**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**