[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: 34CFR366.32]

[Page 367-368]
 
                           TITLE 34--EDUCATION
 
            REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION
 
PART 366--CENTERS FOR INDEPENDENT LIVING--Table of Contents
 
Subpart D--Grants to Centers in States in Which State Funding Equals or 
                         Exceeds Federal Funding
 
Sec.  366.32  Under what circumstances may the DSU make grants?

    (a) To be eligible to award grants under this subpart and to carry 
out section 723 of the Act for a fiscal year, the Director must submit 
to the Secretary for approval an application at the time and in the 
manner that the Secretary may require and that includes, at a minimum--
    (1) Information demonstrating that the amount of funds earmarked by 
the State for the general operation of centers meets the requirements in 
Sec.  366.29(a)(1); and
    (2) A summary of the annual performance reports submitted to the 
Director from centers in accordance with Sec.  366.50(n).
    (b) If the amount of funds earmarked by the State for the general 
operation of centers meets the requirements in Sec.  366.29(a)(1), the 
Secretary approves the application and designates the Director to award 
the grants and carry out section 723 of the Act.
    (c) If the Secretary designates the Director to award grants and 
carry out section 723 of the Act under paragraph (b) of this section, 
the Director makes grants to eligible agencies in a State, as described 
in Sec.  366.2, for a fiscal year from the amount of funds allotted to 
the State under section 721(c) and (d) of the Act.
    (d)(1) In the case of a State in which there is both a DSU 
responsible for providing IL services to the general population and a 
DSU responsible for providing IL services for individuals who are blind, 
for purposes of subparts D and E of this part, the ``Director'' shall be 
the Director of the general DSU.
    (2) The State units described in paragraph (d)(1) of this section 
shall periodically consult with each other with respect to the provision 
of services for individuals who are blind.
    (e) The Director may enter into assistance contracts with centers to 
carry out section 723 of the Act. For purposes of this paragraph, an 
assistance contract is an instrument whose principal purpose is to 
transfer funds allotted to the State under section 721

[[Page 368]]

(c) and (d) of the Act and this part to an eligible agency to carry out 
section 723 of the Act. Under an assistance contract, the DSU shall 
assume a role consistent with that of the Secretary under section 722 of 
the Act. If the DSU uses an assistance contract to award funds under 
section 723 of the Act, the DSU may not add any requirements, terms, or 
conditions to the assistance contract other than those that would be 
permitted if the assistance contract were a grant rather than an 
assistance contract. Under an assistance contract, as defined in this 
paragraph, the role of the DSU is to ensure that the terms of the 
assistance contract, which are established by chapter 1 of title VII of 
the Act and the implementing regulations in this part and 34 CFR part 
364, are satisfied.
    (f) The Director may not enter into procurement contracts with 
centers to carry out section 723 of the Act. For purposes of this 
paragraph, a procurement contract is an instrument whose principal 
purpose is to acquire (by purchase, lease, or barter) property or 
services for the direct benefit or use of the DSU. Under a procurement 
contract, the DSU prescribes the specific services it intends to procure 
and the terms and conditions of the procurement.
    (g) In the enforcement of any breach of the terms and conditions of 
an assistance contract, the DSU shall follow the procedures established 
in Sec. Sec.  366.40 through 366.45.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: 29 U.S.C. 711(c) and 796f-2(a)(2))