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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 §303.225(b).

(Authority: 20 U.S.C. 1432(4)(B), 1435(a)(10), 1439(a))

§303.521 System of payments and fees.

(a) General. If a State elects to adopt a system of

payments in §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