian tribal governments and their tribal representatives.

(Authority: 29 U.S.C. 711(c))



Sec. 373.23  What additional requirements must be met?

    (a) Each grantee must do the following:
    (1) Ensure equal access and treatment for eligible project 
participants who are members of groups that have traditionally been 
underrepresented based on race, color, national origin, gender, age, or 
disabilities.
    (2) Encourage applications for employment from persons who are 
members of groups that have traditionally been underrepresented based on 
race, color, national origin, gender, age, or disabilities.
    (3) Advise individuals with disabilities who are applicants for or 
recipients of the services, or the applicants' representatives or the 
individuals' representatives, of the availability and purposes of the 
Client Assistance Program, including information on means of seeking 
assistance under that program.
    (4) Provide, through a careful appraisal and study, an assessment 
and evaluation of the project that indicates the significance or worth 
of processes, methodologies, and practices implemented by the project.
    (b) A grantee may not make a subgrant under this part. However, a 
grantee may contract for supplies, equipment, and other services, in 
accordance with 34 CFR part 74, subpart C--Post-Award Requirements, 
Procurement Standards.

(Authority: 29 U.S.C. 711(c) and 717)



Sec. 373.24  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) All personal information about individuals served by any project 
under this part, including lists of names, addresses, photographs, and 
records of evaluation, must be confidential.

[[Page 441]]

    (b) The use of information and records concerning individuals must 
be limited only to purposes directly connected with the project, 
including project reporting and evaluation activities. This information 
may not be disclosed, directly or indirectly, other than in the 
administration of the project unless the consent of the agency providing 
the information and the individual to whom the information applies, or 
his or her representative, has been obtained in writing. The Secretary 
or other Federal officials responsible for enforcing legal requirements 
have access to this information without written consent being obtained. 
The final products of the project may not reveal any personal 
identifying information without written consent of the individual or his 
or her representative.

(Authority: 29 U.S.C. 711(c))



PART 376_SPECIAL PROJECTS AND DEMONSTRATIONS FOR PROVIDING 
TRANSITIONAL REHABILITATION SERVICES TO YOUTH WITH 

DISABILITIES--Table of Contents



                            Subpart A_General

Sec.
376.1 What is the program of Special Projects and Demonstrations for 
          Providing Transitional Rehabilitation Services to Youths with 
          Disabilities?
376.2 Who is eligible for assistance under this program?
376.3 What regulations apply to this program?
376.4 What definitions apply to this program?

Subpart B_What Kinds of Activities Does the Secretary Assist Under This 
                                Program?

376.10 What types of projects are authorized under this program?

Subpart C [Reserved]

             Subpart D_How Does the Secretary Make a Grant?

376.30 What priorities are considered for support by the Secretary under 
          this part?

           Subpart E_What Conditions Must Be Met by a Grantee?

376.40 What are the matching requirements?
376.41 What are the requirements for cooperation between grantees and 
          other agencies and organizations?

    Authority: 29 U.S.C. 777a(b), unless otherwise noted.

    Source: 51 FR 3895, Jan. 30, 1986, unless otherwise noted.



                            Subpart A_General



Sec. 376.1  What is the program of Special Projects and Demonstrations
for Providing Transitional Rehabilitation Services to Youths with 

Disabilities?

    This program is designed to provide job training for youths with 
disabilities to prepare them for entry into the labor force, including 
competitive or supported employment.

(Authority: Sec. 311(b); 29 U.S.C. 777a(b))

[51 FR 3895, Jan. 30, 1986, as amended at 57 FR 28441, June 24, 1992; 59 
FR 8340, Feb. 18, 1994]



Sec. 376.2  Who is eligible for assistance under this program?

    State and other public and nonprofit agencies and organizations are 
eligible for assistance under this program.

(Authority: Sec. 311(b); 29 U.S.C. 777a(b))



Sec. 376.3  What regulations apply to this program?

    The following regulations apply to this program:
    (a) The regulations in 34 CFR part 369.
    (b) The regulations in this part 376.
    (c) The regulations in 34 CFR 380.20.

(Authority: Secs. 12(c) and 311(b); 29 U.S.C. 711(c) and 777a(b))

[51 FR 3895, Jan. 30, 1986, as amended at 57 FR 28441, June 24, 1992]



Sec. 376.4  What definitions apply to this program?

    (a) The definitions in 34 CFR part 369.
    (b) The definition of ``Supported employment'' in 34 CFR part 363.
    (c) The definitions of ``Competitive employment'', ``Integrated 
setting'', ``On-going support services'', ``Transitional employment'', 
and ``Time-limited services'' in 34 CFR part 380.
    (d) The following definitions also apply to this program:

[[Page 442]]

    (1) Extended services means on-going support services and other 
appropriate services provided by a State agency, a private nonprofit 
organization, employer, or any other appropriate resource, from funds 
other than funds under this part, part 361, part 363, or part 380, after 
an individual with the most severe disabilities has made the transition 
from project support.
    (2) Transitional rehabilitation services means any vocational 
rehabilitation services available under the State plan for vocational 
rehabilitation services under 34 CFR part 361 or the State plan for 
independent living services under 34 CFR part 365 and may also include--
    (i) Jobs search assistance;
    (ii) On-the-job training;
    (iii) Job development, including work-site modification and use of 
advanced learning technology for skills training; and
    (iv) Follow-up services for individuals placed in employment.
    (3) Youths with disabilities means individuals with disabilities 
between the ages of 12 and 26.

(Authority: 29 U.S.C. 711(c) and 777a(b))

[57 FR 28441, June 24, 1992, as amended at 59 FR 8340, Feb. 18, 1994; 62 
FR 6363, Feb. 11, 1997]



Subpart B_What Kinds of Activities Does the Secretary Assist Under This 
                                Program?



Sec. 376.10  What types of projects are authorized under this program?

    (a) This program supports special projects and demonstrations, 
including research and evaluation, for the following purposes:
    (1) To demonstrate effective ways in which to provide job training, 
placement, and other transitional rehabilitation services to youths with 
disabilities to prepare them for entry in the labor force, including 
competitive or supported employment.
    (2) To demonstrate service programs for youths with disabilities 
reflecting cooperative efforts between local educational agencies, 
business and industry, vocational rehabilitation agencies, community 
rehabilitation programs, parent groups, public or other nonprofit 
developmental disabilities agencies, organizations representing labor, 
and organizations responsible for promoting or assisting in local 
economic development.
    (3) To develop and implement new patterns or practices of 
transitional rehabilitation service delivery and to conduct the field-
testing and evaluation of these patterns or practices to determine the 
efficacy of their being replicated in other settings.
    (b) Research and evaluation activities carried out under this 
program must be specifically related to a transitional rehabilitation 
service model under which direct services are provided.
    (c) Projects funded under this part must serve youths with 
disabilities.
    (d) A project funded under this part may include dissemination of 
information on project activities to business and industry.

(Authority: Secs. 12(c) and 311(b); 29 U.S.C. 711a(c) and 777(b))

[51 FR 3895, Jan. 30, 1986, as amended at 59 FR 8340, Feb. 18, 1994]

Subpart C [Reserved]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 376.30  What priorities are considered for support by the 
Secretary under this part?

    The Secretary may select annually in a notice published in the 
Federal Register, one or more of the following priority areas for 
funding under this program:
    (a) Community-based transitional rehabilitation service delivery. 
This priority supports projects that demonstrate exemplary models for 
developing and establishing community-based transitional rehabilitation 
service programs that result directly in competitive or supported 
employment for youths with disabilities within the labor force.
    (b) Statewide transitional rehabilitation service delivery. This 
priority supports projects that demonstrate effective Statewide 
approaches to transitional rehabilitation service delivery for youths 
with disabilities and demonstrate cooperative efforts between State 
agencies responsible for service

[[Page 443]]

to youths with disabilities including but not limited to, special 
education, vocational rehabilitation, and day services for adults with 
developmental disabilities.
    (c) Transitional rehabilitation services for youths with 
disabilities who have special needs. This priority supports projects 
that demonstrate transitional rehabilitation service programs focused on 
meeting the special job training and placement needs of one or more 
groups of individuals with physical or mental disabilities which present 
unusual and difficult rehabilitation problems including, but not limited 
to, blindness, cerebral palsy, deafness, epilepsy, mental illness, 
mental retardation, and learning disability.
    (d) Transitional rehabilitation services for institutionalized 
persons. This priority supports projects that demonstrate effective ways 
to assist youths and young adults who are institutionalized, including 
those residing in skilled nursing or intermediate care facilities, to 
return to community living and competitive or supported employment.
    (e) Transitional rehabilitation services for unemployed youths with 
disabilities. This priority supports projects that demonstrate ways to 
train and place in competitive or supported employment youths with 
disabilities who were unable to participate in special education 
programs or who recently graduated from those programs but have been 
unable to secure and maintain employment.
    (f) Home-based transitional rehabilitation services. This priority 
supports projects that demonstrate ways in which youths with 
disabilities, including those residing in rural areas, who because of 
the severity of their disabilities are precluded from employment in the 
community, could be gainfully employed in home settings.

(Authority: Sec. 311(b); 29 U.S.C. 777 (a), (b))

[51 FR 3895, Jan. 30, 1986, as amended at 59 FR 8340, Feb. 18, 1994]



           Subpart E_What Conditions Must Be Met by a Grantee?



Sec. 376.40  What are the matching requirements?

    The Secretary may pay all or part of the costs of activities funded 
under this program. If part of the costs is to be paid by a grantee, the 
amount of grantee participation is specified in the application notice 
and will not be more than 10 percent of the total cost of the project.

(Authority: Secs. 12(c) and 311(b); 29 U.S.C. 711(c) and 777a(b))

[59 FR 8340, Feb. 18, 1994]



Sec. 376.41  What are the requirements for cooperation between 
grantees and other agencies and organizations?

    Each project must be designed to demonstrate a cooperative effort 
between local educational agencies, business and industry, vocational 
rehabilitation programs, organizations representing labor, and 
organizations responsible for promoting or assisting in local economic 
development.

(Authority: Sec. 311(b); 29 U.S.C. 777a(b))



PART 377_DEMONSTRATION PROJECTS TO INCREASE CLIENT CHOICE 
PROGRAM--Table of Contents



                            Subpart A_General

Sec.
377.1 What is the Demonstration Projects to Increase Client Choice 
          Program?
377.2 Who is eligible for an award?
377.3 What types of activities may the Secretary fund?
377.4 What regulations apply?
377.5 What definitions apply?

               Subpart B_How Does One Apply for an Award?

377.10 How does an eligible entity apply for an award?
377.11 What is the content of an application for an award?

             Subpart C_How Does the Secretary Make an Award?

377.20 How does the Secretary evaluate an application?
377.21 What selection criteria does the Secretary use?

[[Page 444]]

377.22 What additional factors does the Secretary consider in making 
          grants?

     Subpart D_What Post-Award Conditions Must Be Met by a Grantee?

377.30 What information must a grantee maintain and provide to the 
          Secretary?
377.31 What information must a grantee provide to eligible clients?
377.32 What are the matching requirements?

    Authority: Sec. 802(g) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g), unless otherwise noted.

    Source: 58 FR 40709, July 29, 1993, unless otherwise noted.



                            Subpart A_General



Sec. 377.1  What is the Demonstration Projects to Increase Client 
Choice Program?

    The Demonstration Projects to Increase Client Choice Program is 
designed to provide financial assistance for projects that demonstrate 
ways to increase client choice in the vocational rehabilitation process, 
including choice in the selection of vocational rehabilitation goals, 
services, and providers.

(Authority: Sec. 802(g)(1) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g)(1))



Sec. 377.2  Who is eligible for an award?

    States and public and nonprofit agencies and organizations are 
eligible to receive a grant under this program.

(Authority: Sec. 802(g)(1) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g)(1))



Sec. 377.3  What types of activities may the Secretary fund?

    The Secretary provides financial assistance under this program for 
activities that are directly related to planning, operating, and 
evaluating projects to demonstrate effective ways to increase the 
choices available to eligible clients in the rehabilitation process as 
follows:
    (a) At a minimum, all projects must demonstrate effective ways to 
increase the choices available to clients in selecting goals, services, 
and providers of services.
    (b) Projects may also use these funds to demonstrate additional ways 
to increase the choices available to clients in the rehabilitation 
process.

(Authority: Secs. 802(g)(1) and 802(g)(2)(A) of the Rehabilitation Act 
of 1973; 29 U.S.C. 797a(g) (1) and (2))



Sec. 377.4  What regulations apply?

    The following regulations apply to the Demonstration Projects to 
Increase Client Choice Program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The following regulations in 34 CFR part 369 (Vocational 
Rehabilitation Service Projects): Sec. Sec. 369.43, 369.46, and 369.47.
    (c) The regulations in this part 377.

(Authority: Sec. 802(g) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g))



Sec. 377.5  What definitions apply?

    (a) Definitions in the Rehabilitation Act of 1973, as amended (the 
Act). The following terms used in this part are defined in the Act:
    Client or eligible client means an individual with a disability who 
is not currently receiving services under an individualized written 
rehabilitation program established through a designated State unit. 
(Section 802(g)(8) of the Act)

[[Page 445]]

    Individual with a disability means any individual who--
    (1) Has a physical or mental impairment that for that individual 
constitutes or results in a substantial impediment to employment; and
    (2) Can benefit in terms of an employment outcome from vocational 
rehabilitation services provided pursuant to title I, III, VI, or VIII 
of the Act. (Section 7(8)(A) of the Act)
    Individual with a severe disability means an individual with a 
disability--
    (1) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental 
retardation, mental illness, multiple sclerosis, muscular dystrophy, 
musculo-skeletal disorders, neurological disorders (including stroke and 
epilepsy), spinal cord conditions (including paraplegia and 
quadriplegia), sickle cell anemia, specific learning disability, end-
stage renal disease, or another disability or combination of 
disabilities determined on the basis of an assessment for determining 
eligibility and vocational rehabilitation needs to cause comparable 
substantial functional limitation. (Section 7(15)(A) of the Act)
    State means each of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, the United States 
Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Republic of Palau (until the Compact of Free 
Association with Palau takes effect). (Section 7(16) of the Act)
    Vocational rehabilitation services means the services authorized in 
section 103(a) of the Act. (Section 103(a) of the Act)
    (b) Definitions in EDGAR. (1) The following terms used in this part 
are defined in 34 CFR 77.1:
    Applicant
    Application
    Award
    Budget period
    Department
    EDGAR
    Nonprofit
    Project
    Project period
    Public
    Secretary
    (2) The following terms used in this part are defined in 34 CFR 
74.3:
    Grant
    Grantee
    (c) Other definitions. The following definitions also apply to this 
part:
    Employment outcome means entering or retaining full-time or, if 
appropriate, part-time competitive employment in the integrated labor 
market, the practice of a profession, self-employment, homemaking, farm 
or family work (including work for which payment is in kind rather than 
in cash), extended employment in a community rehabilitation program, 
supported employment, or other gainful work.
    Voucher means a credit of specified monetary value, issued by a 
grantee to an eligible client, that the eligible client exchanges for 
vocational rehabilitation services from a qualified provider.

(Authority: Secs. 7(5), 7(8)(A), and 802(g) of the Rehabilitation Act of 
1973; 29 U.S.C. 706 and 29 U.S.C. 797a(g))

[58 FR 40709, July 29, 1993, as amended at 59 FR 8340, Feb. 18, 1994]



               Subpart B_How Does One Apply for an Award?



Sec. 377.10  How does an eligible entity apply for an award?

    In order to apply for a grant, an eligible entity shall submit an 
application to the Secretary in response to an application notice 
published in the Federal Register.

(Authority: Sec. 802(g)(3) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g)(3))

[[Page 446]]



Sec. 377.11  What is the content of an application for an award?

    (a) The grant application must include a description of--
    (1) The manner in which the applicant intends to promote increased 
client choice in the geographical area identified in the application;
    (2) The manner in which the applicant intends to provide 
individuals, including individuals with cognitive disabilities, the 
information necessary to make informed choices, including, at a minimum, 
informed choices in the selection of goals, services, and providers.
    (3) The outreach activities the applicant plans to conduct to obtain 
eligible clients, including clients who are individuals with a severe 
disability;
    (4) The manner in which the applicant will ensure that service 
providers are accredited or meet any quality assurance and cost-control 
criteria established by the State;
    (5) The manner in which the applicant will ensure that eligible 
clients are satisfied with the quality and scope of services provided;
    (6) The manner in which the applicant will monitor and account for 
use of funds to purchase services;
    (7) The manner in which the applicant will determine the monetary 
value of the services or products available to clients, including, if 
appropriate, the monetary value of vouchers;
    (8) The manner in which the applicant will address the needs of 
individuals with disabilities who are from minority backgrounds; and
    (9) Those features of the proposed project that the applicant 
considers to be essential and a discussion of their potential for 
widespread replication.
    (b) The application also must include assurances from the applicant 
that--
    (1) A written plan to provide vocational rehabilitation services 
will be established for, and with the full participation of, each 
eligible client, and, if the client elects, with the participation also 
of family members, guardians, advocates, or authorized representatives, 
that at a minimum will include--
    (i) A statement of the client's vocational rehabilitation goals, 
which must include goals that are designed to lead to an employment 
outcome consistent with the client's unique strengths, resources, 
priorities, concerns, abilities, and capabilities;
    (ii) A statement of the specific vocational rehabilitation services 
to be provided and the projected dates for the initiation and 
termination of each service; and
    (iii) A description of an evaluation procedure for determining 
whether the client's vocational rehabilitation goals are being achieved, 
including--
    (A) Objective evaluation criteria; and
    (B) An evaluation schedule;
    (2) The Federal funds granted under this part will be used to 
supplement, and in no case to supplant, funds made available from other 
Federal and non-Federal sources for projects providing increased choice 
in the rehabilitation process;
    (3) At least 80 percent of the funds awarded for any project under 
this part will be used to provide vocational rehabilitation services, as 
specifically chosen by eligible clients;
    (4) The applicant will cooperate fully with the Secretary in a 
national evaluation, including assisting the Department's contractor in 
selecting and obtaining data for a control group established through 
random assignment or by the selection of a matched comparison group; and
    (5) Individuals with disabilities will be involved in the 
development and implementation of the project.
    (c) Each applicant also shall submit to the Secretary any other 
information and assurances that the Secretary determines to be 
necessary.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Secs. 21(b)(6), 802(g)(2), 802(g)(3), 802(g)(5), 802(g)(6), 
and 802(g)(7) of the Rehabilitation Act of 1973; 29 U.S.C. 718b and 29 
U.S.C. 797a(g)(2), (3), (5), (6), and (7))



             Subpart C_How Does the Secretary Make an Award?



Sec. 377.20  How does the Secretary evaluate an application?

    (a) The Secretary evaluates an application on the basis of the 
criteria in Sec. 377.21.
    (b) The Secretary awards up to 100 points for these criteria.

[[Page 447]]

    (c) The maximum possible score for each criterion is indicated in 
parentheses.

(Authority: Sec. 802(g)(3) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g)(3))



Sec. 377.21  What selection criteria does the Secretary use?

    The Secretary uses the following criteria to evaluate an 
application:
    (a) Plan of operation. (30 points) The Secretary reviews each 
application to determine the quality of the plan of operation for the 
project, including--
    (1) The extent to which the project includes specific intended 
outcomes that--
    (i) Will accomplish the purpose of the program to provide increased 
client choice in the rehabilitation process, including at a minimum 
increased choice in the selection of goals, services, and providers, 
leading to an employment outcome;
    (ii) Are attainable within the project period, given the project's 
budget and other resources;
    (iii) Are objective and measurable for purposes of evaluation, 
including an estimate of the numbers of clients to be served;
    (iv) Include objectives to be met during each budget period that can 
be used to determine the progress of the project toward meeting its 
intended outcomes;
    (2) The extent to which the plan of operation specifies the 
methodology for accomplishing each objective of the project;
    (3) The extent to which the applicant's plan of management, 
including resources and timelines, is designed to achieve each objective 
and intended outcome during the period of Federal funding;
    (4) The extent to which the applicant's plan identifies the numbers 
of eligible clients by type of disability and the number of eligible 
clients with severe disabilities who are available to participate in the 
project;
    (5) The extent to which the applicant plans to conduct outreach 
activities to obtain eligible clients;
    (6) The extent to which the applicant's plan ensures that clients 
who are otherwise eligible to participate are selected without regard to 
race, color, national origin, gender, or age;
    (7) The extent to which the applicant's plan describes a workable 
process for determining the monetary value of any service or product 
offered to eligible clients, including, if appropriate, the value of 
vouchers; and
    (8) The extent to which the applicant's plan describes a 
satisfactory system for conducting vocational assessment with eligible 
clients to ensure that a full range of vocational goals are considered.
    (b) Key personnel and other resources. (15 points) (1) The Secretary 
reviews each application to determine the quality of key personnel 
proposed for the project, including--
    (i) The relevant experience and training of the project director;
    (ii) The relevant experience and training of each of the other key 
personnel to be used on the project;
    (iii) The amount of time that each person referred to in paragraphs 
(b)(1)(i) and (ii) of this section will commit to the project;
    (iv) The extent to which persons referred to in paragraphs (b)(1)(i) 
and (ii) of this section are capable of providing technical assistance 
to other entities interested in replicating the project; and
    (v) The extent to which the applicant will ensure that persons 
employed through the project are selected and work without regard to 
race, color, national origin, gender, age, or disabling condition.
    (2) The Secretary reviews each application to determine the adequacy 
of the resources the applicant plans to devote to the project, 
including--
    (i) The facilities that the applicant plans to use;
    (ii) The equipment and supplies that the applicant plans to use; and
    (iii) The recordkeeping capabilities of the applicant for financial 
and evaluation purposes.
    (c) Service provision. (20 points) The Secretary reviews each 
application to determine the quality and comprehensiveness of the 
services to be offered and the applicant's capacity to provide increased 
choice in the provision of services to eligible clients, including the 
extent to which the applicant--

[[Page 448]]

    (1) Has the capacity to evaluate the eligibility of applicants for 
services and to develop written plans for services for individual 
clients;
    (2) Has demonstrated knowledge of a wide range of potential service 
providers that can meet the needs of eligible clients;
    (3) Has described a workable process for enabling eligible clients 
to choose from among a wide range of service providers;
    (4) Has described satisfactory systems to account for the 
appropriate expenditure of funds; and
    (5) Has described satisfactory systems to ensure the provision of 
quality services.
    (d) Evaluation plan. (10 points) The Secretary reviews each 
application to determine the quality of the evaluation plan for the 
project, including the extent to which the applicant's methods of 
evaluation--
    (1) Are appropriate to the project;
    (2) Will determine how successful the project is in meeting its 
intended outcomes; and
    (3) Are objective and produce data that are quantifiable, including 
data that are required under Sec. 377.30.
    (e) National significance. (15 points) The Secretary reviews each 
application to determine the extent to which--
    (1) Project findings might be effectively used within the State 
vocational rehabilitation service system; and
    (2) Project activities might be successfully replicated by other 
entities.
    (f) Budget and cost effectiveness. (10 points) The Secretary reviews 
each application to determine the extent to which--
    (1) The budget for the project is adequate to support the project 
activities;
    (2) Costs are reasonable in relation to the objectives of the 
project.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sec. 802(g)(3) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g)(3))



Sec. 377.22  What additional factors does the Secretary consider in
making grants?

    In addition to the criteria in Sec. 377.21, the Secretary considers 
the following factors in making grants under this program:
    (a) The diversity of strategies to increase client choice, in order 
to ensure that a variety of approaches are demonstrated by funded 
projects.
    (b) The diversity of clients to be served, in order to ensure that a 
variety of disability populations are served by funded projects.
    (c) The geographical distribution of funded projects.

(Authority: Sec. 802(g)(4) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g)(4))



     Subpart D_What Post-Award Conditions Must Be Met by a Grantee?



Sec. 377.30  What information must a grantee maintain and provide to 
the Secretary?

    (a) Each grantee shall maintain the records that the Secretary 
requires to conduct an evaluation of projects funded under this program, 
which at a minimum must include information regarding the--
    (1) Types of services provided;
    (2) Costs of services provided;
    (3) Number of clients served by disability, race, gender, and age;
    (4) Number of clients with a severe disability served;
    (5) Client outcomes obtained;
    (6) Implementation issues addressed; and
    (7) Any other information the Secretary requires.
    (b) Each grantee shall comply with any request from the Secretary 
for those records.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Secs. 802(g)(5) and 802(g)(7) of the Rehabilitation Act of 
1973; 29 U.S.C. 797a(g) (5) and (7))



Sec. 377.31  What information must a grantee provide to eligible clients?

    Each grantee shall advise all clients and applicants for services 
under this program, or their parents, family members, guardians, 
advocates, or authorized representatives, of the availability and 
purposes of the Client Assistance Program under section 112 of the Act,

[[Page 449]]

including information on means of seeking assistance under that program.

(Authority: Sec. 20 of the Rehabilitation Act of 1973; 29 U.S.C 718a)



Sec. 377.32  What are the matching requirements?

    Grants may be made for paying all or part of the costs of projects 
under this program. If part of the costs is to be covered by the 
grantee, the amount of grantee contribution is specified in the 
application notice and will not be required to be more than 10 percent 
of the total cost of the project.

(Authority: Sec. 802(g)(1) of the Rehabilitation Act of 1973; 29 U.S.C. 
797a(g)(1))



PART 379_PROJECTS WITH INDUSTRY--Table of Contents



                            Subpart A_General

Sec.
379.1 What is the Projects With Industry (PWI) program?
379.2 Who is eligible for a grant award under this program?
379.3 Who is eligible for services under this program?
379.4 What regulations apply?
379.5 What definitions apply?

  Subpart B_What Kinds of Activities Does the Department of Education 
                       Assist Under This Program?

379.10 What types of project activities are required of each grantee 
          under this program?
379.11 What additional types of project activities may be authorized 
          under this program?

               Subpart C_How Does One Apply for an Award?

379.20 How does an eligible entity apply for an award?
379.21 What is the content of an application for an award?
379.22 What are the application procedures for this program?

             Subpart D_How Does the Secretary Make a Grant?

379.30 What selection criteria does the Secretary use under this 
          program?
379.31 What other factors does the Secretary consider in reviewing an 
          application?

           Subpart E_What Conditions Must Be Met by a Grantee?

379.40 What are the matching requirements?
379.41 What are allowable costs?
379.42 What are the special requirements pertaining to the Client 
          Assistance Program?
379.43 What are the special requirements pertaining to the protection, 
          use, and release of personal information?
379.44 What are the requirements for a continuation award?
379.45 What are the additional reporting requirements?

Subpart F_What Compliance Indicator Requirements Must a Grantee Meet To 
                      Receive Continuation Funding?

379.50 What are the requirements for continuation funding?
379.51 What are the program compliance indicators?
379.52 How is grantee performance measured using the compliance 
          indicators?
379.53 What are the minimum performance levels for each compliance 
          indicator?
379.54 What are the reporting requirements for the compliance 
          indicators?

Appendix A to Part 379--Evaluation Standards
Appendix B to Part 379--Presumption of Eligibility
Appendix C to Part 379--Calculating Required Matching Amount

    Authority: 29 U.S.C. 711(c) and 795, unless otherwise noted.

    Source: 64 FR 48053, Sept. 1, 1999, unless otherwise noted.



                            Subpart A_General



Sec. 379.1  What is the Projects With Industry (PWI) program?

    The purpose of this program is to
    (a) Create and expand job and career opportunities for individuals 
with disabilities in the competitive labor market by engaging the talent 
and leadership of private industry as partners in the rehabilitation 
process;
    (b) Identify competitive job and career opportunities and the skills 
needed to perform these jobs;
    (c) Create practical settings for job readiness and job training 
programs; and
    (d) Provide job placements and career advancement.

(Authority: 29 U.S.C. 795(a)(1))

[[Page 450]]



Sec. 379.2  Who is eligible for a grant award under this program?

    (a) The Secretary may, in consultation with the Secretary of Labor 
and with the appropriate designated State unit or units, make a grant 
under this program to any--
    (1) Community rehabilitation program provider;
    (2) Designated State unit (DSU);
    (3) Employer;
    (4) Indian tribe or tribal organization;
    (5) Labor union;
    (6) Nonprofit agency or organization;
    (7) Trade association; or
    (8) Other agency or organization with the capacity to create and 
expand job and career opportunities for individuals with disabilities.
    (b) The Secretary may make new awards only to those eligible 
entities identified in paragraph (a) of this section that propose to 
serve individuals with disabilities in States, portions of States, 
Indian tribes, or tribal organizations that are currently unserved or 
underserved by the PWI program.

(Authority: 29 U.S.C. 795(a)(2) and 795(e)(2))



Sec. 379.3  Who is eligible for services under this program?

    (a) An individual is eligible for services under this program if--
    (1) The individual is an individual with a disability or an 
individual with a significant disability;
    (2) The individual requires vocational services to prepare for, 
secure, retain, or regain employment; and
    (3) The determination of eligibility is consistent with section 
102(a) of the Rehabilitation Act of 1973, as amended (Act), 29 U.S.C. 
701-796l.
    (b) The recipient of the grant under which the services are provided 
may determine an individual's eligibility for services under this 
program, to the extent that the determination is appropriate and 
consistent with the requirements of section 102(a) of the Act. See 
Appendix B to this part for further information.
    (c) Except as provided in paragraph (d) of this section, an 
individual who has a disability or is blind, as determined pursuant to 
title II or title XVI of the Social Security Act (42 U.S.C. 401-433 and 
1381-1385)--
    (1) Is considered to be an individual with a significant disability; 
and
    (2) Is presumed to be eligible for vocational rehabilitation (VR) 
services under this program (provided that the individual intends to 
achieve an employment outcome consistent with the unique strengths, 
resources, priorities, concerns, abilities, capabilities, interests, and 
informed choice of the individual).
    (d) The DSU or recipient of the grant involved may deny an 
individual services if the DSU or recipient of the grant involved can 
demonstrate, by clear and convincing evidence, that the individual is 
incapable of benefiting in terms of an employment outcome from VR 
services due to the significance of the disability of the individual.

(Authority: 29 U.S.C. 722(a)(3) and 795(a)(3))



Sec. 379.4  What regulations apply?

    The following regulations apply to the Projects With Industry 
program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants and Agreements with 
Institutions of Higher Education, Hospitals, and Other Non-profit 
Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug and Alcohol Abuse Prevention).
    (b) The regulations in this part 379.

(Authority: 29 U.S.C. 711(c) and 795)

[[Page 451]]



Sec. 379.5  What definitions apply?

    (a) The following terms used in this part are defined in 34 CFR part 
361:

Act
Community rehabilitation program
Designated State unit
Individual who is blind
Individual with a disability
Individual with a significant disability
Physical or mental impairment
Substantial impediment to employment

    (b) The following definitions also apply to this part:
    (1) Career advancement services mean services that develop specific 
job skills beyond those required by the position currently held by an 
individual with a disability to assist the individual to compete for a 
promotion or achieve an advanced position.
    (2) Competitive employment, as the placement outcome under this 
program, means work--
    (i) In the competitive labor market that is performed on a full-time 
or part-time basis in an integrated setting; and
    (ii) For which an individual is compensated at or above the minimum 
wage, but not less than the customary or usual wage and terms and 
benefits provided by the employer for the same or similar work performed 
by individuals who are not disabled.
    (3) Integrated setting, as part of the definition of ``competitive 
employment,'' means a setting typically found in the community in which 
individuals with disabilities interact with non-disabled individuals, 
other than non-disabled individuals who are providing services to them, 
to the same extent that non-disabled individuals in comparable positions 
interact with other persons.
    (4) Job readiness training, as used in Sec. 379.41(a), means--
    (i) Training in job-seeking skills;
    (ii) Training in the preparation of resumes or job applications;
    (iii) Training in interviewing skills;
    (iv) Participating in a job club; or
    (v) Other related activities that may assist an individual to secure 
competitive employment.
    (5) Job training, as used in this part, means one or more of the 
following training activities provided prior to placement, as that term 
is defined in Sec. 379.5(b)(7):
    (i) Occupational skills training.
    (ii) On-the-job training.
    (iii) Workplace training combined with related instruction.
    (iv) Job skill upgrading and retraining.
    (v) Training to enhance basic work skills and workplace 
competencies.
    (vi) On-site job coaching.
    (6) Person served means an individual for whom services by a PWI 
project have been initiated with the objective that those services will 
result in a placement in competitive employment.
    (7) Placement means the attainment of competitive employment by a 
person who has received services from a PWI project and has maintained 
employment for a period of at least 90 days.

(Authority: 29 U.S.C. 711(c) and 795)



  Subpart B_What Kinds of Activities Does the Department of Education 
                       Assist Under This Program?



Sec. 379.10  What types of project activities are required of each 
grantee under this program?

    Each grantee under the PWI program must--
    (a) Provide for the establishment of a Business Advisory Council 
(BAC), comprised of representatives of private industry, business 
concerns, organized labor, individuals with disabilities and their 
representatives, and a representative of the appropriate DSU, that 
will--
    (1) Identify job and career availability within the community, 
consistent with the current and projected local employment opportunities 
identified by the local workforce investment board for the community 
under section 118(b)(1)(B) of the Workforce Investment Act of 1998;
    (2) Identify the skills necessary to perform those jobs and careers; 
and
    (3) Prescribe for individuals with disabilities in fields related to 
the job and career availability identified in Sec. 379.10(a)(1) 
either--
    (i) training programs designed to develop appropriate job and career 
skills; or

[[Page 452]]

    (ii) job placement programs designed to identify and develop job 
placement and career advancement opportunities;
    (b) Provide job development, job placement, and career advancement 
services;
    (c) To the extent appropriate, arrange for the provision of, or 
provide for--
    (1) Training in realistic work settings to prepare individuals with 
disabilities for employment and career advancement in the competitive 
labor market; and
    (2) To the extent practicable, the modification of any facilities or 
equipment of the employer involved that are to be used by individuals 
with disabilities under this program. However, a project may not be 
required to provide for this modification if the modification is 
required as a reasonable accommodation under the Americans with 
Disabilities Act of 1990 (ADA), 42 U.S.C. 12101-12213; and
    (d) Provide individuals with disabilities with supportive services 
that are necessary to permit them to maintain the employment and career 
advancement for which they have received training under this program.

(Authority: 29 U.S.C. 795)



Sec. 379.11  What additional types of project activities may be 
authorized under this program?

    The Secretary may include, as part of agreements with grant 
recipients under this program, authority for the grant recipients to 
provide technical assistance to--
    (a) Assist employers in hiring individuals with disabilities; or
    (b) Improve or develop relationships between grant recipients or 
prospective grant recipients and employers or organized labor; or
    (c) Assist employers in understanding and meeting the requirements 
of the ADA, as that Act relates to employment of individuals with 
disabilities.

(Authority: 29 U.S.C. 795)



               Subpart C_How Does One Apply for an Award?



Sec. 379.20  How does an eligible entity apply for an award?

    To apply for a grant, an eligible entity must submit an application 
to the Secretary in response to an application notice published in the 
Federal Register.

(Approved by the Office of Management and Budget under control number 
1820-0566)

(Authority: 29 U.S.C. 795(e)(1)(B))



Sec. 379.21  What is the content of an application for an award?

    (a) The grant application must include a description of--
    (1) The responsibilities and membership of the BAC, consistent with 
section 611(a)(2)(A) of the Act, and how it will interact with the 
project in carrying out grant activities, including how the BAC will--
    (i) Identify job and career availability within the community, 
consistent with the current and projected local employment opportunities 
identified by the local workforce investment board for the community 
under section 118(b)(1)(B) of the Workforce Investment Act of 1998;
    (ii) Identify the skills necessary to perform the jobs and careers 
identified; and
    (iii) For individuals with disabilities in fields related to the job 
and career availability identified under paragraph (a)(1)(i) of this 
section, prescribe either--
    (A) Training programs designed to develop appropriate job and career 
skills; or
    (B) Job placement programs designed to identify and develop job 
placement and career advancement opportunities;
    (2) How the project will provide job development, job placement, and 
career advancement services to project participants;
    (3) To the extent appropriate, how the project will provide for--
    (i) Training in realistic work settings to prepare individuals with 
disabilities for employment and career advancement in the competitive 
market; and

[[Page 453]]

    (ii) To the extent practicable, the modification of any facilities 
or equipment of the employer involved that are used primarily by 
individuals with disabilities, except that a project will not be 
required to provide for that modification if the modification is 
required as a reasonable accommodation under the Americans with 
Disabilities Act of 1990;
    (4) How the project will provide individuals with disabilities with 
support services that may be required to maintain the employment and 
career advancement for which the individuals have received training 
under this part;
    (5) How the project will involve private industry in the design of 
the proposed project and the manner in which the project will 
collaborate with private industry in planning, implementing, and 
evaluating job development, job placement, career advancement 
activities, and, to the extent included as part of the activities to be 
carried out by the project, job training activities;
    (6) A plan to annually conduct a review and evaluation of the 
operation of the proposed project in accordance with the program 
compliance indicators and evaluation standards in Subpart F of this part 
and, in conducting the review and evaluation, to collect data and 
information of the type described in subparagraphs (A) through (C) of 
section 101(a)(10) of the Act, as determined to be appropriate by the 
Secretary;
    (7) The factors that justify the applicant's projected average cost 
per placement, including factors such as the project's objectives, types 
of services, target population, and service area, and how these factors 
affect the projection;
    (8) The geographic area to be served by the project, including an 
explanation of how the area is currently unserved or underserved by the 
PWI program; and
    (9) How the project will address the needs of individuals with 
disabilities from minority backgrounds, as required by section 21(c) of 
the Act.
    (b) The grant application also must include assurances from the 
applicant that--
    (1) The project will carry out all activities required in Sec. 
379.10;
    (2) Individuals with disabilities who are placed by the project will 
receive compensation at or above the minimum wage, but not less than the 
customary or usual wage paid by the employer for the same or similar 
work performed by individuals who are not disabled;
    (3) Individuals with disabilities who are placed by the project 
will--
    (i) Be given terms and benefits of employment equal to terms and 
benefits that are given to similarly situated nondisabled co-workers; 
and
    (ii) Not be segregated from their co-workers;
    (4) The project will maintain any records required by the Secretary 
and make those records available for monitoring and audit purposes;
    (5) The project will provide to the Secretary an annual evaluation 
report of project operations as required in Sec. 379.21(a)(6) and will 
submit reports in the form and detail and at the time required by the 
Secretary; and
    (6) The applicant will comply with any requirements necessary to 
ensure the correctness and verification of those reports.
    (c) The grant application also must include the projected average 
cost per placement for the project, which must be calculated by dividing 
the sum of the total project costs (i.e., Federal dollar amount of the 
grant plus the total non-Federal contributions) by the number of 
individuals the applicant projects in its application will be placed by 
the project.

(Approved by the Office of Management and Budget under control number 
1820-0631)

(Authority: Section 611 of the Act; 29 U.S.C. 795)

[65 FR 18218, Apr. 6, 2000; 65 FR 36633, June 9, 2000]



Sec. 379.22  What are the application procedures for this program?

    The Secretary gives the appropriate DSU an opportunity to review and 
comment on applications submitted from within the State that it serves. 
The procedures to be followed by the

[[Page 454]]

applicant and the State are described in Sec. Sec. 75.155 through 
75.159 of EDGAR.

(Authority: 20 U.S.C. 711(c))



             Subpart D_How Does the Secretary Make a Grant?



Sec. 379.30  What selection criteria does the Secretary use under this 
program?

    (a) The Secretary uses the procedures in 34 CFR part 75 to select 
applications and award new grants.
    (b) The Secretary uses the following selection criteria to evaluate 
an application:
    (1) Extent of need for project (20 points). The Secretary reviews 
each application to determine the extent to which the project meets 
demonstrated needs. The Secretary looks for evidence that--
    (i) The applicant has demonstrated a demand in the competitive labor 
market of the geographic area to be served for the types of jobs for 
which project participants will be placed and, if appropriate, trained.
    (A) The applicant may demonstrate the demand for those jobs by 
describing an existing current labor market analysis, other needs 
assessment, or one that it has performed in collaboration with private 
industry.
    (B) The labor market analysis or needs assessment must be consistent 
with the current and projected local employment opportunities identified 
by the local workforce investment board for the community under section 
118(b)(1)(B) of the Workforce Investment Act of 1998; and
    (ii) The job placement and, if appropriate, job training to be 
provided meets the identified needs for personnel in specific 
occupations or occupational categories in the geographic area to be 
served.
    (2) Partnership with industry (25 points). The Secretary looks for 
information that demonstrates--
    (i) The extent of the project's proposed collaboration with private 
industry in the planning, implementation, and evaluation of job 
development, job placement, career advancement activities, and, to the 
extent included as part of the activities to be carried out by the 
project, job training activities; and
    (ii) The extent of proposed participation of the BAC in--
    (A) The identification of job and career opportunities within the 
community, consistent with the current and projected local employment 
opportunities identified by the local workforce investment board for the 
community under section 118(b)(1)(B) of the Workforce Investment Act of 
1998;
    (B) The identification of the skills necessary to perform the jobs 
and careers identified; and
    (C) For individuals with disabilities in fields related to the job 
and career availability identified under paragraph (b)(1)(i) of this 
section, prescribing either--
    (1) Training programs designed to develop appropriate job and career 
skills; or
    (2) Job placement programs designed to identify and develop job 
placement and career advancement opportunities.
    (3) Project design and plan of operation for achieving competitive 
employment (25 points). The Secretary reviews each application to 
determine--
    (i) The extent to which the project goals and objectives for 
achieving competitive employment for individuals with disabilities to be 
served by the project are clearly stated and meet the needs identified 
by the applicant and the purposes of the program;
    (ii) The extent to which the project provides for all services and 
activities required under Sec. 379.10;
    (iii) The feasibility of proposed strategies and methods for 
achieving project goals and objectives for competitive employment for 
project participants;
    (iv) The extent to which project activities will be coordinated with 
the DSU and with other appropriate community resources to ensure an 
adequate number of referrals and a maximum use of comparable benefits 
and services;
    (v) The extent to which the applicant's management plan will ensure 
proper and efficient administration of the project; and
    (vi) Whether the applicant has proposed a realistic timeline for the 
implementation of project activities to ensure timely accomplishment of 
proposed goals and objectives to achieve

[[Page 455]]

competitive employment for individuals with disabilities to be served by 
the project.
    (4) Adequacy of resources and quality of key personnel (10 points). 
The Secretary reviews each application to determine--
    (i) The adequacy of the resources (including facilities, equipment, 
and supplies) that the applicant plans to devote to the project;
    (ii) The quality of key personnel who will be involved in the 
project, including--
    (A) The qualifications of the project director;
    (B) The qualifications of each of the other key personnel to be used 
in the project; and
    (C) The experience and training of key personnel in fields related 
to the objectives and activities of the project; and
    (D) The way the applicant plans to use its resources and personnel 
to achieve the project's goals and objectives, including the time that 
key personnel will commit to the project.
    (5) Budget and cost effectiveness (10 points). The Secretary reviews 
each application to determine the extent to which--
    (i) The budget is adequate to support the project; and
    (ii) Costs are reasonable in relation to the objectives of the 
project.
    (6) Project evaluation (10 points). The Secretary reviews each 
application to determine the quality of the proposed evaluation plan 
with respect to--
    (i) Evaluating project operations and outcomes;
    (ii) Involving the BAC in evaluating the project's job development, 
job placement, career advancement activities, and, to the extent 
included as part of the activities to be carried out by the project, job 
training activities;
    (iii) Meeting the annual evaluation reporting requirements in Sec. 
379.21(a)(6);
    (iv) Determining compliance with the indicators; and
    (v) Addressing any deficiencies identified through project 
evaluation.

(Approved by the Office of Management and Budget under control number 
1820-0566)

(Authority: 29 U.S.C. 711(c) and 795)



Sec. 379.31  What other factors does the Secretary consider in 
reviewing an application?

    In addition to the selection criteria in Sec. 379.30, the 
Secretary, in making awards under this program, considers--
    (a) The equitable distribution of projects among the States; and
    (b) The past performance of the applicant in carrying out a similar 
PWI project under previously awarded grants, as indicated by factors 
such as compliance with grant conditions, soundness of programmatic and 
financial management practices, and meeting the requirements of Subpart 
F of this part.

(Authority: 29 U.S.C. 795(e)(2) and 795(f)(4))



           Subpart E_What Conditions Must Be Met by a Grantee?



Sec. 379.40  What are the matching requirements?

    The Federal share may not be more than 80 percent of the total cost 
of a project under this program. For assistance in calculating the 
required matching amount, see appendix C to this part.

(Authority: 29 U.S.C. 795(c))



Sec. 379.41  What are allowable costs?

    In addition to those costs that are allowable in accordance with 34 
CFR 74.27 and 34 CFR 80.22, the following items are allowable costs 
under this program:
    (a) The costs of job readiness training, as defined in Sec. 
379.5(b)(5); job training, as defined in Sec. 379.5(b)(6); job 
placement services; job development and modification; and related 
support services.
    (b) Instruction and supervision of trainees.
    (c) Training materials and supplies, including consumable materials.
    (d) Instructional aids.
    (e) The purchase or modification of rehabilitation technology to 
meet the needs of individuals with disabilities.
    (f) Alteration and renovation appropriate and necessary to ensure 
access to and use of buildings by individuals with disabilities served 
by the project.

[[Page 456]]

    (g) To the extent practicable, the modification of any facilities or 
equipment of the employer involved that are to be used by individuals 
with disabilities under this program. However, a project may not be 
required to provide for that modification if the modification is 
required as a reasonable accommodation under the ADA.

(Authority: 29 U.S.C. 711(c) and 795)



Sec. 379.42  What are the special requirements pertaining to the 
Client Assistance Program?

    Each grantee under a program covered by this part must advise 
applicants for or recipients of services under its project, or as 
appropriate, the parents, family members, guardians, advocates, or 
authorized representatives of those individuals, of the availability and 
purposes of the State's Client Assistance Program, including information 
on seeking assistance from that program.

(Authority: 29 U.S.C. 718a)



Sec. 379.43  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) All personal information about individuals served by any project 
under this part, including lists of names, addresses, photographs, and 
records of evaluation, must be held confidential.
    (b) The use of information and records concerning individuals must 
be limited only to purposes directly connected with the project, 
including project evaluation activities.
    (c) This information may not be disclosed, directly or indirectly, 
other than in the administration of the project, unless the consent of 
the agency providing the information and the individual to whom the 
information applies, or his or her representative, have been obtained in 
writing.
    (d) The Secretary or other Federal or State officials responsible 
for enforcing legal requirements have access to this information without 
the written consent of the individual.
    (e) The final product of the project may not reveal any personally 
identifying information without the written consent of the individual or 
his or her representative.

(Authority: 29 U.S.C. 711(c))



Sec. 379.44  What are the requirements for a continuation award?

    (a) A grantee that wants to receive a continuation award must--
    (1) Comply with the provisions of 34 CFR 75.253(a), including making 
substantial progress toward meeting the objectives in its approved 
application and submitting all performance and financial reports 
required by 34 CFR 75.118; and
    (2) Submit data in accordance with Sec. 379.54 showing that it has 
met the program compliance indicators established in Subpart F of this 
part.
    (b) In addition to the requirements in paragraph (a) of this 
section, the following other conditions in 34 CFR 75.253(a) must be met 
before the Secretary makes a continuation award:
    (1) Congress must appropriate sufficient funds under the program.
    (2) Continuation of the project must be in the best interest of the 
Federal Government.

(Approved by the Office of Management and Budget under control number 
1820-0566)

(Authority: 29 U.S.C. 711(c) and 795(f)(4))



Sec. 379.45  What are the additional reporting requirements?

    Each grantee must submit the data from its annual evaluation of 
project operations required under Sec. 379.21(a)(5) no later than 60 
days after the end of each project year, unless the Secretary authorizes 
a later submission date.

(Approved by the Office of Management and Budget under control number 
1820-0566)

(Authority: 29 U.S.C. 711(c) and 795)



Subpart F_What Compliance Indicator Requirements Must a Grantee Meet To 
                      Receive Continuation Funding?

    Source: 65 FR 18219, Apr. 6, 2000, unless otherwise noted.

[[Page 457]]



Sec. 379.50  What are the requirements for continuation funding?

    To receive a continuation award for the third or subsequent year of 
the PWI grant, a grantee must--
    (a) Adhere to the provisions of its approved application; and
    (b) Meet the minimum performance levels on--
    (1) The two ``primary'' program compliance indicators identified in 
Sec. 379.51(b) and described in Sec. 379.53(a); and
    (2) Any two of the three ``secondary'' compliance indicators 
identified in Sec. 379.51(c) and described in Sec. 379.53(b).

(Authority: Section 611(f)(4) of the Act; 29 U.S.C. 795(f)(4))



Sec. 379.51  What are the program compliance indicators?

    (a) General. The program compliance indicators implement program 
evaluation standards, which are contained in an appendix to this part, 
by establishing minimum performance levels in essential project areas to 
measure the effectiveness of individual grantees.
    (b) Primary compliance indicators. ``Placement rate'' and ``Change 
in earnings'' are ``primary'' compliance indicators.
    (c) Secondary compliance indicators. ``Percent placed who have 
significant disabilities,'' ``Percent placed who were previously 
unemployed,'' and ``Average cost per placement'' are ``secondary'' 
compliance indicators.

(Authority: Sections 611(d)(1) and 611(f)(1) of the Act; 29 U.S.C. 
795(d)(1) and 795(f)(1))



Sec. 379.52  How is grantee performance measured using the compliance
indicators?

    (a) Each compliance indicator establishes a minimum performance 
level.
    (b) If a grantee does not achieve the minimum performance level for 
a compliance indicator, the grantee does not pass the compliance 
indicator.

(Authority: Section 611(f)(1) of the Act; 26 U.S.C. 795(f)(1))



Sec. 379.53  What are the minimum performance levels for each 
compliance indicator?

    (a) Primary compliance indicators--(1) Placement rate. The project 
places individuals it serves into competitive employment as follows:
    (i) No less than 50 percent during fiscal year (FY) 2001.
    (ii) No less than 51 percent during FY 2002.
    (iii) No less than 52 percent during FY 2003.
    (iv) No less than 54 percent during FY 2004.
    (v) No less than 55 percent during FY 2005 and any year thereafter.
    (2) Change in earnings. (i) Except as provided in paragraph 
(a)(2)(ii) of this section, the average earnings of all individuals who 
are placed into competitive employment by the project increase by an 
average of at least $125.00 a week over the average earnings of all 
individuals at the time of project entry.
    (ii) For projects in which at least 75 percent of individuals placed 
into competitive employment are working fewer than 30 hours per week, 
the average earnings of all individuals placed by the project increase 
by an average of at least $100.00 a week over the average earnings of 
all individuals at the time of project entry.
    (b) Secondary compliance indicators--(1) Percent placed who have 
significant disabilities. At least 50 percent of individuals who are 
placed into competitive employment are individuals with significant 
disabilities.
    (2) Percent placed who were previously unemployed. At least 50 
percent of individuals who are placed into competitive employment are 
individuals who were continuously unemployed for at least 6 months at 
the time of project entry.
    (3) Average cost per placement. The actual average cost per 
placement does not exceed 115 percent of the projected average cost per 
placement in the grantee's application.

(Authority: Section 611(f)(1) of the Act; 29 U.S.C. 795(f)(1))



Sec. 379.54  What are the reporting requirements for the compliance 
indicators?

    (a) To receive continuation funding for the third or any subsequent 
year of a PWI grant, each grantee must submit to the Secretary data for 
the most recent complete budget period no later

[[Page 458]]

than 60 days after the end of that budget period, unless the Secretary 
authorizes a later submission date. The Secretary uses this data to 
determine if the grantee has met the program compliance indicators in 
this subpart F.
    (b) A grantee may receive its second year of funding (or the first 
continuation award) under this program before data from the first 
complete budget period is available. However, to allow the Secretary to 
determine whether the grantee is eligible for the third year of funding 
(or the second continuation award), the grantee must submit data from 
the first budget period in accordance with paragraph (a) of this 
section.
    (c) If the data for the most recent complete budget period provided 
under paragraph (a) or (b) of this section show that a grantee has 
failed to achieve the minimum performance levels, as required by Sec. 
379.50(b), the grantee may, at its option, submit data from the first 6 
months of the current budget period. The grantee must submit this data 
no later than 60 days after the end of that 6-month period, unless the 
Secretary authorizes a later submission date. The data must demonstrate 
that the grantee's project performance has improved sufficiently to meet 
the minimum performance levels required in Sec. 379.50(b).

(Approved by the Office of Management and Budget under control number 
1820-0631)

(Authority: Section 611(f)(2) and 611(f)(4) of the Act; 29 U.S.C. 
795(f)(2) and 795(f)(4))



            Sec. Appendix A to Part 379--Evaluation Standards

    Standard 1: The primary objective of the project must be to assist 
individuals with disabilities to obtain competitive employment. The 
activities carried out by the project must support the accomplishment of 
this objective.
    Standard 2: The project must serve individuals with disabilities 
that impair their capacity to obtain competitive employment. In 
selecting persons to receive services, priority must be given to 
individuals with significant disabilities.
    Standard 3: The project must ensure the provision of services that 
will assist in the placement of individuals with disabilities.
    Standard 4: Funds must be used to achieve the project's primary 
objective at minimum cost to the Federal Government.
    Standard 5: The project's advisory council must provide policy 
guidance and assistance in the conduct of the project.
    Standard 6: Working relationships, including partnerships, must be 
established with agencies and organizations to expand the project's 
capacity to meet its objectives.
    Standard 7: The project must obtain positive results in assisting 
individuals with disabilities to obtain competitive employment.



         Sec. Appendix B to Part 379--Presumption of Eligibility

    If a DSU determines that an individual is an eligible individual 
under section 102(a) of the Act, including that the individual meets the 
definition of an ``individual with a significant disability,'' and 
refers the individual to a PWI project, the PWI grantee may initiate 
services to that individual without the need for an additional 
determination of eligibility. In these instances, the PWI grantee should 
obtain appropriate documentation of this determination from the DSU.



    Sec. Appendix C to Part 379--Calculating Required Matching Amount

    1. The method for calculating the required matching amount may be 
stated by the following formula:

X = (Y / .8) - Y
X = Required Match (provided in cash or through third party in-kind 
          contributions)
Y = Amount of Federal Funds

    This equation holds true regardless of the total cost of the 
project. The amount of Federal funds spent in a fiscal year (FY) can 
never be more than 80 percent (hence, the ``.8'' in the formula) of the 
total funds (Federal and non-Federal) spent by the project. Thus, the 
formula is not dependent on knowing the total cost of the project. One 
needs to know only that the Federal share can be no more than 80 percent 
of whatever the total costs may turn out to be. In all cases, the 
matching contribution is calculated by dividing the amount of the 
Federal grant award by 80 percent (.8) and subtracting from that result 
the amount of the Federal grant award.
    For example: If the amount of the Federal PWI grant award is 
$400,000, the amount of the required match is $100,000, calculated as 
follows:

 
                                                                                            (Am't. of Fed. Funds
    Required match      =    (Am't. of Fed. Funds in FY    /   Max. Fed. % of Total)   -           in FY)
 
X                       =   ($400,000...................   /   .8)                     -   400,000

[[Page 459]]

 
X                       =   $500,000-400,000............
X                       =   $100,000....................
 

    The matching contribution is never simply 20 percent of the amount 
of the Federal grant award (i.e., in the above example, NOT 
.2x$400,000).
    2. Another consideration is what happens if a grantee carries over 
unspent Federal funds it received in a fiscal year. If the grantee 
spends or obligates less than the amount of its Federal grant award in a 
particular fiscal year and carries over the unspent or unobligated 
amount of its Federal grant award, its required matching contribution 
stays the same because the amount of its required matching expenditures 
or obligations is based on the amount of Federal dollars received in a 
particular fiscal year. That is, if the grantee carries over any unspent 
or unobligated Federal funds, the grantee must have spent or obligated 
the amount of non-Federal funds required for its matching contribution 
in the same fiscal year in which the Federal funds were received.
    For example: If a PWI grantee receives a grant award of $80,000 in 
FY 2000, its matching requirement for these funds is $20,000. If the 
grantee spends and obligates only $64,000 in FY 2000, it may ``carry 
over'' $16,000 to FY 2001. However, the grantee must spend or obligate 
$20,000 in non-Federal funds in FY 2000 to meet its matching 
requirements for the $80,000 it received in FY 2000, even though it does 
not spend or obligate the entire $80,000 in FY 2000. If the grantee 
fails to spend or obligate in FY 2000 the entire $20,000 in non-Federal 
funds, the grantee will fail to meet the matching requirement for the 
$80,000 it received in FY 2000 and may not carry over the unspent or 
unobligated $16,000 to FY 2001.
    3. The matching contribution also must comply with the requirements 
of 34 CFR 74.23 (for grantees that are institutions of higher education, 
hospitals, or other nonprofit organizations) or 34 CFR 80.24 (for 
grantees that are State, local, or Indian tribal governments). The term 
``third party in-kind contributions'' is defined in either 34 CFR 74.2 
or 34 CFR 80.3, as applicable to the type of grantee.



    PART 380_SPECIAL PROJECTS AND DEMONSTRATIONS FOR PROVIDING 
    SUPPORTED EMPLOYMENT SERVICES TO INDIVIDUALS WITH THE MOST 
    
    SEVERE DISABILITIES AND TECHNICAL ASSISTANCE PROJECTS--Table 
    of Contents



                            Subpart A_General

Sec.
380.1 What is the program of special projects and demonstrations for 
          providing supported employment services to individuals with 
          the most severe disabilities and technical assistance 
          projects?
380.2 Who is eligible for an award?
380.3 What types of projects are authorized?
380.4 What activities may the Secretary fund under Statewide supported 
          employment demonstration projects?
380.5 What activities may the Secretary fund under community-based 
          supported employment projects?
380.6 What activities may the Secretary fund under technical assistance 
          supported employment projects?
380.7 What priorities may the Secretary establish?
380.8 What regulations apply?
380.9 What definitions apply?

             Subpart B_How Does the Secretary Make an Award?

380.10 How does the Secretary evaluate an application?
380.14 What other factors does the Secretary consider in reviewing an 
          application?
380.15 What application requirement applies to this program?

     Subpart C_What Post-Award Conditions Must Be Met by a Grantee?

380.20 What requirements must a grantee meet before it provides for the 
          transition of an individual in supported employment?
380.21 What information requirement applies to this program?

    Authority: 29 U.S.C 711(c) and 777a(c), unless otherwise noted.

    Source: 54 FR 12400, Mar. 22, 1989, unless otherwise noted.

[[Page 460]]



                            Subpart A_General



Sec. 380.1  What is the program of special projects and demonstrations 
for providing supported employment services to individuals with the 

most severe disabilities and technical assistance projects?

    This program is designed to provide grants for special projects and 
demonstrations to expand or otherwise improve the provision of supported 
employment services to individuals with the most severe disabilities, 
including projects that demonstrate the effectiveness of natural 
supports or other alternative approaches for supporting and maintaining 
individuals in supported employment, and grants for technical assistance 
projects.

(Authority: 29 U.S.C. 777a(a)(1) and 777a(c))

[59 FR 8342, Feb. 18, 1994]



Sec. 380.2  Who is eligible for an award?

    (a) Applications for Statewide demonstration projects under Sec. 
380.4 may be submitted by public and nonprofit community rehabilitation 
programs, designated State units, and other public and private agencies 
and organizations.
    (b) Applications for community-based projects under Sec. 380.5 may 
be submitted by public and nonprofit community rehabilitation programs, 
designated State units, and other public and private agencies and 
organizations.
    (c) Applications for technical assistance projects under Sec. 380.6 
may be submitted by public agencies and nonprofit private organizations 
that have experience in training and provision of supported employment 
services.

(Authority: 29 U.S.C. 777a(c))

[54 FR 12400, Mar. 22, 1989, as amended at 59 FR 8342, Feb. 18, 1994]



Sec. 380.3  What types of projects are authorized?

    The following types of projects may be funded under this program:
    (a) Statewide demonstration projects as described in Sec. 380.4. 
The purpose of Statewide demonstration projects is to stimulate the 
development and provision of supported employment services on a 
statewide basis for individuals with the most severe disabilities.
    (b) Community-based projects as described in Sec. 380.5. The 
purposes of community-based projects are to stimulate the development of 
innovative approaches for improving and expanding the provision of 
supported employment services to individuals with the most severe 
disabilities, and to enhance local capacity to provide supported 
employment services.
    (c) Technical assistance projects as described in Sec. 380.6. The 
purpose of technical assistance projects is to provide technical 
assistance to States in implementing the State Supported Employment 
Services Program under 34 CFR part 363.

(Authority: 29 U.S.C. 777a(a)(1) and 777a(c))

[54 FR 12400, Mar. 22, 1989, as amended at 59 FR 8342, Feb. 18, 1994]



Sec. 380.4  What activities may the Secretary fund under Statewide 
supported employment demonstration projects?

    (a) Authorized activities. The Following activities are authorized 
under Statewide Supported Employment demonstration projects:
    (1) Program development, including program start-up costs, for new 
or existing community organizations and employers.
    (2) Staff training.
    (3) Program evaluation.
    (4) Reorganization, expansion, or, if appropriate, conversion of 
existing programs to provide supported employment services.
    (b) Restrictions on the use of funds. (1) Statewide Supported 
Employment demonstration project grants may not be used to provide 
supported employment services to individuals with the most severe 
disabilities.
    (2) A grantee must provide, or ensure the provision of, those direct 
services needed by individuals with the most severe disabilities in 
order for them to obtain and maintain employment from funds other than 
those made available under this part. These supported employment 
services include but are not limited to--
    (i) Job site training to prepare and enable individuals with the 
most severe disabilities to perform work and maintain the job;

[[Page 461]]

    (ii) Ongoing supervision of individuals with the most severe 
disabilities on the job;
    (iii) Ongoing behavior management; and
    (iv) Case management, including assistance to coordinate services 
from various sources.

(Authority: 29 U.S.C. 777a(a)(1) and 777a(c))

[54 FR 12400, Mar. 22, 1989, as amended at 59 FR 8342, Feb. 18, 1994]



Sec. 380.5  What activities may the Secretary fund under community-based
supported employment projects?

    (a) Authorized activities. The following activities are authorized 
under community-based projects:
    (1) Job search assistance.
    (2) Job development, including work site modification and use of 
advanced learning technology for skills training.
    (3) On-the-job training.
    (4) Job placement.
    (5) Application of rehabilitation technology in providing supported 
employment services.
    (6) Provision of supported employment services for individuals 
placed in employment.
    (7) Development of cooperative agreements with service providers for 
the provision of extended services.
    (b) Restrictions on the use of funds. The Secretary does not provide 
financial assistance under Community-Based Supported Employment projects 
for the provision of extended supported employment services.

(Authority: 29 U.S.C. 777a(c))

[54 FR 12400, Mar. 22, 1989, as amended at 57 FR 28441, June 24, 1992; 
59 FR 8342, Feb. 18, 1994]



Sec. 380.6  What activities may the Secretary fund under technical 
assistance supported employment projects?

    The following activities are authorized under technical assistance 
projects:
    (a) Staff training.
    (b) Development of and placement in jobs for individuals with the 
most severe disabilities.
    (c) Development of cooperative agreements with service providers for 
extended services.
    (d) Reorganization, expansion, or, if appropriate, conversion of 
existing programs to provide supported employment services.

(Authority: 29 U.S.C. 777a(c)(2))

[54 FR 12400, Mar. 22, 1989, as amended at 59 FR 8342, Feb. 18, 1994]



Sec. 380.7  What priorities may the Secretary establish?

    In any fiscal year, the Secretary may establish priorities for one 
or more of the types of projects described in Sec. 380.3 by publishing 
a notice in the Federal Register.

(Authority: 29 U.S.C. 777a(c)(2))



Sec. 380.8  What regulations apply?

    The following regulations apply to the Program of Special Projects 
and Demonstrations for Providing Supported Employment Services to 
Individuals with the Most Severe Disabilities and Technical Assistance 
Projects:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 380.

[[Page 462]]

    (c) The regulations in 34 CFR 369.46

(Authority: 29 U.S.C. 711(c) and 777a(c))

[54 FR 12400, Mar. 22, 1989, as amended at 55 FR 21714, May 25, 1990; 59 
FR 8342, Feb. 18, 1994]



Sec. 380.9  What definitions apply?

    (a) The following term used in this part is defined in 34 CFR part 
363: Supported employment.
    (b) The following terms used in this part are defined in 34 CFR part 
369:

Designated State unit
Community rehabilitation program
Individual with a severe disability

    (c) Other definitions. The following definitions also apply to this 
part:
    (1) As used in the definition of ``supported employment''--
    (i) Competitive employment means work--
    (A) In the competitive labor market that is performed on a full-time 
or part-time basis in an integrated setting; and
    (B) For which an individual is compensated at or above the minimum 
wage, but not less than the customary or usual wage paid by the employer 
for the same or similar work performed by individuals who are not 
disabled.
    (ii) Integrated setting means a setting typically found in the 
community in which an individual with the most severe disabilities 
interacts with non-disabled individuals, other than non-disabled 
individuals who are providing services to that individual, to the same 
extent that non-disabled individuals in comparable positions interact 
with other persons.
    (iii) Supported employment services means on-going support services 
provided by the grantee with funds under this part--
    (A) For a period not to exceed 18 months, unless under special 
circumstances a longer period to achieve job stabilization has been 
jointly agreed to by the individual and the rehabilitation counselor and 
established in the individual's program of services, before an 
individual with the most severe disabilities makes the transition to 
extended services; and
    (B) As discrete post-employment services following transition in 
accordance with 34 CFR 363.4(c)(3);
    (iv) Extended services means on-going support services and other 
appropriate services provided by a State agency, a private nonprofit 
organization, employer, or any other appropriate resource, from funds 
other than funds received under this part, part 361, part 363, or part 
376 after an individual with the most severe disabilities has made the 
transition from project support; and
    (v) Transitional employment means a series of temporary job 
placements in competitive work in an integrated work setting with on-
going support services for individuals with the most severe disabilities 
due to mental illness. In transitional employment, the provision of on-
going support services must include continuing sequential job placements 
until job permanency is achieved.
    (2) On-going support services means services that are--
    (i) Needed to support and maintain an individual with the most 
severe disabilities in supported employment;
    (ii) Based on a determination by the grantee of the individual's 
needs as specified in a program of services; and
    (iii) Furnished by the grantee from the time of job placement until 
transition to extended services, except as provided in 34 CFR 
363.4(c)(3) and, following transition, by one or more extended services 
providers throughout the individual's term of employment in a particular 
job placement or multiple placements if those placements are being 
provided under a program of transitional employment. On-going support 
services must include, at a minimum, twice-monthly monitoring at the 
work site of each individual in supported employment to assess 
employment stability, unless under special circumstances, especially at 
the request of the individual, the individual's program of services 
provides for off-site monitoring, and, based upon that assessment, the 
coordination or provision of specific services, at or away from the work 
site, that are needed to maintain employment stability. If off-site 
monitoring is determined to be appropriate, it must, at a minimum, 
consist of two meetings with the individual and one contact

[[Page 463]]

with the employer each month. On-going support services consist of--
    (A) Any particularized assessment needed to supplement the 
comprehensive assessment of rehabilitation needs;
    (B) The provision of skilled job trainers who accompany the 
individual for intensive job skill training at the work site;
    (C) Job development and placement;
    (D) Social skills training;
    (E) Regular observation or supervision of the individual;
    (F) Follow-up services such as regular contact with the employers, 
the individuals, the parents, family members, guardians, advocates or 
authorized representative of the individuals, and other suitable 
professional and informed advisors, in order to reinforce and stabilize 
the job placement;
    (G) Facilitation of natural supports at the worksite;
    (H) Any other service identified in the scope of rehabilitation 
services described in 34 CFR part 361; and
    (I) Any service similar to the foregoing services.

(Authority: 29 U.S.C. 777a(c))

[54 FR 12400, Mar. 22, 1989, as amended at 57 FR 28441, June 24, 1992; 
59 FR 8342, Feb. 18, 1994; 62 FR 6363, Feb. 11, 1997]



             Subpart B_How Does the Secretary Make an Award?



Sec. 380.10  How does the Secretary evaluate an application?

    The Secretary evaluates an application under the procedures in 34 
CFR part 75.

(Authority: 29 U.S.C. 777a(c))

[62 FR 10404, Mar. 6, 1997]



Sec. 380.14  What other factors does the Secretary consider in 
reviewing an application?

    In addition to the selection criteria used in accordance with the 
procedures in 34 CFR part 75, the Secretary, in making awards under this 
part, considers the geographical distribution of projects in each 
program category throughout the country.

(Authority: 29 U.S.C. 777a(a)(1) and 777a(c))

[62 FR 10404, Mar. 6, 1997]



Sec. 380.15  What application requirement applies to this program?

    Each applicant for a grant under this program must include in its 
application a description of the manner in which it will address the 
needs of individuals with the most severe disabilities from minority 
backgrounds.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 718b)

[59 FR 8343, Feb. 18, 1994]



     Subpart C_What Post-Award Conditions Must Be Met by a Grantee?



Sec. 380.20  What requirements must a grantee meet before it provides 
for the transition of an individual in supported employment?

    A grantee must provide for the transition of an individual with the 
most severe disabilities to extended services no later than 18 months 
after placement in supported employment, unless a longer period is 
established in the individual's program of services, and only if the 
individual has made substantial progress toward meeting his or her 
hours-per-week work goal, is stabilized in the job, and extended 
services are available and can be provided without a hiatus in services.

(Authority: 29 U.S.C. 777a(c))

[57 FR 28442, June 24, 1992, as amended at 59 FR 8342, Feb. 18, 1994]



Sec. 380.21  What information requirement applies to this program?

    Each grantee must advise recipients of services under its project 
or, as appropriate, the parents, family members, guardians, advocates, 
or authorized representatives of those individuals, of the availability 
and purposes of the State's Client Assistance Program, including 
information on seeking assistance from that program.

(Authority: 29 U.S.C. 718a)

[59 FR 8343, Feb. 18, 1994]

[[Page 464]]



PART 381_PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS--Table of 
Contents



                            Subpart A_General

Sec.
381.1 What is the Protection and Advocacy of Individual Rights program?
381.2 Who is eligible for an award?
381.3 What activities may the Secretary fund?
381.4 What regulations apply?
381.5 What definitions apply?

               Subpart B_How Does One Apply for an Award?

381.10 What are the application requirements?

             Subpart C_How Does the Secretary Make an Award?

381.20 How does the Secretary evaluate an application?
381.22 How does the Secretary allocate funds under this program?

          Subpart D_What Conditions Must Be Met After an Award?

381.30 How are services to be administered?
381.31 What are the requirements pertaining to the protection, use, and 
          release of personal information?
381.32 What are the reporting requirements?
381.33 What are the requirements related to the use of funds provided 
          under this part?

    Authority: 29 U.S.C. 794e, unless otherwise noted.

    Source: 58 FR 43022, Aug. 12, 1993, unless otherwise noted.



                            Subpart A_General



Sec. 381.1  What is the Protection and Advocacy of Individual Rights
program?

    This program is designed to support a system in each State to 
protect the legal and human rights of eligible individuals with 
disabilities.

(Authority: Sec. 509(a) of the Act; 29 U.S.C. 794e(a))



Sec. 381.2  Who is eligible for an award?

    (a) A protection and advocacy system that is established under part 
C of the Developmental Disabilities Assistance and Bill of Rights Act 
(DDA), 42 U.S.C. 6041-6043, and that meets the requirements of Sec. 
381.10 is eligible to apply for a grant award under this program.
    (b) In any fiscal year in which the amount appropriated to carry out 
this section is less than $5,500,000, a protection and advocacy system 
from any State or from Guam, American Samoa, the United States Virgin 
Islands, the Commonwealth of the Northern Mariana Islands, or the 
Republic of Palau may apply for a grant under the Protection and 
Advocacy of Individual Rights (PAIR) program to plan for, develop 
outreach strategies for, and carry out a protection and advocacy program 
authorized under this part, except that the Republic of Palau may not 
apply for a grant under the PAIR program after the Compact of Free 
Association with Palau takes effect.
    (c) In any fiscal year in which the amount appropriated to carry out 
this section is equal to or greater than $5,500,000, an eligible system 
from any State and from any of the jurisdictions named in paragraph (b) 
of this section may apply to receive the amount allotted pursuant to 
section 509(c)-(e) of the Act, except that the Republic of Palau may 
receive an allotment under section 509 of the Act only until the Compact 
of Free Association with Palau takes effect.

(Authority: Sec. 509(b)-(e) of the Act; 29 U.S.C. 794e(b)-(e))

[58 FR 43022, Aug. 12, 1993, as amended at 59 FR 8343, Feb. 18, 1994]



Sec. 381.3  What activities may the Secretary fund?

    (a) Funds made available under this part must be used for the 
following activities:
    (1) Establishing a system to protect, and advocate for, the rights 
of individuals with disabilities.
    (2) Pursuing legal, administrative, and other appropriate remedies 
or approaches to ensure the protection of, and advocacy for, the rights 
of eligible individuals with disabilities within the State.
    (3) Providing information on and making referrals to programs and 
services addressing the needs of individuals with disabilities in the 
State, including individuals with disabilities who are exiting from 
public school programs.

[[Page 465]]

    (4) Coordinating the protection and advocacy program provided 
through an eligible system with the advocacy programs under--
    (i) Section 112 of the Act (the Client Assistance Program (CAP));
    (ii) The Older Americans Act of 1965 (the State long-term care 
ombudsman program);
    (iii) Part C of the DDA; and
    (iv) The Protection and Advocacy for Individuals with Mental Illness 
Act of 1986 (PAIMI), 42 U.S.C. 10801-10851.
    (5) Developing a statement of objectives and priorities on an annual 
basis and a plan for achieving these objectives and priorities.
    (6) Providing to the public, including individuals with disabilities 
and, as appropriate, their representatives, an opportunity to comment on 
the objectives and priorities described in Sec. 381.10(f).
    (7) Establishing a grievance procedure for clients or prospective 
clients of the eligible system to ensure that individuals with 
disabilities are afforded equal access to the services of the eligible 
system.
    (b) Funds made available under this part also may be used to carry 
out any other activities consistent with the purpose of this part and 
the activities listed in paragraph (a) of this section.

(Authority: Secs. 12 and 509(f) of the Act; 29 U.S.C. 711(c) and 
794e(f)).

[58 FR 43022, Aug. 12, 1993, as amended at 59 FR 8344, Feb. 18, 1994]



Sec. 381.4  What regulations apply?

    The following regulations apply to the PAIR program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals and Nonprofit Organizations), if the 
eligible system is not a State or local government agency or Indian 
tribal organization.
    (2) 34 CFR part 75 (Direct Grant Programs), if the appropriation for 
the PAIR program is less than $5,500,000.
    (3) 34 CFR part 76 (State-Administered Programs), if the 
appropriation for the PAIR program is equal to or greater than 
$5,500,000 and the eligible system is a State or local government 
agency, except for--
    (i) Section 76.103;
    (ii) Sections 76.125 through 76.137;
    (iii) Sections 76.300 through 76.401;
    (iv) Section 76.704;
    (v) Section 76.734; and
    (vi) Section 76.740.
    (4) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (5) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (6) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments), if the 
eligible system is a State or local government agency.
    (7) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (8) 34 CFR part 82 (New Restrictions on Lobbying).
    (9) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (10) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 381.
    (c) The regulations in 34 CFR 369.43, 369.46 and 369.48 relating to 
certain conditions that must be met by grantees.

(Authority: Secs. 12 and 509 of the Act; 29 U.S.C. 711(c) and 794e)



Sec. 381.5  What definitions apply?

    (a) Definitions in EDGAR. The following terms used in this part are 
defined in 34 CFR 77.1:

Award
EDGAR
Fiscal year
Nonprofit
Private
Public
Secretary

    (b) Other definitions. The following definitions also apply to this 
part:
    Act means the Rehabilitation Act of 1973, as amended.
    Advocacy means pleading an individual's cause or speaking or writing 
in support of an individual. Advocacy may be formal, as in the case of a 
lawyer representing an individual in a court of law or in formal 
administrative proceedings before government

[[Page 466]]

agencies (whether State, local or Federal). Advocacy also may be 
informal, as in the case of a lawyer or non-lawyer representing an 
individual in negotiations, mediation, or informal administrative 
proceedings before government agencies (whether State, local or 
Federal), or as in the case of a lawyer or non-lawyer representing an 
individual's cause before private entities or organizations, or 
government agencies (whether State, local or Federal). Advocacy may be 
on behalf of--
    (1) A single individual, in which case it is individual advocacy;
    (2) More than one individual or a group or class of individuals, in 
which case it is systems (or systemic) advocacy; or
    (3) Oneself, in which case it is self advocacy.
    Eligible individual with a disability means an individual who--
    (1) Needs protection and advocacy services that are beyond the scope 
of services authorized to be provided by the CAP under section 112 of 
the Act; and
    (2) Is ineligible for--
    (i) Protection and advocacy programs under part C of the DDA; and
    (ii) Protection and advocacy programs under the PAIMI.
    Eligible system means a protection and advocacy system that is 
established under part C of the DDA, 42 U.S.C. 6041-6043, and that meets 
the requirements of Sec. 381.10 of this part.
    Mediation means the act or process of using an independent third 
party to act as a mediator, intermediary, or conciliator to settle 
differences or disputes between persons or parties. The third party who 
acts as a mediator, intermediary, or conciliator must not be any entity 
or individual who is connected in any way with the eligible system or 
the agency, entity, or individual with whom the individual with a 
disability has a dispute. Mediation may involve the use of professional 
mediators or any other independent third party mutually agreed to by the 
parties to the dispute.
    State means, in addition to each of the several States of the United 
States, the District of Columbia, the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American Samoa, the Commonwealth of 
the Northern Mariana Islands, and the Republic of Palau (until the 
Compact of Free Association takes effect), except for purposes of the 
section 509(c)(3)(B) and (c)(4) of the Act, in which case State does not 
mean or include Guam, American Samoa, the United States Virgin Islands, 
the Commonwealth of the Northern Mariana Islands, and the Republic of 
Palau.

(Authority: Secs. 12 and 509 of the Act; 29 U.S.C. 711(c) and 794e)

[58 FR 43022, Aug. 12, 1993, as amended at 59 FR 8344, Feb. 18, 1994]



               Subpart B_How Does One Apply for an Award?



Sec. 381.10  What are the application requirements?

    (a) Regardless of the amount of funds appropriated for the PAIR 
program in a fiscal year, an eligible system shall submit to the 
Secretary an application for assistance under this part at the time and 
in the form and manner determined by the Secretary that contains all 
information that the Secretary determines necessary, including 
assurances that the eligible system will--
    (1) Have in effect a system to protect, and advocate for, the rights 
of eligible individuals with disabilities;
    (2) Have the same general authorities, including access to records 
and program income, as in part C of the DDA;
    (3) Have the authority to pursue legal, administrative, and other 
appropriate remedies or approaches to ensure the protection of, and 
advocacy for, the rights of eligible individuals with disabilities 
within the State;
    (4) Provide information on and make referrals to programs and 
services addressing the needs of individuals with disabilities in the 
State, including individuals with disabilities who are exiting from 
public school programs;
    (5) Develop a statement of objectives and priorities on an annual 
basis and a plan for achieving these objectives and priorities;

[[Page 467]]

    (6) Provide to the public, including individuals with disabilities 
and, as appropriate, their representatives, an opportunity to comment on 
the objectives and priorities established by, and activities of, the 
eligible system including--
    (i) The objectives and priorities for the activities of the eligible 
system for each year and the rationale for the establishment of those 
objectives and priorities; and
    (ii) The coordination of programs provided through eligible systems 
with the advocacy programs under--
    (A) Section 112 of the Act (CAP);
    (B) The Older Americans Act of 1965 (the State long-term care 
ombudsman program);
    (C) Part C of the DDA; and
    (D) The PAIMI;
    (7) Establish a grievance procedure for clients or prospective 
clients of the eligible system to ensure that individuals with 
disabilities are afforded equal access to the services of the eligible 
system;
    (8) Use funds made available under this part to supplement and not 
supplant the non-Federal funds that would otherwise be made available 
for the purpose for which Federal funds are provided; and
    (9) Implement procedures designed to ensure that, to the maximum 
extent possible, mediation (and other alternative dispute resolution) 
procedures, which include good faith negotiation, are used before 
resorting to formal administrative or legal remedies.
    (b) To receive direct payment of funds under this part, an eligible 
system must provide to the Secretary, as part of its application for 
assistance, an assurance that direct payment is not prohibited by or 
inconsistent with State law, regulation, or policy.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Secs. 12 and 509(f) of the Act; 29 U.S.C. 711(c) and 
794e(f))

[58 FR 43022, Aug. 12, 1993, as amended at 59 FR 8344, Feb. 18, 1994; 59 
FR 33680, June 30, 1994]



             Subpart C_How Does the Secretary Make an Award?



Sec. 381.20  How does the Secretary evaluate an application?

    In any fiscal year in which the amount appropriated for the PAIR 
program is less than $5,500,000, the Secretary evaluates applications 
under the procedures in 34 CFR part 75.

(Authority: 29 U.S.C. 711(c) and 794e (b) and (f))

[62 FR 10404, Mar. 6, 1997]



Sec. 381.22  How does the Secretary allocate funds under this program?

    (a) In any fiscal year in which the amount appropriated for this 
program is equal to or greater than $5,500,000--
    (1) The Secretary sets aside not less than 1.8 percent but not more 
than 2.2 percent of the amount appropriated to provide training and 
technical assistance to eligible systems established under this program.
    (2) After the reservation required by paragraph (a)(1) of this 
section, the Secretary makes allotments from the remainder of the amount 
appropriated in accordance with section 509(c)(2)-(e) of the Act.
    (b) Notwithstanding any other provision of law, in any fiscal year 
in which the amount appropriated for this program is equal to or greater 
than $5,500,000, the Secretary pays directly to an eligible system that 
submits an application that meets the requirements of Sec. 381.10 the 
amount of the allotment to the State pursuant to section 509 of the Act, 
unless the State provides otherwise.

(Authority: Sec. 509(c)-(e) of the Act; 29 U.S.C. 794e(c)-(e))



          Subpart D_What Conditions Must Be Met After an Award?



Sec. 381.30  How are services to be administered?

    (a) Each eligible system shall carry out the protection and advocacy 
program authorized under this part.
    (b) An eligible system may not award a grant or subgrant to another 
entity to carry out, in whole or in part, the protection and advocacy 
program authorized under this part.

[[Page 468]]

    (c) An eligible system may contract with another agency, entity, or 
individual to carry out the PAIR program in whole or in part, but only 
if the agency, entity, or individual with whom the eligible system has 
contracted--
    (1) Does not provide services under the Act or does not provide 
treatment, services, or habilitation to persons with disabilities; and
    (2) Is independent of, and not connected financially or through a 
board of directors to, an entity or individual that provides services 
under the Act or that provides treatment, services, or habilitation to 
persons with disabilities.
    (d) For purposes of paragraph (c) of this section, ``services under 
the Act'' and ``treatment, services, or habilitation'' does not include 
client assistance services under CAP, protection and advocacy services 
authorized under the protection and advocacy programs under part C of 
the DDA and the PAIMI, or any other protection and advocacy services.

(Authority: Secs. 12 and 509(i) of the Act; 29 U.S.C. 711(c) and 
794e(i))

[58 FR 43022, Aug. 12, 1993, as amended at 59 FR 8344, Feb. 18, 1994]



Sec. 381.31  What are the requirements pertaining to the protection,
use, and release of personal information?

    (a) All personal information about individuals served by any 
eligible system under this part, including lists of names, addresses, 
photographs, and records of evaluation, must be held confidential.
    (b) The eligible system's use of information and records concerning 
individuals must be limited only to purposes directly connected with the 
protection and advocacy program, including program evaluation 
activities. Except as provided in paragraph (c) of this section, an 
eligible system may not disclose personal information about an 
individual, directly or indirectly, other than in the administration of 
the protection and advocacy program, unless the consent of the 
individual to whom the information applies, or his or her guardian, 
parent, or other authorized representative or advocate (including the 
individual's advocate from the eligible system), has been obtained in 
writing. An eligible system may not produce any report, evaluation, or 
study that reveals any personally identifying information without the 
written consent of the individual or his or her representative.
    (c) Except as limited in paragraph (d) of this section, the 
Secretary or other Federal or State officials responsible for enforcing 
legal requirements must be given complete access to all--
    (1) Records of the eligible system receiving funds under this 
program; and
    (2) All individual case records of clients served under this part 
without the consent of the client.
    (d)(1) The privilege of a person or eligible system not to produce 
documents or provide information pursuant to paragraph (c) of this 
section is governed by the principles of common law as interpreted by 
the courts of the United States, except that, for purposes of any 
periodic audit, report, or evaluation of the performance of the eligible 
system established or assisted under this part, the Secretary does not 
require the eligible system to disclose the identity of, or any other 
personally identifiable information related to, any individual 
requesting assistance under the PAIR program.
    (2) However, notwithstanding paragraph (d)(1) of this section, if an 
audit, monitoring review, State plan assurance review, evaluation, or 
other investigation has already produced independent and reliable 
evidence that there is probable cause to believe that the eligible 
system has violated its legislative mandate or misused Federal funds, 
the eligible system shall disclose, if the Secretary so requests, the 
identity of, or any other personally identifiable information (i.e., 
name, address, telephone number, social security number, or other 
official code or number by which an individual may be readily 
identified) related to, any individual requesting assistance under the 
PAIR program, in accordance with the

[[Page 469]]

principles of common law as interpreted by the courts of the United 
States.

(Authority: Secs. 12 and 509(h) of the Act; 29 U.S.C. 711(c) and 
794e(h))

[58 FR 43022, Aug. 12, 1993, as amended at 59 FR 8344, Feb. 18, 1994]



Sec. 381.32  What are the reporting requirements?

    Each eligible system shall provide to the Secretary, no later than 
90 days after the end of each fiscal year, an annual report that 
includes information on the following:
    (a) The types of services and activities undertaken by the eligible 
system and how these services and activities addressed the objectives 
and priorities developed pursuant to Sec. 381.10(e).
    (b) The total number of individuals, by race, color, national 
origin, gender, age, and disabling condition, who requested services 
from the eligible system and the total number of individuals, by race, 
color, national origin, gender, age, and disabling condition, who were 
served by the eligible system.
    (c) The types of disabilities represented by individuals served by 
the eligible system.
    (d) The types of issues being addressed on behalf of individuals 
served by the eligible system.
    (e) Any other information that the Secretary may require.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Secs. 12(c), 13, and 509(l) of the Act; 29 U.S.C. 711(c), 
712, and 794e(l))



Sec. 381.33  What are the requirements related to the use of funds
provided under this part?

    (a) Funds made available under this part must be used to supplement 
and not supplant the non-Federal funds that would otherwise be made 
available for the purpose for which Federal funds are provided under 
this part.
    (b) In any State in which an eligible system is located within a 
State agency, that State or State agency may not use more than five 
percent of any allotment for the costs of administration of the eligible 
system supported under this part. For purposes of this paragraph, 
``costs of administration'' include, but are not limited to, 
administrative salaries (including salaries for clerical and support 
staff), supplies, depreciation or use allowances, the cost of operating 
and maintaining facilities, equipment, and grounds (e.g., rental of 
office space or equipment, telephone, postage, maintenance agreements), 
and other similar types of costs that may be incurred by the State or 
State agency to administer the eligible system.
    (c) Funds paid to a State or an eligible system within a State for a 
fiscal year to carry out this program that are not expended or obligated 
prior to the end of that fiscal year remain available to the State or an 
eligible system within a State for obligation during the succeeding 
fiscal year in accordance with 34 CFR 76.705-76.707.
    (d) For determining when an eligible system makes an obligation for 
various kinds of property or services, 34 CFR 75.707 and 76.707, as 
appropriate, apply to this program. If the appropriation for the PAIR 
program is less than $5,500,000, Sec. 75.707 applies. If the 
appropriation for the PAIR program is equal to or greater than 
$5,500,000, Sec. 76.707 applies. An eligible system is considered a 
State for purposes of Sec. 76.707.

(Authority: Secs. 12 and 509(f),(g), and (j) of the Act; 29 U.S.C. 
711(c) and 794e(f), (g), and (j))

[58 FR 43022, Aug. 12, 1993, as amended at 59 FR 8344, Feb. 18, 1994]



PART 385_REHABILITATION TRAINING--Table of Contents



                            Subpart A_General

Sec.
385.1 What is the Rehabilitation Training program?
385.2 Who is eligible for assistance under these programs?
385.3 What regulations apply to these programs?
385.4 What definitions apply to these programs?

Subpart B [Reserved]

                Subpart C_How Does One Apply for a Grant?

385.20 What are the application procedures for these programs?

[[Page 470]]

             Subpart D_How Does the Secretary Make a Grant?

385.30 [Reserved]
385.31 How does the Secretary evaluate an application?
385.33 What other factors does the Secretary consider in reviewing an 
          application?

           Subpart E_What Conditions Must Be Met by a Grantee?

385.40 What are the requirements pertaining to the membership of a 
          project advisory committee?
385.41 What are the requirements affecting the collection of data from 
          designated State agencies?
385.42 What are the requirements affecting the dissemination of training 
          materials?
385.43 What requirements apply to the training of rehabilitation 
          counselors and other rehabilitation personnel?
385.44 What requirement applies to the training of individuals with 
          disabilities?
385.45 What additional application requirements apply to the training of 
          individuals for rehabilitation careers?
385.46 What limitations apply to the rate of pay for experts or 
          consultants appointed or serving under contract under the 
          Rehabilitation Training program?

    Authority: 29 U.S.C. 711(c), 772, and 774, unless otherwise noted.

    Source: 45 FR 86379, Dec. 30, 1980, unless otherwise noted.



                            Subpart A_General



Sec. 385.1  What is the Rehabilitation Training program?

    (a) The Rehabilitation Training program is designed to--
    (1) Ensure that skilled personnel are available to provide 
rehabilitation services to individuals with disabilities through 
vocational, medical, social, and psychological rehabilitation programs, 
through supported employment programs, through independent living 
services programs, and through client assistance programs;
    (2) Maintain and upgrade basic skills and knowledge of personnel 
employed to provide state-of-the-art service delivery systems and 
rehabilitation technology services; and
    (3) Provide training and information to individuals with 
disabilities, the parents, families, guardians, advocates, and 
authorized representatives of the individuals, and other appropriate 
parties to develop the skills necessary for individuals with 
disabilities to access the rehabilitation system and to become active 
decisionmakers in the rehabilitation process.
    (b) The Secretary awards grants and contracts to pay part of the 
costs of projects for training, traineeships, and related activities, 
including the provision of technical assistance, to assist in increasing 
the numbers of qualified personnel trained in providing rehabilitation 
services and other services provided under the Act, to individuals with 
disabilities. Financial assistance is provided through six categories of 
training programs:
    (1) Rehabilitation Long-Term Training (34 CFR part 386).
    (2) Experimental and Innovative Training (34 CFR part 387).
    (3) State Vocational Rehabilitation Unit In-Service Training (34 CFR 
part 388).
    (4) Rehabilitation Continuing Education Programs (34 CFR part 389).
    (5) Rehabilitation Short-Term Training (34 CFR part 390).
    (6) Training of Interpreters for Individuals Who Are Deaf and 
Individuals Who Are Deaf-Blind (34 CFR part 396).

(Authority: Secs. 301 and 302 of the Act; 29 U.S.C. 770 and 774)

[59 FR 8344, Feb. 18, 1994]



Sec. 385.2  Who is eligible for assistance under these programs?

    States and public or nonprofit agencies and organizations, including 
Indian tribes and institutions of higher education, are eligible for 
assistance under the Rehabilitation Training program.

(Authority: Secs. 7(19) and 302 of the Act; 29 U.S.C. 706(19) and 774)

[59 FR 8345, Feb. 18, 1994]



Sec. 385.3  What regulations apply to these programs?

    The following regulations apply to the Rehabilitation Training 
program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:

[[Page 471]]

    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions That Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 385.
    (c) The regulations in 34 CFR parts 386, 387, 388, 389, 390, and 
396, as appropriate.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 774)

[59 FR 8345, Feb. 18, 1994]



Sec. 385.4  What definitions apply to these programs?

    (a) The following definitions in 34 CFR part 77 apply to the 
programs under the Rehabilitation Training Program--

Applicant
Application
Award
Budget Period
Department
EDGAR
Nonprofit
Private
Project
Project Period
Public
Secretary


(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    (b) The following definitions also apply to programs under the 
Rehabilitation Training program:
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), as 
amended.
    Assistive technology device means any item, piece of equipment, or 
product system, whether acquired commercially off the shelf, modified, 
or customized, that is used to increase, maintain, or improve functional 
capabilities of individuals with disabilities.
    Assistive technology service means any service that directly assists 
an individual with a disability in the selection, acquisition, or use of 
an assistive technology device. The term includes--
    (1) The evaluation of the needs of an individual with a disability, 
including a functional evaluation of the individual in the individual's 
customary environment;
    (2) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by individuals with disabilities;
    (3) Selecting, designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing of assistive technology devices;
    (4) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing education and rehabilitation plans and programs;
    (5) Training or technical assistance for an individual with 
disabilities, or, if appropriate, the family of an individual with 
disabilities; and
    (6) Training or technical assistance for professionals (including 
individuals providing education and rehabilitation services), employers, 
or other individuals who provide services to, employ, or are otherwise 
substantially involved in the major life functions of individuals with 
disabilities.
    Community rehabilitation program means a program that provides 
directly or facilitates the provision of vocational rehabilitation 
services to individuals with disabilities, and that provides, singly or 
in combination, for an individual with a disability to enable the 
individual to maximize opportunities for employment, including career 
advancement--
    (1) Medical, psychiatric, psychological, social, and vocational 
services that are provided under one management;

[[Page 472]]

    (2) Testing, fitting, or training in the use of prosthetic and 
orthotic devices;
    (3) Recreational therapy;
    (4) Physical and occupational therapy;
    (5) Speech, language, and hearing therapy;
    (6) Psychiatric, psychological, and social services, including 
positive behavior management;
    (7) Assessment for determining eligibility and vocational 
rehabilitation needs;
    (8) Rehabilitation technology;
    (9) Job development, placement, and retention services;
    (10) Evaluation or control of specific disabilities;
    (11) Orientation and mobility services for individuals who are 
blind;
    (12) Extended employment;
    (13) Psychosocial rehabilitation services;
    (14) Supported employment services and extended services;
    (15) Services to family members when necessary to the vocational 
rehabilitation of the individual;
    (16) Personal assistance services; or
    (17) Services similar to the services described in paragraphs (1) 
through (16) of this definition.
    Designated State agency means an agency designated under section 
101(a)(1)(A) of the Act.
    Designated State unit means (1) Any State agency unit required under 
section 101(a)(2)(A) of the Act, or
    (2) In cases in which no State agency unit is required, the State 
agency described in section 101(a)(2)(B)(i) of the Act.
    Independent living core services means--
    (1) Information and referral services;
    (2) Independent living skills training;
    (3) Peer counseling, including cross-disability peer counseling; and
    (4) Individual and systems advocacy.
    Independent living services includes--
    (1) Independent living core services; and
    (2)(i) Counseling services, including psychological, 
psychotherapeutic, and related services;
    (ii) Services related to securing housing or shelter, including 
services related to community group living, and supportive of the 
purposes of this Act and of the titles of this Act, and adaptive housing 
services (including appropriate accommodations to and modifications of 
any space used to serve, or occupied by, individuals with disabilities);
    (iii) Rehabilitation technology;
    (iv) Mobility training;
    (v) Services and training for individuals with cognitive and sensory 
disabilities, including life skills training, and interpreter and reader 
services;
    (vi) Personal assistance services, including attendant care and the 
training of personnel providing these services;
    (vii) Surveys, directories, and other activities to identify 
appropriate housing, recreation opportunities, and accessible 
transportation, and other support services;
    (viii) Consumer information programs on rehabilitation and 
independent living services available under this Act, especially for 
minorities and other individuals with disabilities who have 
traditionally been unserved or underserved by programs under this Act;
    (ix) Education and training necessary for living in the community 
and participating in community activities;
    (x) Supported living;
    (xi) Transportation, including referral and assistance for 
transportation;
    (xii) Physical rehabilitation;
    (xiii) Therapeutic treatment;
    (xiv) Provision of needed prostheses and other appliances and 
devices;
    (xv) Individual and group social and recreational services;
    (xvi) Training to develop skills specifically designed for youths 
who are individuals with disabilities to promote self-awareness and 
esteem, develop advocacy and self-empowerment skills, and explore career 
options;
    (xvii) Services for children;
    (xviii) Services under other Federal, State, or local programs 
designed to provide resources, training, counseling, or other assistance 
of substantial benefit in enhancing the independence, productivity, and 
quality of life of individuals with disabilities;
    (xvix) Appropriate preventive services to decrease the need of 
individuals assisted under this Act for similar services in the future;

[[Page 473]]

    (xx) Community awareness programs to enhance the understanding and 
integration of individuals with disabilities; and
    (xxi) Such other services as may be necessary and not inconsistent 
with the provisions of this Act.
    Individual with a disability means any individual who--
    (1) Has a physical or mental impairment, which for that individual 
constitutes or results in a substantial impediment to employment; and
    (2) Can benefit in terms of an employment outcome from vocational 
rehabilitation services provided pursuant to title I, II, III, VI, or 
VIII of the Act.
    Individual with a severe disability means an individual with a 
disability--
    (1) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental 
retardation, mental illness, multiple sclerosis, muscular dystrophy, 
musculo-skeletal disorders, neurological disorders (including stroke and 
epilepsy), paraplegia, quadriplegia and other spinal cord conditions, 
sickle-cell anemia, specific learning disabilities, end-stage renal 
disease, or another disability or combination of disabilities determined 
on the basis of an assessment for determining eligibility and vocational 
rehabilitation needs.
    Institution of higher education has the meaning given the term in 
section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
    Personal assistance services means a range of services provided by 
one or more persons designed to assist an individual with a disability 
to perform daily living activities on or off the job that the individual 
would typically perform if the individual did not have a disability. The 
services shall be designed to increase the individual's control in life 
and ability to perform everyday activities on or off the job.
    Qualified personnel: (1) For designated State agencies or designated 
State units, means personnel who have met standards that are consistent 
with existing national or State approved or recognized certification, 
licensing, registration, or other comparable requirements that apply to 
the area in which such personnel are providing vocational rehabilitation 
services.
    (2) For other than designated State agencies or designated State 
units, means personnel who have met existing State certification or 
licensure requirements, or in the absence of State requirements, have 
met professionally accepted requirements established by national 
certification boards.
    Rehabilitation technology means the systematic application of 
technologies, engineering methodologies, or scientific principles to 
meet the needs of and address the barriers confronted by individuals 
with disabilities in areas that include education, rehabilitation, 
employment, transportation, independent living, and recreation. The term 
includes rehabilitation engineering, assistive technology devices, and 
assistive technology services.
    State includes, in addition to each of the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, Guam, American Samoa, the 
Commonwealth of the Northern Mariana Islands and the Republic of Palau 
(until the Compact of Free Association with Palau takes effect).
    Stipend means financial assistance on behalf of individuals in 
support of their training, as opposed to salary payment for services 
provided within the project.
    Supported employment means--
    (1) Competitive work in integrated work settings for individuals 
with the most severe disabilities--
    (i)(A) For whom competitive employment has not traditionally 
occurred; or

[[Page 474]]

    (B) For whom competitive employment has been interrupted or 
intermittent as a result of a severe disability; and
    (ii) Who, because of the nature and severity of their disability, 
need intensive supported employment services from the designated State 
unit and extended services after transition in order to perform this 
work.
    (2) Transitional employment for individuals with the most severe 
disabilities due to mental illness.
    Supported employment services means ongoing support services and 
other appropriate services needed to support and maintain an individual 
with most severe disability in supported employment, that are--
    (1) Provided singly or in combination and are organized and made 
available in such a way as to assist an eligible individual in entering 
or maintaining integrated, competitive employment;
    (2) Based on a determination of the needs of an eligible individual, 
as specified in an individualized written rehabilitation program; and
    (3) Provided by the designated State unit for a period of time not 
to extend beyond 18 months, unless under special circumstances the 
eligible individual and the rehabilitation counselor or coordinator 
jointly agree to extend the time in order to achieve the rehabilitation 
objectives identified in the individualized written rehabilitation 
program.
    Vocational rehabilitation services means the same as the term is 
defined in 34 CFR 369.4(b).

(Authority: Secs. 7, 12(c), and 101(a)(7) of the Act; 29 U.S.C. 706, 
711(c), and 721(a)(7))

[45 FR 86379, Dec. 30, 1980, as amended at 50 FR 38631, Sept. 23, 1985; 
53 FR 17146, May 13, 1988; 59 FR 8345, Feb. 18, 1994]

Subpart B [Reserved]



                Subpart C_How Does One Apply for a Grant?



Sec. 385.20  What are the application procedures for these programs?

    The Secretary gives the designated State agency an opportunity to 
review and comment on applications submitted from within the State that 
it serves. The procedures to be followed by the applicant and the State 
are in EDGAR Sec. Sec. 75.155-75.159.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[45 FR 86379, Dec. 30, 1980, as amended at 59 FR 8347, Feb. 18, 1994]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 385.30  [Reserved]



Sec. 385.31  How does the Secretary evaluate an application?

    (a) The Secretary evaluates applications under the procedures in 34 
CFR part 75.
    (b) The Secretary evaluates each application using selection 
criteria identified in parts 386, 387, 388, 389 and 390, as appropriate.
    (c) In addition to the selection criteria described in paragraph (b) 
of this section, the Secretary evaluates each application using--
    (1) Selection criteria in 34 CFR 75.210;
    (2) Selection criteria established under 34 CFR 75.209; or
    (3) A combination of selection criteria established under 34 CFR 
75.209 and selection criteria in 34 CFR 75.210.

(Authority: 29 U.S.C. 711(c))

[62 FR 10404, Mar. 6, 1997]



Sec. 385.33  What other factors does the Secretary consider in
reviewing an application?

    In addition to the selection criteria listed in Sec. 75.210 and 
parts 386 through 390, the Secretary, in making awards under this 
program, considers such factors as--
    (a) The geographical distribution of projects in each Rehabilitation 
Training Program category throughout the country; and
    (b) The past performance of the applicant in carrying out similar 
training activities under previously awarded grants, as indicated by 
such factors as compliance with grant conditions,

[[Page 475]]

soundness of programmatic and financial management practices and 
attainment of established project objectives.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[45 FR 86379, Dec. 30, 1980, as amended at 62 FR 10404, Mar. 6, 1997]



           Subpart E_What Conditions Must Be Met by a Grantee?



Sec. 385.40  What are the requirements pertaining to the membership
of a project advisory committee?

    If a project funded under 34 CFR parts 386 through 390 or 396 
establishes an advisory committee, its membership must include 
individuals with disabilities or parents, family members, guardians, 
advocates, or other authorized representatives of the individuals; 
members of minority groups; trainees; and providers of vocational 
rehabilitation and independent living rehabilitation services.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[59 FR 8347, Feb. 18, 1994]



Sec. 385.41  What are the requirements affecting the collection of 
data from designated State agencies?

    If the collection of data is necessary from individuals with 
disabilities being served by two or more designated State agencies or 
from employees of two or more of these agencies, the project director 
must submit requests for the data to appropriate representatives of the 
affected agencies, as determined by the Secretary. This requirement also 
applies to employed project staff and individuals enrolled in courses of 
study supported under these programs.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

[45 FR 86379, Dec. 30, 1980, as amended at 53 FR 17147, May 13, 1988; 59 
FR 8347, Feb. 18, 1994]



Sec. 385.42  What are the requirements affecting the dissemination of
training materials?

    A set of any training materials developed under the Rehabilitation 
Training Program must be submitted to any information clearinghouse 
designated by the Secretary.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))



Sec. 385.43  What requirements apply to the training of rehabilitation
counselors and other rehabilitation personnel?

    Any grantee who provides training of rehabilitation counselors or 
other rehabilitation personnel under any of the programs in 34 CFR parts 
386 through 390 shall train those counselors and personnel on the 
services provided under this Act, and, in particular, services provided 
in accordance with amendments made by the Rehabilitation Act Amendments 
of 1992. The grantee shall also furnish training to these counselors and 
personnel regarding the applicability of section 504 of this Act, title 
I of the Americans with Disabilities Act of 1990, and the provisions of 
titles II and XVI of the Social Security Act that are related to work 
incentives for individuals with disabilities.

(Authority: Sec. 302(a)(3) of the Act; 29 U.S.C. 774(a)(3))

[59 FR 8347, Feb. 18, 1994]



Sec. 385.44  What requirement applies to the training of individuals
with disabilities?

    Any grantee or contractor who provides training under any of the 
programs in 34 CFR parts 386 through 390 and 396 shall give due regard 
to the training of individuals with disabilities as part of its effort 
to increase the number of qualified personnel available to provide 
rehabilitation services.

(Authority: Sec. 302(a)(1) of the Act; 29 U.S.C. 774(a)(1))

[59 FR 8347, Feb. 18, 1994]



Sec. 385.45  What additional application requirements apply to the 
training of individuals for rehabilitation careers?

    (a) All applicants for a grant or contract to provide training under 
any of the programs in 34 CFR parts 386 through 390 and 396 shall 
demonstrate how the training they plan to provide

[[Page 476]]

will prepare rehabilitation professionals to address the needs of 
individuals with disabilities from minority backgrounds.
    (b) All applicants for a grant under any of the programs in 34 CFR 
parts 386 through 390 and 396 shall include a detailed description of 
strategies that will be utilized to recruit and train persons so as to 
reflect the diverse populations of the United States, as part of the 
effort to increase the number of individuals with disabilities, and 
individuals who are members of minority groups, who are available to 
provide rehabilitation services.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Secs. 21(b)(5) and 302(a)(5) of the Act; 29 U.S.C. 
718b(b)(6) and 774(a)(6))

[59 FR 8347, Feb. 18, 1994, as amended at 59 FR 33680, June 30, 1994]



Sec. 385.46  What limitations apply to the rate of pay for experts
or consultants appointed or serving under contract under the 

Rehabilitation Training program?

    An expert or consultant appointed or serving under contract pursuant 
to this section shall be compensated at a rate subject to approval of 
the Commissioner which shall not exceed the daily equivalent of the rate 
of pay for level 4 of the Senior Executive Service Schedule under 
section 5382 of title 5, United States Code. Such an expert or 
consultant may be allowed travel and transportation expenses in 
accordance with section 5703 of title 5, United States Code.

(Authority: Sec. 302(g)(2) of the Act; 29 U.S.C. 774(g)(2))

[59 FR 8347, Feb. 18, 1994]



PART 386_REHABILITATION TRAINING: REHABILITATION LONG-TERM 
TRAINING--Table of Contents



                            Subpart A_General

Sec.
386.1 What is the Rehabilitation Long-Term Training program?
386.2 Who is eligible for an award?
386.3 What regulations apply?
386.4 What definitions apply?

Subpart B [Reserved]

             Subpart C_How Does the Secretary Make an Award?

386.20 What additional selection criteria are used under this program?

          Subpart D_What Conditions Must Be Met After an Award?

386.30 What are the matching requirements?
386.31 What are the requirements for directing grant funds?
386.32 What are allowable costs?
386.33 What are the requirements for grantees in disbursing 
          scholarships?
386.34 What assurances must be provided by a grantee that intends to 
          provide scholarships?
386.35 What information must be provided by a grantee that is an 
          institution of higher education to assist designated State 
          agencies?

           Subpart E_What Conditions Must Be Met by a Scholar?

386.40 What are the requirements for scholars?
386.41 Under what circumstances does the Secretary grant a deferral or 
          exception to performance or repayment under a scholarship 
          agreement?
386.42 What must a scholar do to obtain a deferral or exception to 
          performance or repayment under a scholarship agreement?
386.43 What are the consequences of a scholar's failure to meet the 
          terms and conditions of a scholarship agreement?

    Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.

    Source: 59 FR 31066, June 16, 1994, unless otherwise noted.



                            Subpart A_General



Sec. 386.1  What is the Rehabilitation Long-Term Training program?

    (a) The Rehabilitation Long-Term Training program provides financial 
assistance for--
    (1) Projects that provide basic or advanced training leading to an 
academic degree in one of those fields of study identified in paragraph 
(b) of this section;
    (2) Projects that provide a specified series of courses or program 
of study leading to award of a certificate in one of those fields of 
study identified in paragraph (b) of this section; and
    (3) Projects that provide support for medical residents enrolled in 
residency

[[Page 477]]

training programs in the specialty of physical medicine and 
rehabilitation.
    (b) The Rehabilitation Long-Term Training program is designed to 
provide academic training in areas of personnel shortages identified by 
the Secretary and published in a notice in the Federal Register. These 
areas may include--
    (1) Vocational rehabilitation counseling;
    (2) Rehabilitation technology;
    (3) Rehabilitation medicine;
    (4) Rehabilitation nursing;
    (5) Rehabilitation social work;
    (6) Rehabilitation psychiatry;
    (7) Rehabilitation psychology;
    (8) Rehabilitation dentistry;
    (9) Physical therapy;
    (10) Occupational therapy;
    (11) Speech pathology and audiology;
    (12) Physical education;
    (13) Therapeutic recreation;
    (14) Community rehabilitation program personnel;
    (15) Prosthetics and orthotics;
    (16) Specialized personnel for rehabilitation of individuals who are 
blind or have vision impairment;
    (17) Rehabilitation of individuals who are deaf or hard of hearing;
    (18) Rehabilitation of individuals who are mentally ill;
    (19) Undergraduate education in the rehabilitation services;
    (20) Independent living;
    (21) Client assistance;
    (22) Administration of community rehabilitation programs;
    (23) Rehabilitation administration;
    (24) Vocational evaluation and work adjustment;
    (25) Services to individuals with specific disabilities or specific 
impediments to rehabilitation, including individuals who are members of 
populations that are unserved or underserved by programs under this Act;
    (26) Job development and job placement services to individuals with 
disabilities;
    (27) Supported employment services, including services of employment 
specialists for individuals with disabilities;
    (28) Specialized services for individuals with severe disabilities;
    (29) Recreation for individuals with disabilities;
    (30) The use, applications, and benefits of assistive technology 
devices and assistive technology services; and
    (31) Other fields contributing to the rehabilitation of individuals 
with disabilities.

(Authority: 29 U.S.C. 711 and 771a)



Sec. 386.2  Who is eligible for an award?

    Those agencies and organizations eligible for assistance under this 
program are described in 34 CFR 385.2.

(Authority: 29 U.S.C. 771a(a))



Sec. 386.3  What regulations apply?

    The following regulations apply to the Rehabilitation Training: 
Rehabilitation Long-Term Training program:
    (a) The regulations in this part 386.
    (b) The regulations in 34 CFR part 385.

(Authority: 29 U.S.C. 771a)



Sec. 386.4  What definitions apply?

    The following definitions apply to this program:
    (a) Definitions in 34 CFR 385.4.
    (b) Other definitions. The following definitions also apply to this 
part:
    Academic year means a full-time course of study--
    (1) Taken for a period totaling at least nine months; or
    (2) Taken for the equivalent of at least two semesters, two 
trimesters, or three quarters.
    Certificate means a recognized educational credential awarded by a 
grantee under this part that attests to the completion of a specified 
series of courses or program of study.
    Professional corporation or professional practice means--
    (1) A professional service corporation or practice formed by one or 
more individuals duly authorized to render the same professional 
service, for the purpose of rendering that service; and
    (2) The corporation or practice and its members are subject to the 
same supervision by appropriate State regulatory agencies as individual 
practitioners.
    Related agency means--
    (1) An American Indian rehabilitation program; or
    (2) Any of the following agencies that provide services to 
individuals with

[[Page 478]]

disabilities under an agreement with a designated State agency in the 
area of specialty for which training is provided:
    (i) A Federal, State, or local agency.
    (ii) A nonprofit organization.
    (iii) A professional corporation or professional practice group.
    Scholar means an individual who is enrolled in a certificate or 
degree granting course of study in one of the areas listed in Sec. 
386.1(b) and who receives scholarship assistance under this part.
    Scholarship means an award of financial assistance to a scholar for 
training and includes all disbursements or credits for student stipends, 
tuition and fees, and student travel in conjunction with training 
assignments.
    State rehabilitation agency means the designated State agency.

(Authority: 29 U.S.C. 711(c))

Subpart B [Reserved]



             Subpart C_How Does the Secretary Make an Award?



Sec. 386.20  What additional selection criteria are used under this
program?

    In addition to the criteria in 34 CFR 385.31(c), the Secretary uses 
the following additional selection criteria to evaluate an application:
    (a) Relevance to State-Federal rehabilitation service program. (1) 
The Secretary reviews each application for information that shows that 
the proposed project appropriately relates to the mission of the State-
Federal rehabilitation service program.
    (2) The Secretary looks for information that shows that the project 
can be expected either--
    (i) To increase the supply of trained personnel available to State 
and other public or nonprofit agencies involved in the rehabilitation of 
individuals with physical or mental disabilities through degree or 
certificate granting programs; or
    (ii) To improve the skills and quality of professional personnel in 
the rehabilitation field in which the training is to be provided through 
the granting of a degree or certificate.
    (b) Nature and scope of curriculum. (1) The Secretary reviews each 
application for information that demonstrates the adequacy of the 
proposed curriculum.
    (2) The Secretary looks for information that shows--
    (i) The scope and nature of the coursework reflect content that can 
be expected to enable the achievement of the established project 
objectives;
    (ii) The curriculum and teaching methods provide for an integration 
of theory and practice relevant to the educational objectives of the 
program;
    (iii) There is evidence of educationally focused practical and other 
field experiences in settings that ensure student involvement in the 
provision of vocational rehabilitation, supported employment, or 
independent living rehabilitation services to individuals with 
disabilities, especially individuals with severe disabilities;
    (iv) The coursework includes student exposure to vocational 
rehabilitation, supported employment, or independent living 
rehabilitation processes, concepts, programs, and services; and
    (v) If applicable, there is evidence of current professional 
accreditation by the designated accrediting agency in the professional 
field in which grant support is being requested.

(Authority: 29 U.S.C. 711(c) and 771a)

[62 FR 10404, Mar. 6, 1997]



          Subpart D_What Conditions Must Be Met After an Award?



Sec. 386.30  What are the matching requirements?

    The Federal share may not be more than 90 percent of the total cost 
of a project under this program. The Secretary may waive part of the 
non-Federal share of the cost of the project after negotiations if the 
applicant demonstrates that it does not have sufficient resources to 
contribute the entire match.

(Authority: 29 U.S.C. 711(c))



Sec. 386.31  What are the requirements for directing grant funds?

    (a) A grantee must use at least 75 percent of the total award for 
scholarships as defined in Sec. 386.4.

[[Page 479]]

    (b) The Secretary may award grants that use less than 75 percent of 
the total award for scholarships based upon the unique nature of the 
project, such as the establishment of a new training program or long-
term training in an emerging field that does not award degrees or 
certificates.
    (c) For multi-year projects in existence on October 1, 1994, the 
requirements of paragraph (a) of this section do not apply for the 
remainder of the project period.

(Authority: 29 U.S.C. 711(c) and 771a)



Sec. 386.32  What are allowable costs?

    In addition to those allowable costs established in the Education 
Department General Administrative Regulations in 34 CFR 75.530 through 
75.562, the following items are allowable under long-term training 
projects:
    (a) Student stipends.
    (b) Tuition and fees.
    (c) Student travel in conjunction with training assignments.

(Authority: 29 U.S.C. 711(c) and 771a)



Sec. 386.33  What are the requirements for grantees in disbursing
scholarships?

    (a) Before disbursement of scholarship assistance to an individual, 
a grantee--
    (1)(i) Shall obtain documentation that the individual is--
    (A) A U.S. citizen or national; or
    (B) A permanent resident of the Republic of the Marshall Islands, 
Federated States of Micronesia, Republic of Palau, or the Commonwealth 
of the Northern Mariana Islands; or
    (ii) Shall confirm from documentation issued to the individual by 
the U.S. Immigration and Naturalization Service that he or she--
    (A) Is a lawful permanent resident of the United States; or
    (B) Is in the United States for other than a temporary purpose with 
the intention of becoming a citizen or permanent resident; and
    (2) Shall confirm that the applicant has expressed interest in a 
career in clinical practice, administration, supervision, teaching, or 
research in the vocational rehabilitation, supported employment, or 
independent living rehabilitation of individuals with disabilities, 
especially individuals with severe disabilities;
    (3) Shall have documentation that the individual expects to maintain 
or seek employment in a designated State rehabilitation agency or in a 
nonprofit rehabilitation, professional corporation, professional 
practice group, or related agency providing services to individuals with 
disabilities or individuals with severe disabilities under an agreement 
with a designated State agency;
    (4) Shall reduce the scholarship by the amount in which the combined 
awards would be in excess of the cost of attendance, if a scholarship, 
when added to the amount the scholar is to receive for the same academic 
year under title IV of the Higher Education Act, would otherwise exceed 
the scholar's cost of attendance;
    (5) Shall limit scholarship assistance to the individual's cost of 
attendance at the institution for no more than four academic years 
except that the grantee may provide an extension consistent with the 
institution's accommodations under section 504 of the Act if the grantee 
determines that an individual has a disability that seriously affects 
the completion of the course of study; and
    (6) Shall obtain a Certification of Eligibility for Federal 
Assistance from each scholar as prescribed in 34 CFR 75.60, 75.61, and 
75.62.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 771a(b))



Sec. 386.34  What assurances must be provided by a grantee that 
intends to provide scholarships?

    A grantee under this part that intends to grant scholarships for any 
academic year beginning after June 1, 1992, shall provide the following 
assurances before an award is made:
    (a) Requirement for agreement. No individual will be provided a 
scholarship without entering into a written agreement containing the 
terms and conditions required by this section. An individual will sign 
and date the agreement prior to the initial disbursement of scholarship 
funds to the individual for payment of the individual's expenses, such 
as tuition.

[[Page 480]]

    (b) Disclosure to applicants. The terms and conditions of the 
agreement that the grantee enters into with a scholar will be fully 
disclosed in the application for scholarship.
    (c) Form and terms of agreement. Each scholarship agreement with a 
grantee will be in the form and contain the terms that the Secretary 
requires, including at a minimum the following provisions:
    (1) The scholar will--
    (i) Maintain employment--
    (A) In a nonprofit rehabilitation agency or related agency or in a 
State rehabilitation agency or related agency, including a professional 
corporation or professional practice group through which the individual 
has a service arrangement with the designated State agency;
    (B) On a full- or part-time basis; and
    (C) For a period of not less than the full-time equivalent of two 
years for each year for which assistance under this section was 
received, within a period, beginning after the recipient completes the 
training for which the scholarship was awarded, of not more than the sum 
of the number of years required in this paragraph and two additional 
years; and
    (ii) Repay all or part of any scholarship received, plus interest, 
if the individual does not fulfill the requirements of paragraph 
(c)(1(i) of this section, except as the Secretary by regulations may 
provide for repayment exceptions and deferrals.
    (2) The employment obligation in paragraph (c)(1) of this section as 
applied to a part-time scholar will be based on the accumulated academic 
years of training for which the scholarship is received.
    (3) Until the scholar has satisfied the employment obligation 
described in paragraph (c)(1) of this section, the scholar will inform 
the grantee of any change of name, address, or employment status and 
will document employment satisfying the terms of the agreement.
    (4) Subject to the provisions in Sec. 386.41 regarding a deferral 
or exception, when the scholar enters repayment status under Sec. 
386.43(e), the amount of the scholarship that has not been retired 
through eligible employment will constitute a debt owed to the United 
States that--
    (i) Will be repaid by the scholar, including interest and costs of 
collection as provided in Sec. 386.43; and
    (ii) May be collected by the Secretary in accordance with 34 CFR 
part 30, in the case of the scholar's failure to meet the obligation of 
Sec. 386.43.
    (d) Executed agreement. The grantee will provide an original 
executed agreement upon request to the Secretary.
    (e) Standards for satisfactory progress. The grantee will establish, 
publish, and apply reasonable standards for measuring whether a scholar 
is maintaining satisfactory progress in the scholar's course of study. 
The Secretary considers an institution's standards to be reasonable if 
the standards--
    (1) Conform with the standards of satisfactory progress of the 
nationally recognized accrediting agency that accredits the 
institution's program of study, if the institution's program of study is 
accredited by such an agency, and if the agency has those standards;
    (2) For a scholar enrolled in an eligible program who is to receive 
assistance under the Rehabilitation Act, are the same as or stricter 
than the institution's standards for a student enrolled in the same 
academic program who is not receiving assistance under the 
Rehabilitation Act; and
    (3) Include the following elements:
    (i) Grades, work projects completed, or comparable factors that are 
measurable against a norm.
    (ii) A maximum timeframe in which the scholar shall complete the 
scholar's educational objective, degree, or certificate.
    (iii) Consistent application of standards to all scholars within 
categories of students; e.g., full-time, part-time, undergraduates, 
graduate students, and students attending programs established by the 
institution.
    (iv) Specific policies defining the effect of course incompletes, 
withdrawals, repetitions, and noncredit remedial courses on satisfactory 
progress.
    (v) Specific procedures for appeal of a determination that a scholar 
is not making satisfactory progress and for reinstatement of aid.

[[Page 481]]

    (f) Exit certification. The grantee has established policies and 
procedures for receiving written certification from scholars at the time 
of exit from the program acknowledging the following:
    (1) The name of the institution and the number of the Federal grant 
that provided the scholarship.
    (2) The scholar's field of study.
    (3) The number of years the scholar needs to work to satisfy the 
work requirements in Sec. 386.34(c)(1)(i)(C).
    (4) The total amount of scholarship assistance received subject to 
the work-or-repay provision in Sec. 386.34(c)(1)(ii).
    (5) The time period during which the scholar must satisfy the work 
requirements in Sec. 386.34(c)(1)(i)(C).
    (6) All other obligations of the scholar in Sec. 386.34.
    (g) Tracking system. The grantee has established policies and 
procedures to determine compliance of the scholar with the terms of the 
agreement. In order to determine whether a scholar has met the work-or-
repay provision in Sec. 386.34(c)(1)(i), the tracking system must 
include for each employment position maintained by the scholar--
    (1) Documentation of the employer's name, address, dates of the 
scholar's employment, and the position the scholar maintained;
    (2) Documentation of how the employment meets the requirements in 
Sec. 386.34(c)(1)(i); and
    (3) Documentation that the grantee, if experiencing difficulty in 
locating a scholar, has checked with existing tracking systems operated 
by alumni organizations.
    (h) Reports. The grantee shall make reports to the Secretary that 
are necessary to carry out the Secretary's functions under this part.
    (i) Records. The grantee shall maintain the information obtained in 
paragraphs (g) and (h) of this section for a period of time equal to the 
time required to fulfill the obligation under Sec. 386.34(c)(1)(i)(C).

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 771a(b))



Sec. 386.35  What information must be provided by a grantee that is
an institution of higher education to assist designated State 

agencies?

    A grantee that is an institution of higher education provided 
assistance under this part shall cooperate with the following requests 
for information from a designated State agency:
    (a) Information required by section 101(a)(7) of the Act which may 
include, but is not limited to--
    (1) The number of students enrolled by the grantee in rehabilitation 
training programs; and
    (2) The number of rehabilitation professionals trained by the 
grantee who graduated with certification or licensure, or with 
credentials to qualify for certification or licensure, during the past 
year.
    (b) Information on the availability of rehabilitation courses 
leading to certification or licensure, or the credentials to qualify for 
certification or licensure, to assist State agencies in the planning of 
a program of staff development for all classes of positions that are 
involved in the administration and operation of the State agency's 
vocational rehabilitation program.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 771a)



           Subpart E_What Conditions Must Be Met by a Scholar?



Sec. 386.40  What are the requirements for scholars?

    A scholar--
    (a) Shall receive the training at the educational institution or 
agency designated in the scholarship; and
    (b) Shall not accept payment of educational allowances from any 
other Federal, State, or local public or private nonprofit agency if 
that allowance conflicts with the individual's obligation under Sec. 
386.33(a)(4) or Sec. 386.34(c)(1).
    (c) Shall enter into a written agreement with the grantee, before 
starting training, that meets the terms and conditions required in Sec. 
386.34;
    (d) Shall be enrolled in a course of study leading to a certificate 
or degree in one of the fields designated in Sec. 386.1(b); and

[[Page 482]]

    (e) Shall maintain satisfactory progress toward the certificate or 
degree as determined by the grantee.

(Authority: 29 U.S.C. 711(c) and 771a(b))



Sec. 386.41  Under what circumstances does the Secretary grant a 
deferral or exception to performance or repayment under a 

scholarship agreement?

    A deferral or repayment exception to the requirements of Sec. 
386.34(c)(1) may be granted, in whole or part, by the Secretary as 
follows:
    (a) Repayment is not required if the scholar--
    (1) Is unable to continue the course of study or perform the work 
obligation because of a disability that is expected to continue 
indefinitely or result in death; or
    (2) Has died.
    (b) Repayment of a scholarship may be deferred during the time the 
scholar is--
    (1) Engaging in a full-time course of study at an institution of 
higher education;
    (2) Serving, not in excess of three years, on active duty as a 
member of the armed services of the United States;
    (3) Serving as a volunteer under the Peace Corps Act;
    (4) Serving as a full-time volunteer under title I of the Domestic 
Volunteer Service Act of 1973;
    (5) Temporarily totally disabled, for a period not to exceed three 
years; or
    (6) Unable to secure employment as required by the agreement by 
reason of the care provided to a disabled spouse for a period not to 
exceed 12 months.

(Authority: 29 U.S.C. 771(c) and 771a(b))



Sec. 386.42  What must a scholar do to obtain a deferral or exception
to performance or repayment under a scholarship agreement?

    To obtain a deferral or exception to performance or repayment under 
a scholarship agreement, a scholar shall provide the following:
    (a) Written application. A written application must be made to the 
Secretary to request a deferral or an exception to performance or 
repayment of a scholarship.
    (b) Documentation. (1) Documentation must be provided to 
substantiate the grounds for a deferral or exception.
    (2) Documentation necessary to substantiate an exception under Sec. 
386.41(a)(1) or a deferral under Sec. 386.41(b)(5) must include a sworn 
affidavit from a qualified physician or other evidence of disability 
satisfactory to the Secretary.
    (3) Documentation to substantiate an exception under Sec. 
386.41(a)(2) must include a death certificate or other evidence 
conclusive under State law.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 771a)



Sec. 386.43  What are the consequences of a scholar's failure to meet
the terms and conditions of a scholarship agreement?

    In the event of a failure to meet the terms and conditions of a 
scholarship agreement or to obtain a deferral or an exception as 
provided in Sec. 386.41, the scholar shall repay all or part of the 
scholarship as follows:
    (a) Amount. The amount of the scholarship to be repaid is 
proportional to the employment obligation not completed.
    (b) Interest rate. The Secretary charges the scholar interest on the 
unpaid balance owed in accordance with 31 U.S.C. 3717.
    (c) Interest accrual. (1) Interest on the unpaid balance accrues 
from the date the scholar is determined to have entered repayment status 
under paragraph (e) of this section.
    (2) Any accrued interest is capitalized at the time the scholar's 
repayment schedule is established.
    (3) No interest is charged for the period of time during which 
repayment has been deferred under Sec. 386.41.
    (d) Collection costs. Under the authority of 31 U.S.C. 3717, the 
Secretary may impose reasonable collection costs.
    (e) Repayment status. A scholar enters repayment status on the first 
day of the first calendar month after the earliest of the following 
dates, as applicable:
    (1) The date the scholar informs the Secretary he or she does not 
plan to fulfill the employment obligation under the agreement.

[[Page 483]]

    (2) Any date when the scholar's failure to begin or maintain 
employment makes it impossible for that individual to complete the 
employment obligation within the number of years required in Sec. 
386.34(c)(1).
    (f) Amounts and frequency of payment. The scholar shall make 
payments to the Secretary that cover principal, interest, and collection 
costs according to a schedule established by the Secretary.

(Authority: 29 U.S.C. 711(c) and 771a(b))



PART 387_EXPERIMENTAL AND INNOVATIVE TRAINING--Table of Contents



                            Subpart A_General

Sec.
387.1 What is the Experimental and Innovative Training Program?
387.2 Who is eligible for assistance under this program?
387.3 What regulations apply to this program?
387.4 What definitions apply to this program?

Subpart B_What Kinds of Projects Does the Department of Education Assist 
                           Under This Program?

387.10 What types of projects are authorized under this program?

Subpart C [Reserved]

             Subpart D_How Does the Secretary Make a Grant?

387.30 What additional selection criteria are used under this program?

           Subpart E_What Conditions Must Be Met by a Grantee?

387.40 What are the matching requirements?
387.41 What are the allowable costs?

    Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.

    Source: 45 FR 86383, Dec. 30, 1980, unless otherwise noted.



                            Subpart A_General



Sec. 387.1  What is the Experimental and Innovative Training Program?

    This program is designed--
    (a) To develop new types of training programs for rehabilitation 
personnel and to demonstrate the effectiveness of these new types of 
training programs for rehabilitation personnel in providing 
rehabilitation services to individuals with disabilities; and
    (b) To develop new and improved methods of training rehabilitation 
personnel so that there may be a more effective delivery of 
rehabilitation services by State and other rehabilitation agencies.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)

[45 FR 86383, Dec. 30, 1980, as amended at 53 FR 17147, May 13, 1988; 59 
FR 8347, Feb. 18, 1994]



Sec. 387.2  Who is eligible for assistance under this program?

    Those agencies and organizations eligible for assistance under this 
program are described in 34 CFR 385.2.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)



Sec. 387.3  What regulations apply to this program?

    (a) 34 CFR part 385 (Rehabilitation Training); and
    (b) The regulations in this part 387.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)



Sec. 387.4  What definitions apply to this program?

    The definitions in 34 CFR part 385 apply to this program.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))



Subpart B_What Kinds of Projects Does the Department of Education Assist 
                           Under This Program?



Sec. 387.10  What types of projects are authorized under this program?

    The Experimental and Innovative Training Program supports time-
limited pilot projects through which new types of rehabilitation workers 
may be trained or through which innovative methods of training 
rehabilitation workers may be demonstrated.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)

Subpart C [Reserved]

[[Page 484]]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 387.30  What additional selection criteria are used under this
program?

    In addition to the criteria in 34 CFR 385.31(c), the Secretary uses 
the following additional selection criteria to evaluate an application:
    (a) Relevance to State-Federal rehabilitation service program. (1) 
The Secretary reviews each application for information that shows that 
the proposed project appropriately relates to the mission of the State-
Federal rehabilitation service program.
    (2) The Secretary looks for information that shows that the project 
can be expected either--
    (i) To increase the supply of trained personnel available to public 
and private agencies involved in the rehabilitation of individuals with 
disabilities; or
    (ii) To maintain and improve the skills and quality of 
rehabilitation workers.
    (b) Nature and scope of curriculum. (1) The Secretary reviews each 
application for information that demonstrates the adequacy and scope of 
the proposed curriculum.
    (2) The Secretary looks for information that shows that--
    (i) The scope and nature of the training content can be expected to 
enable the achievement of the established project objectives of the 
training project;
    (ii) The curriculum and teaching methods provide for an integration 
of theory and practice relevant to the educational objectives of the 
program;
    (iii) There is evidence of educationally focused practicum or other 
field experiences in settings that assure student involvement in the 
provision of vocational rehabilitation or independent living 
rehabilitation services to individuals with disabilities, especially 
individuals with severe disabilities; and
    (iv) The didactic coursework includes student exposure to vocational 
rehabilitation or independent living rehabilitation processes, concepts, 
programs, and services.

(Authority: 29 U.S.C. 711(c) and 774)

[62 FR 10405, Mar. 6, 1997]



           Subpart E_What Conditions Must Be Met by a Grantee?



Sec. 387.40  What are the matching requirements?

    A grantee must contribute to the cost of a project under this 
program in an amount satisfactory to the Secretary. The part of the 
costs to be borne by the grantee is determined by the Secretary at the 
time of the grant award.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 774)



Sec. 387.41  What are allowable costs?

    In addition to those allowable costs established under EDGAR 
Sec. Sec. 75.530-75.562, the following items are allowable under 
experimental and innovative training projects--
    (a) Student stipends;
    (b) Tuition and fees; and
    (c) Student travel in conjunction with training assignments.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 774)



PART 388_STATE VOCATIONAL REHABILITATION UNIT IN-SERVICE
TRAINING--Table of Contents



                            Subpart A_General

Sec.
388.1 What is the State Vocational Rehabilitation Unit In-Service 
          Training program?
388.2 Who is eligible for an award?
388.3 What types of projects are authorized?
388.4 What activities may the Secretary fund?
388.5 What regulations apply?
388.6 What definitions apply?

Subpart B [Reserved]

             Subpart C_How Does the Secretary Make an Award?

388.20 What additional selection criterion is used under this program?
388.21 How does the Secretary determine the amount of a basic State 
          award?

[[Page 485]]

388.22 What priorities does the Secretary consider in making an award?

          Subpart D_What Conditions Must Be Met After an Award?

388.30 What are the matching requirements?
388.31 What are the allowable costs?

    Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.

    Source: 59 FR 40178, Aug. 5, 1994, unless otherwise noted.



                            Subpart A_General



Sec. 388.1  What is the State Vocational Rehabilitation Unit In-Service
Training program?

    This program is designed to support projects for training State 
vocational rehabilitation unit personnel in program areas essential to 
the effective management of the unit's program of vocational 
rehabilitation services or in skill areas that will enable staff 
personnel to improve their ability to provide vocational rehabilitation 
services leading to employment outcomes for individuals with 
disabilities. The State Vocational Rehabilitation Unit In-Service 
Training program responds to needs identified in the comprehensive 
system of personnel development in section 101(a)(7) of the Act. The 
program may include training designed--
    (a) To address recruitment and retention of qualified rehabilitation 
professionals;
    (b) To provide for succession planning;
    (c) To provide for leadership development and capacity building; and
    (d) For fiscal year 1994, to provide training on the amendments to 
the Rehabilitation Act of 1973 made by the Rehabilitation Act Amendments 
of 1992.

(Authority: 29 U.S.C. 771a(g)(3))



Sec. 388.2  Who is eligible for an award?

    Each designated State agency is eligible to receive an award under 
the basic State award program described in Sec. 388.21. If a designated 
State agency does not apply for an award during an announced 
competition, no funds may be made available for in-service training of 
the staff of that designated State agency under this program until there 
is a new competition for funding. At least 15 percent of the sums 
appropriated to carry out section 302 of the Act must be allocated to 
designated State agencies to be used, directly or indirectly, for 
projects for in-service training of rehabilitation personnel.

(Authority: 29 U.S.C. 771a(g)(3))



Sec. 388.3  What types of projects are authorized?

    State vocational rehabilitation unit in-service training projects 
are concerned with the staff development and training of State 
vocational rehabilitation unit personnel in order to ensure an improved 
level of competence in serving State unit clients and to assist in 
expanding and improving vocational rehabilitation services for 
individuals with disabilities, especially those with severe 
disabilities, to ensure employment outcomes.

(Authority: 29 U.S.C. 770 and 771a)



Sec. 388.4  What activities may the Secretary fund?

    (a) Training activities supported under a State vocational 
rehabilitation unit in-service training grant focus primarily on program 
areas that are essential to the State unit's operation or on skill areas 
that will enable staff personnel to improve their ability to function on 
their job, or prepare for positions of greater responsibility within the 
unit, or to correct deficiencies identified in the State program. 
Projects may--
    (1) Address recruitment and retention of qualified rehabilitation 
professionals;
    (2) Provide for succession planning;
    (3) Provide for leadership development and capacity building; and
    (4) For fiscal year 1994, provide training on the amendments to the 
Rehabilitation Act of 1973 made by the Rehabilitation Act Amendments of 
1992.
    (b) Training methods may include--
    (1) The development of State unit training institutes related to the 
specific aspects of State unit administration or service provision;
    (2) Group employee training at courses conducted in cooperation with 
or by an educational institution;

[[Page 486]]

    (3) Individualized directed study in priority areas of State unit 
service or practice;
    (4) Employee access to current agency instructional resources for 
books, films, videos, tapes, and other human resource development 
resources;
    (5) Distance learning through telecommunications; and
    (6) Dissemination and information sharing with other designated 
State agencies.

(Authority: 29 U.S.C. 770 and 771a)



Sec. 388.5  What regulations apply?

    The following regulations apply to the State Vocational 
Rehabilitation Unit In-Service Training program:
    (a) The regulations in this part 388.
    (b) The regulations in 34 CFR part 385.

(Authority: 29 U.S.C. 770 and 771a)



Sec. 388.6  What definitions apply?

    The definitions in 34 CFR part 385 apply to this program.

(Authority: 29 U.S.C. 711(c) and 771(a)(g)(3))

Subpart B [Reserved]



             Subpart C_How Does the Secretary Make an Award?



Sec. 388.20  What additional selection criterion is used under this 
program?

    In addition to the selection criteria in 34 CFR 385.31(c), the 
Secretary uses the following additional selection criteria to evaluate 
an application:
    (a) Evidence of need. (1) The Secretary reviews each application for 
information that shows that the need for the in-service training has 
been adequately justified.
    (2) The Secretary looks for information that shows--
    (i) How the proposed project relates to the mission of the State-
Federal rehabilitation service program and can be expected to improve 
the competence of all State vocational rehabilitation personnel in 
providing vocational rehabilitation services to individuals with 
disabilities that will result in employment outcomes or otherwise 
contribute to more effective management of the State unit program;
    (ii) That the State unit in-service training plan responds to needs 
identified in their training needs assessment and the proposed training 
relates to the unit's State plan, particularly the requirements in 
section 101(a)(7) of the Rehabilitation Act for each designated State 
unit to develop a comprehensive system of personnel development;
    (iii) The need for in-service training methods and materials that 
will improve the effectiveness of services to individuals with 
disabilities assisted under the Rehabilitation Act and ensure employment 
outcomes; and
    (iv) The State has conducted a needs assessment of the in-service 
training needs for all of the State unit employees.
    (b) [Reserved]

(Authority: 29 U.S.C. 711(c), 770, and 771a)

[62 FR 10405, Mar. 6, 1997]



Sec. 388.21  How does the Secretary determine the amount of a basic 
State award?

    (a) The Secretary distributes no more than 80 percent of the funds 
available for these awards as follows:
    (1) For each competition the Secretary will determine a minimum 
score based upon the selection criteria in Sec. 388.20 that an 
applicant must receive in order for its application to be approved by 
the Secretary.
    (2) Each designated State agency that submits an approved 
application receives an amount based upon a formula that provides each 
approved project an amount equal to the percentage that the designated 
State agency's staff, as reported by total person years to the Secretary 
on Form RSA-2, represents of all staff of all designated State agencies, 
as reported to the Secretary on Form RSA-2 for the most recent reporting 
period. A copy of Form RSA-2 may be obtained from the Department of 
Education, 400 Maryland Avenue, S.W., 3211 Switzer Building, Washington, 
D.C. 22204-2735.
    (3) No designated State agency with an approved project receives 
less than one-third of one percent of the sums made available for the 
fiscal year.
    (b) After determining a designated State agency's award under 
paragraph

[[Page 487]]

(a) of this section, the Secretary reserves the remaining funds to be 
allocated based on the quality of the application as determined by 
competitive reviews conducted by the Department using the criteria in 
Sec. 388.20 and the priorities in Sec. 388.22.
    (c) Prior to award, negotiations may be conducted with applicants to 
resolve any problems or weaknesses in the application identified by the 
review process.

(Authority: 29 U.S.C. 711(c), 770, and 771a)



Sec. 388.22  What priorities does the Secretary consider in making an
award?

    (a) The Secretary reserves funds to support some or all of the 
proposals that have been awarded a rating of 80 points or more under the 
criteria described in Sec. 388.20.
    (b) In making a final selection of proposals to support under this 
program, the Secretary considers the extent to which proposals have 
exceeded a rating of 80 points and address one or more of the following 
priorities announced in the application notice:
    (1) Development and dissemination of model in-service training 
materials and practices. The proposed project demonstrates an effective 
plan to develop and disseminate information on its State Vocational 
Rehabilitation In-Service Training program, including the identification 
of training approaches and successful practices, in order to permit the 
replication of these programs by other State vocational rehabilitation 
units.
    (2) Distance education. The proposed project demonstrates innovative 
strategies for training State vocational rehabilitation unit personnel 
through distance education methods, such as interactive audio, video, 
computer technologies, or existing telecommunications networks.
    (3) Enhanced employment outcomes for specific populations. The 
proposed project supports specialized training in the provision of 
vocational rehabilitation or related services to individuals with 
disabilities to increase the rehabilitation rate into competitive 
employment for all individuals or specified target groups.

(Authority: 29 U.S.C. 711(c), 770, and 771a)



          Subpart D_What Conditions Must Be Met After an Award?



Sec. 388.30  What are the matching requirements?

    (a) The Secretary may make grants for paying part of the costs of 
projects under this program. Except as provided for in paragraphs (b) 
and (c) of this section, the grantee shall provide at least 10 percent 
of the total costs of the project.
    (b) Grantees designated in Sec. 388.21(a)(3) to receive a minimum 
share of one third of one percent of the sums made available for the 
fiscal year shall provide at least four percent of the total costs of 
the project.

(Authority: 29 U.S.C. 711(c), 770, and 771a)



Sec. 388.31  What are the allowable costs?

    In addition to those allowable costs established in 34 CFR 75.530 
through 75.562 (Education Department General Administrative 
Regulations), the following items are allowable under State vocational 
rehabilitation unit in-service training projects:
    (a) Trainee per diem costs.
    (b) Trainee travel in connection with a training course.
    (c) Trainee tuition and fees.
    (d) Telecommunications and technology fees.

(Authority: 29 U.S.C. 711(c), 770, and 771a)



PART 389_REHABILITATION CONTINUING EDUCATION PROGRAMS--Table of Contents



                            Subpart A_General

Sec.
389.1 What is the Rehabilitation Continuing Education Program?
389.2 Who is eligible for assistance under this program?
389.3 What regulations apply to this program?

[[Page 488]]

389.4 What definitions apply to this program?

Subpart B_What Kinds of Projects Does the Department of Education Assist 
                           Under This Program?

389.10 What types of projects are authorized under this program?

Subpart C [Reserved]

             Subpart D_How Does the Secretary Make a Grant?

389.30 What additional selection criterion is used under this program?

           Subpart E_What Conditions Must Be Met by a Grantee?

389.40 What are the matching requirements?
389.41 What are allowable costs?

    Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.

    Source: 45 FR 86385, Dec. 30, 1980, unless otherwise noted.



                            Subpart A_General



Sec. 389.1  What is the Rehabilitation Continuing Education Program?

    This program is designed to support training centers that serve 
either a Federal region or another geographical area and provide for a 
broad integrated sequence of training activities that focus on meeting 
recurrent and common training needs of employed rehabilitation personnel 
throughout a multi-State geographical area.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)



Sec. 389.2  Who is eligible for assistance under this program?

    Those agencies and organizations eligible for assistance under this 
program are described in 34 CFR 385.2.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)



Sec. 389.3  What regulations apply to this program?

    The following regulations apply to this program--
    (a) 34 CFR part 385 (Rehabilitation Training); and
    (b) The regulations in this part 389.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)



Sec. 389.4  What definitions apply to this program?

    The definitions in 34 CFR part 385 apply to this program.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))



Subpart B_What Kinds of Projects Does the Department of Education Assist 
                           Under This Program?



Sec. 389.10  What types of projects are authorized under this program?

    Rehabilitation Continuing Education Programs--
    (a) Train newly employed State agency staff at the administrative, 
supervisory, professional, subprofessional, or clerical levels in order 
to develop needs skills for effective agency performance;
    (b) Provide training opportunities for experienced State agency 
personnel at all levels of State agency practice to upgrade their skills 
and to develop mastery of new program developments dealing with 
significant issues, priorities and legislative thrusts of the State/
Federal vocational rehabilitation program; and
    (c) Develop and conduct training programs for staff of--
    (1) Private rehabilitation agencies and facilities which cooperate 
with State vocational rehabilitation units in providing vocational 
rehabilitation and other rehabilitation services;
    (2) Centers for independent living; and
    (3) Client assistance programs.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)

[45 FR 86385, Dec. 30, 1980, as amended at 50 FR 38631, Sept. 23, 1985]

Subpart C [Reserved]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 389.30  What additional selection criterion is used under this program?

    In addition to the criteria in 34 CFR 385.31(c), the Secretary uses 
the following additional selection criterion to evaluate an application:
    (a) Relevance to State-Federal rehabilitation service program. (1) 
The Secretary

[[Page 489]]

reviews each application for information that shows that the proposed 
project appropriately relates to the mission of the State-Federal 
rehabilitation service programs.
    (2) The Secretary reviews each application for information that 
shows that the proposed project includes an assessment of the potential 
of existing programs within the geographical area (including State 
vocational rehabilitation unit in-service training) to meet the needs 
for which support is sought.
    (3) The Secretary looks for information that shows that the proposed 
project can be expected to improve the competence of professional and 
other personnel in the rehabilitation agencies serving individuals with 
severe disabilities.
    (b) [Reserved]

(Authority: 29 U.S.C. 711(c))

[62 FR 10405, Mar. 6, 1997]



           Subpart E_What Conditions Must Be Met by a Grantee?



Sec. 389.40  What are the matching requirements?

    A grantee must contribute to the cost of a project under this 
program in an amount satisfactory to the Secretary. The part of the cost 
to be borne by the grantee is determined by the Secretary at the time of 
the grant award.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 774)



Sec. 389.41  What are allowable costs?

    In addition to those allowable costs established under EDGAR 
Sec. Sec. 75.530-75.562, the following items are allowable under 
Rehabilitation Continuing Education programs--
    (a) Trainee per diem costs;
    (b) Trainee travel in connection with a training course;
    (c) Trainee tuition and fees; and
    (d) Special accommodations for trainees with handicaps.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 774)

[45 FR 86385, Dec. 30, 1980, as amended at 53 FR 17147, May 13, 1988]



PART 390_REHABILITATION SHORT-TERM TRAINING--Table of Contents



                            Subpart A_General

Sec.
390.1 What is the Rehabilitation Short-Term Training Program?
390.2 Who is eligible for assistance under this program?
390.3 What regulations apply to this program?
390.4 What definitions apply to this program?

Subpart B_What Kinds of Projects Does the Department of Education Assist 
                           Under This Program?

390.10 What types of projects are authorized under this program?

Subpart C [Reserved]

             Subpart D_How Does the Secretary Make a Grant?

390.30 What additional selection criterion is used under this program?

           Subpart E_What Conditions Must Be Met by a Grantee?

390.40 What are the matching requirements?
390.41 What are allowable costs?

    Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.

    Source: 45 FR 86386, Dec. 30, 1980, unless otherwise noted.



                            Subpart A_General



Sec. 390.1  What is the Rehabilitation Short-Term Training program?

    This program is designed for the support of special seminars, 
institutes, workshops, and other short-term courses in technical matters 
relating to the vocational, medical, social, and psychological 
rehabilitation programs, independent living services programs, and 
client assistance programs.

(Authority: Secs. 12(a)(2) and 302 of the Act; 29 U.S.C. 711(a)(2) and 
774)

[59 FR 8348, Feb. 18, 1994]

[[Page 490]]



Sec. 390.2  Who is eligible for assistance under this program?

    Those agencies and organizations eligible for assistance under this 
program are described in 34 CFR 385.2.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)



Sec. 390.3  What regulations apply to this program?

    (a) 34 CFR part 385 (Rehabilitation Training); and
    (b) The regulations in this part 390.

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)



Sec. 390.4  What definitions apply to this program?

    The definitions in 34 CFR part 385 apply to this program.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))



Subpart B_What Kinds of Projects Does the Department of Education Assist 
                           Under This Program?



Sec. 390.10  What types of projects are authorized under this program?

    (a) Projects under this program are designed to provide short-term 
training and technical instruction in areas of special significance to 
the vocational, medical, social, and psychological rehabilitation 
programs, supported employment programs, independent living services 
programs, and client assistance programs.
    (b) Short-term training projects may be of regional or national 
scope.
    (c) Conferences and meetings in which training is not the primary 
focus may not be supported under this program.

(Authority: Secs. 12(a)(2) and 302 of the Act; 29 U.S.C. 711(a)(2) and 
774)

[45 FR 86386, Dec. 30, 1980, as amended at 59 FR 8348, Feb. 18, 1994]

Subpart C [Reserved]



             Subpart D_How Does the Secretary Make a Grant?



Sec. 390.30  What additional selection criterion is used under this
program?

    In addition to the criteria in 34 CFR 385.31(c), the Secretary uses 
the following additional selection criterion to evaluate an application:
    (a) Relevance to State-Federal rehabilitation service program. (1) 
The Secretary reviews each application for information that shows that 
the proposed project appropriately relates to the mission of the State-
Federal rehabilitation service programs.
    (2) The Secretary looks for information that shows that the proposed 
project can be expected to improve the skills and competence of--
    (i) Personnel engaged in the administration or delivery of 
rehabilitation services; and
    (ii) Others with an interest in the delivery of rehabilitation 
services.
    (b) [Reserved]

(Authority: 29 U.S.C. 711(c) and 774)

[62 FR 10406, Mar. 6, 1997]



           Subpart E_What Conditions Must Be Met by a Grantee?



Sec. 390.40  What are the matching requirements?

    A grantee must contribute to the cost of a project under this 
program in an amount satisfactory to the Secretary. The part of the 
costs to be borne by the grantee is determined by the Secretary at the 
time of the award.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 774)



Sec. 390.41  What are allowable costs?

    (a) In addition to those allowable costs established in EDGAR 
Sec. Sec. 75.530-75.562, the following items are allowable under short-
term training projects:
    (1) Trainee per diem costs;
    (2) Trainee travel in connection with a training course;
    (3) Trainee registration fees; and
    (4) Special accommodations for trainees with handicaps.
    (b) The preparation of training materials may not be supported under 
a

[[Page 491]]

short-term training grant unless the materials are essential for the 
conduct of the seminar, institute, workshop or other short course for 
which the grant support has been provided.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 774)

[45 FR 86386, Dec. 30, 1980, as amended at 53 FR 17148, May 13, 1988]



PART 395_VENDING FACILITY PROGRAM FOR THE BLIND ON FEDERAL AND 
OTHER PROPERTY--Table of Contents



                          Subpart A_Definitions

Sec.
395.1 Terms.

                  Subpart B_The State Licensing Agency

395.2 Application for designation as a State licensing agency; general.
395.3 Application for designation as State licensing agency; content.
395.4 State rules and regulations.
395.5 Approval of application for designation as State licensing agency.
395.6 Vendor ownership of vending facilities.
395.7 The issuance and conditions of licenses.
395.8 Distribution and use of income from vending machines on Federal 
          property.
395.9 The setting aside of funds by the State licensing agency.
395.10 The maintenance and replacement of vending facility equipment.
395.11 Training program for blind individuals.
395.12 Access to program and financial information.
395.13 Evidentiary hearings and arbitration of vendor complaints.
395.14 The State Committee of Blind Vendors.
395.15 Use of nominee agreements.
395.16 Permit for the establishment of vending facilities.
395.17 Suspension of designation as State licensing agency.

                  Subpart C_Federal Property Management

395.30 The location and operation of vending facilities for blind 
          vendors on Federal property.
395.31 Acquisition and occupation of Federal property.
395.32 Collection and distribution of vending machine income from 
          vending machines on Federal property.
395.33 Operation of cafeterias by blind vendors.
395.34 Application for permits.
395.35 Terms of permit.
395.36 Enforcement procedures.
395.37 Arbitration of State licensing agency complaints.
395.38 Reports.

    Authority: Sec. 2, 49 Stat. 1559, as amended; 20 U.S.C. 107a.

    Source: 42 FR 15802, Mar. 23, 1977, unless otherwise noted. 
Redesignated at 45 FR 77369, Nov. 21, 1980, and further redesignated at 
46 FR 5417, Jan. 19, 1981.



                          Subpart A_Definitions



Sec. 395.1  Terms.

    Unless otherwise indicated in this part, the terms below are defined 
as follows:
    (a) Act means the Randolph-Sheppard Vending Stand Act (Pub. L. 74-
732), as amended by Pub. L. 83-565 and Pub. L. 93-516, 20 U.S.C., ch. 
6A, Sec 107.
    (b) Blind licensee means a blind person licensed by the State 
licensing agency to operate a vending facility on Federal or other 
property.
    (c) Blind person means a person who, after examination by a 
physician skilled in diseases of the eye or by an optometrist, whichever 
such person shall select, has been determined to have
    (1) Not more than 20/200 central visual acuity in the better eye 
with correcting lenses, or
    (2) An equally disabling loss of the visual field as evidenced by a 
limitation to the field of vision in the better eye to such a degree 
that its widest diameter subtends an angle of no greater than 20[deg].
    (d) Cafeteria means a food dispensing facility capable of providing 
a broad variety of prepared foods and beverages (including hot meals) 
primarily through the use of a line where the customer serves himself 
from displayed selections. A cafeteria may be fully automatic or some 
limited waiter or waitress service may be available and provided within 
a cafeteria and table or booth seating facilities are always provided.
    (e) Secretary means the Secretary of the Rehabilitation Services 
Administration.
    (f) Direct competition means the presence and operation of a vending 
machine or a vending facility on the same premises as a vending facility 
operated

[[Page 492]]

by a blind vendor, except that vending machines or vending facilities 
operated in areas serving employees the majority of whom normally do not 
have direct access (in terms of uninterrupted ease of approach and the 
amount of time required to patronize the vending facility) to the 
vending facility operated by a blind vendor shall not be considered to 
be in direct competition with the vending facility operated by a blind 
vendor.
    (g) Federal property means any building, land, or other real 
property owned, leased, or occupied by any department, agency or 
instrumentality of the United States (including the Department of 
Defense and the U.S. Postal Service), or any other instrumentality 
wholly owned by the United States, or by any department or agency of the 
District of Columbia or any territory or possession of the United 
States.
    (h) Individual location installation or facility means a single 
building or a self-contained group of buildings. In order for two or 
more buildings to be considered to be a self-contained group of 
buildings, such buildings must be located in close proximity to each 
other, and a majority of the Federal employees housed in any such 
building must regularly move from one building to another in the course 
of official business during normal working days.
    (i) License means a written instrument issued by the State licensing 
agency to a blind person, authorizing such person to operate a vending 
facility on Federal or other property.
    (j) Management services means supervision, inspection, quality 
control, consultation, accounting, regulating, in-service training, and 
other related services provided on a systematic basis to support and 
improve vending facilities operated by blind vendors. Management 
services does not include those services or costs which pertain to the 
on-going operation of an individual facility after the initial 
establishment period.
    (k) Net proceeds means the amount remaining from the sale of 
articles or services of vending facilities, and any vending machine or 
other income accruing to blind vendors after deducting the cost of such 
sale and other expenses (excluding set-aside charges required to be paid 
by such blind vendors).
    (l) Nominee means a nonprofit agency or organization designated by 
the State licensing agency through a written agreement to act as its 
agent in the provision of services to blind licensees under the State's 
vending facility program.
    (m) Normal working hours means an eight hour work period between the 
approximate hours of 8:00 a.m., to 6:00 p.m., Monday through Friday.
    (n) Other property means property which is not Federal property and 
on which vending facilities are established or operated by the use of 
any funds derived in whole or in part, directly or indirectly, from the 
operation of vending facilities on any Federal property.
    (o) Permit means the official approval given a State licensing 
agency by a department, agency or instrumentality in control of the 
maintenance, operation, and protection of Federal property, or person in 
control of other property, whereby the State licensing agency is 
authorized to establish a vending facility.
    (p) Program means all the activities of the licensing agency under 
this part related to vending facilities on Federal and other property.
    (q) Satisfactory site means an area fully accessible to vending 
facility patrons and having:
    (1) Effective on March 23, 1977 a minimum of 250 square feet 
available for the vending and storage of articles necessary for the 
operation of a vending facility; and
    (2) Sufficient electrical plumbing, heating, and ventilation outlets 
for the location and operation of a vending facility in accordance with 
applicable health laws and building codes.
    (r) Secretary means the Secretary of Education.
    (s) Set-aside funds means funds which accrue to a State licensing 
agency from an assessment against the net proceeds of each vending 
facility in the State's vending facility program and any income from 
vending machines on Federal property which accrues to the State 
licensing agency.
    (t) State means a State, territory, possession, Puerto Rico, or the 
District of Columbia.

[[Page 493]]

    (u) State vocational rehabilitation agency means that agency in the 
State providing vocational rehabilitation services to the blind as the 
sole State agency under a State plan for vocational rehabilitation 
services approved pursuant to the provisions of the Rehabilitation Act 
of 1973 (29 U.S.C., ch. 16).
    (v) State licensing agency means the State agency designated by the 
Secretary under this part to issue licenses to blind persons for the 
operation of vending facilities on Federal and other property.
    (w) United States includes the several States, territories, and 
possessions of the United States, Puerto Rico, and the District of 
Columbia.
    (x) Vending facility means automatic vending machines, cafeterias, 
snack bars, cart service, shelters, counters, and such other appropriate 
auxiliary equipment which may be operated by blind licensees and which 
is necessary for the sale of newspapers, periodicals, confections, 
tobacco products, foods, beverages, and other articles or services 
dispensed automatically or manually and prepared on or off the premises 
in accordance with all applicable health laws, and including the vending 
or exchange of changes for any lottery authorized by State law and 
conducted by an agency of a State within such State.
    (y) Vending machine, for the purpose of assigning vending machine 
income under this part, means a coin or currency operated machine which 
dispenses articles or services, except that those machines operated by 
the United States Postal Service for the sale of postage stamps or other 
postal products and services, machines providing services of a 
recreational nature, and telephones shall not be considered to be 
vending machines.
    (z) Vending machine income means receipts (other than those of a 
blind vendor) from vending machine operations on Federal property, after 
deducting the cost of goods sold (including reasonable service and 
maintenance costs in accordance with customary business practices of 
commercial vending concerns, where the machines are operated, serviced, 
or maintained by, or with the approval of, a department, agency, or 
instrumentality of the United States, or commissions paid (other than to 
a blind vendor) by a commercial vending concern which operates, 
services, and maintains vending machines on Federal property for, or 
with the approval of, a department, agency, or instrumentality of the 
United States.
    (aa) Vendor means a blind licensee who is operating a vending 
facility on Federal or other property.
    (bb) Vocational rehabilitation services means those services as 
defined in Sec. 1361.1(ee) (1) and (2) of this chapter.



                  Subpart B_The State Licensing Agency



Sec. 395.2  Application for designation as a State licensing agency; 
general.

    (a) An application for designation as a State licensing agency may 
be submitted only by the State vocational rehabilitation agency 
providing vocational rehabilitation services to the blind under an 
approved State plan for vocational rehabilitation services under part 
1361 of this chapter.
    (b) Such application shall be:
    (1) Submitted in writing to the Secretary;
    (2) Approved by the chief executive of the State; and
    (3) Transmitted over the signature of the administrator of the State 
agency making application.



Sec. 395.3  Application for designation as State licensing agency; content.

    (a) An application for designation as a State licensing agency under 
Sec. 395.2 shall indicate:
    (1) The State licensing agency's legal authority to administer the 
program, including its authority to promulgate rules and regulations to 
govern the program;
    (2) The State licensing agency's organization for carrying out the 
program, including a description of the methods for coordinating the 
State's vending facility program and the State's vocational 
rehabilitation program, with special reference to the provision of such 
post-employment services necessary to assure that the maximum vocational 
potential of each blind vendor is achieved;

[[Page 494]]

    (3) The policies and standards to be employed in the selection of 
suitable locations for vending facilities;
    (4) The methods to be used to ensure the continuing and active 
participation of the State Committee of Blind Vendors in matters 
affecting policy and program development and administration.
    (5) The policies to be followed in making suitable vending facility 
equipment and adequate initial stock available to a vendor;
    (6) The sources of funds for the administration of the program;
    (7) The policies and standards governing the relationship of the 
State licensing agency to the vendors, including their selection, 
duties, supervision, transfer, promotion, financial participation, 
rights to a full evidentiary hearing concerning a State licensing agency 
action, and, where necessary, rights for the submittal of complaints to 
an arbitration panel;
    (8) The methods to be followed in providing suitable training, 
including on-the-job training and, where appropriate, upward mobility 
training, to blind vendors;
    (9) The arrangements made or contemplated, if any, for the 
utilization of the services of any nominee under Sec. 395.15; the 
agreements therefor and the services to be provided; the procedures for 
the supervision and control of the services provided by such nominee and 
the methods used in evaluating services received, the basis for 
remuneration, and the fiscal controls and accounting procedures;
    (10) The arrangements made or contemplated, if any, for the vesting 
in accordance with the laws of the State, of the right, title to, and 
interest in vending facility equipment or stock (including vending 
machines), used in the program, in a nominee to hold such right, title 
to, and interest for program purposes; and
    (11) The assurances of the State licensing agency that it will:
    (i) Cooperate with the Secretary in applying the requirements of the 
Act in a uniform manner;
    (ii) Take effective action, including the termination of licenses, 
to carry out full responsibility for the supervision and management of 
each vending facility in its program in accordance with its established 
rules and regulations, this part, and the terms and conditions governing 
the permit;
    (iii) Submit promptly to the Secretary for approval a description of 
any changes in the legal authority of the State licensing agency, its 
rules and regulations, blind vendor agreements, schedules for the 
setting aside of funds, contractual arrangements for the furnishing of 
services by a nominee, arrangements for carrying general liability and 
product liability insurance, and any other matters which form a part of 
the application;
    (iv) If it intends to set aside, or cause to be set aside, funds 
from the net proceeds of the operation of vending facilities, obtain a 
prior determination by the Secretary that the amount of such funds to be 
set aside is reasonable;
    (v) Establish policies against discrimination of any blind vendor on 
the basis of sex, age, physical or mental impairment, creed, color, 
national origin, or political affiliation;
    (vi) Furnish each vendor a copy of its rules and regulations and a 
description of the arrangements for providing services, and take 
adequate steps to assure that each vendor understands the provisions of 
the permit and any agreement under which he operates, as evidenced by 
his signed statements:
    (vii) Submit to an arbitration panel those grievances of any vendor 
unresolved after a full evidentiary hearing;
    (viii) Adopt accounting procedures and maintain financial records in 
a manner necessary to provide for each vending facility and for the 
State's vending facility program a classification of financial 
transactions in such detail as is sufficient to enable evaluation of 
performance; and
    (ix) Maintain records and make reports in such form and containing 
such information as the Secretary may require, make such records 
available for audit purposes, and comply with such provisions as the 
Secretary may find necessary to assure the correctness and verification 
of such reports.
    (b) An application submitted under Sec. 395.2 shall be accompanied 
by a copy of State rules and regulations affecting the administration 
and operation of the State's vending facility program.

[[Page 495]]



Sec. 395.4  State rules and regulations.

    (a) The State licensing agency shall promulgate rules and 
regulations which have been approved by the Secretary and which shall be 
adequate to assure the effective conduct of the State's vending facility 
program (including State licensing agency procedures covering the 
conduct of full evidentiary hearings) and the operation of each vending 
facility in accordance with this part and with the requirements and 
conditions of each department, agency, and instrumentality in control of 
the maintenance, operation, and protection of Federal property, 
including the conditions contained in permits, as well as in all 
applicable Federal and State laws, local ordinances and regulations.
    (b) Such rules and regulations and amendments thereto shall be filed 
or published in accordance with State law.
    (c) Such rules and regulations shall include provisions adequate to 
insure that the right, title to, and interest in each vending facility 
used in the program and the stock will be vested in accordance with the 
laws of the State in only the following:
    (1) The State licensing agency; or
    (2) Its nominee, subject to the conditions specified in Sec. 
395.15(b); or
    (3) The vendor, in accordance with State determination.
    (d) Notwithstanding the provisions of paragraph (c) of this section, 
any right, title to, or interest which existed on June 30, 1955, in 
stock may continue so long as:
    (1) The interest is in the stock of a facility established under the 
program prior to July 1, 1955, and
    (2) The vendor was licensed in the program (whether or not for the 
operation of the vending facility in question) prior to July 1, 1955.



Sec. 395.5  Approval of application for designation as State licensing
agency.

    When the Secretary determines that an application submitted by a 
State vocational rehabilitation agency under Sec. 395.2, and the 
accompanying rules and regulations indicate a plan of program operations 
which will stimulate and enlarge the economic opportunities for the 
blind, and which will meet all other requirements of this part, he shall 
approve the application and shall designate the applying State 
vocational rehabilitation agency as the State licensing agency.



Sec. 395.6  Vendor ownership of vending facilities.

    (a) If a State licensing agency determines under Sec. 395.4(c) that 
the right, title to, and interest in a vending facility may be vested in 
the blind vendor, the State licensing agency shall enter into a written 
agreement with each vendor who is to have such ownership. Such agreement 
shall contain in full the terms and conditions governing such ownership 
in accordance with criteria in the State licensing agency's regulations, 
this part, and the terms and conditions of the permit. The criteria 
established to govern the determination that the title may be so vested 
shall contain reasonable provisions to enable a vendor to purchase 
vending facility equipment and to ensure that no individual will be 
denied the opportunity to become a vendor because of his inability to 
purchase the vending facility equipment or the initial stock;
    (b) The State licensing agency shall establish in writing and 
maintain policies determining whether the vendor-owner or the State 
licensing agency shall be required to maintain the vending facility in 
good repair and in an attractive condition and replace worn-out or 
obsolete equipment; and if the former, such policies shall provide that 
upon such vendor-owner's failure to do so, the State licensing agency 
may make the necessary maintenance, replacement, or repairs and make 
equitable arrangements for reimbursement;
    (c) Where the vendor owns such equipment and is required to maintain 
the vending facility in good repair and in an attractive condition and 
replace worn-out or obsolete equipment, or agrees to purchase additional 
new equipment, service charges for such purposes shall be equitably 
reduced and the method for determining such amount shall be established 
by the State licensing agency in writing;
    (d) Where the vendor owns such equipment, the State licensing agency 
shall retain a first option to repurchase such equipment, and in the 
event the

[[Page 496]]

vendor-owner dies, or for any other reason ceases to be a licensee, or 
transfers to another vending facility, ownership of such equipment shall 
become vested in the State licensing agency for transfer to a successor 
licensee subject to an obligation on its part to pay to such vendor-
owner or his estate, the fair value therein; and
    (e) The vendor-owner, his personal representative or next of kin 
shall be entitled to an opportunity for a full evidentiary hearing with 
respect to the determination of the amount to be paid by the State 
licensing agency for a vendor's ownership in the equipment. When the 
vendor-owner is dissatisfied with any decision rendered as a result of 
such hearing, he may file a complaint with the Secretary under Sec. 
395.13 to request the convening of an ad hoc arbitration panel.



Sec. 395.7  The issuance and conditions of licenses.

    (a) The State licensing agency shall establish in writing and 
maintain objective criteria for licensing qualified applicants, 
including a provision for giving preference to blind persons who are in 
need of employment. Such criteria shall also include provisions to 
assure that licenses will be issued only to persons who are determined 
by the State licensing agency to be:
    (1) Blind;
    (2) Citizens of the United States; and
    (3) Certified by the State vocational rehabilitation agency as 
qualified to operate a vending facility.
    (b) The State licensing agency shall provide for the issuance of 
licenses for an indefinite period but subject to suspension or 
termination if, after affording the vendor an opportunity for a full 
evidentiary hearing, the State licensing agency finds that the vending 
facility is not being operated in accordance with its rules and 
regulations, the terms and conditions of the permit, and the terms and 
conditions of the agreement with the vendor.
    (c) The State licensing agency shall further establish in writing 
and maintain policies which have been developed with the active 
participation of the State Committee of Blind Vendors and which govern 
the duties, supervision, transfer, promotion, and financial 
participation of the vendors. The State licensing agency shall also 
establish procedures to assure that such policies have been explained to 
each blind vendor.



Sec. 395.8  Distribution and use of income from vending machines on 
Federal property.

    (a) Vending machine income from vending machines on Federal property 
which has been disbursed to the State licensing agency by a property 
managing department, agency, or instrumentality of the United States 
under Sec. 395.32 shall accrue to each blind vendor operating a vending 
facility on such Federal property in each State in an amount not to 
exceed the average net income of the total number of blind vendors 
within such State, as determined each fiscal year on the basis of each 
prior year's operation, except that vending machine income shall not 
accrue to any blind vendor in any amount exceeding the average net 
income of the total number of blind vendors in the United States. No 
blind vendor shall receive less vending machine income than he was 
receiving during the calendar year prior to January 1, 1974, as a direct 
result of any limitation imposed on such income under this paragraph. No 
limitation shall be imposed on income from vending machines, combined to 
create a vending facility, when such facility is maintained, serviced, 
or operated by a blind vendor. Vending machine income disbursed by a 
property managing department, agency or instrumentality of the United 
States to a State licensing agency in excess of the amounts eligible to 
accrue to blind vendors in accordance with this paragraph shall be 
retained by the appropriate State licensing agency.
    (b) The State licensing agency shall disburse vending machine income 
to blind vendors within the State on at least a quarterly basis.
    (c) Vending machine income which is retained under paragraph (a) of 
this section by a State licensing agency shall be used by such agency 
for the establishment and maintenance of retirement or pension plans, 
for health insurance contributions, and for the provision of paid sick 
leave and vacation

[[Page 497]]

time for blind vendors in such State, if it is so determined by a 
majority vote of blind vendors licensed by the State licensing agency, 
after such agency has provided to each such vendor information on all 
matters relevant to such purposes. Any vending machine income not 
necessary for such purposes shall be used by the State licensing agency 
for the maintenance and replacement of equipment, the purchase of new 
equipment, management services, and assuring a fair minimum return to 
vendors. Any assessment charged to blind vendors by a State licensing 
agency shall be reduced pro rata in an amount equal to the total of such 
remaining vending machine income.



Sec. 395.9  The setting aside of funds by the State licensing agency.

    (a) The State licensing agency shall establish in writing the extent 
to which funds are to be set aside or caused to be set aside from the 
net proceeds of the operation of the vending facilities and, to the 
extent applicable, from vending machine income under Sec. 395.8(c) in 
an amount determined by the Secretary to be reasonable.
    (b) Funds may be set aside under paragraph (a) of this section only 
for the purposes of:
    (1) Maintenance and replacement of equipment;
    (2) The purchase of new equipment;
    (3) Management services;
    (4) Assuring a fair minimum of return to vendors; or
    (5) The establishment and maintenance of retirement or pension 
funds, health insurance contributions, and provision for paid sick leave 
and vacation time, if it is so determined by a majority vote of blind 
vendors licensed by the State licensing agency, after such agency 
provides to each such vendor information on all matters relevant to such 
proposed purposes.
    (c) The State licensing agency shall further set out the method of 
determining the charge for each of the above purposes listed in 
paragraph (b) of this section, which will be determined with the active 
participation of the State Committee of Blind Vendors and which will be 
designed to prevent, so far as is practicable, a greater charge for any 
purpose than is reasonably required for that purpose. The State 
licensing agency shall maintain adequate records to support the 
reasonableness of the charges for each of the purposes listed in this 
section, including any reserves necessary to assure that such purposes 
can be achieved on a consistent basis.



Sec. 395.10  The maintenance and replacement of vending facility 
equipment.

    The State licensing agency shall maintain (or cause to be 
maintained) all vending facility equipment in good repair and in an 
attractive condition and shall replace or cause to be replaced worn-out 
and obsolete equipment as required to ensure the continued successful 
operation of the facility.



Sec. 395.11  Training program for blind individuals.

    The State licensing agency shall ensure that effective programs of 
vocational and other training services, including personal and 
vocational adjustment, books, tools, and other training materials, shall 
be provided to blind individuals as vocational rehabilitation services 
under the Rehabilitation Act of 1973 (Pub. L. 93-112), as amended by the 
Rehabilitation Act Amendments of 1974 (Pub. L. 93-516). Such programs 
shall include on-the-job training in all aspects of vending facility 
operation for blind persons with the capacity to operate a vending 
facility, and upward mobility training (including further education and 
additional training or retraining for improved work opportunities) for 
all blind licensees. The State licensing agency shall further ensure 
that post-employment services shall be provided to blind vendors as 
vocational rehabilitation services as necessary to assure that the 
maximum vocational potential of such vendors is achieved and suitable 
employment is maintained within the State's vending facility program.



Sec. 395.12  Access to program and financial information.

    Each blind vendor under this part shall be provided access to all 
financial data of the State licensing agency relevant to the operation 
of the State vending facility program, including quarterly and annual 
financial reports, provided that such disclosure does not

[[Page 498]]

violate applicable Federal or State laws pertaining to the disclosure of 
confidential information. Insofar as practicable, such data shall be 
made available in braille or recorded tape. At the request of a blind 
vendor State licensing agency staff shall arrange a convenient time to 
assist in the interpretation of such financial data.



Sec. 395.13  Evidentiary hearings and arbitration of vendor complaints.

    (a) The State licensing agency shall specify in writing and maintain 
procedures whereby such agency affords an opportunity for a full 
evidentiary hearing to each blind vendor (which procedures shall also 
apply to cases under Sec. 395.6(e)) dissatisfied with any State 
licensing agency action arising from the operation or administration of 
the vending facility program. When such blind vendor is dissatisfied 
with any action taken or decision rendered as a result of such hearing, 
he may file a complaint with the Secretary. Such complaint shall be 
accompanied by all available supporting documents, including a statement 
of the decision which was rendered and the reasons in support thereof.
    (b) The filing of a complaint under paragraph (a) of this section 
with either the State licensing agency or the Secretary shall indicate 
consent by the blind vendor for the release of such information as is 
necessary for the conduct of a full evidentiary hearing or the hearing 
of an ad hoc arbitration panel.
    (c) Upon receipt of a complaint filed by a blind vendor which meets 
the requirements established by the Secretary, the Secretary shall 
convene an ad hoc arbitration panel which shall, in accordance with the 
provisions of 5 U.S.C. chapter 5, subchapter II, give notice, conduct a 
hearing, and render its decision which shall be final and binding on the 
parties except that such decision shall be subject to appeal and review 
as a final agency action for purposes of the provisions of 5 U.S.C. 
chapter 7.
    (d) The arbitration panel convened by the Secretary to hear the 
grievances of blind vendors shall be composed of three members appointed 
as follows:
    (1) One individual designated by the State licensing agency;
    (2) One individual designated by the blind vendor; and
    (3) One individual not employed by the State licensing agency or, 
where appropriate, its parent agency, who shall be jointly designated by 
the other members of the panel and who shall serve as chairman of the 
panel.
    (e) If either the State licensing agency or the blind vendor fails 
to designate a member of an arbitration panel, the Secretary shall 
designate such member on behalf of such party.
    (f) The decisions of an arbitration panel convened by the Secretary 
under this section shall be matters of public record and shall be 
published in the Federal Register.
    (g) The Secretary shall pay all reasonable costs of arbitration 
under this section in accordance with a schedule of fees and expenses 
which shall be published in the Federal Register.
    (h) The provisions of this section shall not require the 
participation of grantors of permits for the operation of vending 
facilities on property other than Federal property.



Sec. 395.14  The State Committee of Blind Vendors.

    (a) The State licensing agency shall provide for the biennial 
election of a State Committee of Blind Vendors which, to the extent 
possible, shall be fully representative of all blind vendors in the 
State program on the basis of such factors as geography and vending 
facility type with a goal of providing for proportional representation 
of blind vendors on Federal property and blind vendors on other 
property. Participation by any blind vendor in any election shall not be 
conditioned upon the payment of dues or any other fees.
    (b) The State Committee of Blind Vendors shall:
    (1) Actively participate with the State licensing agency in major 
administrative decisions and policy and program development decisions 
affecting the overall administration of the State's vending facility 
program;

[[Page 499]]

    (2) Receive and transmit to the State licensing agency grievances at 
the request of blind vendors and serve as advocates for such vendors in 
connection with such grievances;
    (3) Actively participate with the State licensing agency in the 
development and administration of a State system for the transfer and 
promotion of blind vendors;
    (4) Actively participate with the State licensing agency in the 
development of training and retraining programs for blind vendors; and
    (5) Sponsor, with the assistance of the State licensing agency, 
meetings and instructional conferences for blind vendors within the 
State.



Sec. 395.15  Use of nominee agreements.

    (a) The State licensing agency may enter into an agreement whereby 
another agency or organization undertakes to furnish services to blind 
vendors. Such agreement shall be in writing and shall contain provisions 
which:
    (1) Clearly insure the retention by the State licensing agency of 
full responsibility for the administration and operation of all phases 
of the program;
    (2) Specify the type and extent of the services to be provided under 
such agreement;
    (3) Provide that no set-aside charges will be collected from blind 
vendors except as specified in such agreement;
    (4) Specify that no nominee will be allowed to exercise any function 
with respect to funds for the purchase of new equipment or for assuring 
a fair minimum of return to vendors, except to collect and hold solely 
for disposition in accordance with the order of the State licensing 
agency any charges authorized for those purposes by the licensing 
agency; and
    (5) Specify that only the State licensing agency shall have control 
with respect to selection, placement, transfer, financial participation 
and termination of the vendors, and the preservation, utilization, and 
disposition of program assets.
    (b) If the State licensing agency permits any agency or organization 
other than a vendor to hold any right, title to, or interest in vending 
facilities or stock, the arrangement shall be one permitted by State law 
and shall specify in writing that all such right, title to, or interest 
is held by such agency or organization as the nominee of the State 
licensing agency for program purposes and subject to the paramount right 
of the State licensing agency to direct and control the use, transfer, 
and disposition of such vending facilities or stock.



Sec. 395.16  Permit for the establishment of vending facilities.

    Prior to the establishment of each vending facility, other than a 
cafeteria, the State licensing agency shall submit an application for a 
permit setting forth the location, the amount of space necessary for the 
operation of the vending facility; the type of facility and equipment, 
the number, location and type of vending machines and other terms and 
conditions desired to be included in the permit. Such application shall 
be submitted for the approval of the head of the Federal property 
managing department, agency, or instrumentality. When an application is 
not approved, the head of the Federal property managing department, 
agency, or instrumentality shall advise the State licensing agency in 
writing and shall indicate the reasons for the disapproval.



Sec. 395.17  Suspension of designation as State licensing agency.

    (a) If the Secretary has reason to believe that, in the 
administration of the program, there is a failure on the part of any 
State licensing agency to comply substantially with the Act and this 
part, he shall so inform such agency in writing, setting forth, in 
detail, the areas in which there is such failure and giving it a 
reasonable opportunity to comply.
    (b) If, after the lapse of a reasonable time, the Secretary is of 
the opinion that such failure to comply still continues and that the 
State licensing agency is not taking the necessary steps to comply, he 
shall offer to such agency, by reasonable notice in writing thereto and 
to the chief executive of the State, an opportunity for a hearing before 
the Secretary (or person designated by the Secretary) to determine 
whether there is a failure on the part of such agency to comply 
substantially

[[Page 500]]

with the provisions of the Act and of this part.
    (c) If it is thereupon determined that there is a failure on the 
part of such agency to comply substantially with the Act and this part, 
appropriate written notice shall be given to such agency and to the 
chief executive of the State suspending such agency's designation as 
licensing agency effective 90 days from the date of such notice. A copy 
of such written notice shall be given to each department, agency, or 
instrumentality of the United States responsible for the maintenance, 
operation, and protection of Federal property on which vending machines 
subject to the requirements of Sec. 395.32 are located in the State. 
Upon the suspension of such designation, vending machine income from 
vending machines on Federal property due for accrual to the State 
licensing agency under Sec. 395.32 shall be retained in escrow by such 
department, agency, or instrumentality of the United States responsible 
for the maintenance, operation and protection of the Federal property on 
which such vending machines are located, pending redesignation of the 
State licensing agency or rescission of the suspension under paragraph 
(e) of this section.
    (d) If, before the expiration of such 90 days, the Secretary (or 
person designated by him) determines that the State licensing agency is 
taking the necessary steps to comply, he may postpone the effective date 
of such suspension for such time as he deems necessary in the best 
interest of the program.
    (e) If, prior to the effective date of such suspension, the 
Secretary (or person designated by him) finds that there is no longer a 
failure on the part of the State licensing agency to comply 
substantially with the provisions of the Act and this part, he shall so 
notify the agency, the chief executive of the State, and each Federal 
department, agency, or instrumentality required to place funds in escrow 
under paragraph (c) of this section, in which event the suspension of 
the designation shall not become effective and the requirement to place 
funds in escrow shall be terminated.



                  Subpart C_Federal Property Management



Sec. 395.30  The location and operation of vending facilities for
blind vendors on Federal property.

    (a) Each department, agency, or instrumentality of the United States 
in control of the maintenance, operation, and protection of Federal 
property shall take all steps necessary to assure that, wherever 
feasible, in light of appropriate space and potential patronage, one or 
more vending facilities for operation by blind licensees shall be 
located on all Federal property Provided that the location or operation 
of such facility or facilities would not adversely affect the interests 
of the United States. Blind persons licensed by State licensing agencies 
shall be given priority in the operation of vending facilities on any 
Federal property.
    (b) Any limitation on the location or operation of a vending 
facility for blind vendors by a department, agency or instrumentality of 
the United States based on a finding that such location or operation or 
type of location or operation would adversely affect the interests of 
the United States shall be fully justified in writing to the Secretary 
who shall determine whether such limitation is warranted. A 
determination made by the Secretary concerning such limitation shall be 
binding on any department, agency, or instrumentality of the United 
States affected by such determination. The Secretary shall publish such 
determination in the Federal Register along with supporting documents 
directly relating to the determination.
    (c) Priority in the operation of vending facilities in areas 
administered by the National Park Service or the National Aeronautics 
and Space Administration shall be given to blind vendors. Priority in 
the awarding of contracts for the operation of concessions in such areas 
when such concessions provide accommodations, facilities, and services 
of a scope or of a character not generally available in vending 
facilities operated by blind vendors shall be given in accordance with 
the provisions of the Concession Policy Act (Pub. L. 98-249, 16 U.S.C. 
1) or the National Aeronautics and Space Act of 1958, as

[[Page 501]]

amended (Pub. L. 85-568, 42 U.S.C. 2473). The provisions of this part 
shall not apply when all accommodations, facilities, or services in such 
areas are operated by a single responsible concessioner.



Sec. 395.31  Acquisition and occupation of Federal property.

    (a) Effective January 2, 1975, no department, agency, or 
instrumentality of the United States shall undertake to acquire by 
ownership, rent, or lease, or to otherwise occupy, in whole or in part, 
any building unless it is determined that such building includes a 
satisfactory site or sites for the location and operation of a vending 
facility by a blind vendor. In those cases where a purchase contract, an 
agreement to lease, or other similar commitment was entered into prior 
to January 2, 1975, the provisions of this paragraph shall not apply.
    (b) Effective January 2, 1975, no department, agency, or 
instrumentality of the United States, shall undertake to occupy, in 
whole or in part, any building which is to be constructed, substantially 
altered, or renovated, or in the case of a building which is occupied on 
January 2, 1975 by a department, agency, or instrumentality of the 
United States, no such department, agency, or instrumentality shall 
undertake to substantially alter or renovate such building, unless it is 
determined that the design for such construction, substantial 
alteration, or renovation includes a satisfactory site or sites for the 
location and operation of a vending facility by a blind vendor. In those 
cases where a design contract or other similar commitment was entered 
into prior to January 2, 1975, the provisions of this paragraph shall 
not apply. For purposes of this paragraph, substantial alteration or 
renovation of a building means a permanent material change in the floor 
area of such building which would render such building appropriate for 
the location and operation of a vending facility by a blind vendor.
    (c) The determination that a building contains a satisfactory site 
or sites under paragraph (a) or (b) of this section shall be made after 
consultation between the State licensing agency and the head of the 
department, agency, or instrumentality of the United States which is 
planning to acquire or otherwise occupy such building. In order to make 
such determination, effective on the publication date of this part each 
such department, agency, or instrumentality shall provide to the 
appropriate State licensing agency written notice of its intention to 
acquire or otherwise occupy such building. Such written notice shall be 
by certified or registered mail with return receipt and shall be 
provided as early as practicable but no later than 60 days prior to such 
intended action. The written notice shall indicate that a satisfactory 
site or sites for the location and operation of a vending facility by 
blind persons is included in the plans for the building to be acquired 
or otherwise occupied and shall further assure that the State licensing 
agency shall be afforded the opportunity to determine whether such 
building includes a satisfactory site or sites for a vending facility. 
The written notice shall further assure that the State licensing agency, 
subject to the approval of the head of the Federal property managing 
department, agency, or instrumentality, shall be offered the opportunity 
to select the location and type of vending facility to be operated by a 
blind vendor prior to the completion of the final space layout of the 
building. The receipt of such written notice shall be acknowledged in 
writing promptly by the State licensing agency but no later than within 
30 days and the State licensing agency shall indicate at that time 
whether it is interested in establishing a vending facility. A copy of 
the written notice to the State licensing agency and the State licensing 
agency's acknowledgement shall be provided to the Secretary.
    (d) When, after a written notice has been provided under paragraph 
(c) of this section, the State licensing agency determines that the 
number of persons using the Federal property is or will be insufficient 
to support a vending facility, and the Secretary concurs with such 
determination, the provisions of paragraphs (a) and (b) of this section 
shall not apply. The provisions of paragraphs (a) and (b) of this 
section shall also not apply when fewer than 100 Federal Government 
employees are or

[[Page 502]]

will be located during normal working hours in the building to be 
acquired or otherwise occupied or when such building contains less than 
15,000 square feet of interior space to be utilized for Federal 
Government purposes in the case of buildings in which services are to be 
provided to the public.
    (e) The operation of a vending facility established under pre-
existing arrangements shall not be affected by the provisions of this 
section. The provisions of this section shall further not preclude 
future arrangements under which vending facilities to be operated by 
blind vendors may be established in buildings of a size or with an 
employee population less than that specified in paragraph (d) of this 
section: Provided, That both the State licensing agency and the Federal 
property managing department, agency or instrumentality concur in such 
establishment.
    (f) Each department, agency, and instrumentality of the United 
States, when leasing property in privately owned buildings, shall make 
every effort to lease property capable of accommodating a vending 
facility. When, however, such department, agency, or instrumentality is 
leasing part of a privately owned building in which prior to the 
execution of the lease, the lessor or any of his tenants had in 
operation or had entered into a contract for the operation of a 
restaurant or other food facility in a part of the building not included 
in such lease and the operation of a vending facility by a blind vendor 
would be in proximate and substantial direct competition with such 
restaurant or other food facility, the provisions of paragraphs (a), 
(b), and (c) of this section shall not apply.



Sec. 395.32  Collection and distribution of vending machine income 
from vending machines on Federal property.

    (a) The on-site official responsible for the Federal property of 
each property managing department, agency, or instrumentality of the 
United States, in accordance with established procedures of such 
department, agency, or instrumentality, shall be responsible for the 
collection of, and accounting for, vending machine income from vending 
machines on Federal property under his control and shall otherwise 
ensure compliance with the provisions of this section.
    (b) Effective January 2, 1975, 100 per centum of all vending machine 
income from vending machines on Federal property which are in direct 
competition with a vending facility operated by a blind vendor shall 
accure to the State licensing agency which shall disburse such income to 
such blind vendor operating such vending facility on such property 
provided that the total amount of such income accruing to such blind 
vendor does not exceed the maximum amount determined under Sec. 
395.8(a). In the event that there is income from such vending machines 
in excess of the maximum amount which may be disbursed to the blind 
vendor under Sec. 395.8(a), such additional income shall accrue to the 
State licensing agency for purposes determined in accordance with Sec. 
395.8(c).
    (c) Effective January 2, 1975, 50 per centum of all vending machine 
income from vending machines on Federal property which are not in direct 
competition with a vending facility operated by a blind vendor shall 
accrue to the State licensing agency which shall disburse such income to 
the blind vendor operating such vending facility on such property. In 
the event that there is no blind vendor, such income shall accrue to the 
State licensing agency, except as indicated under paragraph (d) of this 
section. The total amount of such income disbursed to such blind vendor 
shall not exceed the maximum amount determined under Sec. 395.8(a). In 
the event that there is income from such vending machines in excess of 
the maximum amount which may accrue to the blind vendor under Sec. 
395.8(a), such additional income shall accrue to the State licensing 
agency for purposes determined in accordance with Sec. 395.8(c).
    (d) Effective January 2, 1975, 30 per centum of all vending machine 
income from vending machines, which are not in direct competition with a 
vending facility operated by a blind vendor and which are on Federal 
property at which at least 50 per centum of the total hours worked on 
the premises occurs during a period other than normal working hours, 
shall accrue to the

[[Page 503]]

State licensing agency which shall disburse such income to the blind 
vendor operating a vending facility on such property. In the event that 
there is no blind vendor on such property, such income shall accrue to 
the State licensing agency. The total amount of such income disbursed to 
such blind vendor shall not exceed the maximum amount determined under 
Sec. 395.8(a). In the event that there is income from such vending 
machines in excess of the maximum amount which may be disbursed to the 
blind vendor under Sec. 395.8(a), such additional income shall accrue 
to the State licensing agency for purposes determined in accordance with 
Sec. 395.8(c).
    (e) The determination that a vending machine on Federal property is 
in direct competition with a vending facility operated by a blind vendor 
shall be the responsibility of the on-site official responsible for the 
Federal property of each property managing department, agency or 
instrumentality of the United States, subject to the concurrence of the 
State licensing agency.
    (f) In the case of vending machine income which, prior to the 
effective date of this part, has been disbursed to a blind vendor by a 
property managing department, agency, or instrumentality from proceeds 
which accrued from operations subsequent to January 2, 1975, pursuant to 
agreements in effect prior to such time, such income may be deducted, at 
the discretion of such property managing department, agency or 
instrumentality, from vending machine income due to the State licensing 
agency under paragraphs (b), (c), or (d) of this section.
    (g) The collection of vending machine income and its disbursement to 
the appropriate State licensing agency shall be conducted on at least a 
quarterly basis.
    (h) All arrangements pertaining to the operation of vending machines 
on Federal property not covered by contract with, or by permits issued 
to, State licensing agencies, shall be renegotiated upon the expiration 
of the existing contract or other arrangement for consistency with the 
provisions of this section.
    (i) The provisions of this section shall not apply to income from 
vending machines within operated retail sales outlets under the control 
of post exchange or ships' stores systems authorized under title 10 
U.S.C.; to income from vending machines operated by the Veterans Canteen 
Service; or to income from vending machines not in direct competition 
with a blind vending facility at individual locations, installations, or 
facilities on Federal property the total of which at such individual 
locations, installations, or facilities does not exceed $3,000 annually.
    (j) The provisions of this section shall not operate to preclude 
pre-existing or future arrangements, or regulations of departments, 
agencies, or instrumentalities of the United States, under which blind 
vendors or State licensing agencies may:
    (1) Receive a greater percentage or amount of vending machine income 
than that specified in paragraphs (b), (c), and (d) of this section, or
    (2) Receive vending machine income from individual locations, 
installations, or facilities on Federal property the total of which at 
such individual locations, installations, or facilities does not exceed 
$3,000 annually.



Sec. 395.33  Operation of cafeterias by blind vendors.

    (a) Priority in the operation of cafeterias by blind vendors on 
Federal property shall be afforded when the Secretary determines, on an 
individual basis, and after consultation with the appropriate property 
managing department, agency, or instrumentality, that such operation can 
be provided at a reasonable cost, with food of a high quality comparable 
to that currently provided employees, whether by contract or otherwise. 
Such operation shall be expected to provide maximum employment 
opportunities to blind vendors to the greatest extent possible.
    (b) In order to establish the ability of blind vendors to operate a 
cafeteria in such a manner as to provide food service at comparable cost 
and of comparable high quality as that available from other providers of 
cafeteria services, the appropriate State licensing agency shall be 
invited to respond to solicitations for offers when a cafeteria contract 
is contemplated by the appropriate property managing department,

[[Page 504]]

agency, or instrumentality. Such solicitations for offers shall 
establish criteria under which all responses will be judged. Such 
criteria may include sanitation practices, personnel, staffing, menu 
pricing and portion sizes, menu variety, budget and accounting 
practices. If the proposal received from the State licensing agency is 
judged to be within a competitive range and has been ranked among those 
proposals which have a reasonable chance of being selected for final 
award, the property managing department, agency, or instrumentality 
shall consult with the Secretary as required under paragraph (a) of this 
section. If the State licensing agency is dissatisfied with an action 
taken relative to its proposal, it may file a complaint with the 
Secretary under the provisions of Sec. 395.37.
    (c) All contracts or other existing arrangements pertaining to the 
operation of cafeterias on Federal property not covered by contract 
with, or by permits issued to, State licensing agencies shall be 
renegotiated subsequent to the effective date of this part on or before 
the expiration of such contracts or other arrangements pursuant to the 
provisions of this section.
    (d) Notwithstanding the requirements of paragraphs (a) and (b) of 
this section, Federal property managing departments, agencies, and 
instrumentalities may afford priority in the operation of cafeterias by 
blind vendors on Federal property through direct negotiations with State 
licensing agencies whenever such department, agency, or instrumentality 
determines, on an individual basis, that such operation can be provided 
at a reasonable cost, with food of a high quality comparable to that 
currently provided employees: Provided, however, That the provisions of 
paragraphs (a) and (b) of this section shall apply in the event that the 
negotiations authorized by this paragraph do not result in a contract.



Sec. 395.34  Application for permits.

    Applications for permits for the operation of vending facilities 
other than cafeterias shall be made in writing on the appropriate form, 
and submitted for the review and approval of the head of the Federal 
property managing department, agency, or instrumentality.



Sec. 395.35  Terms of permit.

    Every permit shall describe the location of the vending facility 
including any vending machines located on other than the facility 
premises and shall be subject to the following provisions:
    (a) The permit shall be issued in the name of the applicant State 
licensing agency which shall:
    (1) Prescribe such procedures as are necessary to assure that in the 
selection of vendors and employees for vending facilities there shall be 
no discrimination because of sex, race, age, creed, color, national 
origin, physical or mental disability, or political affiliation; and
    (2) Take the necessary action to assure that vendors do not 
discriminate against any person or persons in furnishing, or by refusing 
to furnish, to such person or persons the use of any vending facility, 
including any and all services, privileges, accommodations, and 
activities provided thereby, and comply with title VI of the Civil 
Rights Act of 1964 and regulations issued pursuant thereto.
    (b) The permit shall be issued for an indefinite period of time 
subject to suspension or termination on the basis of compliance with 
agreed upon terms.
    (c) The permit shall provide that:
    (1) No charge shall be made to the State licensing agency for normal 
cleaning, maintenance, and repair of the building structure in and 
adjacent to the vending facility areas;
    (2) Cleaning necessary for sanitation, and the maintenance of 
vending facilities and vending machines in an orderly condition at all 
times, and the installation, maintenance, repair, replacement, 
servicing, and removal of vending facility equipment shall be without 
cost to the department, agency, or instrumentality responsible for the 
maintenance of the Federal property; and
    (3) Articles sold at vending facilities operated by blind licensees 
may consist of newspapers, periodicals, publications, confections, 
tobacco products, foods, beverages, chances for any lottery authorized 
by State law and conducted by an agency of a State within

[[Page 505]]

such State, and other articles or services as are determined by the 
State licensing agency, in consultation with the on-site official 
responsible for the Federal property of the property managing 
department, agency or instrumentality, to be suitable for a particular 
location. Such articles and services may be dispensed automatically or 
manually and may be prepared on or off the premises in accordance with 
all applicable health laws.
    (d) The permit shall further provide that vending facilities shall 
be operated in compliance with applicable health, sanitation, and 
building codes or ordinances.
    (e) The permit shall further provide that installation, 
modification, relocation, removal, and renovation of vending facilities 
shall be subject to the prior approval and supervision of the on-site 
official responsible for the Federal property of the property managing 
department, agency, or instrumentality, and the State licensing agency; 
that costs of relocations initiated by the State licensing agency shall 
be paid by the State licensing agency; and that costs of relocations 
initiated by the department, agency, or instrumentality shall be borne 
by such department, agency, or instrumentality.
    (f) The operation of a cafeteria by a blind vendor shall be covered 
by a contractual agreement and not by a permit.



Sec. 395.36  Enforcement procedures.

    (a) The State licensing agency shall attempt to resolve day-to-day 
problems pertaining to the operation of the vending facility in an 
informal manner with the participation of the blind vendor and the on-
site official responsible for the property of the property managing 
department, agency, or instrumentality as necessary.
    (b) Unresolved disagreements concerning the terms of the permit, the 
Act, or the regulations in this part and any other unresolved matters 
shall be reported in writing to the State licensing agency supervisory 
personnel by the Regional or other appropriate official of the Federal 
property managing department, agency, or instrumentality in an attempt 
to resolve the issue.



Sec. 395.37  Arbitration of State licensing agency complaints.

    (a) Whenever any State licensing agency determines that any 
department, agency, or instrumentality of the United States which has 
control of the maintenance, operation, and protection of Federal 
property is failing to comply with the provisions of the Act or of this 
part and all informal attempts to resolve the issues have been 
unsuccessful, such licensing agency may file a complaint with the 
Secretary.
    (b) Upon receipt of a complaint filed under paragraph (a) of this 
section, the Secretary shall convene an ad hoc arbitration panel which 
shall, in accordance with the provisions of 5 U.S.C. ch. 5, subchapter 
II, give notice, conduct a hearing and render its decision which shall 
be final and binding on the parties except that such decision shall be 
subject to appeal and review as a final agency action for purposes of 
the provisions of 5 U.S.C. ch. 7. The arbitration panel convened by the 
Secretary to hear complaints filed by a State licensing agency shall be 
composed of three members appointed as follows:
    (1) One individual designated by the State licensing agency;
    (2) One individual designated by the head of the Federal department, 
agency, or instrumentality controlling the Federal property over which 
the dispute arose; and
    (3) One individual, not employed by the Federal department, agency, 
or instrumentality controlling the Federal property over which the 
dispute arose, who shall be jointly designated by the other members of 
the panel and who shall serve as chairman of the panel.
    (c) If either the State licensing agency or the head of the Federal 
department, agency, or instrumentality fails to designate a member of an 
arbitration panel, the Secretary shall designate such member on behalf 
of such party.
    (d) If the panel finds that the acts or practices of any department, 
agency, or instrumentality are in violation of the Act or of this part, 
the head of any such department, agency, or instrumentality (subject to 
any appeal under paragraph (b) of this section) shall

[[Page 506]]

cause such acts or practices to be terminated promptly and shall take 
such other action as may be necessary to carry out the decision of the 
panel.
    (e) The decisions of an arbitration panel convened by the Secretary 
under this section shall be matters of public record and shall be 
published in the Federal Register.
    (f) The Secretary shall pay all reasonable costs of arbitration 
under this section in accordance with a schedule of fees and expenses 
which shall be published in the Federal Register.



Sec. 395.38  Reports.

    At the end of each fiscal year, each property managing department, 
agency, or instrumentality of the United States shall report to the 
Secretary the total number of applications for vending facility 
locations received from State licensing agencies, the number accepted, 
the number denied, the number still pending, the total amount of vending 
machine income collected and the amount of such vending machine income 
disbursed to the State licensing agency in each State.



PART 396_TRAINING OF INTERPRETERS FOR INDIVIDUALS WHO ARE DEAF AND 
INDIVIDUALS WHO ARE DEAF-BLIND--Table of Contents



                            Subpart A_General

Sec.
396.1 What is the Training of Interpreters for Individuals Who Are Deaf 
          and Individuals Who Are Deaf-Blind Program?
396.2 Who is eligible for an award?
396.3 What regulations apply?
396.4 What definitions apply?
396.5 What activities may the Secretary fund?

Subpart B [Reserved]

               Subpart C_How Does One Apply for an Award?

396.20 What must be included in an application?

             Subpart D_How Does the Secretary Make an Award?

396.30 How does the Secretary evaluate an application?
396.31 What additional selection criteria are used under this program?
396.32 What additional factors does the Secretary consider in making 
          awards?
396.33 What priorities does the Secretary apply in making awards?

    Authority: 29 U.S.C. 771a(f), unless otherwise noted.

    Source: 59 FR 52220, Oct. 14, 1994, unless otherwise noted.



                            Subpart A_General



Sec. 396.1  What is the Training of Interpreters for Individuals 
Who Are Deaf and Individuals Who Are Deaf-Blind program?

    The Training of Interpreters for Individuals Who Are Deaf and 
Individuals Who Are Deaf-Blind program is designed to establish 
interpreter training programs or to assist ongoing programs to train a 
sufficient number of skilled interpreters throughout the country in 
order to meet the communication needs of individuals who are deaf and 
individuals who are deaf-blind by--
    (a) Training manual, tactile, oral, and cued speech interpreters;
    (b) Ensuring the maintenance of the skills of interpreters; and
    (c) Providing opportunities for interpreters to raise their level of 
competence.

(Authority: 29 U.S.C. 771a(f))



Sec. 396.2  Who is eligible for an award?

    Public and private nonprofit agencies and organizations, including 
institutions of higher education, are eligible for assistance under this 
program.

(Authority: 29 U.S.C. 771a(f))



Sec. 396.3  What regulations apply?

    The following regulations apply to the Training of Interpreters for 
Individuals Who Are Deaf and Individuals Who Are Deaf-Blind program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions That Apply to Department 
Regulations).

[[Page 507]]

    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Government Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free Workplace 
(Grants)).
    (9) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 396.
    (c) The following regulations in 34 CFR part 385:
    (1) Section 385.32.
    (2) Section 385.40.
    (3) Section 385.44.
    (4) Section 385.45.
    (5) Section 385.46.

(Authority: 29 U.S.C. 771a(f))



Sec. 396.4  What definitions apply?

    (a) Definitions in EDGAR. The following terms defined in 34 CFR 77.1 
apply to this part:

Applicant
Application
Award
Equipment
Grant
Nonprofit
Private
Project
Public
Secretary
Supplies

    (b) Definitions in the rehabilitation training regulations. The 
following terms defined in 34 CFR 385.4(b) apply to this part:
    Individual With a Disability
    Institution of Higher Education
    (c) Other definitions. The following definitions also apply to this 
part:
    Existing program that has demonstrated its capacity for providing 
interpreter training services means an established program with--
    (1) A record of training interpreters who are serving the deaf and 
deaf-blind communities; and
    (2) An established curriculum that is suitable for training 
interpreters.
    Individual who is deaf means an individual who has a hearing 
impairment of such severity that the individual must depend primarily 
upon visual modes, such as sign language, lip reading, and gestures, or 
reading and writing to facilitate communication.
    Individual who is deaf-blind means an individual--
    (1)(i) Who has a central visual acuity of 20/200 or less in the 
better eye with corrective lenses, or a field defect such that the 
peripheral diameter of visual field subtends an angular distance no 
greater than 20 degrees, or a progressive visual loss having a prognosis 
leading to one or both of these conditions;
    (ii) Who has a chronic hearing impairment so severe that most speech 
cannot be understood with optimum amplification, or a progressive 
hearing loss having a prognosis leading to this condition; and
    (iii) For whom the combination of impairments described in 
paragraphs (1)(i) and (ii) of this definition causes extreme difficulty 
in attaining independence in daily life activities, achieving 
psychosocial adjustment, or obtaining a vocation;
    (2) Who, despite the inability to be measured accurately for hearing 
and vision loss due to cognitive or behavioral constraints, or both, can 
be determined through functional and performance assessment to have 
severe hearing and visual disabilities that cause extreme difficulty in 
attaining independence in daily life activities, achieving psychosocial 
adjustment, or obtaining vocational objectives; or
    (3) Who meets any other requirements that the Secretary may 
prescribe.
    Interpreter for individuals who are deaf means a qualified 
professional who uses sign language skills, cued speech, or oral 
interpreting skills, as appropriate to the needs of individuals who are 
deaf, to facilitate communication between individuals who are deaf and 
other individuals.
    Interpreter for individuals who are deaf-blind means a qualified 
professional who uses tactile or other manual language or fingerspelling 
modes, as

[[Page 508]]

appropriate to the needs of individuals who are deaf-blind, to 
facilitate communication between individuals who are deaf-blind and 
other individuals.
    Qualified professional means an individual who has either--
    (1) Met existing national or state certification or evaluation 
requirements; or
    (2) Successfully demonstrated equivalent interpreting skills through 
prior work experience.

(Authority: 29 U.S.C. 711(c) and 771a(f); 29 U.S.C 1905)



Sec. 396.5  What activities may the Secretary fund?

    The Secretary provides assistance for projects that provide training 
in interpreting skills for persons preparing to serve, and persons who 
are already serving, as interpreters for individuals who are deaf and as 
interpreters for individuals who are deaf-blind in public and private 
agencies, schools, and other service-providing institutions.

(Authority: 29 U.S.C. 771a(f))

Subpart B [Reserved]



               Subpart C_How Does One Apply for an Award?



Sec. 396.20  What must be included in an application?

    Each applicant shall include in the application--
    (a) A description of the manner in which the proposed interpreter 
training program will be developed and operated during the five-year 
period following the award of the grant;
    (b) A description of the geographical area to be served by the 
project;
    (c) A description of the applicant's capacity or potential for 
providing training for interpreters for individuals who are deaf and 
interpreters for individuals who are deaf-blind;
    (d) An assurance that any interpreter trained or retrained under 
this program shall meet any minimum standards of competency that the 
Secretary may establish;
    (e) An assurance that the project shall cooperate or coordinate its 
activities, as appropriate, with the activities of other projects funded 
under this program; and
    (f) The descriptions required in 34 CFR 385.45 with regard to the 
training of individuals with disabilities, including those from minority 
groups, for rehabilitation careers.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 718b(b)(6), 777a(a)(5), and 771a(f))



             Subpart D_How Does the Secretary Make an Award?



Sec. 396.30  How does the Secretary evaluate an application?

    (a) The Secretary evaluates applications under the procedures in 34 
CFR part 75.
    (b) The Secretary evaluates each application using selection 
criteria in Sec. 396.31.
    (c) In addition to the selection criteria described in paragraph (b) 
of this section, the Secretary evaluates each application using--
    (1) Selection criteria in 34 CFR 75.210;
    (2) Selection criteria established under 34 CFR 75.209; or
    (3) A combination of selection criteria established under 34 CFR 
75.209 and selection criteria in 34 CFR 75.210.

(Authority: 29 U.S.C. 771a(f))

[62 FR 10406, Mar. 6, 1997]



Sec. 396.31  What additional selection criteria are used under this 
program?

    In addition to the criteria in 34 CFR 396.30(c), the Secretary uses 
the following additional selection criterion to evaluate an application:
    (a) Demonstrated relationships with service providers and consumers. 
The Secretary reviews each application to determine the extent to 
which--
    (1) The proposed interpreter training project was developed in 
consultation with service providers;
    (2) The training is appropriate to the needs of both individuals who 
are deaf and individuals who are deaf-blind and to the needs of public 
and private agencies that provide services to either individuals who are 
deaf or individuals who are deaf-blind in the geographical area to be 
served by the training project;

[[Page 509]]

    (3) There is a working relationship between the interpreter training 
project and service providers; and
    (4) There are opportunities for individuals who are deaf and 
individuals who are deaf-blind to be involved in the training project.

(Authority: 29 U.S.C. 771a(f))

[62 FR 10406, Mar. 6, 1997]



Sec. 396.32  What additional factors does the Secretary consider in
making awards?

    In addition to the selection criteria listed in Sec. 396.31 and 34 
CFR 75.210, the Secretary, in making awards under this part, considers 
the geographical distribution of projects throughout the country, as 
appropriate, in order to best carry out the purposes of this program. To 
accomplish this, the Secretary may in any fiscal year make awards of 
regional or national scope.

(Authority: 29 U.S.C. 771a(f))

[59 FR 52220, Oct. 14, 1994, as amended at 62 FR 10406, Mar. 6, 1997]



Sec. 396.33  What priorities does the Secretary apply in making awards?

    The Secretary, in making awards under this part, gives priority to 
public or private nonprofit agencies or organizations with existing 
programs that have demonstrated their capacity for providing interpreter 
training services.

(Authority: 29 U.S.C. 771a(f))

                        PARTS 397	399 [RESERVED]

[[Page 511]]



                              FINDING AIDS




  --------------------------------------------------------------------

  A list of CFR titles, subtitles, chapters, subchapters, and parts and 
an alphabetical list of agencies publishing in the CFR are included in 
the CFR Index and Finding Aids volume to the Code of Federal Regulations 
which is published separately and revised annually.

  Table of CFR Titles and Chapters
  Alphabetical List of Agencies Appearing in the CFR
  List of CFR Sections Affected

[[Page 513]]



                    Table of CFR Titles and Chapters




                      (Revised as of July 1, 2013)

                      Title 1--General Provisions

         I  Administrative Committee of the Federal Register 
                (Parts 1--49)
        II  Office of the Federal Register (Parts 50--299)
       III  Administrative Conference of the United States (Parts 
                300--399)
        IV  Miscellaneous Agencies (Parts 400--500)

                    Title 2--Grants and Agreements

            Subtitle A--Office of Management and Budget Guidance 
                for Grants and Agreements
         I  Office of Management and Budget Governmentwide 
                Guidance for Grants and Agreements (Parts 2--199)
        II  Office of Management and Budget Circulars and Guidance 
                (200--299)
            Subtitle B--Federal Agency Regulations for Grants and 
                Agreements
       III  Department of Health and Human Services (Parts 300-- 
                399)
        IV  Department of Agriculture (Parts 400--499)
        VI  Department of State (Parts 600--699)
       VII  Agency for International Development (Parts 700--799)
      VIII  Department of Veterans Affairs (Parts 800--899)
        IX  Department of Energy (Parts 900--999)
        XI  Department of Defense (Parts 1100--1199)
       XII  Department of Transportation (Parts 1200--1299)
      XIII  Department of Commerce (Parts 1300--1399)
       XIV  Department of the Interior (Parts 1400--1499)
        XV  Environmental Protection Agency (Parts 1500--1599)
     XVIII  National Aeronautics and Space Administration (Parts 
                1800--1899)
        XX  United States Nuclear Regulatory Commission (Parts 
                2000--2099)
      XXII  Corporation for National and Community Service (Parts 
                2200--2299)
     XXIII  Social Security Administration (Parts 2300--2399)
      XXIV  Housing and Urban Development (Parts 2400--2499)
       XXV  National Science Foundation (Parts 2500--2599)
      XXVI  National Archives and Records Administration (Parts 
                2600--2699)
     XXVII  Small Business Administration (Parts 2700--2799)
    XXVIII  Department of Justice (Parts 2800--2899)

[[Page 514]]

       XXX  Department of Homeland Security (Parts 3000--3099)
      XXXI  Institute of Museum and Library Services (Parts 3100--
                3199)
     XXXII  National Endowment for the Arts (Parts 3200--3299)
    XXXIII  National Endowment for the Humanities (Parts 3300--
                3399)
     XXXIV  Department of Education (Parts 3400--3499)
      XXXV  Export-Import Bank of the United States (Parts 3500--
                3599)
    XXXVII  Peace Corps (Parts 3700--3799)
     LVIII  Election Assistance Commission (Parts 5800--5899)

                        Title 3--The President

         I  Executive Office of the President (Parts 100--199)

                           Title 4--Accounts

         I  Government Accountability Office (Parts 1--199)
        II  Recovery Accountability and Transparency Board (Parts 
                200--299)

                   Title 5--Administrative Personnel

         I  Office of Personnel Management (Parts 1--1199)
        II  Merit Systems Protection Board (Parts 1200--1299)
       III  Office of Management and Budget (Parts 1300--1399)
         V  The International Organizations Employees Loyalty 
                Board (Parts 1500--1599)
        VI  Federal Retirement Thrift Investment Board (Parts 
                1600--1699)
      VIII  Office of Special Counsel (Parts 1800--1899)
        IX  Appalachian Regional Commission (Parts 1900--1999)
        XI  Armed Forces Retirement Home (Parts 2100--2199)
       XIV  Federal Labor Relations Authority, General Counsel of 
                the Federal Labor Relations Authority and Federal 
                Service Impasses Panel (Parts 2400--2499)
        XV  Office of Administration, Executive Office of the 
                President (Parts 2500--2599)
       XVI  Office of Government Ethics (Parts 2600--2699)
       XXI  Department of the Treasury (Parts 3100--3199)
      XXII  Federal Deposit Insurance Corporation (Parts 3200--
                3299)
     XXIII  Department of Energy (Parts 3300--3399)
      XXIV  Federal Energy Regulatory Commission (Parts 3400--
                3499)
       XXV  Department of the Interior (Parts 3500--3599)
      XXVI  Department of Defense (Parts 3600-- 3699)
    XXVIII  Department of Justice (Parts 3800--3899)
      XXIX  Federal Communications Commission (Parts 3900--3999)
       XXX  Farm Credit System Insurance Corporation (Parts 4000--
                4099)
      XXXI  Farm Credit Administration (Parts 4100--4199)

[[Page 515]]

    XXXIII  Overseas Private Investment Corporation (Parts 4300--
                4399)
     XXXIV  Securities and Exchange Commission (Parts 4400--4499)
      XXXV  Office of Personnel Management (Parts 4500--4599)
    XXXVII  Federal Election Commission (Parts 4700--4799)
        XL  Interstate Commerce Commission (Parts 5000--5099)
       XLI  Commodity Futures Trading Commission (Parts 5100--
                5199)
      XLII  Department of Labor (Parts 5200--5299)
     XLIII  National Science Foundation (Parts 5300--5399)
       XLV  Department of Health and Human Services (Parts 5500--
                5599)
      XLVI  Postal Rate Commission (Parts 5600--5699)
     XLVII  Federal Trade Commission (Parts 5700--5799)
    XLVIII  Nuclear Regulatory Commission (Parts 5800--5899)
      XLIX  Federal Labor Relations Authority (Parts 5900--5999)
         L  Department of Transportation (Parts 6000--6099)
       LII  Export-Import Bank of the United States (Parts 6200--
                6299)
      LIII  Department of Education (Parts 6300--6399)
       LIV  Environmental Protection Agency (Parts 6400--6499)
        LV  National Endowment for the Arts (Parts 6500--6599)
       LVI  National Endowment for the Humanities (Parts 6600--
                6699)
      LVII  General Services Administration (Parts 6700--6799)
     LVIII  Board of Governors of the Federal Reserve System 
                (Parts 6800--6899)
       LIX  National Aeronautics and Space Administration (Parts 
                6900--6999)
        LX  United States Postal Service (Parts 7000--7099)
       LXI  National Labor Relations Board (Parts 7100--7199)
      LXII  Equal Employment Opportunity Commission (Parts 7200--
                7299)
     LXIII  Inter-American Foundation (Parts 7300--7399)
      LXIV  Merit Systems Protection Board (Parts 7400--7499)
       LXV  Department of Housing and Urban Development (Parts 
                7500--7599)
      LXVI  National Archives and Records Administration (Parts 
                7600--7699)
     LXVII  Institute of Museum and Library Services (Parts 7700--
                7799)
    LXVIII  Commission on Civil Rights (Parts 7800--7899)
      LXIX  Tennessee Valley Authority (Parts 7900--7999)
       LXX  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 8000--8099)
      LXXI  Consumer Product Safety Commission (Parts 8100--8199)
    LXXIII  Department of Agriculture (Parts 8300--8399)
     LXXIV  Federal Mine Safety and Health Review Commission 
                (Parts 8400--8499)
     LXXVI  Federal Retirement Thrift Investment Board (Parts 
                8600--8699)
    LXXVII  Office of Management and Budget (Parts 8700--8799)
      LXXX  Federal Housing Finance Agency (Parts 9000--9099)
    LXXXII  Special Inspector General for Iraq Reconstruction 
                (Parts 9200--9299)

[[Page 516]]

   LXXXIII  Special Inspector General for Afghanistan 
                Reconstruction (Parts 9300--9399)
    LXXXIV  Bureau of Consumer Financial Protection (Parts 9400--
                9499)
    LXXXVI  National Credit Union Administration (9600--9699)
     XCVII  Department of Homeland Security Human Resources 
                Management System (Department of Homeland 
                Security--Office of Personnel Management) (Parts 
                9700--9799)
     XCVII  Council of the Inspectors General on Integrity and 
                Efficiency (Parts 9800--9899)

                      Title 6--Domestic Security

         I  Department of Homeland Security, Office of the 
                Secretary (Parts 1--99)
         X  Privacy and Civil Liberties Oversight Board (Parts 
                1000--1099)

                         Title 7--Agriculture

            Subtitle A--Office of the Secretary of Agriculture 
                (Parts 0--26)
            Subtitle B--Regulations of the Department of 
                Agriculture
         I  Agricultural Marketing Service (Standards, 
                Inspections, Marketing Practices), Department of 
                Agriculture (Parts 27--209)
        II  Food and Nutrition Service, Department of Agriculture 
                (Parts 210--299)
       III  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 300--399)
        IV  Federal Crop Insurance Corporation, Department of 
                Agriculture (Parts 400--499)
         V  Agricultural Research Service, Department of 
                Agriculture (Parts 500--599)
        VI  Natural Resources Conservation Service, Department of 
                Agriculture (Parts 600--699)
       VII  Farm Service Agency, Department of Agriculture (Parts 
                700--799)
      VIII  Grain Inspection, Packers and Stockyards 
                Administration (Federal Grain Inspection Service), 
                Department of Agriculture (Parts 800--899)
        IX  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Fruits, Vegetables, Nuts), Department 
                of Agriculture (Parts 900--999)
         X  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Milk), Department of Agriculture 
                (Parts 1000--1199)
        XI  Agricultural Marketing Service (Marketing Agreements 
                and Orders; Miscellaneous Commodities), Department 
                of Agriculture (Parts 1200--1299)
       XIV  Commodity Credit Corporation, Department of 
                Agriculture (Parts 1400--1499)
        XV  Foreign Agricultural Service, Department of 
                Agriculture (Parts 1500--1599)

[[Page 517]]

       XVI  Rural Telephone Bank, Department of Agriculture (Parts 
                1600--1699)
      XVII  Rural Utilities Service, Department of Agriculture 
                (Parts 1700--1799)
     XVIII  Rural Housing Service, Rural Business-Cooperative 
                Service, Rural Utilities Service, and Farm Service 
                Agency, Department of Agriculture (Parts 1800--
                2099)
        XX  Local Television Loan Guarantee Board (Parts 2200--
                2299)
       XXV  Office of Advocacy and Outreach, Department of 
                Agriculture (Parts 2500--2599)
      XXVI  Office of Inspector General, Department of Agriculture 
                (Parts 2600--2699)
     XXVII  Office of Information Resources Management, Department 
                of Agriculture (Parts 2700--2799)
    XXVIII  Office of Operations, Department of Agriculture (Parts 
                2800--2899)
      XXIX  Office of Energy Policy and New Uses, Department of 
                Agriculture (Parts 2900--2999)
       XXX  Office of the Chief Financial Officer, Department of 
                Agriculture (Parts 3000--3099)
      XXXI  Office of Environmental Quality, Department of 
                Agriculture (Parts 3100--3199)
     XXXII  Office of Procurement and Property Management, 
                Department of Agriculture (Parts 3200--3299)
    XXXIII  Office of Transportation, Department of Agriculture 
                (Parts 3300--3399)
     XXXIV  National Institute of Food and Agriculture (Parts 
                3400--3499)
      XXXV  Rural Housing Service, Department of Agriculture 
                (Parts 3500--3599)
     XXXVI  National Agricultural Statistics Service, Department 
                of Agriculture (Parts 3600--3699)
    XXXVII  Economic Research Service, Department of Agriculture 
                (Parts 3700--3799)
   XXXVIII  World Agricultural Outlook Board, Department of 
                Agriculture (Parts 3800--3899)
       XLI  [Reserved]
      XLII  Rural Business-Cooperative Service and Rural Utilities 
                Service, Department of Agriculture (Parts 4200--
                4299)

                    Title 8--Aliens and Nationality

         I  Department of Homeland Security (Immigration and 
                Naturalization) (Parts 1--499)
         V  Executive Office for Immigration Review, Department of 
                Justice (Parts 1000--1399)

                 Title 9--Animals and Animal Products

         I  Animal and Plant Health Inspection Service, Department 
                of Agriculture (Parts 1--199)

[[Page 518]]

        II  Grain Inspection, Packers and Stockyards 
                Administration (Packers and Stockyards Programs), 
                Department of Agriculture (Parts 200--299)
       III  Food Safety and Inspection Service, Department of 
                Agriculture (Parts 300--599)

                           Title 10--Energy

         I  Nuclear Regulatory Commission (Parts 0--199)
        II  Department of Energy (Parts 200--699)
       III  Department of Energy (Parts 700--999)
         X  Department of Energy (General Provisions) (Parts 
                1000--1099)
      XIII  Nuclear Waste Technical Review Board (Parts 1300--
                1399)
      XVII  Defense Nuclear Facilities Safety Board (Parts 1700--
                1799)
     XVIII  Northeast Interstate Low-Level Radioactive Waste 
                Commission (Parts 1800--1899)

                      Title 11--Federal Elections

         I  Federal Election Commission (Parts 1--9099)
        II  Election Assistance Commission (Parts 9400--9499)

                      Title 12--Banks and Banking

         I  Comptroller of the Currency, Department of the 
                Treasury (Parts 1--199)
        II  Federal Reserve System (Parts 200--299)
       III  Federal Deposit Insurance Corporation (Parts 300--399)
        IV  Export-Import Bank of the United States (Parts 400--
                499)
         V  Office of Thrift Supervision, Department of the 
                Treasury (Parts 500--599)
        VI  Farm Credit Administration (Parts 600--699)
       VII  National Credit Union Administration (Parts 700--799)
      VIII  Federal Financing Bank (Parts 800--899)
        IX  Federal Housing Finance Board (Parts 900--999)
         X  Bureau of Consumer Financial Protection (Parts 1000--
                1099)
        XI  Federal Financial Institutions Examination Council 
                (Parts 1100--1199)
       XII  Federal Housing Finance Agency (Parts 1200--1299)
      XIII  Financial Stability Oversight Council (Parts 1300--
                1399)
       XIV  Farm Credit System Insurance Corporation (Parts 1400--
                1499)
        XV  Department of the Treasury (Parts 1500--1599)
       XVI  Office of Financial Research (Parts 1600--1699)
      XVII  Office of Federal Housing Enterprise Oversight, 
                Department of Housing and Urban Development (Parts 
                1700--1799)
     XVIII  Community Development Financial Institutions Fund, 
                Department of the Treasury (Parts 1800--1899)

[[Page 519]]

               Title 13--Business Credit and Assistance

         I  Small Business Administration (Parts 1--199)
       III  Economic Development Administration, Department of 
                Commerce (Parts 300--399)
        IV  Emergency Steel Guarantee Loan Board (Parts 400--499)
         V  Emergency Oil and Gas Guaranteed Loan Board (Parts 
                500--599)

                    Title 14--Aeronautics and Space

         I  Federal Aviation Administration, Department of 
                Transportation (Parts 1--199)
        II  Office of the Secretary, Department of Transportation 
                (Aviation Proceedings) (Parts 200--399)
       III  Commercial Space Transportation, Federal Aviation 
                Administration, Department of Transportation 
                (Parts 400--1199)
         V  National Aeronautics and Space Administration (Parts 
                1200--1299)
        VI  Air Transportation System Stabilization (Parts 1300--
                1399)

                 Title 15--Commerce and Foreign Trade

            Subtitle A--Office of the Secretary of Commerce (Parts 
                0--29)
            Subtitle B--Regulations Relating to Commerce and 
                Foreign Trade
         I  Bureau of the Census, Department of Commerce (Parts 
                30--199)
        II  National Institute of Standards and Technology, 
                Department of Commerce (Parts 200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  Foreign-Trade Zones Board, Department of Commerce 
                (Parts 400--499)
       VII  Bureau of Industry and Security, Department of 
                Commerce (Parts 700--799)
      VIII  Bureau of Economic Analysis, Department of Commerce 
                (Parts 800--899)
        IX  National Oceanic and Atmospheric Administration, 
                Department of Commerce (Parts 900--999)
        XI  Technology Administration, Department of Commerce 
                (Parts 1100--1199)
      XIII  East-West Foreign Trade Board (Parts 1300--1399)
       XIV  Minority Business Development Agency (Parts 1400--
                1499)
            Subtitle C--Regulations Relating to Foreign Trade 
                Agreements
        XX  Office of the United States Trade Representative 
                (Parts 2000--2099)
            Subtitle D--Regulations Relating to Telecommunications 
                and Information
     XXIII  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                2300--2399)

[[Page 520]]

                    Title 16--Commercial Practices

         I  Federal Trade Commission (Parts 0--999)
        II  Consumer Product Safety Commission (Parts 1000--1799)

             Title 17--Commodity and Securities Exchanges

         I  Commodity Futures Trading Commission (Parts 1--199)
        II  Securities and Exchange Commission (Parts 200--399)
        IV  Department of the Treasury (Parts 400--499)

          Title 18--Conservation of Power and Water Resources

         I  Federal Energy Regulatory Commission, Department of 
                Energy (Parts 1--399)
       III  Delaware River Basin Commission (Parts 400--499)
        VI  Water Resources Council (Parts 700--799)
      VIII  Susquehanna River Basin Commission (Parts 800--899)
      XIII  Tennessee Valley Authority (Parts 1300--1399)

                       Title 19--Customs Duties

         I  U.S. Customs and Border Protection, Department of 
                Homeland Security; Department of the Treasury 
                (Parts 0--199)
        II  United States International Trade Commission (Parts 
                200--299)
       III  International Trade Administration, Department of 
                Commerce (Parts 300--399)
        IV  U.S. Immigration and Customs Enforcement, Department 
                of Homeland Security (Parts 400--599)

                     Title 20--Employees' Benefits

         I  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 1--199)
        II  Railroad Retirement Board (Parts 200--399)
       III  Social Security Administration (Parts 400--499)
        IV  Employees' Compensation Appeals Board, Department of 
                Labor (Parts 500--599)
         V  Employment and Training Administration, Department of 
                Labor (Parts 600--699)
        VI  Office of Workers' Compensation Programs, Department 
                of Labor (Parts 700--799)
       VII  Benefits Review Board, Department of Labor (Parts 
                800--899)
      VIII  Joint Board for the Enrollment of Actuaries (Parts 
                900--999)
        IX  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 1000--1099)

[[Page 521]]

                       Title 21--Food and Drugs

         I  Food and Drug Administration, Department of Health and 
                Human Services (Parts 1--1299)
        II  Drug Enforcement Administration, Department of Justice 
                (Parts 1300--1399)
       III  Office of National Drug Control Policy (Parts 1400--
                1499)

                      Title 22--Foreign Relations

         I  Department of State (Parts 1--199)
        II  Agency for International Development (Parts 200--299)
       III  Peace Corps (Parts 300--399)
        IV  International Joint Commission, United States and 
                Canada (Parts 400--499)
         V  Broadcasting Board of Governors (Parts 500--599)
       VII  Overseas Private Investment Corporation (Parts 700--
                799)
        IX  Foreign Service Grievance Board (Parts 900--999)
         X  Inter-American Foundation (Parts 1000--1099)
        XI  International Boundary and Water Commission, United 
                States and Mexico, United States Section (Parts 
                1100--1199)
       XII  United States International Development Cooperation 
                Agency (Parts 1200--1299)
      XIII  Millennium Challenge Corporation (Parts 1300--1399)
       XIV  Foreign Service Labor Relations Board; Federal Labor 
                Relations Authority; General Counsel of the 
                Federal Labor Relations Authority; and the Foreign 
                Service Impasse Disputes Panel (Parts 1400--1499)
        XV  African Development Foundation (Parts 1500--1599)
       XVI  Japan-United States Friendship Commission (Parts 
                1600--1699)
      XVII  United States Institute of Peace (Parts 1700--1799)

                          Title 23--Highways

         I  Federal Highway Administration, Department of 
                Transportation (Parts 1--999)
        II  National Highway Traffic Safety Administration and 
                Federal Highway Administration, Department of 
                Transportation (Parts 1200--1299)
       III  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 1300--1399)

                Title 24--Housing and Urban Development

            Subtitle A--Office of the Secretary, Department of 
                Housing and Urban Development (Parts 0--99)
            Subtitle B--Regulations Relating to Housing and Urban 
                Development
         I  Office of Assistant Secretary for Equal Opportunity, 
                Department of Housing and Urban Development (Parts 
                100--199)

[[Page 522]]

        II  Office of Assistant Secretary for Housing-Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 200--299)
       III  Government National Mortgage Association, Department 
                of Housing and Urban Development (Parts 300--399)
        IV  Office of Housing and Office of Multifamily Housing 
                Assistance Restructuring, Department of Housing 
                and Urban Development (Parts 400--499)
         V  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 500--599)
        VI  Office of Assistant Secretary for Community Planning 
                and Development, Department of Housing and Urban 
                Development (Parts 600--699) [Reserved]
       VII  Office of the Secretary, Department of Housing and 
                Urban Development (Housing Assistance Programs and 
                Public and Indian Housing Programs) (Parts 700--
                799)
      VIII  Office of the Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Section 8 Housing Assistance 
                Programs, Section 202 Direct Loan Program, Section 
                202 Supportive Housing for the Elderly Program and 
                Section 811 Supportive Housing for Persons With 
                Disabilities Program) (Parts 800--899)
        IX  Office of Assistant Secretary for Public and Indian 
                Housing, Department of Housing and Urban 
                Development (Parts 900--1699)
         X  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Interstate Land Sales 
                Registration Program) (Parts 1700--1799)
       XII  Office of Inspector General, Department of Housing and 
                Urban Development (Parts 2000--2099)
        XV  Emergency Mortgage Insurance and Loan Programs, 
                Department of Housing and Urban Development (Parts 
                2700--2799)
        XX  Office of Assistant Secretary for Housing--Federal 
                Housing Commissioner, Department of Housing and 
                Urban Development (Parts 3200--3899)
      XXIV  Board of Directors of the HOPE for Homeowners Program 
                (Parts 4000--4099)
       XXV  Neighborhood Reinvestment Corporation (Parts 4100--
                4199)

                           Title 25--Indians

         I  Bureau of Indian Affairs, Department of the Interior 
                (Parts 1--299)
        II  Indian Arts and Crafts Board, Department of the 
                Interior (Parts 300--399)
       III  National Indian Gaming Commission, Department of the 
                Interior (Parts 500--599)
        IV  Office of Navajo and Hopi Indian Relocation (Parts 
                700--799)
         V  Bureau of Indian Affairs, Department of the Interior, 
                and Indian Health Service, Department of Health 
                and Human Services (Part 900)

[[Page 523]]

        VI  Office of the Assistant Secretary-Indian Affairs, 
                Department of the Interior (Parts 1000--1199)
       VII  Office of the Special Trustee for American Indians, 
                Department of the Interior (Parts 1200--1299)

                      Title 26--Internal Revenue

         I  Internal Revenue Service, Department of the Treasury 
                (Parts 1--End)

           Title 27--Alcohol, Tobacco Products and Firearms

         I  Alcohol and Tobacco Tax and Trade Bureau, Department 
                of the Treasury (Parts 1--399)
        II  Bureau of Alcohol, Tobacco, Firearms, and Explosives, 
                Department of Justice (Parts 400--699)

                   Title 28--Judicial Administration

         I  Department of Justice (Parts 0--299)
       III  Federal Prison Industries, Inc., Department of Justice 
                (Parts 300--399)
         V  Bureau of Prisons, Department of Justice (Parts 500--
                599)
        VI  Offices of Independent Counsel, Department of Justice 
                (Parts 600--699)
       VII  Office of Independent Counsel (Parts 700--799)
      VIII  Court Services and Offender Supervision Agency for the 
                District of Columbia (Parts 800--899)
        IX  National Crime Prevention and Privacy Compact Council 
                (Parts 900--999)
        XI  Department of Justice and Department of State (Parts 
                1100--1199)

                            Title 29--Labor

            Subtitle A--Office of the Secretary of Labor (Parts 
                0--99)
            Subtitle B--Regulations Relating to Labor
         I  National Labor Relations Board (Parts 100--199)
        II  Office of Labor-Management Standards, Department of 
                Labor (Parts 200--299)
       III  National Railroad Adjustment Board (Parts 300--399)
        IV  Office of Labor-Management Standards, Department of 
                Labor (Parts 400--499)
         V  Wage and Hour Division, Department of Labor (Parts 
                500--899)
        IX  Construction Industry Collective Bargaining Commission 
                (Parts 900--999)
         X  National Mediation Board (Parts 1200--1299)
       XII  Federal Mediation and Conciliation Service (Parts 
                1400--1499)
       XIV  Equal Employment Opportunity Commission (Parts 1600--
                1699)

[[Page 524]]

      XVII  Occupational Safety and Health Administration, 
                Department of Labor (Parts 1900--1999)
        XX  Occupational Safety and Health Review Commission 
                (Parts 2200--2499)
       XXV  Employee Benefits Security Administration, Department 
                of Labor (Parts 2500--2599)
     XXVII  Federal Mine Safety and Health Review Commission 
                (Parts 2700--2799)
        XL  Pension Benefit Guaranty Corporation (Parts 4000--
                4999)

                      Title 30--Mineral Resources

         I  Mine Safety and Health Administration, Department of 
                Labor (Parts 1--199)
        II  Bureau of Safety and Environmental Enforcement, 
                Department of the Interior (Parts 200--299)
        IV  Geological Survey, Department of the Interior (Parts 
                400--499)
         V  Bureau of Ocean Energy Management, Department of the 
                Interior (Parts 500--599)
       VII  Office of Surface Mining Reclamation and Enforcement, 
                Department of the Interior (Parts 700--999)
       XII  Office of Natural Resources Revenue, Department of the 
                Interior (Parts 1200--1299)

                 Title 31--Money and Finance: Treasury

            Subtitle A--Office of the Secretary of the Treasury 
                (Parts 0--50)
            Subtitle B--Regulations Relating to Money and Finance
         I  Monetary Offices, Department of the Treasury (Parts 
                51--199)
        II  Fiscal Service, Department of the Treasury (Parts 
                200--399)
        IV  Secret Service, Department of the Treasury (Parts 
                400--499)
         V  Office of Foreign Assets Control, Department of the 
                Treasury (Parts 500--599)
        VI  Bureau of Engraving and Printing, Department of the 
                Treasury (Parts 600--699)
       VII  Federal Law Enforcement Training Center, Department of 
                the Treasury (Parts 700--799)
      VIII  Office of International Investment, Department of the 
                Treasury (Parts 800--899)
        IX  Federal Claims Collection Standards (Department of the 
                Treasury--Department of Justice) (Parts 900--999)
         X  Financial Crimes Enforcement Network, Department of 
                the Treasury (Parts 1000--1099)

                      Title 32--National Defense

            Subtitle A--Department of Defense
         I  Office of the Secretary of Defense (Parts 1--399)

[[Page 525]]

         V  Department of the Army (Parts 400--699)
        VI  Department of the Navy (Parts 700--799)
       VII  Department of the Air Force (Parts 800--1099)
            Subtitle B--Other Regulations Relating to National 
                Defense
       XII  Defense Logistics Agency (Parts 1200--1299)
       XVI  Selective Service System (Parts 1600--1699)
      XVII  Office of the Director of National Intelligence (Parts 
                1700--1799)
     XVIII  National Counterintelligence Center (Parts 1800--1899)
       XIX  Central Intelligence Agency (Parts 1900--1999)
        XX  Information Security Oversight Office, National 
                Archives and Records Administration (Parts 2000--
                2099)
       XXI  National Security Council (Parts 2100--2199)
      XXIV  Office of Science and Technology Policy (Parts 2400--
                2499)
     XXVII  Office for Micronesian Status Negotiations (Parts 
                2700--2799)
    XXVIII  Office of the Vice President of the United States 
                (Parts 2800--2899)

               Title 33--Navigation and Navigable Waters

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Corps of Engineers, Department of the Army (Parts 
                200--399)
        IV  Saint Lawrence Seaway Development Corporation, 
                Department of Transportation (Parts 400--499)

                          Title 34--Education

            Subtitle A--Office of the Secretary, Department of 
                Education (Parts 1--99)
            Subtitle B--Regulations of the Offices of the 
                Department of Education
         I  Office for Civil Rights, Department of Education 
                (Parts 100--199)
        II  Office of Elementary and Secondary Education, 
                Department of Education (Parts 200--299)
       III  Office of Special Education and Rehabilitative 
                Services, Department of Education (Parts 300--399)
        IV  Office of Vocational and Adult Education, Department 
                of Education (Parts 400--499)
         V  Office of Bilingual Education and Minority Languages 
                Affairs, Department of Education (Parts 500--599)
        VI  Office of Postsecondary Education, Department of 
                Education (Parts 600--699)
       VII  Office of Educational Research and Improvement, 
                Department of Education (700--799) [Reserved]
            Subtitle C--Regulations Relating to Education
        XI  National Institute for Literacy (Parts 1100--1199)
       XII  National Council on Disability (Parts 1200--1299)

[[Page 526]]

                          Title 35 [Reserved]

             Title 36--Parks, Forests, and Public Property

         I  National Park Service, Department of the Interior 
                (Parts 1--199)
        II  Forest Service, Department of Agriculture (Parts 200--
                299)
       III  Corps of Engineers, Department of the Army (Parts 
                300--399)
        IV  American Battle Monuments Commission (Parts 400--499)
         V  Smithsonian Institution (Parts 500--599)
        VI  [Reserved]
       VII  Library of Congress (Parts 700--799)
      VIII  Advisory Council on Historic Preservation (Parts 800--
                899)
        IX  Pennsylvania Avenue Development Corporation (Parts 
                900--999)
         X  Presidio Trust (Parts 1000--1099)
        XI  Architectural and Transportation Barriers Compliance 
                Board (Parts 1100--1199)
       XII  National Archives and Records Administration (Parts 
                1200--1299)
        XV  Oklahoma City National Memorial Trust (Parts 1500--
                1599)
       XVI  Morris K. Udall Scholarship and Excellence in National 
                Environmental Policy Foundation (Parts 1600--1699)

             Title 37--Patents, Trademarks, and Copyrights

         I  United States Patent and Trademark Office, Department 
                of Commerce (Parts 1--199)
        II  Copyright Office, Library of Congress (Parts 200--299)
       III  Copyright Royalty Board, Library of Congress (Parts 
                300--399)
        IV  Assistant Secretary for Technology Policy, Department 
                of Commerce (Parts 400--599)

           Title 38--Pensions, Bonuses, and Veterans' Relief

         I  Department of Veterans Affairs (Parts 0--199)
        II  Armed Forces Retirement Home (Parts 200--299)

                       Title 39--Postal Service

         I  United States Postal Service (Parts 1--999)
       III  Postal Regulatory Commission (Parts 3000--3099)

                  Title 40--Protection of Environment

         I  Environmental Protection Agency (Parts 1--1099)
        IV  Environmental Protection Agency and Department of 
                Justice (Parts 1400--1499)
         V  Council on Environmental Quality (Parts 1500--1599)
        VI  Chemical Safety and Hazard Investigation Board (Parts 
                1600--1699)

[[Page 527]]

       VII  Environmental Protection Agency and Department of 
                Defense; Uniform National Discharge Standards for 
                Vessels of the Armed Forces (Parts 1700--1799)

          Title 41--Public Contracts and Property Management

            Subtitle A--Federal Procurement Regulations System 
                [Note]
            Subtitle B--Other Provisions Relating to Public 
                Contracts
        50  Public Contracts, Department of Labor (Parts 50-1--50-
                999)
        51  Committee for Purchase From People Who Are Blind or 
                Severely Disabled (Parts 51-1--51-99)
        60  Office of Federal Contract Compliance Programs, Equal 
                Employment Opportunity, Department of Labor (Parts 
                60-1--60-999)
        61  Office of the Assistant Secretary for Veterans' 
                Employment and Training Service, Department of 
                Labor (Parts 61-1--61-999)
   62--100  [Reserved]
            Subtitle C--Federal Property Management Regulations 
                System
       101  Federal Property Management Regulations (Parts 101-1--
                101-99)
       102  Federal Management Regulation (Parts 102-1--102-299)
  103--104  [Reserved]
       105  General Services Administration (Parts 105-1--105-999)
       109  Department of Energy Property Management Regulations 
                (Parts 109-1--109-99)
       114  Department of the Interior (Parts 114-1--114-99)
       115  Environmental Protection Agency (Parts 115-1--115-99)
       128  Department of Justice (Parts 128-1--128-99)
  129--200  [Reserved]
            Subtitle D--Other Provisions Relating to Property 
                Management [Reserved]
            Subtitle E--Federal Information Resources Management 
                Regulations System [Reserved]
            Subtitle F--Federal Travel Regulation System
       300  General (Parts 300-1--300-99)
       301  Temporary Duty (TDY) Travel Allowances (Parts 301-1--
                301-99)
       302  Relocation Allowances (Parts 302-1--302-99)
       303  Payment of Expenses Connected with the Death of 
                Certain Employees (Part 303-1--303-99)
       304  Payment of Travel Expenses from a Non-Federal Source 
                (Parts 304-1--304-99)

                        Title 42--Public Health

         I  Public Health Service, Department of Health and Human 
                Services (Parts 1--199)
        IV  Centers for Medicare & Medicaid Services, Department 
                of Health and Human Services (Parts 400--599)

[[Page 528]]

         V  Office of Inspector General-Health Care, Department of 
                Health and Human Services (Parts 1000--1999)

                   Title 43--Public Lands: Interior

            Subtitle A--Office of the Secretary of the Interior 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Lands
         I  Bureau of Reclamation, Department of the Interior 
                (Parts 400--999)
        II  Bureau of Land Management, Department of the Interior 
                (Parts 1000--9999)
       III  Utah Reclamation Mitigation and Conservation 
                Commission (Parts 10000--10099)

             Title 44--Emergency Management and Assistance

         I  Federal Emergency Management Agency, Department of 
                Homeland Security (Parts 0--399)
        IV  Department of Commerce and Department of 
                Transportation (Parts 400--499)

                       Title 45--Public Welfare

            Subtitle A--Department of Health and Human Services 
                (Parts 1--199)
            Subtitle B--Regulations Relating to Public Welfare
        II  Office of Family Assistance (Assistance Programs), 
                Administration for Children and Families, 
                Department of Health and Human Services (Parts 
                200--299)
       III  Office of Child Support Enforcement (Child Support 
                Enforcement Program), Administration for Children 
                and Families, Department of Health and Human 
                Services (Parts 300--399)
        IV  Office of Refugee Resettlement, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 400--499)
         V  Foreign Claims Settlement Commission of the United 
                States, Department of Justice (Parts 500--599)
        VI  National Science Foundation (Parts 600--699)
       VII  Commission on Civil Rights (Parts 700--799)
      VIII  Office of Personnel Management (Parts 800--899)
         X  Office of Community Services, Administration for 
                Children and Families, Department of Health and 
                Human Services (Parts 1000--1099)
        XI  National Foundation on the Arts and the Humanities 
                (Parts 1100--1199)
       XII  Corporation for National and Community Service (Parts 
                1200--1299)
      XIII  Office of Human Development Services, Department of 
                Health and Human Services (Parts 1300--1399)

[[Page 529]]

       XVI  Legal Services Corporation (Parts 1600--1699)
      XVII  National Commission on Libraries and Information 
                Science (Parts 1700--1799)
     XVIII  Harry S. Truman Scholarship Foundation (Parts 1800--
                1899)
       XXI  Commission on Fine Arts (Parts 2100--2199)
     XXIII  Arctic Research Commission (Part 2301)
      XXIV  James Madison Memorial Fellowship Foundation (Parts 
                2400--2499)
       XXV  Corporation for National and Community Service (Parts 
                2500--2599)

                          Title 46--Shipping

         I  Coast Guard, Department of Homeland Security (Parts 
                1--199)
        II  Maritime Administration, Department of Transportation 
                (Parts 200--399)
       III  Coast Guard (Great Lakes Pilotage), Department of 
                Homeland Security (Parts 400--499)
        IV  Federal Maritime Commission (Parts 500--599)

                      Title 47--Telecommunication

         I  Federal Communications Commission (Parts 0--199)
        II  Office of Science and Technology Policy and National 
                Security Council (Parts 200--299)
       III  National Telecommunications and Information 
                Administration, Department of Commerce (Parts 
                300--399)
        IV  National Telecommunications and Information 
                Administration, Department of Commerce, and 
                National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 400--499)

           Title 48--Federal Acquisition Regulations System

         1  Federal Acquisition Regulation (Parts 1--99)
         2  Defense Acquisition Regulations System, Department of 
                Defense (Parts 200--299)
         3  Health and Human Services (Parts 300--399)
         4  Department of Agriculture (Parts 400--499)
         5  General Services Administration (Parts 500--599)
         6  Department of State (Parts 600--699)
         7  Agency for International Development (Parts 700--799)
         8  Department of Veterans Affairs (Parts 800--899)
         9  Department of Energy (Parts 900--999)
        10  Department of the Treasury (Parts 1000--1099)
        12  Department of Transportation (Parts 1200--1299)
        13  Department of Commerce (Parts 1300--1399)
        14  Department of the Interior (Parts 1400--1499)

[[Page 530]]

        15  Environmental Protection Agency (Parts 1500--1599)
        16  Office of Personnel Management, Federal Employees 
                Health Benefits Acquisition Regulation (Parts 
                1600--1699)
        17  Office of Personnel Management (Parts 1700--1799)
        18  National Aeronautics and Space Administration (Parts 
                1800--1899)
        19  Broadcasting Board of Governors (Parts 1900--1999)
        20  Nuclear Regulatory Commission (Parts 2000--2099)
        21  Office of Personnel Management, Federal Employees 
                Group Life Insurance Federal Acquisition 
                Regulation (Parts 2100--2199)
        23  Social Security Administration (Parts 2300--2399)
        24  Department of Housing and Urban Development (Parts 
                2400--2499)
        25  National Science Foundation (Parts 2500--2599)
        28  Department of Justice (Parts 2800--2899)
        29  Department of Labor (Parts 2900--2999)
        30  Department of Homeland Security, Homeland Security 
                Acquisition Regulation (HSAR) (Parts 3000--3099)
        34  Department of Education Acquisition Regulation (Parts 
                3400--3499)
        51  Department of the Army Acquisition Regulations (Parts 
                5100--5199)
        52  Department of the Navy Acquisition Regulations (Parts 
                5200--5299)
        53  Department of the Air Force Federal Acquisition 
                Regulation Supplement (Parts 5300--5399) 
                [Reserved]
        54  Defense Logistics Agency, Department of Defense (Parts 
                5400--5499)
        57  African Development Foundation (Parts 5700--5799)
        61  Civilian Board of Contract Appeals, General Services 
                Administration (Parts 6100--6199)
        63  Department of Transportation Board of Contract Appeals 
                (Parts 6300--6399)
        99  Cost Accounting Standards Board, Office of Federal 
                Procurement Policy, Office of Management and 
                Budget (Parts 9900--9999)

                       Title 49--Transportation

            Subtitle A--Office of the Secretary of Transportation 
                (Parts 1--99)
            Subtitle B--Other Regulations Relating to 
                Transportation
         I  Pipeline and Hazardous Materials Safety 
                Administration, Department of Transportation 
                (Parts 100--199)
        II  Federal Railroad Administration, Department of 
                Transportation (Parts 200--299)
       III  Federal Motor Carrier Safety Administration, 
                Department of Transportation (Parts 300--399)
        IV  Coast Guard, Department of Homeland Security (Parts 
                400--499)

[[Page 531]]

         V  National Highway Traffic Safety Administration, 
                Department of Transportation (Parts 500--599)
        VI  Federal Transit Administration, Department of 
                Transportation (Parts 600--699)
       VII  National Railroad Passenger Corporation (AMTRAK) 
                (Parts 700--799)
      VIII  National Transportation Safety Board (Parts 800--999)
         X  Surface Transportation Board, Department of 
                Transportation (Parts 1000--1399)
        XI  Research and Innovative Technology Administration, 
                Department of Transportation (Parts 1400--1499) 
                [Reserved]
       XII  Transportation Security Administration, Department of 
                Homeland Security (Parts 1500--1699)

                   Title 50--Wildlife and Fisheries

         I  United States Fish and Wildlife Service, Department of 
                the Interior (Parts 1--199)
        II  National Marine Fisheries Service, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 200--299)
       III  International Fishing and Related Activities (Parts 
                300--399)
        IV  Joint Regulations (United States Fish and Wildlife 
                Service, Department of the Interior and National 
                Marine Fisheries Service, National Oceanic and 
                Atmospheric Administration, Department of 
                Commerce); Endangered Species Committee 
                Regulations (Parts 400--499)
         V  Marine Mammal Commission (Parts 500--599)
        VI  Fishery Conservation and Management, National Oceanic 
                and Atmospheric Administration, Department of 
                Commerce (Parts 600--699)

                      CFR Index and Finding Aids

            Subject/Agency Index
            List of Agency Prepared Indexes
            Parallel Tables of Statutory Authorities and Rules
            List of CFR Titles, Chapters, Subchapters, and Parts
            Alphabetical List of Agencies Appearing in the CFR

[[Page 533]]





           Alphabetical List of Agencies Appearing in the CFR




                      (Revised as of July 1, 2013)

                                                  CFR Title, Subtitle or 
                     Agency                               Chapter

Administrative Committee of the Federal Register  1, I
Administrative Conference of the United States    1, III
Advisory Council on Historic Preservation         36, VIII
Advocacy and Outreach, Office of                  7, XXV
Afghanistan Reconstruction, Special Inspector     22, LXXXIII
     General for
African Development Foundation                    22, XV
  Federal Acquisition Regulation                  48, 57
Agency for International Development              2, VII; 22, II
  Federal Acquisition Regulation                  48, 7
Agricultural Marketing Service                    7, I, IX, X, XI
Agricultural Research Service                     7, V
Agriculture Department                            2, IV; 5, LXXIII
  Advocacy and Outreach, Office of                7, XXV
  Agricultural Marketing Service                  7, I, IX, X, XI
  Agricultural Research Service                   7, V
  Animal and Plant Health Inspection Service      7, III; 9, I
  Chief Financial Officer, Office of              7, XXX
  Commodity Credit Corporation                    7, XIV
  Economic Research Service                       7, XXXVII
  Energy Policy and New Uses, Office of           2, IX; 7, XXIX
  Environmental Quality, Office of                7, XXXI
  Farm Service Agency                             7, VII, XVIII
  Federal Acquisition Regulation                  48, 4
  Federal Crop Insurance Corporation              7, IV
  Food and Nutrition Service                      7, II
  Food Safety and Inspection Service              9, III
  Foreign Agricultural Service                    7, XV
  Forest Service                                  36, II
  Grain Inspection, Packers and Stockyards        7, VIII; 9, II
       Administration
  Information Resources Management, Office of     7, XXVII
  Inspector General, Office of                    7, XXVI
  National Agricultural Library                   7, XLI
  National Agricultural Statistics Service        7, XXXVI
  National Institute of Food and Agriculture      7, XXXIV
  Natural Resources Conservation Service          7, VI
  Operations, Office of                           7, XXVIII
  Procurement and Property Management, Office of  7, XXXII
  Rural Business-Cooperative Service              7, XVIII, XLII, L
  Rural Development Administration                7, XLII
  Rural Housing Service                           7, XVIII, XXXV, L
  Rural Telephone Bank                            7, XVI
  Rural Utilities Service                         7, XVII, XVIII, XLII, L
  Secretary of Agriculture, Office of             7, Subtitle A
  Transportation, Office of                       7, XXXIII
  World Agricultural Outlook Board                7, XXXVIII
Air Force Department                              32, VII
  Federal Acquisition Regulation Supplement       48, 53
Air Transportation Stabilization Board            14, VI
Alcohol and Tobacco Tax and Trade Bureau          27, I
Alcohol, Tobacco, Firearms, and Explosives,       27, II
     Bureau of
AMTRAK                                            49, VII
American Battle Monuments Commission              36, IV
American Indians, Office of the Special Trustee   25, VII

[[Page 534]]

Animal and Plant Health Inspection Service        7, III; 9, I
Appalachian Regional Commission                   5, IX
Architectural and Transportation Barriers         36, XI
     Compliance Board
Arctic Research Commission                        45, XXIII
Armed Forces Retirement Home                      5, XI
Army Department                                   32, V
  Engineers, Corps of                             33, II; 36, III
  Federal Acquisition Regulation                  48, 51
Bilingual Education and Minority Languages        34, V
     Affairs, Office of
Blind or Severely Disabled, Committee for         41, 51
     Purchase from People Who Are
Broadcasting Board of Governors                   22, V
  Federal Acquisition Regulation                  48, 19
Bureau of Ocean Energy Management, Regulation,    30, II
     and Enforcement
Census Bureau                                     15, I
Centers for Medicare & Medicaid Services          42, IV
Central Intelligence Agency                       32, XIX
Chemical Safety and Hazardous Investigation       40, VI
     Board
Chief Financial Officer, Office of                7, XXX
Child Support Enforcement, Office of              45, III
Children and Families, Administration for         45, II, III, IV, X
Civil Rights, Commission on                       5, LXVIII; 45, VII
Civil Rights, Office for                          34, I
Council of the Inspectors General on Integrity    5, XCVIII
     and Efficiency
Court Services and Offender Supervision Agency    5, LXX
     for the District of Columbia
Coast Guard                                       33, I; 46, I; 49, IV
Coast Guard (Great Lakes Pilotage)                46, III
Commerce Department                               2, XIII; 44, IV; 50, VI
  Census Bureau                                   15, I
  Economic Analysis, Bureau of                    15, VIII
  Economic Development Administration             13, III
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 13
  Foreign-Trade Zones Board                       15, IV
  Industry and Security, Bureau of                15, VII
  International Trade Administration              15, III; 19, III
  National Institute of Standards and Technology  15, II
  National Marine Fisheries Service               50, II, IV
  National Oceanic and Atmospheric                15, IX; 50, II, III, IV, 
       Administration                             VI
  National Telecommunications and Information     15, XXIII; 47, III, IV
       Administration
  National Weather Service                        15, IX
  Patent and Trademark Office, United States      37, I
  Productivity, Technology and Innovation,        37, IV
       Assistant Secretary for
  Secretary of Commerce, Office of                15, Subtitle A
  Technology Administration                       15, XI
  Technology Policy, Assistant Secretary for      37, IV
Commercial Space Transportation                   14, III
Commodity Credit Corporation                      7, XIV
Commodity Futures Trading Commission              5, XLI; 17, I
Community Planning and Development, Office of     24, V, VI
     Assistant Secretary for
Community Services, Office of                     45, X
Comptroller of the Currency                       12, I
Construction Industry Collective Bargaining       29, IX
     Commission
Consumer Financial Protection Bureau              5, LXXXIV; 12, X
Consumer Product Safety Commission                5, LXXI; 16, II
Copyright Office                                  37, II
Copyright Royalty Board                           37, III
Corporation for National and Community Service    2, XXII; 45, XII, XXV
Cost Accounting Standards Board                   48, 99
Council on Environmental Quality                  40, V
Court Services and Offender Supervision Agency    5, LXX; 28, VIII
   for the District of Columbia
[[Page 535]]

Customs and Border Protection                     19, I
Defense Contract Audit Agency                     32, I
Defense Department                                2, XI; 5, XXVI; 32, 
                                                  Subtitle A; 40, VII
  Advanced Research Projects Agency               32, I
  Air Force Department                            32, VII
  Army Department                                 32, V; 33, II; 36, III, 
                                                  48, 51
  Defense Acquisition Regulations System          48, 2
  Defense Intelligence Agency                     32, I
  Defense Logistics Agency                        32, I, XII; 48, 54
  Engineers, Corps of                             33, II; 36, III
  National Imagery and Mapping Agency             32, I
  Navy Department                                 32, VI; 48, 52
  Secretary of Defense, Office of                 2, XI; 32, I
Defense Contract Audit Agency                     32, I
Defense Intelligence Agency                       32, I
Defense Logistics Agency                          32, XII; 48, 54
Defense Nuclear Facilities Safety Board           10, XVII
Delaware River Basin Commission                   18, III
District of Columbia, Court Services and          5, LXX; 28, VIII
     Offender Supervision Agency for the
Drug Enforcement Administration                   21, II
East-West Foreign Trade Board                     15, XIII
Economic Analysis, Bureau of                      15, VIII
Economic Development Administration               13, III
Economic Research Service                         7, XXXVII
Education, Department of                          2, XXXIV; 5, LIII
  Bilingual Education and Minority Languages      34, V
       Affairs, Office of
  Civil Rights, Office for                        34, I
  Educational Research and Improvement, Office    34, VII
       of
  Elementary and Secondary Education, Office of   34, II
  Federal Acquisition Regulation                  48, 34
  Postsecondary Education, Office of              34, VI
  Secretary of Education, Office of               34, Subtitle A
  Special Education and Rehabilitative Services,  34, III
       Office of
  Vocational and Adult Education, Office of       34, IV
Educational Research and Improvement, Office of   34, VII
Election Assistance Commission                    2, LVIII; 11, II
Elementary and Secondary Education, Office of     34, II
Emergency Oil and Gas Guaranteed Loan Board       13, V
Emergency Steel Guarantee Loan Board              13, IV
Employee Benefits Security Administration         29, XXV
Employees' Compensation Appeals Board             20, IV
Employees Loyalty Board                           5, V
Employment and Training Administration            20, V
Employment Standards Administration               20, VI
Endangered Species Committee                      50, IV
Energy, Department of                             2, IX; 5, XXIII; 10, II, 
                                                  III, X
  Federal Acquisition Regulation                  48, 9
  Federal Energy Regulatory Commission            5, XXIV; 18, I
  Property Management Regulations                 41, 109
Energy, Office of                                 7, XXIX
Engineers, Corps of                               33, II; 36, III
Engraving and Printing, Bureau of                 31, VI
Environmental Protection Agency                   2, XV; 5, LIV; 40, I, IV, 
                                                  VII
  Federal Acquisition Regulation                  48, 15
  Property Management Regulations                 41, 115
Environmental Quality, Office of                  7, XXXI
Equal Employment Opportunity Commission           5, LXII; 29, XIV
Equal Opportunity, Office of Assistant Secretary  24, I
     for
Executive Office of the President                 3, I
  Administration, Office of                       5, XV
  Environmental Quality, Council on               40, V

[[Page 536]]

  Management and Budget, Office of                2, Subtitle A; 5, III, 
                                                  LXXVII; 14, VI; 48, 99
  National Drug Control Policy, Office of         21, III
  National Security Council                       32, XXI; 47, 2
  Presidential Documents                          3
  Science and Technology Policy, Office of        32, XXIV; 47, II
  Trade Representative, Office of the United      15, XX
       States
Export-Import Bank of the United States           2, XXXV; 5, LII; 12, IV
Family Assistance, Office of                      45, II
Farm Credit Administration                        5, XXXI; 12, VI
Farm Credit System Insurance Corporation          5, XXX; 12, XIV
Farm Service Agency                               7, VII, XVIII
Federal Acquisition Regulation                    48, 1
Federal Aviation Administration                   14, I
  Commercial Space Transportation                 14, III
Federal Claims Collection Standards               31, IX
Federal Communications Commission                 5, XXIX; 47, I
Federal Contract Compliance Programs, Office of   41, 60
Federal Crop Insurance Corporation                7, IV
Federal Deposit Insurance Corporation             5, XXII; 12, III
Federal Election Commission                       5, XXXVII; 11, I
Federal Emergency Management Agency               44, I
Federal Employees Group Life Insurance Federal    48, 21
     Acquisition Regulation
Federal Employees Health Benefits Acquisition     48, 16
     Regulation
Federal Energy Regulatory Commission              5, XXIV; 18, I
Federal Financial Institutions Examination        12, XI
     Council
Federal Financing Bank                            12, VIII
Federal Highway Administration                    23, I, II
Federal Home Loan Mortgage Corporation            1, IV
Federal Housing Enterprise Oversight Office       12, XVII
Federal Housing Finance Agency                    5, LXXX; 12, XII
Federal Housing Finance Board                     12, IX
Federal Labor Relations Authority                 5, XIV, XLIX; 22, XIV
Federal Law Enforcement Training Center           31, VII
Federal Management Regulation                     41, 102
Federal Maritime Commission                       46, IV
Federal Mediation and Conciliation Service        29, XII
Federal Mine Safety and Health Review Commission  5, LXXIV; 29, XXVII
Federal Motor Carrier Safety Administration       49, III
Federal Prison Industries, Inc.                   28, III
Federal Procurement Policy Office                 48, 99
Federal Property Management Regulations           41, 101
Federal Railroad Administration                   49, II
Federal Register, Administrative Committee of     1, I
Federal Register, Office of                       1, II
Federal Reserve System                            12, II
  Board of Governors                              5, LVIII
Federal Retirement Thrift Investment Board        5, VI, LXXVI
Federal Service Impasses Panel                    5, XIV
Federal Trade Commission                          5, XLVII; 16, I
Federal Transit Administration                    49, VI
Federal Travel Regulation System                  41, Subtitle F
Financial Crimes Enforcement Network              31, X
Financial Research Office                         12, XVI
Financial Stability Oversight Council             12, XIII
Fine Arts, Commission on                          45, XXI
Fiscal Service                                    31, II
Fish and Wildlife Service, United States          50, I, IV
Food and Drug Administration                      21, I
Food and Nutrition Service                        7, II
Food Safety and Inspection Service                9, III
Foreign Agricultural Service                      7, XV
Foreign Assets Control, Office of                 31, V
Foreign Claims Settlement Commission of the       45, V
     United States
Foreign Service Grievance Board                   22, IX
Foreign Service Impasse Disputes Panel            22, XIV

[[Page 537]]

Foreign Service Labor Relations Board             22, XIV
Foreign-Trade Zones Board                         15, IV
Forest Service                                    36, II
General Services Administration                   5, LVII; 41, 105
  Contract Appeals, Board of                      48, 61
  Federal Acquisition Regulation                  48, 5
  Federal Management Regulation                   41, 102
  Federal Property Management Regulations         41, 101
  Federal Travel Regulation System                41, Subtitle F
  General                                         41, 300
  Payment From a Non-Federal Source for Travel    41, 304
       Expenses
  Payment of Expenses Connected With the Death    41, 303
       of Certain Employees
  Relocation Allowances                           41, 302
  Temporary Duty (TDY) Travel Allowances          41, 301
Geological Survey                                 30, IV
Government Accountability Office                  4, I
Government Ethics, Office of                      5, XVI
Government National Mortgage Association          24, III
Grain Inspection, Packers and Stockyards          7, VIII; 9, II
     Administration
Harry S. Truman Scholarship Foundation            45, XVIII
Health and Human Services, Department of          2, III; 5, XLV; 45, 
                                                  Subtitle A,
  Centers for Medicare & Medicaid Services        42, IV
  Child Support Enforcement, Office of            45, III
  Children and Families, Administration for       45, II, III, IV, X
  Community Services, Office of                   45, X
  Family Assistance, Office of                    45, II
  Federal Acquisition Regulation                  48, 3
  Food and Drug Administration                    21, I
  Human Development Services, Office of           45, XIII
  Indian Health Service                           25, V
  Inspector General (Health Care), Office of      42, V
  Public Health Service                           42, I
  Refugee Resettlement, Office of                 45, IV
Homeland Security, Department of                  2, XXX; 6, I; 8, I
  Coast Guard                                     33, I; 46, I; 49, IV
  Coast Guard (Great Lakes Pilotage)              46, III
  Customs and Border Protection                   19, I
  Federal Emergency Management Agency             44, I
  Human Resources Management and Labor Relations  5, XCVII
       Systems
  Immigration and Customs Enforcement Bureau      19, IV
  Transportation Security Administration          49, XII
HOPE for Homeowners Program, Board of Directors   24, XXIV
     of
Housing and Urban Development, Department of      2, XXIV; 5, LXV; 24, 
                                                  Subtitle B
  Community Planning and Development, Office of   24, V, VI
       Assistant Secretary for
  Equal Opportunity, Office of Assistant          24, I
       Secretary for
  Federal Acquisition Regulation                  48, 24
  Federal Housing Enterprise Oversight, Office    12, XVII
       of
  Government National Mortgage Association        24, III
  Housing--Federal Housing Commissioner, Office   24, II, VIII, X, XX
       of Assistant Secretary for
  Housing, Office of, and Multifamily Housing     24, IV
       Assistance Restructuring, Office of
  Inspector General, Office of                    24, XII
  Public and Indian Housing, Office of Assistant  24, IX
       Secretary for
  Secretary, Office of                            24, Subtitle A, VII
Housing--Federal Housing Commissioner, Office of  24, II, VIII, X, XX
     Assistant Secretary for
Housing, Office of, and Multifamily Housing       24, IV
     Assistance Restructuring, Office of
Human Development Services, Office of             45, XIII
Immigration and Customs Enforcement Bureau        19, IV
Immigration Review, Executive Office for          8, V

[[Page 538]]

Independent Counsel, Office of                    28, VII
Indian Affairs, Bureau of                         25, I, V
Indian Affairs, Office of the Assistant           25, VI
     Secretary
Indian Arts and Crafts Board                      25, II
Indian Health Service                             25, V
Industry and Security, Bureau of                  15, VII
Information Resources Management, Office of       7, XXVII
Information Security Oversight Office, National   32, XX
     Archives and Records Administration
Inspector General
  Agriculture Department                          7, XXVI
  Health and Human Services Department            42, V
  Housing and Urban Development Department        24, XII, XV
Institute of Peace, United States                 22, XVII
Inter-American Foundation                         5, LXIII; 22, X
Interior Department                               2, XIV
  American Indians, Office of the Special         25, VII
       Trustee
  Bureau of Ocean Energy Management, Regulation,  30, II
       and Enforcement
  Endangered Species Committee                    50, IV
  Federal Acquisition Regulation                  48, 14
  Federal Property Management Regulations System  41, 114
  Fish and Wildlife Service, United States        50, I, IV
  Geological Survey                               30, IV
  Indian Affairs, Bureau of                       25, I, V
  Indian Affairs, Office of the Assistant         25, VI
       Secretary
  Indian Arts and Crafts Board                    25, II
  Land Management, Bureau of                      43, II
  National Indian Gaming Commission               25, III
  National Park Service                           36, I
  Natural Resource Revenue, Office of             30, XII
  Ocean Energy Management, Bureau of              30, V
  Reclamation, Bureau of                          43, I
  Secretary of the Interior, Office of            2, XIV; 43, Subtitle A
  Surface Mining Reclamation and Enforcement,     30, VII
       Office of
Internal Revenue Service                          26, I
International Boundary and Water Commission,      22, XI
     United States and Mexico, United States 
     Section
International Development, United States Agency   22, II
     for
  Federal Acquisition Regulation                  48, 7
International Development Cooperation Agency,     22, XII
     United States
International Joint Commission, United States     22, IV
     and Canada
International Organizations Employees Loyalty     5, V
     Board
International Trade Administration                15, III; 19, III
International Trade Commission, United States     19, II
Interstate Commerce Commission                    5, XL
Investment Security, Office of                    31, VIII
Iraq Reconstruction, Special Inspector General    5, LXXXVII
     for
James Madison Memorial Fellowship Foundation      45, XXIV
Japan-United States Friendship Commission         22, XVI
Joint Board for the Enrollment of Actuaries       20, VIII
Justice Department                                2, XXVIII; 5, XXVIII; 28, 
                                                  I, XI; 40, IV
  Alcohol, Tobacco, Firearms, and Explosives,     27, II
       Bureau of
  Drug Enforcement Administration                 21, II
  Federal Acquisition Regulation                  48, 28
  Federal Claims Collection Standards             31, IX
  Federal Prison Industries, Inc.                 28, III
  Foreign Claims Settlement Commission of the     45, V
       United States
  Immigration Review, Executive Office for        8, V
  Offices of Independent Counsel                  28, VI
  Prisons, Bureau of                              28, V
  Property Management Regulations                 41, 128
Labor Department                                  5, XLII
  Employee Benefits Security Administration       29, XXV

[[Page 539]]

  Employees' Compensation Appeals Board           20, IV
  Employment and Training Administration          20, V
  Employment Standards Administration             20, VI
  Federal Acquisition Regulation                  48, 29
  Federal Contract Compliance Programs, Office    41, 60
       of
  Federal Procurement Regulations System          41, 50
  Labor-Management Standards, Office of           29, II, IV
  Mine Safety and Health Administration           30, I
  Occupational Safety and Health Administration   29, XVII
  Office of Workers' Compensation Programs        20, VII
  Public Contracts                                41, 50
  Secretary of Labor, Office of                   29, Subtitle A
  Veterans' Employment and Training Service,      41, 61; 20, IX
       Office of the Assistant Secretary for
  Wage and Hour Division                          29, V
  Workers' Compensation Programs, Office of       20, I
Labor-Management Standards, Office of             29, II, IV
Land Management, Bureau of                        43, II
Legal Services Corporation                        45, XVI
Library of Congress                               36, VII
  Copyright Office                                37, II
  Copyright Royalty Board                         37, III
Local Television Loan Guarantee Board             7, XX
Management and Budget, Office of                  5, III, LXXVII; 14, VI; 
                                                  48, 99
Marine Mammal Commission                          50, V
Maritime Administration                           46, II
Merit Systems Protection Board                    5, II, LXIV
Micronesian Status Negotiations, Office for       32, XXVII
Millennium Challenge Corporation                  22, XIII
Mine Safety and Health Administration             30, I
Minority Business Development Agency              15, XIV
Miscellaneous Agencies                            1, IV
Monetary Offices                                  31, I
Morris K. Udall Scholarship and Excellence in     36, XVI
     National Environmental Policy Foundation
Museum and Library Services, Institute of         2, XXXI
National Aeronautics and Space Administration     2, XVIII; 5, LIX; 14, V
  Federal Acquisition Regulation                  48, 18
National Agricultural Library                     7, XLI
National Agricultural Statistics Service          7, XXXVI
National and Community Service, Corporation for   2, XXII; 45, XII, XXV
National Archives and Records Administration      2, XXVI; 5, LXVI; 36, XII
  Information Security Oversight Office           32, XX
National Capital Planning Commission              1, IV
National Commission for Employment Policy         1, IV
National Commission on Libraries and Information  45, XVII
     Science
National Council on Disability                    34, XII
National Counterintelligence Center               32, XVIII
National Credit Union Administration              5, LXXXVI; 12, VII
National Crime Prevention and Privacy Compact     28, IX
     Council
National Drug Control Policy, Office of           21, III
National Endowment for the Arts                   2, XXXII
National Endowment for the Humanities             2, XXXIII
National Foundation on the Arts and the           45, XI
     Humanities
National Highway Traffic Safety Administration    23, II, III; 47, VI; 49, V
National Imagery and Mapping Agency               32, I
National Indian Gaming Commission                 25, III
National Institute for Literacy                   34, XI
National Institute of Food and Agriculture        7, XXXIV
National Institute of Standards and Technology    15, II
National Intelligence, Office of Director of      32, XVII
National Labor Relations Board                    5, LXI; 29, I
National Marine Fisheries Service                 50, II, IV
National Mediation Board                          29, X
National Oceanic and Atmospheric Administration   15, IX; 50, II, III, IV, 
                                                  VI

[[Page 540]]

National Park Service                             36, I
National Railroad Adjustment Board                29, III
National Railroad Passenger Corporation (AMTRAK)  49, VII
National Science Foundation                       2, XXV; 5, XLIII; 45, VI
  Federal Acquisition Regulation                  48, 25
National Security Council                         32, XXI
National Security Council and Office of Science   47, II
     and Technology Policy
National Telecommunications and Information       15, XXIII; 47, III, IV
     Administration
National Transportation Safety Board              49, VIII
Natural Resources Conservation Service            7, VI
Natural Resource Revenue, Office of               30, XII
Navajo and Hopi Indian Relocation, Office of      25, IV
Navy Department                                   32, VI
  Federal Acquisition Regulation                  48, 52
Neighborhood Reinvestment Corporation             24, XXV
Northeast Interstate Low-Level Radioactive Waste  10, XVIII
     Commission
Nuclear Regulatory Commission                     2, XX; 5, XLVIII; 10, I
  Federal Acquisition Regulation                  48, 20
Occupational Safety and Health Administration     29, XVII
Occupational Safety and Health Review Commission  29, XX
Ocean Energy Management, Bureau of                30, V
Offices of Independent Counsel                    28, VI
Office of Workers' Compensation Programs          20, VII
Oklahoma City National Memorial Trust             36, XV
Operations Office                                 7, XXVIII
Overseas Private Investment Corporation           5, XXXIII; 22, VII
Patent and Trademark Office, United States        37, I
Payment From a Non-Federal Source for Travel      41, 304
     Expenses
Payment of Expenses Connected With the Death of   41, 303
     Certain Employees
Peace Corps                                       2, XXXVII; 22, III
Pennsylvania Avenue Development Corporation       36, IX
Pension Benefit Guaranty Corporation              29, XL
Personnel Management, Office of                   5, I, XXXV; 45, VIII
  Human Resources Management and Labor Relations  5, XCVII
       Systems, Department of Homeland Security
  Federal Acquisition Regulation                  48, 17
  Federal Employees Group Life Insurance Federal  48, 21
       Acquisition Regulation
  Federal Employees Health Benefits Acquisition   48, 16
       Regulation
Pipeline and Hazardous Materials Safety           49, I
     Administration
Postal Regulatory Commission                      5, XLVI; 39, III
Postal Service, United States                     5, LX; 39, I
Postsecondary Education, Office of                34, VI
President's Commission on White House             1, IV
     Fellowships
Presidential Documents                            3
Presidio Trust                                    36, X
Prisons, Bureau of                                28, V
Private and Civil Liberties Oversight Board       6, X
Procurement and Property Management, Office of    7, XXXII
Productivity, Technology and Innovation,          37, IV
     Assistant Secretary
Public Contracts, Department of Labor             41, 50
Public and Indian Housing, Office of Assistant    24, IX
     Secretary for
Public Health Service                             42, I
Railroad Retirement Board                         20, II
Reclamation, Bureau of                            43, I
Recovery Accountability and Transparency Board    4, II
Refugee Resettlement, Office of                   45, IV
Relocation Allowances                             41, 302
Research and Innovative Technology                49, XI
     Administration
Rural Business-Cooperative Service                7, XVIII, XLII, L
Rural Development Administration                  7, XLII
Rural Housing Service                             7, XVIII, XXXV, L

[[Page 541]]

Rural Telephone Bank                              7, XVI
Rural Utilities Service                           7, XVII, XVIII, XLII, L
Saint Lawrence Seaway Development Corporation     33, IV
Science and Technology Policy, Office of          32, XXIV
Science and Technology Policy, Office of, and     47, II
     National Security Council
Secret Service                                    31, IV
Securities and Exchange Commission                5, XXXIV; 17, II
Selective Service System                          32, XVI
Small Business Administration                     2, XXVII; 13, I
Smithsonian Institution                           36, V
Social Security Administration                    2, XXIII; 20, III; 48, 23
Soldiers' and Airmen's Home, United States        5, XI
Special Counsel, Office of                        5, VIII
Special Education and Rehabilitative Services,    34, III
     Office of
State Department                                  2, VI; 22, I; 28, XI
  Federal Acquisition Regulation                  48, 6
Surface Mining Reclamation and Enforcement,       30, VII
     Office of
Surface Transportation Board                      49, X
Susquehanna River Basin Commission                18, VIII
Technology Administration                         15, XI
Technology Policy, Assistant Secretary for        37, IV
Tennessee Valley Authority                        5, LXIX; 18, XIII
Thrift Supervision Office, Department of the      12, V
     Treasury
Trade Representative, United States, Office of    15, XX
Transportation, Department of                     2, XII; 5, L
  Commercial Space Transportation                 14, III
  Contract Appeals, Board of                      48, 63
  Emergency Management and Assistance             44, IV
  Federal Acquisition Regulation                  48, 12
  Federal Aviation Administration                 14, I
  Federal Highway Administration                  23, I, II
  Federal Motor Carrier Safety Administration     49, III
  Federal Railroad Administration                 49, II
  Federal Transit Administration                  49, VI
  Maritime Administration                         46, II
  National Highway Traffic Safety Administration  23, II, III; 47, IV; 49, V
  Pipeline and Hazardous Materials Safety         49, I
       Administration
  Saint Lawrence Seaway Development Corporation   33, IV
  Secretary of Transportation, Office of          14, II; 49, Subtitle A
  Surface Transportation Board                    49, X
  Transportation Statistics Bureau                49, XI
Transportation, Office of                         7, XXXIII
Transportation Security Administration            49, XII
Transportation Statistics Bureau                  49, XI
Travel Allowances, Temporary Duty (TDY)           41, 301
Treasury Department                               5, XXI; 12, XV; 17, IV; 
                                                  31, IX
  Alcohol and Tobacco Tax and Trade Bureau        27, I
  Community Development Financial Institutions    12, XVIII
       Fund
  Comptroller of the Currency                     12, I
  Customs and Border Protection                   19, I
  Engraving and Printing, Bureau of               31, VI
  Federal Acquisition Regulation                  48, 10
  Federal Claims Collection Standards             31, IX
  Federal Law Enforcement Training Center         31, VII
  Financial Crimes Enforcement Network            31, X
  Fiscal Service                                  31, II
  Foreign Assets Control, Office of               31, V
  Internal Revenue Service                        26, I
  Investment Security, Office of                  31, VIII
  Monetary Offices                                31, I
  Secret Service                                  31, IV
  Secretary of the Treasury, Office of            31, Subtitle A
  Thrift Supervision, Office of                   12, V
Truman, Harry S. Scholarship Foundation           45, XVIII
United States and Canada, International Joint     22, IV
   Commission
[[Page 542]]

United States and Mexico, International Boundary  22, XI
     and Water Commission, United States Section
Utah Reclamation Mitigation and Conservation      43, III
     Commission
Veterans Affairs Department                       2, VIII; 38, I
  Federal Acquisition Regulation                  48, 8
Veterans' Employment and Training Service,        41, 61; 20, IX
     Office of the Assistant Secretary for
Vice President of the United States, Office of    32, XXVIII
Vocational and Adult Education, Office of         34, IV
Wage and Hour Division                            29, V
Water Resources Council                           18, VI
Workers' Compensation Programs, Office of         20, I
World Agricultural Outlook Board                  7, XXXVIII

[[Page 543]]



List of CFR Sections Affected



All changes in this volume of the Code of Federal Regulations (CFR) that 
were made by documents published in the Federal Register since January 
1, 2008 are enumerated in the following list. Entries indicate the 
nature of the changes effected. Page numbers refer to Federal Register 
pages. The user should consult the entries for chapters, parts and 
subparts as well as sections for revisions.
For changes to this volume of the CFR prior to this listing, consult the 
annual edition of the monthly List of CFR Sections Affected (LSA). The 
LSA is available at www.fdsys.gov. For changes to this volume of the CFR 
prior to 2001, see the ``List of CFR Sections Affected, 1949-1963, 1964-
1972, 1973-1985, and 1986-2000'' published in 11 separate volumes. The 
``List of CFR Sections Affected 1986-2000'' is available at 
www.fdsys.gov.

                                  2008

34 CFR
                                                                   73 FR
                                                                    Page
Chapter III
300.9 (c)(3) added.................................................73027
300.177 Revised....................................................73027
300.300 (b)(3) and (4) revised; (d)(2) and (3) amended.............73027
300.512 (a)(1) revised.............................................73027
300.600 (a) revised; (e) added.....................................73027
300.602 (b)(1)(i) revised..........................................73027
300.606 Revised....................................................73028
300.705 (a) and (c) revised; (b)(2)(ii) and (iii) amended; 
        (b)(2)(iv) added...........................................73028
300.815 Added......................................................73028
300.816 (b)(2) and (3) amended; (b)(4) added.......................73028
300.817 Revised....................................................73028

                                  2009

34 CFR
                                                                   74 FR
                                                                    Page
Chapter III
371 Authority citation revised.....................................40498
371.4 (b) amended; interim.........................................40498

                                  2010

34 CFR
                                                                   75 FR
                                                                    Page
Chapter III
361.42 (a)(4) introductory text corrected; CFR correction..........32857
371 Regulation at 74 FR 40498 confirmed............................34297
371.4 Regulation at 74 FR 40498 confirmed..........................34297

                                  2011

34 CFR
                                                                   76 FR
                                                                    Page
Chapter III
303 Revised........................................................60244

                                  2012

34 CFR
                                                                   77 FR
                                                                    Page
Chapter III
Policy statement............................................45944, 47496

[[Page 544]]

                                  2013

   (Regulations published from January 1, 2013, through July 1, 2013)

34 CFR
                                                                   78 FR
                                                                    Page
Chapter III
Policy statement........22780, 22783, 26509, 26509, 26513, 27036, 27038, 
           29234, 29237, 29239, 33228, 34261, 34897, 34901, 35758, 35761
    Policy statement; eff. 7-19-13.................................36667
    Policy statement; eff. 7-29-13.................................38840
300.154 (d)(2)(iv) revised; (d)(2)(v) added........................10537


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