Archived Information

RSA Monitoring Redesign Initiative\
Informational Booklet #1

U.S. Department of Education

Office of Special Education and Rehabilitative Services

Rehabilitation Services Administration

2005

**U.S. Department of Education**

Margaret Spellings

######### Secretary

####### Office of Special Education and Rehabilitative Services

John H. Hager

######### Assistant Secretary

####### Rehabilitation Services Administration

Edward Anthony

######### Acting Commissioner

October 2005

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Education, Office of Special Education and Rehabilitative Services,
Rehabilitation Services Administration, *RSA Monitoring Redesign
Initiative Informational Booklet #1*, Washington, D.C., 2005.

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# Contents

[Foreword v](#foreword)

[Redesign of the Rehabilitation Services Administration Monitoring and
Program Improvement System
1](#redesign-of-the-rehabilitation-services-administration-monitoring-and-program-improvement-system)

[Overview 1](#overview)

[Understanding the Legislative Basis for RSA Monitoring Activities
3](#understanding-the-legislative-basis-for-rsa-monitoring-activities)

[Overview of the *Rehabilitation Act of 1973*
3](#overview-of-the-rehabilitation-act-of-1973)

[Section 107---Monitoring and Review
4](#section-107monitoring-and-review)

[Section 106---Evaluation Standards and Performance Indicators
6](#section-106evaluation-standards-and-performance-indicators)

[Section 101(a)(15)---Title I State Plan
8](#section-101a15title-i-state-plan)

[RSA Restructuring 11](#rsa-restructuring)

[The State Monitoring and Program Improvement Division (SMPID)
12](#the-state-monitoring-and-program-improvement-division-smpid)

[SMPID Functional Units 14](#smpid-functional-units)

[SMPID State Teams 17](#smpid-state-teams)

[Appendix A A-1](#appendix-a)

[Section 107---Monitoring and Review
A-3](#section-107monitoring-and-review-1)

[Section 106---Evaluation Standards and Performance Indicators
A-7](#section-106evaluation-standards-and-performance-indicators-1)

[Section 101---State Plans A-9](#section-101state-plans)

# Foreword

This informational booklet contains background materials regarding the
Rehabilitation Services Administration (RSA) initiative to redesign its
monitoring system. The booklet is intended to expand the knowledge and
understanding of those individuals selected to participate in the
RSA-sponsored monitoring conference that was held Aug. 24 and 25, 2005,
and to inform other interested stakeholders of the progress being made
in this important endeavor.

A primary objective of the monitoring redesign effort is to ensure that
the new process not only meets federal goals and legislative
requirements but also takes into account the needs and priorities of
stakeholders of the public VR system, including state VR agencies,
consumer and advocacy groups, community partners and providers, state
rehabilitation councils and other relevant federal agencies. The
objective of the August monitoring conference was to obtain input from
these stakeholder groups on RSA's monitoring process.

This booklet contains basic information regarding 1) the legislative
basis for RSA monitoring activities and 2) the recent RSA restructuring.

# Redesign of the Rehabilitation Services Administration Monitoring and Program Improvement System

## Overview

The U.S. Department of Education's Rehabilitation Services
Administration (RSA) is undertaking a major initiative to substantially
redesign its program monitoring and improvement system. The overriding
goal is to improve vocational rehabilitation (VR) services and
employment outcomes for individuals with disabilities through the
development of a new monitoring system that involves key stakeholders,
is performance-based and which establishes a state-level network of
partners who assist in identifying improvements and who support the
provision of resources and technical assistance necessary to achieve
those improvements.

An important phase of this initiative is focused on obtaining the input,
involvement and support of key stakeholder groups including state VR
directors, consumer and advocacy groups, community partners and
providers, state rehabilitation councils (SRCs), RSA staff and other
interested federal agencies. To achieve this objective, a two-day
monitoring conference was conducted in Washington, D.C., on Aug. 24 and
25, 2005. Approximately 200 individuals participated in the event,
including federal representatives, national experts, state VR agencies,
SRCs, consumer and advocacy groups, community partners and provider
organizations and other key stakeholders.

The goal of the two-day conference was to obtain input on the issues,
outcomes and focus areas that are important to RSA's stakeholders. RSA
is implementing a new organizational structure that will include a
division devoted to monitoring and program improvement. Staffed by
individuals from this new division, state teams will make periodic
on-site visits and carry out annual reviews consistent with the
requirements of the *Rehabilitation Act of 1973*. The new organizational
structure will identify those who will make up the state teams, the type
of background information that RSA staff will use during their
monitoring and review activities, and the way in which the results of
these activities will be processed to help state agencies improve their
performance. The input generated by this conference is enabling RSA to
understand the concerns and priorities its stakeholders assign to its
new monitoring process.

The information contained in this booklet was designed to establish a
common level of knowledge and understanding among those individuals who
participated in the August conference. It has been organized into two
categories of information, providing background information regarding
the legislative mandate for RSA monitoring and program review activities
and providing an overview of the RSA restructuring effort as it relates
to monitoring.

#  {#section .unnumbered}

# Understanding the Legislative Basis for RSA Monitoring Activities

This portion of the informational booklet was designed to give
conference attendees an overview of the basic elements of the
*Rehabilitation Act of 1973* that relate to RSA monitoring activities.
The relevant sections of the act are provided in Appendix A.

## Overview of the *Rehabilitation Act of 1973*

The act provides the legislative basis for programs and activities that
assist individuals with disabilities in the pursuit of gainful
employment, independence, self-sufficiency and full integration into
community life. RSA is the principal agency for carrying out Titles I,
III, VI, and VII, as well as specified portions of Title V of the act.

By far, the largest program administered by RSA is the State VR Services
Program, authorized under Title I, Sections 100-111, of the act. This
formula grant program provides financial assistance to states to cover
the cost of program administration and employment-related services for
individuals with disabilities in order to maximize their employability,
independence and integration into the workplace and the community.

Grant funds are administered by VR agencies designated by each state and
territory. All 56 states and territories have VR agencies. Twenty-four
states also have separate agencies serving individuals who are blind or
visually impaired. In addition, the American Indian VR Services Program
(AIVRS), authorized under Section 121 of the act, is supported by funds
allocated under Section 110 of Title I. The AIVRS program provides
grants to governing bodies of Indian tribes to deliver VR services to
American Indians with disabilities that live on or near federal or state
reservations.

### Monitoring

The three primary sections of the act related to monitoring are Sections
107, 106 and 101(a)(15). Section 107 of the act requires the RSA
commissioner to conduct annual reviews and periodic on-site monitoring
of programs authorized under Title I. According to the act, the overall
goal of RSA monitoring activities is to determine compliance with the
assurances made in the VR agency's state plan, as required under Section
101(a)(15) of the act, and with the Evaluation Standards and Performance
Indicators established under Section 106.

The information provided below provides an overview of Sections 107, 106
and 101(a)(15), and highlights those elements specifically related to
the monitoring process.

## Section 107---Monitoring and Review

Section 107 of the *Rehabilitation Act of 1973* provides the legislative
basis for the RSA commissioner to conduct: 1) annual reviews and 2)
periodic on-site monitoring of programs authorized under Title I of the
act.

While reviews and monitoring activities share a common purpose, common
areas of inquiry and common reporting requirements, the act prescribes
different procedures and timetables for each.

### Common Purpose

The annual reviews and periodic on-site monitoring are conducted in
order to enable RSA to determine whether, in the administration of the
state plan, a state is complying substantially with the provisions of
such plan and with the evaluation standards and performance indicators
established under Section 106.

### Common Areas of Inquiry

Both **monitoring** and **review** activities examine common areas of
inquiry:

-   Consumer eligibility for services;

-   Provision of services, including, if applicable, the order of
    selection;

-   Other programmatic focus areas identified through public input or in
    the meetings conducted with the agency's SRC or the Consumer Control
    Commissions Board (CCCB); and

-   Other programmatic focus areas designated by the RSA commissioner.

### Common Report Requirements

Any report developed by RSA detailing findings of an annual review or
monitoring process must be made available to the state agency and the
SRC or CCCB, and is used in the development or modification of the state
plan.

### Unique Procedures for Annual Reviews

To meet the annual review requirements of Section 107, the RSA
commissioner must consider:

-   State policies and procedures;

-   Guidance materials;

-   State agency compliance with goals established in the state plan and
    the extent to which the agency achieved those goals;

-   State agency compliance with the Title I evaluation standards and
    performance indicators;

-   Decisions resulting from due process hearings;

-   Consumer satisfaction reviews and analyses;

-   Information provided by the SRC or CCCB;

-   Reports; and

-   Budget and financial management data.

### Unique Procedures for Monitoring

To meet the monitoring requirements under Section 107, RSA must conduct:

-   On-site reviews of records to verify the state agency is following
    requirements regarding the order of selection;

-   Public hearings and other forums to obtain public input;

-   Meetings with the SRC or CCCB;

-   Reviews of individual case files, including Individual Plans of
    Employment (IPEs) and ineligibility determinations; and

-   Meetings with VR counselors and other personnel.

### Comparing Review Procedures with Monitoring Procedures

The act envisions reviews as essentially an analysis of documents, and
monitoring as essentially on-site activities.

### Comparing Timetables for Reviews and Monitoring

Reviews must be conducted annually.

On-site monitoring must be conducted periodically.

### Technical Assistance

Under Section 107, RSA is authorized to provide technical assistance to
the state agency and to work collaboratively with that agency to
establish a corrective action plan if any part of the state agency
program fails to comply substantially with the state plan or with the
Title I evaluation standards and performance indicators.

### Failure to Comply

Section 107 gives RSA authority to withhold, reduce or limit payments if
the plan has been so changed that it no longer complies with the
requirements of Section 101(a); or if in the administration of the plan
there is a failure to comply substantially with any provision of such
plan or with an evaluation standard or performance indicator established
under Section 106.

## Section 106---Evaluation Standards and Performance Indicators

In fiscal year 2000, RSA implemented Title I program evaluation
standards and corresponding performance indicators to measure
performance under the State VR Services Program. Final regulations
implementing the evaluation standards and performance indicators were
published on June 5, 2000 (65 FR 35791-35891). The standards and
indicators are considered a crucial part of a comprehensive, integrated
system of accountability for the State VR Services Program. The 1998
amendments to the act require state VR agencies to use the Title I
standards and indicators as a basis for developing the state plan and
programmatic goals and priorities.

**Evaluation Standard 1---Employment Outcomes.** Each state VR agency
must assist eligible individuals, including individuals with significant
disabilities, to obtain, maintain or regain high-quality employment.

> **Performance Indicator 1.1:** The number of individuals exiting the
> VR program who achieved an employment outcome (got a job) during the
> current performance period, compared with the number of individuals
> exiting the VR program after achieving an employment outcome during
> the previous performance period.
>
> **Performance Indicator 1.2:** Of all of the individuals who exit the
> VR program after having received services, the percentage of those
> individuals who are determined to have achieved an employment outcome.
>
> **Performance Indicator 1.3:** Of all of the individuals determined to
> have achieved an employment outcome, the percentage who exit the VR
> program and enter into competitive, self- or BEP (Business Enterprise
> Program, also known as the Vending Facility Program) employment with
> earnings equivalent to at least the minimum wage.
>
> **Performance Indicator 1.4:** Of all of the individuals who exit the
> VR program and enter into competitive, self- or BEP employment with
> earnings equivalent to at least the minimum wage, the percentage who
> are individuals with significant disabilities.
>
> **Performance Indicator 1.5:** The average hourly earnings of all of
> the individuals who exit the VR program and enter into competitive,
> self- or BEP employment with earnings levels equivalent to at least
> the minimum wage as a ratio of the state's average hourly earnings for
> all individuals in the state who are employed (as derived from the
> Bureau of Labor Statistics report, "State Average Annual Pay," for the
> most recent available year).
>
> **Performance Indicator 1.6:** Of all of the individuals who exit the
> VR program and enter into competitive, self- or BEP employment with
> earnings equivalent to at least the minimum wage, the difference
> between the percentage who report their own income as the largest
> single source of economic support at the time they exit the VR program
> and the percentage who report their own income as the largest single
> source of support at the time they apply for VR services.

**Evaluation Standard 2---Equal Access to Services.** Each state VR
agency must ensure that individuals from minority backgrounds have equal
access to VR services.

**Performance Indicator 2.1:** This indicator is a ratio of the service
rate for all individuals with disabilities from minority backgrounds to
the service rate for all nonminority individuals with disabilities.

At the close of each fiscal year, RSA collects and analyzes data related
to the Title I evaluation standards and performance indicators from each
of the 80 state VR agencies. This includes 56 general and combined
agencies and 24 state agencies for the blind. Due to the nature of the
work being performed, there are different performance expectations for
general and combined agencies and for those agencies serving the blind
and visually impaired

For those states that are found to be performing below the standards,
RSA provides technical assistance and works directly with the state VR
agency to develop a program improvement plan outlining the specific
actions to be taken for the agency to improve program performance.
Future monitoring reviews focus on performance in those improvement
areas.

## Section 101(a)(15)---Title I State Plan

For a state to participate in the State VR Services Program authorized
under Title I of the act, and the State Supported Employment Services
Program under Title VI, Part B, it must have an approved Title I State
Plan and Title VI, Part B, supplement to the Title I plan.

The Title I state plan and its Title VI, Part B, supplement reflect a
state\'s commitment to administer these two formula grant programs in
compliance with the provisions of the plan and its supplement, and
federal statutory, regulatory and policy requirements. The plan and its
supplement also describe a state\'s activities related to various
administrative and operational considerations connected with these
programs. As such, the plan and its supplement serve as key elements in
RSA's monitoring of a state\'s administration of these two programs.

The key elements of the state plan that are considered in the monitoring
and review process are:

-   Annual goals, including reports of the extent to which those goals
    were achieved, a description of the strategies that contributed to
    meeting the goals, the extent to which goals were not met and a
    description of contributing factors to not meeting the goals;

-   State agency performance under the Title I evaluation standards and
    performance indicators;

-   Results of the comprehensive, statewide needs assessment, including
    a description of the VR needs of individuals in the state, in
    particular, individuals with the most significant disabilities,
    individuals with disabilities who are minorities, individuals with
    disabilities who have been unserved or underserved and individuals
    with disabilities served through other components of the statewide
    workforce investment system;

-   Outreach procedures and strategies to identify and serve individuals
    with disabilities who are minorities and individuals with
    disabilities who have been unserved or underserved by the state's VR
    program; and

-   Needs related to community rehabilitation programs within the state,
    and where necessary, the plan for establishing, developing or
    improving those programs.

The state plan must also include estimates of:

-   The number of individuals in the state who are eligible for
    services;

-   The number of such individuals who will receive services provided
    with funds under Part B and under Part B of Title VI; and

-   If under an order of selection, the number of individuals to be
    served under each priority category within the order and the costs
    of the services for each priority category within the order.

The plan must also address other available information on the operation
and the effectiveness of the VR program, including:

-   Reports from the SRC;

-   Findings and recommendations from previous monitoring activities;

-   Methods to be used to expand and improve services to individuals
    with disabilities, including a broad range of assistive technology
    services and assistive technology devices; and

-   Strategies for assisting entities carrying out other components of
    the statewide workforce investment system, other than the state VR
    program, in assisting individuals with disabilities.

#  {#section-1 .unnumbered}

# RSA Restructuring

The Rehabilitation Services Administration (RSA) is in the process of
reorganizing, including consolidating the regional offices to the RSA
central office. Under the new structure, the RSA commissioner will
provide overall direction, coordination and leadership to a program
support staff and two divisions: the State Monitoring and Program
Improvement Division (SMPID) and the Training and Service Programs
Division (TSPD).

Exhibit 1: Reorganized Structure of the Rehabilitation Services
Administration

##  

Reorganized Structure of the Rehabilitation Services Administration

Under the new structure (as shown in Exhibit 1), the RSA commissioner
will provide overall direction, coordination and leadership to a program
support staff and two divisions: the State Monitoring and Program
Improvement Division (SMPID), and the Training and Service Programs
Division (TSPD).

The State Monitoring and Program Improvement Division (SMPID) will have
the following responsibilities:

-   Monitoring Basic VR state grants;

-   Monitoring Supported Employment state grants;

-   Monitoring Independent Living (IL) state grants;

-   Monitoring the Centers for Independent Living (CILs) discretionary
    program;

-   Monitoring the IL Services for Older Individuals Who Are Blind
    program;

-   Monitoring the Client Assistance Program (CAP);

-   Monitoring the Protection and Advocacy of Individual Rights (PAIR);

-   Monitoring the Protection and Advocacy for Assistive Technology
    program;

-   Overseeing program improvement; and

-   Overseeing evaluation.

The Training and Service Programs Division (TSPD) will be responsible
for:

-   Rehabilitation Training;

-   Demonstration and Training;

-   The Migrant and Seasonal Farm Workers program;

-   Projects With Industry;

-   American Indians VR Services;

-   The Recreation program;

-   The Helen Keller National Center;

-   The Randolph-Sheppard Vending Facilities program;

-   The Alternate Financing Program/Telework program;

-   The Assistive Technology National Activities TA program; and

-   The Assistive Technology state grant program.

## The State Monitoring and Program Improvement Division (SMPID)

For the purposes of this informational booklet, it is particularly
important to understand the role and responsibilities of the SMPID. A
more complete description of the overall restructuring changes RSA is
undergoing, including information regarding the TSPD is available
through the RSA Web site, at:
[www.ed.gov/about/offices/list/osers/rsa/rsa_consolidation_fact_sheet.html](http://www.ed.gov/about/offices/list/osers/rsa/rsa_consolidation_fact_sheet.html).

The SMPID will be responsible for monitoring seven of RSA's formula
grant programs to ensure consistency with federal requirements and to
ensure that states continue to implement programs designed to improve
results for individuals with disabilities. The SMPID will also be
responsible for state plan review and approval.

The SMPID is divided into functional units and state teams. Each staff
person in the SMPID is assigned to one of five functional units: Data
Collection and Analysis, Fiscal, VR Program, Independent Living (IL) and
Technical Assistance (TA).

Each state team is made up of one or more individuals from each of the
five functional units. Each state grantee is assigned a state team.

## SMPID Functional Units

As mentioned above, there are five functional units reflecting the
following areas of focus:

> 1\) Data Collection and Analysis
>
> 2\) Fiscal
>
> 3\) VR Program
>
> 4\) Independent Living (IL)
>
> 5\) Technical Assistance (TA)

The activities of the five functional units enable the state teams to
monitor and assist states in improving their programs. Each SMPID staff
member is assigned to one of the five functional units.

In addition to supporting state teams, each functional unit will be
responsible for administrative activities involving one or more of the
division's programs (e.g., the Independent Living (IL) Unit will have
primary administrative responsibility for the Independent Living State
Grants Program, the Independent Living Discretionary Program and the
Independent Living Services for Older Individuals Who Are Blind
Program.)

The purposes of each of the five functional units are highlighted below.

### Data Collection and Analysis Unit

The purposes of the Data Collection and Analysis Unit are to:

-   Review and improve RSA databases and work with state VR agencies to
    maintain those databases on all state grantees, enabling the VR
    Program Unit to develop individual profiles for each state grantee;

-   Support the VR Program Unit and the IL Unit in the development of
    program performance profiles;

-   Develop and implement an annual evaluation plan; and

-   Provide support to state teams in their data analysis activities.

### Fiscal Unit

The purposes of the Fiscal Unit are to:

-   Develop and maintain a fiscal performance data profile of each state
    VR grantee and CIL Discretionary Program grantee;

-   Improve and maintain a fiscal monitoring process that state teams
    will use to determine if state grantees and CIL Discretionary
    Program grantees are meeting their fiscal obligations under their
    respective statutes;

-   Oversee the resolution of audit findings (single audits, IG audits,
    GAO reports) including grantbacks, primary and collateral
    determinations; and

-   Support the fiscal monitoring reviews and audit resolution
    activities carried out by the state teams.

### VR Program Unit

The purposes of the VR Program Unit are to:

-   Develop and maintain a program performance profile on each VR state
    grantee that includes an organizational description of how each
    agency operates;

-   Develop and implement systems for the review of state plan
    submissions and for coordinating with other offices, as necessary;

-   Improve and maintain the state VR grant monitoring process used by
    state teams to identify improvements that state VR grantees should
    make in order to improve performance and meet program obligations;

-   Support state teams in the state plan approval, monitoring processes
    and program improvement efforts;

-   Coordinate with the Office of the Assistant Secretary (OAS) policy
    team in development and dissemination of policy guidance,
    regulations and program guidance in all areas of responsibility;

-   Coordinate with the Department in implementation of integrated
    monitoring activities;

-   Develop program performance measures used to evaluate and monitor
    grantees;

-   Provide TA to the state grant programs in the Division of Training
    and Services Program (DTSP); and

-   Oversee administrative activities involving the Basic VR State
    Grants and Supported Employment State Grants.

### Independent Living (IL) Unit

The purposes of the Independent Living (IL) Unit are to:

-   Develop and maintain a program performance profile on each state's
    IL grantees that includes an organizational description of how each
    agency operates;

-   Develop and implement systems for the review of IL state plan
    submissions and IL Services for Older Individuals Who Are Blind
    Program applications, and for coordinating with other offices, as
    necessary;

-   Improve and maintain the IL grant monitoring process used by state
    teams to identify improvements that IL state grantees should make to
    improve their performance and meet their program obligations;

-   Manage the discretionary award process for the CIL program,
    including development of priorities, review, evaluation and
    documentation of all applications for funding;

-   Coordinate with the Department, the implementation of the
    Department's integrated monitoring activities;

-   Participate in the development and dissemination of policy guidance,
    regulations and program guidance in all areas of responsibility;

-   Support the state teams in their IL state plan approval, monitoring
    processes and program improvement efforts;

-   Develop program performance measures which are used to evaluate and
    monitor grantees; and

-   Oversee administrative activities involving the IL State Grants
    Program, IL Discretionary Program and the IL Services for Older
    Individuals Who Are Blind Program.

### Technical Assistance (TA) Unit

The purposes of the Technical Assistance (TA) Unit are to:

-   Develop and maintain a database of TA resources;

-   Develop networks of partners in each state made up of consumers,
    providers, state agency representatives, SRCs, SILCs, federal
    agencies and any other interested parties that wish to participate
    in the state team's monitoring and program improvement activities;

-   Assist state network partners to understand the legal and
    programmatic requirements of the statutes;

-   Collaborate with the Training and Services Programs Division (TSPD)
    to identify resources that will assist grantees in program
    improvement efforts;

-   Provide support to state teams in their efforts to achieve
    identified improvements in each state;

-   Provide TA to the state grant programs in TSPD;

-   Administer funds, authorized under Section 12 of the act, to provide
    TA and support services to programs funded under the act; and

-   Oversee administrative activities involving the CAP, PAIR and
    Protection and Advocacy for Assistive Technology (PAAT) Program.

## SMPID State Teams

Each state team is made up of one or more persons from each of the five
functional units.

A state team will be assigned to every state and is responsible for all
of the SMPID's formula and Centers for Independent Living Discretionary
Program grantees that operate in that state.

A designated state team member, *the state liaison*, chairs the work of
the state team. Each person in the division is assigned responsibility
as the state liaison for one or more states. The state liaison leads and
organizes the activities of the state team. The state liaison is the
single point of contact with the state agencies but will bring in
expertise from other functional units and department personnel, as
needed.

A *state teams coordinator* works with all the state teams to assist
them in carrying out all of their activities in a timely and effective
manner.

State teams will work collaboratively with VR consumers, disability
advocates, community partners, state agencies, SRCs, Consumer Control
Commission Boards and other interested parties.

To carry out the following seven core activities, state teams will:

1)  Implement a continuous process of performance-based program and
    fiscal monitoring to identify areas of improvement, as well as areas
    of noncompliance that require corrective action by the grantee.

2)  Develop and issue annual reports, carry out periodic on-site reviews
    and other monitoring activities required by statute.

3)  Provide technical assistance to all grantees to assist them in
    making improvements and taking corrective actions identified in the
    monitoring process.

4)  Review and approve VR and IL state plans including preparing state
    plan approval letters and providing appropriate technical assistance
    to states to ensure consistency with federal requirements and a
    timely release of federal funds.

5)  Provide policy guidance to grantees.

6)  Review and approve CAP, PAIR and Protection and Advocacy for
    Assistive Technology (PAAT) Program state assurances.

7)  Carry out audit resolution activities including single audits,
    inspector general audits, grantbacks and primary and collateral
    determinations.

The graphic on the following page depicts the interrelationship between
the SMPID functional units, state teams and state grantees as it has
been described above.

Exhibit 2: Structure of the State Monitoring and Program Improvement
Division

Structure of the State Monitoring and Program Improvement Division

Under its new structure, the State Monitoring and Program Improvement
Division (SMPID) is divided into five functional units and state teams
(as shown in Exhibit 2). Each staff person in the SMPID is assigned to
one of the following five functional units:

-   The Data Collection and Analysis Unit;

-   The Fiscal Unit;

-   The VR Program Unit;

-   The Independent Living (IL) Unit; or

-   The Technical Assistance Unit.

Each state team is made up of one or more individuals from each of the
five above referenced functional units. The elements of the SMPID
interact with the RSA state teams. These state teams:

-   Are comprised of representatives from each functional unit;

-   Conduct performance-based program and fiscal monitoring;

-   Develop annual reports and conduct on-site reviews;

-   Provide technical assistance to grantees;

-   Approve vocational rehabilitation and IL state plans;

-   Provide policy guidance to grantees; and

-   Approve the Client Assistance Program (CAP), Protection and Advocacy
    of Individual Rights (PAIR) program; and the Protection and Advocacy
    for Assistive Technology (PAAT) program state assurances.

Each state grantee is assigned a state team. The RSA state teams
interact with the state grantees including basic state formula grantees
and CILs discretionary program grantees in all states. The interaction
of all these entities is continuous, collaborative and performance
driven.

# Appendix A

## Section 107---Monitoring and Review

\(a\) In General

\(1\) Duties

In carrying out the duties of the commissioner under this title, the
commissioner shall---

\(A\) provide for the annual review and periodic on-site monitoring of
programs under this title; and

\(B\) determine whether, in the administration of the state plan, a
state is complying substantially with the provisions of such plan and
with evaluation standards and performance indicators established under
Section 106.

\(2\) Procedures for reviews

In conducting reviews under this section the commissioner shall
consider, at a minimum---

\(A\) State policies and procedures;

\(B\) guidance materials;

\(C\) decisions resulting from hearings conducted in accordance with due
process;

\(D\) State goals established under Section 101(a)(15) and the extent to
which the state has achieved such goals;

\(E\) plans and reports prepared under Section 106(b);

\(F\) consumer satisfaction reviews and analyses described in Section
105(c)(4);

\(G\) information provided by the State Rehabilitation Council
established under Section 105, if the state has such a council, or by
the commission described in Section 101(a)(21)(A)(i), if the state has
such a commission;

\(H\) reports; and

\(I\) budget and financial management data.

\(3\) Procedures for monitoring

In conducting monitoring under this section the commissioner shall
conduct---

\(A\) on-site visits, including on-site reviews of records to verify
that the state is following requirements regarding the order of
selection set forth in Section 101(a)(5)(A);

\(B\) public hearings and other strategies for collecting information
from the public;

\(C\) meetings with the State Rehabilitation Council, if the state has
such a council or with the commission described in Section
101(a)(21)(A)(i), if the state has such a commission;

\(D\) reviews of individual case files, including individualized plans
for employment and ineligibility determinations; and

\(E\) meetings with qualified vocational rehabilitation counselors and
other personnel.

\(4\) Areas of inquiry

In conducting the review and monitoring, the commissioner shall
examine---

\(A\) the eligibility process;

\(B\) the provision of services, including, if applicable, the order of
selection;

\(C\) such other areas as may be identified by the public or through
meetings with the State Rehabilitation Council, if the state has such a
council or with the commission described in Section 101(a)(21)(A)(i), if
the state has such a commission; and

\(D\) such other areas of inquiry as the commissioner may consider
appropriate.

\(5\) Reports

If the commissioner issues a report detailing the findings of an annual
review or on-site monitoring conducted under this section, the report
shall be made available to the State Rehabilitation Council, if the
state has such a council, for use in the development and modification of
the state plan described in Section 101.

\(b\) Technical Assistance

The commissioner shall---

\(1\) provide technical assistance to programs under this title
regarding improving the quality of vocational rehabilitation services
provided; and

\(2\) provide technical assistance and establish a corrective action
plan for a program under this title if the commissioner finds that the
program fails to comply substantially with the provisions of the state
plan, or with evaluation standards or performance indicators established
under Section 106, in order to ensure that such failure is corrected as
soon as practicable.

\(c\) Failure to Comply With Plan

\(1\) Withholding payments

Whenever the commissioner, after providing reasonable notice and an
opportunity for a hearing to the state agency administering or
supervising the administration of the state plan approved under Section
101, finds that---

\(A\) the plan has been so changed that it no longer complies with the
requirements of Section 101(a); or

\(B\) in the administration of the plan there is a failure to comply
substantially with any provision of such plan or with an evaluation
standard or performance indicator established under Section 106,

the commissioner shall notify such state agency that no further payments
will be made to the state under this title (or, in the discretion of the
commissioner, that such further payments will be reduced, in accordance
with regulations the commissioner shall prescribe, or that further
payments will not be made to the state only for the projects under the
parts of the state plan affected by such failure), until the
commissioner is satisfied there is no longer any such failure.

\(2\) Period

Until the commissioner is so satisfied, the commissioner shall make no
further payments to such state under this title (or shall reduce
payments or limit payments to projects under those parts of the state
plan in which there is no such failure).

\(3\) Disbursal of withheld funds

The commissioner may, in accordance with regulations the secretary shall
prescribe, disburse any funds withheld from a state under paragraph (1)
to any public or nonprofit private organization or agency within such
state or to any political subdivision of such state submitting a plan
meeting the requirements of Section 101(a). The commissioner may not
make any payment under this paragraph unless the entity to which such
payment is made has provided assurances to the commissioner that such
entity will contribute, for purposes of carrying out such plan, the same
amount as the state would have been obligated to contribute if the state
received such payment.

\(d\) Review

\(1\) Petition

Any state that is dissatisfied with a final determination of the
commissioner under Section 101(b) or Subsection (c) may file a petition
for judicial review of such determination in the U.S. Court of Appeals
for the circuit in which the state is located. Such a petition may be
filed only within the 30-day period beginning on the date that notice of
such final determination was received by the state. The clerk of the
court shall transmit a copy of the petition to the commissioner or to
any officer designated by the commissioner for that purpose. In
accordance with Section 2112 of Title 28, *U.S. Code*, the commissioner
shall file with the court a record of the proceeding on which the
commissioner based the determination being appealed by the state. Until
a record is so filed, the commissioner may modify or set aside any
determination made under such proceedings.

\(2\) Submissions and determinations

If, in an action under this subsection to review a final determination
of the commissioner under Section 101(b) or Subsection (c), the
petitioner or the commissioner applies to the court for leave to have
additional oral submissions or written presentations made respecting
such determination, the court may, for good cause shown, order the
commissioner to provide within 30 days an additional opportunity to make
such submissions and presentations. Within such period, the commissioner
may revise any findings of fact, modify or set aside the determination
being reviewed, or make a new determination by reason of the additional
submissions and presentations, and shall file such modified or new
determination, and any revised findings of fact, with the return of such
submissions and presentations. The court shall thereafter review such
new or modified determination.

\(3\) Standards of review

\(A\) In general

Upon the filing of a petition under Paragraph (1) for judicial review of
a determination, the court shall have jurisdiction---

\(i\) to grant appropriate relief as provided in Chapter 7 of Title 5,
*U.S. Code*, except for interim relief with respect to a determination
under Subsection (c); and

\(ii\) except as otherwise provided in Subparagraph (B), to review such
determination in accordance with Chapter 7 of Title 5, *U.S. Code*.

\(B\) Substantial evidence

Section 706 of Title 5, *U.S. Code*, shall apply to the review of any
determination under this Subsection, except that the standard for review
prescribed by Paragraph (2)(E) of such Section 706 shall not apply and
the court shall hold unlawful and set aside such determination if the
court finds that the determination is not supported by substantial
evidence in the record of the proceeding submitted pursuant to Paragraph
(1), as supplemented by any additional submissions and presentations
filed under Paragraph (2).

## Section 106---Evaluation Standards and Performance Indicators

\(a\) Establishment

\(1\) In general

\(A\) Establishment of standards and indicators

The commissioner shall, not later than July 1, 1999, establish and
publish evaluation standards and performance indicators for the
vocational rehabilitation program carried out under this title.

\(B\) Review and revision

Effective July 1, 1999, the commissioner shall review and, if necessary,
revise the evaluation standards and performance indicators every three
years. Any revisions of the standards and indicators shall be developed
with input from state vocational rehabilitation agencies, related
professional and consumer organizations, recipients of vocational
rehabilitation services, and other interested parties. Any revisions of
the standards and indicators shall be subject to the publication, review
and comment provisions of Paragraph (3).

\(C\) Bases

Effective July 1, 1999, to the maximum extent practicable, the standards
and indicators shall be consistent with the core indicators of
performance established under Section 136(b) of the *Workforce
Investment Act of 1998*.

\(2\) Measures

The standards and indicators shall include outcome and related measures
of program performance that facilitate the accomplishment of the purpose
and policy of this title.

\(3\) Comment

The standards and indicators shall be developed with input from state
vocational rehabilitation agencies, related professional and consumer
organizations, recipients of vocational rehabilitation services and
other interested parties. The commissioner shall publish in the *Federal
Register* a notice of intent to regulate regarding the development of
proposed standards and indicators. Proposed standards and indicators
shall be published in the *Federal Register* for review and comment.
Final standards and indicators shall be published in the *Federal
Register*.

\(b\) Compliance

\(1\) State reports

In accordance with regulations established by the secretary, each state
shall report to the commissioner after the end of each fiscal year the
extent to which the state is in compliance with the standards and
indicators.

\(2\) Program improvement

\(A\) Plan

If the commissioner determines that the performance of any state is
below established standards, the commissioner shall provide technical
assistance to the state, and the state and the commissioner shall
jointly develop a program improvement plan outlining the specific
actions to be taken by the state to improve program performance.

\(B\) Review

The commissioner shall---

\(i\) review the program improvement efforts of the state on a biannual
basis and, if necessary, request the state to make further revisions to
the plan to improve performance; and

\(ii\) continue to conduct such reviews and request such revisions until
the state sustains satisfactory performance over a period of more than
one year.

\(c\) Withholding

If the commissioner determines that a state whose performance falls
below the established standards has failed to enter into a program
improvement plan, or is not complying substantially with the terms and
conditions of such a program improvement plan, the commissioner shall,
consistent with Subsections (c) and (d) of Section 107, reduce or make
no further payments to the state under this program, until the state has
entered into an approved program improvement plan, or satisfies the
commissioner that the state is complying substantially with the terms
and conditions of such a program improvement plan, as appropriate.

\(d\) Report to Congress

Beginning in fiscal year 1999, the commissioner shall include in each
annual report to the Congress under Section 13 an analysis of program
performance, including relative state performance, based on the
standards and indicators.

## Section 101---State Plans

\(a\) Plan Requirements

\(1\) In general

\(A\) Submission

To be eligible to participate in programs under this title, a state
shall submit to the commissioner a state plan for vocational
rehabilitation services that meets the requirements of this section, on
the same date that the state submits a state plan under Section 112 of
the *Workforce Investment Act of 1998*.

\(B\) Nonduplication

The state shall not be required to submit, in the state plan for
vocational rehabilitation services, policies, procedures or descriptions
required under this title that have been previously submitted to the
commissioner and that demonstrate that such state meets the requirements
of this title, including any policies, procedures or descriptions
submitted under this title as in effect on the day before the effective
date of the *Rehabilitation Act Amendments of 1998*.

\(C\) Duration

The state plan shall remain in effect subject to the submission of such
modifications as the state determines to be necessary or as the
commissioner may require based on a change in state policy, a change in
federal law (including regulations), an interpretation of this act by a
federal court or the highest court of the state, or a finding by the
commissioner of state noncompliance with the requirements of this act,
until the state submits and receives approval of a new state plan.

\(2\) Designated state agency; designated state unit

\(A\) Designated state agency

The state plan shall designate a state agency as the sole state agency
to administer the plan, or to supervise the administration of the plan
by a local agency, except that---

\(i\) where, under state law, the state agency for individuals who are
blind or another agency that provides assistance or services to adults
who are blind is authorized to provide vocational rehabilitation
services to individuals who are blind, that agency may be designated as
the sole state agency to administer the part of the plan under which
vocational rehabilitation services are provided for individuals who are
blind (or to supervise the administration of such part by a local
agency) and a separate state agency may be designated as the sole state
agency to administer or supervise the administration of the rest of the
state plan;

\(ii\) the commissioner, on the request of a state, may authorize the
designated state agency to share funding and administrative
responsibility with another agency of the state or with a local agency
in order to permit the agencies to carry out a joint program to provide
services to individuals with disabilities, and may waive compliance,
with respect to vocational rehabilitation services furnished under the
joint program, with the requirement of Paragraph (4) that the plan be in
effect in all political subdivisions of the state; and

\(iii\) in the case of American Samoa, the appropriate state agency
shall be the governor of American Samoa.

\(B\) Designated state unit

The state agency designated under Subparagraph (A) shall be---

\(i\) a state agency primarily concerned with vocational rehabilitation,
or vocational and other rehabilitation, of individuals with
disabilities; or

\(ii\) if not such an agency, the state agency (or each state agency if
two are so designated) shall include a vocational rehabilitation bureau,
division or other organizational unit that---

\(I\) is primarily concerned with vocational rehabilitation, or
vocational and other rehabilitation, of individuals with disabilities,
and is responsible for the vocational rehabilitation program of the
designated state agency; (II) has a full-time director;

\(III\) has a staff employed on the rehabilitation work of the
organizational unit all or substantially all of whom are employed
full-time on such work; and (IV) is located at an organizational level
and has an organizational status within the designated state agency
comparable to that of other major organizational units of the designated
state agency.

\(C\) Responsibility for services for the blind

If the state has designated only one state agency pursuant to
Subparagraph (A), the state may assign responsibility for the part of
the plan under which vocational rehabilitation services are provided for
individuals who are blind to an organizational unit of the designated
state agency and assign responsibility for the rest of the plan to
another organizational unit of the designated state agency, with the
provisions of Subparagraph (B) applying separately to each of the
designated state units.

\(3\) Nonfederal share

The state plan shall provide for financial participation by the state,
or if the state so elects, by the state and local agencies, to provide
the amount of the nonfederal share of the cost of carrying out Part B.

\(4\) Statewideness

The state plan shall provide that the plan shall be in effect in all
political subdivisions of the sate, except that---

\(A\) in the case of any activity that, in the judgment of the
commissioner, is likely to assist in promoting the vocational
rehabilitation of substantially larger numbers of individuals with
disabilities or groups of individuals with disabilities, the
commissioner may waive compliance with the requirement that the plan be
in effect in all political subdivisions of the state to the extent and
for such period as may be provided in accordance with regulations
prescribed by the commissioner, but only if the nonfederal share of the
cost of the vocational rehabilitation services involved is met from
funds made available by a local agency (including funds contributed to
such agency by a private agency, organization or individual); and

\(B\) in a case in which earmarked funds are used toward the nonfederal
share and such funds are earmarked for particular geographic areas
within the state, the earmarked funds may be used in such areas if the
state notifies the commissioner that the state cannot provide the full
nonfederal share without such funds.

\(5\) Order of selection for vocational rehabilitation services

In the event that vocational rehabilitation services cannot be provided
to all eligible individuals with disabilities in the state who apply for
the services, the state plan shall---

\(A\) show the order to be followed in selecting eligible individuals to
be provided vocational rehabilitation services;

\(B\) provide the justification for the order of selection;

\(C\) include an assurance that, in accordance with criteria established
by the state for the order of selection, individuals with the most
significant disabilities will be selected first for the provision of
vocational rehabilitation services; and

\(D\) provide that eligible individuals, who do not meet the order of
selection criteria, shall have access to services provided through the
information and referral system implemented under Paragraph (20).

\(6\) Methods for administration

\(A\) In general

The state plan shall provide for such methods of administration as are
found by the commissioner to be necessary for the proper and efficient
administration of the plan.

\(B\) Employment of individuals with disabilities

The state plan shall provide that the designated state agency and
entities carrying out community rehabilitation programs in the state,
who are in receipt of assistance under this title shall take affirmative
action to employ and advance in employment qualified individuals with
disabilities covered under, and on the same terms and conditions as set
forth in, Section 503.

\(C\) Facilities

The state plan shall provide that facilities used in connection with the
delivery of services assisted under the state plan shall comply with the
act entitled "An Act to insure that certain buildings financed with
Federal funds are so designed and constructed as to be accessible to the
physically handicapped," approved on Aug. 12, 1968 (commonly known as
the "*Architectural Barriers Act of 1968*"), with Section 504, and with
the *Americans with Disabilities Act of 1990*.

\(7\) Comprehensive system of personnel development

The state plan shall---

\(A\) include a description (consistent with the purposes of this act)
of a comprehensive system of personnel development, which shall
include---

\(i\) a description of the procedures and activities the designated
state agency will undertake to ensure an adequate supply of qualified
state rehabilitation professionals and paraprofessionals for the
designated state unit, including the development and maintenance of a
system for determining, on an annual basis---

\(I\) the number and type of personnel that are employed by the
designated state unit in the provision of vocational rehabilitation
services, including ratios of qualified vocational rehabilitation
counselors to clients; and (II) the number and type of personnel needed
by the state, and a projection of the numbers of such personnel that
will be needed in five years, based on projections of the number of
individuals to be served, the number of such personnel who are expected
to retire or leave the vocational rehabilitation field, and other
relevant factors;

\(ii\) where appropriate, a description of the manner in which
activities will be undertaken under this section to coordinate the
system of personnel development with personnel development activities
under *the Individuals with Disabilities Education Act* (20 U.S.C. 1400
et seq.);

\(iii\) a description of the development and maintenance of a system of
determining, on an annual basis, information on the programs of
institutions of higher education within the state that are preparing
rehabilitation professionals, including---

\(I\) the numbers of students enrolled in such programs; and (II) the
number of such students who graduated with certification or licensure,
or with credentials to qualify for certification or licensure, as a
rehabilitation professional during the past year;

\(iv\) a description of the development, updating, and implementation of
a plan that---

\(I\) will address the current and projected vocational rehabilitation
services personnel training needs for the designated state unit; and

\(II\) provides for the coordination and facilitation of efforts between
the designated state unit, institutions of higher education and
professional associations to recruit, prepare and retain qualified
personnel, including personnel from minority backgrounds, and personnel
who are individuals with disabilities; and

\(v\) a description of the procedures and activities the designated
state agency will undertake to ensure that all personnel employed by the
designated state unit are appropriately and adequately trained and
prepared, including---

\(I\) a system for the continuing education of rehabilitation
professionals and paraprofessionals within the designated state unit,
particularly with respect to rehabilitation technology; and (II)
procedures for acquiring and disseminating to rehabilitation
professionals and paraprofessionals within the designated state unit
significant knowledge from research and other sources, including
procedures for providing training regarding the amendments to this act
made by the *Rehabilitation Act Amendments of 1998*;

\(B\) set forth policies and procedures relating to the establishment
and maintenance of standards to ensure that personnel, including
rehabilitation professionals and paraprofessionals, needed within the
designated state unit to carry out this part are appropriately and
adequately prepared and trained, including---

\(i\) the establishment and maintenance of standards that are consistent
with any national or state approved or recognized certification,
licensing, registration or other comparable requirements that apply to
the area in which such personnel are providing vocational rehabilitation
services; and

\(ii\) to the extent that such standards are not based on the highest
requirements in the state applicable to a specific profession or
discipline, the steps the state is taking to require the retraining or
hiring of personnel within the designated state unit that meet
appropriate professional requirements in the state; and

\(C\) contain provisions relating to the establishment and maintenance
of minimum standards to ensure the availability of personnel within the
designated state unit, to the maximum extent feasible, trained to
communicate in the native language or mode of communication of an
applicant or eligible individual.

\(8\) Comparable services and benefits

\(A\) Determination of availability (i) In general

The state plan shall include an assurance that, prior to providing any
vocational rehabilitation service to an eligible individual, except
those services specified in Paragraph (5)(D) and in Paragraphs (1)
through (4) and (14) of Section 103(a), the designated state unit will
determine whether comparable services and benefits are available under
any other program (other than a program carried out under this title)
unless such a determination would interrupt or delay---

\(I\) the progress of the individual toward achieving the employment
outcome identified in the individualized plan for employment of the
individual in accordance with Section 102(b); (II) an immediate job
placement; or (III) the provision of such service to any individual at
extreme medical risk.

\(ii\) Awards and scholarships

For purposes of clause (i), comparable benefits do not include awards
and scholarships based on merit.

\(B\) Interagency agreement

The state plan shall include an assurance that the governor of the
state, in consultation with the entity in the state responsible for the
vocational rehabilitation program and other appropriate agencies, will
ensure that an interagency agreement or other mechanism for interagency
coordination takes effect between any appropriate public entity,
including the state entity responsible for administering the state
medicaid program, a public institution of higher education and a
component of the statewide workforce investment system, and the
designated state unit, in order to ensure the provision of vocational
rehabilitation services described in Subparagraph (A) (other than those
services specified in Paragraph (5)(D), and in Paragraphs (1) through
(4) and (14) of Section 103(a)), that are included in the individualized
plan for employment of an eligible individual, including the provision
of such vocational rehabilitation services during the pendency of any
dispute described in clause (iii). Such agreement or mechanism shall
include the following:

\(i\) Agency financial responsibility

An identification of, or a description of a method for defining, the
financial responsibility of such public entity for providing such
services and a provision stating the financial responsibility of such
public entity for providing such services.

\(ii\) Conditions, terms and procedures of reimbursement

Information specifying the conditions, terms and procedures under which
a designated state unit shall be reimbursed by other public entities for
providing such services, based on the provisions of such agreement or
mechanism.

\(iii\) Interagency disputes

Information specifying procedures for resolving interagency disputes
under the agreement or other mechanism (including procedures under which
the designated state unit may initiate proceedings to secure
reimbursement from other public entities or otherwise implement the
provisions of the agreement or mechanism).

\(iv\) Coordination of services procedures

Information specifying policies and procedures for public entities to
determine and identify the interagency coordination responsibilities of
each public entity to promote the coordination and timely delivery of
vocational rehabilitation services (except those services specified in
Paragraph (5)(D) and in Paragraphs (1) through (4) and (14) of Section
103(a)).

\(C\) Responsibilities of other public entities

\(i\) Responsibilities under other law

Notwithstanding Subparagraph (B), if any public entity other than a
designated state unit is obligated under federal or state law, or
assigned responsibility under state policy or under this paragraph, to
provide or pay for any services that are also considered to be
vocational rehabilitation services (other than those specified in
Paragraph (5)(D) and in Paragraphs (1) through (4) and (14) of Section
103(a)), such public entity shall fulfill that obligation or
responsibility, either directly or by contract or other arrangement.

\(ii\) Reimbursement

If a public entity other than the designated state unit fails to provide
or pay for the services described in clause (i) for an eligible
individual, the designated state unit shall provide or pay for such
services to the individual. Such designated state unit may claim
reimbursement for the services from the public entity that failed to
provide or pay for such services. Such public entity shall reimburse the
designated state unit pursuant to the terms of the interagency agreement
or other mechanism described in this paragraph according to the
procedures established in such agreement or mechanism pursuant to
Subparagraph (B)(ii).

\(D\) Methods

The governor of a state may meet the requirements of Subparagraph (B)
through---

\(i\) a state statute or regulation;

\(ii\) a signed agreement between the respective officials of the public
entities that clearly identifies the responsibilities of each public
entity relating to the provision of services; or

\(iii\) another appropriate method, as determined by the designated
state unit.

\(9\) Individualized plan for employment

\(A\) Development and implementation

The state plan shall include an assurance that an individualized plan
for employment meeting the requirements of Section 102(b) will be
developed and implemented in a timely manner for an individual
subsequent to the determination of the eligibility of the individual for
services under this title, except that in a state operating under an
order of selection described in Paragraph (5), the plan will be
developed and implemented only for individuals meeting the order of
selection criteria of the state.

\(B\) Provision of services

The state plan shall include an assurance that such services will be
provided in accordance with the provisions of the individualized plan
for employment.

\(10\) Reporting requirements

\(A\) In general

The state plan shall include an assurance that the designated state
agency will submit reports in the form and level of detail and at the
time required by the commissioner regarding applicants for, and eligible
individuals receiving, services under this title.

\(B\) Annual reporting

In specifying the information to be submitted in the reports, the
commissioner shall require annual reporting on the eligible individuals
receiving the services, on those specific data elements described in
Section 136(d)(2) of the *Workforce Investment Act of 1998* that are
determined by the secretary to be relevant in assessing the performance
of designated state units in carrying out the vocational rehabilitation
program established under this title.

\(C\) Additional data

In specifying the information required to be submitted in the reports,
the commissioner shall require additional data with regard to applicants
and eligible individuals related to---

\(i\) the number of applicants and the number of individuals determined
to be eligible or ineligible for the program carried out under this
title, including---

\(I\) the number of individuals determined to be ineligible because they
did not require vocational rehabilitation services, as provided in
Section 102(a); and (II) the number of individuals determined, on the
basis of clear and convincing evidence, to be too severely disabled to
benefit in terms of an employment outcome from vocational rehabilitation
services;

\(ii\) the number of individuals who received vocational rehabilitation
services through the program, including---

\(I\) the number who received services under Paragraph (5)(D), but not
assistance under an individualized plan for employment; (II) of those
recipients who are individuals with significant disabilities, the number
who received assistance under an individualized plan for employment
consistent with Section 102(b); and (III) of those recipients who are
not individuals with significant disabilities, the number who received
assistance under an individualized plan for employment consistent with
Section 102(b);

\(iii\) of those applicants and eligible recipients who are individuals
with significant disabilities---

\(I\) the number who ended their participation in the program carried
out under this title and the number who achieved employment outcomes
after receiving vocational rehabilitation services; and (II) the number
who ended their participation in the program and who were employed six
months and 12 months after securing or regaining employment, or, in the
case of individuals whose employment outcome was to retain or advance in
employment, who were employed six months and 12 months after achieving
their employment outcome, including--- (aa) the number who earned the
minimum wage rate specified in Section 6(a)(1) of the *Fair Labor
Standards Act of 1938* (29 U.S.C. 206(a)(1)) or another wage level set
by the commissioner, during such employment; and (bb) the number who
received employment benefits from an employer during such employment;
and

\(iv\) of those applicants and eligible recipients who are not
individuals with significant disabilities---

\(I\) the number who ended their participation in the program carried
out under this title and the number who achieved employment outcomes
after receiving vocational rehabilitation services; and

\(II\) the number who ended their participation in the program and who
were employed six months and 12 months after securing or regaining
employment, or, in the case of individuals whose employment outcome was
to retain or advance in employment, who were employed six months and 12
months after achieving their employment outcome, including--- (aa) the
number who earned the minimum wage rate specified in Section 6(a)(1) of
the *Fair Labor Standards Act of 1938* (29 U.S.C. 206(a)(1)) or another
wage level set by the commissioner, during such employment; and (bb) the
number who received employment benefits from an employer during such
employment.

\(D\) Costs and results

The commissioner shall also require that the designated state agency
include in the reports information on---

\(i\) the costs under this title of conducting administration, providing
assessment services, counseling and guidance and other direct services
provided by designated state agency staff, providing services purchased
under individualized plans for employment, supporting small business
enterprises, establishing, developing, and improving community
rehabilitation programs, providing other services to groups and
facilitating use of other programs under this act and Title I of the
*Workforce Investment Act of 1998* by eligible individuals; and

\(ii\) the results of annual evaluation by the state of program
effectiveness under Paragraph (15)(E).

\(E\) Additional information

The commissioner shall require that each designated state unit include
in the reports additional information related to the applicants and
eligible individuals, obtained either through a complete count or
sampling, including---

\(i\) information on---

\(I\) age, gender, race, ethnicity, education, category of impairment,
severity of disability and whether the individuals are students with
disabilities; (II) dates of application, determination of eligibility or
ineligibility, initiation of the individualized plan for employment and
termination of participation in the program; (III) earnings at the time
of application for the program and termination of participation in the
program; (IV) work status and occupation; (V) types of services,
including assistive technology services and assistive technology
devices, provided under the program; (VI) types of public or private
programs or agencies that furnished services under the program; and
(VII) the reasons for individuals terminating participation in the
program without achieving an employment outcome; and

\(ii\) information necessary to determine the success of the state in
meeting---

\(I\) the state performance measures established under Section 136(b) of
the *Workforce Investment Act of 1998*, to the extent the measures are
applicable to individuals with disabilities; and (II) the standards and
indicators established pursuant to Section 106.

\(F\) Completeness and confidentiality

The state plan shall include an assurance that the information submitted
in the reports will include a complete count, except as provided in
Subparagraph (E), of the applicants and eligible individuals, in a
manner permitting the greatest possible cross-classification of data and
that the identity of each individual for which information is supplied
under this paragraph will be kept confidential.

\(11\) Cooperation, collaboration and coordination

\(A\) Cooperative agreements with other components of statewide
workforce investment systems

The state plan shall provide that the designated state unit or
designated state agency shall enter into a cooperative agreement with
other entities that are components of the statewide workforce investment
system of the state, regarding the system, which agreement may provide
for---

\(i\) provision of intercomponent staff training and technical
assistance with regard to---

\(I\) the availability and benefits of, and information on eligibility
standards for, vocational rehabilitation services; and (II) the
promotion of equal, effective and meaningful participation by
individuals with disabilities in workforce investment activities in the
state through the promotion of program accessibility, the use of
nondiscriminatory policies and procedures and the provision of
reasonable accommodations, auxiliary aids and services and
rehabilitation technology, for individuals with disabilities;

\(ii\) use of information and financial management systems that link all
components of the statewide workforce investment system, that link the
components to other electronic networks, including nonvisual electronic
networks, and that relate to such subjects as employment statistics, and
information on job vacancies, career planning and workforce investment
activities;

\(iii\) use of customer service features such as common intake and
referral procedures, customer databases, resource information and human
services hotlines;

\(iv\) establishment of cooperative efforts with employers to---

\(I\) facilitate job placement; and (II) carry out any other activities
that the designated state unit and the employers determine to be
appropriate;

\(v\) identification of staff roles, responsibilities and available
resources, and specification of the financial responsibility of each
component of the statewide workforce investment system with regard to
paying for necessary services (consistent with state law and federal
requirements); and

\(vi\) specification of procedures for resolving disputes among such
components.

\(B\) Replication of cooperative agreements

The state plan shall provide for the replication of such cooperative
agreements at the local level between individual offices of the
designated state unit and local entities carrying out activities through
the statewide workforce investment system.

\(C\) Interagency cooperation with other agencies

The state plan shall include descriptions of interagency cooperation
with, and utilization of the services and facilities of, federal, state
and local agencies and programs, including programs carried out by the
under secretary for rural development of the U.S. Department of
Agriculture and state use contracting programs, to the extent that such
agencies and programs are not carrying out activities through the
statewide workforce investment system.

\(D\) Coordination with education officials

The state plan shall contain plans, policies and procedures for
coordination between the designated state agency and education officials
responsible for the public education of students with disabilities, that
are designed to facilitate the transition of the students with
disabilities from the receipt of educational services in school to the
receipt of vocational rehabilitation services under this title,
including information on a formal interagency agreement with the state
education agency that, at a minimum, provides for---

\(i\) consultation and technical assistance to assist educational
agencies in planning for the transition of students with disabilities
from school to post-school activities, including vocational
rehabilitation services;

\(ii\) transition planning by personnel of the designated state agency
and educational agency personnel for students with disabilities that
facilitates the development and completion of their individualized
education programs under Section 614(d) of the *Individuals with
Disabilities Education Act* (as added by Section 101 of Public Law
105-17);

\(iii\) the roles and responsibilities, including financial
responsibilities, of each agency, including provisions for determining
state lead agencies and qualified personnel responsible for transition
services; and

\(iv\) procedures for outreach to and identification of students with
disabilities who need the transition services.

\(E\) Coordination with statewide independent living councils and
independent living centers

The state plan shall include an assurance that the designated state
unit, the Statewide Independent Living Council established under Section
705, and the independent living centers described in Part C of title VII
within the state have developed working relationships and coordinate
their activities.

\(F\) Cooperative agreement with recipients of grants for services to
American Indians

In applicable cases, the state plan shall include an assurance that the
state has entered into a formal cooperative agreement with each grant
recipient in the state that receives funds under Part C. The agreement
shall describe strategies for collaboration and coordination in
providing vocational rehabilitation services to American Indians who are
individuals with disabilities, including---

\(i\) strategies for interagency referral and information sharing that
will assist in eligibility determinations and the development of
individualized plans for employment;

\(ii\) procedures for ensuring that American Indians who are individuals
with disabilities and are living near a reservation or tribal service
area are provided vocational rehabilitation services; and

\(iii\) provisions for sharing resources in cooperative studies and
assessments, joint training activities, and other collaborative
activities designed to improve the provision of services to American
Indians who are individuals with disabilities.

\(12\) Residency

The state plan shall include an assurance that the state will not impose
a residence requirement that excludes from services provided under the
plan any individual who is present in the state.

\(13\) Services to American Indians

The state plan shall include an assurance that, except as otherwise
provided in Part C, the designated state agency will provide vocational
rehabilitation services to American Indians who are individuals with
disabilities residing in the state to the same extent as the designated
state agency provides such services to other significant populations of
individuals with disabilities residing in the state.

\(14\) Annual review of individuals in extended employment or other
employment under special certificate provisions of the *Fair Labor
Standards Act of 1938*

The state plan shall provide for---

\(A\) an annual review and reevaluation of the status of each individual
with a disability served under this title who has achieved an employment
outcome either in an extended employment setting in a community
rehabilitation program or any other employment under Section 14(c) of
the *Fair Labor Standards Act of 1938* (29 U.S.C. 214(c)) for two years
after the achievement of the outcome (and thereafter if requested by the
individual or, if appropriate, the individual\'s representative), to
determine the interests, priorities and needs of the individual with
respect to competitive employment or training for competitive
employment;

\(B\) input into the review and reevaluation, and a signed
acknowledgment that such review and reevaluation have been conducted, by
the individual with a disability, or, if appropriate, the individual\'s
representative; and

\(C\) maximum efforts, including the identification and provision of
vocational rehabilitation services, reasonable accommodations, and other
necessary support services, to assist the individuals described in
subparagraph (A) in engaging in competitive employment.

\(15\) Annual state goals and reports of progress

\(A\) Assessments and estimates

The state plan shall---

\(i\) include the results of a comprehensive, statewide assessment,
jointly conducted by the designated state unit and the State
Rehabilitation Council (if the state has such a council) every three
years, describing the rehabilitation needs of individuals with
disabilities residing within the state, particularly the vocational
rehabilitation services needs of---

\(I\) individuals with the most significant disabilities, including
their need for supported employment services;

\(II\) individuals with disabilities who are minorities and individuals
with disabilities who have been unserved or underserved by the
vocational rehabilitation program carried out under this title; and
(III) individuals with disabilities served through other components of
the statewide workforce investment system (other than the vocational
rehabilitation program), as identified by such individuals and personnel
assisting such individuals through the components;

\(ii\) include an assessment of the need to establish, develop, or
improve community rehabilitation programs within the state; and

\(iii\) provide that the state shall submit to the commissioner a report
containing information regarding updates to the assessments, for any
year in which the state updates the assessments.

\(B\) Annual estimates

The state plan shall include, and shall provide that the state shall
annually submit a report to the commissioner that includes, state
estimates of---

\(i\) the number of individuals in the state who are eligible for
services under this title;

\(ii\) the number of such individuals who will receive services provided
with funds provided under Part B and under Part B of Title VI,
including, if the designated state agency uses an order of selection in
accordance with Paragraph (5), estimates of the number of individuals to
be served under each priority category within the order; and

\(iii\) the costs of the services described in clause (i), including, if
the designated state agency uses an order of selection in accordance
with Paragraph (5), the service costs for each priority category within
the order.

\(C\) Goals and priorities

\(i\) In general

The state plan shall identify the goals and priorities of the state in
carrying out the program. The goals and priorities shall be jointly
developed, agreed to, and reviewed annually by the designated state unit
and the State Rehabilitation Council, if the state has such a council.
Any revisions to the goals and priorities shall be jointly agreed to by
the designated state unit and the State Rehabilitation Council, if the
state has such a council. The state plan shall provide that the state
shall submit to the commissioner a report containing information
regarding revisions in the goals and priorities, for any year in which
the state revises the goals and priorities.

\(ii\) Basis

The state goals and priorities shall be based on an analysis of---

\(I\) the comprehensive assessment described in Subparagraph (A),
including any updates to the assessment; (II) the performance of the
state on the standards and indicators established under Section 106; and
(III) other available information on the operation and the effectiveness
of the vocational rehabilitation program carried out in the state,
including any reports received from the State Rehabilitation Council,
under Section 105(c) and the findings and recommendations from
monitoring activities conducted under Section 107.

\(iii\) Service and outcome goals for categories in order of selection

If the designated state agency uses an order of selection in accordance
with Paragraph

(5), the state shall also identify in the state plan service and outcome
goals and the time within which these goals may be achieved for
individuals in each priority category within the order.

\(D\) Strategies

The state plan shall contain a description of the strategies the state
will use to address the needs identified in the assessment conducted
under Subparagraph (A) and achieve the goals and priorities identified
in Subparagraph (C), including---

\(i\) the methods to be used to expand and improve services to
individuals with disabilities, including how a broad range of assistive
technology services and assistive technology devices will be provided to
such individuals at each stage of the rehabilitation process and how
such services and devices will be provided to such individuals on a
statewide basis;

\(ii\) outreach procedures to identify and serve individuals with
disabilities who are minorities and individuals with disabilities who
have been unserved or underserved by the vocational rehabilitation
program;

\(iii\) where necessary, the plan of the state for establishing,
developing, or improving community rehabilitation programs;

\(iv\) strategies to improve the performance of the state with respect
to the evaluation standards and performance indicators established
pursuant to Section 106; and

\(v\) strategies for assisting entities carrying out other components of
the statewide workforce investment system (other than the vocational
rehabilitation program) in assisting individuals with disabilities.

\(E\) Evaluation and reports of progress

The state plan shall---

\(i\) include the results of an evaluation of the effectiveness of the
vocational rehabilitation program, and a joint report by the designated
state unit and the State Rehabilitation Council, if the state has such a
council, to the commissioner on the progress made in improving the
effectiveness from the previous year, which evaluation and report shall
include---

\(I\) an evaluation of the extent to which the goals identified in
Subparagraph (C) were achieved; (II) a description of strategies that
contributed to achieving the goals; (III) to the extent to which the
goals were not achieved, a description of the factors that impeded that
achievement; and (IV) an assessment of the performance of the state on
the standards and indicators established pursuant to Section 106; and

\(ii\) provide that the designated state unit and the State
Rehabilitation Council, if the state has such a council, shall jointly
submit to the commissioner an annual report that contains the
information described in clause (i).

\(16\) Public comment

The state plan shall---

\(A\) provide that the designated state agency, prior to the adoption of
any policies or procedures governing the provision of vocational
rehabilitation services under the state plan (including making any
amendment to such policies and procedures), shall conduct public
meetings throughout the state, after providing adequate notice of the
meetings, to provide the public, including individuals with
disabilities, an opportunity to comment on the policies or procedures,
and actively consult with the director of the client assistance program
carried out under Section 112, and, as appropriate, Indian tribes,
tribal organizations, and Native Hawaiian organizations on the policies
or procedures; and

\(B\) provide that the designated state agency (or each designated state
agency if two agencies are designated) and any sole agency administering
the plan in a political subdivision of the state, shall take into
account, in connection with matters of general policy arising in the
administration of the plan, the views of---

\(i\) individuals and groups of individuals who are recipients of
vocational rehabilitation services, or in appropriate cases, the
individuals\' representatives;

\(ii\) personnel working in programs that provide vocational
rehabilitation services to individuals with disabilities;

\(iii\) providers of vocational rehabilitation services to individuals
with disabilities;

\(iv\) the director of the client assistance program; and

\(v\) the State Rehabilitation Council, if the state has such a council.

\(17\) Use of funds for construction of facilities

The state plan shall provide that if, under special circumstances, the
state plan includes provisions for the construction of facilities for
community rehabilitation programs---

\(A\) the federal share of the cost of construction for the facilities
for a fiscal year will not exceed an amount equal to 10 percent of the
state\'s allotment under Section 110 for such year;

\(B\) the provisions of Section 306 (as in effect on the day before the
date of enactment of the *Rehabilitation Act Amendments of 1998*) shall
be applicable to such construction and such provisions shall be deemed
to apply to such construction; and

\(C\) there shall be compliance with regulations the commissioner shall
prescribe designed to assure that no state will reduce its efforts in
providing other vocational rehabilitation services (other than for the
establishment of facilities for community rehabilitation programs)
because the plan includes such provisions for construction.

\(18\) Innovation and expansion activities

The state plan shall---

\(A\) include an assurance that the state will reserve and use a portion
of the funds allotted to the state under Section 110---

\(i\) for the development and implementation of innovative approaches to
expand and improve the provision of vocational rehabilitation services
to individuals with disabilities under this title, particularly
individuals with the most significant disabilities, consistent with the
findings of the statewide assessment and goals and priorities of the
state as described in Paragraph (15); and

\(ii\) to support the funding of---

\(I\) the State Rehabilitation Council, if the state has such a council,
consistent with the plan prepared under Section 105(d)(1); and

\(II\) the Statewide Independent Living Council, consistent with the
plan prepared under Section 705(e)(1);

\(B\) include a description of how the reserved funds will be utilized;
and

\(C\) provide that the state shall submit to the commissioner an annual
report containing a description of how the reserved funds were utilized
during the preceding year.

\(19\) Choice

The state plan shall include an assurance that applicants and eligible
individuals or, as appropriate, the applicants\' representatives or
individuals\' representatives, will be provided information and support
services to assist the applicants and individuals in exercising informed
choice throughout the rehabilitation process, consistent with the
provisions of Section 102(d).

\(20\) Information and referral services

\(A\) In general

The state plan shall include an assurance that the designated state
agency will implement an information and referral system adequate to
ensure that individuals with disabilities will be provided accurate
vocational rehabilitation information and guidance, using appropriate
modes of communication, to assist such individuals in preparing for,
securing, retaining or regaining employment, and will be appropriately
referred to federal and state programs (other than the vocational
rehabilitation program carried out under this title), including other
components of the statewide workforce investment system in the state.

\(B\) Referrals

An appropriate referral made through the system shall---

\(i\) be to the federal or state programs, including programs carried
out by other components of the statewide workforce investment system in
the state, best suited to address the specific employment needs of an
individual with a disability; and

\(ii\) include, for each of these programs, provision to the individual
of---

\(I\) a notice of the referral by the designated state agency to the
agency carrying out the program; (II) information identifying a specific
point of contact within the agency carrying out the program; and (III)
information and advice regarding the most suitable services to assist
the individual to prepare for, secure, retain or regain employment.

\(21\) State independent consumer-controlled commission; State
Rehabilitation Council

\(A\) Commission or council

The state plan shall provide that either---

\(i\) the designated state agency is an independent commission that---

\(I\) is responsible under state law for operating, or overseeing the
operation of, the vocational rehabilitation program in the state; (II)
is consumer-controlled by persons who--- (aa) are individuals with
physical or mental impairments that substantially limit major life
activities; and (bb) represent individuals with a broad range of
disabilities, unless the designated state unit under the direction of
the commission is the state agency for individuals who are blind; (III)
includes family members, advocates or other representatives, of
individuals with mental impairments; and (IV) undertakes the functions
set forth in Section 105(c)(4); or

\(ii\) the state has established a State Rehabilitation Council that
meets the criteria set forth in Section 105 and the designated state
unit---

\(I\) in accordance with Paragraph (15), jointly develops, agrees to,
and reviews annually state goals and priorities, and jointly submits
annual reports of progress with the council; (II) regularly consults
with the council regarding the development, implementation and revision
of state policies and procedures of general applicability pertaining to
the provision of vocational rehabilitation services; (III) includes in
the state plan and in any revision to the state plan, a summary of input
provided by the council, including recommendations from the annual
report of the council described in Section 105(c)(5), the review and
analysis of consumer satisfaction described in Section 105(c)(4), and
other reports prepared by the council, and the response of the
designated state unit to such input and recommendations, including
explanations for rejecting any input or recommendation; and (IV)
transmits to the council--- (aa) all plans, reports and other
information required under this title to be submitted to the secretary;
(bb) all policies, and information on all practices and procedures, of
general applicability provided to or used by rehabilitation personnel in
carrying out this title; and (cc) copies of due process hearing
decisions issued under this title, which shall be transmitted in such a
manner as to ensure that the identity of the participants in the
hearings is kept confidential.

\(B\) More than one designated state agency

In the case of a state that, under Section 101(a)(2), designates a state
agency to administer the part of the state plan under which vocational
rehabilitation services are provided for individuals who are blind (or
to supervise the administration of such part by a local agency) and
designates a separate state agency to administer the rest of the state
plan, the state shall either establish a State Rehabilitation Council
for each of the two agencies that does not meet the requirements in
Subparagraph (A)(i), or establish one State Rehabilitation Council for
both agencies if neither agency meets the requirements of Subparagraph
(A)(i).

\(22\) Supported employment state plan supplement

The state plan shall include an assurance that the state has an
acceptable plan for carrying out Part B of title VI, including the use
of funds under that part to supplement funds made available under Part B
of this title to pay for the cost of services leading to supported
employment.

\(23\) Annual updates

The plan shall include an assurance that the state will submit to the
commissioner reports containing annual updates of the information
required under Paragraph (7) (relating to a comprehensive system of
personnel development) and any other updates of the information required
under this section that are requested by the commissioner, and annual
reports as provided in Paragraphs (15) (relating to assessments,
estimates, goals and priorities and reports of progress) and (18)
(relating to innovation and expansion), at such time and in such manner
as the secretary may determine to be appropriate.

\(24\) Certain contracts and cooperative agreements

\(A\) Contracts with for-profit organizations

The state plan shall provide that the designated state agency has the
authority to enter into contracts with for-profit organizations for the
purpose of providing, as vocational rehabilitation services, on-the-job
training and related programs for individuals with disabilities under
Part A of Title VI, upon a determination by such agency that such
for-profit organizations are better qualified to provide such
rehabilitation services than nonprofit agencies and organizations.

\(B\) Cooperative agreements with private nonprofit organizations

The state plan shall describe the manner in which cooperative agreements
with private nonprofit vocational rehabilitation service providers will
be established.

\(b\) Approval; Disapproval of the state plan

\(1\) Approval

The commissioner shall approve any plan that the commissioner finds
fulfills the conditions specified in this section, and shall disapprove
any plan that does not fulfill such conditions.

\(2\) Disapproval

Prior to disapproval of the state plan, the commissioner shall notify
the state of the intention to disapprove the plan and shall afford the
state reasonable notice and opportunity for a hearing.

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