1. A. General provisions.

   1. 1. VR shall provide allowable services required under 34 CFR 361 that are necessary to assess an Applicant’s eligibility and OOS Priority Category, develop a VR Client’s IPE, or assist a VR Client in preparing for, securing, retaining, advancing, or regaining an Employment Outcome that is consistent with the strengths, resources, priorities, concerns, abilities, capabilities, interests, and Informed Choice of the VR Client as identified in the most current and approved IPE. VR shall ensure that all goods and services purchased by VR are necessary to the Employment Outcome and documentation is available to support the expenditure.

   2. 2. VR shall give preference to an in-state service of the lowest cost, provided the preference does not effectively deny a VR Client a necessary service. If a VR Client chooses to engage in a service at a higher cost than an in-state service of the lowest cost when either service would meet the VR Client’s rehabilitation needs:

      1. a. The service shall be provided within the continental United States; and
      2. b. The individual is responsible for costs in excess of the cost of the in-state service of the lowest cost.
   3. 3. Involvement in VR does not entitle an individual to any specific VR services.

2. B. The following are not considered VR services and shall not be provided by VR:

   1. 1. Reimbursement to a VR Client for debts and expenses incurred that have not been agreed to and that are not included on an authorization or in the current approved IPE;
   2. 2. Ongoing or long-term support of a self-employment business venture;
   3. 3. Basic living expenses (food, shelter, clothing, hygiene products) that are not in excess of a VR Client’s normal expenses due to the VR Client’s participation in VR;
   4. 4. General living costs resulting from a loss of income due to participation in VR services or a self-employment plan;
   5. 5. A service that is available from another agency or organization as a comparable benefit when the use of comparable benefits is required;
   6. 6. A service based on economic need for an individual who does not meet VR’s economic need criteria as described in subsection (D);
   7. 7. A salary, wage, or payment for an individual in a self-employment plan or the individual’s employees;
   8. 8. A self-employment business venture that is illegal, high-risk, or shows minimal chance of profitability;
   9. 9. Co-signing or underwriting of a loan or refinancing of any debt;
   10. 10. Multiple self-employment businesses;
   11. 11. Operating capital, franchise fees, and support for non-profit businesses (self-employment);
   12. 12. Legal service fees, attorney fees, court fines, or traffic tickets;
   13. 13. A vehicle purchase, lease, rental fee, monthly vehicle payment, or registration;
   14. 14. Businesses or services that are determined to be illegal by federal or state law;
   15. 15. Purchase of a residence, land, construction, or major modification of a building;
   16. 16. A treatment service that is not medically and vocationally necessary to achieve the Employment Outcome, as identified in the most current approved IPE; and
   17. 17. An experimental, high-risk, or controversial treatment procedure.

3. C. Procurement of services.

   1. 1. VR shall adhere to the applicable federal, state, Department, and VR laws, regulations, policies, and procedures;

   2. 2. VR shall inform individuals that selected services, service providers, and methods of procuring services shall be:

      1. a. Made as required under applicable federal, state, Department, and VR laws, regulations, policies, and procedures;
      2. b. Necessary under with subsection (A)(1) including to determine eligibility, assess rehabilitation needs, or achieve the Employment Outcome as identified in the most current approved IPE; and
      3. c. Agreed upon by an Applicant or VR Client and VR.
   3. 3. VR shall only authorize, purchase, and pay for a service contained in the most current approved IPE,
   4. 4. Any service shall be authorized, purchased, and paid for as required under established procurement laws, regulations, methodologies, fee schedules, or contracts applicable to VR.
   5. 5. VR shall not reimburse any entity or be held responsible for any expense that has not been approved and authorized, in writing, by VR Staff.

4. D. Economic need.

   1. 1. VR shall:

      1. a. Require that an individual’s economic need be determined if the individual requires VR’s support for any service other than those listed in 34 CFR 361.54(b)(3) at the time of eligibility determination or the individual provides a current award letter verifying the receipt of Social Security benefits under Title II or Title XVI of 42 U.S.C. 7 (Social Security Act).

      2. b. Calculate an individual’s total monthly income using one of the following:

         1. i. Household adjusted gross income as identified on the individual’s most current state or United States federal income tax statement filed, or required to be filed, by the individual or, if the individual is claimed as a dependent by another person, the person who claimed the individual as a dependent, divided by 12.

            ii Current pay stubs or bank statements that show a direct deposit of income, or another form of financial documentation that shows the income of the individual or, if the individual is supported by another person, the person who supports the individual.

      3. c. Subtract any disability related expenditures paid for by the VR Client and that are not otherwise reimbursed from the total income if the individual, or the person who supported or claimed the individual as a dependent:

         1. i. Paid the expenditure;
         2. ii. Provides evidence that these expenditures are not claimed deductions on income tax statements;
         3. iii. Does not receive reimbursement for the expenses from any other public or private source; and
         4. iv. Provides documentation that verifies the disability-related expenditures were paid during the tax year in which economic need is being determined.
      4. d. Redetermine an individual’s economic need status prior to the provision of PES when there is a change in the individual’s finances, and the redetermination will benefit the VR Client.
      5. e. Determine that an individual does not meet economic need if the individual does not provide the required documentation to support an economic need determination.
   2. 2. VR shall not count an individual’s past year’s earnings toward computing economic need if the individual or the person who supported or claimed the individual as a dependent on the most recent state or federal tax return provides proof that the individual is no longer employed.
   3. 3. An individual shall report any changes in the individual’s finances to VR within 20 calendar days of the change.

5. E. Comparable Services and Benefits.

   1. 1. VR and an Applicant or VR Client shall explore, apply for, and use Comparable Services and Benefits, including accommodations and Auxiliary Aids and Services that are provided or paid for, in whole or in part, by other federal, state, or local public agencies, by health insurance, or by employee benefits prior to the provision of all VR services, except for the following services:

      1. a. Assessment for determining eligibility and VR needs;
      2. b. Counseling and guidance, including information and support services to assist an individual in exercising Informed Choice;
      3. c. Information and referral services to secure needed services from other agencies;
      4. d. Job-related services, including job search and placement assistance, job retention services, follow-up services, and follow along services;
      5. e. Rehabilitation technology, including telecommunications, sensory, and other technological aids and devices; and
      6. f. PES.

   2. 2. VR and Applicant or VR Client shall, at a minimum, explore, apply for, and use the following Comparable Services and Benefits, when available:

      1. a. Medicaid/Medicare;
      2. b. Pell grant or other available grants;
      3. c. Any non-merit-based scholarship;
      4. d. Private or other type of medical insurance;
      5. e. Veterans Administration, for healthcare and rehabilitation center programming;
      6. f. Worker’s compensation, if a person has been injured on the job; and
      7. g. State or federally funded child care.

   3. 3. VR shall require that Comparable Services and Benefits be used if it meets an individual’s disability or employment needs.

      1. a. If it is known that Comparable Services and Benefits exist but is not available at the time needed to ensure the timely progress of an individual towards achieving an Employment Outcome, VR shall provide a service until Comparable Services and Benefits become available.
      2. b. VR shall begin using Comparable Services and Benefits that become available at any time during VR service provision.
      3. c. VR shall not provide a service when an individual refuses or fails to make a formal application for Comparable Services and Benefits to pay all or part of the cost of the service, or when an individual refuses to accept Comparable Services and Benefits that are available to an individual.

Historical Note

Adopted effective June 14, 1977 (Supp. 77-3). Section amended by final rulemaking at 31 A.A.R. 3921 (October 3, 2025), effective November 2, 2025 (Supp. 25-3).