[Federal Register Volume 65, Number 122 (Friday, June 23, 2000)]
[Proposed Rules]
[Pages 39252-39257]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 00-15863]



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Part III





Department of Education





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34 CFR Part 373



Special Demonstration Programs; Proposed Rule

Federal Register / Vol. 65, No. 122 / Friday, June 23, 2000 / 
Proposed Rules

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DEPARTMENT OF EDUCATION

34 CFR Part 373


Special Demonstration Programs

AGENCY: Office of Special Education and Rehabilitative Services, 
Department of Education.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes to implement regulations governing the 
Special Demonstration Programs. These regulations are needed to 
implement the changes in the Rehabilitation Act Amendments of 1998. The 
proposed regulations would provide definitions and requirements for 
grants and contracts under the expanded authority for the Special 
Demonstration Programs.

DATES: We must receive your comments on or before September 21, 2000.

ADDRESSES: Address all comments about these proposed regulations to 
Tammy Nelson, U.S. Department of Education, 400 Maryland Avenue, SW., 
room 3214 Switzer Building, Washington, DC 20202-2575. If you prefer to 
send your comments through the Internet, use the following address: 
<a href="/cdn-cgi/l/email-protection#c397a2aeaeba9c8da6afb0acad83a6a7eda4acb5"><span class="__cf_email__" data-cfemail="5e0a3f33332701103b322d31301e3b3a70393128">[email protected]</span></a>

FOR FURTHER INFORMATION CONTACT: Thomas E. Finch, Ph.D., 400 Maryland 
Avenue, SW., room 3038 MES, Washington, DC 20202-2575. Telephone: (202) 
205-8292. If you use a telecommunications device for the deaf (TDD), 
you may call the Federal Information Relay Service (FIRS) at 1-800-877-
8339.
    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.

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 Order 12866 and its overall requirements of 
reducing regulatory burden that might result from these proposed 
regulations. Please let us know of any further opportunities we should 
take to reduce potential costs or increase potential benefits while 
preserving the effective and efficient administration of the program.
    During and after the comment period, you may inspect all public 
comments about these proposed regulations in the Mary E. Switzer 
Building, room 3038, 330 C Street SW., Washington, DC, between the 
hours of 8:30 a.m. and 4:00 p.m., Eastern time, Monday through Friday 
of each week except Federal holidays.

Assistance to Individuals With Disabilities in Reviewing the 
Rulemaking Record

    On request, we will supply an appropriate aid, such as a reader or 
print magnifier, 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 aid, you may call (202) 205-
8113 or (202) 260-9895. If you use a TDD, you may call the Federal 
Information Relay Service at 1-800-877-8339.

Need To Regulate

    These proposed regulations would implement changes to the 
Rehabilitation Act of 1973 (Act) made by the Rehabilitation Act 
Amendments of 1998, enacted as part of the Workforce Investment Act of 
1998 (Pub. Law 105-220), on August 7, 1998, and as further amended in 
1998 by technical amendments in the Reading Excellence Act and the Carl 
D. Perkins Vocational and Applied Technology Education Act Amendments 
of 1998 (hereinafter collectively referred to as the 1998 Amendments).
    There have been significant changes and expanded authority for 
Special Demonstration Programs found in section 303(b) of the Act. The 
purpose of the program retains its focus on the expansion and 
improvement of rehabilitation services; however, the purpose of the 
program now includes the expansion and improvement of other services 
authorized under the Act. The amended regulations give the Secretary 
greater flexibility in making awards that are relevant and responsive 
to the purpose of the program and current needs of individuals with 
disabilities. This additional flexibility is used in determining 
eligible entities (Sec. 373.2), the definition of ``rehabilitation 
services'' (Sec. 373.4), and priorities for competitions (Sec. 373.6). 
For example, in Sec. 373.6(b)(16), the Secretary would be permitted to 
identify priorities other than those specifically listed in Sec. 373.6. 
This flexibility in identifying additional priorities would allow the 
Secretary to be responsive to recent legislative mandates and short-
term or unanticipated needs of individuals with disabilities. In 
addition, the Secretary could fund projects that use new developments 
in the rehabilitation field after the publication of these regulations, 
i.e., new research findings, technical advances in assistive devices, 
and innovative methods developed by successful grant projects.
    In addition, these proposed regulations would provide needed 
definitions and clarification of the terms and conditions for 
applicants for the Special Demonstration Programs.
    The following provisions of these proposed regulations are based 
entirely on the Act:

Sec. 373.1
Sec. 373.2(a)(1) through (5)
Sec. 373.3
Sec. 373.5
Sec. 373.10
Sec. 373.21
Sec. 373.24

    The remaining provisions are based on a combination of statutory 
authority and the Secretary's authority under section 12(c) of the Act 
to establish policy by regulating.

Section 373.4--Definitions for Special Demonstration Programs

    This section contains terms from the Act and other terms that may 
be used in applying for a grant and administering a grant project. The 
definitions would provide potential applicants and grantees with the 
knowledge to better meet the priorities and service requirements for 
competitions and activities.

Section 373.6--Priorities and Other Factors for Competitions

    Some of the listed priorities under the Special Demonstration 
Programs are specifically authorized by the Act. Others are based on 
current trends and needs relative to services for individuals with 
disabilities and on accepted methods of improving and expanding those 
services. For example, Replication Projects are included as a priority 
in these regulations even though there is no corresponding language in 
the Act. It is anticipated the replication of successful projects will 
lead to the expansion and improvement of rehabilitation and other 
services since the replication must pertain to different populations 
than the original project, such as in different geographical areas or 
for different disability groups. The replication and expansion of 
previously successful projects is consistent with the overall purpose 
of the Special Demonstration Programs.

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    Pursuant to Sec. 373.6, the Secretary may announce priorities 
without further public comment. Additional information and requirements 
pertinent to the priorities would be announced in the Federal Register 
and in the application package for a given competition. These 
requirements would be based on the needs identified by the Secretary at 
the time of publication of the Federal Register announcement.

Section 373.11--Other Factors Considered by the Secretary

    These proposed regulations would inform the potential applicant of 
information the Secretary may consider, in addition to the peer review 
scores, when making an award.

Section 373.20--Match

    Although match is not a requirement under the Act, the Secretary 
may decide to institute a matching requirement and publish the 
requirement in the Federal Register when announcing a competition under 
the Special Demonstration Programs. The required match would not exceed 
10 percent of the total project costs. The matching funds may be 
provided in cash or in-kind.

Section 373.21--Reporting Requirements

    Under section 306 of the Act, the Secretary may require that 
recipients of grants under this title submit information, including 
data, necessary to measure project outcomes and performance, including 
any data needed to comply with the Government Performance and Results 
Act of 1993 (GPRA). Government agencies are required to establish 
performance indicators to be used in measuring or assessing the 
relevant results, service levels, and outcomes of each program, such as 
the Special Demonstration Programs. These performance indicators would 
allow Congress to identify waste and inefficiency, as well as strong 
performance results in Federal programs. The Department is developing a 
uniform data collection instrument for use by grantees under this 
program in the future. This instrument will be published in the Federal 
Register for public comment. The inclusion of Sec. 373.21 emphasizes 
the authority for the Secretary to require needed information.

Section 373.22--Limits on Indirect Costs

    The Secretary is proposing to limit indirect cost reimbursement for 
grants under this program 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. This 
would allow maximum use of program funds to serve individuals with 
disabilities. The Secretary does not believe that this would adversely 
affect potential applicants under this program.

Section 373.23--Additional Requirements

    Additional requirements for grantees are listed in Sec. 373.23 
which, with the exception of paragraph (a)(4) of this section, are 
required by the Act or have historically been required in regulations 
pertaining to the Special Demonstration Programs. Evaluative 
information required by paragraph (a)(4) of this section would be 
important in determining any significant impact Special Demonstration 
projects have on services to individuals with disabilities and in 
identifying the outcomes and benefits of a project as other 
organizations consider replication. In addition, evaluative information 
would be important as the Secretary considers future funding of 
individual grantees. Paragraph (b) of this section restates the 
prohibition on the awarding of subgrants included in the Education 
Department General Administrative Regulations in 34 CFR 75.708. The 
Secretary believes the requirement should be emphasized here to enhance 
clarity for grantees regarding applicable regulations.

Goals 2000: Educate America Act

    The Goals 2000: Educate America Act (Goals 2000) focuses the 
Nation's education reform efforts on the eight National Education Goals 
and provides a framework for meeting them. Goals 2000 promotes new 
partnerships to strengthen schools and expands the Department's 
capacities for helping communities to exchange ideas and obtain 
information needed to achieve the goals.
    These proposed regulations would address the National Education 
Goal that every adult American will possess the knowledge and skills 
necessary to compete in a global economy. These proposed regulations 
would further the objectives of this Goal by implementing programs to 
provide vocational rehabilitation services and other services to 
provide increased employment opportunities for individuals with 
disabilities.

Clarity of the Regulations

    Executive Order 12866 and the President's Memorandum of June 1, 
1998, on ``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:
    <bullet> Are the requirements in the proposed regulations clearly 
stated?
    <bullet> Do the proposed regulations contain technical terms or 
other wording that interferes with their clarity?
    <bullet> Does the format of the proposed regulations (grouping and 
order of sections, use of headings, paragraphing, etc.) aid or reduce 
their clarity?
    <bullet> Would the proposed regulations be easier to understand if 
we divided them into more (but shorter) sections? (A ``section'' is 
preceded by the symbol ``Sec. '' and a numbered heading; for example, 
Sec. 373.10 What selection criteria does the Secretary use? 
    <bullet> 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?
    <bullet> What else could we do to make the proposed regulations 
easier to understand?
    Send any comments that concern how the Department could make these 
proposed regulations easier to understand to the person listed in the 
ADDRESSES section of the preamble.

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. The proposed regulations would provide funding to 
organizations to meet the needs of individuals with disabilities 
through discretionary grants.

Paperwork Reduction Act of 1995

    These proposed regulations do not contain any information 
collection requirements.

Intergovernmental Review

    This program is 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 this program.

Assessment of Educational Impact

    The Secretary particularly requests comments on whether these 
proposed

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regulations would require transmission of information that any other 
agency or authority of the United States gathers or makes available.

Electronic Access to This Document

    You may view 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 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, DC, 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 84.235 Special 
Demonstration Programs)

List of Subjects in 34 CFR Part 373

    Grant programs--education, Vocational rehabilitation.

    Dated: June 19, 2000.
Curtis L. Richards,
Acting Assistant Secretary for Special Education and Rehabilitative 
Services.

    For the reasons discussed in the preamble, the Secretary proposes 
to amend title 34 of the Code of Federal Regulations by adding a new 
part 373 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 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: 29 U.S.C. 773(b), unless otherwise noted.

Subpart A--General


Sec. 373.1  What is the purpose of the Special Demonstration Programs?

    The purpose of this program is to provide competitive grants to, or 
enter into contracts with, eligible entities to expand and improve the 
provision of 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 evaluations activities.

(Authority: 29 U.S.C. 701(b) and (c), 711(c), and 773(b))

Sec. 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: 29 U.S.C. 711(c) and 773(b)(2)

Sec. 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 74 (Administration of Grants and Agreements with 
Institutions of Higher Education, Hospitals, and other Non-profit 
Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (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 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 35 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)).
    (9) 34 CFR part 86 (Drug and Alcohol Abuse Prevention).
    (10) 34 CFR part 97 (Protection of Human Subjects).
    (11) 34 CFR part 98 (Student Rights in Research, Experimental 
Programs, and Testing).
    (12) 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).

(Authority: 29 U.S.C. 711(c))

Sec. 373.4  What definitions apply?

    The following definitions apply to this part:
    Act means the Rehabilitation Act of 1973, as amended.

(Authority: 29 U.S.C. 701 et seq.)

    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:
    (a) Individuals with chronic and progressive diseases that may 
become more disabling, such as multiple sclerosis, progressive visual 
disabilities, or HIV positive.
    (b) Individuals in the acute stages of injury or illness, 
including, but not limited to, diabetes, traumatic brain injury, 
stroke, burns, or amputation.

(Authority: 29 U.S.C. 711(c))


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    Employment outcome is defined in 34 CFR 361.5.

(Authority: 29 U.S.C. 711(c))

    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:
    (a) During assessments of eligibility and vocational rehabilitation 
needs.
    (b) 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: 29 U.S.C. 711(c))

    Individual with a disability is defined as follows:
    (a) For an individual who will receive rehabilitation services 
under this part, an individual with a disability means an individual--
    (1) Who has a physical or mental impairment which, for that 
individual, constitutes or results in a substantial impediment to 
employment; and
    (2) Who can benefit in terms of an employment outcome from 
vocational rehabilitation services.
    (b) For all other purposes of this part, an individual with a 
disability means an individual--
    (1) Who has a physical or mental impairment that substantially 
limits one or more major life activities;
    (2) Who has a record of such an impairment; or
    (3) Who is regarded as having such an impairment.
    (c) 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: 29 U.S.C 705(20)(A) and (B))

    Individual with a significant disability means an individual--
    (a) 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;
    (b) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (c) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental 
retardation, mental illness, multiple sclerosis, muscular dystrophy, 
musculo-skeletal disorders, neurological disorders (including stroke 
and epilepsy), paraplegia, quadriplegia and other spinal cord 
conditions, sickle-cell anemia, specific learning 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: 29 U.S.C. 705(21)(A))

    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. Rehabilitation services for an individual 
with a disability may include--
    (a) An assessment for determining eligibility and vocational 
rehabilitation needs by qualified personnel, including, if appropriate, 
an assessment by personnel skilled in rehabilitation technology;
    (b) Counseling and guidance, including information and support 
services to assist an individual in exercising informed choice;
    (c) Referral and other services to secure needed services from 
other agencies;
    (d) Job-related services, including job search and placement 
assistance, job retention services, follow-up services, and follow-
along services;
    (e) Vocational and other training services, including the provision 
of personal and vocational adjustment services, books, tools, and other 
training materials;
    (f) Diagnosis and treatment of physical and mental impairments;
    (g) Maintenance for additional costs incurred while the individual 
is receiving services;
    (h) Transportation;
    (i) On-the-job or other related personal assistance services;
    (j) Interpreter and reader services;
    (k) Rehabilitation teaching services, and orientation and mobility 
services;
    (l) Occupational licenses, tools, equipment, and initial stocks and 
supplies;
    (m) Technical assistance and other consultation services to conduct 
market analysis, develop business plans, and otherwise provide 
resources to eligible individuals who are pursuing self-employment or 
telecommuting or establishing a small business operation as an 
employment outcome;
    (n) Rehabilitation technology, including telecommunications, 
sensory, and other technological aids and devices;
    (o) Transition services for individuals with disabilities that 
facilitate the achievement of employment outcomes;
    (p) Supported employment services;
    (q) Services to the family of an individual with a disability 
necessary to assist the individual to achieve an employment outcome;
    (r) Post-employment services necessary to assist an individual with 
a disability to retain, regain, or advance in employment; and
    (s) Expansion of employment opportunities for individuals with 
disabilities, which includes, but is not limited to--
    (1) Self-employment, business ownership, and entreprenuership;
    (2) Non-traditional jobs, professional employment, and work 
settings;
    (3) 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
    (4) Other services as identified by the Secretary and published in 
the Federal Register.

(Authority: 29 U.S.C. 711(c) and 723(a))

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

    Youth or Young adult with disabilities means individuals with 
disabilities who are between the ages of 16 and 26 inclusive when 
entering the program.

(Authority: 29 U.S.C. 711(c) and 723(a))


Sec. 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 Sec. 373.4.
    (2) For projects that provide independent living services or 
activities,

[[Page 39256]]

individuals are eligible who meet the definition in paragraph (b) of an 
``individual with a disability'' as stated in Sec. 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 Sec. 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: 29 U.S.C. 711(c) and 723(a))


Sec. 373.6  What are the priorities and other factors and requirements 
for competitions?

    (a)(1) In making an award, the Secretary may limit competitions to, 
or otherwise give priority to, one or more of the priority projects 
listed in paragraph (b) of this section that are identified by the 
Secretary and published in a notice in the Federal Register.
    (2) The Secretary also will identify in the notice the following:
    (i) Specific required priority project activities authorized under 
section 303 of the Act that the applicant must conduct for the priority 
project to be approved for funding.
    (ii) Any of the additional factors listed in paragraph (c) of this 
section that the Secretary may consider in making an award.
    (b) Priority projects are as follows:
    (1) Special projects of service delivery.
    (2) Model demonstration.
    (3) Technical assistance.
    (4) Systems change.
    (5) Special studies, research, or evaluations.
    (6) Dissemination and utilization.
    (7) Replication.
    (8) Special projects and demonstration of service delivery for 
adults who are low-functioning and deaf or low-functioning and hard of 
hearing.
    (9) Supported employment.
    (10) Model transitional rehabilitation services for youth and young 
adults with disabilities.
    (11) Expansion of employment opportunities for individuals with 
disab1ilities, as authorized in paragraph (s) of the definition of 
``rehabilitation services'' as stated in Sec. 373.4.
    (12) Projects to promote meaningful access of individuals with 
disabilities to employment-related services under Title I of the 
Workforce Investment Act of 1998 and under other Federal laws.
    (13) Innovative methods of promoting achievement of high-quality 
employment outcomes.
    (14) The demonstration of the effectiveness of early intervention 
activities in improving employment outcomes.
    (15) Projects to find alternative methods of providing affordable 
transportation services to individuals with disabilities.
    (16) 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 section 2(b) and (c) of the Act.
    (c) The Secretary may identify and publish in the Federal Register 
for specific projects listed in paragraph (b) of this section one or 
more of the following factors, including any specific elements defining 
any factor (e.g., the Secretary may identify ages 16 through 21 to be 
the specific age range for a particular competition):
    (1) Specific stages of the rehabilitation process.
    (2) Unserved and underserved populations.
    (3) Unserved and underserved geographical areas.
    (4) Individuals with significant disabilities.
    (5) Low-incidence disability populations.
    (6) Individuals residing in federally designated Empowerment Zones 
and Enterprise Communities.
    (7) Types of disabilities.
    (8) Specific age ranges.
    (9) Other specific populations and geographical areas.
    (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 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: 29 U.S.C. 711(c) and 773(b)(4) and (5))

Subpart B--How Does the Secretary Make a Grant?


Sec. 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: 29 U.S.C. 711(c) and 723(a))


Sec. 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: 29 U.S.C. 711(c) and 723(a))

Subpart C--What Conditions Must Be Met By a Grantee?


Sec. 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: 29 U.S.C. 711(c) and 723(a))


Sec. 373.21  What are the reporting requirements?

    (a) In addition to the program and fiscal reporting requirements in 
EDGAR 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: 29 U.S.C. 711(c) and 776)


Sec. 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

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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: 29 U.S.C. 711(c))


Sec. 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.
    (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 34 CFR part 74, subpart C--Post-Award Requirements, 
Procurement Standards.

    (Authority: 29 U.S.C. 711(c) and 717)


Sec. 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: 29 U.S.C. 711(c))

[FR Doc. 00-15863 Filed 6-22-00; 8:45 am]
BILLING CODE 4000-01-P


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