(a) Use of funds means the expenditure of funds by an LSC recipient.
(1) Authorized use of funds means any use of funds within the purpose for which the funds were provided. The following non-exhaustive list provides examples of some of the types of purposes that a grantor, donor, or other might identify.
(i) A grant stating that the funds provided are available to support legal services for victims of domestic violence regardless of income or financial resources are authorized for those purposes;
(ii) A grant stating that the funds provided are available to support any civil legal services to people with household incomes below 200% of the Federal Poverty Guidelines are authorized for those purposes;
(iii) A private donation stating that the funds are for eviction work are authorized for that purpose; or
(iv) A private donation without any instructions from the donor or grantor regarding the use of the funds are available for any purposes.
(2) Unauthorized use of funds means any use of funds that is not an authorized use as defined above.
(b) Derived from means the recipient obtained the funds either directly from the source or as the result of a series of grants and subgrants (or similar arrangements) originating from the source. For example, a state provides public funds to a private, non-LSC-funded statewide legal aid entity. The statewide legal aid entity subgrants some of those public funds to an LSC recipient to provide services in six counties. The subgranted funds remain public funds under this rule because they are derived from public funds.
(c) Non-LSC funds means funds derived from any source other than LSC.
(1) Private funds means funds that are derived from any source other than LSC or the other categories of non-LSC funds in this section. Examples of private funds are donations from individuals or grants that do not qualify as public funds or tribal funds in this section.
(2) Public funds means funds that are:
(i) Derived from a Federal, State, or local government or instrumentality of a government; or
(ii) Derived from Interest on Lawyers' Trust Account (IOLTA or IOLA) programs established by State court rules or legislation that collect and distribute interest on lawyers' trust accounts.
(3) Tribal funds means funds that are derived from an Indian tribe or from a private nonprofit foundation or organization for the benefit of Indians or Indian tribes.
(d) Restrictions means the prohibitions or limitations on the use of LSC funds by a recipient and on the use of non-LSC funds as described in this part. LSC has four categories of restrictions: Extended, standard, limited, and other. The restrictions appear in 45 CFR parts 1600 through 1644, in the LSC Act at 42 U.S.C. 2996-2996l and in the sections of LSC's annual appropriation (Appropriations Restrictions) that incorporate the restrictions enacted in section 504 of Title V in Public Law 104-134, 122 Stat. 1321-50 (1996), as incorporated through Public Law 105-119, tit. V, § 502(a)(2), 111 Stat. 2440, 2510 (1998) and subject to modifications in other statutes.
(1) Extended restrictions are the restrictions on:
(i) Abortion litigation (other abortion activities are subject to a standard restriction) - Section 504(a)(14) of the Appropriations Restrictions;
(ii) Aliens (representation of non-U.S. citizens) - 45 CFR part 1626;
(iii) Class actions - 45 CFR part 1617;
(iv) Evictions from public housing involving illegal drug activities - 45 CFR part 1633;
(v) Lobbying in general - 45 CFR1612.3, subject to the limitations and exceptions in 45 CFR 1612.5 (activities that are not lobbying) and 45 CFR 1612.6 (exceptions for non-LSC funds that are a limited restriction);
(vi) Prisoner litigation - 45 CFR part 1637;
(vii) Redistricting or census - 45 CFR part 1632;
(viii) Solicitation of clients - 45 CFR part 1638;
(ix) Training on prohibited topics - 45 CFR 1612.8; and
(x) Welfare reform - 45 CFR part 1639.
(2) Standard restrictions are the restrictions on:
(i) Abortion activities (other than abortion litigation subject to an extended restriction) - 42 U.S.C. 2996f(b)(8);
(ii) Criminal proceedings - 45 CFR part 1613;
(iii) Draft registration violations (violations of Military Selective Service Act) or military desertion - 42 U.S.C. 2996f(b)(10);
(iv) Desegregation of schools - 42 U.S.C. 2996f(b)(9);
(v) Fee-generating cases - 45 CFR part 1609;
(vi) Habeas corpus (collaterally attacking criminal convictions) - 45 CFR part 1615;
(vii) Organizing - 45 CFR 1612.9;
(viii) Persistent incitement of litigation and other activities prohibited by rules of professional responsibility for attorneys - Section 42 U.S.C. 2996f(a)(10); and
(ix) Political activities - the provisions of 45 CFR part 1608 that are stated as restrictions on the use of LSC funds (e.g., the clause of § 1608.4(b) regarding “the use of any Corporation funds”) but not the other provisions of part 1608, which are included in the category for other restrictions (e.g., § 1608.3(a) prohibiting the use of “any political test or qualification”). ).
(3) Limited restrictions are the restrictions on:
(i) Lobbying permitted with non-LSC funds (upon government request, in public rulemaking, or regarding state or local funding of the recipient) - 45 CFR 1612.6;
(ii) Assisted suicide, euthanasia, and mercy killing - 45 CFR part 1643; and
(iii) Use of appropriated LSC funds to file or pursue a lawsuit against LSC - Section 506 of the Appropriations Restrictions.
(4) Other restrictions are the restrictions on:
(i) Demonstrations, picketing, boycotts, or strikes - 45 CFR 1612.7(a).
(ii) Political activities - the provisions of 45 CFR part 1608 other than those stated as restrictions on the use of LSC funds (which are standard restrictions) (e.g., § 1608.3(a) prohibiting the use of “any political test or qualification” is an other restriction).
(iii) Rioting, civil disturbances, or violations of injunctions - 45 CFR 1612.7(b).
(e) Restricted activity means an activity prohibited or limited by the restrictions.
(f) Program integrity means that a recipient is maintaining objective integrity and independence from any organization that engages in restricted activities, as required by subpart C of this part.