39492 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Proposed Rules

DEPARTMENT OF EDUCATION

34 CFR Part 361

RIN 1820–AB52

State Vocational Rehabilitation

Services Program

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 the

State Vocational Rehabilitation Services

Program (VR program) by revising the

scope of available employment

outcomes under the VR program. The

proposed regulations would redefine the

term ‘‘employment outcome’’ to include

only those outcomes in which an

individual with a disability works in an

integrated setting. This action is

necessary to reflect the purpose of Title

I of the Rehabilitation Act of 1973, as

amended (Act) (29 U.S.C. 701–744),

which is to enable individuals with

disabilities who participate in the VR

program to achieve an appropriate

employment outcome in the

competitive, integrated labor market.

DATES: We must receive your comments

by August 25, 2000.

ADDRESSES: Address all comments about

these proposed regulations to Fredric K.

Schroeder, U.S. Department of

Education, 400 Maryland Avenue, SW.,

room 3028, Mary E. Switzer Building,

Washington, DC 20202–2531.

Comments also may be sent by facsimile

to (202) 205–9874. If you prefer to send

your comments through the Internet,

use the following address:

comments@ed.gov.

You must include the term ‘‘VR

Regulations—Employment Outcome’’ in

the subject line of your electronic

message.

If you want to comment on the

information collection requirements,

you must send your comments to the

Office of Management and Budget at the

address listed in the Paperwork

Reduction Act section of this preamble.

You may also send a copy of these

comments to the Department

representative named in this section.

FOR FURTHER INFORMATION CONTACT:

Beverlee Stafford, U.S. Department of

Education, 400 Maryland Avenue, SW.,

room 3014, Mary E. Switzer Building,

Washington, DC. 20202–2531.

Telephone (202) 205–8831. If you use a

telecommunications device for the deaf

(TDD), you may call (202) 205–5538.

Individuals with disabilities may

obtain this document in an alternate

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

audiotape, or computer diskette) on

request to Katie Mincey, Director,

Alternate Formats Center, U.S.

Department of Education, 400 Maryland

Avenue, SW., room 1000, Mary E.

Switzer Building, Washington, DC.

20202–2531. Telephone (202) 260–9895.

If you use a telecommunications device

for the deaf (TDD), you may call the

Federal Information Relay Service

(FIRS) 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 Order 12866

and its overall requirement 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 VR program.

During and after the comment period,

you may inspect all public comments

about these proposed regulations in

room 3214, Mary E. Switzer Building,

330 C Street, SW., Washington, DC,

between the hours of 8:30 a.m. and 4

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.

Background

The State Vocational Rehabilitation

Services Program (VR program) makes

available to individuals with

disabilities, particularly those with

significant disabilities, necessary

vocational rehabilitation (VR) services

so that they may enter or continue to

work in the competitive, integrated

labor market along with the general

population. The chief measure of

success of a State VR agency’s efforts in

serving a participant in the VR program

is whether the individual has achieved

an appropriate employment outcome, in

particular a high-quality, competitive

job in an integrated setting. Integrated

employment settings generally refer to

those settings that are typically found in

the community in which individuals

with disabilities have the same

opportunity to interact with others as is

given to any other person (see 34 CFR

361.5(b)(30)(ii) of the current VR

program regulations for a detailed

definition). Accordingly, this notice of

proposed rulemaking (NPRM) addresses

the scope of available outcomes under

the VR program in order to ensure that

program participants attain jobs in the

competitive, integrated labor market as

the Act intends.

The statutory authority for the VR

program, Title I of the Act, has, over

time, placed greater and greater

emphasis on integration, a fact further

reflected in recent reauthorizations. As

indicated in section 100(a)(1) of the Act,

a provision retained in the 1998

Amendments to the Act, individuals

with disabilities, including individuals

with the most significant disabilities,

have demonstrated their ability to

achieve gainful employment in

integrated settings if appropriate

services and supports are provided.

Recent legislative history also reflects

Congress’ commitment to ensuring that

individuals with significant disabilities

be able to progress to jobs in the

competitive integrated job market (see

e.g., Senate Report 105–166, p. 13).

The scope of employment outcomes

authorized under the VR program must

be consistent with the definition of

‘‘employment outcome’’ in section 7(11)

of the Act. That section of the Act,

which explicitly refers only to

employment outcomes that occur in

integrated settings, defines

‘‘employment outcome’’ as full-time or,

if appropriate, part-time competitive

employment in the integrated labor

market, supported employment, or any

other vocational outcome the Secretary

may determine to be appropriate

(including the vocational outcome of

self-employment, telecommuting, or

business ownership), consistent with

the requirements of the Act [emphasis

added].

Thus, the Act entrusts the Secretary to

determine the scope of employment

outcomes, other than competitive

employment (i.e., integrated work at or

Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Proposed Rules 39493

above minimum wage—see 34 CFR

361.5(b)(10)) and supported

employment (integrated work with

ongoing support services—see 34 CFR

361.5(b)(46)), which individuals with

disabilities should pursue under the VR

program consistent with the Act’s

requirements.

Through this NPRM, we are proposing

to amend the current regulations

governing the VR program (34 CFR part

361) to no longer consider extended

employment (also referred to as nonintegrated or sheltered employment) as

an employment outcome under the VR

program. We believe the proposed

regulatory changes are necessary to

implement the clear emphasis that the

Act places on competitive employment

and supported employment—outcomes

that occur in integrated settings. At the

same time, however, the proposed

changes would not prohibit State VR

agencies from serving individuals, or

enabling individuals to work, in

extended employment settings (also

referred to as non-integrated or

sheltered settings) if appropriate to the

individual, but would ensure that those

individuals are provided the services

that they need to transition to the

competitive labor market in the

community.

On February 28, 2000, we published

an NPRM (65 FR 10620) that would

implement extensive changes to the

current VR program regulations to

reflect statutory changes made by the

Rehabilitation Act Amendments of 1998

(1998 Amendments). As mentioned

previously, the proposal in this new

NPRM to change the regulatory

definition of the term ‘‘employment

outcome,’’ and to implement

corresponding changes to other sections

of the current regulations affected by the

revised definition, are based not only on

the 1998 Amendments, but on the

emphasis that the Act, over time, has

placed on enabling individuals in

sheltered employment to transition to

employment outcomes in the

competitive, integrated labor market.

Although these proposed changes were

not developed in time to be included in

the February 28 NPRM, we consider this

new NPRM critical to realizing the full

potential of individuals with significant

disabilities. Thus, it is our intent to

implement these new changes as part of

the final regulations that follow the

February 28 proposed regulations.

We also note that the proposed

regulations would not exclude from the

scope of ‘‘employment outcomes’’ under

the VR program all positions obtained

by individuals with disabilities under

certain types of set-aside contracts

authorized by the Javits-Wagner-O’Day

Act (JWOD), 41 U.S.C. 46–48. For

example, service-related jobs performed

under JWOD contracts and in settings

that satisfy the definition of ‘‘integrated

setting’’ in 34 CFR 361.5(b)(30)(ii) (i.e.,

a setting typically found in the

community in which the VR program

participant’s interaction with nondisabled persons is the same as that

experienced by a non-disabled person in

a comparable position) would meet the

definition of ‘‘employment outcome’’ in

the proposed regulations. Those

positions are to be contrasted with jobs

in sheltered settings performed under

JWOD contracts or other arrangements

that are not integrated and would not be

considered employment outcomes. The

determination as to whether any job,

including those obtained under JWOD

contracts, meets the regulatory

definition of ‘‘integrated setting,’’ and

therefore qualifies as an ‘‘employment

outcome’’ under the proposed

regulations, should be made on a caseby-case basis.

Section-by-Section Summary

Section 361.5 Applicable Definitions

Employment Outcome; Extended

Employment

The chief revision to the current

regulations that would be implemented

by this NPRM concerns the scope of

outcomes, other than competitive

employment and supported

employment, covered under the

definition of ‘‘employment outcome.’’

Specifically, the current regulatory

definition would be changed to include

only employment in integrated settings,

meaning that jobs in sheltered or other

non-integrated settings would no longer

be recognized as ‘‘employment

outcomes’’ under the VR program. In

particular, ‘‘extended employment,’’

which is defined in both the current and

proposed regulations as work in a nonintegrated or sheltered setting for a

nonprofit entity along with any support

services that the individual needs in

order to prepare for competitive

employment, would not be an

authorized employment outcome under

the proposed regulations.

The changes to the current regulations

proposed in this NPRM, while essential

to fulfilling the expectation in the Act

that individuals with disabilities are

generally capable of pursuing

competitive, integrated work in the

community, should not cause great

difficulty to State VR units in

administering their programs. Under the

current regulations, the VR program

pays the short-term costs of services

(e.g., vocational evaluation, work

adjustment, and other training services)

that enable an individual to perform

work in an extended employment

setting. The ongoing costs of services

associated with an individual who

remains in extended employment are

typically borne by other State and local

resources. In addition, only a relatively

small number of individuals exit the VR

program after obtaining non-integrated

employment (about 3.5% of outcomes

nationwide in 1998, the most current

data available). Thus, it is evident that

many State units already have been

deemphasizing non-integrated work as a

final employment goal for some time.

Those units have come to realize, as is

reflected throughout the Act’s legislative

history, that in the past individuals with

disabilities were too often

inappropriately placed in sheltered

settings as a final outcome rather than

as a temporary placement from which

the individual could transition to a job

in the community.

The proposed regulations would

continue to allow State units to use

extended employment jobs as interim

steps for VR program participants. The

State unit, however, could only consider

the individual to have achieved an

employment outcome after the

individual transitions to integrated work

in the community. We believe this

approach better reflects the relationship

between the VR program and sheltered

employment and is further supported by

the relatively few VR program

participants who engage in extended

employment. To the extent extended

employment continues to be used as a

temporary worksite for an eligible

individual under the VR program, the

State unit should continue to provide

services to that individual, but should

not identify (for State or Federal

reporting purposes, for purposes of

satisfying VR program performance

measures, etc.) that person’s job as a

successful outcome until the individual

enters the integrated labor market in the

community.

In addition, §§ 361.47 and 361.55 of

the proposed regulations, which are

discussed in the following paragraphs,

specify recordkeeping and annual

review requirements, respectively, that

are designed to ensure that persons in

extended employment receive necessary

support in order to continue to pursue

integrated employment. We believe that

these proposed requirements, which are

much the same as the recordkeeping

and review requirements in the current

regulations, and any burden associated

with the proposed requirements, are

necessary to ensure that persons are able

to pursue high-quality competitive

employment in the integrated labor

market as the Act intends.

39494 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Proposed Rules

Section 361.37 Establishment and

Maintenance of Information and

Referral Programs

In order to ensure that individuals

with disabilities who choose to work in

an extended employment setting longterm, rather than pursue employment in

an integrated setting under the VR

program, are able to access the services

they need, § 361.37(a) of the proposed

regulations would require that State VR

agencies refer these individuals to local

extended employment providers. We are

particularly interested in comments

from community rehabilitation

programs and other State and local

service providers on the impact that the

proposed regulations would have on

those resources that currently pay most

of the costs of serving individuals in

extended employment. We also note

that persons who initially choose to

pursue extended employment and

subsequently change their minds and

seek competitive or other integrated

employment can still access the VR

system. Also, while we recognize that

this proposed change would result in an

additional responsibility being placed

on the State VR agency, we believe that

any burden associated with that

responsibility is outweighed by the need

to ensure that individuals who choose

sheltered work can access State and

local resources that support extended

employment programs.

Section 361.47 Record of Services

We are proposing limited changes to

the current regulations to reflect the

proposed revisions to the definition of

‘‘employment outcome’’ and the review

requirements in § 361.55.

In sum, proposed changes to

paragraph (g) of this section would

require a justification in the record of

services for any decision on the part of

the State unit to provide a VR program

participant services in a non-integrated

setting, including a decision to support

the individual in extended employment

as an initial step toward integrated

employment. In addition, proposed

paragraph (k) of this section would be

added to the current regulations to

require documentation of the annual

reviews required under section

101(a)(14) of the Act and § 361.55 of the

proposed regulations for individuals

who achieved an authorized (i.e.,

integrated) employment outcome but are

compensated through a wage certificate

under section 14(c) of the Fair Labor

Standards Act (FLSA) (e.g., individuals

in supported employment who earn less

than the minimum wage).

Finally, a State unit would also be

required under the proposed changes to

this section to document follow-up

reviews when it closes the record of

services for an individual in extended

employment who chooses to remain

there long-term or who the State unit

determines cannot achieve integrated

employment. As explained in the

discussion on § 361.55, these

individuals would not be considered to

have achieved an employment outcome

under the VR program.

It should be noted that each of the

documentation requirements in the

proposed regulations also is reflected in

the February 28 NPRM referred to in the

Background section of this preamble.

Section 361.55 Annual Review of

Individuals in Extended Employment

and Other Employment Under Special

Certificate Provisions of the Fair Labor

Standards Act

Removing extended employment from

the scope of available employment

outcomes under the discretion given to

the Secretary under section 7(11)(C) of

the Act necessitates changes to this

section of the current regulations.

Initially, it should be noted that the

proposed regulations reflect the

requirement in section 101(a)(14) of the

Act and the current regulations that the

State unit conduct an annual review of

any VR program participant who has

achieved an employment outcome (i.e.,

integrated employment under the

proposed regulations) but is

compensated under a wage certificate as

authorized in section 14(c) of the FLSA.

With regard to those participants in the

VR program who are still placed in

extended employment, however, the

State unit’s future obligations under the

proposed regulations would depend on

a number of factors.

As indicated previously, we expect

that most individuals in extended

employment would perform that work

temporarily as a means of training or

otherwise preparing for competitive

employment. Because the State unit

would continue to provide services to

these individuals and to review the

individual’s plan of services consistent

with 102(b)(2)(E) of the Act until they

successfully transition to a job in an

integrated setting, that individual’s

record of services would remain open,

and the review requirements in this

revised section need not apply.

On the other hand, if the State unit

decides to close the record of services of

an individual in extended employment

because it does not believe the

individual can achieve integrated

employment (i.e., an employment

outcome under the proposed

regulations) or because the individual

chooses to remain in extended

employment, then the proposed

regulations would continue to require

that the State unit conduct an annual

review and reevaluation (for 2 years and

thereafter if requested by the individual)

of the individual’s readiness for

competitive employment, that the

individual be able to provide input into

each review, and that the State unit

make maximum efforts to assist the

individual in transitioning to

competitive employment.

Effective Date of Changes

Finally, we recognize that the

proposed changes in this NPRM, while

supported by the Act, represent a

departure from the past practice of

including non-integrated jobs among the

scope of authorized employment

outcomes. Thus, in order to minimize

the impact that these proposed changes

would have on State units or eligible

individuals under the VR program, we

are proposing that the changes to the

current regulations in this NPRM take

effect beginning in FY 2002 (i.e.,

October 1, 2001). This delayed

implementation date would give State

units and other providers of VR services

more than a year to take whatever steps

may be necessary to meet the revised

regulatory requirements. Most

importantly, we expect that the time

afforded will enable States to implement

the proposed changes in a manner that

is least disruptive to VR program

beneficiaries. Nonetheless, we intend to

provide necessary technical assistance

to State units in order to assist those

agencies in making the transition

required by the proposed regulations.

We also are particularly interested in

comments on whether persons agree

that the delayed implementation date

will give States sufficient time to

implement the proposed policy.

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, including

individuals with disabilities, will

possess the knowledge and skills

necessary to compete in a global

economy and exercise the rights and

responsibilities of citizenship.

Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Proposed Rules 39495

Executive Order 12866

1. Potential Costs and Benefits

Under Executive Order 12866, we

have assessed the potential costs and

benefits of this regulatory action. The

potential costs associated with the

proposed regulations are those resulting

from statutory requirements and those

we have determined as necessary for

administering this program effectively

and efficiently. Elsewhere in this

SUPPLEMENTARY INFORMATION section we

identify and explain burdens

specifically associated with information

collection requirements. See the

heading Paperwork Reduction Act of

1995.

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.

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.

Summary of Potential Costs and

Benefits

We believe that the NPRM would

substantially improve the State VR

Services Program and would yield

substantial benefits in terms of program

management, efficiency, and

effectiveness. The proposed regulatory

changes would align the VR program

appropriately with the statutory

expectation that individuals with

disabilities can in fact achieve

employment in the competitive labor

market. The proposed changes also

include program requirements (e.g.,

those related to referrals, documentation

of service records, and reviews of

persons in extended employment) that

are designed to ensure that individuals

with disabilities are supported in

pursuing competitive jobs or are able to

access other resources that can assist

those who choose extended

employment. We believe that the

proposed regulations represent the least

burdensome way to implement the Act

and fulfill important policy objectives

that we consider to be essential to the

success of the program and to persons

with disabilities.

Elsewhere in this preamble we

discuss other potential costs and

benefits of these proposed regulations

under the following heading: Sectionby-Section Summary.

2. 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:

• 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,

§ 361.47 Record of services.)

• 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?

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.

These proposed regulations would

impact some community rehabilitation

programs that currently operate

extended employment programs, or

execute Federal contracts under the

Javits-Wagner-O’Day Act, for

individuals with disabilities. Those

facilities rely on the State VR Services

Program, as well as other programs, for

referrals of persons for whom sheltered

employment is appropriate. However,

since most costs of employing persons

with disabilities in a sheltered setting

are born by programs other than the

State VR Services Program, and since

State VR agencies could continue to

provide support to persons in extended

employment settings (without

considering that work a successful

employment outcome), we do not

believe potential impact would be

significant.

Paperwork Reduction Act of 1995

Section 361.47 contains information

collection requirements that pertain to

State recordkeeping, and section 361.55

contains information collection

requirements under the State plan.

Under the Paperwork Reduction Act of

1995 (44 U.S.C. 3507(d)), the

Department of Education has submitted

a copy of these sections to the Office of

Management and Budget (OMB) for its

review.

Collection of Information: State

Vocational Rehabilitation Services

Program

The information to be collected

includes State plan assurances to meet

statutory requirements and other

required information that the

Department considers important to the

efficient and effective administration of

the VR program. Required information

that is unrelated to the State plan is

necessary for purposes of Department

monitoring of program performance and

compliance.

The Department needs and uses the

information related to the State plan for

the VR program in order to ensure

compliance with Federal requirements.

An approved State plan is necessary for

a State to receive a grant under the VR

program. All State plan assurances are

reported once unless the State has

submitted the information previously or

determines that modifications are

necessary, or the Secretary requires

modifications due to changes in State

policy, Federal law (including

regulations), interpretation of the Act by

a Federal court or the highest court in

the State, or a finding by the Secretary

of State noncompliance with the

requirements of the Act.

As previously noted, the Department

published an NPRM on February 28,

2000 (65 FR 10620) that proposed

extensive changes to the regulations

under this part in order to conform to

the 1998 Amendments to the Act. In the

February 28, 2000 NPRM, we estimated

an annual reporting and recordkeeping

burden for the collection of information

to average 12,220 hours for each

response for 82 respondents, or a total

of 1,002,050 burden hours. The annual

reporting and recordkeeping burden for

the collection of information in this new

NPRM is included in that total since the

information collection requirements

proposed in the new NPRM were

included in the February 28, 2000

NPRM as well (although some of the

requirements were located in other

sections in the prior NPRM).

Nonetheless, it is estimated that the

actual burden for the information

collection requirements in sections

361.47(g) and (k) and 361.55 would

average 87 hours for each response for

82 respondents, including the time for

reviewing instructions, searching

existing data sources, gathering and

39496 Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Proposed Rules

maintaining the data needed, and

completing and reviewing the collection

of information. Thus, we estimate the

total annual reporting and

recordkeeping burden for this specific

collection to be 7,134 hours of the total

1,002,050 hours identified in the NPRM

published on February 28, 2000.

If you want to comment on the

information collection requirements,

please send your comments to the Office

of Information and Regulatory Affairs,

OMB, room 10235, New Executive

Office Building, Washington, DC 20508;

Attention: Desk Officer for U.S.

Department of Education. You may also

send a copy of these comments to the

Department representative named in the

ADDRESSES section of this preamble.

We consider your comments on this

proposed collection of information in—

• Deciding whether the proposed

collection is necessary for the proper

performance of our functions, including

whether the information will have

practical use;

• Evaluating the accuracy of our

estimate of the burden of the proposed

collection, including the validity of our

methodology and assumptions;

• Enhancing the quality, usefulness,

and clarity of the information we

collect; and

• Minimizing the burden on those

who must respond. This include

exploring the use of appropriate

automated, electronic, mechanical, or

other technological collection

techniques or other forms of information

technology; e.g., permitting electronic

submission of responses.

OMB is required to make a decision

concerning the collection of information

contained in these proposed regulations

between 30 and 60 days after

publication of this document in the

Federal Register. Therefore, to ensure

that OMB gives your comments full

consideration, it is important that OMB

receives the comments within 30 days

of publication. This does not affect the

deadline for your comments to us on the

proposed regulations.

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

strengthening 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

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 the 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: 84.126 State Vocational

Rehabilitation Services Program)

List of Subjects in 34 CFR Part 361

Reporting and recordkeeping

requirements, State-administered grant

program—education, Vocational

rehabilitation.

Dated: June 20, 2000.

Richard W. Riley,

Secretary of Education.

For the reasons discussed in the

preamble, the Secretary proposes to

amend part 361 of title 34 of the Code

of Federal Regulations as follows:

PART 361—STATE VOCATIONAL

REHABILITATION SERVICES

PROGRAM

1. The authority citation for part 361

continues to read as follows:

Authority: 29 U.S.C. 709(c), unless

otherwise noted.

2. Section § 361.5 is amended by

revising paragraphs (b)(15) and (b)(18),

and the authority citations following

each of those paragraphs, to read as

follows:

§ 361.5 Applicable definitions

* * * * *

(b) * * *

(15) Employment outcome means,

with respect to an individual, entering

or retaining full-time or, if appropriate,

part-time competitive employment in

the integrated labor market, supported

employment, or any other type of

employment in an integrated setting,

including self-employment,

telecommuting, or business ownership,

that is consistent with an individual’s

strengths, resources, priorities,

concerns, abilities, capabilities,

interests, and informed choice.

(Authority: Sections 7(11), 12(c), 100(a)(2),

and 102(b)(3)(A) of the Act; 29 U.S.C.

705(11), 709(c), 720(a)(2), and 722(b)(3)(A))

* * * * *

(18) Extended employment means

work in a non-integrated or sheltered

setting for a public or private nonprofit

agency or organization that an eligible

individual performs for the purposes of

training or otherwise preparing for

competitive employment and for which

the individual receives—

(i) Compensation in accordance with

the Fair Labor Standards Act; and

(ii) Any support services that the

individual needs in order to prepare for

competitive employment.

(Authority: Section 12(c) of the Act;

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

* * * * *

3. Section 361.37 is amended by

removing the word ‘‘and’’ at the end of

paragraph (a)(2); removing the period at

the end of paragraph (a)(3), and adding,

in its place, ‘‘; and’’; adding a new

paragraph (a)(4); and revising the

authority citation following the section

to read as follows:

§ 361.37 Establishment and maintenance

of information and referral programs.

(a) General provisions. The State plan

must assure that—

* * * * *

(4) The State unit will refer to local

extended employment providers an

individual with a disability who makes

an informed choice to pursue extended

employment as the individual’s

employment goal.

* * * * *

(Authority: Sec. 12(c) and 101(a)(20) of the

Act; 29 U.S.C. 709(c) and 721(a)(20))

4. Section 361.47 is amended by

revising paragraph (g), adding a new

paragraph (k), and revising the authority

citation following the section to read as

follows:

§ 361.47 Record of services.

* * * * *

(g) In the event that an individual’s

IPE provides for vocational

rehabilitation services in a nonintegrated setting, including an

extended employment setting, a

Federal Register / Vol. 65, No. 123 / Monday, June 26, 2000 / Proposed Rules 39497

justification to support the need for the

non-integrated setting.

* * * * *

(k) In the event an individual achieves

an employment outcome in which the

individual is compensated in

accordance with section 14(c) of the Fair

Labor Standards Act or the designated

State unit closes the record of services

of an individual in extended

employment on the basis that the

individual is unable to achieve an

employment outcome consistent with

§ 361.5(b)(15) or that the individual

through informed choice chooses to

remain in extended employment,

documentation of the results of the

annual reviews required under § 361.55,

the individual’s input into those

reviews, and the individual’s or, if

appropriate, the individual’s

representative’s acknowledgement that

those reviews were conducted.

(Authority: Sections 101(a)(6), (9), (14), (20)

and 102(a), (b), and (d) of the Act; 29 U.S.C.

721(a)(6), (9), (14), (20) and 722(a), (b), and

(d))

* * * * *

5. Section 361.55 is revised to read as

follows:

§ 361.55 Annual review of individuals in

extended employment and other

employment under special certificate

provisions of the Fair Labor Standards Act.

(a) The State plan must assure that the

designated State unit conducts an

annual review and reevaluation in

accordance with the requirements in

paragraph (b) of this section for an

individual with a disability served

under this title—

(1) Who has achieved an employment

outcome in which the individual is

compensated in accordance with section

14(c) of the Fair Labor Standards Act; or

(2) Whose record of services is closed

while the individual is in extended

employment on the basis that the

individual is unable to achieve an

employment outcome consistent with

§ 361.5(b)(15) or the individual through

informed choice chooses to remain in

extended employment.

(b) For each individual with a

disability who meets the criteria in

paragraph (a) of this section, the

designated State unit must—

(1) Annually review and reevaluate

the status of each individual for 2 years

after the individual’s record of services

is closed (and thereafter if requested by

the individual or, if appropriate, the

individual’s representative) to

determine the interests, priorities, and

needs of the individual with respect to

competitive employment or training for

competitive employment;

(2) Enable the individual or, if

appropriate, the individual’s

representative to provide input into the

review and reevaluation and must

document that input in the record of

services, consistent with § 361.47(k),

with the individual’s or, as appropriate,

the individual’s representative’s signed

acknowledgment that the review and

reevaluation have been conducted; and

(c) Make maximum efforts, including

identifying and providing vocational

rehabilitation services, reasonable

accommodations, and other necessary

support services, to assist the individual

in engaging in competitive employment

as defined in § 361.5(b)(10).

(Authority: Sections 12(c) and 101(a)(14) of

the Act; 29 U.S.C. 709(c) and 721(a)(14))

[FR Doc. 00–15991 Filed 6–23–00; 8:45 am]

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