20988 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 

DEPARTMENT OF EDUCATION 

34 CFR Parts 367, 369, 370, 371, 373, 

376, 377, 379, 381, 385, 386, 387, 388, 

389, 390, and 396 

RIN 1820–AB71 

[Docket No. 2015–ED–OSERS–0002] 

Workforce Innovation and Opportunity 

Act, Miscellaneous Program Changes 

AGENCY: Office of Special Education and 

Rehabilitative Services, Department of 

Education. 

ACTION: Notice of proposed rulemaking. 

SUMMARY: The Secretary proposes to 

amend the regulations governing a 

number of programs administered by 

the Rehabilitation Services 

Administration (RSA) to implement 

changes to the Rehabilitation Act of 

1973 (Act) made by the Workforce 

Innovation and Opportunity Act, 

enacted on July 22, 2014. 

The Secretary also proposes to 

implement changes to the Act made by 

the Workforce Investment Act, enacted 

on August 7, 1998, that have not 

previously been implemented in 

regulations, and to otherwise update, 

clarify, and improve RSA’s current 

regulations. 

DATES: We must receive your comments 

on or before June 15, 2015. 

ADDRESSES: Submit your comments 

through the Federal eRulemaking Portal 

or via postal mail, commercial delivery, 

or hand delivery. We will not accept 

comments submitted by fax or by email 

or those submitted after the comment 

period. To ensure that we do not receive 

duplicate copies, please submit your 

comments only once. In addition, please 

include the Docket ID at the top of your 

comments. 

• Federal eRulemaking Portal: Go to 

www.regulations.gov to submit your 

comments electronically. Information 

on using Regulations.gov, including 

instructions for accessing agency 

documents, submitting comments, and 

viewing the docket, is available on the 

site under ‘‘Are you new to the site?’’ 

• Postal Mail, Commercial Delivery, 

or Hand Delivery: If you mail or deliver 

your comments about these proposed 

regulations, address them to Janet 

LaBreck, U.S. Department of Education, 

400 Maryland Avenue SW., Room 5086 

Potomac Center Plaza (PCP), 

Washington, DC 20202–2800. 

Privacy Note: The Department’s policy is 

to make all comments received from 

members of the public available for public 

viewing in their entirety on the Federal 

eRulemaking Portal at www.regulations.gov. 

Therefore, commenters should be careful to 

include in their comments only information 

that they wish to make publicly available. 

FOR FURTHER INFORMATION CONTACT: 

Janet LaBreck, U.S. Department of 

Education, 400 Maryland Avenue SW., 

Room 5086 PCP, Washington, DC 

20202–2800. 

Telephone: (202) 245–7488, or by 

email: Janet.LaBreck@ed.gov. 

If you use a telecommunications 

device for the deaf (TDD) or a text 

telephone (TTY), call the Federal Relay 

Service (FRS), toll free, at 1–800–877– 

8339. 

SUPPLEMENTARY INFORMATION: 

Invitation to Comment: We invite you 

to submit comments regarding these 

proposed regulations. To ensure that 

your comments have maximum effect in 

developing the final regulations, we 

urge you to identify clearly the specific 

section or sections of the proposed 

regulations that each of your comments 

addresses and to arrange your comments 

in the same order as the proposed 

regulations. 

We invite you to assist us in 

complying with the specific 

requirements of Executive Orders 12866 

and 13563 and their overall requirement 

of reducing regulatory burden that 

might result from these proposed 

regulations. Please let us know of any 

further ways we could reduce potential 

costs or increase potential benefits 

while preserving the effective and 

efficient administration of the 

Department’s programs and activities. 

During and after the comment period, 

you may inspect all public comments 

about these proposed regulations by 

accessing Regulations.gov. You may also 

inspect the comments in person in 

Room 5093, Potomac Center Plaza, 550 

12th Street SW., Washington, DC, 

between 8:30 a.m. and 4:00 p.m. 

Washington, DC time, Monday through 

Friday of each week except Federal 

holidays. Please contact the person 

listed under FOR FURTHER INFORMATION

CONTACT. 

Assistance to Individuals with 

Disabilities in Reviewing the 

Rulemaking Record: On request we will 

provide an appropriate accommodation 

or auxiliary aid to an individual with a 

disability who needs assistance to 

review the comments or other 

documents in the public rulemaking 

record for these proposed regulations. If 

you want to schedule an appointment 

for this type of accommodation or 

auxiliary aid, please contact the person 

listed under FOR FURTHER INFORMATION

CONTACT. 

Background 

The Secretary proposes to amend the 

regulations governing a number of 

programs administered by the 

Rehabilitation Services Administration 

(RSA) to implement changes to the 

Rehabilitation Act of 1973 (Act) made 

by the Workforce Innovation and 

Opportunity Act (WIOA), enacted on 

July 22, 2014 (Pub. L. 113–128). These 

programs and their corresponding 

regulations are: 

• The Independent Living Services 

for Older Individuals Who Are Blind 

(OIB) program, 34 CFR part 367; 

• The Client Assistance Program 

(CAP), 34 CFR part 370; 

• The American Indian Vocational 

Rehabilitation Services (AIVRS) 

program, 34 CFR part 371 (formerly 

known as ‘‘Vocational Rehabilitation 

Service Projects for American Indians 

with Disabilities’’); 

• The Rehabilitation National 

Activities program, 34 CFR part 373 

(formerly known as ‘‘Special 

Demonstration Projects’’); 

• The Protection and Advocacy of 

Individual Rights (PAIR) program, 34 

CFR part 381; 

• The Rehabilitation Training 

program, 34 CFR part 385; 

• The Rehabilitation Long-Term 

Training program, 34 CFR part 386; 

• The Innovative Rehabilitation 

Training Program, 34 CFR part 387 

(formerly known as the ‘‘Experimental 

and Innovative Training’’); 

• The Rehabilitation Short-Term 

Training Program, 34 CFR part 390; and 

• The Training of Interpreters for 

Individuals Who are Deaf or Hard of 

Hearing and Individuals who are DeafBlind program, 34 CFR part 396 

(formerly known as the ‘‘Training of 

Interpreters for Individuals Who are 

Deaf and Individuals who are DeafBlind program’’). 

WIOA also repealed the statutory 

authority for four programs, and the 

Secretary, therefore, proposes to remove 

their corresponding regulations. These 

programs and regulations are: 

• Vocational Rehabilitation Service 

Projects for Migratory Agricultural 

Workers and Seasonal Farmworkers 

with Disabilities (Migrant Workers) 

program, portions of 34 CFR part 369; 

• Projects for Initiating Special 

Recreation Programs for Individuals 

with Disabilities (Recreational 

programs), portions of 34 CFR part 369; 

• Projects with Industry, 34 CFR part 

379 and portions of part 369; and 

• The State Vocational Rehabilitation 

Unit In-Service Training program, 34 

CFR part 388. 

In addition, the Secretary proposes to 

implement changes to the Act made by 


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the Workforce Investment Act (WIA), 

enacted August 7, 1998 (Pub. L. 105– 

220). These changes were not previously 

implemented in the applicable 

regulations. The Secretary proposes 

these changes to the OIB, CAP, AIVRS, 

and PAIR program regulations. 

Separate and apart from amendments 

to the Act made by WIOA and WIA, the 

Secretary proposes to update and clarify 

the regulations governing the various 

rehabilitation training programs—34 

CFR parts 373, 385, 386, 387, and 396— 

and 34 CFR part 390, which governs the 

Rehabilitation Short-Term Training 

program. These regulations have not 

been updated in some time, and 

updating them now is intended to 

improve how these programs function. 

Finally, as part of this update, the 

Secretary proposes to remove 

regulations that are superseded or 

obsolete and to consolidate regulations, 

where appropriate. The Secretary 

proposes to remove the balance of 34 

CFR part 369 that does not apply to the 

Migrant Workers program, the 

Recreational Programs, the Projects 

With Industry program, and parts 376, 

377, and 389. 

Proposed Regulations 

Because the amendments we propose 

in this document are so many and 

varied, we discuss first those programs 

whose regulations we propose to amend 

and not remove. We discuss them in the 

order in which their parts appear in the 

Code of Federal Regulations (CFR). For 

each part, we provide a short 

background of the program, a summary 

of the changes we propose, and a 

detailed discussion of the significant 

proposed regulations. Generally, we do 

not address proposed regulatory 

changes that are technical or otherwise 

minor in effect. 

Independent Living Services for Older 

Individuals Who Are Blind (OIB), 34 

CFR Part 367 

Background 

The program makes grants to 

designated State agencies (DSAs) that 

provide vocational rehabilitation 

services to individuals who are blind. 

DSAs provide to older individuals who 

are blind or visually impaired 

independent living services designed to 

increase or maintain their ability to live 

independently. The Department last 

published regulations for this program 

in 1994 (59 FR 41909 (August 15, 

1994)). 

Summary of Proposed Changes 

These proposed regulations would 

implement the changes WIOA made to 

title VII, Chapter 2, of the Act. We 

would require that not less than 1.8 

percent and not more than 2 percent of 

the funds for this program be reserved 

to provide training and technical 

assistance to DSAs or other providers of 

independent living services for older 

individuals who are blind. 

In addition, the Secretary proposes to 

incorporate into part 367 the text of 

relevant provisions of parts 364 and 365 

regarding general independent living 

and State independent living services 

that were previously incorporated only 

by reference. This change is necessary 

because WIOA transferred the 

Independent Living Services and 

Centers for Independent Living 

programs to the Administration for 

Community Living of the Department of 

Health and Human Services. Due to this 

transfer, parts 364 and 365 will no 

longer be applicable to programs 

administered by the Department of 

Education and will eventually be 

removed. 

Significant Proposed Regulations 

Because we propose to make a 

number of structural and numbering 

revisions to part 367, we discuss the 

proposed changes by subpart and, 

within each subpart, by subject or 

section. 

Subpart A—General 

Statute: WIOA added a new 

subparagraph (E) in section 7(17) of the 

Act. This new subparagraph specifies 

that services to facilitate the transition 

of individuals from nursing homes and 

other institutions to home and 

community based residences with the 

requisite supports and services are core 

IL services and, as such, may be 

provided by the OIB program. Grantees 

may also provide assistance and 

services to older individuals who are 

blind and who are at risk of entering 

institutions so that they may remain in 

the community. 

Current Regulations: Current 

§ 367.3(b)(7) does not list this service 

specifically. It lists a broad array of 

independent living services that may be 

provided to older individuals who are 

blind, but does not reference the 

specific service added by WIOA. 

Proposed Regulations: Current 

§ 367.3(b)(7) would be expanded to 

include the specific IL service 

authorized by WIOA in the new 

subparagraph (E) in section 7(17) of the 

Act as an allowable service under the 

OIB program. 

Reasons: The inclusion of the IL 

service in the proposed regulations is 

consistent with changes in the IL core 

services defined in WIOA and allows for 

the provision of these services by the 

OIB program. 

Transfer of Title VII, Chapter 1 IL 

Programs 

Statute: Title VII, Chapter 1, Section 

701A of the Act (29 U.S.C. 796), as 

amended by WIOA, establishes within 

the Administration for Community 

Living (ACL) of the Department of 

Health and Human Services an 

Independent Living Administration that 

will be the principal agency to carry out 

the Independent Living Services and 

Centers for Independent Living 

programs. WIOA transfers these 

programs to ACL from RSA. The 

Department of Education continues to 

administer title VII, Chapter 2 of the 

Act, which authorizes OIB. 

Current Regulations: Current 

§ 367.4(c) refers to certain sections of 

parts 364 and 365 rather than restating 

the same text in full. The relevant 

sections in part 364 address definitions; 

the use and obligation of Federal funds 

and program income; notice of the 

Client Assistance Program (CAP); access 

to records; and special requirements for 

the protection, use, and release of 

personal information. The sections in 

part 365 set out requirements and 

conditions for cash or in-kind 

contributions as they apply to a State’s 

non-Federal share, awards, subawards, 

or contractors. 

Proposed Regulations: We propose to 

remove these cross references from 

current § 367.4 and amend current part 

367 to provide the full text of the 

relevant sections in parts 364 and 365 

to which current § 367.4 now only cross 

references. 

Reasons: With the transfer of the 

Independent Living Services and 

Centers for Independent Living 

programs from RSA to ACL, parts 364 

and 365 will no longer be applicable to 

programs administered by the 

Department of Education and will 

eventually be removed. We propose to 

move language into part 367 that is 

relevant to the functioning of the OIB 

program. 

Proposed New Subpart B—Training and 

Technical Assistance (Replaces Current 

Subpart B) 

Statute: WIOA added to title VII, 

chapter 2 of the Act section 751A, 

which requires that, beginning in FY 

2015, not less than 1.8 percent and not 

more than 2 percent of the funds for this 

program be reserved to provide, either 

directly or through grants, contracts, or 

cooperative agreements, training and 

technical assistance to DSAs or other 

providers of independent living services 

for older individuals who are blind that 


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are funded under the OIB program; that 

the Secretary conduct a survey of DSAs 

that are OIB program grantees to 

determine funding priorities for the 

training and technical assistance; and 

that the Secretary shall provide for peer 

review of applications to provide 

training and technical assistance from 

eligible entities by panels that include 

persons who are not government 

employees and who have experience in 

the provision of services to older 

individuals who are blind. 

Current Regulations: None. 

Proposed Regulations: We propose to 

add a new subpart B to part 367, 

consisting of §§ 367.20 through 367.24, 

to govern how the Department would 

assess the grantees’ training and 

technical assistance needs and how it 

would provide training and technical 

assistance under OIB. 

Proposed § 367.20 would provide that 

the Secretary reserve not less than 1.8 

percent and not more than 2 percent of 

the funds appropriated to carry out the 

OIB program to provide training and 

technical assistance in any fiscal year, 

beginning in FY 2015, to DSAs or other 

providers of independent living services 

for older individuals who are blind 

during such fiscal year. 

Proposed § 367.21 would explain how 

the Secretary uses the funds specified in 

§ 367.20 to provide training and 

technical assistance, either directly or 

through grants, contracts, or cooperative 

agreements to entities that have the 

capacity to provide such training and 

technical assistance. Any selected entity 

receiving funding would provide 

training and technical assistance to 

DSAs or other service providers, 

assisting them to improve the operation 

and performance of the program leading 

to enhanced independence and selfsufficiency for older individuals who 

are blind. 

Proposed § 367.22 would describe 

how the Secretary makes an award 

under subpart B for training and 

technical assistance. It would require an 

applicant to submit an application to 

the Secretary containing a proposal for 

the provision of training and technical 

assistance to DSAs and other providers 

of services under the OIB program. 

Proposed § 367.22 would also require 

applications to be peer reviewed by 

panels that include individuals who are 

not Federal or State government 

employees and who have experience in 

the provision of services to older 

individuals who are blind. 

Proposed § 367.23 would provide that 

the Secretary conduct a survey of DSAs 

that receive OIB grants to assess their 

training and technical assistance needs 

and to inform decisions about funding 

priorities. 

Proposed § 367.24(a) and (b) would 

provide that the Secretary evaluate 

applications for a grant, cooperative 

agreement, or contract under subpart B 

on the basis of selection criteria chosen 

from the general selection criteria found 

in EDGAR at 34 CFR 75.210. If a 

contract is awarded, it would be made 

in accordance with regulations at 34 

CFR part 75. 

Reasons: The proposed new subpart B 

gives effect to the new training and 

technical assistance requirements and 

the manner in which these requirements 

are implemented, including a survey of 

needs and the funding of activities 

either directly or through a peer 

reviewed competitive process consistent 

with the Department’s practices. 

Proposed New Subpart C—What Are the 

Application Requirements Under This 

Part? (Current Subpart B) 

Statute: None. 

Current Regulations: Current subpart 

B consists of §§ 367.10 and 367.11, 

which set out the manner in which a 

DSA applies for an award or a 

reallotment grant and the required 

assurances that a DSA must include in 

an application. 

Proposed Regulations: We propose to 

redesignate current subpart B as subpart 

C and to change its title to ‘‘What Are 

the Application Requirements Under 

this Part?’’ We propose as well to 

renumber the sections in the new 

subpart §§ 367.30 and 367.31. 

Reason: We propose to redesignate 

current subpart B as subpart C to make 

room for a new subpart that addresses 

WIOA’s requirement to provide training 

and technical assistance to DSAs or 

other providers of independent living 

services for older individuals who are 

blind. 

Removal of State Plan for Independent 

Living OIB Requirements 

Statute: WIOA deletes the 

requirement in section 752(h) of the Act 

(29 U.S.C. 796k(h)) for the State to seek 

to incorporate into the State Plan for 

Independent Living any new methods 

and approaches relating to independent 

living services for older individuals who 

are blind. 

Current Regulations: Current 

§ 367.11(c) requires the DSA to seek to 

incorporate into and describe in the 

State plan for independent living (SPIL) 

any new methods and approaches 

relating to IL services for older 

individuals who are blind that are 

developed by projects funded by OIB 

and that the DSA determines to be 

effective. 

Current § 367.11(f) requires that 

applications be consistent with the SPIL 

for providing required independent 

living services under section 704 of the 

Act. 

Proposed Regulations: We propose to 

remove current § 367.11(c) and (f). 

Reason: Removing current § 367.11(c) 

and (f) would implement WIOA’s 

removal of these requirements from the 

OIB program and eliminate the 

connection of OIB to the State Plan for 

Independent Living, required by title 

VII, chapter 1, now administered by 

ACL. 

Proposed New Subpart D—How does 

the Secretary award discretionary 

grants? (Current Subpart C) 

Statute: None. 

Current Regulations: The current 

subpart C consists of §§ 367.20 through 

367.23 and is entitled ‘‘How Does the 

Secretary Award Discretionary Grants 

on a Competitive Basis?’’ 

Current § 367.22 provides specific 

selection criteria used by the Secretary 

in awarding discretionary grants. 

Current § 367.23 provides for the 

consideration of geographical 

distribution of projects in making an 

award. 

Current § 367.42(a) and (b) provide 

the basis for noncompetitive 

continuation grants. 

Proposed Regulations: We propose to 

redesignate and retitle subpart C as 

‘‘Subpart D—How Does the Secretary 

Award Discretionary Grants?’’ We 

propose to renumber the sections within 

subpart D to begin with § 367.40. 

Proposed § 367.40(b) would insert the 

basis for the award of noncompetitive 

continuation grants by the Secretary for 

a multi-year project. This is in current 

regulations at § 367.42(a) and (b). 

We propose to eliminate the specific 

selection criteria included in current 

§ 367.22. In its place, proposed 

§ 367.41(a) would provide for the 

evaluation of applications based on the 

selection criteria chosen from the 

general selection criteria found in 

EDGAR at 34 CFR 75.210. 

Proposed § 367.41(b) would allow for 

consideration of geographical 

distribution of projects in making an 

award, replacing the current regulation 

at § 367.23. 

Reasons: Though the Department 

currently does not make discretionary 

grants under OIB, we are nonetheless 

proposing to update the relevant 

regulations to ensure that we have 

appropriate flexibility in designing 

competitions and awarding grants 

should the appropriation ever fall below 

$13 million. 


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Proposed New Subpart E—How does the 

Secretary award formula grants? 

(Current Subpart D) 

Formula Grant Awards—Reallotment 

Statute: Section 752(i)(4) of the Act, 

as amended by WIOA, provides for the 

disposition of certain amounts under 

formula grants. 

Current Regulations: Current Subpart 

D consists of § 367.30 through § 367.32. 

Current § 367.32 sets out the 

procedures for how the Secretary 

reallots funds under the formula grants 

program. 

Proposed Regulations: We propose to 

redesignate current subpart D as 

‘‘Subpart E—‘‘How Does the Secretary 

Award Formula Grants?’’ We propose to 

renumber the sections in this subpart to 

begin with § 367.50. 

Proposed § 367.52(e) would require 

that an OIB grantee inform the Secretary 

45 days prior to the end of the fiscal 

year that funds would be available for 

reallotment. 

Reasons: This proposed change would 

bring the OIB program reallotment 

requirements into alignment with other 

formula grants administered by RSA. 

This timeline would ensure that RSA 

receives timely notice of relinquished 

funds and is able to award realloted 

funds to grantees prior to the end of the 

Federal fiscal year. This proposed 

change is consistent with RSA’s current 

practices. 

Proposed New Subpart F—What 

conditions must be met after an award? 

(Current Subpart E) 

Statute: Section 701A of the Act (29 

U.S.C. 796 et seq.), as amended by 

WIOA, establishes within the 

Administration for Community Living 

in the Department of Health and Human 

Services a new Independent Living 

Administration that will administer the 

independent living programs under 

chapter 1 of title VII of the Act. 

Consequently, the independent living 

regulations in parts 364 and 365, which 

are referenced in part 367, will no 

longer be administered by the 

Department of Education. Therefore, the 

relevant sections of parts 364 and 365 

are being incorporated into part 367. 

Current Regulations: Current subpart 

E consists of §§ 367.40 through 367.42, 

which provide the conditions that must 

be met after an award is made, 

including matching requirements, when 

a DSA may award grants or contracts, 

and when continuation awards may be 

made. 

Proposed Regulations: We propose to 

redesignate current subpart E as subpart 

F, to remove the provisions in current 

subpart E, and to replace them with new 

sections beginning with § 367.60. 

Proposed § 367.60 would provide 

guidance on when a DSA may make 

subawards or contracts under the OIB 

program. 

Proposed § 367.61 would provide the 

regulatory requirements to meet the 

non-Federal contribution required by 

§ 367.31(b). 

Proposed § 367.62 would address the 

requirements that apply if a State’s nonFederal share is in cash. 

Proposed § 367.63 would provide the 

requirements that apply if a State’s nonFederal share is in kind. 

Proposed § 367.64 would provide for 

a prohibition against a State 

conditioning a subaward or contract 

based on a cash or in-kind contribution. 

Proposed § 367.65 would provide the 

definition of program income and how 

it may be used. 

Proposed § 367.66 would provide the 

requirements that apply to the 

obligation of Federal funds and program 

income. 

Proposed § 367.67 would describe the 

notice that must be given about the 

Client Assistance Program. 

Proposed § 367.68 would provide the 

specific requirements pertaining to the 

protection, use, and release of personal 

information belonging to applicants or 

recipients of services. 

Proposed § 367.69 would provide the 

requirements related to the provision of 

access to records. 

Proposed § 367.70 would provide 

requirements regarding the maintenance 

of records by DSAs and other providers. 

Reasons: OIB grantees have always 

been required to comply with these 

proposed provisions because current 

§ 367.4 incorporates them by reference 

from parts 364 and 365. Because the IL 

programs implementing parts 364 and 

365 will no longer be administered by 

the Department of Education, and 

because those parts will be removed in 

the future, we propose to move the text 

of the applicable provisions to part 367 

so that the OIB program can continue to 

function appropriately. 

Client Assistance Program (CAP), 34 

CFR Part 370 

Background 

CAP is authorized under section 112 

of the Act (29 U.S.C. 732). CAP grantees 

provide information to individuals with 

disabilities about the services and 

benefits available under the Act and 

their rights under title I of the 

Americans with Disabilities Act. In 

addition, CAP grantees are authorized to 

provide advocacy and legal 

representation to individuals seeking or 

receiving services under the Act in 

order to resolve disputes with programs 

providing those services, including 

vocational rehabilitation services. 

The Department last updated the 

regulations at 34 CFR part 370, which 

govern the CAP, on November 2, 1995 

(60 FR 55766). 

Summary of Proposed Changes 

Both WIOA and WIA made significant 

changes to section 112 of the Act. To 

implement those changes made by WIA, 

the Secretary proposes to amend the 

regulations governing the redesignation 

of a designated CAP agency to require 

the Governor to redesignate the 

designated CAP agency if it is internal 

to the designated State agency (DSA) for 

the Vocational Rehabilitation program 

and that DSA undergoes a significant 

reorganization that meets certain 

statutory criteria. 

The Secretary proposes three 

substantive changes to incorporate 

statutory changes made to section 112 

by WIOA. First, we would add the 

protection and advocacy system serving 

the American Indian Consortium as an 

entity eligible to receive a CAP grant. 

Second, we would require the Secretary 

to reserve funds from the CAP 

appropriation, once it reaches a 

specified level, to award a grant for the 

provision of training and technical 

assistance to designated CAP agencies. 

Finally, we would clarify that 

authorized activities under the CAP 

include assisting client and clientapplicants who are receiving services 

under sections 113 and 511 of the Act. 

In addition to substantive changes 

required by statutory amendments, the 

Secretary also proposes other changes to 

update part 370 so that it, among other 

things, conforms with RSA practice (i.e., 

with regard to submission of application 

and assurances) or reflects current CAP 

grantee practice (i.e., with regard to 

contracts with centers for independent 

living). 

Significant Proposed Regulations 

We organize our discussion of 

proposed changes by subject and 

section. 

Clients and Client-Applicants (§ 370.1) 

Statute: Section 112(a) of the Act, as 

amended by WIOA (29 U.S.C. 732(a)), 

clarifies that CAP grantees may provide 

information, advocacy, and 

representation to clients and clientapplicants to facilitate their access to 

services available under the Act, 

including pre-employment transition 

services provided under section 113 and 

the services provided pursuant to 


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section 511 regarding limitations on the 

use of subminimum wages. 

In addition, the Act, as amended by 

WIOA, includes new definitions for a 

‘‘student with a disability’’ and a ‘‘youth 

with a disability,’’ at section (7)(37) and 

(42), respectively, for the purpose of 

receiving pre-employment transition 

services and/or other transition services 

through the vocational rehabilitation 

program. 

Current Regulations: The current 

§ 370.1(a) states that CAP grantees are 

authorized to inform and assist client 

and client-applicants about services 

available through programs authorized 

under the Act. Current § 370.1(a) does 

not mention the services provided 

under sections 113 and 511, nor does 

current § 370.4 specifically refer to 

students and youth with disabilities 

since these are new statutory 

requirements. 

Proposed Regulations: We propose to 

amend current § 370.1(a) to clarify that 

the CAP may assist individuals who are 

receiving or applying to receive services 

under sections 113 and 511 of the Act. 

We propose to amend current 

§ 370.4(a)(3)(ii) to clarify that students 

and youth with disabilities applying for 

and receiving services under the Act are 

considered clients and client-applicants 

for the purpose of receiving CAP 

services. 

Finally, we propose to amend current 

§ 370.4(b) to clarify that in all instances, 

references to services provided under 

the Act in the context of this paragraph 

are those provided under title I of the 

Act. 

Reasons: While WIOA does not 

expand the scope of authorized 

activities or those individuals with 

disabilities who may be served by CAP 

grantees, the amendments to section 112 

make specific reference to individuals 

receiving services under sections 113 

and 511 of the Act. The proposed 

regulations incorporate these same 

references for the purpose of 

clarification. For clarification purposes, 

the proposed regulations also 

incorporate references to students and 

youth with disabilities. 

Centers for Independent Living (§ 370.2) 

Statute: None. 

Current Regulations: Current 

§ 370.2(f) permits a designated CAP 

agency that, at the time of its initial 

designation prior to February 22, 1984, 

was contracting for CAP services with 

centers for independent living, to 

continue those contracts. This was 

promulgated as an exception to the 

general prohibition in current § 370.2(e) 

against contracting with entities that 

provide treatment and services under 

the Act. 

Proposed Regulations: We propose to 

amend paragraphs (e) through (g) of 

current § 370.2 to eliminate the CAP’s 

authority to contract with centers for 

independent living. We also propose to 

amend current § 370.41 by deleting all 

references to the authority to contract 

with centers for independent living. 

Reasons: According to information 

available to the Secretary, no CAP 

agency that had contracted with centers 

for independent living for the provision 

of CAP services at the time of its initial 

designation still does so, thus making 

the need for the exception and the 

reference to contracting with centers for 

independent living obsolete. 

The Definition of ‘‘State’’ (§ 370.6) 

Statute: Section 7(32) of the Act, as 

amended by WIA (29 U.S.C. 705(32)), 

deleted the Republic of Palau from the 

definition of the term ‘‘State.’’ As a 

result, ‘‘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. Section 7(32) of the Act was 

renumbered as section 7(34) by WIOA. 

Current Regulations: Current § 370.6 

includes Palau in the definition of 

‘‘State’’ because the statutory definition 

changed after part 370 was last updated. 

Current § 370.30(b), last updated in 

1995, provides for the funding of the 

territories, including the Republic of 

Palau. 

Proposed Regulations: We propose to 

delete the Republic of Palau from the 

definition of ‘‘State’’ at current § 370.6. 

We also propose to amend current 

§ 370.30(b) to delete reference to the 

Republic of Palau. 

Reasons: This change is necessary to 

implement the new statutory definition 

of ‘‘State,’’ which forms the basis for 

determining eligibility for grants under 

the Act. 

Definition of ‘‘Systemic Advocacy’’ 

(§ 370.6) 

Statute: Section 112(d) of the Act (29 

U.S.C. 732(d)) prohibits CAP grantees 

from engaging in class action litigation 

as a form of systemic advocacy. This 

statutory prohibition remains 

unchanged. 

Current Regulations: The definition of 

‘‘systemic advocacy’’ in current § 370.6 

includes reference to class action 

lawsuits. 

Proposed Regulations: We propose to 

amend the definition of ‘‘systemic 

advocacy’’ by removing reference to 

class action lawsuits. 

Reasons: Although the Act 

specifically prohibits a CAP agency 

from engaging in class actions, CAP 

grantees are permitted to engage in 

systemic advocacy, which could be 

carried out without the initiation of a 

class action lawsuit. We believe that the 

proposed definition of ‘‘systemic 

advocacy’’ is broad enough to 

encompass all allowable systemic 

advocacy activities, while also 

eliminating the potential for 

misinterpreting § 370.6 as allowing CAP 

grantees to engage in class action 

lawsuits. 

Requirements for Redesignation 

(§ 370.10) 

Statute: Section 112(c)(1)(B)(ii) of the 

Act, as amended by WIA (29 U.S.C. 

732(c)(1)) requires the Governor to 

redesignate a CAP agency housed in a 

DSA for the vocational rehabilitation 

program, if the DSA is reorganized to 

create one or more agencies or is merged 

into another agency. 

Current Regulations: Current § 370.10 

describes when a Governor must 

redesignate a CAP agency, but does not 

include this particular requirement 

because part 370 was last updated in 

1995, prior to the amendments to the 

Act made by WIA. 

Proposed Regulations: We propose to 

amend current § 370.10 by adding a new 

paragraph (a) that would require the 

Governor to redesignate an internal 

CAP—e.g., a CAP that is housed within 

the DSA for the vocational rehabilitation 

program—when the DSA undergoes a 

significant reorganization that meets the 

criteria stated in the statute. 

We also propose to amend this section 

by adding references to 34 CFR 

361.5(c)(12) to clarify the meaning of 

designated State agency in this context 

in order to eliminate any potential 

confusion, given the similarities of the 

terms ‘‘designated agency’’ for the CAP 

grantees and ‘‘designated State agency’’ 

for the vocational rehabilitation 

program. 

Reasons: These proposed changes 

would implement the 1998 amendments 

to the Act contained in WIA. 

Submission of Application (§ 370.20) 

Statute: Section 112(f) of the Act (29 

U.S.C. 732(f)) requires CAP grantees to 

submit an application at the time and in 

the manner prescribed by the Secretary 

as a condition for receiving funding. 

The statutory requirement remains 

unchanged. 

Current Regulations: Current 

§ 370.20(a) requires CAP grantees to 


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submit an application annually as a 

condition for receiving funding. 

Proposed Regulations: We propose to 

amend current § 370.20(a) by deleting 

the requirement for annual submission 

and, instead, mirroring statutory 

language that gives the Secretary 

flexibility for the timing of these 

submissions. 

Reasons: Proposed § 370.20(a) would 

be consistent with the statutory 

requirements at section 112(f) of the 

Act, thereby giving the Secretary the 

flexibility to determine when 

submission of an application, including 

assurances, is necessary for efficient 

program administration. Since 2005, the 

Department has required Governors to 

submit the application, including 

assurances, only at the time of an initial 

designation or redesignation of a CAP 

grantee. 

American Indian Consortium (§ 370.30) 

Statute: Section 112(e)(1)(E) of the 

Act, as amended by WIOA (29 U.S.C. 

732(e)), requires the Secretary to reserve 

funds from the CAP appropriation to 

make a grant to the protection and 

advocacy system serving the American 

Indian Consortium in an amount equal 

to that allotted to the territories. 

Current Regulations: Current § 370.30 

describes allotments to CAP grantees, 

but does not mention the protection and 

advocacy system serving the American 

Indian Consortium since this is a new 

statutory requirement. 

Proposed Regulations: We propose to 

amend current § 370.30 by adding a new 

paragraph (c) that would require the 

Secretary to reserve funds to award a 

CAP grant to the protection and 

advocacy system serving the American 

Indian Consortium. This grant would be 

made at the level of funding authorized 

for a territory. We also propose to make 

conforming amendments to the 

following related regulations. 

We propose to amend current 

§ 370.2(a) to add the protection and 

advocacy system serving the American 

Indian Consortium as eligible to receive 

a CAP grant. 

We propose to amend current § 370.6 

to: (a) Incorporate references to tribal 

governmental agencies in the definition 

of ‘‘advocacy’’; (b) add new definitions 

for the terms ‘‘American Indian 

Consortium’’ and ‘‘protection and 

advocacy system’’; and (c) amend the 

definition of ‘‘designated agency’’ to 

include the protection and advocacy 

system serving the American Indian 

Consortium. 

We propose to amend current 

§ 370.20, which governs applications for 

CAP grants, by adding references to the 

protection and advocacy system serving 

the American Indian Consortium, to 

clarify that this entity is responsible for 

submitting the application and 

assurances for a CAP grant. For all other 

CAP grantees, the Governor would 

submit the application and assurances 

on behalf of the grantees. 

We propose to amend current 

§ 370.40(c) to clarify that the protection 

and advocacy system serving the 

American Indian Consortium is 

responsible and accountable for the CAP 

to the Secretary, and the Secretary may 

seek recovery of funds from that entity, 

if determined necessary. 

Reasons: The proposed changes are 

necessary to implement new statutory 

requirements that add the protection 

and advocacy system serving the 

American Indian Consortium as eligible 

to receive a CAP grant. The protection 

and advocacy system serving the 

American Indian Consortium is 

established under the Developmental 

Disabilities Assistance and Bill of Rights 

Act of 2000. Until the enactment of 

WIOA, this particular protection and 

advocacy system was authorized to 

provide services under other 

components of the protection and 

advocacy system, including the 

Protection and Advocacy of Persons 

with Developmental Disabilities, the 

Protection and Advocacy of Individuals 

with Mental Illness, and the Protection 

and Advocacy of Individual Rights 

programs, but not CAP. In addition, the 

Secretary believes it is critical to clarify 

through the regulations that the CAP 

administered by the protection and 

advocacy system serving the American 

Indian Consortium, as a new grantee, 

has the ability to engage in advocacy on 

behalf of clients and client-applicants 

with tribal governmental agencies since 

those agencies likely would be most 

relevant to the issues raised by clients 

and client-applicants of that particular 

CAP. Therefore, we propose to clarify 

that advocacy includes acting on behalf 

of the clients or client-applicants with 

tribal governmental agencies. Finally, 

we believe it is important to clarify that 

the protection and advocacy system 

serving the American Indian consortium 

is specifically established under the 

Developmental Disabilities Assistance 

and Bill of Rights Act of 2000; therefore, 

this CAP agency is not one that is 

designated by the Governor as are all 

other CAP grantees. 

Training and Technical Assistance 

(§ 370.30) 

Statute: Section 112(e)(1)(F) of the 

Act, as amended by WIOA (29 U.S.C. 

732(e)(1)(F)), requires the Secretary to 

reserve a portion of the total CAP 

appropriation, once it equals or exceeds 

$14 million, to award a grant for the 

purpose of providing training and 

technical assistance to CAP grantees. 

Current Regulations: Current § 370.30 

describes the allotment process, but 

does not address this particular 

reservation of funds since it is a new 

statutory requirement. 

Proposed Regulations: We propose to 

amend current § 370.30 by adding a new 

paragraph (d) that requires the Secretary 

to reserve funds from the CAP 

appropriation, once it equals or exceeds 

$14 million, to fund training and 

technical assistance to designated CAP 

agencies. The training and technical 

assistance provided under this section, 

as proposed, must be carried out in 

coordination with the training and 

technical assistance activities provided 

under the Protection and Advocacy of 

Individual Rights program at 34 CFR 

part 381. 

We also propose to revise current 

§ 370.5(a)(1) to clarify that part 75 of 

EDGAR applies to the grant made in 

accordance with § 370.30(d)(1). 

Reasons: The changes are necessary to 

implement amendments to section 112 

of the Act made by WIOA that require 

the Secretary to award a grant for the 

purpose of providing training and 

technical assistance to CAP grantees 

once the CAP appropriation reaches a 

certain level and are intended to help 

designated CAP agencies improve their 

operations and service delivery. 

Reallotment (§ 370.31) 

Statute: Section 112(e)(2) of the Act 

(29 U.S.C. 732(e)(2)) sets forth the 

process by which the Secretary reallots 

funds when a CAP grantee cannot use 

all funds awarded to it. This statutory 

provision remains unchanged. 

Current Regulations: Current 

§ 370.31(a) requires a CAP grantee to 

notify the Secretary 90 days prior to the 

end of the fiscal year of funds awarded 

for that year that are available for 

reallotment. 

Proposed Regulations: We propose to 

amend current § 370.31(a) to reduce to 

45 days the period a designated CAP 

agency has to inform the Secretary if 

funds will be available for reallotment. 

Reasons: This change is necessary to 

bring the CAP requirements into 

alignment with current practices for 

other formula grants administered by 

the Rehabilitation Services 

Administration. The Secretary believes 

this proposed change would benefit 

CAP grantees because each would have 

45 more days to determine whether it 

would be unable to use the awarded 

funds and, thus, would need to 

relinquish those funds for reallotment. 

In practice, CAP grantees rarely 


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relinquish funds since those funds are 

available for use in the succeeding fiscal 

year. 

Carryover (§ 370.47) 

Statute: Section 19 of the Act permits 

CAP grantees to carry over funds 

received under section 112 of the Act to 

the succeeding fiscal year. This 

statutory provision remains unchanged. 

Current Regulations: Current 

§ 370.47(b) requires CAP grantees to 

notify the Secretary if they are carrying 

over funds into the fiscal year 

succeeding that in which the funds were 

awarded. 

Proposed Regulations: We propose to 

delete paragraph (b) of current § 370.47 

to align the regulations with section 19 

of the Act and current Department 

practice, neither of which requires 

grantees to inform the Department of an 

intent to carry over funds. 

We propose to renumber current 

§ 370.47 as § 370.48 and include 

language clarifying reallotment funds 

that are not obligated or expended by 

the designated agency prior to the 

beginning of the succeeding fiscal year, 

may be carried over to the succeeding 

fiscal year and remain available for 

obligation and expenditure in that 

succeeding fiscal year. 

Reasons: Neither section 19 of the Act 

nor the Department’s current practice 

require designated agencies to inform 

the Secretary that funds, including any 

reallotment funds, are being carried over 

into the succeeding fiscal year. 

Program Income (§ 370.47) 

Statute: Section 19 of the Act governs 

the use of program income received by 

various programs, including the CAP. 

This statutory provision remains 

unchanged. 

Current Regulations: None. 

Proposed Regulations: We propose to 

rename § 370.47 as ‘‘What is program 

income and how may it be used?’’ 

Proposed § 370.47 would define 

program income, identify its uses, and 

permit it to be treated as either an 

addition or deduction to the CAP award. 

In addition, we propose amending 

renumbered § 370.48 to permit program 

income to be carried over into the 

succeeding fiscal year. 

Reasons: These regulations are 

necessary to govern the use and 

treatment of program income, consistent 

with section 19 of the Act. Additionally, 

designated CAP agencies that earn 

program income, or receive transferred 

Social Security Administration 

payments from the vocational 

rehabilitation program, have historically 

been permitted to spend the program 

income as an addition to their Federal 

award. 

American Indian Vocational 

Rehabilitation Services Program 

(AIVRS), 34 CFR Part 371 

Background 

The program makes grants to the 

governing bodies of Indian tribes 

located on Federal and State 

reservations (and consortia of those 

governing bodies). Grantees provide 

vocational rehabilitation services for 

American Indians who are individuals 

with disabilities residing on or near 

these reservations, consistent with their 

strengths, resources, priorities, 

concerns, abilities, capabilities, 

interests, and informed choice, so that 

these individuals may prepare for, and 

engage in, high-quality employment that 

will increase opportunities for economic 

self-sufficiency. The Department last 

made a comprehensive revision of the 

regulations for this program on February 

18, 1994 (59 FR 8338). 

Summary of Proposed Changes 

These proposed regulations would 

implement the changes WIOA made to 

section 121 of title I of the Act. WIOA 

expanded the definition of ‘‘Indian’’ to 

include natives and descendants of 

natives under the Alaska Native Claims 

Settlement Act. WIOA amended the 

definition of ‘‘Indian tribe’’ to include a 

‘‘tribal organization.’’ Proposed subpart 

B would amend the AIVRS regulations 

to implement the WIOA requirement 

that not less than 1.8 percent and not 

more than 2 percent of the funds for the 

AIVRS program be reserved to provide 

training and technical assistance to the 

governing bodies of Indian tribes and 

consortia of those governing bodies 

eligible for a grant under this program. 

The proposed amendments also 

implement changes made by WIA in 

1998 that have not previously been 

incorporated, such as the expansion of 

services to American Indians with 

disabilities living ‘‘near’’ a reservation, 

as well as ‘‘on’’ a reservation and the 

change of the project period from up to 

three to up to five years. Additionally, 

we propose to incorporate relevant 

sections of part 369, which the 

Department proposes to repeal, and 

relevant sections of part 361, 

particularly definitions found in each of 

those parts. 

Significant Proposed Regulations 

Because we propose to make a 

number of structural and numbering 

revisions to part 371, we discuss the 

proposed changes by subpart and, 

within each subpart, by subject or 

section. 

Subpart A—General 

Statute: The statutory title of this 

program is ‘‘American Indian 

Vocational Rehabilitation Services.’’ 

Current Regulations: The current title 

for the program in the regulation is 

‘‘Vocational Rehabilitation Service 

Projects for American Indians with 

Disabilities.’’ 

Proposed Regulations: We propose to 

change the title of part 371 to 

‘‘American Indian Vocational 

Rehabilitation Services.’’ 

Reasons: The change would make the 

title of the regulations consistent with 

the statutory title of the program, 

eliminating any confusion. 

Statute: WIOA clarified the purpose 

of the AIVRS program. It added 

language to section 121(a) of the Act 

describing that services would be 

provided to American Indians 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, high-quality employment that 

will increase opportunities for economic 

self-sufficiency. 

WIA amendments in 1998 added the 

ability of AIVRS projects to serve 

American Indians with disabilities who 

live ‘‘near’’ the reservation in addition 

to ‘‘on’’ the reservation. Additionally, 

section 121(b)(B) of the Act authorizes 

projects funded under this program to 

include ‘‘services traditionally used by 

Indian tribes.’’ 

Current Regulations: Current § 371.1 

does not include the ability of projects 

to serve individuals ‘‘near’’ a 

reservation, nor does it make clear that 

projects may provide culturally 

appropriate services (i.e., services 

traditionally used by Indian tribes). 

While it includes some of the language 

regarding the purpose of the program, it 

does not include all of the new language 

added by WIOA. 

Proposed Regulations: We propose to 

amend § 371.1 to restate the purpose of 

the program and include the new 

language added to section 121 of the Act 

by WIOA. Current § 371.1 would also be 

updated to include the expanded 

eligibility of beneficiaries in the WIA 

1998 amendments to section 121. 

Reasons: The regulations would 

properly reflect the purpose of the 

program restated by WIOA and the 

expansion of services to American 

Indians with disabilities who live 

‘‘near’’ the reservation made by WIA in 

1998. 


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Statute: WIOA affects eligibility for 

the AIVRS program by including a 

‘‘tribal organization (as defined in 

section 4(l) of the Indian SelfDetermination and Education 

Assistance Act (25 U.S.C. 450b(l))’’ in 

the definition of ‘‘Indian tribe’’ under 

section 7(19) of the Act. By adding the 

authority to make awards of grants, 

contracts, or cooperative agreements for 

training and technical assistance under 

this program, WIOA also expands the 

eligibility of entities able to apply for 

funding under this program. 

Current Regulations: Section 371.2 

does not reflect the expanded eligibility 

of tribal organizations for AIVRS 

projects or of other entities for the new 

training and technical assistance funds, 

providing only that applications may be 

made by the governing bodies of Indian 

tribes and consortia of those governing 

bodies located on Federal and State 

reservations. 

Proposed Regulations: Proposed 

§ 371.2 would explain how a governing 

body of an Indian tribe, a consortium, 

and a tribal organization may each be an 

applicant for a grant under the AIVRS 

program. In order to ensure that a tribal 

organization is capable of carrying out 

the purposes of the AIVRS program, 

proposed § 371.2(a)(2) would require 

that the tribal organization has, as one 

of its functions, the vocational 

rehabilitation of American Indians with 

disabilities. Proposed § 371.2(a)(3) 

would require that a grant to an 

applicant serving more than one tribe 

must have the approval of each tribe it 

proposes to serve. This section would 

also identify those entities eligible to be 

applicants for a training and technical 

assistance award under the AIVRS 

program. 

Reasons: The proposed amendments 

would incorporate the WIOA changes to 

eligibility for awards under the AIVRS 

program for both AIVRS projects and 

the training and technical assistance 

funds. The amendments would also 

clarify certain requirements the 

applicant for an AIVRS award must 

meet in order to fulfill the purposes of 

the program. 

Statute: Section 121(a) of the Act 

describes the type of projects that are 

authorized to be funded under the 

AIVRS program. 

Current Regulations: Current § 371.10 

describes the types of projects that are 

authorized under the AIVRS program 

but does not include the 1998 

amendments made by WIA that 

expanded the individuals that could be 

served to those who live ‘‘near,’’ as well 

as ‘‘on,’’ the reservation. 

Proposed Regulations: We propose to 

renumber current § 371.10 to § 371.3 

and to add the authority for AIVRS 

projects to serve individuals who reside 

‘‘near’’ a reservation as well as ‘‘on’’ a 

reservation. We also propose to change 

the language of this section to reflect the 

change in the title of this part to be 

consistent with the statutory title of the 

program. 

Reason: We propose to move and 

renumber § 371.10 to § 371.3 in order to 

move that provision to accompany the 

other general provisions in subpart A. 

We propose to update the language in 

order to be consistent with the statutory 

changes made by WIA in 1998 and the 

change made to the title of the 

regulations in this part. 

Statute: Section 121(b)(3) of the Act 

was amended by WIA in 1998 to 

provide that projects funded under the 

AIVRS program are effective for a period 

up to 60 months. 

Current Regulations: Current § 371.5 

provides that a project is effective for up 

to three years and includes 

authorization for an extension up to two 

additional years if certain conditions are 

met. 

Proposed Regulations: We propose to 

renumber current § 371.5 to § 371.4 and 

to update the regulation to provide for 

a project period of up to 60 months. 

Reason: We propose this change in 

order to move this general section before 

the sections addressing applicable 

regulations and definitions at the end of 

subpart A. We propose to update the 

language in order to be consistent with 

the statutory changes made by WIA in 

1998. 

Statute: WIOA amended section 7 of 

the Act, changing several definitions 

relevant to the AIVRS program. 

Current Regulations: Section 371.4 

provides that the definitions in part 369 

apply to the AIVRS program and also 

defines five additional words and 

phrases applicable to the AIVRS 

program. 

Proposed Regulations: Proposed 

§ 371.4 would be moved and 

renumbered to § 371.6 and revised to be 

a comprehensive definitions section. It 

would include the definitions in current 

§ 371.4 and referenced by current 

§ 371.3, some of which we would revise; 

definitions from part 369, which the 

Department proposes to repeal; relevant 

definitions from sections 7 and 121 of 

the Act added by WIOA; relevant 

definitions from part 361; and other 

definitions of terms commonly used in 

this part that are needed to provide 

clarity. 

The definitions that we would add 

from Section 361 are: ‘‘Assessment for 

determining eligibility and vocational 

needs’’; ‘‘Comparable services and 

benefits’’; ‘‘Eligible Individual’’; 

‘‘Employment outcome’’; ‘‘Family 

member’’; ‘‘Maintenance’’; ‘‘Physical 

and mental restoration services’’; 

‘‘Physical or mental impairment’’; 

‘‘Post-employment services’’; 

‘‘Substantial impediment to 

employment’’; ‘‘Supported 

employment’’; ‘‘Supported employment 

services’’; ‘‘Transition services’’; and 

‘‘Transportation.’’ 

The definitions that we would add 

from part 369 are: ‘‘Act’’; ‘‘Community 

rehabilitation program’’; ‘‘Individual 

with a disability’’; ‘‘Individual with a 

significant disability’’; and ‘‘Vocational 

Rehabilitation Services.’’ 

The new definitions required by 

WIOA are: ‘‘Competitive integrated 

employment’’; ‘‘Customized 

Employment’’; Representative of the 

tribal vocational rehabilitation program; 

‘‘Tribal organization;’’ and ‘‘Tribal 

Vocational Rehabilitation Program’’. 

The definitions of common terms we 

would add for clarity are: 

‘‘Representative of the Tribal Vocational 

Rehabilitation program’’ and 

‘‘Subsistence.’’ 

The current definitions that we would 

change are ‘‘Consortium’’; and ‘‘Indian’’; 

‘‘American Indian’’; ‘‘Indian American’’; 

and ‘‘Indian tribe.’’ ‘‘Reservation’’ was 

amended, following public notice and 

comment, by a final regulation issued 

on February 5, 2015 (80 FR 6452). 

Proposed substantive changes to 

individual definitions will be discussed 

throughout this NPRM in conjunction 

with relevant topical discussions. 

Reasons: We propose to include 

relevant definitions from part 369, 

which we propose to repeal, in 

proposed § 371.6 so that these 

definitions still apply to the AIVRS 

program. 

We propose to add definitions of 

terms as they are defined in sections 7 

and 121 of the Act, as amended by 

WIOA, in order to be consistent with the 

statute. 

We propose to include definitions 

from part 361 as the same terms are 

used in the AIVRS program, and adding 

definition of these terms to part 371 will 

make this part easier to use. 

We propose to add definitions of 

‘‘Representative of the Tribal Vocational 

Rehabilitation program’’ and 

‘‘Subsistence.’’ We propose to include 

‘‘Representative of the Tribal Vocational 

Rehabilitation program’’, as used in 

§ 371.21 pertaining to the special 

application requirements for projects 

funded under part 371, because we 

believe the definition would help the 

AIVRS grantees to more effectively 

implement the program and fiscal 

requirements and to improve 

employment outcomes for American 


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Indians with disabilities. We propose to 

define ‘‘subsistence’’ to make clear that 

it is a form of self-employment and that 

it continues to be an allowable 

employment outcome under the AIVRS 

program. 

Finally, we propose to revise the 

definitions of ‘‘American Indian,’’ 

‘‘Consortium’’ and ‘‘Indian tribe’’ to 

implement WIOA changes and to clarify 

eligibility under the program. 

Proposed New Subpart B—Training and 

Technical Assistance (Replaces Current 

Subpart B) 

Statute: WIOA added to section 121 of 

the Act, a new subsection (c), which 

requires that, beginning in FY 2015, not 

less than 1.8 percent and not more than 

2 percent of the funds for this program 

be reserved to provide, either directly or 

through grants, contracts, or cooperative 

agreements, training and technical 

assistance to the governing bodies of 

Indian tribes and consortia of those 

governing bodies awarded a grant under 

this program. Section 121(c) also 

provides that the Secretary must 

conduct a survey of such governing 

bodies to determine funding priorities 

for the training and technical assistance; 

and that the Secretary shall provide for 

peer review of applications to provide 

training and technical assistance from 

eligible entities by panels that include 

persons who are not government 

employees and who have experience in 

the operation of AIVRS programs. 

Current Regulations: None. 

Proposed Regulations: We propose to 

add a new subpart B to part 371, 

consisting of §§ 371.10 through 371.14, 

to govern how the Department would 

assess the need for, and provide training 

and technical assistance to, grantees 

under the AIVRS program. 

Proposed § 371.10 would provide that 

the Secretary reserve not less than 1.8 

percent and not more than 2 percent of 

the funds appropriated to carry out the 

AIVRS program to provide training and 

technical assistance in any fiscal year, 

beginning in FY 2015, to the governing 

bodies of Indian tribes and consortia of 

those governing bodies awarded a grant 

under this program. 

Proposed § 371.11 would explain how 

the Secretary uses the funds specified in 

§ 371.10 to provide training and 

technical assistance, either directly or 

through grants, contracts, or cooperative 

agreements to entities that have the 

capacity to provide such training and 

technical assistance. Any selected entity 

receiving funding would provide 

training and technical assistance to the 

governing bodies of Indian tribes and 

consortia of those governing bodies 

awarded a grant under this program 

with respect to developing, conducting, 

administering, and evaluating tribal 

vocational rehabilitation programs 

funded under this part. 

Proposed § 371.12 would describe 

how the Secretary makes an award 

under subpart B for training and 

technical assistance, requiring an 

applicant to submit an application to 

the Secretary containing a proposal for 

the provision of training and technical 

assistance to the governing bodies of 

Indian tribes and consortia of those 

governing bodies awarded a grant under 

this program. Section 371.12 would also 

require applications to be peer reviewed 

by panels that include individuals who 

are not Federal or State government 

employees and who have experience in 

the operation of AIVRS programs. 

Proposed § 371.13 would provide that 

the Secretary determines funding 

priorities for training and technical 

assistance by conducting a survey of the 

governing bodies of Indian tribes funded 

under this part to assess training and 

technical assistance needs. 

Proposed § 371.14(a) would provide 

that the Secretary evaluates applications 

for a grant, cooperative agreement, or 

contract under subpart B on the basis of 

selection criteria chosen from the 

general selection criteria found in 

EDGAR at 34 CFR 75.210. Proposed 

§ 371.14(b) would allow for a 

competitive preference to be given to 

applications that include as project 

personnel in a substantive role, 

individuals that have been employed as 

a project director or VR counselor by a 

Tribal Vocational Rehabilitation unit 

funded under this part. Proposed 

§ 371.14(c) would provide that, if a 

contract is awarded, it will be made in 

accordance with regulations at 34 CFR 

part 75. 

Reasons: The proposed new subpart B 

gives effect to the new WIOA training 

and technical assistance requirements 

and the manner in which these 

requirements are implemented, 

including a survey of needs and the 

funding of activities either directly or 

through a peer reviewed competitive 

process consistent with the 

Department’s practices. 

Subpart C—How does one apply for a 

grant? 

Statute: None. 

Current Regulations: Section 371.20 

requires the applicant to consult with 

the DSU for the State Vocational 

Rehabilitation program in the State or 

States in which the AIVRS program is 

providing services. 

Proposed Regulations: We propose to 

update current § 371.20 to include the 

language from current § 369.20 that 

references the specific provisions of 

EDGAR in 34 CFR 75.155–75.159 that 

the AIVRS projects should use when 

consulting with the DSU in the State or 

States in which the AIVRS program is 

providing services. 

Reason: Incorporating the specific 

provisions from current § 369.20 would 

clarify the procedures that the AIVRS 

projects should use when consulting 

with the DSU or DSUs in the State or 

States in which it is providing services. 

Statute: WIOA added to section 

121(b)(1)(D) of the Act that applicants 

for a AIVRS grant provide assurances 

that (i) all decisions affecting eligibility 

for vocational rehabilitation services, 

the nature and scope of available 

vocational rehabilitation services and 

the provision of such services will, 

consistent with title I, be made by a 

representative of the tribal vocational 

rehabilitation program funded through 

the grant; and (ii) such decisions will 

not be delegated to another agency or 

individual. 

In addition, the WIA 1998 

amendments made certain amendments 

to the Act reflected throughout, such as 

changing ‘‘severely disabled’’ to 

‘‘significantly disabled;’’ ‘‘similar 

benefits’’ to ‘‘comparable benefits;’’ and 

changing the ‘‘individualized written 

rehabilitation program’’ to the 

‘‘individualized plan for employment.’’ 

These amendments also authorized 

AIVRS projects to provide services to 

American Indians with disabilities 

living ‘‘near’’ as well as ‘‘on’’ a 

reservation in section 121(a). 

Finally, the 1998 amendments made 

changes relevant to the AIVRS program 

to subsection (6) of section 101(a) of the 

Act that address standards for facilities 

and providers of services and deleted 

the requirement in subsection (7) to 

make maximum use of public or other 

vocational or technical training facilities 

or other appropriate community 

resources. 

Current Regulations: Section 371.21 

lists the special application 

requirements for projects funded under 

the AIVRS program. The requirements 

have not, however, been updated to 

reflect the statutory changes made by 

the WIA 1998 amendments and the 

WIOA amendments. 

Proposed Regulations: Current 

§ 371.21(b) already includes the 

requirement that all decisions affecting 

eligibility and the nature, scope and 

provision of vocational rehabilitation 

services will be made by a tribal 

vocational rehabilitation program 

through its vocational rehabilitation 

unit and will not be delegated to 

another agency or individual. However, 

we propose to update the language 


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consistent with the inclusion of the term 

‘‘representative of the tribal vocational 

rehabilitation program’’ in the statute by 

the WIOA amendments. We also 

propose to update other paragraphs of 

current § 371.21 to reflect changes made 

by the WIA 1998 amendments to the 

Act. Additionally, we would revise 

§ 371.21(j) to reflect the statutory 

requirement for the accessibility of 

facilities, and we would add § 371.21(k) 

to require service providers to 

communicate with applicants in 

language or modes of communication 

they understand. Finally, we propose to 

delete current § 371.21(k) since the 

provision in the statute on which it was 

based has been removed. 

Reason: We are proposing these 

changes so that § 371.21 is consistent 

with statutory provisions in the Act, 

which have changed since the last time 

these regulations were amended, and to 

provide for a more culturally sensitive 

and efficient administration of the 

program. 

Subpart D—How does the Secretary 

make a grant? 

Statute: Section 121(b)(1)(A) of the 

Act provides that an application must 

be made at such time, in such manner, 

and contain such information as the 

Commissioner may require. 

Current Regulations: Section 

369.32(b) provides that the Secretary 

considers other factors in addition to the 

selection criteria in making awards, 

such as past performance of the 

applicant in carrying out similar 

activities under previously awarded 

grants. Specifically, the Secretary 

considers such factors as compliance 

with grant conditions, soundness of 

programmatic and financial 

management practices and attainment of 

established project objectives. 

Proposed Regulations: We propose to 

move current § 369.32(b) into part 371 

as proposed § 371.32. 

Reasons: Because the Department is 

repealing part 369, we are proposing 

these changes to provide continuity of 

practice in how the Department makes 

the awards under this program. 

Subpart E—What conditions apply to a 

grantee under this program? 

Statute: None. 

Current Regulations: Current 

§§ 371.40 and 371.41 describe the 

requirements for matching and 

allowable costs, but they do not include 

the authority to serve American Indians 

with disabilities located ‘‘near,’’ as well 

as ‘‘on,’’ the reservation in section 

121(a) added by the WIA amendments 

in 1998 or any reference to the OMB 

Uniform Guidance adopted by the 

Department. 

Proposed Regulations: We propose to 

add to § 371.40 regarding matching and 

§ 371.41 regarding allowable costs the 

references to the sections in 2 CFR 200 

that address these subjects. In addition, 

we propose to update the language in 

§ 371.41 regarding the ability of AIVRS 

projects to serve American Indians with 

disabilities located ‘‘near,’’ as well as 

‘‘on,’’ a reservation. 

Reasons: These proposed changes 

would make §§ 371.40 and 371.41 

consistent with the changes made to 

section 121(a) of the Act in 1998 by the 

WIA amendments and would clarify 

that the Department has adopted the 

OMB Uniform Guidance in 2 CFR part 

200 and will apply that guidance going 

forward instead of the EDGAR 

provisions it replaces. 

Statute: Section 121(b)(1)(B) of the 

Act requires that applicants for an 

award under the AIVRS program 

provide an assurance that the vocational 

rehabilitation services provided to 

American Indians with disabilities 

residing on or near a reservation in a 

State shall be, to the maximum extent 

feasible, comparable to vocational 

rehabilitation services provided under 

the State Vocational Rehabilitation 

program to other individuals with 

disabilities residing in the State. 

Current Regulations: Current § 371.43 

describes the special conditions that 

apply to the AIVRS program. 

Proposed Regulations: We propose to 

add two additional paragraphs to 

§ 371.43. Proposed paragraph (d) would 

describe the nature of the written 

policies that the AIVRS project would 

have to develop in order to ensure that 

the provision of services is based on the 

vocational rehabilitation needs of each 

individual as identified in the 

individual’s IPE and is consistent with 

the individual’s informed choice. 

Proposed paragraph (e) would describe 

the necessary elements of an AIVRS 

project’s policies and procedures 

developed to ensure each individual 

who is an applicant for, or eligible to 

receive, vocational rehabilitation 

services is afforded the opportunity to 

exercise informed choice throughout the 

vocational rehabilitation process. 

Reasons: We propose to add 

paragraphs (d) and (e) to § 371.43 in 

order to ensure that the AIVRS projects 

provide vocational rehabilitation 

services that are comparable to those 

services provided by the State and to 

ensure efficient administration of the 

projects funded under the AIVRS 

program. The nature and scope of the 

vocational rehabilitation services 

provided by the AIVRS projects, and 

respect for the informed choice of the 

consumers who utilize those services, 

are central tenets of vocational 

rehabilitation. While AIVRS projects 

would have been implementing these 

central requirements of the vocational 

rehabilitation program, we believe it is 

essential to require the AIVRS projects 

funded under this program to develop 

and maintain written policies and 

procedures that address these issues. 

Statute: Section 121(b)(1)(B) of the 

Act requires that applicants for an 

award under the AIVRS program 

provide an assurance that the vocational 

rehabilitation services provided to 

American Indians with disabilities 

residing on or near a reservation in a 

State shall be, to the maximum extent 

feasible, comparable to vocational 

rehabilitation services provided under 

the State Vocational Rehabilitation 

program to other individuals with 

disabilities residing in the State. 

Current Regulations: Current § 369.46 

describes the special requirements 

pertaining to the protection, use, and 

release of personal information. 

Proposed Regulations: We propose to 

add a new § 371.44 that describes the 

special requirements pertaining to the 

protection, use, and release of personal 

information. 

Reasons: Because the Department is 

proposing to remove part 369, which 

currently applies to the AIVRS program, 

we propose to incorporate the 

provisions related to the protection, use, 

and release of personal information into 

part 371. However, because vocational 

rehabilitation services provided under 

the AIVRS program are required to be, 

to the maximum extent feasible, 

comparable to vocational rehabilitation 

services provided under the State 

Vocational Rehabilitation program, we 

believe that the section in part 361 that 

describes the special requirements 

pertaining to the protection, use, and 

release of personal information would 

provide better guidance to the AIVRS 

projects. 

Statute: Section 20 of the Act requires 

all programs that provide services to 

individuals with disabilities under the 

Act to advise them or their 

representatives of the availability and 

purposes of the client assistance 

program under section 112, including 

information on means of seeking 

assistance under that program. 

Current Regulations: Current 

§ 369.42(b) requires the AIVRS projects 

to advise applicants or recipients of 

services or, as appropriate, their parents, 

family members, guardians, advocates, 

or authorized representatives, of the 

availability and purposes of the State’s 

Client Assistance Program, including 


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information on seeking assistance from 

that program. 

Proposed Regulations: We propose to 

move current § 369.42(b) into a new 

section of part 371, proposed § 371.45. 

Reasons: Because the Department is 

proposing to remove part 369, which 

currently applies to the AIVRS program, 

we propose to incorporate into part 371 

the provisions related to the 

requirement to advise consumers about 

the existence and purpose of CAP and 

how to contact CAP, which now 

includes as a grantee the protection and 

advocacy system serving the American 

Indian Consortium. 

Rehabilitation National Activities 

Program, 34 CFR Part 373 

Background 

The purpose of this program is to 

provide competitive grants (including 

cooperative agreements) to, or enter into 

contracts with, eligible entities to 

expand and improve the provision of 

vocational rehabilitation and other 

services authorized under the Act, or to 

support activities that increase the 

provision, extent, availability, scope, 

and quality of rehabilitation services, 

including related research and 

evaluation activities. The Department 

last published regulations for this 

program, on December 11, 2000 (65 FR 

77433). 

Summary of Proposed Changes 

These proposed regulations would 

implement the changes WIOA made to 

section 303(b) of the Act. We are 

proposing a new name for the 

program—the Rehabilitation National 

Activities Program—that better 

describes the broad nature of the types 

of activities that may be funded under 

this authority. As appropriate, we 

propose to add a definition of 

‘‘vocational rehabilitation services’’ and 

to replace the term ‘‘rehabilitation 

services’’ with ‘‘vocational 

rehabilitation services.’’ We will retain 

the more general term ‘‘rehabilitation 

services’’ in instances when the services 

listed go beyond vocational 

rehabilitation services. The change 

would clarify that the types of projects 

that may be funded under the 

Rehabilitation National Activities 

Program are not limited to vocational 

rehabilitation services as they are 

defined in title I of the Act but rather 

may address the broader range of 

services encompassed by the term 

‘‘rehabilitation services.’’ 

Further, we propose to add two new 

statutory priorities pertaining to 

transition from education to 

employment and competitive integrated 

employment and add four additional 

priorities to address the technical 

assistance and training needs of State 

vocational rehabilitation agencies and 

their personnel. 

Significant Proposed Regulations 

We arrange our discussion of 

proposed changes to this part by subject. 

Title 

Statute: None. 

Current Regulations: The current part 

373 is called ‘‘Special Demonstration 

Programs.’’ 

Proposed Regulations: We propose to 

change the name of the part to 

‘‘Rehabilitation National Activities 

Program.’’ 

Reasons: The new name would better 

describe the activities funded under this 

program. 

Cooperative Agreements 

Statute: None. 

Current Regulations: Although 

authorizing the awarding of grants, the 

current part 373 does not specifically 

state that the Department may also 

award cooperative agreements. 

Proposed Regulations: We propose to 

amend § 373.1 to state that grants and 

cooperative agreements may be awarded 

to serve the purpose of the 

Rehabilitation National Activities 

Program authorized under the Act. 

Reasons: The proposed change would 

clarify that the Secretary may make 

cooperative agreements, which are one 

type of grant, to pay all or part of the 

costs of the activities covered under this 

program. 

Competitive Integrated Employment 

Statute: Section 303 of the Act, as 

amended by WIOA, mandates that, in 

announcing competitions for the special 

demonstration programs, the 

Commissioner shall give priority 

consideration to initiatives focused on 

improving transition from education to 

employment, particularly in competitive 

integrated employment, for youth who 

are individuals with significant 

disabilities and to increasing 

competitive integrated employment for 

individuals with significant disabilities. 

Section 7 of the Act now defines the 

term ‘‘competitive integrated 

employment.’’ 

Current Regulations: The current part 

373 does not address competitive 

integrated employment. 

Proposed Regulations: We propose to 

include a provision in § 373.7 stating 

that the Commissioner will give priority 

consideration to activities on improving 

transition from education to 

employment, including competitive 

integrated employment. We also 

propose to add a definition of 

‘‘competitive integrated employment’’ 

in § 373.4. 

Reasons: The proposed change is 

necessary to conform part 373 to the 

changes to the Act made by WIOA. 

Vocational Rehabilitation Services 

Statute: The Act refers to the 

provision of ‘‘vocational rehabilitation 

services’’ throughout title I, and section 

7 defines the term ‘‘vocational 

rehabilitation services.’’ Section 303 of 

the Act, however, does not refer to the 

term ‘‘vocational rehabilitation 

services’’ but rather authorizes special 

demonstration programs to expand and 

improve the provision of rehabilitation 

and other services under the Act. 

Current Regulations: There is no 

reference to the term ‘‘vocational 

rehabilitation services’’ in part 373. 

Also, part 373 includes a definition of 

‘‘rehabilitation services’’ that is virtually 

identical to section 103(a) of the Act, 

which details vocational rehabilitation 

services for individuals. 

Proposed Regulations: We propose to 

amend part 373 by replacing, when 

appropriate, the term ‘‘rehabilitation 

services’’ with the term ‘‘vocational 

rehabilitation services.’’ In addition, we 

propose adding a definition for the term 

‘‘vocational rehabilitation services’’ that 

is identical to the current definition for 

the term ‘‘rehabilitation services.’’ 

Finally, we propose to change the 

definition of the term ‘‘rehabilitation 

services’’ in a manner that is broader 

than the proposed definition for the 

term ‘‘vocational rehabilitation 

services.’’ 

Reasons: These proposed changes are 

necessary to conform part 373 to titles 

I and III of the Act and to differentiate 

between rehabilitation services and 

vocational rehabilitation services. These 

proposed changes would clarify that the 

types of projects that may be funded 

under the Rehabilitation National 

Activities Program are not limited to 

vocational rehabilitation services but 

rather may address the broader range of 

services encompassed by the term 

‘‘rehabilitation services’’ authorized by 

title III of the Act. 

Supported Employment 

Statute: Section 303 of the Act 

mandates that, in announcing 

competitions under this program, the 

Commissioner shall give priority 

consideration to supported employment 

programs. Section 7 of the Act defines 

the term ‘‘supported employment.’’ 

Current Regulations: The current part 

373 does not include a definition of the 

term ‘‘supported employment.’’ 


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Proposed Regulations: We propose to 

amend § 373.4 to include a definition of 

‘‘supported employment’’ that is 

currently contained in § 361.5(b)(53). 

Reasons: The proposed change would 

better assist eligible entities in 

determining how to comply with any 

requirement to address supported 

employment. Specifically, in 

implementing the priority listed in 

proposed § 373.7(a)(2), in which the 

term ‘‘supported employment’’ is used, 

we are proposing that the same 

definition of this term that is used in 34 

CFR part 361 be used here. 

Projects That May Be Funded 

Statute: Under section 303 of the Act, 

projects funded under the special 

demonstration programs may include 

special projects and demonstrations of 

service delivery, model demonstration 

projects, technical assistance projects, 

systems change projects, special studies 

and evaluations, and dissemination and 

utilization activities. 

Current Regulations: Part 373 lists 

these types of projects along with 

potential project priorities in § 373.6, 

which is entitled ‘‘What are the 

priorities and other factors and 

requirements for competitions?’’ 

Proposed Regulations: We propose to 

amend current § 373.6 to change the 

section title to ‘‘What types of projects 

may be funded?’’ and to include only 

the six types of projects authorized by 

the statute under this section. 

Reasons: The proposed change is 

necessary to conform part 373 to the Act 

and to clarify that the types of projects 

that may be funded under the 

Rehabilitation National Activities 

Program are not priorities for funding. 

Priorities for Competitions 

Statute: Section 303(b)(5) of the Act, 

as amended by WIOA, adds transition 

from education to employment and 

competitive integrated employment to 

supported employment as priorities for 

competitions. 

Current Regulations: Section 373.6 

lists three statutory priorities, two of 

which have been deleted by WIOA, and 

the third, pertaining to supported 

employment, does not contain the full 

statutory language. 

Proposed Regulations: We propose to 

amend part 373 by adding a new § 373.7 

entitled ‘‘What are the priorities and 

other factors and requirements for 

competitions?’’ This proposed section 

contains the full statutory language for 

the two new statutory priorities 

pertaining to transition from education 

to employment and competitive 

integrated employment and for the 

preexisting statutory priority for 

supported employment. 

Reasons: The proposed change is 

necessary to conform part 373 to the 

new statutory priorities contained in 

WIOA. 

Priorities and Other Factors and 

Requirements for Competitions 

Statute: Section 303 of the Act 

mandates that, in announcing 

competitions for grants and contracts 

under the special demonstration 

programs, the Commissioner shall give 

priority consideration to ‘‘priority for 

competitions’’ under section 

303(b)(5)(A), and may require applicants 

to address one or more ‘‘additional 

competitions’’ under section 

303(b)(5)(B). 

Current Regulations: Part 373 

addresses priority projects in § 373.6 but 

does not specify or differentiate among 

‘‘priority for competitions’’ and 

‘‘additional competitions.’’ 

Proposed Regulations: We propose to 

move the content of priorities from the 

current § 373.6 into a new § 373.7. In 

addition to the statutory priorities that 

are listed in the current § 373.6, we 

propose that § 373.7 include the 

following four additional priorities for 

competitions under this program to 

address the technical assistance and 

training needs of State vocational 

rehabilitation agencies and their 

personnel: 

§ 373.7(b)(6) Technical assistance to 

designated State units and their 

personnel in working with employers to 

identify competitive integrated 

employment opportunities and career 

exploration opportunities in order to 

facilitate the provision of vocational 

rehabilitation services and transition 

services for youth with disabilities and 

students with disabilities. 

§ 373.7(b)(7) Consultation, training 

and technical assistance to businesses 

that have hired or are interested in 

hiring individuals with disabilities. 

§ 373.7(b)(8) Technical assistance and 

training to designated State units and 

their personnel on establishment and 

maintenance of education and 

experience requirements, to ensure that 

the personnel have an understanding of 

the evolving labor force and the needs 

of individuals with disabilities. This 

would align with the work of the 

current Job Development Training and 

Technical Assistance Center. 

§ 373.7(b)(9) Technical assistance to 

State vocational rehabilitation agencies 

and their partners to improve their 

performance to meet the requirements of 

WIOA designed to improve the numbers 

and quality of employment outcomes. 

Finally, the proposed § 373.7 would 

also clarify that the Secretary may limit 

the priorities listed in paragraphs (a) 

and (b) of § 373.7 to address one or more 

of the factors in § 373.7(c). 

Reasons: The proposed changes are 

necessary to conform part 373 to the 

changes to the Act made by WIOA and 

to clarify the additional competition 

priorities and factors that the Secretary 

may apply to any competitions under 

this program. We expect that these 

proposed changes would expand and 

improve the Rehabilitation National 

Activities Program and further the 

purpose of the Act. 

Protection and Advocacy of Individual 

Rights Program (PAIR), 34 CFR Part 

381 

Background 

The PAIR program is authorized 

under section 509 of the Act (29 U.S.C. 

794e). The purpose of the PAIR program 

is to support the protection and 

advocacy system in each State to protect 

the legal and human rights of 

individuals with disabilities who need 

services that are beyond the scope of the 

CAP, and who are not eligible for 

services under the Protection and 

Advocacy for Persons with 

Developmental Disabilities and the 

Protection and Advocacy of Individuals 

with Mental Illness programs. 

The Department last updated the 

regulations at 34 CFR part 381, which 

govern the PAIR program, on March 6, 

1997 (62 FR 10404). 

Summary of Proposed Changes 

Both WIA and WIOA made a few 

significant changes to section 509 of the 

Act. With regard to the statutory 

changes made to section 509 by WIA, 

we propose to add the protection and 

advocacy system serving the American 

Indian Consortium as an entity eligible 

to receive a PAIR grant. 

With regard to statutory changes made 

to section 509 by WIOA, we propose to 

clarify that PAIR grantees have the same 

general authorities, including to access 

records and program income, as the 

protection and advocacy system 

established under the Developmental 

Disabilities Assistance and Bill of Rights 

Act of 2000. 

We propose to clarify that the 

Secretary may award funds for the 

provision of training and technical 

assistance for PAIR grantees through a 

grant, contract, or cooperative 

agreement. 

Significant Proposed Regulations 

We organize our discussion of 

proposed changes by subject and 

section. 


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The Definition of ‘‘State’’ (§ 381.2) 

Statute: Section 7(32) of the Act, as 

amended by WIA (29 U.S.C. 705(32)), 

deleted the Republic of Palau from the 

definition of the term ‘‘State.’’ As a 

result, ‘‘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. Section 7(32) of the Act was 

renumbered as section 7(34) by WIOA. 

Current Regulations: Current part 381 

makes several references to the Republic 

of Palau (i.e., current § 381.2 regarding 

eligibility for a PAIR grant and current 

§ 381.5 regarding definition of ‘‘State’’). 

Proposed Regulations: We propose to 

delete all references to the Republic of 

Palau in part 381. 

Reasons: This change is necessary to 

implement the current statutory 

definition of ‘‘State,’’ which forms the 

basis for determining eligibility for 

grants under the Act. 

Public School Programs (§ 381.3) 

Statute: None. 

Current Regulations: The current 

§ 381.3(a)(3) permits PAIR grantees to 

provide information on, and make 

referrals to, programs and services that 

address the needs of individuals with 

disabilities, including those individuals 

with disabilities who are exiting public 

school programs. Current § 381.10(a)(4) 

requires PAIR grantees to make an 

assurance to provide information on and 

make referrals to programs and services 

that address the needs of individuals 

with disabilities, including those 

individuals with disabilities who are 

exiting public school programs. 

Proposed Regulations: We propose to 

make two changes in this part. First, we 

propose to amend current § 381.3(a)(3) 

to clarify that PAIR grantees are 

authorized to provide information and 

referral services to individuals with 

disabilities exiting any school program. 

Second, we propose to amend 

§ 381.10(a)(4) to require PAIR grantees 

to assure that they will provide 

information and referral services to 

individuals with disabilities exiting any 

school program. 

Reasons: In proposing to use the term 

‘‘school,’’ rather than ‘‘public school,’’ 

we recognize that many more 

individuals with disabilities are being 

educated in both public and private 

schools and that they may need 

information and referral services by 

PAIR grantees to enable them to 

participate in the programming offered 

in these settings. 

Access to Records (§ 381.10) 

Statute: Section 509(f)(2) of the Act, 

as amended by WIOA (29 U.S.C. 

794e(f)), requires that PAIR grantees 

have the same general authorities, 

including the authority to access records 

and program income, as given to the 

Protection and Advocacy for Persons 

with Developmental Disabilities 

program established under the 

Developmental Disabilities Assistance 

and Bill of Rights Act of 2000. 

Current Regulations: Current 

§ 381.10(a)(2) gives that PAIR grantees 

the same general authorities, including 

to access records and program income, 

as in part C of the Developmental 

Disabilities Assistance and Bill of Rights 

Act of 2000. 

Proposed Regulations: We propose to 

amend § 381.10(a)(2) to add specific 

reference to ‘‘title I’’ of the 

Developmental Disabilities Assistance 

and Bill of Rights Act of 2000. 

Reasons: The proposed change is 

necessary to conform to the language of 

section 509, as amended by WIOA. This 

proposed change is primarily technical 

in nature as this authority existed prior 

to enactment of WIOA. 

Training and Technical Assistance 

(§ 381.22) 

Statute: Section 509(c)(1)(A) of the 

Act, as amended by WIOA (29 U.S.C. 

794e(f)), clarifies that the training and 

technical assistance to PAIR grantees 

may be provided by the Secretary 

through a grant, cooperative agreement, 

or contract. 

Current Regulations: Current 

§ 381.22(a)(1) establishes the set aside 

for training and technical assistance to 

eligible systems, but does not specify 

the allowable mechanisms for funding 

the training and technical assistance 

since this is a new statutory 

requirement. 

Proposed Regulations: We propose to 

amend § 381.22(a)(1) to clarify the funds 

for training and technical assistance 

may be awarded as a grant, contract, or 

cooperative agreement. 

Reasons: The proposed changes are 

necessary to conform to the changes in 

the Act made by WIOA. The changes are 

primarily technical, as the Secretary 

always could use these mechanisms for 

awarding funds to provide training and 

technical assistance to PAIR grantees. 

The American Indian Consortium 

(§ 381.22) 

Statute: Section 509(c)(1)(B) of the 

Act, as amended by WIA (29 U.S.C. 

794e(c)), requires the Secretary to 

reserve $50,000 to make a grant to the 

protection and advocacy system serving 

the American Indian Consortium, 

established under section 102 of the 

Developmental Disabilities Assistance 

and Bill of rights Act of 2000, for any 

fiscal year in which appropriations for 

the PAIR program is at least $10.5 

million. 

Current Regulations: Current § 381.22 

does not address the funding of the 

protection and advocacy system serving 

the American Indian Consortium 

because part 381 was last updated prior 

to the 1998 amendments to the Act. 

Proposed Regulations: We propose to 

amend § 381.22 by adding a new 

paragraph (a)(2) to require a minimum 

grant of $50,000 to the protection and 

advocacy system serving the American 

Indian Consortium when the total PAIR 

appropriation equals or exceeds $10.5 

million. We also propose to make 

related changes to four other sections in 

this part. 

Current § 381.2 would be amended to 

include the American Indian 

Consortium as an eligible entity for a 

PAIR grant. 

Current § 381.3 would be amended to 

clarify that the protection and advocacy 

system serving the American Indian 

Consortium has the authority to provide 

information, provide advocacy and legal 

representation, and make referrals for 

individuals with disabilities within the 

American Indian Consortium when 

describing the authorized activities of 

PAIR grantees. 

Current § 381.5 would be amended to 

incorporate references to tribal 

governmental agencies in the definition 

of ‘‘advocacy.’’ 

Current § 381.10 would be amended 

to require the protection and advocacy 

system serving the American Indian 

Consortium to submit assurances as a 

PAIR grantee when applying for funding 

as part of the application requirements. 

Reasons: The proposed changes are 

necessary to implement the 

amendments to the Act made by WIA in 

1998. Previously, this protection and 

advocacy system was eligible for 

funding under other components of the 

protection and advocacy system, 

including the Protection and Advocacy 

of Persons with Developmental 

Disabilities and the Protection and 

Advocacy of Individuals with Mental 

Illness programs, but not under the 

PAIR program. 

Reallotment (§ 381.22) 

Statute: Section 509(e) of the Act (29 

U.S.C. 794e(e)) sets forth the process by 

which the Secretary reallots PAIR funds 

when a grantee cannot use all funds 

allotted to it. This statutory provision 

remains unchanged. 


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Current Regulations: Current § 381.22 

addresses how the Secretary allocates 

funds but does not cover the reallotment 

requirements. 

Proposed Regulations: We propose to 

add a new paragraph (d) to § 381.22 to 

clarify that the Secretary may reallot 

funds to other eligible systems when an 

existing eligible system within the State 

is not able to expend its funds in that 

fiscal year or the subsequent fiscal year. 

Reasons: While the reallotment of 

PAIR funds has been permitted under 

section 509 of the Act, PAIR grantees 

have not returned funds to the 

Department for this purpose. However, 

we believe it is important to describe 

the reallotment requirements in this part 

in the event reallotment funds become 

available. 

Program Income (§ 381.33) 

Statute: Section 19 of the Act governs 

the use of program income received by 

grantees, including PAIR grantees, 

under the Act. This statutory provision 

remains unchanged. 

Current Regulations: Current § 381.33 

describes how a grantee may use or 

carry over funds but it does not address 

how a grantee may spend program 

income 

Proposed Regulations: We propose to 

add a new paragraph (e) to § 381.33 that 

defines program income, identifies its 

uses, permits it to be treated as either an 

addition or deduction to the PAIR 

award, and permits program income to 

be carried over into the fiscal year 

succeeding that in which it was earned. 

Reasons: These proposed regulations 

are necessary to govern the use and 

treatment of program income, consistent 

with sections 19 and 509 of the Act. 

Although this is not a new statutory 

requirement, we believe it is important 

to include these regulations into part 

381 since PAIR grantees frequently 

receive large sums of program income. 

Rehabilitation Training Program, 34 

CFR Part 385 

Background 

The Rehabilitation Training program 

is designed to: (1) ensure that skilled 

personnel are available to provide 

rehabilitation services to individuals 

with disabilities through vocational, 

medical, social, and psychological 

rehabilitation programs, through 

independent living services programs, 

and through client assistance programs; 

(2) maintain and upgrade basic skills 

and knowledge of personnel trained to 

deliver rehabilitation services; and (3) 

provide training and information to 

individuals with disabilities, and their 

parents, families, guardians, advocates, 

and authorized representatives, to 

develop the skills necessary to access 

the rehabilitation system and to become 

active decision makers in the vocational 

rehabilitation process. The Department 

last published regulations for this 

program, on March 6, 1997 (62 FR 

10398). 

Summary of Proposed Changes 

We propose to add supported 

employment and economic and 

business development programs to the 

list of programs that may benefit 

individuals with disabilities. 

We propose to emphasize the 

importance of maintaining and 

upgrading the skills of personnel who 

provide supported employment services 

and customized employment services to 

individuals with the most significant 

disabilities, as well as personnel 

assisting individuals with disabilities 

whose employment outcome is selfemployment, business ownership, or 

telecommuting. 

We propose to add a definition of 

‘‘vocational rehabilitation services’’ and 

to replace the term ‘‘rehabilitation 

services’’ with ‘‘vocational 

rehabilitation services’’ as appropriate. 

We will retain the more general term 

‘‘rehabilitation services’’ in instances 

when the services listed go beyond 

vocational rehabilitation services. 

Finally, we would add definitions of 

‘‘supported employment’’ and ‘‘assistive 

technology’’ consistent with definitions 

in title I of the Act. 

Significant Proposed Regulations 

We organize our discussion by 

subject. 

Purpose 

Statute: Section 301(a) of the Act 

states the purpose of the programs 

authorized under Title III of the Act and 

describes the types of programs whose 

personnel may benefit from 

rehabilitation training. Section 301(a)(1) 

authorizes the Commissioner to make 

grants and contracts to train personnel 

who work in economic and business 

development programs. WIOA added 

language to section 302(a)(1)(E) 

specifically highlighting the need to 

train personnel in programs that provide 

supported employment and customized 

employment for individuals with the 

most significant disabilities. Section 

302(a)(1)(F) describes personnel 

assisting individuals with disabilities 

whose employment outcome is selfemployment, business ownership, or 

telecommuting. 

Current Regulations: The current part 

385 does not specifically address 

training personnel who deliver 

supported employment services and 

customized employment services to 

individuals with the most significant 

disabilities, nor is training personnel 

who assist individuals with disabilities 

whose employment outcome is selfemployment, business ownership, or 

telecommuting specifically mentioned. 

Proposed Regulations: We propose to 

amend current § 385.1(a)(1) by adding 

supported employment and economic 

and business development programs to 

the list of programs that may benefit 

individuals with disabilities. We also 

propose to amend current § 385.1(a)(2) 

to emphasize the importance of 

maintaining and upgrading the skills 

both of personnel who provide 

supported employment services and 

customized employment services to 

individuals with the most significant 

disabilities and personnel assisting 

individuals with disabilities whose 

employment outcome is selfemployment, business ownership, or 

telecommuting. 

Reasons: The proposed changes in the 

regulations are necessary to conform the 

regulations to current sections 301(a) 

and 302(a) of the Act. 

Assistive Technology Terms 

Statute: Section 302(a)(1)(H) of the 

Act, as amended by WIOA, authorizes 

the Rehabilitation Training program to 

assist eligible entities to provide 

rehabilitation personnel training in 

providing assistive technology services. 

Current Regulations: The current part 

385 does not address ‘‘assistive 

technology services’’ although the term 

‘‘rehabilitation technology’’ is used in 

§ 385.1(a)(2), and § 385.4 includes 

definitions of ‘‘assistive technology 

device’’ and ‘‘assistive technology 

services.’’ 

Proposed Regulations: We propose to 

add a definition of ‘‘assistive 

technology’’ to the definitions ‘‘assistive 

technology device’’ and ‘‘assistive 

technology services’’ already in current 

§ 385.4. Specifically we define 

‘‘assistive technology’’ to mean 

‘‘technology designed to be utilized in 

an assistive technology device or 

assistive technology service.’’ In 

addition, we propose to add to the 

definition of ‘‘assistive technology 

services’’ services that would expand 

the availability of access to technology, 

including electronic and information 

technology, to individuals with 

disabilities. 

Reasons: The proposed changes are 

necessary to conform part 385 to the 

changes to the Act made by WIOA. 


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Definition of State 

Statute: The Workforce Investment 

Act of 1998 deleted the Republic of 

Palau from the definition of the term 

‘‘State’’ in section 7(32). As a result, 

‘‘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, but it has excluded the 

Republic of Palau. 

Current Regulations: The current 

§ 385.4 includes the Republic of Palau 

in the definition of ‘‘State.’’ 

Proposed Regulations: We propose to 

delete the Republic of Palau from the 

areas included in the definition of 

‘‘State.’’ 

Reasons: The change conforms the 

definition of ‘‘State’’ to the current 

statutory definition. 

Vocational Rehabilitation Services 

Statute: The Act refers to ‘‘vocational 

rehabilitation services’’ throughout title 

I, and section 7 defines the term 

‘‘vocational rehabilitation services.’’ 

Current Regulations: The current part 

385 does not include a definition of 

‘‘vocational rehabilitation services.’’ 

Proposed Regulations: We propose to 

amend part 385 by adding a definition 

of ‘‘vocational rehabilitation services.’’ 

The proposed definition mirrors the 

definition provided in section 7 of the 

Act. We also propose to replace the term 

‘‘rehabilitation services’’ with 

‘‘vocational rehabilitation services’’ in 

part 385 as appropriate. We would 

retain the more general term 

‘‘rehabilitation services’’ in instances 

when the services listed go beyond 

vocational rehabilitation services. 

Reasons: The proposed changes are 

necessary to conform part 385 to titles 

I and III of the Act. 

Supported Employment 

Statute: The changes to section 302 of 

the Act made by WIOA include a new 

authority in 302(a)(1) to train 

rehabilitation personnel to deliver 

supported employment services and 

customized employment services to 

individuals with the most significant 

disabilities. In addition, section 7(38) of 

the Act, as amended by WIOA, includes 

a definition of ‘‘supported 

employment.’’ 

Current Regulations: The current part 

385 does not address the provision of 

training for rehabilitation personnel to 

deliver supported employment services 

and customized employment services to 

individuals with the most significant 

disabilities. 

Proposed Regulations: We propose to 

amend the definitions of ‘‘supported 

employment’’ and ‘‘supported 

employment services’’ in current § 385.4 

to address the amendments made to the 

Act by WIOA. 

Reasons: The proposed changes are 

necessary to conform part 385 to 

changes to section 7(38) of the Act made 

by WIOA. The fact that supported 

employment services now include 

‘‘customized employment’’ and the fact 

that supported employment services 

may be provided for up to 24 months 

are changes that need to be reflected in 

the regulations. 

Rehabilitation Long-Term Training 

Program, 34 CFR Part 386 

Background 

The purpose of the Rehabilitation 

Long-Term Training program is to 

provide financial assistance for projects 

that provide basic or advanced training 

leading to an academic degree or 

certificate in one of 30 fields of study 

and for projects that provide support for 

medical residents enrolled in training 

programs in physical medicine and 

rehabilitation. The program is designed 

to provide academic training that leads 

to an academic degree or academic 

certificate in areas of personnel 

shortages. The Department last 

published regulations for this program 

on March 6, 1997 (62 FR 10398). 

Summary of Changes 

We propose to add two areas to the 

training areas supported by this 

program: (1) Assisting and supporting 

individuals with disabilities pursuing 

self-employment, business ownership, 

and telecommuting, and (2) supported 

employment services and customized 

employment services to individuals 

with the most significant disabilities. 

We are also proposing to reduce from 

75 percent to 65 percent the required 

percentage of the total award that 

grantees must spend on financial 

assistance to scholars. 

We propose to prohibit scholars from 

concurrently receiving financial 

assistance from multiple grants. 

We propose that the grantee must 

document that the scholar will seek 

employment in the field of study in 

which the scholar was trained or where 

the field of study is directly relevant to 

the job functions being performed. 

We are proposing a number of 

changes to the exit processes that will 

help scholars be more aware of the 

requirements of their service obligation. 

We propose to set out the 

consequences for a grantee that has 

failed to request or maintain the 

required documentation for a scholar 

who does not meet the service 

obligation. 

We propose to allow some scholars to 

start satisfying the service obligation 

before completion of the program of 

study but to prohibit other scholars who 

do not complete the program of study 

from performing the service obligation. 

We propose to disallow internships, 

practicums, or any other work-related 

requirement necessary to complete the 

educational program as qualifying 

employment for the service obligation. 

Finally, we propose some changes 

regarding deferrals and exceptions. For 

an exception based on disability, the 

scholar must have a disability either 

that did not exist at the time the scholar 

entered the program or that has 

worsened since the scholar entered the 

program. We are proposing that 

documentation of disability be less than 

three months old. With regard to 

deferrals, we propose to allow for up to 

four years deferral for a member on 

active duty in the Armed Forces, an 

increase from the three years in current 

regulations. We are proposing to restrict 

a deferral based on a scholar’s pursuing 

higher education only to advanced 

education that is in the rehabilitation 

field. 

Significant Proposed Regulations 

We organize our discussion by section 

number and subject. 

Section 386.1 (Purpose) 

Statute: Section 302(a)(1) of the Act 

provides examples of the types of 

personnel who can be trained with 

funds under the long-term training 

program. Specifically, section 

302(a)(1)(F) references the need to train 

personnel assisting and supporting 

individuals with disabilities pursuing 

self-employment, business ownership, 

and telecommuting. In addition, section 

302(a)(1)(E) lists the need for personnel 

specifically trained to deliver supported 

employment services and customized 

employment services to individuals 

with the most significant disabilities. 

Current Regulations: Current 

§ 386.1(b) lists the categories of 

personnel who may receive training 

through the Rehabilitation Long-Term 

Training Program but does not include 

the categories in sections 302(a)(1)(E) 

and (F). 

Proposed Regulations: In the list of 

personnel who may receive training 

through the Rehabilitation Long-Term 

Training Program in current § 386.1(b), 

we propose to add paragraph (1) listing 

personnel assisting and supporting 

individuals with disabilities pursuing 

self-employment, business ownership, 


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and telecommuting. In paragraph (3) of 

proposed § 386.1(b), we would combine 

paragraphs (2) and (30) in current 

§ 386.1(b) into one item on 

rehabilitation technology. In paragraph 

(14) of proposed § 386.1(b), we would 

combine paragraphs (13) and (29) in 

current § 386.1(b) into one item on 

therapeutic recreation. In paragraph (17) 

of current § 386.1(b), we would clarify 

the meaning of the specialty of 

‘‘rehabilitation of individuals who are 

blind or visually impaired’’ by 

providing two examples of the types of 

personnel in this specialty area. Finally, 

in paragraph (28) of proposed § 386.1(b), 

we would include customized 

employment in addition to supported 

employment. 

Reasons: We are proposing these 

changes in § 386.1(b) to better align the 

regulations with the Act and to clarify 

language in current regulations. 

Section 386.4 (Definitions) 

Statute: None. 

Current Regulations: Current 

§ 386.4(b) defines terms that apply to 

the Rehabilitation Long-Term Training 

Program. 

Proposed Regulations: We proposed 

to clarify two terms appearing in the list 

in current § 386.4(b), Other definitions. 

First, we would clarify that a 

‘‘scholarship’’ may cover the costs of 

books and supplies, in addition to 

student stipends, tuition and fees, and 

student travel in conjunction with 

training assignments. We would also 

clarify that the ‘‘State vocational 

rehabilitation agency’’ is the same as the 

designated State agency referenced in 

current § 361.5(b)(13). 

Reasons: With regard to the definition 

of ‘‘scholarship,’’ our policy has been to 

consider ‘‘books and supplies’’ as 

allowable expenses to be covered with 

scholarship funds under this program; 

we are simply incorporating this policy 

into the regulations. The proposed 

changes to the definition of ‘‘State 

vocational rehabilitation agency’’ would 

clarify the meaning of the current 

definition. 

Section 386.21 (Applications) 

Statute: Section 302(b)(2) of the Act 

describes application requirements for 

grantees receiving support under the 

Rehabilitation Training program. 

Current Regulations: These 

application requirements are not 

contained in current regulations. 

Proposed Regulations: We propose to 

incorporate the application 

requirements in section 302(b)(2) into a 

new § 386.21. 

Reasons: Including these application 

requirements in the regulations will 

help to make grantees aware of the 

statutory requirement. 

Section 386.30 (Matching requirements) 

Statute: Section 302(a)(1) states that 

grants under this program pay part of 

the costs of the projects. 

Current Regulations: Current § 386.30 

states that the Federal share cannot be 

greater than 90 percent of the total 

project cost. 

Proposed Regulations: Current 

§ 386.30 has been reworded to state that 

the grantee is required to contribute at 

least ten percent of the total cost of the 

project. 

Reasons: Although having the same 

meaning, the proposed language more 

clearly states the requirement in terms 

of the amount of the cost the grantee 

must cover. We believe this affirmative 

language would lead to less confusion 

and greater compliance with the match 

requirement. 

Section 386.31 (Funding Requirements) 

Statute: None. 

Current Regulations: In § 386.31(a), 

grantees are required to expend 75 

percent of their award on financial 

assistance to scholars. 

Proposed Regulations: We would 

reduce this 75 percent requirement and 

are instead proposing in § 386.31(a) that 

a minimum of 65 percent of the total 

project cost (including both the Federal 

grant and the cost share) must be 

expended on financial assistance for 

scholars. In addition, in § 386.31(c), we 

are proposing a new provision to clarify 

that scholars may not receive concurrent 

scholarships from more than one project 

under this program. 

Reasons: Many grantees have had 

problems meeting the current regulatory 

provision in § 386.31(a). Specifically, 

we have found that requiring grantees to 

dedicate 75 percent of their Federal 

award and their non-Federal share to 

scholarships leaves very little flexibility 

in their budgets and makes 

administering these grants problematic. 

Therefore, we are proposing to reduce 

the percentage that the grantee is 

required to expend on financial 

assistance for scholars. This proposed 

change is also consistent with the 

threshold used by the Office of Special 

Education Programs in their personnel 

preparation grants under the Individuals 

with Disabilities Education Act (IDEA). 

The additional provision in proposed 

§ 386.31(c) is necessary because some 

grantees have funded scholars from 

multiple grants under this program. 

While it can be difficult to ensure that 

scholarships are not duplicative, we are 

also concerned that scholars who 

receive simultaneous scholarships 

under multiple grants under this 

program would be responsible for 

service obligations for each scholarship 

received, which could, at a minimum, 

double the scholar’s service obligation. 

This proposed provision would make 

the grantee’s reporting on scholars clear 

and would also avoid confusion on the 

part of the scholar regarding the service 

obligation. 

Section 386.32 (Allowable Costs) 

Statute: Section 302(b)(4) allows 

grants to provide scholarships and 

necessary stipends and allowances. 

Current Regulations: In addition to 

allowable costs described in the statute 

as well as in the Education Department 

General Administrative Regulations, 

other allowable costs under the 

Rehabilitation Long-Term Training 

Program are described in § 386.32. In 

current regulations, these costs include 

student stipends, tuition and fees, and 

student travel in conjunction with 

training assignments. 

Proposed Regulations: We have 

clarified that allowable costs, which 

grantees may cover as part of the 

financial assistance they provide to 

scholars, may include the costs of books 

and supplies. 

Reasons: Our policy has been to 

consider ‘‘books and supplies’’ as 

allowable expenses to be covered with 

scholarship funds under this program; 

we are simply proposing to incorporate 

this policy into the regulations. 

Section 386.33 (Disbursing 

Scholarships) 

Statute: None. 

Current Regulations: Current § 386.33 

allows permanent residents of the 

Republic of the Marshall Islands, the 

Federated States of Micronesia, the 

Republic of Palau, and the 

Commonwealth of the Northern Mariana 

Islands to be eligible for scholarships. 

Proposed Regulations: In 

§ 386.33(a)(1)(ii), we have deleted 

references to the Republic of the 

Marshall Islands, Federated States of 

Micronesia, and Republic of Palau 

(referred to as the Freely Associated 

States (FAS)) as areas from which 

permanent residents can qualify for 

scholarships. We have also added 

Puerto Rico, the United States Virgin 

Islands, Guam, and American Samoa as 

areas from which permanent residents 

can qualify for scholarships. 

Reasons: Because only States are 

eligible to receive grants under title I of 

the Act, the FAS are no longer eligible 

to receive title I grants to carry out 

Rehabilitation Act programs within 

their jurisdictions. Additionally, section 

302(b)(2) of the Act requires each 


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applicant for a long-term training grant 

to include a description how the State 

rehabilitation agency designated under 

title I will participate in the project and 

to identify potential employers that 

would satisfy the service obligation 

requirements for scholars. According to 

§ 386.40(a)(6), these employers must be 

the State rehabilitation agency or have 

an arrangement with that agency to 

provide rehabilitation services. Given 

that the FAS are no longer eligible to 

receive grants to carry out programs 

under title I of the Act, there are no 

State agencies designated under title I or 

other potential employers for the service 

obligation available in the FAS. Thus, 

there is no authority in the Act to allow 

permanent residents of the FAS to 

continue to be eligible for scholarships. 

FAS permanent residents, however, 

would still be eligible for scholarships, 

in the same manner as citizens or 

permanent residents of any other 

country, as long as they demonstrate 

that they are eligible under the 

remaining provisions in § 386.33(a), i.e. 

being a lawful permanent resident of the 

United States or being in the United 

States with the intention of becoming a 

citizen or permanent resident. 

We also amend this section to include 

Puerto Rico, the United States Virgin 

Islands, Guam, and American Samoa as 

areas from which permanent residents 

may be identified as eligible for 

scholarships. These areas are considered 

‘‘States’’ as that term is defined in 

section 7 of the Act and, as a result, are 

eligible to receive grant funds under the 

title I of the Act to carry out vocational 

rehabilitation and other programs 

authorized by the Act. 

Statute: None. 

Proposed Regulations: We propose to 

renumber and reorganize current 

§ 386.33. Also, in proposed § 386.33(c), 

we would clarify that the grantee must 

document that the scholar will seek 

employment in the field of study in 

which the scholar was provided training 

or employment where it can be 

demonstrated that the field of study is 

directly relevant to the job functions 

being performed. 

Reasons: The proposed requirements 

that employment must be in the field of 

study in which the training was 

received and where the job functions 

must be directly relevant to the field of 

study in which the training was 

received merely reflect current policy. 

We believe it is advisable to clarify this 

practice through regulations to ensure a 

consistent approach among all grantees 

as they inform scholars about the 

requirements to carry out the service 

obligation for the financial assistance 

they receive. Without these 

requirements, it is not clear whether 

scholars may obtain employment that 

does not directly use the skills they 

learned while pursuing a degree or 

certificate under the Rehabilitation 

Long-Term Training Program. 

Section 386.34 (Assurances) 

Statute: Section 302(b)(5) of the Act 

requires that grantees assure that each 

scholar will enter into an agreement 

with the grantee to perform the service 

obligation or repay the costs of the 

scholarship. 

Current Regulations: Current § 386.34 

lists the assurances that a grantee 

wishing to provide scholarships must 

provide. 

Proposed Regulations: We are 

proposing the following: 

• In § 386.34(a) that, for each year 

after the initial payback agreement has 

been signed, the grantee and scholar 

must have a signed executed agreement 

containing the terms and conditions 

outlined in the section. 

• In § 386.34(c) that the scholar be 

informed annually of the total 

indebtedness. 

• In § 386.34(c) incorporating by 

reference the provisions of current 

§ 386.40 rather than repeating them here 

as in the current regulations. 

• In § 386.34(f) clarifying that the 

grantee must provide the scholar with 

certain information related to the 

scholar’s payback obligation upon the 

scholar’s exiting the program and the 

scholar must then sign a certificate 

acknowledging the receipt of such 

information. 

• In § 386.34(g)(1) that the grantee 

obtain the name of the scholar’s 

supervisor, the duties the scholar will 

perform, and whether the position is 

full- or part-time. 

• In § 386.34(j) that records be 

maintained not less than one year 

beyond the date that all scholars 

provided financial assistance under the 

grant have completed their service 

obligation or otherwise entered into 

repayment status. 

Reasons: We are proposing these 

revisions for the following reasons: 

• Proposed § 386.34(a) and (c) would 

bring this information to the forefront 

for scholars. Requiring that such 

information be provided only once, at 

the beginning of the scholarship 

support, has resulted in 

misunderstandings and disagreements 

about the nature of the obligations. 

• Proposed § 386.34(c) would be 

streamlined rather than repeating 

provisions in § 386.40 for the sake of 

efficiency. 

• Proposed § 386.34(f) would be more 

specific about the need for grantees to 

provide scholars with certain 

information upon their exit from the 

program and would emphasize the need 

for grantees to ask scholars to sign the 

certification acknowledging receipt of 

the information. We believe that the 

more that can be done to help scholars 

understand their obligations, the fewer 

instances of misunderstanding will 

occur and the more likely it will be that 

scholars will complete their service 

obligations. 

• Proposed § 386.34(g)(1) would 

assist the grantee in determining 

whether or not a scholar’s employment 

qualifies to repay the scholarship. 

• Proposed § 386.34(i) would ensure 

that the Department has sufficient 

information to properly monitor and 

administer the grant as contemplated by 

34 CFR 75.730–75.732, and it would 

ensure that sufficient time would be 

available to resolve any disputes about 

whether a scholar’s service obligation 

has been met or whether repayment 

must be initiated. 

Section 386.36 (Incomplete or 

Inaccurate Information) 

Statute: None. 

Current Regulations: The current 

regulations do not plainly describe the 

grantee’s liability for failing to provide 

accurate and complete scholar 

information to the Department. 

Proposed Regulations: We propose to 

add a new paragraph in § 386.36 

describing the consequences for a 

grantee that has failed to request or 

maintain the documentation required in 

current § 386.34 for a scholar who does 

not meet the service obligation. 

Specifically, the Department would be 

able to recover, in whole or in part, from 

the grantee the debt amount and any 

collection costs described in current 

§§ 386.40 and 386.43, if the Department: 

(a) Is unable to collect, or improperly 

collected, some or all of these amounts 

or costs from a scholar, and (b) 

determines that the grantee failed to 

provide to the Department accurate and 

complete documentation described in 

current §§ 386.34 and 386.40. 

Reasons: We propose to add this 

section to clarify the grantee’s 

responsibilities to report complete and 

accurate information on scholars and 

their payback obligations and to clarify 

the consequences associated with 

noncompliance. The authority of the 

Department to recover collection costs is 

new and may be necessary to fully 

reimburse a scholar who is eligible for 

a refund for any debt that has already 

been referred to the U.S. Treasury for 

collection. While the Department has 

always had the authority in EDGAR to 

recover the debt amount, we propose 


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this language to ensure that grantees are 

more aware of this authority. 

Section 386.40 (Requirements for 

Scholars) 

Statute: Section 302(b)(5) of the Act 

requires a scholar to perform a service 

obligation or repay the cost of the 

scholarship. 

Current Regulations: Current § 386.40 

outlines the requirements for scholars, 

although some of the payback 

requirements are described in current 

§ 386.34(c). 

Proposed Regulations: We have 

proposed to add the following: 

• § 386.40(a)(6) describing the 

payback obligations in current 

§ 386.34(c) and clarifying that the 

service obligation must be in the field of 

study the scholar pursued or where the 

field of study is directly relevant to the 

job functions performed. 

• § 386.40(b)(1) allowing scholars 

who are in multi-year programs of study 

and who are currently employed or are 

seeking employment to start satisfying 

the service obligation after completion 

of at least one year of study. This 

provision would also prohibit scholars 

who do not complete the program of 

study from performing the service 

obligation, except for scholars who 

complete at least one year of a multiyear program. We request specific 

comments on this proposal. 

• § 386.40(b)(2) making it clear that 

an internship, practicum, or any other 

work-related requirement necessary to 

complete the educational program 

would not be considered qualifying 

employment. 

• § 386.40(c) clarifying that, if the 

scholar is pursuing coursework on a 

part-time basis, the service obligation 

for these part-time courses would be 

based on the full-time equivalent total of 

actual academic years of training 

received. 

• § 386.40(a)(9) requiring the scholar 

to provide all information necessary to 

monitor the service obligation. 

• § 386.40(d) making a scholar in 

repayment status responsible for any 

costs assessed in the collection process 

if the scholar does not provide 

information on his or her employment 

status or if the scholar fails to provide 

other information that the grantee 

requests, even if the information is 

subsequently provided. 

Reasons: We are proposing these 

revisions for the following reasons: 

• Proposed § 386.40(a)(6)(i) would 

reflect current policy. We believe it is 

advisable to clarify this practice through 

regulations to assure a consistent 

approach among all grantees as they 

inform scholars about the requirements 

to repay the financial assistance they 

receive. 

• Proposed § 386.40(b)(1) would 

implement RSA’s policy that, for multiyear courses of study, scholars who 

have completed at least one year are 

likely to have made substantial gains in 

their knowledge and skills such that 

they would be able to provide improved 

vocational rehabilitation services. RSA 

believes that these scholars should be 

given the opportunity to start satisfying 

the service obligation even before they 

have completed the program of study. 

Except for scholars who complete at 

least one year of a multi-year program, 

this provision would also prohibit all 

scholars who do not complete the 

program of study from being eligible to 

perform the service obligation. These 

scholars would be responsible for 

repayment of the scholarship under 

§ 386.43. This provision reflects the 

longstanding policy of the Office of 

Special Education Programs in its 

personnel preparation program. 

• Proposed § 386.40(b)(2) would 

clearly make ineligible for the service 

obligation any employment required in 

order to complete the course of study. 

• Proposed § 386.40(c) would ensure 

consistency among all grantees. We 

believe this is a fair interpretation of the 

payback requirement, which states that 

a scholar must repay two years of 

service for every one year of financial 

assistance received. This would clarify, 

for example, that a half-time scholar, 

who may require four years rather than 

the traditional two years to complete a 

master’s degree program, would not 

have to complete eight years of service 

for the same program that a full-time 

scholar would only have to complete 

four years of service. This 

accommodation is appropriate, 

particularly in light of the fact that 

many more scholars are part-time, and 

they are often non-traditional students 

who have been in the workforce for a 

number of years and cannot afford to 

drop out of employment to pursue fulltime study. 

• Proposed §§ 386.40(a)(9) and 

386.40(d) would require scholars to 

remain in contact with the grantee and 

to provide the necessary information 

about their repayment status. It is our 

hope that having such requirements in 

regulations would reinforce the 

importance of these scholar 

responsibilities. In particular, we are 

concerned that a scholar may be placed 

in repayment status only because the 

scholar failed to provide complete and 

accurate information. If accurate 

information is later submitted that 

allows the scholar to receive a refund of 

debt payments made, that scholar 

potentially would not receive a full 

refund if collection costs have been 

incurred by the Federal government. 

Making scholars who receive a refund 

aware that collection costs could be 

their responsibility would help achieve 

better compliance by scholars in 

providing complete and accurate 

information. 

Section 386.41 (Granting Deferrals and 

Exceptions) 

Statute: Section 302(b)(5)(A)(ii) of the 

Act states that RSA may by regulation 

provide for repayment exceptions and 

deferrals. 

Current Regulations: In current 

§ 386.41, the provisions for obtaining an 

exception or deferral of the payback 

obligation are described. 

Proposed Regulations: In proposed 

§ 386.41(a), we clarify the basis for an 

exception based on disability. The 

scholar would have to have a disability 

that either (1) was not diagnosed at the 

time the scholar entered the program, or 

(2) has worsened since the scholar 

entered the program. 

We are also proposing some changes 

to current § 386.41(b), which are the 

provisions applying to deferrals to the 

service obligation. In proposed 

§ 386.41(b)(1), we would restrict a 

deferral for a scholar engaging in a fulltime course of study at an institution of 

higher education to scholars who are 

pursuing degrees or certificates in the 

field of rehabilitation. In proposed 

§ 386.41(b)(2), we would allow for a 

deferral of up to four years for a scholar 

who is on active duty with the Armed 

Forces rather than the three years in the 

current regulations. We also propose to 

add a new § 386.41(c) to address 

exceptional circumstances when a 

deferral might reasonably be granted. 

We give as examples the care of a 

disabled spouse, partner, or child or the 

circumstance when a scholar would 

have to accompany a spouse or partner 

who is on active duty in the Armed 

Forces. 

Reasons: We do not believe 

exceptions should be granted simply 

because scholars have a disability. 

When individuals with a disability enter 

a program of study, there needs to be an 

expectation on their part that they will 

complete the service obligation. 

Therefore, granting an exception purely 

on the basis of an existing disability 

would not be warranted. However, if 

scholars are diagnosed with a disability 

after enrolling in the program or if a 

disability worsens, then an exception on 

the basis of these circumstances might 

be warranted. 

With regard to the reasons for 

deferral, we believe restricting a deferral 


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on the basis of full-time study in the 

field of rehabilitation is more 

appropriate than the current basis for a 

deferral, which is that the scholar is 

pursuing full-time study at an 

institution of higher education. If the 

scholar is pursuing a course of study 

unrelated to rehabilitation, it is less 

likely that he or she will then seek 

qualifying employment in the field of 

rehabilitation; therefore, it would make 

more sense for the scholar to begin the 

financial repayment process. Increasing 

the possible deferral period for a scholar 

who is on active duty from three to four 

years, as we propose in § 386.41(b)(2), 

seems reasonable for a scholar who has 

two two-year tours of duty. We also 

recognize that we cannot anticipate all 

of the exceptional circumstances that 

may warrant a deferral. Therefore, in 

§ 386.41(c), we have added a broader 

authority to grant deferrals and we 

propose a few examples of 

circumstances that might warrant such 

a deferral. These are illustrative and are 

not meant to be all-inclusive. Each 

request for a deferral will be considered 

on a case-by-case basis. 

Section 386.42 (Applying for Deferrals 

and Exceptions) 

Statute: None. 

Current Regulations: Current § 386.42 

describes the documentation that a 

scholar must provide to substantiate a 

deferral or exception. 

Proposed Regulations: In 

§ 386.42(b)(1) and (3), we are proposing 

more specific requirements for the 

documentation to substantiate a deferral 

or an exception based on disability. This 

documentation would apply to a scholar 

who has a permanent or temporary 

disability or to the disability of a 

spouse, partner, or child for whom the 

scholar is providing care, which would 

require the scholar to seek a deferral. In 

all of these cases, the scholar would 

have to provide a letter from a physician 

or other medical professional on official 

stationery that describes the diagnosis 

and prognosis for the disability and, in 

the case of a request for an exception, 

explains that the scholar cannot work 

with accommodations. The 

documentation would have to be less 

than three months old. 

Reasons: It is important that any 

deferral or exception be carefully 

documented so that the Department’s 

decisions regarding these matters are 

well-founded. We have encountered 

numerous instances in which the 

documentation provided by scholars 

was ambiguous or insufficient. To that 

end, we propose to include greater 

specificity, particularly around a 

deferral or exception based on a 

disability. 

Innovative Rehabilitation Training 

Program, 34 CFR Part 387 

Background 

This program is designed to develop 

new and improved methods of training 

for rehabilitation personnel so that State 

vocational rehabilitation agencies may 

more effectively deliver rehabilitation 

services. The Department last published 

regulations for this program, codified in 

part 387, on March 6, 1997 (62 FR 

10398). 

Summary of Proposed Changes 

We are proposing a new name for this 

program—Innovative Rehabilitation 

Training—that better describes the 

nature of activities to be funded under 

this authority. 

We are proposing changes to 

incorporate new statutory language in 

sections 301 and 302 of WIOA and to 

better describe the broad authority 

available to the Department in these 

regulations. 

We propose to clarify that the 

Secretary may award grants to develop 

new and improved methods of training 

not only for the rehabilitation personnel 

of State vocational rehabilitation 

agencies but also for rehabilitation 

personnel of other public or non-profit 

rehabilitation service agencies or 

organizations. 

Finally, we propose to address new 

statutory language in section 101(a)(7) of 

the Act related to rehabilitation 

personnel having a 21st century 

understanding of the evolving labor 

force and the needs of individuals with 

disabilities so they can more effectively 

provide vocational rehabilitation 

services to individuals with disabilities. 

Significant Proposed Regulations 

We organize our discussion by 

subject. 

Title 

Statute: None. 

Current Regulations: The current part 

387 is called ‘‘Experimental and 

Innovative Training.’’ 

Proposed Regulations: We propose to 

change the name of the part to 

‘‘Innovative Rehabilitation Training.’’ 

Reason: The new title would better 

describe the activities funded under this 

program. 

Training for Personnel of Public or NonProfit Rehabilitation Service Agencies or 

Organizations 

Statute: Section 302 of the Act 

authorizes the Commissioner to provide 

grants and contracts to assist in training 

rehabilitation personnel who provide 

vocational, medical, social, and 

psychological rehabilitation services, 

and who provide other services to 

individuals with disabilities under the 

Act. 

Current Regulations: The current 

§ 387.1(b) states that this program is 

designed to develop new and improved 

methods of training for rehabilitation 

personnel so that State vocational 

rehabilitation agencies may more 

effectively deliver rehabilitation 

services. Current regulations do not 

address whether personnel from other 

public or non-profit rehabilitation 

service agencies or organizations may 

also receive the training. 

Proposed Regulations: We propose to 

amend § 387.1(b) to include personnel 

of other public or non-profit 

rehabilitation service agencies or 

organizations as recipients of the 

training. 

Reasons: The change is necessary for 

the regulation to be consistent with the 

statute, which authorizes the 

development of new and improved 

methods of training for rehabilitation 

personnel including personnel from 

State vocational rehabilitation agencies 

as well as from other public or nonprofit rehabilitation service agencies or 

organizations. 

21st Century Understanding 

Statute: Section 101(a)(7) of the Act, 

as amended by WIOA, requires that the 

State vocational rehabilitation agencies 

ensure that their personnel have a 21st 

century understanding of the evolving 

labor force and the needs of individuals 

with disabilities. 

Current Regulations: Although the 

current § 387.1 states that this program 

is designed to develop new types of 

training programs and new and 

improved methods of training for State 

rehabilitation agencies, it does not 

specifically address these new statutory 

requirements. 

Proposed Regulations: We propose to 

amend § 387.1 to state that the program 

is designed to develop new innovative 

training programs for vocational 

rehabilitation professionals and 

paraprofessionals to have a 21st century 

understanding of the evolving labor 

force and the needs of individuals with 

disabilities so they can more effectively 

provide vocational rehabilitation 

services to individuals with disabilities. 

Reasons: The proposed change would 

align innovative rehabilitation training 

projects awarded under 34 CFR part 387 

with the needs of the field as described 

in WIOA. We anticipate that this change 

will have a positive effect on the 

Comprehensive System of Personnel 


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Development among State vocational 

rehabilitation agencies. 

Rehabilitation Short-Term Training 

Program, 34 CFR Part 390 

Background 

This program is designed for the 

support of special seminars, institutes, 

workshops, and other short-term 

courses in technical matters relating to 

the vocational, medical, social, and 

psychological rehabilitation programs, 

independent living services programs, 

and client assistance programs. The 

Department last published regulations 

for this program on March 6, 1997 (62 

FR 10398). 

Summary of Proposed Changes 

We are proposing to add an additional 

selection criterion for grant 

competitions under this program— 

evidence of training needs as identified 

through training needs assessment. 

Significant Proposed Regulations 

Statute: Section 302(b) authorizes the 

Commissioner to provide grants and 

contracts to eligible entities to train 

rehabilitation personnel who provide 

rehabilitation services to individuals 

with disabilities. Section 12(a)(2) 

specifically authorizes the 

Commissioner to provide short-term 

training and technical instructions to 

rehabilitation personnel. Section 12(c) 

authorizes the Secretary to promulgate 

such regulations as are considered 

appropriate to carry out the 

Commissioner’s duties under the Act. 

Current Regulations: Current 

§ 390.30(b) sets out selection criteria 

that may be used by the Secretary to 

evaluate application but it does not 

specifically state that the Secretary will 

review each application for evidence of 

the training needs of rehabilitation 

personnel. 

Proposed Regulations: We propose to 

add a new paragraph (b) to current 

§ 390.30 to state that the Secretary 

would review each application for 

evidence of training needs as identified 

through training needs assessment 

conducted by the applicant, designated 

State agencies, designated State units, or 

any other public or private nonprofit 

rehabilitation service agencies or 

organizations that provide rehabilitation 

services and other services authorized 

under the Act and whose personnel will 

receive the training. 

Reasons: The proposed change is 

necessary to ensure that the proposed 

short-term training projects address the 

training needs of the rehabilitation 

personnel of designated State agencies 

or designated State units or any other 

public and private nonprofit 

rehabilitation service agencies or 

organizations whose personnel will 

receive the training. This proposed 

criterion would expand and improve the 

Rehabilitation Short-Term Training 

program and further the purpose of the 

Act. 

Training of Interpreters for Individuals 

Who Are Deaf or Hard of Hearing and 

Individuals Who are Deaf-Blind, 34 

CFR Part 396 

Background 

This program is designed to establish 

interpreter training programs or to 

provide financial assistance for ongoing 

interpreter programs to train a sufficient 

number of qualified interpreters to meet 

the communication needs of individuals 

who are deaf or hard of hearing and 

individuals who are deaf-blind. The 

Department last published regulations 

for this program on March 6, 1997 (62 

FR 10398). 

Summary of Proposed Changes 

We are proposing changes to conform 

to section 302 of the Act, which adds 

individuals who are hard of hearing to 

the individuals served by this program. 

We are also proposing changes to ensure 

that the program accurately reflects the 

training needs of qualified interpreters 

in order to effectively meet the 

communication needs of individuals 

who are deaf or hard of hearing and 

individuals who are deaf-blind. 

We propose to amend the definition 

of a qualified professional in order to 

ensure that the highest level of 

competency is incorporated into the 

training of interpreters. 

We propose to add selection criteria 

for the program to encourage evidencebased and promising practices. 

We propose to add priorities for 

increasing the skill level of interpreters 

in unserved or underserved geographic 

areas, existing programs that have 

demonstrated their ability to raise the 

skill level of interpreters to meet the 

highest standards approved by 

certifying associations, and specialized 

topical training. 

Significant Proposed Regulations 

We organize our discussion by subject 

and section. 

Changes That Affect Part 396 in Its 

Entirety 

Hard of Hearing 

Statute: Section 302(f) of the Act 

authorizes the training of qualified 

interpreters to meet the needs of 

individuals who are deaf or hard of 

hearing and individuals who are deafblind. 

Current Regulations: 34 CFR part 396 

does not address the training of 

interpreters for individuals who are 

hard of hearing. 

Proposed Regulations: We propose to 

address the training of interpreters for 

individuals who are hard of hearing, as 

relevant, throughout part 396. 

Reasons: This would conform part 

396 to the Act. 

Skilled Interpreters 

Statute: Section 302(f) of the Act uses 

the term ‘‘qualified interpreters.’’ 

Current Regulations: 34 CFR part 396 

uses the term ‘‘skilled interpreters.’’ 

Proposed Regulations: Proposed 

§ 396.1 would replace the term ‘‘skilled 

interpreters’’ with the term ‘‘qualified 

interpreters.’’ 

Reasons: Although this change in 

terminology from ‘‘skilled interpreters’’ 

to ‘‘qualified interpreters’’ does not 

convey a substantive change in 

meaning, this change would conform 34 

CFR part 396 to section 302(f) of the 

Act. 

An Individual Who Is Deaf or Hard of 

Hearing 

Statute: Section 302(f) of the Act 

authorizes training of qualified 

interpreters to meet the communications 

needs of individuals who are deaf or 

hard of hearing, and individuals who 

are deaf-blind. 

Current Regulations: 34 CFR part 396 

does not contain a definition for an 

‘‘individual who is hard of hearing.’’ 

Proposed Regulations: We propose to 

add the following definition in 

§ 396.4(c): ‘‘an individual who has a 

hearing impairment such that, in order 

to facilitate communication, the 

individual depends upon visual modes, 

such as sign language, speech reading, 

and gestures, or reading and writing, in 

addition to any other auditory 

information.’’ 

Reasons: This program is to serve 

individuals who are hard of hearing in 

addition to individuals who are deaf 

and individuals who are deaf-blind. We 

believe it is important to propose a 

definition of ‘‘individual who is hard of 

hearing’’ to clarify for grantees what 

population is meant by this term. We 

used the definition of ‘‘individual who 

is deaf’’ as a starting point and made 

some modifications to this definition as 

appropriate. We emphasized the 

communication needs of this 

population, as this program is 

specifically meant to address the 

communication needs of individuals 

who are deaf, hard of hearing, or deafblind. We particularly encourage the 


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public to comment on the 

appropriateness of this definition in the 

context of this program. 

Other Definitions 

Statute: None. 

Current Regulations: Current 

§ 396.4(c) defines the term ‘‘Existing 

program that has demonstrated its 

capacity for providing interpreter 

training service.’’ 

Proposed Regulations: We propose to 

expand this definition to include 

evidence-based practices in the training 

of interpreters and promising practices 

when evidence-based practices are not 

available. 

Reasons: The Department believes 

that providing further context for the 

expectations regarding the curricula of 

interpreter training programs will 

provide greater guidance to grantees and 

the public. We also recognize that there 

are a number of promising practices 

available, several of which were 

developed through grants funded by this 

program and therefore should be 

utilized when evidence-based practices 

are not available. 

Statute: None. 

Current Regulations: Current 

§ 396.4(c) defines the term ‘‘Qualified 

professional’’. 

Proposed Regulations: We propose to 

amend the definition consistent with 

the final priority published in the 

Federal Register on September 1, 1999 

(64 FR 48068) as follows: ‘‘to mean an 

individual who has (1) met existing 

certification or evaluation requirements 

equivalent to the highest standards 

approved by certifying associations; or 

(2) successfully demonstrated 

interpreting skills that reflect the 

highest standards approved by 

certifying associations through prior 

work experience.’’ 

Reasons: We want to ensure that the 

highest level of competency is 

incorporated into the training of 

interpreters in interpreter training 

programs funded by RSA. Since 2000, 

the Department has funded national and 

regional interpreter education centers 

that train qualified interpreters to meet 

the competencies equivalent to the 

highest standards approved by 

certifying associations. Thus, this 

standard has been in effect for 15 years, 

and we propose to change the definition 

to reflect this reality. 

Statute: None. 

Current Regulations: Current 

§ 396.4(c) does not contain a definition 

for the term ‘‘related agency.’’ 

Proposed Regulations: We propose to 

add the definition of ‘‘related agency’’ 

from § 386.4. That section defines the 

term as an American Indian 

rehabilitation program or any Federal, 

State, or local agency; non-profit 

organization; or professional 

corporation or practice group that 

provides services to individuals with 

disabilities on behalf of a designated 

State agency. 

Reasons: This is the current definition 

used in part 386 and would clarify what 

the Department means when it refers to 

the term ‘‘related agency.’’ Adopting 

this definition of ‘‘related agency’’ 

would assure consistency between the 

Rehabilitation Long-Term Training 

Program and the program for Training of 

Interpreters for Individuals Who Are 

Deaf or Hard of Hearing and Individuals 

Who Are Deaf-Blind. 

Subpart A—General § 396.1 

Statute: None. 

Current Regulations: Current 

§ 396.1(a) states that grantees will 

receive grant funds, in part, to train 

manual, tactile, oral, and cued speech 

interpreters. 

Proposed Regulations: We propose to 

expand this description to read 

‘‘training interpreters to effectively 

interpret and transliterate between 

spoken language and sign language, and 

to transliterate between spoken language 

and oral or tactile modes of 

communication.’’ 

Reasons: This would clarify the type 

of training offered by this program and 

ensure the training of interpreters 

accurately reflects the needs of 

individuals who are deaf or hard of 

hearing and individuals who are deafblind. 

Selection Criteria, § 396.31 

Statute: None. 

Current Regulations: Current 

§ 396.31(a) provides additional selection 

criteria to evaluate an application based 

upon demonstrated relationships with 

service providers and consumers. 

Proposed Regulations: We propose to 

amend this section to refer to an 

additional factor: The curriculum for the 

training of interpreters includes 

evidence-based practices, and promising 

practices when evidence-based practices 

are not available. 

Reasons: The new factor would 

ensure consistency with the changes to 

definitions we have proposed in 

§ 396.4(c)(2) to encourage and support 

the use of evidence-based and 

promising practices. 

Statute: None. 

Current Regulations: Current § 396.31 

discusses additional selection criteria 

the Secretary uses to evaluate an 

application. Current § 396.31(a) 

provides a selection criterion for 

demonstrated relationships with service 

providers and consumers. 

Proposed Regulations: We propose to 

amend § 396.31(a) to cover 

demonstrated relationships with State 

Vocational Rehabilitation agencies and 

their related agencies and consumers. 

Reasons: This would clarify the goal 

and expectation of the program, which 

is to meet the needs of deaf consumers 

of the State Vocational Rehabilitation 

agency and their related agencies. 

Priorities, § 396.33 

Statute: Section 302(f) of the Act 

requires the Department, in making 

awards under this part, to give priority 

to public or private nonprofit agencies 

or organizations with existing programs 

that have demonstrated their capacity 

for providing interpreter training 

services. 

Current Regulations: Current 

§ 396.33(a) contains the statutory 

priority in section 302(f). 

Proposed Regulations: We propose 

adding § 396.33(b), which would allow 

the Secretary to give priority 

consideration when announcing 

competitions for awards in the 

following three areas: (1) Increasing the 

skill level of interpreters for individuals 

who are deaf or hard of hearing and 

individuals who are deaf-blind in 

unserved or underserved geographic 

areas; (2) Existing programs that have 

demonstrated their capacity for 

providing interpreter training services 

that raise the skill level of interpreters 

in order to meet the highest standards 

approved by certifying associations; and 

(3) Specialized topical training based on 

the communication needs of individuals 

who are deaf or hard of hearing and 

individuals who are deaf-blind. 

Reasons: These priorities reflect the 

types of projects that the Department 

intends to focus on in the future, and we 

propose them here for future use. 

Matching Requirements, § 396.34 

Statute: Section 302(f) of the Act 

requires the Department to pay only part 

of the costs for projects under this 

program. 

Current Regulations: Part 396 does not 

contain a match requirement. 

Proposed Regulations: We propose to 

add a new § 396.34 that would include 

a requirement that a grantee must 

contribute to the cost of a project under 

this program in an amount satisfactory 

to the Secretary. The part of the costs to 

be borne by the grantee would be 

determined by the Secretary at the time 

of the grant award. 

Reasons: This would conform part 

396 to the statutory provision that this 

program have a matching requirement. 


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Proposed Changes, Regulations To Be 

Removed 

We next discuss those regulations that 

we propose to remove. We discuss first 

the regulations for programs WIOA 

deauthorized, then regulations that are 

superseded or unnecessary. 

Removal of Regulations Required by 

WIOA 

Statute: WIOA eliminated the 

following programs: The Projects with 

Industry program (title VI, part A of 

WIOA), The State Vocational 

Rehabilitation Unit In-Service Training 

program (section 441(b) of WIOA), the 

Migrants and Seasonal Farmworkers 

program, (section 441(a) of WIOA) and 

the Recreation Programs for Individuals 

with Disabilities program (section 441(a) 

of WIOA). 

Current Regulations: The regulations 

governing the Projects with Industry 

program are found at part 379. The 

regulations governing the State 

Vocational Rehabilitation Unit InService Training program are found at 

part 388. The regulations governing the 

Migrants and Seasonal Farmworkers 

program are found at § 369.1(b)(3) and 

§ 369.2(c). The regulations governing the 

Recreation Programs for Individuals 

with Disabilities program are found at 

§ 369.1(b)(5) and § 369.2(d). 

Proposed Regulations: We propose to 

remove parts 379, 388, and 369. 

Reasons: The removal of the 

regulations at parts 379, 388, and 369 is 

required by the Act as amended by 

WIOA. We propose to delay the 

effective date for the removal of parts 

388 and 369 so that the Department can 

complete administration of the last 

grants under these programs. 

The Balance of Part 369 

Statute: None. 

Current Regulations: All of part 369 

other than §§ 369.1(b)(3), (5), and (6), 

369.2(c), (d), and (e). 

Proposed regulations: The Secretary 

proposes to remove the balance of part 

369. 

Reasons: Beyond the Migrants and 

Seasonal Farmworkers Program, 

Recreation Programs for Individuals 

with Disabilities, and the Projects With 

Industry Program, part 369 implements 

three other kinds of vocational 

rehabilitation (VR) service projects: VR 

service projects for American Indians 

with disabilities, special projects and 

demonstrations for providing VR 

services to individuals with disabilities, 

and special projects and demonstrations 

for providing transitional rehabilitation 

services to youth with disabilities. 

We propose to incorporate into part 

371 those regulations in part 369 that 

apply to the American Indian 

Vocational Rehabilitation Services 

program, under which the governing 

bodies of Indian tribes, and consortia of 

those governing bodies, provide VR 

services for American Indians with 

disabilities. Keeping these regulations in 

part 369 is unnecessarily duplicative. 

As for the special projects for VR 

services and transition services, the 

Department has not used the regulations 

in part 369 for these projects in some 

time. The regulations were superseded 

by the more specific regulations in part 

373, which the Department adopted on 

December 11, 2000, after the 1998 

amendments to the Act. 

However, we also propose to make 

this removal effective on September 30, 

2016, the last day of fiscal year (FY) 

2016, when the Department’s 

administration of the last grants under 

the Migrants and Seasonal Farmworkers 

Program will be complete. 

Removal of Regulations Not Required 

by WIOA 

Statute: None. 

Current Regulations: 34 CFR part 376 

governs the Special Projects and 

Demonstrations for Providing 

Transitional Rehabilitation Services to 

Youth with Disabilities program. 34 CFR 

part 377 governs the Demonstration 

Projects to Increase Client Choice 

program. 

Proposed Regulations: The Secretary 

proposes to remove parts 376 and 377. 

Reasons: Parts 376 and 377 are 

outdated. The Department has not used 

these parts for more than 15 years. They 

have been superseded by the more 

specific regulations in part 373, which 

the Department adopted on December 

11, 2000, after the 1998 amendments to 

the Act. 

Rehabilitation Continuing Education 

Programs, 34 CFR Part 389 

Statute: None. 

Current Regulations: 34 CFR part 389 

govern the Rehabilitation Continuing 

Education programs. 

Proposed Regulations: The Secretary 

proposes to remove part 389. 

Reasons: Part 389 is duplicative and 

outdated. The Department adopted this 

short part on December 30, 1980 (45 FR 

86385) and amended it on September 

23, 1985 (50 FR 38631), May 13, 1988 

(53 FR 17147), and March 6, 1997 (62 

FR 10405). As drafted, part 389 is very 

prescriptive. It allows the Department 

only to create and support regional 

training centers to provide continuing 

education and technical assistance to 

currently employed VR professionals 

throughout the country. 

Over time, however, the RSA’s focus 

has shifted away from providing 

continuing education to concentrating 

on technical assistance and training. In 

January 2014, for example, President 

Obama issued a memorandum to the 

Secretaries of Labor, Commerce, and 

Education directing them to take action 

to address job-driven training for the 

nation’s workers. 

The memorandum instructed the 

Secretaries to make Federal workforce 

and training programs and policies more 

focused on imparting skills with jobmarket value, more easily accessed by 

employers and job seekers, and more 

accountable for producing positive 

employment and earnings outcomes for 

the people they serve. The 

memorandum also set out training 

principles for the Departments to follow 

and incorporate, such as promoting 

engagement with industry, employers, 

employer associations, and worker 

representatives to identify the skills and 

supports workers need. 

As a result, in FY 2014, RSA ran a 

competition to establish a job-driven 

vocational rehabilitation technical 

assistance center that would provide 

training and technical assistance to 

State VR agencies to upgrade the 

knowledge and skills of the personnel 

and providers so that they are better 

able to build effective partnerships with 

employers and assist VR consumers in 

obtaining the skills needed in today’s 

labor market. 

To the extent that RSA does want to 

fund continuing-education projects, part 

389 is not necessary. RSA can do so 

through a number of other regulations, 

such as part 387 (innovative 

rehabilitation training programs) or part 

390 (rehabilitation short-term training 

programs), and it can do so more 

flexibly, i.e. without the requirement of 

establishing regional centers. 

Executive Orders 12866 and 13563 

Regulatory Impact Analysis 

Executive Order 12866 

Under Executive Order 12866, the 

Secretary must determine whether this 

regulatory action is ‘‘significant’’ and, 

therefore, subject to the requirements of 

the Executive order and subject to 

review by the Office of Management and 

Budget (OMB). Section 3(f) of Executive 

Order 12866 defines a ‘‘significant 

regulatory action’’ as an action likely to 

result in a rule that may— 

(1) Have an annual effect on the 

economy of $100 million or more, or 

adversely affect a sector of the economy, 

productivity, competition, jobs, the 

environment, public health or safety, or 

State, local, or tribal governments or 


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communities in a material way (also 

referred to as an ‘‘economically 

significant’’ rule); 

(2) Create serious inconsistency or 

otherwise interfere with an action taken 

or planned by another agency; 

(3) Materially alter the budgetary 

impacts of entitlement grants, user fees, 

or loan programs or the rights and 

obligations of recipients thereof; or 

(4) Raise novel legal or policy issues 

arising out of legal mandates, the 

President’s priorities, or the principles 

stated in the Executive order. 

This proposed regulatory action is not 

a significant regulatory action subject to 

review by OMB under section 3(f) of 

Executive Order 12866. 

We have also reviewed these 

regulations under Executive Order 

13563, which supplements and 

explicitly reaffirms the principles, 

structures, and definitions governing 

regulatory review established in 

Executive Order 12866. To the extent 

permitted by law, Executive Order 

13563 requires that an agency— 

(1) Propose or adopt regulations only 

upon a reasoned determination that 

their benefits justify their costs 

(recognizing that some benefits and 

costs are difficult to quantify); 

(2) Tailor its regulations to impose the 

least burden on society, consistent with 

obtaining regulatory objectives and 

taking into account—among other things 

and to the extent practicable—the costs 

of cumulative regulations; 

(3) In choosing among alternative 

regulatory approaches, select those 

approaches that maximize net benefits 

(including potential economic, 

environmental, public health and safety, 

and other advantages; distributive 

impacts; and equity); 

(4) To the extent feasible, specify 

performance objectives, rather than the 

behavior or manner of compliance a 

regulated entity must adopt; and 

(5) Identify and assess available 

alternatives to direct regulation, 

including economic incentives—such as 

user fees or marketable permits—to 

encourage the desired behavior, or 

provide information that enables the 

public to make choices. 

Executive Order 13563 also requires 

an agency ‘‘to use the best available 

techniques to quantify anticipated 

present and future benefits and costs as 

accurately as possible.’’ The Office of 

Information and Regulatory Affairs of 

OMB has emphasized that these 

techniques may include ‘‘identifying 

changing future compliance costs that 

might result from technological 

innovation or anticipated behavioral 

changes.’’ 

We have also determined that this 

regulatory action would not unduly 

interfere with State, local, and tribal 

governments in the exercise of their 

governmental functions. 

In accordance with both Executive 

orders, the Department has assessed the 

potential costs and benefits, both 

quantitative and qualitative, of this 

regulatory action. The potential costs 

associated with this regulatory action 

are those resulting from statutory 

requirements and those we have 

determined as necessary for 

administering the Department’s 

programs and activities. In assessing the 

potential costs and benefits—both 

quantitative and qualitative—of these 

proposed regulations, we have 

determined that the benefits would 

justify the costs. 

Part 367—Independent Living Services 

for Older Individuals Who Are Blind 

In general, unless expressly noted 

below, we do not estimate that changes 

to this part will result in any additional 

costs to grantees. 

Subpart B—Training and Technical 

Assistance 

New Subpart B of Part 367 

implements the WIOA amendments 

requiring the Department to reserve 

from 1.8 to 2 percent of appropriated 

funds for training and technical 

assistance to grantees. While these setasides will result in a reduction in 

funding available to grantees, we believe 

that these training and technical 

assistance projects will increase the 

efficiency of the program and provide 

substantial benefits to both grantees and 

individuals with disabilities. 

To ensure that grantees receive the 

maximum amount of funds available for 

the provision of services to individuals, 

we would provide funding for training 

and technical assistance at the 

minimum allowable level of 1.8 percent. 

Prior to this proposed regulation, 

grantees have been largely responsible 

for meeting the training needs of their 

program staff. This may have 

contributed to duplicative training and 

technical assistance efforts across 

grantees that could have easily been 

coordinated nationally. The 

coordination of these efforts by RSA 

would generate efficiencies across the 

entire program, thus providing more 

benefits to grantees than they would 

have realized if the funds had been 

directly provided to them. 

Based on the FY 2015 authorized 

appropriation of $33,317,000 for the OIB 

program under WIOA, the estimated setaside would be $599,706, based upon 

the minimum percentage established by 

the Act. Therefore, if grantees were to 

receive no benefit from the training and 

technical assistance supported by the 

Department, grantees would experience 

a loss in benefits of $599,706. However, 

since the Department will sponsor 

training and technical assistance 

services directly for this group in the 

amount of $599,706, we expect there to 

be no net loss of benefits. Additionally, 

as noted above, the efficiencies realized 

by this centralization of training and 

technical assistance efforts may actually 

result in a net increase in benefits for 

grantees. 

Subpart C—What are the application 

requirements under this part? 

Under this Subpart, we have removed 

the requirement for States to seek to 

incorporate into the State Plan for 

Independent Living (SPIL) any new 

methods and approaches relating to 

independent living services for older 

individuals who are blind. 

Incorporating this information into the 

SPIL required minimal time 

(approximately 15 minutes) every three 

years upon submission of the SPIL; 

therefore, any savings realized from this 

change would be negligible. 

Subpart E—How does the Secretary 

award formula grants? 

Under Subpart E, we have clarified 

that OIB grantees are to inform the 

Secretary 45 days prior to the end of the 

fiscal year that funds would be available 

for reallotment. We do not believe that 

this requirement will generate 

additional costs to grantees, as the 

change only provides a timeline for an 

action that is already occurring and does 

not, therefore, generate any new burden 

on grantees. 

Part 370—Client Assistance Program 

WIOA requires that the proposed setaside for training and technical 

assistance for CAP take effect in any 

fiscal year in which the appropriation 

equals or exceeds $14,000,000. To 

ensure that grantees receive the 

maximum amount of funds available for 

the provision of services to individuals, 

we would provide funding for training 

and technical assistance at the 

minimum allowable level of 1.8 percent. 

In FY 2015, the appropriation for CAP 

was $13,000,000, requiring a 7.7 percent 

increase in the overall appropriation 

before the 1.8 percent set aside becomes 

effective. Because the set-aside is not 

triggered under the statute until grantees 

realize a substantial increase in benefits 

under this program, the set-aside will 

not have a substantial impact on the 

activities of grantees, a $1,000,000 

increase in the overall appropriation 


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will result in a set-aside of $252,000 

which would be used to provide 

support to grantees. Additionally, as 

noted above in the discussion of costs 

and benefits associated with Part 367, 

we believe that the consolidation of 

training and technical assistance 

activities at the national level will 

ultimately yield net benefits to grantees 

greater than if those activities were 

coordinated locally. 

Part 371—American Indian Vocational 

Rehabilitation Services Program 

New Subpart B of Part 371 

implements the WIOA amendments 

requiring the Department to reserve 

from 1.8 to 2 percent of appropriated 

funds for training and technical 

assistance to grantees. While these setasides will result in a reduction in 

funding available to grantees, we believe 

that these training and technical 

assistance projects will increase the 

efficiency of the program and provide 

substantial benefits to both grantees and 

individuals with disabilities. 

Based on the FY 2014 amount set 

aside by the Department for the AIVRS 

program (approximately $37,201,000), 

the estimated set-aside would have been 

$669,618. As noted above, since these 

funds are being used to provide services 

and support to grantees, we do not 

anticipate any net loss of benefit. 

However, if efficiencies are realized due 

to centralized coordination of these 

activities, grantees may experience a net 

gain in benefits. 

Part 373—Rehabilitation National 

Activities Program 

We do not anticipate any changes to 

this section resulting in increased 

burden or costs for grantees. 

Part 381—Protection and Advocacy for 

Individual Rights Program 

A proposed amendment to § 381.20 

(current § 381.22) clarifies in paragraph 

(a)(1) that when the PAIR appropriation 

equals or exceeds $5,500,000, requiring 

the Secretary to set aside between 1.8 

and 2.2 percent of funds for the 

provision of training and technical 

assistance, the funding mechanism for 

the provision of training and technical 

assistance may include a grant, contract, 

or cooperative agreement. Previously, 

while the Department had authority to 

provide training and technical 

assistance to grantees, we historically 

opted to ensure that grantees receive the 

maximum amount of funds available for 

the provision of services to individuals, 

by funding training and technical 

assistance at the minimum allowable 

level of 1.8 percent. This revision would 

have no impact on PAIR grantees since 

previous amendments to the Act have 

allowed for the provision of training and 

technical assistance. 

Additionally, the PAIR appropriation 

has been equal to, or greater than, 

$5,500,000 for at least 15 fiscal years (in 

FY 2015, the appropriation was 

$17,650,000). This proposed 

amendment simply provides the 

Secretary with additional flexibility in 

the funding mechanism through which 

training and technical assistance is 

provided. 

Part 385—Rehabilitation Training 

We do not anticipate any changes to 

this section resulting in increased 

burden or costs for grantees. 

Part 386—Rehabilitation Long-Term 

Training 

Except as detailed below, we do not 

anticipate changes to this section to 

result in increased burden or costs for 

grantees. 

Section 386.31 (Funding Requirement) 

In § 386.31 we are proposing that 

program grantees dedicate 65 percent to 

scholarships rather than 75 percent as 

required by current regulations. This 

requirement would apply to both the 

federal award and the non-federal share. 

This change acknowledges the fact that 

grantees incur costs in administering 

these programs, particularly in terms of 

staff time needed to track scholar 

progress in completing their program of 

study and their service obligation. This 

decrease in the cost to grantees brought 

about by proposed changes in § 386.31 

balances some of the increased costs 

created by proposed changes made in 

other sections of the regulations. In FY 

2014, the Department made 

approximately $17,075,000 in new or 

continuation awards under the 

Rehabilitation Long-Term Training 

program. Assuming all grantees made 

the minimum match of 10% of the 

project cost, the reduction in the 

scholarship requirement would free up 

approximately $1,897,000 in project 

funding to be used for activities other 

than scholarship support. While this 

does not represent any additional 

funding for grantees, it does represent 

additional flexibility provided by the 

regulation. 

Section 386.33 (Disbursing 

Scholarships) 

Changes to this section require 

grantees to document that scholars will 

seek employment in the field of study 

in which the scholar was provided 

training or employment where it can be 

demonstrated that the field of study is 

directly relevant to the job functions 

being performed. Currently, grantees 

obtain sufficient documentation of other 

requirements that we do not believe this 

new requirement will represent a 

substantial burden on grantees. 

However, if we assume that obtaining 

this additional documentation would 

take, on average, 10 minutes per scholar, 

and using a wage rate of $17.69 (the 

mean hourly wage for office and 

administrative support staff at colleges, 

universities, and professional schools) 

and the 1,367 scholars receiving support 

in FY 2014, we estimate this provision 

would cost $4,030.37. 

Section 386.34 (Assurances) 

Changes to this section require 

grantees to annually obtain signed 

executed agreements with scholars 

containing the terms and conditions 

outlined in this section. It has been the 

Department’s policy to encourage 

annual updating of scholar information; 

these regulations simply formalize this 

policy. As such, we estimate that these 

changes to the regulation will have little 

actual impact on grantees or scholars. 

However, if grantees were previously 

only collecting these agreements once 

per scholar rather than every year that 

support is received, there would be 

additional costs. Of all scholars reported 

in qualifying employment in FY 2014, 

88.4% received support for more than 

one year. If we assumed that this change 

required an additional half hour of time 

each year beyond the first year of 

support to update their information 

with their program, and using an 

average wage rate of $17.69, we estimate 

an additional cost of $10,641 (given that 

we estimate that 1,203 of the 1,367 

scholars receiving support in FY 2014 

were multi-year scholars). We 

emphasize that this is an overestimate, 

as this change simply conforms the 

regulations to current practice. 

Section 386.40 (Requirements for 

Scholars) 

In § 386.40(a)(6), we are proposing 

language that clarifies the type of 

employment a scholar must obtain to 

complete the service obligation in order 

to ensure that the funds used for 

scholarships will benefit individuals 

with disabilities served through the 

state vocational rehabilitation program 

and related agencies. This change 

largely reflects current policy and 

should not result in an increased burden 

on grantees or scholars. Changes to 

§ 386.40(b) provides clarification around 

when scholars may begin qualifying 

employment while § 386.40(c) clarifies 

that scholars who pursued coursework 

on a part-time basis should have their 

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time equivalent basis. As noted above, 

88.4% of the scholars completing their 

service obligations in FY 2014 received 

support for more than one year and 

would have been, therefore, eligible to 

benefit from these changes. We estimate 

that this provision, had it been in effect 

when those scholars received support, 

would have reduced the net service 

obligations by 9,049 years. Given the 

average annual scholarship value for 

this group of $4,287, we estimate a 

potential savings of $38,792,902. 

Finally, changes in § 386.40(d) make a 

scholar in repayment status responsible 

for any collection costs if they do not 

provide appropriate information to the 

grantee in a timely manner. In FY 2014, 

the Department referred 44 scholars for 

repayment totaling $486,471. Assuming 

that collection costs total 3% of the 

balance of the repayment, we estimate 

total collection costs of $14,594. If 5% 

of these scholars were inappropriately 

referred to repayment, this additional 

requirement could save scholars 

$24,324 by avoiding such inappropriate 

referrals. 

Sections 386.41 (Granting Deferrals and 

Exceptions) and 386.42 (Applying for 

Deferrals and Exceptions) 

In 386.41 and 386.42, we are 

proposing stricter regulations around 

exceptions and deferrals, particularly 

for individuals with disabilities, in 

order to assure that individuals who 

benefit from scholarships funded by this 

program are more likely to complete 

their service obligation. While these 

changes may have impacts on the 

specific decisions made by scholars, 

they will not have a financial impact on 

the costs or benefits for grantees, and 

will likely increase the benefits to 

individuals with disabilities served by 

State VR agencies and related agencies 

by ensuring that training is aligned with 

practice and that a greater percentage of 

scholars complete their service 

obligations rather than just repaying the 

cost of their scholarships. 

Part 387—Innovative Rehabilitation 

Training Program 

We do not anticipate any changes to 

this section resulting in increased 

burden or costs for grantees. 

Part 390—Rehabilitation Short-Term 

Training Program 

Changes to § 390.30 adds a selection 

criterion that the Secretary would 

review each application for evidence of 

training needs as identified through 

training needs assessments. While 

conducting a training needs assessment 

prior to application may result in 

increased costs for applicants, because 

the regulation simply adds this as one 

selection criterion among several and 

allows applicants to use needs 

assessments conducted by other entities, 

we do not anticipate that applicants will 

realize any actual increased costs 

associated with this provision. 

Part 396—Training of Interpreters for 

Individuals Who Are Deaf or Hard of 

Hearing and Individuals Who Are DeafBlind 

Changes to § 396.34 require grantees 

to provide matching funds to support 

projects in an amount determined by the 

Secretary at the time of the grant award. 

While this matching requirement did 

not previously exist in the regulations, 

it was a statutory requirement and, 

while the Department did not require 

grantees to document the match, we do 

not believe that any prior grantees did 

not contribute any funds to the project, 

either in cash or in kind. As such, we 

do not believe this provision will result 

in any increased costs for grantees. 

Clarity of the Regulations 

Executive Order 12866 and the 

Presidential memorandum ‘‘Plain 

Language in Government Writing’’ 

require each agency to write regulations 

that are easy to understand. 

The Secretary invites comments on 

how to make these proposed regulations 

easier to understand, including answers 

to questions such as the following: 

• Are the requirements in the 

proposed regulations clearly stated? 

• Do the proposed regulations contain 

technical terms or other wording that 

interferes with their clarity? 

• Does the format of the proposed 

regulations (grouping and order of 

sections, use of headings, paragraphing, 

etc.) aid or reduce their clarity? 

• Would the proposed regulations be 

easier to understand if we divided them 

into more (but shorter) sections? (A 

‘‘section’’ is preceded by the symbol 

‘‘§ ’’ and a numbered heading; for 

example, § 370.1 What is the Client 

Assistance Program (CAP)? 

• Could the description of the 

proposed regulations in the 

SUPPLEMENTARY INFORMATION section of 

this preamble be more helpful in 

making the proposed regulations easier 

to understand? If so, how? 

• What else could we do to make the 

proposed regulations easier to 

understand? 

To send any comments that concern 

how the Department could make these 

proposed regulations easier to 

understand, see the instructions in the 

ADDRESSES section. 

Regulatory Flexibility Act Certification 

The Secretary certifies that these 

proposed regulations would not have a 

significant economic impact on a 

substantial number of small entities. 

Independent Living for Older 

Individuals Who Are Blind 

There are 56 OIB grantees funded 

under section 752 of the Act, all of 

which are State agencies. States and 

State agencies are not defined as ‘‘small 

entities’’ in the Regulatory Flexibility 

Act. Furthermore, the proposed 

regulations would not have a significant 

economic impact on these State or State 

agencies because the proposed 

regulations would not impose any 

additional substantive regulatory 

burdens or require additional Federal 

supervision. 

Client Assistance Program 

Due to the revisions to the Act 

pursuant to WIOA, there are 57 

designated CAP agencies funded under 

section 112 of the Act, of which 19 are 

configured within a State agency and all 

but one remaining designated CAP 

agencies are predominantly private, 

nonprofit organizations. States and State 

agencies are not defined as ‘‘small 

entities’’ in the Regulatory Flexibility 

Act. The remaining designated CAP 

agencies are ‘‘small entities’’ that would 

be affected by these proposed 

regulations. The proposed regulations 

would not have a significant economic 

impact on the small entities affected 

because the proposed regulations would 

not impose any new substantive 

regulatory burdens or require more 

Federal supervision than is required 

under current regulations. 

Protection and Advocacy of Individual 

Rights Program 

Due to the revisions to the Act 

pursuant to WIA, there are 57 PAIR 

grantees funded under section 509 of 

the Act, of which a majority are private, 

nonprofit organizations that are 

considered ‘‘small entities’’ under the 

Regulatory Flexibility Act. The 

proposed regulations would not have a 

significant economic impact on these 

small entities because the proposed 

regulations would not impose any new 

substantive regulatory burdens or 

require more Federal supervision than is 

required under current regulations. 

American Indian Vocational 

Rehabilitation Services Program 

Eligible applicants under this program 

are the governing bodies of Indian 

tribes, consortia of such governing 

bodies, or tribal organizations 

established and controlled by the 


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governing bodies of Indian tribes, all 

located on Federal and State 

reservations. These entities are not 

considered ‘‘small entities’’ under the 

Regulatory Flexibility Act. 

Special Demonstration Programs 

Eligible entities are State vocational 

rehabilitation agencies, community 

rehabilitation programs, Indian tribes or 

tribal organizations, public or non-profit 

agencies and organizations, institutions 

of higher education, and certain forprofit organizations. States, State 

agencies, Indian tribes, and tribal 

organizations are not ‘‘small entities’’ 

under the Regulatory Flexibility Act. 

The community rehabilitation programs, 

public or non-profit agencies and 

organizations, institutions of higher 

education, and certain for-profit 

organizations are considered ‘‘small 

entities.’’ The proposed regulations 

would not have a significant economic 

impact on a significant number of these 

small entities because the proposed 

regulations would not impose any new 

substantive regulatory burdens or 

require more Federal supervision than is 

required under the current regulations. 

Vocational Rehabilitation Training 

Programs 

For all rehabilitation programs other 

than training of interpreters for 

individuals who are deaf, hard of 

hearing, and deaf-blind, eligible entities 

are States, public or nonprofit agencies, 

Indian tribes, and institutions of higher 

education. For this latter program, 

eligible entities are public and private 

non-profit agencies and organizations 

and institutions of higher education. 

States and Indian tribes are not ‘‘small 

entities’’ under the Regulatory 

Flexibility Act. The public or nonprofit 

agencies and institutions of higher 

education are considered ‘‘small 

entities.’’ The proposed regulations 

would not have a significant economic 

impact on a significant number of these 

small entities because the proposed 

regulations would not impose any new 

substantive regulatory burdens or 

require more Federal supervision than is 

required under the current regulations. 

Paperwork Reduction Act of 1995 

As part of its continuing effort to 

reduce paperwork and respondent 

burden, the Department provides the 

general public and Federal agencies 

with an opportunity to comment on 

proposed and continuing collections of 

information in accordance with the 

Paperwork Reduction Act of 1995 (PRA) 

(44 U.S.C. 3506(c)(2)(A)). This helps 

ensure that: The public understands the 

Department’s collection instructions, 

respondents can provide the requested 

data in the desired format, reporting 

burden (time and financial resources) is 

minimized, collection instruments are 

clearly understood, and the Department 

can properly assess the impact of 

collection requirements on respondents. 

The following sections contain 

information collection requirements: 

• Sections 367.23, 367.30, and 367.31 

of the Independent Living Services for 

Older Individuals Who Are Blind (OIB) 

program; 

• Sections 370.20 and 370.44 of the 

Client Assistance Program (CAP); 

• Section 373.21 of the Rehabilitation 

National Activities program; 

• Sections 381.10 and 381.32 of the 

Protection and Advocacy of Individual 

Rights (PAIR) program; 

• Sections 385.20 and 385.45 of the 

Rehabilitation Training program; 

• Sections 386.21 and 386.36 of the 

Rehabilitation Long-Term Training 

program; 

• Section 387.3 of the Innovative 

Rehabilitation Training program; 

• Section 390.3 of the Rehabilitation 

Short-Term Training program; and 

• Section 396.20 of the Training of 

Interpreters for Individuals Who Are 

Deaf or Hard of Hearing and Individuals 

Who Are Deaf-Blind program. 

These sections do not cause 

substantive changes to the information 

collection requirements listed below. 

Under the PRA the Department has 

submitted a copy of these sections to 

OMB for its review. 

A Federal agency may not conduct or 

sponsor a collection of information 

unless OMB approves the collection 

under the PRA and the corresponding 

information collection instrument 

displays a currently valid OMB control 

number. Notwithstanding any other 

provision of law, no person is required 

to comply with, or is subject to penalty 

for failure to comply with, a collection 

of information if the collection 

instrument does not display a currently 

valid OMB control number. 

In the final regulations we will 

display the OMB control numbers 

(1820–0608 and 1820–0660 (OIB), 1820– 

0520 and 1820–0528 (CAP), 1820–0625 

and 1820–0627 (PAIR), 1820–0018 (all 

other programs) and 1820–0617 

(Rehabilitation Long-Term Training)) 

assigned by OMB to any information 

collection requirement in this NPRM 

and adopted in the final regulations. 

Sections 367.23, 367.30 and 367.31, OIB 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collection under 1820– 

0608. These proposed requirements do 

not change the current OMB-approved 

annual burden of 336 annual burden 

hours with 56 respondents and annual 

costs of $4,256.00. 

Sections 370.20 and 370.44, CAP 

Regulations proposed under these 

sections do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0520 and 1820–0528. These proposed 

requirements minimally change the 

current OMB-approved annual burden 

of 9 hours to 9.16 hours due to the 

addition of one respondent to the 

current 56 respondents. The current 

annual costs of $441.00 would increase 

to an estimated $449.00 under 1820– 

0520. For the OMB-approved data 

collection under 1820–0528, these 

proposed requirements minimally 

change the annual burden hours from 

896 hours with 56 respondents and 

annual costs of $4,616.00 to 912 burden 

hours with 57 respondents and annual 

costs of approximately $4,698.00. 

Section 373.21 of the Rehabilitation 

National Activities Program 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0018. These proposed requirements do 

not change the current OMB-approved 

annual burden of 4,000 annual burden 

hours with 100 respondents and annual 

costs of $1,120.00. 

Sections 381.10 and 381.32, PAIR 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0625 and 1820–0627. These proposed 

requirements do not change the current 

OMB-approved annual burden of 9 

hours with 57 respondents and annual 

costs of $228.00 under 1820–0625. 

These proposed requirements do not 

change the current OMB-approved 

annual burden of 912 hours with 57 

respondents and annual costs of 

$4,240.00 under 1820–0627. 

Sections 385.20 and 385.45 of the 

Rehabilitation Training Program 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0018. These proposed requirements do 

not change the current OMB-approved 

annual burden of 4,000 annual burden 

hours with 100 respondents and annual 

costs of $1,120.00. 


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Sections 386.21 and 386.36 of the 

Rehabilitation Long-Term Training 

Program 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0018 and 1820–0617. These proposed 

requirements do not change the current 

OMB-approved annual burden of 4,000 

annual burden hours with 100 

respondents and annual costs of 

$1,120.00 under 1820–0018. These 

proposed requirements do not change 

the current OMB-approved annual 

burden of 350 hours with 350 

respondents and annual costs of 

$17,500.00 under 1820–0617. 

Section 387.3 of the Innovative 

Rehabilitation Training Program 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0018. These proposed requirements do 

not change the current OMB-approved 

annual burden of 4,000 annual burden 

hours with 100 respondents and annual 

costs of $1,120.00. 

Section 390.3 of the Rehabilitation 

Short-Term Training Program 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0018. These proposed requirements do 

not change the current OMB-approved 

annual burden of 4,000 annual burden 

hours with 100 respondents and annual 

costs of $1,120.00. 

Section 396.20 of the Training of 

Interpreters for Individuals Who Are 

Deaf or Hard of Hearing and Individuals 

Who Are Deaf-Blind Program 

Regulations proposed under this 

section do not cause substantive 

changes to the active and OMBapproved data collections under 1820– 

0018. These proposed requirements do 

not change the current OMB-approved 

annual burden of 4,000 annual burden 

hours with 100 respondents and annual 

costs of $1,120.00. 

Section 371.13 of the American Indian 

Vocational Rehabilitation Services 

Program 

Finally, for the American Indian 

Vocational Rehabilitation Services 

program, section 423(c) of WIOA 

requires that between 1.8–2 percent of 

funds appropriated for this program be 

reserved to provide training and 

technical assistance to AIVRS grantees 

and that the Commissioner conduct a 

survey of the governing bodies of Indian 

Tribes currently receiving grants under 

the AIVRS program regarding their 

training and technical assistance needs 

in order to determine priorities for the 

training and technical assistance 

provider. 

The Department has amended the 

current information collection package 

(OMB 1820–0655) that was approved by 

OMB through September 30, 2017. This 

amendment requires governing bodies 

of existing 121 AIVRS projects to 

respond to a questionnaire that lists 41 

potential topics. Grantees are required 

to identify up to 10 topics they consider 

to be essential to improving their overall 

performance. These responses are 

analyzed by RSA Project Officers and 

shared with the provider for use in 

developing its training and technical 

assistance program. We estimate that it 

will take each program less than 10 

minutes to complete this questionnaire. 

We believe these amendments to the 

previous information data collection 

package places a negligible burden on 

the AIVRS grantees, and such burden is 

offset by the anticipated benefit of 

having properly targeted training and 

technical assistance made available to 

the projects. 

Intergovernmental Review 

These programs are subject to 

Executive Order 12372 and the 

regulations in 34 CFR part 79. One of 

the objectives of the Executive order is 

to foster an intergovernmental 

partnership and a strengthened 

federalism. The Executive order relies 

on processes developed by State and 

local governments for coordination and 

review of proposed Federal financial 

assistance. 

This document provides early 

notification of our specific plans and 

actions for these programs. 

Assessment of Educational Impact 

In accordance with section 411 of the 

General Education Provisions Act, 20 

U.S.C. 1221e–4, the Secretary 

particularly requests comments on 

whether these proposed regulations 

would require transmission of 

information that any other agency or 

authority of the United States gathers or 

makes available. 

Federalism 

Executive Order 13132 requires us to 

ensure meaningful and timely input by 

State and local elected officials in the 

development of regulatory policies that 

have federalism implications. 

‘‘Federalism implications’’ means 

substantial direct effects on the States, 

on the relationship between the 

National Government and the States, or 

on the distribution of power and 

responsibilities among the various 

levels of government. The proposed 

regulations in this document may have 

federalism implications. We encourage 

State and local elected officials to 

review and provide comments on these 

proposed regulations. 

Accessible Format: Individuals with 

disabilities can obtain this document in 

an accessible format (e.g., braille, large 

print, audiotape, or compact disc) on 

request to the person listed under FOR

FURTHER INFORMATION CONTACT. 

Electronic Access to This Document: 

The official version of this document is 

the document published in the Federal 

Register. Free Internet access to the 

official edition of the Federal Register 

and the Code of Federal Regulations is 

available via the Federal Digital System 

at: www.gpo.gov/fdsys. At this site you 

can view this document, as well as all 

other documents of this Department 

published in the Federal Register, in 

text or Adobe Portable Document 

Format (PDF). To use PDF you must 

have Adobe Acrobat Reader, which is 

available free at the site. 

You may also access documents of the 

Department published in the Federal 

Register by using the article search 

feature at: www.federalregister.gov. 

Specifically, through the advanced 

search feature at this site, you can limit 

your search to documents published by 

the Department. 

(Catalog of Federal Domestic Assistance 

Numbers: 84.240A Protection and Advocacy 

of Individual Rights; 84.161A Client 

Assistance Program; 84.177B Independent 

Living Services for Older Individuals Who 

Are Blind; 84.250J American Indian 

Vocational Rehabilitation Services; 84.128G 

Vocational Rehabilitation Service Projects for 

Migratory Agricultural Workers and Seasonal 

Farmworkers with Disabilities Program; 

84.234 Projects With Industry; 84.128J 

Recreational Programs; and 84.265 State 

Vocational Rehabilitation Services Unit In 

Service Training) 

List of Subjects 

34 CFR Part 367 

Aged, Blind, Grant programseducation, Grant programs-social 

programs, Reporting and recordkeeping 

requirements, Vocational rehabilitation. 

34 CFR Part 369 

Grant programs-social programs, 

Reporting and recordkeeping 

requirements, Vocational rehabilitation. 

34 CFR Part 370 

Administrative practice and 

procedure, Grant programs-social 

programs, Reporting and recordkeeping 

requirements, Vocational rehabilitation. 


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Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 21015 

34 CFR Part 371 

Grant programs-Indians, Grant 

programs-social programs, Indians, 

Vocational rehabilitation. 

34 CFR Part 373 

Grant programs-education, Vocational 

rehabilitation. 

34 CFR Part 376 

Grant programs-social programs, 

Reporting and recordkeeping 

requirements, Vocational rehabilitation, 

Youth. 

34 CFR Part 377 

Grant programs-social programs, 

Reporting and recordkeeping 

requirements, Vocational rehabilitation. 

34 CFR Part 379 

Business and industry, Grant 

programs-social programs, Reporting 

and recordkeeping requirements, 

Vocational rehabilitation. 

34 CFR Part 381 

Grant programs-social programs, 

Reporting and recordkeeping 

requirements, Vocational rehabilitation. 

34 CFR Part 385 

Grant programs-education, Reporting 

and recordkeeping requirements, 

Vocational rehabilitation. 

34 CFR Part 386 

Grant programs-education, Reporting 

and recordkeeping requirements, 

Vocational rehabilitation. 

34 CFR Part 387 

Grant programs-education, Reporting 

and recordkeeping requirements, 

Vocational rehabilitation. 

34 CFR Part 388 

Grant programs-education, Reporting 

and recordkeeping requirements, 

Vocational rehabilitation. 

34 CFR Part 389 

Grant programs-education, Reporting 

and recordkeeping requirements, 

Vocational rehabilitation. 

34 CFR Part 390 

Grant programs-education, Reporting 

and recordkeeping requirements, 

Vocational rehabilitation. 

34 CFR Part 396 

Education of individuals with 

disabilities, Grant programs-education, 

Individuals with disabilities, Reporting 

and recordkeeping requirements. 

Dated: March 6, 2015. 

Arne Duncan, 

Secretary of Education. 

For the reasons discussed in the 

preamble, under the authority of section 

503(f) of the Workforce Innovation and 

Opportunity Act (WIOA) (Pub. L. 113– 

128) and section 12(c) of the 

Rehabilitation Act of 1973, as amended 

by WIOA (29 U.S.C. 709(c)), the 

Secretary of Education proposes to 

amend chapter III of title 34 of the Code 

of Federal Regulations as follows: 

■ 1. Part 367 is revised to read as 

follows: 

PART 367—INDEPENDENT LIVING 

SERVICES FOR OLDER INDIVIDUALS 

WHO ARE BLIND 

Subpart A—General 

Sec. 

367.1 What is the Independent Living 

Services for Older Individuals Who Are 

Blind program? 

367.2 Who is eligible for an award? 

367.3 What activities may the Secretary 

fund? 

367.4 What regulations apply? 

367.5 What definitions apply? 

Subpart B—Training and Technical 

Assistance 

367.20 What are the requirements for 

funding training and technical assistance 

under this chapter? 

367.21 How does the Secretary use these 

funds to provide training and technical 

assistance? 

367.22 How does the Secretary make an 

award? 

367.23 How does the Secretary determine 

funding priorities? 

367.24 How does the Secretary evaluate an 

application? 

Subpart C—What Are the Application 

Requirements Under this Part? 

367.30 How does a designated State agency 

(DSA) apply for an award? 

367.31 What assurances must a DSA 

include in its application? 

Subpart D—How Does the Secretary Award 

Discretionary Grants? 

367.40 Under what circumstances does the 

Secretary award discretionary grants to 

States? 

367.41 How does the Secretary evaluate an 

application for a discretionary grant? 

Subpart E—How Does the Secretary Award 

Formula Grants? 

367.50 Under what circumstances does the 

Secretary award formula grants to States? 

367.51 How are allotments made? 

367.52 How does the Secretary reallot funds 

under this program? 

Subpart F—What Conditions Must be Met 

After an Award? 

367.60 When may a DSA make subawards 

or contracts? 

367.61 What matching requirements apply? 

367.62 What requirements apply if the 

State’s non-Federal share is in cash? 

367.63 What requirements apply if the 

State’s non-Federal share is in kind? 

367.64 What is the prohibition against a 

State’s condition of an award of a subaward or contract based on cash or inkind contributions? 

367.65 What is program income and how 

may it be used? 

367.66 What requirements apply to the 

obligation of Federal funds and program 

income? 

367.67 What notice must be given about the 

Client Assistance Program (CAP)? 

367.68 What are the special requirements 

pertaining to the protection, use, and 

release of personal information? 

367.69 What access to records must be 

provided? 

367.70 What records must be maintained? 

Authority: Sections 751–753 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796j–796l, unless otherwise noted. 

Subpart A—General 

§ 367.1 What is the Independent Living 

Services for Older Individuals Who Are 

Blind program? 

This program supports projects that— 

(a) Provide any of the independent 

living (IL) services to older individuals 

who are blind that are described in 

§ 367.3(b); 

(b) Conduct activities that will 

improve or expand services for these 

individuals; and 

(c) Conduct activities to help improve 

public understanding of the problems of 

these individuals. 

(Authority: Section 752 of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 796k(a) 

and (d)) 

§ 367.2 Who is eligible for an award? 

Any designated State agency (DSA) is 

eligible for an award under this program 

if the DSA— 

(a) Is authorized to provide 

rehabilitation services to individuals 

who are blind; and 

(b) Submits to and obtains approval 

from the Secretary of an application that 

meets the requirements of section 752(h) 

of the Act and §§ 367.30–367.31. 

(Authority: Section 752(a)(2) and 752(h) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 796k(a)(2) and (h)) 

§ 367.3 What activities may the Secretary 

fund? 

(a) The DSA may use funds awarded 

under this part for the activities 

described in § 367.1 and paragraph (b) 

of this section. 

(b) For purposes of § 367.1(a), IL 

services for older individuals who are 

blind include— 

(1) Services to help correct blindness, 

such as— 

(i) Outreach services; 


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(ii) Visual screening; 

(iii) Surgical or therapeutic treatment 

to prevent, correct, or modify disabling 

eye conditions; and 

(iv) Hospitalization related to these 

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) IL skills training, information and 

referral services, peer counseling, 

individual advocacy training, 

facilitating the transition from nursing 

homes and other institutions to home 

and community-based residences with 

the requisite supports and services, and 

providing assistance to older 

individuals who are blind who are at 

risk of entering institutions so that the 

individuals may remain in the 

community; and 

(8) Other IL services, as defined in 

§ 367.5. 

(Authority: Section 752(d) and (e) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k (d) and (e)) 

§ 367.4 What regulations apply? 

The following regulations apply to the 

Independent Living Services for Older 

Individuals Who Are Blind program: 

(a) The Education Department General 

Administrative Regulations (EDGAR) as 

follows: 

(1) 34 CFR part 75 (Direct Grant 

Programs), with respect to grants under 

subpart B and D. 

(2) 34 CFR part 76 (StateAdministered Programs), with respect to 

grants under subpart E. 

(3) 34 CFR part 77 (Definitions That 

Apply to Department Regulations). 

(4) 34 CFR part 79 (Intergovernmental 

Review of Department of Education 

Programs and Activities). 

(5) 34 CFR part 81 (General Education 

Provisions Act—Enforcement). 

(6) 34 CFR part 82 (New Restrictions 

on Lobbying). 

(7) 2 CFR part 180 (OMB Guidelines 

to Agencies on Debarment and 

Suspension (Nonprocurement)), as 

adopted at 2 CFR part 3485. 

(8) 2 CFR part 200 (Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards), as adopted at 2 CFR 

part 3474. 

(b) The regulations in this part 367. 

(Authority: Sections 12(c) and 752 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 796k) 

§ 367.5 What definitions apply? 

(a) The definitions of terms used in 

this part that are included in the 

regulations identified in § 367.4 as 

applying to this program. 

(b) In addition, the following 

definitions also apply to this part: 

(1) Act means the Rehabilitation Act, 

as amended by WIOA. 

(2) Advocacy means pleading an 

individual’s cause or speaking or 

writing in support of an individual. To 

the extent permitted by State law or the 

rules of the agency before which an 

individual is appearing, a non-lawyer 

may engage in advocacy on behalf of 

another individual. Advocacy may— 

(i) Involve representing an 

individual— 

(A) Before private entities or 

organizations, government agencies 

(whether State, local, or Federal), or in 

a court of law (whether State or 

Federal); or 

(B) In negotiations or mediation, in 

formal or informal administrative 

proceedings before government agencies 

(whether State, local, or Federal), or in 

legal proceedings in a court of law; and 

(ii) Be on behalf of— 

(A) A single individual, in which case 

it is individual advocacy; 

(B) A group or class of individuals, in 

which case it is systems (or systemic) 

advocacy; or 

(C) Oneself, in which case it is self 

advocacy. 

(3) Attendant care means a personal 

assistance service provided to an 

individual with significant disabilities 

in performing a variety of tasks required 

to meet essential personal needs in areas 

such as bathing, communicating, 

cooking, dressing, eating, homemaking, 

toileting, and transportation. 

(4) Contract means a legal instrument 

by which RSA in subpart B or the DSA 

receiving a grant under this part 

purchases property or services needed 

to carry out the program under this Part. 

The term as used in this part does not 

include a legal instrument, even if RSA 

or the DSA considers it a contract, when 

the substance of the transaction meets 

the definition of a Federal award or 

subaward. 

(Authority: 20 U.S.C. 1221e–3) 

(5) Designated State Agency means 

the agency described in section 

101(a)(2)(A)(i) of the Rehabilitation Act 

as the sole State agency authorized to 

provide rehabilitation services to 

individuals who are blind. 

(6) Independent living services for 

older individuals who are blind means 

those services listed in § 367.3(b). 

(7) Legally authorized advocate or 

representative means an individual who 

is authorized under State law to act or 

advocate on behalf of another 

individual. Under certain 

circumstances, State law permits only 

an attorney, legal guardian, or 

individual with a power of attorney to 

act or advocate on behalf of another 

individual. In other circumstances, State 

law may permit other individuals to act 

or advocate on behalf of another 

individual. 

(8) Minority group means Alaskan 

Natives, American Indians, Asian 

Americans, Blacks (African Americans), 

Hispanic Americans, Native Hawaiians, 

and Pacific Islanders. 

(9) Older individual who is blind 

means an individual age fifty-five or 

older whose severe visual impairment 

makes competitive employment 

extremely difficult to obtain but for 

whom IL goals are feasible. 

(10) Other IL services include: 

(i) Counseling services, including 

psychological, psychotherapeutic, and 

related services; 

(ii) Services related to securing 

housing or shelter, including services 

related to community group living, that 

are supportive of the purposes of the 

Act, and adaptive housing services, 

including appropriate accommodations 

to and modifications of any space used 

to serve, or to be occupied by, older 

individuals who are blind; 

(iii) Rehabilitation technology; 

(iv) Services and training for older 

individuals who are blind who also 

have cognitive and sensory disabilities, 

including life skills training and 

interpreter; 

(v) Personal assistance services, 

including attendant care and the 

training of personnel providing these 

services; 

(vi) Surveys, directories, and other 

activities to identify appropriate 

housing, recreation opportunities, and 

accessible transportation, and other 

support services; 

(vii) Consumer information programs 

on rehabilitation and IL services 

available under the Act, especially for 

minorities and other older individuals 

who are blind who have traditionally 

been unserved or underserved by 

programs under the Act; 

(viii) Education and training 

necessary for living in a community and 

participating in community activities; 

(ix) Supported living; 


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(x) Transportation, including referral 

and assistance for transportation; 

(xi) Physical rehabilitation; 

(xii) Therapeutic treatment; 

(xiii) Provision of needed prostheses 

and other appliances and devices; 

(xiv) Individual and group social and 

recreational services; 

(xv) 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 older 

individuals who are blind; 

(xvi) Appropriate preventive services 

to decrease the need of older 

individuals who are blind who are 

assisted under the Act for similar 

services in the future; 

(xvii) Community awareness 

programs to enhance the understanding 

and integration into society of older 

individuals who are blind; and 

(xviii) Any other services that may be 

necessary to improve the ability of an 

older individual who is blind to 

function, continue functioning, or move 

toward functioning independently in 

the family or community or to continue 

in employment and that are not 

inconsistent with any other provisions 

of the Act. 

(11) Peer relationships mean 

relationships involving mutual support 

and assistance among individuals with 

significant disabilities who are actively 

pursuing IL goals. 

(12) Peer role models means 

individuals with significant disabilities 

whose achievements can serve as a 

positive example for other older 

individuals who are blind. 

(13) Personal assistance services 

means a range of IL services, provided 

by one or more persons, designed to 

assist an older individual who is blind 

to perform daily living activities on or 

off the job that the individual would 

typically perform if the individual was 

not blind. These IL services must be 

designed to increase the individual’s 

control in life and ability to perform 

everyday activities on or off the job. 

(14) Service provider means— 

(i) the DSA that directly provides 

services authorized under § 367.3; or 

(ii) any other entity that receives a 

subaward or contract from the DSA to 

provide services authorized under 

§ 367.3. 

(15) Significant disability means a 

severe physical, mental, cognitive, or 

sensory impairment that substantially 

limits an individual’s ability to function 

independently in the family or 

community or to obtain, maintain, or 

advance in employment. 

(16) State means, except where 

otherwise specified in the Act, 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, the 

Commonwealth of the Northern Mariana 

Islands. 

(17) Subaward a grant or a 

cooperative agreement provided by the 

DSA to a subrecipient for the 

subrecipient to carry out part of the 

Federal award received by the DSA 

under this part. It does not include 

payments to a contractor or payments to 

an individual that is a beneficiary of a 

program funded under this part. A 

subaward may be provided through any 

form of legal agreement, including an 

agreement that the DSA considers a 

contract. 

(Authority: 20 U.S.C. 1221e–3) 

(18) Subrecipient a non-Federal entity 

that receives a subaward from the DSA 

to carry out all or part of the program 

funded under this part; but does not 

include an individual that is a 

beneficiary of such program. A 

subrecipient may also be a recipient of 

other Federal awards directly from a 

Federal awarding agency. 

(Authority: 20 U.S.C. 1221e–3) 

(19) Transportation means travel and 

related expenses that are necessary to 

enable an older individual who is blind 

to benefit from another IL service and 

travel and related expenses for an 

attendant or aide if the services of that 

attendant or aide are necessary to enable 

an older individual who is blind to 

benefit from that IL service. 

(20) Unserved and underserved 

groups or populations, with respect to 

groups or populations of older 

individuals who are blind in a State, 

include, but are not limited to, groups 

or populations of older individuals who 

are blind who— 

(i) Have cognitive and sensory 

impairments; 

(ii) Are members of racial and ethnic 

minority groups; 

(iii) Live in rural areas; or 

(iv) Have been identified by the DSA 

as unserved or underserved. 

(Authority: Unless otherwise noted, Section 

7 of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 705) 

Subpart B—Training and Technical 

Assistance 

§ 367.20 What are the requirements for 

funding training and technical assistance 

under this chapter? 

For any fiscal year, beginning with 

fiscal year 2015, the Secretary shall first 

reserve not less than 1.8 percent and not 

more than 2 percent of funds 

appropriated and made available to 

carry out this chapter to provide 

training and technical assistance to 

DSAs, or other providers of independent 

living services for older individuals who 

are blind, that are funded under this 

chapter for such fiscal year. 

(Authority: Section 751A(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796j–1(a)) 

§ 367.21 How does the Secretary use these 

funds to provide training and technical 

assistance? 

(a) The Secretary uses these funds to 

provide training and technical 

assistance, either directly or through 

grants, contracts, or cooperative 

agreements with entities that have the 

capacity to provide technical assistance 

and training in the provision of 

independent living services for older 

individuals who are blind. 

(b) An entity receiving assistance in 

accordance with paragraph (a) of this 

section shall provide training and 

technical assistance to DSAs or other 

service providers to assist them in 

improving the operation and 

performance of programs and services 

for older individuals who are blind 

resulting in their enhanced 

independence and self-sufficiency. 

(Authority: Section 751A(a) and (c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796j–1(a) and (c)) 

§ 367.22 How does the Secretary make an 

award? 

(a) To be eligible to receive a grant or 

enter into a contract or cooperative 

agreement under section 751A of the 

Act and this subpart, an applicant shall 

submit an application to the Secretary 

containing a proposal to provide 

training and technical assistance to 

DSAs or other service providers of IL 

services to older individuals who are 

blind and any additional information at 

the time and in the manner that the 

Secretary may require. 

(b) The Secretary shall provide for 

peer review of applications by panels 

that include persons who are not 

Federal or State government employees 

and who have experience in the 

provision of services to older 

individuals who are blind. 

(Authority: Section 751A(a) and (c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796j–1(a) and (c)) 

§ 367.23 How does the Secretary 

determine funding priorities? 

The Secretary shall conduct a survey 

of DSAs that receive grants under 

section 752 regarding training and 

technical assistance needs in order to 

inform funding priorities for such 

training and technical assistance. 


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(Authority: Section 751A(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796j–1(b)) 

§ 367.24 How does the Secretary evaluate 

an application? 

(a) The Secretary evaluates each 

application for a grant, cooperative 

agreement or contract under this subpart 

on the basis of the selection criteria 

chosen from the general selection 

criteria found in EDGAR regulations at 

34 CFR 75.210. 

(b) If the Secretary uses a contract to 

award funds under this subpart, the 

application process will be conducted 

and the subsequent award will be made 

in accordance with 34 CFR part 75. 

(Authority: Section 751A of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796j–1(b), 20 U.S.C. 1221e–3, and 

3474) 

Subpart C—What Are the Application 

Requirements Under This Part? 

§ 367.30 How does a designated State 

agency (DSA) apply for an award? 

To receive a grant under section 

752(h) or a reallotment grant under 

section 752(i)(4) of the Act, a DSA must 

submit to and obtain approval from the 

Secretary of an application for 

assistance under this program at the 

time, in the form and manner, and 

containing the agreements, assurances, 

and information, that the Secretary 

determines to be necessary to carry out 

this program. 

(Approved by the Office of 

Management and Budget under control 

number 1820–0660) 

(Authority: Sections 752(h) and (i)(4) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(h) and (i)) 

§ 367.31 What assurances must a DSA 

include in its application? 

An application for a grant under 

section 752(h) or a reallotment grant 

under section 752(i)(4) of the Act must 

contain an assurance that— 

(a) Grant funds will be expended only 

for the purposes described in § 367.1; 

(b) With respect to the costs of the 

program to be carried out by the State 

pursuant to this part, the State will 

make available, directly or through 

donations from public or private 

entities, non-Federal contributions 

toward these costs in an amount that is 

not less than $1 for each $9 of Federal 

funds provided in the grant; 

(c) At the end of each fiscal year, the 

DSA will prepare and submit to the 

Secretary a report, with respect to each 

project or program the DSA operates or 

administers under this part, whether 

directly or through a grant or contract, 

that contains, information that the 

Secretary determines necessary for the 

proper and efficient administration of 

this program, including— 

(1) The number and types of older 

individuals who are blind, including 

older individuals who are blind from 

minority backgrounds, and are receiving 

services; 

(2) The types of services provided and 

the number of older individuals who are 

blind and are receiving each type of 

service; 

(3) The sources and amounts of 

funding for the operation of each project 

or program; 

(4) The amounts and percentages of 

resources committed to each type of 

service provided; 

(5) Data on actions taken to employ, 

and advance in employment, 

qualified— 

(i) Individuals with significant 

disabilities; and 

(ii) Older individuals with significant 

disabilities who are blind; 

(6) A comparison, if appropriate, of 

prior year activities with the activities of 

the most recent year; and 

(7) Any new methods and approaches 

relating to IL services for older 

individuals who are blind that are 

developed by projects funded under this 

part; 

(d) The DSA will— 

(1) Provide services that contribute to 

the maintenance of, or the increased 

independence of, older individuals who 

are blind; and 

(2) 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 

(e) The applicant has been designated 

by the State as the sole State agency 

authorized to provide rehabilitation 

services to individuals who are blind. 

(Approved by the Office of 

Management and Budget under control 

numbers 1820–0660 and 1820–0608) 

(Authority: Section 752(h) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(h)) 

Subpart D—How Does the Secretary 

Award Discretionary Grants? 

§ 367.40 Under what circumstances does 

the Secretary award discretionary grants to 

States? 

(a) In the case of a fiscal year for 

which the amount appropriated under 

section 753 of the Act is less than 

$13,000,000, the Secretary awards 

discretionary grants under this part on 

a competitive basis to States in 

accordance with section 752(b) of the 

Act and EDGAR regulations at 34 CFR 

part 75 (Direct Grant Programs). 

(b) The Secretary awards 

noncompetitive continuation grants for 

a multi-year project to pay for the costs 

of activities for which a grant was 

awarded under this part—as long as the 

grantee satisfies the applicable 

requirements in this part, the terms of 

the grant, and 34 CFR 75.250 through 

75.253 (Approval of Multi-year 

Projects). 

(c) Subparts A, C, D, and F of this part 

govern the award of competitive grants 

under this part. 

(Authority: Section 752(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(b); 20 U.S.C. 1221e–3 and 3474) 

§ 367.41 How does the Secretary evaluate 

an application for a discretionary grant? 

(a) The Secretary evaluates an 

application for a discretionary grant 

based on the selection criteria chosen 

from the general selection criteria found 

in EDGAR regulations at 34 CFR 75.210. 

(b) In addition to the selection 

criteria, the Secretary considers the 

geographic distribution of projects in 

making an award. 

(Authority: Section 752(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(b); 20 U.S.C. 1221e–3 and 3474) 

Subpart E—How Does the Secretary 

Award Formula Grants? 

§ 367.50 Under what circumstances does 

the Secretary award formula grants to 

States? 

(a) In the case of a fiscal year for 

which the amount appropriated under 

section 753 of the Act is equal to or 

greater than $13,000,000, grants under 

this part are made to States from 

allotments under section 752(c)(2) of the 

Act. 

(b) Subparts A, C, E, and F of this part 

govern the award of formula grants 

under this part. 

(Authority: Section 752(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(c)) 

§ 367.51 How are allotments made? 

(a) For purposes of making grants 

under section 752(c) of the Act and this 

subpart, the Secretary makes an 

allotment to each State in an amount 

determined in accordance with section 

752(i) of the Act. 

(b) The Secretary makes a grant to a 

DSA in the amount of the allotment to 

the State under section 752(i) of the Act 

if the DSA submits to and obtains 

approval from the Secretary of an 

application for assistance under this 

program that meets the requirements of 


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section 752(h) of the Act and §§ 367.30 

and 367.31. 

(Approved by the Office of 

Management and Budget under control 

number 1820–0660) 

(Authority: Section 752(c)(2) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(c)(2)) 

§ 367.52 How does the Secretary reallot 

funds under this program? 

(a) From the amounts specified in 

paragraph (b) of this section, the 

Secretary may make reallotment grants 

to States, as determined by the 

Secretary, whose population of older 

individuals who are blind has a 

substantial need for the services 

specified in section 752(d) of the Act 

and § 367.3(b), relative to the 

populations in other States of older 

individuals who are blind. 

(b) The amounts referred to in 

paragraph (a) of this section are any 

amounts that are not paid to States 

under section 752(c)(2) of the Act and 

§ 367.51 as a result of— 

(1) The failure of a DSA to prepare, 

submit, and receive approval of an 

application under section 752(h) of the 

Act and in accordance with §§ 367.30 

and 367.31; or 

(2) Information received by the 

Secretary from the DSA that the DSA 

does not intend to expend the full 

amount of the State’s allotment under 

section 752(c) of the Act and this 

subpart. 

(c) A reallotment grant to a State 

under paragraph (a) of this section is 

subject to the same conditions as grants 

made under section 752(a) of the Act 

and this part. 

(d) Any funds made available to a 

State for any fiscal year pursuant to this 

section are regarded as an increase in 

the allotment of the State under § 367.51 

for that fiscal year only. 

(e) A state that does not intend to 

expend the full amount of its allotment 

must notify RSA at least 45 days prior 

to the end of the fiscal year that its 

grant, or a portion of it, is available for 

reallotment. 

(Approved by the Office of 

Management and Budget under control 

number 1820–0660) 

(Authority: Section 752(i)(4) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(i)(4)) 

Subpart F—What Conditions Must Be 

Met After an Award? 

§ 367.60 When may a DSA make 

subawards or contracts? 

A DSA may operate or administer the 

program or projects under this part to 

carry out the purposes specified in 

§ 367.1, either directly or through— 

(a) Subawards to public or private 

nonprofit agencies or organizations; or 

(b) Contracts with individuals, 

entities, or organizations that are not 

public or private nonprofit agencies or 

organizations. 

(Authority: Sections 752(g) and (h) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(g) and (h)(2)(A)) 

§ 367.61 What matching requirements 

apply? 

Non-Federal contributions required 

by § 367.31(b) must meet the 

requirements in 2 CFR 200.306 (Cost 

sharing or matching). 

(Authority: Section 752(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(f)) 

§ 367.62 What requirements apply if the 

State’s non-Federal share is in cash? 

(a) Expenditures that meet the nonFederal share requirements of 2 CFR 

200.306 may be used to meet the nonFederal share matching requirement. 

Expenditures used as non-Federal share 

must also meet the following 

requirements: 

(1) The expenditures are made with 

funds made available by appropriation 

directly to the DSA or with funds made 

available by allotment or transfer from 

any other unit of State or local 

government; 

(2) The expenditures are made with 

cash contributions from a donor that are 

deposited in the account of the DSA in 

accordance with State law for 

expenditure by, and at the sole 

discretion of, the DSA for activities 

authorized by § 367.3; or 

(3) The expenditures are made with 

cash contributions from a donor that are 

earmarked for meeting the State’s share 

for activities listed in § 367.3; 

(b) Cash contributions are permissible 

under paragraph (a)(3) of this section 

only if the cash contributions are not 

used for expenditures that benefit or 

will benefit in any way the donor, an 

individual to whom the donor is related 

by blood or marriage or with whom the 

donor has a close personal relationship, 

or an individual, entity, or organization 

with whom the donor shares a financial 

interest. 

(c) The receipt of a subaward or 

contract under section 752(g) of the Act 

from the DSA is not considered a benefit 

to the donor of a cash contribution for 

purposes of paragraph (b) of this section 

if the subaward or contract was awarded 

under the State’s regular competitive 

procedures. The State may not exempt 

the awarding of the subaward or 

contract from its regular competitive 

procedures. 

(d) For purposes of this section, a 

donor may be a private agency, a profitmaking or nonprofit organization, or an 

individual. 

(Authority: Section 752(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(f)) 

§ 367.63 What requirements apply if the 

State’s non-Federal share is in kind? 

In-kind contributions may be— 

(a) Used to meet the matching 

requirement under section 752(f) of the 

Act if the in-kind contributions meet the 

requirements and are allowable under 2 

CFR 200.306; and 

(b) Made to the program or project by 

the State or by a third party (i.e., an 

individual, entity, or organization, 

whether local, public, private, for profit, 

or nonprofit), including a third party 

that is a subrecipient or contractor that 

is receiving or will receive assistance 

under section 752(g) of the 

Rehabilitation Act. 

(Authority: Section 752(f) and (g) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(f) and (g)) 

§ 367.64 What is the prohibition against a 

State’s condition of an award of a subaward 

or contract based on cash or in-kind 

contributions? 

(a) A State may not condition the 

making of a subaward or contract under 

section 752(g) of the Act on the 

requirement that the applicant for the 

subaward or contract make a cash or inkind contribution of any particular 

amount or value to the State. 

(b) An individual, entity, or 

organization that is a subrecipient or 

contractor of the State, may not 

condition the award of a subcontract on 

the requirement that the applicant for 

the subcontract make a cash or in-kind 

contribution of any particular amount or 

value to the State or to the subrecipient 

or contractor of the State. 

(Authority: Section 752(f) and (g) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 796k(f) and (g)) 

§ 367.65 What is program income and how 

may it be used? 

(a) Definition. Program income means 

gross income earned by the grantee, 

subrecipient, or contractor that is 

directly generated by a supported 

activity or earned as a result of the 

grant, subaward, or contract. 

(1) Program income received through 

the transfer of Social Security 

Administration program income from 

the State Vocational Rehabilitation 

Services program (Title I) in accordance 

with 34 CFR 361.63(c)(2) will be treated 

as program income received under this 

part. 


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(2) [Reserved] 

(b) Use of program income. (1) 

Program income, whenever earned, 

must be used for the provision of 

services authorized under § 367.3. 

(2) A service provider is authorized to 

treat program income as— 

(i) A deduction from total allowable 

costs charged to a Federal grant, in 

accordance with 2 CFR 200.307(e)(1); or 

(ii) An addition to the grant funds to 

be used for additional allowable 

program expenditures, in accordance 

with 2 CFR 200.307(e)(2). 

(3) Program income may not be used 

to meet the non-Federal share 

requirement under § 367.31(b). 

(Authority: 20 U.S.C. 3474) 

§ 367.66 What requirements apply to the 

obligation of Federal funds and program 

income? 

(a) Except as provided in paragraph 

(b) of this section, any Federal funds, 

including reallotted funds, that are 

appropriated for a fiscal year to carry 

out a program under this part that are 

not obligated or expended by the DSA 

prior to the beginning of the succeeding 

fiscal year, and any program income 

received during a fiscal year that is not 

obligated or expended by the DSA prior 

to the beginning of the succeeding fiscal 

year in which the program income was 

received, remain available for obligation 

and expenditure by the DSA during that 

succeeding fiscal year. 

(b) Federal funds appropriated for a 

fiscal year under this part remain 

available for obligation in the 

succeeding fiscal year only to the extent 

that the DSA complied with its 

matching requirement by obligating, in 

accordance with 34 CFR 76.707, the 

non-Federal share in the fiscal year for 

which the funds were appropriated. 

(c) Program income is considered 

earned in the fiscal year in which it is 

received. Program income earned during 

the fiscal year must be disbursed during 

the time in which new obligations may 

be incurred to carry out the work 

authorized under the award, and prior 

to requesting additional cash payments 

in accordance with 2 CFR 200.305(b)(5). 

(Authority: 20 U.S.C. 3474) 

§ 367.67 What notice must be given about 

the Client Assistance Program (CAP)? 

The DSA and all other service 

providers under this part shall use 

formats that are accessible to notify 

individuals seeking or receiving services 

under this part about— 

(a) The availability of CAP authorized 

by section 112 of the Act; 

(b) The purposes of the services 

provided under the CAP; and 

(c) How to contact the CAP. 

(Authority: Section 20 of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 717) 

§ 367.68 What are the special 

requirements pertaining to the protection, 

use, and release of personal information? 

(a) General provisions. The DSA and 

all other service providers under this 

part shall adopt and implement policies 

and procedures to safeguard the 

confidentiality of all personal 

information, including photographs and 

lists of names. These policies and 

procedures must assure that— 

(1) Specific safeguards protect current 

and stored personal information; 

(2) All applicants for, or recipients of, 

services under this part and, as 

appropriate, those individuals’ legally 

authorized representatives, service 

providers, cooperating agencies, and 

interested persons are informed of the 

confidentiality of personal information 

and the conditions for gaining access to 

and releasing this information; 

(3) All applicants or their legally 

authorized representatives are informed 

about the service provider’s need to 

collect personal information and the 

policies governing its use, including— 

(i) Identification of the authority 

under which information is collected; 

(ii) Explanation of the principal 

purposes for which the service provider 

intends to use or release the 

information; 

(iii) Explanation of whether providing 

requested information to the service 

provider is mandatory or voluntary and 

the effects to the individual of not 

providing requested information; 

(iv) Identification of those situations 

in which the service provider requires 

or does not require informed written 

consent of the individual or his or her 

legally authorized representative before 

information may be released; and 

(v) Identification of other agencies to 

which information is routinely released; 

(4) Persons who are unable to 

communicate in English or who rely on 

alternative modes of communication 

must be provided an explanation of 

service provider policies and 

procedures affecting personal 

information through methods that can 

be adequately understood by them; 

(5) At least the same protections are 

provided to individuals served under 

this part as provided by State laws and 

regulations; and 

(6) Access to records is governed by 

rules established by the service provider 

and any fees charged for copies of 

records are reasonable and cover only 

extraordinary costs of duplication or 

making extensive searches. 

(b) Service provider use. All personal 

information in the possession of the 

service provider may be used only for 

the purposes directly connected with 

the provision of services under this part 

and the administration of the program 

under which services are provided 

under this part. Information containing 

identifiable personal information may 

not be shared with advisory or other 

bodies that do not have official 

responsibility for the provision of 

services under this part or the 

administration of the program under 

which services are provided under this 

part. In the provision of services under 

this part or the administration of the 

program under which services are 

provided under this part, the service 

provider may obtain personal 

information from other service 

providers and cooperating agencies 

under assurances that the information 

may not be further divulged, except as 

provided under paragraphs (c), (d), and 

(e) of this section. 

(c) Release to recipients of services 

under this part. 

(1) Except as provided in paragraphs 

(c)(2) and (c)(3) of this section, if 

requested in writing by a recipient of 

services under this part, the service 

provider shall release all information in 

that individual’s record of services to 

the individual or the individual’s legally 

authorized representative in a timely 

manner. 

(2) Medical, psychological, or other 

information that the service provider 

determines may be harmful to the 

individual may not be released directly 

to the individual, but must be provided 

through a qualified medical or 

psychological professional or the 

individual’s legally authorized 

representative. 

(3) If personal information has been 

obtained from another agency or 

organization, it may be released only by, 

or under the conditions established by, 

the other agency or organization. 

(d) Release for audit, evaluation, and 

research. Personal information may be 

released to an organization, agency, or 

individual engaged in audit, evaluation, 

or research activities only for purposes 

directly connected with the 

administration of a program under this 

part, or for purposes that would 

significantly improve the quality of life 

for individuals served under this part 

and only if the organization, agency, or 

individual assures that— 

(1) The information will be used only 

for the purposes for which it is being 

provided; 

(2) The information will be released 

only to persons officially connected 

with the audit, evaluation, or research; 

(3) The information will not be 

released to the involved individual; 


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(4) The information will be managed 

in a manner to safeguard confidentiality; 

and 

(5) The final product will not reveal 

any personally identifying information 

without the informed written consent of 

the involved individual or the 

individual’s legally authorized 

representative. 

(e) Release to other programs or 

authorities. 

(1) Upon receiving the informed 

written consent of the individual or, if 

appropriate, the individual’s legally 

authorized representative, the service 

provider may release personal 

information to another agency or 

organization for the latter’s program 

purposes only to the extent that the 

information may be released to the 

involved individual and only to the 

extent that the other agency or 

organization demonstrates that the 

information requested is necessary for 

the proper administration of its 

program. 

(2) Medical or psychological 

information may be released pursuant to 

paragraph (e)(1) of this section if the 

other agency or organization assures the 

service provider that the information 

will be used only for the purpose for 

which it is being provided and will not 

be further released to the individual. 

(3) The service provider shall release 

personal information if required by 

Federal laws or regulations. 

(4) The service provider shall release 

personal information in response to 

investigations in connection with law 

enforcement, fraud, or abuse, unless 

expressly prohibited by Federal or State 

laws or regulations, and in response to 

judicial order. 

(5) The service provider also may 

release personal information to protect 

the individual or others if the individual 

poses a threat to his or her safety or to 

the safety of others. 

(Authority: 20 U.S.C. 3474) 

§ 367.69 What access to records must be 

provided? 

For the purpose of conducting audits, 

examinations, and compliance reviews, 

the DSA and all other service providers 

shall provide access to the Secretary and 

the Comptroller General, or any of their 

duly authorized representatives, to— 

(a) The records maintained under this 

part 

(b) Any other books, documents, 

papers, and records of the recipients 

that are pertinent to the financial 

assistance received under this part; and 

(c) All individual case records or files 

or consumer service records of 

individuals served under this part, 

including names, addresses, 

photographs, and records of evaluation 

included in those individual case 

records or files or consumer service 

records. 

(Authority: 20 U.S.C. 1221e–3) 

§ 367.70 What records must be 

maintained? 

The DSA and all other service 

providers shall maintain— 

(a) Records that fully disclose and 

document— 

(1) The amount and disposition by the 

recipient of that financial assistance; 

(2) The total cost of the project or 

undertaking in connection with which 

the financial assistance is given or used; 

(3) The amount of that portion of the 

cost of the project or undertaking 

supplied by other sources; and 

(4) Compliance with the requirements 

of this part; and 

(b) Other records that the Secretary 

determines to be appropriate to facilitate 

an effective audit. 

(Authority: 20 U.S.C. 1221e–3) 

PART 369 [Removed and Reserved] 

■ 2. Part 369 is removed and reserved. 

■ 3. Part 370 is revised to read as 

follows: 

PART 370—CLIENT ASSISTANCE 

PROGRAM 

Subpart A—General 

Sec. 

370.1 What is the Client Assistance 

Program (CAP)? 

370.2 Who is eligible for an award? 

370.3 Who is eligible for services and 

information under the CAP? 

370.4 What kinds of activities may the 

Secretary fund? 

370.5 What regulations apply? 

370.6 What definitions apply? 

370.7 What shall the designated agency do 

to make its services accessible? 

Subpart B—What Requirements Apply to 

Redesignation? 

370.10 When do the requirements for 

redesignation apply? 

370.11 What requirements apply to a notice 

of proposed redesignation? 

370.12 How does a designated agency 

preserve its right to appeal a 

redesignation? 

370.13 What are the requirements for a 

decision to redesignate? 

370.14 How does a designated agency 

appeal a written decision to redesignate? 

370.15 What must the Governor of a State 

do upon receipt of a copy of a designated 

agency’s written appeal to the Secretary? 

370.16 How does the Secretary review an 

appeal of a redesignation? 

370.17 When does a redesignation become 

effective? 

Subpart C—What are the Requirements for 

Requesting a Grant? 

370.20 What must be included in a request 

for a grant? 

Subpart D—How Does the Secretary 

Allocate and Reallocate Funds to a State? 

370.30 How does the Secretary allocate 

funds? 

370.31 How does the Secretary reallocate 

funds? 

Subpart E—What Post-Award Conditions 

Must Be Met by a Designated Agency? 

370.40 What are allowable costs? 

370.41 What conflict of interest provision 

applies to employees of a designated 

agency? 

370.42 What access must the CAP be 

afforded to policymaking and 

administrative personnel? 

370.43 What requirement applies to the use 

of mediation procedures? 

370.44 What reporting requirement applies 

to each designated agency? 

370.45 What limitation applies to the 

pursuit of legal remedies? 

370.46 What consultation requirement 

applies to a Governor of a State? 

370.47 What is program income and how 

may it be used? 

370.48 When must grant funds and program 

income be obligated? 

370.49 What are the special requirements 

pertaining to the protection, use, and 

release of personal information? 

Authority: Section 112 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 732, unless otherwise noted. 

Subpart A—General 

§ 370.1 What is the Client Assistance 

Program (CAP)? 

The purpose of this program is to 

establish and carry out CAPs that— 

(a) Advise and inform clients and 

client-applicants of all services and 

benefits available to them through 

programs authorized under the 

Rehabilitation Act of 1973, as amended 

(Act), including activities carried out 

under sections 113 and 511; 

(b) Assist and advocate for clients and 

client-applicants in their relationships 

with projects, programs, and community 

rehabilitation programs providing 

services under the Act; and 

(c) Inform individuals with 

disabilities in the State, especially 

individuals with disabilities who have 

traditionally been unserved or 

underserved by vocational rehabilitation 

programs, of the services and benefits 

available to them under the Act and 

under title I of the Americans with 

Disabilities Act of 1990 (ADA) (42 

U.S.C. 12111 et seq.). 

(Authority: Section 112(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 732(a)) 


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§ 370.2 Who is eligible for an award? 

(a)(1) Any State, through its Governor, 

and the protection and advocacy system 

serving the American Indian 

Consortium, is eligible for an award 

under this part if the State or eligible 

protection and advocacy system 

submits, and receives approval of, an 

application in accordance with § 370.20. 

(2) For purposes of this part, the 

terms-– 

(i) ‘‘American Indian Consortium’’ has 

the meaning given the term in section 

102 of the Developmental Disabilities 

Assistance and Bill of Rights Act of 

2000 (DD Act) (42 U.S.C. 15002); and 

(ii) ‘‘Protection and advocacy system’’ 

means a protection and advocacy 

system established under subtitle C of 

title I of the DD Act (42 U.S.C. 15041 et 

seq.). 

(b) Notwithstanding the protection 

and advocacy system serving the 

American Indian Consortium, the 

Governor of each State shall designate a 

public or private agency to conduct the 

State’s CAP under this part. 

(c) Except as provided in paragraph 

(d) of this section, the Governor shall 

designate an agency that is independent 

of any agency that provides treatment, 

services, or rehabilitation to individuals 

under the Act. 

(d) The Governor may, in the initial 

designation, designate an agency that 

provides treatment, services, or 

rehabilitation to individuals with 

disabilities under the Act if, at any time 

before February 22, 1984, there was an 

agency in the State that both— 

(1) Was a grantee under section 112 of 

the Act by serving as a client assistance 

agency and directly carrying out a CAP; 

and 

(2) Was, at the same time, a grantee 

under any other provision of the Act. 

(e) An agency designated by the 

Governor of a State to conduct the 

State’s CAP or the protection and 

advocacy system serving the American 

Indian Consortium under this part may 

not make a subaward to or enter into a 

contract with an agency that provides 

services under this Act either to carry 

out the CAP or to provide services 

under the CAP. 

(f) A designated agency, including the 

protection and advocacy system serving 

the American Indian Consortium, that 

contracts to provide CAP services with 

another entity or individual remains 

responsible for— 

(1) The conduct of a CAP that meets 

all of the requirements of this part; 

(2) Ensuring that the entity or 

individual expends CAP funds in 

accordance with— 

(i) The regulations in this part; and 

(ii) The regulations at 2 CFR part 200 

applicable to the designated agency 

identified in paragraph (b) or the 

protection and advocacy system serving 

the American Indian Consortium, as 

described in paragraph (a) of this 

section; and 

(3) The direct day-to-day supervision 

of the CAP services being carried out by 

the contractor. This day-to-day 

supervision must include the direct 

supervision of the individuals who are 

employed or used by the contractor to 

provide CAP services. 

(Authority: Sections 12(c) and 112(a), 

(c)(1)(A), and (e)(1)(E) of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 709(c) 

and 732(a), (c)(1)(A), and (e)(1)(E)) 

§ 370.3 Who is eligible for services and 

information under the CAP? 

(a) Any client or client applicant is 

eligible for the services described in 

§ 370.4. 

(b) Any individual with a disability is 

eligible to receive information on the 

services and benefits available to 

individuals with disabilities under the 

Act and title I of the ADA. 

(Authority: Section 112(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 732(a)) 

§ 370.4 What kinds of activities may the 

Secretary fund? 

(a) Funds made available under this 

part must be used for activities 

consistent with the purposes of this 

program, including— 

(1) Advising and informing clients, 

client-applicants, and individuals with 

disabilities in the State, especially 

individuals with disabilities who have 

traditionally been unserved or 

underserved by vocational rehabilitation 

programs, of— 

(i) All services and benefits available 

to them through programs authorized 

under the Act; and 

(ii) Their rights in connection with 

those services and benefits; 

(2) Informing individuals with 

disabilities in the State, especially 

individuals with disabilities who have 

traditionally been unserved or 

underserved by vocational rehabilitation 

programs, of the services and benefits 

available to them under title I of the 

ADA; 

(3) Upon the request of the client or 

client applicant, assisting and 

advocating on behalf of the client or 

client applicant in his or her 

relationship with projects, programs, 

and community rehabilitation programs 

that provide services under the Act by 

engaging in individual or systemic 

advocacy and pursuing, or assisting and 

advocating on behalf of the client or 

client applicant to pursue, legal, 

administrative, and other available 

remedies, if necessary— 

(i) To ensure the protection of the 

rights of a client or client applicant 

under the Act; and 

(ii) To facilitate access by individuals 

with disabilities, including students and 

youth with disabilities who are making 

the transition from school programs, to 

services funded under the Act; and 

(4) Providing information to the 

public concerning the CAP. 

(b) In providing assistance and 

advocacy services under this part with 

respect to services under title I of the 

Act, a designated agency may provide 

assistance and advocacy services to a 

client or client applicant to facilitate the 

individual’s employment, including 

assistance and advocacy services with 

respect to the individual’s claims under 

title I of the ADA, if those claims under 

title I of the ADA are directly related to 

services under title I of the Act that the 

individual is receiving or seeking. 

(Authority: Sections 12(c) and 112(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 732(a)) 

§ 370.5 What regulations apply? 

The following regulations apply to the 

expenditure of funds and the 

administration of the program under 

this part: 

(a) The Education Department General 

Administrative Regulations (EDGAR) as 

follows: 

(1) 34 CFR part 75 (Direct Grant 

Programs) for purposes of an award 

made under § 370.30(d)(1) when the 

CAP appropriation equals or exceeds 

$14,000,000. 

(2) 34 CFR part 76 (StateAdministered Programs) applies to the 

State and, if the designated agency is a 

State or local government agency, to the 

designated agency, except for— 

(i) Section 76.103; 

(ii) Sections 76.125 through 76.137; 

(iii) Sections 76.300 through 76.401; 

(iv) Section 76.708; 

(v) Section 76.734; and 

(vi) Section 76.740. 

(3) 34 CFR part 77 (Definitions That 

Apply to Department Regulations). 

(4) 34 CFR part 79 (Intergovernmental 

Review of Department of Education 

Programs and Activities). 

(5) 34 CFR part 81 (General Education 

Provisions Act-Enforcement) applies to 

both the State and the designated 

agency, whether or not the designated 

agency is the actual recipient of the CAP 

grant. As the entity that eventually, if 

not directly, receives the CAP grant 

funds, the designated agency is 

considered a recipient for purposes of 

Part 81. 


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(6) 34 CFR part 82 (New Restrictions 

on Lobbying). 

(b) Other regulations as follows: 

(1) 2 CFR part 180 (OMB Guidelines 

to Agencies on Debarment and 

Suspension (Nonprocurement)), as 

adopted at 2 CFR part 3485. 

(2) 2 CFR part 200 (Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards), as adopted at 2 CFR 

part 3474. 

(c) The regulations in this part 370. 

Note to § 370.5: Any funds made 

available to a State under this program 

that are transferred by a State to a 

designated agency do not make a 

subaward as that term is defined in 2 

CFR 200.330. The designated agency is 

not, therefore, in these circumstances a 

subrecipient, as that term is defined in 

2 CFR 200.330. 

(Authority: Sections 12(c) and 112 of the 

Rehabilitation Act, as amended; 29 U.S.C. 

709(c) and 732) 

§ 370.6 What definitions apply? 

(a) Definitions in EDGAR at 34 CFR 

part 77. 

(b) Definitions in 2 CFR part 200, 

subpart A. 

(c) Other definitions. The following 

definitions also apply to this part: 

Act means the Rehabilitation Act of 

1973, as amended. 

Advocacy means pleading an 

individual’s cause or speaking or 

writing in support of an individual. 

Advocacy may be formal, as in the case 

of a lawyer representing an individual 

in a court of law or in formal 

administrative proceedings before 

government agencies (whether tribal, 

State, local, or Federal). Advocacy also 

may be informal, as in the case of a 

lawyer or non-lawyer representing an 

individual in negotiations, mediation, or 

informal administrative proceedings 

before government agencies (whether 

tribal, State, local, or Federal), or as in 

the case of a lawyer or non-lawyer 

representing an individual’s cause 

before private entities or organizations, 

or government agencies (whether tribal, 

State, local, or Federal). Advocacy may 

be on behalf of— 

(1) A single individual, in which case 

it is individual advocacy; 

(2) More than one individual or a 

group of individuals, in which case it is 

systems (or systemic) advocacy, but 

systems or systemic advocacy, for the 

purposes of this part, may not include 

class actions, or 

(3) Oneself, in which case it is self 

advocacy. 

American Indian Consortium means 

that entity described in § 370.2(a). 

Class action means a formal legal suit 

on behalf of a group or class of 

individuals filed in a Federal or State 

court that meets the requirements for a 

‘‘class action’’ under Federal or State 

law. ‘‘Systems (or systemic) advocacy’’ 

that does not include filing a formal 

class action in a Federal or State court 

is not considered a class action for 

purposes of this part. 

Client or client applicant means an 

individual receiving or seeking services 

under the Act, respectively. 

Designated agency means the agency 

designated by the Governor under 

§ 370.2 or the protection and advocacy 

system serving the American Indian 

Consortium that is conducting a CAP 

under this part. 

Mediation means the act or process of 

using an independent third party to act 

as a mediator, intermediary, or 

conciliator to settle differences or 

disputes between persons or parties. 

The third party who acts as a mediator, 

intermediary, or conciliator may not be 

any entity or individual who is 

connected in any way with the eligible 

system or the agency, entity, or 

individual with whom the individual 

with a disability has a dispute. 

Mediation may involve the use of 

professional mediators or any other 

independent third party mutually 

agreed to by the parties to the dispute. 

Protection and Advocacy System has 

the meaning set forth at § 370.2(a). 

Services under the Act means 

vocational rehabilitation, independent 

living, supported employment, and 

other similar rehabilitation services 

provided under the Act. For purposes of 

the CAP, the term ‘‘services under the 

Act’’ does not include activities carried 

out under the protection and advocacy 

program authorized by section 509 of 

the Act (i.e., the Protection and 

Advocacy of Individual Rights (PAIR) 

program, 34 CFR part 381). 

State means, 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, except for purposes of the 

allotments under § 370.30, in which 

case ‘‘State’’ does not mean or include 

Guam, American Samoa, the United 

States Virgin Islands, and the 

Commonwealth of the Northern Mariana 

Islands. 

(Authority: Sections 7(34), 12(c), and 112 of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 705(34), 709(c), and 732) 

§ 370.7 What shall the designated agency 

do to make its services accessible? 

The designated agency shall provide, 

as appropriate, the CAP services 

described in § 370.4 in formats that are 

accessible to clients or client-applicants 

who seek or receive CAP services. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

Subpart B—What Requirements Apply to 

Redesignation? 

§ 370.10 When do the requirements for 

redesignation apply? 

(a) The Governor shall redesignate the 

designated agency for carrying out the 

CAP to an agency that is independent of 

any agency that provides treatment, 

services, or rehabilitation to individuals 

under the Act if, after August 7, 1998— 

(1) The designated State agency 

undergoes any change in the 

organizational structure of the agency 

that results in one or more new State 

agencies or departments, or results in 

the merger with one or more other State 

agencies or departments, and 

(2) The designated State agency 

contains an office or unit conducting the 

CAP. 

(3) For purposes of paragraph (a) of 

this section, the designated State agency 

has the meaning given to that term at 34 

CFR 361.5(c)(12) and described at 34 

CFR 361.13. 

(b) The Governor may not redesignate 

the agency designated pursuant to 

section 112(c) of the Act and § 370.2(b) 

without good cause and without 

complying with the requirements of 

§§ 370.10 through 370.17. 

(c) For purposes of §§ 370.10 through 

370.17, a ‘‘redesignation of’’ or ‘‘to 

redesignate’’ a designated agency means 

any change in or transfer of the 

designation of an agency previously 

designated by the Governor to conduct 

the State’s CAP to a new or different 

agency, unit, or organization, 

including— 

(1) A decision by a designated agency 

to cancel its existing contract with 

another entity with which it has 

previously contracted to carry out and 

operate all or part of its responsibilities 

under the CAP (including providing 

advisory, assistance, or advocacy 

services to eligible clients and clientapplicants); or 

(2) A decision by a designated agency 

not to renew its existing contract with 

another entity with which it has 

previously contracted. Therefore, an 

agency that is carrying out a State’s CAP 

under a contract with a designated 

agency is considered a designated 

agency for purposes of §§ 370.10 

through 370.17. 

(d) For purposes of paragraph (b) of 

this section, a designated agency that 

does not renew a contract for CAP 

services because it is following State 


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procurement laws that require contracts 

to be awarded through a competitive 

bidding process is presumed to have 

good cause for not renewing an existing 

contract. However, this presumption 

may be rebutted. 

(e) If State procurement laws require 

a designated agency to award a contract 

through a competitive bidding process, 

the designated agency must hold public 

hearings on the request for proposal 

before awarding the new contract. 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

§ 370.11 What requirements apply to a 

notice of proposed redesignation? 

(a) Prior to any redesignation of the 

agency that conducts the CAP, the 

Governor shall give written notice of the 

proposed redesignation to the 

designated agency, the State 

Rehabilitation Council (SRC), and the 

State Independent Living Council (SILC) 

and publish a public notice of the 

Governor’s intention to redesignate. 

Both the notice to the designated 

agency, the SRC, and the SILC and the 

public notice must include, at a 

minimum, the following: 

(1) The Federal requirements for the 

CAP (section 112 of the Act). 

(2) The goals and function of the CAP. 

(3) The name of the current 

designated agency. 

(4) A description of the current CAP 

and how it is administered. 

(5) The reason or reasons for 

proposing the redesignation, including 

why the Governor believes good cause 

exists for the proposed redesignation. 

(6) The effective date of the proposed 

redesignation. 

(7) The name of the agency the 

Governor proposes to administer the 

CAP. 

(8) A description of the system that 

the redesignated (i.e., new) agency 

would administer. 

(b) The notice to the designated 

agency must— 

(1) Be given at least 30 days in 

advance of the Governor’s written 

decision to redesignate; and 

(2) Advise the designated agency that 

it has at least 30 days from receipt of the 

notice of proposed redesignation to 

respond to the Governor and that the 

response must be in writing. 

(c) The notice of proposed 

redesignation must be published in a 

place and manner that provides the 

SRC, the SILC, individuals with 

disabilities or their representatives, and 

the public with at least 30 days to 

submit oral or written comments to the 

Governor. 

(d) Following public notice, public 

hearings concerning the proposed 

redesignation must be conducted in an 

accessible format that provides 

individuals with disabilities or their 

representatives an opportunity for 

comment. The Governor shall maintain 

a written public record of these 

hearings. 

(e) The Governor shall fully consider 

any public comments before issuing a 

written decision to redesignate. 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

§ 370.12 How does a designated agency 

preserve its right to appeal a 

redesignation? 

(a) To preserve its right to appeal a 

Governor’s written decision to 

redesignate (see § 370.13), a designated 

agency must respond in writing to the 

Governor within 30 days after it receives 

the Governor’s notice of proposed 

redesignation. 

(b) The designated agency shall send 

its response to the Governor by 

registered or certified mail, return 

receipt requested, or other means that 

provides a record that the Governor 

received the designated agency’s 

response. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

§ 370.13 What are the requirements for a 

decision to redesignate? 

(a) If, after complying with the 

requirements of § 370.11, the Governor 

decides to redesignate the designated 

agency, the Governor shall provide to 

the designated agency a written decision 

to redesignate that includes the 

rationale for the redesignation. The 

Governor shall send the written 

decision to redesignate to the designated 

agency by registered or certified mail, 

return receipt requested, or other means 

that provides a record that the 

designated agency received the 

Governor’s written decision to 

redesignate. 

(b) If the designated agency submitted 

to the Governor a timely response to the 

Governor’s notice of proposed 

redesignation, the Governor shall inform 

the designated agency that it has at least 

15 days from receipt of the Governor’s 

written decision to redesignate to file a 

formal written appeal with the 

Secretary. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

§ 370.14 How does a designated agency 

appeal a written decision to redesignate? 

(a) A designated agency may appeal to 

the Secretary a Governor’s written 

decision to redesignate only if the 

designated agency submitted to the 

Governor a timely written response to 

the Governor’s notice of proposed 

redesignation in accordance with 

§ 370.12. 

(b) To appeal to the Secretary a 

Governor’s written decision to 

redesignate, a designated agency shall 

file a formal written appeal with the 

Secretary within 15 days after the 

designated agency’s receipt of the 

Governor’s written decision to 

redesignate. The date of filing of the 

designated agency’s written appeal with 

the Secretary will be determined in a 

manner consistent with the 

requirements of 34 CFR 81.12. 

(c) If the designated agency files a 

written appeal with the Secretary, the 

designated agency shall send a separate 

copy of this appeal to the Governor by 

registered or certified mail, return 

receipt requested, or other means that 

provides a record that the Governor 

received a copy of the designated 

agency’s appeal to the Secretary. 

(d) The designated agency’s written 

appeal to the Secretary must state why 

the Governor has not met the burden of 

showing that good cause for the 

redesignation exists or has not met the 

procedural requirements under 

§§ 370.11 and 370.13. 

(e) The designated agency’s written 

appeal must be accompanied by the 

designated agency’s written response to 

the Governor’s notice of proposed 

redesignation and may be accompanied 

by any other written submissions or 

documentation the designated agency 

wishes the Secretary to consider. 

(f) As part of its submissions under 

this section, the designated agency may 

request an informal meeting with the 

Secretary at which representatives of 

both parties will have an opportunity to 

present their views on the issues raised 

in the appeal. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

§ 370.15 What must the Governor of a 

State do upon receipt of a copy of a 

designated agency’s written appeal to the 

Secretary? 

(a) If the designated agency files a 

formal written appeal in accordance 


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with § 370.14, the Governor shall, 

within 15 days of receipt of the 

designated agency’s appeal, submit to 

the Secretary copies of the following: 

(1) The written notice of proposed 

redesignation sent to the designated 

agency. 

(2) The public notice of proposed 

redesignation. 

(3) Transcripts of all public hearings 

held on the proposed redesignation. 

(4) Written comments received by the 

Governor in response to the public 

notice of proposed redesignation. 

(5) The Governor’s written decision to 

redesignate, including the rationale for 

the decision. 

(6) Any other written documentation 

or submissions the Governor wishes the 

Secretary to consider. 

(7) Any other information requested 

by the Secretary. 

(b) As part of the submissions under 

this section, the Governor may request 

an informal meeting with the Secretary 

at which representatives of both parties 

will have an opportunity to present 

their views on the issues raised in the 

appeal. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

§ 370.16 How does the Secretary review an 

appeal of a redesignation? 

(a) If either party requests a meeting 

under § 370.14(f) or § 370.15(b), the 

meeting is to be held within 30 days of 

the submissions by the Governor under 

§ 370.15, unless both parties agree to 

waive this requirement. The Secretary 

promptly notifies the parties of the date 

and place of the meeting. 

(b) Within 30 days of the informal 

meeting permitted under paragraph (a) 

of this section or, if neither party has 

requested an informal meeting, within 

60 days of the submissions required 

from the Governor under § 370.15, the 

Secretary issues to the parties a final 

written decision on whether the 

redesignation was for good cause. 

(c) The Secretary reviews a Governor’s 

decision based on the record submitted 

under §§ 370.14 and 370.15 and any 

other relevant submissions of other 

interested parties. The Secretary may 

affirm or, if the Secretary finds that the 

redesignation is not for good cause, 

remand for further findings or reverse a 

Governor’s redesignation. 

(d) The Secretary sends copies of the 

decision to the parties by registered or 

certified mail, return receipt requested, 

or other means that provide a record of 

receipt by both parties. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

§ 370.17 When does a redesignation 

become effective? 

A redesignation does not take effect 

for at least 15 days following the 

designated agency’s receipt of the 

Governor’s written decision to 

redesignate or, if the designated agency 

appeals, for at least 5 days after the 

Secretary has affirmed the Governor’s 

written decision to redesignate. 

(Authority: Sections 12(c) and 112(c)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(1)(B)) 

Subpart C—What are the Requirements for 

Requesting a Grant? 

§ 370.20 What must be included in a 

request for a grant? 

(a) Each State and the protection and 

advocacy system serving the American 

Indian Consortium seeking assistance 

under this part shall submit to the 

Secretary, in writing, at the time and in 

the manner determined by the Secretary 

to be appropriate, an application that 

includes, at a minimum— 

(1) The name of the designated 

agency; and 

(2) An assurance that the designated 

agency meets the independence 

requirement of section 112(c)(1)(A) of 

the Act and § 370.2(c), or that the State 

is exempted from that requirement 

under section 112(c)(1)(A) of the Act 

and § 370.2(d). 

(b)(1) Each State and the protection 

and advocacy system serving the 

American Indian Consortium also shall 

submit to the Secretary an assurance 

that the designated agency has the 

authority to pursue legal, 

administrative, and other appropriate 

remedies to ensure the protection of the 

rights of clients or client-applicants 

within the State or American Indian 

Consortium. 

(2) The authority to pursue remedies 

described in paragraph (b)(1) of this 

section must include the authority to 

pursue those remedies against the State 

vocational rehabilitation agency and 

other appropriate State agencies. The 

designated agency meets this 

requirement if it has the authority to 

pursue those remedies either on its own 

behalf or by obtaining necessary 

services, such as legal representation, 

from outside sources. 

(c) Each State and the protection and 

advocacy system serving the American 

Indian Consortium also shall submit to 

the Secretary assurances that— 

(1) All entities conducting, 

administering, operating, or carrying out 

programs within the State that provide 

services under the Act to individuals 

with disabilities in the State will advise 

all clients and client-applicants of the 

existence of the CAP, the services 

provided under the program, and how 

to contact the designated agency; 

(2) The designated agency will meet 

each of the requirements in this part; 

and 

(3) The designated agency will 

provide the Secretary with the annual 

report required by section 112(g)(4) of 

the Act and § 370.44. 

(d) To allow a designated agency to 

receive direct payment of funds under 

this part, a State or the protection and 

advocacy system serving the American 

Indian Consortium must provide to the 

Secretary, as part of its application for 

assistance, an assurance that direct 

payment to the designated agency is not 

prohibited by or inconsistent with State 

or tribal law, regulation, or policy. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c) and 112(b) and (f) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 732(b) and (f)) 

Subpart D—How Does the Secretary 

Allocate and Reallocate Funds to a State? 

§ 370.30 How does the Secretary allocate 

funds? 

(a) After reserving funds required 

under paragraphs (c) and (d) of this 

section, the Secretary shall allot the 

remainder of 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 

such entity shall receive less than 

$50,000. 

(b) The Secretary allocates $30,000 

each, unless the provisions of section 

112(e)(1)(D) of the Act are applicable, to 

American Samoa, Guam, the Virgin 

Islands, and the Commonwealth of 

Northern Mariana Islands. 

(c) The Secretary shall reserve funds, 

from the amount appropriated to carry 

out this part, to make a grant to the 

protection and advocacy system serving 

the American Indian Consortium to 

provide services in accordance with this 

part. The amount of the grant to the 

protection and advocacy system serving 

the American Indian Consortium shall 

be the same amount as is provided to a 

territory under paragraph (b) of this 

section. 

(d)(1) For any fiscal year for which the 

amount appropriated equals or exceeds 

$14,000,000, the Secretary may reserve 

not less than 1.8 percent and not more 


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than 2.2 percent of such amount to 

provide a grant for training and 

technical assistance for the programs 

established under this part. 

(2) All training and technical 

assistance shall be coordinated with 

activities provided under 34 CFR 

381.22. 

(3) The Secretary shall make a grant 

pursuant to paragraph (d)(1) of this 

section to an entity that has experience 

in or knowledge related to the provision 

of services authorized under this part. 

(4) An entity receiving a grant under 

paragraph (d)(1) of this section shall 

provide training and technical 

assistance to the designated agencies or 

entities carrying out the CAP to assist 

them in improving the provision of 

services authorized under this part and 

the administration of the program. 

(e)(1) Unless prohibited or otherwise 

provided by State or tribal law, 

regulation, or policy, the Secretary pays 

to the designated agency, from the State 

allotment under paragraph (a), (b), or (c) 

of this section, the amount specified in 

the State’s or the eligible protection and 

advocacy system’s approved request. 

Because the designated agency, 

including the protection and advocacy 

system serving the American Indian 

Consortium, is the eventual, if not the 

direct, recipient of the CAP funds, 34 

CFR part 81 and 2 CFR part 200 apply 

to the designated agency, whether or not 

the designated agency is the actual 

recipient of the CAP grant. 

(2) Notwithstanding the grant made to 

the protection and advocacy system 

serving the American Indian 

Consortium under paragraph (c) of this 

section, the State remains the grantee for 

purposes of 34 CFR part 76 and 2 CFR 

part 200 because it is the State that 

submits an application for and receives 

the CAP grant. In addition, both the 

State and the designated agency are 

considered recipients for purposes of 34 

CFR part 81. 

(Authority: Sections 12(c) and 112(b) and (e) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 732(b) and 

(e)) 

§ 370.31 How does the Secretary 

reallocate funds? 

(a) The Secretary reallocates funds in 

accordance with section 112(e)(2) of the 

Act. 

(b) A designated agency shall inform 

the Secretary at least 45 days before the 

end of the fiscal year for which CAP 

funds were received whether the 

designated agency is making available 

for reallotment any of those CAP funds 

that it will be unable to obligate in that 

fiscal year or the succeeding fiscal year. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c), 19, and 112(e)(2) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 716, and 

732(e)(2)) 

Subpart E—What Post-Award Conditions 

Must Be Met by a Designated Agency? 

§ 370.40 What are allowable costs? 

(a) The designated agency, including 

the eligible protection and advocacy 

system serving the American Indian 

Consortium, shall apply the regulations 

at 2 CFR part 200. 

(b) Consistent with the program 

activities listed in § 370.4, the cost of 

travel in connection with the provision 

to a client or client applicant of 

assistance under this program is 

allowable, in accordance with 2 CFR 

part 200. The cost of travel includes the 

cost of travel for an attendant if the 

attendant must accompany the client or 

client applicant. 

(c)(1) The State and the designated 

agency are accountable, both jointly and 

severally, to the Secretary for the proper 

use of funds made available under this 

part. However, the Secretary may 

choose to recover funds under the 

procedures in 34 CFR part 81 from 

either the State or the designated 

agency, or both, depending on the 

circumstances of each case. 

(2) For purposes of the grant made 

under this part to the protection and 

advocacy system serving the American 

Indian Consortium, such entity will be 

solely accountable to the Secretary for 

the proper use of funds made available 

under this part. If the Secretary 

determines it necessary, the Secretary 

may recover funds from the protection 

and advocacy system serving the 

American Indian Consortium pursuant 

to the procedures in 34 CFR part 81. 

(Authority: Sections 12(c) and 112(c)(3) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(c)(3)) 

§ 370.41 What conflict of interest provision 

applies to employees of a designated 

agency? 

(a) Except as permitted by paragraph 

(b) of this section, an employee of a 

designated agency, or of an entity or 

individual under contract with a 

designated agency, who carries out any 

CAP duties or responsibilities, while so 

employed, may not— 

(1) Serve concurrently as a staff 

member of, consultant to, or in any 

other capacity within, any other 

rehabilitation project, program, or 

community rehabilitation program 

receiving assistance under the Act in the 

State; or 

(2) Provide any services under the 

Act, other than CAP and PAIR services. 

(b) An employee of a designated 

agency under contract with a designated 

agency, may— 

(1) Receive a traineeship under 

section 302 of the Act; 

(2) Provide services under the PAIR 

program; 

(3) Represent the CAP on any board 

or council (such as the SRC) if CAP 

representation on the board or council 

is specifically permitted or mandated by 

the Act; and 

(4) Consult with policymaking and 

administrative personnel in State and 

local rehabilitation programs, projects, 

and community rehabilitation programs, 

if consultation with the designated 

agency is specifically permitted or 

mandated by the Act. 

(Authority: Sections 12(c) and 112(g)(1) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(g)(1)) 

§ 370.42 What access must the CAP be 

afforded to policymaking and administrative 

personnel? 

The CAP must be afforded reasonable 

access to policymaking and 

administrative personnel in State and 

local rehabilitation programs, projects, 

and community rehabilitation programs. 

One way in which the CAP may be 

provided that access would be to 

include the director of the designated 

agency among the individuals to be 

consulted on matters of general policy 

development and implementation, as 

required by section 101(a)(16) of the 

Act. 

(Authority: Sections 12(c), 101(a)(16), and 

112(g)(2) of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 721(a)(16), and 

732(g)(2)) 

§ 370.43 What requirement applies to the 

use of mediation procedures? 

(a) Each designated agency shall 

implement procedures designed to 

ensure that, to the maximum extent 

possible, good faith negotiations and 

mediation procedures are used before 

resorting to formal administrative or 

legal remedies. In designing these 

procedures, the designated agency may 

take into account its level of resources. 

(b) For purposes of this section, 

mediation may involve the use of 

professional mediators, other 

independent third parties mutually 

agreed to by the parties to the dispute, 

or an employee of the designated agency 

who— 

(1) Is not assigned to advocate for or 

otherwise represent or is not involved 

with advocating for or otherwise 

representing the client or client 

applicant who is a party to the 

mediation; and 


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(2) Has not previously advocated for 

or otherwise represented or been 

involved with advocating for or 

otherwise representing that same client 

or client applicant. 

(Authority: Section 112(g)(3) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 732(g)(3)) 

§ 370.44 What reporting requirement 

applies to each designated agency? 

In addition to the program and fiscal 

reporting requirements in 34 CFR 

76.720 and 2 CFR 200.327 that are 

applicable to this program, each 

designated agency shall submit to the 

Secretary, no later than 90 days after the 

end of each fiscal year, an annual report 

on the operation of its CAP during the 

previous year, including a summary of 

the work done and the uniform 

statistical tabulation of all cases handled 

by the program. The annual report must 

contain information on— 

(a) The number of requests received 

by the designated agency for 

information on services and benefits 

under the Act and title I of the ADA; 

(b) The number of referrals to other 

agencies made by the designated agency 

and the reason or reasons for those 

referrals; 

(c) The number of requests for 

advocacy services received by the 

designated agency from clients or clientapplicants; 

(d) The number of requests for 

advocacy services from clients or clientapplicants that the designated agency 

was unable to serve; 

(e) The reasons that the designated 

agency was unable to serve all of the 

requests for advocacy services from 

clients or client-applicants; and 

(f) Any other information that the 

Secretary may require. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: Sections 12(c) and 112(g)(4) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(g)(4)) 

§ 370.45 What limitation applies to the 

pursuit of legal remedies? 

A designated agency may not bring 

any class action in carrying out its 

responsibilities under this part. 

(Authority: Section 112(d) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 732(d)) 

§ 370.46 What consultation requirement 

applies to a Governor of a State? 

In designating a client assistance 

agency under § 370.2, redesignating a 

client assistance agency under § 370.10, 

and carrying out the other provisions of 

this part, the Governor shall consult 

with the director of the State vocational 

rehabilitation agency (or, in States with 

both a general agency and an agency for 

the blind, the directors of both 

agencies), the head of the 

developmental disability protection and 

advocacy agency, and representatives of 

professional and consumer 

organizations serving individuals with 

disabilities in the State. 

(Authority: Section 112(c)(2) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 732(c)(2)) 

§ 370.47 What is program income and how 

may it be used? 

(a)(1) Definition. Program income 

means gross income earned by the 

designated agency that is directly 

generated by an activity supported 

under this part. 

(2) Funds received through the 

transfer of Social Security 

Administration payments from the 

designated State unit, as defined in 34 

CFR 361.5(c)(13), in accordance with 34 

CFR 361.63(c)(2) will be treated as 

program income received under this 

part. 

(b) Use of program income. (1) 

Program income, whenever earned or 

received, must be used for the provision 

of services authorized under § 370.4. 

(2) Designated Agencies are 

authorized to treat program income as— 

(i) A deduction from total allowable 

costs charged to a Federal grant, in 

accordance with 2 CFR 200.307(e)(1); or 

(ii) An addition to the grant funds to 

be used for additional allowable 

program expenditures, in accordance 

with 2 CFR 200.307(e)(2). 

(Authority: Sections 12(c) and 108 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c), 728, and 3474) 

§ 370.48 When must grant funds and 

program income be obligated? 

Any Federal funds, including 

reallotted funds, that are appropriated 

for a fiscal year to carry out the 

activities under this part that are not 

obligated or expended by the designated 

agency prior to the beginning of the 

succeeding fiscal year, and any program 

income received during a fiscal year that 

is not obligated or expended by the 

designated agency prior to the beginning 

of the succeeding fiscal year in which 

the program income was received, 

remain available for obligation and 

expenditure by the designated agency 

during that succeeding fiscal year in 

accordance with section 19 of the Act 

and 34 CFR 76.709. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0520) 

(Authority: sections 12(c) and 19 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 716) 

§ 370.49 What are the special 

requirements pertaining to the protection, 

use, and release of personal information? 

(a) All personal information about 

individuals served by any designated 

agency under this part, including lists of 

names, addresses, photographs, and 

records of evaluation, must be held 

strictly confidential. 

(b) The designated agency’s use of 

information and records concerning 

individuals must be limited only to 

purposes directly connected with the 

CAP, including program evaluation 

activities. Except as provided in 

paragraphs (c) and (e) of this section, 

this information may not be disclosed, 

directly or indirectly, other than in the 

administration of the CAP, unless the 

consent of the individual to whom the 

information applies, or his or her 

parent, legal guardian, or other legally 

authorized representative or advocate 

(including the individual’s advocate 

from the designated agency), has been 

obtained in writing. A designated 

agency may not produce any report, 

evaluation, or study that reveals any 

personally identifying information 

without the written consent of the 

individual or his or her representative. 

(c) Except as limited in paragraphs (d) 

and (e) of this section, the Secretary or 

other Federal or State officials 

responsible for enforcing legal 

requirements are to have complete 

access to all— 

(1) Records of the designated agency 

that receives funds under this program; 

and 

(2) All individual case records of 

clients served under this part without 

the consent of the client. 

(d) For purposes of conducting any 

periodic audit, preparing or producing 

any report, or conducting any 

evaluation of the performance of the 

CAP established or assisted under this 

part, the Secretary does not require the 

designated agency to disclose the 

identity of, or any other personally 

identifiable information related to, any 

individual requesting assistance under 

the CAP. 

(e) Notwithstanding paragraph (d) of 

this section and consistent with 

paragraph (f) of this section, a 

designated agency shall disclose to the 

Secretary, if the Secretary so requests, 

the identity of, or any other personally 

identifiable information (i.e., name, 

address, telephone number, social 

security number, or any other official 

code or number by which an individual 

may be readily identified) related to, 


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any individual requesting assistance 

under the CAP if— 

(1) An audit, evaluation, monitoring 

review, State plan assurance review, or 

other investigation produces reliable 

evidence that there is probable cause to 

believe that the designated agency has 

violated its legislative mandate or 

misused Federal funds; or 

(2) The Secretary determines that this 

information may reasonably lead to 

further evidence that is directly related 

to alleged misconduct of the designated 

agency. 

(f) In addition to the protection 

afforded by paragraph (d) of this section, 

the right of a person or designated 

agency not to produce documents or 

disclose information to the Secretary is 

governed by the common law of 

privileges, as interpreted by the courts 

of the United States. 

(Authority: Sections 12(c) and 112(g)(4) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 732(g)(4)) 

■ 4. Part 371 is revised to read as 

follows: 

PART 371—AMERICAN INDIAN 

VOCATIONAL REHABILITATION 

SERVICES 

Subpart A—General 

Sec. 

371.1 What is the American Indian 

Vocational Rehabilitation Services 

program? 

371.2 Who is eligible for assistance under 

this program? 

371.3 What types of projects are authorized 

under this program? 

371.4 What is the length of the project 

period under this program? 

371.5 What regulations apply to this 

program? 

371.6 What definitions apply to this 

program? 

Subpart B—Training and Technical 

Assistance 

371.10 What are the requirements for 

funding training and technical assistance 

under this subpart? 

371.11 How does the Secretary use these 

funds to provide training and technical 

assistance? 

371.12 How does the Secretary make an 

award? 

371.13 How does the Secretary determine 

funding priorities? 

371.14 How does the Secretary evaluate an 

application? 

Subpart C—How Does One Apply for a 

Grant? 

371.20 What are the application procedures 

for this program? 

371.21 What are the special application 

requirements related to the projects 

funded under this part? 

Subpart D—How Does the Secretary Make 

a Grant? 

371.31 How are grants awarded? 

371.32 What other factors does the 

Secretary consider in reviewing an 

application? 

Subpart E—What Conditions Apply to a 

Grantee Under this Program? 

371.40 What are the matching 

requirements? 

371.41 What are allowable costs? 

371.42 How are services to be administered 

under this program? 

371.43 What other special conditions apply 

to this program? 

371.44 What are the special requirements 

pertaining to the protection, use, and 

release of personal information? 

371.45 What notice must be given about the 

Client Assistance Program (CAP)? 

Authority: Sections 12(c) and 121 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741, unless otherwise 

noted. 

Subpart A—General 

§ 371.1 What is the American Indian 

Vocational Rehabilitation Services 

program? 

This program is designed to provide 

vocational rehabilitation services, 

including culturally appropriate 

services, to American Indians with 

disabilities who reside on or near 

Federal or State reservations, consistent 

with such eligible individual’s 

strengths, resources, priorities, 

concerns, abilities, capabilities, 

interests, and informed choice, so that 

such individual may prepare for, and 

engage in, high-quality employment that 

will increase opportunities for economic 

self-sufficiency. 

(Authority: Section 121(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 741(a)) 

§ 371.2 Who is eligible for assistance 

under this program? 

(a) Applications may be made only by 

Indian tribes and consortia of those 

Indian tribes located on Federal and 

State reservations. 

(1) The applicant for the grant must be 

(i) The governing body of an Indian 

tribe, either on behalf the Indian tribe or 

on behalf of a consortium of Indian 

tribes; or 

(ii) A tribal organization that is a 

separate legal organization from an 

Indian tribe. 

(2) In order to receive a grant under 

this section, a tribal organization that is 

not a governing body of an Indian tribe 

must have as one of its functions the 

vocational rehabilitation of American 

Indians with disabilities. 

(3) If a grant is made to the governing 

body of an Indian tribe, a consortium of 

those governing bodies or a tribal 

organization to perform services 

benefiting more than one Indian tribe, 

the approval of each such Indian tribe 

shall be a prerequisite to the making of 

such a grant. 

(b) Applications for awards under 

Subpart B may be made by State, local 

or tribal governments, non-profit 

organizations, or institutions of higher 

education. 

(Authority: Sections 12(c) and 121(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741(a)) 

§ 371.3 What types of projects are 

authorized under this program? 

The American Indian Vocational 

Rehabilitation Services program 

provides financial assistance for the 

establishment and operation of tribal 

vocational rehabilitation services 

programs for American Indians with 

disabilities who reside on or near 

Federal or State reservations. 

(Authority: Sections 12(c) and 121(a) of the 

Rehabilitation Act of 1973, as amended Act, 

29 U.S.C. 709(c) and 741(a) 

§ 371.4 What is the length of the project 

period under this program? 

The Secretary approves a project 

period of up to sixty months. 

(Authority: Sections 12(c) and 121(b)(3) of 

the Rehabilitation Act of 1973, as amended, 

29 U.S.C. 709(c) and 121(b)(3)) 

§ 371.5 What regulations apply to this 

program? 

The following regulations apply to 

this program— 

(a) The regulations in this part 371. 

(b) 2 CFR part 180 (OMB Guidelines 

to Agencies on Debarment and 

Suspension (Nonprocurement)), as 

adopted at 2 CFR part 3485; 

(c) 2 CFR part 200 (Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards) as adopted at 2 CFR 

part 3474. 

(d) 34 CFR part 75 Direct Grant 

Programs 

(e) 34 CFR part 77 Definitions that 

Apply to Department Regulations 

(f) 34 CFR part 81 General Education 

Provisions Act—Enforcement 

(g) 34 CFR part 82 New Restrictions 

on Lobbying 

(h) 34 CFR part 84 Governmentwide 

Requirements for Drug-Free Workplace 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

§ 371.6 What definitions apply to this 

program? 

(a) The definitions of terms included 

in the applicable regulations listed in 

§ 371.5; 


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(b) The following definitions also 

apply to this program— 

Act means the Rehabilitation Act of 

1973, as amended. 

Assessment for determining eligibility 

and vocational rehabilitation needs 

means as appropriate in each case— 

(1)(i) A review of existing data— 

(A) To determine whether an 

individual is eligible for vocational 

rehabilitation services; and 

(B) To assign priority for an order of 

selection described in an approved plan 

or the approved grant application; and 

(ii) To the extent necessary, the 

provision of appropriate assessment 

activities to obtain necessary additional 

data to make such determination and 

assignment; 

(2) 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— 

(A) Existing information obtained for 

the purposes of determining the 

eligibility of the individual and 

assigning priority for an order of 

selection described in an approved plan 

or the approved grant application for the 

individual; and 

(B) Information that can be provided 

by the individual and, if 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; 

(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 use of work 

in real job situations to assess and 

develop the capacities of the individual 

to perform adequately in a work 

environment; and 

(v) To the maximum extent possible, 

relies on information obtained from 

experiences in integrated employment 

settings in the community, and other 

integrated community settings; 

(3) 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 

(4) An exploration of the individual’s 

abilities, capabilities, and capacity to 

perform in work situations, which must 

be assessed periodically during trial 

work experiences, including 

experiences in which the individual is 

provided appropriate supports and 

training. 

(Authority: Sections 7(2) and 12(c) of the 

Rehabilitation Act of 1973, as amended, 29 

U.S.C. 705(2) and 709(c)) 

Community rehabilitation program 

means a program that provides directly, 

or facilitates providing, one or more of 

the following vocational rehabilitation 

services to individuals with disabilities 

to enable them to maximize their 

opportunities for employment, 

including career advancement— 

(1) Medical, psychiatric, 

psychological, social, and vocational 

services that are provided under one 

management; 

(2) Testing, fitting, or training in the 

use of prosthetic and orthotic devices; 

(3) Recreational therapy; 

(4) Physical and occupational therapy; 

(5) Speech, language, and hearing 

therapy; 

(6) Psychiatric, psychological, and 

social services, including positive 

behavior management; 

(7) Assessment for determining 

eligibility and vocational rehabilitation 

needs; 

(8) Rehabilitation technology; 

(9) Job development, placement, and 

retention services; 

(10) Evaluation or control of specific 

disabilities; 

(11) Orientation and mobility services 

for individuals who are blind; 

(12) Extended employment; 

(13) Psychosocial rehabilitation 

services; 

(14) Supported employment services 

and extended services; 

(15) Customized employment; 

(16) Services to family members if 

necessary to enable the applicant or 

eligible individual to achieve an 

employment outcome; 

(17) Personal assistance services; or 

(18) Services similar to the services 

described in paragraphs (1) through (17) 

of this definition. 

(Authority: Sections 7(4) and 12(c) of the 

Rehabilitation Act of 1973, as amended, 29 

U.S.C. 705(4) and 709(c)) 

Comparable services and benefits 

means— 

(1) Services and benefits, including 

auxiliary aids and services, that are— 

(i) Provided or paid for, in whole or 

in part, by other Federal, State, or local 

public agencies, by health insurance, or 

by employee benefits; 

(ii) Available to the individual at the 

time needed to ensure the progress of 

the individual toward achieving the 

employment outcome in the 

individual’s individualized plan for 

employment; and 

(iii) Commensurate to the services 

that the individual would otherwise 

receive from the Tribal Vocational 

Rehabilitation unit. 

(2) For the purposes of this definition, 

comparable benefits do not include 

awards and scholarships based on merit. 

(Authority: Sections 12(c) and 101(a)(8)(A) of 

the Rehabilitation Act of 1973, as amended, 

29 U.S.C. 709(c) and 721(a)(8)(A)) 

Competitive integrated employment 

means work— 

(1) That is performed on a full-time or 

part-time basis (including selfemployment); and for which an 

individual is compensated at a rate 

that— 

(i) Shall not be less than the higher of 

the rate specified in section 6(a)(1) of 

the Fair Labor Standards Act of 1938 (29 

U.S.C. 206(a)(1)), or the rate specified in 

the applicable State or local minimum 

wage law; and 

(ii) Is not less than the customary rate 

paid by the employer for the same or 

similar work performed by other 

employees who are not individuals with 

disabilities, and who are similarly 

situated in similar occupations by the 

same employer and who have similar 

training, experience, and skills; or 

(iii) In the case of an individual who 

is self-employed, yields an income that 

is comparable to the income received by 

other individuals who are not 

individuals with disabilities, and who 

are self-employed in similar 

occupations or on similar tasks and who 


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have similar training, experience, and 

skills; and 

(iv) Is eligible for the level of benefits 

provided to other employees; and 

(2) That is at a location typically 

found in the community and where the 

employee with a disability interacts for 

the purpose of performing the duties of 

the position with other employees 

within the particular work unit, 

employees within the entire work site, 

and, as appropriate to the work 

performed, other persons (e.g., 

customers and vendors), who are not 

individuals with disabilities (not 

including supervisory personnel or 

individuals who are providing services 

to such employee) to the same extent 

that employees who are not individuals 

with disabilities and who are in 

comparable positions interact with these 

persons; and 

(3) That, as appropriate, presents 

opportunities for advancement that are 

similar to those for other employees 

who are not individuals with 

disabilities and who have similar 

positions. 

(Authority: Sections 7(5) and 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(5) and 709(c)) 

Consortium means two or more 

eligible governing bodies of Indian 

tribes that apply for an award under this 

program by either: 

(1) Designating one governing body to 

apply for the grant; or 

(2) Establishing and designating a 

tribal organization to apply for a grant. 

(Authority: Sections 12(c) and 121 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741(a)) 

Customized employment means 

competitive integrated employment, for 

an individual with a significant 

disability, that is based on an 

individualized determination of the 

unique strengths, needs, and interests of 

the individual with a significant 

disability, is designed to meet the 

specific abilities of the individual with 

a significant disability and the business 

needs of the employer, and is carried 

out through flexible strategies, such 

as— 

(1) Job exploration by the individual; 

(2) Working with an employer to 

facilitate placement, including— 

(i) Customizing a job description 

based on current employer needs or on 

previously unidentified and unmet 

employer needs; and 

(ii) Developing a set of job duties, a 

work schedule and job arrangement, and 

specifics of supervision (including 

performance evaluation and review), 

and determining a job location; 

(3) Representation by a professional 

chosen by the individual, or selfrepresentation of the individual, in 

working with an employer to facilitate 

placement; and 

(4) Providing services and supports at 

the job location. 

(Authority: Sections 7(7) and 12(c) of the 

Rehabilitation Act of 1973, as amended, 29 

U.S.C. 705(7) and 709(c)) 

Eligible individual means an 

applicant for vocational rehabilitation 

services who meets the eligibility 

requirements of Section 102(a)(1) of the 

Act. 

(Authority: Sections 7(20)(A), 12(c), and 

102(a)(1) of the Rehabilitation Act of 1973, as 

amended, 29 U.S.C. 705(20)(A), 709(c), and 

722) 

Employment outcome means, with 

respect to an individual, entering, 

advancing or retaining full-time or, if 

appropriate, part-time competitive 

integrated employment, including 

customized employment, selfemployment, telecommuting, business 

ownership, or supported employment, 

that is consistent with an individual’s 

unique strengths, resources, priorities, 

concerns, abilities, capabilities, 

interests, and informed choice. 

(Authority: Sections 7(11) and 12(c) of the 

Rehabilitation Act of 1973, as amended, 29 

U.S.C. 705(11), and 709(c)) 

Family member for the purposes of 

receiving vocational rehabilitation 

services means an individual— 

(1) Who either— 

(i) Is a relative or guardian of an 

applicant or eligible individual; or 

(ii) Lives in the same household as an 

applicant or eligible individual; 

(2) Who has a substantial interest in 

the well-being of that individual; and 

(3) Whose receipt of vocational 

rehabilitation services is necessary to 

enable the applicant or eligible 

individual to achieve an employment 

outcome. 

(Authority: Sections 12(c) and 103(a)(19) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 723(a)(19)) 

Governing bodies of Indian tribes 

means those duly elected or appointed 

representatives of an Indian tribe or of 

an Alaskan native village. These 

representatives must have the authority 

to enter into contracts, agreements, and 

grants on behalf of their constituency. 

(Authority: Sections 12(c) and 121(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741(a)) 

Indian; American Indian; Indian 

American; Indian tribe means— 

(1) Indian, American Indian, and 

Indian American mean an individual 

who is a member of an Indian tribe and 

includes a Native and a descendant of 

a Native, as such terms are defined in 

subsections (b) and (r) of section 3 of the 

Alaska Native Claims Settlement Act (43 

U.S.C. 1602). 

(2) 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) and a 

tribal organization (as defined in section 

4(1) of the Indian Self-Determination 

and Education Assistance Act (25 U.S.C. 

450(b)(1)) and this section. 

(Authority: Section 7(19) of the 

Rehabilitation Act of 1973, as amended, 29 

U.S.C. 705(19)) 

Individual with a disability means— 

In general any individual who— 

(1) Who has a physical or mental 

impairment; 

(2) Whose impairment constitutes or 

results in a substantial impediment to 

employment; and 

(3) Who can benefit in terms of an 

employment outcome from the 

provision of vocational rehabilitation 

services. 

(Authority: Section 7(20)(A) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(20)(A)) 

Individual with a significant disability 

means— 

In general an individual with a 

disability— 

(1) Who has a severe physical or 

mental impairment that 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; 

(2) Whose vocational rehabilitation 

can be expected to require multiple 

vocational rehabilitation services over 

an extended period of time; and 

(3) 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, 

intellectual disability, mental illness, 

multiple sclerosis, muscular dystrophy, 

musculo-skeletal disorders, neurological 

disorders (including stroke and 

epilepsy), spinal cord conditions 

(including paraplegia and quadriplegia), 

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 to 


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cause comparable substantial functional 

limitation. 

(Authority: Section 7(21) of the 

Rehabilitation Act of 1973, as amended, 29 

U.S.C. 705(21)) 

Maintenance means monetary support 

provided to an individual for expenses, 

such as food, shelter, and clothing, that 

are in excess of the normal expenses of 

the individual and that are necessitated 

by the individual’s participation in an 

assessment for determining eligibility 

and vocational rehabilitation needs or 

the individual’s receipt of vocational 

rehabilitation services under an 

individualized plan for employment. 

(Authority: Sections 12(c) and 103(a)(7) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 723(a)(7)) 

Examples: The following are 

examples of expenses that would meet 

the definition of maintenance. The 

examples are illustrative, do not address 

all possible circumstances, and are not 

intended to substitute for individual 

counselor judgment. 

Example 1: The cost of a uniform or 

other suitable clothing that is required 

for an individual’s job placement or jobseeking activities. 

Example 2: The cost of short-term 

shelter that is required in order for an 

individual to participate in assessment 

activities or vocational training at a site 

that is not within commuting distance 

of an individual’s home. 

Example 3: The initial one-time costs, 

such as a security deposit or charges for 

the initiation of utilities, that are 

required in order for an individual to 

relocate for a job placement. 

Physical and mental restoration 

services means— 

(1) Corrective surgery or therapeutic 

treatment that is likely, within a 

reasonable period of time, to correct or 

modify substantially a stable or slowly 

progressive physical or mental 

impairment that constitutes a 

substantial impediment to employment; 

(2) Diagnosis of and treatment for 

mental or emotional disorders by 

qualified personnel in accordance with 

State licensure laws; 

(3) Dentistry; 

(4) Nursing services; 

(5) Necessary hospitalization (either 

inpatient or outpatient care) in 

connection with surgery or treatment 

and clinic services; 

(6) Drugs and supplies; 

(7) Prosthetic and orthotic devices; 

(8) Eyeglasses and visual services, 

including visual training, and the 

examination and services necessary for 

the prescription and provision of 

eyeglasses, contact lenses, microscopic 

lenses, telescopic lenses, and other 

special visual aids prescribed by 

personnel that are qualified in 

accordance with State licensure laws; 

(9) Podiatry; 

(10) Physical therapy; 

(11) Occupational therapy; 

(12) Speech or hearing therapy; 

(13) Mental health services; 

(14) Treatment of either acute or 

chronic medical complications and 

emergencies that are associated with or 

arise out of the provision of physical 

and mental restoration services, or that 

are inherent in the condition under 

treatment; 

(15) Special services for the treatment 

of individuals with end-stage renal 

disease, including transplantation, 

dialysis, artificial kidneys, and supplies; 

and 

(16) Other medical or medically 

related rehabilitation services. 

(17) Services reflecting the cultural 

background of the American Indian 

being served, including treatment 

provided by native healing practitioners 

in accordance with 34 CFR 371.41(a)(2). 

(Authority: Sections 12(c), 103(a)(6), and 

121(b)(1)(B) of the Rehabilitation Act of 1973, 

as amended; 29 U.S.C. 709(c), 723(a)(6), and 

741(b)(1)(B)) 

Physical or mental impairment 

means— 

(1) Any physiological disorder or 

condition, cosmetic disfigurement, or 

anatomical loss affecting one or more of 

the following body systems: 

Neurological, musculo-skeletal, special 

sense organs, respiratory (including 

speech organs), cardiovascular, 

reproductive, digestive, genitourinary, 

hemic and lymphatic, skin, and 

endocrine; or 

(2) Any mental or psychological 

disorder such as intellectual or 

developmental disability, organic brain 

syndrome, emotional or mental illness, 

and specific learning disabilities. 

(Authority: Sections 7(20)(A) and 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(20)(A) and 709(c)) 

Post-employment services means one 

or more of the services that are provided 

subsequent to the achievement of an 

employment outcome and that are 

necessary for an individual to maintain, 

regain, or advance in employment, 

consistent with the individual’s unique 

strengths, resources, priorities, 

concerns, abilities, capabilities, 

interests, and informed choice. 

(Authority: Sections 12(c) and 103(a)(18) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c)) and 723(a)(18)) 

Note to definition of post-employment 

services: Post-employment services are 

intended to ensure that the employment 

outcome remains consistent with the 

individual’s unique strengths, resources, 

priorities, concerns, abilities, capabilities, 

interests, and informed choice. These 

services are available to meet rehabilitation 

needs that do not require a complex and 

comprehensive provision of services and, 

thus, should be limited in scope and 

duration. If more comprehensive services are 

required, then a new rehabilitation effort 

should be considered. Post-employment 

services are to be provided under an 

amended individualized plan for 

employment; thus, a re-determination of 

eligibility is not required. The provision of 

post-employment services is subject to the 

same requirements in this part as the 

provision of any other vocational 

rehabilitation service. Post-employment 

services are available to assist an individual 

to maintain employment, e.g., the 

individual’s employment is jeopardized 

because of conflicts with supervisors or coworkers, and the individual needs mental 

health services and counseling to maintain 

the employment; or the individual requires 

assistive technology to maintain the 

employment; to regain employment, e.g., the 

individual’s job is eliminated through 

reorganization and new placement services 

are needed; and to advance in employment, 

e.g., the employment is no longer consistent 

with the individual’s unique strengths, 

resources, priorities, concerns, abilities, 

capabilities, interests, and informed choice. 

Representatives of the Tribal 

Vocational Rehabilitation program 

means, consistent with 34 CFR 

371.21(b), those individuals specifically 

responsible for determining eligibility, 

the nature and scope of vocational 

rehabilitation services, and the 

provision of those services. 

(Authority: Sections 12(c) and 121(b)(1)(D) of 

the Rehabilitation Act of 1973, as amended, 

29 U.S.C. 709(c) and 741(b)(1)(D)) 

Reservation means a Federal or State 

Indian reservation, public domain 

Indian allotment, former Indian 

reservation in Oklahoma, land held by 

incorporated Native groups, regional 

corporations and village corporations 

under the provisions of the Alaska 

Native Claims Settlement Act; or a 

defined area of land recognized by a 

State or the Federal Government where 

there is a concentration of tribal 

members and on which the tribal 

government is providing structured 

activities and services. 

(Authority: Sections 12(c) and 121(e) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741(e)) 

Subsistence means a form of selfemployment in which individuals 

produce, using culturally relevant and 

traditional methods, goods or services 

that are predominantly consumed by 

their own household or used for 

noncommercial customary trade or 

barter and that constitute an important 

basis for the worker’s livelihood. 


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(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

Substantial impediment to 

employment means that a physical or 

mental impairment (in light of attendant 

medical, psychological, vocational, 

educational, communication, and other 

related factors) hinders an individual 

from preparing for, entering into, 

engaging in, advancing in or retaining 

employment consistent with the 

individual’s abilities and capabilities. 

(Authority: Sections 7(20)(A) and 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(20)(A) and 709(c)) 

Supported employment means 

(1) Competitive integrated 

employment, including customized 

employment, or employment in an 

integrated work setting in which an 

individual with a most significant 

disability is working on a short-term 

basis toward competitive integrated 

employment that is individualized and 

customized, consistent with the unique 

strengths, abilities, interests, and 

informed choice of the individual, 

including with ongoing support services 

for individuals with the most significant 

disabilities— 

(i) For whom competitive integrated 

employment has not historically 

occurred, or for whom competitive 

integrated 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 and extended services after the 

transition from support provided by the 

Tribal Vocational Rehabilitation Unit, in 

order to perform this work; or 

(2) Transitional employment for 

individuals with the most significant 

disabilities due to mental illness. 

(3) Short-term basis. For purposes of 

this part, an individual with the most 

significant disabilities, whose supported 

employment in an integrated setting 

does not satisfy the criteria of 

competitive integrated employment, is 

considered to be working on a shortterm basis toward competitive 

integrated employment so long as the 

individual can reasonably anticipate 

achieving competitive integrated 

employment within six months of 

achieving an employment outcome of 

supported employment. 

(Authority: Sections 7(38) and 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(38) and 709(c)) 

Supported employment services 

means ongoing support services, 

including customized employment, and 

other appropriate services needed to 

support and maintain an individual 

with a most significant disability in 

supported employment that are 

provided by the Tribal Vocational 

Rehabilitation Unit— 

(1) Singly or in combination and are 

organized and made available in such a 

way as to assist an eligible individual to 

achieve competitive integrated 

employment; 

(2) Based on a determination of the 

needs of an eligible individual, as 

specified in an individualized plan for 

employment; 

(3) For a period of time not to exceed 

24 months, unless under special 

circumstances the eligible individual 

and the rehabilitation counselor or 

coordinator jointly agree to extend the 

time to achieve the employment 

outcome identified in the 

individualized plan for employment; 

and 

(4) Following transition, as postemployment services that are 

unavailable from an extended services 

provider and that are necessary to 

maintain or regain the job placement or 

advance in employment. 

(Authority: Sections 7(39) and 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(39) and 709(c)) 

Transition services means a 

coordinated set of activities for an 

individual with a disability 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 must be 

based upon the individual student’s 

needs, taking into account the student’s 

preferences and interests, and must 

include instruction, community 

experiences, the development of 

employment and other post-school adult 

living objectives, and, if appropriate, 

acquisition of daily living skills and 

functional vocational evaluation. 

Transition services must promote or 

facilitate the achievement of the 

employment outcome identified in the 

student’s individualized plan for 

employment. 

(Authority: Sections 12(c), 103(a)(15), and 

(b)(7) of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 723(a)(15), and 

(b)(7)) 

Transportation means travel and 

related expenses that are necessary to 

enable an applicant or eligible 

individual to participate in a vocational 

rehabilitation service, including 

expenses for training in the use of 

public transportation vehicles and 

systems. 

(Authority: Sections 12(c) and 103(a)(8) of 

the Rehabilitation Act of 1973, as amended, 

29 U.S.C. 709(c) and 723(a)(8)) 

Tribal organization means the 

recognized governing body of any 

Indian tribe or any legally established 

organization of Indians which is 

controlled, sanctioned, or chartered by 

such governing body or which is 

democratically elected by the adult 

members of the Indian community to be 

served by such organization and which 

includes the maximum participation of 

Indians in all phases of its activities. 

(Authority: Sections 7(19) and 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(19) and 709(c); Section 4 of the 

Indian Self-Determination and Education 

Assistance Act, 25 U.S.C. 450(b)) 

Tribal Vocational Rehabilitation 

program means the unit designated by 

the governing bodies of an Indian Tribe, 

or consortia of governing bodies, to 

implement and administer the grant 

under this program in accordance with 

the purpose of the grant and all 

applicable programmatic and fiscal 

requirements. 

(Authority: Sections 12(c) and 121(b)(1) of 

the Rehabilitation Act of 1973, as amended, 

29 U.S.C. 709(c) and 741(b)(1)) 

Vocational Rehabilitation Services for 

Individuals means any services 

described in an individualized plan for 

employment necessary to assist an 

individual with a disability in preparing 

for, securing, retaining, advancing in or 

regaining an employment outcome that 

is consistent with the unique strengths, 

resources, priorities, concerns, abilities, 

capabilities, interests, and informed 

choice of the individual, including, but 

not limited to— 

(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) Vocational rehabilitation 

counseling and guidance, including 

information and support services to 

assist an individual in exercising 

informed choice. 

(3) Referral and other services 

necessary to assist applicants and 

eligible individuals to secure needed 

services from other agencies and to 

advise those individuals about client 

assistance programs established under 

34 CFR part 370. 

(4) Physical and mental restoration 

services, to the extent that financial 

support is not readily available from a 


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source other than the Tribal Vocational 

Rehabilitation unit (such as through 

health insurance or a comparable 

service or benefit. 

(5) Vocational and other training 

services, including personal and 

vocational adjustment training, 

advanced training in science, 

technology, engineering, or mathematics 

(including computer science) field, 

medicine, law or business; books, tools, 

and other training materials, except that 

no training or training services in an 

institution of higher education 

(universities, colleges, community or 

junior colleges, vocational schools, 

technical institutes, or hospital schools 

of nursing) may be paid for with funds 

under this part unless maximum efforts 

have been made by the Tribal 

Vocational Rehabilitation unit and the 

individual to secure grant assistance in 

whole or in part from other sources to 

pay for that training. 

(6) Maintenance. 

(7) Transportation in connection with 

the rendering of any vocational 

rehabilitation service. 

(8) Vocational rehabilitation services 

to family members of an applicant or 

eligible individual if necessary to enable 

the applicant or eligible individual to 

achieve an employment outcome. 

(9) Interpreter services, including sign 

language and oral interpreter services, 

for individuals who are deaf or hard of 

hearing and tactile interpreting services 

for individuals who are deaf-blind 

provided by qualified personnel. 

(10) Reader services, rehabilitation 

teaching services, and orientation and 

mobility services for individuals who 

are blind. 

(11) Job-related services, including job 

search and placement assistance, job 

retention services, follow-up services, 

and follow-along services. 

(12) Supported employment services. 

(13) Personal assistance services. 

(14) Post-employment services. 

(15) Occupational licenses, tools, 

equipment, initial stocks, and supplies. 

(16) Rehabilitation technology, 

including vehicular modification, 

telecommunications, sensory, and other 

technological aids and devices. 

(17) Transition services for students 

with disabilities that facilitate the 

transition from school to postsecondary 

life, such as achievement of an 

employment outcome in competitive 

integrated employment. 

(18) Technical assistance and other 

consultation services to conduct market 

analyses, develop business plans, and 

otherwise provide resources to eligible 

individuals who are pursuing selfemployment or telecommuting or 

establishing a small business operation 

as an employment outcome. 

(19) Customized employment. 

(20) Other goods and services 

determined necessary for the individual 

with a disability to achieve an 

employment outcome. 

Vocational Rehabilitation Services for 

Groups of Individuals 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 under the 

supervision of the Tribal Vocational 

Rehabilitation unit, management 

services and supervision provided by 

the Tribal Vocational Rehabilitation 

unit, along with the acquisition by the 

Tribal Vocational Rehabilitation unit of 

vending facilities or other equipment 

and initial stocks and supplies in 

accordance with the following 

requirements: 

(i) Management services and 

supervision includes inspection, quality 

control, consultation, accounting, 

regulating, in-service training, and 

related services provided on a 

systematic basis to support and improve 

small business enterprises operated by 

individuals with significant disabilities. 

Management services and supervision 

may be provided throughout the 

operation of the small business 

enterprise. 

(ii) Initial stocks and supplies include 

those items necessary to the 

establishment of a new business 

enterprise during the initial 

establishment period, which may not 

exceed 6 months. 

(iii) Costs of establishing a small 

business enterprise may include 

operational costs during the initial 

establishment period, which may not 

exceed six months. 

(iv) If the Tribal Vocational 

Rehabilitation unit provides for these 

services, it must ensure that only 

individuals with significant disabilities 

will be selected to participate in this 

supervised program. 

(v) If the Tribal Vocational 

Rehabilitation unit provides for these 

services and chooses to set aside funds 

from the proceeds of the operation of 

the small business enterprises, the 

Tribal Vocational Rehabilitation unit 

must maintain a description of the 

methods used in setting aside funds and 

the purposes for which funds are set 

aside. Funds may be used only for small 

business enterprises purposes, and 

benefits that are provided to operators 

from set-aside funds must be provided 

on an equitable basis. 

(2) 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 

described in this section that promote 

integration into the community and that 

prepare individuals with disabilities for 

competitive integrated employment, 

including supported employment and 

customized employment. Examples of 

‘‘special circumstances’’ include the 

destruction by natural disaster of the 

only available center serving an area or 

a Tribal Vocational Rehabilitation unit 

determination that construction is 

necessary in a rural area because no 

other public agencies or private 

nonprofit organizations are currently 

able to provide vocational rehabilitation 

services to individuals. 

(3) The use of telecommunications 

systems (including telephone, 

television, video description services, 

satellite, radio, tactile-vibratory devices, 

and other similar systems) that have the 

potential for substantially improving 

vocational rehabilitation service 

delivery methods and developing 

appropriate programming to meet the 

particular needs of individuals with 

disabilities. 

(4)(i) 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; captioned television, films, or 

video cassettes for individuals who are 

deaf or hard of hearing; tactile materials 

for individuals who are deaf-blind; and 

other special services that provide 

information through tactile, vibratory, 

auditory, and visual media. 

(5) Technical assistance to businesses 

that are seeking to employ individuals 

with disabilities. 

(6) Consultation and technical 

assistance services to assist State 

educational agencies and local 

educational agencies in planning for the 

transition of students with disabilities 

from school to postsecondary life, 

including employment. 

(7) Transition services to youth with 

disabilities and students with 

disabilities, for which a vocational 

rehabilitation counselor works in 

concert with educational agencies, 

providers of job training programs, 

providers of services under the 

Medicaid program under title XIX of the 

Social Security Act (42 U.S.C. 1396 et 

seq.), entities designated by the Tribal 

Vocational Rehabilitation unit to 

provide services for individuals with 

developmental disabilities, centers for 

independent living (as defined in 


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section 702 of the Act), housing and 

transportation authorities, workforce 

development systems, and businesses 

and employers. These specific transition 

services are to benefit a group of 

students with disabilities or youth with 

disabilities and are not individualized 

services directly related to an IPE goal. 

Services may include, but are not 

limited to group tours of universities 

and vocational training programs, 

employer or business site visits to learn 

about career opportunities, career fairs 

coordinated with workforce 

development and employers to facilitate 

mock interviews and resume writing, 

and other general services applicable to 

groups of students with disabilities and 

youth with disabilities. 

(8) The establishment, development, 

or improvement of assistive technology 

demonstration, loan, reutilization, or 

financing programs in coordination with 

activities authorized under the Assistive 

Technology Act of 1998 (29 U.S.C. 3001 

et seq.) to promote access to assistive 

technology for individuals with 

disabilities and employers. 

(9) Support (including, as appropriate, 

tuition) for advanced training in a 

science, technology, engineering, or 

mathematics (including computer 

science) field, medicine, law, or 

business, provided after an individual 

eligible to receive services under this 

title, demonstrates 

(i) Such eligibility; 

(ii) Previous completion of a 

bachelor’s degree program at an 

institution of higher education or 

scheduled completion of such degree 

program prior to matriculating in the 

program for which the individual 

proposes to use the support; and 

(iii) Acceptance by a program at an 

institution of higher education in the 

United States that confers a master’s 

degree in a science, technology, 

engineering, or mathematics (including 

computer science) field, a juris doctor 

degree, a master of business 

administration degree, or a doctor of 

medicine degree, except that no training 

provided at an institution of higher 

education shall be paid for with funds 

under this program unless maximum 

efforts have been made by the Tribal 

Vocational Rehabilitation unit and the 

individual to secure grant assistance, in 

whole or in part, from other sources to 

pay for such training. Nothing in this 

paragraph shall prevent any Tribal 

Vocational Rehabilitation unit from 

providing similar support to individuals 

with disabilities pursuant to their 

approved IPEs who are eligible to 

receive support under this program and 

who are not served under this 

paragraph. 

(Authority: Sections 12(c) and 103(a) and (b) 

of the Rehabilitation Act of 1973, as 

amended, 29 U.S.C. 709(c) and 723(a) and 

(b)) 

Subpart B—Training and Technical 

Assistance 

§ 371.10 What are the requirements for 

funding training and technical assistance 

under this chapter? 

The Secretary shall first reserve not 

less than 1.8 percent and not more than 

2 percent of funds appropriated and 

made available to carry out this program 

to provide training and technical 

assistance to the governing bodies of 

Indian tribes and consortia of those 

governing bodies awarded a grant under 

this program. 

(Authority: Sections 12(c) and Section 121(c) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 741(c)) 

§ 371.11 How does the Secretary use these 

funds to provide training and technical 

assistance? 

(a) The Secretary uses these funds to 

make grants to, or enter into contracts or 

other cooperative agreements with, 

entities that have staff with experience 

in the operation of vocational 

rehabilitation services programs under 

this part. 

(b) An entity receiving assistance in 

accordance with paragraph (a) of this 

section shall provide training and 

technical assistance with respect to 

developing, conducting, administering, 

and evaluating tribal vocational 

rehabilitation programs funded under 

this part. 

(Authority: Sections 12(c) and Section 121(c) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 741(c)) 

§ 371.12 How does the Secretary make an 

award? 

(a) To be eligible to receive a grant or 

enter into a contract or cooperative 

agreement under section 121(c) of the 

Act and this subpart, an applicant shall 

submit an application to the Secretary at 

such time, in such manner, and 

containing a proposal to provide such 

training and technical assistance, and 

any additional information as the 

Secretary may require. 

(b) The Secretary shall provide for 

peer review of applications by panels 

that include persons who are not 

Federal or State government employees 

and who have experience in the 

operation of vocational rehabilitation 

services programs under this part. 

(Authority: Sections 12(c) and Section 121(c) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 741(c)) 

§ 371.13 How does the Secretary 

determine funding priorities? 

The Secretary shall conduct a survey 

of the governing bodies of Indian tribes 

funded under this part regarding 

training and technical assistance needs 

in order to determine funding priorities 

for such training and technical 

assistance. 

(Authority: Sections 12(c) and Section 121(c) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 741(c)) 

§ 371.14 How does the Secretary evaluate 

an application? 

(a) The Secretary evaluates each 

application for a grant, cooperative 

agreement or contract under this subpart 

on the basis of the selection criteria 

chosen from the general selection 

criteria found in EDGAR regulations at 

34 CFR 75.210. 

(b) The Secretary may award a 

competitive preference consistent with 

34 CFR 75.102(c)(2) to applications that 

include as project personnel in a 

substantive role, individuals that have 

been employed as a project director or 

VR counselor by a Tribal Vocational 

Rehabilitation unit funded under this 

part. 

(c) If the Secretary uses a contract to 

award funds under this subpart, the 

application process will be conducted 

and the subsequent award will be made 

in accordance with 34 CFR part 75. 

(Authority: Sections 12(c) and Section 121(c) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 741(c)) 

Subpart C—How Does One Apply for a 

Grant? 

§ 371.20 What are the application 

procedures for this program? 

(a) In the development of an 

application, the applicant is required to 

consult with the designated State unit 

(DSU) for the state vocational 

rehabilitation program in the State or 

States in which vocational rehabilitation 

services are to be provided. 

(b) The procedures for the review and 

comment by the DSU or the DSUs of the 

State or States in which vocational 

rehabilitation services are to be 

provided on applications submitted 

from within the State that the DSU or 

DSUs serve are in 34 CFR 75.155– 

75.159. 

(Authority: Sections 12(c) and 121(b)(1)(C) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(1)(C)) 

§ 371.21 What are the special application 

requirements related to the projects funded 

under this part? 

Each applicant under this program 

must provide evidence that— 


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(a) Effort will be made to provide a 

broad scope of vocational rehabilitation 

services in a manner and at a level of 

quality at least comparable to those 

services provided by the designated 

State unit. 

(Authority: Sections 12(c) and 121(b)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(1)(B)) 

(b) All decisions affecting eligibility 

for vocational rehabilitation services, 

the nature and scope of available 

vocational rehabilitation services and 

the provision of such services will be 

made by a representative of the tribal 

vocational rehabilitation program 

funded through this grant and such 

decisions will not be delegated to 

another agency or individual. 

(Authority: Sections 12(c) and 121(b)(1)(D) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(1)(D)) 

(c) Priority in the delivery of 

vocational rehabilitation services will be 

given to those American Indians with 

disabilities who are the most 

significantly disabled. 

(Authority: Sections 12(c) and 101(a)(5) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 721(a)(5)) 

(d) An order of selection of 

individuals with disabilities to be 

served under the program will be 

specified if services cannot be provided 

to all eligible American Indians with 

disabilities who apply. 

(Authority: Sections 12(c) and 101(a)(5) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709 (c) and 721(a)(5)) 

(e) All vocational rehabilitation 

services will be provided according to 

an individualized plan for employment 

which has been developed jointly by the 

representative of the tribal vocational 

rehabilitation program and each 

American Indian with disabilities being 

served. 

(Authority: Sections 12(c) and 101(a)(9) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 721 (a)(9)) 

(f) American Indians with disabilities 

living on or near Federal or State 

reservations where tribal vocational 

rehabilitation service programs are 

being carried out under this part will 

have an opportunity to participate in 

matters of general policy development 

and implementation affecting vocational 

rehabilitation service delivery by the 

tribal vocational rehabilitation program. 

(Authority: Sections 12(c) and 101(a)(16) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 721(a)(16)) 

(g) Cooperative working arrangements 

will be developed with the DSU, or 

DSUs, as appropriate, which are 

providing vocational rehabilitation 

services to other individuals with 

disabilities who reside in the State or 

States being served. 

(Authority: Sections 12(c) and 101(a)(11)(F) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 721(a)(11)(F)) 

(h) Any comparable services and 

benefits available to American Indians 

with disabilities under any other 

program, which might meet in whole or 

in part the cost of any vocational 

rehabilitation service, will be fully 

considered in the provision of 

vocational rehabilitation services. 

(Authority: Sections 12(c) and 101(a)(8) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 721(a)(8)) 

(i) Any American Indian with 

disabilities who is an applicant or 

recipient of services, and who is 

dissatisfied with a determination made 

by a representative of the tribal 

vocational rehabilitation program and 

files a request for a review, will be 

afforded a review under procedures 

developed by the grantee comparable to 

those under the provisions of section 

102(c)(1)–(5) and (7) of the Act. 

(Authority: Sections 12(c) and 102(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 722(c)(1)–(5) and (7)) 

(j) The tribal vocational rehabilitation 

program funded under this part must 

assure that any facility used in 

connection with the delivery of 

vocational rehabilitation services meets 

program accessibility requirements 

consistent with the requirements, as 

applicable, of the Architectural Barriers 

Act of 1968, the Americans with 

Disabilities Act of 1990, section 504 of 

the Act, and the regulations 

implementing these laws. 

(Authority: Sections 12(c) and 101(a)(6)(C) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 721(a)(6)(C)) 

(k) The tribal vocational rehabilitation 

program funded under this part must 

ensure that providers of vocational 

rehabilitation services are able to 

communicate in the native language of, 

or by using an appropriate mode of 

communication with, applicants and 

eligible individuals who have limited 

English speaking ability, unless it is 

clearly not feasible to do so. 

(Authority: Sections 12(c) and 101(a)(6)(A) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 721(a)(6)(A)) 

Subpart D—How Does the Secretary 

Make a Grant? 

§ 371.31 How are grants awarded? 

To the extent that funds have been 

appropriated under this program, the 

Secretary approves all applications 

which meet acceptable standards of 

program quality. If any application is 

not approved because of deficiencies in 

proposed program standards, the 

Secretary provides technical assistance 

to the applicant Indian tribe with 

respect to any areas of the proposal 

which were judged to be deficient. 

(Authority: Sections 12(c) and 121(b)(1)(A) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(1)(A)) 

§ 371.32 What other factors does the 

Secretary consider in reviewing an 

application? 

In addition to the selection criteria 

used in accordance with the procedures 

in 34 CFR part 75, the Secretary, in 

making an award under this program, 

considers the past performance of the 

applicant in carrying out similar 

activities under previously awarded 

grants, as indicated by such factors as 

compliance with grant conditions, 

soundness of programmatic and 

financial management practices and 

attainment of established project 

objectives. 

(Authority: Sections 12(c) and 121(b)(1)(A) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(1)(A)) 

Subpart E—What Conditions Apply to 

a Grantee Under this Program? 

§ 371.40 What are the matching 

requirements? 

(a) Federal share Except as provided 

in paragraph (c) of this section, the 

Federal share may not be more than 90 

percent of the total cost of the project. 

(b) Non-Federal share The nonFederal share of the cost of the project 

may be in cash or in kind, fairly valued 

pursuant to match requirements in 2 

CFR 200.306. 

(c) Waiver of non-Federal share In 

order to carry out the purposes of the 

program, the Secretary may waive the 

non-Federal share requirement, in part 

or in whole, only if the applicant 

demonstrates that it does not have 

sufficient resources to contribute the 

non-Federal share of the cost of the 

project. 

(Authority: Sections 12(c) and 121(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741(a)) 

§ 371.41 What are allowable costs? 

(a) In addition to those allowable cost 

established in 2 CFR 200.400–200.475, 

the following items are allowable costs 

under this program— 

(1) Expenditures for the provision of 

vocational rehabilitation services and 

for the administration, including staff 

development, of a program of vocational 

rehabilitation services. 


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(2) Expenditures for services 

reflecting the cultural background of the 

American Indians being served, 

including treatment provided by native 

healing practitioners who are 

recognized as such by the tribal 

vocational rehabilitation program when 

the services are necessary to assist an 

individual with disabilities to achieve 

his or her vocational rehabilitation 

objective. 

(b) Expenditures may not be made 

under this program to cover the costs of 

providing vocational rehabilitation 

services to individuals with disabilities 

not residing on or near Federal or State 

reservations. 

(Authority: Sections 12(c) and 121(a) and 

(b)(1) of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 741(a) and 

(b)(1)) 

§ 371.42 How are services to be 

administered under this program? 

(a) Directly or by contract. A grantee 

under this part may provide the 

vocational rehabilitation services 

directly or it may contract or otherwise 

enter into an agreement with a DSU, a 

community rehabilitation program, or 

another agency to assist in the 

implementation of the tribal vocational 

rehabilitation program. 

(b) Inter-tribal agreement. A grantee 

under this part may enter into an intertribal arrangement with governing 

bodies of other Indian tribes for carrying 

out a project that serves more than one 

Indian tribe. 

(c) Comparable services. To the 

maximum extent feasible, services 

provided by a grantee under this part 

must be comparable to vocational 

rehabilitation services provided under 

the State vocational rehabilitation 

program to other individuals with 

disabilities residing in the State. 

(Authority: Sections 12(c) and 121(b)(1)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(1)(B)) 

§ 371.43 What other special conditions 

apply to this program? 

(a) Any American Indian with 

disabilities who is eligible for services 

under this program but who wishes to 

be provided services by the DSU must 

be referred to the DSU for such services. 

(Authority: Sec. 12(c) and 121(b)(3) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741(b)(3)) 

(b) Preference in employment in 

connection with the provision of 

vocational rehabilitation services under 

this section must be given to American 

Indians, with a special priority being 

given to American Indians with 

disabilities. 

(Authority: Sections 12(c) and 121(b)(2) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(2)) 

(c) The provisions of sections 5, 6, 7, 

and 102(a) of the Indian SelfDetermination and Education 

Assistance Act also apply under this 

program (25 U.S.C. 450c, 450d, 450e, 

and 450f(a)). These provisions relate to 

grant reporting and audit requirements, 

maintenance of records, access to 

records, availability of required reports 

and information to Indian people served 

or represented, repayment of 

unexpended Federal funds, criminal 

activities involving grants, penalties, 

wage and labor standards, preference 

requirements for American Indians in 

the conduct and administration of the 

grant, and requirements affecting 

requests of tribal organizations to enter 

into contracts. For purposes of applying 

these requirements to this program, the 

Secretary carries out those 

responsibilities assigned to the 

Secretary of Interior. 

(Authority: Sec. 12(c) and 121(b)(2) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 741(b)(2)) 

(d) The Tribal Vocational 

Rehabilitation unit must develop and 

maintain written policies regarding the 

provision of vocational rehabilitation 

services that ensure that the provision of 

services is based on the vocational 

rehabilitation needs of each individual 

as identified in that individual’s IPE and 

is consistent with the individual’s 

informed choice. The written policies 

may not establish any arbitrary limits on 

the nature and scope of vocational 

rehabilitation services to be provided to 

the individual to achieve an 

employment outcome. The policies 

must be developed in accordance with 

the following provisions: 

(1) Off-reservation services. (i) The 

Tribal Vocational Rehabilitation unit 

may establish a preference for on- or 

near-reservation services, provided that 

the preference does not effectively deny 

an individual a necessary service. If the 

individual chooses an equivalent offreservation service at a higher cost than 

an available in-State service, the Tribal 

Vocational Rehabilitation unit is not 

responsible for those costs in excess of 

the cost of the on- or near-reservation 

service, if either service would meet the 

individual’s rehabilitation needs. 

(ii) The Tribal Vocational 

Rehabilitation unit may not establish 

policies that effectively prohibit the 

provision of off-reservation services. 

(2) Payment for services (i) The Tribal 

Vocational Rehabilitation unit must 

establish and maintain written policies 

to govern the rates of payment for all 

purchased vocational rehabilitation 

services. 

(ii) The Tribal Vocational 

Rehabilitation unit may establish a fee 

schedule designed to ensure the 

program pays a reasonable cost for each 

service, as long as the fee schedule— 

(A) Is not so low as effectively to deny 

an individual a necessary service; and 

(B) permits exceptions so that 

individual needs can be addressed. 

(C) The Tribal Vocational 

Rehabilitation unit may not place 

absolute dollar limits on the amount it 

will pay for specific service categories 

or on the total services provided to an 

individual. 

(3) Duration of services (i) The Tribal 

Vocational Rehabilitation unit may 

establish reasonable time periods for the 

provision of services provided that the 

time periods— 

(A) Are not so short as effectively to 

deny an individual a necessary service; 

and 

(B) Permit exceptions so that 

individual needs can be addressed. 

(ii) The Tribal Vocational 

Rehabilitation unit may not place time 

limits on the provision of specific 

services or on the provision of services 

to an individual. The duration of each 

service needed by an individual must be 

determined on the basis of that 

individual’s needs and reflected in that 

individual’s individualized plan for 

employment. 

(4) Authorization of services. The 

Tribal Vocational Rehabilitation unit 

must establish policies related to the 

timely authorization of services. 

(Authority: Sections 12(c) and 121(b) of the 

Rehabilitation Act of 1973, as amended, 29 

U.S.C. 709(c) and 741(b)) 

(e) Informed choice. Each individual 

who is an applicant for or eligible to 

receive vocational rehabilitation 

services must be afforded the 

opportunity to exercise informed choice 

throughout the vocational rehabilitation 

process carried out under programs 

funded under this part. The Tribal 

Vocational Rehabilitation unit must 

develop and maintain written policies 

and procedures that require it— 

(1) To inform each applicant and 

eligible individual, 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; 


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(3) To develop and implement flexible 

procurement policies and methods that 

facilitate the provision of vocational 

rehabilitation services, and that afford 

eligible individuals meaningful choices 

among the methods used to procure 

vocational rehabilitation services; 

(4) To provide or assist eligible 

individuals in acquiring information 

that enables them to exercise informed 

choice in the development of their IPEs 

and selection of— 

(i) The employment outcome; 

(ii) The specific vocational 

rehabilitation services needed to 

achieve the employment outcome; 

(iii) The entity that will provide the 

services; 

(iv) The employment setting and the 

settings in which the services will be 

provided; and 

(v) The methods available for 

procuring the services; and 

(5) To ensure that the availability and 

scope of informed choice is consistent 

with the obligations of the Tribal 

Vocational Rehabilitation unit. 

(6) Information and assistance in the 

selection of vocational rehabilitation 

services and service providers. In 

assisting an applicant and eligible 

individual in exercising informed 

choice during the assessment for 

determining eligibility and vocational 

rehabilitation needs and during 

development of the IPE, the designated 

State unit must provide the individual 

or the individual’s representative, or 

assist the individual or the individual’s 

representative in acquiring, information 

necessary to make an informed choice 

about the specific vocational 

rehabilitation services, including the 

providers of those services, that are 

needed to achieve the individual’s 

employment outcome. This information 

must include, at a minimum, 

information relating to the— 

(i) Cost, accessibility, and duration of 

potential services; 

(ii) Consumer satisfaction with those 

services to the extent that information 

relating to consumer satisfaction is 

available; 

(iii) Qualifications of potential service 

providers; 

(iv) Types of services offered by the 

potential providers; 

(v) Degree to which services are 

provided in integrated settings; and 

(vi) Outcomes achieved by 

individuals working with service 

providers, to the extent that such 

information is available. 

(7) Methods or sources of information. 

In providing or assisting the individual 

or the individual’s representative in 

acquiring the information required 

under paragraph (c) of this section, the 

State unit may use, but is not limited to, 

the following methods or sources of 

information: 

(i) Lists of services and service 

providers. 

(ii) Periodic consumer satisfaction 

surveys and reports. 

(iii) Referrals to other consumers, 

consumer groups, or disability advisory 

councils qualified to discuss the 

services or service providers. 

(iv) Relevant accreditation, 

certification, or other information 

relating to the qualifications of service 

providers. 

(v) Opportunities for individuals to 

visit or experience various work and 

service provider settings. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0500) 

(Authority: Sections 12(c), 102(b)(2)(B), and 

102(d) of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 722(b)(2)(B), and 

722(d)) 

§ 371.44 What are the special 

requirements pertaining to the protection, 

use, and release of personal information? 

(a) General provisions. (1) Tribal 

Vocational Rehabilitation unit must 

adopt and implement written policies 

and procedures to safeguard the 

confidentiality of all personal 

information, including photographs and 

lists of names. These policies and 

procedures must ensure that— 

(i) Specific safeguards are established 

to protect current and stored personal 

information; 

(ii) All applicants and eligible 

individuals and, as appropriate, those 

individuals’ representatives, service 

providers, cooperating agencies, and 

interested persons are informed through 

appropriate modes of communication of 

the confidentiality of personal 

information and the conditions for 

accessing and releasing this 

information; 

(iii) All applicants or their 

representatives are informed about the 

Tribal Vocational Rehabilitation unit’s 

need to collect personal information and 

the policies governing its use, 

including— 

(A) Identification of the authority 

under which information is collected; 

(B) Explanation of the principal 

purposes for which the Tribal 

Vocational Rehabilitation unit intends 

to use or release the information; 

(C) Explanation of whether providing 

requested information to the Tribal 

Vocational Rehabilitation unit is 

mandatory or voluntary and the effects 

of not providing requested information; 

(D) Identification of those situations 

in which the Tribal Vocational 

Rehabilitation unit requires or does not 

require informed written consent of the 

individual before information may be 

released; and 

(E) Identification of other agencies to 

which information is routinely released; 

(iv) An explanation of the Tribal 

Vocational Rehabilitation unit’s policies 

and procedures affecting personal 

information will be provided to each 

individual in that individual’s native 

language or through the appropriate 

mode of communication; and 

(v) These policies and procedures 

provide no fewer protections for 

individuals than State laws and 

regulations. 

(2) The Tribal Vocational 

Rehabilitation unit may establish 

reasonable fees to cover extraordinary 

costs of duplicating records or making 

extensive searches and must establish 

policies and procedures governing 

access to records. 

(b) Tribal Vocational Rehabilitation 

Program Use. All personal information 

in the possession of the Tribal 

Vocational Rehabilitation unit must be 

used only for the purposes directly 

connected with the administration of 

the Tribal Vocational Rehabilitation 

program. Information containing 

identifiable personal information may 

not be shared with advisory or other 

bodies or other tribal agencies that do 

not have official responsibility for 

administration of the program. In the 

administration of the program, the 

Tribal Vocational Rehabilitation unit 

may obtain personal information from 

service providers and cooperating 

agencies under assurances that the 

information may not be further 

divulged, except as provided under 

paragraphs (c), (d), and (e) of this 

section. 

(c) Release to applicants and eligible 

individuals. (1) Except as provided in 

paragraphs (c)(2) and (c)(3) of this 

section, if requested in writing by an 

applicant or eligible individual, the 

Tribal Vocational Rehabilitation unit 

must make all requested information in 

that individual’s record of services 

accessible to and must release the 

information to the individual or the 

individual’s representative in a timely 

manner. 

(2) Medical, psychological, or other 

information that the Tribal Vocational 

Rehabilitation unit determines may be 

harmful to the individual may not be 

released directly to the individual, but 

must be provided to the individual 

through a third party chosen by the 

individual, which may include, among 

others, an advocate, a family member, or 

a qualified medical or mental health 

professional, unless a representative has 


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been appointed by a court to represent 

the individual, in which case the 

information must be released to the 

court-appointed representative. 

(3) If personal information has been 

obtained from another agency or 

organization, it may be released only by, 

or under the conditions established by, 

the other agency or organization. 

(4) An applicant or eligible individual 

who believes that information in the 

individual’s record of services is 

inaccurate or misleading may request 

that the Tribal Vocational Rehabilitation 

unit amend the information. If the 

information is not amended, the request 

for an amendment must be documented 

in the record of services. 

(d) Release for audit, evaluation, and 

research. Personal information may be 

released to an organization, agency, or 

individual engaged in audit, evaluation, 

or research only for purposes directly 

connected with the administration of 

the tribal vocational rehabilitation 

program or for purposes that would 

significantly improve the quality of life 

for applicants and eligible individuals 

and only if the organization, agency, or 

individual assures that— 

(1) The information will be used only 

for the purposes for which it is being 

provided; 

(2) The information will be released 

only to persons officially connected 

with the audit, evaluation, or research; 

(3) The information will not be 

released to the involved individual; 

(4) The information will be managed 

in a manner to safeguard confidentiality; 

and 

(5) The final product will not reveal 

any personal identifying information 

without the informed written consent of 

the involved individual or the 

individual’s representative. 

(e) Release to other programs or 

authorities. (1) Upon receiving the 

informed written consent of the 

individual or, if appropriate, the 

individual’s representative, the Tribal 

Vocational Rehabilitation unit may 

release personal information to another 

agency or organization for its program 

purposes only to the extent that the 

information may be released to the 

involved individual or the individual’s 

representative and only to the extent 

that the other agency or organization 

demonstrates that the information 

requested is necessary for its program. 

(2) Medical or psychological 

information that the Tribal Vocational 

Rehabilitation unit determines may be 

harmful to the individual may be 

released if the other agency or 

organization assures the Tribal 

Vocational Rehabilitation unit that the 

information will be used only for the 

purpose for which it is being provided 

and will not be further released to the 

individual. 

(3) The Tribal Vocational 

Rehabilitation unit must release 

personal information if required by 

Federal law or regulations. 

(4) The Tribal Vocational 

Rehabilitation unit must release 

personal information in response to 

investigations in connection with law 

enforcement, fraud, or abuse, unless 

expressly prohibited by Federal or State 

laws or regulations, and in response to 

an order issued by a judge, magistrate, 

or other authorized judicial officer. 

(5) The Tribal Vocational 

Rehabilitation unit also may release 

personal information in order to protect 

the individual or others if the individual 

poses a threat to his or her safety or to 

the safety of others. 

(Authority: Sections 12(c) and 121(b)(1) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 741(b)(1)) 

§ 371.45 What notice must be given about 

the Client Assistance Program (CAP)? 

The Tribal Vocational Rehabilitation 

unit shall use formats that are accessible 

to notify individuals seeking or 

receiving services under this part, or as 

appropriate, the parents, family 

members, guardians, advocates, or 

authorized representatives of those 

individuals, about— 

(a) The availability of CAP authorized 

by section 112 of the Act; 

(b) The purposes of the services 

provided under the CAP; and 

(c) How to contact the CAP. 

(Authority: Section 20 of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 717) 

■ 5. Part 373 is revised to read as 

follows: 

PART 373—SPECIAL 

DEMONSTRATION PROGRAMS 

Subpart A—General 

Sec. 

373.1 What is the purpose of the Special 

Demonstration Programs? 

373.2 Who is eligible for assistance? 

373.3 What regulations apply? 

373.4 What definitions apply? 

373.5 Who is eligible to receive services 

and to benefit from activities conducted 

by eligible entities? 

373.6 What types of projects may be 

funded? 

373.7 What are the priorities and other 

factors and requirements for 

competitions? 

Subpart B—How Does the Secretary Make 

a Grant? 

373.10 What selection criteria does the 

Secretary use? 

373.11 What other factors does the 

Secretary consider when making a grant? 

Subpart C—What Conditions Must Be Met 

By a Grantee? 

373.20 What are the matching 

requirements? 

373.21 What are the reporting 

requirements? 

373.22 What are the limitations on indirect 

costs? 

373.23 What additional requirements must 

be met? 

373.24 What are the special requirements 

pertaining to the protection, use, and 

release of personal information? 

Authority: Section 303(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 773(b), unless otherwise noted. 

Subpart A—General 

§ 373.1 What is the purpose of the Special 

Demonstration Programs? 

The purpose of this program is to 

provide competitive grants, including 

cooperative agreements, to, or enter into 

contracts with, eligible entities to 

expand and improve the provision of 

vocational rehabilitation and other 

services authorized under the 

Rehabilitation Act of 1973, as amended 

(Act), or to further the purposes and 

policies in sections 2(b) and (c) of the 

Act by supporting activities that 

increase the provision, extent, 

availability, scope, and quality of 

rehabilitation services under the Act, 

including related research and 

evaluation activities. 

(Authority: Sections 2(b) and (c), 7(40), 12(c), 

and 303(b) of the Rehabilitation Act of 1973, 

as amended; 29 U.S.C. 701(b) and (c), 

705(40), 709(c), and 773(b)) 

§ 373.2 Who is eligible for assistance? 

(a) The following types of 

organizations are eligible for assistance 

under this program: 

(1) State vocational rehabilitation 

agencies. 

(2) Community rehabilitation 

programs. 

(3) Indian tribes or tribal 

organizations. 

(4) Other public or nonprofit agencies 

or organizations, including institutions 

of higher education. 

(5) For-profit organizations, if the 

Secretary considers them to be 

appropriate. 

(6) Consortia that meet the 

requirements of 34 CFR 75.128 and 

75.129. 

(7) Other organizations identified by 

the Secretary and published in the 

Federal Register. 

(b) In competitions held under this 

program, the Secretary may limit 

competitions to one or more types of 

these organizations. 

(Authority: Sections 12(c) and 303(b)(2) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 773(b)(2)) 


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§ 373.3 What regulations apply? 

The following regulations apply to 

this program: 

(a) The Education Department General 

Administrative Regulations (EDGAR) as 

follows: 

(1) 34 CFR part 75 (Direct Grant 

Programs). 

(2) 34 CFR part 77 (Definitions that 

Apply to Department Regulations). 

(3) 34 CFR part 79 (Intergovernmental 

Review of Department of Education 

Programs and Activities). 

(4) 34 CFR part 81 (General Education 

Provisions Act—Enforcement). 

(5) 35 CFR part 82 (New Restrictions 

on Lobbying). 

(6) 34 CFR part 84 (Governmentwide 

Requirements for Drug-Free Workplace 

(Financial Assistance). 

(7) 34 CFR part 86 (Drug and Alcohol 

Abuse Prevention). 

(8) 34 CFR part 97 (Protection of 

Human Subjects). 

(9) 34 CFR part 98 (Student Rights in 

Research, Experimental Programs, and 

Testing. 

(10) 34 CFR part 99 (Family 

Educational Rights and Privacy). 

(b) The regulations in this part 373. 

(c) The regulations in 48 CFR part 31 

(Contracts Cost Principles and 

Procedures). 

(d)(1) 2 CFR part 180 

(Nonprocurement Debarment and 

Suspension), as adopted at 2 CFR part 

3485; and 

(2) 2 CFR part 200 (Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards) as adopted at 2 CFR 

part 3474. 

(Authority: Sections 12(c) and 303(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) and 773(b) 

§ 373.4 What definitions apply? 

The following definitions apply to 

this part: 

Act means the Rehabilitation Act of 

1973, as amended. 

(Authority: Section 2 of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 701 et 

seq.) 

Competitive integrated employment is 

defined in 34 CFR 361.5(c)(9). 

(Authority: Section 7(5) of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 705(5)) 

Early intervention means a service 

delivery or model demonstration 

program for adults with disabilities 

designed to begin the rehabilitation 

services as soon as possible after the 

onset or identification of actually or 

potentially disabling conditions. The 

populations served may include, but are 

not limited to, the following: 

(1) Individuals with chronic and 

progressive diseases that may become 

more disabling, such as multiple 

sclerosis, progressive visual disabilities, 

or HIV. 

(2) Individuals in the acute stages of 

injury or illness, including, but not 

limited to, diabetes, traumatic brain 

injury, stroke, burns, or amputation. 

(Authority: Sections 12(c) and 303(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 773(b)) 

Employment outcome is defined in 34 

CFR 361.5. 

(Authority: Section 7(11) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(11)) 

Individual with a disability is defined 

as follows: 

(1) For an individual who will receive 

rehabilitation services under this part, 

an individual with a disability means an 

individual— 

(i) Who has a physical or mental 

impairment which, for that individual, 

constitutes or results in a substantial 

impediment to employment; and 

(ii) Who can benefit in terms of an 

employment outcome from vocational 

rehabilitation services. 

(2) For all other purposes of this part, 

an individual with a disability means an 

individual— 

(i) Who has a physical or mental 

impairment that substantially limits one 

or more major life activities; 

(ii) Who has a record of such an 

impairment; or 

(iii) Who is regarded as having such 

an impairment. 

(3) For purposes of paragraph (b) of 

this definition, projects that carry out 

services or activities pertaining to Title 

V of the Act must also meet the 

requirements for ‘‘an individual with a 

disability’’ in section 7(20)(c) through 

(e) of the Act, as applicable. 

(Authority: Section 7(20) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(20)) 

Individual with a significant disability 

means an individual— 

(1) Who has a severe physical or 

mental impairment that 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; 

(2) Whose vocational rehabilitation 

can be expected to require multiple 

vocational rehabilitation services over 

an extended period of time; and 

(3) 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, 

intellectual disability, respiratory or 

pulmonary dysfunction, 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 disabilities, 

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 to 

cause comparable substantial functional 

limitation. 

(Authority: Section 7(21)(A) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(21)(A)) 

Informed choice means the provision 

of activities whereby individuals with 

disabilities served by projects under this 

part have the opportunity to be active, 

full partners in the rehabilitation 

process, making meaningful and 

informed choices as follows: 

(1) During assessments of eligibility 

and vocational rehabilitation needs. 

(2) In the selection of employment 

outcomes, services needed to achieve 

the outcomes, entities providing these 

services, and the methods used to 

secure these services. 

(Authority: Sections 2(c) and 12(c) of the Act 

29 U.S.C. 701(c) and 709(c)) 

Rehabilitation services means 

services, including vocational, medical, 

social, and psychological rehabilitation 

services and other services under the 

Rehabilitation Act, provided to 

individuals with disabilities in 

performing functions necessary in 

preparing for, securing, retaining, or 

regaining an employment or 

independent living outcome. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

Substantial impediment to 

employment means that a physical or 

mental impairment (in light of attendant 

medical, psychological, vocational, 

educational, and other related factors) 

hinders an individual from preparing 

for, entering into, engaging in, or 

retaining employment consistent with 

the individual’s capacities and abilities. 

(Authority: Section 5(20)(A) of the Act 29; 

U.S.C. 705(20)(A)) 

Supported employment is defined in 

34 CFR 361.5(c)(53). 

(Authority: Section 5(38) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(38)) 

Vocational Rehabilitation Services 

means services provided to an 

individual with a disability in preparing 


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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. Vocational Rehabilitation 

Services for an individual with a 

disability may include— 

(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; 

(3) Referral and other services to 

secure needed services from other 

agencies; 

(4) Job-related services, including job 

search and placement assistance, job 

retention services, follow-up 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; 

(6) Diagnosis and treatment of 

physical and mental impairments; 

(7) Maintenance for additional costs 

incurred while the individual is 

receiving services; 

(8) Transportation; 

(9) On-the-job or other related 

personal assistance services; 

(10) Interpreter and reader services; 

(11) Rehabilitation teaching services, 

and orientation and mobility services; 

(12) Occupational licenses, tools, 

equipment, and initial stocks and 

supplies; 

(13) Technical assistance and other 

consultation services to conduct market 

analysis, develop business plans, and 

otherwise provide resources to eligible 

individuals who are pursuing selfemployment 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 

individuals with disabilities that 

facilitate the achievement of 

employment outcomes; 

(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; 

(18) Post-employment services 

necessary to assist an individual with a 

disability to retain, regain, or advance in 

employment; and 

(19) Expansion of employment 

opportunities for individuals with 

disabilities, which includes, but is not 

limited to— 

(i) Self-employment, business 

ownership, and entreprenuership; 

(ii) Non-traditional jobs, professional 

employment, and work settings; 

(iii) Collaborating with employers, 

Economic Development Councils, and 

others in creating new jobs and career 

advancement options in local job 

markets through the use of job 

restructuring and other methods; and 

(iv) Other services as identified by the 

Secretary and published in the Federal 

Register. 

Youth or Young adults with 

disabilities means individuals with 

disabilities who are between the ages of 

14 and 24 inclusive when entering the 

program. 

(Authority: Section 5(42) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 705(42) 

(Authority: Sections 7(40), 12(c), and 103(a) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 705(40), 709(c) and 

723(a)) 

§ 373.5 Who is eligible to receive services 

and to benefit from activities conducted by 

eligible entities? 

(a)(1) For projects that provide 

rehabilitation services or activities to 

expand and improve the provision of 

rehabilitation services and other 

services authorized under Titles I, III, 

and VI of the Act, individuals are 

eligible who meet the definition in 

paragraph (a) of an ‘‘individual with a 

disability’’ as stated in § 373.4. 

(2) For projects that provide 

independent living services or activities, 

individuals are eligible who meet the 

definition in paragraph (b) of an 

‘‘individual with a disability’’ as stated 

in § 373.4. 

(3) For projects that provide other 

services or activities that further the 

purposes of the Act, individuals are 

eligible who meet the definition in 

paragraph (b) of an ‘‘individual with a 

disability’’ as stated in § 373.4. 

(b) By publishing a notice in the 

Federal Register, the Secretary may 

identify individuals determined to be 

eligible under one or more of the 

provisions in paragraph (a) of this 

section. 

(Authority: Sections 12(c), 103(a), and 303(b) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 723(a), and 

773(b)) 

§ 373.6 What types of projects may be 

funded? 

The Secretary may fund the following 

types of projects under this program: 

(a) Special projects of service 

delivery. 

(b) Model demonstration. 

(c) Technical assistance. 

(d) Systems change. 

(e) Special studies, research, or 

evaluations. 

(f) Dissemination and utilization. 

(Authority: Sections 12(c) and 303(b)(4) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 773(b)(4)) 

§ 373.7 What are the priorities and other 

factors and requirements for competitions? 

(a) In announcing competitions for 

grants and contracts, the Secretary gives 

priority consideration to— 

(1) Initiatives focused on improving 

transition from education, including 

postsecondary education, to 

employment, particularly in competitive 

integrated employment, for youth who 

are individuals with significant 

disabilities. 

(2) 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. 

(3) Increasing competitive integrated 

employment for individuals with 

significant disabilities. 

(b) In announcing competitions for 

grants and contracts, the Secretary may 

also identify one or more of the 

following as priorities— 

(1) Expansion of employment 

opportunities for individuals with 

disabilities, as authorized in 

paragraph(s) of the definition of 

‘‘vocational rehabilitation services’’ as 

stated in § 373.4. 

(2) System change projects to promote 

meaningful access of individuals with 

disabilities to employment-related 

services under subtitle B of title I of the 

Workforce Innovation and Opportunity 

Act and under other Federal laws. 

(3) Innovative methods of promoting 

achievement of high-quality 

employment outcomes. 

(4) The demonstration of the 

effectiveness of early intervention 

activities in improving employment 

outcomes. 

(5) Projects to find alternative 

methods of providing affordable 

transportation services to individuals 

with disabilities. 

(6) Technical assistance to designated 

State units and their personnel in 

working with employers to identify 

competitive integrated employment 

opportunities and career exploration 

opportunities in order to facilitate the 


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provision of vocational rehabilitation 

services and transition services for 

youth with disabilities and students 

with disabilities. 

(7) Consultation, training and 

technical assistance to businesses that 

have hired or are interested in hiring 

individuals with disabilities. 

(8) Technical assistance and training 

to designated State units and their 

personnel on establishment and 

maintenance of education and 

experience requirements, to ensure that 

the personnel have a 21st century 

understanding of the evolving labor 

force and the needs of individuals with 

disabilities. 

(9) Technical assistance to State 

vocational rehabilitation agencies or 

State vocational rehabilitation units to 

improve management practices that will 

improve the provision of vocational 

rehabilitation services and increase 

competitive employment outcomes for 

individuals with disabilities. 

(10) Other projects that will expand 

and improve the provision, extent, 

availability, scope, and quality of 

rehabilitation and other services under 

the Act or that further the purpose and 

policy of the Act as stated in sections 

2(b) and (c) of the Act. 

(c) In announcing competitions of 

grants and contract the Secretary may 

limit the priorities listed in paragraphs 

(a) and (b) of this section to address one 

or more of the following factors: 

(1) Age ranges. 

(2) Types of disabilities. 

(3) Types of services. 

(4) Models of service delivery. 

(5) Stages of the vocational 

rehabilitation process; 

(6) Unserved and underserved 

populations. 

(7) Unserved and underserved 

geographical areas. 

(8) Individuals with significant 

disabilities. 

(9) Low-incidence disability 

populations. 

(10) Individuals residing in federally 

designated Empowerment Zones and 

Enterprise Communities. 

(d) The Secretary may require that an 

applicant certify that the project does 

not include building upon or expanding 

activities that have previously been 

conducted or funded, for that applicant 

or in that service area. 

(e) The Secretary may require that the 

project widely disseminate the methods 

of vocational rehabilitation service 

delivery or model proven to be effective, 

so that they may be adapted, replicated, 

or purchased under fee-for-service 

arrangements by State vocational 

rehabilitation agencies and other 

disability organizations in the project’s 

targeted service area or other locations. 

(Authority: Sections 12(c), 101(a)(7)(B)(ii) 

and (11)(E), 103(b)(5), 108a, and 303(b)(5) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c), 721(a)(7)(B)(ii) and (11)(E), 

723(b)(5), 728a, and 773(b)(5)) 

Subpart B—How Does the Secretary 

Make a Grant? 

§ 373.10 What selection criteria does the 

Secretary use? 

The Secretary publishes in the 

Federal Register or includes in the 

application package the selection 

criteria for each competition under this 

program. To evaluate the applications 

for new grants under this program, the 

Secretary may use the following: 

(a) Selection criteria established 

under 34 CFR 75.209. 

(b) Selection criteria in 34 CFR 

75.210. 

(c) Any combination of selection 

criteria from paragraphs (a) and (b) of 

this section. 

(Authority: Sections 12(c) and 103(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 723(a)) 

§ 373.11 What other factors does the 

Secretary consider when making a grant? 

(a) The Secretary funds only those 

applications submitted in response to 

competitions announced in the Federal 

Register. 

(b) The Secretary may consider the 

past performance of the applicant in 

carrying out activities under previously 

awarded grants. 

(c) The Secretary awards bonus points 

if identified and published in the 

Federal Register for specific 

competitions. 

(Authority: Sections 12(c) and 103(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 723(a)) 

Subpart C—What Conditions Must Be 

Met By a Grantee? 

§ 373.20 What are the matching 

requirements? 

The Secretary may make grants to pay 

all or part of the cost of activities 

covered under this program. If the 

Secretary determines that the grantee is 

required to pay part of the costs, the 

amount of grantee participation is 

specified in the application notice, and 

the Secretary will not require grantee 

participation to be more than 10 percent 

of the total cost of the project. 

(Authority: Sections 12(c) and 303(b)(1) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 773(b)(1)) 

§ 373.21 What are the reporting 

requirements? 

(a) In addition to the program and 

fiscal reporting requirements in 34 CFR 

75.720 and 2 CFR 200.327 that are 

applicable to projects funded under this 

program, the Secretary may require that 

recipients of grants under this part 

submit information determined by the 

Secretary to be necessary to measure 

project outcomes and performance, 

including any data needed to comply 

with the Government Performance and 

Results Act. 

(b) Specific reporting requirements for 

competitions will be identified by the 

Secretary and published in the Federal 

Register. 

(Authority: Sections 12(c), 303(b)(2)(B), and 

306 of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 773(b)(2)(B), and 

776) 

§ 373.22 What are the limitations on 

indirect costs? 

(a) Indirect cost reimbursement for 

grants under this program is limited to 

the recipient’s actual indirect costs, as 

determined by its negotiated indirect 

cost rate agreement, or 10 percent of the 

total direct cost base, whichever amount 

is less. 

(b) Indirect costs in excess of the 10 

percent limit may be used to satisfy 

matching or cost-sharing requirements. 

(c) The 10 percent limit does not 

apply to federally recognized Indian 

tribal governments and their tribal 

representatives. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

§ 373.23 What additional requirements 

must be met? 

(a) Each grantee must do the 

following: 

(1) Ensure equal access and treatment 

for eligible project participants who are 

members of groups that have 

traditionally been underrepresented 

based on race, color, national origin, 

gender, age, or disabilities. 

(2) Encourage applications for 

employment from persons who are 

members of groups that have 

traditionally been underrepresented 

based on race, color, national origin, 

gender, age, or disabilities. 

(3) Advise individuals with 

disabilities who are applicants for or 

recipients of the services, or the 

applicants’ representatives or the 

individuals’ representatives, of the 

availability and purposes of the Client 

Assistance Program, including 

information on means of seeking 

assistance under that program. 

(4) Provide, through a careful 

appraisal and study, an assessment and 

evaluation of the project that indicates 

the significance or worth of processes, 

methodologies, and practices 

implemented by the project. 


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(b) A grantee may not make a subgrant 

under this part. However, a grantee may 

contract for supplies, equipment, and 

other services, in accordance with 2 

CFR part 200 (Uniform Administrative 

Requirements, Cost Principles, and 

Audit Requirements for Federal 

Awards) as adopted at 2 CFR part 3474. 

(Authority: Sections 12(c) and 303(b)(2)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 773(b)(2)(B)) 

§ 373.24 What are the special 

requirements pertaining to the protection, 

use, and release of personal information? 

(a) All personal information about 

individuals served by any project under 

this part, including lists of names, 

addresses, photographs, and records of 

evaluation, must be confidential. 

(b) The use of information and records 

concerning individuals must be limited 

only to purposes directly connected 

with the project, including project 

reporting and evaluation activities. This 

information may not be disclosed, 

directly or indirectly, other than in the 

administration of the project unless the 

consent of the agency providing the 

information and the individual to whom 

the information applies, or his or her 

representative, has been obtained in 

writing. The Secretary or other Federal 

officials responsible for enforcing legal 

requirements have access to this 

information without written consent 

being obtained. The final products of 

the project may not reveal any personal 

identifying information without written 

consent of the individual or his or her 

representative. 

(Authority: Sections 12(c) and 303(b)(2)(B) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c), and 773(b)(2)(B)) 

PART 376—[REMOVED AND 

RESERVED] 

■ 6. Part 376 is removed and reserved. 

PART 377—[REMOVED AND 

RESERVED] 

■ 7. Part 377 is removed and reserved. 

PART 379—[REMOVED AND 

RESERVED] 

■ 8. Part 379 is removed and reserved. 

■ 9. Part 381 is revised to read as 

follows: 

Part 381—PROTECTION AND 

ADVOCACY OF INDIVIDUAL RIGHTS 

Subpart A—General 

Sec. 

381.1 What is the Protection and Advocacy 

of Individual Rights program? 

381.2 Who is eligible for an award? 

381.3 What activities may the Secretary 

fund? 

381.4 What regulations apply? 

381.5 What definitions apply? 

Subpart B—How Does One Apply for an 

Award? 

381.10 What are the application 

requirements? 

Subpart C—How Does the Secretary Make 

an Award? 

381.20 How does the Secretary evaluate an 

application? 

381.22 How does the Secretary allocate 

funds under this program? 

Subpart D—What Conditions Must Be Met 

After an Award? 

381.30 How are services to be 

administered? 

381.31 What are the requirements 

pertaining to the protection, use, and 

release of personal information? 

381.32 What are the reporting 

requirements? 

381.33 What are the requirements related to 

the use of funds provided under this 

part? 

Authority: Section 509 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 794e, unless otherwise noted. 

Subpart A—General 

§ 381.1 What is the Protection and 

Advocacy of Individual Rights program? 

This program is designed to support 

a system in each State to protect the 

legal and human rights of eligible 

individuals with disabilities. 

(Authority: Section 509(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 794e(a)) 

§ 381.2 Who is eligible for an award? 

(a)(1) A protection and advocacy 

system that is established under part C 

of title I of the Developmental 

Disabilities Assistance and Bill of Rights 

Act of 2000 (DD Act), 42 U.S.C. 15041 

et seq., and that meets the requirements 

of § 381.10 is eligible to apply for a grant 

award under this part. 

(2)(i) For any fiscal year in which the 

appropriation to carry out the activities 

of this part equals or exceeds 

$10,500,000, the eligible system serving 

the American Indian Consortium is 

eligible to apply for a grant award under 

this part. 

(ii) For purposes of this part, an 

eligible system is defined at § 381.5(c). 

(iii) For purposes of this part, the 

American Indian Consortium means a 

consortium established as described in 

section 102 of the DD Act (42 U.S.C. 

15002). 

(b) In any fiscal year in which the 

amount appropriated to carry out this 

part is less than $5,500,000, a protection 

and advocacy system from any State or 

from Guam, American Samoa, the 

United States Virgin Islands, or the 

Commonwealth of the Northern Mariana 

Islands, may apply for a grant under the 

Protection and Advocacy of Individual 

Rights (PAIR) program to plan for, 

develop outreach strategies for, and 

carry out a protection and advocacy 

program authorized under this part. 

(c) In any fiscal year in which the 

amount appropriated to carry out this 

part is equal to or greater than 

$5,500,000, an eligible system from any 

State and from any of the jurisdictions 

named in paragraph (b) of this section 

may apply to receive the amount 

allotted pursuant to section 509(c)–(e) of 

the Act. 

(Authority: Section 509(b), (c), and (m) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 794e(b), (c), and (m)) 

§ 381.3 What activities may the Secretary 

fund? 

(a) Funds made available under this 

part must be used for the following 

activities: 

(1) Establishing a system to protect, 

and advocate for, the rights of 

individuals with disabilities. 

(2) Pursuing legal, administrative, and 

other appropriate remedies or 

approaches to ensure the protection of, 

and advocacy for, the rights of eligible 

individuals with disabilities within the 

State or the American Indian 

Consortium. 

(3) Providing information on and 

making referrals to programs and 

services addressing the needs of 

individuals with disabilities in the State 

or American Indian Consortium, 

including individuals with disabilities 

who are exiting from school programs. 

(4) Coordinating the protection and 

advocacy program provided through an 

eligible system with the advocacy 

programs under— 

(i) Section 112 of the Act (the Client 

Assistance Program (CAP)); 

(ii) The Older Americans Act of 1965 

(the State long-term care ombudsman 

program) (42 U.S.C. 3001 et seq.); 

(iii) Part C of the DD Act; and 

(iv) The Protection and Advocacy for 

Individuals with Mental Illness Act of 

2000 (PAIMI) (42 U.S.C. 10801–10807). 

(5) Developing a statement of 

objectives and priorities on an annual 

basis and a plan for achieving these 

objectives and priorities. 

(6) Providing to the public, including 

individuals with disabilities and, as 

appropriate, their representatives, an 

opportunity to comment on the 

objectives and priorities described in 

§ 381.10(a)(6). 

(7) Establishing a grievance procedure 

for clients or prospective clients of the 

eligible system to ensure that 

individuals with disabilities are 


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afforded equal access to the services of 

the eligible system. 

(b) Funds made available under this 

part also may be used to carry out any 

other activities consistent with the 

purpose of this part and the activities 

listed in paragraph (a) of this section. 

(Authority: Sections 12(c) and 509(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 794e(f)). 

§ 381.4 What regulations apply? 

The following regulations apply to the 

PAIR program: 

(a) The Education Department General 

Administrative Regulations (EDGAR) as 

follows: 

(1) 34 CFR part 75 (Direct Grant 

Programs) for purposes of an award 

made under § § 381.20 or 381.22(a)(1). 

(2) 34 CFR part 76 (StateAdministered Programs), if the 

appropriation for the PAIR program is 

equal to or greater than $5,500,000 and 

the eligible system is a State or local 

government agency, except for— 

(i) Section 76.103; 

(ii) Sections 76.125 through 76.137; 

(iii) Sections 76.300 through 76.401; 

(iv) Section 76.704; 

(v) Section 76.734; and 

(vi) Section 76.740. 

(3) 34 CFR part 77 (Definitions that 

Apply to Department Regulations). 

(4) 34 CFR part 79 (Intergovernmental 

Review of Department of Education 

Programs and Activities). 

(5) 34 CFR part 81 (General Education 

Provisions Act—Enforcement). 

(6) 34 CFR part 82 (New Restrictions 

on Lobbying). 

(b) 2 CFR part 180 (OMB Guidelines 

to Agencies on Debarment and 

Suspension (Nonprocurement)), as 

adopted at 2 CFR part 3485. 

(c) 2 CFR part 200 (Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards), as adopted at 2 CFR 

part 3474. 

(d) The regulations in this part 381. 

(Authority: Sections 12(c) and 509 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 794e) 

§ 381.5 What definitions apply? 

(a) Definitions in EDGAR at 34 CFR 

part 77. 

(b) Definitions in 2 CFR part 200 

subpart A. 

(c) Other definitions. The following 

definitions also apply to this part: 

Act means the Rehabilitation Act of 

1973, as amended. 

Advocacy means pleading an 

individual’s cause or speaking or 

writing in support of an individual. 

Advocacy may be formal, as in the case 

of a lawyer representing an individual 

in a court of law or in formal 

administrative proceedings before 

government agencies (whether tribal, 

State, local, or Federal). Advocacy also 

may be informal, as in the case of a 

lawyer or non-lawyer representing an 

individual in negotiations, mediation, or 

informal administrative proceedings 

before government agencies (whether 

tribal, State, local, or Federal), or as in 

the case of a lawyer or non-lawyer 

representing an individual’s cause 

before private entities or organizations, 

or government agencies (whether tribal, 

State, local, or Federal). Advocacy may 

be on behalf of— 

(1) A single individual, in which case 

it is individual advocacy; 

(2) More than one individual or a 

group or class of individuals, in which 

case it is systems (or systemic) 

advocacy; or 

(3) Oneself, in which case it is self 

advocacy. 

Eligible individual with a disability 

means an individual who— 

(1) Needs protection and advocacy 

services that are beyond the scope of 

services authorized to be provided by 

the CAP under section 112 of the Act; 

and 

(2) Is ineligible for— 

(i) Protection and advocacy programs 

under part C of the DD Act; and 

(ii) Protection and advocacy programs 

under the PAIMI. 

Eligible system means a protection 

and advocacy system that is established 

under part C of the DD Act and that 

meets the requirements of § 381.10. 

Mediation means the act or process of 

using an independent third party to act 

as a mediator, intermediary, or 

conciliator to settle differences or 

disputes between persons or parties. 

The third party who acts as a mediator, 

intermediary, or conciliator must not be 

any entity or individual who is 

connected in any way with the eligible 

system or the agency, entity, or 

individual with whom the individual 

with a disability has a dispute. 

Mediation may involve the use of 

professional mediators or any other 

independent third party mutually 

agreed to by the parties to the dispute. 

State means, 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, except for purposes of sections 

509(c)(3)(B) and (c)(4) of the Act, in 

which case State does not mean or 

include Guam, American Samoa, the 

United States Virgin Islands, and the 

Commonwealth of the Northern Mariana 

Islands. 

(Authority: Sections 7(34), 12(c), and 509 of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 705(34), 709(c) and 794e) 

Subpart B—How Does One Apply for 

an Award? 

§ 381.10 What are the application 

requirements? 

(a) Regardless of the amount of funds 

appropriated for the PAIR program in a 

fiscal year, an eligible system shall 

submit to the Secretary an application 

for assistance under this part at the time 

and in the form and manner determined 

by the Secretary that contains all 

information that the Secretary 

determines necessary, including 

assurances that the eligible system 

will— 

(1) Have in effect a system to protect, 

and advocate for, the rights of eligible 

individuals with disabilities; 

(2) Have the same general authorities, 

including the authority to access records 

and program income, as in part C of title 

I of the DD Act; 

(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 eligible individuals with 

disabilities within the State and the 

American Indian Consortium; 

(4) Provide information on and make 

referrals to programs and services 

addressing the needs of individuals 

with disabilities in the State and the 

American Indian Consortium, including 

individuals with disabilities who are 

exiting from school programs; 

(5) Develop a statement of objectives 

and priorities on an annual basis and a 

plan for achieving these objectives and 

priorities; 

(6) Provide to the public, including 

individuals with disabilities and, as 

appropriate, their representatives, an 

opportunity to comment on the 

objectives and priorities established by, 

and activities of, the eligible system 

including— 

(i) The objectives and priorities for the 

activities of the eligible system for each 

year and the rationale for the 

establishment of those objectives and 

priorities; and 

(ii) The coordination of the PAIR 

program provided through eligible 

systems with the advocacy programs 

under— 

(A) Section 112 of the Act (CAP); 

(B) The Older Americans Act of 1965 

(the State long-term care ombudsman 

program); 

(C) Part C of the DD Act; and 

(D) The PAIMI; 


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(7) Establish a grievance procedure for 

clients or prospective clients of the 

eligible system to ensure that 

individuals with disabilities are 

afforded equal access to the services of 

the eligible system; 

(8) Use funds made available under 

this part to supplement and not 

supplant the non-Federal funds that 

would otherwise be made available for 

the purpose for which Federal funds are 

provided; and 

(9) Implement procedures designed to 

ensure that, to the maximum extent 

possible, mediation (and other 

alternative dispute resolution) 

procedures, which include good faith 

negotiation, are used before resorting to 

formal administrative or legal remedies. 

(b) To receive direct payment of funds 

under this part, an eligible system must 

provide to the Secretary, as part of its 

application for assistance, an assurance 

that direct payment is not prohibited by 

or inconsistent with tribal or State law, 

regulation, or policy. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0018) 

(Authority: Sections 12(c) and 509(f) and 

(g)(1) of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 794e(f) and 

(g)(1)) 

Subpart C—How Does the Secretary 

Make an Award? 

§ 381.20 How does the Secretary evaluate 

an application? 

In any fiscal year in which the 

amount appropriated for the PAIR 

program is less than $5,500,000, the 

Secretary evaluates applications under 

the procedures in 34 CFR part 75. 

(Authority: Sections 12(c) and 509(b) and (f) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 794e(b) and 

(f)) 

§ 381.22 How does the Secretary allocate 

funds under this program? 

(a) In any fiscal year in which the 

amount appropriated for this program is 

equal to or greater than $5,500,000— 

(1) The Secretary sets aside not less 

than 1.8 percent but not more than 2.2 

percent of the amount appropriated to 

provide a grant, contract, or cooperative 

agreement for training and technical 

assistance to eligible systems carrying 

out activities under this part. 

(2) After the reservation required by 

paragraph (a)(1) of this section, the 

Secretary makes allotments from the 

remainder of the amount appropriated 

in accordance with section 509(c)(2)–(d) 

of the Act. 

(b) Notwithstanding any other 

provision of law, in any fiscal year in 

which the amount appropriated for this 

program is equal to or greater than 

$5,500,000, the Secretary pays directly 

to an eligible system that submits an 

application that meets the requirements 

of § 381.10 the amount of the allotment 

to the State pursuant to section 509 of 

the Act, unless the State provides 

otherwise. 

(c) For any fiscal year in which the 

amount appropriated to carry out this 

program equals or exceeds $10,500,000, 

the Secretary shall reserve a portion, 

and use the portion to make a grant for 

the eligible system serving the American 

Indian Consortium. The Secretary shall 

make the grant in an amount of not less 

than $50,000 for the fiscal year. 

(d) Reallotment. (1) For any fiscal year 

in which the amount appropriated to 

carry out this program equals or exceeds 

$5,500,000 and if the Secretary 

determines that any amount of an 

allotment to an eligible system within a 

State will not be expended by such 

system in carrying out the provisions of 

this part, the Secretary shall make such 

amount available to one or more of the 

eligible systems that the Secretary 

determines will be able to use 

additional amounts during such year for 

carrying out this part. 

(2) Any reallotment amount made 

available to an eligible system for any 

fiscal year shall, for the purposes of this 

section, be regarded as an increase in 

the eligible system’s allotment under 

this part for that fiscal year. 

(Authority: Sections 12(c) and 509(c)–(e) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 794e(c)–(e)) 

Subpart D—What Conditions Must Be 

Met After an Award? 

§ 381.30 How are services to be 

administered? 

(a) Each eligible system shall carry out 

the protection and advocacy program 

authorized under this part. 

(b) An eligible system may not award 

a grant or make a subaward to another 

entity to carry out, in whole or in part, 

the protection and advocacy program 

authorized under this part. 

(c) An eligible system may contract 

with another agency, entity, or 

individual to carry out the PAIR 

program in whole or in part, but only if 

the agency, entity, or individual with 

whom the eligible system has 

contracted— 

(1) Does not provide services under 

the Act or does not provide treatment, 

services, or habilitation to persons with 

disabilities; and 

(2) Is independent of, and not 

connected financially or through a 

board of directors to, an entity or 

individual that provides services under 

the Act or that provides treatment, 

services, or habilitation to persons with 

disabilities. 

(d) For purposes of paragraph (c) of 

this section, ‘‘services under the Act’’ 

and ‘‘treatment, services, or 

habilitation’’ does not include client 

assistance services under CAP, 

protection and advocacy services 

authorized under the protection and 

advocacy programs under part C of the 

DD Act and the PAIMI, or any other 

protection and advocacy services. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

§ 381.31 What are the requirements 

pertaining to the protection, use, and 

release of personal information? 

(a) All personal information about 

individuals served by any eligible 

system under this part, including lists of 

names, addresses, photographs, and 

records of evaluation, must be held 

confidential. 

(b) The eligible system’s use of 

information and records concerning 

individuals must be limited only to 

purposes directly connected with the 

protection and advocacy program, 

including program evaluation activities. 

Except as provided in paragraph (c) of 

this section, an eligible system may not 

disclose personal information about an 

individual, directly or indirectly, other 

than in the administration of the 

protection and advocacy program, 

unless the consent of the individual to 

whom the information applies, or his or 

her guardian, parent, or other 

authorized representative or advocate 

(including the individual’s advocate 

from the eligible system), has been 

obtained in writing. An eligible system 

may not produce any report, evaluation, 

or study that reveals any personally 

identifying information without the 

written consent of the individual or his 

or her representative. 

(c) Except as limited in paragraph (d) 

of this section, the Secretary or other 

Federal or State officials responsible for 

enforcing legal requirements must be 

given complete access to all— 

(1) Records of the eligible system 

receiving funds under this program; and 

(2) All individual case records of 

clients served under this part without 

the consent of the client. 

(d)(1) The privilege of a person or 

eligible system not to produce 

documents or provide information 

pursuant to paragraph (c) of this section 

is governed by the principles of 

common law as interpreted by the 

courts of the United States, except that, 

for purposes of any periodic audit, 


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report, or evaluation of the performance 

of the eligible system established or 

assisted under this part, the Secretary 

does not require the eligible system to 

disclose the identity of, or any other 

personally identifiable information 

related to, any individual requesting 

assistance under the PAIR program. 

(2) However, notwithstanding 

paragraph (d)(1) of this section, if an 

audit, monitoring review, State plan 

assurance review, evaluation, or other 

investigation has already produced 

independent and reliable evidence that 

there is probable cause to believe that 

the eligible system has violated its 

legislative mandate or misused Federal 

funds, the eligible system shall disclose, 

if the Secretary so requests, the identity 

of, or any other personally identifiable 

information (i.e., name, address, 

telephone number, social security 

number, or other official code or 

number by which an individual may be 

readily identified) related to, any 

individual requesting assistance under 

the PAIR program, in accordance with 

the principles of common law as 

interpreted by the courts of the United 

States. 

(Authority: Sections 12(c) and 509(h) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 794e(h)) 

§ 381.32 What are the reporting 

requirements? 

Each eligible system shall provide to 

the Secretary, no later than 90 days after 

the end of each fiscal year, an annual 

report that includes information on the 

following: 

(a) The types of services and activities 

undertaken by the eligible system and 

how these services and activities 

addressed the objectives and priorities 

developed pursuant to § 381.10(a)(6). 

(b) The total number of individuals, 

by race, color, national origin, gender, 

age, and disabling condition, who 

requested services from the eligible 

system and the total number of 

individuals, by race, color, national 

origin, gender, age, and disabling 

condition, who were served by the 

eligible system. 

(c) The types of disabilities 

represented by individuals served by 

the eligible system. 

(d) The types of issues being 

addressed on behalf of individuals 

served by the eligible system. 

(e) Any other information that the 

Secretary may require. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0018) 

(Authority: Sections 12(c), 13, and 509(k) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c), 710, and 794e(k)) 

§ 381.33 What are the requirements related 

to the use of funds provided under this 

part? 

(a) Funds made available under this 

part must 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 under this part. 

(b) In any State in which an eligible 

system is located within a State agency, 

that State or State agency may not use 

more than five percent of any allotment 

for the costs of administration of the 

eligible system supported under this 

part. For purposes of this paragraph, 

‘‘costs of administration’’ include, but 

are not limited to, administrative 

salaries (including salaries for clerical 

and support staff), supplies, 

depreciation or use allowances, the cost 

of operating and maintaining facilities, 

equipment, and grounds (e.g., rental of 

office space or equipment, telephone, 

postage, maintenance agreements), and 

other similar types of costs that may be 

incurred by the State or State agency to 

administer the eligible system. 

(c) Funds paid to an eligible system 

within a State for a fiscal year to carry 

out this program that are not expended 

or obligated prior to the end of that 

fiscal year remain available to the 

eligible system within a State for 

obligation during the succeeding fiscal 

year in accordance with section 509(g) 

of the Act and 34 CFR 76.709. 

(d) For determining when an eligible 

system makes an obligation for various 

kinds of property or services, 34 CFR 

75.707 and 76.707, as appropriate, apply 

to this program. If the appropriation for 

the PAIR program is less than 

$5,500,000, § 75.707 applies. If the 

appropriation for the PAIR program is 

equal to or greater than $5,500,000, 

§ 76.707 applies. An eligible system is 

considered a State for purposes of 

§ 76.707. 

(e) Program income. (1) Program 

income means gross income earned by 

the designated agency that is directly 

generated by an activity supported 

under this part. 

(2) Grantees are authorized to treat 

program income as— 

(i) A deduction from total allowable 

costs charged to a Federal grant, in 

accordance with 2 CFR 200.307(e)(1); or 

(ii) An addition to the grant funds to 

be used for additional allowable 

program expenditures, in accordance 

with 2 CFR 200.307(e)(2). 

(3) Any Federal funds, including 

reallotted funds, that are appropriated 

for a fiscal year to carry out a program 

under this part that are not obligated or 

expended prior to the beginning of the 

succeeding fiscal year, and any program 

income received during a fiscal year that 

is not obligated or expended prior to the 

beginning of the succeeding fiscal year 

in which the program income was 

received, remain available for obligation 

and expenditure by the grantee during 

that succeeding fiscal year. 

(Authority: Sections 12(c), 19, and 509(f)(7), 

(g), and (i) of the Rehabilitation Act of 1973, 

as amended; 29 U.S.C. 709(c), 716, and 

794e(f)(7), (g), and (i); and 20 U.S.C. 3474) 

■ 10. Part 385 is revised to read as 

follows: 

PART 385—REHABILITATION 

TRAINING 

Subpart A—General 

Sec. 

385.1 What is the Rehabilitation Training 

program? 

385.2 Who is eligible for assistance under 

these programs? 

385.3 What regulations apply to these 

programs? 

385.4 What definitions apply to these 

programs? 

Subpart B [Reserved] 

Subpart C—How Does One Apply for a 

Grant? 

385.20 What are the application procedures 

for these programs? 

Subpart D—How Does the Secretary Make 

a Grant? 

385.30 [Reserved] 

385.31 How does the Secretary evaluate an 

application? 

385.33 What other factors does the 

Secretary consider in reviewing an 

application? 

Subpart E—What Conditions Must Be Met 

by a Grantee? 

385.40 What are the requirements 

pertaining to the membership of a project 

advisory committee? 

385.41 What are the requirements affecting 

the collection of data from designated 

State agencies? 

385.42 What are the requirements affecting 

the dissemination of training materials? 

385.43 What requirements apply to the 

training of rehabilitation counselors and 

other rehabilitation personnel? 

385.44 What requirement applies to the 

training of individuals with disabilities? 

385.45 What additional application 

requirements apply to the training of 

individuals for rehabilitation careers? 

385.46 What limitations apply to the rate of 

pay for experts or consultants appointed 

or serving under contract under the 

Rehabilitation Training program? 

Authority: Sections 12(c), 301, and 302 of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c), 771 and 772, unless 

otherwise noted. 


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Subpart A—General 

§ 385.1 What is the Rehabilitation Training 

program? 

(a) Purpose. The Rehabilitation 

Training program is designed to— 

(1) 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; 

(2) Maintain and upgrade basic skills 

and knowledge of personnel employed, 

including personnel specifically trained 

to deliver rehabilitation services, 

including supported employment 

services and customized employment 

services, to individuals with the most 

significant disabilities, and personnel 

specifically trained to deliver services to 

individuals with disabilities whose 

employment outcome is selfemployment, business ownership, or 

telecommuting, to provide state-of-theart service delivery and rehabilitation 

technology services; and 

(3) Provide training and information 

to individuals with disabilities, the 

parents, families, guardians, advocates, 

and authorized representatives of the 

individuals, and other appropriate 

parties to develop the skills necessary 

for individuals with disabilities to 

access the rehabilitation system and to 

become active decision makers in the 

vocational rehabilitation process. 

(b) The Secretary awards grants and 

contracts on a competitive basis to pay 

part of the costs of projects for training, 

traineeships or scholarships, and related 

activities, including the provision of 

technical assistance, to assist in 

increasing the numbers of qualified 

personnel trained in providing 

vocational rehabilitation services and 

other services provided under the Act, 

to individuals with disabilities. 

Financial assistance is provided through 

multiple training programs, including: 

(1) Rehabilitation Long-Term Training 

(34 CFR part 386). 

(2) Innovative Rehabilitation Training 

(34 CFR part 387). 

(3) Rehabilitation Short-Term 

Training (34 CFR part 390). 

(4) Training of Interpreters for 

Individuals Who Are Deaf and Hard of 

Hearing and Individuals Who Are DeafBlind (34 CFR part 396). 

(Authority: Sections 12(c), 301 and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c), 771 and 772) 

§ 385.2 Who is eligible for assistance 

under these programs? 

States and public or private nonprofit 

agencies and organizations, including 

Indian tribes and institutions of higher 

education, are eligible for assistance 

under the Rehabilitation Training 

program. 

(Authority: Sections 7(19), 301, and 302 of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 705(19), 771 and 772) 

§ 385.3 What regulations apply to these 

programs? 

The following regulations apply to the 

Rehabilitation Training program: 

(a) The Education Department General 

Administrative Regulations (EDGAR) as 

follows: 

(1) 34 CFR part 75 (Direct Grant 

Programs). 

(2) 34 CFR part 77 (Definitions That 

Apply to Department Regulations). 

(3) 34 CFR part 79 (Intergovernmental 

Review of Department of Education 

Programs and Activities). 

(4) 34 CFR part 81 (General Education 

Provisions Act—Enforcement). 

(5) 34 CFR part 82 (New Restrictions 

on Lobbying). 

(6) 34 CFR part 84 (Governmentwide 

Requirements for Drug-Free Workplace 

(Financial Assistance). 

(7) 34 CFR part 86 (Drug-Free Schools 

and Campuses). 

(8) 34 CFR part 97 (Protection of 

Human Subjects). 

(9) 34 CFR part 98 (Student Rights in 

Research, Experimental Programs, and 

Testing. 

(10) 34 CFR part 99 (Family 

Educational Rights and Privacy). 

(b) The regulations in this part 385. 

(c) The regulations in 34 CFR parts 

386, 387, 390, and 396, as appropriate. 

(d)(1) 2 CFR part 180 (OMB 

Guidelines to Agencies on Debarment 

and Suspension (Nonprocurement)), as 

adopted at 2 CFR part 3485; and 

(2) 2 CFR part 200 (Uniform 

Administrative Requirements, Cost 

Principles, and Audit Requirements for 

Federal Awards) as adopted at 2 CFR 

part 3474. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 711(c) and 772) 

§ 385.4 What definitions apply to these 

programs? 

(a) The following definitions in 34 

CFR part 77 apply to the programs 

under the Rehabilitation Training 

Program— 

Applicant 

Application 

Award 

Budget Period 

Department 

EDGAR 

Grantee 

Nonprofit 

Private 

Project 

Project Period 

Public 

Secretary 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

(b) The following definitions also 

apply to programs under the 

Rehabilitation Training program: 

Act means the Rehabilitation Act of 

1973 (29 U.S.C. 701 et seq.), as 

amended. 

Assistive technology means 

technology designed to be utilized in an 

assistive technology device or assistive 

technology service. 

Assistive technology device means 

any item, piece of equipment, or 

product system, whether acquired 

commercially off the shelf, modified, or 

customized, that is used to increase, 

maintain, or improve functional 

capabilities of individuals with 

disabilities. 

Assistive technology service means 

any service that directly assists an 

individual with a disability in the 

selection, acquisition, or use of an 

assistive technology device. The term 

includes— 

(1) The evaluation of the needs of an 

individual with a disability, including a 

functional evaluation of the individual 

in the individual’s customary 

environment; 

(2) Purchasing, leasing, or otherwise 

providing for the acquisition of assistive 

technology devices by individuals with 

disabilities; 

(3) Selecting, designing, fitting, 

customizing, adapting, applying, 

maintaining, repairing, or replacing of 

assistive technology devices; 

(4) Coordinating and using other 

therapies, interventions, or services 

with assistive technology devices, such 

as those associated with existing 

education and rehabilitation plans and 

programs; 

(5) Training or technical assistance for 

an individual with disabilities, or, if 

appropriate, the family of an individual 

with disabilities; 

(6) Training or technical assistance for 

professionals (including individuals 

providing education and rehabilitation 

services), employers, or other 

individuals who provide services to, 

employ, or are otherwise substantially 

involved in the major life functions of 

individuals with disabilities; and 

(7) A service consisting of expanding 

the availability of access to technology, 

including electronic and information 


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technology, to individuals with 

disabilities. 

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— 

(1) Medical, psychiatric, 

psychological, social, and vocational 

services that are provided under one 

management; 

(2) Testing, fitting, or training in the 

use of prosthetic and orthotic devices; 

(3) Recreational therapy; 

(4) Physical and occupational therapy; 

(5) Speech, language, and hearing 

therapy; 

(6) Psychiatric, psychological, and 

social services, including positive 

behavior management; 

(7) Assessment for determining 

eligibility and vocational rehabilitation 

needs; 

(8) Rehabilitation technology; 

(9) Job development, placement, and 

retention services; 

(10) Evaluation or control of specific 

disabilities; 

(11) Orientation and mobility services 

for individuals who are blind; 

(12) Extended employment; 

(13) Psychosocial rehabilitation 

services; 

(14) Supported employment services 

and extended services; 

(15) Services to family members when 

necessary to the vocational 

rehabilitation of the individual; 

(16) Personal assistance services; or 

(17) Services similar to the services 

described in paragraphs (1) through (16) 

of this definition. 

Designated State agency means an 

agency designated under section 7(8) 

and 101(a)(2)(A) of the Act. 

Designated State unit means 

(1) Any State agency unit required 

under section 7(8) and 101(a)(2)(B) of 

the Act, or 

(2) In cases in which no State agency 

unit is required, the State agency 

described in section 101(a)(2)(B)(ii) of 

the Act. 

Independent living core services 

means— 

(1) Information and referral services; 

(2) Independent living skills training; 

(3) Peer counseling, including crossdisability peer counseling; and 

(4) Individual and systems advocacy. 

Independent living services 

includes— 

(1) Independent living core services; 

and 

(2)(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 these 

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 the community and 

participating in community activities; 

(x) Supported living; 

(xi) Transportation, including referral 

and assistance for transportation; 

(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; 

(xvix) 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 of individuals with 

disabilities; and 

(xxi) Such other services as may be 

necessary and not inconsistent with the 

provisions of this Act. 

Individual with a disability means any 

individual who— 

(1) Has a physical or mental 

impairment, which for that individual 

constitutes or results in a substantial 

impediment to employment; 

(2) Can benefit in terms of an 

employment outcome from vocational 

rehabilitation services provided 

pursuant to title I, III, or VI of the 

Rehabilitation Act of 1973, as amended; 

and 

(3) Has a disability as defined in 

section 7(20)(B) of the Act. 

Individual with a significant disability 

means an individual with a disability— 

(1) Who has a severe physical or 

mental impairment that 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; 

(2) Whose vocational rehabilitation 

can be expected to require multiple 

vocational rehabilitation services over 

an extended period of time; and 

(3) 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, 

intellectual disability, respiratory or 

pulmonary dysfunction, 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 disabilities, 

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. 

Institution of higher education has the 

meaning given the term in section 

101(a) of the Higher Education Act (20 

U.S.C. 1001(a)). 

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. The services shall be 

designed to increase the individual’s 

control in life and ability to perform 

everyday activities on or off the job. 

Qualified personnel: (1) For 

designated State agencies or designated 

State units, means personnel who have 


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met standards that are consistent with 

existing 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. 

(2) For other than designated State 

agencies or designated State units, 

means personnel who have met existing 

State certification or licensure 

requirements, or, in the absence of State 

requirements, have met professionally 

accepted requirements established by 

national certification boards. 

Rehabilitation services means 

services, including vocational, medical, 

social, and psychological rehabilitation 

services and other services under the 

Rehabilitation Act, provided to 

individuals with disabilities in 

performing functions necessary in 

preparing for, securing, retaining, or 

regaining an employment or 

independent living outcome. 

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 

that include education, rehabilitation, 

employment, transportation, 

independent living, and recreation. The 

term includes rehabilitation 

engineering, assistive technology 

devices, and assistive technology 

services. 

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. 

Stipend means financial assistance on 

behalf of individuals in support of their 

training, as opposed to salary payment 

for services provided within the project. 

Supported employment means 

competitive integrated employment, 

including customized employment, or 

employment in an integrated work 

setting in which individuals are 

working on a short-term basis toward 

competitive integrated employment, 

that is individualized and customized 

consistent with the strengths, abilities, 

interests, and informed choice of the 

individuals involved, for individuals 

with the most severe disabilities— 

(1)(i) For whom competitive 

integrated employment has not 

traditionally occurred; or 

(ii) For whom competitive 

employment has been interrupted or 

intermittent as a result of a severe 

disability; and 

(2) Who, because of the nature and 

severity of their disability, need 

intensive supported employment 

services from the designated State unit 

and extended services after transition in 

order to perform the work involved. 

Supported employment services 

means ongoing support services, 

including customized employment, and 

other appropriate services needed to 

support and maintain an individual 

with most severe disability in supported 

employment, that are— 

(1) Provided singly or in combination 

and are organized and made available in 

such a way as to assist an eligible 

individual in entering or maintaining 

integrated, competitive employment; 

(2) Based on a determination of the 

needs of an eligible individual, as 

specified in an individualized written 

rehabilitation program; and 

(3) Provided by the designated State 

unit for a period of time not more than 

24 months, unless under special 

circumstances the eligible individual 

and the rehabilitation counselor or 

coordinator jointly agree to extend the 

time in order to achieve the 

rehabilitation objectives identified in 

the individualized plan for 

employment. 

Vocational rehabilitation services 

means services provided to 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, and services provided for 

the benefit of groups of individuals with 

disabilities. Vocational Rehabilitation 

Services for an individual with a 

disability may include— 

(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; 

(3) Referral and other services to 

secure needed services from other 

agencies; 

(4) Job-related services, including job 

search and placement assistance, job 

retention services, follow-up 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; 

(6) Diagnosis and treatment of 

physical and mental impairments; 

(7) Maintenance for additional costs 

incurred while the individual is 

receiving services; 

(8) Transportation; 

(9) On-the-job or other related 

personal assistance services; 

(10) Interpreter and reader services; 

(11) Rehabilitation teaching services, 

and orientation and mobility services; 

(12) Occupational licenses, tools, 

equipment, and initial stocks and 

supplies; 

(13) Technical assistance and other 

consultation services to conduct market 

analysis, develop business plans, and 

otherwise provide resources to eligible 

individuals who are pursuing selfemployment 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 

individuals with disabilities that 

facilitate the achievement of 

employment outcomes; 

(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; 

(18) Post-employment services 

necessary to assist an individual with a 

disability to retain, regain, or advance in 

employment; and 

(19) Expansion of employment 

opportunities for individuals with 

disabilities, which includes, but is not 

limited to— 

(i) Self-employment, business 

ownership, and entrepreneurship; 

(ii) Non-traditional jobs, professional 

employment, and work settings; 

(iii) Collaborating with employers, 

Economic Development Councils, and 

others in creating new jobs and career 

advancement options in local job 

markets through the use of job 

restructuring and other methods; and 

(iv) Other services as identified by the 

Secretary and published in the Federal 

Register. 

(Authority: Sections 7(40), 12(c), and 

101(a)(7) of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 705(40), 709(c), and 

721(a)(7)) 

Subpart B—[Reserved] 

Subpart C—How Does One Apply for a 

Grant? 

§ 385.20 What are the application 

procedures for these programs? 

The Secretary gives the designated 

State agency an opportunity to review 

and comment on applications submitted 


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from within the State that it serves. The 

procedures to be followed by the 

applicant and the State are in 34 CFR 

75.155–75.159. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

Subpart D—How Does the Secretary 

Make a Grant? 

§ 385.30 [Reserved] 

§ 385.31 How does the Secretary evaluate 

an application? 

(a) The Secretary evaluates 

applications under the procedures in 34 

CFR part 75. 

(b) The Secretary evaluates each 

application using selection criteria 

identified in parts 386, 387, 390, and 

396, as appropriate. 

(c) In addition to the selection criteria 

described in paragraph (b) of this 

section, the Secretary evaluates each 

application using— 

(1) Selection criteria in 34 CFR 

75.210; 

(2) Selection criteria established 

under 34 CFR 75.209; or 

(3) A combination of selection criteria 

established under 34 CFR 75.209 and 

selection criteria in 34 CFR 75.210. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 385.33 What other factors does the 

Secretary consider in reviewing an 

application? 

In addition to the selection criteria 

listed in § 75.210 and parts 386, 387, 

390, and 396 the Secretary, in making 

awards under this program, considers 

such factors as— 

(a) The geographical distribution of 

projects in each Rehabilitation Training 

Program category throughout the 

country; and 

(b) The past performance of the 

applicant in carrying out similar 

training activities under previously 

awarded grants, as indicated by such 

factors as compliance with grant 

conditions, soundness of programmatic 

and financial management practices and 

attainment of established project 

objectives. 

(Authority: Sections 12(c) and 302(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(b)) 

Subpart E—What Conditions Must Be 

Met by a Grantee? 

§ 385.40 What are the requirements 

pertaining to the membership of a project 

advisory committee? 

If a project funded under 34 CFR parts 

386, 387, 390, or 396 establishes an 

advisory committee, its membership 

must include individuals with 

disabilities or parents, family members, 

guardians, advocates, or other 

authorized representatives of the 

individuals; members of minority 

groups; trainees; and providers of 

vocational rehabilitation and 

independent living rehabilitation 

services. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

§ 385.41 What are the requirements 

affecting the collection of data from 

designated State agencies? 

If the collection of data is necessary 

from individuals with disabilities being 

served by two or more designated State 

agencies or from employees of two or 

more of these agencies, the project 

director must submit requests for the 

data to appropriate representatives of 

the affected agencies, as determined by 

the Secretary. This requirement also 

applies to employed project staff and 

individuals enrolled in courses of study 

supported under these programs. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

§ 385.42 What are the requirements 

affecting the dissemination of training 

materials? 

A set of any training materials 

developed under the Rehabilitation 

Training Program must be submitted to 

any information clearinghouse 

designated by the Secretary. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

§ 385.43 What requirements apply to the 

training of rehabilitation counselors and 

other rehabilitation personnel? 

Any grantee who provides training of 

rehabilitation counselors or other 

rehabilitation personnel under any of 

the programs in 34 CFR parts 386, 387, 

390, and 396 must train those 

counselors and personnel on the 

services provided under this Act, and, 

in particular, services provided in 

accordance with amendments made to 

the Rehabilitation Act by the Workforce 

Innovation and Opportunity Act of 

2014. The grantee must also furnish 

training to these counselors and 

personnel regarding applications of 

rehabilitation technology in vocational 

rehabilitation services, the applicability 

of section 504 of this Act, title I of the 

Americans with Disabilities Act of 1990, 

and the provisions of titles II and XVI 

of the Social Security Act that are 

related to work incentives for 

individuals with disabilities. 

(Authority: Sections 12(c), 101(a), and 302 of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c), 721(a) and 772) 

§ 385.44 What requirement applies to the 

training of individuals with disabilities? 

Any grantee or contractor who 

provides training under any of the 

programs in 34 CFR parts 386 through 

390 and 396 shall give due regard to the 

training of individuals with disabilities 

as part of its effort to increase the 

number of qualified personnel available 

to provide rehabilitation services. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) 

§ 385.45 What additional application 

requirements apply to the training of 

individuals for rehabilitation careers? 

(a) All applicants for a grant or 

contract to provide training under any 

of the programs in 34 CFR parts 386 

through 390 and 396 shall demonstrate 

how the training they plan to provide 

will prepare rehabilitation professionals 

to address the needs of individuals with 

disabilities from minority backgrounds. 

(b) All applicants for a grant under 

any of the programs in 34 CFR parts 386 

through 390 and 396 shall include a 

detailed description of strategies that 

will be utilized to recruit and train 

persons 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 members of 

minority groups, who are available to 

provide rehabilitation services. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0018) 

(Authority: Sections 21(a) and (b) and 302 of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 718(a) and (b) and 772) 

§ 385.46 What limitations apply to the rate 

of pay for experts or consultants appointed 

or serving under contract under the 

Rehabilitation Training program? 

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 

which 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. 

(Authority: Section 302(b)(3) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 772(b)(3)) 

■ 11. Part 386 is revised to read as 

follows: 


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Part 386—Rehabilitation Training: 

Rehabilitation Long-Term Training 

Subpart A—General 

Sec. 

386.1 What is the Rehabilitation Long-Term 

Training program? 

386.2 Who is eligible for an award? 

386.3 What regulations apply? 

386.4 What definitions apply? 

Subpart B—[Reserved] 

Subpart C—How Does the Secretary Make 

an Award? 

386.20 What additional selection criteria 

are used under this program? 

386.21 What are the application procedures 

for these programs? 

Subpart D—What Conditions Must Be Met 

After an Award? 

386.30 What are the matching 

requirements? 

386.31 What are the requirements for 

directing grant funds? 

386.32 What are allowable costs? 

386.33 What are the requirements for 

grantees in disbursing scholarships? 

386.34 What assurances must be provided 

by a grantee that intends to provide 

scholarships? 

386.35 What information must be provided 

by a grantee that is an institution of 

higher education to assist designated 

State agencies? 

386.36 What is a grantee’s liability for 

failing to provide accurate and complete 

scholar information to the Department? 

Subpart E—What Conditions Must Be Met 

by a Scholar? 

386.40 What are the requirements for 

scholars? 

386.41 Under what circumstances does the 

Secretary grant a deferral or exception to 

performance or repayment under a 

scholarship agreement? 

386.42 What must a scholar do to obtain an 

exception or a deferral to performance or 

repayment under a scholarship 

agreement? 

386.43 What are the consequences of a 

scholar’s failure to meet the terms and 

conditions of a scholarship agreement? 

Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772, unless otherwise 

noted. 

Subpart A—General 

§ 386.1 What is the Rehabilitation LongTerm Training program? 

(a) The Rehabilitation Long-Term 

Training program provides financial 

assistance for— 

(1) Projects that provide basic or 

advanced training leading to an 

academic degree in one of those fields 

of study identified in paragraph (b) of 

this section; 

(2) Projects that provide a specified 

series of courses or program of study 

leading to award of a certificate in one 

of those fields of study identified in 

paragraph (b) of this section; and 

(3) Projects that provide support for 

medical residents enrolled in residency 

training programs in the specialty of 

physical medicine and rehabilitation. 

(b) The Rehabilitation Long-Term 

Training program is designed to provide 

academic training that leads to an 

academic degree or academic certificate 

in areas of personnel shortages 

identified by the Secretary and 

published in a notice in the Federal 

Register. These areas may include— 

(1) Assisting and supporting 

individuals with disabilities pursuing 

self-employment, business ownership, 

and telecommuting; 

(2) Vocational rehabilitation 

counseling; 

(3) Rehabilitation technology, 

including training on its use, 

applications, and benefits; 

(4) Rehabilitation medicine; 

(5) Rehabilitation nursing; 

(6) Rehabilitation social work; 

(7) Rehabilitation psychiatry; 

(8) Rehabilitation psychology; 

(9) Rehabilitation dentistry; 

(10) Physical therapy; 

(11) Occupational therapy; 

(12) Speech pathology and audiology; 

(13) Physical education; 

(14) Therapeutic recreation; 

(15) Community rehabilitation 

program personnel; 

(16) Prosthetics and orthotics; 

(17) Rehabilitation of individuals who 

are blind or visually impaired, 

including rehabilitation teaching and 

orientation and mobility; 

(18) Rehabilitation of individuals who 

are deaf or hard of hearing; 

(19) Rehabilitation of individuals who 

are mentally ill; 

(20) Undergraduate education in the 

rehabilitation services; 

(21) Independent living; 

(22) Client assistance; 

(23) Administration of community 

rehabilitation programs; 

(24) Rehabilitation administration; 

(25) Vocational evaluation and work 

adjustment; 

(26) Services to individuals with 

specific disabilities or specific 

impediments to rehabilitation, 

including individuals who are members 

of populations that are unserved or 

underserved by programs under this 

Act; 

(27) Job development and job 

placement services to individuals with 

disabilities; 

(28) Supported employment services 

and customized employment services 

for individuals with the most significant 

disabilities; 

(29) Specialized services for 

individuals with significant disabilities; 

(30) Other fields contributing to the 

rehabilitation of individuals with 

disabilities. 

(Authority: Sections 12 and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709 and 772) 

§ 386.2 Who is eligible for an award? 

Those agencies and organizations 

eligible for assistance under this 

program are described in 34 CFR 385.2. 

(Authority: Section 302(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 772(a)) 

§ 386.3 What regulations apply? 

The following regulations apply to the 

Rehabilitation Training: Rehabilitation 

Long-Term Training program: 

(a) The regulations in this part 386. 

(b) The regulations in 34 CFR part 

385. 

(Authority: Section 302(a) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 772(a)) 

§ 386.4 What definitions apply? 

The following definitions apply to 

this program: 

(a) Definitions in 34 CFR 385.4. 

(b) Other definitions. The following 

definitions also apply to this part: 

Academic year means a full-time 

course of study— 

(1) Taken for a period totaling at least 

nine months; or 

(2) Taken for the equivalent of at least 

two semesters, two trimesters, or three 

quarters. 

Certificate means a recognized 

educational credential awarded by a 

grantee under this part that attests to the 

completion of a specified series of 

courses or program of study. 

Professional corporation or 

professional practice means— 

(1) A professional service corporation 

or practice formed by one or more 

individuals duly authorized to render 

the same professional service, for the 

purpose of rendering that service; and 

(2) The corporation or practice and its 

members are subject to the same 

supervision by appropriate State 

regulatory agencies as individual 

practitioners. 

Related agency means— 

(1) An American Indian rehabilitation 

program; or 

(2) Any of the following agencies that 

provide services to individuals with 

disabilities under an agreement or other 

arrangement with a designated State 

agency in the area of specialty for which 

training is provided: 


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(i) A Federal, State, or local agency. 

(ii) A nonprofit organization. 

(iii) A professional corporation or 

professional practice group. 

Scholar means an individual who is 

enrolled in a certificate or degree 

granting course of study in one of the 

areas listed in § 386.1(b) and who 

receives scholarship assistance under 

this part. 

Scholarship means an award of 

financial assistance to a scholar for 

training and includes all disbursements 

or credits for student stipends, tuition 

and fees, books and supplies, and 

student travel in conjunction with 

training assignments. 

State vocational rehabilitation agency 

means the designated State agency as 

defined in 34 CFR 361.5(c)(13). 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

Subpart B—[Reserved] 

Subpart C—How Does the Secretary 

Make an Award? 

§ 386.20 What additional selection criteria 

are used under this program? 

In addition to the criteria in 34 CFR 

385.31(c), the Secretary uses the 

following additional selection criteria to 

evaluate an application: 

(a) Relevance to State-Federal 

vocational rehabilitation service 

program. (1) The Secretary reviews each 

application for information that shows 

that the proposed project appropriately 

relates to the mission of the StateFederal vocational rehabilitation service 

program. 

(2) The Secretary looks for 

information that shows that the project 

can be expected either— 

(i) To increase the supply of trained 

personnel available to State and other 

public or nonprofit agencies involved in 

the rehabilitation of individuals with 

disabilities through degree or certificate 

granting programs; or 

(ii) To improve the skills and quality 

of professional personnel in the 

rehabilitation field in which the training 

is to be provided through the granting 

of a degree or certificate. 

(b) Nature and scope of curriculum. 

(1) The Secretary reviews each 

application for information that 

demonstrates the adequacy of the 

proposed curriculum. 

(2) The Secretary looks for 

information that shows— 

(i) The scope and nature of the 

coursework reflect content that can be 

expected to enable the achievement of 

the established project objectives; 

(ii) The curriculum and teaching 

methods provide for an integration of 

theory and practice relevant to the 

educational objectives of the program; 

(iii) There is evidence of 

educationally focused practical and 

other field experiences in settings that 

ensure student involvement in the 

provision of vocational rehabilitation, 

supported employment, customized 

employment, pre-employment transition 

services, transition services, or 

independent living rehabilitation 

services to individuals with disabilities, 

especially individuals with significant 

disabilities; 

(iv) The coursework includes student 

exposure to vocational rehabilitation, 

supported employment, customized 

employment, employer engagement, and 

independent living rehabilitation 

processes, concepts, programs, and 

services; and 

(v) If applicable, there is evidence of 

current professional accreditation by the 

designated accrediting agency in the 

professional field in which grant 

support is being requested. 

(Authority: Section 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 386.21 What are the application 

procedures for these programs? 

(a) Application. No grant shall be 

awarded or contract entered into under 

the Rehabilitation Long-Term Training 

program unless the applicant has 

submitted to the Secretary an 

application at such time, in such form, 

in accordance with such procedures 

identified by the Secretary and, and 

including such information as the 

Secretary may require, including— 

(1) 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; 

(2) The identification of potential 

employers that provide employment 

that meets the requirements in 

§ 386.33(c); and 

(3) An assurance that data on the 

employment of graduates or trainees 

who participate in the project is 

accurate. 

(b) The Secretary gives the designated 

State agency an opportunity to review 

and comment on applications submitted 

from within the State that it serves. The 

procedures to be followed by the 

applicant and the State are in 34 CFR 

75.155–75.159. 

(Authority: Sections 12(c) and 302(b)(2) and 

(d) of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 772(b)(2) and 

(d)) 

Subpart D—What Conditions Must Be 

Met After an Award? 

§ 386.30 What are the matching 

requirements? 

The grantee is required to contribute 

at least ten percent of the total cost of 

a project under this program. However, 

if the grantee can demonstrate that it has 

insufficient resources to contribute the 

entire match but that it can fulfill all 

other requirements for receiving an 

award, the Secretary may waive part of 

the non-Federal share of the cost of the 

project after negotiations with 

Department staff. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

§ 386.31 What are the requirements for 

directing grant funds? 

(a) A grantee must use at least 65 

percent of the total cost of a project 

under this program for scholarships as 

defined in § 386.4. 

(b) The Secretary may waive the 

requirement in (a) and award grants that 

use less than 65 percent of the total cost 

of the project for scholarships based 

upon the unique nature of the project, 

such as the establishment of a new 

training program or long-term training 

in an emerging field that does not award 

degrees or certificates. 

(c) A scholar may not receive 

concurrent scholarships from more than 

one project under this program. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 386.32 What are allowable costs? 

In addition to those allowable costs 

established in the Education 

Department General Administrative 

Regulations in 34 CFR 75.530 through 

75.562, the following items are 

allowable under long-term training 

projects: 

(a) Student stipends. 

(b) Tuition and fees. 

(c) Books and supplies. 

(d) Student travel in conjunction with 

required practicum or internship. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 386.33 What are the requirements for 

grantees in disbursing scholarships? 

Before disbursement of scholarship 

assistance to an individual, a grantee— 


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(a)(1) Must obtain documentation that 

the individual is— 

(i) A U.S. citizen or national; or 

(ii) A permanent resident of the 

Commonwealth of Puerto Rico, the 

United States Virgin Islands, Guam, 

American Samoa, or the Commonwealth 

of the Northern Mariana Islands; 

(2) Must confirm from documentation 

issued to the individual by the U.S. 

Department of Homeland Security that 

he or she— 

(i) Is a lawful permanent resident of 

the United States; or 

(ii) Is in the United States for other 

than a temporary purpose with the 

intention of becoming a citizen or 

permanent resident; and 

(b) Must confirm that the applicant 

has expressed interest in a career in 

clinical practice, administration, 

supervision, teaching, or research in the 

vocational rehabilitation, supported 

employment, or independent living 

rehabilitation of individuals with 

disabilities, especially individuals with 

significant disabilities; 

(c) Must obtain documentation, as 

described in § 386.40(a)(6), that the 

individual expects to seek and maintain 

employment in a designated State 

agency or in a related agency as defined 

in § 386.4 where 

(1) The employment is in the field of 

study in which the training was 

received or 

(2) Where the job functions are 

directly relevant to the field of study in 

which the training was received. 

(d) Must ensure that the scholarship, 

when added to the amount of financial 

aid the scholar receives for the same 

academic year under title IV of the 

Higher Education Act, does not exceed 

the scholar’s cost of attendance; 

(e) Must limit scholarship assistance 

to no more than four academic years, 

unless the grantee provides an extension 

consistent with the institution’s 

accommodations under section 504 of 

the Act; and 

(f) Must obtain a Certification of 

Eligibility for Federal Assistance from 

each scholar as prescribed in 34 CFR 

75.60, 75.61, and 75.62. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0018) 

(Authority: Sections 12(c) and 302(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(b)) 

§ 386.34 What assurances must be 

provided by a grantee that intends to 

provide scholarships? 

A grantee under this part that intends 

to grant scholarships for any academic 

year must provide the following 

assurances before an award is made: 

(a) Requirement for agreement. No 

individual will be provided a 

scholarship without entering into a 

written agreement containing the terms 

and conditions required by this section. 

An individual will sign and date the 

agreement prior to the initial 

disbursement of scholarship funds to 

the individual for payment of the 

individual’s expenses. An agreement 

must be executed between the grantee 

and scholar for each subsequent year 

that scholarship funds are disbursed 

and must contain the terms and 

conditions required by this section. 

(b) Disclosure to applicants. The 

terms and conditions of the agreement 

between the grantee and a scholar will 

be fully disclosed in the application for 

scholarship. 

(c) Form and terms of agreement. 

Prior to granting each year of a 

scholarship, the grantee will require 

each scholar to enter into a signed 

written agreement in which the scholar 

agrees to the terms and conditions set 

forth in § 386.40. This agreement must 

be in the form and contain any 

additional terms and conditions that the 

Secretary may require. 

(d) Executed agreement. The grantee 

will provide an original signed executed 

payback agreement upon request to the 

Secretary. 

(e) Standards for satisfactory progress. 

The grantee will establish, publish, and 

apply reasonable standards for 

measuring whether a scholar is 

maintaining satisfactory progress in the 

scholar’s course of study. The Secretary 

considers an institution’s standards to 

be reasonable if the standards— 

(1) Conform with the standards of 

satisfactory progress of the nationally 

recognized accrediting agency that 

accredits the institution’s program of 

study, if the institution’s program of 

study is accredited by such an agency, 

and if the agency has those standards; 

(2) For a scholar enrolled in an 

eligible program who is to receive 

assistance under the Rehabilitation Act, 

are the same as or stricter than the 

institution’s standards for a student 

enrolled in the same academic program 

who is not receiving assistance under 

the Rehabilitation Act; and 

(3) Include the following elements: 

(i) Grades, work projects completed, 

or comparable factors that are 

measurable against a norm. 

(ii) A maximum timeframe in which 

the scholar must complete the scholar’s 

educational objective, degree, or 

certificate. 

(iii) Consistent application of 

standards to all scholars within 

categories of students; e.g., full-time, 

part-time, undergraduates, graduate 

students, and students attending 

programs established by the institution. 

(iv) Specific policies defining the 

effect of course incompletes, 

withdrawals, repetitions, and noncredit 

remedial courses on satisfactory 

progress. 

(v) Specific procedures for appeal of 

a determination that a scholar is not 

making satisfactory progress and for 

reinstatement of aid. 

(f) Exit certification. (1) At the time of 

exit from the program, the grantee will 

provide the following information to the 

scholar: 

(i) The name of the institution and the 

number of the Federal grant that 

provided the scholarship. 

(ii) the total amount of scholarship 

assistance received subject to 

§ 386.40(a)(6). 

(iii) The scholar’s field of study and 

the obligation of the scholar to perform 

the service obligation with employment 

that meets the requirements in 

§ 386.40(a)(6)(i). 

(iv) The number of years the scholar 

needs to work to satisfy the work 

requirements in § 386.40(a)(6)(ii). 

(v) The time period during which the 

scholar must satisfy the work 

requirements in § 386.40(a)(7). 

(vi) As applicable, all other 

obligations of the scholar in § 386.40. 

(2) Upon receipt of this information 

from the grantee, the scholar must 

provide written and signed certification 

to the grantee that the information is 

correct. 

(g) Tracking system. The grantee has 

established policies and procedures to 

determine compliance of the scholar 

with the terms of the signed payback 

agreement. In order to determine 

whether a scholar has met the terms and 

conditions set forth in § 386.40, the 

tracking system must include for each 

employment position maintained by the 

scholar— 

(1) Documentation of the employer’s 

name, address, dates of the scholar’s 

employment, name of supervisor, 

position title, a description of the duties 

the scholar performed, and whether the 

employment is full- or part-time; 

(2) Documentation of how the 

employment meets the requirements in 

§ 386.40(a)(6); and 

(3) In the event a grantee is 

experiencing difficulty locating a 

scholar, documentation that the grantee 

has checked with existing tracking 

systems operated by alumni 

organizations. 

(h) Reports. The grantee will make 

annual reports to the Secretary, unless 

more frequent reporting is required by 

the Secretary, that are necessary to carry 


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out the Secretary’s functions under this 

part. 

(i) Repayment status. The grantee will 

immediately report to the Secretary 

whenever a scholar has entered 

repayment status under § 386.43(e) and 

provide all necessary documentation in 

support thereof. 

(j) Records. The grantee will maintain 

accurate and complete records as 

outlined in paragraphs (g) and (h) of this 

section for a period of time not less than 

one year beyond the date that all 

scholars provided financial assistance 

under the grant— 

(1) Have completed their service 

obligation or 

(2) Have entered into repayment 

status pursuant to § 386.43(e). 

(Approved by the Office of Management 

and Budget under control number 1820– 

0018) 

(Authority: Sections 12(c) and 302(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(b)) 

§ 386.35 What information must be 

provided by a grantee that is an institution 

of higher education to assist designated 

State agencies? 

A grantee that is an institution of 

higher education provided assistance 

under this part must cooperate with the 

following requests for information from 

a designated State agency: 

(a) Information required by section 

101(a)(7) of the Act which may include, 

but is not limited to— 

(1) The number of students enrolled 

by the grantee in rehabilitation training 

programs; and 

(2) The number of rehabilitation 

professionals trained by the grantee who 

graduated with certification or 

licensure, or with credentials to qualify 

for certification or licensure, during the 

past year. 

(b) Information on the availability of 

rehabilitation courses leading to 

certification or licensure, or the 

credentials to qualify for certification or 

licensure, to assist State agencies in the 

planning of a program of staff 

development for all classes of positions 

that are involved in the administration 

and operation of the State vocational 

rehabilitation program. 

(Approved by the Office of Management 

and Budget under control number 1820– 

0018) 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 386.36 What is a grantee’s liability for 

failing to provide accurate and complete 

scholar information to the Department? 

The Department may recover, in 

whole or in part, from the grantee the 

debt amount and any collection costs 

described in §§ 386.40 and 386.43, if the 

Department: 

(a) Is unable to collect, or improperly 

collected, some or all of these amounts 

or costs from a scholar and 

(b) Determines that the grantee failed 

to provide to the Department accurate 

and complete documentation described 

in § 386.34. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

Subpart E—What Conditions Must Be 

Met by a Scholar? 

§ 386.40 What are the requirements for 

scholars? 

(a) A scholar must— 

(1) Be enrolled in a course of study 

leading to a certificate or degree in one 

of the fields designated in § 386.1(b); 

(2) Receive the training at the 

educational institution or agency 

designated in the scholarship; 

(3) Not accept payment of educational 

allowances from any other entity if that 

allowance conflicts with the scholar’s 

obligation under section 302 of the Act 

and this part; 

(4) Enter into a signed written 

agreement with the grantee, prior to the 

receipt of scholarship funds, as required 

in § 386.34(c); 

(5) Maintain satisfactory progress 

toward the certificate or degree as 

determined by the grantee; 

(6) Upon exiting the training program 

under paragraph (a)(1) of this section, 

subsequently maintain employment on 

a full- or part-time basis subject to the 

provisions in paragraph (b) of this 

section— 

(i)(A) In a State vocational 

rehabilitation agency or related agency 

as defined in § 386.4; and 

(B)(1) In the field of study for which 

training was received, or 

(2) Where the field of study is directly 

relevant to the job functions performed; 

and 

(ii) For a period of at least the fulltime equivalent of two years for every 

academic year for which assistance 

under this section was received subject 

to the provisions in paragraph (c) of this 

section for part-time coursework; 

(7) Complete the service obligation 

within a period, beginning after the 

recipient exits the training program for 

which the scholarship was awarded, of 

not more than the sum of the number of 

years in the period described in 

paragraph (a)(6)(ii) of this section and 

two additional years; 

(8) Repay all or part of any 

scholarship received, plus interest, if 

the individual does not fulfill the 

requirements of this section, except as 

provided for in § 386.41 for exceptions 

and deferrals; and 

(9) Provide the grantee all requested 

information necessary for the grantee to 

meet the exit certification requirements 

in § 386.34(f) and, as necessary, 

thereafter for any changes necessary for 

the grantee to monitor the scholar’s 

service obligation under this section. 

(b)(1) The period of qualifying 

employment that meets the 

requirements of paragraph (a)(6) of this 

section may begin— 

(i) For courses of study of at least one 

year, only subsequent to the completion 

of one academic year of the training for 

which the scholarship assistance was 

received. 

(ii) For courses of study of less than 

one year, only upon completion of the 

training for which the scholarship 

assistance was received. 

(2) The work completed as part of an 

internship, practicum, or any other 

work-related requirement necessary to 

complete the educational program is not 

considered qualifying employment. 

(c) If the scholar is pursuing 

coursework on a part-time basis, the 

service obligation for these part-time 

courses is based on the equivalent total 

of actual academic years of training 

received. 

(d) If a scholar fails to provide the 

information in paragraph (a)(9) of this 

section or otherwise maintain contact 

with the grantee pursuant to the terms 

of the signed payback agreement and 

enters into repayment status pursuant to 

§ 386.43, the scholar will be held 

responsible for any costs assessed in the 

collection process under that section 

even if that information is subsequently 

provided. 

(Authority: Sections 12(c) and 302(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(b)) 

§ 386.41 Under what circumstances does 

the Secretary grant a deferral or exception 

to performance or repayment under a 

scholarship agreement? 

Based upon sufficient evidence to 

substantiate the grounds as detailed in 

§ 386.42, a repayment exception to or 

deferral of the requirements of 

§ 386.40(a)(6) may be granted, in whole 

or in part, by the Secretary as follows: 

(a) Repayment is not required if the 

scholar— 

(1) Is unable to continue the course of 

study or perform the work obligation 

because of a permanent disability that 

meets one of the following conditions: 

(i) The disability had not been 

diagnosed at the time the scholar signed 

the agreement in § 386.34(c); or 

(ii) The disability did not prevent the 

scholar from performing the 


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requirements of the course of study or 

the work obligation at the time the 

scholar signed the agreement in 

§ 386.34(c) but subsequently worsened; 

or 

(2) Has died. 

(b) Repayment of a scholarship may 

be deferred during the time the scholar 

is— 

(1) Engaging in a full-time course of 

study in the field of rehabilitation at an 

institution of higher education; 

(2) Serving on active duty as a 

member of the armed services of the 

United States for a period not in excess 

of four years; 

(3) Serving as a volunteer under the 

Peace Corps Act; 

(4) Serving as a full-time volunteer 

under title I of the Domestic Volunteer 

Service Act of 1973; 

(5) Experiencing a temporary 

disability that affects the scholar’s 

ability to continue the course of study 

or perform the work obligation, for a 

period not to exceed three years; or 

(c) Under limited circumstances as 

determined by the Secretary and based 

upon credible evidence submitted on 

behalf of the scholar, the Secretary may 

grant an exception to, or deferral of, the 

requirement to repay a scholarship in 

instances not specified in this section. 

These instances could include, but are 

not limited to, the care of a disabled 

spouse, partner, or child or the need to 

accompany a spouse or partner on 

active duty in the Armed Forces. 

(Authority: Sections 12(c) and 302(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(b)) 

§ 386.42 What must a scholar do to obtain 

an exception or a deferral to performance 

or repayment under a scholarship 

agreement? 

To obtain an exception or a deferral 

to performance or repayment under a 

scholarship agreement under § 386.41, a 

scholar must provide the following: 

(a) Written application. A written 

application must be made to the 

Secretary to request a deferral or an 

exception to performance or repayment 

of a scholarship. 

(b) Documentation. Sufficient 

documentation must be provided to 

substantiate the grounds for all deferrals 

or exceptions, including the following, 

as appropriate. 

(1) Documentation necessary to 

substantiate an exception under 

§ 386.41(a)(1) or a deferral under 

§ 386.41(b)(5) must include a letter from 

a qualified physician or other medical 

professional, on official stationery, 

attesting how the disability affects the 

scholar in completing the course of 

study or performing the work obligation. 

The documentation must be less than 

three months old and include the 

scholar’s diagnosis and prognosis and 

ability to complete the course of study 

or work with accommodations. 

(2) Documentation to substantiate an 

exception under § 386.41(a)(2) must 

include a death certificate or other 

evidence conclusive under State law. 

(3) Documentation necessary to 

substantiate a deferral or exception 

under 386.41(c) based upon the 

disability of a spouse, partner, or child 

must meet the criteria, as relevant, in 

paragraph (b)(1) of this section. 

(Approved by the Office of 

Management and Budget under control 

number 1820–0018) 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 386.43 What are the consequences of a 

scholar’s failure to meet the terms and 

conditions of a scholarship agreement? 

In the event of a failure to meet the 

terms and conditions of a scholarship 

agreement or to obtain a deferral or an 

exception as provided in § 386.41, the 

scholar must repay all or part of the 

scholarship as follows: 

(a) Amount. The amount of the 

scholarship to be repaid is proportional 

to the employment obligation not 

completed. 

(b) Interest rate. The Secretary charges 

the scholar interest on the unpaid 

balance owed in accordance with 31 

U.S.C. 3717. 

(c) Interest accrual. (1) Interest on the 

unpaid balance accrues from the date 

the scholar is determined to have 

entered repayment status under 

paragraph (e) of this section. 

(2) Any accrued interest is capitalized 

at the time the scholar’s repayment 

schedule is established. 

(3) No interest is charged for the 

period of time during which repayment 

has been deferred under § 386.41. 

(d) Collection costs. Under the 

authority of 31 U.S.C. 3717, the 

Secretary may impose reasonable 

collection costs. 

(e) Repayment status. A scholar enters 

repayment status on the first day of the 

first calendar month after the earliest of 

the following dates, as applicable: 

(1) The date the scholar informs the 

Secretary he or she does not plan to 

fulfill the employment obligation under 

the agreement. 

(2) Any date when the scholar’s 

failure to begin or maintain employment 

makes it impossible for that individual 

to complete the employment obligation 

within the number of years required in 

§ 386.34(c)(1). 

(f) Amounts and frequency of 

payment. The scholar shall make 

payments to the Secretary that cover 

principal, interest, and collection costs 

according to a schedule established by 

the Secretary. 

(Authority: Sections 12(c) and 302(b) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(b)) 

■ 12. Part 387 is revised to read as 

follows: 

PART 387—INNOVATIVE 

REHABILITATION TRAINING 

Subpart A—General 

Sec. 

387.1 What is the Innovative Rehabilitation 

Training Program? 

387.2 Who is eligible for assistance under 

this program? 

387.3 What regulations apply to this 

program? 

387.4 What definitions apply to this 

program? 

387.5 What types of projects are authorized 

under this program? 

Subpart B—[Reserved] 

Subpart C—[Reserved] 

Subpart D—How Does the Secretary Make 

a Grant? 

387.30 What additional selection criteria 

are used under this program? 

Subpart E—What Conditions Must Be Met 

by a Grantee? 

387.40 What are the matching 

requirements? 

387.41 What are allowable costs? 

Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c), and 772, unless otherwise 

noted. 

Subpart A—General 

§ 387.1 What is the Innovative 

Rehabilitation Training Program? 

This program is designed— 

(a) To develop new types of training 

programs for rehabilitation personnel 

and to demonstrate the effectiveness of 

these new types of training programs for 

rehabilitation personnel in providing 

rehabilitation services to individuals 

with disabilities; 

(b) To develop new and improved 

methods of training rehabilitation 

personnel so that there may be a more 

effective delivery of rehabilitation 

services to individuals with disabilities 

by designated State rehabilitation 

agencies and designated State 

rehabilitation units or other public or 

non-profit rehabilitation service 

agencies or organizations; and 

(c) To develop new innovative 

training programs for vocational 

rehabilitation professionals and 

paraprofessionals to have a 21st century 

understanding of the evolving labor 

force and the needs of individuals with 


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disabilities so they can more effectively 

provide vocational rehabilitation 

services to individuals with disabilities. 

(Authority: Sections 12(c), 121(a)(7), and 302 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 721(a)(7), and 

772) 

§ 387.2 Who is eligible for assistance 

under this program? 

Those agencies and organizations 

eligible for assistance under this 

program are described in 34 CFR 385.2. 

(Authority: Section 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 387.3 What regulations apply to this 

program? 

(a) 34 CFR part 385 (Rehabilitation 

Training); and 

(b) The regulations in this part 387. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 387.4 What definitions apply to this 

program? 

The definitions in 34 CFR part 385 

apply to this program. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772)) 

§ 387.5 What types of projects are 

authorized under this program? 

The Innovative Rehabilitation 

Training Program supports time-limited 

pilot projects through which new types 

of rehabilitation workers may be trained 

or through which innovative methods of 

training rehabilitation personnel may be 

demonstrated. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772)) 

Subpart B—[Reserved] 

Subpart C—[Reserved] 

Subpart D—How Does the Secretary 

Make a Grant? 

§ 387.30 What additional selection criteria 

are used under this program? 

In addition to the criteria in 34 CFR 

385.31(c), the Secretary uses the 

following additional selection criteria to 

evaluate an application: 

(a) Relevance to State-Federal 

rehabilitation service program. (1) The 

Secretary reviews each application for 

information that shows that the 

proposed project appropriately relates to 

the mission of the State-Federal 

rehabilitation service program. 

(2) The Secretary looks for 

information that shows that the project 

can be expected either— 

(i) To increase the supply of trained 

personnel available to public and 

private agencies involved in the 

rehabilitation of individuals with 

disabilities; or 

(ii) To maintain and improve the 

skills and quality of rehabilitation 

personnel. 

(b) Nature and scope of curriculum. 

(1) The Secretary reviews each 

application for information that 

demonstrates the adequacy and scope of 

the proposed curriculum. 

(2) The Secretary looks for 

information that shows that— 

(i) The scope and nature of the 

training content can be expected to 

enable the achievement of the 

established project objectives of the 

training project; 

(ii) The curriculum and teaching 

methods provide for an integration of 

theory and practice relevant to the 

educational objectives of the program; 

(iii) There is evidence of 

educationally focused practicum or 

other field experiences in settings that 

assure student involvement in the 

provision of vocational rehabilitation or 

independent living rehabilitation 

services to individuals with disabilities, 

especially individuals with significant 

disabilities; and 

(iv) The didactic coursework includes 

student exposure to vocational 

rehabilitation processes, concepts, 

programs, and services. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

Subpart E—What Conditions Must Be 

Met by a Grantee? 

§ 387.40 What are the matching 

requirements? 

A grantee must contribute to the cost 

of a project under this program in an 

amount satisfactory to the Secretary. 

The part of the costs to be borne by the 

grantee is determined by the Secretary 

at the time of the grant award. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 387.41 What are allowable costs? 

In addition to those allowable costs 

established under 34 CFR 75.530– 

75.562, the following items are 

allowable under Innovative 

Rehabilitation training projects— 

(a) Student stipends; 

(b) Tuition and fees; and 

(c) Student travel in conjunction with 

training assignments. 

(Authority: Sections 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

PART 388—[REMOVED AND 

RESERVED] 

■ 13. Part 388 is removed and reserved. 

PART 389—[REMOVED AND 

RESERVED] 

■ 14. Part 389 is removed and reserved. 

■ 15. Part 390 is revised to read as 

follows: 

PART 390—REHABILITATION SHORTTERM TRAINING 

Subpart A—General 

Sec. 

390.1 What is the Rehabilitation ShortTerm Training program? 

390.2 Who is eligible for assistance under 

this program? 

390.3 What regulations apply to this 

program? 

390.4 What definitions apply to this 

program? 

Subpart B—What Kinds of Projects Does 

the Department of Education Assist Under 

This Program? 

390.10 What types of projects are 

authorized under this program? 

Subpart C—[Reserved] 

Subpart D—How Does the Secretary Make 

a Grant? 

390.30 What additional selection criterion 

is used under this program? 

Subpart E—What Conditions Must Be Met 

by a Grantee? 

390.40 What are the matching 

requirements? 

390.41 What are allowable costs? 

Authority: Sections 12(a) and (c) and 302 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(a) and (c) and 772, 

unless otherwise noted. 

Subpart A—General 

§ 390.1 What is the Rehabilitation ShortTerm Training program? 

This program is designed for the 

support of special seminars, institutes, 

workshops, and other short-term 

courses in technical matters relating to 

the vocational, medical, social, and 

psychological rehabilitation programs, 

independent living services programs, 

and client assistance programs. 

(Authority: Sections 12(a)(2) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(a)(2) and 772) 

§ 390.2 Who is eligible for assistance 

under this program? 

Those agencies and organizations 

eligible for assistance under this 

program are described in 34 CFR 385.2. 

(Authority: Section 302 of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 772) 


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§ 390.3 What regulations apply to this 

program? 

(a) 34 CFR part 385 (Rehabilitation 

Training); and 

(b) The regulations in this part 390. 

(Authority: Section 302 of the Rehabilitation 

Act of 1973, as amended; 29 U.S.C. 772) 

§ 390.4 What definitions apply to this 

program? 

The definitions in 34 CFR part 385 

apply to this program. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

Subpart B—What Kinds of Projects 

Does the Department of Education 

Assist Under This Program? 

§ 390.10 What types of projects are 

authorized under this program? 

(a) Projects under this program are 

designed to provide short-term training 

and technical instruction in areas of 

special significance to the vocational, 

medical, social, and psychological 

rehabilitation programs, supported 

employment programs, independent 

living services programs, and client 

assistance programs. 

(b) Short-term training projects may 

be of regional or national scope. 

(c) Conferences and meetings in 

which training is not the primary focus 

may not be supported under this 

program. 

(Authority: Section 12(a)(2) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(a)(2) and 772) 

Subpart C—[Reserved] 

Subpart D—How Does the Secretary 

Make a Grant? 

§ 390.30 What additional selection 

criterion is used under this program? 

In addition to the criteria in 34 CFR 

385.31(c), the Secretary uses the 

following additional selection criterion 

to evaluate an application: 

(a) Relevance to State-Federal 

rehabilitation service program. (1) The 

Secretary reviews each application for 

information that shows that the 

proposed project appropriately relates to 

the mission of the State-Federal 

rehabilitation service programs. 

(2) The Secretary looks for 

information that shows that the 

proposed project can be expected to 

improve the skills and competence of— 

(i) Personnel engaged in the 

administration or delivery of 

rehabilitation services; and 

(ii) Others with an interest in the 

delivery of rehabilitation services. 

(b) Evidence of training needs. The 

Secretary reviews each application for 

evidence of training needs as identified 

through training needs assessment 

conducted by the applicant or by 

designated State agencies or designated 

State units or any other public and 

private nonprofit rehabilitation service 

agencies or organizations that provide 

rehabilitation services and other 

services authorized under the Act, 

whose personnel will receive the 

training. 

(Authority: Section 12(c) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c)) 

Subpart E—What Conditions Must Be 

Met by a Grantee? 

§ 390.40 What are the matching 

requirements? 

A grantee must contribute to the cost 

of a project under this program in an 

amount satisfactory to the Secretary. 

The part of the costs to be borne by the 

grantee is determined by the Secretary 

at the time of the award. 

(Authority: Section 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

§ 390.41 What are allowable costs? 

(a) In addition to those allowable 

costs established in 34 CFR 75.530– 

75.562, the following items are 

allowable under short-term training 

projects: 

(1) Trainee per diem costs; 

(2) Trainee travel in connection with 

a training course; 

(3) Trainee registration fees; and 

(4) Special accommodations for 

trainees with handicaps. 

(b) The preparation of training 

materials may not be supported under a 

short-term training grant unless the 

materials are essential for the conduct of 

the seminar, institute, workshop or 

other short course for which the grant 

support has been provided. 

(Authority: Section 12(c) and 302 of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772) 

■ 16. Part 396 is revised to read as 

follows: 

PART 396—TRAINING OF 

INTERPRETERS FOR INDIVIDUALS 

WHO ARE DEAF OR HARD OF 

HEARING AND INDIVIDUALS WHO 

ARE DEAF-BLIND 

Subpart A—General 

Sec. 

396.1 What is the Training of Interpreters 

for Individuals Who Are Deaf or Hard of 

Hearing and Individuals Who Are DeafBlind program? 

396.2 Who is eligible for an award? 

396.3 What regulations apply? 

396.4 What definitions apply? 

396.5 What activities may the Secretary 

fund? 

Subpart B—[Reserved] 

Subpart C—How Does One Apply for an 

Award? 

396.20 What must be included in an 

application? 

Subpart D—How Does the Secretary Make 

an Award? 

396.30 How does the Secretary evaluate an 

application? 

396.31 What additional selection criteria 

are used under this program? 

396.32 What additional factors does the 

Secretary consider in making awards? 

396.33 What priorities does the Secretary 

apply in making awards? 

396.34 What are the matching 

requirements? 

Authority: Sections 12(c) and 302(a) and (f) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 772(a) and (f), 

unless otherwise noted. 

Subpart A—General 

§ 396.1 What is the Training of Interpreters 

for Individuals Who Are Deaf or Hard of 

Hearing and Individuals Who Are Deaf-Blind 

program? 

The Training of Interpreters for 

Individuals Who Are Deaf or Hard of 

Hearing and Individuals Who Are DeafBlind program is designed to establish 

interpreter training programs or to 

provide financial assistance for ongoing 

interpreter programs to train a sufficient 

number of qualified interpreters 

throughout the country in order to meet 

the communication needs of individuals 

who are deaf or hard of hearing and 

individuals who are deaf-blind by— 

(a) Training interpreters to effectively 

interpret and transliterate between 

spoken language and sign language, and 

to transliterate between spoken language 

and oral or tactile modes of 

communication; 

(b) Ensuring the maintenance of the 

interpreting skills of qualified 

interpreters; and 

(c) Providing opportunities for 

interpreters to raise their skill level 

competence in order to meet the highest 

standards approved by certifying 

associations. 

(Authority: Sections 12(c) and 302(a) and (f) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c) and 772(a) and (f)) 

§ 396.2 Who is eligible for an award? 

Public and private nonprofit agencies 

and organizations, including 

institutions of higher education, are 

eligible for assistance under this 

program. 

(Authority: Section 302(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 772(f)) 


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Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 21057 

§ 396.3 What regulations apply? 

The following regulations apply to the 

Training of Interpreters for Individuals 

Who Are Deaf or Hard of Hearing and 

Individuals Who Are Deaf-Blind 

program: 

(a) 34 CFR part 385 (Rehabilitation 

Training); and 

(b) The regulations under this part 

396. 

(Authority: Sections 12(c) and 302(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(f)) 

§ 396.4 What definitions apply? 

(a) Definitions in EDGAR. The 

following terms defined in 34 CFR 77.1 

apply to this part: 

Applicant 

Application 

Award 

Equipment 

Grant 

Nonprofit 

Private 

Project 

Public 

Secretary 

Supplies 

(b) Definitions in the rehabilitation 

training regulations. The following 

terms defined in 34 CFR 385.4(b) apply 

to this part: 

Individual With a Disability 

Institution of Higher Education 

(c) Other definitions. The following 

definitions also apply to this part: 

Existing program that has 

demonstrated its capacity for providing 

interpreter training services means an 

established program with— 

(1) A record of training qualified 

interpreters who are serving the deaf, 

hard of hearing, and deaf-blind 

communities; and 

(2) An established curriculum that 

uses evidence-based practices in the 

training of interpreters and promising 

practices when evidence-based practices 

are not available. 

Individual who is deaf means an 

individual who has a hearing 

impairment of such severity that the 

individual must depend primarily upon 

visual modes, such as sign language, 

speech reading, and gestures, or reading 

and writing to facilitate communication. 

Individual who is deaf-blind means an 

individual— 

(1)(i) Who has a central visual acuity 

of 20/200 or less in the better eye with 

corrective lenses, or a field defect such 

that the peripheral diameter of visual 

field subtends an angular distance no 

greater than 20 degrees, or a progressive 

visual loss having a prognosis leading to 

one or both of these conditions; 

(ii) Who has a chronic hearing 

impairment so severe that most speech 

cannot be understood with optimum 

amplification, or a progressive hearing 

loss having a prognosis leading to this 

condition; and 

(iii) For whom the combination of 

impairments described in paragraphs 

(1)(i) and (ii) of this definition causes 

extreme difficulty in attaining 

independence in daily life activities, 

achieving psychosocial adjustment, or 

obtaining a vocation; 

(2) Who, despite the inability to be 

measured accurately for hearing and 

vision loss due to cognitive or 

behavioral constraints, or both, can be 

determined through functional and 

performance assessment to have severe 

hearing and visual disabilities that 

cause extreme difficulty in attaining 

independence in daily life activities, 

achieving psychosocial adjustment, or 

obtaining vocational objectives; or 

(3) Who meets any other requirements 

that the Secretary may prescribe. 

Individual who is hard of hearing 

means an individual who has a hearing 

impairment such that, in order to 

facilitate communication, the individual 

depends upon visual modes, such as 

sign language, speech reading, and 

gestures, or reading and writing, in 

addition to any other auditory 

information. 

Interpreter for individuals who are 

deaf or hard of hearing means a 

qualified professional who uses sign 

language skills, cued speech, or oral 

interpreting skills, as appropriate to the 

needs of individuals who are deaf or 

hard of hearing, to facilitate 

communication between individuals 

who are deaf or hard of hearing and 

other individuals. 

Interpreter for individuals who are 

deaf-blind means a qualified 

professional who uses tactile or other 

manual language or fingerspelling 

modes, as appropriate to the needs of 

individuals who are deaf-blind, to 

facilitate communication between 

individuals who are deaf-blind and 

other individuals. 

Qualified professional means an 

individual who has— 

(1) Met existing certification or 

evaluation requirements equivalent to 

the highest standards approved by 

certifying associations; and 

(2) Successfully demonstrated 

interpreting skills that reflect the 

highest standards approved by 

certifying associations through prior 

work experience. 

Related agency means— 

(1) An American Indian rehabilitation 

program; or 

(2) Any of the following agencies that 

provide services to individuals with 

disabilities under an agreement or other 

arrangement with a designated State 

agency in the area of specialty for which 

training is provided: 

(i) A Federal, State, or local agency. 

(ii) A nonprofit organization. 

(iii) A professional corporation or 

professional practice group. 

(Authority: Sections 12(c) and 302(f) of the 

Rehabilitation Act of 1973, as amended and 

Section 206 of Pub. L. 98–221; 29 U.S.C. 

709(c) and 772(f) and 29 U.S.C 1905) 

§ 396.5 What activities may the Secretary 

fund? 

The Secretary may award grants to 

public or private nonprofit agencies or 

organizations, including institutions of 

higher educations, to provide assistance 

for establishment of interpreter training 

programs or for projects that provide 

training in interpreting skills for persons 

preparing to serve, and persons who are 

already serving, as interpreters for 

individuals who are deaf or hard of 

hearing, and as interpreters for 

individuals who are deaf-blind in public 

and private agencies, schools, and other 

service-providing institutions. 

(Authority: Section 302(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 772(f)) 

Subpart B—[Reserved] 

Subpart C—How Does One Apply for 

an Award? 

§ 396.20 What must be included in an 

application? 

Each applicant shall include in the 

application— 

(a) A description of the manner in 

which the proposed interpreter training 

program will be developed and operated 

during the five-year period following 

the award of the grant; 

(b) A description of the 

communication needs for training 

interpreters in the geographical area to 

be served by the project; 

(c) A description of the applicant’s 

capacity or potential for providing 

training of interpreters for individuals 

who are deaf or hard of hearing and 

interpreters for individuals who are 

deaf-blind that is evidence-based, and 

based on promising practices when 

evidence-based practices are not 

available; 

(d) An assurance that any interpreter 

trained or retrained under this program 

shall meet those standards of 

competency for a qualified professional, 

that the Secretary may establish; 

(e) An assurance that the project shall 

cooperate or coordinate its activities, as 

appropriate, with the activities of other 

projects funded under this program; 

(f) The descriptions required in 34 

CFR 385.45 with regard to the training 


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21058 Federal Register / Vol. 80, No. 73 / Thursday, April 16, 2015 / Proposed Rules 

of individuals with disabilities, 

including those from minority groups, 

for rehabilitation careers; and 

(g) Such other information as the 

Secretary may require. 

(Approved by the Office of 

Management and Budget under control 

number 1820–0018) 

(Authority: Sections 12(c), 21(c), and 302(f) 

of the Rehabilitation Act of 1973, as 

amended; 29 U.S.C. 709(c), 718(c), and 

772(f)) 

Subpart D—How Does the Secretary 

Make an Award? 

§ 396.30 How does the Secretary evaluate 

an application? 

(a) The Secretary evaluates 

applications under the procedures in 34 

CFR part 75. 

(b) The Secretary evaluates each 

application using selection criteria in 

§ 396.31. 

(c) In addition to the selection criteria 

described in paragraph (b) of this 

section, the Secretary evaluates each 

application using— 

(1) Selection criteria in 34 CFR 

75.210; 

(2) Selection criteria established 

under 34 CFR 75.209; or 

(3) A combination of selection criteria 

established under 34 CFR 75.209 and 

selection criteria in 34 CFR 75.210. 

(Authority: Section 302(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 772(f)) 

§ 396.31 What additional selection criteria 

are used under this program? 

In addition to the criteria in 34 CFR 

396.30(c), the Secretary uses the 

following additional selection criterion 

to evaluate an application. The 

Secretary reviews each application to 

determine the extent to which— 

(a) The proposed interpreter training 

project was developed in consultation 

with State Vocational Rehabilitation 

agencies and their related agencies and 

consumers; 

(b) The training is appropriate to the 

needs of both individuals who are deaf 

or hard of hearing and individuals who 

are deaf-blind and to the needs of public 

and private agencies that provide 

services to either individuals who are 

deaf or hard of hearing or individuals 

who are deaf-blind in the geographical 

area to be served by the training project; 

(c) The curriculum for the training of 

interpreters includes evidence-based 

practices, and promising practices when 

evidence-based practices are not 

available; 

(d) There is a working relationship 

between the interpreter training project 

and State Vocational Rehabilitation 

agencies and their related agencies, and 

consumers; and 

(e) There are opportunities for 

individuals who are deaf or hard of 

hearing and individuals who are deafblind to provide input regarding the 

design and management of the training 

project. 

(Authority: Sections 12(c) and 302(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(f)) 

§ 396.32 What additional factors does the 

Secretary consider in making awards? 

In addition to the selection criteria 

listed in § 396.31 and 34 CFR 75.210, 

the Secretary, in making awards under 

this part, considers the geographical 

distribution of projects throughout the 

country, as appropriate, in order to best 

carry out the purposes of this program. 

To accomplish this, the Secretary may 

in any fiscal year make awards of 

regional or national scope. 

(Authority: Sections 12(c) and 302(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(f)) 

§ 396.33 What priorities does the Secretary 

apply in making awards? 

(a) The Secretary, in making awards 

under this part, gives priority to public 

or private nonprofit agencies or 

organizations, including institutions of 

higher education, with existing 

programs that have demonstrated their 

capacity for providing interpreter 

training. 

(b) In announcing competitions for 

grants and contracts, the Secretary may 

give priority consideration to— 

(1) Increasing the skill level of 

interpreters for individuals who are deaf 

or hard of hearing and individuals who 

are deaf-blind in the unserved or 

underserved geographic areas; 

(2) Existing programs that have 

demonstrated their capacity for 

providing interpreter training services 

that raise the skill level of interpreters 

in order to meet the highest standards 

approved by certifying associations; and 

(3) Specialized topical training based 

on the communication needs of 

individuals who are deaf or hard of 

hearing and individuals who are deafblind. 

(Authority: Sections 12(c) and 302(f)(1)(C) of 

the Rehabilitation Act of 1973, as amended; 

29 U.S.C. 709(c) and 772(f)(1)(C)) 

§ 396.34 What are the matching 

requirements? 

A grantee must contribute to the cost 

of a project under this program in an 

amount satisfactory to the Secretary. 

The part of the costs to be borne by the 

grantee is determined by the Secretary 

at the time of the grant award. 

(Authority: Section 12(c) and 302(f) of the 

Rehabilitation Act of 1973, as amended; 29 

U.S.C. 709(c) and 772(f)) 

[FR Doc. 2015–05535 Filed 4–2–15; 4:15 pm] 

BILLING CODE 4000–01–P 


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