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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

§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. (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 §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 §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 §303.521 are