[Code of Federal Regulations]
[Title 34, Volume 2]
[Revised as of July 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 34CFR365.13]

[Page 355-356]
 
                           TITLE 34--EDUCATION
 
            REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION
 
PART 365--STATE INDEPENDENT LIVING SERVICES--Table of Contents
 
       Subpart B--How Does the Secretary Make a Grant to a State?
 
Sec.  365.13  What requirements apply if the State's non-Federal share is in cash?

    (a) Except as further limited by paragraph (b) of this section, 
expenditures that meet the requirements of 34 CFR 80.24(a) through 
(b)(6) may be used to meet the non-Federal share matching requirement 
under section 712(b) of the Act if--
    (1) The expenditures are made with funds made available by 
appropriation directly to the designated State agency or with funds made 
available by allotment or transfer from any other unit of State or local 
government;
    (2) The expenditures are made with cash contributions from a donor 
that are deposited in the account of the designated State agency in 
accordance with State law for expenditure by, and at the sole discretion 
of, the DSU for activities identified or described in the State plan and 
authorized by Sec.  365.20; or

[[Page 356]]

    (3) The expenditures are made with cash contributions from a donor 
that are earmarked for meeting the State's share for--
    (i) Providing particular services (e.g., personal assistance 
services);
    (ii) Serving individuals with certain types of disabilities (e.g., 
older individuals who are blind);
    (iii) Providing services to specific groups that State or Federal 
law permits to be targeted for services (e.g., children of migrant 
laborers); or
    (iv) Carrying out particular types of administrative activities 
permissible under State law.
    (b) Cash contributions are permissible under paragraph (a)(3) of 
this section only if the cash contributions are not used for 
expenditures that benefit or will benefit in any way the donor, an 
individual to whom the donor is related by blood or marriage or with 
whom the donor has a close personal relationship, or an individual, 
entity, or organization with whom the donor shares a financial interest.
    (c) The receipt of a grant, subgrant, or contract under section 713 
of the Act or a grant, subgrant, or assistance contract under section 
723 of the Act from the DSU is not considered a benefit to the donor of 
a cash contribution for purposes of paragraph (b) of this section if the 
grant, subgrant, or contract was awarded under the State's regular 
competitive procedures.
    (d) For purposes of this section, a donor may be a private agency, a 
profit-making or nonprofit organization, or an individual.

(Authority: 29 U.S.C. 711(c) and 796e-1(b))