1. (a) The Department may loan equipment or other items, except items specified in (b), to a client while he or she is participating in an IPE. The Department shall retain title to the property until one of the following occurs:

   1. (1) The client is successfully rehabilitated. When this occurs the Rehabilitation Counselor shall determine if the property is essential to the client's employment. Upon a determination by the Rehabilitation Counselor that the property is:

      1. (A) Essential to the client's employment, the ownership shall be transferred to the client if the client either;

         1. 1. Has no financial participation obligation, or
         2. 2. Pays the outstanding balance of his or her financial obligation, if any, to the Department.
      2. (B) Not essential to the client's employment, the property may be purchased by the client at a fair market value, as defined in (c). If the client does not purchase the property, it shall be returned to the Department.
   2. (2) The client's IPE is interrupted and the case is closed as not rehabilitated or the case is inactivated. When this occurs, the property shall be returned to the Department unless the client purchases it at fair market value, as defined in (c).

2. (b) Ownership of the following items shall be transferred to the client immediately upon receipt by the client providing he or she has no client financial participation obligation or he or she pays the outstanding balance of the financial participation obligation to the Department. The client has no legal right to the property until the client financial participation obligation is paid.

   1. (1) Prosthetic, orthotic and other physical restoration devices including, but are not limited to, wheelchairs, hearing aids and eyeglasses.
   2. (2) Customized equipment that has been modified to meet the individual client's needs, excluding modifications to state-owned vehicles to which the Department holds title.
3. (c) Fair market value shall be determined by the Rehabilitation Counselor contacting a party qualified to appraise the specific item of property, such as the party from whom the item was originally purchased. Factors to be considered shall include the age and current condition of the item.

Note: Authority cited: Sections 19006 and 19016, Welfare and Institutions Code. Reference: 34 CFR 361.47(a); and Sections 19018 and 19150, Welfare and Institutions Code.

History

1. Renumbering and amendment of former section 7194(b) to section 7195 and amendment of remaining section 7194 filed 12-28-90; operative 1-27-91 (Register 91, No. 7).

2. Editorial correction of History 1. (Register 91, No. 30).

3. New article heading filed 1-2-92; operative 3-2-92 (Register 92, No. 18).

4. Amendment filed 5-31-2016; operative 7-1-2016 (Register 2016, No. 23).