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PART 367--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS 

WHO ARE BLIND

Subpart A—General

367.1 What is the Independent Living Services for Older 

Individuals Who Are Blind program? 

367.2 Who is eligible for an award? 

367.3 What activities may the Secretary fund?

367.4 What regulations apply?

367.5 What definitions apply? 

Subpart B--Training and Technical Assistance

367.20 What are the requirements for funding training and 

technical assistance under this chapter? 

367.21 How does the Secretary use these funds to provide 

training and technical assistance?

367.22 How does the Secretary make an award? 

367.23 How does the Secretary determine funding 

priorities?

367.24 How does the Secretary evaluate an application?

Subpart C--What are the Application Requirements Under this 

Part?

367.30 How does a designated State agency (DSA) apply for 

an award?

367.31 What assurances must a DSA include in its 

application?
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Subpart D--How Does the Secretary Award Discretionary 

Grants?

367.40 Under what circumstances does the Secretary award 

discretionary grants to States?

367.41 How does the Secretary evaluate an application for 

a discretionary grant?

Subpart E--How Does the Secretary Award Formula Grants?

367.50 Under what circumstances does the Secretary award 

formula grants to States?

367.51 How are allotments made?

367.52 How does the Secretary reallot funds under this 

program?

Subpart F--What Conditions Must be Met After an Award?

367.60 When may a DSA make subawards or contracts?

367.61 What matching requirements apply?

367.62What requirements apply if the State’s non-Federal 

share is in cash?

367.63 What requirements apply if the State’s non-Federal 

share is in kind?

367.64 What is the prohibition against a State’s condition 

of an award of a sub-award or contract based on cash or inkind contributions?

367.65 What is program income and how may it be used?
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367.66 What requirements apply to the obligation of 

Federal funds and program income?

367.67 What notice must be given about the Client 

Assistance Program (CAP)?

367.68 What are the special requirements pertaining to the 

protection, use, and release of personal information?

367.69 What access to records must be provided?

367.70 What records must be maintained?

AUTHORITY: Sections 751–753 of the Rehabilitation Act of 

1973, as amended; 29 U.S.C. 796j–796l, unless otherwise 

noted.

Subpart A—General

§367.1 What is the Independent Living Services for Older 

Individuals Who Are Blind program?

This program supports projects that--

(a) Provide any of the independent living (IL)

services to older individuals who are blind that are

described in §367.3(b);

(b) Conduct activities that will improve or expand

services for these individuals; and

(c) Conduct activities to help improve public

understanding of the problems of these individuals.
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(Authority: Section 752 of the Rehabilitation Act of

1973, as amended; 29 U.S.C. 796k(a) and (d))

§367.2 Who is eligible for an award?

Any designated State agency (DSA) is eligible for an

award under this program if the DSA--

(a) Is authorized to provide rehabilitation services

to individuals who are blind; and

(b) Submits to and obtains approval from the

Secretary of an application that meets the requirements of

section 752(h) of the Act and §§367.30-367.31.

(Authority: Section 752(a)(2) and 752(h) of the

Rehabilitation Act of 1973, as amended; 29 U.S.C.

796k(a)(2) and (h))

§367.3 What activities may the Secretary fund?

(a) The DSA may use funds awarded under this part for

the activities described in §367.1 and paragraph (b) of

this section.

(b) For purposes of §367.1(a), IL services for older

individuals who are blind include--

(1) Services to help correct blindness, such as--

(i) Outreach services;

(ii) Visual screening;

(iii) Surgical or therapeutic treatment to prevent,

correct, or modify disabling eye conditions; and
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(iv) Hospitalization related to these services;

(2) The provision of eyeglasses and other visual

aids;

(3) The provision of services and equipment to assist

an older individual who is blind to become more mobile and

more self-sufficient;

(4) Mobility training, Braille instruction, and other

services and equipment to help an older individual who is

blind adjust to blindness;

(5) Guide services, reader services, and

transportation;

(6) Any other appropriate service designed to assist

an older individual who is blind in coping with daily

living activities, including supportive services and

rehabilitation teaching services;

(7) IL skills training, information and referral

services, peer counseling, individual advocacy training,

facilitating the transition from nursing homes and other

institutions to home and community-based residences with

the requisite supports and services, and providing

assistance to older individuals who are blind who are at

risk of entering institutions so that the individuals may

remain in the community; and

(8) Other IL services, as defined in §367.5.
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(Authority: Section 752(d) and (e) of the

Rehabilitation Act of 1973, as amended; 29 U.S.C. 796k (d)

and (e))

§367.4 What regulations apply?

The following regulations apply to the Independent 

Living Services for Older Individuals Who Are Blind 

program:

(a) The Education Department General Administrative 

Regulations (EDGAR) as follows:

(1) 34 CFR part 75 (Direct Grant Programs), with 

respect to grants under subpart B and D.

(2) 34 CFR part 76 (State-Administered Programs), 

with respect to grants under subpart E.

(3) 34 CFR part 77 (Definitions That Apply to 

Department Regulations).

(4) 34 CFR part 79 (Intergovernmental Review of 

Department of Education Programs and Activities).

(5) 34 CFR part 81 (General Education Provisions Act—

Enforcement).

(6) 34 CFR part 82 (New Restrictions on Lobbying).

(7) 2 CFR part 180 (OMB Guidelines to Agencies on 

Debarment and Suspension (Nonprocurement)), as adopted at 2 

CFR part 3485.
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(8) 2 CFR part 200 (Uniform Administrative 

Requirements, Cost Principles, and Audit Requirements for 

Federal Awards), as adopted at 2 CFR part 3474.

(b) The regulations in this part 367.

(Authority: Sections 12(c) and 752 of the 

Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) 

and 796k)

§367.5 What definitions apply?

(a) The definitions of terms used in this part that

are included in the regulations identified in §367.4 as

applying to this program.

(b) In addition, the following definitions also apply

to this part:

(1) Act means the Rehabilitation Act, as amended by

WIOA.

(2) Advocacy means pleading an individual's cause or

speaking or writing in support of an individual. To the

extent permitted by State law or the rules of the agency

before which an individual is appearing, a non-lawyer may

engage in advocacy on behalf of another individual.

Advocacy may--

(i) Involve representing an individual--
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(A) Before private entities or organizations,

government agencies (whether State, local, or Federal), or

in a court of law (whether State or Federal); or

(B) In negotiations or mediation, in formal or

informal administrative proceedings before government

agencies (whether State, local, or Federal), or in legal

proceedings in a court of law; and

(ii) Be on behalf of--

(A) A single individual, in which case it is

individual advocacy;

(B) A group or class of individuals, in which case it

is systems (or systemic) advocacy; or

(C) Oneself, in which case it is self advocacy.

(3) Attendant care means a personal assistance

service provided to an individual with significant

disabilities in performing a variety of tasks required to

meet essential personal needs in areas such as bathing,

communicating, cooking, dressing, eating, homemaking,

toileting, and transportation.

(4) Contract means a legal instrument by which RSA in

subpart B or the DSA receiving a grant under this part

purchases property or services needed to carry out the

program under this Part. The term as used in this part

does not include a legal instrument, even if RSA or the DSA
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considers it a contract, when the substance of the

transaction meets the definition of a Federal award or

subaward.

(Authority: 20 U.S.C. 1221e-3)

(5) Designated State Agency means the agency

described in section 101(a)(2)(A)(i) of the Rehabilitation

Act as the sole State agency authorized to provide

rehabilitation services to individuals who are blind.

(6) Independent living services for older individuals

who are blind means those services listed in §367.3(b).

(7) Legally authorized advocate or

representative means an individual who is authorized under

State law to act or advocate on behalf of another

individual. Under certain circumstances, State law permits

only an attorney, legal guardian, or individual with a

power of attorney to act or advocate on behalf of another

individual. In other circumstances, State law may permit

other individuals to act or advocate on behalf of another

individual.

(8) Minority group means Alaskan Natives, American

Indians, Asian Americans, Blacks (African Americans),

Hispanic Americans, Native Hawaiians, and Pacific

Islanders.
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(9) Older individual who is blind means an individual

age fifty-five or older whose severe visual impairment

makes competitive employment extremely difficult to obtain

but for whom IL goals are feasible.

(10) Other IL services include:

(i) Counseling services, including psychological,

psychotherapeutic, and related services;

(ii) Services related to securing housing or shelter,

including services related to community group living, that

are supportive of the purposes of the Act, and adaptive

housing services, including appropriate accommodations to

and modifications of any space used to serve, or to be

occupied by, older individuals who are blind;

(iii) Rehabilitation technology;

(iv) Services and training for older individuals who

are blind who also have cognitive and sensory disabilities,

including life skills training and interpreter;

(v) Personal assistance services, including attendant

care and the training of personnel providing these

services;

(vi) Surveys, directories, and other activities to

identify appropriate housing, recreation opportunities, and

accessible transportation, and other support services;
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(vii) Consumer information programs on rehabilitation

and IL services available under the Act, especially for

minorities and other older individuals who are blind who

have traditionally been unserved or underserved by programs

under the Act;

(viii) Education and training necessary for living in

a community and participating in community activities;

(ix) Supported living;

(x) Transportation, including referral and assistance

for transportation;

(xi) Physical rehabilitation;

(xii) Therapeutic treatment;

(xiii) Provision of needed prostheses and other

appliances and devices;

(xiv) Individual and group social and recreational

services;

(xv) Services under other Federal, State, or local

programs designed to provide resources, training,

counseling, or other assistance of substantial benefit in

enhancing the independence, productivity, and quality of

life of older individuals who are blind;

(xvi) Appropriate preventive services to decrease the

need of older individuals who are blind who are assisted

under the Act for similar services in the future;
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(xvii) Community awareness programs to enhance the

understanding and integration into society of older

individuals who are blind; and

(xviii) Any other services that may be necessary to

improve the ability of an older individual who is blind to

function, continue functioning, or move toward functioning

independently in the family or community or to continue in

employment and that are not inconsistent with any other

provisions of the Act.

(11) Peer relationships mean relationships involving

mutual support and assistance among individuals with

significant disabilities who are actively pursuing IL

goals.

(12) Peer role models means individuals with

significant disabilities whose achievements can serve as a

positive example for other older individuals who are blind.

(13) Personal assistance services means a range of IL

services, provided by one or more persons, designed to

assist an older individual who is blind to perform daily

living activities on or off the job that the individual

would typically perform if the individual was not blind.

These IL services must be designed to increase the

individual's control in life and ability to perform

everyday activities on or off the job.
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(14) Service provider means –

(i) the DSA that directly provides services

authorized under §367.3; or

(ii) any other entity that receives a subaward or

contract from the DSA to provide services authorized under

§367.3.

(15) Significant disability means a severe physical,

mental, cognitive, or sensory impairment that substantially

limits an individual's ability to function independently in

the family or community or to obtain, maintain, or advance

in employment.

(16) State means, except where otherwise specified in

the Act, in addition to each of the several States of the

United States, the District of Columbia, the Commonwealth

of Puerto Rico, the United States Virgin Islands, Guam,

American Samoa, the Commonwealth of the Northern Mariana

Islands.

(17) Subaward a grant or a cooperative agreement

provided by the DSA to a subrecipient for the subrecipient

to carry out part of the Federal award received by the DSA

under this part. It does not include payments to a

contractor or payments to an individual that is a

beneficiary of a program funded under this part. A

subaward may be provided through any form of legal
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agreement, including an agreement that the DSA considers a

contract.

(Authority: 20 U.S.C. 1221e-3)

(18) Subrecipient a non-Federal entity that receives

a subaward from the DSA to carry out all or part of the

program funded under this part; but does not include an

individual that is a beneficiary of such program. A

subrecipient may also be a recipient of other Federal

awards directly from a Federal awarding agency.

(Authority: 20 U.S.C. 1221e-3)

(19) Transportation means travel and related expenses

that are necessary to enable an older individual who is

blind to benefit from another IL service and travel and

related expenses for an attendant or aide if the services

of that attendant or aide are necessary to enable an older

individual who is blind to benefit from that IL service.

(20) Unserved and underserved groups or

populations, with respect to groups or populations of older

individuals who are blind in a State, include, but are not

limited to, groups or populations of older individuals who

are blind who—

(i) Have cognitive and sensory impairments;

(ii) Are members of racial and ethnic minority

groups;
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(iii) Live in rural areas; or

(iv) Have been identified by the DSA as unserved or

underserved. 

(Authority: Unless otherwise noted, Section 7 of the

Rehabilitation Act of 1973, as amended; 29 U.S.C. 705)

Subpart B--Training and Technical Assistance 

§367.20 What are the requirements for funding training and 

technical assistance under this chapter?

For any fiscal year, beginning with fiscal year 2015,

the Secretary shall first reserve not less than 1.8 percent

and not more than 2 percent of funds appropriated and made

available to carry out this chapter to provide training and

technical assistance to DSAs, or other providers of

independent living services for older individuals who are

blind, that are funded under this chapter for such fiscal

year.

(Authority: Section 751A(a) of the Rehabilitation Act of

1973, as amended; 29 U.S.C. 796j-1(a))

§367.21 How does the Secretary use these funds to provide 

training and technical assistance?

(a) The Secretary uses these funds to provide

training and technical assistance, either directly or

through grants, contracts, or cooperative agreements with

entities that have the capacity to provide technical
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assistance and training in the provision of independent

living services for older individuals who are blind.

(b) An entity receiving assistance in accordance with

paragraph (a) of this section shall provide training and

technical assistance to DSAs or other service providers to

assist them in improving the operation and performance of

programs and services for older individuals who are blind

resulting in their enhanced independence and selfsufficiency.

(Authority: Section 751A(a) and (c) of the

Rehabilitation Act of 1973, as amended; 29 U.S.C. 796j-1(a)

and (c))

§367.22 How does the Secretary make an award?

(a) To be eligible to receive a grant or enter into a

contract or cooperative agreement under section 751A of the

Act and this subpart, an applicant shall submit an

application to the Secretary containing a proposal to

provide training and technical assistance to DSAs or other

service providers of IL services to older individuals who

are blind and any additional information at the time and in

the manner that the Secretary may require.

(b) The Secretary shall provide for peer review of

applications by panels that include persons who are not

Federal or State government employees and who have
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experience in the provision of services to older

individuals who are blind.

(Authority: Section 751A(a) and (c) of the Rehabilitation

Act of 1973, as amended; 29 U.S.C. 796j-1(a) and (c))

§367.23 How does the Secretary determine funding 

priorities?

The Secretary shall conduct a survey of DSAs that

receive grants under section 752 regarding training and

technical assistance needs in order to inform funding

priorities for such training and technical assistance.

(Authority: Section 751A(b) of the Rehabilitation Act of

1973, as amended; 29 U.S.C. 796j-1(b))

§367.24 How does the Secretary evaluate an application?

(a) The Secretary evaluates each application for a

grant, cooperative agreement or contract under this subpart

on the basis of the selection criteria chosen from the

general selection criteria found in EDGAR regulations at 34

CFR 75.210.

(b) If the Secretary uses a contract to award funds

under this subpart, the application process will be

conducted and the subsequent award will be made in

accordance with 34 CFR part 75.

(Authority: Section 751A of the Rehabilitation Act of

1973, as amended; 29 U.S.C. 796j-1(b), 20 U.S.C. 1221e-3,
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and 3474)

Subpart C—What Are the Application Requirements Under This 

Part?

§367.30 How does a designated State agency (DSA)apply for 

an award?

To receive a grant under section 752(h) or a

reallotment grant under section 752(i)(4) of the Act, a DSA

must submit to and obtain approval from the Secretary of an

application for assistance under this program at the time,

in the form and manner, and containing the agreements,

assurances, and information, that the Secretary determines

to be necessary to carry out this program.

(Approved by the Office of Management and Budget under

control number 1820-0660)

(Authority: Sections 752 (h) and (i)(4) of the

Rehabilitation Act of 1973, as amended; 29 U.S.C. 796k(h)

and (i))

§367.31 What assurances must a DSA include in its 

application?

An application for a grant under section 752(h) or a

reallotment grant under section 752(i)(4) of the Act must

contain an assurance that--

(a) Grant funds will be expended only for the

purposes described in §367.1;
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(b) With respect to the costs of the program to be

carried out by the State pursuant to this part, the State

will make available, directly or through donations from

public or private entities, non-Federal contributions

toward these costs in an amount that is not less than $1

for each $9 of Federal funds provided in the grant;

(c) At the end of each fiscal year, the DSA will

prepare and submit to the Secretary a report, with respect

to each project or program the DSA operates or administers

under this part, whether directly or through a grant or

contract, that contains, information that the Secretary

determines necessary for the proper and efficient

administration of this program, including--

(1) The number and types of older individuals who are

blind, including older individuals who are blind from

minority backgrounds, and are receiving services;

(2) The types of services provided and the number of

older individuals who are blind and are receiving each type

of service;

(3) The sources and amounts of funding for the

operation of each project or program;

(4) The amounts and percentages of resources

committed to each type of service provided;
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(5) Data on actions taken to employ, and advance in

employment, qualified--

(i) Individuals with significant disabilities; and

(ii) Older individuals with significant disabilities

who are blind;

(6) A comparison, if appropriate, of prior year

activities with the activities of the most recent year; and

(7) Any new methods and approaches relating to IL

services for older individuals who are blind that are

developed by projects funded under this part;

(d) The DSA will--

(1) Provide services that contribute to the

maintenance of, or the increased independence of, older

individuals who are blind; and

(2) Engage in--

(i) Capacity-building activities, including

collaboration with other agencies and organizations;

(ii) Activities to promote community awareness,

involvement, and assistance; and

(iii) Outreach efforts; and

(e) The applicant has been designated by the State as

the sole State agency authorized to provide rehabilitation

services to individuals who are blind.
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(Approved by the Office of Management and Budget under

control numbers 1820-0660 and 1820-0608)

(Authority: Section 752(h) of the Rehabilitation Act

of 1973, as amended; 29 U.S.C. 796k(h))

Subpart D—How Does the Secretary Award Discretionary 

Grants?

§367.40 Under what circumstances does the Secretary award 

discretionary grants to States?

(a) In the case of a fiscal year for which the amount

appropriated under section 753 of the Act is less than

$13,000,000, the Secretary awards discretionary grants

under this part on a competitive basis to States in

accordance with section 752(b) of the Act and EDGAR

regulations at 34 CFR part 75 (Direct Grant Programs).

(b) The Secretary awards noncompetitive continuation

grants for a multi-year project to pay for the costs of

activities for which a grant was awarded under this part –

as long as the grantee satisfies the applicable

requirements in this part, the terms of the grant, and 34

CFR 75.250 through 75.253 (Approval of Multi-year

Projects).

(c) Subparts A, C, D, and F of this part govern the

award of competitive grants under this part.

(Authority: Section 752(b) of the Rehabilitation Act
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of 1973, as amended; 29 U.S.C. 796k(b); 20 U.S.C. 1221e-3

and 3474)

§367.41 How does the Secretary evaluate an application for 

a discretionary grant?

(a) The Secretary evaluates an application for a

discretionary grant based on the selection criteria chosen

from the general selection criteria found in EDGAR

regulations at 34 CFR 75.210. 

(b) In addition to the selection criteria, the

Secretary considers the geographic distribution of projects

in making an award.

(Authority: Section 752(b) of the Rehabilitation Act

of 1973, as amended; 29 U.S.C. 796k(b); 20 U.S.C. 1221e-3

and 3474)

Subpart E--How Does the Secretary Award Formula Grants?

§367.50 Under what circumstances does the Secretary award 

formula grants to States?

(a) In the case of a fiscal year for which the amount

appropriated under section 753 of the Act is equal to or

greater than $13,000,000, grants under this part are made

to States from allotments under section 752(c)(2) of the

Act.

(b) Subparts A, C, E, and F of this part govern the

award of formula grants under this part.
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(Authority: Section 752(c) of the Rehabilitation Act

of 1973, as amended; 29 U.S.C. 796k(c))

§367.51 How are allotments made?

(a) For purposes of making grants under section

752(c) of the Act and this subpart, the Secretary makes an

allotment to each State in an amount determined in

accordance with section 752(i) of the Act.

(b) The Secretary makes a grant to a DSA in the

amount of the allotment to the State under section 752(i)

of the Act if the DSA submits to and obtains approval from

the Secretary of an application for assistance under this

program that meets the requirements of section 752(h) of

the Act and §§367.30 and 367.31.

(Approved by the Office of Management and Budget under

control number 1820-0660)

(Authority: Section 752(c)(2) of the Rehabilitation

Act of 1973, as amended; 29 U.S.C. 796k(c)(2))

§367.52 How does the Secretary reallot funds under this 

program?

(a) From the amounts specified in paragraph (b) of

this section, the Secretary may make reallotment grants to

States, as determined by the Secretary, whose population of

older individuals who are blind has a substantial need for

the services specified in section 752(d) of the Act and
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§367.3(b), relative to the populations in other States of

older individuals who are blind.

(b) The amounts referred to in paragraph (a) of this

section are any amounts that are not paid to States under

section 752(c)(2) of the Act and §367.51 as a result of--

(1) The failure of a DSA to prepare, submit, and

receive approval of an application under section 752(h) of

the Act and in accordance with §§367.30 and 367.31; or

(2) Information received by the Secretary from the

DSA that the DSA does not intend to expend the full amount

of the State's allotment under section 752(c) of the Act

and this subpart.

(c) A reallotment grant to a State under paragraph

(a) of this section is subject to the same conditions as

grants made under section 752(a) of the Act and this part.

(d) Any funds made available to a State for any

fiscal year pursuant to this section are regarded as an

increase in the allotment of the State under §367.51 for

that fiscal year only.

(e) A state that does not intend to expend the full

amount of its allotment must notify RSA at least 45 days

prior to the end of the fiscal year that its grant, or a

portion of it, is available for reallotment.
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(Approved by the Office of Management and Budget under

control number 1820-0660)

(Authority: Section 752(i)(4) of the Rehabilitation

Act of 1973, as amended; 29 U.S.C. 796k(i)(4))

Subpart F--What Conditions Must Be Met After an Award?

§367.60 When may a DSA make subawards or contracts?

A DSA may operate or administer the program or 

projects under this part to carry out the purposes 

specified in §367.1, either directly or through—

(a) Subawards to public or private nonprofit agencies 

or organizations; or

(b) Contracts with individuals, entities, or 

organizations that are not public or private nonprofit 

agencies or organizations.

(Authority: Sections 752(g) and (h) of the

Rehabilitation Act of 1973, as amended; 29 U.S.C. 796k(g)

and (h)(2)(A))

§367.61 What matching requirements apply?

Non-Federal contributions required by §367.31(b) must 

meet the requirements in 2 CFR 200.306 (Cost sharing or 

matching).

(Authority: Section 752(f) of the Rehabilitation Act

of 1973, as amended; 29 U.S.C. 796k(f))
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§367.62 What requirements apply if the State’s non-Federal 

share is in cash?

(a) Expenditures that meet the non-Federal share

requirements of 2 CFR 200.306 may be used to meet the nonFederal share matching requirement. Expenditures used as

non-Federal share must also meet the following

requirements:

(1) The expenditures are made with funds made

available by appropriation directly to the DSA 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 DSA

in accordance with State law for expenditure by, and at the

sole discretion of, the DSA for activities authorized by

§367.3; or

(3) The expenditures are made with cash contributions

from a donor that are earmarked for meeting the State's

share for activities listed in §367.3;

(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
27

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 subaward or contract under

section 752(g) of the Act from the DSA is not considered a

benefit to the donor of a cash contribution for purposes of

paragraph (b) of this section if the subaward or contract

was awarded under the State's regular competitive

procedures. The State may not exempt the awarding of the

subaward or contract from its 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: Section 752(f) of the Rehabilitation Act

of 1973, as amended; 29 U.S.C. 796k(f))

§367.63 What requirements apply if the State’s non-Federal 

share is in kind?

In-kind contributions may be--

(a) Used to meet the matching requirement under

section 752(f) of the Act if the in-kind contributions meet

the requirements and are allowable under 2 CFR 200.306; and

(b) Made to the program or project by the State or by

a third party (i.e., an individual, entity, or
28

organization, whether local, public, private, for profit,

or nonprofit), including a third party that is a

subrecipient or contractor that is receiving or will

receive assistance under section 752(g) of the

Rehabilitation Act.

(Authority: Section 752(f) and (g) of the

Rehabilitation Act of 1973, as amended; 29 U.S.C. 796k(f)

and (g))

§367.64 What is the prohibition against a State’s 

condition of an award of a subaward or contract based on 

cash or in-kind contributions?

(a) A State may not condition the making of a

subaward or contract under section 752(g) of the Act on the

requirement that the applicant for the subaward or contract

make a cash or in-kind contribution of any particular

amount or value to the State.

(b) An individual, entity, or organization that is a

subrecipient or contractor of the State, may not condition

the award of a subcontract on the requirement that the

applicant for the subcontract make a cash or in-kind

contribution of any particular amount or value to the State

or to the subrecipient or contractor of the State.
29

(Authority: Section 752(f) and (g) of the

Rehabilitation Act of 1973, as amended; 29 U.S.C. 796k(f)

and (g))

§367.65 What is program income and how may it be used?

(a) Definition. Program income means gross income 

earned by the grantee, subrecipient, or contractor that is 

directly generated by a supported activity or earned as a 

result of the grant, subaward, or contract.

(1) Program income received through the transfer of

Social Security Administration program income from the

State Vocational Rehabilitation Services program (Title I)

in accordance with 34 CFR 361.63(c)(2) will be treated as

program income received under this part.

(2) [Reserved]

(b) Use of program income. (1) Program income,

whenever earned, must be used for the provision of services

authorized under §367.3.

(2) A service provider is authorized to treat program

income as—

(i) A deduction from total allowable costs charged to

a Federal grant, in accordance with 2 CFR 200.307(e)(1); or

(ii) An addition to the grant funds to be used for

additional allowable program expenditures, in accordance

with 2 CFR 200.307(e)(2).
30

(3) Program income may not be used to meet the nonFederal share requirement under §367.31(b).

(Authority: 20 U.S.C. 3474)

§367.66 What requirements apply to the obligation of 

Federal funds and program income?

(a) Except as provided in paragraph (b) of this

section, any Federal funds, including reallotted funds,

that are appropriated for a fiscal year to carry out a

program under this part that are not obligated or expended

by the DSA prior to the beginning of the succeeding fiscal

year, and any program income received during a fiscal year

that is not obligated or expended by the DSA prior to the

beginning of the succeeding fiscal year in which the

program income was received, remain available for

obligation and expenditure by the DSA during that

succeeding fiscal year.

(b) Federal funds appropriated for a fiscal year

under this part remain available for obligation in the

succeeding fiscal year only to the extent that the DSA

complied with its matching requirement by obligating, in

accordance with 34 CFR 76.707, the non-Federal share in the

fiscal year for which the funds were appropriated.

(c) Program income is considered earned in the fiscal

year in which it is received. Program income earned during
31

the fiscal year must be disbursed during the time in which

new obligations may be incurred to carry out the work

authorized under the award, and prior to requesting

additional cash payments in accordance with 2 CFR

200.305(b)(5).

(Authority: 20 U.S.C. 3474)

§367.67 What notice must be given about the Client 

Assistance Program (CAP)?

The DSA and all other service providers under this

part shall use formats that are accessible to notify

individuals seeking or receiving services under this part

about--

(a) The availability of CAP authorized by section 112

of the Act;

(b) The purposes of the services provided under the

CAP; and

(c) How to contact the CAP.

(Authority: Section 20 of the Rehabilitation Act of

1973, as amended; 29 U.S.C. 717)

§367.68 What are the special requirements pertaining to 

the protection, use, and release of personal information?

(a) General provisions. The DSA and all other

service providers under this part shall adopt and implement

policies and procedures to safeguard the confidentiality of
32

all personal information, including photographs and lists

of names. These policies and procedures must assure that—

(1) Specific safeguards protect current and stored

personal information;

(2) All applicants for, or recipients of, services

under this part and, as appropriate, those individuals'

legally authorized representatives, service providers,

cooperating agencies, and interested persons are informed

of the confidentiality of personal information and the

conditions for gaining access to and releasing this

information;

(3) All applicants or their legally authorized

representatives are informed about the service provider's

need to collect personal information and the policies

governing its use, including--

(i) Identification of the authority under which

information is collected;

(ii) Explanation of the principal purposes for which

the service provider intends to use or release the

information;

(iii) Explanation of whether providing requested

information to the service provider is mandatory or

voluntary and the effects to the individual of not

providing requested information;
33

(iv) Identification of those situations in which the

service provider requires or does not require informed

written consent of the individual or his or her legally

authorized representative before information may be

released; and

(v) Identification of other agencies to which

information is routinely released;

(4) Persons who are unable to communicate in English

or who rely on alternative modes of communication must be

provided an explanation of service provider policies and

procedures affecting personal information through methods

that can be adequately understood by them;

(5) At least the same protections are provided to

individuals served under this part as provided by State

laws and regulations; and

(6) Access to records is governed by rules

established by the service provider and any fees charged

for copies of records are reasonable and cover only

extraordinary costs of duplication or making extensive

searches.

(b) Service provider use. All personal information

in the possession of the service provider may be used only

for the purposes directly connected with the provision of

services under this part and the administration of the
34

program under which services are provided under this part.

Information containing identifiable personal information

may not be shared with advisory or other bodies that do not

have official responsibility for the provision of services

under this part or the administration of the program under

which services are provided under this part. In the

provision of services under this part or the administration

of the program under which services are provided under this

part, the service provider may obtain personal information

from other service providers and cooperating agencies under

assurances that the information may not be further

divulged, except as provided under paragraphs (c), (d), and

(e) of this section.

(c) Release to recipients of services under this

part.

(1) Except as provided in paragraphs (c)(2) and

(c)(3) of this section, if requested in writing by a

recipient of services under this part, the service provider

shall release all information in that individual's record

of services to the individual or the individual's legally

authorized representative in a timely manner.

(2) Medical, psychological, or other information that

the service provider determines may be harmful to the

individual may not be released directly to the individual,
35

but must be provided through a qualified medical or

psychological professional or the individual's legally

authorized representative.

(3) If personal information has been obtained from

another agency or organization, it may be released only by,

or under the conditions established by, the other agency or

organization.

(d) Release for audit, evaluation, and research.

Personal information may be released to an organization,

agency, or individual engaged in audit, evaluation, or

research activities only for purposes directly connected

with the administration of a program under this part, or

for purposes that would significantly improve the quality

of life for individuals served under this part and only if

the organization, agency, or individual assures that—

(1) The information will be used only for the

purposes for which it is being provided;

(2) The information will be released only to persons

officially connected with the audit, evaluation, or

research;

(3) The information will not be released to the

involved individual;

(4) The information will be managed in a manner to

safeguard confidentiality; and
36

(5) The final product will not reveal any personally

identifying information without the informed written

consent of the involved individual or the individual's

legally authorized representative.

(e) Release to other programs or authorities.

(1) Upon receiving the informed written consent of

the individual or, if appropriate, the individual's legally

authorized representative, the service provider may release

personal information to another agency or organization for

the latter's program purposes only to the extent that the

information may be released to the involved individual and

only to the extent that the other agency or organization

demonstrates that the information requested is necessary

for the proper administration of its program.

(2) Medical or psychological information may be

released pursuant to paragraph (e)(1) of this section if

the other agency or organization assures the service

provider that the information will be used only for the

purpose for which it is being provided and will not be

further released to the individual.

(3) The service provider shall release personal

information if required by Federal laws or regulations.

(4) The service provider shall release personal

information in response to investigations in connection
37

with law enforcement, fraud, or abuse, unless expressly

prohibited by Federal or State laws or regulations, and in

response to judicial order.

(5) The service provider also may release personal

information to protect the individual or others if the

individual poses a threat to his or her safety or to the

safety of others.

(Authority: 20 U.S.C. 3474)

§367.69 What access to records must be provided?

For the purpose of conducting audits, examinations,

and compliance reviews, the DSA and all other service

providers shall provide access to the Secretary and the

Comptroller General, or any of their duly authorized

representatives, to--

(a) The records maintained under this part

(b) Any other books, documents, papers, and records

of the recipients that are pertinent to the financial

assistance received under this part; and

(c) All individual case records or files or consumer

service records of individuals served under this part,

including names, addresses, photographs, and records of

evaluation included in those individual case records or

files or consumer service records.

(Authority: 20 U.S.C. 1221e-3)
38

§367.70 What records must be maintained?

The DSA and all other service providers shall

maintain--

(a) Records that fully disclose and document--

(1) The amount and disposition by the recipient of

that financial assistance;

(2) The total cost of the project or undertaking in

connection with which the financial assistance is given or

used;

(3) The amount of that portion of the cost of the

project or undertaking supplied by other sources; and

(4) Compliance with the requirements of this part; and

(b) Other records that the Secretary determines to be

appropriate to facilitate an effective audit.

(Authority: 20 U.S.C. 1221e-3)