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Note:  This document has been delivered to the Office of the Federal Register but has not yet been scheduled for publication.  The official version of this document is the document that is published in the Federal Register.

through 303.122 and §§303.220 through 303.226.

Changes: We have added in the introductory text of

§303.501 references to §§303.120 through 303.122 and

§§303.220 through 303.226.

Comment: One commenter requested clarification on the

implementation of the requirement in §303.501(a) that Part

C funds be used for direct early intervention services

“that are not otherwise funded through other public or

private sources.” This commenter also noted that funding

sources might vary by child, which is difficult for a State to monitor.

Discussion: The purpose of §303.501(a) is to ensure that

Federal funds are used to supplement or increase the level of resources available in a State for the provision of early intervention services and are not used to replace existing resources. Section 303.501(a) incorporates the language in section 638(1) of the Act that permits, but does not require, States to use Part C funds for direct early intervention services when there are no other public or private sources available to pay for these services,

subject to the requirements in §§303.510 through 303.521.

In a State that uses Part C funds to pay for direct early intervention services, the State must ensure implementation of the payor of last resort provisions in section 640 of