35768 Federal Register / Vol. 65, No. 108 / Monday, June 5, 2000 / Notices

DEPARTMENT OF EDUCATION

National Institute on Disability and

Rehabilitation Research; Notice of

Funding Priorities

AGENCY: Department of Education.

ACTION: Notice of final funding priorities

for fiscal years 2000–2001 for new

awards for the Alternative Financing

Program, and the Alternative Financing

Technical Assistance Program, both

authorized under Title III of the

Assistive Technology Act of 1998.

SUMMARY: The Assistant Secretary for

the Office of Special Education and

Rehabilitative Services announces final

funding priorities for awards under the

Alternative Financing Program (AFP)

and one award under the Alternative

Financing Technical Assistance

Program (AFTAP) under the National

Institute on Disability and

Rehabilitation Research (NIDRR) for

fiscal years 2000–2001. The Assistant

Secretary takes this action in order to

award grants or cooperative agreements

to States to establish or maintain

alternative financing projects to increase

access to assistive technology (AT) for

individuals with disabilities. Currently,

major service programs such as

Medicaid, Medicare, special education,

and vocational rehabilitation cannot

meet the growing demand for AT. Most

individuals with disabilities do not have

the private financial resources to

purchase the AT they need. Loan

programs offer individuals with

disabilities attractive options that

significantly enhance their access to AT.

DATES: These priorities take effect on

August 4, 2000.

FOR FURTHER INFORMATION CONTACT:

Donna Nangle, U.S. Department of

Education, 400 Maryland Avenue, SW.,

Room 3414, Switzer Building,

Washington, DC 20202–2645.

Telephone: (202) 205–5880. Individuals

who use a telecommunications device

for the deaf (TDD) may call the TDD

number at (202) 205–4475. Internet:

Donna_Nangle@ed.gov.

Individuals with disabilities may

obtain this document in an alternate

format (e.g., Braille, large print,

audiotape, or computer diskette) on

request to the contact person listed in

the preceding paragraph.

Waiver of Rulemaking

Pursuant to section 437(d)(1) of the

General Education Provisions Act, the

Assistant Secretary has determined that

these priorities are exempt from the

Administrative Procedure Act (5 U.S.C.

553). Section 437(d)(1) exempts from

rulemaking the first grant competition

under a new or substantially revised

program authority. This is NIDRR’s first

grant competition under the ATAct,

which replaced the Technology-Related

Assistance for Individuals with

Disabilities Act of 1988, as amended

(Tech Act), and was signed into law on

November 13, 1998.

SUPPLEMENTARY INFORMATION: This

notice contains two final priorities

authorized under the ATAct. The

priorities are: (1) Alternative Financing

Program (AFP); and (2) Alternative

Financing Technical Assistance

Program (AFTAP).

These final priorities support the

National Education Goal that calls for

all Americans to possess the knowledge

and skills necessary to compete in a

global economy and exercise the rights

and responsibilities of citizenship.

The authority for the Secretary to

fund a financing program and technical

assistance (TA) program is contained in

Title III of the ATAct.

Note: This notice of final priorities does

not solicit applications. A notice inviting

applications under this competition will be

published in the Federal Register concurrent

with or following the publication of the

notice of final priorities.

Alternative Financing Program

Background

For the first time, NIDRR is funding

the Alternative Financing Program,

authorized under Title III of the ATAct.

The AFP will assist States to establish

or maintain alternative financing

projects to increase access to AT for

individuals with disabilities.

The ATAct reaffirms the Federal role

of promoting access to AT devices and

services for individuals with disabilities

and continues the AT State Grant

Program, authorized under Title I of the

ATAct of 1998. In 1988 Congress passed

the Tech Act to assist States to identify

and respond to the AT needs of

individuals with disabilities.

Reauthorized in 1994, the Tech Act

provided Federal funds as a catalyst for

permanent systemic change and as

leverage within States to make AT

devices and services more readily

available to individuals with

disabilities. All of the 56 State grantees

(50 States, District of Columbia, Puerto

Rico, American Samoa, Virgin Islands,

Northern Marianna, Guam) have

demonstrated success in increasing

availability of, funding for, access to and

provision of, AT devices and services.

On a State level, AT State Grant

Program grantees have improved

delivery of AT to individuals with

disabilities.

Most often, these efforts involve

increased and measurable

responsiveness on the part of public

purchasing systems to provide AT

devices and services for individuals

with disabilities. Public systems

include, but are not limited to,

Medicaid, Medicare, special education

and vocational rehabilitation. These

public systems have, to varying degrees,

acknowledged and met the AT needs of

individuals with disabilities who

qualify for the particular program.

The Rehabilitation Act of 1973, as

amended, includes several provisions

requiring inclusion of AT devices and

services among the range of available

services offered by the vocational

rehabilitation system. The Individuals

with Disabilities Education Act (IDEA)

has included AT devices and services

since 1990. IDEA requires school

districts to take AT into account in their

evaluations and planning for students

with disabilities. For eligible recipients,

Medicaid offers a viable though often

unpredictable funding source. Some

States have investigated ways to

increase the responsiveness of private

insurance companies to the AT needs of

privately insured individuals with

disabilities. For individuals who

qualify, the aforementioned public and

private agencies should, and typically

would be, approached to fund AT

devices and services.

In 1998, NIDRR sponsored five

regional hearings on issues affecting

appropriate and timely access to AT

devices and services. (Blueprint for the

Millennium: An Analysis of Regional

Hearings, 1998) In each of the hearings,

financing of AT was cited as a persistent

barrier as was a general lack of

knowledge about public and private

financing options. Testimony from

consumers, families, service providers,

and developers referenced a need for

financial incentives for both individuals

and businesses to improve AT use. The

hearings also identified the need for

new funding strategies and models to

expand funds for AT purchases. Public

testimony also indicated that AT users

want maximum autonomy in identifying

their technology needs and the devices

and services that will best meet these

needs.

Moreover, testimony emphasized that

separately, or in combination, the major

service programs do not have sufficient

resources to meet the growing demand

for AT and that there also is a lack of

private financial resources for the

purchase of AT. As the number of

individuals with disabilities increases

and the elderly population expands, and

as consumers and their families become

increasingly aware of the role and

Federal Register / Vol. 65, No. 108 / Monday, June 5, 2000 / Notices 35769

benefits of AT, the demand for AT will

increase; the result will continue to be

a tremendous strain on public and

private third party funding sources. A

significant recommendation of the

hearings was that the AT State Grant

Program grantees continue to work with

other entities such as consumer

organizations, community-based groups,

and private lending institutions to

establish alternative financing projects

for the purchase of AT devices and

services. Alternative financing projects

offer individuals with disabilities

attractive options and can serve as

financing alternatives for individuals

with disabilities who do not qualify for

public financing programs. Loan

programs enhance access to AT devices

and services in a way that underscores

independence and inclusion.

Currently, a total of 32 AT State Grant

Program grantees operate alternative

financing projects under Title I. The

success of these Title I alternative

financing projects has stimulated

interest in creating opportunities for

additional States to establish alternative

financing projects and for States that

have an existing projects to expand

available resources. Currently,

individuals who apply for loans under

the Title I AT State Grant Program

alternative financing projects obtain

loans that range from $250 to $50,000.

The estimated average loan is between

$5,000 and $7,500. (Wallace, J.,

Assistive Technology Loan Financing: A

Funding Alternative of Increasing

Importance. Tech Express, 1998). The

Title I AT State Grant Program

alternative financing projects include

various types of activities, such as

revolving, guaranteed, interest buydown, traditional or combination

program models. States typically enter

into an agreement with a private lending

institution such as a bank or credit

union and involve consumers in the

selection and approval procedures.

In establishing the AFP, the Assistant

Secretary recognizes that significant

challenges and barriers continue to face

individuals with disabilities and their

families. A pervasive barrier is the

absence of funding and information

about funding opportunities for AT

devices and services. The AFP will

enable individuals with disabilities to

access a funding alternative to public

assistance programs. NIDRR has $3.9

million available for awards under this

program in fiscal year 2000 and the

President has requested $15 million for

fiscal year 2001.

Description of the Alternative Financing

Program

The AFP creates a new Federal

program to pay a share of the cost of

establishment or expansion, and

administration of, an alternative AT

financing program. The program

features one or more alternative

financing mechanisms to allow

individuals with disabilities and their

family members, guardians, advocates,

and others to purchase AT devices and

services.

Priorities

Under 34 CFR 75.105(c)(3) and Title

III of the ATAct, the Assistant Secretary

gives an absolute preference to

applications that meet the following

priorities. The Assistant Secretary will

fund under this competition only

applications that meet one of the

following priorities.

Priority 1: Alternative Financing

Program

The Assistant Secretary establishes

the AFP in order to provide assistance

to States so that individuals with

disabilities of all ages and their family

members, guardians, advocates, and

authorized representatives will have

increased access to funding for AT

devices and services through alternative

financing mechanisms (loans).

Consistent with statutory requirements:

(a) The State must enter into a

contract with a community-based

organization (including a group of such

organizations), such as Centers for

Independent Living, that has

individuals with disabilities involved in

organizational decision making at all

organizational levels, to administer the

alternative-financing program. The

contract shall: (1) Include a provision

requiring that the program funds,

including the Federal and non-Federal

shares of the cost of the program, be

administered in a manner consistent

with the provisions of this title; (2)

include provisions for oversight and

evaluation to protect Federal financial

interests; and (3) require the

community-based organization to enter

into a contract with a commercial

lending institution or State financing

agency.

(b) The State that receives a grant and

any community-based organization that

enters into a contract with the State,

must annually submit, 12 months after

receipt of the fiscal year 2000 award,

each of the following policies,

procedures, data, and information: (1) A

procedure to review and process in a

timely manner requests for financial

assistance for immediate and potential

technology needs, including

consideration of methods to reduce

paperwork and duplication of effort,

particularly relating to need, eligibility,

and determination of the specific AT

device or service to be financed through

the project; (2) A policy and procedure

to assure that access to the AFP shall be

given to consumers regardless of type of

disability, age, income level, location of

residence in the State, or type of AT

device or AT service for which

financing is requested through the

program; and (3) A procedure to assure

consumer-controlled oversight of the

program.

(c) The State must provide the

following information: (1) The ratio of

funds provided by the State for the AFP

to funds provided by the Federal

Government; (2) the type of alternative

financing mechanism used and the

community-based organization with

which the State entered into a contract;

(3) the following information

concerning each disabled individual

served by the project: The amount of

assistance, type of AT device or AT

service financed through the project,

type of disability, age, gender, race,

ethnicity, socioeconomic status, primary

language, geographic location within the

State, employment status, whether the

consumer is part of an underrepresented

population or rural population, and

whether the consumer tried to secure

financial support from other sources

and, if so, a description of those sources.

(d) The State must provide one or a

combination of the following: (1) A lowinterest loan fund; (2) an interest buydown program,) a revolving loan fund;

(4) a loan guarantee or insurance

program, (5) a program operated by a

partnership among private entities for

the purchase, lease, or other acquisition

of AT devices or AT services; or (6)

another mechanism that meets the

requirements of this program and is

described in an application, peer

reviewed and approved by the Assistant

Secretary.

(e)(1) The State must provide

matching funds so that the Federal share

of the cost of the AFP is not more than

50 percent. Because section 302

(a)(3)(A) of the ATAct requires each

State to receive a minimum award of

$500,000, the State match must be at

least $500,000; and (2) The State must

provide the non-Federal share of the

cost of the AFP in cash, from State,

local, or private sources;

(f) The State must provide an

assurance that the State will continue

the AFP after Federal funding has

terminated on a permanent basis or for

as long as the mechanisms exist to

support such a program;

35770 Federal Register / Vol. 65, No. 108 / Monday, June 5, 2000 / Notices

(g) The State must provide an

assurance that, and information

describing the manner in which, the

program will expand and emphasize

consumer choice and control;

(h) The State must provide an

assurance that the State will supplement

and not supplant other Federal, State,

and local public funds expended to

provide any currently operating AFP in

the State;

(i) The State must provide an

assurance that the State will place all

funds that support the AFP, including

funds repaid during the life of the

program, in a permanent separate

account, apart from any other fund;

(j) The State must provide an

assurance that the State’s communitybased organization will invest funds in

low-risk securities in which a regulated

insurance company may invest under

the law of the State if the organization

administering funds invests funds

within this account;

(k) The State must provide an

assurance that the State’s communitybased organization will administer the

funds with the same judgement and care

that a person of prudence, discretion,

and intelligence would exercise in the

management of the financial affairs of

such person;

(l) The State must provide an

assurance that funds comprised of the

principal and interest from the State

account for this activity will be

available to support the AFP;

(m) The State must provide an

assurance that any interest or

investment income that accrues on or

derives from such funds after such

funds have been placed under the

control of the organization

administering the AFP, but before such

funds are distributed for purposes of

supporting the program, will be the

property of the organization

administering the program; and

(n) The State must provide an

assurance that the State will limit the

indirect costs of the total amount

available for the AFP to 10 percent,

including both the Federal and State

funds.

In addition to the statutory

requirements, each project must:

(a) Provide in accessible formats

materials that can be used by potential

loan applicants and lending institutions

to obtain, share and disseminate

information on loan availability,

eligibility requirements and procedures

and general loan related updates; and

(b) Coordinate and share information,

resources and with the State ATAct

projects.

(c) Conduct and submit to NIDRR and

the AFTAP an annual evaluation of its

activities using the data collection

instrument to be developed the AFTAP

described in Priority 2.

Priority 2: Alternative Financing

Technical Assistance Program

The Assistant Secretary establishes

AFTAP in order to assist States in

meeting the objectives of the AFP.

Consistent with the statutory

requirements, the AFTAP project must:

(a) Provide assistance to States

preparing applications for the AFP;

(b) Assist States to develop and

implement the AFP; and

(c) Provide any other information and

TA the Assistant Secretary determines

to be appropriate to assist States to

achieve the objectives of AFP.

In addition to the statutory

requirements, the AFPTA project must:

(a) Develop and implement a selfassessment instrument to determine the

effectiveness of the AFPTA;

(b) Provide in accessible formats

materials that contains useful and

replicable information on loan projects

and can be used by States under the

AFP and States planning to apply under

the AFP to improve the efficiency and

effectiveness of their loan projects

working closely with the National

Internet Project located at the Georgia

Institute on Technology;

(c) Develop a uniform data collection

instrument for use by the AFP that

includes, at a minimum, data on

features of loan programs and unique

characteristics and outcomes in order to

comply with annual reporting

requirements; and

(d) Share information and collaborate

with the TA programs funded under

Section 104 of the AT Act.

Electronic Access to This Document

You may review this document, as

well as all other Department of

Education documents published in the

Federal Register, in text or Adobe

Portable Document Format (PDF) on the

Internet at either of the following sites:

http://ocfo.ed.gov/fedreg.htm

http://www.ed.gov/news.html

To use the PDF you must have the

Adobe Acrobat Reader, which is

available free at either of the previous

sites. If you have questions about using

the PDF, call the U.S. Government

Printing Office (GPO), toll free, at 1–

888–293–6498; or in the Washington,

D.C., area at (202) 512–1530.

Note: 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 on GPO

access at: http://www.access.gpo.gov/nara/

index.html.

(Catalog of Federal Domestic Assistance

Number 84.224C, Assistive Technology Act

Alternative Loan Financing, Title III)

Program Authority: 29 U.S.C. 3051–3058

Dated: May 31, 2000.

Judith E. Heumann,

Assistant Secretary for Special Education and

Rehabilitative Services.

[FR Doc. 00–13945 Filed 6–2–00; 8:45 am]

BILLING CODE 4000–01–U

DEPARTMENT OF EDUCATION

[CFDA No.: 84.224C]

Office of Special Education and

Rehabilitative Services National

Institute on Disability and

Rehabilitation Research; Notice

Inviting Applications for New Awards

in Fiscal Years 2000–2001 for the

Alternative Financing Program (AFP),

and the Alternative Financing

Technical Assistance Program

(AFTAP), Both Authorized Under Title

III of the Assistive Technology Act

(ATAct)

Note to Applicants: This notice is a

complete application package. Together with

the statute authorizing the program and the

Education Department General

Administrative Regulations (EDGAR), this

notice contains information, application

forms, and instructions needed to apply for

a grant under these competitions.

These programs support the National

Education Goal that calls for all

Americans to possess the knowledge

and skills necessary to compete in a

global economy and exercise the rights

and responsibilities of citizenship.

The estimated funding levels in this

notice do not bind the Department of

Education to make awards in any of

these categories, or to any specific

number of awards or funding levels,

unless otherwise specified in statute.

Applicable Regulations: The

Education Department General

Administrative Regulations (EDGAR),

34 CFR parts 74, 75, 77, 80, 81, 82, 85,

and 86 and the Notice of Final Priority

published elsewhere in this issue of the

Federal Register.

Absolute Priorities: These

competitions focus on projects designed

to meet the absolute priorities in the

notice of final priority for these

programs, published elsewhere in this

issue of the Federal Register. Under 34

CFR 75.105(c)(3), we consider only

applications that meet one of the

absolute priorities.

Pre-Application Meeting: Interested

parties are invited to participate in a

pre-application meeting to discuss the

funding priorities for the AFP and the

AFTAP and to receive technical