> **Findings; Purpose; Policy**

**Sec. 2. (a)** **Findings**

Congress finds that‑‑

**(1)** millions of Americans have one or more physical or mental
disabilities and the number of Americans with such disabilities is
increasing;

**(2)** individuals with disabilities constitute one of the most
disadvantaged groups in society;

**(3)** disability is a natural part of the human experience and in no
way diminishes the right of individuals to‑‑

**(A)** live independently;

**(B)** enjoy self‑determination;

**(C)** make choices;

**(D)** contribute to society;

**(E)** pursue meaningful careers; and

**(F)** enjoy full inclusion and integration in the economic, political,
social, cultural, and educational mainstream of American society;

**(4)** increased employment of individuals with disabilities can be
achieved through implementation of statewide workforce investment
systems under title I of the Workforce Investment Act of 1998 that
provide meaningful and effective participation for individuals with
disabilities in workforce investment activities and activities carried
out under the vocational rehabilitation program established under title
I, and through the provision of independent living services, support
services, and meaningful opportunities for employment in integrated work
settings through the provision of reasonable accommodations;

**(5)** individuals with disabilities continually encounter various
forms of discrimination in such critical areas as employment, housing,
public accommodations, education, transportation, communication,
recreation, institutionalization, health services, voting, and public
services; and

**(6)** the goals of the Nation properly include the goal of providing
individuals with disabilities with the tools necessary to‑‑

**(A)** make informed choices and decisions; and

**(B)** achieve equality of opportunity, full inclusion and integration
in society, employment, independent living, and economic and social
self‑sufficiency, for such individuals.

**(b)** **Purpose**

The purposes of this Act are‑‑

**(1)** to empower individuals with disabilities to maximize employment,
economic self‑sufficiency, independence, and inclusion and integration
into society, through‑‑

**(A)** statewide workforce investment systems implemented in accordance
with title I of the Workforce Investment Act of 1998 that include, as
integral components, comprehensive and coordinated state‑of‑the‑art
programs of vocational rehabilitation;

**(B)** independent living centers and services;

**(C)** research;

**(D)** training;

**(E)** demonstration projects; and

**(F)** the guarantee of equal opportunity; and

**(2)** to ensure that the Federal Government plays a leadership role in
promoting the employment of individuals with disabilities, especially
individuals with significant disabilities, and in assisting States and
providers of services in fulfilling the aspirations of such individuals
with disabilities for meaningful and gainful employment and independent
living.

**(c)** **Policy**

It is the policy of the United States that all programs, projects, and
activities receiving assistance under this Act shall be carried out in a
manner consistent with the principles of‑‑

**(1)** respect for individual dignity, personal responsibility,
self‑determination, and pursuit of meaningful careers, based on informed
choice, of individuals with disabilities;

**(2)** respect for the privacy, rights, and equal access (including the
use of accessible formats), of the individuals;

**(3)** inclusion, integration, and full participation of the
individuals;

**(4)** support for the involvement of an individual\'s representative
if an individual with a disability requests, desires, or needs such
support; and

**(5)** support for individual and systemic advocacy and community
involvement.

**Rehabilitation Services Administration**

**Sec. 3. (a)** There is established in the Office of the Secretary a
Rehabilitation Services Administration which shall be headed by a
Commissioner (hereinafter in this Act referred to as the
\"Commissioner\") appointed by the President by and with the advice and
consent of the Senate. Except for titles IV and V and as otherwise
specifically provided in this Act, such Administration shall be the
principal agency, and the Commissioner shall be the principal officer,
of such Department for carrying out this Act. The Commissioner shall be
an individual with substantial experience in rehabilitation and in
rehabilitation program management. In the performance of the functions
of the office, the Commissioner shall be directly responsible to the
Secretary or to the Under Secretary or an appropriate Assistant
Secretary of such Department, as designated by the Secretary. The
functions of the Commissioner shall not be delegated to any officer not
directly responsible, both with respect to program operation and
administration, to the Commissioner. Any reference in this Act to duties
to be carried out by the Commissioner shall be considered to be a
reference to duties to be carried out by the Secretary acting through
the Commissioner. In carrying out any of the functions of the office
under this Act, the Commissioner shall be guided by general policies of
the National Council on Disability established under title IV of this
Act.

**(b)** The Secretary shall take whatever action is necessary to ensure
that funds appropriated pursuant to this Act are expended only for the
programs, personnel, and administration of programs carried out under
this Act.

**Advance Funding**

**Sec. 4. (a)** For the purpose of affording adequate notice of funding
available under this Act, appropriations under this Act are authorized
to be included in the appropriation Act for the fiscal year preceding
the fiscal year for which they are available for obligation.

**(b)** In order to effect a transition to the advance funding method of
timing appropriation action, the authority provided by subsection (a) of
this section shall apply notwithstanding that its initial application
will result in the enactment in the same year (whether in the same
appropriation Act or otherwise) of two separate appropriations, one for
the then current fiscal year and one for the succeeding fiscal year.

**Joint Funding**

**Sec. 5.** Pursuant to regulations prescribed by the President, and to
the extent consistent with the other provisions of this Act, where funds
are provided for a single project by more than one Federal agency to an
agency or organization assisted under this Act, the Federal agency
principally involved may be designated to act for all in administering
the funds provided, and, in such cases, a single non‑Federal share
requirement may be established according to the proportion of funds
advanced by each agency. When the principal agency involved is the
Rehabilitation Services Administration, it may waive any grant or
contract requirement (as defined by such regulations) under or pursuant
to any law other than this Act, which requirement is inconsistent with
the similar requirements of the administering agency under or pursuant
to this Act.

**Definitions**

**Sec. 7.** For the purposes of this Act:

**(1)** **Administrative costs**

The term \"administrative costs\" means expenditures incurred in the
performance of administrative functions under the vocational
rehabilitation program carried out under title I, including expenses
related to program planning, development, monitoring, and evaluation,
including expenses for‑‑

**(A)** quality assurance;

**(B)** budgeting, accounting, financial management, information
systems, and related data processing;

**(C)** providing information about the program to the public;

**(D)** technical assistance and support services to other State
agencies, private nonprofit organizations, and businesses and
industries, except for technical assistance and support services
described in section 103(b)(5);

**(E)** the State Rehabilitation Council and other advisory committees;

**(F)** professional organization membership dues for designated State
unit employees;

**(G)** the removal of architectural barriers in State vocational
rehabilitation agency offices and State operated rehabilitation
facilities;

**(H)** operating and maintaining designated State unit facilities,
equipment, and grounds;

**(I)** supplies;

**(J)** administration of the comprehensive system of personnel
development described in section 101(a)(7), including personnel
administration, administration of affirmative action plans, and training
and staff development;

**(K)** administrative salaries, including clerical and other support
staff salaries, in support of these administrative functions;

**(L)** travel costs related to carrying out the program, other than
travel costs related to the provision of services;

**(M)** costs incurred in conducting reviews of rehabilitation counselor
or coordinator determinations under section 102(c); and

**(N)** legal expenses required in the administration of the program.

**(2)** **Assessment for determining eligibility and vocational
rehabilitation needs**

The term \"assessment for determining eligibility and vocational
rehabilitation needs\" means, as appropriate in each case‑‑

**(A)(i)** a review of existing data‑‑

**(I)** to determine whether an individual is eligible for vocational
rehabilitation services; and

**(II)** to assign priority for an order of selection described in
section 101(a)(5)(A) in the States that use an order of selection
pursuant to section 101(a)(5)(A); and

**(ii)** to the extent necessary, the provision of appropriate
assessment activities to obtain necessary additional data to make such
determination and assignment;

**(B)** to the extent additional data is necessary to make a
determination of the employment outcomes, and the nature and scope of
vocational rehabilitation services, to be included in the individualized
plan for employment of an eligible individual, a comprehensive
assessment to determine the unique strengths, resources, priorities,
concerns, abilities, capabilities, interests, and informed choice,
including the need for supported employment, of the eligible individual,
which comprehensive assessment‑‑

**(i)** is limited to information that is necessary to identify the
rehabilitation needs of the individual and to develop the individualized
plan for employment of the eligible individual;

**(ii)** uses, as a primary source of such information, to the maximum
extent possible and appropriate and in accordance with confidentiality
requirements---

**(I)** existing information obtained for the purposes of determining
the eligibility of the individual and assigning priority for an order of
selection described in section 101(a)(5)(A) for the individual; and

**(II)** such information as can be provided by the individual and,
where appropriate, by the family of the individual;

**(iii)** may include, to the degree needed to make such a
determination, an assessment of the personality, interests,
interpersonal skills, intelligence and related functional capacities,
educational achievements, work experience, vocational aptitudes,
personal and social adjustments, and employment opportunities of the
individual, and the medical, psychiatric, psychological, and other
pertinent vocational, educational, cultural, social, recreational, and
environmental factors, that affect the employment and rehabilitation
needs of the individual; and

**(iv)** may include, to the degree needed, an appraisal of the patterns
of work behavior of the individual and services needed for the
individual to acquire occupational skills, and to develop work
attitudes, work habits, work tolerance, and social and behavior patterns
necessary for successful job performance, including the utilization of
work in real job situations to assess and develop the capacities of the
individual to perform adequately in a work environment;

**(C)** referral, for the provision of rehabilitation technology
services to the individual, to assess and develop the capacities of the
individual to perform in a work environment; and

**(D)** an exploration of the individual\'s abilities, capabilities, and
capacity to perform in work situations, which shall be assessed
periodically during trial work experiences, including experiences in
which the individual is provided appropriate supports and training.

**(3)** **Assistive technology device**

The term \"assistive technology device\" has the meaning given such term
in section 3 of the Assistive Technology Act of 1998, except that the
reference in such section to the term \"individuals with disabilities\"
shall be deemed to mean more than one individual with a disability as
defined in paragraph (20)(A).

**(4)** **Assistive technology service**

The term \"assistive technology service\" has the meaning given such
term in section 3 of the Assistive Technology Act of 1998, except that
the reference in such section‑‑

**(A)** to the term \"individual with a disability\" shall be deemed to
mean an individual with a disability, as defined in paragraph (20)(A);
and

**(B)** to the term \"individuals with disabilities\" shall be deemed to
mean more than one such individual.

**(5)** **Community rehabilitation program**

The term \"community rehabilitation program\" means a program that
provides directly or facilitates the provision of vocational
rehabilitation services to individuals with disabilities, and that
provides, singly or in combination, for an individual with a disability
to enable the individual to maximize opportunities for employment,
including career advancement‑‑

**(A)** medical, psychiatric, psychological, social, and vocational
services that are provided under one management;

**(B)** testing, fitting, or training in the use of prosthetic and
orthotic devices;

**(C)** recreational therapy;

**(D)** physical and occupational therapy;

**(E)** speech, language, and hearing therapy;

**(F)** psychiatric, psychological, and social services, including
positive behavior management;

**(G)** assessment for determining eligibility and vocational
rehabilitation needs;

**(H)** rehabilitation technology;

**(I)** job development, placement, and retention services;

**(J)** evaluation or control of specific disabilities;

**(K)** orientation and mobility services for individuals who are blind;

**(L)** extended employment;

**(M)** psychosocial rehabilitation services;

**(N)** supported employment services and extended services;

**(O)** services to family members when necessary to the vocational
rehabilitation of the individual;

**(P)** personal assistance services; or

**(Q)** services similar to the services described in one of
subparagraphs (A) through (P).

**(6)** **Construction; cost of construction**

**(A)** **Construction**

The term \"construction\" means‑‑

**(i)** the construction of new buildings;

**(ii)** the acquisition, expansion, remodeling, alteration, and
renovation of existing buildings; and

**(iii)** initial equipment of buildings described in clauses (i) and
(ii).

**(B)** **Cost of construction**

The term \"cost of construction\" includes architects\' fees and the
cost of acquisition of land in connection with construction but does not
include the cost of offsite improvements.

**(8)** **Designated state agency; designated state unit**

**(A)** **Designated state agency**

The term \"designated State agency\" means an agency designated under
section 101(a)(2)(A).

**(B)** **Designated state unit**

The term \"designated State unit\" means‑‑

**(i)** any State agency unit required under section 101(a)(2)(B)(ii);
or

**(ii)** in cases in which no such unit is so required, the State agency
described in section 101(a)(2)(B)(i).

**(9)** **Disability**

The term \"disability\" means‑‑

**(A)** except as otherwise provided in subparagraph (B), a physical or
mental impairment that constitutes or results in a substantial
impediment to employment; or

**(B)** for purposes of sections 2, 14, and 15, and titles II, IV, V,
and VII, a physical or mental impairment that substantially limits one
or more major life activities.

**(10)** **Drug and illegal use of drugs**

**(A)** **Drug**

The term \"drug\" means a controlled substance, as defined in schedules
I through V of section 202 of the Controlled Substances Act (21 U.S.C.
812).

**(B)** **Illegal use of drugs**

The term \"illegal use of drugs\" means the use of drugs, the possession
or distribution of which is unlawful under the Controlled Substances
Act. Such term does not include the use of a drug taken under
supervision by a licensed health care professional, or other uses
authorized by the Controlled Substances Act or other provisions of
Federal law.

**(11)** **Employment outcome**

The term \"employment outcome\" means, with respect to an individual‑‑

**(A)** entering or retaining full‑time or, if appropriate, part‑time
competitive employment in the integrated labor market;

**(B)** satisfying the vocational outcome of supported employment; or

**(C)** satisfying any other vocational outcome the Secretary may
determine to be appropriate (including satisfying the vocational outcome
of self‑employment, telecommuting, or business ownership), in a manner
consistent with this Act.

**(12)** **Establishment of a community rehabilitation program**

The term \"establishment of a community rehabilitation program\"
includes the acquisition, expansion, remodeling, or alteration of
existing buildings necessary to adapt them to community rehabilitation
program purposes or to increase their effectiveness for such purposes
(subject, however, to such limitations as the Secretary may determine,
in accordance with regulations the Secretary shall prescribe, in order
to prevent impairment of the objectives of, or duplication of, other
Federal laws providing Federal assistance in the construction of
facilities for community rehabilitation programs), and may include such
additional equipment and staffing as the Commissioner considers
appropriate.

**(13)** **Extended services**

The term \"extended services\" means ongoing support services and other
appropriate services, needed to support and maintain an individual with
a most significant disability in supported employment, that‑‑

**(A)** are provided singly or in combination and are organized and made
available in such a way as to assist an eligible individual in
maintaining supported employment;

**(B)** are based on a determination of the needs of an eligible
individual, as specified in an individualized plan for employment; and

**(C)** are provided by a State agency, a nonprofit private
organization, employer, or any other appropriate resource, after an
individual has made the transition from support provided by the
designated State unit.

**(14)** **Federal share**

**(A)** **In general**

Subject to subparagraph (B), the term \"Federal share\" means 78.7
percent.

**(B)** **Exception**

The term \"Federal share\" means the share specifically set forth in
section 111(a)(3), except that with respect to payments pursuant to part
B of title I to any State that are used to meet the costs of
construction of those rehabilitation facilities identified in section
103(b)(2) in such State, the Federal share shall be the percentages
determined in accordance with the provisions of section 111(a)(3)
applicable with respect to the State.

**(C)** **Relationship to expenditures by a political subdivision**

For the purpose of determining the non‑Federal share with respect to a
State, expenditures by a political subdivision thereof or by a local
agency shall be regarded as expenditures by such State, subject to such
limitations and conditions as the Secretary shall by regulation
prescribe.

**(15)** **Governor**

The term \"Governor\" means a chief executive officer of a State.

**(16)** **Impartial hearing officer**

**(A)** **In general**

The term \"impartial hearing officer\" means an individual‑‑

**(i)** who is not an employee of a public agency (other than an
administrative law judge, hearing examiner, or employee of an
institution of higher education);

**(ii)** who is not a member of the State Rehabilitation Council
described in section 105;

**(iii)** who has not been involved previously in the vocational
rehabilitation of the applicant or eligible individual;

**(iv)** who has knowledge of the delivery of vocational rehabilitation
services, the State plan under section 101, and the Federal and State
rules governing the provision of such services and training with respect
to the performance of official duties; and

**(v)** who has no personal or financial interest that would be in
conflict with the objectivity of the individual.

**(B)** **Construction**

An individual shall not be considered to be an employee of a public
agency for purposes of subparagraph (A)(i) solely because the individual
is paid by the agency to serve as a hearing officer.

**(17)** **Independent living core services**

The term \"independent living core services\" means‑‑

**(A)** information and referral services;

**(B)** independent living skills training;

**(C)** peer counseling (including cross‑disability peer counseling);
and

**(D)** individual and systems advocacy.

**(18)** **Independent living services**

The term \"independent living services\" includes‑‑

**(A)** independent living core services; and

**(B)(i)** counseling services, including psychological,
psychotherapeutic, and related services;

**(ii)** services related to securing housing or shelter, including
services related to community group living, and supportive of the
purposes of this Act and of the titles of this Act, and adaptive housing
services (including appropriate accommodations to and modifications of
any space used to serve, or occupied by, individuals with disabilities);

**(iii)** rehabilitation technology;

**(iv)** mobility training;

**(v)** services and training for individuals with cognitive and sensory
disabilities, including life skills training, and interpreter and reader
services;

**(vi)** personal assistance services, including attendant care and the
training of personnel providing such services;

**(vii)** surveys, directories, and other activities to identify
appropriate housing, recreation opportunities, and accessible
transportation, and other support services;

**(viii)** consumer information programs on rehabilitation and
independent living services available under this Act, especially for
minorities and other individuals with disabilities who have
traditionally been unserved or underserved by programs under this Act;

**(ix)** education and training necessary for living in a community and
participating in community activities;

**(x)** supported living;

**(xi)** transportation, including referral and assistance for such
transportation and training in the use of public transportation vehicles
and systems;

**(xii)** physical rehabilitation;

**(xiii)** therapeutic treatment;

**(xiv)** provision of needed prostheses and other appliances and
devices;

**(xv)** individual and group social and recreational services;

**(xvi)** training to develop skills specifically designed for youths
who are individuals with disabilities to promote self‑awareness and
esteem, develop advocacy and self‑empowerment skills, and explore career
options;

**(xvii)** services for children;

**(xviii)** services under other Federal, State, or local programs
designed to provide resources, training, counseling, or other
assistance, of substantial benefit in enhancing the independence,
productivity, and quality of life of individuals with disabilities;

**(xix)** appropriate preventive services to decrease the need of
individuals assisted under this Act for similar services in the future;

**(xx)** community awareness programs to enhance the understanding and
integration into society of individuals with disabilities; and

**(xxi)** such other services as may be necessary and not inconsistent
with the provisions of this Act.

**(19)** **Indian; american indian; indian american; indian tribe**

**(A)** **In general**

The terms \"Indian\", \"American Indian\", and \"Indian American\" mean
an individual who is a member of an Indian tribe.

**(B)** **Indian tribe**

The term \"Indian tribe\" means any Federal or State Indian tribe, band,
rancheria, pueblo, colony, or community, including any Alaskan native
village or regional village corporation (as defined in or established
pursuant to the Alaska Native Claims Settlement Act).

**(20)** **Individual with a disability**

**(A)** **In general**

Except as otherwise provided in subparagraph (B), the term \"individual
with a disability\" means any individual who‑‑

**(i)** has a physical or mental impairment which for such individual
constitutes or results in a substantial impediment to employment; and

**(ii)** can benefit in terms of an employment outcome from vocational
rehabilitation services provided pursuant to title I, III, or VI.

**(B)** **Certain programs; limitations on major life activities**

Subject to subparagraphs (C), (D), (E), and (F), the term \"individual
with a disability\" means, for purposes of sections 2, 14, and 15, and
titles II, IV, V, and VII of this Act, any person who‑‑

**(i)** has a physical or mental impairment which substantially limits
one or more of such person\'s major life activities;

**(ii)** has a record of such an impairment; or

**(iii)** is regarded as having such an impairment.

**(C)** **Rights and advocacy provisions**

**(i)** **In general; exclusion of individuals engaging in drug use**

For purposes of title V, the term \"individual with a disability\" does
not include an individual who is currently engaging in the illegal use
of drugs, when a covered entity acts on the basis of such use.

**(ii)** **Exception for individuals no longer engaging in drug use**

Nothing in clause (i) shall be construed to exclude as an individual
with a disability an individual who‑‑

**(I)** has successfully completed a supervised drug rehabilitation
program and is no longer engaging in the illegal use of drugs, or has
otherwise been rehabilitated successfully and is no longer engaging in
such use;

**(II)** is participating in a supervised rehabilitation program and is
no longer engaging in such use; or

**(III)** is erroneously regarded as engaging in such use, but is not
engaging in such use; except that it shall not be a violation of this
Act for a covered entity to adopt or administer reasonable policies or
procedures, including but not limited to drug testing, designed to
ensure that an individual described in subclause (I) or (II) is no
longer engaging in the illegal use of drugs.

**(iii)** **Exclusion for certain services**

Notwithstanding clause (i), for purposes of programs and activities
providing health services and services provided under titles I, II, and
III, an individual shall not be excluded from the benefits of such
programs or activities on the basis of his or her current illegal use of
drugs if he or she is otherwise entitled to such services.

**(iv)** **Disciplinary action**

For purposes of programs and activities providing educational services,
local educational agencies may take disciplinary action pertaining to
the use or possession of illegal drugs or alcohol against any student
who is an individual with a disability and who currently is engaging in
the illegal use of drugs or in the use of alcohol to the same extent
that such disciplinary action is taken against students who are not
individuals with disabilities. Furthermore, the due process procedures
at section 104.36 of title 34, Code of Federal Regulations (or any
corresponding similar regulation or ruling) shall not apply to such
disciplinary actions.

**(v)** **Employment; exclusion of alcoholics**

For purposes of sections 503 and 504 as such sections relate to
employment, the term \"individual with a disability\" does not include
any individual who is an alcoholic whose current use of alcohol prevents
such individual from performing the duties of the job in question or
whose employment, by reason of such current alcohol abuse, would
constitute a direct threat to property or the safety of others.

**(D)** **Employment; exclusion of individuals with certain diseases or
infections**

For the purposes of sections 503 and 504, as such sections relate to
employment, such term does not include an individual who has a currently
contagious disease or infection and who, by reason of such disease or
infection, would constitute a direct threat to the health or safety of
other individuals or who, by reason of the currently contagious disease
or infection, is unable to perform the duties of the job.

**(E)** **Rights provisions; exclusion of individuals on basis of
homosexuality or bisexuality**

For the purposes of sections 501, 503, and 504‑‑

**(i)** for purposes of the application of subparagraph (B) to such
sections, the term \"impairment\" does not include homosexuality or
bisexuality; and

**(ii)** therefore the term \"individual with a disability\" does not
include an individual on the basis of homosexuality or bisexuality.

**(F)** **Rights provisions; exclusion of individuals on basis of
certain disorders**

For the purposes of sections 501, 503, and 504, the term \"individual
with a disability\" does not include an individual on the basis of‑‑

**(i)** transvestism, transsexualism, pedophilia, exhibitionism,
voyeurism, gender identity disorders not resulting from physical
impairments, or other sexual behavior disorders;

**(ii)** compulsive gambling, kleptomania, or pyromania; or

**(iii)** psychoactive substance use disorders resulting from current
illegal use of drugs.

**(G)** **Individuals with disabilities**

The term \"individuals with disabilities\" means more than one
individual with a disability.

**(21)** **Individual with a significant disability**

**(A)** **In general**

Except as provided in subparagraph (B) or (C), the term \"individual
with a significant disability\" means an individual with a disability‑‑

**(i)** who has a severe physical or mental impairment which seriously
limits one or more functional capacities (such as mobility,
communication, self‑care, self‑direction, interpersonal skills, work
tolerance, or work skills) in terms of an employment outcome;

**(ii)** whose vocational rehabilitation can be expected to require
multiple vocational rehabilitation services over an extended period of
time; and

**(iii)** who has one or more physical or mental disabilities resulting
from amputation, arthritis, autism, blindness, burn injury, cancer,
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease,
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental
retardation, mental illness, multiple sclerosis, muscular dystrophy,
musculo‑skeletal disorders, neurological disorders (including stroke and
epilepsy), paraplegia, quadriplegia, and other spinal cord conditions,
sickle cell anemia, specific learning disability, end‑stage renal
disease, or another disability or combination of disabilities determined
on the basis of an assessment for determining eligibility and vocational
rehabilitation needs described in subparagraphs (A) and (B) of paragraph
(2) to cause comparable substantial functional limitation.

**(B)** **Independent living services and centers for independent
living**

For purposes of title VII, the term \"individual with a significant
disability\" means an individual with a severe physical or mental
impairment whose ability to function independently in the family or
community or whose ability to obtain, maintain, or advance in employment
is substantially limited and for whom the delivery of independent living
services will improve the ability to function, continue functioning, or
move towards functioning independently in the family or community or to
continue in employment, respectively.

**(C)** **Research and training**

For purposes of title II, the term \"individual with a significant
disability\" includes an individual described in subparagraph (A) or
(B).

**(D)** **Individuals with significant disabilities**

The term \"individuals with significant disabilities\" means more than
one individual with a significant disability.

**(E)** **Individual with a most significant disability**

**(i)** **In general**

The term \"individual with a most significant disability\", used with
respect to an individual in a State, means an individual with a
significant disability who meets criteria established by the State under
section 101(a)(5)(C).

**(ii)** **Individuals with the most significant disabilities**

The term \"individuals with the most significant disabilities\" means
more than one individual with a most significant disability.

**(22)** **Individual\'s representative; applicant\'s representative**

The terms \"individual\'s representative\" and \"applicant\'s
representative\" mean a parent, a family member, a guardian, an
advocate, or an authorized representative of an individual or applicant,
respectively.

**(23)** **Institution of higher education**

The term \"institution of higher education\" has the meaning given the
term in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C.
1141(a)).

**(24) Local agency**

The term \"local agency\" means an agency of a unit of general local
government or of an Indian tribe (or combination of such units or
tribes) which has an agreement with the designated State agency to
conduct a vocational rehabilitation program under the supervision of
such State agency in accordance with the State plan approved under
section 101. Nothing in the preceding sentence of this paragraph or in
section 101 shall be construed to prevent the local agency from
arranging to utilize another local public or nonprofit agency to provide
vocational rehabilitation services if such an arrangement is made part
of the agreement specified in this paragraph.

**(25)** **Local workforce investment board**

The term \"local workforce investment board\" means a local workforce
investment board established under section 117 of the Workforce
Investment Act of 1998.

**(26)** **Nonprofit**

The term \"nonprofit\", when used with respect to a community
rehabilitation program, means a community rehabilitation program carried
out by a corporation or association, no part of the net earnings of
which inures, or may lawfully inure, to the benefit of any private
shareholder or individual and the income of which is exempt from
taxation under section 501(c)(3) of the Internal Revenue Code of 1986.

**(27)** **Ongoing support services**

The term \"ongoing support services\" means services‑‑

**(A)** provided to individuals with the most significant disabilities;

**(B)** provided, at a minimum, twice monthly‑‑

**(i)** to make an assessment, regarding the employment situation, at
the worksite of each such individual in supported employment, or, under
special circumstances, especially at the request of the client, off
site; and

**(ii)** based on the assessment, to provide for the coordination or
provision of specific intensive services, at or away from the worksite,
that are needed to maintain employment stability; and

**(C)** consisting of‑‑

**(i)** a particularized assessment supplementary to the comprehensive
assessment described in paragraph (2)(B);

**(ii)** the provision of skilled job trainers who accompany the
individual for intensive job skill training at the worksite;

**(iii)** job development, job retention, and placement services;

**(iv)** social skills training;

**(v)** regular observation or supervision of the individual;

**(vi)** followup services such as regular contact with the employers,
the individuals, the individuals\' representatives, and other
appropriate individuals, in order to reinforce and stabilize the job
placement;

**(vii)** facilitation of natural supports at the worksite;

**(viii)** any other service identified in section 103; or

**(ix)** a service similar to another service described in this
subparagraph.

**(28)** **Personal assistance services**

The term \"personal assistance services\" means a range of services,
provided by one or more persons, designed to assist an individual with a
disability to perform daily living activities on or off the job that the
individual would typically perform if the individual did not have a
disability. Such services shall be designed to increase the
individual\'s control in life and ability to perform everyday activities
on or off the job.

**(29)** **Public or nonprofit**

The term \"public or nonprofit\", used with respect to an agency or
organization, includes an Indian tribe.

**(30)** **Rehabilitation technology**

The term \"rehabilitation technology\" means the systematic application
of technologies, engineering methodologies, or scientific principles to
meet the needs of and address the barriers confronted by individuals
with disabilities in areas which include education, rehabilitation,
employment, transportation, independent living, and recreation. The term
includes rehabilitation engineering, assistive technology devices, and
assistive technology services.

**(31)** **Secretary**

The term \"Secretary\", except when the context otherwise requires,
means the Secretary of Education.

**(32)** **State**

The term \"State\" includes, in addition to each of the several States
of the United States, the District of Columbia, the Commonwealth of
Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and
the Commonwealth of the Northern Mariana Islands.

**(33)** **State workforce investment board**

The term \"State workforce investment board\" means a State workforce
investment board established under section 111 of the Workforce
Investment Act of 1998.

**(34)** **Statewide workforce investment system**

The term \"statewide workforce investment system\" means a system
described in section 111(d)(2) of the Workforce Investment Act of 1998.

**(35)** **Supported employment**

**(A)** **In general**

The term \"supported employment\" means competitive work in integrated
work settings, or employment in integrated work settings in which
individuals are working toward competitive work, consistent with the
strengths, resources, priorities, concerns, abilities, capabilities,
interests, and informed choice of the individuals, for individuals with
the most significant disabilities‑‑

**(i)(I)** for whom competitive employment has not traditionally
occurred; or

**(II)** for whom competitive employment has been interrupted or
intermittent as a result of a significant disability; and

**(ii)** who, because of the nature and severity of their disability,
need intensive supported employment services for the period, and any
extension, described in paragraph (36)(C) and extended services after
the transition described in paragraph (13)(C) in order to perform such
work.

**(B)** **Certain transitional employment**

Such term includes transitional employment for persons who are
individuals with the most significant disabilities due to mental
illness.

**(36)** **Supported employment services**

The term \"supported employment services\" means ongoing support
services and other appropriate services needed to support and maintain
an individual with a most significant disability in supported
employment, that‑‑

**(A)** are provided singly or in combination and are organized and made
available in such a way as to assist an eligible individual to achieve
competitive employment;

**(B)** are based on a determination of the needs of an eligible
individual, as specified in an individualized plan for employment; and

**(C)** are provided by the designated State unit for a period of time
not to extend beyond 18 months, unless under special circumstances the
eligible individual and the rehabilitation counselor or coordinator
involved jointly agree to extend the time in order to achieve the
employment outcome identified in the individualized plan for employment.

**(37)** **Transition services**

The term \"transition services\" means a coordinated set of activities
for a student, designed within an outcome‑oriented process, that
promotes movement from school to post school activities, including
postsecondary education, vocational training, integrated employment
(including supported employment), continuing and adult education, adult
services, independent living, or community participation. The
coordinated set of activities shall be based upon the individual
student\'s needs, taking into account the student\'s preferences and
interests, and shall include instruction, community experiences, the
development of employment and other post school adult living objectives,
and, when appropriate, acquisition of daily living skills and functional
vocational evaluation.

**(38)** **Vocational rehabilitation services**

The term \"vocational rehabilitation services\" means those services
identified in section 103 which are provided to individuals with
disabilities under this Act.

**(39)** **Workforce investment activities**

The term \"workforce investment activities\" means workforce investment
activities, as defined in section 101 of the Workforce Investment Act of
1998, that are carried out under that Act.

**Allotment Percentage**

**Sec. 8. (a)(1)** For purposes of section 110, the allotment percentage
for any State shall be 100 per centum less that percentage which bears
the same ratio to 50 per centum as the per capita income of such State
bears to the per capita income of the United States, except that‑‑

**(A)** the allotment percentage shall in no case be more than 75 per
centum or less than 33 1/3 per centum; and

**(B)** the allotment percentage for the District of Columbia, Puerto
Rico, Guam, the Virgin Islands, American Samoa, and the Commonwealth of
the Northern Mariana Islands shall be 75 per centum.

**(2)** The allotment percentages shall be promulgated by the Secretary
between October 1 and December 31 of each even‑numbered year, on the
basis of the average of the per capita incomes of the States and of the
United States for the three most recent consecutive years for which
satisfactory data are available from the Department of Commerce. Such
promulgation shall be conclusive for each of the two fiscal years in the
period beginning on the October 1 next succeeding such promulgation.

**(3)** The term \"United States\" means (but only for purposes of this
subsection) the fifty States and the District of Columbia.

**(b)** The population of the several States and of the United States
shall be determined on the basis of the most recent data available, to
be furnished by the Department of Commerce by October 1 of the year
preceding the fiscal year for which funds are appropriated pursuant to
statutory authorizations.

**Nonduplication**

**Sec. 10.** In determining the amount of any State\'s Federal share of
expenditures for planning, administration, and services incurred by it
under a State plan approved in accordance with section 101, there shall
be disregarded\--

**(1)** any portion of such expenditures which are financed by Federal
funds provided under any other provision of law, and

**(2)** the amount of any non‑Federal funds required to be expended as a
condition of receipt of such Federal funds.

No payment may be made from funds provided under one provision of this
Act relating to any cost with respect to which any payment is made under
any other provision of this Act, except that this section shall not be
construed to limit or reduce fees for services rendered by community
rehabilitation programs.

**Application of Other Laws**

**Sec. 11.** The provisions of the Act of December 5, 1974 (Public Law
93‑510) and of title V of the Act of October 15, 1977 (Public Law
95‑134) shall not apply to the administration of the provisions of this
Act or to the administration of any program or activity under this Act.

**Administration of the Act**

**Sec. 12. (a)** In carrying out the purposes of this Act, the
Commissioner may‑‑

**(1)** provide consultative services and technical assistance to public
or nonprofit private agencies and organizations, including assistance to
enable such agencies and organizations to facilitate meaningful and
effective participation by individuals with disabilities in workforce
investment activities;

**(2)** provide short‑term training and technical instruction, including
training for the personnel of community rehabilitation programs, centers
for independent living, and other providers of services (including job
coaches);

**(3)** conduct special projects and demonstrations;

**(4)** collect, prepare, publish, and disseminate special educational
or informational materials, including reports of the projects for which
funds are provided under this Act; and

**(5)** provide monitoring and conduct evaluations.

**(b)(1)** In carrying out the duties under this Act, the Commissioner
may utilize the services and facilities of any agency of the Federal
Government and of any other public or nonprofit agency or organization,
in accordance with agreements between the Commissioner and the head
thereof, and may pay therefor, in advance or by way of reimbursement, as
may be provided in the agreement.

**(2)** In carrying out the provisions of this Act, the Commissioner
shall appoint such task forces as may be necessary to collect and
disseminate information in order to improve the ability of the
Commissioner to carry out the provisions of this Act.

**(c)** The Commissioner may promulgate such regulations as are
considered appropriate to carry out the Commissioner\'s duties under
this Act.

**(d)** The Secretary shall promulgate regulations regarding the
requirements for the implementation of an order of selection for
vocational rehabilitation services under section 101(a)(5)(A) if such
services cannot be provided to all eligible individuals with
disabilities who apply for such services.

**(e)** Not later than 180 days after the date of enactment of the
Rehabilitation Act Amendments of 1998, the Secretary shall receive
public comment and promulgate regulations to implement the amendments
made by the Rehabilitation Act Amendments of 1998.

**(f)** In promulgating regulations to carry out this Act, the Secretary
shall promulgate only regulations that are necessary to administer and
ensure compliance with the specific requirements of this Act.

**(g)** There are authorized to be appropriated to carry out this
section such sums as may be necessary.

**Reports**

**Sec. 13. (a)** Not later than one hundred and eighty days after the
close of each fiscal year, the Commissioner shall prepare and submit to
the President and to the Congress a full and complete report on the
activities carried out under this Act, including the activities and
staffing of the information clearinghouse under section 15.

**(b)** The Commissioner shall collect information to determine whether
the purposes of this Act are being met and to assess the performance of
programs carried out under this Act. The Commissioner shall take
whatever action is necessary to assure that the identity of each
individual for which information is supplied under this section is kept
confidential, except as otherwise required by law (including
regulation).

**(c)** In preparing the report, the Commissioner shall annually collect
and include in the report information based on the information submitted
by States in accordance with section 101(a)(10), including information
on administrative costs as required by section 101(a)(10)(D). The
Commissioner shall, to the maximum extent appropriate, include in the
report all information that is required to be submitted in the reports
described in section 136(d) of the Workforce Investment Act of 1998 and
that pertains to the employment of individuals with disabilities.

**Evaluation**

**Sec. 14. (a)** For the purpose of improving program management and
effectiveness, the Secretary, in consultation with the Commissioner,
shall evaluate all the programs authorized by this Act, their general
effectiveness in relation to their cost, their impact on related
programs, and their structure and mechanisms for delivery of services,
using appropriate methodology and evaluative research designs. The
Secretary shall establish and use standards for the evaluations required
by this subsection. Such an evaluation shall be conducted by a person
not immediately involved in the administration of the program evaluated.

**(b)** In carrying out evaluations under this section, the Secretary
shall obtain the opinions of program and project participants about the
strengths and weaknesses of the programs and projects.

**(c)** The Secretary shall take the necessary action to assure that all
studies, evaluations, proposals, and data produced or developed with
Federal funds under this Act shall become the property of the United
States.

**(d)** Such information as the Secretary may determine to be necessary
for purposes of the evaluations conducted under this section shall be
made available upon request of the Secretary, by the departments and
agencies of the executive branch.

**(e)(1)** To assess the linkages between vocational rehabilitation
services and economic and noneconomic outcomes, the Secretary shall
continue to conduct a longitudinal study of a national sample of
applicants for the services.

**(2)** The study shall address factors related to attrition and
completion of the program through which the services are provided and
factors within and outside the program affecting results. Appropriate
comparisons shall be used to contrast the experiences of similar persons
who do not obtain the services.

**(3)** The study shall be planned to cover the period beginning on the
application of individuals with disabilities for the services, through
the eligibility determination and provision of services for the
individuals, and a further period of not less than 2 years after the
termination of services.

**(f)(1)** The Commissioner shall identify and disseminate information
on exemplary practices concerning vocational rehabilitation.

**(2)** To facilitate compliance with paragraph (1), the Commissioner
shall conduct studies and analyses that identify exemplary practices
concerning vocational rehabilitation, including studies in areas
relating to providing informed choice in the rehabilitation process,
promoting consumer satisfaction, promoting job placement and retention,
providing supported employment, providing services to particular
disability populations, financing personal assistance services,
providing assistive technology devices and assistive technology
services, entering into cooperative agreements, establishing standards
and certification for community rehabilitation programs, converting from
nonintegrated to integrated employment, and providing caseload
management.

**(g)** There are authorized to be appropriated to carry out this
section such sums as may be necessary.

**Information Clearinghouse**

**Sec. 15. (a)** The Secretary shall establish a central clearinghouse
for information and resource availability for individuals with
disabilities which shall provide information and data regarding‑‑

**(1)** the location, provision, and availability of services and
programs for individuals with disabilities, including such information
and data provided by State workforce investment boards regarding such
services and programs authorized under title I of such Act;

**(2)** research and recent medical and scientific developments bearing
on disabilities (and their prevention, amelioration, causes, and cures);
and

**(3)** the current numbers of individuals with disabilities and their
needs. The clearinghouse shall also provide any other relevant
information and data which the Secretary considers appropriate.

**(b)** The Commissioner may assist the Secretary to develop within the
Department of Education a coordinated system of information and data
retrieval, which will have the capacity and responsibility to provide
information regarding the information and data referred to in subsection
(a) of this section to the Congress, public and private agencies and
organizations, individuals with disabilities and their families,
professionals in fields serving such individuals, and the general
public.

**(c)** The office established to carry out the provisions of this
section shall be known as the "Office of Information and Resources for
Individuals with Disabilities."

**(d)** There are authorized to be appropriated to carry out this
section such sums as may be necessary.

**Transfer of Funds**

**Sec. 16. (a)** Except as provided in subsection (b) of this section,
no funds appropriated under this Act for any program or activity may be
used for any purpose other than that for which the funds were
specifically authorized.

**(b)** No more than 1 percent of funds appropriated for discretionary
grants, contracts, or cooperative agreements authorized by this Act may
be used for the purpose of providing non‑Federal panels of experts to
review applications for such grants, contracts, or cooperative
agreements.

**State Administration**

**Sec. 17.** The application of any State rule or policy relating to the
administration or operation of programs funded by this Act (including
any rule or policy based on State interpretation of any Federal law,
regulation, or guideline) shall be identified as a State imposed
requirement.

**Review of Applications**

**Sec. 18.** Applications for grants in excess of \$100,000 in the
aggregate authorized to be funded under this Act, other than grants
primarily for the purpose of conducting dissemination or conferences,
shall be reviewed by panels of experts which shall include a majority of
non‑Federal members. Non‑Federal members may be provided travel, per
diem, and consultant fees not to exceed the daily equivalent of the rate
of pay for level 4 of the Senior Executive Service Schedule under
section 5382 of title 5, United States Code.

**Carryover**

**Sec. 19. (a)** **In General**

Except as provided in subsection (b), and notwithstanding any other
provision of law ‑‑

**(1)** any funds appropriated for a fiscal year to carry out any grant
program under part B of title I, section 509 (except as provided in
section 509(b)), part B of title VI, part B or C of chapter 1 of title
VII, or chapter 2 of title VII (except as provided in section 752(b)),
including any funds reallotted under any such grant program, that are
not obligated and expended by recipients prior to the beginning of the
succeeding fiscal year; or

**(2)** any amounts of program income, including reimbursement payments
under the Social Security Act (42 U.S.C. 301 et seq.), received by
recipients under any grant program specified in paragraph (1) that are
not obligated and expended by recipients prior to the beginning of the
fiscal year succeeding the fiscal year in which such amounts were
received, shall remain available for obligation and expenditure by such
recipients during such succeeding fiscal year.

**(b)** **Non‑Federal Share**

Such funds shall remain available for obligation and expenditure by a
recipient as provided in subsection (a) only to the extent that the
recipient complied with any Federal share requirements applicable to the
program for the fiscal year for which the funds were appropriated.

**Client Assistance Information**

**Sec. 20.** All programs, including community rehabilitation programs,
and projects, that provide services to individuals with disabilities
under this Act shall advise such individuals who are applicants for or
recipients of the services, or the applicants\' representatives or
individuals\' representatives, of the availability and purposes of the
client assistance program under section 112, including information on
means of seeking assistance under such program.

**Traditionally Underserved Populations**

**Sec. 21. (a)** **Findings**

With respect to the programs authorized in titles II through VII, the
Congress finds as follows:

**(1)** **Racial profile**

The racial profile of America is rapidly changing. While the rate of
increase for white Americans is 3.2 percent, the rate of increase for
racial and ethnic minorities is much higher: 38.6 percent for Latinos,
14.6 percent for African‑Americans, and 40.1 percent for Asian‑Americans
and other ethnic groups. By the year 2000, the Nation will have
260,000,000 people, one of every three of whom will be either
African‑American, Latino, or Asian‑American.

**(2)** **Rate of disability**

Ethnic and racial minorities tend to have disabling conditions at a
disproportionately high rate. The rate of work‑related disability for
American Indians is about one and one‑half times that of the general
population. African‑Americans are also one and one‑half times more
likely to be disabled than whites and twice as likely to be
significantly disabled.

**(3)** **Inequitable treatment**

Patterns of inequitable treatment of minorities have been documented in
all major junctures of the vocational rehabilitation process. As
compared to white Americans, a larger percentage of African‑American
applicants to the vocational rehabilitation system is denied acceptance.
Of applicants accepted for service, a larger percentage of
African‑American cases is closed without being rehabilitated. Minorities
are provided less training than their white counterparts. Consistently,
less money is spent on minorities than on their white counterparts.

**(4)** **Recruitment**

Recruitment efforts within vocational rehabilitation at the level of
preservice training, continuing education, and in‑service training must
focus on bringing larger numbers of minorities into the profession in
order to provide appropriate practitioner knowledge, role models, and
sufficient manpower to address the clearly changing demography of
vocational rehabilitation.

**(b)** **Outreach to Minorities**

**(1)** **In general**

For each fiscal year, the Commissioner and the Director of the National
Institute on Disability and Rehabilitation Research (referred to in this
subsection as the \"Director\") shall reserve 1 percent of the funds
appropriated for the fiscal year for programs authorized under titles
II, III, VI, and VII to carry out this subsection. The Commissioner and
the Director shall use the reserved funds to carry out 1 or more of the
activities described in paragraph (2) through a grant, contract, or
cooperative agreement.

**(2)** **Activities**

The activities carried out by the Commissioner and the Director shall
include 1 or more of the following:

**(A)** Making awards to minority entities and Indian tribes to carry
out activities under the programs authorized under titles II, III, VI,
and VII.

**(B)** Making awards to minority entities and Indian tribes to conduct
research, training, technical assistance, or a related activity, to
improve services provided under this Act, especially services provided
to individuals from minority backgrounds.

**(C)** Making awards to entities described in paragraph (3) to provide
outreach and technical assistance to minority entities and Indian tribes
to promote their participation in activities funded under this Act,
including assistance to enhance their capacity to carry out such
activities.

**(3)** **Eligibility**

To be eligible to receive an award under paragraph (2)(C), an entity
shall be a State or a public or private nonprofit agency or
organization, such as an institution of higher education or an Indian
tribe.

**(4)** **Report**

In each fiscal year, the Commissioner and the Director shall prepare and
submit to Congress a report that describes the activities funded under
this subsection for the preceding fiscal year.

**(5)** **Definitions**

In this subsection:

**(A)** **Historically black college or university**: The term
\"historically Black college or university\" means a part B institution,
as defined in section 322(2) of the Higher Education Act of 1965 (20
U.S.C. 1061(2)).

**(B)** **Minority entity**: The term \"minority entity\" means an
entity that is a historically Black college or university, a
Hispanic‑serving institution of higher education, an American Indian
tribal college or university, or another institution of higher education
whose minority student enrollment is at least 50 percent.

**(c)** **Demonstration**

In awarding grants, or entering into contracts or cooperative agreements
under titles I, II, III, VI, and VII, and section 509, the Commissioner
and the Director, in appropriate cases, shall require applicants to
demonstrate how the applicants will address, in whole or in part, the
needs of individuals with disabilities from minority backgrounds.

**TITLE I‑‑VOCATIONAL REHABILITATION SERVICES**

**Part A‑‑General Provisions**

**Sec. 100. Declaration of Policy; Authorization of Appropriations**

**(a)** **Findings; Purpose; Policy**

**(1) Findings**

Congress finds that‑‑

**(A)** work‑‑

**(i)** is a valued activity, both for individuals and society; and

**(ii)** fulfills the need of an individual to be productive, promotes
independence, enhances self‑esteem, and allows for participation in the
mainstream of life in the United States;

**(B)** as a group, individuals with disabilities experience staggering
levels of unemployment and poverty;

**(C)** individuals with disabilities, including individuals with the
most significant disabilities, have demonstrated their ability to
achieve gainful employment in integrated settings if appropriate
services and supports are provided;

**(D)** reasons for significant numbers of individuals with disabilities
not working, or working at levels not commensurate with their abilities
and capabilities, include‑‑

**(i)** discrimination;

**(ii)** lack of accessible and available transportation;

**(iii)** fear of losing health coverage under the medicare and medicaid
programs carried out under titles XVIII and XIX of the Social Security
Act (42 U.S.C. 1395 et seq. and 1396 et seq.) or fear of losing private
health insurance; and

**(iv)** lack of education, training, and supports to meet job
qualification standards necessary to secure, retain, regain, or advance
in employment;

**(E)** enforcement of title V and of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.) holds the promise of ending
discrimination for individuals with disabilities;

**(F)** the provision of workforce investment activities and vocational
rehabilitation services can enable individuals with disabilities,
including individuals with the most significant disabilities, to pursue
meaningful careers by securing gainful employment commensurate with
their abilities and capabilities; and

**(G)** linkages between the vocational rehabilitation programs
established under this title and other components of the statewide
workforce investment systems are critical to ensure effective and
meaningful participation by individuals with disabilities in workforce
investment activities.

**(2)** **Purpose**

The purpose of this title is to assist States in operating statewide
comprehensive, coordinated, effective, efficient, and accountable
programs of vocational rehabilitation, each of which is‑‑

**(A)** an integral part of a statewide workforce investment system; and

**(B)** designed to assess, plan, develop, and provide vocational
rehabilitation services for individuals with disabilities, consistent
with their strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice, so that such individuals
may prepare for and engage in gainful employment.

**(3)** **Policy**

It is the policy of the United States that such a program shall be
carried out in a manner consistent with the following principles:

**(A)** Individuals with disabilities, including individuals with the
most significant disabilities, are generally presumed to be capable of
engaging in gainful employment and the provision of individualized
vocational rehabilitation services can improve their ability to become
gainfully employed.

**(B)** Individuals with disabilities must be provided the opportunities
to obtain gainful employment in integrated settings.

**(C)** Individuals who are applicants for such programs or eligible to
participate in such programs must be active and full partners in the
vocational rehabilitation process, making meaningful and informed
choices‑‑

**(i)** during assessments for determining eligibility and vocational
rehabilitation needs; and

**(ii)** in the selection of employment outcomes for the individuals,
services needed to achieve the outcomes, entities providing such
services, and the methods used to secure such services.

**(D)** Families and other natural supports can play important roles in
the success of a vocational rehabilitation program, if the individual
with a disability involved requests, desires, or needs such supports.

**(E)** Vocational rehabilitation counselors that are trained and
prepared in accordance with State policies and procedures as described
in section 101(a)(7)(B) (referred to individually in this title as a
\"qualified vocational rehabilitation counselor\"), other qualified
rehabilitation personnel, and other qualified personnel facilitate the
accomplishment of the employment outcomes and objectives of an
individual.

**(F)** Individuals with disabilities and the individuals\'
representatives are full partners in a vocational rehabilitation program
and must be involved on a regular basis and in a meaningful manner with
respect to policy development and implementation.

**(G)** Accountability measures must facilitate the accomplishment of
the goals and objectives of the program, including providing vocational
rehabilitation services to, among others, individuals with the most
significant disabilities.

**(b)** **Authorization of Appropriations**

**(1)** **In general**

For the purpose of making grants to States under part B to assist States
in meeting the costs of vocational rehabilitation services provided in
accordance with State plans under section 101, there are authorized to
be appropriated such sums as may be necessary for fiscal years 1999
through 2003, except that the amount to be appropriated for a fiscal
year shall not be less than the amount of the appropriation under this
paragraph for the immediately preceding fiscal year, increased by the
percentage change in the Consumer Price Index determined under
subsection (c) for the immediately preceding fiscal year.

**(2)** **Reference**

The reference in paragraph (1) to grants to States under part B shall
not be considered to refer to grants under section 112.

**(c)** **Consumer Price Index**

**(1)** **Percentage change**

No later than November 15 of each fiscal year (beginning with fiscal
year 1979), the Secretary of Labor shall publish in the Federal Register
the percentage change in the Consumer Price Index published for October
of the preceding fiscal year and October of the fiscal year in which
such publication is made.

**(2)** **Application**

**(A)** **Increase**

If in any fiscal year the percentage change published under paragraph
(1) indicates an increase in the Consumer Price Index, then the amount
to be appropriated under subsection (b)(1) for the subsequent fiscal
year shall be at least the amount appropriated under subsection (b)(1)
for the fiscal year in which the publication is made under paragraph (1)
increased by such percentage change.

**(B)** **No increase or decrease**

If in any fiscal year the percentage change published under paragraph
(1) does not indicate an increase in the Consumer Price Index, then the
amount to be appropriated under subsection (b)(1) for the subsequent
fiscal year shall be at least the amount appropriated under subsection
(b)(1) for the fiscal year in which the publication is made under
paragraph (1).

**(3)** **Definition**

For purposes of this section, the term \"Consumer Price Index\" means
the Consumer Price Index for All Urban Consumers, published monthly by
the Bureau of Labor Statistics.

**(d)** **Extension**

**(1)** **In general**

**(A)** **Authorization or duration of program**

Unless the Congress in the regular session which ends prior to the
beginning of the terminal fiscal year‑‑

**(i)** of the authorization of appropriations for the program
authorized by the State grant program under part B of this title; or

**(ii)** of the duration of the program authorized by the State grant
program under part B of this title;

has passed legislation which would have the effect of extending the
authorization or duration (as the case may be) of such program, such
authorization or duration is automatically extended for 1 additional
year for the program authorized by this title.

**(B)** **Calculation**

The amount authorized to be appropriated for the additional fiscal year
described in subparagraph (A) shall be an amount equal to the amount
appropriated for such program for fiscal year 2003, increased by the
percentage change in the Consumer Price Index determined under
subsection (c) for the immediately preceding fiscal year, if the
percentage change indicates an increase.

**(2)** **Construction**

**(A)** **Passage of legislation**

For the purposes of paragraph (1)(A), Congress shall not be deemed to
have passed legislation unless such legislation becomes law.

**(B)** **Acts or determinations of commissioner**

In any case where the Commissioner is required under an applicable
statute to carry out certain acts or make certain determinations which
are necessary for the continuation of the program authorized by this
title, if such acts or determinations are required during the terminal
year of such program, such acts and determinations shall be required
during any fiscal year in which the extension described in that part of
paragraph (1) that follows clause (ii) of paragraph (1)(A) is in effect.

**Sec. 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 2 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 1 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)** **Non‑federal 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 non‑Federal 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 State, 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 non‑Federal 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
non‑Federal 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 non‑Federal 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 August 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 5
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 6 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 6 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 6 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 6 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 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
educational 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;

**(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 (29 U.S.C. 214(c)) for 2 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 3 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 2 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 1 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 2 agencies that does not meet the requirements in
subparagraph (A)(i), or establish 1 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.

**Sec. 102.** **Eligibility and Individualized Plan for Employment**

**(a)** **Eligibility**

**(1)** **Criterion for eligibility**

An individual is eligible for assistance under this title if the
individual‑‑

**(A)** is an individual with a disability under section 7(20)(A); and

**(B)** requires vocational rehabilitation services to prepare for,
secure, retain, or regain employment.

**(2)** **Presumption of benefit**

**(A)** **Demonstration**

For purposes of this section, an individual shall be presumed to be an
individual that can benefit in terms of an employment outcome from
vocational rehabilitation services under section 7(20)(A), unless the
designated State unit involved can demonstrate by clear and convincing
evidence that such individual is incapable of benefiting in terms of an
employment outcome from vocational rehabilitation services due to the
severity of the disability of the individual.

**(B)** **Methods**

In making the demonstration required under subparagraph (A), the
designated State unit shall explore the individual\'s abilities,
capabilities, and capacity to perform in work situations, through the
use of trial work experiences, as described in section 7(2)(D), with
appropriate supports provided through the designated State unit, except
under limited circumstances when an individual can not take advantage of
such experiences. Such experiences shall be of sufficient variety and
over a sufficient period of time to determine the eligibility of the
individual or to determine the existence of clear and convincing
evidence that the individual is incapable of benefiting in terms of an
employment outcome from vocational rehabilitation services due to the
severity of the disability of the individual.

**(3)** **Presumption of eligibility**

**(A)** **In general**

For purposes of this section, an individual who has a disability or is
blind as determined pursuant to title II or title XVI of the Social
Security Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall be‑‑

**(i)** considered to be an individual with a significant disability
under section 7(21)(A); and

**(ii)** presumed to be eligible for vocational rehabilitation services
under this title (provided that the individual intends to achieve an
employment outcome consistent with the unique strengths, resources,
priorities, concerns, abilities, capabilities, interests, and informed
choice of the individual) unless the designated State unit involved can
demonstrate by clear and convincing evidence that such individual is
incapable of benefiting in terms of an employment outcome from
vocational rehabilitation services due to the severity of the disability
of the individual in accordance with paragraph (2).

**(B)** **Construction**

Nothing in this paragraph shall be construed to create an entitlement to
any vocational rehabilitation service.

**(4)** **Use of existing information**

**(A)** **In general**

To the maximum extent appropriate and consistent with the requirements
of this part, for purposes of determining the eligibility of an
individual for vocational rehabilitation services under this title and
developing the individualized plan for employment described in
subsection (b) for the individual, the designated State unit shall use
information that is existing and current (as of the date of the
determination of eligibility or of the development of the individualized
plan for employment), including information available from other
programs and providers, particularly information used by education
officials and the Social Security Administration, information provided
by the individual and the family of the individual, and information
obtained under the assessment for determining eligibility and vocational
rehabilitation needs.

**(B)** **Determinations by officials of other agencies**

Determinations made by officials of other agencies, particularly
education officials described in section 101(a)(11)(D), regarding
whether an individual satisfies 1 or more factors relating to whether an
individual is an individual with a disability under section 7(20)(A) or
an individual with a significant disability under section 7(21)(A) shall
be used, to the extent appropriate and consistent with the requirements
of this part, in assisting the designated State unit in making such
determinations.

**(C)** **Basis**

The determination of eligibility for vocational rehabilitation services
shall be based on‑‑

**(i)** the review of existing data described in section 7(2)(A)(i); and

**(ii)** to the extent that such data is unavailable or insufficient for
determining eligibility, the provision of assessment activities
described in section 7(2)(A)(ii).

**(5)** **Determination of ineligibility**

If an individual who applies for services under this title is
determined, based on the review of existing data and, to the extent
necessary, the assessment activities described in section 7(2)(A)(ii),
not to be eligible for the services, or if an eligible individual
receiving services under an individualized plan for employment is
determined to be no longer eligible for the services‑‑

**(A)** the ineligibility determination involved shall be made only
after providing an opportunity for full consultation with the individual
or, as appropriate, the individual\'s representative;

**(B)** the individual or, as appropriate, the individual\'s
representative, shall be informed in writing (supplemented as necessary
by other appropriate modes of communication consistent with the informed
choice of the individual) of the ineligibility determination,
including‑‑

**(i)** the reasons for the determination; and

**(ii)** a description of the means by which the individual may express,
and seek a remedy for, any dissatisfaction with the determination,
including the procedures for review by an impartial hearing officer
under subsection (c);

**(C)** the individual shall be provided with a description of services
available from the client assistance program under section 112 and
information on how to contact that program; and

**(D)** any ineligibility determination that is based on a finding that
the individual is incapable of benefiting in terms of an employment
outcome shall be reviewed‑‑

**(i)** within 12 months; and

**(ii)** thereafter, if such a review is requested by the individual or,
if appropriate, by the individual\'s representative.

**(6)** **Timeframe for making an eligibility determination**

The designated State unit shall determine whether an individual is
eligible for vocational rehabilitation services under this title within
a reasonable period of time, not to exceed 60 days, after the individual
has submitted an application for the services unless‑‑

**(A)** exceptional and unforeseen circumstances beyond the control of
the designated State unit preclude making an eligibility determination
within 60 days and the designated State unit and the individual agree to
a specific extension of time; or

**(B)** the designated State unit is exploring an individual\'s
abilities, capabilities, and capacity to perform in work situations
under paragraph (2)(B).

**(b)** **Development of an Individualized Plan for Employment**

**(1)** **Options for developing an individualized plan for employment**

If an individual is determined to be eligible for vocational
rehabilitation services as described in subsection (a), the designated
State unit shall complete the assessment for determining eligibility and
vocational rehabilitation needs, as appropriate, and shall provide the
eligible individual or the individual\'s representative, in writing and
in an appropriate mode of communication, with information on the
individual\'s options for developing an individualized plan for
employment, including‑‑

**(A)** information on the availability of assistance, to the extent
determined to be appropriate by the eligible individual, from a
qualified vocational rehabilitation counselor in developing all or part
of the individualized plan for employment for the individual, and the
availability of technical assistance in developing all or part of the
individualized plan for employment for the individual;

**(B)** a description of the full range of components that shall be
included in an individualized plan for employment;

**(C)** as appropriate‑‑

**(i)** an explanation of agency guidelines and criteria associated with
financial commitments concerning an individualized plan for employment;

**(ii)** additional information the eligible individual requests or the
designated State unit determines to be necessary; and

**(iii)** information on the availability of assistance in completing
designated State agency forms required in developing an individualized
plan for employment; and

**(D)(i)** a description of the rights and remedies available to such an
individual including, if appropriate, recourse to the processes set
forth in subsection (c); and

**(ii)** a description of the availability of a client assistance
program established pursuant to section 112 and information about how to
contact the client assistance program.

**(2)** **Mandatory procedures**

**(A)** **Written document**

An individualized plan for employment shall be a written document
prepared on forms provided by the designated State unit.

**(B)** **Informed choice**

An individualized plan for employment shall be developed and implemented
in a manner that affords eligible individuals the opportunity to
exercise informed choice in selecting an employment outcome, the
specific vocational rehabilitation services to be provided under the
plan, the entity that will provide the vocational rehabilitation
services, and the methods used to procure the services, consistent with
subsection (d).

**(C)** **Signatories**

An individualized plan for employment shall be‑‑

**(i)** agreed to, and signed by, such eligible individual or, as
appropriate, the individual\'s representative; and

**(ii)** approved and signed by a qualified vocational rehabilitation
counselor employed by the designated State unit.

**(D)** **Copy**

A copy of the individualized plan for employment for an eligible
individual shall be provided to the individual or, as appropriate, to
the individual\'s representative, in writing and, if appropriate, in the
native language or mode of communication of the individual or, as
appropriate, of the individual\'s representative.

**(E)** **Review and amendment**

The individualized plan for employment shall be‑‑

**(i)** reviewed at least annually by‑‑

**(I)** a qualified vocational rehabilitation counselor; and

**(II)** the eligible individual or, as appropriate, the individual\'s
representative; and

**(ii)** amended, as necessary, by the individual or, as appropriate,
the individual\'s representative, in collaboration with a representative
of the designated State agency or a qualified vocational rehabilitation
counselor (to the extent determined to be appropriate by the
individual), if there are substantive changes in the employment outcome,
the vocational rehabilitation services to be provided, or the service
providers of the services (which amendments shall not take effect until
agreed to and signed by the eligible individual or, as appropriate, the
individual\'s representative, and by a qualified vocational
rehabilitation counselor employed by the designated State unit).

**(3)** **Mandatory components of an individualized plan for
employment**

Regardless of the approach selected by an eligible individual to develop
an individualized plan for employment, an individualized plan for
employment shall, at a minimum, contain mandatory components consisting
of‑‑

**(A)** a description of the specific employment outcome that is chosen
by the eligible individual, consistent with the unique strengths,
resources, priorities, concerns, abilities, capabilities, interests, and
informed choice of the eligible individual, and, to the maximum extent
appropriate, results in employment in an integrated setting;

**(B)(i)** a description of the specific vocational rehabilitation
services that are‑‑

**(I)** needed to achieve the employment outcome, including, as
appropriate, the provision of assistive technology devices and assistive
technology services, and personal assistance services, including
training in the management of such services; and

**(II)** provided in the most integrated setting that is appropriate for
the service involved and is consistent with the informed choice of the
eligible individual; and

**(ii)** timelines for the achievement of the employment outcome and for
the initiation of the services;

**(C)** a description of the entity chosen by the eligible individual
or, as appropriate, the individual\'s representative, that will provide
the vocational rehabilitation services, and the methods used to procure
such services;

**(D)** a description of criteria to evaluate progress toward
achievement of the employment outcome;

**(E)** the terms and conditions of the individualized plan for
employment, including, as appropriate, information describing‑‑

**(i)** the responsibilities of the designated State unit;

**(ii)** the responsibilities of the eligible individual, including‑‑

**(I)** the responsibilities the eligible individual will assume in
relation to the employment outcome of the individual;

**(II)** if applicable, the participation of the eligible individual in
paying for the costs of the plan; and

**(III)** the responsibility of the eligible individual with regard to
applying for and securing comparable benefits as described in section
101(a)(8); and

**(iii)** the responsibilities of other entities as the result of
arrangements made pursuant to comparable services or benefits
requirements as described in section 101(a)(8);

**(F)** for an eligible individual with the most significant
disabilities for whom an employment outcome in a supported employment
setting has been determined to be appropriate, information identifying‑‑

**(i)** the extended services needed by the eligible individual; and

**(ii)** the source of extended services or, to the extent that the
source of the extended services cannot be identified at the time of the
development of the individualized plan for employment, a description of
the basis for concluding that there is a reasonable expectation that
such source will become available; and

**(G)** as determined to be necessary, a statement of projected need for
post‑employment services.

**(c)** **Procedures**

**(1)** **In general**

Each State shall establish procedures for mediation of, and procedures
for review through an impartial due process hearing of, determinations
made by personnel of the designated State unit that affect the provision
of vocational rehabilitation services to applicants or eligible
individuals.

**(2)** **Notification**

**(A)** **Rights and assistance**

The procedures shall provide that an applicant or an eligible individual
or, as appropriate, the applicant\'s representative or individual\'s
representative shall be notified of‑‑

**(i)** the right to obtain review of determinations described in
paragraph (1) in an impartial due process hearing under paragraph (5);

**(ii)** the right to pursue mediation with respect to the
determinations under paragraph (4); and

**(iii)** the availability of assistance from the client assistance
program under section 112.

**(B)** **Timing**

Such notification shall be provided in writing‑‑

**(i)** at the time an individual applies for vocational rehabilitation
services provided under this title;

**(ii)** at the time the individualized plan for employment for the
individual is developed; and

**(iii)** upon reduction, suspension, or cessation of vocational
rehabilitation services for the individual.

**(3)** **Evidence and representation**

The procedures required under this subsection shall, at a minimum‑‑

**(A)** provide an opportunity for an applicant or an eligible
individual, or, as appropriate, the applicant\'s representative or
individual\'s representative, to submit at the mediation session or
hearing evidence and information to support the position of the
applicant or eligible individual; and

**(B)** include provisions to allow an applicant or an eligible
individual to be represented in the mediation session or hearing by a
person selected by the applicant or eligible individual.

**(4)** **Mediation**

**(A) Procedures**

Each State shall ensure that procedures are established and implemented
under this subsection to allow parties described in paragraph (1) to
disputes involving any determination described in paragraph (1) to
resolve such disputes through a mediation process that, at a minimum,
shall be available whenever a hearing is requested under this
subsection.

**(B) Requirements**

Such procedures shall ensure that the mediation process‑‑

**(i)** is voluntary on the part of the parties;

**(ii)** is not used to deny or delay the right of an individual to a
hearing under this subsection, or to deny any other right afforded under
this title; and

**(iii)** is conducted by a qualified and impartial mediator who is
trained in effective mediation techniques.

**(C)** **List of mediators**

The State shall maintain a list of individuals who are qualified
mediators and knowledgeable in laws (including regulations) relating to
the provision of vocational rehabilitation services under this title,
from which the mediators described in subparagraph (B) shall be
selected.

**(D)** **Cost**

The State shall bear the cost of the mediation process.

**(E)** **Scheduling**

Each session in the mediation process shall be scheduled in a timely
manner and shall be held in a location that is convenient to the parties
to the dispute.

**(F)** **Agreement**

An agreement reached by the parties to the dispute in the mediation
process shall be set forth in a written mediation agreement.

**(G)** **Confidentiality**

Discussions that occur during the mediation process shall be
confidential and may not be used as evidence in any subsequent due
process hearing or civil proceeding. The parties to the mediation
process may be required to sign a confidentiality pledge prior to the
commencement of such process.

**(H)** **Construction**

Nothing in this subsection shall be construed to preclude the parties to
such a dispute from informally resolving the dispute prior to
proceedings under this paragraph or paragraph (5), if the informal
process used is not used to deny or delay the right of the applicant or
eligible individual to a hearing under this subsection or to deny any
other right afforded under this title.

**(5)** **Hearings**

**(A) Officer**

A due process hearing described in paragraph (2) shall be conducted by
an impartial hearing officer who shall issue a decision based on the
provisions of the approved State plan, this Act (including regulations
implementing this Act), and State regulations and policies that are
consistent with the Federal requirements specified in this title. The
officer shall provide the decision in writing to the applicant or
eligible individual, or, as appropriate, the applicant\'s representative
or individual\'s representative, and to the designated State unit.

**(B) List**

The designated State unit shall maintain a list of qualified impartial
hearing officers who are knowledgeable in laws (including regulations)
relating to the provision of vocational rehabilitation services under
this title from which the officer described in subparagraph (A) shall be
selected. For the purposes of maintaining such list, impartial hearing
officers shall be identified jointly by‑‑

**(i)** the designated State unit; and

**(ii)** members of the Council or commission, as appropriate, described
in section 101(a)(21).

**(C)** **Selection**

Such an impartial hearing officer shall be selected to hear a particular
case relating to a determination‑‑

**(i)** on a random basis; or

**(ii)** by agreement between‑‑

**(I)** the Director of the designated State unit and the individual
with a disability; or

**(II)** in appropriate cases, the Director and the individual\'s
representative.

**(D)** **Procedures for seeking review**

A State may establish procedures to enable a party involved in a hearing
under this paragraph to seek an impartial review of the decision of the
hearing officer under subparagraph (A) by‑‑

**(i)** the chief official of the designated State agency if the State
has established both a designated State agency and a designated State
unit under section 101(a)(2); or

**(ii)** an official from the office of the Governor.

**(E)** **Review request**

If the State establishes impartial review procedures under subparagraph
(D), either party may request the review of the decision of the hearing
officer within 20 days after the decision.

**(F)** **Reviewing official**

The reviewing official described in subparagraph (D) shall‑‑

**(i)** in conducting the review, provide an opportunity for the
submission of additional evidence and information relevant to a final
decision concerning the matter under review;

**(ii)** not overturn or modify the decision of the hearing officer, or
part of the decision, that supports the position of the applicant or
eligible individual unless the reviewing official concludes, based on
clear and convincing evidence, that the decision of the impartial
hearing officer is clearly erroneous on the basis of being contrary to
the approved State plan, this Act (including regulations implementing
this Act) or any State regulation or policy that is consistent with the
Federal requirements specified in this title;

**(iii)** make a final decision with respect to the matter in a timely
manner and provide such decision in writing to the applicant or eligible
individual, or, as appropriate, the applicant\'s representative or
individual\'s representative, and to the designated State unit,
including a full report of the findings and the grounds for such
decision; and

**(iv)** not delegate the responsibility for making the final decision
to any officer or employee of the designated State unit.

**(G)** **Finality of hearing decision**

A decision made after a hearing under subparagraph (A) shall be final,
except that a party may request an impartial review if the State has
established procedures for such review under subparagraph (D) and a
party involved in a hearing may bring a civil action under subparagraph
(J).

**(H)** **Finality of review**

A decision made under subparagraph (F) shall be final unless such a
party brings a civil action under subparagraph (J).

**(I)** **Implementation**

If a party brings a civil action under subparagraph (J) to challenge a
final decision of a hearing officer under subparagraph (A) or to
challenge a final decision of a State reviewing official under
subparagraph (F), the final decision involved shall be implemented
pending review by the court.

**(J)** **Civil action**

**(i)** **In general**

Any party aggrieved by a final decision described in subparagraph (I),
may bring a civil action for review of such decision. The action may be
brought in any State court of competent jurisdiction or in a district
court of the United States of competent jurisdiction without regard to
the amount in controversy.

**(ii)** **Procedure**

In any action brought under this subparagraph, the court‑‑

**(I)** shall receive the records relating to the hearing under
subparagraph (A) and the records relating to the State review under
subparagraphs (D) through (F), if applicable;

**(II)** shall hear additional evidence at the request of a party to the
action; and

**(III)** basing the decision of the court on the preponderance of the
evidence, shall grant such relief as the court determines to be
appropriate.

**(6)** **Hearing board**

**(A)** **In general**

A fair hearing board, established by a State before January 1, 1985, and
authorized under State law to review determinations or decisions under
this Act, is authorized to carry out the responsibilities of the
impartial hearing officer under this subsection.

**(B)** **Application**

The provisions of paragraphs (1), (2), and (3) that relate to due
process hearings do not apply, and paragraph (5) (other than
subparagraph (J)) does not apply, to any State to which subparagraph (A)
applies.

**(7)** **Impact on provision of services**

Unless the individual with a disability so requests, or, in an
appropriate case, the individual\'s representative, so requests, pending
a decision by a mediator, hearing officer, or reviewing officer under
this subsection, the designated State unit shall not institute a
suspension, reduction, or termination of services being provided for the
individual, including evaluation and assessment services and plan
development, unless such services have been obtained through
misrepresentation, fraud, collusion, or criminal conduct on the part of
the individual, or the individual\'s representative.

**(8)** **Information collection and report**

**(A)** **In general**

The Director of the designated State unit shall collect information
described in subparagraph (B) and prepare and submit to the Commissioner
a report containing such information. The Commissioner shall prepare a
summary of the information furnished under this paragraph and include
the summary in the annual report submitted under section 13. The
Commissioner shall also collect copies of the final decisions of
impartial hearing officers conducting hearings under this subsection and
State officials conducting reviews under this subsection.

**(B)** **Information**

The information required to be collected under this subsection
includes‑‑

**(i)** a copy of the standards used by State reviewing officials for
reviewing decisions made by impartial hearing officers under this
subsection;

**(ii)** information on the number of hearings and reviews sought from
the impartial hearing officers and the State reviewing officials,
including the type of complaints and the issues involved;

**(iii)** information on the number of hearing decisions made under this
subsection that were not reviewed by the State reviewing officials; and

**(iv)** information on the number of the hearing decisions that were
reviewed by the State reviewing officials, and, based on such reviews,
the number of hearing decisions that were‑‑

**(I)** sustained in favor of an applicant or eligible individual;

**(II)** sustained in favor of the designated State unit;

**(III)** reversed in whole or in part in favor of the applicant or
eligible individual; and

**(IV)** reversed in whole or in part in favor of the designated State
unit.

**(C)** **Confidentiality**

The confidentiality of records of applicants and eligible individuals
maintained by the designated State unit shall not preclude the access of
the Commissioner to those records for the purposes described in
subparagraph (A).

**(d)** **Policies and Procedures**

Each designated State agency, in consultation with the State
Rehabilitation Council, if the State has such a council, shall,
consistent with section 100(a)(3)(C), develop and implement written
policies and procedures that enable each individual who is an applicant
for or eligible to receive vocational rehabilitation services under this
title to exercise informed choice throughout the vocational
rehabilitation process carried out under this title, including policies
and procedures that require the designated State agency‑‑

**(1)** to inform each such applicant and eligible individual (including
students with disabilities who are making the transition from programs
under the responsibility of an educational agency to programs under the
responsibility of the designated State unit), through appropriate modes
of communication, about the availability of, and opportunities to
exercise, informed choice, including the availability of support
services for individuals with cognitive or other disabilities who
require assistance in exercising informed choice, throughout the
vocational rehabilitation process;

**(2)** to assist applicants and eligible individuals in exercising
informed choice in decisions related to the provision of assessment
services under this title;

**(3)** to develop and implement flexible procurement policies and
methods that facilitate the provision of services, and that afford
eligible individuals meaningful choices among the methods used to
procure services, under this title;

**(4)** to provide or assist eligible individuals in acquiring
information that enables those individuals to exercise informed choice
under this title in the selection of‑‑

**(A)** the employment outcome;

**(B)** the specific vocational rehabilitation services needed to
achieve the employment outcome;

**(C)** the entity that will provide the services;

**(D)** the employment setting and the settings in which the services
will be provided; and

**(E)** the methods available for procuring the services; and

**(5)** to ensure that the availability and scope of informed choice
provided under this section is consistent with the obligations of the
designated State agency under this title.

**Sec. 103. Vocational Rehabilitation Services**

**(a)** **Vocational Rehabilitation Services for Individuals**

Vocational rehabilitation services provided under this title are any
services described in an individualized plan for employment necessary to
assist an individual with a disability in preparing for, securing,
retaining, or regaining an employment outcome that is consistent with
the strengths, resources, priorities, concerns, abilities, capabilities,
interests, and informed choice of the individual, including‑‑

**(1)** an assessment for determining eligibility and vocational
rehabilitation needs by qualified personnel, including, if appropriate,
an assessment by personnel skilled in rehabilitation technology;

**(2)** counseling and guidance, including information and support
services to assist an individual in exercising informed choice
consistent with the provisions of section 102(d);

**(3)** referral and other services to secure needed services from other
agencies through agreements developed under section 101(a)(11), if such
services are not available under this title;

**(4)** job‑related services, including job search and placement
assistance, job retention services, followup services, and follow‑along
services;

**(5)** vocational and other training services, including the provision
of personal and vocational adjustment services, books, tools, and other
training materials, except that no training services provided at an
institution of higher education shall be paid for with funds under this
title unless maximum efforts have been made by the designated State unit
and the individual to secure grant assistance, in whole or in part, from
other sources to pay for such training;

**(6)** to the extent that financial support is not readily available
from a source (such as through health insurance of the individual or
through comparable services and benefits consistent with section
101(a)(8)(A)), other than the designated State unit, diagnosis and
treatment of physical and mental impairments, including‑‑

**(A)** corrective surgery or therapeutic treatment necessary to correct
or substantially modify a physical or mental condition that constitutes
a substantial impediment to employment, but is of such a nature that
such correction or modification may reasonably be expected to eliminate
or reduce such impediment to employment within a reasonable length of
time;

**(B)** necessary hospitalization in connection with surgery or
treatment;

**(C)** prosthetic and orthotic devices;

**(D)** eyeglasses and visual services as prescribed by qualified
personnel who meet State licensure laws and who are selected by the
individual;

**(E)** special services (including transplantation and dialysis),
artificial kidneys, and supplies necessary for the treatment of
individuals with end‑stage renal disease; and

**(F)** diagnosis and treatment for mental and emotional disorders by
qualified personnel who meet State licensure laws;

**(7)** maintenance for additional costs incurred while participating in
an assessment for determining eligibility and vocational rehabilitation
needs or while receiving services under an individualized plan for
employment;

**(8)** transportation, including adequate training in the use of public
transportation vehicles and systems, that is provided in connection with
the provision of any other service described in this section and needed
by the individual to achieve an employment outcome;

**(9)** on‑the‑job or other related personal assistance services
provided while an individual is receiving other services described in
this section;

**(10)** interpreter services provided by qualified personnel for
individuals who are deaf or hard of hearing, and reader services for
individuals who are determined to be blind, after an examination by
qualified personnel who meet State licensure laws;

**(11)** rehabilitation teaching services, and orientation and mobility
services, for individuals who are blind;

**(12)** occupational licenses, tools, equipment, and initial stocks and
supplies;

**(13)** technical assistance and other consultation services to conduct
market analyses, develop business plans, and otherwise provide
resources, to the extent such resources are authorized to be provided
through the statewide workforce investment system, to eligible
individuals who are pursuing self‑employment or telecommuting or
establishing a small business operation as an employment outcome;

**(14)** rehabilitation technology, including telecommunications,
sensory, and other technological aids and devices;

**(15)** transition services for students with disabilities, that
facilitate the achievement of the employment outcome identified in the
individualized plan for employment;

**(16)** supported employment services;

**(17)** services to the family of an individual with a disability
necessary to assist the individual to achieve an employment outcome; and

**(18)** specific post‑employment services necessary to assist an
individual with a disability to, retain, regain, or advance in
employment.

**(b)** **Vocational Rehabilitation Services for Groups of Individuals**

Vocational rehabilitation services provided for the benefit of groups of
individuals with disabilities may also include the following:

**(1)** In the case of any type of small business operated by
individuals with significant disabilities the operation of which can be
improved by management services and supervision provided by the
designated State agency, the provision of such services and supervision,
along or together with the acquisition by the designated State agency of
vending facilities or other equipment and initial stocks and supplies.

**(2)(A)** The establishment, development, or improvement of community
rehabilitation programs, including, under special circumstances, the
construction of a facility. Such programs shall be used to provide
services that promote integration and competitive employment.

**(B)** The provision of other services, that promise to contribute
substantially to the rehabilitation of a group of individuals but that
are not related directly to the individualized plan for employment of
any 1 individual with a disability.

**(3)** The use of telecommunications systems (including telephone,
television, satellite, radio, and other similar systems) that have the
potential for substantially improving delivery methods of activities
described in this section and developing appropriate programming to meet
the particular needs of individuals with disabilities.

**(4)(A)** Special services to provide nonvisual access to information
for individuals who are blind, including the use of telecommunications,
Braille, sound recordings, or other appropriate media.

**(B)** Captioned television, films, or video cassettes for individuals
who are deaf or hard of hearing.

**(C)** Tactile materials for individuals who are deaf‑blind.

**(D)** Other special services that provide information through tactile,
vibratory, auditory, and visual media.

**(5)** Technical assistance and support services to businesses that are
not subject to title I of the Americans with Disabilities Act of 1990
(42 U.S.C. 12111 et seq.) and that are seeking to employ individuals
with disabilities.

**(6)** Consultative and technical assistance services to assist
educational agencies in planning for the transition of students with
disabilities from school to post‑school activities, including
employment.

**Sec. 104. Non‑Federal share for establishment of program or
construction**

For the purpose of determining the amount of payments to States for
carrying out part B (or to an Indian tribe under part C), the
non‑Federal share, subject to such limitations and conditions as may be
prescribed in regulations by the Commissioner, shall include
contributions of funds made by any private agency, organization, or
individual to a State or local agency to assist in meeting the costs of
establishment of a community rehabilitation program or construction,
under special circumstances, of a facility for such a program, which
would be regarded as State or local funds except for the condition,
imposed by the contributor, limiting use of such funds to establishment
of such a program or construction of such a facility.

**Sec. 105. State Rehabilitation Council**

**(a)** **Establishment**

**(1)** **In general**

Except as provided in section 101(a)(21)(A)(i), to be eligible to
receive financial assistance under this title a State shall establish a
State Rehabilitation Council (referred to in this section as the
\"Council\") in accordance with this section.

**(2)** **Separate agency for individuals who are blind**

A State that designates a State agency to administer the part of the
State plan under which vocational rehabilitation services are provided
for individuals who are blind under section 101(a)(2)(A)(i) may
establish a separate Council in accordance with this section to perform
the duties of such a Council with respect to such State agency.

**(b)** **Composition and Appointment**

**(1)** **Composition**

**(A)** **In general**

Except in the case of a separate Council established under subsection
(a)(2), the Council shall be composed of‑‑

**(i)** at least one representative of the Statewide Independent Living
Council established under section 705, which representative may be the
chairperson or other designee of the Council;

**(ii)** at least one representative of a parent training and
information center established pursuant to section 671 of the
Individuals with Disabilities Education Act;

**(iii)** at least one representative of the client assistance program
established under section 112;

**(iv)** at least one qualified vocational rehabilitation counselor,
with knowledge of and experience with vocational rehabilitation
programs, who shall serve as an ex officio, nonvoting member of the
Council if the counselor is an employee of the designated State agency;

**(v)** at least one representative of community rehabilitation program
service providers;

**(vi)** four representatives of business, industry, and labor;

**(vii)** representatives of disability advocacy groups representing a
cross section of‑‑

**(I)** individuals with physical, cognitive, sensory, and mental
disabilities; and

**(II)** individuals\' representatives of individuals with disabilities
who have difficulty in representing themselves or are unable due to
their disabilities to represent themselves;

**(viii)** current or former applicants for, or recipients of,
vocational rehabilitation services;

**(ix)** in a State in which one or more projects are carried out under
section 121, at least one representative of the directors of the
projects;

**(x)** at least one representative of the State educational agency
responsible for the public education of students with disabilities who
are eligible to receive services under this title and part B of the
Individuals with Disabilities Education Act; and

**(xi)** at least one representative of the State workforce investment
board.

**(B)** **Separate council**

In the case of a separate Council established under subsection (a)(2),
the Council shall be composed of‑‑

**(i)** at least one representative described in subparagraph (A)(i);

**(ii)** at least one representative described in subparagraph (A)(ii);

**(iii)** at least one representative described in subparagraph
(A)(iii);

**(iv)** at least one vocational rehabilitation counselor described in
subparagraph (A)(iv), who shall serve as described in such subparagraph;

**(v)** at least one representative described in subparagraph (A)(v);

**(vi)** four representatives described in subparagraph (A)(vi);

**(vii)** at least one representative of a disability advocacy group
representing individuals who are blind;

**(viii)** at least one individual\'s representative, of an individual
who‑‑

**(I)** is an individual who is blind and has multiple disabilities; and

**(II)** has difficulty in representing himself or herself or is unable
due to disabilities to represent himself or herself;

**(ix)** applicants or recipients described in subparagraph (A)(viii);

**(x)** in a State described in subparagraph (A)(ix), at least one
representative described in such subparagraph;

**(xi)** at least one representative described in subparagraph (A)(x);
and

**(xii)** at least one representative described in subparagraph (A)(xi).

**(C)** **Exception**

In the case of a separate Council established under subsection (a)(2),
any Council that is required by State law, as in effect on the date of
enactment of the Rehabilitation Act Amendments of 1992, to have fewer
than 15 members shall be deemed to be in compliance with subparagraph
(B) if the Council‑‑

**(i)** meets the requirements of subparagraph (B), other than the
requirements of clauses (vi) and (ix) of such subparagraph; and

**(ii)** includes at least‑‑

**(I)** one representative described in subparagraph (B)(vi); and

**(II)** one applicant or recipient described in subparagraph (B)(ix).

**(2)** **Ex officio member**

The Director of the designated State unit shall be an ex officio,
nonvoting member of the Council.

**(3)** **Appointment**

Members of the Council shall be appointed by the Governor or, in the
case of a State that, under State law, vests authority for the
administration of the activities carried out under this Act in an entity
other than the Governor (such as one or more houses of the State
legislature or an independent board), the chief officer of that entity.
The appointing authority shall select members after soliciting
recommendations from representatives of organizations representing a
broad range of individuals with disabilities and organizations
interested in individuals with disabilities. In selecting members, the
appointing authority shall consider, to the greatest extent practicable,
the extent to which minority populations are represented on the Council.

**(4)** **Qualifications**

**(A)** **In general**

A majority of Council members shall be persons who are‑‑

**(i)** individuals with disabilities described in section 7(20)(B); and

**(ii)** not employed by the designated State unit.

**(B)** **Separate council**

In the case of a separate Council established under subsection (a)(2), a
majority of Council members shall be persons who are‑‑

**(i)** blind; and

**(ii)** not employed by the designated State unit.

**(5)** **Chairperson**

**(A)** **In general**

Except as provided in subparagraph (B), the Council shall select a
chairperson from among the membership of the Council.

**(B)** **Designation by chief executive officer**

In States in which the chief executive officer does not have veto power
pursuant to State law, the appointing authority described in paragraph
(3) shall designate a member of the Council to serve as the chairperson
of the Council or shall require the Council to so designate such a
member.

**(6)** **Terms of appointment**

**(A)** **Length of term**

Each member of the Council shall serve for a term of not more than 3
years, except that‑‑

**(i)** a member appointed to fill a vacancy occurring prior to the
expiration of the term for which a predecessor was appointed, shall be
appointed for the remainder of such term; and

**(ii)** the terms of service of the members initially appointed shall
be (as specified by the appointing authority described in paragraph (3))
for such fewer number of years as will provide for the expiration of
terms on a staggered basis.

**(B)** **Number of terms**

No member of the Council, other than a representative described in
clause (iii) or (ix) of paragraph (1)(A), or clause (iii) or (x) of
paragraph (1)(B), may serve more than two consecutive full terms.

**(7)** **Vacancies**

**(A)** **In general**

Except as provided in subparagraph (B), any vacancy occurring in the
membership of the Council shall be filled in the same manner as the
original appointment. The vacancy shall not affect the power of the
remaining members to execute the duties of the Council.

**(B)** **Delegation**

The appointing authority described in paragraph (3) may delegate the
authority to fill such a vacancy to the remaining members of the Council
after making the original appointment.

**(c)** **Functions of Council**

The Council shall, after consulting with the State workforce investment
board‑‑

**(1)** review, analyze, and advise the designated State unit regarding
the performance of the responsibilities of the unit under this title,
particularly responsibilities relating to‑‑

**(A)** eligibility (including order of selection);

**(B)** the extent, scope, and effectiveness of services provided; and

**(C)** functions performed by State agencies that affect or that
potentially affect the ability of individuals with disabilities in
achieving employment outcomes under this title;

**(2)** in partnership with the designated State unit‑‑

**(A)** develop, agree to, and review State goals and priorities in
accordance with section 101(a)(15)(C); and

**(B)** evaluate the effectiveness of the vocational rehabilitation
program and submit reports of progress to the Commissioner in accordance
with section 101(a)(15)(E);

**(3)** advise the designated State agency and the designated State unit
regarding activities authorized to be carried out under this title, and
assist in the preparation of the State plan and amendments to the plan,
applications, reports, needs assessments, and evaluations required by
this title;

**(4)** to the extent feasible, conduct a review and analysis of the
effectiveness of, and consumer satisfaction with‑‑

**(A)** the functions performed by the designated State agency;

**(B)** vocational rehabilitation services provided by State agencies
and other public and private entities responsible for providing
vocational rehabilitation services to individuals with disabilities
under this Act; and

**(C)** employment outcomes achieved by eligible individuals receiving
services under this title, including the availability of health and
other employment benefits in connection with such employment outcomes;

**(5)** prepare and submit an annual report to the Governor and the
Commissioner on the status of vocational rehabilitation programs
operated within the State, and make the report available to the public;

**(6)** to avoid duplication of efforts and enhance the number of
individuals served, coordinate activities with the activities of other
councils within the State, including the Statewide Independent Living
Council established under section 705, the advisory panel established
under section 612(a)(20) of the Individuals with Disabilities Education
Act, the State Council on Developmental Disabilities established under
section 125 of the Developmental Disabilities Assistance and Bill of
Rights Act of 2000, the State mental health planning council established
under section 1914(a) of the Public Health Service Act (42 U.S.C.
300x‑4(a)), and the State workforce investment board;

**(7)** provide for coordination and the establishment of working
relationships between the designated State agency and the Statewide
Independent Living Council and centers for independent living within the
State; and

**(8)** perform such other functions, consistent with the purpose of
this title, as the State Rehabilitation Council determines to be
appropriate, that are comparable to the other functions performed by the
Council.

**(d)** **Resources**

**(1)** **Plan**

The Council shall prepare, in conjunction with the designated State
unit, a plan for the provision of such resources, including such staff
and other personnel, as may be necessary and sufficient to carry out the
functions of the Council under this section. The resource plan shall, to
the maximum extent possible, rely on the use of resources in existence
during the period of implementation of the plan.

**(2)** **Resolution of disagreements**

To the extent that there is a disagreement between the Council and the
designated State unit in regard to the resources necessary to carry out
the functions of the Council as set forth in this section, the
disagreement shall be resolved by the Governor consistent with paragraph
(1).

**(3)** **Supervision and evaluation**

Each Council shall, consistent with State law, supervise and evaluate
such staff and other personnel as may be necessary to carry out its
functions under this section.

**(4)** **Personnel conflict of interest**

While assisting the Council in carrying out its duties, staff and other
personnel shall not be assigned duties by the designated State unit or
any other agency or office of the State, that would create a conflict of
interest.

**(e)** **Conflict of Interest**

No member of the Council shall cast a vote on any matter that would
provide direct financial benefit to the member or otherwise give the
appearance of a conflict of interest under State law.

**(f)** **Meetings**

The Council shall convene at least 4 meetings a year in such places as
it determines to be necessary to conduct Council business and conduct
such forums or hearings as the Council considers appropriate. The
meetings, hearings, and forums shall be publicly announced. The meetings
shall be open and accessible to the general public unless there is a
valid reason for an executive session.

**(g)** **Compensation and Expenses**

The Council may use funds allocated to the Council by the designated
State unit under this title (except for funds appropriated to carry out
the client assistance program under section 112 and funds reserved
pursuant to section 110(c) to carry out part C) to reimburse members of
the Council for reasonable and necessary expenses of attending Council
meetings and performing Council duties (including child care and
personal assistance services), and to pay compensation to a member of
the Council, if such member is not employed or must forfeit wages from
other employment, for each day the member is engaged in performing the
duties of the Council.

**(h)** **Hearings and Forums**

The Council is authorized to hold such hearings and forums as the
Council may determine to be necessary to carry out the duties of the
Council.

**Sec. 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 3
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 1 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.

**Sec. 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 onsite 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)** onsite visits, including onsite 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 onsite 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 United States 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, United States 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,
United States 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, United
States Code.

**(B)** **Substantial evidence**

Section 706 of title 5, United States 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).

**Sec. 108. Expenditure of Certain Amounts**

**(a)** **Expenditure**

Amounts described in subsection (b) may not be expended by a State for
any purpose other than carrying out programs for which the State
receives financial assistance under this title, under part B of title
VI, or under title VII.

**(b)** **Amounts**

The amounts referred to in subsection (a) are amounts provided to a
State under the Social Security Act (42 U.S.C. 301 et seq.) as
reimbursement for the expenditure of payments received by the State from
allotments under section 110 of this Act.

**Sec. 109. Training of Employers with Respect to Americans with
Disabilities Act of 1990**

A State may expend payments received under section 111‑‑

**(1)** to carry out a program to train employers with respect to
compliance with the requirements of title I of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); and

**(2)** to inform employers of the existence of the program and the
availability of the services of the program.

**Part B‑‑Basic Vocational Rehabilitation Services**

**State Allotments**

**Sec. 110. (a)(1)** Subject to the provisions of subsection (c), for
each fiscal year beginning before October 1, 1978, each State shall be
entitled to an allotment of an amount bearing the same ratio to the
amount authorized to be appropriated under section 100(b)(1) for
allotment under this section as the product of‑‑

**(A)** the population of the State; and

**(B)** the square of its allotment percentage, bears to the sum of the
corresponding products for all the States.

**(2)(A)** For each fiscal year beginning on or after October 1, 1978,
each State shall be entitled to an allotment in an amount equal to the
amount such State received under paragraph (1) for the fiscal year
ending September 30, 1978, and an additional amount determined pursuant
to subparagraph (B) of this paragraph.

**(B)** For each fiscal year beginning on or after October 1, 1978, each
State shall be entitled to an allotment, from any amount authorized to
be appropriated for such fiscal year under section 100(b)(1) for
allotment under this section in excess of the amount appropriated under
section 100(b)(1)(A) for the fiscal year ending September 30, 1978, in
an amount equal to the sum of‑‑

**(i)** an amount bearing the same ratio to 50 percent of such excess
amount as the product of the population of the State and the square of
its allotment percentage bears to the sum of the corresponding products
for all the States; and

**(ii)** an amount bearing the same ratio to 50 percent of such excess
amount as the product of the population of the State and its allotment
percentage bears to the sum of the corresponding products for all the
States.

**(3)** The sum of the payment to any State (other than Guam, American
Samoa, the Virgin Islands, and the Commonwealth of the Northern Mariana
Islands) under this subsection for any fiscal year which is less than
one‑third of 1 percent of the amount appropriated under section
100(b)(1), or \$3,000,000, whichever is greater, shall be increased to
that amount, the total of the increases thereby required being derived
by proportionately reducing the allotment to each of the remaining such
States under this subsection, but with such adjustments as may be
necessary to prevent the sum of the allotments made under this
subsection to any such remaining State from being thereby reduced to
less than that amount.

**(b)(1)** Not later than forty‑five days prior to the end of the fiscal
year, the Commissioner shall determine, after reasonable opportunity for
the submission to the Commissioner of comments by the State agency
administering or supervising the program established under this title,
that any payment of an allotment to a State under section 111(a) for any
fiscal year will not be utilized by such State in carrying out the
purposes of this title.

**(2)** As soon as practicable but not later than the end of the fiscal
year, the Commissioner shall make such amount available for carrying out
the purposes of this title to one or more other States to the extent the
Commissioner determines such other State will be able to use such
additional amount during that fiscal year or the subsequent fiscal year
for carrying out such purposes. The Commissioner shall make such amount
available only if such other State will be able to make sufficient
payments from non‑Federal sources to pay for the non‑Federal share of
the cost of vocational rehabilitation services under the State plan for
the fiscal year for which the amount was appropriated.

**(3)** For the purposes of this part, any amount made available to a
State for any fiscal year pursuant to this subsection shall be regarded
as an increase of such State\'s allotment (as determined under the
preceding provisions of this section) for such year.

**(c)(1)** For fiscal year 1987 and for each subsequent fiscal year, the
Commissioner shall reserve from the amount appropriated under section
100(b)(1) for allotment under this section a sum, determined under
paragraph (2), to carry out the purposes of part C.

**(2)** The sum referred to in paragraph (1) shall be, as determined by
the Secretary‑‑

**(A)** not less than three‑quarters of 1 percent and not more than 1.5
percent of the amount referred to in paragraph (1), for fiscal year
1999; and

**(B)** not less than 1 percent and not more than 1.5 percent of the
amount referred to in paragraph (1), for each of fiscal years 2000
through 2003.

**Payments to States**

**Sec. 111. (a)(1)** Except as provided in paragraph (2), from each
State\'s allotment under this part for any fiscal year, the Commissioner
shall pay to a State an amount equal to the Federal share of the cost of
vocational rehabilitation services under the plan for that State
approved under section 101, including expenditures for the
administration of the State plan.

**(2)(A)** The total of payments under paragraph (1) to a State for a
fiscal year may not exceed its allotment under subsection (a) of section
110 for such year.

**(B)** For fiscal year 1994 and each fiscal year thereafter, the amount
otherwise payable to a State for a fiscal year under this section shall
be reduced by the amount by which expenditures from non‑Federal sources
under the State plan under this title for the previous fiscal year are
less than the total of such expenditures for the second fiscal year
preceding the previous fiscal year.

**(C)** The Commissioner may waive or modify any requirement or
limitation under subparagraph (B) or section 101(a)(17) if the
Commissioner determines that a waiver or modification is an equitable
response to exceptional or uncontrollable circumstances affecting the
State.

**(3)(A)** Except as provided in subparagraph (B), the amount of a
payment under this section with respect to any construction project in
any State shall be equal to the same percentage of the cost of such
project as the Federal share that is applicable in the case of
rehabilitation facilities (as defined in section 645(g) of the Public
Health Service Act (42 U.S.C. 291o(a))), in such State.

**(B)** If the Federal share with respect to rehabilitation facilities
in such State is determined pursuant to section 645(b)(2) of such Act
(42 U.S.C. 291o(b)(2)), the percentage of the cost for purposes of this
section shall be determined in accordance with regulations prescribed by
the Commissioner designed to achieve as nearly as practicable results
comparable to the results obtained under such section.

**(b)** The method of computing and paying amounts pursuant to
subsection (a) shall be as follows:

**(1)** The Commissioner shall, prior to the beginning of each calendar
quarter or other period prescribed by the Commissioner, estimate the
amount to be paid to each State under the provisions of such subsection
for such period, such estimate to be based on such records of the State
and information furnished by it, and such other investigation as the
Commissioner may find necessary.

**(2)** The Commissioner shall pay, from the allotment available
therefor, the amount so estimated by the Commissioner for such period,
reduced or increased, as the case may be, by any sum (not previously
adjusted under this paragraph) by which the Commissioner finds that the
estimate of the amount to be paid the State for any prior period under
such subsection was greater or less than the amount which should have
been paid to the State for such prior period under such subsection. Such
payment shall be made prior to audit or settlement by the General
Accounting Office, shall be made through the disbursing facilities of
the Treasury Department, and shall be made in such installments as the
Commissioner may determine.

**Client Assistance Program**

**Sec. 112. (a)** From funds appropriated under subsection (h), the
Secretary shall, in accordance with this section, make grants to States
to establish and carry out client assistance programs to provide
assistance in informing and advising all clients and client applicants
of all available benefits under this Act, and, upon request of such
clients or client applicants, to assist and advocate for such clients or
applicants in their relationships with projects, programs, and services
provided under this Act, including assistance and advocacy in pursuing
legal, administrative, or other appropriate remedies to ensure the
protection of the rights of such individuals under this Act and to
facilitate access to the services funded under this Act through
individual and systemic advocacy. The client assistance program shall
provide information on the available services and benefits under this
Act and title I of the Americans with Disabilities Act of 1990 (42
U.S.C. 12111 et seq.) to individuals with disabilities in the State,
especially with regard to individuals with disabilities who have
traditionally been unserved or underserved by vocational rehabilitation
programs. In providing assistance and advocacy under this subsection
with respect to services under this title, a client assistance program
may provide the assistance and advocacy with respect to services that
are directly related to facilitating the employment of the individual.

**(b)** No State may receive payments from its allotment under this Act
in any fiscal year unless the State has in effect not later than October
1, 1984, a client assistance program which‑‑

**(1)** has the authority to pursue legal, administrative, and other
appropriate remedies to ensure the protection of rights of individuals
with disabilities who are receiving treatments, services, or
rehabilitation under this Act within the State; and

**(2)** meets the requirements of designation under subsection (c).

**(c)(1)(A)** The Governor shall designate a public or private agency to
conduct the client assistance program under this section. Except as
provided in the last sentence of this subparagraph, the Governor shall
designate an agency which is independent of any agency which provides
treatment, services, or rehabilitation to individuals under this Act. If
there is an agency in the State which has, or had, prior to the date of
enactment of the Rehabilitation Amendments of 1984, served as a client
assistance agency under this section and which received Federal
financial assistance under this Act, the Governor may, in the initial
designation, designate an agency which provides treatment, services, or
rehabilitation to individuals with disabilities under this Act.

**(B)(i)** The Governor may not redesignate the agency designated under
subparagraph (A) without good cause and unless‑‑

**(I)** the Governor has given the agency 30 days notice of the
intention to make such redesignation, including specification of the
good cause for such redesignation and an opportunity to respond to the
assertion that good cause has been shown;

**(II)** individuals with disabilities or the individuals\'
representatives have timely notice of the redesignation and opportunity
for public comment; and

**(III)** the agency has the opportunity to appeal to the Commissioner
on the basis that the redesignation was not for good cause.

**(ii)** If, after the date of enactment of the Rehabilitation Act
Amendments of 1998‑‑

**(I)** a designated State agency undergoes any change in the
organizational structure of the agency that results in the creation of 1
or more new State agencies or departments or results in the merger of
the designated State agency with 1 or more other State agencies or
departments; and

**(II)** an agency (including an office or other unit) within the
designated State agency was conducting a client assistance program
before the change under the last sentence of subparagraph (A),the
Governor shall redesignate the agency conducting the program. In
conducting the redesignation, the Governor shall designate to conduct
the program an agency that is independent of any agency that provides
treatment, services, or rehabilitation to individuals with disabilities
under this Act.

**(2)** In carrying out the provisions of this section, the Governor
shall consult with the director of the State vocational rehabilitation
agency, the head of the developmental disability protection and advocacy
agency, and with representatives of professional and consumer
organizations serving individuals with disabilities in the State.

**(3)** The agency designated under this subsection shall be accountable
for the proper use of funds made available to the agency.

**(d)** The agency designated under subsection (c) of this section may
not bring any class action in carrying out its responsibilities under
this section.

**(e)(1)(A)** The Secretary shall allot the sums appropriated for each
fiscal year under this section among the States on the basis of relative
population of each State, except that no State shall receive less than
\$50,000.

**(B)** The Secretary shall allot \$30,000 each to American Samoa, Guam,
the Virgin Islands, and the Commonwealth of the Northern Mariana
Islands.

**(C)** For the purpose of this paragraph, the term \"State\" does not
include American Samoa, Guam, the Virgin Islands, and the Commonwealth
of the Northern Mariana Islands.

**(D)(i)** In any fiscal year that the funds appropriated for such
fiscal year exceed \$7,500,000, the minimum allotment shall be \$100,000
for States and \$45,000 for territories.

**(ii)** For any fiscal year in which the total amount appropriated
under subsection (h) exceeds the total amount appropriated under such
subsection for the preceding fiscal year, the Secretary shall increase
each of the minimum allotments under clause (i) by a percentage that
shall not exceed the percentage increase in the total amount
appropriated under such subsection between the preceding fiscal year and
the fiscal year involved.

**(2)** The amount of an allotment to a State for a fiscal year which
the Secretary determines will not be required by the State during the
period for which it is available for the purpose for which allotted
shall be available for reallotment by the Secretary at appropriate times
to other States with respect to which such a determination has not been
made, in proportion to the original allotments of such States for such
fiscal year, but with such proportionate amount for any of such other
States being reduced to the extent it exceeds the sum the Secretary
estimates such State needs and will be able to use during such period,
and the total of such reduction shall be similarly reallotted among the
States whose proportionate amounts were not so reduced. Any such amount
so reallotted to a State for a fiscal year shall be deemed to be a part
of its allotment for such fiscal year.

**(3)** Except as specifically prohibited by or as otherwise provided in
State law, the Secretary shall pay to the agency designated under
subsection (c) the amount specified in the application approved under
subsection (f).

**(f)** No grant may be made under this section unless the State submits
an application to the Secretary at such time, in such manner, and
containing or accompanied by such information as the Secretary deems
necessary to meet the requirements of this section.

**(g)** The Secretary shall prescribe regulations applicable to the
client assistance program which shall include the following
requirements:

**(1)** No employees of such programs shall, while so employed, serve as
staff or consultants of any rehabilitation project, program, or facility
receiving assistance under this Act in the State.

**(2)** Each program shall be afforded reasonable access to policymaking
and administrative personnel in the State and local rehabilitation
programs, projects, or facilities.

**(3)(A)** Each program shall contain provisions designed to assure that
to the maximum extent possible alternative means of dispute resolution
are available for use at the discretion of an applicant or client of the
program prior to resorting to litigation or formal adjudication to
resolve a dispute arising under this section.

**(B)** In subparagraph (A), the term \"alternative means of dispute
resolution\" means any procedure, including good faith negotiation,
conciliation, facilitation, mediation, fact finding, and arbitration,
and any combination of procedures, that is used in lieu of litigation in
a court or formal adjudication in an administrative forum, to resolve a
dispute arising under this section.

**(4)** For purposes of any periodic audit, report, or evaluation of the
performance of a client assistance program under this section, the
Secretary shall not require such a program to disclose the identity of,
or any other personally identifiable information related to, any
individual requesting assistance under such program.

**(h)** There are authorized to be appropriated such sums as may be
necessary for fiscal years 1999 through 2003 to carry out the provisions
of this section.

**Part C‑‑American Indian Vocational Rehabilitation Services**

**Vocational Rehabilitation Services Grants**

**Sec.** **121. (a)** The Commissioner, in accordance with the
provisions of this part, may make grants to the governing bodies of
Indian tribes located on Federal and State reservations (and consortia
of such governing bodies) to pay 90 percent of the costs of vocational
rehabilitation services for American Indians who are individuals with
disabilities residing on or near such reservations. The non‑Federal
share of such costs may be in cash or in kind, fairly valued, and the
Commissioner may waive such non‑Federal share requirement in order to
carry out the purposes of this Act.

**(b)(1)** No grant may be made under this part for any fiscal year
unless an application therefor has been submitted to and approved by the
Commissioner. The Commissioner may not approve an application unless the
application‑‑

**(A)** is made at such time, in such manner, and contains such
information as the Commissioner may require;

**(B)** contains assurances that the rehabilitation services provided
under this part to American Indians who are individuals with
disabilities residing on or near a reservation in a State shall be, to
the maximum extent feasible, comparable to rehabilitation services
provided under this title to other individuals with disabilities
residing in the State and that, where appropriate, may include services
traditionally used by Indian tribes; and

**(C)** contains assurances that the application was developed in
consultation with the designated State unit of the State.

**(2)** The provisions of sections 5, 6, 7, and 102(a) of the Indian
Self‑Determination and Education Assistance Act shall be applicable to
any application submitted under this part. For purposes of this
paragraph, any reference in any such provision to the Secretary of
Education or to the Secretary of the Interior shall be considered to be
a reference to the Commissioner.

**(3)** Any application approved under this part shall be effective for
not more than 60 months, except as determined otherwise by the
Commissioner pursuant to prescribed regulations. The State shall
continue to provide vocational rehabilitation services under its State
plan to American Indians residing on or near a reservation whenever such
State includes any such American Indians in its State population under
section 110(a)(1).

**(4)** In making grants under this part, the Secretary shall give
priority consideration to applications for the continuation of programs
which have been funded under this part.

**(5)** Nothing in this section may be construed to authorize a separate
service delivery system for Indian residents of a State who reside in
non‑reservation areas.

**(c)** The term \"reservation\" includes Indian reservations, public
domain Indian allotments, former Indian reservations in Oklahoma, and
land held by incorporated Native groups, regional corporations, and
village corporations under the provisions of the Alaska Native Claims
Settlement Act.

**Part D‑‑Vocational Rehabilitation Services Client Information**

**Sec. 131. Data Sharing**

**(a) In General**

**(1)** **Memorandum of understanding**

The Secretary of Education and the Secretary of Health and Human
Services shall enter into a memorandum of understanding for the purposes
of exchanging data of mutual importance‑‑

**(A)** that concern clients of designated State agencies; and

**(B)** that are data maintained either by‑‑

**(i)** the Rehabilitation Services Administration, as required by
section 13; or

**(ii)** the Social Security Administration, from its Summary Earnings
and Records and Master Beneficiary Records.

**(2)** **Employment statistics**

The Secretary of Labor shall provide the Commissioner with employment
statistics specified in section 15 of the Wagner‑Peyser Act, that
facilitate evaluation by the Commissioner of the program carried out
under part B, and allow the Commissioner to compare the progress of
individuals with disabilities who are assisted under the program in
securing, retaining, regaining, and advancing in employment with the
progress made by individuals who are assisted under title I of the
Workforce Investment Act of 1998.

**(b)** **Treatment of Information**

For purposes of the exchange described in subsection (a)(1), the data
described in subsection (a)(1)(B)(ii) shall not be considered return
information (as defined in section 6103(b)(2) of the Internal Revenue
Code of 1986) and, as appropriate, the confidentiality of all client
information shall be maintained by the Rehabilitation Services
Administration and the Social Security Administration.

**TITLE II‑‑RESEARCH AND TRAINING**

**Declaration of Purpose**

**Sec. 200.**

The purpose of this title is to‑‑

**(1)** provide for research, demonstration projects, training, and
related activities to maximize the full inclusion and integration into
society, employment, independent living, family support, and economic
and social self‑sufficiency of individuals with disabilities of all
ages, with particular emphasis on improving the effectiveness of
services authorized under this Act;

**(2)** provide for a comprehensive and coordinated approach to the
support and conduct of such research, demonstration projects, training,
and related activities and to ensure that the approach is in accordance
with the 5‑year plan developed under section 202(h);

**(3)** promote the transfer of rehabilitation technology to individuals
with disabilities through research and demonstration projects relating
to‑‑

**(A)** the procurement process for the purchase of rehabilitation
technology;

**(B)** the utilization of rehabilitation technology on a national
basis;

**(C)** specific adaptations or customizations of products to enable
individuals with disabilities to live more independently; and

**(D)** the development or transfer of assistive technology;

**(4)** ensure the widespread distribution, in usable formats, of
practical scientific and technological information‑‑

**(A)** generated by research, demonstration projects, training, and
related activities; and

**(B)** regarding state‑of‑the‑art practices, improvements in the
services authorized under this Act, rehabilitation technology, and new
knowledge regarding disabilities,

to rehabilitation professionals, individuals with disabilities, and
other interested parties, including the general public;

**(5)** identify effective strategies that enhance the opportunities of
individuals with disabilities to engage in employment, including
employment involving telecommuting and self‑employment; and

**(6)** increase opportunities for researchers who are members of
traditionally underserved populations, including researchers who are
members of minority groups and researchers who are individuals with
disabilities.

**Authorization of Appropriations**

**Sec. 201. (a)** There are authorized to be appropriated‑‑

**(1)** for the purpose of providing for the expenses of the National
Institute on Disability and Rehabilitation Research under section 202,
which shall include the expenses of the Rehabilitation Research Advisory
Council under section 205, and shall not include the expenses of such
Institute to carry out section 204, such sums as may be necessary for
each of fiscal years 1999 through 2003; and

**(2)** to carry out section 204, such sums as may be necessary for each
of fiscal years 1999 through 2003.\`(b) Funds appropriated under this
title shall remain available until expended.

**National Institute on Disability and Rehabilitation Research**

**Sec. 202. (a)(1)**

There is established within the Department of Education a National
Institute on Disability and Rehabilitation Research (hereinafter in this
title referred to as the \"Institute\"), which shall be headed by a
Director (hereinafter in this title referred to as the \"Director\"), in
order to‑‑

**(A)** promote, coordinate, and provide for‑‑

**(i)** research;

**(ii)** demonstration projects and training; and

**(iii)** related activities, with respect to individuals with
disabilities;

**(B)** more effectively carry out activities through the programs under
section 204 and activities under this section;

**(C)** widely disseminate information from the activities described in
subparagraphs (A) and (B); and

**(D)** provide leadership in advancing the quality of life of
individuals with disabilities.

**(2)** In the performance of the functions of the office, the Director
shall be directly responsible to the Secretary or to the same Under
Secretary or Assistant Secretary of the Department of Education to whom
the Commissioner is responsible under section 3(a).

**(b)** The Director, through the Institute, shall be responsible for‑‑

**(1)** administering the programs described in section 204 and
activities under this section;

**(2)** widely disseminating findings, conclusions, and recommendations,
resulting from research, demonstration projects, training, and related
activities (referred to in this title as \"covered activities\") funded
by the Institute, to‑‑

**(A)** other Federal, State, tribal, and local public agencies;

**(B)** private organizations engaged in research relating to
rehabilitation or providing rehabilitation services;

**(C)** rehabilitation practitioners; and

**(D)** individuals with disabilities and the individuals\'
representatives;

**(3)** coordinating, through the Interagency Committee established by
section 203 of this Act, all Federal programs and policies relating to
research in rehabilitation;

**(4)** widely disseminating educational materials and research results,
concerning ways to maximize the full inclusion and integration into
society, employment, independent living, family support, and economic
and social self‑sufficiency of individuals with disabilities, to‑‑

**(A)** public and private entities, including‑‑

**(i)** elementary and secondary schools (as defined in section 14101 of
the Elementary and Secondary Education Act of 1965; and

**(ii)** institutions of higher education;

**(B)** rehabilitation practitioners;

**(C)** individuals with disabilities (especially such individuals who
are members of minority groups or of populations that are unserved or
underserved by programs under this Act); and

**(D)** the individuals\' representatives for the individuals described
in subparagraph (C);

**(5)(A)** conducting an education program to inform the public about
ways of providing for the rehabilitation of individuals with
disabilities, including information relating to‑‑

**(i)** family care;

**(ii)** self‑care; and

**(iii)** assistive technology devices and assistive technology
services; and

**(B)** as part of the program, disseminating engineering information
about assistive technology devices;

**(6)** conducting conferences, seminars, and workshops (including
in‑service training programs and programs for individuals with
disabilities) concerning advances in rehabilitation research and
rehabilitation technology (including advances concerning the selection
and use of assistive technology devices and assistive technology
services), pertinent to the full inclusion and integration into society,
employment, independent living, family support, and economic and social
self‑sufficiency of individuals with disabilities;

**(7)** taking whatever action is necessary to keep the Congress fully
and currently informed with respect to the implementation and conduct of
programs and activities carried out under this title, including
dissemination activities;

**(8)** producing, in conjunction with the Department of Labor, the
National Center for Health Statistics, the Bureau of the Census, the
Health Care Financing Administration, the Social Security
Administration, the Bureau of Indian Affairs, the Indian Health Service,
and other Federal departments and agencies, as may be appropriate,
statistical reports and studies on the employment, self‑employment,
telecommuting, health, income, and other demographic characteristics of
individuals with disabilities, including information on individuals with
disabilities who live in rural or inner‑city settings, with particular
attention given to underserved populations, and widely disseminating
such reports and studies to rehabilitation professionals, individuals
with disabilities, the individuals\' representatives, and others to
assist in the planning, assessment, and evaluation of vocational and
other rehabilitation services for individuals with disabilities;

**(9)** conducting research on consumer satisfaction with vocational
rehabilitation services for the purpose of identifying effective
rehabilitation programs and policies that promote the independence of
individuals with disabilities and achievement of long‑term vocational
goals;

**(10)** conducting research to examine the relationship between the
provision of specific services and successful, sustained employment
outcomes, including employment outcomes involving self‑employment and
telecommuting; and

**(11)** coordinating activities with the Attorney General regarding the
provision of information, training, or technical assistance regarding
the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) to
ensure consistency with the plan for technical assistance required under
section 506 of such Act (42 U.S.C. 12206).

**(c)(1)** The Director, acting through the Institute or 1 or more
entities funded by the Institute, shall provide for the development and
dissemination of models to address consumer‑driven information needs
related to assistive technology devices and assistive technology
services.

**(2)** The development and dissemination of models may include‑‑

**(A)** convening groups of individuals with disabilities, family
members and advocates of such individuals, commercial producers of
assistive technology, and entities funded by the Institute to develop,
assess, and disseminate knowledge about information needs related to
assistive technology;

**(B)** identifying the types of information regarding assistive
technology devices and assistive technology services that individuals
with disabilities find especially useful;

**(C)** evaluating current models, and developing new models, for
transmitting the information described in subparagraph (B) to consumers
and to commercial producers of assistive technology; and

**(D)** disseminating through 1 or more entities funded by the
Institute, the models described in subparagraph (C) and findings
regarding the information described in subparagraph (B) to consumers and
commercial producers of assistive technology.

**(d)(1)** The Director of the Institute shall be appointed by the
Secretary. The Director shall be an individual with substantial
experience in rehabilitation and in research administration.

**(2)** The Director, subject to the approval of the President, may
appoint, for terms not to exceed three years, without regard to the
provisions of title 5, United States Code, governing appointment in the
competitive service, and may compensate, without regard to the
provisions of chapter 51 and subchapter III of chapter 53 of such title
relating to classification and General Schedule pay rates, such
technical and professional employees of the Institute as the Director
determines to be necessary to accomplish the functions of the Institute
and also appoint and compensate without regard to such provisions, in a
number not to exceed one‑fifth of the number of full‑time, regular
technical and professional employees of the Institute.

**(3)** The Director may obtain the services of consultants, without
regard to the provisions of title 5, United States Code, governing
appointments in the competitive service.

**(e)** The Director, pursuant to regulations which the Secretary shall
prescribe, may establish and maintain fellowships with such stipends and
allowances, including travel and subsistence expenses provided for under
title 5, United States Code, as the Director considers necessary to
procure the assistance of highly qualified research fellows, including
individuals with disabilities, from the United States and foreign
countries.

**(f)(1)** The Director shall provide for scientific peer review of all
applications for financial assistance for research, training, and
demonstration projects over which the Director has authority. The
scientific peer review shall be conducted by individuals who are not
Federal employees, who are scientists or other experts in the
rehabilitation field (including the independent living field), including
knowledgeable individuals with disabilities, and the individuals\'
representatives, and who are competent to review applications for the
financial assistance.

**(2)** In providing for such scientific peer review, the Secretary
shall provide for training, as necessary and appropriate, to facilitate
the effective participation of those individuals selected to participate
in such review.

**(g)** Not less than 90 percent of the funds appropriated under this
title for any fiscal year shall be expended by the Director to carry out
activities under this title through grants, contracts, or cooperative
agreements. Up to 10 percent of the funds appropriated under this title
for any fiscal year may be expended directly for the purpose of carrying
out the functions of the Director under this section.

**(h)(1)** The Director shall‑‑

**(A)** by October 1, 1998 and every fifth October 1 thereafter, prepare
and publish in the Federal Register for public comment a draft of a
5‑year plan that outlines priorities for rehabilitation research,
demonstration projects, training, and related activities and explains
the basis for such priorities;

**(B)** by June 1, 1999, and every fifth June 1 thereafter, after
considering public comments, submit the plan in final form to the
appropriate committees of Congress;

**(C)** at appropriate intervals, prepare and submit revisions in the
plan to the appropriate committees of Congress; and

**(D)** annually prepare and submit progress reports on the plan to the
appropriate committees of Congress.

**(2)** Such plan shall‑‑

**(A)** identify any covered activity that should be conducted under
this section and section 204 respecting the full inclusion and
integration into society of individuals with disabilities, especially in
the area of employment;

**(B)** determine the funding priorities for covered activities to be
conducted under this section and section 204;

**(C)** specify appropriate goals and timetables for covered activities
to be conducted under this section and section 204;

**(D)** be developed by the Director‑‑

**(i)** after consultation with the Rehabilitation Research Advisory
Council established under section 205;

**(ii)** in coordination with the Commissioner;

**(iii)** after consultation with the National Council on Disability
established under title IV, the Secretary of Education, officials
responsible for the administration of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000, and the Interagency Committee
on Disability Research established under section 203; and

**(iv)** after full consideration of the input of individuals with
disabilities and the individuals\' representatives, organizations
representing individuals with disabilities, providers of services
furnished under this Act, researchers in the rehabilitation field, and
any other persons or entities the Director considers to be appropriate;

**(E)** specify plans for widespread dissemination of the results of
covered activities, in accessible formats, to rehabilitation
practitioners, individuals with disabilities, and the individuals\'
representatives; and

**(F)** specify plans for widespread dissemination of the results of
covered activities that concern individuals with disabilities who are
members of minority groups or of populations that are unserved or
underserved by programs carried out under this Act.

**(i)** In order to promote cooperation among Federal departments and
agencies conducting research programs, the Director shall consult with
the administrators of such programs, and with the Interagency Committee
established by section 203, regarding the design of research projects
conducted by such entities and the results and applications of such
research.

**(j)(1)** The Director shall take appropriate actions to provide for a
comprehensive and coordinated research program under this title. In
providing such a program, the Director may undertake joint activities
with other Federal entities engaged in research and with appropriate
private entities. Any Federal entity proposing to establish any research
project related to the purposes of this Act shall consult, through the
Interagency Committee established by section 203, with the Director as
Chairperson of such Committee and provide the Director with sufficient
prior opportunity to comment on such project.

**(2)** Any person responsible for administering any program of the
National Institutes of Health, the Department of Veterans Affairs, the
National Science Foundation, the National Aeronautics and Space
Administration, the Office of Special Education and Rehabilitative
Services, or of any other Federal entity, shall, through the Interagency
Committee established by section 203, consult and cooperate with the
Director in carrying out such program if the program is related to the
purposes of this title.

**(3)** The Director shall support, directly or by grant or contract, a
center associated with an institution of higher education, for research
and training concerning the delivery of vocational rehabilitation
services to rural areas.

**(k)** The Director shall make grants to institutions of higher
education for the training of rehabilitation researchers, including
individuals with disabilities, with particular attention to research
areas that support the implementation and objectives of this Act and
that improve the effectiveness of services authorized under this Act.

**Interagency Committee**

**Sec. 203. (a)(1)** In order to promote coordination and cooperation
among Federal departments and agencies conducting rehabilitation
research programs, there is established within the Federal Government an
Interagency Committee on Disability Research (hereinafter in this
section referred to as the \"Committee\"), chaired by the Director and
comprised of such members as the President may designate, including the
following (or their designees): the Director, the Commissioner of the
Rehabilitation Services Administration, the Assistant Secretary for
Special Education and Rehabilitative Services, the Secretary of
Education, the Secretary of Veterans Affairs, the Director of the
National Institutes of Health, the Director of the National Institute of
Mental Health, the Administrator of the National Aeronautics and Space
Administration, the Secretary of Transportation, the Assistant Secretary
of the Interior for Indian Affairs, the Director of the Indian Health
Service, and the Director of the National Science Foundation.

**(2)** The Committee shall meet not less than four times each year.

**(b)** After receiving input from individuals with disabilities and the
individuals\' representatives, the Committee shall identify, assess, and
seek to coordinate all Federal programs, activities, and projects, and
plans for such programs, activities, and projects with respect to the
conduct of research related to rehabilitation of individuals with
disabilities.

**(c)** The Committee shall annually submit to the President and to the
appropriate committees of the Congress a report making such
recommendations as the Committee deems appropriate with respect to
coordination of policy and development of objectives and priorities for
all Federal programs relating to the conduct of research related to
rehabilitation of individuals with disabilities.

**Research and Other Covered Activities**

**Sec. 204. (a)(1)** To the extent consistent with priorities
established in the 5‑year plan described in section 202(h), the Director
may make grants to and contracts with States and public or private
agencies and organizations, including institutions of higher education,
Indian tribes, and tribal organizations, to pay part of the cost of
projects for the purpose of planning and conducting research,
demonstration projects, training, and related activities, the purposes
of which are to develop methods, procedures, and rehabilitation
technology, that maximize the full inclusion and integration into
society, employment, independent living, family support, and economic
and social self‑sufficiency of individuals with disabilities, especially
individuals with the most significant disabilities, and improve the
effectiveness of services authorized under this Act.

**(2)(A)** In carrying out this section, the Director shall emphasize
projects that support the implementation of titles I, III, V, VI, and
VII, including projects addressing the needs described in the State
plans submitted under section 101 or 704 by State agencies.

**(B)** Such projects, as described in the State plans submitted by
State agencies, may include‑‑

**(i)** medical and other scientific, technical, methodological, and
other investigations into the nature of disability, methods of analyzing
it, and restorative techniques, including basic research where related
to rehabilitation techniques or services;

**(ii)** studies and analysis of industrial, vocational, social,
recreational, psychiatric, psychological, economic, and other factors
affecting rehabilitation of individuals with disabilities;

**(iii)** studies and analysis of special problems of individuals who
are homebound and individuals who are institutionalized;

**(iv)** studies, analyses, and demonstrations of architectural and
engineering design adapted to meet the special needs of individuals with
disabilities;

**(v)** studies, analyses, and other activities related to supported
employment;

**(vi)** related activities which hold promise of increasing knowledge
and improving methods in the rehabilitation of individuals with
disabilities and individuals with the most significant disabilities,
particularly individuals with disabilities, and individuals with the
most significant disabilities, who are members of populations that are
unserved or underserved by programs under this Act; and

**(vii)** studies, analyses, and other activities related to job
accommodations, including the use of rehabilitation engineering and
assistive technology.

**(b)(1)** In addition to carrying out projects under subsection (a),
the Director may make grants under this subsection (referred to in this
subsection as \"research grants\") to pay part or all of the cost of the
research or other specialized covered activities described in paragraphs
(2) through (18). A research grant made under any of paragraphs (2)
through (18) may only be used in a manner consistent with priorities
established in the 5‑year plan described in section 202(h).

**(2)(A)** Research grants may be used for the establishment and support
of Rehabilitation Research and Training Centers, for the purpose of
providing an integrated program of research, which Centers shall‑‑

**(i)** be operated in collaboration with institutions of higher
education or providers of rehabilitation services or other appropriate
services; and

**(ii)** serve as centers of national excellence and national or
regional resources for providers and individuals with disabilities and
the individuals\' representatives.

**(B)** The Centers shall conduct research and training activities by‑‑

**(i)** conducting coordinated and advanced programs of research in
rehabilitation targeted toward the production of new knowledge that will
improve rehabilitation methodology and service delivery systems,
alleviate or stabilize disabling conditions, and promote maximum social
and economic independence of individuals with disabilities, especially
promoting the ability of the individuals to prepare for, secure, retain,
regain, or advance in employment;

**(ii)** providing training (including graduate, pre‑service, and
in‑service training) to assist individuals to more effectively provide
rehabilitation services;

**(iii)** providing training (including graduate, pre‑service, and
in‑service training) for rehabilitation research personnel and other
rehabilitation personnel; and

**(iv)** serving as an informational and technical assistance resource
to providers, individuals with disabilities, and the individuals\'
representatives, through conferences, workshops, public education
programs, in‑service training programs, and similar activities.

**(C)** The research to be carried out at each such Center may include‑‑

**(i)** basic or applied medical rehabilitation research;

**(ii)** research regarding the psychological and social aspects of
rehabilitation, including disability policy;

**(iii)** research related to vocational rehabilitation;

**(iv)** continuation of research that promotes the emotional, social,
educational, and functional growth of children who are individuals with
disabilities;

**(v)** continuation of research to develop and evaluate interventions,
policies, and services that support families of those children and
adults who are individuals with disabilities; and

**(vi)** continuation of research that will improve services and
policies that foster the productivity, independence, and social
integration of individuals with disabilities, and enable individuals
with disabilities, including individuals with mental retardation and
other developmental disabilities, to live in their communities.

**(D)** Training of students preparing to be rehabilitation personnel
shall be an important priority for such a Center.

**(E)** The Director shall make grants under this paragraph to establish
and support both comprehensive centers dealing with multiple
disabilities and centers primarily focused on particular disabilities.

**(F)** Grants made under this paragraph may be used to provide funds
for services rendered by such a Center to individuals with disabilities
in connection with the research and training activities.

**(G)** Grants made under this paragraph may be used to provide faculty
support for teaching‑‑

**(i)** rehabilitation‑related courses of study for credit; and

**(ii)** other courses offered by the Centers, either directly or
through another entity.

**(H)** The research and training activities conducted by such a Center
shall be conducted in a manner that is accessible to and usable by
individuals with disabilities.

**(I)** The Director shall encourage the Centers to develop practical
applications for the findings of the research of the Centers.

**(J)** In awarding grants under this paragraph, the Director shall take
into consideration the location of any proposed Center and the
appropriate geographic and regional allocation of such Centers.

**(K)** To be eligible to receive a grant under this paragraph, each
such institution or provider described in subparagraph (A) shall‑‑

**(i)** be of sufficient size, scope, and quality to effectively carry
out the activities in an efficient manner consistent with appropriate
State and Federal law; and

**(ii)** demonstrate the ability to carry out the training activities
either directly or through another entity that can provide such
training.

**(L)** The Director shall make grants under this paragraph for periods
of 5 years, except that the Director may make a grant for a period of
less than 5 years if‑‑

**(i)** the grant is made to a new recipient; or

**(ii)** the grant supports new or innovative research.

**(M)** Grants made under this paragraph shall be made on a competitive
basis. To be eligible to receive a grant under this paragraph, a
prospective grant recipient shall submit an application to the Director
at such time, in such manner, and containing such information as the
Director may require.

**(N)** In conducting scientific peer review under section 202(f) of an
application for the renewal of a grant made under this paragraph, the
peer review panel shall take into account the past performance of the
applicant in carrying out the grant and input from individuals with
disabilities and the individuals\' representatives.

**(O)** An institution or provider that receives a grant under this
paragraph to establish such a Center may not collect more than 15
percent of the amount of the grant received by the Center in indirect
cost charges.

**(3)(A)** Research grants may be used for the establishment and support
of Rehabilitation Engineering Research Centers, operated by or in
collaboration with institutions of higher education or nonprofit
organizations, to conduct research or demonstration activities, and
training activities, regarding rehabilitation technology, including
rehabilitation engineering, assistive technology devices, and assistive
technology services, for the purposes of enhancing opportunities for
better meeting the needs of, and addressing the barriers confronted by,
individuals with disabilities in all aspects of their lives.

**(B)** In order to carry out the purposes set forth in subparagraph
(A), such a Center shall carry out the research or demonstration
activities by‑‑

**(i)** developing and disseminating innovative methods of applying
advanced technology, scientific achievement, and psychological and
social knowledge to‑‑

**(I)** solve rehabilitation problems and remove environmental barriers
through planning and conducting research, including cooperative research
with public or private agencies and organizations, designed to produce
new scientific knowledge, and new or improved methods, equipment, and
devices; and

**(II)** study new or emerging technologies, products, or environments,
and the effectiveness and benefits of such technologies, products, or
environments;

**(ii)** demonstrating and disseminating‑‑

**(I)** innovative models for the delivery, to rural and urban areas, of
cost‑effective rehabilitation technology services that promote
utilization of assistive technology devices; and

**(II)** other scientific research to assist in meeting the employment
and independent living needs of individuals with significant
disabilities; or

**(iii)** conducting research or demonstration activities that
facilitate service delivery systems change by demonstrating, evaluating,
documenting, and disseminating‑‑

**(I)** consumer responsive and individual and family‑centered
innovative models for the delivery to both rural and urban areas, of
innovative cost‑effective rehabilitation technology services that
promote utilization of rehabilitation technology; and

**(II)** other scientific research to assist in meeting the employment
and independent living needs of, and addressing the barriers confronted
by, individuals with disabilities, including individuals with
significant disabilities.

**(C)** To the extent consistent with the nature and type of research or
demonstration activities described in subparagraph (B), each Center
established or supported through a grant made available under this
paragraph shall‑‑

**(i)** cooperate with programs established under the Assistive
Technology Act of 1998 and other regional and local programs to provide
information to individuals with disabilities and the individuals\'
representatives to‑‑

**(I)** increase awareness and understanding of how rehabilitation
technology can address their needs; and

**(II)** increase awareness and understanding of the range of options,
programs, services, and resources available, including financing options
for the technology and services covered by the area of focus of the
Center;

**(ii)** provide training opportunities to individuals, including
individuals with disabilities, to become researchers of rehabilitation
technology and practitioners of rehabilitation technology in conjunction
with institutions of higher education and nonprofit organizations; and

**(iii)** respond, through research or demonstration activities, to the
needs of individuals with all types of disabilities who may benefit from
the application of technology within the area of focus of the Center.

**(D)(i)** In establishing Centers to conduct the research or
demonstration activities described in subparagraph (B)(iii), the
Director may establish one Center in each of the following areas of
focus:

**(I)** Early childhood services, including early intervention and
family support.

**(II)** Education at the elementary and secondary levels, including
transition from school to postschool activities.

**(III)** Employment, including supported employment, and reasonable
accommodations and the reduction of environmental barriers as required
by the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.)
and title V.

**(IV)** Independent living, including transition from institutional to
community living, maintenance of community living on leaving the work
force, self‑help skills, and activities of daily living.

**(ii)** Each Center conducting the research or demonstration activities
described in subparagraph (B)(iii) shall have an advisory committee, of
which the majority of members are individuals with disabilities who are
users of rehabilitation technology, and the individuals\'
representatives.

**(E)** Grants made under this paragraph shall be made on a competitive
basis and shall be for a period of 5 years, except that the Director may
make a grant for a period of less than 5 years if‑‑

**(i)** the grant is made to a new recipient; or

**(ii)** the grant supports new or innovative research.

**(F)** To be eligible to receive a grant under this paragraph, a
prospective grant recipient shall submit an application to the Director
at such time, in such manner, and containing such information as the
Director may require.

**(G)** Each Center established or supported through a grant made
available under this paragraph shall‑‑

**(i)** cooperate with State agencies and other local, State, regional,
and national programs and organizations developing or delivering
rehabilitation technology, including State programs funded under the
Assistive Technology Act of 1998; and

**(ii)** prepare and submit to the Director as part of an application
for continuation of a grant, or as a final report, a report that
documents the outcomes of the program of the Center in terms of both
short‑ and long‑term impact on the lives of individuals with
disabilities, and such other information as may be requested by the
Director.

**(4)(A)** Research grants may be used to conduct a program for spinal
cord injury research, including conducting such a program by making
grants to public or private agencies and organizations to pay part or
all of the costs of special projects and demonstration projects for
spinal cord injuries, that will‑‑

**(i)** ensure widespread dissemination of research findings among all
Spinal Cord Injury Centers, to rehabilitation practitioners, individuals
with spinal cord injury, the individuals\' representatives, and
organizations receiving financial assistance under this paragraph;

**(ii)** provide encouragement and support for initiatives and new
approaches by individual and institutional investigators; and

**(iii)** establish and maintain close working relationships with other
governmental and voluntary institutions and organizations engaged in
similar efforts in order to unify and coordinate scientific efforts,
encourage joint planning, and promote the interchange of data and
reports among spinal cord injury investigations.

**(B)** Any agency or organization carrying out a project or
demonstration project assisted by a grant under this paragraph that
provides services to individuals with spinal cord injuries shall‑‑

**(i)** establish, on an appropriate regional basis, a multidisciplinary
system of providing vocational and other rehabilitation services,
specifically designed to meet the special needs of individuals with
spinal cord injuries, including acute care as well as periodic inpatient
or outpatient followup and services;

**(ii)** demonstrate and evaluate the benefits to individuals with
spinal cord injuries served in, and the degree of cost‑effectiveness of,
such a regional system;

**(iii)** demonstrate and evaluate existing, new, and improved methods
and rehabilitation technology essential to the care, management, and
rehabilitation of individuals with spinal cord injuries; and

**(iv)** demonstrate and evaluate methods of community outreach for
individuals with spinal cord injuries and community education in
connection with the problems of such individuals in areas such as
housing, transportation, recreation, employment, and community
activities.

**(C)** In awarding grants under this paragraph, the Director shall take
into account the location of any proposed Spinal Cord Injury Center and
the appropriate geographic and regional allocation of such Centers.

**(5)** Research grants may be used to conduct a program for end‑stage
renal disease research, to include support of projects and
demonstrations for providing special services (including transplantation
and dialysis), artificial kidneys, and supplies necessary for the
rehabilitation of individuals with such disease and which will‑‑

**(A)** ensure dissemination of research findings;

**(B)** provide encouragement and support for initiatives and new
approaches by individuals and institutional investigators; and

**(C)** establish and maintain close working relationships with other
governmental and voluntary institutions and organizations engaged in
similar efforts, in order to unify and coordinate scientific efforts,
encourage joint planning, and promote the interchange of data and
reports among investigators in the field of end‑stage renal disease. No
person shall be selected to participate in such program who is eligible
for services for such disease under any other provision of law.

**(6)** Research grants may be used to conduct a program for
international rehabilitation research, demonstration, and training for
the purpose of developing new knowledge and methods in the
rehabilitation of individuals with disabilities in the United States,
cooperating with and assisting in developing and sharing information
found useful in other nations in the rehabilitation of individuals with
disabilities, and initiating a program to exchange experts and technical
assistance in the field of rehabilitation of individuals with
disabilities with other nations as a means of increasing the levels of
skill of rehabilitation personnel.

**(7)** Research grants may be used to conduct a research program
concerning the use of existing telecommunications systems (including
telephone, television, satellite, radio, and other similar systems)
which have the potential for substantially improving service delivery
methods, and the development of appropriate programming to meet the
particular needs of individuals with disabilities.

**(8)** Research grants may be used to conduct a program of joint
projects with the National Institutes of Health, the National Institute
of Mental Health, the Health Services Administration, the Administration
on Aging, the National Science Foundation, the Veterans\'
Administration, the Department of Health and Human Services, the
National Aeronautics and Space Administration, other Federal agencies,
and private industry in areas of joint interest involving
rehabilitation.

**(9)** Research grants may be used to conduct a program of research
related to the rehabilitation of children, or older individuals, who are
individuals with disabilities, including older American Indians who are
individuals with disabilities. Such research program may include
projects designed to assist the adjustment of, or maintain as residents
in the community, older workers who are individuals with disabilities on
leaving the work force.

**(10)** Research grants may be used to conduct a research program to
develop and demonstrate innovative methods to attract and retain
professionals to serve in rural areas in the rehabilitation of
individuals with disabilities, including individuals with significant
disabilities.

**(11)** Research grants may be used to conduct a model research and
demonstration project designed to assess the feasibility of establishing
a center for producing and distributing to individuals who are deaf or
hard of hearing captioned video cassettes providing a broad range of
educational, cultural, scientific, and vocational programming.

**(12)** Research grants may be used to conduct a model research and
demonstration program to develop innovative methods of providing
services for preschool age children who are individuals with
disabilities, including‑‑

**(A)** early intervention, assessment, parent counseling, infant
stimulation, early identification, diagnosis, and evaluation of children
who are individuals with significant disabilities up to the age of five,
with a special emphasis on children who are individuals with significant
disabilities up to the age of three;

**(B)** such physical therapy, language development, pediatric, nursing,
psychological, and psychiatric services as are necessary for such
children; and

**(C)** appropriate services for the parents of such children, including
psychological and psychiatric services, parent counseling, and training.

**(13)** Research grants may be used to conduct a model research and
training program under which model training centers shall be established
to develop and use more advanced and effective methods of evaluating and
addressing the employment needs of individuals with disabilities,
including programs that‑‑

**(A)** provide training and continuing education for personnel involved
with the employment of individuals with disabilities;

**(B)** develop model procedures for testing and evaluating the
employment needs of individuals with disabilities;

**(C)** develop model training programs to teach individuals with
disabilities skills which will lead to appropriate employment;

**(D)** develop new approaches for job placement of individuals with
disabilities, including new followup procedures relating to such
placement;

**(E)** provide information services regarding education, training,
employment, and job placement for individuals with disabilities; and

**(F)** develop new approaches and provide information regarding job
accommodations, including the use of rehabilitation engineering and
assistive technology.

**(14)** Research grants may be used to conduct a rehabilitation
research program under which financial assistance is provided in order
to‑‑

**(A)** test new concepts and innovative ideas;

**(B)** demonstrate research results of high potential benefits;

**(C)** purchase prototype aids and devices for evaluation;

**(D)** develop unique rehabilitation training curricula; and

**(E)** be responsive to special initiatives of the Director. No single
grant under this paragraph may exceed \$50,000 in any fiscal year and
all payments made under this paragraph in any fiscal year may not exceed
5 percent of the amount available for this section to the National
Institute on Disability and Rehabilitation Research in any fiscal year.
Regulations and administrative procedures with respect to financial
assistance under this paragraph shall, to the maximum extent possible,
be expedited.

**(15)** Research grants may be used to conduct studies of the
rehabilitation needs of American Indian populations and of effective
mechanisms for the delivery of rehabilitation services to Indians
residing on and off reservations.

**(16)** Research grants may be used to conduct a demonstration program
under which one or more projects national in scope shall be established
to develop procedures to provide incentives for the development,
manufacturing, and marketing of orphan technological devices, including
technology transfer concerning such devices, designed to enable
individuals with disabilities to achieve independence and access to
gainful employment.

**(17)(A)** Research grants may be used to conduct a research program
related to quality assurance in the area of rehabilitation technology.

**(B)** Activities carried out under the research program may include‑‑

**(i)** the development of methodologies to evaluate rehabilitation
technology products and services and the dissemination of the
methodologies to consumers and other interested parties;

**(ii)** identification of models for service provider training and
evaluation and certification of the effectiveness of the models;

**(iii)** identification and dissemination of outcome measurement models
for the assessment of rehabilitation technology products and services;
and

**(iv)** development and testing of research‑based tools to enhance
consumer decisionmaking about rehabilitation technology products and
services.

**(18)** Research grants may be used to provide for research and
demonstration projects and related activities that explore the use and
effectiveness of specific alternative or complementary medical practices
for individuals with disabilities. Such projects and activities may
include projects and activities designed to‑‑

**(A)** determine the use of specific alternative or complementary
medical practices among individuals with disabilities and the perceived
effectiveness of the practices;

**(B)** determine the specific information sources, decisionmaking
methods, and methods of payment used by individuals with disabilities
who access alternative or complementary medical services;

**(C)** develop criteria to screen and assess the validity of research
studies of such practices for individuals with disabilities; and

**(D)** determine the effectiveness of specific alternative or
complementary medical practices that show promise for promoting
increased functioning, prevention of secondary disabilities, or other
positive outcomes for individuals with certain types of disabilities, by
conducting controlled research studies.

**(c)(1)** In carrying out evaluations of covered activities under this
section, the Director is authorized to make arrangements for site visits
to obtain information on the accomplishments of the projects.

**(2)** The Director shall not make a grant under this section that
exceeds \$500,000 unless the peer review of the grant application has
included a site visit.

**Rehabilitation Research Advisory Council**

**Sec. 205.**

**(a)** **Establishment**

Subject to the availability of appropriations, the Secretary shall
establish in the Department of Education a Rehabilitation Research
Advisory Council (referred to in this section as the \"Council\")
composed of 12 members appointed by the Secretary.

**(b)** **Duties**

The Council shall advise the Director with respect to research
priorities and the development and revision of the 5‑year plan required
by section 202(h).

**(c)** **Qualifications**

Members of the Council shall be generally representative of the
community of rehabilitation professionals, the community of
rehabilitation researchers, the community of individuals with
disabilities, and the individuals\' representatives. At least one‑half
of the members shall be individuals with disabilities or the
individuals\' representatives.

**(d)** **Terms of Appointment**

**(1)** **Length of term**

Each member of the Council shall serve for a term of up to 3 years,
determined by the Secretary, except that‑‑

**(A)** a member appointed to fill a vacancy occurring prior to the
expiration of the term for which a predecessor was appointed, shall be
appointed for the remainder of such term; and

**(B)** the terms of service of the members initially appointed shall be
(as specified by the Secretary) for such fewer number of years as will
provide for the expiration of terms on a staggered basis.

**(2)** **Number of terms**

No member of the Council may serve more than two consecutive full terms.
Members may serve after the expiration of their terms until their
successors have taken office.

**(e)** **Vacancies**

Any vacancy occurring in the membership of the Council shall be filled
in the same manner as the original appointment for the position being
vacated. The vacancy shall not affect the power of the remaining members
to execute the duties of the Council.

**(f) Payment and Expenses**

**(1) Payment**

Each member of the Council who is not an officer or full‑time employee
of the Federal Government shall receive a payment of \$150 for each day
(including travel time) during which the member is engaged in the
performance of duties for the Council. All members of the Council who
are officers or full‑time employees of the United States shall serve
without compensation in addition to compensation received for their
services as officers or employees of the United States.

**(2) Travel expenses**

Each member of the Council may receive travel expenses, including per
diem in lieu of subsistence, as authorized by section 5703 of title 5,
United States Code, for employees serving intermittently in the
Government service, for each day the member is engaged in the
performance of duties away from the home or regular place of business of
the member.

**(g) Detail of Federal Employees**

On the request of the Council, the Secretary may detail, with or without
reimbursement, any of the personnel of the Department of Education to
the Council to assist the Council in carrying out its duties. Any detail
shall not interrupt or otherwise affect the civil service status or
privileges of the Federal employee.

**(h) Technical Assistance**

On the request of the Council, the Secretary shall provide such
technical assistance to the Council as the Council determines to be
necessary to carry out its duties.

**(i)** **Termination**

Section 14 of the Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply with respect to the Council.

**TITLE III‑‑PROFESSIONAL DEVELOPMENT AND**

**SPECIAL PROJECTS AND DEMONSTRATIONS**

**Sec. 301. Declaration of Purpose and Competitive Basis of Grants and
Contracts**

**(a)** **Purpose**

It is the purpose of this title to authorize grants and contracts to‑‑

**(1)(A)** provide academic training to ensure that skilled personnel
are available to provide rehabilitation services to individuals with
disabilities through vocational, medical, social, and psychological
rehabilitation programs (including supported employment programs),
through economic and business development programs, through independent
living services programs, and through client assistance programs; and

**(B)** provide training to maintain and upgrade basic skills and
knowledge of personnel (including personnel specifically trained to
deliver services to individuals with disabilities whose employment
outcome is self‑employment or telecommuting) employed to provide
state‑of‑the‑art service delivery and rehabilitation technology
services;

**(2)** conduct special projects and demonstrations that expand and
improve the provision of rehabilitation and other services (including
those services provided through community rehabilitation programs)
authorized under this Act, or that otherwise further the purposes of
this Act, including related research and evaluation;

**(3)** provide vocational rehabilitation services to individuals with
disabilities who are migrant or seasonal farmworkers;

**(4)** initiate recreational programs to provide recreational
activities and related experiences for individuals with disabilities to
aid such individuals in employment, mobility, socialization,
independence, and community integration; and

**(5)** provide training and information to individuals with
disabilities and the individuals\' representatives, and other
appropriate parties to develop the skills necessary for individuals with
disabilities to gain access to the rehabilitation system and statewide
workforce investment systems and to become active decisionmakers in the
rehabilitation process.

**(b)** **Competitive Basis of Grants and Contracts**

The Secretary shall ensure that all grants and contracts are awarded
under this title on a competitive basis.

**Sec. 302. Training**

**(a)** **Grants and Contracts for Personnel Training**

**(1)** **Authority**

The Commissioner shall make grants to, and enter into contracts with,
States and public or nonprofit agencies and organizations (including
institutions of higher education) to pay part of the cost of projects to
provide training, traineeships, and related activities, including the
provision of technical assistance, that are designed to assist in
increasing the numbers of, and upgrading the skills of, qualified
personnel (especially rehabilitation counselors) who are trained in
providing vocational, medical, social, and psychological rehabilitation
services, who are trained to assist individuals with communication and
related disorders, who are trained to provide other services provided
under this Act, to individuals with disabilities, and who may include‑‑

**(A)** personnel specifically trained in providing employment
assistance to individuals with disabilities through job development and
job placement services;

**(B)** personnel specifically trained to identify, assess, and meet the
individual rehabilitation needs of individuals with disabilities,
including needs for rehabilitation technology;

**(C)** personnel specifically trained to deliver services to
individuals who may benefit from receiving independent living services;

**(D)** personnel specifically trained to deliver services in the client
assistance programs;

**(E)** personnel specifically trained to deliver services, through
supported employment programs, to individuals with a most significant
disability; and

**(F)** personnel specifically trained to deliver services to
individuals with disabilities pursuing self‑employment, business
ownership, and telecommuting; and

**(G)** personnel trained in performing other functions necessary to the
provision of vocational, medical, social, and psychological
rehabilitation services, and other services provided under this Act.

**(2)** **Authority to provide scholarships**

Grants and contracts under paragraph (1) may be expended for
scholarships and may include necessary stipends and allowances.

**(3)** **Related federal statutes**

In carrying out this subsection, the Commissioner may make grants to and
enter into contracts with States and public or nonprofit agencies and
organizations, including institutions of higher education, to furnish
training regarding provisions of Federal statutes, including section
504, title I of the Americans with Disabilities Act of 1990 (42 U.S.C.
12111 et seq.), and the provisions of titles II and XVI of the Social
Security Act (42 U.S.C. 401 et seq. and 1381 et seq.), that are related
to work incentives for individuals with disabilities.

**(4)** **Training for statewide workforce systems personnel**

The Commissioner may make grants to and enter into contracts under this
subsection with States and public or nonprofit agencies and
organizations, including institutions of higher education, to furnish
training to personnel providing services to individuals with
disabilities under title I of the Workforce Investment Act of 1998.
Under this paragraph, personnel may be trained‑‑

**(A)** in evaluative skills to determine whether an individual with a
disability may be served by the State vocational rehabilitation program
or another component of a statewide workforce investment system; or

**(B)** to assist individuals with disabilities seeking assistance
through one‑stop delivery systems described in section 134(c) of the
Workforce Investment Act of 1998.

**(5)** **Joint funding**

Training and other activities provided under paragraph (4) for personnel
may be jointly funded with the Department of Labor, using funds made
available under title I of the Workforce Investment Act of 1998.

**(b)** **Grants and Contracts for Academic Degrees and Academic
Certificate Granting Training Projects**

**(1)** **Authority**

**(A)** **In general**

The Commissioner may make grants to, and enter into contracts with,
States and public or nonprofit agencies and organizations (including
institutions of higher education) to pay part of the costs of academic
training projects to provide training that leads to an academic degree
or academic certificate. In making such grants or entering into such
contracts, the Commissioner shall target funds to areas determined under
subsection (e) to have shortages of qualified personnel.

**(B)** **Types of projects**

Academic training projects described in this subsection may include‑‑

**(i)** projects to train personnel in the areas of assisting and
supporting individuals with disabilities pursuing self‑employment,
business ownership, and telecommuting, and of vocational rehabilitation
counseling, rehabilitation technology, rehabilitation medicine,
rehabilitation nursing, rehabilitation social work, rehabilitation
psychiatry, rehabilitation psychology, rehabilitation dentistry,
physical therapy, occupational therapy, speech pathology and audiology,
physical education, therapeutic recreation, community rehabilitation
programs, or prosthetics and orthotics;

**(ii)** projects to train personnel to provide‑‑

**(I)** services to individuals with specific disabilities or
individuals with disabilities who have specific impediments to
rehabilitation, including individuals who are members of populations
that are unserved or underserved by programs under this Act;

**(II)** job development and job placement services to individuals with
disabilities;

**(III)** supported employment services, including services of
employment specialists for individuals with disabilities;

**(IV)** specialized services for individuals with significant
disabilities; or

**(V)** recreation for individuals with disabilities;

**(iii)** projects to train personnel in other fields contributing to
the rehabilitation of individuals with disabilities; and

**(iv)** projects to train personnel in the use, applications, and
benefits of rehabilitation technology.

**(2)** **Application**

No grant shall be awarded or contract entered into under this subsection
unless the applicant has submitted to the Commissioner an application at
such time, in such form, in accordance with such procedures, and
including such information as the Secretary may require, including‑‑

**(A)** a description of how the designated State unit or units will
participate in the project to be funded under the grant or contract,
including, as appropriate, participation on advisory committees, as
practicum sites, in curriculum development, and in other ways so as to
build closer relationships between the applicant and the designated
State unit and to encourage students to pursue careers in public
vocational rehabilitation programs;

**(B)** the identification of potential employers that provide
employment that meets the requirements of paragraph (5)(A)(i); and

**(C)** an assurance that data on the employment of graduates or
trainees who participate in the project is accurate.

**(3)** **Limitation**

**(A)** **In general**

Except as provided in subparagraph (B), no grant or contract under this
subsection may be used to provide any one course of study to an
individual for a period of more than 4 years.

**(B)** **Exception**

If a grant or contract recipient under this subsection determines that
an individual has a disability which seriously affects the completion of
training under this subsection, the grant or contract recipient may
extend the period referred to in subparagraph (A).

**(4)** **Authority to provide scholarships**

Grants and contracts under paragraph (1) may be expanded to provide
services that include the provision of scholarships and necessary
stipends and allowances.

**(5)** **Agreements**

**(A)** **Contents**

A recipient of a grant or contract under this subsection shall provide
assurances to the Commissioner that each individual who receives a
scholarship, for any academic year beginning after June 1, 1992,
utilizing funds provided under such grant or contract shall enter into
an agreement with the recipient under which the individual shall‑‑

**(i)** maintain employment‑‑

**(I)** in a nonprofit rehabilitation agency or related agency or in a
State rehabilitation agency or related agency, including a professional
corporation or professional practice group through which the individual
has a service arrangement with the designated State agency;

**(II)** on a full‑ or part‑time basis; and

**(III)** for a period of not less than the full‑time equivalent of 2
years for each year for which assistance under this section was received
by the individual, within a period, beginning after the recipient
completes the training for which the scholarship was awarded, of not
more than the sum of the number of years in the period described in
subclause (III) and 2 additional years; and

**(ii)** repay all or part of any scholarship received, plus interest,
if the individual does not fulfill the requirements of clause (i),
except as the Commissioner by regulation may provide for repayment
exceptions and deferrals.

**(B)** **Enforcement**

The Commissioner shall be responsible for the enforcement of each
agreement entered into under subparagraph (A) upon completion of the
training involved under such subparagraph.

**(c)** **Grants to Historically Black Colleges and Universities**

The Commissioner, in carrying out this section, shall make grants to
historically Black colleges and universities and other institutions of
higher education whose minority student enrollment is at least 50
percent of the total enrollment of the institution.

**(d)** **Application**

A grant may not be awarded to a State or other organization under this
section unless the State or organization has submitted an application to
the Commissioner at such time, in such form, in accordance with such
procedures, and containing such information as the Commissioner may
require. Any such application shall include a detailed description of
strategies that will be utilized to recruit and train individuals so as
to reflect the diverse populations of the United States as part of the
effort to increase the number of individuals with disabilities, and
individuals who are from linguistically and culturally diverse
backgrounds, who are available to provide rehabilitation services.

**(e)** **Evaluation and Collection of Data**

The Commissioner shall evaluate the impact of the training programs
conducted under this section, and collect information on the training
needs of, and data on shortages of qualified personnel necessary to
provide services to individuals with disabilities. The Commissioner
shall prepare and submit to Congress, by September 30 of each fiscal
year, a report setting forth and justifying in detail how the funds made
available for training under this section for the fiscal year prior to
such submission are allocated by professional discipline and other
program areas. The report shall also contain findings on such personnel
shortages, how funds proposed for the succeeding fiscal year will be
allocated under the President\'s budget proposal, and how the findings
on personnel shortages justify the allocations.

**(f)** **Grants for the Training of Interpreters**

**(1)** **Authority**

**(A)** **In general**

For the purpose of training a sufficient number of qualified
interpreters to meet the communications needs of individuals who are
deaf or hard of hearing, and individuals who are deaf‑blind, the
Commissioner, acting through a Federal office responsible for deafness
and communicative disorders, may award grants to public or private
nonprofit agencies or organizations to pay part of the costs‑‑

**(i)** for the establishment of interpreter training programs; or

**(ii)** to enable such agencies or organizations to provide financial
assistance for ongoing interpreter training programs.

**(B)** **Geographic areas**

The Commissioner shall award grants under this subsection for programs
in geographic areas throughout the United States that the Commissioner
considers appropriate to best carry out the objectives of this section.

**(C)** **Priority**

In awarding grants under this subsection, the Commissioner shall give
priority to public or private nonprofit agencies or organizations with
existing programs that have a demonstrated capacity for providing
interpreter training services.

**(D)** **Funding** The Commissioner may award grants under this
subsection through the use of‑‑

**(i)** amounts appropriated to carry out this section; or

**(ii)** pursuant to an agreement with the Director of the Office of the
Special Education Programs established under section 603 of the
Individuals with Disabilities Education, amounts appropriated under
section 686 of the Individuals with Disabilities Education Act.

**(2)** **Application**

A grant may not be awarded to an agency or organization under paragraph
(1) unless the agency or organization has submitted an application to
the Commissioner at such time, in such form, in accordance with such
procedures, and containing such information as the Commissioner may
require, including‑‑

**(A)** a description of the manner in which an interpreter training
program will be developed and operated during the 5‑year period
following the date on which a grant is received by the applicant under
this subsection;

**(B)** a demonstration of the applicant\'s capacity or potential for
providing training for interpreters for individuals who are deaf or hard
of hearing, and individuals who are deaf‑blind;

**(C)** assurances that any interpreter trained or retrained under a
program funded under the grant will meet such minimum standards of
competency as the Commissioner may establish for purposes of this
subsection; and

**(D)** such other information as the Commissioner may require.

**(g)** **Technical Assistance and In‑Service Training**

**(1)** **Technical assistance**

The Commissioner is authorized to provide technical assistance to State
designated agencies and community rehabilitation programs, directly or
through contracts with State designated agencies or nonprofit
organizations.

**(2)** **Compensation**

An expert or consultant appointed or serving under contract pursuant to
this section shall be compensated at a rate, subject to approval of the
Commissioner, that shall not exceed the daily equivalent of the rate of
pay for level 4 of the Senior Executive Service Schedule under section
5382 of title 5, United States Code. Such an expert or consultant may be
allowed travel and transportation expenses in accordance with section
5703 of title 5, United States Code.

**(3)** **In‑service training of rehabilitation personnel**

**(A)** **Projects**

Subject to subparagraph (B), at least 15 percent of the sums
appropriated to carry out this section shall be allocated to designated
State agencies to be used, directly or indirectly, for projects for
in‑service training for rehabilitation personnel, consistent with the
needs identified through the comprehensive system for personnel
development required by section 101(a)(7), including projects designed‑‑

**(i)** to address recruitment and retention of qualified rehabilitation
professionals;

**(ii)** to provide for succession planning;

**(iii)** to provide for leadership development and capacity building;
and

**(iv)** for fiscal years 1999 and 2000, to provide training regarding
the Workforce Investment Act of 1998 and the amendments to this Act made
by the Rehabilitation Act Amendments of 1998.

**(B)** **Limitation**

If the allocation to designated State agencies required by subparagraph
(A) would result in a lower level of funding for projects being carried
out on the date of enactment of the Rehabilitation Act Amendments of
1998 by other recipients of funds under this section, the Commissioner
may allocate less than 15 percent of the sums described in subparagraph
(A) to designated State agencies for such in‑service training.

**(h)** **Provision of Information**

The Commissioner, subject to the provisions of section 306, may require
that recipients of grants or contracts under this section provide
information, including data, with regard to the impact of activities
funded under this section.

**(i)** **Authorization of Appropriations**

There are authorized to be appropriated to carry out this section such
sums as may be necessary for each of the fiscal years 1999 through 2003.

**Sec. 303. Demonstration and Training Programs**

**(a)** **Demonstration Projects To Increase Client Choice**

**(1)** **Grants**

The Commissioner may make grants to States and public or nonprofit
agencies and organizations to pay all or part of the costs of projects
to demonstrate ways to increase client choice in the rehabilitation
process, including the selection of providers of vocational
rehabilitation services.

**(2)** **Use of funds**

An entity that receives a grant under this subsection shall use the
grant only‑‑

**(A)** for activities that are directly related to planning, operating,
and evaluating the demonstration projects; and

**(B)** to supplement, and not supplant, funds made available from
Federal and non‑Federal sources for such projects.

**(3)** **Application**

Any eligible entity that desires to receive a grant under this
subsection shall submit an application at such time, in such manner, and
containing such information and assurances as the Commissioner may
require, including‑‑

**(A)** a description of‑‑

**(i)** how the entity intends to promote increased client choice in the
rehabilitation process, including a description, if appropriate, of how
an applicant will determine the cost of any service or product offered
to an eligible client;

**(ii)** how the entity intends to ensure that any vocational
rehabilitation service or related service is provided by a qualified
provider who is accredited or meets such other quality assurance and
cost‑control criteria as the State may establish; and

**(iii)** the outreach activities to be conducted by the applicant to
obtain eligible clients; and

**(B)** assurances that a written plan will be established with the full
participation of the client, which plan shall, at a minimum, include‑‑

**(i)** a statement of the vocational rehabilitation goals to be
achieved;

**(ii)** a statement of the specific vocational rehabilitation services
to be provided, the projected dates for their initiation, and the
anticipated duration of each such service; and

**(iii)** objective criteria, an evaluation procedure, and a schedule,
for determining whether such goals are being achieved.

**(4)** **Award of grants**

In selecting entities to receive grants under paragraph (1), the
Commissioner shall take into consideration‑‑

**(A)** the diversity of strategies used to increase client choice,
including selection among qualified service providers;

**(B)** the geographic distribution of projects; and

**(C)** the diversity of clients to be served.

**(5)** **Records**

Entities that receive grants under paragraph (1) shall maintain such
records as the Commissioner may require and comply with any request from
the Commissioner for such records.

**(6)** **Direct services**

At least 80 percent of the funds awarded for any project under this
subsection shall be used for direct services, as specifically chosen by
eligible clients.

**(7)** **Evaluation**

The Commissioner may conduct an evaluation of the demonstration projects
with respect to the services provided, clients served, client outcomes
obtained, implementation issues addressed, the cost‑effectiveness of the
project, and the effects of increased choice on clients and service
providers. The Commissioner may reserve funds for the evaluation for a
fiscal year from the amounts appropriated to carry out projects under
this section for the fiscal year.

**(8)** **Definitions**

For the purposes of this subsection:

**(A)** **Direct services**

The term \"direct services\" means vocational rehabilitation services,
as described in section 103(a).

**(B)** **Eligible client**

The term \"eligible client\" means an individual with a disability, as
defined in section 7(20)(A), who is not currently receiving services
under an individualized plan for employment established through a
designated State unit.

**(b)** **Special Demonstration Programs**

**(1)** **Grants; contracts**

The Commissioner, subject to the provisions of section 306, may provide
grants to, or enter into contracts with, eligible entities to pay all or
part of the cost of programs that expand and improve the provision of
rehabilitation and other services authorized under this Act or that
further the purposes of the Act, including related research and
evaluation activities.

**(2)** **Eligible entities; terms and conditions**

**(A)** **Eligible entities**

To be eligible to receive a grant, or enter into a contract, under
paragraph (1), an entity shall be a State vocational rehabilitation
agency, community rehabilitation program, Indian tribe or tribal
organization, or other public or nonprofit agency or organization, or as
the Commissioner determines appropriate, a for‑profit organization. The
Commissioner may limit competitions to 1 or more types of organizations
described in this subparagraph.

**(B)** **Terms and conditions**

A grant or contract under paragraph (1) shall contain such terms and
conditions as the Commissioner may require.

**(3)** **Application**

An eligible entity that desires to receive a grant, or enter into a
contract, under paragraph (1) shall submit an application to the
Secretary at such time, in such form, and containing such information
and assurances as the Commissioner may require, including, if the
Commissioner determines appropriate, a description of how the proposed
project or demonstration program‑‑

**(A)** is based on current research findings, which may include
research conducted by the National Institute on Disability and
Rehabilitation Research, the National Institutes of Health, and other
public or private organizations; and

**(B)** is of national significance.

**(4)** **Types of projects**

The programs that may be funded under this subsection may include‑‑

**(A)** special projects and demonstrations of service delivery;

**(B)** model demonstration projects;

**(C)** technical assistance projects;

**(D)** systems change projects;

**(E)** special studies and evaluations; and

**(F)** dissemination and utilization activities.

**(5)** **Priority for competitions**

**(A)** **In general**

In announcing competitions for grants and contracts under this
subsection, the Commissioner shall give priority consideration to‑‑

**(i)** special projects and demonstration programs of service delivery
for adults who are either low‑functioning and deaf or low‑functioning
and hard of hearing;

**(ii)** supported employment, including community‑based supported
employment programs to meet the needs of individuals with the most
significant disabilities or to provide technical assistance to States
and community organizations to improve and expand the provision of
supported employment services; and

**(iii)** model transitional planning services for youths with
disabilities.

**(B)** **Additional competitions**: In announcing competitions for
grants and contracts under this subsection, the Commissioner may require
that applicants address 1 or more of the following:

**(i)** Age ranges.

**(ii)** Types of disabilities.

**(iii)** Types of services.

**(iv)** Models of service delivery.

**(v)** Stage of the rehabilitation process.

**(vi)** The needs of underserved populations, unserved and underserved
areas, individuals with significant disabilities, low‑incidence
disability population or individuals residing in federally designated
empowerment zones and enterprise communities.

**(vii)** Expansion of employment opportunities for individuals with
disabilities.

**(viii)** Systems change projects to promote meaningful access of
individuals with disabilities to employment‑related services under title
I of the Workforce Investment Act of 1998 and under other Federal laws.

**(ix)** Innovative methods of promoting achievement of high‑quality
employment outcomes.

**(x)** The demonstration of the effectiveness of early intervention
activities in improving employment outcomes.

**(xi)** Alternative methods of providing affordable transportation
services to individuals with disabilities who are employed, seeking
employment, or receiving vocational rehabilitation services from public
or private organizations and who reside in geographic areas in which
public transportation or paratransit service is not available.

**(6)** **Use of funds for continuation awards**

The Commissioner may use funds made available to carry out this section
for continuation awards for projects that were funded under sections 12
and 311 (as such sections were in effect on the day before the date of
the enactment of the Rehabilitation Act Amendments of 1998).

**(c)** **Parent Information and Training Program**

**(1)** **Grants**

The Commissioner is authorized to make grants to private nonprofit
organizations for the purpose of establishing programs to provide
training and information to enable individuals with disabilities, and
the parents, family members, guardians, advocates, or other authorized
representatives of the individuals to participate more effectively with
professionals in meeting the vocational, independent living, and
rehabilitation needs of individuals with disabilities. Such grants shall
be designed to meet the unique training and information needs of the
individuals described in the preceding sentence, who live in the area to
be served, particularly those who are members of populations that have
been unserved or underserved by programs under this Act.

**(2)** **Use of grants**

An organization that receives a grant to establish training and
information programs under this subsection shall use the grant to assist
individuals with disabilities, and the parents, family members,
guardians, advocates, or authorized representatives of the individuals‑‑

**(A)** to better understand vocational rehabilitation and independent
living programs and services;

**(B)** to provide followup support for transition and employment
programs;

**(C)** to communicate more effectively with transition and
rehabilitation personnel and other relevant professionals;

**(D)** to provide support in the development of the individualized plan
for employment;

**(E)** to provide support and expertise in obtaining information about
rehabilitation and independent living programs, services, and resources
that are appropriate; and

**(F)** to understand the provisions of this Act, particularly
provisions relating to employment, supported employment, and independent
living.

**(3)** **Award of grants**

The Commissioner shall ensure that grants under this subsection‑‑

**(A)** shall be distributed geographically to the greatest extent
possible throughout all States; and

**(B)** shall be targeted to individuals with disabilities, and the
parents, family members, guardians, advocates, or authorized
representatives of the individuals, in both urban and rural areas or on
a State or regional basis.

**(4)** **Eligible organizations**

In order to receive a grant under this subsection, an organization‑‑

**(A)** shall submit an application to the Commissioner at such time, in
such manner, and containing such information as the Commissioner may
require, including information demonstrating the capacity and expertise
of the organization‑‑

**(i)** to coordinate training and information activities with Centers
for Independent Living;

**(ii)** to coordinate and work closely with parent training and
information centers established pursuant to section 671 of the
Individuals with Disabilities Education Act; and

**(iii)** to effectively conduct the training and information activities
authorized under this subsection;

**(B)(i)** shall be governed by a board of directors‑‑

**(I)** that includes professionals in the field of vocational
rehabilitation; and

**(II)** on which a majority of the members are individuals with
disabilities or the parents, family members, guardians, advocates, or
authorized representatives of the individuals; or

**(ii)(I)** shall have a membership that represents the interests of
individuals with disabilities; and

**(II)** shall establish a special governing committee that meets the
requirements specified in subclauses (I) and (II) of clause (i) to
operate a training and information program under this subsection; and

**(C)** shall serve individuals with a full range of disabilities, and
the parents, family members, guardians, advocates, or authorized
representatives of the individuals.

**(5)** **Consultation**

Each organization carrying out a program receiving assistance under this
subsection shall consult with appropriate agencies that serve or assist
individuals with disabilities, and the parents, family members,
guardians, advocates, or authorized representatives of the individuals,
located in the jurisdiction served by the program.

**(6)** **Coordination**

The Commissioner shall provide coordination and technical assistance by
grant or cooperative agreement for establishing, developing, and
coordinating the training and information programs. To the extent
practicable, such assistance shall be provided by the parent training
and information centers established pursuant to section 671 of the
Individuals with Disabilities Education Act.

**(7)** **Review**

**(A)** **Quarterly review**

The board of directors or special governing committee of an organization
receiving a grant under this subsection shall meet at least once in each
calendar quarter to review the training and information program, and
each such committee shall directly advise the governing board regarding
the views and recommendations of the committee.

**(B)** **Review for grant renewal**

If a nonprofit private organization requests the renewal of a grant
under this subsection, the board of directors or the special governing
committee shall prepare and submit to the Commissioner a written review
of the training and information program conducted by the organization
during the preceding fiscal year.

**(d)** **Braille Training Programs**

**(1)** **Establishment**

The Commissioner shall make grants to, and enter into contracts with,
States and public or nonprofit agencies and organizations, including
institutions of higher education, to pay all or part of the cost of
training in the use of braille for personnel providing vocational
rehabilitation services or educational services to youth and adults who
are blind.

**(2)** **Projects**

Such grants shall be used for the establishment or continuation of
projects that may provide‑‑

**(A)** development of braille training materials;

**(B)** in‑service or pre‑service training in the use of braille, the
importance of braille literacy, and methods of teaching braille to youth
and adults who are blind; and

**(C)** activities to promote knowledge and use of braille and nonvisual
access technology for blind youth and adults through a program of
training, demonstration, and evaluation conducted with leadership of
experienced blind individuals, including the use of comprehensive,
state‑of‑the‑art technology.

**(3)** **Application**

To be eligible to receive a grant, or enter into a contract, under
paragraph (1), an agency or organization shall submit an application to
the Commissioner at such time, in such manner, and containing such
information as the Commissioner may require.

**(e)** **Authorization of Appropriations**

There are authorized to be appropriated to carry out this section such
sums as may be necessary for each of the fiscal years 1999 through 2003.

**Sec. 304. Migrant and Seasonal Farmworkers**

**(a)** **Grants**

**(1)** **Authority**

The Commissioner, subject to the provisions of section 306, may make
grants to eligible entities to pay up to 90 percent of the cost of
projects or demonstration programs for the provision of vocational
rehabilitation services to individuals with disabilities who are migrant
or seasonal farmworkers, as determined in accordance with rules
prescribed by the Secretary of Labor, and to the family members who are
residing with such individuals (whether or not such family members are
individuals with disabilities).

**(2)** **Eligible entities**

To be eligible to receive a grant under paragraph (1), an entity shall
be‑‑

**(A)** a State designated agency;

**(B)** a nonprofit agency working in collaboration with a State agency
described in subparagraph (A); or

**(C)** a local agency working in collaboration with a State agency
described in subparagraph (A).

**(3)** **Maintenance and transportation**

**(A)** **In general**

Amounts provided under a grant under this section may be used to provide
for the maintenance of and transportation for individuals and family
members described in paragraph (1) as necessary for the rehabilitation
of such individuals.

**(B)** **Requirement**

Maintenance payments under this paragraph shall be provided in a manner
consistent with any maintenance payments provided to other individuals
with disabilities in the State under this Act.

**(4)** **Assurance of cooperation**

To be eligible to receive a grant under this section an entity shall
provide assurances (satisfactory to the Commissioner) that in the
provision of services under the grant there will be appropriate
cooperation between the grantee and other public or nonprofit agencies
and organizations having special skills and experience in the provision
of services to migrant or seasonal farmworkers or their families.

**(5)** **Coordination with other programs**

The Commissioner shall administer this section in coordination with
other programs serving migrant and seasonal farmworkers, including
programs under title I of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 6301 et seq.), section 330 of the Public Health Service
Act (42 U.S.C. 254b), the Migrant and Seasonal Agricultural Worker
Protection Act (29 U.S.C. 1801 et seq.), and the Workforce Investment
Act of 1998.

**(b)** **Authorization of Appropriations**

There are authorized to be appropriated such sums as may be necessary to
carry out this section, for each of the fiscal years 1999 through 2003.

**Sec. 305. Recreational Programs**

**(a)** **Grants**

**(1)** **Authority**

**(A)** **In general**

The Commissioner, subject to the provisions of section 306, shall make
grants to States, public agencies, and nonprofit private organizations
to pay the Federal share of the cost of the establishment and operation
of recreation programs to provide individuals with disabilities with
recreational activities and related experiences to aid in the
employment, mobility, socialization, independence, and community
integration of such individuals.

**(B)** **Recreation programs**

The recreation programs that may be funded using assistance provided
under a grant under this section may include vocational skills
development, leisure education, leisure networking, leisure resource
development, physical education and sports, scouting and camping, 4‑H
activities, construction of facilities for aquatic rehabilitation
therapy, music, dancing, handicrafts, art, and homemaking. When possible
and appropriate, such programs and activities should be provided in
settings with peers who are not individuals with disabilities.

**(C)** **Design of program**

Programs and activities carried out under this section shall be designed
to demonstrate ways in which such programs assist in maximizing the
independence and integration of individuals with disabilities.

**(2)** **Maximum term of grant**

A grant under this section shall be made for a period of not more than 3
years.

**(3)** **Availability of nongrant resources**

**(A)** **In general**

A grant may not be made to an applicant under this section unless the
applicant provides assurances that, with respect to costs of the
recreation program to be carried out under the grant, the applicant, to
the maximum extent practicable, will make available non‑Federal
resources (in cash or in‑kind) to pay the non‑Federal share of such
costs.

**(B)** **Federal share**

The Federal share of the costs of the recreation programs carried out
under this section shall be‑‑

**(i)** with respect to the first year in which assistance is provided
under a grant under this section, 100 percent;

**(ii)** with respect to the second year in which assistance is provided
under a grant under this section, 75 percent; and

**(iii)** with respect to the third year in which assistance is provided
under a grant under this section, 50 percent.

**(4)** **Application**

To be eligible to receive a grant under this section, a State, agency,
or organization shall submit an application to the Commissioner at such
time, in such manner, and containing such information as the
Commissioner may require, including a description of‑‑

**(A)** the manner in which the findings and results of the project to
be funded under the grant, particularly information that facilitates the
replication of the results of such projects, will be made generally
available; and

**(B)** the manner in which the service program funded under the grant
will be continued after Federal assistance ends.

**(5)** **Level of services**

Recreation programs funded under this section shall maintain, at a
minimum, the same level of services over a 3‑year project period.

**(6)** **Reports by grantees**

**(A)** **Requirement**

The Commissioner shall require that each recipient of a grant under this
section annually prepare and submit to the Commissioner a report
concerning the results of the activities funded under the grant.

**(B)** **Limitation**

The Commissioner may not make financial assistance available to a grant
recipient for a subsequent year until the Commissioner has received and
evaluated the annual report of the recipient under subparagraph (A) for
the current year.

**(b)** **Authorization of Appropriations**

There are authorized to be appropriated to carry out this section, such
sums as may be necessary for each of the fiscal years 1999 through 2003.

**Sec. 306. Measuring of Project Outcomes and Performance**

The Commissioner may require that recipients of grants under this title
submit information, including data, as determined by the Commissioner to
be necessary to measure project outcomes and performance, including any
data needed to comply with the Government Performance and Results Act.

**TITLE IV‑‑NATIONAL COUNCIL ON DISABILITY**

**Establishment of National Council on Disability**

**Sec. 400. (a)(1)**

**(A)** There is established within the Federal Government a National
Council on Disability (hereinafter in this title referred to as the
\"National Council\"), which shall be composed of fifteen members
appointed by the President, by and with the advice and consent of the
Senate.

**(B)** The President shall select members of the National Council after
soliciting recommendations from representatives of‑‑

**(i)** organizations representing a broad range of individuals with
disabilities; and

**(ii)** organizations interested in individuals with disabilities.

**(C)** The members of the National Council shall be individuals with
disabilities, parents or guardians of individuals with disabilities, or
other individuals who have substantial knowledge or experience relating
to disability policy or programs. The members of the National Council
shall be appointed so as to be representative of individuals with
disabilities, national organizations concerned with individuals with
disabilities, providers and administrators of services to individuals
with disabilities, individuals engaged in conducting medical or
scientific research relating to individuals with disabilities, business
concerns, and labor organizations. A majority of the members of the
National Council shall be individuals with disabilities. The members of
the National Council shall be broadly representative of minority and
other individuals and groups.

**(2)** The purpose of the National Council is to promote policies,
programs, practices, and procedures that‑‑

**(A)** guarantee equal opportunity for all individuals with
disabilities, regardless of the nature or severity of the disability;
and

**(B)** empower individuals with disabilities to achieve economic
self‑sufficiency, independent living, and inclusion and integration into
all aspects of society.

**(b)(1)** Each member of the National Council shall serve for a term of
3 years, except that the terms of service of the members initially
appointed after the date of enactment of the Rehabilitation,
Comprehensive Services, and Developmental Disabilities Amendments of
1978 shall be (as specified by the President) for such fewer number of
years as will provide for the expiration of terms on a staggered basis.

**(2)(A)** No member of the National Council may serve more than two
consecutive full terms beginning on the date of commencement of the
first full term on the Council. Members may serve after the expiration
of their terms until their successors have taken office.

**(B)** As used in this paragraph, the term \"full term\" means a term
of 3 years.

**(3)** Any member appointed to fill a vacancy occurring before the
expiration of the term for which such member\'s predecessor was
appointed shall be appointed only for the remainder of such term.

**(c)** The President shall designate the Chairperson from among the
members appointed to the National Council. The National Council shall
meet at the call of the Chairperson, but not less often than four times
each year.

**(d)** Eight members of the National Council shall constitute a quorum
and any vacancy in the National Council shall not affect its power to
function.

**Duties of National Council**

**Sec. 401. (a)** The National Council shall‑‑

**(1)** provide advice to the Director with respect to the policies and
conduct of the National Institute on Disability and Rehabilitation
Research, including ways to improve research concerning individuals with
disabilities and the methods of collecting and disseminating findings of
such research;

**(2)** provide advice to the Commissioner with respect to the policies
of and conduct of the Rehabilitation Services Administration;

**(3)** advise the President, the Congress, the Commissioner, the
appropriate Assistant Secretary of the Department of Education, and the
Director of the National Institute on Disability and Rehabilitation
Research on the development of the programs to be carried out under this
Act;

**(4)** provide advice regarding priorities for the activities of the
Interagency Disability Coordinating Council and review the
recommendations of such Council for legislative and administrative
changes to ensure that such recommendations are consistent with the
purposes of the Council to promote the full integration, independence,
and productivity of individuals with disabilities;

**(5)** review and evaluate on a continuing basis‑‑

**(A)** policies, programs, practices, and procedures concerning
individuals with disabilities conducted or assisted by Federal
departments and agencies, including programs established or assisted
under this Act or under the Developmental Disabilities Assistance and
Bill of Rights Act of 2000; and

**(B)** all statutes and regulations pertaining to Federal programs
which assist such individuals with disabilities;

in order to assess the effectiveness of such policies, programs,
practices, procedures, statutes, and regulations in meeting the needs of
individuals with disabilities;

**(6)** assess the extent to which such policies, programs, practices,
and procedures facilitate or impede the promotion of the policies set
forth in subparagraphs (A) and (B) of section 400(a)(2);

**(7)** gather information about the implementation, effectiveness, and
impact of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101
et seq.);

**(8)** make recommendations to the President, the Congress, the
Secretary, the Director of the National Institute on Disability and
Rehabilitation Research, and other officials of Federal agencies or
other Federal entities, respecting ways to better promote the policies
set forth in section 400(a)(2);

**(9)** provide to the Congress on a continuing basis advice,
recommendations, legislative proposals, and any additional information
that the National Council or the Congress deems appropriate; and

**(10)** review and evaluate on a continuing basis new and emerging
disability policy issues affecting individuals with disabilities at the
Federal, State, and local levels, and in the private sector, including
the need for and coordination of adult services, access to personal
assistance services, school reform efforts and the impact of such
efforts on individuals with disabilities, access to health care, and
policies that operate as disincentives for the individuals to seek and
retain employment.

**(b)(1)** Not later than October 31, 1998, and annually thereafter, the
National Council shall prepare and submit to the President and the
appropriate committees of the Congress a report entitled \"National
Disability Policy: A Progress Report\".

**(2)** The report shall assess the status of the Nation in achieving
the policies set forth in section 400(a)(2), with particular focus on
the new and emerging issues impacting on the lives of individuals with
disabilities. The report shall present, as appropriate, available data
on health, housing, employment, insurance, transportation, recreation,
training, prevention, early intervention, and education. The report
shall include recommendations for policy change.

**(3)** In determining the issues to focus on and the findings,
conclusions, and recommendations to include in the report, the National
Council shall seek input from the public, particularly individuals with
disabilities, representatives of organizations representing a broad
range of individuals with disabilities, and organizations and agencies
interested in individuals with disabilities.

**Compensation of National Council Members**

**Sec. 402. (a)** Members of the National Council shall be entitled to
receive compensation at a rate equal to the rate of pay for level 4 of
the Senior Executive Service Schedule under section 5382 of title 5,
United States Code, including travel time, for each day they are engaged
in the performance of their duties as members of the National Council.

**(b)** Members of the National Council who are full‑time officers or
employees of the United States shall receive no additional pay on
account of their service on the National Council except for compensation
for travel expenses as provided under subsection (c) of this section.

**(c)** While away from their homes or regular places of business in the
performance of services for the National Council, members of the
National Council shall be allowed travel expenses, including per diem in
lieu of subsistence, in the same manner as persons employed
intermittently in the Government service are allowed expenses under
section 5703 of title 5, United States Code.

**Staff of National Council**

**Sec. 403. (a)(1)** The Chairperson of the National Council may appoint
and remove, without regard to the provisions of title 5, United States
Code, governing appointments, the provisions of chapter 75 of such title
(relating to adverse actions), the provisions of chapter 77 of such
title (relating to appeals), or the provisions of chapter 51 and
subchapter III of chapter 53 of such title (relating to classification
and General Schedule pay rates), an Executive Director to assist the
National Council to carry out its duties. The Executive Director shall
be appointed from among individuals who are experienced in the planning
or operation of programs for individuals with disabilities.

**(2)** The Executive Director is authorized to hire technical and
professional employees to assist the National Council to carry out its
duties.

**(b)(1)** The National Council may procure temporary and intermittent
services to the same extent as is authorized by section 3109(b) of title
5, United States Code (but at rates for individuals not to exceed the
daily equivalent of the rate of pay for level 4 of the Senior Executive
Service Schedule under section 5382 of title 5, United States Code).

**(2)** The National Council may‑‑

**(A)** accept voluntary and uncompensated services, notwithstanding the
provisions of section 1342 of title 31, United States Code;

**(B)** in the name of the Council, solicit, accept, employ, and dispose
of, in furtherance of this Act, any money or property, real or personal,
or mixed, tangible or nontangible, received by gift, devise, bequest, or
otherwise; and

**(C)** enter into contracts and cooperative agreements with Federal and
State agencies, private firms, institutions, and individuals for the
conduct of research and surveys, preparation of reports and other
activities necessary to the discharge of the Council\'s duties and
responsibilities.

**(3)** Not more than 10 per centum of the total amounts available to
the National Council in each fiscal year may be used for official
representation and reception.

**(c)** The Administrator of General Services shall provide to the
National Council on a reimbursable basis such administrative support
services as the Council may request.

**(d)(1)** It shall be the duty of the Secretary of the Treasury to
invest such portion of the amounts made available under subsection
(a)(2)(B) as is not, in the Secretary\'s judgment, required to meet
current withdrawals. Such investments may be made only in
interest‑bearing obligations of the United States or in obligations
guaranteed as to both principal and interest by the United States.

**(2)** The amounts described in paragraph (1), and the interest on, and
the proceeds from the sale or redemption of, the obligations described
in paragraph (1) shall be available to the National Council to carry out
this title.

**Administrative Powers of National Council**

**Sec. 404. (a)** The National Council may prescribe such bylaws and
rules as may be necessary to carry out its duties under this title.

**(b)** The National Council may hold such hearings, sit and act at such
times and places, take such testimony, and receive such evidence as it
deems advisable.

**(c)** The National Council may appoint advisory committees to assist
the National Council in carrying out its duties. The members thereof
shall serve without compensation.

**(d)** The National Council may use the United States mails in the same
manner and upon the same conditions as other departments and agencies of
the United States.

**(e)** The National Council may use, with the consent of the agencies
represented on the Interagency Disability Coordinating Council, and as
authorized in title V, such services, personnel, information, and
facilities as may be needed to carry out its duties under this title,
with or without reimbursement to such agencies.

**Authorization of Appropriations**

**Sec. 405.**

There are authorized to be appropriated to carry out this title such
sums as may be necessary for each of the fiscal years 1999 through 2003.

**TITLE V - RIGHTS AND ADVOCACY**

**Employment of Individuals with Disabilities**

**Sec. 501. (a)** There is established within the Federal Government an
Interagency Committee on Employees who are Individuals with Disabilities
(hereinafter in this section referred to as the \"Committee\"),
comprised of such members as the President may select, including the
following (or their designees whose positions are Executive Level IV or
higher): the Chairman of the Equal Employment Opportunity Commission,
(hereafter in this section referred to as the \"Commission\"), the
Director of the Office of Personnel Management, the Secretary of
Veterans Affairs, the Secretary of Labor, the Secretary of Education,
and the Secretary of Health and Human Services. Either the Director of
the Office of Personnel Management and the Chairman of the Commission
shall serve as co-chairpersons of the Committee or the Director or
Chairman shall serve as the sole chairperson of the Committee, as the
Director and Chairman jointly determine, from time to time, to be
appropriate. The resources of the President\'s Committees on Employment
of People With Disabilities and on Mental Retardation shall be made
fully available to the Committee. It shall be the purpose and function
of the Committee

**(1)** to provide a focus for Federal and other employment of
individuals with disabilities, and to review, on a periodic basis, in
cooperation with the Commission, the adequacy of hiring, placement, and
advancement practices with respect to individuals with disabilities, by
each department, agency, and instrumentality in the executive branch of
Government, and to insure that the special needs of such individuals are
being met; and

**(2)** to consult with the Commission to assist the Commission to carry
out its responsibilities under subsections (b), (c), and (d) of this
section. On the basis of such review and consultation, the Committee
shall periodically make to the Commission such recommendations for
legislative and administrative changes as it deems necessary or
desirable. The Commission shall timely transmit to the appropriate
committees of Congress any such recommendation.

**(b)** Each department, agency, and instrumentality (including the
United States Postal Service and Postal Rate Office) in the executive
branch shall, within one hundred and eighty days after the date of
enactment of this Act, submit to the Commission and to the Committee an
affirmative action program plan for the hiring, placement, and
advancement of individuals with disabilities in such department, agency,
or instrumentality. Such plan shall include a description of the extent
to which and methods whereby the special needs of employees who are
individuals with disabilities are being met. Such plan shall be updated
annually, and shall be reviewed annually and approved by the Commission,
if the Commission determines, after consultation with the Committee,
that such plan provides sufficient assurances, procedures, and
commitments to provide adequate hiring, placement, and advancement
opportunities for individuals with disabilities.

**(c)** The Commission, after consultation with the Committee, shall
develop and recommend to the Secretary for referral to the appropriate
State agencies, policies and procedures which will facilitate the
hiring, placement, and advancement in employment of individuals who have
received rehabilitation services under State vocational rehabilitation
programs, veterans\' programs, or any other program for individuals with
disabilities, including the promotion of job opportunities for such
individuals. The Secretary shall encourage such State agencies to adopt
and implement such policies and procedures.

**(d)** The Commission, after consultation with the Committee, shall, on
June 30, 1974, and at the end of each subsequent fiscal year, make a
complete report to the appropriate committees of the Congress with
respect to the practices of and achievements in hiring, placement, and
advancement of individuals with disabilities by each department, agency,
and instrumentality and the effectiveness of the affirmative action
programs required by subsection (b) of this section, together with
recommendations as to legislation which have been submitted to the
Commission under subsection (a) of this section, or other appropriate
action to insure the adequacy of such practices. Such report shall also
include an evaluation by the Committee of the effectiveness of the
activities of the Commission under subsection (b) and (c) of this
section.

**(e)** An individual who, as part of an individualized plan for
employment under a State plan approved under this Act, participates in a
program of unpaid work experience in a Federal agency, shall not, by
reason thereof, be considered to be a Federal employee or to be subject
to the provisions of law relating to Federal employment, including those
relating to hours of work, rates of compensation, leaves, unemployment
compensation, and Federal employee benefits.

**(f)(1)** The Secretary of Labor and the Secretary of Education are
authorized and directed to cooperate with the President\'s Committee on
Employment of People With Disabilities in carry out its functions.

**(2)** In selecting personnel to fill all positions on the President\'s
Committee on Employment of People With Disabilities, special
consideration shall be given to qualified individuals with disabilities.

**(g)** The standards used to determine whether this section has been
violated in a complaint alleging nonaffirmative action employment
discrimination under this section shall be the standards applied under
title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111
et seq.) and the provisions of sections 501 through 504, and 510, of the
Americans with Disabilities Act of 1990 (42 U.S.C. 12201-12204 and
12210), as such sections relate to employment.

**Architectural and Transportation Barriers Compliance Board**

**Sec. 502. (a)(1)** There is established within the Federal Government
the Architectural and Transportation Barriers Compliance Board
(hereinafter referred to as the \"Access Board\" which shall be composed
as follows:

**(A)** Thirteen members shall be appointed by the President from among
members of the general public of whom at least a majority shall be
individuals with disabilities.

**(B)** The remaining members shall be heads of each of the following
departments or agencies (or their designees whose positions are
executive level IV or higher):

**(i)** Department of Health and Human Services.

**(ii)** Department of Transportation

**(iii)** Department of Housing and Urban Development

**(iv)** Department of Labor

**(v)** Department of the Interior

**(vi)** Department of Defense

**(vii)** Department of Justice

**(viii)** General Services Administration

**(ix)** Department of Veterans Affairs

**(x)** United States Postal Service

**(xi)** Department of Education

**(xii)** Department of Commerce

The chairperson and vice-chairperson of the Access Board shall be
elected by majority vote of the members of the Access Board to serve for
terms of one year. When the chairperson is a member of the general
public, the vice-chairperson shall be a Federal official; and when the
chairperson is a Federal official, the vice-chairperson shall be a
member of the general public. Upon the expiration of the term as
chairperson of a member who is a Federal official, the subsequent
chairperson shall be a member of the general public; and vice versa.

**(2)(A)(i)** The term of office of each appointed member of the Access
Board shall be 4 years, except as provided in clause (ii). Each year,
the terms of office of at least three appointed members of the Access
Board shall expire.

**(ii)(I)** One member appointed for a term beginning December 4, 1992
shall serve for a term of 3 years.

**(II)** One member appointed for a term beginning December 4, 1992
shall serve for a term of 2 years.

**(III)** One member appointed for a term beginning December 4, 1992
shall serve for a term of 1 year.

**(IV)** Members appointed for terms beginning before December 4, 1992
shall serve for terms of 3 years.

**(B)** A member whose term has expired may continue to serve until a
successor has been appointed.

**(C)** A member appointed to fill a vacancy shall serve for the
remainder of the term to which that member\'s predecessor was appointed.

**(3)** If any appointed member of the Access Board becomes a Federal
employee, such member may continue as a member of the Access Board for
not longer than the sixty-day period beginning on the date the member
becomes a Federal employee.

**(4)** No individual appointed under paragraph (1)(A) of this
subsection who has served as a member of the Access Board may be
reappointed to the Access Board more than once unless such individual
has not served on the Access Board for a period of two years prior to
the effective date of such individual\'s appointment.

**(5)(A)** Members of the Access Board who are not regular full-time
employees of the United States shall, while serving on the business of
the Access Board, be entitled to receive compensation at rates fixed by
the President, but not to exceed the daily equivalent of the rate of pay
for level IV of the Executive Schedule under section 5315 of title 5,
United States Code, including travel time, for each day they are engaged
in the performance of their duties as members of the Access Board; and
shall be entitled to reimbursement for travel, subsistence, and other
necessary expenses incurred by them in carrying out their duties under
this section.

**(B)** Members of the Access Board who are employed by the Federal
Government shall serve without compensation, but shall be reimbursed for
travel, subsistence, and other necessary expenses incurred by them in
carrying out their duties under this section.

**(6)(A)** The Access Board shall establish such bylaws and other rules
as may be appropriate to enable the Access Board to carry out its
functions under this Act.

**(B)** The bylaws shall include quorum requirements. The quorum
requirements shall provide that (i) a proxy may not be counted for
purposes of establishing a quorum, and (ii) not less than half the
members required for a quorum shall be members of the general public
appointed under paragraph (1)(A).

**(b)** It shall be the function of the Access Board to -

**(1)** ensure compliance with the standards prescribed pursuant to the
Act entitled \"An Act to ensure that certain buildings financed with
Federal funds are so designed and constructed as to be accessible to the
physically handicapped\", approved August 12, 1968, (commonly known as
the Architectural Barriers Act of 1968; 42 U.S.C. 4151 et seq.)
(including the application of such Act to the United States Postal
Service), including enforcing all standards under such Act, and ensuring
that all waivers and modifications to the standards are based on
findings of fact and are not inconsistent with the provisions of this
section;

**(2)** develop advisory information for, and provide appropriate
technical assistance to, individuals or entities with rights or duties
under regulations prescribed pursuant to this title or titles II and III
of the Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et seq.
and 12181 et seq.) with respect to overcoming architectural,
transportation, and communication barriers;

**(3)** establish and maintain\--

**(A)** minimum guidelines and requirements for the standards issued
pursuant to the Act commonly known as the Architectural Barriers Act of
1968;

**(B)** minimum guidelines and requirements for the standards issued
pursuant to titles II and III of the Americans with Disabilities Act of
1990;

**(C)** guidelines for accessibility of telecommunications equipment and
customer premises equipment under section 255 of the Telecommunications
Act of 1934 (47 U.S.C. 255); and

**(D)** standards for accessible electronic and information technology
under section 508;

**(4)** promote accessibility throughout all segments of society;

**(5)** investigate and examine alternative approaches to the
architectural, transportation, communication, and attitudinal barriers
confronting individuals with disabilities, particularly with respect to
telecommunications devices, public buildings and monuments, parks and
parklands, public transportation (including air, water, and surface
transportation, whether interstate, foreign, intrastate, or local), and
residential and institutional housing;

**(6)** determine what measures are being taken by Federal, State, and
local governments and by other public or nonprofit agencies to eliminate
the barriers described in paragraph (5);

**(7)** promote the use of the International Accessibility Symbol in all
public facilities that are in compliance with the standards prescribed
by the Administrator of General Services, the Secretary of Defense, and
the Secretary of Housing and Urban Development pursuant to the Act
commonly known as the Architectural Barriers Act of 1968;

**(8)** make to the President and to the Congress reports that shall
describe in detail the results of its investigations under paragraphs
(5) and (6);

**(9)** make to the President and to the Congress such recommendations
for legislative changes as the Access Board determines to be necessary
or desirable to eliminate the barriers described in paragraph (5);

**(10)** ensure that public conveyances, including rolling stock, are
readily accessible to, and usable by, individuals with physical
disabilities; and

**(11)** carry out the responsibilities specified for the Access Board
in section 508.

**(c)** The Access Board shall also

**(1)(A)** determine how and to what extent transportation barriers
impede the mobility of individuals with disabilities and aged
individuals with disabilities and consider ways in which travel expenses
in connection with transportation to and from work for individuals with
disabilities can be met or subsidized when such individuals are unable
to use mass transit systems or need special equipment in private
transportation, and

**(B)** consider the housing needs of individuals with disabilities;

**(2)** determine what measures are being taken, especially by public
and other nonprofit agencies and groups having an interest in and a
capacity to deal with such problems,

**(A)** to eliminate barriers from public transportation systems
(including vehicles used in such systems), and to prevent their
incorporation in new or expended transportation systems, and

**(B)** to make housing available and accessible to individuals with
disabilities or to meet sheltered housing needs; and (3) prepare plans
and proposals for such further actions as may be necessary to the goals
of adequate transportation and housing for individuals with
disabilities, including proposals for bringing together in a cooperative
effort, agencies, organizations, and groups already working toward such
goals or whose cooperation is essential to effective and comprehensive
action.

**(d)(1)** The Access Board shall conduct investigations, hold public
hearings, and issue such orders as it deems necessary to ensure
compliance with the provisions of the Acts cited in subsection (b).
Except as provided in paragraph (3) of subsection (e), the provisions of
subchapter II of chapter 5, and chapter 7 of title 5, United States
Code, shall apply to procedures under this subsection, and an order of
compliance issued by the Access Board shall be the final order for
purposes of judicial review. Any such order affecting any Federal
department, agency, or instrumentality of the United States shall be
final and binding on such department, agency, or instrumentality. An
order of compliance may include the withholding or suspension of Federal
funds with respect to any building or public conveyance or rolling stock
found not to be in compliance with standards enforced under this
section. Pursuant to chapter 7 of title 5, United States Code, any
complainant or participant in a proceeding under this subsection may
obtain review of a final order issued in such proceeding.

**(2)** The Executive Director is authorized, at the direction of the
Access Board -

**(A)** to bring a civil action in any appropriate United States
district court to enforce, in whole or in part, any final order of the
Access Board under this subsection; and

**(B)** to intervene, appear, and participate, or to appear as amicus
curiae, in any court of the United States or in any court of a State in
civil actions that relate to this section or to the Architectural
Barriers Act of 1968. Except as provided in section 518(a) of title 28,
United States Code, relating to litigation before the Supreme Court, the
executive director may appear for and represent the Access Board in any
civil litigation brought under this section.

**(e)(1)** There shall be appointed by the Access Board an executive
director and such other professional and clerical personnel as are
necessary to carry out its function under this Act. The Access Board is
authorized to appoint as many hearing examiners as are necessary for
proceedings required to be conducted under this section. The provisions
applicable to hearing examiners appointed under section 3105 of title 5,
United States Code, shall apply to hearing examiners appointed under
this subsection.

**(2)** The Executive Director shall exercise general supervision over
all personnel employed by the Access Board (other than hearing examiners
and their assistants). The Executive Director shall have final authority
on behalf of the Access Board, with respect to the investigation of
alleged noncompliance and in the issuance of formal complaints before
the Access Board, and shall have such other duties as the Access Board
may prescribe.

**(3)** For the purpose of this section, an order of compliance issued
by a hearing examiner shall be deemed to be an order of the Access Board
and shall be the final order for the purpose of judicial review.

**(f)(1)(A)** In carrying out the technical assistance responsibilities
of the Access Board under this section, the Board may enter into an
interagency agreement with another Federal department or agency.

**(B)** Any funds appropriated to such a department or agency for the
purpose of providing technical assistance may be transferred to the
Access Board. Any funds appropriated to the Access Board for the purpose
of providing such technical assistance

may be transferred to such department or agency.

**(C)** The Access Board may arrange to carry out the technical
assistance responsibilities of the Board under this section through such
other departments and agencies for such periods as the Board determines
to be appropriate.

**(D)** The Access Board shall establish a procedure to ensure
separation of its compliance and technical assistance responsibilities
under this section.

**(2)** The departments or agencies specified in subsection (a) of this
section shall make available to the Access Board such technical,
administrative, or other assistance as it may require to carry out its
functions under this section, and the Access Board may appoint such
other advisers, technical experts, and consultants as it deems necessary
to assist it in carrying out its functions under this section. Special
advisory and technical experts and consultants appointed pursuant to
this paragraph shall, while performing their functions under this
section, be entitled to receive compensation at rates fixed by the
Chairperson, but not exceeding the daily equivalent of the rate of pay
for level 4 of the Senior Executive Service Schedule under section 5382
of title 5, United States Code, including travel time, and while serving
away from their homes or regular places of business they may be allowed
travel expenses, including per diem in lieu of subsistence, as
authorized by section 5703 of such title 5 for persons in the Government
service employed intermittently.

**(g)(1)** The Access Board shall, at the end of each fiscal year,
report its activities during the preceding fiscal year to the Congress.
Such report shall include an assessment of the extent of compliance with
the Acts cited in subsection (b) of this section, along with a
description and analysis of investigations made and actions taken by the
Access Board, and the reports and recommendations described in
paragraphs (8) and (9) of such subsection.

**(2)** The Access Board shall, at the same time that the Access Board
transmits the report required under section 7(b) of the Act commonly
known as the Architectural Barriers Act of 1968 (42 U.S.C. 4157(b)),
transmit the report to the Committee on Education and the Workforce of
the House of Representatives and the Committee on Labor and Human
Resources of the Senate.

**(h)(1)** The Access Board may make grants to, or enter into contracts
with, public or private organizations to carry out its duties under
subsections (b) and (c).

**(2)(A)** The Access Board may accept, hold, administer, and utilize
gifts, devises, and bequests of property, both real and personal, for
the purpose of aiding and facilitating the functions of the Access Board
under paragraphs (2) and (4) of subsection (b). Gifts and bequests of
money and proceeds from sales of other property received as gifts,
devises, or bequests shall be deposited in the Treasury and shall be
disbursed upon the order of the Chairperson. Property accepted pursuant
to this section, and the proceeds thereof, shall be used as nearly as
possible in accordance with the terms of the gifts, devises, or
bequests. For purposes of Federal income, estate, or gift taxes,
property accepted under this section shall be considered as a gift,
devise, or bequest to the United States.

**(B)** The Access Board shall publish regulations setting forth the
criteria the Board will use in determining whether the acceptance of
gifts, devises, and bequests of property, both real and personal, would
reflect unfavorably upon the ability of the Board or any employee to
carry out the responsibilities or official duties of the Board in a fair
and objective manner, or would compromise the integrity of or the
appearance of integrity of a Government program or any official involved
in that program.

**(i)** There are authorized to be appropriated for the purpose of
carrying out the duties and functions of the Access Board under this
section such sums as may be necessary for each of the fiscal years 1999
through 2003.

**Employment Under Federal Contracts**

**Sec. 503. (a)** Any contract in excess of \$10,000 entered into by any
Federal department or agency for the procurement of personal property
and nonpersonal services (including construction) for the United States
shall contain a provision requiring that the party contracting with the
United States shall take affirmative action to employ and advance in
employment qualified individuals with disabilities. The provisions of
this section shall apply to any subcontract in excess of \$10,000
entered into by a prime contractor in carrying out any contract for the
procurement of personal property and nonpersonal services (including
construction) for the United States. The President shall implement the
provisions of this section by promulgating regulations within ninety
days after the date of enactment of this section.

**(b)** If any individual with a disability believes any contractor has
failed or refused to comply with the provisions of a contract with the
United States, relating to employment of individuals with disabilities,
such individual may file a complaint with the Department of Labor. The
Department shall promptly investigate such complaint and shall take such
action thereon as the facts and circumstances warrant, consistent with
the terms of such contract and the laws and regulations applicable
thereto.

**(c)(1)** The requirements of this section may be waived, in whole or
in part, by the President with respect to a particular contract or
subcontract, in accordance with guidelines set forth in regulations
which the President shall prescribe, when the President determines that
special circumstances in the national interest so require and states in
writing the reasons for such determination.

**(2)(A)** The Secretary of Labor may waive the requirements of the
affirmative action clause required by the regulations promulgated under
subsection (a) with respect to any of the prime contractor\'s or
subcontractor\'s facilities that are found to be in all respects
separate and distinct from activities of the prime contractor or
subcontractor related to the performance of the contract or subcontract,
if the Secretary of Labor also finds that such a waiver will not
interfere with or impede the effectuation of this Act.

**(B)** Such waivers shall be considered only upon the request of the
contractor or subcontractor. The Secretary of Labor shall promulgate
regulations that set forth the standards used for granting such a
waiver.

**(d)** The standards used to determine whether this section has been
violated in a complaint alleging nonaffirmative action employment
discrimination under this section shall be the standards applied under
title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111
et seq.) and the provisions of sections 501 through 504, and 510, of the
Americans with Disabilities Act of 1990 (42 U.S.C. 12201-12204 and
12210), as such sections relate to employment.

**(e)** The Secretary shall develop procedures to ensure that
administrative complaints filed under this section and under the
Americans with Disabilities Act of 1990 are dealt with in a manner that
avoids duplication of effort and prevents imposition of inconsistent or
conflicting standards for the same requirements under this section and
the Americans with Disabilities Act of 1990.

**Nondiscrimination Under Federal Grants and Programs**

**Sec. 504. (a)** No otherwise qualified individual with a disability in
the United States, as defined in section 7(20), shall, solely by reason
of her or his disability, be excluded from the participation in, be
denied the benefits of, or be subjected to discrimination under any
program or activity receiving Federal financial assistance or under any
program or activity conducted by any Executive agency or by the United
States Postal Service. The head of each such agency shall promulgate
such regulations as may be necessary to carry out the amendments to this
section made by the Rehabilitation, Comprehensive Services, and
Developmental Disabilities Act of 1978. Copies of any proposed
regulation shall be submitted to appropriate authorizing committees of
Congress, and such regulations may take effect no earlier than the
thirtieth day after the date on which such regulation is so submitted to
such committees.

**(b)** For the purposes of this section, the term \"program or
activity\" means all of the operations of -

**(1)(A)** a department, agency, special purpose district, or other
instrumentality of a State or of a local government; or

**(B)** the entity of such a State or local government that distributes
such assistance and each such department or agency (and each other State
or local government entity) to which the assistance is extended, in the
case of assistance to a State or local government;

**(2)(A)** a college, university, or other postsecondary institution, or
a public system of higher education; or

**(B)** a local educational agency (as defined in section 14101 of the
Elementary and Secondary Education Act of 1965), system of vocational
education, or other school system;

**(3)(A)** an entire corporation, partnership, or other private
organization, or an entire sole proprietorship-

**(i)** if assistance is extended to such corporation, partnership,
private organization, or sole proprietorship as a whole; or

**(ii)** which is principally engaged in the business of providing
education, health care, housing, social services, or parks and
recreation; or

**(B)** the entire plant or other comparable, geographically separate
facility to which Federal financial assistance is extended, in the case
of any corporation, partnership, private organization, or sole
proprietorship; or

**(4)** any other entity which is established by two or more of the
entities described in paragraph (1), (2), or (3);

any part of which is extended Federal financial assistance.

**(c)** Small providers are not required by subsection (a) to make
significant structural alterations to their existing facilities for the
purpose of assuring program accessibility, if alternative means of
providing the services are available. The terms used in this subsection
shall be construed with reference to the regulations existing on the
date of the enactment of this subsection.

**(d)** The standards used to determine whether this section has been
violated in a complaint alleging employment discrimination under this
section shall be the standards applied under title I of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and the
provisions of sections 501 through 504, and 510, of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12201-12204 and 12210), as such
sections relate to employment.

**Remedies and Attorneys\' Fees**

**Sec. 505. (a)(1)** The remedies, procedures, and rights set forth in
section 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16),
including the application of sections 706(f) through 706(k) (42 U.S.C.
2000e-5(f) through (k)), shall be available, with respect to any
complaint under section 501 of this Act, to any employee or applicant
for employment aggrieved by the final disposition of such complaint, or
by the failure to take final action on such complaint. In fashioning an
equitable or affirmative action remedy under such section, a court may
take into account the reasonableness of the cost of any necessary work
place accommodation, and the availability of alternatives therefor or
other appropriate relief in order to achieve an equitable and
appropriate remedy.

**(2)** The remedies, procedures, and rights set forth in title VI of
the Civil Rights Act of 1964 shall be available to any person aggrieved
by any act or failure to act by any recipient of Federal assistance or
Federal provider of such assistance under section 504 of this Act.

**(b)** In any action or proceeding to enforce or charge a violation of
a provision of this title, the court, in its discretion, may allow the
prevailing party, other than the United States, a reasonable attorney\'s
fee as part of the costs.

**Secretarial Responsibilities**

**Sec. 506.(a)** The Secretary may provide directly or by contract with
State vocational rehabilitation agencies or experts or consultants or
groups thereof, technical assistance -

**(1)** to persons operating community rehabilitation programs; and

**(2)** with the concurrence of the Access Board established by section
502, to any public or nonprofit agency, institution, or organization;

for the purpose of assisting such persons or entities in removing
architectural, transportation, or communication barriers. Any
concurrence of the Access Board under paragraph (2) shall reflect its
consideration of the cost studies carried out by States.

**(b)** Any such experts or consultants, while serving pursuant to such
contracts, shall be entitled to receive compensation at rates fixed by
the Secretary, but not exceeding the daily equivalent of the rate of pay
for level 4 of the Senior Executive Service Schedule under section 5382
of title 5, United States Code, including travel time, and while so
serving away from their homes or regular places of business, they may be
allowed travel expenses, including per diem in lieu of subsistence, as
authorized by section 5703 of title 5, United States Code, for persons
in the Government service employed intermittently.

**(c)** The Secretary, with the concurrence of the Access Board and the
President, may provide, directly or by contract, financial assistance to
any public or nonprofit agency, institution, or organization for the
purpose of removing architectural, transportation, and communication
barriers. No assistance may be provided under this subsection until a
study demonstrating the need for such assistance has been conducted and
submitted under section 502(h)(1) of this title.

**(d)** In order to carry out this section, there are authorized to be
appropriated such sums as may be necessary.

**Interagency Disability Coordinating Council**

**Sec. 507.(a) Establishment**

There is hereby established an Interagency Disability Coordinating
Council (hereafter in this section referred to as the \"Council\")
composed of the Secretary of Education, the Secretary of Health and
Human Services, the Secretary of Labor, the Secretary of Housing and
Urban Development, the Secretary of Transportation, the Assistant
Secretary of the Interior for Indian Affairs, the Attorney General, the
Director of the Office of Personnel Management, the Chairperson of the
Equal Employment Opportunity Commission, the Chairperson of the
Architectural and Transportation Barriers Compliance Board, and such
other officials as may be designated by the President.

**(b) Duties**

The Council shall -

**(1)** have the responsibility for developing and implementing
agreements, policies, and practices designed to maximize effort, promote
efficiency, and eliminate conflict, competition, duplication, and
inconsistencies among the operations, functions, and jurisdictions of
the various departments, agencies, and branches of the Federal
Government responsible for the implementation and enforcement of the
provisions of this title, and the regulations prescribed thereunder;

**(2)** be responsible for developing and implementing agreements,
policies, and practices designed to coordinate operations, functions,
and jurisdictions of the various departments and agencies of the Federal
Government responsible for promoting the full integration into society,
independence, and productivity of individuals with disabilities; and

**(3)** carry out such studies and other activities, subject to the
availability of resources, with advice from the National Council on
Disability, in order to identify methods for overcoming barriers to
integration into society, independence, and productivity of individuals
with disabilities.

**(c) Report**

On or before July 1 of each year, the Interagency Disability
Coordinating Council shall prepare and submit to the President and to
the Congress a report of the activities of the Council designed to
promote and meet the employment needs of individuals with disabilities,
together with such recommendations for legislative and administrative
changes as the Council concludes are desirable to further promote this
section, along with any comments submitted by the National Council on
Disability as to the effectiveness of such activities and
recommendations in meeting the needs of individuals with disabilities.
Nothing in this section shall impair any responsibilities assigned by
any Executive order to any Federal department, agency, or
instrumentality to act as a lead Federal agency with respect to any
provisions of this title.

**Electronic and Information Technology Accessibility Guidelines**

**Sec. 508. Electronic and Information Technology**

**(a)** **Requirements for Federal Departments and Agencies**

**(1)** **Accessibility**

**(A)** **Development, procurement, maintenance, or use of electronic
and information technology**

When developing, procuring, maintaining, or using electronic and
information technology, each Federal department or agency, including the
United States Postal Service, shall ensure, unless an undue burden would
be imposed on the department or agency, that the electronic and
information technology allows, regardless of the type of medium of the
technology‑‑

**(i)** individuals with disabilities who are Federal employees to have
access to and use of information and data that is comparable to the
access to and use of the information and data by Federal employees who
are not individuals with disabilities; and

**(ii)** individuals with disabilities who are members of the public
seeking information or services from a Federal department or agency to
have access to and use of information and data that is comparable to the
access to and use of the information and data by such members of the
public who are not individuals with disabilities.

**(B)** **Alternative means efforts**

When development, procurement, maintenance, or use of electronic and
information technology that meets the standards published by the Access
Board under paragraph (2) would impose an undue burden, the Federal
department or agency shall provide individuals with disabilities covered
by paragraph (1) with the information and data involved by an
alternative means of access that allows the individual to use the
information and data.

**(2)** **Electronic and information technology standards**

**(A)** **In general**

Not later than 18 months after the date of enactment of the
Rehabilitation Act Amendments of 1998, the Architectural and
Transportation Barriers Compliance Board (referred to in this section as
the \"Access Board\"), after consultation with the Secretary of
Education, the Administrator of General Services, the Secretary of
Commerce, the Chairman of the Federal Communications Commission, the
Secretary of Defense, and the head of any other Federal department or
agency that the Access Board determines to be appropriate, including
consultation on relevant research findings, and after consultation with
the electronic and information technology industry and appropriate
public or nonprofit agencies or organizations, including organizations
representing individuals with disabilities, shall issue and publish
standards setting forth‑‑

**(i)** for purposes of this section, a definition of electronic and
information technology that is consistent with the definition of
information technology specified in section 5002(3) of the Clinger‑Cohen
Act of 1996 (40 U.S.C. 1401(3)); and

**(ii)** the technical and functional performance criteria necessary to
implement the requirements set forth in paragraph (1).

**(B)** **Review and amendment**

The Access Board shall periodically review and, as appropriate, amend
the standards required under subparagraph (A) to reflect technological
advances or changes in electronic and information technology.

**(3)** **Incorporation of standards**

Not later than 6 months after the Access Board publishes the standards
required under paragraph (2), the Federal Acquisition Regulatory Council
shall revise the Federal Acquisition Regulation and each Federal
department or agency shall revise the Federal procurement policies and
directives under the control of the department or agency to incorporate
those standards. Not later than 6 months after the Access Board revises
any standards required under paragraph (2), the Council shall revise the
Federal Acquisition Regulation and each appropriate Federal department
or agency shall revise the procurement policies and directives, as
necessary, to incorporate the revisions.

**(4)** **Acquisition planning**

In the event that a Federal department or agency determines that
compliance with the standards issued by the Access Board under paragraph
(2) relating to procurement imposes an undue burden, the documentation
by the department or agency supporting the procurement shall explain why
compliance creates an undue burden.

**(5)** **Exemption for national security systems**

This section shall not apply to national security systems, as that term
is defined in section 5142 of the Clinger‑Cohen Act of 1996 (40 U.S.C.
1452).

**(6)** **Construction**

**(A)** **Equipment**

In a case in which the Federal Government provides access to the public
to information or data through electronic and information technology,
nothing in this section shall be construed to require a Federal
department or agency‑‑

**(i)** to make equipment owned by the Federal Government available for
access and use by individuals with disabilities covered by paragraph (1)
at a location other than that where the electronic and information
technology is provided to the public; or

**(ii)** to purchase equipment for access and use by individuals with
disabilities covered by paragraph (1) at a location other than that
where the electronic and information technology is provided to the
public.

**(B)** **Software and peripheral devices**

Except as required to comply with standards issued by the Access Board
under paragraph (2), nothing in paragraph (1) requires the installation
of specific accessibility‑related software or the attachment of a
specific accessibility‑related peripheral device at a workstation of a
Federal employee who is not an individual with a disability.

**(b)** **Technical Assistance**

The Administrator of General Services and the Access Board shall provide
technical assistance to individuals and Federal departments and agencies
concerning the requirements of this section.

**(c)** **Agency Evaluations**

Not later than 6 months after the date of enactment of the
Rehabilitation Act Amendments of 1998, the head of each Federal
department or agency shall evaluate the extent to which the electronic
and information technology of the department or agency is accessible to
and usable by individuals with disabilities described in subsection
(a)(1), compared to the access to and use of the technology by
individuals described in such subsection who are not individuals with
disabilities, and submit a report containing the evaluation to the
Attorney General.

**(d)** **Reports**

**(1)** **Interim report**

Not later than 18 months after the date of enactment of the
Rehabilitation Act Amendments of 1998, the Attorney General shall
prepare and submit to the President a report containing information on
and recommendations regarding the extent to which the electronic and
information technology of the Federal Government is accessible to and
usable by individuals with disabilities described in subsection (a)(1).

**(2)** **Biennial reports**

Not later than 3 years after the date of enactment of the Rehabilitation
Act Amendments of 1998, and every 2 years thereafter, the Attorney
General shall prepare and submit to the President and Congress a report
containing information on and recommendations regarding the state of
Federal department and agency compliance with the requirements of this
section, including actions regarding individual complaints under
subsection (f).

**(e)** **Cooperation**

Each head of a Federal department or agency (including the Access Board,
the Equal Employment Opportunity Commission, and the General Services
Administration) shall provide to the Attorney General such information
as the Attorney General determines is necessary to conduct the
evaluations under subsection (c) and prepare the reports under
subsection (d).

**(f)** **Enforcement**

**(1)** **General**

**(A)** **Complaints**

Effective 2 years after the date of enactment of the Rehabilitation Act
Amendments of 1998, any individual with a disability may file a
complaint alleging that a Federal department or agency fails to comply
with subsection (a)(1) in providing electronic and information
technology.

**(B)** **Application**

This subsection shall apply only to electronic and information
technology that is procured by a Federal department or agency not less
than 2 years after the date of enactment of the Rehabilitation Act
Amendments of 1998.

**(2)** **Administrative complaints**

Complaints filed under paragraph (1) shall be filed with the Federal
department or agency alleged to be in noncompliance. The Federal
department or agency receiving the complaint shall apply the complaint
procedures established to implement section 504 for resolving
allegations of discrimination in a federally conducted program or
activity.

**(3)** **Civil actions**

The remedies, procedures, and rights set forth in sections 505(a)(2) and
505(b) shall be the remedies, procedures, and rights available to any
individual with a disability filing a complaint under paragraph (1).

**(g)** **Application to Other Federal Laws**

This section shall not be construed to limit any right, remedy, or
procedure otherwise available under any provision of Federal law
(including sections 501 through 505) that provides greater or equal
protection for the rights of individuals with disabilities than this
section.

**Sec. 509. Protection and Advocacy of Individual Rights**

**(a)** **Purpose and Construction**

**(1)** **Purpose**

The purpose of this section is to support a system in each State to
protect the legal and human rights of individuals with disabilities
who‑‑

**(A)** need services that are beyond the scope of services authorized
to be provided by the client assistance program under section 112; and

**(B)(i)** are ineligible for protection and advocacy programs under
subtitle C of the Developmental Disabilities Assistance and Bill of
Rights Act of 2000 because the individuals do not have a developmental
disability, as defined in section 102 of such Act (42 U.S.C. 6002); and

**(ii)** are ineligible for services under the Protection and Advocacy
for Mentally Ill Individuals Act of 1986 (42 U.S.C. 10801 et seq.)
because the individuals are not individuals with mental illness, as
defined in section 102 of such Act (42 U.S.C. 10802).

**(2)** **Construction**

This section shall not be construed to require the provision of
protection and advocacy services that can be provided under the
Assistive Technology Act of 1998.

**(b)** **Appropriations Less Than \$5,500,000**

For any fiscal year in which the amount appropriated to carry out this
section is less than \$5,500,000, the Commissioner may make grants from
such amount to eligible systems within States to plan for, develop
outreach strategies for, and carry out protection and advocacy programs
authorized under this section for individuals with disabilities who meet
the requirements of subparagraphs (A) and (B) of subsection (a)(1).

**(c) Appropriations of \$5,500,000** **or More**

**(1)** **Reservations**

**(A)** **Technical assistance**

For any fiscal year in which the amount appropriated to carry out this
section equals or exceeds \$5,500,000, the Commissioner shall set aside
not less than 1.8 percent and not more than 2.2 percent of the amount to
provide training and technical assistance to the systems established
under this section.

**(B)** **Grant for the eligible system serving the american indian
consortium**

For any fiscal year in which the amount appropriated to carry out this
section equals or exceeds \$10,500,000, the Commissioner shall reserve a
portion, and use the portion to make a grant for the eligible system
serving the American Indian consortium. The Commission shall make the
grant in an amount of not less than \$50,000 for the fiscal year.

**(2)** **Allotments**

For any such fiscal year, after the reservations required by paragraph
(1) have been made, the Commissioner shall make allotments from the
remainder of such amount in accordance with paragraph (3) to eligible
systems within States to enable such systems to carry out protection and
advocacy programs authorized under this section for individuals referred
to in subsection (b).

**(3)** **Systems within states**

**(A)** **Population basis**

Except as provided in subparagraph (B), from such remainder for each
such fiscal year, the Commissioner shall make an allotment to the
eligible system within a State of an amount bearing the same ratio to
such remainder as the population of the State bears to the population of
all States.

**(B)** **Minimums**

Subject to the availability of appropriations to carry out this section,
and except as provided in paragraph (4), the allotment to any system
under subparagraph (A) shall be not less than \$100,000 or one‑third of
one percent of the remainder for the fiscal year for which the allotment
is made, whichever is greater, and the allotment to any system under
this section for any fiscal year that is less than \$100,000 or
one‑third of one percent of such remainder shall be increased to the
greater of the two amounts.

**(4)** **Systems within other jurisdictions**

**(A)** **In general**

For the purposes of paragraph (3)(B), Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.

**(B)** **Allotment**

The eligible system within a jurisdiction described in subparagraph (A)
shall be allotted under paragraph (3)(A) not less than \$50,000 for the
fiscal year for which the allotment is made.

**(5)** **Adjustment for inflation**

For any fiscal year, beginning in fiscal year 1999, in which the total
amount appropriated to carry out this section exceeds the total amount
appropriated to carry out this section for the preceding fiscal year,
the Commissioner shall increase each of the minimum grants or allotments
under paragraphs (1)(B), (3)(B), and (4)(B) by a percentage that shall
not exceed the percentage increase in the total amount appropriated to
carry out this section between the preceding fiscal year and the fiscal
year involved.

**(d)** **Proportional Reduction**

To provide minimum allotments to systems within States (as increased
under subsection (c)(5)) under subsection (c)(3)(B), or to provide
minimum allotments to systems within States (as increased under
subsection (c)(5)) under subsection (c)(4)(B), the Commissioner shall
proportionately reduce the allotments of the remaining systems within
States under subsection (c)(3), with such adjustments as may be
necessary to prevent the allotment of any such remaining system within a
State from being reduced to less than the minimum allotment for a system
within a State (as increased under subsection (c)(5)) under subsection
(c)(3)(B), or the minimum allotment for a State (as increased under
subsection (c)(5)) under subsection (c)(4)(B), as appropriate.

**(e)** **Reallotment**

Whenever the Commissioner determines that any amount of an allotment to
a system within a State for any fiscal year described in subsection
(c)(1) will not be expended by such system in carrying out the
provisions of this section, the Commissioner shall make such amount
available for carrying out the provisions of this section to one or more
of the systems that the Commissioner determines will be able to use
additional amounts during such year for carrying out such provisions.
Any amount made available to a system for any fiscal year pursuant to
the preceding sentence shall, for the purposes of this section, be
regarded as an increase in the allotment of the system (as determined
under the preceding provisions of this section) for such year.

**(f)** **Application**

In order to receive assistance under this section, an eligible system
shall submit an application to the Commissioner, at such time, in such
form and manner, and containing such information and assurances as the
Commissioner determines necessary to meet the requirements of this
section, including assurances that the eligible system will‑‑

**(1)** have in effect a system to protect and advocate the rights of
individuals with disabilities;

**(2)** have the same general authorities, including access to records
and program income, as are set forth in subtitle C of the Developmental
Disabilities Assistance and Bill of Rights Act of 2000;

**(3)** have the authority to pursue legal, administrative, and other
appropriate remedies or approaches to ensure the protection of, and
advocacy for, the rights of such individuals within the State or the
American Indian consortium who are individuals described in subsection
(a)(1);

**(4)** provide information on and make referrals to programs and
services addressing the needs of individuals with disabilities in the
State or the American Indian consortium;

**(5)** develop a statement of objectives and priorities on an annual
basis, and provide to the public, including individuals with
disabilities and, as appropriate, the individuals\' representatives, an
opportunity to comment on the objectives and priorities established by,
and activities of, the system including‑‑

**(A)** the objectives and priorities for the activities of the system
for each year and the rationale for the establishment of such objectives
and priorities; and

**(B)** the coordination of programs provided through the system under
this section with the advocacy programs of the client assistance program
under section 112, the State long‑term care ombudsman program
established under the Older Americans Act of 1965 (42 U.S.C. 3001 et
seq.), the Developmental Disabilities Assistance and Bill of Rights Act
of 2000, and the Protection and Advocacy for Mentally Ill Individuals
Act of 1986 (42 U.S.C. 10801 et seq.);

**(6)** establish a grievance procedure for clients or prospective
clients of the system to ensure that individuals with disabilities are
afforded equal opportunity to access the services of the system; and

**(7)** provide assurances to the Commissioner that funds made available
under this section will be used to supplement and not supplant the
non‑Federal funds that would otherwise be made available for the purpose
for which Federal funds are provided.

**(g)** **Carryover and Direct Payment**

**(1)** **Direct payment**

Notwithstanding any other provision of law, the Commissioner shall pay
directly to any system that complies with the provisions of this
section, the amount of the allotment of the State or the grant for the
eligible system that serves the American Indian consortium involved
under this section, unless the State or American Indian consortium
provides otherwise.

**(2)** **Carryover**

Any amount paid to an eligible system that serves a State or American
Indian consortium for a fiscal year that remains unobligated at the end
of such year shall remain available to such system that serves the State
or American Indian consortium for obligation during the next fiscal year
for the purposes for which such amount was paid.

**(h)** **Limitation on Disclosure Requirements**

For purposes of any audit, report, or evaluation of the performance of
the program established under this section, the Commissioner shall not
require such a program to disclose the identity

of, or any other personally identifiable information related to, any
individual requesting assistance under such program.

**(i)** **Administrative Cost**

In any State in which an eligible system is located within a State
agency, a State may use a portion of any allotment under subsection (c)
for the cost of the administration of the system required by this
section. Such portion may not exceed 5 percent of the allotment.

**(j)** **Delegation**

The Commissioner may delegate the administration of this program to the
Commissioner of the Administration on Developmental Disabilities within
the Department of Health and Human Services.

**(k)** **Report**

The Commissioner shall annually prepare and submit to the Committee on
Education and the Workforce of the House of Representatives and the
Committee on Labor and Human Resources of the Senate a report describing
the types of services and activities being undertaken by programs funded
under this section, the total number of individuals served under this
section, the types of disabilities represented by such individuals, and
the types of issues being addressed on behalf of such individuals.

**(l)** **Authorization of Appropriations**

There are authorized to be appropriated to carry out this section such
sums as may be necessary for each of the fiscal years 1999 through 2003.

**(m)** **Definitions**

As used in this section:

**(1)** **Eligible system**

The term \"eligible system\" means a protection and advocacy system that
is established under subtitle C of the Developmental Disabilities
Assistance and Bill of Rights Act of 2000 and that meets the
requirements of subsection (f).

**(2)** **American indian consortium**

The term \"American Indian consortium\" means a consortium established
as described in section 142 of the Developmental Disabilities Assistance
and Bill of Rights Act.

**TITLE VI‑‑EMPLOYMENT OPPORTUNITIES**

**FOR INDIVIDUALS WITH DISABILITIES**

**Sec. 601. Short Title**

This title may be cited as the \"Employment Opportunities for
Individuals With Disabilities Act\".

**Part A‑‑Projects With Industry**

**Sec. 611. (a)(1)** The purpose of this part is to create and expand
job and career opportunities for individuals with disabilities in the
competitive labor market by engaging the talent and leadership of
private industry as partners in the rehabilitation process, to identify
competitive job and career opportunities and the skills needed to
perform such jobs, to create practical job and career readiness and
training programs, and to provide job placements and career advancement.

**(2)** The Commissioner, in consultation with the Secretary of Labor
and with designated State units, may award grants to individual
employers, community rehabilitation program providers, labor unions,
trade associations, Indian tribes, tribal organizations, designated
State units, and other entities to establish jointly financed Projects
With Industry to create and expand job and career opportunities for
individuals with disabilities, which projects shall‑‑

**(A)** provide for the establishment of business advisory councils,
that shall‑‑

**(i)** be comprised of‑‑

**(I)** representatives of private industry, business concerns, and
organized labor;

**(II)** individuals with disabilities and representatives of
individuals with disabilities; and

**(III)** a representative of the appropriate designated State unit;

**(ii)** identify job and career availability within the community,
consistent with the current and projected local employment opportunities
identified by the local workforce investment board for the community
under section 118(b)(1)(B) of the Workforce Investment Act of 1998;

**(iii)** identify the skills necessary to perform the jobs and careers
identified; and

**(iv)** prescribe training programs designed to develop appropriate job
and career skills, or job placement programs designed to identify and
develop job placement and career advancement opportunities, for
individuals with disabilities in fields related to the job and career
availability identified under clause (ii);

**(B)** provide job development, job placement, and career advancement
services;

**(C)** to the extent appropriate, provide for‑‑

**(i)** training in realistic work settings in order to prepare
individuals with disabilities for employment and career advancement in
the competitive market; and

**(ii)** to the extent practicable, the modification of any facilities
or equipment of the employer involved that are used primarily by
individuals with disabilities, except that a project shall not be
required to provide for such modification if the modification is
required as a reasonable accommodation under the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.); and

**(D)** provide individuals with disabilities with such support services
as may be required in order to maintain the employment and career
advancement for which the individuals have received training under this
part.

**(3)(A)** An individual shall be eligible for services described in
paragraph (2) if the individual is determined to be an individual
described in section 102(a)(1), and if the determination is made in a
manner consistent with section 102(a).

**(B)** Such a determination may be made by the recipient of a grant
under this part, to the extent the determination is appropriate and
available and consistent with the requirements of section 102(a).

**(4)** The Commissioner shall enter into an agreement with the grant
recipient regarding the establishment of the project. Any agreement
shall be jointly developed by the Commissioner, the grant recipient,
and, to the extent practicable, the appropriate designated State unit
and the individuals with disabilities (or the individuals\'
representatives) involved. Such agreements shall specify the terms of
training and employment under the project, provide for the payment by
the Commissioner of part of the costs of the project (in accordance with
subsection (c)), and contain the items required under subsection (b) and
such other provisions as the parties to the agreement consider to be
appropriate.

**(5)** Any agreement shall include a description of a plan to annually
conduct a review and evaluation of the operation of the project in
accordance with standards developed by the Commissioner under subsection
(d), and, in conducting the review and evaluation, to collect data and
information of the type described in subparagraphs (A) through (C) of
section 101(a)(10), as determined to be appropriate by the Commissioner.

**(6)** The Commissioner may include, as part of agreements with grant
recipients, authority for such grant recipients to provide technical
assistance to‑‑

**(A)** assist employers in hiring individuals with disabilities; or

**(B)** improve or develop relationships between‑‑

**(i)** grant recipients or prospective grant recipients; and

**(ii)** employers or organized labor; or

**(C)** assist employers in understanding and meeting the requirements
of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.)
as the Act relates to employment of individuals with disabilities.

**(b)** No payment shall be made by the Commissioner under any agreement
with a grant recipient entered into under subsection (a) unless such
agreement‑‑

**(1)** provides an assurance that individuals with disabilities placed
under such agreement shall receive at least the applicable minimum wage;

**(2)** provides an assurance that any individual with a disability
placed under this part shall be afforded terms and benefits of
employment equal to terms and benefits that are afforded to the
similarly situated nondisabled co‑workers of the individual, and that
such individuals with disabilities shall not be segregated from their
co‑workers; and

**(3)** provides an assurance that an annual evaluation report
containing information specified under subsection (a)(5) shall be
submitted as determined to be appropriate by the Commissioner.

**(c)** Payments under this section with respect to any project may not
exceed 80 per centum of the costs of the project.

**(d)(1)** The Commissioner shall develop standards for the evaluation
described in subsection (a)(5) and shall review and revise the
evaluation standards as necessary, subject to paragraph (2).

**(2)** In revising the standards for evaluation to be used by the grant
recipients, the Commissioner shall obtain and consider recommendations
for such standards from State vocational rehabilitation agencies,
current and former grant recipients, professional organizations
representing business and industry, organizations representing
individuals with disabilities, individuals served by grant recipients,
organizations representing community rehabilitation program providers,
and labor organizations.

**(e)(1)(A)** A grant may be awarded under this section for a period of
up to 5 years and such grant may be renewed.

**(B)** Grants under this section shall be awarded on a competitive
basis. To be eligible to receive such a grant, a prospective grant
recipient shall submit an application to the Commissioner at such time,
in such manner, and containing such information as the Commissioner may
require.

**(2)** The Commissioner shall, to the extent practicable, ensure an
equitable distribution of payments made under this section among the
States. To the extent funds are available, the Commissioner shall award
grants under this section to new projects that will serve individuals
with disabilities in States, portions of States, Indian tribes, or
tribal organizations, that are currently unserved or underserved by
projects.

**(f)(1)** The Commissioner shall, as necessary, develop and publish in
the Federal Register, in final form, indicators of what constitutes
minimum compliance consistent with the evaluation standards under
subsection (d)(1).

**(2)** Each grant recipient shall report to the Commissioner at the end
of each project year the extent to which the grant recipient is in
compliance with the evaluation standards.

**(3)(A)** The Commissioner shall annually conduct onsite compliance
reviews of at least 15 percent of grant recipients. The Commissioner
shall select grant recipients for review on a random basis.

**(B)** The Commissioner shall use the indicators in determining
compliance with the evaluation standards.

**(C)** The Commissioner shall ensure that at least one member of a team
conducting such a review shall be an individual who‑‑

**(i)** is not an employee of the Federal Government; and

**(ii)** has experience or expertise in conducting projects.

**(D)** The Commissioner shall ensure that‑‑

**(i)** a representative of the appropriate designated State unit shall
participate in the review; and

**(ii)** no person shall participate in the review of a grant recipient
if‑‑

**(I)** the grant recipient provides any direct financial benefit to the
reviewer; or

**(II)** participation in the review would give the appearance of a
conflict of interest.

**(4)** In making a determination concerning any subsequent grant under
this section, the Commissioner shall consider the past performance of
the applicant, if applicable. The Commissioner shall use compliance
indicators developed under this subsection that are consistent with
program evaluation standards developed under subsection (d) to assess
minimum project performance for purposes of making continuation awards
in the third, fourth, and fifth years.

**(5)** Each fiscal year the Commissioner shall include in the annual
report to Congress required by section 13 an analysis of the extent to
which grant recipients have complied with the evaluation standards. The
Commissioner may identify individual grant recipients in the analysis.
In addition, the Commissioner shall report the results of onsite
compliance reviews, identifying individual grant recipients.

**(g)** The Commissioner may provide, directly or by way of grant,
contract, or cooperative agreement, technical assistance to‑‑

**(1)** entities conducting projects for the purpose of assisting such
entities in‑‑

**(A)** the improvement of or the development of relationships with
private industry or labor; or

**(B)** the improvement of relationships with State vocational
rehabilitation agencies; and

**(2)** entities planning the development of new projects.

**(h)** As used in this section:

**(1)** The term \"agreement\" means an agreement described in
subsection (a)(4).

**(2)** The term \"project\" means a Project With Industry established
under subsection (a)(2).

**(3)** The term \"grant recipient\" means a recipient of a grant under
subsection (a)(2).

**Sec. 612.** **Authorization of Appropriations**

There are authorized to be appropriated to carry out the provisions of
this part, such sums as may be necessary for each of fiscal years 1999
through 2003.

**Part B‑‑Supported Employment Services**

**for Individuals With the Most Significant Disabilities**

**Sec. 621. Purpose**

It is the purpose of this part to authorize allotments, in addition to
grants for vocational rehabilitation services under title I, to assist
States in developing collaborative programs with appropriate entities to
provide supported employment services for individuals with the most
significant disabilities to enable such individuals to achieve the
employment outcome of supported employment.

**Sec. 622. Allotments**

**(a)** **In General**

**(1)** **States**

The Secretary shall allot the sums appropriated for each fiscal year to
carry out this part among the States on the basis of relative population
of each State, except that‑‑

**(A)** no State shall receive less than \$250,000, or one‑third of one
percent of the sums appropriated for the fiscal year for which the
allotment is made, whichever is greater; and

**(B)** if the sums appropriated to carry out this part for the fiscal
year exceed by \$1,000,000 or more the sums appropriated to carry out
this part in fiscal year 1992, no State shall receive less than
\$300,000, or one‑third of one percent of the sums appropriated for the
fiscal year for which the allotment is made, whichever is greater.

**(2)** **Certain territories**

**(A)** **In general**

For the purposes of this subsection, Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.

**(B)** **Allotment**

Each jurisdiction described in subparagraph (A) shall be allotted not
less than one‑eighth of one percent of the amounts appropriated for the
fiscal year for which the allotment is made.\`

**(b) Reallotment**

Whenever the Commissioner determines that any amount of an allotment to
a State for any fiscal year will not be expended by such State for
carrying out the provisions of this part, the Commissioner shall make
such amount available for carrying out the provisions of this part to
one or more of the States that the Commissioner determines will be able
to use additional amounts during such year for carrying out such
provisions. Any amount made available to a State for any fiscal year
pursuant to the preceding sentence shall, for the purposes of this
section, be regarded as an increase in the allotment of the State (as
determined under the preceding provisions of this section) for such
year.

**Sec. 623. Availability of Services**

Funds provided under this part may be used to provide supported
employment services to individuals who are eligible under this part.
Funds provided under this part, or title I, may not be used to provide
extended services to individuals who are eligible under this part or
title I.

**Sec. 624. Eligibility**

An individual shall be eligible under this part to receive supported
employment services authorized under this Act if‑‑

**(1)** the individual is eligible for vocational rehabilitation
services;

**(2)** the individual is determined to be an individual with a most
significant disability; and

**(3)** a comprehensive assessment of rehabilitation needs of the
individual described in section 7(2)(B), including an evaluation of
rehabilitation, career, and job needs, identifies supported employment
as the appropriate employment outcome for the individual.

**Sec. 625. State Plan**

**(a)** **State Plan Supplements**

To be eligible for an allotment under this part, a State shall submit to
the Commissioner, as part of the State plan under section 101, a State
plan supplement for providing supported employment services authorized
under this Act to individuals who are eligible under this Act to receive
the services. Each State shall make such annual revisions in the plan
supplement as may be necessary.

**(b)** **Contents**

Each such plan supplement shall‑‑

**(1)** designate each designated State agency as the agency to
administer the program assisted under this part;

**(2)** summarize the results of the comprehensive, statewide assessment
conducted under section 101(a)(15)(A)(i), with respect to the
rehabilitation needs of individuals with significant disabilities and
the need for supported employment services, including needs related to
coordination;

**(3)** describe the quality, scope, and extent of supported employment
services authorized under this Act to be provided to individuals who are
eligible under this Act to receive the services and specify the goals
and plans of the State with respect to the distribution of funds
received under section 622;

**(4)** demonstrate evidence of the efforts of the designated State
agency to identify and make arrangements (including entering into
cooperative agreements) with other State agencies and other appropriate
entities to assist in the provision of supported employment services;

**(5)** demonstrate evidence of the efforts of the designated State
agency to identify and make arrangements (including entering into
cooperative agreements) with other public or nonprofit agencies or
organizations within the State, employers, natural supports, and other
entities with respect to the provision of extended services;

**(6)** provide assurances that‑‑

**(A)** funds made available under this part will only be used to
provide supported employment services authorized under this Act to
individuals who are eligible under this part to receive the services;

**(B)** the comprehensive assessments of individuals with significant
disabilities conducted under section 102(b)(1) and funded under title I
will include consideration of supported employment as an appropriate
employment outcome;

**(C)** an individualized plan for employment, as required by section
102, will be developed and updated using funds under title I in order
to‑‑

**(i)** specify the supported employment services to be provided;

**(ii)** specify the expected extended services needed; and

**(iii)** identify the source of extended services, which may include
natural supports, or to the extent that it is not possible to identify
the source of extended services at the time the individualized plan for
employment is developed, a statement describing the basis for concluding
that there is a reasonable expectation that such sources will become
available;

**(D)** the State will use funds provided under this part only to
supplement, and not supplant, the funds provided under title I, in
providing supported employment services specified in the individualized
plan for employment;

**(E)** services provided under an individualized plan for employment
will be coordinated with services provided under other individualized
plans established under other Federal or State programs;

**(F)** to the extent jobs skills training is provided, the training
will be provided on site; and

**(G)** supported employment services will include placement in an
integrated setting for the maximum number of hours possible based on the
unique strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of individuals with the
most significant disabilities;

**(7)** provide assurances that the State agencies designated under
paragraph (1) will expend not more than 5 percent of the allotment of
the State under this part for administrative costs of carrying out this
part; and

**(8)** contain such other information and be submitted in such manner
as the Commissioner may require.

**Sec. 626. Restriction**

Each State agency designated under section 625(b)(1) shall collect the
information required by section 101(a)(10) separately for eligible
individuals receiving supported employment services under this part and
for eligible individuals receiving supported employment services under
title I.

**Sec. 627. Savings Provision**

**(a)** **Supported Employment Services**

Nothing in this Act shall be construed to prohibit a State from
providing supported employment services in accordance with the State
plan submitted under section 101 by using funds made available through a
State allotment under section 110.

**(b)** **Postemployment Services**

Nothing in this part shall be construed to prohibit a State from
providing discrete postemployment services in accordance with the State
plan submitted under section 101 by using funds made available through a
State allotment under section 110 to an individual who is eligible under
this part.

**Sec. 628. Authorization of Appropriations**

There are authorized to be appropriated to carry out this part such sums
as may be necessary for each of fiscal years 1999 through 2003.

**TITLE VII‑‑INDEPENDENT LIVING SERVICES**

**AND CENTERS FOR INDEPENDENT LIVING**

**Chapter 1‑‑Individuals with Significant Disabilities**

**Part A‑‑General Provisions**

**Sec. 701. Purpose**

The purpose of this chapter is to promote a philosophy of independent
living, including a philosophy of consumer control, peer support,
self‑help, self‑determination, equal access, and individual and system
advocacy, in order to maximize the leadership, empowerment,
independence, and productivity of individuals with disabilities, and the
integration and full inclusion of individuals with disabilities into the
mainstream of American society, by‑‑

**(1)** providing financial assistance to States for providing,
expanding, and improving the provision of independent living services;

**(2)** providing financial assistance to develop and support statewide
networks of centers for independent living; and

**(3)** providing financial assistance to States for improving working
relationships among State independent living rehabilitation service
programs, centers for independent living, Statewide Independent Living
Councils established under section 705, State vocational rehabilitation
programs receiving assistance under title I, State programs of supported
employment services receiving assistance under part B of title VI,
client assistance programs receiving assistance under section 112,
programs funded under other titles of this Act, programs funded under
other Federal law, and programs funded through non‑Federal sources.

**Sec. 702. Definitions**

As used in this chapter:

**(1)** **Center for independent living**

The term \"center for independent living\" means a consumer‑controlled,
community‑based, cross‑disability, nonresidential private nonprofit
agency that‑‑

**(A)** is designed and operated within a local community by individuals
with disabilities; and

**(B)** provides an array of independent living services.

**(2)** **Consumer control**

The term \"consumer control\" means, with respect to a center for
independent living, that the center vests power and authority in
individuals with disabilities.

**Sec. 703. Eligibility for Receipt of Services**

Services may be provided under this chapter to any individual with a
significant disability, as defined in section 7(21)(B).

**Sec. 704. State Plan**

**(a)** **In General**

**(1)** **Requirement**

To be eligible to receive financial assistance under this chapter, a
State shall submit to the Commissioner, and obtain approval of, a State
plan containing such provisions as the Commissioner may require,
including, at a minimum, the provisions required in this section.

**(2)** **Joint development**

The plan under paragraph (1) shall be jointly developed and signed by‑‑

**(A)** the director of the designated State unit; and

**(B)** the chairperson of the Statewide Independent Living Council,
acting on behalf of and at the direction of the Council.

**(3)** **Periodic review and revision**

The plan shall provide for the review and revision of the plan, not less
than once every 3 years, to ensure the existence of appropriate
planning, financial support and coordination, and other assistance to
appropriately address, on a statewide and comprehensive basis, needs in
the State for‑‑

**(A)** the provision of State independent living services;

**(B)** the development and support of a statewide network of centers
for independent living; and

**(C)** working relationships between‑‑

**(i)** programs providing independent living services and independent
living centers; and

**(ii)** the vocational rehabilitation program established under title
I, and other programs providing services for individuals with
disabilities.

**(4)** **Date of submission**

The State shall submit the plan to the Commissioner 90 days before the
completion date of the preceding plan. If a State fails to submit such a
plan that complies with the requirements of this section, the
Commissioner may withhold financial assistance under this chapter until
such time as the State submits such a plan.

**(b)** **Statewide Independent Living Council**

The plan shall provide for the establishment of a Statewide Independent
Living Council in accordance with section 705.

**(c)** **Designation of State Unit**

The plan shall designate the designated State unit of such State as the
agency that, on behalf of the State, shall‑‑

**(1)** receive, account for, and disburse funds received by the State
under this chapter based on the plan;

**(2)** provide administrative support services for a program under part
B, and a program under part C in a case in which the program is
administered by the State under section 723;

**(3)** keep such records and afford such access to such records as the
Commissioner finds to be necessary with respect to the programs; and

**(4)** submit such additional information or provide such assurances as
the Commissioner may require with respect to the programs.

**(d)** **Objectives**

The plan shall‑‑

**(1)** specify the objectives to be achieved under the plan and
establish timelines for the achievement of the objectives; and

**(2)** explain how such objectives are consistent with and further the
purpose of this chapter.

**(e)** **Independent Living Services**

The plan shall provide that the State will provide independent living
services under this chapter to individuals with significant
disabilities, and will provide the services to such an individual in
accordance with an independent living plan mutually agreed upon by an
appropriate staff member of the service provider and the individual,
unless the individual signs a waiver stating that such a plan is
unnecessary.

**(f)** **Scope and Arrangements**

The plan shall describe the extent and scope of independent living
services to be provided under this chapter to meet such objectives. If
the State makes arrangements, by grant or contract, for providing such
services, such arrangements shall be described in the plan.

**(g)** **Network**

The plan shall set forth a design for the establishment of a statewide
network of centers for independent living that comply with the standards
and assurances set forth in section 725.

**(h)** **Centers**

In States in which State funding for centers for independent living
equals or exceeds the amount of funds allotted to the State under part
C, as provided in section 723, the plan shall include policies,
practices, and procedures governing the awarding of grants to centers
for independent living and oversight of such centers consistent with
section 723.

**(i)** **Cooperation, Coordination, and Working Relationships Among
Various Entities**

The plan shall set forth the steps that will be taken to maximize the
cooperation, coordination, and working relationships among‑‑

**(1)** the independent living rehabilitation service program, the
Statewide Independent Living Council, and centers for independent
living; and

**(2)** the designated State unit, other State agencies represented on
such Council, other councils that address the needs of specific
disability populations and issues, and other public and private entities
determined to be appropriate by the Council.

**(j)** **Coordination of Services**

The plan shall describe how services funded under this chapter will be
coordinated with, and complement, other services, in order to avoid
unnecessary duplication with other Federal, State, and local programs.

**(k)** **Coordination Between Federal and State Sources**

The plan shall describe efforts to coordinate Federal and State funding
for centers for independent living and independent living services.

**(l)** **Outreach**

With respect to services and centers funded under this chapter, the plan
shall set forth steps to be taken regarding outreach to populations that
are unserved or underserved by programs under this title, including
minority groups and urban and rural populations.

**(m)** **Requirements**

The plan shall provide satisfactory assurances that all recipients of
financial assistance under this chapter will‑‑

**(1)** notify all individuals seeking or receiving services under this
chapter about the availability of the client assistance program under
section 112, the purposes of the services provided under such program,
and how to contact such program;

**(2)** take affirmative action to employ and advance in employment
qualified individuals with disabilities on the same terms and conditions
required with respect to the employment of such individuals under the
provisions of section 503;

**(3)** adopt such fiscal control and fund accounting procedures as may
be necessary to ensure the proper disbursement of and accounting for
funds paid to the State under this chapter;

**(4)(A)** maintain records that fully disclose‑‑

**(i)** the amount and disposition by such recipient of the proceeds of
such financial assistance;

**(ii)** the total cost of the project or undertaking in connection with
which such financial assistance is given or used; and

**(iii)** the amount of that portion of the cost of the project or
undertaking supplied by other sources;

**(B)** maintain such other records as the Commissioner determines to be
appropriate to facilitate an effective audit;

**(C)** afford such access to records maintained under subparagraphs (A)
and (B) as the Commissioner determines to be appropriate; and

**(D)** submit such reports with respect to such records as the
Commissioner determines to be appropriate;

**(5)** provide access to the Commissioner and the Comptroller General
or any of their duly authorized representatives, for the purpose of
conducting audits and examinations, of any books, documents, papers, and
records of the recipients that are pertinent to the financial assistance
received under this chapter; and

**(6)** provide for public hearings regarding the contents of the plan
during both the formulation and review of the plan.

**(n)** **Evaluation**

The plan shall establish a method for the periodic evaluation of the
effectiveness of the plan in meeting the objectives established in
subsection (d), including evaluation of satisfaction by individuals with
disabilities.

**Sec. 705. Statewide Independent Living Council**

**(a)** **Establishment**

To be eligible to receive financial assistance under this chapter, each
State shall establish a Statewide Independent Living Council (referred
to in this section as the \"Council\"). The Council shall not be
established as an entity within a State agency.

**(b)** **Composition and Appointment**

**(1)** **Appointment**

Members of the Council shall be appointed by the Governor or, in the
case of a State that, under State law, vests authority for the
administration of the activities carried out under this Act in an entity
other than the Governor (such as one or more houses of the State
legislature or an independent board), the chief officer of that entity.
The appointing authority shall select members after soliciting
recommendations from representatives of organizations representing a
broad range of individuals with disabilities and organizations
interested in individuals with disabilities.

**(2)** **Composition**

The Council shall include‑‑

**(A)** at least one director of a center for independent living chosen
by the directors of centers for independent living within the State;

**(B)** as ex officio, nonvoting members‑‑

**(i)** a representative from the designated State unit; and

**(ii)** representatives from other State agencies that provide services
for individuals with disabilities; and

**(C)** in a State in which 1 or more projects are carried out under
section 121, at least 1 representative of the directors of the projects.

**(3)** **Additional members**

The Council may include‑‑

**(A)** other representatives from centers for independent living;

**(B)** parents and guardians of individuals with disabilities;

**(C)** advocates of and for individuals with disabilities;

**(D)** representatives from private businesses;

**(E)** representatives from organizations that provide services for
individuals with disabilities; and

**(F)** other appropriate individuals.

**(4)** **Qualifications**

**(A)** **In general**

The Council shall be composed of members‑‑

**(i)** who provide statewide representation;

**(ii)** who represent a broad range of individuals with disabilities
from diverse backgrounds;

**(iii)** who are knowledgeable about centers for independent living and
independent living services; and

**(iv)** a majority of whom are persons who are‑‑

**(I)** individuals with disabilities described in section 7(20)(B); and

**(II)** not employed by any State agency or center for independent
living.

**(B)** **Voting members**

A majority of the voting members of the Council shall be‑‑

**(i)** individuals with disabilities described in section 7(20)(B); and

**(ii)** not employed by any State agency or center for independent
living.

**(5)** **Chairperson**

**(A)** **In general**

Except as provided in subparagraph (B), the Council shall select a
chairperson from among the voting membership of the Council.

**(B)** **Designation by chief executive officer**

In States in which the Governor does not have veto power pursuant to
State law, the appointing authority described in paragraph (1) shall
designate a voting member of the Council to serve as the chairperson of
the Council or shall require the Council to so designate such a voting
member.

**(6) Terms of appointment**

**(A)** **Length of term**

Each member of the Council shall serve for a term of 3 years, except
that‑‑

**(i)** a member appointed to fill a vacancy occurring prior to the
expiration of the term for which a predecessor was appointed, shall be
appointed for the remainder of such term; and

**(ii)** the terms of service of the members initially appointed shall
be (as specified by the appointing authority described in paragraph (1))
for such fewer number of years as will provide for the expiration of
terms on a staggered basis.

**(B)** **Number of terms**

No member of the Council may serve more than two consecutive full terms.

**(7)** **Vacancies**

**(A)** **In general**

Except as provided in subparagraph (B), any vacancy occurring in the
membership of the Council shall be filled in the same manner as the
original appointment. The vacancy shall not affect the power of the
remaining members to execute the duties of the Council.

**(B)** **Delegation**

The appointing authority described in paragraph (1) may delegate the
authority to fill such a vacancy to the remaining voting members of the
Council after making the original appointment.

**(c)** **Duties**

The Council shall‑‑

**(1)** jointly develop and sign (in conjunction with the designated
State unit) the State plan required in section 704;

**(2)** monitor, review, and evaluate the implementation of the State
plan;

**(3)** coordinate activities with the State Rehabilitation Council
established under section 105, if the State has such a Council, or the
commission described in section 101(a)(21)(A), if the State has such a
commission, and councils that address the needs of specific disability
populations and issues under other Federal law;

**(4)** ensure that all regularly scheduled meetings of the Statewide
Independent Living Council are open to the public and sufficient advance
notice is provided; and

**(5)** submit to the Commissioner such periodic reports as the
Commissioner may reasonably request, and keep such records, and afford
such access to such records, as the Commissioner finds necessary to
verify such reports.

**(d) Hearings and Forums**

The Council is authorized to hold such hearings and forums as the
Council may determine to be necessary to carry out the duties of the
Council.

**(e)** **Plan**

**(1)** **In general**

The Council shall prepare, in conjunction with the designated State
unit, a plan for the provision of such resources, including such staff
and personnel, as may be necessary and sufficient to carry out the
functions of the Council under this section, with funds made available
under this chapter, and under section 110 (consistent with section
101(a)(18)), and from other public and private sources. The resource
plan shall, to the maximum extent possible, rely on the use of resources
in existence during the period of implementation of the plan.

**(2)** **Supervision and evaluation**

Each Council shall, consistent with State law, supervise and evaluate
such staff and other personnel as may be necessary to carry out the
functions of the Council under this section.

**(3)** **Conflict of interest**

While assisting the Council in carrying out its duties, staff and other
personnel shall not be assigned duties by the designated State agency or
any other agency or office of the State, that would create a conflict of
interest.

**(f)** **Compensation and Expenses**

The Council may use such resources to reimburse members of the Council
for reasonable and necessary expenses of attending Council meetings and
performing Council duties (including child care and personal assistance
services), and to pay compensation to a member of the Council, if such
member is not employed or must forfeit wages from other employment, for
each day the member is engaged in performing Council duties.

**Sec. 706. Responsibilities of the Commissioner**

**(a)** **Approval of State Plans**

**(1)** **In general**

The Commissioner shall approve any State plan submitted under section
704 that the Commissioner determines meets the requirements of section
704, and shall disapprove any such plan that does not meet such
requirements, as soon as practicable after receiving the plan. Prior to
such disapproval, the Commissioner shall notify the State of the
intention to disapprove the plan, and shall afford such State reasonable
notice and opportunity for a hearing.

**(2)** **Procedures**

**(A)** **In general**

Except as provided in subparagraph (B), the provisions of subsections
(c) and (d) of section 107 shall apply to any State plan submitted to
the Commissioner under section 704.

**(B)** **Application**

For purposes of the application described in subparagraph (A), all
references in such provisions‑‑

**(i)** to the Secretary shall be deemed to be references to the
Commissioner; and

**(ii)** to section 101 shall be deemed to be references to section 704.

**(b)** **Indicators**

Not later than October 1, 1993, the Commissioner shall develop and
publish in the Federal Register indicators of minimum compliance
consistent with the standards set forth in section 725.

**(c)** **Onsite Compliance Reviews**

**(1)** **Reviews**

The Commissioner shall annually conduct onsite compliance reviews of at
least 15 percent of the centers for independent living that receive
funds under section 722 and shall periodically conduct such a review of
each such center. The Commissioner shall annually conduct onsite
compliance reviews of at least one‑third of the designated State units
that receive funding under section 723, and, to the extent necessary to
determine the compliance of such a State unit with subsections (f) and
(g) of section 723, centers that receive funding under section 723 in
such State. The Commissioner shall select the centers and State units
described in this paragraph for review on a random basis.

**(2)** **Qualifications of employees conducting reviews**

The Commissioner shall‑‑

**(A)** to the maximum extent practicable, carry out such a review by
using employees of the Department who are knowledgeable about the
provision of independent living services;

**(B)** ensure that the employee of the Department with responsibility
for supervising such a review shall have such knowledge; and

**(C)** ensure that at least one member of a team conducting such a
review shall be an individual who‑‑

**(i)** is not a government employee; and

**(ii)** has experience in the operation of centers for independent
living.

**(d) Reports**

The Commissioner shall include, in the annual report required under
section 13, information on the extent to which centers for independent
living receiving funds under part C have complied with the standards and
assurances set forth in section 725. The Commissioner may identify
individual centers for independent living in the analysis. The
Commissioner shall report the results of onsite compliance reviews,
identifying individual centers for independent living and other
recipients of assistance under this chapter.

**Part B‑‑Independent Living Services**

**Sec. 711. Allotments**

**(a)** **In General**

**(1)** **States**

**(A)** **Population basis**

Except as provided in subparagraphs (B) and (C), from sums appropriated
for each fiscal year to carry out this part, the Commissioner shall make
an allotment to each State whose State plan has been approved under
section 706 of an amount bearing the same ratio to such sums as the
population of the State bears to the population of all States.

**(B)** **Maintenance of 1992 amounts**

Subject to the availability of appropriations to carry out this part,
the amount of any allotment made under subparagraph (A) to a State for a
fiscal year shall not be less than the amount of an allotment made to
the State for fiscal year 1992 under part A of this title, as in effect
on the day before the date of enactment of the Rehabilitation Act
Amendments of 1992.

**(C)** **Minimums**

Subject to the availability of appropriations to carry out this part,
and except as provided in subparagraph (B), the allotment to any State
under subparagraph (A) shall be not less than \$275,000 or one‑third of
one percent of the sums made available for the fiscal year for which the
allotment is made, whichever is greater, and the allotment of any State
under this section for any fiscal year that is less than \$275,000 or
one‑third of one percent of such sums shall be increased to the greater
of the two amounts.

**(2)** **Certain territories**

**(A)** **In general**

For the purposes of paragraph (1)(C), Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.

**(B)** **Allotment**

Each jurisdiction described in subparagraph (A) shall be allotted under
paragraph (1)(A) not less than one‑eighth of one percent of the amounts
made available for purposes of this part for the fiscal year for which
the allotment is made.

**(3)** **Adjustment for inflation**

For any fiscal year, beginning in fiscal year 1999, in which the total
amount appropriated to carry out this part exceeds the total amount
appropriated to carry out this part for the preceding fiscal year, the
Commissioner shall increase the minimum allotment under paragraph (1)(C)
by a percentage that shall not exceed the percentage increase in the
total amount appropriated to carry out this part between the preceding
fiscal year and the fiscal year involved.

**(b)** **Proportional Reduction**

To provide allotments to States in accordance with subsection (a)(1)(B),
to provide minimum allotments to States (as increased under subsection
(a)(3)) under subsection (a)(1)(C), or to provide minimum allotments to
States under subsection (a)(2)(B), the Commissioner shall
proportionately reduce the allotments of the remaining States under
subsection (a)(1)(A), with such adjustments as may be necessary to
prevent the allotment of any such remaining State from being reduced to
less than the amount required by subsection (a)(1)(B).

**(c)** **Reallotment**

Whenever the Commissioner determines that any amount of an allotment to
a State for any fiscal year will not be expended by such State in
carrying out the provisions of this part, the Commissioner shall make
such amount available for carrying out the provisions of this part to
one or more of the States that the Commissioner determines will be able
to use additional amounts during such year for carrying out such
provisions. Any amount made available to a State for any fiscal year
pursuant to the preceding sentence shall, for the purposes of this
section, be regarded as an increase in the allotment of the State (as
determined under the preceding provisions of this section) for such
year.

**Sec. 712. Payments to States from Allotments**

**(a)** **Payments**

From the allotment of each State for a fiscal year under section 711,
the State shall be paid the Federal share of the expenditures incurred
during such year under its State plan approved under section 706. Such
payments may be made (after necessary adjustments on account of
previously made overpayments or underpayments) in advance or by way of
reimbursement, and in such installments and on such conditions as the
Commissioner may determine.

**(b)** **Federal Share**

**(1)** **In general**

The Federal share with respect to any State for any fiscal year shall be
90 percent of the expenditures incurred by the State during such year
under its State plan approved under section 706.

**(2)** **Non‑federal share**

The non‑Federal share of the cost of any project that receives
assistance through an allotment under this part may be provided in cash
or in kind, fairly evaluated, including plant, equipment, or services.

**Sec. 713. Authorized Uses of Funds**

The State may use funds received under this part to provide the
resources described in section 705(e), relating to the Statewide
Independent Living Council, and may use funds received under this part‑‑

**(1)** to provide independent living services to individuals with
significant disabilities;

**(2)** to demonstrate ways to expand and improve independent living
services;

**(3)** to support the operation of centers for independent living that
are in compliance with the standards and assurances set forth in
subsections (b) and (c) of section 725;

**(4)** to support activities to increase the capacities of public or
nonprofit agencies and organizations and other entities to develop
comprehensive approaches or systems for providing independent living
services;

**(5)** to conduct studies and analyses, gather information, develop
model policies and procedures, and present information, approaches,
strategies, findings, conclusions, and recommendations to Federal,
State, and local policymakers in order to enhance independent living
services for individuals with disabilities;

**(6)** to train individuals with disabilities and individuals providing
services to individuals with disabilities and other persons regarding
the independent living philosophy; and

**(7)** to provide outreach to populations that are unserved or
underserved by programs under this title, including minority groups and
urban and rural populations.

**Sec. 714. Authorization of Appropriations**

There are authorized to be appropriated to carry out this part such sums
as may be necessary for each of the fiscal years 1999 through 2003.

**Part C‑‑Centers for Independent Living**

**Sec. 721. Program Authorization**

**(a)** **In General**

From the funds appropriated for fiscal year 1999 and for each subsequent
fiscal year to carry out this part, the Commissioner shall allot such
sums as may be necessary to States and other entities in accordance with
subsections (b) through (d).

**(b)** **Training**

**(1)** **Grants; contracts; other arrangements**

For any fiscal year in which the funds appropriated to carry out this
part exceed the funds appropriated to carry out this part for fiscal
year 1993, the Commissioner shall first reserve from such excess, to
provide training and technical assistance to eligible agencies, centers
for independent living, and Statewide Independent Living Councils for
such fiscal year, not less than 1.8 percent, and not more than 2
percent, of the funds appropriated to carry out this part for the fiscal
year involved.

**(2)** **Allocation**

From the funds reserved under paragraph (1), the Commissioner shall make
grants to, and enter into contracts and other arrangements with,
entities that have experience in the operation of centers for
independent living to provide such training and technical assistance
with respect to planning, developing, conducting, administering, and
evaluating centers for independent living.

**(3)** **Funding priorities**

The Commissioner shall conduct a survey of Statewide Independent Living
Councils and centers for independent living regarding training and
technical assistance needs in order to determine funding priorities for
such grants, contracts, and other arrangements.

**(4)** **Review**

To be eligible to receive a grant or enter into a contract or other
arrangement under this subsection, such an entity shall submit an
application to the Commissioner at such time, in such manner, and
containing a proposal to provide such training and technical assistance,
and containing such additional information as the Commissioner may
require. The Commissioner shall provide for peer review of grant
applications by panels that include persons who are not government
employees and who have experience in the operation of centers for
independent living.

**(5)** **Prohibition on combined funds**

No funds reserved by the Commissioner under this subsection may be
combined with funds appropriated under any other Act or part of this Act
if the purpose of combining funds is to make a single discretionary
grant or a single discretionary payment, unless such funds appropriated
under this chapter are separately identified in such grant or payment
and are used for the purposes of this chapter.

**(c)** **In General**

**(1)** **States**

**(A)** **Population basis**

After the reservation required by subsection (b) has been made, and
except as provided in subparagraphs (B) and (C), from the remainder of
the amounts appropriated for each such fiscal year to carry out this
part, the Commissioner shall make an allotment to each State whose State
plan has been approved under section 706 of an amount bearing the same
ratio to such remainder as the population of the State bears to the
population of all States.

**(B)** **Maintenance of 1992 amounts**

Subject to the availability of appropriations to carry out this part,
the amount of any allotment made under subparagraph (A) to a State for a
fiscal year shall not be less than the amount of financial assistance
received by centers for independent living in the State for fiscal year
1992 under part B of this title, as in effect on the day before the date
of enactment of the Rehabilitation Act Amendments of 1992.

**(C)** **Minimums**

Subject to the availability of appropriations to carry out this part and
except as provided in subparagraph (B), for a fiscal year in which the
amounts appropriated to carry out this part exceed the amounts
appropriated for fiscal year 1992 to carry out part B of this title, as
in effect on the day before the date of enactment of the Rehabilitation
Act Amendments of 1992‑‑

**(i)** if such excess is not less than \$8,000,000, the allotment to
any State under subparagraph (A) shall be not less than \$450,000 or
one‑third of one percent of the sums made available for the fiscal year
for which the allotment is made, whichever is greater, and the allotment
of any State under this section for any fiscal year that is less than
\$450,000 or one‑third of one percent of such sums shall be increased to
the greater of the two amounts;

**(ii)** if such excess is not less than \$4,000,000 and is less than
\$8,000,000, the allotment to any State under subparagraph (A) shall be
not less than \$400,000 or one‑third of one percent of the sums made
available for the fiscal year for which the allotment is made, whichever
is greater, and the allotment of any State under this section for any
fiscal year that is less than \$400,000 or one‑third of one percent of
such sums shall be increased to the greater of the two amounts; and

**(iii)** if such excess is less than \$4,000,000, the allotment to any
State under subparagraph (A) shall approach, as nearly as possible, the
greater of the two amounts described in clause (ii).

**(2)** **Certain territories**

**(A)** **In general**

For the purposes of paragraph (1)(C), Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the Northern Mariana
Islands shall not be considered to be States.

**(B)** **Allotment**

Each jurisdiction described in subparagraph (A) shall be allotted under
paragraph (1)(A) not less than one‑eighth of one percent of the
remainder for the fiscal year for which the allotment is made.

**(3)** **Adjustment for inflation**

For any fiscal year, beginning in fiscal year 1999, in which the total
amount appropriated to carry out this part exceeds the total amount
appropriated to carry out this part for the preceding fiscal year, the
Commissioner shall increase the minimum allotment under paragraph (1)(C)
by a percentage that shall not exceed the percentage increase in the
total amount appropriated to carry out this part between the preceding
fiscal year and the fiscal year involved.

**(4)** **Proportional reduction**

To provide allotments to States in accordance with paragraph (1)(B), to
provide minimum allotments to States (as increased under paragraph (3))
under paragraph (1)(C), or to provide minimum allotments to States under
paragraph (2)(B), the Commissioner shall proportionately reduce the
allotments of the remaining States under paragraph (1)(A), with such
adjustments as may be necessary to prevent the allotment of any such
remaining State from being reduced to less than the amount required by
paragraph (1)(B).

**(d)** **Reallotment**

Whenever the Commissioner determines that any amount of an allotment to
a State for any fiscal year will not be expended by such State for
carrying out the provisions of this part, the Commissioner shall make
such amount available for carrying out the provisions of this part to
one or more of the States that the Commissioner determines will be able
to use additional amounts during such year for carrying out such
provisions. Any amount made available to a State for any fiscal year
pursuant to the preceding sentence shall, for the purposes of this
section, be regarded as an increase in the allotment of the State (as
determined under the preceding provisions of this section) for such
year.

**Sec. 722. Grants to Centers for Independent Living in States in Which
Federal Funding Exceeds State Funding**

**(a) Establishment**

**(1)** **In general**

Unless the director of a designated State unit awards grants under
section 723 to eligible agencies in a State for a fiscal year, the
Commissioner shall award grants under this section to such eligible
agencies for such fiscal year from the amount of funds allotted to the
State under subsection (c) or (d) of section 721 for such year.

**(2)** **Grants**

The Commissioner shall award such grants, from the amount of funds so
allotted, to such eligible agencies for the planning, conduct,
administration, and evaluation of centers for independent living that
comply with the standards and assurances set forth in section 725.

**(b)** **Eligible Agencies**

In any State in which the Commissioner has approved the State plan
required by section 704, the Commissioner may make a grant under this
section to any eligible agency that‑‑

**(1)** has the power and authority to carry out the purpose of this
part and perform the functions set forth in section 725 within a
community and to receive and administer funds under this part, funds and
contributions from private or public sources that may be used in support
of a center for independent living, and funds from other public and
private programs;

**(2)** is determined by the Commissioner to be able to plan, conduct,
administer, and evaluate a center for independent living consistent with
the standards and assurances set forth in section 725; and

**(3)** submits an application to the Commissioner at such time, in such
manner, and containing such information as the Commissioner may require.

**(c)** **Existing Eligible Agencies**

In the administration of the provisions of this section, the
Commissioner shall award grants to any eligible agency that has been
awarded a grant under this part by September 30, 1997, unless the
Commissioner makes a finding that the agency involved fails to meet
program and fiscal standards and assurances set forth in section 725.

**(d)** **New Centers for Independent Living**

**(1)** **In general**

If there is no center for independent living serving a region of the
State or a region is underserved, and the increase in the allotment of
the State is sufficient to support an additional center for independent
living in the State, the Commissioner may award a grant under this
section to the most qualified applicant proposing to serve such region,
consistent with the provisions in the State plan setting forth the
design of the State for establishing a statewide network of centers for
independent living.

**(2)** **Selection**

In selecting from among applicants for a grant under this section for a
new center for independent living, the Commissioner‑‑

**(A)** shall consider comments regarding the application, if any, by
the Statewide Independent Living Council in the State in which the
applicant is located;

**(B)** shall consider the ability of each such applicant to operate a
center for independent living based on‑‑

**(i)** evidence of the need for such a center;

**(ii)** any past performance of such applicant in providing services
comparable to independent living services;

**(iii)** the plan for satisfying or demonstrated success in satisfying
the standards and the assurances set forth in section 725;

**(iv)** the quality of key personnel and the involvement of individuals
with significant disabilities;

**(v)** budgets and cost‑effectiveness;

**(vi)** an evaluation plan; and

**(vii)** the ability of such applicant to carry out the plans; and

**(C)** shall give priority to applications from applicants proposing to
serve geographic areas within each State that are currently unserved or
underserved by independent living programs, consistent with the
provisions of the State plan submitted under section 704 regarding
establishment of a statewide network of centers for independent living.

**(3)** **Current centers**

Notwithstanding paragraphs (1) and (2), a center for independent living
that receives assistance under part B for a fiscal year shall be
eligible for a grant for the subsequent fiscal year under this
subsection.

**(e)** **Order of Priorities**

The Commissioner shall be guided by the following order of priorities in
allocating funds among centers for independent living within a State, to
the extent funds are available:

**(1)** The Commissioner shall support existing centers for independent
living, as described in subsection (c), that comply with the standards
and assurances set forth in section 725, at the level of funding for the
previous year.

**(2)** The Commissioner shall provide for a cost‑of‑living increase for
such existing centers for independent living.

**(3)** The Commissioner shall fund new centers for independent living,
as described in subsection (d), that comply with the standards and
assurances set forth in section 725.

**(f)** **Nonresidential Agencies**

A center that provides or manages residential housing after October 1,
1994, shall not be considered to be an eligible agency under this
section.

**(g)** **Review**

**(1)** **In general**

The Commissioner shall periodically review each center receiving funds
under this section to determine whether such center is in compliance
with the standards and assurances set forth in section 725. If the
Commissioner determines that any center receiving funds under this
section is not in compliance with the standards and assurances set forth
in section 725, the Commissioner shall immediately notify such center
that it is out of compliance.

**(2)** **Enforcement**

The Commissioner shall terminate all funds under this section to such
center 90 days after the date of such notification unless the center
submits a plan to achieve compliance within 90 days of such notification
and such plan is approved by the Commissioner.

**Sec. 723. Grants to Centers for Independent Living in States in Which
State Funding Equals or Exceeds Federal Funding**

**(a)** **Establishment**

**(1)** **In general**

**(A)** **Initial year**

**(i)** **Determination**

The director of a designated State unit, as provided in paragraph (2),
or the Commissioner, as provided in paragraph (3), shall award grants
under this section for an initial fiscal year if the Commissioner
determines that the amount of State funds that were earmarked by a State
for a preceding fiscal year to support the general operation of centers
for independent living meeting the requirements of this part equaled or
exceeded the amount of funds allotted to the State under subsection (c)
or (d) of section 721 for such year.

**(ii)** **Grants**

The director or the Commissioner, as appropriate, shall award such
grants, from the amount of funds so allotted for the initial fiscal
year, to eligible agencies in the State for the planning, conduct,
administration, and evaluation of centers for independent living that
comply with the standards and assurances set forth in section 725.

**(iii)** **Regulation**

The Commissioner shall by regulation specify the preceding fiscal year
with respect to which the Commissioner will make the determinations
described in clause (i) and subparagraph (B), making such adjustments as
may be necessary to accommodate State funding cycles such as 2‑year
funding cycles or State fiscal years that do not coincide with the
Federal fiscal year.

**(B)** **Subsequent years**

For each year subsequent to the initial fiscal year described in
subparagraph (A), the director of the designated State unit shall
continue to have the authority to award such grants under this section
if the Commissioner determines that the State continues to earmark the
amount of State funds described in subparagraph (A)(i). If the State
does not continue to earmark such an amount for a fiscal year, the State
shall be ineligible to make grants under this section after a final year
following such fiscal year, as defined in accordance with regulations
established by the Commissioner, and for each subsequent fiscal year.

**(2)** **Grants by designated state units**

In order for the designated State unit to be eligible to award the
grants described in paragraph (1) and carry out this section for a
fiscal year with respect to a State, the designated State agency shall
submit an application to the Commissioner at such time, and in such
manner as the Commissioner may require, including information about the
amount of State funds described in paragraph (1) for the preceding
fiscal year. If the Commissioner makes a determination described in
subparagraph (A)(i) or (B), as appropriate, of paragraph (1), the
Commissioner shall approve the application and designate the director of
the designated State unit to award the grant and carry out this section.

**(3)** **Grants by commissioner**

If the designated State agency of a State described in paragraph (1)
does not submit and obtain approval of an application under paragraph
(2), the Commissioner shall award the grant described in paragraph (1)
to eligible agencies in the State in accordance with section 722.

**(b)** **Eligible Agencies**

In any State in which the Commissioner has approved the State plan
required by section 704, the director of the designated State unit may
award a grant under this section to any eligible agency that‑‑

**(1)** has the power and authority to carry out the purpose of this
part and perform the functions set forth in section 725 within a
community and to receive and administer funds under this part, funds and
contributions from private or public sources that may be used in support
of a center for independent living, and funds from other public and
private programs;

**(2)** is determined by the director to be able to plan, conduct,
administer, and evaluate a center for independent living, consistent
with the standards and assurances set forth in section 725; and

**(3)** submits an application to the director at such time, in such
manner, and containing such information as the head of the designated
State unit may require.

**(c)** **Existing Eligible Agencies**

In the administration of the provisions of this section, the director of
the designated State unit shall award grants under this section to any
eligible agency that has been awarded a grant under this part by
September 30, 1997, unless the director makes a finding that the agency
involved fails to comply with the standards and assurances set forth in
section 725.

**(d)** **New Centers for Independent Living**

**(1)** **In general**

If there is no center for independent living serving a region of the
State or the region is unserved or underserved, and the increase in the
allotment of the State is sufficient to support an additional center for
independent living in the State, the director of the designated State
unit may award a grant under this section from among eligible agencies,
consistent with the provisions of the State plan under section 704
setting forth the design of the State for establishing a statewide
network of centers for independent living.

**(2)** **Selection**

In selecting from among eligible agencies in awarding a grant under this
part for a new center for independent living‑‑

**(A)** the director of the designated State unit and the chairperson
of, or other individual designated by, the Statewide Independent Living
Council acting on behalf of and at the direction of the Council, shall
jointly appoint a peer review committee that shall rank applications in
accordance with the standards and assurances set forth in section 725
and criteria jointly established by such director and such chairperson
or individual;

**(B)** the peer review committee shall consider the ability of each
such applicant to operate a center for independent living, and shall
recommend an applicant to receive a grant under this section, based on‑‑

**(i)** evidence of the need for a center for independent living,
consistent with the State plan;

**(ii)** any past performance of such applicant in providing services
comparable to independent living services;

**(iii)** the plan for complying with, or demonstrated success in
complying with, the standards and the assurances set forth in section
725;

**(iv)** the quality of key personnel of the applicant and the
involvement of individuals with significant disabilities by the
applicant;

**(v)** the budgets and cost‑effectiveness of the applicant;

**(vi)** the evaluation plan of the applicant; and

**(vii)** the ability of such applicant to carry out the plans; and

**(C)** the director of the designated State unit shall award the grant
on the basis of the recommendations of the peer review committee if the
actions of the committee are consistent with Federal and State law.

**(3)** **Current centers**

Notwithstanding paragraphs (1) and (2), a center for independent living
that receives assistance under part B for a fiscal year shall be
eligible for a grant for the subsequent fiscal year under this
subsection.

**(e)** **Order of Priorities**

Unless the director of the designated State unit and the chairperson of
the Council or other individual designated by the Council acting on
behalf of and at the direction of the Council jointly agree on another
order of priority, the director shall be guided by the following order
of priorities in allocating funds among centers for independent living
within a State, to the extent funds are available:

**(1)** The director of the designated State unit shall support existing
centers for independent living, as described in subsection (c), that
comply with the standards and assurances set forth in section 725, at
the level of funding for the previous year.

**(2)** The director of the designated State unit shall provide for a
cost‑of‑living increase for such existing centers for independent
living.

**(3)** The director of the designated State unit shall fund new centers
for independent living, as described in subsection (d), that comply with
the standards and assurances set forth in section 725.

**(f)** **Nonresidential Agencies**

A center that provides or manages residential housing after October 1,
1994, shall not be considered to be an eligible agency under this
section.

**(g)** **Review**

**(1)** **In general**

The director of the designated State unit shall periodically review each
center receiving funds under this section to determine whether such
center is in compliance with the standards and assurances set forth in
section 725. If the director of the designated State unit determines
that any center receiving funds under this section is not in compliance
with the standards and assurances set forth in section 725, the director
of the designated State unit shall immediately notify such center that
it is out of compliance.

**(2)** **Enforcement**

The director of the designated State unit shall terminate all funds
under this section to such center 90 days after‑‑

**(A)** the date of such notification; or

**(B)** in the case of a center that requests an appeal under subsection
(i), the date of any final decision under subsection (i), unless the
center submits a plan to achieve compliance within 90 days and such plan
is approved by the director, or if appealed, by the Commissioner.

**(h)** **Onsite Compliance Review**

The director of the designated State unit shall annually conduct onsite
compliance reviews of at least 15 percent of the centers for independent
living that receive funding under this section in the State. Each team
that conducts onsite compliance review of centers for independent living
shall include at least one person who is not an employee of the
designated State agency, who has experience in the operation of centers
for independent living, and who is jointly selected by the director of
the designated State unit and the chairperson of or other individual
designated by the Council acting on behalf of and at the direction of
the Council. A copy of this review shall be provided to the
Commissioner.

**(i)** **Adverse Actions**

If the director of the designated State unit proposes to take a
significant adverse action against a center for independent living, the
center may seek mediation and conciliation to be provided by an
individual or individuals who are free of conflicts of interest
identified by the chairperson of or other individual designated by the
Council. If the issue is not resolved through the mediation and
conciliation, the center may appeal the proposed adverse action to the
Commissioner for a final decision.

**Sec. 724. Centers Operated by State Agencies**

A State that receives assistance for fiscal year 1993 with respect to a
center in accordance with subsection (a) of this section (as in effect
on the day before the date of enactment of the Rehabilitation Act
Amendments of 1998) may continue to receive assistance under this part
for fiscal year 1994 or a succeeding fiscal year if, for such fiscal
year‑‑

**(1)** no nonprofit private agency‑‑

**(A)** submits an acceptable application to operate a center for
independent living for the fiscal year before a date specified by the
Commissioner; and

**(B)** obtains approval of the application under section 722 or 723; or

**(2)** after funding all applications so submitted and approved, the
Commissioner determines that funds remain available to provide such
assistance.

**Sec. 725. Standards and Assurances for Centers for Independent
Living**

**(a)** **In General**

Each center for independent living that receives assistance under this
part shall comply with the standards set out in subsection (b) and
provide and comply with the assurances set out in subsection (c) in
order to ensure that all programs and activities under this part are
planned, conducted, administered, and evaluated in a manner consistent
with the purposes of this chapter and the objective of providing
assistance effectively and efficiently.

**(b)** **Standards**

**(1)** **Philosophy**

The center shall promote and practice the independent living philosophy
of‑‑

**(A)** consumer control of the center regarding decisionmaking, service
delivery, management, and establishment of the policy and direction of
the center;

**(B)** self‑help and self‑advocacy;

**(C)** development of peer relationships and peer role models; and

**(D)** equal access of individuals with significant disabilities to
society and to all services, programs, activities, resources, and
facilities, whether public or private and regardless of the funding
source.

**(2)** **Provision of services**

The center shall provide services to individuals with a range of
significant disabilities. The center shall provide services on a
cross‑disability basis (for individuals with all different types of
significant disabilities, including individuals with significant
disabilities who are members of populations that are unserved or
underserved by programs under this title). Eligibility for services at
any center for independent living shall be determined by the center, and
shall not be based on the presence of any one or more specific
significant disabilities.

**(3)** **Independent living goals**

The center shall facilitate the development and achievement of
independent living goals selected by individuals with significant
disabilities who seek such assistance by the center.

**(4)** **Community options**

The center shall work to increase the availability and improve the
quality of community options for independent living in order to
facilitate the development and achievement of independent living goals
by individuals with significant disabilities.

**(5)** **Independent living core services**

The center shall provide independent living core services and, as
appropriate, a combination of any other independent living services.

**(6)** **Activities to increase community capacity**

The center shall conduct activities to increase the capacity of
communities within the service area of the center to meet the needs of
individuals with significant disabilities.

**(7)** **Resource development activities**

The center shall conduct resource development activities to obtain
funding from sources other than this chapter.

**(c)** **Assurances**

The eligible agency shall provide at such time and in such manner as the
Commissioner may require, such satisfactory assurances as the
Commissioner may require, including satisfactory assurances that‑‑

**(1)** the applicant is an eligible agency;

**(2)** the center will be designed and operated within local
communities by individuals with disabilities, including an assurance
that the center will have a Board that is the principal governing body
of the center and a majority of which shall be composed of individuals
with significant disabilities;

**(3)** the applicant will comply with the standards set forth in
subsection (b);

**(4)** the applicant will establish clear priorities through annual and
3‑year program and financial planning objectives for the center,
including overall goals or a mission for the center, a work plan for
achieving the goals or mission, specific objectives, service priorities,
and types of services to be provided, and a description that shall
demonstrate how the proposed activities of the applicant are consistent
with the most recent 3‑year State plan under section 704;

**(5)** the applicant will use sound organizational and personnel
assignment practices, including taking affirmative action to employ and
advance in employment qualified individuals with significant
disabilities on the same terms and conditions required with respect to
the employment of individuals with disabilities under section 503;

**(6)** the applicant will ensure that the majority of the staff, and
individuals in decisionmaking positions, of the applicant are
individuals with disabilities;

**(7)** the applicant will practice sound fiscal management;

**(8)** the applicant will conduct annual self‑evaluations, prepare an
annual report, and maintain records adequate to measure performance with
respect to the standards, containing information regarding, at a
minimum‑‑

**(A)** the extent to which the center is in compliance with the
standards;

**(B)** the number and types of individuals with significant
disabilities receiving services through the center;

**(C)** the types of services provided through the center and the number
of individuals with significant disabilities receiving each type of
service;

**(D)** the sources and amounts of funding for the operation of the
center;

**(E)** the number of individuals with significant disabilities who are
employed by, and the number who are in management and decisionmaking
positions in, the center; and

**(F)** a comparison, when appropriate, of the activities of the center
in prior years with the activities of the center in the most recent
year;

**(9)** individuals with significant disabilities who are seeking or
receiving services at the center will be notified by the center of the
existence of, the availability of, and how to contact, the client
assistance program;

**(10)** aggressive outreach regarding services provided through the
center will be conducted in an effort to reach populations of
individuals with significant disabilities that are unserved or
underserved by programs under this title, especially minority groups and
urban and rural populations;

**(11)** staff at centers for independent living will receive training
on how to serve such unserved and underserved populations, including
minority groups and urban and rural populations;

**(12)** the center will submit to the Statewide Independent Living
Council a copy of its approved grant application and the annual report
required under paragraph (8);

**(13)** the center will prepare and submit a report to the designated
State unit or the Commissioner, as the case may be, at the end of each
fiscal year that contains the information described in paragraph (8) and
information regarding the extent to which the center is in compliance
with the standards set forth in subsection (b); and

**(14)** an independent living plan described in section 704(e) will be
developed unless the individual who would receive services under the
plan signs a waiver stating that such a plan is unnecessary.

**Sec. 726. Definitions**

As used in this part, the term \"eligible agency\" means a
consumer‑controlled, community‑based, cross‑disability, nonresidential
private nonprofit agency.

**Sec. 727. Authorization of Appropriations**

There are authorized to be appropriated to carry out this part such sums
as may be necessary for each of the fiscal years 1999 through 2003.

**Chapter 2‑‑Independent Living Services\
for Older Individuals Who are Blind**

**Sec. 751. Definition**

For purposes of this chapter, the term \"older individual who is blind\"
means an individual age 55 or older whose significant visual impairment
makes competitive employment extremely difficult to attain but for whom
independent living goals are feasible.

**Sec. 752. Program of Grants**

**(a)** **In General**

**(1)** **Authority for grants**

Subject to subsections (b) and (c), the Commissioner may make grants to
States for the purpose of providing the services described in subsection
(d) to older individuals who are blind.

**(2)** **Designated state agency**

The Commissioner may not make a grant under subsection (a) unless the
State involved agrees that the grant will be administered solely by the
agency described in section 101(a)(2)(A)(i).

**(b)** **Contingent Competitive Grants**

Beginning with fiscal year 1993, in the case of any fiscal year for
which the amount appropriated under section 753 is less than
\$13,000,000, grants made under subsection (a) shall be‑‑

**(1)** discretionary grants made on a competitive basis to States; or

**(2)** grants made on a noncompetitive basis to pay for the
continuation costs of activities for which a grant was awarded‑‑

**(A)** under this chapter; or

**(B)** under part C, as in effect on the day before the date of
enactment of the Rehabilitation Act Amendments of 1992.

**(c)** **Contingent Formula Grants**

**(1)** **In general**

In the case of any fiscal year for which the amount appropriated under
section 753 is equal to or greater than \$13,000,000, grants under
subsection (a) shall be made only to States and shall be made only from
allotments under paragraph (2).

**(2)** **Allotments**

For grants under subsection (a) for a fiscal year described in paragraph
(1), the Commissioner shall make an allotment to each State in an amount
determined in accordance with subsection (j), and shall make a grant to
the State of the allotment made for the State if the State submits to
the Commissioner an application in accordance with subsection (i).

**(d)** **Services Generally**

The Commissioner may not make a grant under subsection (a) unless the
State involved agrees that the grant will be expended only for purposes
of‑‑

**(1)** providing independent living services to older individuals who
are blind;

**(2)** conducting activities that will improve or expand services for
such individuals; and

**(3)** conducting activities to help improve public understanding of
the problems of such individuals.

**(e)** **Independent Living Services**

Independent living services for purposes of subsection (d)(1) include‑‑

**(1)** services to help correct blindness, such as‑‑

**(A)** outreach services;

**(B)** visual screening;

**(C)** surgical or therapeutic treatment to prevent, correct, or modify
disabling eye conditions; and

**(D)** hospitalization related to such services;

**(2)** the provision of eyeglasses and other visual aids;

**(3)** the provision of services and equipment to assist an older
individual who is blind to become more mobile and more self‑sufficient;

**(4)** mobility training, braille instruction, and other services and
equipment to help an older individual who is blind adjust to blindness;

**(5)** guide services, reader services, and transportation;

**(6)** any other appropriate service designed to assist an older
individual who is blind in coping with daily living activities,
including supportive services and rehabilitation teaching services;

**(7)** independent living skills training, information and referral
services, peer counseling, and individual advocacy training; and

**(8)** other independent living services.

**(f)** **Matching Funds**

**(1)** **In general**

The Commissioner may not make a grant under subsection (a) unless the
State involved agrees, with respect to the costs of the program to be
carried out by the State pursuant to such subsection, to make available
(directly or through donations from public or private entities)
non‑Federal contributions toward such costs in an amount that is not
less than \$1 for each \$9 of Federal funds provided in the grant.

**(2)** **Determination of amount contributed**

Non‑Federal contributions required in paragraph (1) may be in cash or in
kind, fairly evaluated, including plant, equipment, or services. Amounts
provided by the Federal Government, or services assisted or subsidized
to any significant extent by the Federal Government, may not be included
in determining the amount of such non‑Federal contributions.

**(g)** **Certain Expenditures of Grants**

A State may expend a grant under subsection (a) to carry out the
purposes specified in subsection (d) through grants to public and
nonprofit private agencies or organizations.

**(h)** **Requirement Regarding State Plan**

The Commissioner may not make a grant under subsection (a) unless the
State involved agrees that, in carrying out subsection (d)(1), the State
will seek to incorporate into the State plan under section 704 any new
methods and approaches relating to independent living services for older
individuals who are blind.

**(i)** **Application for Grant**

**(1)** **In general**

The Commissioner may not make a grant under subsection (a) unless an
application for the grant is submitted to the Commissioner and the
application is in such form, is made in such manner, and contains such
agreements, assurances, and information as the Commissioner determines
to be necessary to carry out this section (including agreements,
assurances, and information with respect to any grants under subsection
(j)(4)).

**(2)** **Contents**

An application for a grant under this section shall contain‑‑

**(A)** an assurance that the agency described in subsection (a)(2) will
prepare and submit to the Commissioner a report, at the end of each
fiscal year, with respect to each project or program the agency operates
or administers under this section, whether directly or through a grant
or contract, which report shall contain, at a minimum, information on‑‑

**(i)** the number and types of older individuals who are blind and are
receiving services;

**(ii)** the types of services provided and the number of older
individuals who are blind and are receiving each type of service;

**(iii)** the sources and amounts of funding for the operation of each
project or program;

**(iv)** the amounts and percentages of resources committed to each type
of service provided;

**(v)** data on actions taken to employ, and advance in employment,
qualified individuals with significant disabilities, including older
individuals who are blind; and

**(vi)** a comparison, if appropriate, of prior year activities with the
activities of the most recent year;

**(B)** an assurance that the agency will‑‑

**(i)** provide services that contribute to the maintenance of, or the
increased independence of, older individuals who are blind; and

**(ii)** engage in‑‑

**(I)** capacity‑building activities, including collaboration with other
agencies and organizations;

**(II)** activities to promote community awareness, involvement, and
assistance; and

**(III)** outreach efforts; and

**(C)** an assurance that the application is consistent with the State
plan for providing independent living services required by section 704.

**(j)** **Amount of Formula Grant**

**(1)** **In general**

Subject to the availability of appropriations, the amount of an
allotment under subsection (a) for a State for a fiscal year shall be
the greater of‑‑

**(A)** the amount determined under paragraph (2); or

**(B)** the amount determined under paragraph (3).

**(2)** **Minimum allotment**

**(A)** **States**

In the case of the several States, the District of Columbia, and the
Commonwealth of Puerto Rico, the amount referred to in subparagraph (A)
of paragraph (1) for a fiscal year is the greater of‑‑

**(i)** \$225,000; or

**(ii)** an amount equal to one‑third of one percent of the amount
appropriated under section 753 for the fiscal year and available for
allotments under subsection (a).

**(B)** **Certain territories**

In the case of Guam, American Samoa, the United States Virgin Islands,
and the Commonwealth of the Northern Mariana Islands, the amount
referred to in subparagraph (A) of paragraph (1) for a fiscal year is
\$40,000.

**(3)** **Formula**

The amount referred to in subparagraph (B) of paragraph (1) for a State
for a fiscal year is the product of‑‑

**(A)** the amount appropriated under section 753 and available for
allotments under subsection (a); and

**(B)** a percentage equal to the quotient of‑‑

**(i)** an amount equal to the number of individuals residing in the
State who are not less than 55 years of age; divided by

**(ii)** an amount equal to the number of individuals residing in the
United States who are not less than 55 years of age.

**(4)** **Disposition of certain amounts**

**(A)** **Grants**

From the amounts specified in subparagraph (B), the Commissioner may
make grants to States whose population of older individuals who are
blind has a substantial need for the services specified in subsection
(d) relative to the populations in other States of older individuals who
are blind.

**(B)** **Amounts**

The amounts referred to in subparagraph (A) are any amounts that are not
paid to States under subsection (a) as a result of‑‑

**(i)** the failure of any State to submit an application under
subsection (i);

**(ii)** the failure of any State to prepare within a reasonable period
of time such application in compliance with such subsection; or

**(iii)** any State informing the Commissioner that the State does not
intend to expend the full amount of the allotment made for the State
under subsection (a).

**(C)** **Conditions**

The Commissioner may not make a grant under subparagraph (A) unless the
State involved agrees that the grant is subject to the same conditions
as grants made under subsection (a).

**Sec. 753. Authorization of Appropriations**

There are authorized to be appropriated to carry out this chapter such
sums as may be necessary for each of the fiscal years 1999 through 2003.