(a) The designated State unit may enter into a third-party cooperative arrangement for providing or administering vocational rehabilitation services with another State agency or a local public agency that is furnishing part or all of the non-Federal share, if the designated State unit ensures that--
(1) The services provided by the cooperating agency are not the customary or typical services provided by that agency but are new services that have a vocational rehabilitation focus or existing services that have been modified, adapted, expanded, or reconfigured to have a vocational rehabilitation focus;
(2) The services provided by the cooperating agency are only available to applicants for, or recipients of, services from the designated State unit;
(3) Program expenditures and staff providing services under the cooperative arrangement are under the administrative supervision of the designated State unit; and
(4) All State plan requirements, including a State's order of selection, will apply to all services provided under the cooperative program.
(b) If a third party cooperative agreement does not comply with the statewideness requirement in Sec. 361.25, the State unit must obtain a waiver of statewideness, in accordance with Sec. 361.26. (Approved by the Office of Management and Budget under control number 1820-0500) (Authority: Section 12(c) of the Act; 29 U.S.C. 709(c)) [66 FR 4382, Jan. 17, 2001, as amended at 66 FR 7253, Jan. 22, 2001]