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as an entity subject to the lead agency’s suspension of

further payments of Part C funds when the Secretary withholds those funds to the State.

Discussion: We agree with the commenter that the term EIS

programs should be added to §303.705(c)(1)(ii) in addition

to the existing reference to EIS providers because the terms have different definitions.

Under §303.12, EIS providers are entities or

individuals that provide early intervention services under Part C of the Act, regardless of whether they receive Part C Federal funds, and may include, where appropriate, the lead agency and other public agencies responsible for providing early intervention services to infants and toddlers with disabilities in the State. EIS programs are

different; under §303.11, an EIS program is an entity

designated by the lead agency for reporting under sections

616 and 642 of the Act and §§303.700 through 303.702.

Lead agencies do not always provide Part C funds directly to an EIS provider, but instead may provide Part C funds to an EIS program. Thus, it would be appropriate to

clarify in §303.705(c)(1)(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 the EIS program,