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statewide system of early intervention services in subpart D of this part and this subpart.

(c) States with FAPE mandates, or that use funds under Part B of the Act to serve children under age three. If a State has in effect a State law requiring the provision of FAPE for, or uses Part B funds to serve, an infant or toddler with a disability under the age of three (or any subset of infants and toddlers with disabilities under the age of three), the State may not charge the parents of the infant or toddler with a disability for any services (e.g., physical or occupational therapy) under this part that are part of FAPE for that infant or toddler

and the child’s family, and those FAPE services must meet

the requirements of both Parts B and C of the Act.

(d) Family fees. (1) Fees or costs collected from a

parent or the child’s family to pay for early intervention

services under a State’s system of payments are program

income under 34 CFR 80.25. A State may add this program income to its Part C grant funds, rather than deducting the

program income from the amount of the State’s Part C grant.

Any fees collected must be used for the purposes of the grant under Part C of the Act.

(2) Fees collected under a system of payments are

considered neither State nor local funds under §303.225(b).