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parent’s ability or inability to pay or inability to pay.

Therefore, it is the Department’s position that it is not

appropriate to add such a provision to §303.521(a) because

some States may not wish to reevaluate a parent’s ability

to pay given that a child may receive services at most for three years and many children do not enter the Part C program until they are at least 18 months of age.

However, if a State requires that a lead agency’s

determination of a parent’s ability or inability to pay be

reevaluated on an annual or other basis, the State must include such a provision in its system of payments policies

that is provided to parents under §303.521(e) in order for

parents to be informed of when and how they may be required to provide financial information. We are adding language requiring the policies to specify when and how the State makes its determination of the ability or inability to pay.

Upon further review of proposed §303.521(a)(3), we

realized that the State’s policies must define not only a

parent’s inability to pay but also a parent’s ability to

pay. We have added “ability to pay” to the definitional

requirement. Additionally, we are clarifying that in

defining a parent’s ability to pay, the State must include

consideration of family expenses such as extraordinary medical expenses as many families with infants and toddlers