[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: 34CFR370.2]

[Page 392]
 
                           TITLE 34--EDUCATION
 
            REHABILITATIVE SERVICES, DEPARTMENT OF EDUCATION
 
PART 370--CLIENT ASSISTANCE PROGRAM--Table of Contents
 
                           Subpart A--General
 
Sec.  370.2  Who is eligible for an award?

    (a) Any State, through its Governor, is eligible for an award under 
this part if the State submits, and receives approval of, an application 
in accordance with Sec.  370.20.
    (b) The Governor of each State shall designate a public or private 
agency to conduct the State's CAP under this part.
    (c) Except as provided in paragraph (d) of this section, the 
Governor shall designate an agency that is independent of any agency 
that provides treatment, services, or rehabilitation to individuals 
under the Act.
    (d) The Governor may, in the initial designation, designate an 
agency that provides treatment, services, or rehabilitation to 
individuals with disabilities under the Act if, at any time before 
February 22, 1984, there was an agency in the State that both--
    (1) Was a grantee under section 112 of the Act by serving as a 
client assistance agency and directly carrying out a CAP; and
    (2) Was, at the same time, a grantee under any other provision of 
the Act.
    (e) Except as permitted in paragraph (f) of this section, an agency 
designated by the Governor of a State to conduct the State's CAP under 
this part may not award a subgrant to or enter into a contract with an 
agency that provides services under this Act either to carry out the CAP 
or to provide services under the CAP.
    (f) An agency designated by the Governor of a State to conduct the 
State's CAP under this part may enter into a contract with a center for 
independent living (center) that provides services under the Act if--
    (1) On February 22, 1984, the designated agency was contracting with 
one or more centers to provide CAP services; and
    (2) The designated agency meets the requirements of paragraph (g) of 
this section.
    (g) A designated agency that contracts to provide CAP services with 
a center (pursuant to paragraph (f) of this section) or with an entity 
or individual that does not provide services under the Act remains 
responsible for--
    (1) The conduct of a CAP that meets all of the requirements of this 
part;
    (2) Ensuring that the center, entity, or individual expends CAP 
funds in accordance with--
    (i) The regulations in this part; and
    (ii) The cost principles applicable to the designated agency; and
    (3) The direct day-to-day supervision of the CAP services being 
carried out by the contractor. This day-to-day supervision must include 
the direct supervision of the individuals who are employed or used by 
the contractor to provide CAP services.

(Authority: 29 U.S.C. 711(c) and 732(a) and (c)(1)(A))