[Federal Register Volume 80, Number 73 (Thursday, April 16, 2015)]
[Proposed Rules]
[Pages 20988-21058]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-05535]



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

[[Page 20988]]


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DEPARTMENT OF EDUCATION

34 CFR Parts 367, 369, 370, 371, 373, 376, 377, 379, 381, 385, 386, 
387, 388, 389, 390, and 396

RIN 1820-AB71
[Docket No. 2015-ED-OSERS-0002]


Workforce Innovation and Opportunity Act, Miscellaneous Program 
Changes

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Secretary proposes to amend the regulations governing a 
number of programs administered by the Rehabilitation Services 
Administration (RSA) to implement changes to the Rehabilitation Act of 
1973 (Act) made by the Workforce Innovation and Opportunity Act, 
enacted on July 22, 2014.
    The Secretary also proposes to implement changes to the Act made by 
the Workforce Investment Act, enacted on August 7, 1998, that have not 
previously been implemented in regulations, and to otherwise update, 
clarify, and improve RSA's current regulations.

DATES: We must receive your comments on or before June 15, 2015.

ADDRESSES: Submit your comments through the Federal eRulemaking Portal 
or via postal mail, commercial delivery, or hand delivery. We will not 
accept comments submitted by fax or by email or those submitted after 
the comment period. To ensure that we do not receive duplicate copies, 
please submit your comments only once. In addition, please include the 
Docket ID at the top of your comments.
    <bullet> Federal eRulemaking Portal: Go to www.regulations.gov to 
submit your comments electronically. Information on using 
Regulations.gov, including instructions for accessing agency documents, 
submitting comments, and viewing the docket, is available on the site 
under ``Are you new to the site?''
    <bullet> Postal Mail, Commercial Delivery, or Hand Delivery: If you 
mail or deliver your comments about these proposed regulations, address 
them to Janet LaBreck, U.S. Department of Education, 400 Maryland 
Avenue SW., Room 5086 Potomac Center Plaza (PCP), Washington, DC 20202-
2800.

    Privacy Note: The Department's policy is to make all comments 
received from members of the public available for public viewing in 
their entirety on the Federal eRulemaking Portal at 
www.regulations.gov. Therefore, commenters should be careful to 
include in their comments only information that they wish to make 
publicly available.


FOR FURTHER INFORMATION CONTACT: Janet LaBreck, U.S. Department of 
Education, 400 Maryland Avenue SW., Room 5086 PCP, Washington, DC 
20202-2800.
    Telephone: (202) 245-7488, or by email: <a href="/cdn-cgi/l/email-protection#d79db6b9b2a3f99bb695a5b2b4bc97b2b3f9b0b8a1"><span class="__cf_email__" data-cfemail="c882a9a6adbce684a98abaadaba388adace6afa7be">[email protected]</span></a>.
    If you use a telecommunications device for the deaf (TDD) or a text 
telephone (TTY), call the Federal Relay Service (FRS), toll free, at 1-
800-877-8339.

SUPPLEMENTARY INFORMATION: 
    Invitation to Comment: We invite you to submit comments regarding 
these proposed regulations. To ensure that your comments have maximum 
effect in developing the final regulations, we urge you to identify 
clearly the specific section or sections of the proposed regulations 
that each of your comments addresses and to arrange your comments in 
the same order as the proposed regulations.
    We invite you to assist us in complying with the specific 
requirements of Executive Orders 12866 and 13563 and their overall 
requirement of reducing regulatory burden that might result from these 
proposed regulations. Please let us know of any further ways we could 
reduce potential costs or increase potential benefits while preserving 
the effective and efficient administration of the Department's programs 
and activities.
    During and after the comment period, you may inspect all public 
comments about these proposed regulations by accessing Regulations.gov. 
You may also inspect the comments in person in Room 5093, Potomac 
Center Plaza, 550 12th Street SW., Washington, DC, between 8:30 a.m. 
and 4:00 p.m. Washington, DC time, Monday through Friday of each week 
except Federal holidays. Please contact the person listed under FOR 
FURTHER INFORMATION CONTACT.
    Assistance to Individuals with Disabilities in Reviewing the 
Rulemaking Record: On request we will provide an appropriate 
accommodation or auxiliary aid to an individual with a disability who 
needs assistance to review the comments or other documents in the 
public rulemaking record for these proposed regulations. If you want to 
schedule an appointment for this type of accommodation or auxiliary 
aid, please contact the person listed under FOR FURTHER INFORMATION 
CONTACT.

Background

    The Secretary proposes to amend the regulations governing a number 
of programs administered by the Rehabilitation Services Administration 
(RSA) to implement changes to the Rehabilitation Act of 1973 (Act) made 
by the Workforce Innovation and Opportunity Act (WIOA), enacted on July 
22, 2014 (Pub. L. 113-128). These programs and their corresponding 
regulations are:
    <bullet> The Independent Living Services for Older Individuals Who 
Are Blind (OIB) program, 34 CFR part 367;
    <bullet> The Client Assistance Program (CAP), 34 CFR part 370;
    <bullet> The American Indian Vocational Rehabilitation Services 
(AIVRS) program, 34 CFR part 371 (formerly known as ``Vocational 
Rehabilitation Service Projects for American Indians with 
Disabilities'');
    <bullet> The Rehabilitation National Activities program, 34 CFR 
part 373 (formerly known as ``Special Demonstration Projects'');
    <bullet> The Protection and Advocacy of Individual Rights (PAIR) 
program, 34 CFR part 381;
    <bullet> The Rehabilitation Training program, 34 CFR part 385;
    <bullet> The Rehabilitation Long-Term Training program, 34 CFR part 
386;
    <bullet> The Innovative Rehabilitation Training Program, 34 CFR 
part 387 (formerly known as the ``Experimental and Innovative 
Training'');
    <bullet> The Rehabilitation Short-Term Training Program, 34 CFR 
part 390; and
    <bullet> The Training of Interpreters for Individuals Who are Deaf 
or Hard of Hearing and Individuals who are Deaf-Blind program, 34 CFR 
part 396 (formerly known as the ``Training of Interpreters for 
Individuals Who are Deaf and Individuals who are Deaf-Blind program'').
    WIOA also repealed the statutory authority for four programs, and 
the Secretary, therefore, proposes to remove their corresponding 
regulations. These programs and regulations are:
    <bullet> Vocational Rehabilitation Service Projects for Migratory 
Agricultural Workers and Seasonal Farmworkers with Disabilities 
(Migrant Workers) program, portions of 34 CFR part 369;
    <bullet> Projects for Initiating Special Recreation Programs for 
Individuals with Disabilities (Recreational programs), portions of 34 
CFR part 369;
    <bullet> Projects with Industry, 34 CFR part 379 and portions of 
part 369; and
    <bullet> The State Vocational Rehabilitation Unit In-Service 
Training program, 34 CFR part 388.
    In addition, the Secretary proposes to implement changes to the Act 
made by

[[Page 20989]]

the Workforce Investment Act (WIA), enacted August 7, 1998 (Pub. L. 
105-220). These changes were not previously implemented in the 
applicable regulations. The Secretary proposes these changes to the 
OIB, CAP, AIVRS, and PAIR program regulations.
    Separate and apart from amendments to the Act made by WIOA and WIA, 
the Secretary proposes to update and clarify the regulations governing 
the various rehabilitation training programs--34 CFR parts 373, 385, 
386, 387, and 396--and 34 CFR part 390, which governs the 
Rehabilitation Short-Term Training program. These regulations have not 
been updated in some time, and updating them now is intended to improve 
how these programs function.
    Finally, as part of this update, the Secretary proposes to remove 
regulations that are superseded or obsolete and to consolidate 
regulations, where appropriate. The Secretary proposes to remove the 
balance of 34 CFR part 369 that does not apply to the Migrant Workers 
program, the Recreational Programs, the Projects With Industry program, 
and parts 376, 377, and 389.

Proposed Regulations

    Because the amendments we propose in this document are so many and 
varied, we discuss first those programs whose regulations we propose to 
amend and not remove. We discuss them in the order in which their parts 
appear in the Code of Federal Regulations (CFR). For each part, we 
provide a short background of the program, a summary of the changes we 
propose, and a detailed discussion of the significant proposed 
regulations. Generally, we do not address proposed regulatory changes 
that are technical or otherwise minor in effect.

Independent Living Services for Older Individuals Who Are Blind (OIB), 
34 CFR Part 367

Background

    The program makes grants to designated State agencies (DSAs) that 
provide vocational rehabilitation services to individuals who are 
blind. DSAs provide to older individuals who are blind or visually 
impaired independent living services designed to increase or maintain 
their ability to live independently. The Department last published 
regulations for this program in 1994 (59 FR 41909 (August 15, 1994)).

Summary of Proposed Changes

    These proposed regulations would implement the changes WIOA made to 
title VII, Chapter 2, of the Act. We would require that not less than 
1.8 percent and not more than 2 percent of the funds for this program 
be reserved to provide training and technical assistance to DSAs or 
other providers of independent living services for older individuals 
who are blind.
    In addition, the Secretary proposes to incorporate into part 367 
the text of relevant provisions of parts 364 and 365 regarding general 
independent living and State independent living services that were 
previously incorporated only by reference. This change is necessary 
because WIOA transferred the Independent Living Services and Centers 
for Independent Living programs to the Administration for Community 
Living of the Department of Health and Human Services. Due to this 
transfer, parts 364 and 365 will no longer be applicable to programs 
administered by the Department of Education and will eventually be 
removed.

Significant Proposed Regulations

    Because we propose to make a number of structural and numbering 
revisions to part 367, we discuss the proposed changes by subpart and, 
within each subpart, by subject or section.

Subpart A--General

    Statute: WIOA added a new subparagraph (E) in section 7(17) of the 
Act. This new subparagraph specifies that services to facilitate the 
transition of individuals from nursing homes and other institutions to 
home and community based residences with the requisite supports and 
services are core IL services and, as such, may be provided by the OIB 
program. Grantees may also provide assistance and services to older 
individuals who are blind and who are at risk of entering institutions 
so that they may remain in the community.
    Current Regulations: Current Sec.  367.3(b)(7) does not list this 
service specifically. It lists a broad array of independent living 
services that may be provided to older individuals who are blind, but 
does not reference the specific service added by WIOA.
    Proposed Regulations: Current Sec.  367.3(b)(7) would be expanded 
to include the specific IL service authorized by WIOA in the new 
subparagraph (E) in section 7(17) of the Act as an allowable service 
under the OIB program.
    Reasons: The inclusion of the IL service in the proposed 
regulations is consistent with changes in the IL core services defined 
in WIOA and allows for the provision of these services by the OIB 
program.

Transfer of Title VII, Chapter 1 IL Programs

    Statute: Title VII, Chapter 1, Section 701A of the Act (29 U.S.C. 
796), as amended by WIOA, establishes within the Administration for 
Community Living (ACL) of the Department of Health and Human Services 
an Independent Living Administration that will be the principal agency 
to carry out the Independent Living Services and Centers for 
Independent Living programs. WIOA transfers these programs to ACL from 
RSA. The Department of Education continues to administer title VII, 
Chapter 2 of the Act, which authorizes OIB.
    Current Regulations: Current Sec.  367.4(c) refers to certain 
sections of parts 364 and 365 rather than restating the same text in 
full. The relevant sections in part 364 address definitions; the use 
and obligation of Federal funds and program income; notice of the 
Client Assistance Program (CAP); access to records; and special 
requirements for the protection, use, and release of personal 
information. The sections in part 365 set out requirements and 
conditions for cash or in-kind contributions as they apply to a State's 
non-Federal share, awards, subawards, or contractors.
    Proposed Regulations: We propose to remove these cross references 
from current Sec.  367.4 and amend current part 367 to provide the full 
text of the relevant sections in parts 364 and 365 to which current 
Sec.  367.4 now only cross references.
    Reasons: With the transfer of the Independent Living Services and 
Centers for Independent Living programs from RSA to ACL, parts 364 and 
365 will no longer be applicable to programs administered by the 
Department of Education and will eventually be removed. We propose to 
move language into part 367 that is relevant to the functioning of the 
OIB program.

Proposed New Subpart B--Training and Technical Assistance (Replaces 
Current Subpart B)

    Statute: WIOA added to title VII, chapter 2 of the Act section 
751A, which requires that, beginning in FY 2015, not less than 1.8 
percent and not more than 2 percent of the funds for this program be 
reserved to provide, either directly or through grants, contracts, or 
cooperative agreements, training and technical assistance to DSAs or 
other providers of independent living services for older individuals 
who are blind that

[[Page 20990]]

are funded under the OIB program; that the Secretary conduct a survey 
of DSAs that are OIB program grantees to determine funding priorities 
for the training and technical assistance; and that the Secretary shall 
provide for peer review of applications to provide training and 
technical assistance from eligible entities by panels that include 
persons who are not government employees and who have experience in the 
provision of services to older individuals who are blind.
    Current Regulations: None.
    Proposed Regulations: We propose to add a new subpart B to part 
367, consisting of Sec. Sec.  367.20 through 367.24, to govern how the 
Department would assess the grantees' training and technical assistance 
needs and how it would provide training and technical assistance under 
OIB.
    Proposed Sec.  367.20 would provide that the Secretary reserve not 
less than 1.8 percent and not more than 2 percent of the funds 
appropriated to carry out the OIB program to provide training and 
technical assistance in any fiscal year, beginning in FY 2015, to DSAs 
or other providers of independent living services for older individuals 
who are blind during such fiscal year.
    Proposed Sec.  367.21 would explain how the Secretary uses the 
funds specified in Sec.  367.20 to provide training and technical 
assistance, either directly or through grants, contracts, or 
cooperative agreements to entities that have the capacity to provide 
such training and technical assistance. Any selected entity receiving 
funding would provide training and technical assistance to DSAs or 
other service providers, assisting them to improve the operation and 
performance of the program leading to enhanced independence and self-
sufficiency for older individuals who are blind.
    Proposed Sec.  367.22 would describe how the Secretary makes an 
award under subpart B for training and technical assistance. It would 
require an applicant to submit an application to the Secretary 
containing a proposal for the provision of training and technical 
assistance to DSAs and other providers of services under the OIB 
program. Proposed Sec.  367.22 would also require applications to be 
peer reviewed by panels that include individuals who are not Federal or 
State government employees and who have experience in the provision of 
services to older individuals who are blind.
    Proposed Sec.  367.23 would provide that the Secretary conduct a 
survey of DSAs that receive OIB grants to assess their training and 
technical assistance needs and to inform decisions about funding 
priorities.
    Proposed Sec.  367.24(a) and (b) would provide that the Secretary 
evaluate applications for a grant, cooperative agreement, or contract 
under subpart B on the basis of selection criteria chosen from the 
general selection criteria found in EDGAR at 34 CFR 75.210. If a 
contract is awarded, it would be made in accordance with regulations at 
34 CFR part 75.
    Reasons: The proposed new subpart B gives effect to the new 
training and technical assistance requirements and the manner in which 
these requirements are implemented, including a survey of needs and the 
funding of activities either directly or through a peer reviewed 
competitive process consistent with the Department's practices.

Proposed New Subpart C--What Are the Application Requirements Under 
This Part? (Current Subpart B)

    Statute: None.
    Current Regulations: Current subpart B consists of Sec. Sec.  
367.10 and 367.11, which set out the manner in which a DSA applies for 
an award or a reallotment grant and the required assurances that a DSA 
must include in an application.
    Proposed Regulations: We propose to redesignate current subpart B 
as subpart C and to change its title to ``What Are the Application 
Requirements Under this Part?'' We propose as well to renumber the 
sections in the new subpart Sec. Sec.  367.30 and 367.31.
    Reason: We propose to redesignate current subpart B as subpart C to 
make room for a new subpart that addresses WIOA's requirement to 
provide training and technical assistance to DSAs or other providers of 
independent living services for older individuals who are blind.

Removal of State Plan for Independent Living OIB Requirements

    Statute: WIOA deletes the requirement in section 752(h) of the Act 
(29 U.S.C. 796k(h)) for the State to seek to incorporate into the State 
Plan for Independent Living any new methods and approaches relating to 
independent living services for older individuals who are blind.
    Current Regulations: Current Sec.  367.11(c) requires the DSA to 
seek to incorporate into and describe in the State plan for independent 
living (SPIL) any new methods and approaches relating to IL services 
for older individuals who are blind that are developed by projects 
funded by OIB and that the DSA determines to be effective.
    Current Sec.  367.11(f) requires that applications be consistent 
with the SPIL for providing required independent living services under 
section 704 of the Act.
    Proposed Regulations: We propose to remove current Sec.  367.11(c) 
and (f).
    Reason: Removing current Sec.  367.11(c) and (f) would implement 
WIOA's removal of these requirements from the OIB program and eliminate 
the connection of OIB to the State Plan for Independent Living, 
required by title VII, chapter 1, now administered by ACL.

Proposed New Subpart D--How does the Secretary award discretionary 
grants? (Current Subpart C)

    Statute: None.
    Current Regulations: The current subpart C consists of Sec. Sec.  
367.20 through 367.23 and is entitled ``How Does the Secretary Award 
Discretionary Grants on a Competitive Basis?''
    Current Sec.  367.22 provides specific selection criteria used by 
the Secretary in awarding discretionary grants.
    Current Sec.  367.23 provides for the consideration of geographical 
distribution of projects in making an award.
    Current Sec.  367.42(a) and (b) provide the basis for 
noncompetitive continuation grants.
    Proposed Regulations: We propose to redesignate and retitle subpart 
C as ``Subpart D--How Does the Secretary Award Discretionary Grants?'' 
We propose to renumber the sections within subpart D to begin with 
Sec.  367.40.
    Proposed Sec.  367.40(b) would insert the basis for the award of 
noncompetitive continuation grants by the Secretary for a multi-year 
project. This is in current regulations at Sec.  367.42(a) and (b).
    We propose to eliminate the specific selection criteria included in 
current Sec.  367.22. In its place, proposed Sec.  367.41(a) would 
provide for the evaluation of applications based on the selection 
criteria chosen from the general selection criteria found in EDGAR at 
34 CFR 75.210.
    Proposed Sec.  367.41(b) would allow for consideration of 
geographical distribution of projects in making an award, replacing the 
current regulation at Sec.  367.23.
    Reasons: Though the Department currently does not make 
discretionary grants under OIB, we are nonetheless proposing to update 
the relevant regulations to ensure that we have appropriate flexibility 
in designing competitions and awarding grants should the appropriation 
ever fall below $13 million.

[[Page 20991]]

Proposed New Subpart E--How does the Secretary award formula grants? 
(Current Subpart D)

Formula Grant Awards--Reallotment
    Statute: Section 752(i)(4) of the Act, as amended by WIOA, provides 
for the disposition of certain amounts under formula grants.
    Current Regulations: Current Subpart D consists of Sec.  367.30 
through Sec.  367.32.
    Current Sec.  367.32 sets out the procedures for how the Secretary 
reallots funds under the formula grants program.
    Proposed Regulations: We propose to redesignate current subpart D 
as ``Subpart E--``How Does the Secretary Award Formula Grants?'' We 
propose to renumber the sections in this subpart to begin with Sec.  
367.50.
    Proposed Sec.  367.52(e) would require that an OIB grantee inform 
the Secretary 45 days prior to the end of the fiscal year that funds 
would be available for reallotment.
    Reasons: This proposed change would bring the OIB program 
reallotment requirements into alignment with other formula grants 
administered by RSA. This timeline would ensure that RSA receives 
timely notice of relinquished funds and is able to award realloted 
funds to grantees prior to the end of the Federal fiscal year. This 
proposed change is consistent with RSA's current practices.

Proposed New Subpart F--What conditions must be met after an award? 
(Current Subpart E)

    Statute: Section 701A of the Act (29 U.S.C. 796 et seq.), as 
amended by WIOA, establishes within the Administration for Community 
Living in the Department of Health and Human Services a new Independent 
Living Administration that will administer the independent living 
programs under chapter 1 of title VII of the Act. Consequently, the 
independent living regulations in parts 364 and 365, which are 
referenced in part 367, will no longer be administered by the 
Department of Education. Therefore, the relevant sections of parts 364 
and 365 are being incorporated into part 367.
    Current Regulations: Current subpart E consists of Sec. Sec.  
367.40 through 367.42, which provide the conditions that must be met 
after an award is made, including matching requirements, when a DSA may 
award grants or contracts, and when continuation awards may be made.
    Proposed Regulations: We propose to redesignate current subpart E 
as subpart F, to remove the provisions in current subpart E, and to 
replace them with new sections beginning with Sec.  367.60.
    Proposed Sec.  367.60 would provide guidance on when a DSA may make 
subawards or contracts under the OIB program.
    Proposed Sec.  367.61 would provide the regulatory requirements to 
meet the non-Federal contribution required by Sec.  367.31(b).
    Proposed Sec.  367.62 would address the requirements that apply if 
a State's non-Federal share is in cash.
    Proposed Sec.  367.63 would provide the requirements that apply if 
a State's non-Federal share is in kind.
    Proposed Sec.  367.64 would provide for a prohibition against a 
State conditioning a subaward or contract based on a cash or in-kind 
contribution.
    Proposed Sec.  367.65 would provide the definition of program 
income and how it may be used.
    Proposed Sec.  367.66 would provide the requirements that apply to 
the obligation of Federal funds and program income.
    Proposed Sec.  367.67 would describe the notice that must be given 
about the Client Assistance Program.
    Proposed Sec.  367.68 would provide the specific requirements 
pertaining to the protection, use, and release of personal information 
belonging to applicants or recipients of services.
    Proposed Sec.  367.69 would provide the requirements related to the 
provision of access to records.
    Proposed Sec.  367.70 would provide requirements regarding the 
maintenance of records by DSAs and other providers.
    Reasons: OIB grantees have always been required to comply with 
these proposed provisions because current Sec.  367.4 incorporates them 
by reference from parts 364 and 365. Because the IL programs 
implementing parts 364 and 365 will no longer be administered by the 
Department of Education, and because those parts will be removed in the 
future, we propose to move the text of the applicable provisions to 
part 367 so that the OIB program can continue to function 
appropriately.

Client Assistance Program (CAP), 34 CFR Part 370

Background

    CAP is authorized under section 112 of the Act (29 U.S.C. 732). CAP 
grantees provide information to individuals with disabilities about the 
services and benefits available under the Act and their rights under 
title I of the Americans with Disabilities Act. In addition, CAP 
grantees are authorized to provide advocacy and legal representation to 
individuals seeking or receiving services under the Act in order to 
resolve disputes with programs providing those services, including 
vocational rehabilitation services.
    The Department last updated the regulations at 34 CFR part 370, 
which govern the CAP, on November 2, 1995 (60 FR 55766).

Summary of Proposed Changes

    Both WIOA and WIA made significant changes to section 112 of the 
Act. To implement those changes made by WIA, the Secretary proposes to 
amend the regulations governing the redesignation of a designated CAP 
agency to require the Governor to redesignate the designated CAP agency 
if it is internal to the designated State agency (DSA) for the 
Vocational Rehabilitation program and that DSA undergoes a significant 
reorganization that meets certain statutory criteria.
    The Secretary proposes three substantive changes to incorporate 
statutory changes made to section 112 by WIOA. First, we would add the 
protection and advocacy system serving the American Indian Consortium 
as an entity eligible to receive a CAP grant. Second, we would require 
the Secretary to reserve funds from the CAP appropriation, once it 
reaches a specified level, to award a grant for the provision of 
training and technical assistance to designated CAP agencies. Finally, 
we would clarify that authorized activities under the CAP include 
assisting client and client-applicants who are receiving services under 
sections 113 and 511 of the Act.
    In addition to substantive changes required by statutory 
amendments, the Secretary also proposes other changes to update part 
370 so that it, among other things, conforms with RSA practice (i.e., 
with regard to submission of application and assurances) or reflects 
current CAP grantee practice (i.e., with regard to contracts with 
centers for independent living).

Significant Proposed Regulations

    We organize our discussion of proposed changes by subject and 
section.

Clients and Client-Applicants (Sec.  370.1)

    Statute: Section 112(a) of the Act, as amended by WIOA (29 U.S.C. 
732(a)), clarifies that CAP grantees may provide information, advocacy, 
and representation to clients and client-applicants to facilitate their 
access to services available under the Act, including pre-employment 
transition services provided under section 113 and the services 
provided pursuant to

[[Page 20992]]

section 511 regarding limitations on the use of subminimum wages.
    In addition, the Act, as amended by WIOA, includes new definitions 
for a ``student with a disability'' and a ``youth with a disability,'' 
at section (7)(37) and (42), respectively, for the purpose of receiving 
pre-employment transition services and/or other transition services 
through the vocational rehabilitation program.
    Current Regulations: The current Sec.  370.1(a) states that CAP 
grantees are authorized to inform and assist client and client-
applicants about services available through programs authorized under 
the Act. Current Sec.  370.1(a) does not mention the services provided 
under sections 113 and 511, nor does current Sec.  370.4 specifically 
refer to students and youth with disabilities since these are new 
statutory requirements.
    Proposed Regulations: We propose to amend current Sec.  370.1(a) to 
clarify that the CAP may assist individuals who are receiving or 
applying to receive services under sections 113 and 511 of the Act.
    We propose to amend current Sec.  370.4(a)(3)(ii) to clarify that 
students and youth with disabilities applying for and receiving 
services under the Act are considered clients and client-applicants for 
the purpose of receiving CAP services.
    Finally, we propose to amend current Sec.  370.4(b) to clarify that 
in all instances, references to services provided under the Act in the 
context of this paragraph are those provided under title I of the Act.
    Reasons: While WIOA does not expand the scope of authorized 
activities or those individuals with disabilities who may be served by 
CAP grantees, the amendments to section 112 make specific reference to 
individuals receiving services under sections 113 and 511 of the Act. 
The proposed regulations incorporate these same references for the 
purpose of clarification. For clarification purposes, the proposed 
regulations also incorporate references to students and youth with 
disabilities.

Centers for Independent Living (Sec.  370.2)

    Statute: None.
    Current Regulations: Current Sec.  370.2(f) permits a designated 
CAP agency that, at the time of its initial designation prior to 
February 22, 1984, was contracting for CAP services with centers for 
independent living, to continue those contracts. This was promulgated 
as an exception to the general prohibition in current Sec.  370.2(e) 
against contracting with entities that provide treatment and services 
under the Act.
    Proposed Regulations: We propose to amend paragraphs (e) through 
(g) of current Sec.  370.2 to eliminate the CAP's authority to contract 
with centers for independent living. We also propose to amend current 
Sec.  370.41 by deleting all references to the authority to contract 
with centers for independent living.
    Reasons: According to information available to the Secretary, no 
CAP agency that had contracted with centers for independent living for 
the provision of CAP services at the time of its initial designation 
still does so, thus making the need for the exception and the reference 
to contracting with centers for independent living obsolete.

The Definition of ``State'' (Sec.  370.6)

    Statute: Section 7(32) of the Act, as amended by WIA (29 U.S.C. 
705(32)), deleted the Republic of Palau from the definition of the term 
``State.'' As a result, ``State'' includes, in addition to each of the 
several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana Islands. 
Section 7(32) of the Act was renumbered as section 7(34) by WIOA.
    Current Regulations: Current Sec.  370.6 includes Palau in the 
definition of ``State'' because the statutory definition changed after 
part 370 was last updated. Current Sec.  370.30(b), last updated in 
1995, provides for the funding of the territories, including the 
Republic of Palau.
    Proposed Regulations: We propose to delete the Republic of Palau 
from the definition of ``State'' at current Sec.  370.6. We also 
propose to amend current Sec.  370.30(b) to delete reference to the 
Republic of Palau.
    Reasons: This change is necessary to implement the new statutory 
definition of ``State,'' which forms the basis for determining 
eligibility for grants under the Act.

Definition of ``Systemic Advocacy'' (Sec.  370.6)

    Statute: Section 112(d) of the Act (29 U.S.C. 732(d)) prohibits CAP 
grantees from engaging in class action litigation as a form of systemic 
advocacy. This statutory prohibition remains unchanged.
    Current Regulations: The definition of ``systemic advocacy'' in 
current Sec.  370.6 includes reference to class action lawsuits.
    Proposed Regulations: We propose to amend the definition of 
``systemic advocacy'' by removing reference to class action lawsuits.
    Reasons: Although the Act specifically prohibits a CAP agency from 
engaging in class actions, CAP grantees are permitted to engage in 
systemic advocacy, which could be carried out without the initiation of 
a class action lawsuit. We believe that the proposed definition of 
``systemic advocacy'' is broad enough to encompass all allowable 
systemic advocacy activities, while also eliminating the potential for 
misinterpreting Sec.  370.6 as allowing CAP grantees to engage in class 
action lawsuits.

Requirements for Redesignation (Sec.  370.10)

    Statute: Section 112(c)(1)(B)(ii) of the Act, as amended by WIA (29 
U.S.C. 732(c)(1)) requires the Governor to redesignate a CAP agency 
housed in a DSA for the vocational rehabilitation program, if the DSA 
is reorganized to create one or more agencies or is merged into another 
agency.
    Current Regulations: Current Sec.  370.10 describes when a Governor 
must redesignate a CAP agency, but does not include this particular 
requirement because part 370 was last updated in 1995, prior to the 
amendments to the Act made by WIA.
    Proposed Regulations: We propose to amend current Sec.  370.10 by 
adding a new paragraph (a) that would require the Governor to 
redesignate an internal CAP--e.g., a CAP that is housed within the DSA 
for the vocational rehabilitation program--when the DSA undergoes a 
significant reorganization that meets the criteria stated in the 
statute.
    We also propose to amend this section by adding references to 34 
CFR 361.5(c)(12) to clarify the meaning of designated State agency in 
this context in order to eliminate any potential confusion, given the 
similarities of the terms ``designated agency'' for the CAP grantees 
and ``designated State agency'' for the vocational rehabilitation 
program.
    Reasons: These proposed changes would implement the 1998 amendments 
to the Act contained in WIA.

Submission of Application (Sec.  370.20)

    Statute: Section 112(f) of the Act (29 U.S.C. 732(f)) requires CAP 
grantees to submit an application at the time and in the manner 
prescribed by the Secretary as a condition for receiving funding. The 
statutory requirement remains unchanged.
    Current Regulations: Current Sec.  370.20(a) requires CAP grantees 
to

[[Page 20993]]

submit an application annually as a condition for receiving funding.
    Proposed Regulations: We propose to amend current Sec.  370.20(a) 
by deleting the requirement for annual submission and, instead, 
mirroring statutory language that gives the Secretary flexibility for 
the timing of these submissions.
    Reasons: Proposed Sec.  370.20(a) would be consistent with the 
statutory requirements at section 112(f) of the Act, thereby giving the 
Secretary the flexibility to determine when submission of an 
application, including assurances, is necessary for efficient program 
administration. Since 2005, the Department has required Governors to 
submit the application, including assurances, only at the time of an 
initial designation or redesignation of a CAP grantee.

American Indian Consortium (Sec.  370.30)

    Statute: Section 112(e)(1)(E) of the Act, as amended by WIOA (29 
U.S.C. 732(e)), requires the Secretary to reserve funds from the CAP 
appropriation to make a grant to the protection and advocacy system 
serving the American Indian Consortium in an amount equal to that 
allotted to the territories.
    Current Regulations: Current Sec.  370.30 describes allotments to 
CAP grantees, but does not mention the protection and advocacy system 
serving the American Indian Consortium since this is a new statutory 
requirement.
    Proposed Regulations: We propose to amend current Sec.  370.30 by 
adding a new paragraph (c) that would require the Secretary to reserve 
funds to award a CAP grant to the protection and advocacy system 
serving the American Indian Consortium. This grant would be made at the 
level of funding authorized for a territory. We also propose to make 
conforming amendments to the following related regulations.
    We propose to amend current Sec.  370.2(a) to add the protection 
and advocacy system serving the American Indian Consortium as eligible 
to receive a CAP grant.
    We propose to amend current Sec.  370.6 to: (a) Incorporate 
references to tribal governmental agencies in the definition of 
``advocacy''; (b) add new definitions for the terms ``American Indian 
Consortium'' and ``protection and advocacy system''; and (c) amend the 
definition of ``designated agency'' to include the protection and 
advocacy system serving the American Indian Consortium.
    We propose to amend current Sec.  370.20, which governs 
applications for CAP grants, by adding references to the protection and 
advocacy system serving the American Indian Consortium, to clarify that 
this entity is responsible for submitting the application and 
assurances for a CAP grant. For all other CAP grantees, the Governor 
would submit the application and assurances on behalf of the grantees.
    We propose to amend current Sec.  370.40(c) to clarify that the 
protection and advocacy system serving the American Indian Consortium 
is responsible and accountable for the CAP to the Secretary, and the 
Secretary may seek recovery of funds from that entity, if determined 
necessary.
    Reasons: The proposed changes are necessary to implement new 
statutory requirements that add the protection and advocacy system 
serving the American Indian Consortium as eligible to receive a CAP 
grant. The protection and advocacy system serving the American Indian 
Consortium is established under the Developmental Disabilities 
Assistance and Bill of Rights Act of 2000. Until the enactment of WIOA, 
this particular protection and advocacy system was authorized to 
provide services under other components of the protection and advocacy 
system, including the Protection and Advocacy of Persons with 
Developmental Disabilities, the Protection and Advocacy of Individuals 
with Mental Illness, and the Protection and Advocacy of Individual 
Rights programs, but not CAP. In addition, the Secretary believes it is 
critical to clarify through the regulations that the CAP administered 
by the protection and advocacy system serving the American Indian 
Consortium, as a new grantee, has the ability to engage in advocacy on 
behalf of clients and client-applicants with tribal governmental 
agencies since those agencies likely would be most relevant to the 
issues raised by clients and client-applicants of that particular CAP. 
Therefore, we propose to clarify that advocacy includes acting on 
behalf of the clients or client-applicants with tribal governmental 
agencies. Finally, we believe it is important to clarify that the 
protection and advocacy system serving the American Indian consortium 
is specifically established under the Developmental Disabilities 
Assistance and Bill of Rights Act of 2000; therefore, this CAP agency 
is not one that is designated by the Governor as are all other CAP 
grantees.

Training and Technical Assistance (Sec.  370.30)

    Statute: Section 112(e)(1)(F) of the Act, as amended by WIOA (29 
U.S.C. 732(e)(1)(F)), requires the Secretary to reserve a portion of 
the total CAP appropriation, once it equals or exceeds $14 million, to 
award a grant for the purpose of providing training and technical 
assistance to CAP grantees.
    Current Regulations: Current Sec.  370.30 describes the allotment 
process, but does not address this particular reservation of funds 
since it is a new statutory requirement.
    Proposed Regulations: We propose to amend current Sec.  370.30 by 
adding a new paragraph (d) that requires the Secretary to reserve funds 
from the CAP appropriation, once it equals or exceeds $14 million, to 
fund training and technical assistance to designated CAP agencies. The 
training and technical assistance provided under this section, as 
proposed, must be carried out in coordination with the training and 
technical assistance activities provided under the Protection and 
Advocacy of Individual Rights program at 34 CFR part 381.
    We also propose to revise current Sec.  370.5(a)(1) to clarify that 
part 75 of EDGAR applies to the grant made in accordance with Sec.  
370.30(d)(1).
    Reasons: The changes are necessary to implement amendments to 
section 112 of the Act made by WIOA that require the Secretary to award 
a grant for the purpose of providing training and technical assistance 
to CAP grantees once the CAP appropriation reaches a certain level and 
are intended to help designated CAP agencies improve their operations 
and service delivery.

Reallotment (Sec.  370.31)

    Statute: Section 112(e)(2) of the Act (29 U.S.C. 732(e)(2)) sets 
forth the process by which the Secretary reallots funds when a CAP 
grantee cannot use all funds awarded to it. This statutory provision 
remains unchanged.
    Current Regulations: Current Sec.  370.31(a) requires a CAP grantee 
to notify the Secretary 90 days prior to the end of the fiscal year of 
funds awarded for that year that are available for reallotment.
    Proposed Regulations: We propose to amend current Sec.  370.31(a) 
to reduce to 45 days the period a designated CAP agency has to inform 
the Secretary if funds will be available for reallotment.
    Reasons: This change is necessary to bring the CAP requirements 
into alignment with current practices for other formula grants 
administered by the Rehabilitation Services Administration. The 
Secretary believes this proposed change would benefit CAP grantees 
because each would have 45 more days to determine whether it would be 
unable to use the awarded funds and, thus, would need to relinquish 
those funds for reallotment. In practice, CAP grantees rarely

[[Page 20994]]

relinquish funds since those funds are available for use in the 
succeeding fiscal year.

Carryover (Sec.  370.47)

    Statute: Section 19 of the Act permits CAP grantees to carry over 
funds received under section 112 of the Act to the succeeding fiscal 
year. This statutory provision remains unchanged.
    Current Regulations: Current Sec.  370.47(b) requires CAP grantees 
to notify the Secretary if they are carrying over funds into the fiscal 
year succeeding that in which the funds were awarded.
    Proposed Regulations: We propose to delete paragraph (b) of current 
Sec.  370.47 to align the regulations with section 19 of the Act and 
current Department practice, neither of which requires grantees to 
inform the Department of an intent to carry over funds.
    We propose to renumber current Sec.  370.47 as Sec.  370.48 and 
include language clarifying reallotment funds that are not obligated or 
expended by the designated agency prior to the beginning of the 
succeeding fiscal year, may be carried over to the succeeding fiscal 
year and remain available for obligation and expenditure in that 
succeeding fiscal year.
    Reasons: Neither section 19 of the Act nor the Department's current 
practice require designated agencies to inform the Secretary that 
funds, including any reallotment funds, are being carried over into the 
succeeding fiscal year.

Program Income (Sec.  370.47)

    Statute: Section 19 of the Act governs the use of program income 
received by various programs, including the CAP. This statutory 
provision remains unchanged.
    Current Regulations: None.
    Proposed Regulations: We propose to rename Sec.  370.47 as ``What 
is program income and how may it be used?'' Proposed Sec.  370.47 would 
define program income, identify its uses, and permit it to be treated 
as either an addition or deduction to the CAP award.
    In addition, we propose amending renumbered Sec.  370.48 to permit 
program income to be carried over into the succeeding fiscal year.
    Reasons: These regulations are necessary to govern the use and 
treatment of program income, consistent with section 19 of the Act. 
Additionally, designated CAP agencies that earn program income, or 
receive transferred Social Security Administration payments from the 
vocational rehabilitation program, have historically been permitted to 
spend the program income as an addition to their Federal award.

American Indian Vocational Rehabilitation Services Program (AIVRS), 34 
CFR Part 371

Background

    The program makes grants to the governing bodies of Indian tribes 
located on Federal and State reservations (and consortia of those 
governing bodies). Grantees provide vocational rehabilitation services 
for American Indians who are individuals with disabilities residing on 
or near these reservations, consistent with their strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and informed 
choice, so that these individuals may prepare for, and engage in, high-
quality employment that will increase opportunities for economic self-
sufficiency. The Department last made a comprehensive revision of the 
regulations for this program on February 18, 1994 (59 FR 8338).

Summary of Proposed Changes

    These proposed regulations would implement the changes WIOA made to 
section 121 of title I of the Act. WIOA expanded the definition of 
``Indian'' to include natives and descendants of natives under the 
Alaska Native Claims Settlement Act. WIOA amended the definition of 
``Indian tribe'' to include a ``tribal organization.'' Proposed subpart 
B would amend the AIVRS regulations to implement the WIOA requirement 
that not less than 1.8 percent and not more than 2 percent of the funds 
for the AIVRS program be reserved to provide training and technical 
assistance to the governing bodies of Indian tribes and consortia of 
those governing bodies eligible for a grant under this program.
    The proposed amendments also implement changes made by WIA in 1998 
that have not previously been incorporated, such as the expansion of 
services to American Indians with disabilities living ``near'' a 
reservation, as well as ``on'' a reservation and the change of the 
project period from up to three to up to five years. Additionally, we 
propose to incorporate relevant sections of part 369, which the 
Department proposes to repeal, and relevant sections of part 361, 
particularly definitions found in each of those parts.

Significant Proposed Regulations

    Because we propose to make a number of structural and numbering 
revisions to part 371, we discuss the proposed changes by subpart and, 
within each subpart, by subject or section.

Subpart A--General

    Statute: The statutory title of this program is ``American Indian 
Vocational Rehabilitation Services.''
    Current Regulations: The current title for the program in the 
regulation is ``Vocational Rehabilitation Service Projects for American 
Indians with Disabilities.''
    Proposed Regulations: We propose to change the title of part 371 to 
``American Indian Vocational Rehabilitation Services.''
    Reasons: The change would make the title of the regulations 
consistent with the statutory title of the program, eliminating any 
confusion.
    Statute: WIOA clarified the purpose of the AIVRS program. It added 
language to section 121(a) of the Act describing that services would be 
provided to American Indians with disabilities consistent with their 
strengths, resources, priorities, concerns, abilities, capabilities, 
interests, and informed choice, so that such individuals may prepare 
for, and engage in, high-quality employment that will increase 
opportunities for economic self-sufficiency.
    WIA amendments in 1998 added the ability of AIVRS projects to serve 
American Indians with disabilities who live ``near'' the reservation in 
addition to ``on'' the reservation. Additionally, section 121(b)(B) of 
the Act authorizes projects funded under this program to include 
``services traditionally used by Indian tribes.''
    Current Regulations: Current Sec.  371.1 does not include the 
ability of projects to serve individuals ``near'' a reservation, nor 
does it make clear that projects may provide culturally appropriate 
services (i.e., services traditionally used by Indian tribes). While it 
includes some of the language regarding the purpose of the program, it 
does not include all of the new language added by WIOA.
    Proposed Regulations: We propose to amend Sec.  371.1 to restate 
the purpose of the program and include the new language added to 
section 121 of the Act by WIOA. Current Sec.  371.1 would also be 
updated to include the expanded eligibility of beneficiaries in the WIA 
1998 amendments to section 121.
    Reasons: The regulations would properly reflect the purpose of the 
program restated by WIOA and the expansion of services to American 
Indians with disabilities who live ``near'' the reservation made by WIA 
in 1998.

[[Page 20995]]

    Statute: WIOA affects eligibility for the AIVRS program by 
including a ``tribal organization (as defined in section 4(l) of the 
Indian Self-Determination and Education Assistance Act (25 U.S.C. 
450b(l))'' in the definition of ``Indian tribe'' under section 7(19) of 
the Act. By adding the authority to make awards of grants, contracts, 
or cooperative agreements for training and technical assistance under 
this program, WIOA also expands the eligibility of entities able to 
apply for funding under this program.
    Current Regulations: Section 371.2 does not reflect the expanded 
eligibility of tribal organizations for AIVRS projects or of other 
entities for the new training and technical assistance funds, providing 
only that applications may be made by the governing bodies of Indian 
tribes and consortia of those governing bodies located on Federal and 
State reservations.
    Proposed Regulations: Proposed Sec.  371.2 would explain how a 
governing body of an Indian tribe, a consortium, and a tribal 
organization may each be an applicant for a grant under the AIVRS 
program. In order to ensure that a tribal organization is capable of 
carrying out the purposes of the AIVRS program, proposed Sec.  
371.2(a)(2) would require that the tribal organization has, as one of 
its functions, the vocational rehabilitation of American Indians with 
disabilities. Proposed Sec.  371.2(a)(3) would require that a grant to 
an applicant serving more than one tribe must have the approval of each 
tribe it proposes to serve. This section would also identify those 
entities eligible to be applicants for a training and technical 
assistance award under the AIVRS program.
    Reasons: The proposed amendments would incorporate the WIOA changes 
to eligibility for awards under the AIVRS program for both AIVRS 
projects and the training and technical assistance funds. The 
amendments would also clarify certain requirements the applicant for an 
AIVRS award must meet in order to fulfill the purposes of the program.
    Statute: Section 121(a) of the Act describes the type of projects 
that are authorized to be funded under the AIVRS program.
    Current Regulations: Current Sec.  371.10 describes the types of 
projects that are authorized under the AIVRS program but does not 
include the 1998 amendments made by WIA that expanded the individuals 
that could be served to those who live ``near,'' as well as ``on,'' the 
reservation.
    Proposed Regulations: We propose to renumber current Sec.  371.10 
to Sec.  371.3 and to add the authority for AIVRS projects to serve 
individuals who reside ``near'' a reservation as well as ``on'' a 
reservation. We also propose to change the language of this section to 
reflect the change in the title of this part to be consistent with the 
statutory title of the program.
    Reason: We propose to move and renumber Sec.  371.10 to Sec.  371.3 
in order to move that provision to accompany the other general 
provisions in subpart A. We propose to update the language in order to 
be consistent with the statutory changes made by WIA in 1998 and the 
change made to the title of the regulations in this part.
    Statute: Section 121(b)(3) of the Act was amended by WIA in 1998 to 
provide that projects funded under the AIVRS program are effective for 
a period up to 60 months.
    Current Regulations: Current Sec.  371.5 provides that a project is 
effective for up to three years and includes authorization for an 
extension up to two additional years if certain conditions are met.
    Proposed Regulations: We propose to renumber current Sec.  371.5 to 
Sec.  371.4 and to update the regulation to provide for a project 
period of up to 60 months.
    Reason: We propose this change in order to move this general 
section before the sections addressing applicable regulations and 
definitions at the end of subpart A. We propose to update the language 
in order to be consistent with the statutory changes made by WIA in 
1998.
    Statute: WIOA amended section 7 of the Act, changing several 
definitions relevant to the AIVRS program.
    Current Regulations: Section 371.4 provides that the definitions in 
part 369 apply to the AIVRS program and also defines five additional 
words and phrases applicable to the AIVRS program.
    Proposed Regulations: Proposed Sec.  371.4 would be moved and 
renumbered to Sec.  371.6 and revised to be a comprehensive definitions 
section. It would include the definitions in current Sec.  371.4 and 
referenced by current Sec.  371.3, some of which we would revise; 
definitions from part 369, which the Department proposes to repeal; 
relevant definitions from sections 7 and 121 of the Act added by WIOA; 
relevant definitions from part 361; and other definitions of terms 
commonly used in this part that are needed to provide clarity.
    The definitions that we would add from Section 361 are: 
``Assessment for determining eligibility and vocational needs''; 
``Comparable services and benefits''; ``Eligible Individual''; 
``Employment outcome''; ``Family member''; ``Maintenance''; ``Physical 
and mental restoration services''; ``Physical or mental impairment''; 
``Post-employment services''; ``Substantial impediment to employment''; 
``Supported employment''; ``Supported employment services''; 
``Transition services''; and ``Transportation.''
    The definitions that we would add from part 369 are: ``Act''; 
``Community rehabilitation program''; ``Individual with a disability''; 
``Individual with a significant disability''; and ``Vocational 
Rehabilitation Services.''
    The new definitions required by WIOA are: ``Competitive integrated 
employment''; ``Customized Employment''; Representative of the tribal 
vocational rehabilitation program; ``Tribal organization;'' and 
``Tribal Vocational Rehabilitation Program''.
    The definitions of common terms we would add for clarity are: 
``Representative of the Tribal Vocational Rehabilitation program'' and 
``Subsistence.''
    The current definitions that we would change are ``Consortium''; 
and ``Indian''; ``American Indian''; ``Indian American''; and ``Indian 
tribe.'' ``Reservation'' was amended, following public notice and 
comment, by a final regulation issued on February 5, 2015 (80 FR 6452). 
Proposed substantive changes to individual definitions will be 
discussed throughout this NPRM in conjunction with relevant topical 
discussions.
    Reasons: We propose to include relevant definitions from part 369, 
which we propose to repeal, in proposed Sec.  371.6 so that these 
definitions still apply to the AIVRS program.
    We propose to add definitions of terms as they are defined in 
sections 7 and 121 of the Act, as amended by WIOA, in order to be 
consistent with the statute.
    We propose to include definitions from part 361 as the same terms 
are used in the AIVRS program, and adding definition of these terms to 
part 371 will make this part easier to use.
    We propose to add definitions of ``Representative of the Tribal 
Vocational Rehabilitation program'' and ``Subsistence.'' We propose to 
include ``Representative of the Tribal Vocational Rehabilitation 
program'', as used in Sec.  371.21 pertaining to the special 
application requirements for projects funded under part 371, because we 
believe the definition would help the AIVRS grantees to more 
effectively implement the program and fiscal requirements and to 
improve employment outcomes for American

[[Page 20996]]

Indians with disabilities. We propose to define ``subsistence'' to make 
clear that it is a form of self-employment and that it continues to be 
an allowable employment outcome under the AIVRS program.
    Finally, we propose to revise the definitions of ``American 
Indian,'' ``Consortium'' and ``Indian tribe'' to implement WIOA changes 
and to clarify eligibility under the program.

Proposed New Subpart B--Training and Technical Assistance (Replaces 
Current Subpart B)

    Statute: WIOA added to section 121 of the Act, a new subsection 
(c), which requires that, beginning in FY 2015, not less than 1.8 
percent and not more than 2 percent of the funds for this program be 
reserved to provide, either directly or through grants, contracts, or 
cooperative agreements, training and technical assistance to the 
governing bodies of Indian tribes and consortia of those governing 
bodies awarded a grant under this program. Section 121(c) also provides 
that the Secretary must conduct a survey of such governing bodies to 
determine funding priorities for the training and technical assistance; 
and that the Secretary shall provide for peer review of applications to 
provide training and technical assistance from eligible entities by 
panels that include persons who are not government employees and who 
have experience in the operation of AIVRS programs.
    Current Regulations: None.
    Proposed Regulations: We propose to add a new subpart B to part 
371, consisting of Sec. Sec.  371.10 through 371.14, to govern how the 
Department would assess the need for, and provide training and 
technical assistance to, grantees under the AIVRS program.
    Proposed Sec.  371.10 would provide that the Secretary reserve not 
less than 1.8 percent and not more than 2 percent of the funds 
appropriated to carry out the AIVRS program to provide training and 
technical assistance in any fiscal year, beginning in FY 2015, to the 
governing bodies of Indian tribes and consortia of those governing 
bodies awarded a grant under this program.
    Proposed Sec.  371.11 would explain how the Secretary uses the 
funds specified in Sec.  371.10 to provide training and technical 
assistance, either directly or through grants, contracts, or 
cooperative agreements to entities that have the capacity to provide 
such training and technical assistance. Any selected entity receiving 
funding would provide training and technical assistance to the 
governing bodies of Indian tribes and consortia of those governing 
bodies awarded a grant under this program with respect to developing, 
conducting, administering, and evaluating tribal vocational 
rehabilitation programs funded under this part.
    Proposed Sec.  371.12 would describe how the Secretary makes an 
award under subpart B for training and technical assistance, requiring 
an applicant to submit an application to the Secretary containing a 
proposal for the provision of training and technical assistance to the 
governing bodies of Indian tribes and consortia of those governing 
bodies awarded a grant under this program. Section 371.12 would also 
require applications to be peer reviewed by panels that include 
individuals who are not Federal or State government employees and who 
have experience in the operation of AIVRS programs.
    Proposed Sec.  371.13 would provide that the Secretary determines 
funding priorities for training and technical assistance by conducting 
a survey of the governing bodies of Indian tribes funded under this 
part to assess training and technical assistance needs.
    Proposed Sec.  371.14(a) would provide that the Secretary evaluates 
applications for a grant, cooperative agreement, or contract under 
subpart B on the basis of selection criteria chosen from the general 
selection criteria found in EDGAR at 34 CFR 75.210. Proposed Sec.  
371.14(b) would allow for a competitive preference to be given to 
applications that include as project personnel in a substantive role, 
individuals that have been employed as a project director or VR 
counselor by a Tribal Vocational Rehabilitation unit funded under this 
part. Proposed Sec.  371.14(c) would provide that, if a contract is 
awarded, it will be made in accordance with regulations at 34 CFR part 
75.
    Reasons: The proposed new subpart B gives effect to the new WIOA 
training and technical assistance requirements and the manner in which 
these requirements are implemented, including a survey of needs and the 
funding of activities either directly or through a peer reviewed 
competitive process consistent with the Department's practices.

Subpart C--How does one apply for a grant?

    Statute: None.
    Current Regulations: Section 371.20 requires the applicant to 
consult with the DSU for the State Vocational Rehabilitation program in 
the State or States in which the AIVRS program is providing services.
    Proposed Regulations: We propose to update current Sec.  371.20 to 
include the language from current Sec.  369.20 that references the 
specific provisions of EDGAR in 34 CFR 75.155-75.159 that the AIVRS 
projects should use when consulting with the DSU in the State or States 
in which the AIVRS program is providing services.
    Reason: Incorporating the specific provisions from current Sec.  
369.20 would clarify the procedures that the AIVRS projects should use 
when consulting with the DSU or DSUs in the State or States in which it 
is providing services.
    Statute: WIOA added to section 121(b)(1)(D) of the Act that 
applicants for a AIVRS grant provide assurances that (i) all decisions 
affecting eligibility for vocational rehabilitation services, the 
nature and scope of available vocational rehabilitation services and 
the provision of such services will, consistent with title I, be made 
by a representative of the tribal vocational rehabilitation program 
funded through the grant; and (ii) such decisions will not be delegated 
to another agency or individual.
    In addition, the WIA 1998 amendments made certain amendments to the 
Act reflected throughout, such as changing ``severely disabled'' to 
``significantly disabled;'' ``similar benefits'' to ``comparable 
benefits;'' and changing the ``individualized written rehabilitation 
program'' to the ``individualized plan for employment.'' These 
amendments also authorized AIVRS projects to provide services to 
American Indians with disabilities living ``near'' as well as ``on'' a 
reservation in section 121(a).
    Finally, the 1998 amendments made changes relevant to the AIVRS 
program to subsection (6) of section 101(a) of the Act that address 
standards for facilities and providers of services and deleted the 
requirement in subsection (7) to make maximum use of public or other 
vocational or technical training facilities or other appropriate 
community resources.
    Current Regulations: Section 371.21 lists the special application 
requirements for projects funded under the AIVRS program. The 
requirements have not, however, been updated to reflect the statutory 
changes made by the WIA 1998 amendments and the WIOA amendments.
    Proposed Regulations: Current Sec.  371.21(b) already includes the 
requirement that all decisions affecting eligibility and the nature, 
scope and provision of vocational rehabilitation services will be made 
by a tribal vocational rehabilitation program through its vocational 
rehabilitation unit and will not be delegated to another agency or 
individual. However, we propose to update the language

[[Page 20997]]

consistent with the inclusion of the term ``representative of the 
tribal vocational rehabilitation program'' in the statute by the WIOA 
amendments. We also propose to update other paragraphs of current Sec.  
371.21 to reflect changes made by the WIA 1998 amendments to the Act. 
Additionally, we would revise Sec.  371.21(j) to reflect the statutory 
requirement for the accessibility of facilities, and we would add Sec.  
371.21(k) to require service providers to communicate with applicants 
in language or modes of communication they understand. Finally, we 
propose to delete current Sec.  371.21(k) since the provision in the 
statute on which it was based has been removed.
    Reason: We are proposing these changes so that Sec.  371.21 is 
consistent with statutory provisions in the Act, which have changed 
since the last time these regulations were amended, and to provide for 
a more culturally sensitive and efficient administration of the 
program.

Subpart D--How does the Secretary make a grant?

    Statute: Section 121(b)(1)(A) of the Act provides that an 
application must be made at such time, in such manner, and contain such 
information as the Commissioner may require.
    Current Regulations: Section 369.32(b) provides that the Secretary 
considers other factors in addition to the selection criteria in making 
awards, such as past performance of the applicant in carrying out 
similar activities under previously awarded grants. Specifically, the 
Secretary considers such factors as compliance with grant conditions, 
soundness of programmatic and financial management practices and 
attainment of established project objectives.
    Proposed Regulations: We propose to move current Sec.  369.32(b) 
into part 371 as proposed Sec.  371.32.
    Reasons: Because the Department is repealing part 369, we are 
proposing these changes to provide continuity of practice in how the 
Department makes the awards under this program.

Subpart E--What conditions apply to a grantee under this program?

    Statute: None.
    Current Regulations: Current Sec. Sec.  371.40 and 371.41 describe 
the requirements for matching and allowable costs, but they do not 
include the authority to serve American Indians with disabilities 
located ``near,'' as well as ``on,'' the reservation in section 121(a) 
added by the WIA amendments in 1998 or any reference to the OMB Uniform 
Guidance adopted by the Department.
    Proposed Regulations: We propose to add to Sec.  371.40 regarding 
matching and Sec.  371.41 regarding allowable costs the references to 
the sections in 2 CFR 200 that address these subjects. In addition, we 
propose to update the language in Sec.  371.41 regarding the ability of 
AIVRS projects to serve American Indians with disabilities located 
``near,'' as well as ``on,'' a reservation.
    Reasons: These proposed changes would make Sec. Sec.  371.40 and 
371.41 consistent with the changes made to section 121(a) of the Act in 
1998 by the WIA amendments and would clarify that the Department has 
adopted the OMB Uniform Guidance in 2 CFR part 200 and will apply that 
guidance going forward instead of the EDGAR provisions it replaces.
    Statute: Section 121(b)(1)(B) of the Act requires that applicants 
for an award under the AIVRS program provide an assurance that the 
vocational rehabilitation services provided to American Indians with 
disabilities residing on or near a reservation in a State shall be, to 
the maximum extent feasible, comparable to vocational rehabilitation 
services provided under the State Vocational Rehabilitation program to 
other individuals with disabilities residing in the State.
    Current Regulations: Current Sec.  371.43 describes the special 
conditions that apply to the AIVRS program.
    Proposed Regulations: We propose to add two additional paragraphs 
to Sec.  371.43. Proposed paragraph (d) would describe the nature of 
the written policies that the AIVRS project would have to develop in 
order to ensure that the provision of services is based on the 
vocational rehabilitation needs of each individual as identified in the 
individual's IPE and is consistent with the individual's informed 
choice. Proposed paragraph (e) would describe the necessary elements of 
an AIVRS project's policies and procedures developed to ensure each 
individual who is an applicant for, or eligible to receive, vocational 
rehabilitation services is afforded the opportunity to exercise 
informed choice throughout the vocational rehabilitation process.
    Reasons: We propose to add paragraphs (d) and (e) to Sec.  371.43 
in order to ensure that the AIVRS projects provide vocational 
rehabilitation services that are comparable to those services provided 
by the State and to ensure efficient administration of the projects 
funded under the AIVRS program. The nature and scope of the vocational 
rehabilitation services provided by the AIVRS projects, and respect for 
the informed choice of the consumers who utilize those services, are 
central tenets of vocational rehabilitation. While AIVRS projects would 
have been implementing these central requirements of the vocational 
rehabilitation program, we believe it is essential to require the AIVRS 
projects funded under this program to develop and maintain written 
policies and procedures that address these issues.
    Statute: Section 121(b)(1)(B) of the Act requires that applicants 
for an award under the AIVRS program provide an assurance that the 
vocational rehabilitation services provided to American Indians with 
disabilities residing on or near a reservation in a State shall be, to 
the maximum extent feasible, comparable to vocational rehabilitation 
services provided under the State Vocational Rehabilitation program to 
other individuals with disabilities residing in the State.
    Current Regulations: Current Sec.  369.46 describes the special 
requirements pertaining to the protection, use, and release of personal 
information.
    Proposed Regulations: We propose to add a new Sec.  371.44 that 
describes the special requirements pertaining to the protection, use, 
and release of personal information.
    Reasons: Because the Department is proposing to remove part 369, 
which currently applies to the AIVRS program, we propose to incorporate 
the provisions related to the protection, use, and release of personal 
information into part 371. However, because vocational rehabilitation 
services provided under the AIVRS program are required to be, to the 
maximum extent feasible, comparable to vocational rehabilitation 
services provided under the State Vocational Rehabilitation program, we 
believe that the section in part 361 that describes the special 
requirements pertaining to the protection, use, and release of personal 
information would provide better guidance to the AIVRS projects.
    Statute: Section 20 of the Act requires all programs that provide 
services to individuals with disabilities under the Act to advise them 
or their representatives of the availability and purposes of the client 
assistance program under section 112, including information on means of 
seeking assistance under that program.
    Current Regulations: Current Sec.  369.42(b) requires the AIVRS 
projects to advise applicants or recipients of services or, as 
appropriate, their parents, family members, guardians, advocates, or 
authorized representatives, of the availability and purposes of the 
State's Client Assistance Program, including

[[Page 20998]]

information on seeking assistance from that program.
    Proposed Regulations: We propose to move current Sec.  369.42(b) 
into a new section of part 371, proposed Sec.  371.45.
    Reasons: Because the Department is proposing to remove part 369, 
which currently applies to the AIVRS program, we propose to incorporate 
into part 371 the provisions related to the requirement to advise 
consumers about the existence and purpose of CAP and how to contact 
CAP, which now includes as a grantee the protection and advocacy system 
serving the American Indian Consortium.

Rehabilitation National Activities Program, 34 CFR Part 373

Background

    The purpose of this program is to provide competitive grants 
(including cooperative agreements) to, or enter into contracts with, 
eligible entities to expand and improve the provision of vocational 
rehabilitation and other services authorized under the Act, or to 
support activities that increase the provision, extent, availability, 
scope, and quality of rehabilitation services, including related 
research and evaluation activities. The Department last published 
regulations for this program, on December 11, 2000 (65 FR 77433).

Summary of Proposed Changes

    These proposed regulations would implement the changes WIOA made to 
section 303(b) of the Act. We are proposing a new name for the 
program--the Rehabilitation National Activities Program--that better 
describes the broad nature of the types of activities that may be 
funded under this authority. As appropriate, we propose to add a 
definition of ``vocational rehabilitation services'' and to replace the 
term ``rehabilitation services'' with ``vocational rehabilitation 
services.'' We will retain the more general term ``rehabilitation 
services'' in instances when the services listed go beyond vocational 
rehabilitation services. The change would clarify that the types of 
projects that may be funded under the Rehabilitation National 
Activities Program are not limited to vocational rehabilitation 
services as they are defined in title I of the Act but rather may 
address the broader range of services encompassed by the term 
``rehabilitation services.''
    Further, we propose to add two new statutory priorities pertaining 
to transition from education to employment and competitive integrated 
employment and add four additional priorities to address the technical 
assistance and training needs of State vocational rehabilitation 
agencies and their personnel.

Significant Proposed Regulations

    We arrange our discussion of proposed changes to this part by 
subject.
    Title
    Statute: None.
    Current Regulations: The current part 373 is called ``Special 
Demonstration Programs.''
    Proposed Regulations: We propose to change the name of the part to 
``Rehabilitation National Activities Program.''
    Reasons: The new name would better describe the activities funded 
under this program.

Cooperative Agreements

    Statute: None.
    Current Regulations: Although authorizing the awarding of grants, 
the current part 373 does not specifically state that the Department 
may also award cooperative agreements.
    Proposed Regulations: We propose to amend Sec.  373.1 to state that 
grants and cooperative agreements may be awarded to serve the purpose 
of the Rehabilitation National Activities Program authorized under the 
Act.
    Reasons: The proposed change would clarify that the Secretary may 
make cooperative agreements, which are one type of grant, to pay all or 
part of the costs of the activities covered under this program.

Competitive Integrated Employment

    Statute: Section 303 of the Act, as amended by WIOA, mandates that, 
in announcing competitions for the special demonstration programs, the 
Commissioner shall give priority consideration to initiatives focused 
on improving transition from education to employment, particularly in 
competitive integrated employment, for youth who are individuals with 
significant disabilities and to increasing competitive integrated 
employment for individuals with significant disabilities. Section 7 of 
the Act now defines the term ``competitive integrated employment.''
    Current Regulations: The current part 373 does not address 
competitive integrated employment.
    Proposed Regulations: We propose to include a provision in Sec.  
373.7 stating that the Commissioner will give priority consideration to 
activities on improving transition from education to employment, 
including competitive integrated employment. We also propose to add a 
definition of ``competitive integrated employment'' in Sec.  373.4.
    Reasons: The proposed change is necessary to conform part 373 to 
the changes to the Act made by WIOA.

Vocational Rehabilitation Services

    Statute: The Act refers to the provision of ``vocational 
rehabilitation services'' throughout title I, and section 7 defines the 
term ``vocational rehabilitation services.'' Section 303 of the Act, 
however, does not refer to the term ``vocational rehabilitation 
services'' but rather authorizes special demonstration programs to 
expand and improve the provision of rehabilitation and other services 
under the Act.
    Current Regulations: There is no reference to the term ``vocational 
rehabilitation services'' in part 373. Also, part 373 includes a 
definition of ``rehabilitation services'' that is virtually identical 
to section 103(a) of the Act, which details vocational rehabilitation 
services for individuals.
    Proposed Regulations: We propose to amend part 373 by replacing, 
when appropriate, the term ``rehabilitation services'' with the term 
``vocational rehabilitation services.'' In addition, we propose adding 
a definition for the term ``vocational rehabilitation services'' that 
is identical to the current definition for the term ``rehabilitation 
services.'' Finally, we propose to change the definition of the term 
``rehabilitation services'' in a manner that is broader than the 
proposed definition for the term ``vocational rehabilitation 
services.''
    Reasons: These proposed changes are necessary to conform part 373 
to titles I and III of the Act and to differentiate between 
rehabilitation services and vocational rehabilitation services. These 
proposed changes would clarify that the types of projects that may be 
funded under the Rehabilitation National Activities Program are not 
limited to vocational rehabilitation services but rather may address 
the broader range of services encompassed by the term ``rehabilitation 
services'' authorized by title III of the Act.

Supported Employment

    Statute: Section 303 of the Act mandates that, in announcing 
competitions under this program, the Commissioner shall give priority 
consideration to supported employment programs. Section 7 of the Act 
defines the term ``supported employment.''
    Current Regulations: The current part 373 does not include a 
definition of the term ``supported employment.''

[[Page 20999]]

    Proposed Regulations: We propose to amend Sec.  373.4 to include a 
definition of ``supported employment'' that is currently contained in 
Sec.  361.5(b)(53).
    Reasons: The proposed change would better assist eligible entities 
in determining how to comply with any requirement to address supported 
employment. Specifically, in implementing the priority listed in 
proposed Sec.  373.7(a)(2), in which the term ``supported employment'' 
is used, we are proposing that the same definition of this term that is 
used in 34 CFR part 361 be used here.

Projects That May Be Funded

    Statute: Under section 303 of the Act, projects funded under the 
special demonstration programs may include special projects and 
demonstrations of service delivery, model demonstration projects, 
technical assistance projects, systems change projects, special studies 
and evaluations, and dissemination and utilization activities.
    Current Regulations: Part 373 lists these types of projects along 
with potential project priorities in Sec.  373.6, which is entitled 
``What are the priorities and other factors and requirements for 
competitions?''
    Proposed Regulations: We propose to amend current Sec.  373.6 to 
change the section title to ``What types of projects may be funded?'' 
and to include only the six types of projects authorized by the statute 
under this section.
    Reasons: The proposed change is necessary to conform part 373 to 
the Act and to clarify that the types of projects that may be funded 
under the Rehabilitation National Activities Program are not priorities 
for funding.

Priorities for Competitions

    Statute: Section 303(b)(5) of the Act, as amended by WIOA, adds 
transition from education to employment and competitive integrated 
employment to supported employment as priorities for competitions.
    Current Regulations: Section 373.6 lists three statutory 
priorities, two of which have been deleted by WIOA, and the third, 
pertaining to supported employment, does not contain the full statutory 
language.
    Proposed Regulations: We propose to amend part 373 by adding a new 
Sec.  373.7 entitled ``What are the priorities and other factors and 
requirements for competitions?'' This proposed section contains the 
full statutory language for the two new statutory priorities pertaining 
to transition from education to employment and competitive integrated 
employment and for the preexisting statutory priority for supported 
employment.
    Reasons: The proposed change is necessary to conform part 373 to 
the new statutory priorities contained in WIOA.

Priorities and Other Factors and Requirements for Competitions

    Statute: Section 303 of the Act mandates that, in announcing 
competitions for grants and contracts under the special demonstration 
programs, the Commissioner shall give priority consideration to 
``priority for competitions'' under section 303(b)(5)(A), and may 
require applicants to address one or more ``additional competitions'' 
under section 303(b)(5)(B).
    Current Regulations: Part 373 addresses priority projects in Sec.  
373.6 but does not specify or differentiate among ``priority for 
competitions'' and ``additional competitions.''
    Proposed Regulations: We propose to move the content of priorities 
from the current Sec.  373.6 into a new Sec.  373.7. In addition to the 
statutory priorities that are listed in the current Sec.  373.6, we 
propose that Sec.  373.7 include the following four additional 
priorities for competitions under this program to address the technical 
assistance and training needs of State vocational rehabilitation 
agencies and their personnel:
    Sec.  373.7(b)(6) Technical assistance to designated State units 
and their personnel in working with employers to identify competitive 
integrated employment opportunities and career exploration 
opportunities in order to facilitate the provision of vocational 
rehabilitation services and transition services for youth with 
disabilities and students with disabilities.
    Sec.  373.7(b)(7) Consultation, training and technical assistance 
to businesses that have hired or are interested in hiring individuals 
with disabilities.
    Sec.  373.7(b)(8) Technical assistance and training to designated 
State units and their personnel on establishment and maintenance of 
education and experience requirements, to ensure that the personnel 
have an understanding of the evolving labor force and the needs of 
individuals with disabilities. This would align with the work of the 
current Job Development Training and Technical Assistance Center.
    Sec.  373.7(b)(9) Technical assistance to State vocational 
rehabilitation agencies and their partners to improve their performance 
to meet the requirements of WIOA designed to improve the numbers and 
quality of employment outcomes.
    Finally, the proposed Sec.  373.7 would also clarify that the 
Secretary may limit the priorities listed in paragraphs (a) and (b) of 
Sec.  373.7 to address one or more of the factors in Sec.  373.7(c).
    Reasons: The proposed changes are necessary to conform part 373 to 
the changes to the Act made by WIOA and to clarify the additional 
competition priorities and factors that the Secretary may apply to any 
competitions under this program. We expect that these proposed changes 
would expand and improve the Rehabilitation National Activities Program 
and further the purpose of the Act.

Protection and Advocacy of Individual Rights Program (PAIR), 34 CFR 
Part 381

Background

    The PAIR program is authorized under section 509 of the Act (29 
U.S.C. 794e). The purpose of the PAIR program is to support the 
protection and advocacy system in each State to protect the legal and 
human rights of individuals with disabilities who need services that 
are beyond the scope of the CAP, and who are not eligible for services 
under the Protection and Advocacy for Persons with Developmental 
Disabilities and the Protection and Advocacy of Individuals with Mental 
Illness programs.
    The Department last updated the regulations at 34 CFR part 381, 
which govern the PAIR program, on March 6, 1997 (62 FR 10404).

Summary of Proposed Changes

    Both WIA and WIOA made a few significant changes to section 509 of 
the Act. With regard to the statutory changes made to section 509 by 
WIA, we propose to add the protection and advocacy system serving the 
American Indian Consortium as an entity eligible to receive a PAIR 
grant.
    With regard to statutory changes made to section 509 by WIOA, we 
propose to clarify that PAIR grantees have the same general 
authorities, including to access records and program income, as the 
protection and advocacy system established under the Developmental 
Disabilities Assistance and Bill of Rights Act of 2000.
    We propose to clarify that the Secretary may award funds for the 
provision of training and technical assistance for PAIR grantees 
through a grant, contract, or cooperative agreement.

Significant Proposed Regulations

    We organize our discussion of proposed changes by subject and 
section.

[[Page 21000]]

The Definition of ``State'' (Sec.  381.2)

    Statute: Section 7(32) of the Act, as amended by WIA (29 U.S.C. 
705(32)), deleted the Republic of Palau from the definition of the term 
``State.'' As a result, ``State'' includes, in addition to each of the 
several States of the United States, the District of Columbia, the 
Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana Islands. 
Section 7(32) of the Act was renumbered as section 7(34) by WIOA.
    Current Regulations: Current part 381 makes several references to 
the Republic of Palau (i.e., current Sec.  381.2 regarding eligibility 
for a PAIR grant and current Sec.  381.5 regarding definition of 
``State'').
    Proposed Regulations: We propose to delete all references to the 
Republic of Palau in part 381.
    Reasons: This change is necessary to implement the current 
statutory definition of ``State,'' which forms the basis for 
determining eligibility for grants under the Act.

Public School Programs (Sec.  381.3)

    Statute: None.
    Current Regulations: The current Sec.  381.3(a)(3) permits PAIR 
grantees to provide information on, and make referrals to, programs and 
services that address the needs of individuals with disabilities, 
including those individuals with disabilities who are exiting public 
school programs. Current Sec.  381.10(a)(4) requires PAIR grantees to 
make an assurance to provide information on and make referrals to 
programs and services that address the needs of individuals with 
disabilities, including those individuals with disabilities who are 
exiting public school programs.
    Proposed Regulations: We propose to make two changes in this part. 
First, we propose to amend current Sec.  381.3(a)(3) to clarify that 
PAIR grantees are authorized to provide information and referral 
services to individuals with disabilities exiting any school program. 
Second, we propose to amend Sec.  381.10(a)(4) to require PAIR grantees 
to assure that they will provide information and referral services to 
individuals with disabilities exiting any school program.
    Reasons: In proposing to use the term ``school,'' rather than 
``public school,'' we recognize that many more individuals with 
disabilities are being educated in both public and private schools and 
that they may need information and referral services by PAIR grantees 
to enable them to participate in the programming offered in these 
settings.

Access to Records (Sec.  381.10)

    Statute: Section 509(f)(2) of the Act, as amended by WIOA (29 
U.S.C. 794e(f)), requires that PAIR grantees have the same general 
authorities, including the authority to access records and program 
income, as given to the Protection and Advocacy for Persons with 
Developmental Disabilities program established under the Developmental 
Disabilities Assistance and Bill of Rights Act of 2000.
    Current Regulations: Current Sec.  381.10(a)(2) gives that PAIR 
grantees the same general authorities, including to access records and 
program income, as in part C of the Developmental Disabilities 
Assistance and Bill of Rights Act of 2000.
    Proposed Regulations: We propose to amend Sec.  381.10(a)(2) to add 
specific reference to ``title I'' of the Developmental Disabilities 
Assistance and Bill of Rights Act of 2000.
    Reasons: The proposed change is necessary to conform to the 
language of section 509, as amended by WIOA. This proposed change is 
primarily technical in nature as this authority existed prior to 
enactment of WIOA.

Training and Technical Assistance (Sec.  381.22)

    Statute: Section 509(c)(1)(A) of the Act, as amended by WIOA (29 
U.S.C. 794e(f)), clarifies that the training and technical assistance 
to PAIR grantees may be provided by the Secretary through a grant, 
cooperative agreement, or contract.
    Current Regulations: Current Sec.  381.22(a)(1) establishes the set 
aside for training and technical assistance to eligible systems, but 
does not specify the allowable mechanisms for funding the training and 
technical assistance since this is a new statutory requirement.
    Proposed Regulations: We propose to amend Sec.  381.22(a)(1) to 
clarify the funds for training and technical assistance may be awarded 
as a grant, contract, or cooperative agreement.
    Reasons: The proposed changes are necessary to conform to the 
changes in the Act made by WIOA. The changes are primarily technical, 
as the Secretary always could use these mechanisms for awarding funds 
to provide training and technical assistance to PAIR grantees.

The American Indian Consortium (Sec.  381.22)

    Statute: Section 509(c)(1)(B) of the Act, as amended by WIA (29 
U.S.C. 794e(c)), requires the Secretary to reserve $50,000 to make a 
grant to the protection and advocacy system serving the American Indian 
Consortium, established under section 102 of the Developmental 
Disabilities Assistance and Bill of rights Act of 2000, for any fiscal 
year in which appropriations for the PAIR program is at least $10.5 
million.
    Current Regulations: Current Sec.  381.22 does not address the 
funding of the protection and advocacy system serving the American 
Indian Consortium because part 381 was last updated prior to the 1998 
amendments to the Act.
    Proposed Regulations: We propose to amend Sec.  381.22 by adding a 
new paragraph (a)(2) to require a minimum grant of $50,000 to the 
protection and advocacy system serving the American Indian Consortium 
when the total PAIR appropriation equals or exceeds $10.5 million. We 
also propose to make related changes to four other sections in this 
part.
    Current Sec.  381.2 would be amended to include the American Indian 
Consortium as an eligible entity for a PAIR grant.
    Current Sec.  381.3 would be amended to clarify that the protection 
and advocacy system serving the American Indian Consortium has the 
authority to provide information, provide advocacy and legal 
representation, and make referrals for individuals with disabilities 
within the American Indian Consortium when describing the authorized 
activities of PAIR grantees.
    Current Sec.  381.5 would be amended to incorporate references to 
tribal governmental agencies in the definition of ``advocacy.''
    Current Sec.  381.10 would be amended to require the protection and 
advocacy system serving the American Indian Consortium to submit 
assurances as a PAIR grantee when applying for funding as part of the 
application requirements.
    Reasons: The proposed changes are necessary to implement the 
amendments to the Act made by WIA in 1998. Previously, this protection 
and advocacy system was eligible for funding under other components of 
the protection and advocacy system, including the Protection and 
Advocacy of Persons with Developmental Disabilities and the Protection 
and Advocacy of Individuals with Mental Illness programs, but not under 
the PAIR program.

Reallotment (Sec.  381.22)

    Statute: Section 509(e) of the Act (29 U.S.C. 794e(e)) sets forth 
the process by which the Secretary reallots PAIR funds when a grantee 
cannot use all funds allotted to it. This statutory provision remains 
unchanged.

[[Page 21001]]

    Current Regulations: Current Sec.  381.22 addresses how the 
Secretary allocates funds but does not cover the reallotment 
requirements.
    Proposed Regulations: We propose to add a new paragraph (d) to 
Sec.  381.22 to clarify that the Secretary may reallot funds to other 
eligible systems when an existing eligible system within the State is 
not able to expend its funds in that fiscal year or the subsequent 
fiscal year.
    Reasons: While the reallotment of PAIR funds has been permitted 
under section 509 of the Act, PAIR grantees have not returned funds to 
the Department for this purpose. However, we believe it is important to 
describe the reallotment requirements in this part in the event 
reallotment funds become available.

Program Income (Sec.  381.33)

    Statute: Section 19 of the Act governs the use of program income 
received by grantees, including PAIR grantees, under the Act. This 
statutory provision remains unchanged.
    Current Regulations: Current Sec.  381.33 describes how a grantee 
may use or carry over funds but it does not address how a grantee may 
spend program income
    Proposed Regulations: We propose to add a new paragraph (e) to 
Sec.  381.33 that defines program income, identifies its uses, permits 
it to be treated as either an addition or deduction to the PAIR award, 
and permits program income to be carried over into the fiscal year 
succeeding that in which it was earned.
    Reasons: These proposed regulations are necessary to govern the use 
and treatment of program income, consistent with sections 19 and 509 of 
the Act. Although this is not a new statutory requirement, we believe 
it is important to include these regulations into part 381 since PAIR 
grantees frequently receive large sums of program income.

Rehabilitation Training Program, 34 CFR Part 385

Background

    The Rehabilitation Training program is designed to: (1) ensure that 
skilled personnel are available to provide rehabilitation services to 
individuals with disabilities through vocational, medical, social, and 
psychological rehabilitation programs, through independent living 
services programs, and through client assistance programs; (2) maintain 
and upgrade basic skills and knowledge of personnel trained to deliver 
rehabilitation services; and (3) provide training and information to 
individuals with disabilities, and their parents, families, guardians, 
advocates, and authorized representatives, to develop the skills 
necessary to access the rehabilitation system and to become active 
decision makers in the vocational rehabilitation process. The 
Department last published regulations for this program, on March 6, 
1997 (62 FR 10398).

Summary of Proposed Changes

    We propose to add supported employment and economic and business 
development programs to the list of programs that may benefit 
individuals with disabilities.
    We propose to emphasize the importance of maintaining and upgrading 
the skills of personnel who provide supported employment services and 
customized employment services to individuals with the most significant 
disabilities, as well as personnel assisting individuals with 
disabilities whose employment outcome is self-employment, business 
ownership, or telecommuting.
    We propose to add a definition of ``vocational rehabilitation 
services'' and to replace the term ``rehabilitation services'' with 
``vocational rehabilitation services'' as appropriate. We will retain 
the more general term ``rehabilitation services'' in instances when the 
services listed go beyond vocational rehabilitation services. Finally, 
we would add definitions of ``supported employment'' and ``assistive 
technology'' consistent with definitions in title I of the Act.

Significant Proposed Regulations

    We organize our discussion by subject.

Purpose

    Statute: Section 301(a) of the Act states the purpose of the 
programs authorized under Title III of the Act and describes the types 
of programs whose personnel may benefit from rehabilitation training. 
Section 301(a)(1) authorizes the Commissioner to make grants and 
contracts to train personnel who work in economic and business 
development programs. WIOA added language to section 302(a)(1)(E) 
specifically highlighting the need to train personnel in programs that 
provide supported employment and customized employment for individuals 
with the most significant disabilities. Section 302(a)(1)(F) describes 
personnel assisting individuals with disabilities whose employment 
outcome is self-employment, business ownership, or telecommuting.
    Current Regulations: The current part 385 does not specifically 
address training personnel who deliver supported employment services 
and customized employment services to individuals with the most 
significant disabilities, nor is training personnel who assist 
individuals with disabilities whose employment outcome is self-
employment, business ownership, or telecommuting specifically 
mentioned.
    Proposed Regulations: We propose to amend current Sec.  385.1(a)(1) 
by adding supported employment and economic and business development 
programs to the list of programs that may benefit individuals with 
disabilities. We also propose to amend current Sec.  385.1(a)(2) to 
emphasize the importance of maintaining and upgrading the skills both 
of personnel who provide supported employment services and customized 
employment services to individuals with the most significant 
disabilities and personnel assisting individuals with disabilities 
whose employment outcome is self-employment, business ownership, or 
telecommuting.
    Reasons: The proposed changes in the regulations are necessary to 
conform the regulations to current sections 301(a) and 302(a) of the 
Act.

Assistive Technology Terms

    Statute: Section 302(a)(1)(H) of the Act, as amended by WIOA, 
authorizes the Rehabilitation Training program to assist eligible 
entities to provide rehabilitation personnel training in providing 
assistive technology services.
    Current Regulations: The current part 385 does not address 
``assistive technology services'' although the term ``rehabilitation 
technology'' is used in Sec.  385.1(a)(2), and Sec.  385.4 includes 
definitions of ``assistive technology device'' and ``assistive 
technology services.''
    Proposed Regulations: We propose to add a definition of ``assistive 
technology'' to the definitions ``assistive technology device'' and 
``assistive technology services'' already in current Sec.  385.4. 
Specifically we define ``assistive technology'' to mean ``technology 
designed to be utilized in an assistive technology device or assistive 
technology service.'' In addition, we propose to add to the definition 
of ``assistive technology services'' services that would expand the 
availability of access to technology, including electronic and 
information technology, to individuals with disabilities.
    Reasons: The proposed changes are necessary to conform part 385 to 
the changes to the Act made by WIOA.

[[Page 21002]]

Definition of State

    Statute: The Workforce Investment Act of 1998 deleted the Republic 
of Palau from the definition of the term ``State'' in section 7(32). As 
a result, ``State'' includes, in addition to each of the several States 
of the United States, the District of Columbia, the Commonwealth of 
Puerto Rico, the United States Virgin Islands, Guam, American Samoa, 
and the Commonwealth of the Northern Mariana Islands, but it has 
excluded the Republic of Palau.
    Current Regulations: The current Sec.  385.4 includes the Republic 
of Palau in the definition of ``State.''
    Proposed Regulations: We propose to delete the Republic of Palau 
from the areas included in the definition of ``State.''
    Reasons: The change conforms the definition of ``State'' to the 
current statutory definition.

Vocational Rehabilitation Services

    Statute: The Act refers to ``vocational rehabilitation services'' 
throughout title I, and section 7 defines the term ``vocational 
rehabilitation services.''
    Current Regulations: The current part 385 does not include a 
definition of ``vocational rehabilitation services.''
    Proposed Regulations: We propose to amend part 385 by adding a 
definition of ``vocational rehabilitation services.'' The proposed 
definition mirrors the definition provided in section 7 of the Act. We 
also propose to replace the term ``rehabilitation services'' with 
``vocational rehabilitation services'' in part 385 as appropriate. We 
would retain the more general term ``rehabilitation services'' in 
instances when the services listed go beyond vocational rehabilitation 
services.
    Reasons: The proposed changes are necessary to conform part 385 to 
titles I and III of the Act.

Supported Employment

    Statute: The changes to section 302 of the Act made by WIOA include 
a new authority in 302(a)(1) to train rehabilitation personnel to 
deliver supported employment services and customized employment 
services to individuals with the most significant disabilities. In 
addition, section 7(38) of the Act, as amended by WIOA, includes a 
definition of ``supported employment.''
    Current Regulations: The current part 385 does not address the 
provision of training for rehabilitation personnel to deliver supported 
employment services and customized employment services to individuals 
with the most significant disabilities.
    Proposed Regulations: We propose to amend the definitions of 
``supported employment'' and ``supported employment services'' in 
current Sec.  385.4 to address the amendments made to the Act by WIOA.
    Reasons: The proposed changes are necessary to conform part 385 to 
changes to section 7(38) of the Act made by WIOA. The fact that 
supported employment services now include ``customized employment'' and 
the fact that supported employment services may be provided for up to 
24 months are changes that need to be reflected in the regulations.

Rehabilitation Long-Term Training Program, 34 CFR Part 386

Background

    The purpose of the Rehabilitation Long-Term Training program is to 
provide financial assistance for projects that provide basic or 
advanced training leading to an academic degree or certificate in one 
of 30 fields of study and for projects that provide support for medical 
residents enrolled in training programs in physical medicine and 
rehabilitation. The program is designed to provide academic training 
that leads to an academic degree or academic certificate in areas of 
personnel shortages. The Department last published regulations for this 
program on March 6, 1997 (62 FR 10398).

Summary of Changes

    We propose to add two areas to the training areas supported by this 
program: (1) Assisting and supporting individuals with disabilities 
pursuing self-employment, business ownership, and telecommuting, and 
(2) supported employment services and customized employment services to 
individuals with the most significant disabilities.
    We are also proposing to reduce from 75 percent to 65 percent the 
required percentage of the total award that grantees must spend on 
financial assistance to scholars.
    We propose to prohibit scholars from concurrently receiving 
financial assistance from multiple grants.
    We propose that the grantee must document that the scholar will 
seek employment in the field of study in which the scholar was trained 
or where the field of study is directly relevant to the job functions 
being performed.
    We are proposing a number of changes to the exit processes that 
will help scholars be more aware of the requirements of their service 
obligation.
    We propose to set out the consequences for a grantee that has 
failed to request or maintain the required documentation for a scholar 
who does not meet the service obligation.
    We propose to allow some scholars to start satisfying the service 
obligation before completion of the program of study but to prohibit 
other scholars who do not complete the program of study from performing 
the service obligation.
    We propose to disallow internships, practicums, or any other work-
related requirement necessary to complete the educational program as 
qualifying employment for the service obligation.
    Finally, we propose some changes regarding deferrals and 
exceptions. For an exception based on disability, the scholar must have 
a disability either that did not exist at the time the scholar entered 
the program or that has worsened since the scholar entered the program. 
We are proposing that documentation of disability be less than three 
months old. With regard to deferrals, we propose to allow for up to 
four years deferral for a member on active duty in the Armed Forces, an 
increase from the three years in current regulations. We are proposing 
to restrict a deferral based on a scholar's pursuing higher education 
only to advanced education that is in the rehabilitation field.

Significant Proposed Regulations

    We organize our discussion by section number and subject.

Section 386.1 (Purpose)

    Statute: Section 302(a)(1) of the Act provides examples of the 
types of personnel who can be trained with funds under the long-term 
training program. Specifically, section 302(a)(1)(F) references the 
need to train personnel assisting and supporting individuals with 
disabilities pursuing self-employment, business ownership, and 
telecommuting. In addition, section 302(a)(1)(E) lists the need for 
personnel specifically trained to deliver supported employment services 
and customized employment services to individuals with the most 
significant disabilities.
    Current Regulations: Current Sec.  386.1(b) lists the categories of 
personnel who may receive training through the Rehabilitation Long-Term 
Training Program but does not include the categories in sections 
302(a)(1)(E) and (F).
    Proposed Regulations: In the list of personnel who may receive 
training through the Rehabilitation Long-Term Training Program in 
current Sec.  386.1(b), we propose to add paragraph (1) listing 
personnel assisting and supporting individuals with disabilities 
pursuing self-employment, business ownership,

[[Page 21003]]

and telecommuting. In paragraph (3) of proposed Sec.  386.1(b), we 
would combine paragraphs (2) and (30) in current Sec.  386.1(b) into 
one item on rehabilitation technology. In paragraph (14) of proposed 
Sec.  386.1(b), we would combine paragraphs (13) and (29) in current 
Sec.  386.1(b) into one item on therapeutic recreation. In paragraph 
(17) of current Sec.  386.1(b), we would clarify the meaning of the 
specialty of ``rehabilitation of individuals who are blind or visually 
impaired'' by providing two examples of the types of personnel in this 
specialty area. Finally, in paragraph (28) of proposed Sec.  386.1(b), 
we would include customized employment in addition to supported 
employment.
    Reasons: We are proposing these changes in Sec.  386.1(b) to better 
align the regulations with the Act and to clarify language in current 
regulations.

Section 386.4 (Definitions)

    Statute: None.
    Current Regulations: Current Sec.  386.4(b) defines terms that 
apply to the Rehabilitation Long-Term Training Program.
    Proposed Regulations: We proposed to clarify two terms appearing in 
the list in current Sec.  386.4(b), Other definitions. First, we would 
clarify that a ``scholarship'' may cover the costs of books and 
supplies, in addition to student stipends, tuition and fees, and 
student travel in conjunction with training assignments. We would also 
clarify that the ``State vocational rehabilitation agency'' is the same 
as the designated State agency referenced in current Sec.  
361.5(b)(13).
    Reasons: With regard to the definition of ``scholarship,'' our 
policy has been to consider ``books and supplies'' as allowable 
expenses to be covered with scholarship funds under this program; we 
are simply incorporating this policy into the regulations. The proposed 
changes to the definition of ``State vocational rehabilitation agency'' 
would clarify the meaning of the current definition.

Section 386.21 (Applications)

    Statute: Section 302(b)(2) of the Act describes application 
requirements for grantees receiving support under the Rehabilitation 
Training program.
    Current Regulations: These application requirements are not 
contained in current regulations.
    Proposed Regulations: We propose to incorporate the application 
requirements in section 302(b)(2) into a new Sec.  386.21.
    Reasons: Including these application requirements in the 
regulations will help to make grantees aware of the statutory 
requirement.

Section 386.30 (Matching requirements)

    Statute: Section 302(a)(1) states that grants under this program 
pay part of the costs of the projects.
    Current Regulations: Current Sec.  386.30 states that the Federal 
share cannot be greater than 90 percent of the total project cost.
    Proposed Regulations: Current Sec.  386.30 has been reworded to 
state that the grantee is required to contribute at least ten percent 
of the total cost of the project.
    Reasons: Although having the same meaning, the proposed language 
more clearly states the requirement in terms of the amount of the cost 
the grantee must cover. We believe this affirmative language would lead 
to less confusion and greater compliance with the match requirement.

Section 386.31 (Funding Requirements)

    Statute: None.
    Current Regulations: In Sec.  386.31(a), grantees are required to 
expend 75 percent of their award on financial assistance to scholars.
    Proposed Regulations: We would reduce this 75 percent requirement 
and are instead proposing in Sec.  386.31(a) that a minimum of 65 
percent of the total project cost (including both the Federal grant and 
the cost share) must be expended on financial assistance for scholars. 
In addition, in Sec.  386.31(c), we are proposing a new provision to 
clarify that scholars may not receive concurrent scholarships from more 
than one project under this program.
    Reasons: Many grantees have had problems meeting the current 
regulatory provision in Sec.  386.31(a). Specifically, we have found 
that requiring grantees to dedicate 75 percent of their Federal award 
and their non-Federal share to scholarships leaves very little 
flexibility in their budgets and makes administering these grants 
problematic. Therefore, we are proposing to reduce the percentage that 
the grantee is required to expend on financial assistance for scholars. 
This proposed change is also consistent with the threshold used by the 
Office of Special Education Programs in their personnel preparation 
grants under the Individuals with Disabilities Education Act (IDEA).
    The additional provision in proposed Sec.  386.31(c) is necessary 
because some grantees have funded scholars from multiple grants under 
this program. While it can be difficult to ensure that scholarships are 
not duplicative, we are also concerned that scholars who receive 
simultaneous scholarships under multiple grants under this program 
would be responsible for service obligations for each scholarship 
received, which could, at a minimum, double the scholar's service 
obligation. This proposed provision would make the grantee's reporting 
on scholars clear and would also avoid confusion on the part of the 
scholar regarding the service obligation.

Section 386.32 (Allowable Costs)

    Statute: Section 302(b)(4) allows grants to provide scholarships 
and necessary stipends and allowances.
    Current Regulations: In addition to allowable costs described in 
the statute as well as in the Education Department General 
Administrative Regulations, other allowable costs under the 
Rehabilitation Long-Term Training Program are described in Sec.  
386.32. In current regulations, these costs include student stipends, 
tuition and fees, and student travel in conjunction with training 
assignments.
    Proposed Regulations: We have clarified that allowable costs, which 
grantees may cover as part of the financial assistance they provide to 
scholars, may include the costs of books and supplies.
    Reasons: Our policy has been to consider ``books and supplies'' as 
allowable expenses to be covered with scholarship funds under this 
program; we are simply proposing to incorporate this policy into the 
regulations.

Section 386.33 (Disbursing Scholarships)

    Statute: None.
    Current Regulations: Current Sec.  386.33 allows permanent 
residents of the Republic of the Marshall Islands, the Federated States 
of Micronesia, the Republic of Palau, and the Commonwealth of the 
Northern Mariana Islands to be eligible for scholarships.
    Proposed Regulations: In Sec.  386.33(a)(1)(ii), we have deleted 
references to the Republic of the Marshall Islands, Federated States of 
Micronesia, and Republic of Palau (referred to as the Freely Associated 
States (FAS)) as areas from which permanent residents can qualify for 
scholarships. We have also added Puerto Rico, the United States Virgin 
Islands, Guam, and American Samoa as areas from which permanent 
residents can qualify for scholarships.
    Reasons: Because only States are eligible to receive grants under 
title I of the Act, the FAS are no longer eligible to receive title I 
grants to carry out Rehabilitation Act programs within their 
jurisdictions. Additionally, section 302(b)(2) of the Act requires each

[[Page 21004]]

applicant for a long-term training grant to include a description how 
the State rehabilitation agency designated under title I will 
participate in the project and to identify potential employers that 
would satisfy the service obligation requirements for scholars. 
According to Sec.  386.40(a)(6), these employers must be the State 
rehabilitation agency or have an arrangement with that agency to 
provide rehabilitation services. Given that the FAS are no longer 
eligible to receive grants to carry out programs under title I of the 
Act, there are no State agencies designated under title I or other 
potential employers for the service obligation available in the FAS. 
Thus, there is no authority in the Act to allow permanent residents of 
the FAS to continue to be eligible for scholarships. FAS permanent 
residents, however, would still be eligible for scholarships, in the 
same manner as citizens or permanent residents of any other country, as 
long as they demonstrate that they are eligible under the remaining 
provisions in Sec.  386.33(a), i.e. being a lawful permanent resident 
of the United States or being in the United States with the intention 
of becoming a citizen or permanent resident.
    We also amend this section to include Puerto Rico, the United 
States Virgin Islands, Guam, and American Samoa as areas from which 
permanent residents may be identified as eligible for scholarships. 
These areas are considered ``States'' as that term is defined in 
section 7 of the Act and, as a result, are eligible to receive grant 
funds under the title I of the Act to carry out vocational 
rehabilitation and other programs authorized by the Act.
    Statute: None.
    Proposed Regulations: We propose to renumber and reorganize current 
Sec.  386.33. Also, in proposed Sec.  386.33(c), we would clarify that 
the grantee must document that the scholar will seek employment in the 
field of study in which the scholar was provided training or employment 
where it can be demonstrated that the field of study is directly 
relevant to the job functions being performed.
    Reasons: The proposed requirements that employment must be in the 
field of study in which the training was received and where the job 
functions must be directly relevant to the field of study in which the 
training was received merely reflect current policy. We believe it is 
advisable to clarify this practice through regulations to ensure a 
consistent approach among all grantees as they inform scholars about 
the requirements to carry out the service obligation for the financial 
assistance they receive. Without these requirements, it is not clear 
whether scholars may obtain employment that does not directly use the 
skills they learned while pursuing a degree or certificate under the 
Rehabilitation Long-Term Training Program.

Section 386.34 (Assurances)

    Statute: Section 302(b)(5) of the Act requires that grantees assure 
that each scholar will enter into an agreement with the grantee to 
perform the service obligation or repay the costs of the scholarship.
    Current Regulations: Current Sec.  386.34 lists the assurances that 
a grantee wishing to provide scholarships must provide.
    Proposed Regulations: We are proposing the following:
    <bullet> In Sec.  386.34(a) that, for each year after the initial 
payback agreement has been signed, the grantee and scholar must have a 
signed executed agreement containing the terms and conditions outlined 
in the section.
    <bullet> In Sec.  386.34(c) that the scholar be informed annually 
of the total indebtedness.
    <bullet> In Sec.  386.34(c) incorporating by reference the 
provisions of current Sec.  386.40 rather than repeating them here as 
in the current regulations.
    <bullet> In Sec.  386.34(f) clarifying that the grantee must 
provide the scholar with certain information related to the scholar's 
payback obligation upon the scholar's exiting the program and the 
scholar must then sign a certificate acknowledging the receipt of such 
information.
    <bullet> In Sec.  386.34(g)(1) that the grantee obtain the name of 
the scholar's supervisor, the duties the scholar will perform, and 
whether the position is full- or part-time.
    <bullet> In Sec.  386.34(j) that records be maintained not less 
than one year beyond the date that all scholars provided financial 
assistance under the grant have completed their service obligation or 
otherwise entered into repayment status.
    Reasons: We are proposing these revisions for the following 
reasons:
    <bullet> Proposed Sec.  386.34(a) and (c) would bring this 
information to the forefront for scholars. Requiring that such 
information be provided only once, at the beginning of the scholarship 
support, has resulted in misunderstandings and disagreements about the 
nature of the obligations.
    <bullet> Proposed Sec.  386.34(c) would be streamlined rather than 
repeating provisions in Sec.  386.40 for the sake of efficiency.
    <bullet> Proposed Sec.  386.34(f) would be more specific about the 
need for grantees to provide scholars with certain information upon 
their exit from the program and would emphasize the need for grantees 
to ask scholars to sign the certification acknowledging receipt of the 
information. We believe that the more that can be done to help scholars 
understand their obligations, the fewer instances of misunderstanding 
will occur and the more likely it will be that scholars will complete 
their service obligations.
    <bullet> Proposed Sec.  386.34(g)(1) would assist the grantee in 
determining whether or not a scholar's employment qualifies to repay 
the scholarship.
    <bullet> Proposed Sec.  386.34(i) would ensure that the Department 
has sufficient information to properly monitor and administer the grant 
as contemplated by 34 CFR 75.730-75.732, and it would ensure that 
sufficient time would be available to resolve any disputes about 
whether a scholar's service obligation has been met or whether 
repayment must be initiated.

Section 386.36 (Incomplete or Inaccurate Information)

    Statute: None.
    Current Regulations: The current regulations do not plainly 
describe the grantee's liability for failing to provide accurate and 
complete scholar information to the Department.
    Proposed Regulations: We propose to add a new paragraph in Sec.  
386.36 describing the consequences for a grantee that has failed to 
request or maintain the documentation required in current Sec.  386.34 
for a scholar who does not meet the service obligation. Specifically, 
the Department would be able to recover, in whole or in part, from the 
grantee the debt amount and any collection costs described in current 
Sec. Sec.  386.40 and 386.43, if the Department: (a) Is unable to 
collect, or improperly collected, some or all of these amounts or costs 
from a scholar, and (b) determines that the grantee failed to provide 
to the Department accurate and complete documentation described in 
current Sec. Sec.  386.34 and 386.40.
    Reasons: We propose to add this section to clarify the grantee's 
responsibilities to report complete and accurate information on 
scholars and their payback obligations and to clarify the consequences 
associated with noncompliance. The authority of the Department to 
recover collection costs is new and may be necessary to fully reimburse 
a scholar who is eligible for a refund for any debt that has already 
been referred to the U.S. Treasury for collection. While the Department 
has always had the authority in EDGAR to recover the debt amount, we 
propose

[[Page 21005]]

this language to ensure that grantees are more aware of this authority.

Section 386.40 (Requirements for Scholars)

    Statute: Section 302(b)(5) of the Act requires a scholar to perform 
a service obligation or repay the cost of the scholarship.
    Current Regulations: Current Sec.  386.40 outlines the requirements 
for scholars, although some of the payback requirements are described 
in current Sec.  386.34(c).
    Proposed Regulations: We have proposed to add the following:
    <bullet> Sec.  386.40(a)(6) describing the payback obligations in 
current Sec.  386.34(c) and clarifying that the service obligation must 
be in the field of study the scholar pursued or where the field of 
study is directly relevant to the job functions performed.
    <bullet> Sec.  386.40(b)(1) allowing scholars who are in multi-year 
programs of study and who are currently employed or are seeking 
employment to start satisfying the service obligation after completion 
of at least one year of study. This provision would also prohibit 
scholars who do not complete the program of study from performing the 
service obligation, except for scholars who complete at least one year 
of a multi-year program. We request specific comments on this proposal.
    <bullet> Sec.  386.40(b)(2) making it clear that an internship, 
practicum, or any other work-related requirement necessary to complete 
the educational program would not be considered qualifying employment.
    <bullet> Sec.  386.40(c) clarifying that, if the scholar is 
pursuing coursework on a part-time basis, the service obligation for 
these part-time courses would be based on the full-time equivalent 
total of actual academic years of training received.
    <bullet> Sec.  386.40(a)(9) requiring the scholar to provide all 
information necessary to monitor the service obligation.
    <bullet> Sec.  386.40(d) making a scholar in repayment status 
responsible for any costs assessed in the collection process if the 
scholar does not provide information on his or her employment status or 
if the scholar fails to provide other information that the grantee 
requests, even if the information is subsequently provided.
    Reasons: We are proposing these revisions for the following 
reasons:
    <bullet> Proposed Sec.  386.40(a)(6)(i) would reflect current 
policy. We believe it is advisable to clarify this practice through 
regulations to assure a consistent approach among all grantees as they 
inform scholars about the requirements to repay the financial 
assistance they receive.
    <bullet> Proposed Sec.  386.40(b)(1) would implement RSA's policy 
that, for multi-year courses of study, scholars who have completed at 
least one year are likely to have made substantial gains in their 
knowledge and skills such that they would be able to provide improved 
vocational rehabilitation services. RSA believes that these scholars 
should be given the opportunity to start satisfying the service 
obligation even before they have completed the program of study. Except 
for scholars who complete at least one year of a multi-year program, 
this provision would also prohibit all scholars who do not complete the 
program of study from being eligible to perform the service obligation. 
These scholars would be responsible for repayment of the scholarship 
under Sec.  386.43. This provision reflects the longstanding policy of 
the Office of Special Education Programs in its personnel preparation 
program.
    <bullet> Proposed Sec.  386.40(b)(2) would clearly make ineligible 
for the service obligation any employment required in order to complete 
the course of study.
    <bullet> Proposed Sec.  386.40(c) would ensure consistency among 
all grantees. We believe this is a fair interpretation of the payback 
requirement, which states that a scholar must repay two years of 
service for every one year of financial assistance received. This would 
clarify, for example, that a half-time scholar, who may require four 
years rather than the traditional two years to complete a master's 
degree program, would not have to complete eight years of service for 
the same program that a full-time scholar would only have to complete 
four years of service. This accommodation is appropriate, particularly 
in light of the fact that many more scholars are part-time, and they 
are often non-traditional students who have been in the workforce for a 
number of years and cannot afford to drop out of employment to pursue 
full-time study.
    <bullet> Proposed Sec. Sec.  386.40(a)(9) and 386.40(d) would 
require scholars to remain in contact with the grantee and to provide 
the necessary information about their repayment status. It is our hope 
that having such requirements in regulations would reinforce the 
importance of these scholar responsibilities. In particular, we are 
concerned that a scholar may be placed in repayment status only because 
the scholar failed to provide complete and accurate information. If 
accurate information is later submitted that allows the scholar to 
receive a refund of debt payments made, that scholar potentially would 
not receive a full refund if collection costs have been incurred by the 
Federal government. Making scholars who receive a refund aware that 
collection costs could be their responsibility would help achieve 
better compliance by scholars in providing complete and accurate 
information.

Section 386.41 (Granting Deferrals and Exceptions)

    Statute: Section 302(b)(5)(A)(ii) of the Act states that RSA may by 
regulation provide for repayment exceptions and deferrals.
    Current Regulations: In current Sec.  386.41, the provisions for 
obtaining an exception or deferral of the payback obligation are 
described.
    Proposed Regulations: In proposed Sec.  386.41(a), we clarify the 
basis for an exception based on disability. The scholar would have to 
have a disability that either (1) was not diagnosed at the time the 
scholar entered the program, or (2) has worsened since the scholar 
entered the program.
    We are also proposing some changes to current Sec.  386.41(b), 
which are the provisions applying to deferrals to the service 
obligation. In proposed Sec.  386.41(b)(1), we would restrict a 
deferral for a scholar engaging in a full-time course of study at an 
institution of higher education to scholars who are pursuing degrees or 
certificates in the field of rehabilitation. In proposed Sec.  
386.41(b)(2), we would allow for a deferral of up to four years for a 
scholar who is on active duty with the Armed Forces rather than the 
three years in the current regulations. We also propose to add a new 
Sec.  386.41(c) to address exceptional circumstances when a deferral 
might reasonably be granted. We give as examples the care of a disabled 
spouse, partner, or child or the circumstance when a scholar would have 
to accompany a spouse or partner who is on active duty in the Armed 
Forces.
    Reasons: We do not believe exceptions should be granted simply 
because scholars have a disability. When individuals with a disability 
enter a program of study, there needs to be an expectation on their 
part that they will complete the service obligation. Therefore, 
granting an exception purely on the basis of an existing disability 
would not be warranted. However, if scholars are diagnosed with a 
disability after enrolling in the program or if a disability worsens, 
then an exception on the basis of these circumstances might be 
warranted.
    With regard to the reasons for deferral, we believe restricting a 
deferral

[[Page 21006]]

on the basis of full-time study in the field of rehabilitation is more 
appropriate than the current basis for a deferral, which is that the 
scholar is pursuing full-time study at an institution of higher 
education. If the scholar is pursuing a course of study unrelated to 
rehabilitation, it is less likely that he or she will then seek 
qualifying employment in the field of rehabilitation; therefore, it 
would make more sense for the scholar to begin the financial repayment 
process. Increasing the possible deferral period for a scholar who is 
on active duty from three to four years, as we propose in Sec.  
386.41(b)(2), seems reasonable for a scholar who has two two-year tours 
of duty. We also recognize that we cannot anticipate all of the 
exceptional circumstances that may warrant a deferral. Therefore, in 
Sec.  386.41(c), we have added a broader authority to grant deferrals 
and we propose a few examples of circumstances that might warrant such 
a deferral. These are illustrative and are not meant to be all-
inclusive. Each request for a deferral will be considered on a case-by-
case basis.

Section 386.42 (Applying for Deferrals and Exceptions)

    Statute: None.
    Current Regulations: Current Sec.  386.42 describes the 
documentation that a scholar must provide to substantiate a deferral or 
exception.
    Proposed Regulations: In Sec.  386.42(b)(1) and (3), we are 
proposing more specific requirements for the documentation to 
substantiate a deferral or an exception based on disability. This 
documentation would apply to a scholar who has a permanent or temporary 
disability or to the disability of a spouse, partner, or child for whom 
the scholar is providing care, which would require the scholar to seek 
a deferral. In all of these cases, the scholar would have to provide a 
letter from a physician or other medical professional on official 
stationery that describes the diagnosis and prognosis for the 
disability and, in the case of a request for an exception, explains 
that the scholar cannot work with accommodations. The documentation 
would have to be less than three months old.
    Reasons: It is important that any deferral or exception be 
carefully documented so that the Department's decisions regarding these 
matters are well-founded. We have encountered numerous instances in 
which the documentation provided by scholars was ambiguous or 
insufficient. To that end, we propose to include greater specificity, 
particularly around a deferral or exception based on a disability.

Innovative Rehabilitation Training Program, 34 CFR Part 387

Background

    This program is designed to develop new and improved methods of 
training for rehabilitation personnel so that State vocational 
rehabilitation agencies may more effectively deliver rehabilitation 
services. The Department last published regulations for this program, 
codified in part 387, on March 6, 1997 (62 FR 10398).

Summary of Proposed Changes

    We are proposing a new name for this program--Innovative 
Rehabilitation Training--that better describes the nature of activities 
to be funded under this authority.
    We are proposing changes to incorporate new statutory language in 
sections 301 and 302 of WIOA and to better describe the broad authority 
available to the Department in these regulations.
    We propose to clarify that the Secretary may award grants to 
develop new and improved methods of training not only for the 
rehabilitation personnel of State vocational rehabilitation agencies 
but also for rehabilitation personnel of other public or non-profit 
rehabilitation service agencies or organizations.
    Finally, we propose to address new statutory language in section 
101(a)(7) of the Act related to rehabilitation personnel having a 21st 
century understanding of the evolving labor force and the needs of 
individuals with disabilities so they can more effectively provide 
vocational rehabilitation services to individuals with disabilities.

Significant Proposed Regulations

    We organize our discussion by subject.
    Title
    Statute: None.
    Current Regulations: The current part 387 is called ``Experimental 
and Innovative Training.''
    Proposed Regulations: We propose to change the name of the part to 
``Innovative Rehabilitation Training.''
    Reason: The new title would better describe the activities funded 
under this program.

Training for Personnel of Public or Non-Profit Rehabilitation Service 
Agencies or Organizations

    Statute: Section 302 of the Act authorizes the Commissioner to 
provide grants and contracts to assist in training rehabilitation 
personnel who provide vocational, medical, social, and psychological 
rehabilitation services, and who provide other services to individuals 
with disabilities under the Act.
    Current Regulations: The current Sec.  387.1(b) states that this 
program is designed to develop new and improved methods of training for 
rehabilitation personnel so that State vocational rehabilitation 
agencies may more effectively deliver rehabilitation services. Current 
regulations do not address whether personnel from other public or non-
profit rehabilitation service agencies or organizations may also 
receive the training.
    Proposed Regulations: We propose to amend Sec.  387.1(b) to include 
personnel of other public or non-profit rehabilitation service agencies 
or organizations as recipients of the training.
    Reasons: The change is necessary for the regulation to be 
consistent with the statute, which authorizes the development of new 
and improved methods of training for rehabilitation personnel including 
personnel from State vocational rehabilitation agencies as well as from 
other public or non-profit rehabilitation service agencies or 
organizations.

21st Century Understanding

    Statute: Section 101(a)(7) of the Act, as amended by WIOA, requires 
that the State vocational rehabilitation agencies ensure that their 
personnel have a 21st century understanding of the evolving labor force 
and the needs of individuals with disabilities.
    Current Regulations: Although the current Sec.  387.1 states that 
this program is designed to develop new types of training programs and 
new and improved methods of training for State rehabilitation agencies, 
it does not specifically address these new statutory requirements.
    Proposed Regulations: We propose to amend Sec.  387.1 to state that 
the program is designed to develop new innovative training programs for 
vocational rehabilitation professionals and paraprofessionals to have a 
21st century understanding of the evolving labor force and the needs of 
individuals with disabilities so they can more effectively provide 
vocational rehabilitation services to individuals with disabilities.
    Reasons: The proposed change would align innovative rehabilitation 
training projects awarded under 34 CFR part 387 with the needs of the 
field as described in WIOA. We anticipate that this change will have a 
positive effect on the Comprehensive System of Personnel

[[Page 21007]]

Development among State vocational rehabilitation agencies.

Rehabilitation Short-Term Training Program, 34 CFR Part 390

Background

    This program is designed for the support of special seminars, 
institutes, workshops, and other short-term courses in technical 
matters relating to the vocational, medical, social, and psychological 
rehabilitation programs, independent living services programs, and 
client assistance programs. The Department last published regulations 
for this program on March 6, 1997 (62 FR 10398).

Summary of Proposed Changes

    We are proposing to add an additional selection criterion for grant 
competitions under this program-- evidence of training needs as 
identified through training needs assessment.

Significant Proposed Regulations

    Statute: Section 302(b) authorizes the Commissioner to provide 
grants and contracts to eligible entities to train rehabilitation 
personnel who provide rehabilitation services to individuals with 
disabilities. Section 12(a)(2) specifically authorizes the Commissioner 
to provide short-term training and technical instructions to 
rehabilitation personnel. Section 12(c) authorizes the Secretary to 
promulgate such regulations as are considered appropriate to carry out 
the Commissioner's duties under the Act.
    Current Regulations: Current Sec.  390.30(b) sets out selection 
criteria that may be used by the Secretary to evaluate application but 
it does not specifically state that the Secretary will review each 
application for evidence of the training needs of rehabilitation 
personnel.
    Proposed Regulations: We propose to add a new paragraph (b) to 
current Sec.  390.30 to state that the Secretary would review each 
application for evidence of training needs as identified through 
training needs assessment conducted by the applicant, designated State 
agencies, designated State units, or any other public or private 
nonprofit rehabilitation service agencies or organizations that provide 
rehabilitation services and other services authorized under the Act and 
whose personnel will receive the training.
    Reasons: The proposed change is necessary to ensure that the 
proposed short-term training projects address the training needs of the 
rehabilitation personnel of designated State agencies or designated 
State units or any other public and private nonprofit rehabilitation 
service agencies or organizations whose personnel will receive the 
training. This proposed criterion would expand and improve the 
Rehabilitation Short-Term Training program and further the purpose of 
the Act.

Training of Interpreters for Individuals Who Are Deaf or Hard of 
Hearing and Individuals Who are Deaf-Blind, 34 CFR Part 396

Background

    This program is designed to establish interpreter training programs 
or to provide financial assistance for ongoing interpreter programs to 
train a sufficient number of qualified interpreters to meet the 
communication needs of individuals who are deaf or hard of hearing and 
individuals who are deaf-blind. The Department last published 
regulations for this program on March 6, 1997 (62 FR 10398).

Summary of Proposed Changes

    We are proposing changes to conform to section 302 of the Act, 
which adds individuals who are hard of hearing to the individuals 
served by this program. We are also proposing changes to ensure that 
the program accurately reflects the training needs of qualified 
interpreters in order to effectively meet the communication needs of 
individuals who are deaf or hard of hearing and individuals who are 
deaf-blind.
    We propose to amend the definition of a qualified professional in 
order to ensure that the highest level of competency is incorporated 
into the training of interpreters.
    We propose to add selection criteria for the program to encourage 
evidence-based and promising practices.
    We propose to add priorities for increasing the skill level of 
interpreters in unserved or underserved geographic areas, existing 
programs that have demonstrated their ability to raise the skill level 
of interpreters to meet the highest standards approved by certifying 
associations, and specialized topical training.

Significant Proposed Regulations

    We organize our discussion by subject and section.

Changes That Affect Part 396 in Its Entirety

Hard of Hearing

    Statute: Section 302(f) of the Act authorizes the training of 
qualified interpreters to meet the needs of individuals who are deaf or 
hard of hearing and individuals who are deaf-blind.
    Current Regulations: 34 CFR part 396 does not address the training 
of interpreters for individuals who are hard of hearing.
    Proposed Regulations: We propose to address the training of 
interpreters for individuals who are hard of hearing, as relevant, 
throughout part 396.
    Reasons: This would conform part 396 to the Act.

Skilled Interpreters

    Statute: Section 302(f) of the Act uses the term ``qualified 
interpreters.''
    Current Regulations: 34 CFR part 396 uses the term ``skilled 
interpreters.''
    Proposed Regulations: Proposed Sec.  396.1 would replace the term 
``skilled interpreters'' with the term ``qualified interpreters.''
    Reasons: Although this change in terminology from ``skilled 
interpreters'' to ``qualified interpreters'' does not convey a 
substantive change in meaning, this change would conform 34 CFR part 
396 to section 302(f) of the Act.

An Individual Who Is Deaf or Hard of Hearing

    Statute: Section 302(f) of the Act authorizes training of qualified 
interpreters to meet the communications needs of individuals who are 
deaf or hard of hearing, and individuals who are deaf-blind.
    Current Regulations: 34 CFR part 396 does not contain a definition 
for an ``individual who is hard of hearing.''
    Proposed Regulations: We propose to add the following definition in 
Sec.  396.4(c): ``an individual who has a hearing impairment such that, 
in order to facilitate communication, the individual depends upon 
visual modes, such as sign language, speech reading, and gestures, or 
reading and writing, in addition to any other auditory information.''
    Reasons: This program is to serve individuals who are hard of 
hearing in addition to individuals who are deaf and individuals who are 
deaf-blind. We believe it is important to propose a definition of 
``individual who is hard of hearing'' to clarify for grantees what 
population is meant by this term. We used the definition of 
``individual who is deaf'' as a starting point and made some 
modifications to this definition as appropriate. We emphasized the 
communication needs of this population, as this program is specifically 
meant to address the communication needs of individuals who are deaf, 
hard of hearing, or deaf-blind. We particularly encourage the

[[Page 21008]]

public to comment on the appropriateness of this definition in the 
context of this program.

Other Definitions

    Statute: None.
    Current Regulations: Current Sec.  396.4(c) defines the term 
``Existing program that has demonstrated its capacity for providing 
interpreter training service.''
    Proposed Regulations: We propose to expand this definition to 
include evidence-based practices in the training of interpreters and 
promising practices when evidence-based practices are not available.
    Reasons: The Department believes that providing further context for 
the expectations regarding the curricula of interpreter training 
programs will provide greater guidance to grantees and the public. We 
also recognize that there are a number of promising practices 
available, several of which were developed through grants funded by 
this program and therefore should be utilized when evidence-based 
practices are not available.
    Statute: None.
    Current Regulations: Current Sec.  396.4(c) defines the term 
``Qualified professional''.
    Proposed Regulations: We propose to amend the definition consistent 
with the final priority published in the Federal Register on September 
1, 1999 (64 FR 48068) as follows: ``to mean an individual who has (1) 
met existing certification or evaluation requirements equivalent to the 
highest standards approved by certifying associations; or (2) 
successfully demonstrated interpreting skills that reflect the highest 
standards approved by certifying associations through prior work 
experience.''
    Reasons: We want to ensure that the highest level of competency is 
incorporated into the training of interpreters in interpreter training 
programs funded by RSA. Since 2000, the Department has funded national 
and regional interpreter education centers that train qualified 
interpreters to meet the competencies equivalent to the highest 
standards approved by certifying associations. Thus, this standard has 
been in effect for 15 years, and we propose to change the definition to 
reflect this reality.
    Statute: None.
    Current Regulations: Current Sec.  396.4(c) does not contain a 
definition for the term ``related agency.''
    Proposed Regulations: We propose to add the definition of ``related 
agency'' from Sec.  386.4. That section defines the term as an American 
Indian rehabilitation program or any Federal, State, or local agency; 
non-profit organization; or professional corporation or practice group 
that provides services to individuals with disabilities on behalf of a 
designated State agency.
    Reasons: This is the current definition used in part 386 and would 
clarify what the Department means when it refers to the term ``related 
agency.'' Adopting this definition of ``related agency'' would assure 
consistency between the Rehabilitation Long-Term Training Program and 
the program for Training of Interpreters for Individuals Who Are Deaf 
or Hard of Hearing and Individuals Who Are Deaf-Blind.

Subpart A--General Sec.  396.1

    Statute: None.
    Current Regulations: Current Sec.  396.1(a) states that grantees 
will receive grant funds, in part, to train manual, tactile, oral, and 
cued speech interpreters.
    Proposed Regulations: We propose to expand this description to read 
``training interpreters to effectively interpret and transliterate 
between spoken language and sign language, and to transliterate between 
spoken language and oral or tactile modes of communication.''
    Reasons: This would clarify the type of training offered by this 
program and ensure the training of interpreters accurately reflects the 
needs of individuals who are deaf or hard of hearing and individuals 
who are deaf-blind.

Selection Criteria, Sec.  396.31

    Statute: None.
    Current Regulations: Current Sec.  396.31(a) provides additional 
selection criteria to evaluate an application based upon demonstrated 
relationships with service providers and consumers.
    Proposed Regulations: We propose to amend this section to refer to 
an additional factor: The curriculum for the training of interpreters 
includes evidence-based practices, and promising practices when 
evidence-based practices are not available.
    Reasons: The new factor would ensure consistency with the changes 
to definitions we have proposed in Sec.  396.4(c)(2) to encourage and 
support the use of evidence-based and promising practices.
    Statute: None.
    Current Regulations: Current Sec.  396.31 discusses additional 
selection criteria the Secretary uses to evaluate an application. 
Current Sec.  396.31(a) provides a selection criterion for demonstrated 
relationships with service providers and consumers.
    Proposed Regulations: We propose to amend Sec.  396.31(a) to cover 
demonstrated relationships with State Vocational Rehabilitation 
agencies and their related agencies and consumers.
    Reasons: This would clarify the goal and expectation of the 
program, which is to meet the needs of deaf consumers of the State 
Vocational Rehabilitation agency and their related agencies.

Priorities, Sec.  396.33

    Statute: Section 302(f) of the Act requires the Department, in 
making awards under this part, to give priority to public or private 
nonprofit agencies or organizations with existing programs that have 
demonstrated their capacity for providing interpreter training 
services.
    Current Regulations: Current Sec.  396.33(a) contains the statutory 
priority in section 302(f).
    Proposed Regulations: We propose adding Sec.  396.33(b), which 
would allow the Secretary to give priority consideration when 
announcing competitions for awards in the following three areas: (1) 
Increasing the skill level of interpreters for individuals who are deaf 
or hard of hearing and individuals who are deaf-blind in unserved or 
underserved geographic areas; (2) Existing programs that have 
demonstrated their capacity for providing interpreter training services 
that raise the skill level of interpreters in order to meet the highest 
standards approved by certifying associations; and (3) Specialized 
topical training based on the communication needs of individuals who 
are deaf or hard of hearing and individuals who are deaf-blind.
    Reasons: These priorities reflect the types of projects that the 
Department intends to focus on in the future, and we propose them here 
for future use.

Matching Requirements, Sec.  396.34

    Statute: Section 302(f) of the Act requires the Department to pay 
only part of the costs for projects under this program.
    Current Regulations: Part 396 does not contain a match requirement.
    Proposed Regulations: We propose to add a new Sec.  396.34 that 
would include a requirement that a grantee must contribute to the cost 
of a project under this program in an amount satisfactory to the 
Secretary. The part of the costs to be borne by the grantee would be 
determined by the Secretary at the time of the grant award.
    Reasons: This would conform part 396 to the statutory provision 
that this program have a matching requirement.

[[Page 21009]]

Proposed Changes, Regulations To Be Removed

    We next discuss those regulations that we propose to remove. We 
discuss first the regulations for programs WIOA deauthorized, then 
regulations that are superseded or unnecessary.

Removal of Regulations Required by WIOA

    Statute: WIOA eliminated the following programs: The Projects with 
Industry program (title VI, part A of WIOA), The State Vocational 
Rehabilitation Unit In-Service Training program (section 441(b) of 
WIOA), the Migrants and Seasonal Farmworkers program, (section 441(a) 
of WIOA) and the Recreation Programs for Individuals with Disabilities 
program (section 441(a) of WIOA).
    Current Regulations: The regulations governing the Projects with 
Industry program are found at part 379. The regulations governing the 
State Vocational Rehabilitation Unit In-Service Training program are 
found at part 388. The regulations governing the Migrants and Seasonal 
Farmworkers program are found at Sec.  369.1(b)(3) and Sec.  369.2(c). 
The regulations governing the Recreation Programs for Individuals with 
Disabilities program are found at Sec.  369.1(b)(5) and Sec.  369.2(d).
    Proposed Regulations: We propose to remove parts 379, 388, and 369.
    Reasons: The removal of the regulations at parts 379, 388, and 369 
is required by the Act as amended by WIOA. We propose to delay the 
effective date for the removal of parts 388 and 369 so that the 
Department can complete administration of the last grants under these 
programs.

The Balance of Part 369

    Statute: None.
    Current Regulations: All of part 369 other than Sec. Sec.  
369.1(b)(3), (5), and (6), 369.2(c), (d), and (e).
    Proposed regulations: The Secretary proposes to remove the balance 
of part 369.
    Reasons: Beyond the Migrants and Seasonal Farmworkers Program, 
Recreation Programs for Individuals with Disabilities, and the Projects 
With Industry Program, part 369 implements three other kinds of 
vocational rehabilitation (VR) service projects: VR service projects 
for American Indians with disabilities, special projects and 
demonstrations for providing VR services to individuals with 
disabilities, and special projects and demonstrations for providing 
transitional rehabilitation services to youth with disabilities.
    We propose to incorporate into part 371 those regulations in part 
369 that apply to the American Indian Vocational Rehabilitation 
Services program, under which the governing bodies of Indian tribes, 
and consortia of those governing bodies, provide VR services for 
American Indians with disabilities. Keeping these regulations in part 
369 is unnecessarily duplicative.
    As for the special projects for VR services and transition 
services, the Department has not used the regulations in part 369 for 
these projects in some time. The regulations were superseded by the 
more specific regulations in part 373, which the Department adopted on 
December 11, 2000, after the 1998 amendments to the Act.
    However, we also propose to make this removal effective on 
September 30, 2016, the last day of fiscal year (FY) 2016, when the 
Department's administration of the last grants under the Migrants and 
Seasonal Farmworkers Program will be complete.

Removal of Regulations Not Required by WIOA

    Statute: None.
    Current Regulations: 34 CFR part 376 governs the Special Projects 
and Demonstrations for Providing Transitional Rehabilitation Services 
to Youth with Disabilities program. 34 CFR part 377 governs the 
Demonstration Projects to Increase Client Choice program.
    Proposed Regulations: The Secretary proposes to remove parts 376 
and 377.
    Reasons: Parts 376 and 377 are outdated. The Department has not 
used these parts for more than 15 years. They have been superseded by 
the more specific regulations in part 373, which the Department adopted 
on December 11, 2000, after the 1998 amendments to the Act.

Rehabilitation Continuing Education Programs, 34 CFR Part 389

    Statute: None.
    Current Regulations: 34 CFR part 389 govern the Rehabilitation 
Continuing Education programs.
    Proposed Regulations: The Secretary proposes to remove part 389.
    Reasons: Part 389 is duplicative and outdated. The Department 
adopted this short part on December 30, 1980 (45 FR 86385) and amended 
it on September 23, 1985 (50 FR 38631), May 13, 1988 (53 FR 17147), and 
March 6, 1997 (62 FR 10405). As drafted, part 389 is very prescriptive. 
It allows the Department only to create and support regional training 
centers to provide continuing education and technical assistance to 
currently employed VR professionals throughout the country.
    Over time, however, the RSA's focus has shifted away from providing 
continuing education to concentrating on technical assistance and 
training. In January 2014, for example, President Obama issued a 
memorandum to the Secretaries of Labor, Commerce, and Education 
directing them to take action to address job-driven training for the 
nation's workers.
    The memorandum instructed the Secretaries to make Federal workforce 
and training programs and policies more focused on imparting skills 
with job-market value, more easily accessed by employers and job 
seekers, and more accountable for producing positive employment and 
earnings outcomes for the people they serve. The memorandum also set 
out training principles for the Departments to follow and incorporate, 
such as promoting engagement with industry, employers, employer 
associations, and worker representatives to identify the skills and 
supports workers need.
    As a result, in FY 2014, RSA ran a competition to establish a job-
driven vocational rehabilitation technical assistance center that would 
provide training and technical assistance to State VR agencies to 
upgrade the knowledge and skills of the personnel and providers so that 
they are better able to build effective partnerships with employers and 
assist VR consumers in obtaining the skills needed in today's labor 
market.
    To the extent that RSA does want to fund continuing-education 
projects, part 389 is not necessary. RSA can do so through a number of 
other regulations, such as part 387 (innovative rehabilitation training 
programs) or part 390 (rehabilitation short-term training programs), 
and it can do so more flexibly, i.e. without the requirement of 
establishing regional centers.

Executive Orders 12866 and 13563

Regulatory Impact Analysis

Executive Order 12866
    Under Executive Order 12866, the Secretary must determine whether 
this regulatory action is ``significant'' and, therefore, subject to 
the requirements of the Executive order and subject to review by the 
Office of Management and Budget (OMB). Section 3(f) of Executive Order 
12866 defines a ``significant regulatory action'' as an action likely 
to result in a rule that may--
    (1) Have an annual effect on the economy of $100 million or more, 
or adversely affect a sector of the economy, productivity, competition, 
jobs, the environment, public health or safety, or State, local, or 
tribal governments or

[[Page 21010]]

communities in a material way (also referred to as an ``economically 
significant'' rule);
    (2) Create serious inconsistency or otherwise interfere with an 
action taken or planned by another agency;
    (3) Materially alter the budgetary impacts of entitlement grants, 
user fees, or loan programs or the rights and obligations of recipients 
thereof; or
    (4) Raise novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles stated in the 
Executive order.
    This proposed regulatory action is not a significant regulatory 
action subject to review by OMB under section 3(f) of Executive Order 
12866.
    We have also reviewed these regulations under Executive Order 
13563, which supplements and explicitly reaffirms the principles, 
structures, and definitions governing regulatory review established in 
Executive Order 12866. To the extent permitted by law, Executive Order 
13563 requires that an agency--
    (1) Propose or adopt regulations only upon a reasoned determination 
that their benefits justify their costs (recognizing that some benefits 
and costs are difficult to quantify);
    (2) Tailor its regulations to impose the least burden on society, 
consistent with obtaining regulatory objectives and taking into 
account--among other things and to the extent practicable--the costs of 
cumulative regulations;
    (3) In choosing among alternative regulatory approaches, select 
those approaches that maximize net benefits (including potential 
economic, environmental, public health and safety, and other 
advantages; distributive impacts; and equity);
    (4) To the extent feasible, specify performance objectives, rather 
than the behavior or manner of compliance a regulated entity must 
adopt; and
    (5) Identify and assess available alternatives to direct 
regulation, including economic incentives--such as user fees or 
marketable permits--to encourage the desired behavior, or provide 
information that enables the public to make choices.
    Executive Order 13563 also requires an agency ``to use the best 
available techniques to quantify anticipated present and future 
benefits and costs as accurately as possible.'' The Office of 
Information and Regulatory Affairs of OMB has emphasized that these 
techniques may include ``identifying changing future compliance costs 
that might result from technological innovation or anticipated 
behavioral changes.''
    We have also determined that this regulatory action would not 
unduly interfere with State, local, and tribal governments in the 
exercise of their governmental functions.
    In accordance with both Executive orders, the Department has 
assessed the potential costs and benefits, both quantitative and 
qualitative, of this regulatory action. The potential costs associated 
with this regulatory action are those resulting from statutory 
requirements and those we have determined as necessary for 
administering the Department's programs and activities. In assessing 
the potential costs and benefits--both quantitative and qualitative--of 
these proposed regulations, we have determined that the benefits would 
justify the costs.

Part 367--Independent Living Services for Older Individuals Who Are 
Blind

    In general, unless expressly noted below, we do not estimate that 
changes to this part will result in any additional costs to grantees.

Subpart B--Training and Technical Assistance

    New Subpart B of Part 367 implements the WIOA amendments requiring 
the Department to reserve from 1.8 to 2 percent of appropriated funds 
for training and technical assistance to grantees. While these set-
asides will result in a reduction in funding available to grantees, we 
believe that these training and technical assistance projects will 
increase the efficiency of the program and provide substantial benefits 
to both grantees and individuals with disabilities.
    To ensure that grantees receive the maximum amount of funds 
available for the provision of services to individuals, we would 
provide funding for training and technical assistance at the minimum 
allowable level of 1.8 percent. Prior to this proposed regulation, 
grantees have been largely responsible for meeting the training needs 
of their program staff. This may have contributed to duplicative 
training and technical assistance efforts across grantees that could 
have easily been coordinated nationally. The coordination of these 
efforts by RSA would generate efficiencies across the entire program, 
thus providing more benefits to grantees than they would have realized 
if the funds had been directly provided to them.
    Based on the FY 2015 authorized appropriation of $33,317,000 for 
the OIB program under WIOA, the estimated set-aside would be $599,706, 
based upon the minimum percentage established by the Act. Therefore, if 
grantees were to receive no benefit from the training and technical 
assistance supported by the Department, grantees would experience a 
loss in benefits of $599,706. However, since the Department will 
sponsor training and technical assistance services directly for this 
group in the amount of $599,706, we expect there to be no net loss of 
benefits. Additionally, as noted above, the efficiencies realized by 
this centralization of training and technical assistance efforts may 
actually result in a net increase in benefits for grantees.

Subpart C--What are the application requirements under this part?

    Under this Subpart, we have removed the requirement for States to 
seek to incorporate into the State Plan for Independent Living (SPIL) 
any new methods and approaches relating to independent living services 
for older individuals who are blind. Incorporating this information 
into the SPIL required minimal time (approximately 15 minutes) every 
three years upon submission of the SPIL; therefore, any savings 
realized from this change would be negligible.

Subpart E--How does the Secretary award formula grants?

    Under Subpart E, we have clarified that OIB grantees are to inform 
the Secretary 45 days prior to the end of the fiscal year that funds 
would be available for reallotment. We do not believe that this 
requirement will generate additional costs to grantees, as the change 
only provides a timeline for an action that is already occurring and 
does not, therefore, generate any new burden on grantees.

Part 370--Client Assistance Program

    WIOA requires that the proposed set-aside for training and 
technical assistance for CAP take effect in any fiscal year in which 
the appropriation equals or exceeds $14,000,000. To ensure that 
grantees receive the maximum amount of funds available for the 
provision of services to individuals, we would provide funding for 
training and technical assistance at the minimum allowable level of 1.8 
percent. In FY 2015, the appropriation for CAP was $13,000,000, 
requiring a 7.7 percent increase in the overall appropriation before 
the 1.8 percent set aside becomes effective. Because the set-aside is 
not triggered under the statute until grantees realize a substantial 
increase in benefits under this program, the set-aside will not have a 
substantial impact on the activities of grantees, a $1,000,000 increase 
in the overall appropriation

[[Page 21011]]

will result in a set-aside of $252,000 which would be used to provide 
support to grantees. Additionally, as noted above in the discussion of 
costs and benefits associated with Part 367, we believe that the 
consolidation of training and technical assistance activities at the 
national level will ultimately yield net benefits to grantees greater 
than if those activities were coordinated locally.

Part 371--American Indian Vocational Rehabilitation Services Program

    New Subpart B of Part 371 implements the WIOA amendments requiring 
the Department to reserve from 1.8 to 2 percent of appropriated funds 
for training and technical assistance to grantees. While these set-
asides will result in a reduction in funding available to grantees, we 
believe that these training and technical assistance projects will 
increase the efficiency of the program and provide substantial benefits 
to both grantees and individuals with disabilities.
    Based on the FY 2014 amount set aside by the Department for the 
AIVRS program (approximately $37,201,000), the estimated set-aside 
would have been $669,618. As noted above, since these funds are being 
used to provide services and support to grantees, we do not anticipate 
any net loss of benefit. However, if efficiencies are realized due to 
centralized coordination of these activities, grantees may experience a 
net gain in benefits.

Part 373--Rehabilitation National Activities Program

    We do not anticipate any changes to this section resulting in 
increased burden or costs for grantees.

Part 381--Protection and Advocacy for Individual Rights Program

    A proposed amendment to Sec.  381.20 (current Sec.  381.22) 
clarifies in paragraph (a)(1) that when the PAIR appropriation equals 
or exceeds $5,500,000, requiring the Secretary to set aside between 1.8 
and 2.2 percent of funds for the provision of training and technical 
assistance, the funding mechanism for the provision of training and 
technical assistance may include a grant, contract, or cooperative 
agreement. Previously, while the Department had authority to provide 
training and technical assistance to grantees, we historically opted to 
ensure that grantees receive the maximum amount of funds available for 
the provision of services to individuals, by funding training and 
technical assistance at the minimum allowable level of 1.8 percent. 
This revision would have no impact on PAIR grantees since previous 
amendments to the Act have allowed for the provision of training and 
technical assistance.
    Additionally, the PAIR appropriation has been equal to, or greater 
than, $5,500,000 for at least 15 fiscal years (in FY 2015, the 
appropriation was $17,650,000). This proposed amendment simply provides 
the Secretary with additional flexibility in the funding mechanism 
through which training and technical assistance is provided.

Part 385--Rehabilitation Training

    We do not anticipate any changes to this section resulting in 
increased burden or costs for grantees.

Part 386--Rehabilitation Long-Term Training

    Except as detailed below, we do not anticipate changes to this 
section to result in increased burden or costs for grantees.

Section 386.31 (Funding Requirement)

    In Sec.  386.31 we are proposing that program grantees dedicate 65 
percent to scholarships rather than 75 percent as required by current 
regulations. This requirement would apply to both the federal award and 
the non-federal share. This change acknowledges the fact that grantees 
incur costs in administering these programs, particularly in terms of 
staff time needed to track scholar progress in completing their program 
of study and their service obligation. This decrease in the cost to 
grantees brought about by proposed changes in Sec.  386.31 balances 
some of the increased costs created by proposed changes made in other 
sections of the regulations. In FY 2014, the Department made 
approximately $17,075,000 in new or continuation awards under the 
Rehabilitation Long-Term Training program. Assuming all grantees made 
the minimum match of 10% of the project cost, the reduction in the 
scholarship requirement would free up approximately $1,897,000 in 
project funding to be used for activities other than scholarship 
support. While this does not represent any additional funding for 
grantees, it does represent additional flexibility provided by the 
regulation.

Section 386.33 (Disbursing Scholarships)

    Changes to this section require grantees to document that scholars 
will seek employment in the field of study in which the scholar was 
provided training or employment where it can be demonstrated that the 
field of study is directly relevant to the job functions being 
performed. Currently, grantees obtain sufficient documentation of other 
requirements that we do not believe this new requirement will represent 
a substantial burden on grantees. However, if we assume that obtaining 
this additional documentation would take, on average, 10 minutes per 
scholar, and using a wage rate of $17.69 (the mean hourly wage for 
office and administrative support staff at colleges, universities, and 
professional schools) and the 1,367 scholars receiving support in FY 
2014, we estimate this provision would cost $4,030.37.

Section 386.34 (Assurances)

    Changes to this section require grantees to annually obtain signed 
executed agreements with scholars containing the terms and conditions 
outlined in this section. It has been the Department's policy to 
encourage annual updating of scholar information; these regulations 
simply formalize this policy. As such, we estimate that these changes 
to the regulation will have little actual impact on grantees or 
scholars. However, if grantees were previously only collecting these 
agreements once per scholar rather than every year that support is 
received, there would be additional costs. Of all scholars reported in 
qualifying employment in FY 2014, 88.4% received support for more than 
one year. If we assumed that this change required an additional half 
hour of time each year beyond the first year of support to update their 
information with their program, and using an average wage rate of 
$17.69, we estimate an additional cost of $10,641 (given that we 
estimate that 1,203 of the 1,367 scholars receiving support in FY 2014 
were multi-year scholars). We emphasize that this is an overestimate, 
as this change simply conforms the regulations to current practice.

Section 386.40 (Requirements for Scholars)

    In Sec.  386.40(a)(6), we are proposing language that clarifies the 
type of employment a scholar must obtain to complete the service 
obligation in order to ensure that the funds used for scholarships will 
benefit individuals with disabilities served through the state 
vocational rehabilitation program and related agencies. This change 
largely reflects current policy and should not result in an increased 
burden on grantees or scholars. Changes to Sec.  386.40(b) provides 
clarification around when scholars may begin qualifying employment 
while Sec.  386.40(c) clarifies that scholars who pursued coursework on 
a part-time basis should have their service obligations calculated on a 
full-

[[Page 21012]]

time equivalent basis. As noted above, 88.4% of the scholars completing 
their service obligations in FY 2014 received support for more than one 
year and would have been, therefore, eligible to benefit from these 
changes. We estimate that this provision, had it been in effect when 
those scholars received support, would have reduced the net service 
obligations by 9,049 years. Given the average annual scholarship value 
for this group of $4,287, we estimate a potential savings of 
$38,792,902. Finally, changes in Sec.  386.40(d) make a scholar in 
repayment status responsible for any collection costs if they do not 
provide appropriate information to the grantee in a timely manner. In 
FY 2014, the Department referred 44 scholars for repayment totaling 
$486,471. Assuming that collection costs total 3% of the balance of the 
repayment, we estimate total collection costs of $14,594. If 5% of 
these scholars were inappropriately referred to repayment, this 
additional requirement could save scholars $24,324 by avoiding such 
inappropriate referrals.

Sections 386.41 (Granting Deferrals and Exceptions) and 386.42 
(Applying for Deferrals and Exceptions)

    In 386.41 and 386.42, we are proposing stricter regulations around 
exceptions and deferrals, particularly for individuals with 
disabilities, in order to assure that individuals who benefit from 
scholarships funded by this program are more likely to complete their 
service obligation. While these changes may have impacts on the 
specific decisions made by scholars, they will not have a financial 
impact on the costs or benefits for grantees, and will likely increase 
the benefits to individuals with disabilities served by State VR 
agencies and related agencies by ensuring that training is aligned with 
practice and that a greater percentage of scholars complete their 
service obligations rather than just repaying the cost of their 
scholarships.

Part 387--Innovative Rehabilitation Training Program

    We do not anticipate any changes to this section resulting in 
increased burden or costs for grantees.

Part 390--Rehabilitation Short-Term Training Program

    Changes to Sec.  390.30 adds a selection criterion that the 
Secretary would review each application for evidence of training needs 
as identified through training needs assessments. While conducting a 
training needs assessment prior to application may result in increased 
costs for applicants, because the regulation simply adds this as one 
selection criterion among several and allows applicants to use needs 
assessments conducted by other entities, we do not anticipate that 
applicants will realize any actual increased costs associated with this 
provision.

Part 396--Training of Interpreters for Individuals Who Are Deaf or Hard 
of Hearing and Individuals Who Are Deaf-Blind

    Changes to Sec.  396.34 require grantees to provide matching funds 
to support projects in an amount determined by the Secretary at the 
time of the grant award. While this matching requirement did not 
previously exist in the regulations, it was a statutory requirement 
and, while the Department did not require grantees to document the 
match, we do not believe that any prior grantees did not contribute any 
funds to the project, either in cash or in kind. As such, we do not 
believe this provision will result in any increased costs for grantees.

Clarity of the Regulations

    Executive Order 12866 and the Presidential memorandum ``Plain 
Language in Government Writing'' require each agency to write 
regulations that are easy to understand.
    The Secretary invites comments on how to make these proposed 
regulations easier to understand, including answers to questions such 
as the following:
    <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.  370.1 What is the Client Assistance Program (CAP)?
    <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?
    To send any comments that concern how the Department could make 
these proposed regulations easier to understand, see the instructions 
in the ADDRESSES section.

Regulatory Flexibility Act Certification

    The Secretary certifies that these proposed regulations would not 
have a significant economic impact on a substantial number of small 
entities.

Independent Living for Older Individuals Who Are Blind

    There are 56 OIB grantees funded under section 752 of the Act, all 
of which are State agencies. States and State agencies are not defined 
as ``small entities'' in the Regulatory Flexibility Act. Furthermore, 
the proposed regulations would not have a significant economic impact 
on these State or State agencies because the proposed regulations would 
not impose any additional substantive regulatory burdens or require 
additional Federal supervision.

Client Assistance Program

    Due to the revisions to the Act pursuant to WIOA, there are 57 
designated CAP agencies funded under section 112 of the Act, of which 
19 are configured within a State agency and all but one remaining 
designated CAP agencies are predominantly private, nonprofit 
organizations. States and State agencies are not defined as ``small 
entities'' in the Regulatory Flexibility Act. The remaining designated 
CAP agencies are ``small entities'' that would be affected by these 
proposed regulations. The proposed regulations would not have a 
significant economic impact on the small entities affected because the 
proposed regulations would not impose any new substantive regulatory 
burdens or require more Federal supervision than is required under 
current regulations.

Protection and Advocacy of Individual Rights Program

    Due to the revisions to the Act pursuant to WIA, there are 57 PAIR 
grantees funded under section 509 of the Act, of which a majority are 
private, nonprofit organizations that are considered ``small entities'' 
under the Regulatory Flexibility Act. The proposed regulations would 
not have a significant economic impact on these small entities because 
the proposed regulations would not impose any new substantive 
regulatory burdens or require more Federal supervision than is required 
under current regulations.

American Indian Vocational Rehabilitation Services Program

    Eligible applicants under this program are the governing bodies of 
Indian tribes, consortia of such governing bodies, or tribal 
organizations established and controlled by the

[[Page 21013]]

governing bodies of Indian tribes, all located on Federal and State 
reservations. These entities are not considered ``small entities'' 
under the Regulatory Flexibility Act.

Special Demonstration Programs

    Eligible entities are State vocational rehabilitation agencies, 
community rehabilitation programs, Indian tribes or tribal 
organizations, public or non-profit agencies and organizations, 
institutions of higher education, and certain for-profit organizations. 
States, State agencies, Indian tribes, and tribal organizations are not 
``small entities'' under the Regulatory Flexibility Act. The community 
rehabilitation programs, public or non-profit agencies and 
organizations, institutions of higher education, and certain for-profit 
organizations are considered ``small entities.'' The proposed 
regulations would not have a significant economic impact on a 
significant number of these small entities because the proposed 
regulations would not impose any new substantive regulatory burdens or 
require more Federal supervision than is required under the current 
regulations.

Vocational Rehabilitation Training Programs

    For all rehabilitation programs other than training of interpreters 
for individuals who are deaf, hard of hearing, and deaf-blind, eligible 
entities are States, public or nonprofit agencies, Indian tribes, and 
institutions of higher education. For this latter program, eligible 
entities are public and private non-profit agencies and organizations 
and institutions of higher education.
    States and Indian tribes are not ``small entities'' under the 
Regulatory Flexibility Act. The public or nonprofit agencies and 
institutions of higher education are considered ``small entities.'' The 
proposed regulations would not have a significant economic impact on a 
significant number of these small entities because the proposed 
regulations would not impose any new substantive regulatory burdens or 
require more Federal supervision than is required under the current 
regulations.

Paperwork Reduction Act of 1995

    As part of its continuing effort to reduce paperwork and respondent 
burden, the Department provides the general public and Federal agencies 
with an opportunity to comment on proposed and continuing collections 
of information in accordance with the Paperwork Reduction Act of 1995 
(PRA) (44 U.S.C. 3506(c)(2)(A)). This helps ensure that: The public 
understands the Department's collection instructions, respondents can 
provide the requested data in the desired format, reporting burden 
(time and financial resources) is minimized, collection instruments are 
clearly understood, and the Department can properly assess the impact 
of collection requirements on respondents.
    The following sections contain information collection requirements:
    <bullet> Sections 367.23, 367.30, and 367.31 of the Independent 
Living Services for Older Individuals Who Are Blind (OIB) program;
    <bullet> Sections 370.20 and 370.44 of the Client Assistance 
Program (CAP);
    <bullet> Section 373.21 of the Rehabilitation National Activities 
program;
    <bullet> Sections 381.10 and 381.32 of the Protection and Advocacy 
of Individual Rights (PAIR) program;
    <bullet> Sections 385.20 and 385.45 of the Rehabilitation Training 
program;
    <bullet> Sections 386.21 and 386.36 of the Rehabilitation Long-Term 
Training program;
    <bullet> Section 387.3 of the Innovative Rehabilitation Training 
program;
    <bullet> Section 390.3 of the Rehabilitation Short-Term Training 
program; and
    <bullet> Section 396.20 of the Training of Interpreters for 
Individuals Who Are Deaf or Hard of Hearing and Individuals Who Are 
Deaf-Blind program.
    These sections do not cause substantive changes to the information 
collection requirements listed below. Under the PRA the Department has 
submitted a copy of these sections to OMB for its review.
    A Federal agency may not conduct or sponsor a collection of 
information unless OMB approves the collection under the PRA and the 
corresponding information collection instrument displays a currently 
valid OMB control number. Notwithstanding any other provision of law, 
no person is required to comply with, or is subject to penalty for 
failure to comply with, a collection of information if the collection 
instrument does not display a currently valid OMB control number.
    In the final regulations we will display the OMB control numbers 
(1820-0608 and 1820-0660 (OIB), 1820-0520 and 1820-0528 (CAP), 1820-
0625 and 1820-0627 (PAIR), 1820-0018 (all other programs) and 1820-0617 
(Rehabilitation Long-Term Training)) assigned by OMB to any information 
collection requirement in this NPRM and adopted in the final 
regulations.

Sections 367.23, 367.30 and 367.31, OIB

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collection under 1820-0608. 
These proposed requirements do not change the current OMB-approved 
annual burden of 336 annual burden hours with 56 respondents and annual 
costs of $4,256.00.

Sections 370.20 and 370.44, CAP

    Regulations proposed under these sections do not cause substantive 
changes to the active and OMB-approved data collections under 1820-0520 
and 1820-0528. These proposed requirements minimally change the current 
OMB-approved annual burden of 9 hours to 9.16 hours due to the addition 
of one respondent to the current 56 respondents. The current annual 
costs of $441.00 would increase to an estimated $449.00 under 1820-
0520. For the OMB-approved data collection under 1820-0528, these 
proposed requirements minimally change the annual burden hours from 896 
hours with 56 respondents and annual costs of $4,616.00 to 912 burden 
hours with 57 respondents and annual costs of approximately $4,698.00.

Section 373.21 of the Rehabilitation National Activities Program

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collections under 1820-
0018. These proposed requirements do not change the current OMB-
approved annual burden of 4,000 annual burden hours with 100 
respondents and annual costs of $1,120.00.

Sections 381.10 and 381.32, PAIR

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collections under 1820-0625 
and 1820-0627. These proposed requirements do not change the current 
OMB-approved annual burden of 9 hours with 57 respondents and annual 
costs of $228.00 under 1820-0625. These proposed requirements do not 
change the current OMB-approved annual burden of 912 hours with 57 
respondents and annual costs of $4,240.00 under 1820-0627.

Sections 385.20 and 385.45 of the Rehabilitation Training Program

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collections under 1820-
0018. These proposed requirements do not change the current OMB-
approved annual burden of 4,000 annual burden hours with 100 
respondents and annual costs of $1,120.00.

[[Page 21014]]

Sections 386.21 and 386.36 of the Rehabilitation Long-Term Training 
Program

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collections under 1820-0018 
and 1820-0617. These proposed requirements do not change the current 
OMB-approved annual burden of 4,000 annual burden hours with 100 
respondents and annual costs of $1,120.00 under 1820-0018. These 
proposed requirements do not change the current OMB-approved annual 
burden of 350 hours with 350 respondents and annual costs of $17,500.00 
under 1820-0617.

Section 387.3 of the Innovative Rehabilitation Training Program

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collections under 1820-
0018. These proposed requirements do not change the current OMB-
approved annual burden of 4,000 annual burden hours with 100 
respondents and annual costs of $1,120.00.

Section 390.3 of the Rehabilitation Short-Term Training Program

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collections under 1820-
0018. These proposed requirements do not change the current OMB-
approved annual burden of 4,000 annual burden hours with 100 
respondents and annual costs of $1,120.00.

Section 396.20 of the Training of Interpreters for Individuals Who Are 
Deaf or Hard of Hearing and Individuals Who Are Deaf-Blind Program

    Regulations proposed under this section do not cause substantive 
changes to the active and OMB-approved data collections under 1820-
0018. These proposed requirements do not change the current OMB-
approved annual burden of 4,000 annual burden hours with 100 
respondents and annual costs of $1,120.00.

Section 371.13 of the American Indian Vocational Rehabilitation 
Services Program

    Finally, for the American Indian Vocational Rehabilitation Services 
program, section 423(c) of WIOA requires that between 1.8-2 percent of 
funds appropriated for this program be reserved to provide training and 
technical assistance to AIVRS grantees and that the Commissioner 
conduct a survey of the governing bodies of Indian Tribes currently 
receiving grants under the AIVRS program regarding their training and 
technical assistance needs in order to determine priorities for the 
training and technical assistance provider.
    The Department has amended the current information collection 
package (OMB 1820-0655) that was approved by OMB through September 30, 
2017. This amendment requires governing bodies of existing 121 AIVRS 
projects to respond to a questionnaire that lists 41 potential topics. 
Grantees are required to identify up to 10 topics they consider to be 
essential to improving their overall performance. These responses are 
analyzed by RSA Project Officers and shared with the provider for use 
in developing its training and technical assistance program. We 
estimate that it will take each program less than 10 minutes to 
complete this questionnaire. We believe these amendments to the 
previous information data collection package places a negligible burden 
on the AIVRS grantees, and such burden is offset by the anticipated 
benefit of having properly targeted training and technical assistance 
made available to the projects.

Intergovernmental Review

    These programs are subject to Executive Order 12372 and the 
regulations in 34 CFR part 79. One of the objectives of the Executive 
order is to foster an intergovernmental partnership and a strengthened 
federalism. The Executive order relies on processes developed by State 
and local governments for coordination and review of proposed Federal 
financial assistance.
    This document provides early notification of our specific plans and 
actions for these programs.

Assessment of Educational Impact

    In accordance with section 411 of the General Education Provisions 
Act, 20 U.S.C. 1221e-4, the Secretary particularly requests comments on 
whether these proposed regulations would require transmission of 
information that any other agency or authority of the United States 
gathers or makes available.

Federalism

    Executive Order 13132 requires us to ensure meaningful and timely 
input by State and local elected officials in the development of 
regulatory policies that have federalism implications. ``Federalism 
implications'' means substantial direct effects on the States, on the 
relationship between the National Government and the States, or on the 
distribution of power and responsibilities among the various levels of 
government. The proposed regulations in this document may have 
federalism implications. We encourage State and local elected officials 
to review and provide comments on these proposed regulations.
    Accessible Format: Individuals with disabilities can obtain this 
document in an accessible format (e.g., braille, large print, 
audiotape, or compact disc) on request to the person listed under FOR 
FURTHER INFORMATION CONTACT.
    Electronic Access to This Document: The official version of this 
document is the document published in the Federal Register. Free 
Internet access to the official edition of the Federal Register and the 
Code of Federal Regulations is available via the Federal Digital System 
at: www.gpo.gov/fdsys. At this site you can view this document, as well 
as all other documents of this Department published in the Federal 
Register, in text or Adobe Portable Document Format (PDF). To use PDF 
you must have Adobe Acrobat Reader, which is available free at the 
site.
    You may also access documents of the Department published in the 
Federal Register by using the article search feature at: 
www.federalregister.gov. Specifically, through the advanced search 
feature at this site, you can limit your search to documents published 
by the Department.

(Catalog of Federal Domestic Assistance Numbers: 84.240A Protection 
and Advocacy of Individual Rights; 84.161A Client Assistance 
Program; 84.177B Independent Living Services for Older Individuals 
Who Are Blind; 84.250J American Indian Vocational Rehabilitation 
Services; 84.128G Vocational Rehabilitation Service Projects for 
Migratory Agricultural Workers and Seasonal Farmworkers with 
Disabilities Program; 84.234 Projects With Industry; 84.128J 
Recreational Programs; and 84.265 State Vocational Rehabilitation 
Services Unit In Service Training)

List of Subjects

34 CFR Part 367

    Aged, Blind, Grant programs-education, Grant programs-social 
programs, Reporting and recordkeeping requirements, Vocational 
rehabilitation.

34 CFR Part 369

    Grant programs-social programs, Reporting and recordkeeping 
requirements, Vocational rehabilitation.

34 CFR Part 370

    Administrative practice and procedure, Grant programs-social 
programs, Reporting and recordkeeping requirements, Vocational 
rehabilitation.

[[Page 21015]]

34 CFR Part 371

    Grant programs-Indians, Grant programs-social programs, Indians, 
Vocational rehabilitation.

34 CFR Part 373

    Grant programs-education, Vocational rehabilitation.

34 CFR Part 376

    Grant programs-social programs, Reporting and recordkeeping 
requirements, Vocational rehabilitation, Youth.

34 CFR Part 377

    Grant programs-social programs, Reporting and recordkeeping 
requirements, Vocational rehabilitation.

34 CFR Part 379

    Business and industry, Grant programs-social programs, Reporting 
and recordkeeping requirements, Vocational rehabilitation.

34 CFR Part 381

    Grant programs-social programs, Reporting and recordkeeping 
requirements, Vocational rehabilitation.

34 CFR Part 385

    Grant programs-education, Reporting and recordkeeping requirements, 
Vocational rehabilitation.

34 CFR Part 386

    Grant programs-education, Reporting and recordkeeping requirements, 
Vocational rehabilitation.

34 CFR Part 387

    Grant programs-education, Reporting and recordkeeping requirements, 
Vocational rehabilitation.

34 CFR Part 388

    Grant programs-education, Reporting and recordkeeping requirements, 
Vocational rehabilitation.

34 CFR Part 389

    Grant programs-education, Reporting and recordkeeping requirements, 
Vocational rehabilitation.

34 CFR Part 390

    Grant programs-education, Reporting and recordkeeping requirements, 
Vocational rehabilitation.

34 CFR Part 396

    Education of individuals with disabilities, Grant programs-
education, Individuals with disabilities, Reporting and recordkeeping 
requirements.

    Dated: March 6, 2015.
Arne Duncan,
Secretary of Education.
    For the reasons discussed in the preamble, under the authority of 
section 503(f) of the Workforce Innovation and Opportunity Act (WIOA) 
(Pub. L. 113-128) and section 12(c) of the Rehabilitation Act of 1973, 
as amended by WIOA (29 U.S.C. 709(c)), the Secretary of Education 
proposes to amend chapter III of title 34 of the Code of Federal 
Regulations as follows:

0
1. Part 367 is revised to read as follows:

PART 367--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
BLIND

Subpart A--General
Sec.
367.1 What is the Independent Living Services for Older Individuals 
Who Are Blind program?
367.2 Who is eligible for an award?
367.3 What activities may the Secretary fund?
367.4 What regulations apply?
367.5 What definitions apply?
Subpart B--Training and Technical Assistance
367.20 What are the requirements for funding training and technical 
assistance under this chapter?
367.21 How does the Secretary use these funds to provide training 
and technical assistance?
367.22 How does the Secretary make an award?
367.23 How does the Secretary determine funding priorities?
367.24 How does the Secretary evaluate an application?
Subpart C--What Are the Application Requirements Under this Part?
367.30 How does a designated State agency (DSA) apply for an award?
367.31 What assurances must a DSA include in its application?
Subpart D--How Does the Secretary Award Discretionary Grants?
367.40 Under what circumstances does the Secretary award 
discretionary grants to States?
367.41 How does the Secretary evaluate an application for a 
discretionary grant?
Subpart E--How Does the Secretary Award Formula Grants?
367.50 Under what circumstances does the Secretary award formula 
grants to States?
367.51 How are allotments made?
367.52 How does the Secretary reallot funds under this program?
Subpart F--What Conditions Must be Met After an Award?
367.60 When may a DSA make subawards or contracts?
367.61 What matching requirements apply?
367.62 What requirements apply if the State's non-Federal share is 
in cash?
367.63 What requirements apply if the State's non-Federal share is 
in kind?
367.64 What is the prohibition against a State's condition of an 
award of a sub-award or contract based on cash or in-kind 
contributions?
367.65 What is program income and how may it be used?
367.66 What requirements apply to the obligation of Federal funds 
and program income?
367.67 What notice must be given about the Client Assistance Program 
(CAP)?
367.68 What are the special requirements pertaining to the 
protection, use, and release of personal information?
367.69 What access to records must be provided?
367.70 What records must be maintained?

    Authority: Sections 751-753 of the Rehabilitation Act of 1973, 
as amended; 29 U.S.C. 796j-796l, unless otherwise noted.

Subpart A--General


Sec.  367.1  What is the Independent Living Services for Older 
Individuals Who Are Blind program?

    This program supports projects that--
    (a) Provide any of the independent living (IL) services to older 
individuals who are blind that are described in Sec.  367.3(b);
    (b) Conduct activities that will improve or expand services for 
these individuals; and
    (c) Conduct activities to help improve public understanding of the 
problems of these individuals.

(Authority: Section 752 of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(a) and (d))

Sec.  367.2  Who is eligible for an award?

    Any designated State agency (DSA) is eligible for an award under 
this program if the DSA--
    (a) Is authorized to provide rehabilitation services to individuals 
who are blind; and
    (b) Submits to and obtains approval from the Secretary of an 
application that meets the requirements of section 752(h) of the Act 
and Sec. Sec.  367.30-367.31.

(Authority: Section 752(a)(2) and 752(h) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 796k(a)(2) and (h))

Sec.  367.3  What activities may the Secretary fund?

    (a) The DSA may use funds awarded under this part for the 
activities described in Sec.  367.1 and paragraph (b) of this section.
    (b) For purposes of Sec.  367.1(a), IL services for older 
individuals who are blind include--
    (1) Services to help correct blindness, such as--
    (i) Outreach services;

[[Page 21016]]

    (ii) Visual screening;
    (iii) Surgical or therapeutic treatment to prevent, correct, or 
modify disabling eye conditions; and
    (iv) Hospitalization related to these services;
    (2) The provision of eyeglasses and other visual aids;
    (3) The provision of services and equipment to assist an older 
individual who is blind to become more mobile and more self-sufficient;
    (4) Mobility training, Braille instruction, and other services and 
equipment to help an older individual who is blind adjust to blindness;
    (5) Guide services, reader services, and transportation;
    (6) Any other appropriate service designed to assist an older 
individual who is blind in coping with daily living activities, 
including supportive services and rehabilitation teaching services;
    (7) IL skills training, information and referral services, peer 
counseling, individual advocacy training, facilitating the transition 
from nursing homes and other institutions to home and community-based 
residences with the requisite supports and services, and providing 
assistance to older individuals who are blind who are at risk of 
entering institutions so that the individuals may remain in the 
community; and
    (8) Other IL services, as defined in Sec.  367.5.

(Authority: Section 752(d) and (e) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 796k (d) and (e))

Sec.  367.4  What regulations apply?

    The following regulations apply to the Independent Living Services 
for Older Individuals Who Are Blind program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 75 (Direct Grant Programs), with respect to grants 
under subpart B and D.
    (2) 34 CFR part 76 (State-Administered Programs), with respect to 
grants under subpart E.
    (3) 34 CFR part 77 (Definitions That Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (6) 34 CFR part 82 (New Restrictions on Lobbying).
    (7) 2 CFR part 180 (OMB Guidelines to Agencies on Debarment and 
Suspension (Nonprocurement)), as adopted at 2 CFR part 3485.
    (8) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards), as adopted at 2 
CFR part 3474.
    (b) The regulations in this part 367.

(Authority: Sections 12(c) and 752 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 796k)

Sec.  367.5  What definitions apply?

    (a) The definitions of terms used in this part that are included in 
the regulations identified in Sec.  367.4 as applying to this program.
    (b) In addition, the following definitions also apply to this part:
    (1) Act means the Rehabilitation Act, as amended by WIOA.
    (2) Advocacy means pleading an individual's cause or speaking or 
writing in support of an individual. To the extent permitted by State 
law or the rules of the agency before which an individual is appearing, 
a non-lawyer may engage in advocacy on behalf of another individual. 
Advocacy may--
    (i) Involve representing an individual--
    (A) Before private entities or organizations, government agencies 
(whether State, local, or Federal), or in a court of law (whether State 
or Federal); or
    (B) In negotiations or mediation, in formal or informal 
administrative proceedings before government agencies (whether State, 
local, or Federal), or in legal proceedings in a court of law; and
    (ii) Be on behalf of--
    (A) A single individual, in which case it is individual advocacy;
    (B) A group or class of individuals, in which case it is systems 
(or systemic) advocacy; or
    (C) Oneself, in which case it is self advocacy.
    (3) Attendant care means a personal assistance service provided to 
an individual with significant disabilities in performing a variety of 
tasks required to meet essential personal needs in areas such as 
bathing, communicating, cooking, dressing, eating, homemaking, 
toileting, and transportation.
    (4) Contract means a legal instrument by which RSA in subpart B or 
the DSA receiving a grant under this part purchases property or 
services needed to carry out the program under this Part. The term as 
used in this part does not include a legal instrument, even if RSA or 
the DSA considers it a contract, when the substance of the transaction 
meets the definition of a Federal award or subaward.

(Authority: 20 U.S.C. 1221e-3)


    (5) Designated State Agency means the agency described in section 
101(a)(2)(A)(i) of the Rehabilitation Act as the sole State agency 
authorized to provide rehabilitation services to individuals who are 
blind.
    (6) Independent living services for older individuals who are blind 
means those services listed in Sec.  367.3(b).
    (7) Legally authorized advocate or representative means an 
individual who is authorized under State law to act or advocate on 
behalf of another individual. Under certain circumstances, State law 
permits only an attorney, legal guardian, or individual with a power of 
attorney to act or advocate on behalf of another individual. In other 
circumstances, State law may permit other individuals to act or 
advocate on behalf of another individual.
    (8) Minority group means Alaskan Natives, American Indians, Asian 
Americans, Blacks (African Americans), Hispanic Americans, Native 
Hawaiians, and Pacific Islanders.
    (9) Older individual who is blind means an individual age fifty-
five or older whose severe visual impairment makes competitive 
employment extremely difficult to obtain but for whom IL goals are 
feasible.
    (10) Other IL services include:
    (i) Counseling services, including psychological, 
psychotherapeutic, and related services;
    (ii) Services related to securing housing or shelter, including 
services related to community group living, that are supportive of the 
purposes of the Act, and adaptive housing services, including 
appropriate accommodations to and modifications of any space used to 
serve, or to be occupied by, older individuals who are blind;
    (iii) Rehabilitation technology;
    (iv) Services and training for older individuals who are blind who 
also have cognitive and sensory disabilities, including life skills 
training and interpreter;
    (v) Personal assistance services, including attendant care and the 
training of personnel providing these services;
    (vi) Surveys, directories, and other activities to identify 
appropriate housing, recreation opportunities, and accessible 
transportation, and other support services;
    (vii) Consumer information programs on rehabilitation and IL 
services available under the Act, especially for minorities and other 
older individuals who are blind who have traditionally been unserved or 
underserved by programs under the Act;
    (viii) Education and training necessary for living in a community 
and participating in community activities;
    (ix) Supported living;

[[Page 21017]]

    (x) Transportation, including referral and assistance for 
transportation;
    (xi) Physical rehabilitation;
    (xii) Therapeutic treatment;
    (xiii) Provision of needed prostheses and other appliances and 
devices;
    (xiv) Individual and group social and recreational services;
    (xv) Services under other Federal, State, or local programs 
designed to provide resources, training, counseling, or other 
assistance of substantial benefit in enhancing the independence, 
productivity, and quality of life of older individuals who are blind;
    (xvi) Appropriate preventive services to decrease the need of older 
individuals who are blind who are assisted under the Act for similar 
services in the future;
    (xvii) Community awareness programs to enhance the understanding 
and integration into society of older individuals who are blind; and
    (xviii) Any other services that may be necessary to improve the 
ability of an older individual who is blind to function, continue 
functioning, or move toward functioning independently in the family or 
community or to continue in employment and that are not inconsistent 
with any other provisions of the Act.
    (11) Peer relationships mean relationships involving mutual support 
and assistance among individuals with significant disabilities who are 
actively pursuing IL goals.
    (12) Peer role models means individuals with significant 
disabilities whose achievements can serve as a positive example for 
other older individuals who are blind.
    (13) Personal assistance services means a range of IL services, 
provided by one or more persons, designed to assist an older individual 
who is blind to perform daily living activities on or off the job that 
the individual would typically perform if the individual was not blind. 
These IL services must be designed to increase the individual's control 
in life and ability to perform everyday activities on or off the job.
    (14) Service provider means--
    (i) the DSA that directly provides services authorized under Sec.  
367.3; or
    (ii) any other entity that receives a subaward or contract from the 
DSA to provide services authorized under Sec.  367.3.
    (15) Significant disability means a severe physical, mental, 
cognitive, or sensory impairment that substantially limits an 
individual's ability to function independently in the family or 
community or to obtain, maintain, or advance in employment.
    (16) State means, except where otherwise specified in the Act, in 
addition to each of the several States of the United States, the 
District of Columbia, the Commonwealth of Puerto Rico, the United 
States Virgin Islands, Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands.
    (17) Subaward a grant or a cooperative agreement provided by the 
DSA to a subrecipient for the subrecipient to carry out part of the 
Federal award received by the DSA under this part. It does not include 
payments to a contractor or payments to an individual that is a 
beneficiary of a program funded under this part. A subaward may be 
provided through any form of legal agreement, including an agreement 
that the DSA considers a contract.

(Authority: 20 U.S.C. 1221e-3)


    (18) Subrecipient a non-Federal entity that receives a subaward 
from the DSA to carry out all or part of the program funded under this 
part; but does not include an individual that is a beneficiary of such 
program. A subrecipient may also be a recipient of other Federal awards 
directly from a Federal awarding agency.

(Authority: 20 U.S.C. 1221e-3)


    (19) Transportation means travel and related expenses that are 
necessary to enable an older individual who is blind to benefit from 
another IL service and travel and related expenses for an attendant or 
aide if the services of that attendant or aide are necessary to enable 
an older individual who is blind to benefit from that IL service.
    (20) Unserved and underserved groups or populations, with respect 
to groups or populations of older individuals who are blind in a State, 
include, but are not limited to, groups or populations of older 
individuals who are blind who--
    (i) Have cognitive and sensory impairments;
    (ii) Are members of racial and ethnic minority groups;
    (iii) Live in rural areas; or
    (iv) Have been identified by the DSA as unserved or underserved.

(Authority: Unless otherwise noted, Section 7 of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 705)

Subpart B--Training and Technical Assistance


Sec.  367.20  What are the requirements for funding training and 
technical assistance under this chapter?

    For any fiscal year, beginning with fiscal year 2015, the Secretary 
shall first reserve not less than 1.8 percent and not more than 2 
percent of funds appropriated and made available to carry out this 
chapter to provide training and technical assistance to DSAs, or other 
providers of independent living services for older individuals who are 
blind, that are funded under this chapter for such fiscal year.

(Authority: Section 751A(a) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796j-1(a))

Sec.  367.21  How does the Secretary use these funds to provide 
training and technical assistance?

    (a) The Secretary uses these funds to provide training and 
technical assistance, either directly or through grants, contracts, or 
cooperative agreements with entities that have the capacity to provide 
technical assistance and training in the provision of independent 
living services for older individuals who are blind.
    (b) An entity receiving assistance in accordance with paragraph (a) 
of this section shall provide training and technical assistance to DSAs 
or other service providers to assist them in improving the operation 
and performance of programs and services for older individuals who are 
blind resulting in their enhanced independence and self-sufficiency.

(Authority: Section 751A(a) and (c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 796j-1(a) and (c))

Sec.  367.22  How does the Secretary make an award?

    (a) To be eligible to receive a grant or enter into a contract or 
cooperative agreement under section 751A of the Act and this subpart, 
an applicant shall submit an application to the Secretary containing a 
proposal to provide training and technical assistance to DSAs or other 
service providers of IL services to older individuals who are blind and 
any additional information at the time and in the manner that the 
Secretary may require.
    (b) The Secretary shall provide for peer review of applications by 
panels that include persons who are not Federal or State government 
employees and who have experience in the provision of services to older 
individuals who are blind.

(Authority: Section 751A(a) and (c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 796j-1(a) and (c))

Sec.  367.23  How does the Secretary determine funding priorities?

    The Secretary shall conduct a survey of DSAs that receive grants 
under section 752 regarding training and technical assistance needs in 
order to inform funding priorities for such training and technical 
assistance.

[[Page 21018]]


(Authority: Section 751A(b) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796j-1(b))

Sec.  367.24  How does the Secretary evaluate an application?

    (a) The Secretary evaluates each application for a grant, 
cooperative agreement or contract under this subpart on the basis of 
the selection criteria chosen from the general selection criteria found 
in EDGAR regulations at 34 CFR 75.210.
    (b) If the Secretary uses a contract to award funds under this 
subpart, the application process will be conducted and the subsequent 
award will be made in accordance with 34 CFR part 75.

(Authority: Section 751A of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796j-1(b), 20 U.S.C. 1221e-3, and 3474)

Subpart C--What Are the Application Requirements Under This Part?


Sec.  367.30  How does a designated State agency (DSA) apply for an 
award?

    To receive a grant under section 752(h) or a reallotment grant 
under section 752(i)(4) of the Act, a DSA must submit to and obtain 
approval from the Secretary of an application for assistance under this 
program at the time, in the form and manner, and containing the 
agreements, assurances, and information, that the Secretary determines 
to be necessary to carry out this program.
    (Approved by the Office of Management and Budget under control 
number 1820-0660)

(Authority: Sections 752(h) and (i)(4) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 796k(h) and (i))

Sec.  367.31  What assurances must a DSA include in its application?

    An application for a grant under section 752(h) or a reallotment 
grant under section 752(i)(4) of the Act must contain an assurance 
that--
    (a) Grant funds will be expended only for the purposes described in 
Sec.  367.1;
    (b) With respect to the costs of the program to be carried out by 
the State pursuant to this part, the State will make available, 
directly or through donations from public or private entities, non-
Federal contributions toward these costs in an amount that is not less 
than $1 for each $9 of Federal funds provided in the grant;
    (c) At the end of each fiscal year, the DSA will prepare and submit 
to the Secretary a report, with respect to each project or program the 
DSA operates or administers under this part, whether directly or 
through a grant or contract, that contains, information that the 
Secretary determines necessary for the proper and efficient 
administration of this program, including--
    (1) The number and types of older individuals who are blind, 
including older individuals who are blind from minority backgrounds, 
and are receiving services;
    (2) The types of services provided and the number of older 
individuals who are blind and are receiving each type of service;
    (3) The sources and amounts of funding for the operation of each 
project or program;
    (4) The amounts and percentages of resources committed to each type 
of service provided;
    (5) Data on actions taken to employ, and advance in employment, 
qualified--
    (i) Individuals with significant disabilities; and
    (ii) Older individuals with significant disabilities who are blind;
    (6) A comparison, if appropriate, of prior year activities with the 
activities of the most recent year; and
    (7) Any new methods and approaches relating to IL services for 
older individuals who are blind that are developed by projects funded 
under this part;
    (d) The DSA will--
    (1) Provide services that contribute to the maintenance of, or the 
increased independence of, older individuals who are blind; and
    (2) Engage in--
    (i) Capacity-building activities, including collaboration with 
other agencies and organizations;
    (ii) Activities to promote community awareness, involvement, and 
assistance; and
    (iii) Outreach efforts; and
    (e) The applicant has been designated by the State as the sole 
State agency authorized to provide rehabilitation services to 
individuals who are blind.
    (Approved by the Office of Management and Budget under control 
numbers 1820-0660 and 1820-0608)

(Authority: Section 752(h) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(h))

Subpart D--How Does the Secretary Award Discretionary Grants?


Sec.  367.40  Under what circumstances does the Secretary award 
discretionary grants to States?

    (a) In the case of a fiscal year for which the amount appropriated 
under section 753 of the Act is less than $13,000,000, the Secretary 
awards discretionary grants under this part on a competitive basis to 
States in accordance with section 752(b) of the Act and EDGAR 
regulations at 34 CFR part 75 (Direct Grant Programs).
    (b) The Secretary awards noncompetitive continuation grants for a 
multi-year project to pay for the costs of activities for which a grant 
was awarded under this part--as long as the grantee satisfies the 
applicable requirements in this part, the terms of the grant, and 34 
CFR 75.250 through 75.253 (Approval of Multi-year Projects).
    (c) Subparts A, C, D, and F of this part govern the award of 
competitive grants under this part.

(Authority: Section 752(b) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(b); 20 U.S.C. 1221e-3 and 3474)

Sec.  367.41  How does the Secretary evaluate an application for a 
discretionary grant?

    (a) The Secretary evaluates an application for a discretionary 
grant based on the selection criteria chosen from the general selection 
criteria found in EDGAR regulations at 34 CFR 75.210.
    (b) In addition to the selection criteria, the Secretary considers 
the geographic distribution of projects in making an award.

(Authority: Section 752(b) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(b); 20 U.S.C. 1221e-3 and 3474)

Subpart E--How Does the Secretary Award Formula Grants?


Sec.  367.50  Under what circumstances does the Secretary award formula 
grants to States?

    (a) In the case of a fiscal year for which the amount appropriated 
under section 753 of the Act is equal to or greater than $13,000,000, 
grants under this part are made to States from allotments under section 
752(c)(2) of the Act.
    (b) Subparts A, C, E, and F of this part govern the award of 
formula grants under this part.

(Authority: Section 752(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(c))

Sec.  367.51  How are allotments made?

    (a) For purposes of making grants under section 752(c) of the Act 
and this subpart, the Secretary makes an allotment to each State in an 
amount determined in accordance with section 752(i) of the Act.
    (b) The Secretary makes a grant to a DSA in the amount of the 
allotment to the State under section 752(i) of the Act if the DSA 
submits to and obtains approval from the Secretary of an application 
for assistance under this program that meets the requirements of

[[Page 21019]]

section 752(h) of the Act and Sec. Sec.  367.30 and 367.31.
    (Approved by the Office of Management and Budget under control 
number 1820-0660)

(Authority: Section 752(c)(2) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(c)(2))

Sec.  367.52  How does the Secretary reallot funds under this program?

    (a) From the amounts specified in paragraph (b) of this section, 
the Secretary may make reallotment grants to States, as determined by 
the Secretary, whose population of older individuals who are blind has 
a substantial need for the services specified in section 752(d) of the 
Act and Sec.  367.3(b), relative to the populations in other States of 
older individuals who are blind.
    (b) The amounts referred to in paragraph (a) of this section are 
any amounts that are not paid to States under section 752(c)(2) of the 
Act and Sec.  367.51 as a result of--
    (1) The failure of a DSA to prepare, submit, and receive approval 
of an application under section 752(h) of the Act and in accordance 
with Sec. Sec.  367.30 and 367.31; or
    (2) Information received by the Secretary from the DSA that the DSA 
does not intend to expend the full amount of the State's allotment 
under section 752(c) of the Act and this subpart.
    (c) A reallotment grant to a State under paragraph (a) of this 
section is subject to the same conditions as grants made under section 
752(a) of the Act and this part.
    (d) Any funds made available to a State for any fiscal year 
pursuant to this section are regarded as an increase in the allotment 
of the State under Sec.  367.51 for that fiscal year only.
    (e) A state that does not intend to expend the full amount of its 
allotment must notify RSA at least 45 days prior to the end of the 
fiscal year that its grant, or a portion of it, is available for 
reallotment.
    (Approved by the Office of Management and Budget under control 
number 1820-0660)

(Authority: Section 752(i)(4) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(i)(4))

Subpart F--What Conditions Must Be Met After an Award?


Sec.  367.60  When may a DSA make subawards or contracts?

    A DSA may operate or administer the program or projects under this 
part to carry out the purposes specified in Sec.  367.1, either 
directly or through--
    (a) Subawards to public or private nonprofit agencies or 
organizations; or
    (b) Contracts with individuals, entities, or organizations that are 
not public or private nonprofit agencies or organizations.

(Authority: Sections 752(g) and (h) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 796k(g) and (h)(2)(A))

Sec.  367.61  What matching requirements apply?

    Non-Federal contributions required by Sec.  367.31(b) must meet the 
requirements in 2 CFR 200.306 (Cost sharing or matching).

(Authority: Section 752(f) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(f))

Sec.  367.62  What requirements apply if the State's non-Federal share 
is in cash?

    (a) Expenditures that meet the non-Federal share requirements of 2 
CFR 200.306 may be used to meet the non-Federal share matching 
requirement. Expenditures used as non-Federal share must also meet the 
following requirements:
    (1) The expenditures are made with funds made available by 
appropriation directly to the DSA or with funds made available by 
allotment or transfer from any other unit of State or local government;
    (2) The expenditures are made with cash contributions from a donor 
that are deposited in the account of the DSA in accordance with State 
law for expenditure by, and at the sole discretion of, the DSA for 
activities authorized by Sec.  367.3; or
    (3) The expenditures are made with cash contributions from a donor 
that are earmarked for meeting the State's share for activities listed 
in Sec.  367.3;
    (b) Cash contributions are permissible under paragraph (a)(3) of 
this section only if the cash contributions are not used for 
expenditures that benefit or will benefit in any way the donor, an 
individual to whom the donor is related by blood or marriage or with 
whom the donor has a close personal relationship, or an individual, 
entity, or organization with whom the donor shares a financial 
interest.
    (c) The receipt of a subaward or contract under section 752(g) of 
the Act from the DSA is not considered a benefit to the donor of a cash 
contribution for purposes of paragraph (b) of this section if the 
subaward or contract was awarded under the State's regular competitive 
procedures. The State may not exempt the awarding of the subaward or 
contract from its regular competitive procedures.
    (d) For purposes of this section, a donor may be a private agency, 
a profit-making or nonprofit organization, or an individual.

(Authority: Section 752(f) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 796k(f))

Sec.  367.63  What requirements apply if the State's non-Federal share 
is in kind?

    In-kind contributions may be--
    (a) Used to meet the matching requirement under section 752(f) of 
the Act if the in-kind contributions meet the requirements and are 
allowable under 2 CFR 200.306; and
    (b) Made to the program or project by the State or by a third party 
(i.e., an individual, entity, or organization, whether local, public, 
private, for profit, or nonprofit), including a third party that is a 
subrecipient or contractor that is receiving or will receive assistance 
under section 752(g) of the Rehabilitation Act.

(Authority: Section 752(f) and (g) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 796k(f) and (g))

Sec.  367.64  What is the prohibition against a State's condition of an 
award of a subaward or contract based on cash or in-kind contributions?

    (a) A State may not condition the making of a subaward or contract 
under section 752(g) of the Act on the requirement that the applicant 
for the subaward or contract make a cash or in-kind contribution of any 
particular amount or value to the State.
    (b) An individual, entity, or organization that is a subrecipient 
or contractor of the State, may not condition the award of a 
subcontract on the requirement that the applicant for the subcontract 
make a cash or in-kind contribution of any particular amount or value 
to the State or to the subrecipient or contractor of the State.

(Authority: Section 752(f) and (g) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 796k(f) and (g))

Sec.  367.65  What is program income and how may it be used?

    (a) Definition. Program income means gross income earned by the 
grantee, subrecipient, or contractor that is directly generated by a 
supported activity or earned as a result of the grant, subaward, or 
contract.
    (1) Program income received through the transfer of Social Security 
Administration program income from the State Vocational Rehabilitation 
Services program (Title I) in accordance with 34 CFR 361.63(c)(2) will 
be treated as program income received under this part.

[[Page 21020]]

    (2) [Reserved]
    (b) Use of program income. (1) Program income, whenever earned, 
must be used for the provision of services authorized under Sec.  
367.3.
    (2) A service provider is authorized to treat program income as--
    (i) A deduction from total allowable costs charged to a Federal 
grant, in accordance with 2 CFR 200.307(e)(1); or
    (ii) An addition to the grant funds to be used for additional 
allowable program expenditures, in accordance with 2 CFR 200.307(e)(2).
    (3) Program income may not be used to meet the non-Federal share 
requirement under Sec.  367.31(b).

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

Sec.  367.66  What requirements apply to the obligation of Federal 
funds and program income?

    (a) Except as provided in paragraph (b) of this section, any 
Federal funds, including reallotted funds, that are appropriated for a 
fiscal year to carry out a program under this part that are not 
obligated or expended by the DSA prior to the beginning of the 
succeeding fiscal year, and any program income received during a fiscal 
year that is not obligated or expended by the DSA prior to the 
beginning of the succeeding fiscal year in which the program income was 
received, remain available for obligation and expenditure by the DSA 
during that succeeding fiscal year.
    (b) Federal funds appropriated for a fiscal year under this part 
remain available for obligation in the succeeding fiscal year only to 
the extent that the DSA complied with its matching requirement by 
obligating, in accordance with 34 CFR 76.707, the non-Federal share in 
the fiscal year for which the funds were appropriated.
    (c) Program income is considered earned in the fiscal year in which 
it is received. Program income earned during the fiscal year must be 
disbursed during the time in which new obligations may be incurred to 
carry out the work authorized under the award, and prior to requesting 
additional cash payments in accordance with 2 CFR 200.305(b)(5).

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

Sec.  367.67  What notice must be given about the Client Assistance 
Program (CAP)?

    The DSA and all other service providers under this part shall use 
formats that are accessible to notify individuals seeking or receiving 
services under this part about--
    (a) The availability of CAP authorized by section 112 of the Act;
    (b) The purposes of the services provided under the CAP; and
    (c) How to contact the CAP.

(Authority: Section 20 of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 717)

Sec.  367.68  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) General provisions. The DSA and all other service providers 
under this part shall adopt and implement policies and procedures to 
safeguard the confidentiality of all personal information, including 
photographs and lists of names. These policies and procedures must 
assure that--
    (1) Specific safeguards protect current and stored personal 
information;
    (2) All applicants for, or recipients of, services under this part 
and, as appropriate, those individuals' legally authorized 
representatives, service providers, cooperating agencies, and 
interested persons are informed of the confidentiality of personal 
information and the conditions for gaining access to and releasing this 
information;
    (3) All applicants or their legally authorized representatives are 
informed about the service provider's need to collect personal 
information and the policies governing its use, including--
    (i) Identification of the authority under which information is 
collected;
    (ii) Explanation of the principal purposes for which the service 
provider intends to use or release the information;
    (iii) Explanation of whether providing requested information to the 
service provider is mandatory or voluntary and the effects to the 
individual of not providing requested information;
    (iv) Identification of those situations in which the service 
provider requires or does not require informed written consent of the 
individual or his or her legally authorized representative before 
information may be released; and
    (v) Identification of other agencies to which information is 
routinely released;
    (4) Persons who are unable to communicate in English or who rely on 
alternative modes of communication must be provided an explanation of 
service provider policies and procedures affecting personal information 
through methods that can be adequately understood by them;
    (5) At least the same protections are provided to individuals 
served under this part as provided by State laws and regulations; and
    (6) Access to records is governed by rules established by the 
service provider and any fees charged for copies of records are 
reasonable and cover only extraordinary costs of duplication or making 
extensive searches.
    (b) Service provider use. All personal information in the 
possession of the service provider may be used only for the purposes 
directly connected with the provision of services under this part and 
the administration of the program under which services are provided 
under this part. Information containing identifiable personal 
information may not be shared with advisory or other bodies that do not 
have official responsibility for the provision of services under this 
part or the administration of the program under which services are 
provided under this part. In the provision of services under this part 
or the administration of the program under which services are provided 
under this part, the service provider may obtain personal information 
from other service providers and cooperating agencies under assurances 
that the information may not be further divulged, except as provided 
under paragraphs (c), (d), and (e) of this section.
    (c) Release to recipients of services under this part.
    (1) Except as provided in paragraphs (c)(2) and (c)(3) of this 
section, if requested in writing by a recipient of services under this 
part, the service provider shall release all information in that 
individual's record of services to the individual or the individual's 
legally authorized representative in a timely manner.
    (2) Medical, psychological, or other information that the service 
provider determines may be harmful to the individual may not be 
released directly to the individual, but must be provided through a 
qualified medical or psychological professional or the individual's 
legally authorized representative.
    (3) If personal information has been obtained from another agency 
or organization, it may be released only by, or under the conditions 
established by, the other agency or organization.
    (d) Release for audit, evaluation, and research. Personal 
information may be released to an organization, agency, or individual 
engaged in audit, evaluation, or research activities only for purposes 
directly connected with the administration of a program under this 
part, or for purposes that would significantly improve the quality of 
life for individuals served under this part and only if the 
organization, agency, or individual assures that--
    (1) The information will be used only for the purposes for which it 
is being provided;
    (2) The information will be released only to persons officially 
connected with the audit, evaluation, or research;
    (3) The information will not be released to the involved 
individual;

[[Page 21021]]

    (4) The information will be managed in a manner to safeguard 
confidentiality; and
    (5) The final product will not reveal any personally identifying 
information without the informed written consent of the involved 
individual or the individual's legally authorized representative.
    (e) Release to other programs or authorities.
    (1) Upon receiving the informed written consent of the individual 
or, if appropriate, the individual's legally authorized representative, 
the service provider may release personal information to another agency 
or organization for the latter's program purposes only to the extent 
that the information may be released to the involved individual and 
only to the extent that the other agency or organization demonstrates 
that the information requested is necessary for the proper 
administration of its program.
    (2) Medical or psychological information may be released pursuant 
to paragraph (e)(1) of this section if the other agency or organization 
assures the service provider that the information will be used only for 
the purpose for which it is being provided and will not be further 
released to the individual.
    (3) The service provider shall release personal information if 
required by Federal laws or regulations.
    (4) The service provider shall release personal information in 
response to investigations in connection with law enforcement, fraud, 
or abuse, unless expressly prohibited by Federal or State laws or 
regulations, and in response to judicial order.
    (5) The service provider also may release personal information to 
protect the individual or others if the individual poses a threat to 
his or her safety or to the safety of others.

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

Sec.  367.69  What access to records must be provided?

    For the purpose of conducting audits, examinations, and compliance 
reviews, the DSA and all other service providers shall provide access 
to the Secretary and the Comptroller General, or any of their duly 
authorized representatives, to--
    (a) The records maintained under this part
    (b) Any other books, documents, papers, and records of the 
recipients that are pertinent to the financial assistance received 
under this part; and
    (c) All individual case records or files or consumer service 
records of individuals served under this part, including names, 
addresses, photographs, and records of evaluation included in those 
individual case records or files or consumer service records.

(Authority: 20 U.S.C. 1221e-3)

Sec.  367.70  What records must be maintained?

    The DSA and all other service providers shall maintain--
    (a) Records that fully disclose and document--
    (1) The amount and disposition by the recipient of that financial 
assistance;
    (2) The total cost of the project or undertaking in connection with 
which the financial assistance is given or used;
    (3) The amount of that portion of the cost of the project or 
undertaking supplied by other sources; and
    (4) Compliance with the requirements of this part; and
    (b) Other records that the Secretary determines to be appropriate 
to facilitate an effective audit.

(Authority: 20 U.S.C. 1221e-3)

PART 369 [Removed and Reserved]

0
2. Part 369 is removed and reserved.
0
3. Part 370 is revised to read as follows:

PART 370--CLIENT ASSISTANCE PROGRAM

Subpart A--General
Sec.
370.1 What is the Client Assistance Program (CAP)?
370.2 Who is eligible for an award?
370.3 Who is eligible for services and information under the CAP?
370.4 What kinds of activities may the Secretary fund?
370.5 What regulations apply?
370.6 What definitions apply?
370.7 What shall the designated agency do to make its services 
accessible?
Subpart B--What Requirements Apply to Redesignation?
370.10 When do the requirements for redesignation apply?
370.11 What requirements apply to a notice of proposed 
redesignation?
370.12 How does a designated agency preserve its right to appeal a 
redesignation?
370.13 What are the requirements for a decision to redesignate?
370.14 How does a designated agency appeal a written decision to 
redesignate?
370.15 What must the Governor of a State do upon receipt of a copy 
of a designated agency's written appeal to the Secretary?
370.16 How does the Secretary review an appeal of a redesignation?
370.17 When does a redesignation become effective?
Subpart C--What are the Requirements for Requesting a Grant?
370.20 What must be included in a request for a grant?
Subpart D--How Does the Secretary Allocate and Reallocate Funds to a 
State?
370.30 How does the Secretary allocate funds?
370.31 How does the Secretary reallocate funds?
Subpart E--What Post-Award Conditions Must Be Met by a Designated 
Agency?
370.40 What are allowable costs?
370.41 What conflict of interest provision applies to employees of a 
designated agency?
370.42 What access must the CAP be afforded to policymaking and 
administrative personnel?
370.43 What requirement applies to the use of mediation procedures?
370.44 What reporting requirement applies to each designated agency?
370.45 What limitation applies to the pursuit of legal remedies?
370.46 What consultation requirement applies to a Governor of a 
State?
370.47 What is program income and how may it be used?
370.48 When must grant funds and program income be obligated?
370.49 What are the special requirements pertaining to the 
protection, use, and release of personal information?

    Authority: Section 112 of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 732, unless otherwise noted.
Subpart A--General


Sec.  370.1  What is the Client Assistance Program (CAP)?

    The purpose of this program is to establish and carry out CAPs 
that--
    (a) Advise and inform clients and client-applicants of all services 
and benefits available to them through programs authorized under the 
Rehabilitation Act of 1973, as amended (Act), including activities 
carried out under sections 113 and 511;
    (b) Assist and advocate for clients and client-applicants in their 
relationships with projects, programs, and community rehabilitation 
programs providing services under the Act; and
    (c) Inform individuals with disabilities in the State, especially 
individuals with disabilities who have traditionally been unserved or 
underserved by vocational rehabilitation programs, of the services and 
benefits available to them under the Act and under title I of the 
Americans with Disabilities Act of 1990 (ADA) (42 U.S.C. 12111 et 
seq.).

(Authority: Section 112(a) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 732(a))


[[Page 21022]]




Sec.  370.2  Who is eligible for an award?

    (a)(1) Any State, through its Governor, and the protection and 
advocacy system serving the American Indian Consortium, is eligible for 
an award under this part if the State or eligible protection and 
advocacy system submits, and receives approval of, an application in 
accordance with Sec.  370.20.
    (2) For purposes of this part, the terms--
    (i) ``American Indian Consortium'' has the meaning given the term 
in section 102 of the Developmental Disabilities Assistance and Bill of 
Rights Act of 2000 (DD Act) (42 U.S.C. 15002); and
    (ii) ``Protection and advocacy system'' means a protection and 
advocacy system established under subtitle C of title I of the DD Act 
(42 U.S.C. 15041 et seq.).
    (b) Notwithstanding the protection and advocacy system serving the 
American Indian Consortium, the Governor of each State shall designate 
a public or private agency to conduct the State's CAP under this part.
    (c) Except as provided in paragraph (d) of this section, the 
Governor shall designate an agency that is independent of any agency 
that provides treatment, services, or rehabilitation to individuals 
under the Act.
    (d) The Governor may, in the initial designation, designate an 
agency that provides treatment, services, or rehabilitation to 
individuals with disabilities under the Act if, at any time before 
February 22, 1984, there was an agency in the State that both--
    (1) Was a grantee under section 112 of the Act by serving as a 
client assistance agency and directly carrying out a CAP; and
    (2) Was, at the same time, a grantee under any other provision of 
the Act.
    (e) An agency designated by the Governor of a State to conduct the 
State's CAP or the protection and advocacy system serving the American 
Indian Consortium under this part may not make a subaward to or enter 
into a contract with an agency that provides services under this Act 
either to carry out the CAP or to provide services under the CAP.
    (f) A designated agency, including the protection and advocacy 
system serving the American Indian Consortium, that contracts to 
provide CAP services with another entity or individual remains 
responsible for--
    (1) The conduct of a CAP that meets all of the requirements of this 
part;
    (2) Ensuring that the entity or individual expends CAP funds in 
accordance with--
    (i) The regulations in this part; and
    (ii) The regulations at 2 CFR part 200 applicable to the designated 
agency identified in paragraph (b) or the protection and advocacy 
system serving the American Indian Consortium, as described in 
paragraph (a) of this section; and
    (3) The direct day-to-day supervision of the CAP services being 
carried out by the contractor. This day-to-day supervision must include 
the direct supervision of the individuals who are employed or used by 
the contractor to provide CAP services.

(Authority: Sections 12(c) and 112(a), (c)(1)(A), and (e)(1)(E) of 
the Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) and 
732(a), (c)(1)(A), and (e)(1)(E))

Sec.  370.3  Who is eligible for services and information under the 
CAP?

    (a) Any client or client applicant is eligible for the services 
described in Sec.  370.4.
    (b) Any individual with a disability is eligible to receive 
information on the services and benefits available to individuals with 
disabilities under the Act and title I of the ADA.

(Authority: Section 112(a) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 732(a))

Sec.  370.4  What kinds of activities may the Secretary fund?

    (a) Funds made available under this part must be used for 
activities consistent with the purposes of this program, including--
    (1) Advising and informing clients, client-applicants, and 
individuals with disabilities in the State, especially individuals with 
disabilities who have traditionally been unserved or underserved by 
vocational rehabilitation programs, of--
    (i) All services and benefits available to them through programs 
authorized under the Act; and
    (ii) Their rights in connection with those services and benefits;
    (2) Informing individuals with disabilities in the State, 
especially individuals with disabilities who have traditionally been 
unserved or underserved by vocational rehabilitation programs, of the 
services and benefits available to them under title I of the ADA;
    (3) Upon the request of the client or client applicant, assisting 
and advocating on behalf of the client or client applicant in his or 
her relationship with projects, programs, and community rehabilitation 
programs that provide services under the Act by engaging in individual 
or systemic advocacy and pursuing, or assisting and advocating on 
behalf of the client or client applicant to pursue, legal, 
administrative, and other available remedies, if necessary--
    (i) To ensure the protection of the rights of a client or client 
applicant under the Act; and
    (ii) To facilitate access by individuals with disabilities, 
including students and youth with disabilities who are making the 
transition from school programs, to services funded under the Act; and
    (4) Providing information to the public concerning the CAP.
    (b) In providing assistance and advocacy services under this part 
with respect to services under title I of the Act, a designated agency 
may provide assistance and advocacy services to a client or client 
applicant to facilitate the individual's employment, including 
assistance and advocacy services with respect to the individual's 
claims under title I of the ADA, if those claims under title I of the 
ADA are directly related to services under title I of the Act that the 
individual is receiving or seeking.

(Authority: Sections 12(c) and 112(a) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 732(a))

Sec.  370.5  What regulations apply?

    The following regulations apply to the expenditure of funds and the 
administration of the program under this part:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 75 (Direct Grant Programs) for purposes of an award 
made under Sec.  370.30(d)(1) when the CAP appropriation equals or 
exceeds $14,000,000.
    (2) 34 CFR part 76 (State-Administered Programs) applies to the 
State and, if the designated agency is a State or local government 
agency, to the designated agency, except for--
    (i) Section 76.103;
    (ii) Sections 76.125 through 76.137;
    (iii) Sections 76.300 through 76.401;
    (iv) Section 76.708;
    (v) Section 76.734; and
    (vi) Section 76.740.
    (3) 34 CFR part 77 (Definitions That Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 81 (General Education Provisions Act-Enforcement) 
applies to both the State and the designated agency, whether or not the 
designated agency is the actual recipient of the CAP grant. As the 
entity that eventually, if not directly, receives the CAP grant funds, 
the designated agency is considered a recipient for purposes of Part 
81.

[[Page 21023]]

    (6) 34 CFR part 82 (New Restrictions on Lobbying).
    (b) Other regulations as follows:
    (1) 2 CFR part 180 (OMB Guidelines to Agencies on Debarment and 
Suspension (Nonprocurement)), as adopted at 2 CFR part 3485.
    (2) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards), as adopted at 2 
CFR part 3474.
    (c) The regulations in this part 370.
    Note to Sec.  370.5: Any funds made available to a State under this 
program that are transferred by a State to a designated agency do not 
make a subaward as that term is defined in 2 CFR 200.330. The 
designated agency is not, therefore, in these circumstances a 
subrecipient, as that term is defined in 2 CFR 200.330.

(Authority: Sections 12(c) and 112 of the Rehabilitation Act, as 
amended; 29 U.S.C. 709(c) and 732)

Sec.  370.6  What definitions apply?

    (a) Definitions in EDGAR at 34 CFR part 77.
    (b) Definitions in 2 CFR part 200, subpart A.
    (c) Other definitions. The following definitions also apply to this 
part:
    Act means the Rehabilitation Act of 1973, as amended.
    Advocacy means pleading an individual's cause or speaking or 
writing in support of an individual. Advocacy may be formal, as in the 
case of a lawyer representing an individual in a court of law or in 
formal administrative proceedings before government agencies (whether 
tribal, State, local, or Federal). Advocacy also may be informal, as in 
the case of a lawyer or non-lawyer representing an individual in 
negotiations, mediation, or informal administrative proceedings before 
government agencies (whether tribal, State, local, or Federal), or as 
in the case of a lawyer or non-lawyer representing an individual's 
cause before private entities or organizations, or government agencies 
(whether tribal, State, local, or Federal). Advocacy may be on behalf 
of--
    (1) A single individual, in which case it is individual advocacy;
    (2) More than one individual or a group of individuals, in which 
case it is systems (or systemic) advocacy, but systems or systemic 
advocacy, for the purposes of this part, may not include class actions, 
or
    (3) Oneself, in which case it is self advocacy.
    American Indian Consortium means that entity described in Sec.  
370.2(a).
    Class action means a formal legal suit on behalf of a group or 
class of individuals filed in a Federal or State court that meets the 
requirements for a ``class action'' under Federal or State law. 
``Systems (or systemic) advocacy'' that does not include filing a 
formal class action in a Federal or State court is not considered a 
class action for purposes of this part.
    Client or client applicant means an individual receiving or seeking 
services under the Act, respectively.
    Designated agency means the agency designated by the Governor under 
Sec.  370.2 or the protection and advocacy system serving the American 
Indian Consortium that is conducting a CAP under this part.
    Mediation means the act or process of using an independent third 
party to act as a mediator, intermediary, or conciliator to settle 
differences or disputes between persons or parties. The third party who 
acts as a mediator, intermediary, or conciliator may not be any entity 
or individual who is connected in any way with the eligible system or 
the agency, entity, or individual with whom the individual with a 
disability has a dispute. Mediation may involve the use of professional 
mediators or any other independent third party mutually agreed to by 
the parties to the dispute.
    Protection and Advocacy System has the meaning set forth at Sec.  
370.2(a).
    Services under the Act means vocational rehabilitation, independent 
living, supported employment, and other similar rehabilitation services 
provided under the Act. For purposes of the CAP, the term ``services 
under the Act'' does not include activities carried out under the 
protection and advocacy program authorized by section 509 of the Act 
(i.e., the Protection and Advocacy of Individual Rights (PAIR) program, 
34 CFR part 381).
    State means, in addition to each of the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, The United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands, except for purposes of 
the allotments under Sec.  370.30, in which case ``State'' does not 
mean or include Guam, American Samoa, the United States Virgin Islands, 
and the Commonwealth of the Northern Mariana Islands.

(Authority: Sections 7(34), 12(c), and 112 of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 705(34), 709(c), and 732)

Sec.  370.7  What shall the designated agency do to make its services 
accessible?

    The designated agency shall provide, as appropriate, the CAP 
services described in Sec.  370.4 in formats that are accessible to 
clients or client-applicants who seek or receive CAP services.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Subpart B--What Requirements Apply to Redesignation?


Sec.  370.10  When do the requirements for redesignation apply?

    (a) The Governor shall redesignate the designated agency for 
carrying out the CAP to an agency that is independent of any agency 
that provides treatment, services, or rehabilitation to individuals 
under the Act if, after August 7, 1998--
    (1) The designated State agency undergoes any change in the 
organizational structure of the agency that results in one or more new 
State agencies or departments, or results in the merger with one or 
more other State agencies or departments, and
    (2) The designated State agency contains an office or unit 
conducting the CAP.
    (3) For purposes of paragraph (a) of this section, the designated 
State agency has the meaning given to that term at 34 CFR 361.5(c)(12) 
and described at 34 CFR 361.13.
    (b) The Governor may not redesignate the agency designated pursuant 
to section 112(c) of the Act and Sec.  370.2(b) without good cause and 
without complying with the requirements of Sec. Sec.  370.10 through 
370.17.
    (c) For purposes of Sec. Sec.  370.10 through 370.17, a 
``redesignation of'' or ``to redesignate'' a designated agency means 
any change in or transfer of the designation of an agency previously 
designated by the Governor to conduct the State's CAP to a new or 
different agency, unit, or organization, including--
    (1) A decision by a designated agency to cancel its existing 
contract with another entity with which it has previously contracted to 
carry out and operate all or part of its responsibilities under the CAP 
(including providing advisory, assistance, or advocacy services to 
eligible clients and client-applicants); or
    (2) A decision by a designated agency not to renew its existing 
contract with another entity with which it has previously contracted. 
Therefore, an agency that is carrying out a State's CAP under a 
contract with a designated agency is considered a designated agency for 
purposes of Sec. Sec.  370.10 through 370.17.
    (d) For purposes of paragraph (b) of this section, a designated 
agency that does not renew a contract for CAP services because it is 
following State

[[Page 21024]]

procurement laws that require contracts to be awarded through a 
competitive bidding process is presumed to have good cause for not 
renewing an existing contract. However, this presumption may be 
rebutted.
    (e) If State procurement laws require a designated agency to award 
a contract through a competitive bidding process, the designated agency 
must hold public hearings on the request for proposal before awarding 
the new contract.

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Sec.  370.11  What requirements apply to a notice of proposed 
redesignation?

    (a) Prior to any redesignation of the agency that conducts the CAP, 
the Governor shall give written notice of the proposed redesignation to 
the designated agency, the State Rehabilitation Council (SRC), and the 
State Independent Living Council (SILC) and publish a public notice of 
the Governor's intention to redesignate. Both the notice to the 
designated agency, the SRC, and the SILC and the public notice must 
include, at a minimum, the following:
    (1) The Federal requirements for the CAP (section 112 of the Act).
    (2) The goals and function of the CAP.
    (3) The name of the current designated agency.
    (4) A description of the current CAP and how it is administered.
    (5) The reason or reasons for proposing the redesignation, 
including why the Governor believes good cause exists for the proposed 
redesignation.
    (6) The effective date of the proposed redesignation.
    (7) The name of the agency the Governor proposes to administer the 
CAP.
    (8) A description of the system that the redesignated (i.e., new) 
agency would administer.
    (b) The notice to the designated agency must--
    (1) Be given at least 30 days in advance of the Governor's written 
decision to redesignate; and
    (2) Advise the designated agency that it has at least 30 days from 
receipt of the notice of proposed redesignation to respond to the 
Governor and that the response must be in writing.
    (c) The notice of proposed redesignation must be published in a 
place and manner that provides the SRC, the SILC, individuals with 
disabilities or their representatives, and the public with at least 30 
days to submit oral or written comments to the Governor.
    (d) Following public notice, public hearings concerning the 
proposed redesignation must be conducted in an accessible format that 
provides individuals with disabilities or their representatives an 
opportunity for comment. The Governor shall maintain a written public 
record of these hearings.
    (e) The Governor shall fully consider any public comments before 
issuing a written decision to redesignate.

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Sec.  370.12  How does a designated agency preserve its right to appeal 
a redesignation?

    (a) To preserve its right to appeal a Governor's written decision 
to redesignate (see Sec.  370.13), a designated agency must respond in 
writing to the Governor within 30 days after it receives the Governor's 
notice of proposed redesignation.
    (b) The designated agency shall send its response to the Governor 
by registered or certified mail, return receipt requested, or other 
means that provides a record that the Governor received the designated 
agency's response.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Sec.  370.13  What are the requirements for a decision to redesignate?

    (a) If, after complying with the requirements of Sec.  370.11, the 
Governor decides to redesignate the designated agency, the Governor 
shall provide to the designated agency a written decision to 
redesignate that includes the rationale for the redesignation. The 
Governor shall send the written decision to redesignate to the 
designated agency by registered or certified mail, return receipt 
requested, or other means that provides a record that the designated 
agency received the Governor's written decision to redesignate.
    (b) If the designated agency submitted to the Governor a timely 
response to the Governor's notice of proposed redesignation, the 
Governor shall inform the designated agency that it has at least 15 
days from receipt of the Governor's written decision to redesignate to 
file a formal written appeal with the Secretary.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Sec.  370.14  How does a designated agency appeal a written decision to 
redesignate?

    (a) A designated agency may appeal to the Secretary a Governor's 
written decision to redesignate only if the designated agency submitted 
to the Governor a timely written response to the Governor's notice of 
proposed redesignation in accordance with Sec.  370.12.
    (b) To appeal to the Secretary a Governor's written decision to 
redesignate, a designated agency shall file a formal written appeal 
with the Secretary within 15 days after the designated agency's receipt 
of the Governor's written decision to redesignate. The date of filing 
of the designated agency's written appeal with the Secretary will be 
determined in a manner consistent with the requirements of 34 CFR 
81.12.
    (c) If the designated agency files a written appeal with the 
Secretary, the designated agency shall send a separate copy of this 
appeal to the Governor by registered or certified mail, return receipt 
requested, or other means that provides a record that the Governor 
received a copy of the designated agency's appeal to the Secretary.
    (d) The designated agency's written appeal to the Secretary must 
state why the Governor has not met the burden of showing that good 
cause for the redesignation exists or has not met the procedural 
requirements under Sec. Sec.  370.11 and 370.13.
    (e) The designated agency's written appeal must be accompanied by 
the designated agency's written response to the Governor's notice of 
proposed redesignation and may be accompanied by any other written 
submissions or documentation the designated agency wishes the Secretary 
to consider.
    (f) As part of its submissions under this section, the designated 
agency may request an informal meeting with the Secretary at which 
representatives of both parties will have an opportunity to present 
their views on the issues raised in the appeal.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Sec.  370.15  What must the Governor of a State do upon receipt of a 
copy of a designated agency's written appeal to the Secretary?

    (a) If the designated agency files a formal written appeal in 
accordance

[[Page 21025]]

with Sec.  370.14, the Governor shall, within 15 days of receipt of the 
designated agency's appeal, submit to the Secretary copies of the 
following:
    (1) The written notice of proposed redesignation sent to the 
designated agency.
    (2) The public notice of proposed redesignation.
    (3) Transcripts of all public hearings held on the proposed 
redesignation.
    (4) Written comments received by the Governor in response to the 
public notice of proposed redesignation.
    (5) The Governor's written decision to redesignate, including the 
rationale for the decision.
    (6) Any other written documentation or submissions the Governor 
wishes the Secretary to consider.
    (7) Any other information requested by the Secretary.
    (b) As part of the submissions under this section, the Governor may 
request an informal meeting with the Secretary at which representatives 
of both parties will have an opportunity to present their views on the 
issues raised in the appeal.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Sec.  370.16  How does the Secretary review an appeal of a 
redesignation?

    (a) If either party requests a meeting under Sec.  370.14(f) or 
Sec.  370.15(b), the meeting is to be held within 30 days of the 
submissions by the Governor under Sec.  370.15, unless both parties 
agree to waive this requirement. The Secretary promptly notifies the 
parties of the date and place of the meeting.
    (b) Within 30 days of the informal meeting permitted under 
paragraph (a) of this section or, if neither party has requested an 
informal meeting, within 60 days of the submissions required from the 
Governor under Sec.  370.15, the Secretary issues to the parties a 
final written decision on whether the redesignation was for good cause.
    (c) The Secretary reviews a Governor's decision based on the record 
submitted under Sec. Sec.  370.14 and 370.15 and any other relevant 
submissions of other interested parties. The Secretary may affirm or, 
if the Secretary finds that the redesignation is not for good cause, 
remand for further findings or reverse a Governor's redesignation.
    (d) The Secretary sends copies of the decision to the parties by 
registered or certified mail, return receipt requested, or other means 
that provide a record of receipt by both parties.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Sec.  370.17  When does a redesignation become effective?

    A redesignation does not take effect for at least 15 days following 
the designated agency's receipt of the Governor's written decision to 
redesignate or, if the designated agency appeals, for at least 5 days 
after the Secretary has affirmed the Governor's written decision to 
redesignate.

(Authority: Sections 12(c) and 112(c)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(1)(B))

Subpart C--What are the Requirements for Requesting a Grant?


Sec.  370.20  What must be included in a request for a grant?

    (a) Each State and the protection and advocacy system serving the 
American Indian Consortium seeking assistance under this part shall 
submit to the Secretary, in writing, at the time and in the manner 
determined by the Secretary to be appropriate, an application that 
includes, at a minimum--
    (1) The name of the designated agency; and
    (2) An assurance that the designated agency meets the independence 
requirement of section 112(c)(1)(A) of the Act and Sec.  370.2(c), or 
that the State is exempted from that requirement under section 
112(c)(1)(A) of the Act and Sec.  370.2(d).
    (b)(1) Each State and the protection and advocacy system serving 
the American Indian Consortium also shall submit to the Secretary an 
assurance that the designated agency has the authority to pursue legal, 
administrative, and other appropriate remedies to ensure the protection 
of the rights of clients or client-applicants within the State or 
American Indian Consortium.
    (2) The authority to pursue remedies described in paragraph (b)(1) 
of this section must include the authority to pursue those remedies 
against the State vocational rehabilitation agency and other 
appropriate State agencies. The designated agency meets this 
requirement if it has the authority to pursue those remedies either on 
its own behalf or by obtaining necessary services, such as legal 
representation, from outside sources.
    (c) Each State and the protection and advocacy system serving the 
American Indian Consortium also shall submit to the Secretary 
assurances that--
    (1) All entities conducting, administering, operating, or carrying 
out programs within the State that provide services under the Act to 
individuals with disabilities in the State will advise all clients and 
client-applicants of the existence of the CAP, the services provided 
under the program, and how to contact the designated agency;
    (2) The designated agency will meet each of the requirements in 
this part; and
    (3) The designated agency will provide the Secretary with the 
annual report required by section 112(g)(4) of the Act and Sec.  
370.44.
    (d) To allow a designated agency to receive direct payment of funds 
under this part, a State or the protection and advocacy system serving 
the American Indian Consortium must provide to the Secretary, as part 
of its application for assistance, an assurance that direct payment to 
the designated agency is not prohibited by or inconsistent with State 
or tribal law, regulation, or policy.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c) and 112(b) and (f) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(b) and (f))

Subpart D--How Does the Secretary Allocate and Reallocate Funds to a 
State?


Sec.  370.30  How does the Secretary allocate funds?

    (a) After reserving funds required under paragraphs (c) and (d) of 
this section, the Secretary shall allot the remainder of the sums 
appropriated for each fiscal year under this section among the States 
on the basis of relative population of each State, except that no such 
entity shall receive less than $50,000.
    (b) The Secretary allocates $30,000 each, unless the provisions of 
section 112(e)(1)(D) of the Act are applicable, to American Samoa, 
Guam, the Virgin Islands, and the Commonwealth of Northern Mariana 
Islands.
    (c) The Secretary shall reserve funds, from the amount appropriated 
to carry out this part, to make a grant to the protection and advocacy 
system serving the American Indian Consortium to provide services in 
accordance with this part. The amount of the grant to the protection 
and advocacy system serving the American Indian Consortium shall be the 
same amount as is provided to a territory under paragraph (b) of this 
section.
    (d)(1) For any fiscal year for which the amount appropriated equals 
or exceeds $14,000,000, the Secretary may reserve not less than 1.8 
percent and not more

[[Page 21026]]

than 2.2 percent of such amount to provide a grant for training and 
technical assistance for the programs established under this part.
    (2) All training and technical assistance shall be coordinated with 
activities provided under 34 CFR 381.22.
    (3) The Secretary shall make a grant pursuant to paragraph (d)(1) 
of this section to an entity that has experience in or knowledge 
related to the provision of services authorized under this part.
    (4) An entity receiving a grant under paragraph (d)(1) of this 
section shall provide training and technical assistance to the 
designated agencies or entities carrying out the CAP to assist them in 
improving the provision of services authorized under this part and the 
administration of the program.
    (e)(1) Unless prohibited or otherwise provided by State or tribal 
law, regulation, or policy, the Secretary pays to the designated 
agency, from the State allotment under paragraph (a), (b), or (c) of 
this section, the amount specified in the State's or the eligible 
protection and advocacy system's approved request. Because the 
designated agency, including the protection and advocacy system serving 
the American Indian Consortium, is the eventual, if not the direct, 
recipient of the CAP funds, 34 CFR part 81 and 2 CFR part 200 apply to 
the designated agency, whether or not the designated agency is the 
actual recipient of the CAP grant.
    (2) Notwithstanding the grant made to the protection and advocacy 
system serving the American Indian Consortium under paragraph (c) of 
this section, the State remains the grantee for purposes of 34 CFR part 
76 and 2 CFR part 200 because it is the State that submits an 
application for and receives the CAP grant. In addition, both the State 
and the designated agency are considered recipients for purposes of 34 
CFR part 81.

(Authority: Sections 12(c) and 112(b) and (e) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 732(b) and (e))

Sec.  370.31  How does the Secretary reallocate funds?

    (a) The Secretary reallocates funds in accordance with section 
112(e)(2) of the Act.
    (b) A designated agency shall inform the Secretary at least 45 days 
before the end of the fiscal year for which CAP funds were received 
whether the designated agency is making available for reallotment any 
of those CAP funds that it will be unable to obligate in that fiscal 
year or the succeeding fiscal year.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c), 19, and 112(e)(2) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c), 716, and 732(e)(2))

Subpart E--What Post-Award Conditions Must Be Met by a Designated 
Agency?


Sec.  370.40  What are allowable costs?

    (a) The designated agency, including the eligible protection and 
advocacy system serving the American Indian Consortium, shall apply the 
regulations at 2 CFR part 200.
    (b) Consistent with the program activities listed in Sec.  370.4, 
the cost of travel in connection with the provision to a client or 
client applicant of assistance under this program is allowable, in 
accordance with 2 CFR part 200. The cost of travel includes the cost of 
travel for an attendant if the attendant must accompany the client or 
client applicant.
    (c)(1) The State and the designated agency are accountable, both 
jointly and severally, to the Secretary for the proper use of funds 
made available under this part. However, the Secretary may choose to 
recover funds under the procedures in 34 CFR part 81 from either the 
State or the designated agency, or both, depending on the circumstances 
of each case.
    (2) For purposes of the grant made under this part to the 
protection and advocacy system serving the American Indian Consortium, 
such entity will be solely accountable to the Secretary for the proper 
use of funds made available under this part. If the Secretary 
determines it necessary, the Secretary may recover funds from the 
protection and advocacy system serving the American Indian Consortium 
pursuant to the procedures in 34 CFR part 81.

(Authority: Sections 12(c) and 112(c)(3) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 732(c)(3))

Sec.  370.41  What conflict of interest provision applies to employees 
of a designated agency?

    (a) Except as permitted by paragraph (b) of this section, an 
employee of a designated agency, or of an entity or individual under 
contract with a designated agency, who carries out any CAP duties or 
responsibilities, while so employed, may not--
    (1) Serve concurrently as a staff member of, consultant to, or in 
any other capacity within, any other rehabilitation project, program, 
or community rehabilitation program receiving assistance under the Act 
in the State; or
    (2) Provide any services under the Act, other than CAP and PAIR 
services.
    (b) An employee of a designated agency under contract with a 
designated agency, may--
    (1) Receive a traineeship under section 302 of the Act;
    (2) Provide services under the PAIR program;
    (3) Represent the CAP on any board or council (such as the SRC) if 
CAP representation on the board or council is specifically permitted or 
mandated by the Act; and
    (4) Consult with policymaking and administrative personnel in State 
and local rehabilitation programs, projects, and community 
rehabilitation programs, if consultation with the designated agency is 
specifically permitted or mandated by the Act.

(Authority: Sections 12(c) and 112(g)(1) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 732(g)(1))

Sec.  370.42  What access must the CAP be afforded to policymaking and 
administrative personnel?

    The CAP must be afforded reasonable access to policymaking and 
administrative personnel in State and local rehabilitation programs, 
projects, and community rehabilitation programs. One way in which the 
CAP may be provided that access would be to include the director of the 
designated agency among the individuals to be consulted on matters of 
general policy development and implementation, as required by section 
101(a)(16) of the Act.

(Authority: Sections 12(c), 101(a)(16), and 112(g)(2) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c), 
721(a)(16), and 732(g)(2))

Sec.  370.43  What requirement applies to the use of mediation 
procedures?

    (a) Each designated agency shall implement procedures designed to 
ensure that, to the maximum extent possible, good faith negotiations 
and mediation procedures are used before resorting to formal 
administrative or legal remedies. In designing these procedures, the 
designated agency may take into account its level of resources.
    (b) For purposes of this section, mediation may involve the use of 
professional mediators, other independent third parties mutually agreed 
to by the parties to the dispute, or an employee of the designated 
agency who--
    (1) Is not assigned to advocate for or otherwise represent or is 
not involved with advocating for or otherwise representing the client 
or client applicant who is a party to the mediation; and

[[Page 21027]]

    (2) Has not previously advocated for or otherwise represented or 
been involved with advocating for or otherwise representing that same 
client or client applicant.

(Authority: Section 112(g)(3) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 732(g)(3))

Sec.  370.44  What reporting requirement applies to each designated 
agency?

    In addition to the program and fiscal reporting requirements in 34 
CFR 76.720 and 2 CFR 200.327 that are applicable to this program, each 
designated agency shall submit to the Secretary, no later than 90 days 
after the end of each fiscal year, an annual report on the operation of 
its CAP during the previous year, including a summary of the work done 
and the uniform statistical tabulation of all cases handled by the 
program. The annual report must contain information on--
    (a) The number of requests received by the designated agency for 
information on services and benefits under the Act and title I of the 
ADA;
    (b) The number of referrals to other agencies made by the 
designated agency and the reason or reasons for those referrals;
    (c) The number of requests for advocacy services received by the 
designated agency from clients or client-applicants;
    (d) The number of requests for advocacy services from clients or 
client-applicants that the designated agency was unable to serve;
    (e) The reasons that the designated agency was unable to serve all 
of the requests for advocacy services from clients or client-
applicants; and
    (f) Any other information that the Secretary may require.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: Sections 12(c) and 112(g)(4) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 732(g)(4))

Sec.  370.45  What limitation applies to the pursuit of legal remedies?

    A designated agency may not bring any class action in carrying out 
its responsibilities under this part.

(Authority: Section 112(d) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 732(d))

Sec.  370.46  What consultation requirement applies to a Governor of a 
State?

    In designating a client assistance agency under Sec.  370.2, 
redesignating a client assistance agency under Sec.  370.10, and 
carrying out the other provisions of this part, the Governor shall 
consult with the director of the State vocational rehabilitation agency 
(or, in States with both a general agency and an agency for the blind, 
the directors of both agencies), the head of the developmental 
disability protection and advocacy agency, and representatives of 
professional and consumer organizations serving individuals with 
disabilities in the State.

(Authority: Section 112(c)(2) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 732(c)(2))

Sec.  370.47  What is program income and how may it be used?

    (a)(1) Definition. Program income means gross income earned by the 
designated agency that is directly generated by an activity supported 
under this part.
    (2) Funds received through the transfer of Social Security 
Administration payments from the designated State unit, as defined in 
34 CFR 361.5(c)(13), in accordance with 34 CFR 361.63(c)(2) will be 
treated as program income received under this part.
    (b) Use of program income. (1) Program income, whenever earned or 
received, must be used for the provision of services authorized under 
Sec.  370.4.
    (2) Designated Agencies are authorized to treat program income as--
    (i) A deduction from total allowable costs charged to a Federal 
grant, in accordance with 2 CFR 200.307(e)(1); or
    (ii) An addition to the grant funds to be used for additional 
allowable program expenditures, in accordance with 2 CFR 200.307(e)(2).

(Authority: Sections 12(c) and 108 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c), 728, and 3474)

Sec.  370.48  When must grant funds and program income be obligated?

    Any Federal funds, including reallotted funds, that are 
appropriated for a fiscal year to carry out the activities under this 
part that are not obligated or expended by the designated agency prior 
to the beginning of the succeeding fiscal year, and any program income 
received during a fiscal year that is not obligated or expended by the 
designated agency prior to the beginning of the succeeding fiscal year 
in which the program income was received, remain available for 
obligation and expenditure by the designated agency during that 
succeeding fiscal year in accordance with section 19 of the Act and 34 
CFR 76.709.


(Approved by the Office of Management and Budget under control number 
1820-0520)

(Authority: sections 12(c) and 19 of the Rehabilitation Act of 1973, 
as amended; 29 U.S.C. 709(c) and 716)

Sec.  370.49  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) All personal information about individuals served by any 
designated agency under this part, including lists of names, addresses, 
photographs, and records of evaluation, must be held strictly 
confidential.
    (b) The designated agency's use of information and records 
concerning individuals must be limited only to purposes directly 
connected with the CAP, including program evaluation activities. Except 
as provided in paragraphs (c) and (e) of this section, this information 
may not be disclosed, directly or indirectly, other than in the 
administration of the CAP, unless the consent of the individual to whom 
the information applies, or his or her parent, legal guardian, or other 
legally authorized representative or advocate (including the 
individual's advocate from the designated agency), has been obtained in 
writing. A designated agency may not produce any report, evaluation, or 
study that reveals any personally identifying information without the 
written consent of the individual or his or her representative.
    (c) Except as limited in paragraphs (d) and (e) of this section, 
the Secretary or other Federal or State officials responsible for 
enforcing legal requirements are to have complete access to all--
    (1) Records of the designated agency that receives funds under this 
program; and
    (2) All individual case records of clients served under this part 
without the consent of the client.
    (d) For purposes of conducting any periodic audit, preparing or 
producing any report, or conducting any evaluation of the performance 
of the CAP established or assisted under this part, the Secretary does 
not require the designated agency to disclose the identity of, or any 
other personally identifiable information related to, any individual 
requesting assistance under the CAP.
    (e) Notwithstanding paragraph (d) of this section and consistent 
with paragraph (f) of this section, a designated agency shall disclose 
to the Secretary, if the Secretary so requests, the identity of, or any 
other personally identifiable information (i.e., name, address, 
telephone number, social security number, or any other official code or 
number by which an individual may be readily identified) related to,

[[Page 21028]]

any individual requesting assistance under the CAP if--
    (1) An audit, evaluation, monitoring review, State plan assurance 
review, or other investigation produces reliable evidence that there is 
probable cause to believe that the designated agency has violated its 
legislative mandate or misused Federal funds; or
    (2) The Secretary determines that this information may reasonably 
lead to further evidence that is directly related to alleged misconduct 
of the designated agency.
    (f) In addition to the protection afforded by paragraph (d) of this 
section, the right of a person or designated agency not to produce 
documents or disclose information to the Secretary is governed by the 
common law of privileges, as interpreted by the courts of the United 
States.

(Authority: Sections 12(c) and 112(g)(4) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 732(g)(4))


0
4. Part 371 is revised to read as follows:

PART 371--AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES

Subpart A--General
Sec.
371.1 What is the American Indian Vocational Rehabilitation Services 
program?
371.2 Who is eligible for assistance under this program?
371.3 What types of projects are authorized under this program?
371.4 What is the length of the project period under this program?
371.5 What regulations apply to this program?
371.6 What definitions apply to this program?
Subpart B--Training and Technical Assistance
371.10 What are the requirements for funding training and technical 
assistance under this subpart?
371.11 How does the Secretary use these funds to provide training 
and technical assistance?
371.12 How does the Secretary make an award?
371.13 How does the Secretary determine funding priorities?
371.14 How does the Secretary evaluate an application?
Subpart C--How Does One Apply for a Grant?
371.20 What are the application procedures for this program?
371.21 What are the special application requirements related to the 
projects funded under this part?
Subpart D--How Does the Secretary Make a Grant?
371.31 How are grants awarded?
371.32 What other factors does the Secretary consider in reviewing 
an application?
Subpart E--What Conditions Apply to a Grantee Under this Program?
371.40 What are the matching requirements?
371.41 What are allowable costs?
371.42 How are services to be administered under this program?
371.43 What other special conditions apply to this program?
371.44 What are the special requirements pertaining to the 
protection, use, and release of personal information?
371.45 What notice must be given about the Client Assistance Program 
(CAP)?

    Authority: Sections 12(c) and 121 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741, unless otherwise noted.

Subpart A--General


Sec.  371.1  What is the American Indian Vocational Rehabilitation 
Services program?

    This program is designed to provide vocational rehabilitation 
services, including culturally appropriate services, to American 
Indians with disabilities who reside on or near Federal or State 
reservations, consistent with such eligible individual's strengths, 
resources, priorities, concerns, abilities, capabilities, interests, 
and informed choice, so that such individual may prepare for, and 
engage in, high-quality employment that will increase opportunities for 
economic self-sufficiency.

(Authority: Section 121(a) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 741(a))

Sec.  371.2  Who is eligible for assistance under this program?

    (a) Applications may be made only by Indian tribes and consortia of 
those Indian tribes located on Federal and State reservations.
    (1) The applicant for the grant must be
    (i) The governing body of an Indian tribe, either on behalf the 
Indian tribe or on behalf of a consortium of Indian tribes; or
    (ii) A tribal organization that is a separate legal organization 
from an Indian tribe.
    (2) In order to receive a grant under this section, a tribal 
organization that is not a governing body of an Indian tribe must have 
as one of its functions the vocational rehabilitation of American 
Indians with disabilities.
    (3) If a grant is made to the governing body of an Indian tribe, a 
consortium of those governing bodies or a tribal organization to 
perform services benefiting more than one Indian tribe, the approval of 
each such Indian tribe shall be a prerequisite to the making of such a 
grant.
    (b) Applications for awards under Subpart B may be made by State, 
local or tribal governments, non-profit organizations, or institutions 
of higher education.

(Authority: Sections 12(c) and 121(a) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741(a))

Sec.  371.3  What types of projects are authorized under this program?

    The American Indian Vocational Rehabilitation Services program 
provides financial assistance for the establishment and operation of 
tribal vocational rehabilitation services programs for American Indians 
with disabilities who reside on or near Federal or State reservations.

(Authority: Sections 12(c) and 121(a) of the Rehabilitation Act of 
1973, as amended Act, 29 U.S.C. 709(c) and 741(a)

Sec.  371.4  What is the length of the project period under this 
program?

    The Secretary approves a project period of up to sixty months.

(Authority: Sections 12(c) and 121(b)(3) of the Rehabilitation Act 
of 1973, as amended, 29 U.S.C. 709(c) and 121(b)(3))

Sec.  371.5  What regulations apply to this program?

    The following regulations apply to this program--
    (a) The regulations in this part 371.
    (b) 2 CFR part 180 (OMB Guidelines to Agencies on Debarment and 
Suspension (Nonprocurement)), as adopted at 2 CFR part 3485;
    (c) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards) as adopted at 2 
CFR part 3474.
    (d) 34 CFR part 75 Direct Grant Programs
    (e) 34 CFR part 77 Definitions that Apply to Department Regulations
    (f) 34 CFR part 81 General Education Provisions Act--Enforcement
    (g) 34 CFR part 82 New Restrictions on Lobbying
    (h) 34 CFR part 84 Governmentwide Requirements for Drug-Free 
Workplace

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Sec.  371.6  What definitions apply to this program?

    (a) The definitions of terms included in the applicable regulations 
listed in Sec.  371.5;

[[Page 21029]]

    (b) The following definitions also apply to this program--
    Act means the Rehabilitation Act of 1973, as amended.
    Assessment for determining eligibility and vocational 
rehabilitation needs means as appropriate in each case--
    (1)(i) A review of existing data--
    (A) To determine whether an individual is eligible for vocational 
rehabilitation services; and
    (B) To assign priority for an order of selection described in an 
approved plan or the approved grant application; and
    (ii) To the extent necessary, the provision of appropriate 
assessment activities to obtain necessary additional data to make such 
determination and assignment;
    (2) To the extent additional data is necessary to make a 
determination of the employment outcomes, and the nature and scope of 
vocational rehabilitation services, to be included in the 
individualized plan for employment of an eligible individual, a 
comprehensive assessment to determine the unique strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and informed 
choice, including the need for supported employment, of the eligible 
individual, which comprehensive assessment--
    (i) Is limited to information that is necessary to identify the 
rehabilitation needs of the individual and to develop the 
individualized plan for employment of the eligible individual;
    (ii) Uses, as a primary source of such information, to the maximum 
extent possible and appropriate and in accordance with confidentiality 
requirements--
    (A) Existing information obtained for the purposes of determining 
the eligibility of the individual and assigning priority for an order 
of selection described in an approved plan or the approved grant 
application for the individual; and
    (B) Information that can be provided by the individual and, if 
appropriate, by the family of the individual;
    (iii) May include, to the degree needed to make such a 
determination, an assessment of the personality, interests, 
interpersonal skills, intelligence and related functional capacities, 
educational achievements, work experience, vocational aptitudes, 
personal and social adjustments, and employment opportunities of the 
individual, and the medical, psychiatric, psychological, and other 
pertinent vocational, educational, cultural, social, recreational, and 
environmental factors, that affect the employment and rehabilitation 
needs of the individual;
    (iv) May include, to the degree needed, an appraisal of the 
patterns of work behavior of the individual and services needed for the 
individual to acquire occupational skills, and to develop work 
attitudes, work habits, work tolerance, and social and behavior 
patterns necessary for successful job performance, including the use of 
work in real job situations to assess and develop the capacities of the 
individual to perform adequately in a work environment; and
    (v) To the maximum extent possible, relies on information obtained 
from experiences in integrated employment settings in the community, 
and other integrated community settings;
    (3) Referral, for the provision of rehabilitation technology 
services to the individual, to assess and develop the capacities of the 
individual to perform in a work environment; and
    (4) An exploration of the individual's abilities, capabilities, and 
capacity to perform in work situations, which must be assessed 
periodically during trial work experiences, including experiences in 
which the individual is provided appropriate supports and training.

(Authority: Sections 7(2) and 12(c) of the Rehabilitation Act of 
1973, as amended, 29 U.S.C. 705(2) and 709(c))


    Community rehabilitation program means a program that provides 
directly, or facilitates providing, one or more of the following 
vocational rehabilitation services to individuals with disabilities to 
enable them to maximize their opportunities for employment, including 
career advancement--
    (1) Medical, psychiatric, psychological, social, and vocational 
services that are provided under one management;
    (2) Testing, fitting, or training in the use of prosthetic and 
orthotic devices;
    (3) Recreational therapy;
    (4) Physical and occupational therapy;
    (5) Speech, language, and hearing therapy;
    (6) Psychiatric, psychological, and social services, including 
positive behavior management;
    (7) Assessment for determining eligibility and vocational 
rehabilitation needs;
    (8) Rehabilitation technology;
    (9) Job development, placement, and retention services;
    (10) Evaluation or control of specific disabilities;
    (11) Orientation and mobility services for individuals who are 
blind;
    (12) Extended employment;
    (13) Psychosocial rehabilitation services;
    (14) Supported employment services and extended services;
    (15) Customized employment;
    (16) Services to family members if necessary to enable the 
applicant or eligible individual to achieve an employment outcome;
    (17) Personal assistance services; or
    (18) Services similar to the services described in paragraphs (1) 
through (17) of this definition.

(Authority: Sections 7(4) and 12(c) of the Rehabilitation Act of 
1973, as amended, 29 U.S.C. 705(4) and 709(c))


    Comparable services and benefits means--
    (1) Services and benefits, including auxiliary aids and services, 
that are--
    (i) Provided or paid for, in whole or in part, by other Federal, 
State, or local public agencies, by health insurance, or by employee 
benefits;
    (ii) Available to the individual at the time needed to ensure the 
progress of the individual toward achieving the employment outcome in 
the individual's individualized plan for employment; and
    (iii) Commensurate to the services that the individual would 
otherwise receive from the Tribal Vocational Rehabilitation unit.
    (2) For the purposes of this definition, comparable benefits do not 
include awards and scholarships based on merit.

(Authority: Sections 12(c) and 101(a)(8)(A) of the Rehabilitation 
Act of 1973, as amended, 29 U.S.C. 709(c) and 721(a)(8)(A))


    Competitive integrated employment means work--
    (1) That is performed on a full-time or part-time basis (including 
self-employment); and for which an individual is compensated at a rate 
that--
    (i) Shall not be less than the higher of the rate specified in 
section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(a)(1)), or the rate specified in the applicable State or local 
minimum wage law; and
    (ii) Is not less than the customary rate paid by the employer for 
the same or similar work performed by other employees who are not 
individuals with disabilities, and who are similarly situated in 
similar occupations by the same employer and who have similar training, 
experience, and skills; or
    (iii) In the case of an individual who is self-employed, yields an 
income that is comparable to the income received by other individuals 
who are not individuals with disabilities, and who are self-employed in 
similar occupations or on similar tasks and who

[[Page 21030]]

have similar training, experience, and skills; and
    (iv) Is eligible for the level of benefits provided to other 
employees; and
    (2) That is at a location typically found in the community and 
where the employee with a disability interacts for the purpose of 
performing the duties of the position with other employees within the 
particular work unit, employees within the entire work site, and, as 
appropriate to the work performed, other persons (e.g., customers and 
vendors), who are not individuals with disabilities (not including 
supervisory personnel or individuals who are providing services to such 
employee) to the same extent that employees who are not individuals 
with disabilities and who are in comparable positions interact with 
these persons; and
    (3) That, as appropriate, presents opportunities for advancement 
that are similar to those for other employees who are not individuals 
with disabilities and who have similar positions.

(Authority: Sections 7(5) and 12(c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 705(5) and 709(c))


    Consortium means two or more eligible governing bodies of Indian 
tribes that apply for an award under this program by either:
    (1) Designating one governing body to apply for the grant; or
    (2) Establishing and designating a tribal organization to apply for 
a grant.

(Authority: Sections 12(c) and 121 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741(a))


    Customized employment means competitive integrated employment, for 
an individual with a significant disability, that is based on an 
individualized determination of the unique strengths, needs, and 
interests of the individual with a significant disability, is designed 
to meet the specific abilities of the individual with a significant 
disability and the business needs of the employer, and is carried out 
through flexible strategies, such as--
    (1) Job exploration by the individual;
    (2) Working with an employer to facilitate placement, including--
    (i) Customizing a job description based on current employer needs 
or on previously unidentified and unmet employer needs; and
    (ii) Developing a set of job duties, a work schedule and job 
arrangement, and specifics of supervision (including performance 
evaluation and review), and determining a job location;
    (3) Representation by a professional chosen by the individual, or 
self-representation of the individual, in working with an employer to 
facilitate placement; and
    (4) Providing services and supports at the job location.

(Authority: Sections 7(7) and 12(c) of the Rehabilitation Act of 
1973, as amended, 29 U.S.C. 705(7) and 709(c))


    Eligible individual means an applicant for vocational 
rehabilitation services who meets the eligibility requirements of 
Section 102(a)(1) of the Act.

(Authority: Sections 7(20)(A), 12(c), and 102(a)(1) of the 
Rehabilitation Act of 1973, as amended, 29 U.S.C. 705(20)(A), 
709(c), and 722)


    Employment outcome means, with respect to an individual, entering, 
advancing or retaining full-time or, if appropriate, part-time 
competitive integrated employment, including customized employment, 
self-employment, telecommuting, business ownership, or supported 
employment, that is consistent with an individual's unique strengths, 
resources, priorities, concerns, abilities, capabilities, interests, 
and informed choice.

(Authority: Sections 7(11) and 12(c) of the Rehabilitation Act of 
1973, as amended, 29 U.S.C. 705(11), and 709(c))


    Family member for the purposes of receiving vocational 
rehabilitation services means an individual--
    (1) Who either--
    (i) Is a relative or guardian of an applicant or eligible 
individual; or
    (ii) Lives in the same household as an applicant or eligible 
individual;
    (2) Who has a substantial interest in the well-being of that 
individual; and
    (3) Whose receipt of vocational rehabilitation services is 
necessary to enable the applicant or eligible individual to achieve an 
employment outcome.

(Authority: Sections 12(c) and 103(a)(19) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 723(a)(19))


    Governing bodies of Indian tribes means those duly elected or 
appointed representatives of an Indian tribe or of an Alaskan native 
village. These representatives must have the authority to enter into 
contracts, agreements, and grants on behalf of their constituency.

(Authority: Sections 12(c) and 121(a) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741(a))


    Indian; American Indian; Indian American; Indian tribe means--
    (1) Indian, American Indian, and Indian American mean an individual 
who is a member of an Indian tribe and includes a Native and a 
descendant of a Native, as such terms are defined in subsections (b) 
and (r) of section 3 of the Alaska Native Claims Settlement Act (43 
U.S.C. 1602).
    (2) Indian tribe means any Federal or State Indian tribe, band, 
rancheria, pueblo, colony, or community, including any Alaskan native 
village or regional village corporation (as defined in or established 
pursuant to the Alaska Native Claims Settlement Act) and a tribal 
organization (as defined in section 4(1) of the Indian Self-
Determination and Education Assistance Act (25 U.S.C. 450(b)(1)) and 
this section.

(Authority: Section 7(19) of the Rehabilitation Act of 1973, as 
amended, 29 U.S.C. 705(19))


    Individual with a disability means--
    In general any individual who--
    (1) Who has a physical or mental impairment;
    (2) Whose impairment constitutes or results in a substantial 
impediment to employment; and
    (3) Who can benefit in terms of an employment outcome from the 
provision of vocational rehabilitation services.

(Authority: Section 7(20)(A) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 705(20)(A))


    Individual with a significant disability means--
    In general an individual with a disability--
    (1) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, respiratory or pulmonary dysfunction, 
intellectual disability, mental illness, multiple sclerosis, muscular 
dystrophy, musculo-skeletal disorders, neurological disorders 
(including stroke and epilepsy), spinal cord conditions (including 
paraplegia and quadriplegia), sickle cell anemia, specific learning 
disability, end-stage renal disease, or another disability or 
combination of disabilities determined on the basis of an assessment 
for determining eligibility and vocational rehabilitation needs to

[[Page 21031]]

cause comparable substantial functional limitation.

(Authority: Section 7(21) of the Rehabilitation Act of 1973, as 
amended, 29 U.S.C. 705(21))


    Maintenance means monetary support provided to an individual for 
expenses, such as food, shelter, and clothing, that are in excess of 
the normal expenses of the individual and that are necessitated by the 
individual's participation in an assessment for determining eligibility 
and vocational rehabilitation needs or the individual's receipt of 
vocational rehabilitation services under an individualized plan for 
employment.

(Authority: Sections 12(c) and 103(a)(7) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 723(a)(7))


    Examples: The following are examples of expenses that would meet 
the definition of maintenance. The examples are illustrative, do not 
address all possible circumstances, and are not intended to substitute 
for individual counselor judgment.
    Example 1: The cost of a uniform or other suitable clothing that is 
required for an individual's job placement or job-seeking activities.
    Example 2: The cost of short-term shelter that is required in order 
for an individual to participate in assessment activities or vocational 
training at a site that is not within commuting distance of an 
individual's home.
    Example 3: The initial one-time costs, such as a security deposit 
or charges for the initiation of utilities, that are required in order 
for an individual to relocate for a job placement.
    Physical and mental restoration services means--
    (1) Corrective surgery or therapeutic treatment that is likely, 
within a reasonable period of time, to correct or modify substantially 
a stable or slowly progressive physical or mental impairment that 
constitutes a substantial impediment to employment;
    (2) Diagnosis of and treatment for mental or emotional disorders by 
qualified personnel in accordance with State licensure laws;
    (3) Dentistry;
    (4) Nursing services;
    (5) Necessary hospitalization (either inpatient or outpatient care) 
in connection with surgery or treatment and clinic services;
    (6) Drugs and supplies;
    (7) Prosthetic and orthotic devices;
    (8) Eyeglasses and visual services, including visual training, and 
the examination and services necessary for the prescription and 
provision of eyeglasses, contact lenses, microscopic lenses, telescopic 
lenses, and other special visual aids prescribed by personnel that are 
qualified in accordance with State licensure laws;
    (9) Podiatry;
    (10) Physical therapy;
    (11) Occupational therapy;
    (12) Speech or hearing therapy;
    (13) Mental health services;
    (14) Treatment of either acute or chronic medical complications and 
emergencies that are associated with or arise out of the provision of 
physical and mental restoration services, or that are inherent in the 
condition under treatment;
    (15) Special services for the treatment of individuals with end-
stage renal disease, including transplantation, dialysis, artificial 
kidneys, and supplies; and
    (16) Other medical or medically related rehabilitation services.
    (17) Services reflecting the cultural background of the American 
Indian being served, including treatment provided by native healing 
practitioners in accordance with 34 CFR 371.41(a)(2).

(Authority: Sections 12(c), 103(a)(6), and 121(b)(1)(B) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c), 723(a)(6), 
and 741(b)(1)(B))


    Physical or mental impairment means--
    (1) Any physiological disorder or condition, cosmetic 
disfigurement, or anatomical loss affecting one or more of the 
following body systems: Neurological, musculo-skeletal, special sense 
organs, respiratory (including speech organs), cardiovascular, 
reproductive, digestive, genitourinary, hemic and lymphatic, skin, and 
endocrine; or
    (2) Any mental or psychological disorder such as intellectual or 
developmental disability, organic brain syndrome, emotional or mental 
illness, and specific learning disabilities.

(Authority: Sections 7(20)(A) and 12(c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 705(20)(A) and 709(c))


    Post-employment services means one or more of the services that are 
provided subsequent to the achievement of an employment outcome and 
that are necessary for an individual to maintain, regain, or advance in 
employment, consistent with the individual's unique strengths, 
resources, priorities, concerns, abilities, capabilities, interests, 
and informed choice.

(Authority: Sections 12(c) and 103(a)(18) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c)) and 723(a)(18))


    Note to definition of post-employment services: Post-employment 
services are intended to ensure that the employment outcome remains 
consistent with the individual's unique strengths, resources, 
priorities, concerns, abilities, capabilities, interests, and 
informed choice. These services are available to meet rehabilitation 
needs that do not require a complex and comprehensive provision of 
services and, thus, should be limited in scope and duration. If more 
comprehensive services are required, then a new rehabilitation 
effort should be considered. Post-employment services are to be 
provided under an amended individualized plan for employment; thus, 
a re-determination of eligibility is not required. The provision of 
post-employment services is subject to the same requirements in this 
part as the provision of any other vocational rehabilitation 
service. Post-employment services are available to assist an 
individual to maintain employment, e.g., the individual's employment 
is jeopardized because of conflicts with supervisors or co-workers, 
and the individual needs mental health services and counseling to 
maintain the employment; or the individual requires assistive 
technology to maintain the employment; to regain employment, e.g., 
the individual's job is eliminated through reorganization and new 
placement services are needed; and to advance in employment, e.g., 
the employment is no longer consistent with the individual's unique 
strengths, resources, priorities, concerns, abilities, capabilities, 
interests, and informed choice.

    Representatives of the Tribal Vocational Rehabilitation program 
means, consistent with 34 CFR 371.21(b), those individuals specifically 
responsible for determining eligibility, the nature and scope of 
vocational rehabilitation services, and the provision of those 
services.

(Authority: Sections 12(c) and 121(b)(1)(D) of the Rehabilitation 
Act of 1973, as amended, 29 U.S.C. 709(c) and 741(b)(1)(D))


    Reservation means a Federal or State Indian reservation, public 
domain Indian allotment, former Indian reservation in Oklahoma, land 
held by incorporated Native groups, regional corporations and village 
corporations under the provisions of the Alaska Native Claims 
Settlement Act; or a defined area of land recognized by a State or the 
Federal Government where there is a concentration of tribal members and 
on which the tribal government is providing structured activities and 
services.

(Authority: Sections 12(c) and 121(e) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741(e))


    Subsistence means a form of self-employment in which individuals 
produce, using culturally relevant and traditional methods, goods or 
services that are predominantly consumed by their own household or used 
for noncommercial customary trade or barter and that constitute an 
important basis for the worker's livelihood.

[[Page 21032]]


(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))


    Substantial impediment to employment means that a physical or 
mental impairment (in light of attendant medical, psychological, 
vocational, educational, communication, and other related factors) 
hinders an individual from preparing for, entering into, engaging in, 
advancing in or retaining employment consistent with the individual's 
abilities and capabilities.

(Authority: Sections 7(20)(A) and 12(c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 705(20)(A) and 709(c))


    Supported employment means
    (1) Competitive integrated employment, including customized 
employment, or employment in an integrated work setting in which an 
individual with a most significant disability is working on a short-
term basis toward competitive integrated employment that is 
individualized and customized, consistent with the unique strengths, 
abilities, interests, and informed choice of the individual, including 
with ongoing support services for individuals with the most significant 
disabilities--
    (i) For whom competitive integrated employment has not historically 
occurred, or for whom competitive integrated employment has been 
interrupted or intermittent as a result of a significant disability; 
and
    (ii) Who, because of the nature and severity of their disability, 
need intensive supported employment services and extended services 
after the transition from support provided by the Tribal Vocational 
Rehabilitation Unit, in order to perform this work; or
    (2) Transitional employment for individuals with the most 
significant disabilities due to mental illness.
    (3) Short-term basis. For purposes of this part, an individual with 
the most significant disabilities, whose supported employment in an 
integrated setting does not satisfy the criteria of competitive 
integrated employment, is considered to be working on a short-term 
basis toward competitive integrated employment so long as the 
individual can reasonably anticipate achieving competitive integrated 
employment within six months of achieving an employment outcome of 
supported employment.

(Authority: Sections 7(38) and 12(c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 705(38) and 709(c))


    Supported employment services means ongoing support services, 
including customized employment, and other appropriate services needed 
to support and maintain an individual with a most significant 
disability in supported employment that are provided by the Tribal 
Vocational Rehabilitation Unit--
    (1) Singly or in combination and are organized and made available 
in such a way as to assist an eligible individual to achieve 
competitive integrated employment;
    (2) Based on a determination of the needs of an eligible 
individual, as specified in an individualized plan for employment;
    (3) For a period of time not to exceed 24 months, unless under 
special circumstances the eligible individual and the rehabilitation 
counselor or coordinator jointly agree to extend the time to achieve 
the employment outcome identified in the individualized plan for 
employment; and
    (4) Following transition, as post-employment services that are 
unavailable from an extended services provider and that are necessary 
to maintain or regain the job placement or advance in employment.

(Authority: Sections 7(39) and 12(c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 705(39) and 709(c))


    Transition services means a coordinated set of activities for an 
individual with a disability designed within an outcome-oriented 
process that promotes movement from school to post-school activities, 
including postsecondary education, vocational training, integrated 
employment (including supported employment), continuing and adult 
education, adult services, independent living, or community 
participation. The coordinated set of activities must be based upon the 
individual student's needs, taking into account the student's 
preferences and interests, and must include instruction, community 
experiences, the development of employment and other post-school adult 
living objectives, and, if appropriate, acquisition of daily living 
skills and functional vocational evaluation. Transition services must 
promote or facilitate the achievement of the employment outcome 
identified in the student's individualized plan for employment.

(Authority: Sections 12(c), 103(a)(15), and (b)(7) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c), 
723(a)(15), and (b)(7))


    Transportation means travel and related expenses that are necessary 
to enable an applicant or eligible individual to participate in a 
vocational rehabilitation service, including expenses for training in 
the use of public transportation vehicles and systems.

(Authority: Sections 12(c) and 103(a)(8) of the Rehabilitation Act 
of 1973, as amended, 29 U.S.C. 709(c) and 723(a)(8))


    Tribal organization means the recognized governing body of any 
Indian tribe or any legally established organization of Indians which 
is controlled, sanctioned, or chartered by such governing body or which 
is democratically elected by the adult members of the Indian community 
to be served by such organization and which includes the maximum 
participation of Indians in all phases of its activities.

(Authority: Sections 7(19) and 12(c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 705(19) and 709(c); Section 4 of the 
Indian Self-Determination and Education Assistance Act, 25 U.S.C. 
450(b))


    Tribal Vocational Rehabilitation program means the unit designated 
by the governing bodies of an Indian Tribe, or consortia of governing 
bodies, to implement and administer the grant under this program in 
accordance with the purpose of the grant and all applicable 
programmatic and fiscal requirements.

(Authority: Sections 12(c) and 121(b)(1) of the Rehabilitation Act 
of 1973, as amended, 29 U.S.C. 709(c) and 741(b)(1))


    Vocational Rehabilitation Services for Individuals means any 
services described in an individualized plan for employment necessary 
to assist an individual with a disability in preparing for, securing, 
retaining, advancing in or regaining an employment outcome that is 
consistent with the unique strengths, resources, priorities, concerns, 
abilities, capabilities, interests, and informed choice of the 
individual, including, but not limited to--
    (1) An assessment for determining eligibility and vocational 
rehabilitation needs by qualified personnel, including, if appropriate, 
an assessment by personnel skilled in rehabilitation technology.
    (2) Vocational rehabilitation counseling and guidance, including 
information and support services to assist an individual in exercising 
informed choice.
    (3) Referral and other services necessary to assist applicants and 
eligible individuals to secure needed services from other agencies and 
to advise those individuals about client assistance programs 
established under 34 CFR part 370.
    (4) Physical and mental restoration services, to the extent that 
financial support is not readily available from a

[[Page 21033]]

source other than the Tribal Vocational Rehabilitation unit (such as 
through health insurance or a comparable service or benefit.
    (5) Vocational and other training services, including personal and 
vocational adjustment training, advanced training in science, 
technology, engineering, or mathematics (including computer science) 
field, medicine, law or business; books, tools, and other training 
materials, except that no training or training services in an 
institution of higher education (universities, colleges, community or 
junior colleges, vocational schools, technical institutes, or hospital 
schools of nursing) may be paid for with funds under this part unless 
maximum efforts have been made by the Tribal Vocational Rehabilitation 
unit and the individual to secure grant assistance in whole or in part 
from other sources to pay for that training.
    (6) Maintenance.
    (7) Transportation in connection with the rendering of any 
vocational rehabilitation service.
    (8) Vocational rehabilitation services to family members of an 
applicant or eligible individual if necessary to enable the applicant 
or eligible individual to achieve an employment outcome.
    (9) Interpreter services, including sign language and oral 
interpreter services, for individuals who are deaf or hard of hearing 
and tactile interpreting services for individuals who are deaf-blind 
provided by qualified personnel.
    (10) Reader services, rehabilitation teaching services, and 
orientation and mobility services for individuals who are blind.
    (11) Job-related services, including job search and placement 
assistance, job retention services, follow-up services, and follow-
along services.
    (12) Supported employment services.
    (13) Personal assistance services.
    (14) Post-employment services.
    (15) Occupational licenses, tools, equipment, initial stocks, and 
supplies.
    (16) Rehabilitation technology, including vehicular modification, 
telecommunications, sensory, and other technological aids and devices.
    (17) Transition services for students with disabilities that 
facilitate the transition from school to postsecondary life, such as 
achievement of an employment outcome in competitive integrated 
employment.
    (18) Technical assistance and other consultation services to 
conduct market analyses, develop business plans, and otherwise provide 
resources to eligible individuals who are pursuing self-employment or 
telecommuting or establishing a small business operation as an 
employment outcome.
    (19) Customized employment.
    (20) Other goods and services determined necessary for the 
individual with a disability to achieve an employment outcome.
    Vocational Rehabilitation Services for Groups of Individuals 
provided for the benefit of groups of individuals with disabilities may 
also include the following:
    (1) In the case of any type of small business operated by 
individuals with significant disabilities under the supervision of the 
Tribal Vocational Rehabilitation unit, management services and 
supervision provided by the Tribal Vocational Rehabilitation unit, 
along with the acquisition by the Tribal Vocational Rehabilitation unit 
of vending facilities or other equipment and initial stocks and 
supplies in accordance with the following requirements:
    (i) Management services and supervision includes inspection, 
quality control, consultation, accounting, regulating, in-service 
training, and related services provided on a systematic basis to 
support and improve small business enterprises operated by individuals 
with significant disabilities. Management services and supervision may 
be provided throughout the operation of the small business enterprise.
    (ii) Initial stocks and supplies include those items necessary to 
the establishment of a new business enterprise during the initial 
establishment period, which may not exceed 6 months.
    (iii) Costs of establishing a small business enterprise may include 
operational costs during the initial establishment period, which may 
not exceed six months.
    (iv) If the Tribal Vocational Rehabilitation unit provides for 
these services, it must ensure that only individuals with significant 
disabilities will be selected to participate in this supervised 
program.
    (v) If the Tribal Vocational Rehabilitation unit provides for these 
services and chooses to set aside funds from the proceeds of the 
operation of the small business enterprises, the Tribal Vocational 
Rehabilitation unit must maintain a description of the methods used in 
setting aside funds and the purposes for which funds are set aside. 
Funds may be used only for small business enterprises purposes, and 
benefits that are provided to operators from set-aside funds must be 
provided on an equitable basis.
    (2) The establishment, development, or improvement of community 
rehabilitation programs, including, under special circumstances, the 
construction of a facility. Such programs shall be used to provide 
services described in this section that promote integration into the 
community and that prepare individuals with disabilities for 
competitive integrated employment, including supported employment and 
customized employment. Examples of ``special circumstances'' include 
the destruction by natural disaster of the only available center 
serving an area or a Tribal Vocational Rehabilitation unit 
determination that construction is necessary in a rural area because no 
other public agencies or private nonprofit organizations are currently 
able to provide vocational rehabilitation services to individuals.
    (3) The use of telecommunications systems (including telephone, 
television, video description services, satellite, radio, tactile-
vibratory devices, and other similar systems) that have the potential 
for substantially improving vocational rehabilitation service delivery 
methods and developing appropriate programming to meet the particular 
needs of individuals with disabilities.
    (4)(i) Special services to provide nonvisual access to information 
for individuals who are blind, including the use of telecommunications, 
Braille, sound recordings, or other appropriate media; captioned 
television, films, or video cassettes for individuals who are deaf or 
hard of hearing; tactile materials for individuals who are deaf-blind; 
and other special services that provide information through tactile, 
vibratory, auditory, and visual media.
    (5) Technical assistance to businesses that are seeking to employ 
individuals with disabilities.
    (6) Consultation and technical assistance services to assist State 
educational agencies and local educational agencies in planning for the 
transition of students with disabilities from school to postsecondary 
life, including employment.
    (7) Transition services to youth with disabilities and students 
with disabilities, for which a vocational rehabilitation counselor 
works in concert with educational agencies, providers of job training 
programs, providers of services under the Medicaid program under title 
XIX of the Social Security Act (42 U.S.C. 1396 et seq.), entities 
designated by the Tribal Vocational Rehabilitation unit to provide 
services for individuals with developmental disabilities, centers for 
independent living (as defined in

[[Page 21034]]

section 702 of the Act), housing and transportation authorities, 
workforce development systems, and businesses and employers. These 
specific transition services are to benefit a group of students with 
disabilities or youth with disabilities and are not individualized 
services directly related to an IPE goal. Services may include, but are 
not limited to group tours of universities and vocational training 
programs, employer or business site visits to learn about career 
opportunities, career fairs coordinated with workforce development and 
employers to facilitate mock interviews and resume writing, and other 
general services applicable to groups of students with disabilities and 
youth with disabilities.
    (8) The establishment, development, or improvement of assistive 
technology demonstration, loan, reutilization, or financing programs in 
coordination with activities authorized under the Assistive Technology 
Act of 1998 (29 U.S.C. 3001 et seq.) to promote access to assistive 
technology for individuals with disabilities and employers.
    (9) Support (including, as appropriate, tuition) for advanced 
training in a science, technology, engineering, or mathematics 
(including computer science) field, medicine, law, or business, 
provided after an individual eligible to receive services under this 
title, demonstrates
    (i) Such eligibility;
    (ii) Previous completion of a bachelor's degree program at an 
institution of higher education or scheduled completion of such degree 
program prior to matriculating in the program for which the individual 
proposes to use the support; and
    (iii) Acceptance by a program at an institution of higher education 
in the United States that confers a master's degree in a science, 
technology, engineering, or mathematics (including computer science) 
field, a juris doctor degree, a master of business administration 
degree, or a doctor of medicine degree, except that no training 
provided at an institution of higher education shall be paid for with 
funds under this program unless maximum efforts have been made by the 
Tribal Vocational Rehabilitation unit and the individual to secure 
grant assistance, in whole or in part, from other sources to pay for 
such training. Nothing in this paragraph shall prevent any Tribal 
Vocational Rehabilitation unit from providing similar support to 
individuals with disabilities pursuant to their approved IPEs who are 
eligible to receive support under this program and who are not served 
under this paragraph.

(Authority: Sections 12(c) and 103(a) and (b) of the Rehabilitation 
Act of 1973, as amended, 29 U.S.C. 709(c) and 723(a) and (b))

Subpart B--Training and Technical Assistance


Sec.  371.10  What are the requirements for funding training and 
technical assistance under this chapter?

    The Secretary shall first reserve not less than 1.8 percent and not 
more than 2 percent of funds appropriated and made available to carry 
out this program to provide training and technical assistance to the 
governing bodies of Indian tribes and consortia of those governing 
bodies awarded a grant under this program.

(Authority: Sections 12(c) and Section 121(c) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(c))

Sec.  371.11  How does the Secretary use these funds to provide 
training and technical assistance?

    (a) The Secretary uses these funds to make grants to, or enter into 
contracts or other cooperative agreements with, entities that have 
staff with experience in the operation of vocational rehabilitation 
services programs under this part.
    (b) An entity receiving assistance in accordance with paragraph (a) 
of this section shall provide training and technical assistance with 
respect to developing, conducting, administering, and evaluating tribal 
vocational rehabilitation programs funded under this part.

(Authority: Sections 12(c) and Section 121(c) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(c))

Sec.  371.12  How does the Secretary make an award?

    (a) To be eligible to receive a grant or enter into a contract or 
cooperative agreement under section 121(c) of the Act and this subpart, 
an applicant shall submit an application to the Secretary at such time, 
in such manner, and containing a proposal to provide such training and 
technical assistance, and any additional information as the Secretary 
may require.
    (b) The Secretary shall provide for peer review of applications by 
panels that include persons who are not Federal or State government 
employees and who have experience in the operation of vocational 
rehabilitation services programs under this part.

(Authority: Sections 12(c) and Section 121(c) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(c))

Sec.  371.13  How does the Secretary determine funding priorities?

    The Secretary shall conduct a survey of the governing bodies of 
Indian tribes funded under this part regarding training and technical 
assistance needs in order to determine funding priorities for such 
training and technical assistance.

(Authority: Sections 12(c) and Section 121(c) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(c))

Sec.  371.14  How does the Secretary evaluate an application?

    (a) The Secretary evaluates each application for a grant, 
cooperative agreement or contract under this subpart on the basis of 
the selection criteria chosen from the general selection criteria found 
in EDGAR regulations at 34 CFR 75.210.
    (b) The Secretary may award a competitive preference consistent 
with 34 CFR 75.102(c)(2) to applications that include as project 
personnel in a substantive role, individuals that have been employed as 
a project director or VR counselor by a Tribal Vocational 
Rehabilitation unit funded under this part.
    (c) If the Secretary uses a contract to award funds under this 
subpart, the application process will be conducted and the subsequent 
award will be made in accordance with 34 CFR part 75.

(Authority: Sections 12(c) and Section 121(c) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(c))

Subpart C--How Does One Apply for a Grant?


Sec.  371.20  What are the application procedures for this program?

    (a) In the development of an application, the applicant is required 
to consult with the designated State unit (DSU) for the state 
vocational rehabilitation program in the State or States in which 
vocational rehabilitation services are to be provided.
    (b) The procedures for the review and comment by the DSU or the 
DSUs of the State or States in which vocational rehabilitation services 
are to be provided on applications submitted from within the State that 
the DSU or DSUs serve are in 34 CFR 75.155-75.159.

(Authority: Sections 12(c) and 121(b)(1)(C) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(1)(C))

Sec.  371.21  What are the special application requirements related to 
the projects funded under this part?

    Each applicant under this program must provide evidence that--

[[Page 21035]]

    (a) Effort will be made to provide a broad scope of vocational 
rehabilitation services in a manner and at a level of quality at least 
comparable to those services provided by the designated State unit.

(Authority: Sections 12(c) and 121(b)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(1)(B))


    (b) All decisions affecting eligibility for vocational 
rehabilitation services, the nature and scope of available vocational 
rehabilitation services and the provision of such services will be made 
by a representative of the tribal vocational rehabilitation program 
funded through this grant and such decisions will not be delegated to 
another agency or individual.

(Authority: Sections 12(c) and 121(b)(1)(D) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(1)(D))


    (c) Priority in the delivery of vocational rehabilitation services 
will be given to those American Indians with disabilities who are the 
most significantly disabled.

(Authority: Sections 12(c) and 101(a)(5) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 721(a)(5))


    (d) An order of selection of individuals with disabilities to be 
served under the program will be specified if services cannot be 
provided to all eligible American Indians with disabilities who apply.

(Authority: Sections 12(c) and 101(a)(5) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709 (c) and 721(a)(5))


    (e) All vocational rehabilitation services will be provided 
according to an individualized plan for employment which has been 
developed jointly by the representative of the tribal vocational 
rehabilitation program and each American Indian with disabilities being 
served.

(Authority: Sections 12(c) and 101(a)(9) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 721 (a)(9))


    (f) American Indians with disabilities living on or near Federal or 
State reservations where tribal vocational rehabilitation service 
programs are being carried out under this part will have an opportunity 
to participate in matters of general policy development and 
implementation affecting vocational rehabilitation service delivery by 
the tribal vocational rehabilitation program.

(Authority: Sections 12(c) and 101(a)(16) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 721(a)(16))


    (g) Cooperative working arrangements will be developed with the 
DSU, or DSUs, as appropriate, which are providing vocational 
rehabilitation services to other individuals with disabilities who 
reside in the State or States being served.

(Authority: Sections 12(c) and 101(a)(11)(F) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 721(a)(11)(F))


    (h) Any comparable services and benefits available to American 
Indians with disabilities under any other program, which might meet in 
whole or in part the cost of any vocational rehabilitation service, 
will be fully considered in the provision of vocational rehabilitation 
services.

(Authority: Sections 12(c) and 101(a)(8) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 721(a)(8))


    (i) Any American Indian with disabilities who is an applicant or 
recipient of services, and who is dissatisfied with a determination 
made by a representative of the tribal vocational rehabilitation 
program and files a request for a review, will be afforded a review 
under procedures developed by the grantee comparable to those under the 
provisions of section 102(c)(1)-(5) and (7) of the Act.

(Authority: Sections 12(c) and 102(c) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 722(c)(1)-(5) and (7))


    (j) The tribal vocational rehabilitation program funded under this 
part must assure that any facility used in connection with the delivery 
of vocational rehabilitation services meets program accessibility 
requirements consistent with the requirements, as applicable, of the 
Architectural Barriers Act of 1968, the Americans with Disabilities Act 
of 1990, section 504 of the Act, and the regulations implementing these 
laws.

(Authority: Sections 12(c) and 101(a)(6)(C) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 721(a)(6)(C))


    (k) The tribal vocational rehabilitation program funded under this 
part must ensure that providers of vocational rehabilitation services 
are able to communicate in the native language of, or by using an 
appropriate mode of communication with, applicants and eligible 
individuals who have limited English speaking ability, unless it is 
clearly not feasible to do so.

(Authority: Sections 12(c) and 101(a)(6)(A) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 721(a)(6)(A))

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


Sec.  371.31  How are grants awarded?

    To the extent that funds have been appropriated under this program, 
the Secretary approves all applications which meet acceptable standards 
of program quality. If any application is not approved because of 
deficiencies in proposed program standards, the Secretary provides 
technical assistance to the applicant Indian tribe with respect to any 
areas of the proposal which were judged to be deficient.

(Authority: Sections 12(c) and 121(b)(1)(A) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(1)(A))

Sec.  371.32  What other factors does the Secretary consider in 
reviewing an application?

    In addition to the selection criteria used in accordance with the 
procedures in 34 CFR part 75, the Secretary, in making an award under 
this program, considers the past performance of the applicant in 
carrying out similar activities under previously awarded grants, as 
indicated by such factors as compliance with grant conditions, 
soundness of programmatic and financial management practices and 
attainment of established project objectives.

(Authority: Sections 12(c) and 121(b)(1)(A) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(1)(A))

Subpart E--What Conditions Apply to a Grantee Under this Program?


Sec.  371.40  What are the matching requirements?

    (a) Federal share Except as provided in paragraph (c) of this 
section, the Federal share may not be more than 90 percent of the total 
cost of the project.
    (b) Non-Federal share The non-Federal share of the cost of the 
project may be in cash or in kind, fairly valued pursuant to match 
requirements in 2 CFR 200.306.
    (c) Waiver of non-Federal share In order to carry out the purposes 
of the program, the Secretary may waive the non-Federal share 
requirement, in part or in whole, only if the applicant demonstrates 
that it does not have sufficient resources to contribute the non-
Federal share of the cost of the project.

(Authority: Sections 12(c) and 121(a) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741(a))

Sec.  371.41  What are allowable costs?

    (a) In addition to those allowable cost established in 2 CFR 
200.400-200.475, the following items are allowable costs under this 
program--
    (1) Expenditures for the provision of vocational rehabilitation 
services and for the administration, including staff development, of a 
program of vocational rehabilitation services.

[[Page 21036]]

    (2) Expenditures for services reflecting the cultural background of 
the American Indians being served, including treatment provided by 
native healing practitioners who are recognized as such by the tribal 
vocational rehabilitation program when the services are necessary to 
assist an individual with disabilities to achieve his or her vocational 
rehabilitation objective.
    (b) Expenditures may not be made under this program to cover the 
costs of providing vocational rehabilitation services to individuals 
with disabilities not residing on or near Federal or State 
reservations.

(Authority: Sections 12(c) and 121(a) and (b)(1) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) and 741(a) 
and (b)(1))

Sec.  371.42  How are services to be administered under this program?

    (a) Directly or by contract. A grantee under this part may provide 
the vocational rehabilitation services directly or it may contract or 
otherwise enter into an agreement with a DSU, a community 
rehabilitation program, or another agency to assist in the 
implementation of the tribal vocational rehabilitation program.
    (b) Inter-tribal agreement. A grantee under this part may enter 
into an inter-tribal arrangement with governing bodies of other Indian 
tribes for carrying out a project that serves more than one Indian 
tribe.
    (c) Comparable services. To the maximum extent feasible, services 
provided by a grantee under this part must be comparable to vocational 
rehabilitation services provided under the State vocational 
rehabilitation program to other individuals with disabilities residing 
in the State.

(Authority: Sections 12(c) and 121(b)(1)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(1)(B))

Sec.  371.43  What other special conditions apply to this program?

    (a) Any American Indian with disabilities who is eligible for 
services under this program but who wishes to be provided services by 
the DSU must be referred to the DSU for such services.

(Authority: Sec. 12(c) and 121(b)(3) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741(b)(3))


    (b) Preference in employment in connection with the provision of 
vocational rehabilitation services under this section must be given to 
American Indians, with a special priority being given to American 
Indians with disabilities.

(Authority: Sections 12(c) and 121(b)(2) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(2))


    (c) The provisions of sections 5, 6, 7, and 102(a) of the Indian 
Self-Determination and Education Assistance Act also apply under this 
program (25 U.S.C. 450c, 450d, 450e, and 450f(a)). These provisions 
relate to grant reporting and audit requirements, maintenance of 
records, access to records, availability of required reports and 
information to Indian people served or represented, repayment of 
unexpended Federal funds, criminal activities involving grants, 
penalties, wage and labor standards, preference requirements for 
American Indians in the conduct and administration of the grant, and 
requirements affecting requests of tribal organizations to enter into 
contracts. For purposes of applying these requirements to this program, 
the Secretary carries out those responsibilities assigned to the 
Secretary of Interior.

(Authority: Sec. 12(c) and 121(b)(2) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 741(b)(2))


    (d) The Tribal Vocational Rehabilitation unit must develop and 
maintain written policies regarding the provision of vocational 
rehabilitation services that ensure that the provision of services is 
based on the vocational rehabilitation needs of each individual as 
identified in that individual's IPE and is consistent with the 
individual's informed choice. The written policies may not establish 
any arbitrary limits on the nature and scope of vocational 
rehabilitation services to be provided to the individual to achieve an 
employment outcome. The policies must be developed in accordance with 
the following provisions:
    (1) Off-reservation services. (i) The Tribal Vocational 
Rehabilitation unit may establish a preference for on- or near-
reservation services, provided that the preference does not effectively 
deny an individual a necessary service. If the individual chooses an 
equivalent off-reservation service at a higher cost than an available 
in-State service, the Tribal Vocational Rehabilitation unit is not 
responsible for those costs in excess of the cost of the on- or near-
reservation service, if either service would meet the individual's 
rehabilitation needs.
    (ii) The Tribal Vocational Rehabilitation unit may not establish 
policies that effectively prohibit the provision of off-reservation 
services.
    (2) Payment for services (i) The Tribal Vocational Rehabilitation 
unit must establish and maintain written policies to govern the rates 
of payment for all purchased vocational rehabilitation services.
    (ii) The Tribal Vocational Rehabilitation unit may establish a fee 
schedule designed to ensure the program pays a reasonable cost for each 
service, as long as the fee schedule--
    (A) Is not so low as effectively to deny an individual a necessary 
service; and
    (B) permits exceptions so that individual needs can be addressed.
    (C) The Tribal Vocational Rehabilitation unit may not place 
absolute dollar limits on the amount it will pay for specific service 
categories or on the total services provided to an individual.
    (3) Duration of services (i) The Tribal Vocational Rehabilitation 
unit may establish reasonable time periods for the provision of 
services provided that the time periods--
    (A) Are not so short as effectively to deny an individual a 
necessary service; and
    (B) Permit exceptions so that individual needs can be addressed.
    (ii) The Tribal Vocational Rehabilitation unit may not place time 
limits on the provision of specific services or on the provision of 
services to an individual. The duration of each service needed by an 
individual must be determined on the basis of that individual's needs 
and reflected in that individual's individualized plan for employment.
    (4) Authorization of services. The Tribal Vocational Rehabilitation 
unit must establish policies related to the timely authorization of 
services.

(Authority: Sections 12(c) and 121(b) of the Rehabilitation Act of 
1973, as amended, 29 U.S.C. 709(c) and 741(b))


    (e) Informed choice. Each individual who is an applicant for or 
eligible to receive vocational rehabilitation services must be afforded 
the opportunity to exercise informed choice throughout the vocational 
rehabilitation process carried out under programs funded under this 
part. The Tribal Vocational Rehabilitation unit must develop and 
maintain written policies and procedures that require it--
    (1) To inform each applicant and eligible individual, through 
appropriate modes of communication, about the availability of, and 
opportunities to exercise, informed choice, including the availability 
of support services for individuals with cognitive or other 
disabilities who require assistance in exercising informed choice, 
throughout the vocational rehabilitation process;
    (2) To assist applicants and eligible individuals in exercising 
informed choice in decisions related to the provision of assessment 
services;

[[Page 21037]]

    (3) To develop and implement flexible procurement policies and 
methods that facilitate the provision of vocational rehabilitation 
services, and that afford eligible individuals meaningful choices among 
the methods used to procure vocational rehabilitation services;
    (4) To provide or assist eligible individuals in acquiring 
information that enables them to exercise informed choice in the 
development of their IPEs and selection of--
    (i) The employment outcome;
    (ii) The specific vocational rehabilitation services needed to 
achieve the employment outcome;
    (iii) The entity that will provide the services;
    (iv) The employment setting and the settings in which the services 
will be provided; and
    (v) The methods available for procuring the services; and
    (5) To ensure that the availability and scope of informed choice is 
consistent with the obligations of the Tribal Vocational Rehabilitation 
unit.
    (6) Information and assistance in the selection of vocational 
rehabilitation services and service providers. In assisting an 
applicant and eligible individual in exercising informed choice during 
the assessment for determining eligibility and vocational 
rehabilitation needs and during development of the IPE, the designated 
State unit must provide the individual or the individual's 
representative, or assist the individual or the individual's 
representative in acquiring, information necessary to make an informed 
choice about the specific vocational rehabilitation services, including 
the providers of those services, that are needed to achieve the 
individual's employment outcome. This information must include, at a 
minimum, information relating to the--
    (i) Cost, accessibility, and duration of potential services;
    (ii) Consumer satisfaction with those services to the extent that 
information relating to consumer satisfaction is available;
    (iii) Qualifications of potential service providers;
    (iv) Types of services offered by the potential providers;
    (v) Degree to which services are provided in integrated settings; 
and
    (vi) Outcomes achieved by individuals working with service 
providers, to the extent that such information is available.
    (7) Methods or sources of information. In providing or assisting 
the individual or the individual's representative in acquiring the 
information required under paragraph (c) of this section, the State 
unit may use, but is not limited to, the following methods or sources 
of information:
    (i) Lists of services and service providers.
    (ii) Periodic consumer satisfaction surveys and reports.
    (iii) Referrals to other consumers, consumer groups, or disability 
advisory councils qualified to discuss the services or service 
providers.
    (iv) Relevant accreditation, certification, or other information 
relating to the qualifications of service providers.
    (v) Opportunities for individuals to visit or experience various 
work and service provider settings.


(Approved by the Office of Management and Budget under control number 
1820-0500)

(Authority: Sections 12(c), 102(b)(2)(B), and 102(d) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c), 
722(b)(2)(B), and 722(d))

Sec.  371.44  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) General provisions. (1) Tribal Vocational Rehabilitation unit 
must adopt and implement written policies and procedures to safeguard 
the confidentiality of all personal information, including photographs 
and lists of names. These policies and procedures must ensure that--
    (i) Specific safeguards are established to protect current and 
stored personal information;
    (ii) All applicants and eligible individuals and, as appropriate, 
those individuals' representatives, service providers, cooperating 
agencies, and interested persons are informed through appropriate modes 
of communication of the confidentiality of personal information and the 
conditions for accessing and releasing this information;
    (iii) All applicants or their representatives are informed about 
the Tribal Vocational Rehabilitation unit's need to collect personal 
information and the policies governing its use, including--
    (A) Identification of the authority under which information is 
collected;
    (B) Explanation of the principal purposes for which the Tribal 
Vocational Rehabilitation unit intends to use or release the 
information;
    (C) Explanation of whether providing requested information to the 
Tribal Vocational Rehabilitation unit is mandatory or voluntary and the 
effects of not providing requested information;
    (D) Identification of those situations in which the Tribal 
Vocational Rehabilitation unit requires or does not require informed 
written consent of the individual before information may be released; 
and
    (E) Identification of other agencies to which information is 
routinely released;
    (iv) An explanation of the Tribal Vocational Rehabilitation unit's 
policies and procedures affecting personal information will be provided 
to each individual in that individual's native language or through the 
appropriate mode of communication; and
    (v) These policies and procedures provide no fewer protections for 
individuals than State laws and regulations.
    (2) The Tribal Vocational Rehabilitation unit may establish 
reasonable fees to cover extraordinary costs of duplicating records or 
making extensive searches and must establish policies and procedures 
governing access to records.
    (b) Tribal Vocational Rehabilitation Program Use. All personal 
information in the possession of the Tribal Vocational Rehabilitation 
unit must be used only for the purposes directly connected with the 
administration of the Tribal Vocational Rehabilitation program. 
Information containing identifiable personal information may not be 
shared with advisory or other bodies or other tribal agencies that do 
not have official responsibility for administration of the program. In 
the administration of the program, the Tribal Vocational Rehabilitation 
unit may obtain personal information from service providers and 
cooperating agencies under assurances that the information may not be 
further divulged, except as provided under paragraphs (c), (d), and (e) 
of this section.
    (c) Release to applicants and eligible individuals. (1) Except as 
provided in paragraphs (c)(2) and (c)(3) of this section, if requested 
in writing by an applicant or eligible individual, the Tribal 
Vocational Rehabilitation unit must make all requested information in 
that individual's record of services accessible to and must release the 
information to the individual or the individual's representative in a 
timely manner.
    (2) Medical, psychological, or other information that the Tribal 
Vocational Rehabilitation unit determines may be harmful to the 
individual may not be released directly to the individual, but must be 
provided to the individual through a third party chosen by the 
individual, which may include, among others, an advocate, a family 
member, or a qualified medical or mental health professional, unless a 
representative has

[[Page 21038]]

been appointed by a court to represent the individual, in which case 
the information must be released to the court-appointed representative.
    (3) If personal information has been obtained from another agency 
or organization, it may be released only by, or under the conditions 
established by, the other agency or organization.
    (4) An applicant or eligible individual who believes that 
information in the individual's record of services is inaccurate or 
misleading may request that the Tribal Vocational Rehabilitation unit 
amend the information. If the information is not amended, the request 
for an amendment must be documented in the record of services.
    (d) Release for audit, evaluation, and research. Personal 
information may be released to an organization, agency, or individual 
engaged in audit, evaluation, or research only for purposes directly 
connected with the administration of the tribal vocational 
rehabilitation program or for purposes that would significantly improve 
the quality of life for applicants and eligible individuals and only if 
the organization, agency, or individual assures that--
    (1) The information will be used only for the purposes for which it 
is being provided;
    (2) The information will be released only to persons officially 
connected with the audit, evaluation, or research;
    (3) The information will not be released to the involved 
individual;
    (4) The information will be managed in a manner to safeguard 
confidentiality; and
    (5) The final product will not reveal any personal identifying 
information without the informed written consent of the involved 
individual or the individual's representative.
    (e) Release to other programs or authorities. (1) Upon receiving 
the informed written consent of the individual or, if appropriate, the 
individual's representative, the Tribal Vocational Rehabilitation unit 
may release personal information to another agency or organization for 
its program purposes only to the extent that the information may be 
released to the involved individual or the individual's representative 
and only to the extent that the other agency or organization 
demonstrates that the information requested is necessary for its 
program.
    (2) Medical or psychological information that the Tribal Vocational 
Rehabilitation unit determines may be harmful to the individual may be 
released if the other agency or organization assures the Tribal 
Vocational Rehabilitation unit that the information will be used only 
for the purpose for which it is being provided and will not be further 
released to the individual.
    (3) The Tribal Vocational Rehabilitation unit must release personal 
information if required by Federal law or regulations.
    (4) The Tribal Vocational Rehabilitation unit must release personal 
information in response to investigations in connection with law 
enforcement, fraud, or abuse, unless expressly prohibited by Federal or 
State laws or regulations, and in response to an order issued by a 
judge, magistrate, or other authorized judicial officer.
    (5) The Tribal Vocational Rehabilitation unit also may release 
personal information in order to protect the individual or others if 
the individual poses a threat to his or her safety or to the safety of 
others.

(Authority: Sections 12(c) and 121(b)(1) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 741(b)(1))

Sec.  371.45  What notice must be given about the Client Assistance 
Program (CAP)?

    The Tribal Vocational Rehabilitation unit shall use formats that 
are accessible to notify individuals seeking or receiving services 
under this part, or as appropriate, the parents, family members, 
guardians, advocates, or authorized representatives of those 
individuals, about--
    (a) The availability of CAP authorized by section 112 of the Act;
    (b) The purposes of the services provided under the CAP; and
    (c) How to contact the CAP.

(Authority: Section 20 of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 717)


0
5. Part 373 is revised to read as follows:

PART 373--SPECIAL DEMONSTRATION PROGRAMS

Subpart A--General
Sec.
373.1 What is the purpose of the Special Demonstration Programs?
373.2 Who is eligible for assistance?
373.3 What regulations apply?
373.4 What definitions apply?
373.5 Who is eligible to receive services and to benefit from 
activities conducted by eligible entities?
373.6 What types of projects may be funded?
373.7 What are the priorities and other factors and requirements for 
competitions?
Subpart B--How Does the Secretary Make a Grant?
373.10 What selection criteria does the Secretary use?
373.11 What other factors does the Secretary consider when making a 
grant?
Subpart C--What Conditions Must Be Met By a Grantee?
373.20 What are the matching requirements?
373.21 What are the reporting requirements?
373.22 What are the limitations on indirect costs?
373.23 What additional requirements must be met?
373.24 What are the special requirements pertaining to the 
protection, use, and release of personal information?

    Authority: Section 303(b) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 773(b), unless otherwise noted.

Subpart A--General


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

    The purpose of this program is to provide competitive grants, 
including cooperative agreements, to, or enter into contracts with, 
eligible entities to expand and improve the provision of vocational 
rehabilitation and other services authorized under the Rehabilitation 
Act of 1973, as amended (Act), or to further the purposes and policies 
in sections 2(b) and (c) of the Act by supporting activities that 
increase the provision, extent, availability, scope, and quality of 
rehabilitation services under the Act, including related research and 
evaluation activities.

(Authority: Sections 2(b) and (c), 7(40), 12(c), and 303(b) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 701(b) and (c), 
705(40), 709(c), and 773(b))

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: Sections 12(c) and 303(b)(2) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 773(b)(2))


[[Page 21039]]




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 75 (Direct Grant Programs).
    (2) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (3) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (4) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (5) 35 CFR part 82 (New Restrictions on Lobbying).
    (6) 34 CFR part 84 (Governmentwide Requirements for Drug-Free 
Workplace (Financial Assistance).
    (7) 34 CFR part 86 (Drug and Alcohol Abuse Prevention).
    (8) 34 CFR part 97 (Protection of Human Subjects).
    (9) 34 CFR part 98 (Student Rights in Research, Experimental 
Programs, and Testing.
    (10) 34 CFR part 99 (Family Educational Rights and Privacy).
    (b) The regulations in this part 373.
    (c) The regulations in 48 CFR part 31 (Contracts Cost Principles 
and Procedures).
    (d)(1) 2 CFR part 180 (Nonprocurement Debarment and Suspension), as 
adopted at 2 CFR part 3485; and
    (2) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards) as adopted at 2 
CFR part 3474.

(Authority: Sections 12(c) and 303(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c)) and 773(b)

Sec.  373.4  What definitions apply?

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

(Authority: Section 2 of the Rehabilitation Act of 1973, as amended; 
29 U.S.C. 701 et seq.)


    Competitive integrated employment is defined in 34 CFR 361.5(c)(9).

(Authority: Section 7(5) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 705(5))


    Early intervention means a service delivery or model demonstration 
program for adults with disabilities designed to begin the 
rehabilitation services as soon as possible after the onset or 
identification of actually or potentially disabling conditions. The 
populations served may include, but are not limited to, the following:
    (1) Individuals with chronic and progressive diseases that may 
become more disabling, such as multiple sclerosis, progressive visual 
disabilities, or HIV.
    (2) Individuals in the acute stages of injury or illness, 
including, but not limited to, diabetes, traumatic brain injury, 
stroke, burns, or amputation.

(Authority: Sections 12(c) and 303(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 773(b))


    Employment outcome is defined in 34 CFR 361.5.

(Authority: Section 7(11) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 705(11))


    Individual with a disability is defined as follows:
    (1) For an individual who will receive rehabilitation services 
under this part, an individual with a disability means an individual--
    (i) Who has a physical or mental impairment which, for that 
individual, constitutes or results in a substantial impediment to 
employment; and
    (ii) Who can benefit in terms of an employment outcome from 
vocational rehabilitation services.
    (2) For all other purposes of this part, an individual with a 
disability means an individual--
    (i) Who has a physical or mental impairment that substantially 
limits one or more major life activities;
    (ii) Who has a record of such an impairment; or
    (iii) Who is regarded as having such an impairment.
    (3) For purposes of paragraph (b) of this definition, projects that 
carry out services or activities pertaining to Title V of the Act must 
also meet the requirements for ``an individual with a disability'' in 
section 7(20)(c) through (e) of the Act, as applicable.

(Authority: Section 7(20) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 705(20))


    Individual with a significant disability means an individual--
    (1) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, intellectual disability, respiratory or 
pulmonary dysfunction, mental illness, multiple sclerosis, muscular 
dystrophy, musculo-skeletal disorders, neurological disorders 
(including stroke and epilepsy), paraplegia, quadriplegia and other 
spinal cord conditions, sickle-cell anemia, specific learning 
disabilities, end-stage renal disease, or another disability or 
combination of disabilities determined on the basis of an assessment 
for determining eligibility and vocational rehabilitation needs to 
cause comparable substantial functional limitation.

(Authority: Section 7(21)(A) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 705(21)(A))


    Informed choice means the provision of activities whereby 
individuals with disabilities served by projects under this part have 
the opportunity to be active, full partners in the rehabilitation 
process, making meaningful and informed choices as follows:
    (1) During assessments of eligibility and vocational rehabilitation 
needs.
    (2) In the selection of employment outcomes, services needed to 
achieve the outcomes, entities providing these services, and the 
methods used to secure these services.

(Authority: Sections 2(c) and 12(c) of the Act 29 U.S.C. 701(c) and 
709(c))


    Rehabilitation services means services, including vocational, 
medical, social, and psychological rehabilitation services and other 
services under the Rehabilitation Act, provided to individuals with 
disabilities in performing functions necessary in preparing for, 
securing, retaining, or regaining an employment or independent living 
outcome.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))


    Substantial impediment to employment means that a physical or 
mental impairment (in light of attendant medical, psychological, 
vocational, educational, and other related factors) hinders an 
individual from preparing for, entering into, engaging in, or retaining 
employment consistent with the individual's capacities and abilities.

(Authority: Section 5(20)(A) of the Act 29; U.S.C. 705(20)(A))


    Supported employment is defined in 34 CFR 361.5(c)(53).

(Authority: Section 5(38) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 705(38))


    Vocational Rehabilitation Services means services provided to an 
individual with a disability in preparing

[[Page 21040]]

for, securing, retaining, or regaining an employment outcome that is 
consistent with the strengths, resources, priorities, concerns, 
abilities, capabilities, interests, and informed choice of the 
individual. Vocational Rehabilitation Services for an individual with a 
disability may include--
    (1) An assessment for determining eligibility and vocational 
rehabilitation needs by qualified personnel, including, if appropriate, 
an assessment by personnel skilled in rehabilitation technology;
    (2) Counseling and guidance, including information and support 
services to assist an individual in exercising informed choice;
    (3) Referral and other services to secure needed services from 
other agencies;
    (4) Job-related services, including job search and placement 
assistance, job retention services, follow-up services, and follow-
along services;
    (5) Vocational and other training services, including the provision 
of personal and vocational adjustment services, books, tools, and other 
training materials;
    (6) Diagnosis and treatment of physical and mental impairments;
    (7) Maintenance for additional costs incurred while the individual 
is receiving services;
    (8) Transportation;
    (9) On-the-job or other related personal assistance services;
    (10) Interpreter and reader services;
    (11) Rehabilitation teaching services, and orientation and mobility 
services;
    (12) Occupational licenses, tools, equipment, and initial stocks 
and supplies;
    (13) Technical assistance and other consultation services to 
conduct market analysis, develop business plans, and otherwise provide 
resources to eligible individuals who are pursuing self-employment or 
telecommuting or establishing a small business operation as an 
employment outcome;
    (14) Rehabilitation technology, including telecommunications, 
sensory, and other technological aids and devices;
    (15) Transition services for individuals with disabilities that 
facilitate the achievement of employment outcomes;
    (16) Supported employment services;
    (17) Services to the family of an individual with a disability 
necessary to assist the individual to achieve an employment outcome;
    (18) Post-employment services necessary to assist an individual 
with a disability to retain, regain, or advance in employment; and
    (19) Expansion of employment opportunities for individuals with 
disabilities, which includes, but is not limited to--
    (i) Self-employment, business ownership, and entreprenuership;
    (ii) Non-traditional jobs, professional employment, and work 
settings;
    (iii) Collaborating with employers, Economic Development Councils, 
and others in creating new jobs and career advancement options in local 
job markets through the use of job restructuring and other methods; and
    (iv) Other services as identified by the Secretary and published in 
the Federal Register.
    Youth or Young adults with disabilities means individuals with 
disabilities who are between the ages of 14 and 24 inclusive when 
entering the program.

(Authority: Section 5(42) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 705(42)


(Authority: Sections 7(40), 12(c), and 103(a) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 705(40), 709(c) and 723(a))

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, 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: Sections 12(c), 103(a), and 303(b) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c), 723(a), and 773(b))

Sec.  373.6  What types of projects may be funded?

    The Secretary may fund the following types of projects under this 
program:
    (a) Special projects of service delivery.
    (b) Model demonstration.
    (c) Technical assistance.
    (d) Systems change.
    (e) Special studies, research, or evaluations.
    (f) Dissemination and utilization.

(Authority: Sections 12(c) and 303(b)(4) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 773(b)(4))

Sec.  373.7  What are the priorities and other factors and requirements 
for competitions?

    (a) In announcing competitions for grants and contracts, the 
Secretary gives priority consideration to--
    (1) Initiatives focused on improving transition from education, 
including postsecondary education, to employment, particularly in 
competitive integrated employment, for youth who are individuals with 
significant disabilities.
    (2) Supported employment, including community-based supported 
employment programs to meet the needs of individuals with the most 
significant disabilities or to provide technical assistance to States 
and community organizations to improve and expand the provision of 
supported employment services.
    (3) Increasing competitive integrated employment for individuals 
with significant disabilities.
    (b) In announcing competitions for grants and contracts, the 
Secretary may also identify one or more of the following as 
priorities--
    (1) Expansion of employment opportunities for individuals with 
disabilities, as authorized in paragraph(s) of the definition of 
``vocational rehabilitation services'' as stated in Sec.  373.4.
    (2) System change projects to promote meaningful access of 
individuals with disabilities to employment-related services under 
subtitle B of title I of the Workforce Innovation and Opportunity Act 
and under other Federal laws.
    (3) Innovative methods of promoting achievement of high-quality 
employment outcomes.
    (4) The demonstration of the effectiveness of early intervention 
activities in improving employment outcomes.
    (5) Projects to find alternative methods of providing affordable 
transportation services to individuals with disabilities.
    (6) Technical assistance to designated State units and their 
personnel in working with employers to identify competitive integrated 
employment opportunities and career exploration opportunities in order 
to facilitate the

[[Page 21041]]

provision of vocational rehabilitation services and transition services 
for youth with disabilities and students with disabilities.
    (7) Consultation, training and technical assistance to businesses 
that have hired or are interested in hiring individuals with 
disabilities.
    (8) Technical assistance and training to designated State units and 
their personnel on establishment and maintenance of education and 
experience requirements, to ensure that the personnel have a 21st 
century understanding of the evolving labor force and the needs of 
individuals with disabilities.
    (9) Technical assistance to State vocational rehabilitation 
agencies or State vocational rehabilitation units to improve management 
practices that will improve the provision of vocational rehabilitation 
services and increase competitive employment outcomes for individuals 
with disabilities.
    (10) Other projects that will expand and improve the provision, 
extent, availability, scope, and quality of rehabilitation and other 
services under the Act or that further the purpose and policy of the 
Act as stated in sections 2(b) and (c) of the Act.
    (c) In announcing competitions of grants and contract the Secretary 
may limit the priorities listed in paragraphs (a) and (b) of this 
section to address one or more of the following factors:
    (1) Age ranges.
    (2) Types of disabilities.
    (3) Types of services.
    (4) Models of service delivery.
    (5) Stages of the vocational rehabilitation process;
    (6) Unserved and underserved populations.
    (7) Unserved and underserved geographical areas.
    (8) Individuals with significant disabilities.
    (9) Low-incidence disability populations.
    (10) Individuals residing in federally designated Empowerment Zones 
and Enterprise Communities.
    (d) The Secretary may require that an applicant certify that the 
project does not include building upon or expanding activities that 
have previously been conducted or funded, for that applicant or in that 
service area.
    (e) The Secretary may require that the project widely disseminate 
the methods of vocational rehabilitation service delivery or model 
proven to be effective, so that they may be adapted, replicated, or 
purchased under fee-for-service arrangements by State vocational 
rehabilitation agencies and other disability organizations in the 
project's targeted service area or other locations.

(Authority: Sections 12(c), 101(a)(7)(B)(ii) and (11)(E), 103(b)(5), 
108a, and 303(b)(5) of the Rehabilitation Act of 1973, as amended; 
29 U.S.C. 709(c), 721(a)(7)(B)(ii) and (11)(E), 723(b)(5), 728a, and 
773(b)(5))

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


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: Sections 12(c) and 103(a) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(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: Sections 12(c) and 103(a) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 723(a))

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


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: Sections 12(c) and 303(b)(1) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 773(b)(1))

Sec.  373.21  What are the reporting requirements?

    (a) In addition to the program and fiscal reporting requirements in 
34 CFR 75.720 and 2 CFR 200.327 that are applicable to projects funded 
under this program, the Secretary may require that recipients of grants 
under this part submit information determined by the Secretary to be 
necessary to measure project outcomes and performance, including any 
data needed to comply with the Government Performance and Results Act.
    (b) Specific reporting requirements for competitions will be 
identified by the Secretary and published in the Federal Register.

(Authority: Sections 12(c), 303(b)(2)(B), and 306 of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c), 
773(b)(2)(B), and 776)

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 determined by its 
negotiated indirect cost rate agreement, or 10 percent of the total 
direct cost base, whichever amount is less.
    (b) Indirect costs in excess of the 10 percent limit may be used to 
satisfy matching or cost-sharing requirements.
    (c) The 10 percent limit does not apply to federally recognized 
Indian tribal governments and their tribal representatives.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

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.

[[Page 21042]]

    (b) A grantee may not make a subgrant under this part. However, a 
grantee may contract for supplies, equipment, and other services, in 
accordance with 2 CFR part 200 (Uniform Administrative Requirements, 
Cost Principles, and Audit Requirements for Federal Awards) as adopted 
at 2 CFR part 3474.

(Authority: Sections 12(c) and 303(b)(2)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 773(b)(2)(B))

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: Sections 12(c) and 303(b)(2)(B) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c), and 773(b)(2)(B))

PART 376--[REMOVED AND RESERVED]

0
6. Part 376 is removed and reserved.

PART 377--[REMOVED AND RESERVED]

0
7. Part 377 is removed and reserved.

PART 379--[REMOVED AND RESERVED]

0
8. Part 379 is removed and reserved.
0
9. Part 381 is revised to read as follows:

Part 381--PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS

Subpart A--General
Sec.
381.1 What is the Protection and Advocacy of Individual Rights 
program?
381.2 Who is eligible for an award?
381.3 What activities may the Secretary fund?
381.4 What regulations apply?
381.5 What definitions apply?
Subpart B--How Does One Apply for an Award?
381.10 What are the application requirements?
Subpart C--How Does the Secretary Make an Award?
381.20 How does the Secretary evaluate an application?
381.22 How does the Secretary allocate funds under this program?
Subpart D--What Conditions Must Be Met After an Award?
381.30 How are services to be administered?
381.31 What are the requirements pertaining to the protection, use, 
and release of personal information?
381.32 What are the reporting requirements?
381.33 What are the requirements related to the use of funds 
provided under this part?

    Authority: Section 509 of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 794e, unless otherwise noted.

Subpart A--General


Sec.  381.1  What is the Protection and Advocacy of Individual Rights 
program?

    This program is designed to support a system in each State to 
protect the legal and human rights of eligible individuals with 
disabilities.

(Authority: Section 509(a) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 794e(a))

Sec.  381.2  Who is eligible for an award?

    (a)(1) A protection and advocacy system that is established under 
part C of title I of the Developmental Disabilities Assistance and Bill 
of Rights Act of 2000 (DD Act), 42 U.S.C. 15041 et seq., and that meets 
the requirements of Sec.  381.10 is eligible to apply for a grant award 
under this part.
    (2)(i) For any fiscal year in which the appropriation to carry out 
the activities of this part equals or exceeds $10,500,000, the eligible 
system serving the American Indian Consortium is eligible to apply for 
a grant award under this part.
    (ii) For purposes of this part, an eligible system is defined at 
Sec.  381.5(c).
    (iii) For purposes of this part, the American Indian Consortium 
means a consortium established as described in section 102 of the DD 
Act (42 U.S.C. 15002).
    (b) In any fiscal year in which the amount appropriated to carry 
out this part is less than $5,500,000, a protection and advocacy system 
from any State or from Guam, American Samoa, the United States Virgin 
Islands, or the Commonwealth of the Northern Mariana Islands, may apply 
for a grant under the Protection and Advocacy of Individual Rights 
(PAIR) program to plan for, develop outreach strategies for, and carry 
out a protection and advocacy program authorized under this part.
    (c) In any fiscal year in which the amount appropriated to carry 
out this part is equal to or greater than $5,500,000, an eligible 
system from any State and from any of the jurisdictions named in 
paragraph (b) of this section may apply to receive the amount allotted 
pursuant to section 509(c)-(e) of the Act.

(Authority: Section 509(b), (c), and (m) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 794e(b), (c), and (m))

Sec.  381.3  What activities may the Secretary fund?

    (a) Funds made available under this part must be used for the 
following activities:
    (1) Establishing a system to protect, and advocate for, the rights 
of individuals with disabilities.
    (2) Pursuing legal, administrative, and other appropriate remedies 
or approaches to ensure the protection of, and advocacy for, the rights 
of eligible individuals with disabilities within the State or the 
American Indian Consortium.
    (3) Providing information on and making referrals to programs and 
services addressing the needs of individuals with disabilities in the 
State or American Indian Consortium, including individuals with 
disabilities who are exiting from school programs.
    (4) Coordinating the protection and advocacy program provided 
through an eligible system with the advocacy programs under--
    (i) Section 112 of the Act (the Client Assistance Program (CAP));
    (ii) The Older Americans Act of 1965 (the State long-term care 
ombudsman program) (42 U.S.C. 3001 et seq.);
    (iii) Part C of the DD Act; and
    (iv) The Protection and Advocacy for Individuals with Mental 
Illness Act of 2000 (PAIMI) (42 U.S.C. 10801-10807).
    (5) Developing a statement of objectives and priorities on an 
annual basis and a plan for achieving these objectives and priorities.
    (6) Providing to the public, including individuals with 
disabilities and, as appropriate, their representatives, an opportunity 
to comment on the objectives and priorities described in Sec.  
381.10(a)(6).
    (7) Establishing a grievance procedure for clients or prospective 
clients of the eligible system to ensure that individuals with 
disabilities are

[[Page 21043]]

afforded equal access to the services of the eligible system.
    (b) Funds made available under this part also may be used to carry 
out any other activities consistent with the purpose of this part and 
the activities listed in paragraph (a) of this section.

(Authority: Sections 12(c) and 509(f) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 794e(f)).

Sec.  381.4  What regulations apply?

    The following regulations apply to the PAIR program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 75 (Direct Grant Programs) for purposes of an award 
made under Sec.  Sec.  381.20 or 381.22(a)(1).
    (2) 34 CFR part 76 (State-Administered Programs), if the 
appropriation for the PAIR program is equal to or greater than 
$5,500,000 and the eligible system is a State or local government 
agency, except for--
    (i) Section 76.103;
    (ii) Sections 76.125 through 76.137;
    (iii) Sections 76.300 through 76.401;
    (iv) Section 76.704;
    (v) Section 76.734; and
    (vi) Section 76.740.
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (6) 34 CFR part 82 (New Restrictions on Lobbying).
    (b) 2 CFR part 180 (OMB Guidelines to Agencies on Debarment and 
Suspension (Nonprocurement)), as adopted at 2 CFR part 3485.
    (c) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards), as adopted at 2 
CFR part 3474.
    (d) The regulations in this part 381.

(Authority: Sections 12(c) and 509 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 794e)

Sec.  381.5  What definitions apply?

    (a) Definitions in EDGAR at 34 CFR part 77.
    (b) Definitions in 2 CFR part 200 subpart A.
    (c) Other definitions. The following definitions also apply to this 
part:
    Act means the Rehabilitation Act of 1973, as amended.
    Advocacy means pleading an individual's cause or speaking or 
writing in support of an individual. Advocacy may be formal, as in the 
case of a lawyer representing an individual in a court of law or in 
formal administrative proceedings before government agencies (whether 
tribal, State, local, or Federal). Advocacy also may be informal, as in 
the case of a lawyer or non-lawyer representing an individual in 
negotiations, mediation, or informal administrative proceedings before 
government agencies (whether tribal, State, local, or Federal), or as 
in the case of a lawyer or non-lawyer representing an individual's 
cause before private entities or organizations, or government agencies 
(whether tribal, State, local, or Federal). Advocacy may be on behalf 
of--
    (1) A single individual, in which case it is individual advocacy;
    (2) More than one individual or a group or class of individuals, in 
which case it is systems (or systemic) advocacy; or
    (3) Oneself, in which case it is self advocacy.
    Eligible individual with a disability means an individual who--
    (1) Needs protection and advocacy services that are beyond the 
scope of services authorized to be provided by the CAP under section 
112 of the Act; and
    (2) Is ineligible for--
    (i) Protection and advocacy programs under part C of the DD Act; 
and
    (ii) Protection and advocacy programs under the PAIMI.
    Eligible system means a protection and advocacy system that is 
established under part C of the DD Act and that meets the requirements 
of Sec.  381.10.
    Mediation means the act or process of using an independent third 
party to act as a mediator, intermediary, or conciliator to settle 
differences or disputes between persons or parties. The third party who 
acts as a mediator, intermediary, or conciliator must not be any entity 
or individual who is connected in any way with the eligible system or 
the agency, entity, or individual with whom the individual with a 
disability has a dispute. Mediation may involve the use of professional 
mediators or any other independent third party mutually agreed to by 
the parties to the dispute.
    State means, in addition to each of the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands, except for purposes of 
sections 509(c)(3)(B) and (c)(4) of the Act, in which case State does 
not mean or include Guam, American Samoa, the United States Virgin 
Islands, and the Commonwealth of the Northern Mariana Islands.

(Authority: Sections 7(34), 12(c), and 509 of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 705(34), 709(c) and 794e)

Subpart B--How Does One Apply for an Award?


Sec.  381.10  What are the application requirements?

    (a) Regardless of the amount of funds appropriated for the PAIR 
program in a fiscal year, an eligible system shall submit to the 
Secretary an application for assistance under this part at the time and 
in the form and manner determined by the Secretary that contains all 
information that the Secretary determines necessary, including 
assurances that the eligible system will--
    (1) Have in effect a system to protect, and advocate for, the 
rights of eligible individuals with disabilities;
    (2) Have the same general authorities, including the authority to 
access records and program income, as in part C of title I of the DD 
Act;
    (3) Have the authority to pursue legal, administrative, and other 
appropriate remedies or approaches to ensure the protection of, and 
advocacy for, the rights of eligible individuals with disabilities 
within the State and the American Indian Consortium;
    (4) Provide information on and make referrals to programs and 
services addressing the needs of individuals with disabilities in the 
State and the American Indian Consortium, including individuals with 
disabilities who are exiting from school programs;
    (5) Develop a statement of objectives and priorities on an annual 
basis and a plan for achieving these objectives and priorities;
    (6) Provide to the public, including individuals with disabilities 
and, as appropriate, their representatives, an opportunity to comment 
on the objectives and priorities established by, and activities of, the 
eligible system including--
    (i) The objectives and priorities for the activities of the 
eligible system for each year and the rationale for the establishment 
of those objectives and priorities; and
    (ii) The coordination of the PAIR program provided through eligible 
systems with the advocacy programs under--
    (A) Section 112 of the Act (CAP);
    (B) The Older Americans Act of 1965 (the State long-term care 
ombudsman program);
    (C) Part C of the DD Act; and
    (D) The PAIMI;

[[Page 21044]]

    (7) Establish a grievance procedure for clients or prospective 
clients of the eligible system to ensure that individuals with 
disabilities are afforded equal access to the services of the eligible 
system;
    (8) Use funds made available under this part to supplement and not 
supplant the non-Federal funds that would otherwise be made available 
for the purpose for which Federal funds are provided; and
    (9) Implement procedures designed to ensure that, to the maximum 
extent possible, mediation (and other alternative dispute resolution) 
procedures, which include good faith negotiation, are used before 
resorting to formal administrative or legal remedies.
    (b) To receive direct payment of funds under this part, an eligible 
system must provide to the Secretary, as part of its application for 
assistance, an assurance that direct payment is not prohibited by or 
inconsistent with tribal or State law, regulation, or policy.


(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sections 12(c) and 509(f) and (g)(1) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) and 794e(f) 
and (g)(1))

Subpart C--How Does the Secretary Make an Award?


Sec.  381.20  How does the Secretary evaluate an application?

    In any fiscal year in which the amount appropriated for the PAIR 
program is less than $5,500,000, the Secretary evaluates applications 
under the procedures in 34 CFR part 75.

(Authority: Sections 12(c) and 509(b) and (f) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 794e(b) and (f))

Sec.  381.22  How does the Secretary allocate funds under this program?

    (a) In any fiscal year in which the amount appropriated for this 
program is equal to or greater than $5,500,000--
    (1) The Secretary sets aside not less than 1.8 percent but not more 
than 2.2 percent of the amount appropriated to provide a grant, 
contract, or cooperative agreement for training and technical 
assistance to eligible systems carrying out activities under this part.
    (2) After the reservation required by paragraph (a)(1) of this 
section, the Secretary makes allotments from the remainder of the 
amount appropriated in accordance with section 509(c)(2)-(d) of the 
Act.
    (b) Notwithstanding any other provision of law, in any fiscal year 
in which the amount appropriated for this program is equal to or 
greater than $5,500,000, the Secretary pays directly to an eligible 
system that submits an application that meets the requirements of Sec.  
381.10 the amount of the allotment to the State pursuant to section 509 
of the Act, unless the State provides otherwise.
    (c) For any fiscal year in which the amount appropriated to carry 
out this program equals or exceeds $10,500,000, the Secretary shall 
reserve a portion, and use the portion to make a grant for the eligible 
system serving the American Indian Consortium. The Secretary shall make 
the grant in an amount of not less than $50,000 for the fiscal year.
    (d) Reallotment. (1) For any fiscal year in which the amount 
appropriated to carry out this program equals or exceeds $5,500,000 and 
if the Secretary determines that any amount of an allotment to an 
eligible system within a State will not be expended by such system in 
carrying out the provisions of this part, the Secretary shall make such 
amount available to one or more of the eligible systems that the 
Secretary determines will be able to use additional amounts during such 
year for carrying out this part.
    (2) Any reallotment amount made available to an eligible system for 
any fiscal year shall, for the purposes of this section, be regarded as 
an increase in the eligible system's allotment under this part for that 
fiscal year.

(Authority: Sections 12(c) and 509(c)-(e) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c) and 794e(c)-(e))

Subpart D--What Conditions Must Be Met After an Award?


Sec.  381.30  How are services to be administered?

    (a) Each eligible system shall carry out the protection and 
advocacy program authorized under this part.
    (b) An eligible system may not award a grant or make a subaward to 
another entity to carry out, in whole or in part, the protection and 
advocacy program authorized under this part.
    (c) An eligible system may contract with another agency, entity, or 
individual to carry out the PAIR program in whole or in part, but only 
if the agency, entity, or individual with whom the eligible system has 
contracted--
    (1) Does not provide services under the Act or does not provide 
treatment, services, or habilitation to persons with disabilities; and
    (2) Is independent of, and not connected financially or through a 
board of directors to, an entity or individual that provides services 
under the Act or that provides treatment, services, or habilitation to 
persons with disabilities.
    (d) For purposes of paragraph (c) of this section, ``services under 
the Act'' and ``treatment, services, or habilitation'' does not include 
client assistance services under CAP, protection and advocacy services 
authorized under the protection and advocacy programs under part C of 
the DD Act and the PAIMI, or any other protection and advocacy 
services.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Sec.  381.31  What are the requirements pertaining to the protection, 
use, and release of personal information?

    (a) All personal information about individuals served by any 
eligible system under this part, including lists of names, addresses, 
photographs, and records of evaluation, must be held confidential.
    (b) The eligible system's use of information and records concerning 
individuals must be limited only to purposes directly connected with 
the protection and advocacy program, including program evaluation 
activities. Except as provided in paragraph (c) of this section, an 
eligible system may not disclose personal information about an 
individual, directly or indirectly, other than in the administration of 
the protection and advocacy program, unless the consent of the 
individual to whom the information applies, or his or her guardian, 
parent, or other authorized representative or advocate (including the 
individual's advocate from the eligible system), has been obtained in 
writing. An eligible system may not produce any report, evaluation, or 
study that reveals any personally identifying information without the 
written consent of the individual or his or her representative.
    (c) Except as limited in paragraph (d) of this section, the 
Secretary or other Federal or State officials responsible for enforcing 
legal requirements must be given complete access to all--
    (1) Records of the eligible system receiving funds under this 
program; and
    (2) All individual case records of clients served under this part 
without the consent of the client.
    (d)(1) The privilege of a person or eligible system not to produce 
documents or provide information pursuant to paragraph (c) of this 
section is governed by the principles of common law as interpreted by 
the courts of the United States, except that, for purposes of any 
periodic audit,

[[Page 21045]]

report, or evaluation of the performance of the eligible system 
established or assisted under this part, the Secretary does not require 
the eligible system to disclose the identity of, or any other 
personally identifiable information related to, any individual 
requesting assistance under the PAIR program.
    (2) However, notwithstanding paragraph (d)(1) of this section, if 
an audit, monitoring review, State plan assurance review, evaluation, 
or other investigation has already produced independent and reliable 
evidence that there is probable cause to believe that the eligible 
system has violated its legislative mandate or misused Federal funds, 
the eligible system shall disclose, if the Secretary so requests, the 
identity of, or any other personally identifiable information (i.e., 
name, address, telephone number, social security number, or other 
official code or number by which an individual may be readily 
identified) related to, any individual requesting assistance under the 
PAIR program, in accordance with the principles of common law as 
interpreted by the courts of the United States.

(Authority: Sections 12(c) and 509(h) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 794e(h))

Sec.  381.32  What are the reporting requirements?

    Each eligible system shall provide to the Secretary, no later than 
90 days after the end of each fiscal year, an annual report that 
includes information on the following:
    (a) The types of services and activities undertaken by the eligible 
system and how these services and activities addressed the objectives 
and priorities developed pursuant to Sec.  381.10(a)(6).
    (b) The total number of individuals, by race, color, national 
origin, gender, age, and disabling condition, who requested services 
from the eligible system and the total number of individuals, by race, 
color, national origin, gender, age, and disabling condition, who were 
served by the eligible system.
    (c) The types of disabilities represented by individuals served by 
the eligible system.
    (d) The types of issues being addressed on behalf of individuals 
served by the eligible system.
    (e) Any other information that the Secretary may require.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sections 12(c), 13, and 509(k) of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 709(c), 710, and 794e(k))

Sec.  381.33  What are the requirements related to the use of funds 
provided under this part?

    (a) Funds made available under this part must be used to supplement 
and not supplant the non-Federal funds that would otherwise be made 
available for the purpose for which Federal funds are provided under 
this part.
    (b) In any State in which an eligible system is located within a 
State agency, that State or State agency may not use more than five 
percent of any allotment for the costs of administration of the 
eligible system supported under this part. For purposes of this 
paragraph, ``costs of administration'' include, but are not limited to, 
administrative salaries (including salaries for clerical and support 
staff), supplies, depreciation or use allowances, the cost of operating 
and maintaining facilities, equipment, and grounds (e.g., rental of 
office space or equipment, telephone, postage, maintenance agreements), 
and other similar types of costs that may be incurred by the State or 
State agency to administer the eligible system.
    (c) Funds paid to an eligible system within a State for a fiscal 
year to carry out this program that are not expended or obligated prior 
to the end of that fiscal year remain available to the eligible system 
within a State for obligation during the succeeding fiscal year in 
accordance with section 509(g) of the Act and 34 CFR 76.709.
    (d) For determining when an eligible system makes an obligation for 
various kinds of property or services, 34 CFR 75.707 and 76.707, as 
appropriate, apply to this program. If the appropriation for the PAIR 
program is less than $5,500,000, Sec.  75.707 applies. If the 
appropriation for the PAIR program is equal to or greater than 
$5,500,000, Sec.  76.707 applies. An eligible system is considered a 
State for purposes of Sec.  76.707.
    (e) Program income. (1) Program income means gross income earned by 
the designated agency that is directly generated by an activity 
supported under this part.
    (2) Grantees are authorized to treat program income as--
    (i) A deduction from total allowable costs charged to a Federal 
grant, in accordance with 2 CFR 200.307(e)(1); or
    (ii) An addition to the grant funds to be used for additional 
allowable program expenditures, in accordance with 2 CFR 200.307(e)(2).
    (3) Any Federal funds, including reallotted funds, that are 
appropriated for a fiscal year to carry out a program under this part 
that are not obligated or expended prior to the beginning of the 
succeeding fiscal year, and any program income received during a fiscal 
year that is not obligated or expended prior to the beginning of the 
succeeding fiscal year in which the program income was received, remain 
available for obligation and expenditure by the grantee during that 
succeeding fiscal year.

(Authority: Sections 12(c), 19, and 509(f)(7), (g), and (i) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c), 716, and 
794e(f)(7), (g), and (i); and 20 U.S.C. 3474)

0
10. Part 385 is revised to read as follows:

PART 385--REHABILITATION TRAINING

Subpart A--General
Sec.
385.1 What is the Rehabilitation Training program?
385.2 Who is eligible for assistance under these programs?
385.3 What regulations apply to these programs?
385.4 What definitions apply to these programs?
Subpart B [Reserved]
Subpart C--How Does One Apply for a Grant?
385.20 What are the application procedures for these programs?
Subpart D--How Does the Secretary Make a Grant?
385.30 [Reserved]
385.31 How does the Secretary evaluate an application?
385.33 What other factors does the Secretary consider in reviewing 
an application?
Subpart E--What Conditions Must Be Met by a Grantee?
385.40 What are the requirements pertaining to the membership of a 
project advisory committee?
385.41 What are the requirements affecting the collection of data 
from designated State agencies?
385.42 What are the requirements affecting the dissemination of 
training materials?
385.43 What requirements apply to the training of rehabilitation 
counselors and other rehabilitation personnel?
385.44 What requirement applies to the training of individuals with 
disabilities?
385.45 What additional application requirements apply to the 
training of individuals for rehabilitation careers?
385.46 What limitations apply to the rate of pay for experts or 
consultants appointed or serving under contract under the 
Rehabilitation Training program?

    Authority: Sections 12(c), 301, and 302 of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c), 771 and 772, unless 
otherwise noted.

[[Page 21046]]

Subpart A--General


Sec.  385.1  What is the Rehabilitation Training program?

    (a) Purpose. The Rehabilitation Training program is designed to--
    (1) Ensure that skilled personnel are available to provide 
rehabilitation services to individuals with disabilities through 
vocational, medical, social, and psychological rehabilitation programs 
(including supported employment programs), through economic and 
business development programs, through independent living services 
programs, and through client assistance programs;
    (2) Maintain and upgrade basic skills and knowledge of personnel 
employed, including personnel specifically trained to deliver 
rehabilitation services, including supported employment services and 
customized employment services, to individuals with the most 
significant disabilities, and personnel specifically trained to deliver 
services to individuals with disabilities whose employment outcome is 
self-employment, business ownership, or telecommuting, to provide 
state-of-the-art service delivery and rehabilitation technology 
services; and
    (3) Provide training and information to individuals with 
disabilities, the parents, families, guardians, advocates, and 
authorized representatives of the individuals, and other appropriate 
parties to develop the skills necessary for individuals with 
disabilities to access the rehabilitation system and to become active 
decision makers in the vocational rehabilitation process.
    (b) The Secretary awards grants and contracts on a competitive 
basis to pay part of the costs of projects for training, traineeships 
or scholarships, and related activities, including the provision of 
technical assistance, to assist in increasing the numbers of qualified 
personnel trained in providing vocational rehabilitation services and 
other services provided under the Act, to individuals with 
disabilities. Financial assistance is provided through multiple 
training programs, including:
    (1) Rehabilitation Long-Term Training (34 CFR part 386).
    (2) Innovative Rehabilitation Training (34 CFR part 387).
    (3) Rehabilitation Short-Term Training (34 CFR part 390).
    (4) Training of Interpreters for Individuals Who Are Deaf and Hard 
of Hearing and Individuals Who Are Deaf-Blind (34 CFR part 396).

(Authority: Sections 12(c), 301 and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c), 771 and 772)

Sec.  385.2  Who is eligible for assistance under these programs?

    States and public or private nonprofit agencies and organizations, 
including Indian tribes and institutions of higher education, are 
eligible for assistance under the Rehabilitation Training program.

(Authority: Sections 7(19), 301, and 302 of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 705(19), 771 and 772)

Sec.  385.3  What regulations apply to these programs?

    The following regulations apply to the Rehabilitation Training 
program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 75 (Direct Grant Programs).
    (2) 34 CFR part 77 (Definitions That Apply to Department 
Regulations).
    (3) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (4) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (5) 34 CFR part 82 (New Restrictions on Lobbying).
    (6) 34 CFR part 84 (Governmentwide Requirements for Drug-Free 
Workplace (Financial Assistance).
    (7) 34 CFR part 86 (Drug-Free Schools and Campuses).
    (8) 34 CFR part 97 (Protection of Human Subjects).
    (9) 34 CFR part 98 (Student Rights in Research, Experimental 
Programs, and Testing.
    (10) 34 CFR part 99 (Family Educational Rights and Privacy).
    (b) The regulations in this part 385.
    (c) The regulations in 34 CFR parts 386, 387, 390, and 396, as 
appropriate.
    (d)(1) 2 CFR part 180 (OMB Guidelines to Agencies on Debarment and 
Suspension (Nonprocurement)), as adopted at 2 CFR part 3485; and
    (2) 2 CFR part 200 (Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards) as adopted at 2 
CFR part 3474.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 711(c) and 772)

Sec.  385.4  What definitions apply to these programs?

    (a) The following definitions in 34 CFR part 77 apply to the 
programs under the Rehabilitation Training Program--

Applicant
Application
Award
Budget Period
Department
EDGAR
Grantee
Nonprofit
Private
Project
Project Period
Public
Secretary

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))


    (b) The following definitions also apply to programs under the 
Rehabilitation Training program:
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 
as amended.
    Assistive technology means technology designed to be utilized in an 
assistive technology device or assistive technology service.
    Assistive technology device means any item, piece of equipment, or 
product system, whether acquired commercially off the shelf, modified, 
or customized, that is used to increase, maintain, or improve 
functional capabilities of individuals with disabilities.
    Assistive technology service means any service that directly 
assists an individual with a disability in the selection, acquisition, 
or use of an assistive technology device. The term includes--
    (1) The evaluation of the needs of an individual with a disability, 
including a functional evaluation of the individual in the individual's 
customary environment;
    (2) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by individuals with disabilities;
    (3) Selecting, designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing of assistive technology devices;
    (4) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing education and rehabilitation plans and programs;
    (5) Training or technical assistance for an individual with 
disabilities, or, if appropriate, the family of an individual with 
disabilities;
    (6) Training or technical assistance for professionals (including 
individuals providing education and rehabilitation services), 
employers, or other individuals who provide services to, employ, or are 
otherwise substantially involved in the major life functions of 
individuals with disabilities; and
    (7) A service consisting of expanding the availability of access to 
technology, including electronic and information

[[Page 21047]]

technology, to individuals with disabilities.
    Community rehabilitation program means a program that provides 
directly or facilitates the provision of vocational rehabilitation 
services to individuals with disabilities, and that provides, singly or 
in combination, for an individual with a disability to enable the 
individual to maximize opportunities for employment, including career 
advancement--
    (1) Medical, psychiatric, psychological, social, and vocational 
services that are provided under one management;
    (2) Testing, fitting, or training in the use of prosthetic and 
orthotic devices;
    (3) Recreational therapy;
    (4) Physical and occupational therapy;
    (5) Speech, language, and hearing therapy;
    (6) Psychiatric, psychological, and social services, including 
positive behavior management;
    (7) Assessment for determining eligibility and vocational 
rehabilitation needs;
    (8) Rehabilitation technology;
    (9) Job development, placement, and retention services;
    (10) Evaluation or control of specific disabilities;
    (11) Orientation and mobility services for individuals who are 
blind;
    (12) Extended employment;
    (13) Psychosocial rehabilitation services;
    (14) Supported employment services and extended services;
    (15) Services to family members when necessary to the vocational 
rehabilitation of the individual;
    (16) Personal assistance services; or
    (17) Services similar to the services described in paragraphs (1) 
through (16) of this definition.
    Designated State agency means an agency designated under section 
7(8) and 101(a)(2)(A) of the Act.
    Designated State unit means
    (1) Any State agency unit required under section 7(8) and 
101(a)(2)(B) of the Act, or
    (2) In cases in which no State agency unit is required, the State 
agency described in section 101(a)(2)(B)(ii) of the Act.
    Independent living core services means--
    (1) Information and referral services;
    (2) Independent living skills training;
    (3) Peer counseling, including cross-disability peer counseling; 
and
    (4) Individual and systems advocacy.
    Independent living services includes--
    (1) Independent living core services; and
    (2)(i) Counseling services, including psychological, 
psychotherapeutic, and related services;
    (ii) Services related to securing housing or shelter, including 
services related to community group living, and supportive of the 
purposes of this Act and of the titles of this Act, and adaptive 
housing services (including appropriate accommodations to and 
modifications of any space used to serve, or occupied by, individuals 
with disabilities);
    (iii) Rehabilitation technology;
    (iv) Mobility training;
    (v) Services and training for individuals with cognitive and 
sensory disabilities, including life skills training, and interpreter 
and reader services;
    (vi) Personal assistance services, including attendant care and the 
training of personnel providing these services;
    (vii) Surveys, directories, and other activities to identify 
appropriate housing, recreation opportunities, and accessible 
transportation, and other support services;
    (viii) Consumer information programs on rehabilitation and 
independent living services available under this Act, especially for 
minorities and other individuals with disabilities who have 
traditionally been unserved or underserved by programs under this Act;
    (ix) Education and training necessary for living in the community 
and participating in community activities;
    (x) Supported living;
    (xi) Transportation, including referral and assistance for 
transportation;
    (xii) Physical rehabilitation;
    (xiii) Therapeutic treatment;
    (xiv) Provision of needed prostheses and other appliances and 
devices;
    (xv) Individual and group social and recreational services;
    (xvi) Training to develop skills specifically designed for youths 
who are individuals with disabilities to promote self-awareness and 
esteem, develop advocacy and self-empowerment skills, and explore 
career options;
    (xvii) Services for children;
    (xviii) Services under other Federal, State, or local programs 
designed to provide resources, training, counseling, or other 
assistance of substantial benefit in enhancing the independence, 
productivity, and quality of life of individuals with disabilities;
    (xvix) Appropriate preventive services to decrease the need of 
individuals assisted under this Act for similar services in the future;
    (xx) Community awareness programs to enhance the understanding and 
integration of individuals with disabilities; and
    (xxi) Such other services as may be necessary and not inconsistent 
with the provisions of this Act.
    Individual with a disability means any individual who--
    (1) Has a physical or mental impairment, which for that individual 
constitutes or results in a substantial impediment to employment;
    (2) Can benefit in terms of an employment outcome from vocational 
rehabilitation services provided pursuant to title I, III, or VI of the 
Rehabilitation Act of 1973, as amended; and
    (3) Has a disability as defined in section 7(20)(B) of the Act.
    Individual with a significant disability means an individual with a 
disability--
    (1) Who has a severe physical or mental impairment that seriously 
limits one or more functional capacities (such as mobility, 
communication, self-care, self-direction, interpersonal skills, work 
tolerance, or work skills) in terms of an employment outcome;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) Who has one or more physical or mental disabilities resulting 
from amputation, arthritis, autism, blindness, burn injury, cancer, 
cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, 
hemiplegia, hemophilia, intellectual disability, respiratory or 
pulmonary dysfunction, mental illness, multiple sclerosis, muscular 
dystrophy, musculo-skeletal disorders, neurological disorders 
(including stroke and epilepsy), paraplegia, quadriplegia and other 
spinal cord conditions, sickle-cell anemia, specific learning 
disabilities, end-stage renal disease, or another disability or 
combination of disabilities determined on the basis of an assessment 
for determining eligibility and vocational rehabilitation needs.
    Institution of higher education has the meaning given the term in 
section 101(a) of the Higher Education Act (20 U.S.C. 1001(a)).
    Personal assistance services means a range of services provided by 
one or more persons designed to assist an individual with a disability 
to perform daily living activities on or off the job that the 
individual would typically perform if the individual did not have a 
disability. The services shall be designed to increase the individual's 
control in life and ability to perform everyday activities on or off 
the job.
    Qualified personnel: (1) For designated State agencies or 
designated State units, means personnel who have

[[Page 21048]]

met standards that are consistent with existing national or State 
approved or recognized certification, licensing, registration, or other 
comparable requirements that apply to the area in which such personnel 
are providing vocational rehabilitation services.
    (2) For other than designated State agencies or designated State 
units, means personnel who have met existing State certification or 
licensure requirements, or, in the absence of State requirements, have 
met professionally accepted requirements established by national 
certification boards.
    Rehabilitation services means services, including vocational, 
medical, social, and psychological rehabilitation services and other 
services under the Rehabilitation Act, provided to individuals with 
disabilities in performing functions necessary in preparing for, 
securing, retaining, or regaining an employment or independent living 
outcome.
    Rehabilitation technology means the systematic application of 
technologies, engineering methodologies, or scientific principles to 
meet the needs of and address the barriers confronted by individuals 
with disabilities in areas that include education, rehabilitation, 
employment, transportation, independent living, and recreation. The 
term includes rehabilitation engineering, assistive technology devices, 
and assistive technology services.
    State includes, in addition to each of the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.
    Stipend means financial assistance on behalf of individuals in 
support of their training, as opposed to salary payment for services 
provided within the project.
    Supported employment means competitive integrated employment, 
including customized employment, or employment in an integrated work 
setting in which individuals are working on a short-term basis toward 
competitive integrated employment, that is individualized and 
customized consistent with the strengths, abilities, interests, and 
informed choice of the individuals involved, for individuals with the 
most severe disabilities--
    (1)(i) For whom competitive integrated employment has not 
traditionally occurred; or
    (ii) For whom competitive employment has been interrupted or 
intermittent as a result of a severe disability; and
    (2) Who, because of the nature and severity of their disability, 
need intensive supported employment services from the designated State 
unit and extended services after transition in order to perform the 
work involved.
    Supported employment services means ongoing support services, 
including customized employment, and other appropriate services needed 
to support and maintain an individual with most severe disability in 
supported employment, that are--
    (1) Provided singly or in combination and are organized and made 
available in such a way as to assist an eligible individual in entering 
or maintaining integrated, competitive employment;
    (2) Based on a determination of the needs of an eligible 
individual, as specified in an individualized written rehabilitation 
program; and
    (3) Provided by the designated State unit for a period of time not 
more than 24 months, unless under special circumstances the eligible 
individual and the rehabilitation counselor or coordinator jointly 
agree to extend the time in order to achieve the rehabilitation 
objectives identified in the individualized plan for employment.
    Vocational rehabilitation services means services provided to an 
individual with a disability in preparing for, securing, retaining, or 
regaining an employment outcome that is consistent with the strengths, 
resources, priorities, concerns, abilities, capabilities, interests, 
and informed choice of the individual, and services provided for the 
benefit of groups of individuals with disabilities. Vocational 
Rehabilitation Services for an individual with a disability may 
include--
    (1) An assessment for determining eligibility and vocational 
rehabilitation needs by qualified personnel, including, if appropriate, 
an assessment by personnel skilled in rehabilitation technology;
    (2) Counseling and guidance, including information and support 
services to assist an individual in exercising informed choice;
    (3) Referral and other services to secure needed services from 
other agencies;
    (4) Job-related services, including job search and placement 
assistance, job retention services, follow-up services, and follow-
along services;
    (5) Vocational and other training services, including the provision 
of personal and vocational adjustment services, books, tools, and other 
training materials;
    (6) Diagnosis and treatment of physical and mental impairments;
    (7) Maintenance for additional costs incurred while the individual 
is receiving services;
    (8) Transportation;
    (9) On-the-job or other related personal assistance services;
    (10) Interpreter and reader services;
    (11) Rehabilitation teaching services, and orientation and mobility 
services;
    (12) Occupational licenses, tools, equipment, and initial stocks 
and supplies;
    (13) Technical assistance and other consultation services to 
conduct market analysis, develop business plans, and otherwise provide 
resources to eligible individuals who are pursuing self-employment or 
telecommuting or establishing a small business operation as an 
employment outcome;
    (14) Rehabilitation technology, including telecommunications, 
sensory, and other technological aids and devices;
    (15) Transition services for individuals with disabilities that 
facilitate the achievement of employment outcomes;
    (16) Supported employment services;
    (17) Services to the family of an individual with a disability 
necessary to assist the individual to achieve an employment outcome;
    (18) Post-employment services necessary to assist an individual 
with a disability to retain, regain, or advance in employment; and
    (19) Expansion of employment opportunities for individuals with 
disabilities, which includes, but is not limited to--
    (i) Self-employment, business ownership, and entrepreneurship;
    (ii) Non-traditional jobs, professional employment, and work 
settings;
    (iii) Collaborating with employers, Economic Development Councils, 
and others in creating new jobs and career advancement options in local 
job markets through the use of job restructuring and other methods; and
    (iv) Other services as identified by the Secretary and published in 
the Federal Register.

(Authority: Sections 7(40), 12(c), and 101(a)(7) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 705(40), 709(c), 
and 721(a)(7))

Subpart B--[Reserved]

Subpart C--How Does One Apply for a Grant?


Sec.  385.20  What are the application procedures for these programs?

    The Secretary gives the designated State agency an opportunity to 
review and comment on applications submitted

[[Page 21049]]

from within the State that it serves. The procedures to be followed by 
the applicant and the State are in 34 CFR 75.155-75.159.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

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


Sec.  385.30  [Reserved]


Sec.  385.31  How does the Secretary evaluate an application?

    (a) The Secretary evaluates applications under the procedures in 34 
CFR part 75.
    (b) The Secretary evaluates each application using selection 
criteria identified in parts 386, 387, 390, and 396, as appropriate.
    (c) In addition to the selection criteria described in paragraph 
(b) of this section, the Secretary evaluates each application using--
    (1) Selection criteria in 34 CFR 75.210;
    (2) Selection criteria established under 34 CFR 75.209; or
    (3) A combination of selection criteria established under 34 CFR 
75.209 and selection criteria in 34 CFR 75.210.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Sec.  385.33  What other factors does the Secretary consider in 
reviewing an application?

    In addition to the selection criteria listed in Sec.  75.210 and 
parts 386, 387, 390, and 396 the Secretary, in making awards under this 
program, considers such factors as--
    (a) The geographical distribution of projects in each 
Rehabilitation Training Program category throughout the country; and
    (b) The past performance of the applicant in carrying out similar 
training activities under previously awarded grants, as indicated by 
such factors as compliance with grant conditions, soundness of 
programmatic and financial management practices and attainment of 
established project objectives.

(Authority: Sections 12(c) and 302(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(b))


Subpart E--What Conditions Must Be Met by a Grantee?


Sec.  385.40  What are the requirements pertaining to the membership of 
a project advisory committee?

    If a project funded under 34 CFR parts 386, 387, 390, or 396 
establishes an advisory committee, its membership must include 
individuals with disabilities or parents, family members, guardians, 
advocates, or other authorized representatives of the individuals; 
members of minority groups; trainees; and providers of vocational 
rehabilitation and independent living rehabilitation services.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Sec.  385.41  What are the requirements affecting the collection of 
data from designated State agencies?

    If the collection of data is necessary from individuals with 
disabilities being served by two or more designated State agencies or 
from employees of two or more of these agencies, the project director 
must submit requests for the data to appropriate representatives of the 
affected agencies, as determined by the Secretary. This requirement 
also applies to employed project staff and individuals enrolled in 
courses of study supported under these programs.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Sec.  385.42  What are the requirements affecting the dissemination of 
training materials?

    A set of any training materials developed under the Rehabilitation 
Training Program must be submitted to any information clearinghouse 
designated by the Secretary.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Sec.  385.43  What requirements apply to the training of rehabilitation 
counselors and other rehabilitation personnel?

    Any grantee who provides training of rehabilitation counselors or 
other rehabilitation personnel under any of the programs in 34 CFR 
parts 386, 387, 390, and 396 must train those counselors and personnel 
on the services provided under this Act, and, in particular, services 
provided in accordance with amendments made to the Rehabilitation Act 
by the Workforce Innovation and Opportunity Act of 2014. The grantee 
must also furnish training to these counselors and personnel regarding 
applications of rehabilitation technology in vocational rehabilitation 
services, the applicability of section 504 of this Act, title I of the 
Americans with Disabilities Act of 1990, and the provisions of titles 
II and XVI of the Social Security Act that are related to work 
incentives for individuals with disabilities.

(Authority: Sections 12(c), 101(a), and 302 of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c), 721(a) and 772)

Sec.  385.44  What requirement applies to the training of individuals 
with disabilities?

    Any grantee or contractor who provides training under any of the 
programs in 34 CFR parts 386 through 390 and 396 shall give due regard 
to the training of individuals with disabilities as part of its effort 
to increase the number of qualified personnel available to provide 
rehabilitation services.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c)

Sec.  385.45  What additional application requirements apply to the 
training of individuals for rehabilitation careers?

    (a) All applicants for a grant or contract to provide training 
under any of the programs in 34 CFR parts 386 through 390 and 396 shall 
demonstrate how the training they plan to provide will prepare 
rehabilitation professionals to address the needs of individuals with 
disabilities from minority backgrounds.
    (b) All applicants for a grant under any of the programs in 34 CFR 
parts 386 through 390 and 396 shall include a detailed description of 
strategies that will be utilized to recruit and train persons so as to 
reflect the diverse populations of the United States, as part of the 
effort to increase the number of individuals with disabilities, and 
individuals who are members of minority groups, who are available to 
provide rehabilitation services.

(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sections 21(a) and (b) and 302 of the Rehabilitation Act 
of 1973, as amended; 29 U.S.C. 718(a) and (b) and 772)

Sec.  385.46  What limitations apply to the rate of pay for experts or 
consultants appointed or serving under contract under the 
Rehabilitation Training program?

    An expert or consultant appointed or serving under contract 
pursuant to this section shall be compensated at a rate subject to 
approval of the Commissioner which shall not exceed the daily 
equivalent of the rate of pay for level 4 of the Senior Executive 
Service Schedule under section 5382 of title 5, United States Code. 
Such an expert or consultant may be allowed travel and transportation 
expenses in accordance with section 5703 of title 5, United States 
Code.

(Authority: Section 302(b)(3) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772(b)(3))


0
11. Part 386 is revised to read as follows:

[[Page 21050]]

Part 386--Rehabilitation Training: Rehabilitation Long-Term 
Training

Subpart A--General
Sec.
386.1 What is the Rehabilitation Long-Term Training program?


386.2  Who is eligible for an award?


386.3  What regulations apply?


386.4  What definitions apply?

Subpart B--[Reserved]
Subpart C--How Does the Secretary Make an Award?


386.20  What additional selection criteria are used under this program?

386.21 What are the application procedures for these programs?
Subpart D--What Conditions Must Be Met After an Award?
386.30 What are the matching requirements?
386.31 What are the requirements for directing grant funds?
386.32 What are allowable costs?
386.33 What are the requirements for grantees in disbursing 
scholarships?
386.34 What assurances must be provided by a grantee that intends to 
provide scholarships?
386.35 What information must be provided by a grantee that is an 
institution of higher education to assist designated State agencies?
386.36 What is a grantee's liability for failing to provide accurate 
and complete scholar information to the Department?
Subpart E--What Conditions Must Be Met by a Scholar?
386.40 What are the requirements for scholars?
386.41 Under what circumstances does the Secretary grant a deferral 
or exception to performance or repayment under a scholarship 
agreement?
386.42 What must a scholar do to obtain an exception or a deferral 
to performance or repayment under a scholarship agreement?
386.43 What are the consequences of a scholar's failure to meet the 
terms and conditions of a scholarship agreement?

    Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772, unless otherwise noted.

Subpart A--General


Sec.  386.1  What is the Rehabilitation Long-Term Training program?

    (a) The Rehabilitation Long-Term Training program provides 
financial assistance for--
    (1) Projects that provide basic or advanced training leading to an 
academic degree in one of those fields of study identified in paragraph 
(b) of this section;
    (2) Projects that provide a specified series of courses or program 
of study leading to award of a certificate in one of those fields of 
study identified in paragraph (b) of this section; and
    (3) Projects that provide support for medical residents enrolled in 
residency training programs in the specialty of physical medicine and 
rehabilitation.
    (b) The Rehabilitation Long-Term Training program is designed to 
provide academic training that leads to an academic degree or academic 
certificate in areas of personnel shortages identified by the Secretary 
and published in a notice in the Federal Register. These areas may 
include--
    (1) Assisting and supporting individuals with disabilities pursuing 
self-employment, business ownership, and telecommuting;
    (2) Vocational rehabilitation counseling;
    (3) Rehabilitation technology, including training on its use, 
applications, and benefits;
    (4) Rehabilitation medicine;
    (5) Rehabilitation nursing;
    (6) Rehabilitation social work;
    (7) Rehabilitation psychiatry;
    (8) Rehabilitation psychology;
    (9) Rehabilitation dentistry;
    (10) Physical therapy;
    (11) Occupational therapy;
    (12) Speech pathology and audiology;
    (13) Physical education;
    (14) Therapeutic recreation;
    (15) Community rehabilitation program personnel;
    (16) Prosthetics and orthotics;
    (17) Rehabilitation of individuals who are blind or visually 
impaired, including rehabilitation teaching and orientation and 
mobility;
    (18) Rehabilitation of individuals who are deaf or hard of hearing;
    (19) Rehabilitation of individuals who are mentally ill;
    (20) Undergraduate education in the rehabilitation services;
    (21) Independent living;
    (22) Client assistance;
    (23) Administration of community rehabilitation programs;
    (24) Rehabilitation administration;
    (25) Vocational evaluation and work adjustment;
    (26) Services to individuals with specific disabilities or specific 
impediments to rehabilitation, including individuals who are members of 
populations that are unserved or underserved by programs under this 
Act;
    (27) Job development and job placement services to individuals with 
disabilities;
    (28) Supported employment services and customized employment 
services for individuals with the most significant disabilities;
    (29) Specialized services for individuals with significant 
disabilities;
    (30) Other fields contributing to the rehabilitation of individuals 
with disabilities.

(Authority: Sections 12 and 302 of the Rehabilitation Act of 1973, 
as amended; 29 U.S.C. 709 and 772)

Sec.  386.2  Who is eligible for an award?

    Those agencies and organizations eligible for assistance under this 
program are described in 34 CFR 385.2.

(Authority: Section 302(a) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772(a))

Sec.  386.3  What regulations apply?

    The following regulations apply to the Rehabilitation Training: 
Rehabilitation Long-Term Training program:
    (a) The regulations in this part 386.
    (b) The regulations in 34 CFR part 385.

(Authority: Section 302(a) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772(a))

Sec.  386.4  What definitions apply?

    The following definitions apply to this program:
    (a) Definitions in 34 CFR 385.4.
    (b) Other definitions. The following definitions also apply to this 
part:
    Academic year means a full-time course of study--
    (1) Taken for a period totaling at least nine months; or
    (2) Taken for the equivalent of at least two semesters, two 
trimesters, or three quarters.
    Certificate means a recognized educational credential awarded by a 
grantee under this part that attests to the completion of a specified 
series of courses or program of study.
    Professional corporation or professional practice means--
    (1) A professional service corporation or practice formed by one or 
more individuals duly authorized to render the same professional 
service, for the purpose of rendering that service; and
    (2) The corporation or practice and its members are subject to the 
same supervision by appropriate State regulatory agencies as individual 
practitioners.
    Related agency means--
    (1) An American Indian rehabilitation program; or
    (2) Any of the following agencies that provide services to 
individuals with disabilities under an agreement or other arrangement 
with a designated State agency in the area of specialty for which 
training is provided:

[[Page 21051]]

    (i) A Federal, State, or local agency.
    (ii) A nonprofit organization.
    (iii) A professional corporation or professional practice group.
    Scholar means an individual who is enrolled in a certificate or 
degree granting course of study in one of the areas listed in Sec.  
386.1(b) and who receives scholarship assistance under this part.
    Scholarship means an award of financial assistance to a scholar for 
training and includes all disbursements or credits for student 
stipends, tuition and fees, books and supplies, and student travel in 
conjunction with training assignments.
    State vocational rehabilitation agency means the designated State 
agency as defined in 34 CFR 361.5(c)(13).

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Subpart B--[Reserved]

Subpart C--How Does the Secretary Make an Award?


Sec.  386.20  What additional selection criteria are used under this 
program?

    In addition to the criteria in 34 CFR 385.31(c), the Secretary uses 
the following additional selection criteria to evaluate an application:
    (a) Relevance to State-Federal vocational rehabilitation service 
program. (1) The Secretary reviews each application for information 
that shows that the proposed project appropriately relates to the 
mission of the State-Federal vocational rehabilitation service program.
    (2) The Secretary looks for information that shows that the project 
can be expected either--
    (i) To increase the supply of trained personnel available to State 
and other public or nonprofit agencies involved in the rehabilitation 
of individuals with disabilities through degree or certificate granting 
programs; or
    (ii) To improve the skills and quality of professional personnel in 
the rehabilitation field in which the training is to be provided 
through the granting of a degree or certificate.
    (b) Nature and scope of curriculum. (1) The Secretary reviews each 
application for information that demonstrates the adequacy of the 
proposed curriculum.
    (2) The Secretary looks for information that shows--
    (i) The scope and nature of the coursework reflect content that can 
be expected to enable the achievement of the established project 
objectives;
    (ii) The curriculum and teaching methods provide for an integration 
of theory and practice relevant to the educational objectives of the 
program;
    (iii) There is evidence of educationally focused practical and 
other field experiences in settings that ensure student involvement in 
the provision of vocational rehabilitation, supported employment, 
customized employment, pre-employment transition services, transition 
services, or independent living rehabilitation services to individuals 
with disabilities, especially individuals with significant 
disabilities;
    (iv) The coursework includes student exposure to vocational 
rehabilitation, supported employment, customized employment, employer 
engagement, and independent living rehabilitation processes, concepts, 
programs, and services; and
    (v) If applicable, there is evidence of current professional 
accreditation by the designated accrediting agency in the professional 
field in which grant support is being requested.

(Authority: Section 12(c) and 302 of the Rehabilitation Act of 1973, 
as amended; 29 U.S.C. 709(c) and 772)

Sec.  386.21  What are the application procedures for these programs?

    (a) Application. No grant shall be awarded or contract entered into 
under the Rehabilitation Long-Term Training program unless the 
applicant has submitted to the Secretary an application at such time, 
in such form, in accordance with such procedures identified by the 
Secretary and, and including such information as the Secretary may 
require, including--
    (1) A description of how the designated State unit or units will 
participate in the project to be funded under the grant or contract, 
including, as appropriate, participation on advisory committees, as 
practicum sites, in curriculum development, and in other ways so as to 
build closer relationships between the applicant and the designated 
State unit and to encourage students to pursue careers in public 
vocational rehabilitation programs;
    (2) The identification of potential employers that provide 
employment that meets the requirements in Sec.  386.33(c); and
    (3) An assurance that data on the employment of graduates or 
trainees who participate in the project is accurate.
    (b) The Secretary gives the designated State agency an opportunity 
to review and comment on applications submitted from within the State 
that it serves. The procedures to be followed by the applicant and the 
State are in 34 CFR 75.155-75.159.

(Authority: Sections 12(c) and 302(b)(2) and (d) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) and 
772(b)(2) and (d))

Subpart D--What Conditions Must Be Met After an Award?


Sec.  386.30  What are the matching requirements?

    The grantee is required to contribute at least ten percent of the 
total cost of a project under this program. However, if the grantee can 
demonstrate that it has insufficient resources to contribute the entire 
match but that it can fulfill all other requirements for receiving an 
award, the Secretary may waive part of the non-Federal share of the 
cost of the project after negotiations with Department staff.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Sec.  386.31  What are the requirements for directing grant funds?

    (a) A grantee must use at least 65 percent of the total cost of a 
project under this program for scholarships as defined in Sec.  386.4.
    (b) The Secretary may waive the requirement in (a) and award grants 
that use less than 65 percent of the total cost of the project for 
scholarships based upon the unique nature of the project, such as the 
establishment of a new training program or long-term training in an 
emerging field that does not award degrees or certificates.
    (c) A scholar may not receive concurrent scholarships from more 
than one project under this program.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Sec.  386.32  What are allowable costs?

    In addition to those allowable costs established in the Education 
Department General Administrative Regulations in 34 CFR 75.530 through 
75.562, the following items are allowable under long-term training 
projects:
    (a) Student stipends.
    (b) Tuition and fees.
    (c) Books and supplies.
    (d) Student travel in conjunction with required practicum or 
internship.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Sec.  386.33  What are the requirements for grantees in disbursing 
scholarships?

    Before disbursement of scholarship assistance to an individual, a 
grantee--

[[Page 21052]]

    (a)(1) Must obtain documentation that the individual is--
    (i) A U.S. citizen or national; or
    (ii) A permanent resident of the Commonwealth of Puerto Rico, the 
United States Virgin Islands, Guam, American Samoa, or the Commonwealth 
of the Northern Mariana Islands;
    (2) Must confirm from documentation issued to the individual by the 
U.S. Department of Homeland Security that he or she--
    (i) Is a lawful permanent resident of the United States; or
    (ii) Is in the United States for other than a temporary purpose 
with the intention of becoming a citizen or permanent resident; and
    (b) Must confirm that the applicant has expressed interest in a 
career in clinical practice, administration, supervision, teaching, or 
research in the vocational rehabilitation, supported employment, or 
independent living rehabilitation of individuals with disabilities, 
especially individuals with significant disabilities;
    (c) Must obtain documentation, as described in Sec.  386.40(a)(6), 
that the individual expects to seek and maintain employment in a 
designated State agency or in a related agency as defined in Sec.  
386.4 where
    (1) The employment is in the field of study in which the training 
was received or
    (2) Where the job functions are directly relevant to the field of 
study in which the training was received.
    (d) Must ensure that the scholarship, when added to the amount of 
financial aid the scholar receives for the same academic year under 
title IV of the Higher Education Act, does not exceed the scholar's 
cost of attendance;
    (e) Must limit scholarship assistance to no more than four academic 
years, unless the grantee provides an extension consistent with the 
institution's accommodations under section 504 of the Act; and
    (f) Must obtain a Certification of Eligibility for Federal 
Assistance from each scholar as prescribed in 34 CFR 75.60, 75.61, and 
75.62.


(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sections 12(c) and 302(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(b))

Sec.  386.34  What assurances must be provided by a grantee that 
intends to provide scholarships?

    A grantee under this part that intends to grant scholarships for 
any academic year must provide the following assurances before an award 
is made:
    (a) Requirement for agreement. No individual will be provided a 
scholarship without entering into a written agreement containing the 
terms and conditions required by this section. An individual will sign 
and date the agreement prior to the initial disbursement of scholarship 
funds to the individual for payment of the individual's expenses. An 
agreement must be executed between the grantee and scholar for each 
subsequent year that scholarship funds are disbursed and must contain 
the terms and conditions required by this section.
    (b) Disclosure to applicants. The terms and conditions of the 
agreement between the grantee and a scholar will be fully disclosed in 
the application for scholarship.
    (c) Form and terms of agreement. Prior to granting each year of a 
scholarship, the grantee will require each scholar to enter into a 
signed written agreement in which the scholar agrees to the terms and 
conditions set forth in Sec.  386.40. This agreement must be in the 
form and contain any additional terms and conditions that the Secretary 
may require.
    (d) Executed agreement. The grantee will provide an original signed 
executed payback agreement upon request to the Secretary.
    (e) Standards for satisfactory progress. The grantee will 
establish, publish, and apply reasonable standards for measuring 
whether a scholar is maintaining satisfactory progress in the scholar's 
course of study. The Secretary considers an institution's standards to 
be reasonable if the standards--
    (1) Conform with the standards of satisfactory progress of the 
nationally recognized accrediting agency that accredits the 
institution's program of study, if the institution's program of study 
is accredited by such an agency, and if the agency has those standards;
    (2) For a scholar enrolled in an eligible program who is to receive 
assistance under the Rehabilitation Act, are the same as or stricter 
than the institution's standards for a student enrolled in the same 
academic program who is not receiving assistance under the 
Rehabilitation Act; and
    (3) Include the following elements:
    (i) Grades, work projects completed, or comparable factors that are 
measurable against a norm.
    (ii) A maximum timeframe in which the scholar must complete the 
scholar's educational objective, degree, or certificate.
    (iii) Consistent application of standards to all scholars within 
categories of students; e.g., full-time, part-time, undergraduates, 
graduate students, and students attending programs established by the 
institution.
    (iv) Specific policies defining the effect of course incompletes, 
withdrawals, repetitions, and noncredit remedial courses on 
satisfactory progress.
    (v) Specific procedures for appeal of a determination that a 
scholar is not making satisfactory progress and for reinstatement of 
aid.
    (f) Exit certification. (1) At the time of exit from the program, 
the grantee will provide the following information to the scholar:
    (i) The name of the institution and the number of the Federal grant 
that provided the scholarship.
    (ii) the total amount of scholarship assistance received subject to 
Sec.  386.40(a)(6).
    (iii) The scholar's field of study and the obligation of the 
scholar to perform the service obligation with employment that meets 
the requirements in Sec.  386.40(a)(6)(i).
    (iv) The number of years the scholar needs to work to satisfy the 
work requirements in Sec.  386.40(a)(6)(ii).
    (v) The time period during which the scholar must satisfy the work 
requirements in Sec.  386.40(a)(7).
    (vi) As applicable, all other obligations of the scholar in Sec.  
386.40.
    (2) Upon receipt of this information from the grantee, the scholar 
must provide written and signed certification to the grantee that the 
information is correct.
    (g) Tracking system. The grantee has established policies and 
procedures to determine compliance of the scholar with the terms of the 
signed payback agreement. In order to determine whether a scholar has 
met the terms and conditions set forth in Sec.  386.40, the tracking 
system must include for each employment position maintained by the 
scholar--
    (1) Documentation of the employer's name, address, dates of the 
scholar's employment, name of supervisor, position title, a description 
of the duties the scholar performed, and whether the employment is 
full- or part-time;
    (2) Documentation of how the employment meets the requirements in 
Sec.  386.40(a)(6); and
    (3) In the event a grantee is experiencing difficulty locating a 
scholar, documentation that the grantee has checked with existing 
tracking systems operated by alumni organizations.
    (h) Reports. The grantee will make annual reports to the Secretary, 
unless more frequent reporting is required by the Secretary, that are 
necessary to carry

[[Page 21053]]

out the Secretary's functions under this part.
    (i) Repayment status. The grantee will immediately report to the 
Secretary whenever a scholar has entered repayment status under Sec.  
386.43(e) and provide all necessary documentation in support thereof.
    (j) Records. The grantee will maintain accurate and complete 
records as outlined in paragraphs (g) and (h) of this section for a 
period of time not less than one year beyond the date that all scholars 
provided financial assistance under the grant--
    (1) Have completed their service obligation or
    (2) Have entered into repayment status pursuant to Sec.  386.43(e).


(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sections 12(c) and 302(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(b))

Sec.  386.35  What information must be provided by a grantee that is an 
institution of higher education to assist designated State agencies?

    A grantee that is an institution of higher education provided 
assistance under this part must cooperate with the following requests 
for information from a designated State agency:
    (a) Information required by section 101(a)(7) of the Act which may 
include, but is not limited to--
    (1) The number of students enrolled by the grantee in 
rehabilitation training programs; and
    (2) The number of rehabilitation professionals trained by the 
grantee who graduated with certification or licensure, or with 
credentials to qualify for certification or licensure, during the past 
year.
    (b) Information on the availability of rehabilitation courses 
leading to certification or licensure, or the credentials to qualify 
for certification or licensure, to assist State agencies in the 
planning of a program of staff development for all classes of positions 
that are involved in the administration and operation of the State 
vocational rehabilitation program.


(Approved by the Office of Management and Budget under control number 
1820-0018)

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Sec.  386.36  What is a grantee's liability for failing to provide 
accurate and complete scholar information to the Department?

    The Department may recover, in whole or in part, from the grantee 
the debt amount and any collection costs described in Sec. Sec.  386.40 
and 386.43, if the Department:
    (a) Is unable to collect, or improperly collected, some or all of 
these amounts or costs from a scholar and
    (b) Determines that the grantee failed to provide to the Department 
accurate and complete documentation described in Sec.  386.34.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Subpart E--What Conditions Must Be Met by a Scholar?


Sec.  386.40  What are the requirements for scholars?

    (a) A scholar must--
    (1) Be enrolled in a course of study leading to a certificate or 
degree in one of the fields designated in Sec.  386.1(b);
    (2) Receive the training at the educational institution or agency 
designated in the scholarship;
    (3) Not accept payment of educational allowances from any other 
entity if that allowance conflicts with the scholar's obligation under 
section 302 of the Act and this part;
    (4) Enter into a signed written agreement with the grantee, prior 
to the receipt of scholarship funds, as required in Sec.  386.34(c);
    (5) Maintain satisfactory progress toward the certificate or degree 
as determined by the grantee;
    (6) Upon exiting the training program under paragraph (a)(1) of 
this section, subsequently maintain employment on a full- or part-time 
basis subject to the provisions in paragraph (b) of this section--
    (i)(A) In a State vocational rehabilitation agency or related 
agency as defined in Sec.  386.4; and
    (B)(1) In the field of study for which training was received, or
    (2) Where the field of study is directly relevant to the job 
functions performed; and
    (ii) For a period of at least the full-time equivalent of two years 
for every academic year for which assistance under this section was 
received subject to the provisions in paragraph (c) of this section for 
part-time coursework;
    (7) Complete the service obligation within a period, beginning 
after the recipient exits the training program for which the 
scholarship was awarded, of not more than the sum of the number of 
years in the period described in paragraph (a)(6)(ii) of this section 
and two additional years;
    (8) Repay all or part of any scholarship received, plus interest, 
if the individual does not fulfill the requirements of this section, 
except as provided for in Sec.  386.41 for exceptions and deferrals; 
and
    (9) Provide the grantee all requested information necessary for the 
grantee to meet the exit certification requirements in Sec.  386.34(f) 
and, as necessary, thereafter for any changes necessary for the grantee 
to monitor the scholar's service obligation under this section.
    (b)(1) The period of qualifying employment that meets the 
requirements of paragraph (a)(6) of this section may begin--
    (i) For courses of study of at least one year, only subsequent to 
the completion of one academic year of the training for which the 
scholarship assistance was received.
    (ii) For courses of study of less than one year, only upon 
completion of the training for which the scholarship assistance was 
received.
    (2) The work completed as part of an internship, practicum, or any 
other work-related requirement necessary to complete the educational 
program is not considered qualifying employment.
    (c) If the scholar is pursuing coursework on a part-time basis, the 
service obligation for these part-time courses is based on the 
equivalent total of actual academic years of training received.
    (d) If a scholar fails to provide the information in paragraph 
(a)(9) of this section or otherwise maintain contact with the grantee 
pursuant to the terms of the signed payback agreement and enters into 
repayment status pursuant to Sec.  386.43, the scholar will be held 
responsible for any costs assessed in the collection process under that 
section even if that information is subsequently provided.

(Authority: Sections 12(c) and 302(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(b))

Sec.  386.41  Under what circumstances does the Secretary grant a 
deferral or exception to performance or repayment under a scholarship 
agreement?

    Based upon sufficient evidence to substantiate the grounds as 
detailed in Sec.  386.42, a repayment exception to or deferral of the 
requirements of Sec.  386.40(a)(6) may be granted, in whole or in part, 
by the Secretary as follows:
    (a) Repayment is not required if the scholar--
    (1) Is unable to continue the course of study or perform the work 
obligation because of a permanent disability that meets one of the 
following conditions:
    (i) The disability had not been diagnosed at the time the scholar 
signed the agreement in Sec.  386.34(c); or
    (ii) The disability did not prevent the scholar from performing the

[[Page 21054]]

requirements of the course of study or the work obligation at the time 
the scholar signed the agreement in Sec.  386.34(c) but subsequently 
worsened; or
    (2) Has died.
    (b) Repayment of a scholarship may be deferred during the time the 
scholar is--
    (1) Engaging in a full-time course of study in the field of 
rehabilitation at an institution of higher education;
    (2) Serving on active duty as a member of the armed services of the 
United States for a period not in excess of four years;
    (3) Serving as a volunteer under the Peace Corps Act;
    (4) Serving as a full-time volunteer under title I of the Domestic 
Volunteer Service Act of 1973;
    (5) Experiencing a temporary disability that affects the scholar's 
ability to continue the course of study or perform the work obligation, 
for a period not to exceed three years; or
    (c) Under limited circumstances as determined by the Secretary and 
based upon credible evidence submitted on behalf of the scholar, the 
Secretary may grant an exception to, or deferral of, the requirement to 
repay a scholarship in instances not specified in this section. These 
instances could include, but are not limited to, the care of a disabled 
spouse, partner, or child or the need to accompany a spouse or partner 
on active duty in the Armed Forces.

(Authority: Sections 12(c) and 302(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(b))

Sec.  386.42  What must a scholar do to obtain an exception or a 
deferral to performance or repayment under a scholarship agreement?

    To obtain an exception or a deferral to performance or repayment 
under a scholarship agreement under Sec.  386.41, a scholar must 
provide the following:
    (a) Written application. A written application must be made to the 
Secretary to request a deferral or an exception to performance or 
repayment of a scholarship.
    (b) Documentation. Sufficient documentation must be provided to 
substantiate the grounds for all deferrals or exceptions, including the 
following, as appropriate.
    (1) Documentation necessary to substantiate an exception under 
Sec.  386.41(a)(1) or a deferral under Sec.  386.41(b)(5) must include 
a letter from a qualified physician or other medical professional, on 
official stationery, attesting how the disability affects the scholar 
in completing the course of study or performing the work obligation. 
The documentation must be less than three months old and include the 
scholar's diagnosis and prognosis and ability to complete the course of 
study or work with accommodations.
    (2) Documentation to substantiate an exception under Sec.  
386.41(a)(2) must include a death certificate or other evidence 
conclusive under State law.
    (3) Documentation necessary to substantiate a deferral or exception 
under 386.41(c) based upon the disability of a spouse, partner, or 
child must meet the criteria, as relevant, in paragraph (b)(1) of this 
section.
    (Approved by the Office of Management and Budget under control 
number 1820-0018)

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Sec.  386.43  What are the consequences of a scholar's failure to meet 
the terms and conditions of a scholarship agreement?

    In the event of a failure to meet the terms and conditions of a 
scholarship agreement or to obtain a deferral or an exception as 
provided in Sec.  386.41, the scholar must repay all or part of the 
scholarship as follows:
    (a) Amount. The amount of the scholarship to be repaid is 
proportional to the employment obligation not completed.
    (b) Interest rate. The Secretary charges the scholar interest on 
the unpaid balance owed in accordance with 31 U.S.C. 3717.
    (c) Interest accrual. (1) Interest on the unpaid balance accrues 
from the date the scholar is determined to have entered repayment 
status under paragraph (e) of this section.
    (2) Any accrued interest is capitalized at the time the scholar's 
repayment schedule is established.
    (3) No interest is charged for the period of time during which 
repayment has been deferred under Sec.  386.41.
    (d) Collection costs. Under the authority of 31 U.S.C. 3717, the 
Secretary may impose reasonable collection costs.
    (e) Repayment status. A scholar enters repayment status on the 
first day of the first calendar month after the earliest of the 
following dates, as applicable:
    (1) The date the scholar informs the Secretary he or she does not 
plan to fulfill the employment obligation under the agreement.
    (2) Any date when the scholar's failure to begin or maintain 
employment makes it impossible for that individual to complete the 
employment obligation within the number of years required in Sec.  
386.34(c)(1).
    (f) Amounts and frequency of payment. The scholar shall make 
payments to the Secretary that cover principal, interest, and 
collection costs according to a schedule established by the Secretary.

(Authority: Sections 12(c) and 302(b) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(b))


0
12. Part 387 is revised to read as follows:

PART 387--INNOVATIVE REHABILITATION TRAINING

Subpart A--General
Sec.
387.1 What is the Innovative Rehabilitation Training Program?
387.2 Who is eligible for assistance under this program?
387.3 What regulations apply to this program?
387.4 What definitions apply to this program?
387.5 What types of projects are authorized under this program?
Subpart B--[Reserved]
Subpart C--[Reserved]
Subpart D--How Does the Secretary Make a Grant?
387.30 What additional selection criteria are used under this 
program?
Subpart E--What Conditions Must Be Met by a Grantee?
387.40 What are the matching requirements?
387.41 What are allowable costs?

    Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c), and 772, unless otherwise noted.

Subpart A--General


Sec.  387.1  What is the Innovative Rehabilitation Training Program?

    This program is designed--
    (a) To develop new types of training programs for rehabilitation 
personnel and to demonstrate the effectiveness of these new types of 
training programs for rehabilitation personnel in providing 
rehabilitation services to individuals with disabilities;
    (b) To develop new and improved methods of training rehabilitation 
personnel so that there may be a more effective delivery of 
rehabilitation services to individuals with disabilities by designated 
State rehabilitation agencies and designated State rehabilitation units 
or other public or non-profit rehabilitation service agencies or 
organizations; and
    (c) To develop new innovative training programs for vocational 
rehabilitation professionals and paraprofessionals to have a 21st 
century understanding of the evolving labor force and the needs of 
individuals with

[[Page 21055]]

disabilities so they can more effectively provide vocational 
rehabilitation services to individuals with disabilities.

(Authority: Sections 12(c), 121(a)(7), and 302 of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c), 721(a)(7), and 772)

Sec.  387.2  Who is eligible for assistance under this program?

    Those agencies and organizations eligible for assistance under this 
program are described in 34 CFR 385.2.

(Authority: Section 12(c) and 302 of the Rehabilitation Act of 1973, 
as amended; 29 U.S.C. 709(c) and 772)

Sec.  387.3  What regulations apply to this program?

    (a) 34 CFR part 385 (Rehabilitation Training); and
    (b) The regulations in this part 387.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Sec.  387.4  What definitions apply to this program?

    The definitions in 34 CFR part 385 apply to this program.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772))

Sec.  387.5  What types of projects are authorized under this program?

    The Innovative Rehabilitation Training Program supports time-
limited pilot projects through which new types of rehabilitation 
workers may be trained or through which innovative methods of training 
rehabilitation personnel may be demonstrated.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772))

Subpart B--[Reserved]

Subpart C--[Reserved]

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


Sec.  387.30  What additional selection criteria are used under this 
program?

    In addition to the criteria in 34 CFR 385.31(c), the Secretary uses 
the following additional selection criteria to evaluate an application:
    (a) Relevance to State-Federal rehabilitation service program. (1) 
The Secretary reviews each application for information that shows that 
the proposed project appropriately relates to the mission of the State-
Federal rehabilitation service program.
    (2) The Secretary looks for information that shows that the project 
can be expected either--
    (i) To increase the supply of trained personnel available to public 
and private agencies involved in the rehabilitation of individuals with 
disabilities; or
    (ii) To maintain and improve the skills and quality of 
rehabilitation personnel.
    (b) Nature and scope of curriculum. (1) The Secretary reviews each 
application for information that demonstrates the adequacy and scope of 
the proposed curriculum.
    (2) The Secretary looks for information that shows that--
    (i) The scope and nature of the training content can be expected to 
enable the achievement of the established project objectives of the 
training project;
    (ii) The curriculum and teaching methods provide for an integration 
of theory and practice relevant to the educational objectives of the 
program;
    (iii) There is evidence of educationally focused practicum or other 
field experiences in settings that assure student involvement in the 
provision of vocational rehabilitation or independent living 
rehabilitation services to individuals with disabilities, especially 
individuals with significant disabilities; and
    (iv) The didactic coursework includes student exposure to 
vocational rehabilitation processes, concepts, programs, and services.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Subpart E--What Conditions Must Be Met by a Grantee?


Sec.  387.40  What are the matching requirements?

    A grantee must contribute to the cost of a project under this 
program in an amount satisfactory to the Secretary. The part of the 
costs to be borne by the grantee is determined by the Secretary at the 
time of the grant award.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

Sec.  387.41  What are allowable costs?

    In addition to those allowable costs established under 34 CFR 
75.530-75.562, the following items are allowable under Innovative 
Rehabilitation training projects--
    (a) Student stipends;
    (b) Tuition and fees; and
    (c) Student travel in conjunction with training assignments.

(Authority: Sections 12(c) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772)

PART 388--[REMOVED AND RESERVED]

0
13. Part 388 is removed and reserved.

PART 389--[REMOVED AND RESERVED]

0
14. Part 389 is removed and reserved.
0
15. Part 390 is revised to read as follows:

PART 390--REHABILITATION SHORT-TERM TRAINING

Subpart A--General
Sec.
390.1 What is the Rehabilitation Short-Term Training program?
390.2 Who is eligible for assistance under this program?
390.3 What regulations apply to this program?
390.4 What definitions apply to this program?
Subpart B--What Kinds of Projects Does the Department of Education 
Assist Under This Program?
390.10 What types of projects are authorized under this program?
Subpart C--[Reserved]
Subpart D--How Does the Secretary Make a Grant?
390.30 What additional selection criterion is used under this 
program?
Subpart E--What Conditions Must Be Met by a Grantee?
390.40 What are the matching requirements?
390.41 What are allowable costs?

    Authority: Sections 12(a) and (c) and 302 of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(a) and (c) and 772, unless 
otherwise noted.

Subpart A--General


Sec.  390.1  What is the Rehabilitation Short-Term Training program?

    This program is designed for the support of special seminars, 
institutes, workshops, and other short-term courses in technical 
matters relating to the vocational, medical, social, and psychological 
rehabilitation programs, independent living services programs, and 
client assistance programs.

(Authority: Sections 12(a)(2) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(a)(2) and 772)

Sec.  390.2  Who is eligible for assistance under this program?

    Those agencies and organizations eligible for assistance under this 
program are described in 34 CFR 385.2.

(Authority: Section 302 of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772)


[[Page 21056]]




Sec.  390.3  What regulations apply to this program?

    (a) 34 CFR part 385 (Rehabilitation Training); and
    (b) The regulations in this part 390.

(Authority: Section 302 of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772)

Sec.  390.4  What definitions apply to this program?

    The definitions in 34 CFR part 385 apply to this program.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Subpart B--What Kinds of Projects Does the Department of Education 
Assist Under This Program?


Sec.  390.10  What types of projects are authorized under this program?

    (a) Projects under this program are designed to provide short-term 
training and technical instruction in areas of special significance to 
the vocational, medical, social, and psychological rehabilitation 
programs, supported employment programs, independent living services 
programs, and client assistance programs.
    (b) Short-term training projects may be of regional or national 
scope.
    (c) Conferences and meetings in which training is not the primary 
focus may not be supported under this program.

(Authority: Section 12(a)(2) and 302 of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(a)(2) and 772)

Subpart C--[Reserved]

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


Sec.  390.30  What additional selection criterion is used under this 
program?

    In addition to the criteria in 34 CFR 385.31(c), the Secretary uses 
the following additional selection criterion to evaluate an 
application:
    (a) Relevance to State-Federal rehabilitation service program. (1) 
The Secretary reviews each application for information that shows that 
the proposed project appropriately relates to the mission of the State-
Federal rehabilitation service programs.
    (2) The Secretary looks for information that shows that the 
proposed project can be expected to improve the skills and competence 
of--
    (i) Personnel engaged in the administration or delivery of 
rehabilitation services; and
    (ii) Others with an interest in the delivery of rehabilitation 
services.
    (b) Evidence of training needs. The Secretary reviews each 
application for evidence of training needs as identified through 
training needs assessment conducted by the applicant or by designated 
State agencies or designated State units or any other public and 
private nonprofit rehabilitation service agencies or organizations that 
provide rehabilitation services and other services authorized under the 
Act, whose personnel will receive the training.

(Authority: Section 12(c) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 709(c))

Subpart E--What Conditions Must Be Met by a Grantee?


Sec.  390.40  What are the matching requirements?

    A grantee must contribute to the cost of a project under this 
program in an amount satisfactory to the Secretary. The part of the 
costs to be borne by the grantee is determined by the Secretary at the 
time of the award.

(Authority: Section 12(c) and 302 of the Rehabilitation Act of 1973, 
as amended; 29 U.S.C. 709(c) and 772)

Sec.  390.41  What are allowable costs?

    (a) In addition to those allowable costs established in 34 CFR 
75.530-75.562, the following items are allowable under short-term 
training projects:
    (1) Trainee per diem costs;
    (2) Trainee travel in connection with a training course;
    (3) Trainee registration fees; and
    (4) Special accommodations for trainees with handicaps.
    (b) The preparation of training materials may not be supported 
under a short-term training grant unless the materials are essential 
for the conduct of the seminar, institute, workshop or other short 
course for which the grant support has been provided.

(Authority: Section 12(c) and 302 of the Rehabilitation Act of 1973, 
as amended; 29 U.S.C. 709(c) and 772)


0
16. Part 396 is revised to read as follows:

PART 396--TRAINING OF INTERPRETERS FOR INDIVIDUALS WHO ARE DEAF OR 
HARD OF HEARING AND INDIVIDUALS WHO ARE DEAF-BLIND

Subpart A--General
Sec.
396.1 What is the Training of Interpreters for Individuals Who Are 
Deaf or Hard of Hearing and Individuals Who Are Deaf-Blind program?
396.2 Who is eligible for an award?
396.3 What regulations apply?
396.4 What definitions apply?
396.5 What activities may the Secretary fund?
Subpart B--[Reserved]
Subpart C--How Does One Apply for an Award?
396.20 What must be included in an application?
Subpart D--How Does the Secretary Make an Award?
396.30 How does the Secretary evaluate an application?
396.31 What additional selection criteria are used under this 
program?
396.32 What additional factors does the Secretary consider in making 
awards?
396.33 What priorities does the Secretary apply in making awards?
396.34 What are the matching requirements?

    Authority: Sections 12(c) and 302(a) and (f) of the 
Rehabilitation Act of 1973, as amended; 29 U.S.C. 709(c) and 772(a) 
and (f), unless otherwise noted.

Subpart A--General


Sec.  396.1  What is the Training of Interpreters for Individuals Who 
Are Deaf or Hard of Hearing and Individuals Who Are Deaf-Blind program?

    The Training of Interpreters for Individuals Who Are Deaf or Hard 
of Hearing and Individuals Who Are Deaf-Blind program is designed to 
establish interpreter training programs or to provide financial 
assistance for ongoing interpreter programs to train a sufficient 
number of qualified interpreters throughout the country in order to 
meet the communication needs of individuals who are deaf or hard of 
hearing and individuals who are deaf-blind by--
    (a) Training interpreters to effectively interpret and 
transliterate between spoken language and sign language, and to 
transliterate between spoken language and oral or tactile modes of 
communication;
    (b) Ensuring the maintenance of the interpreting skills of 
qualified interpreters; and
    (c) Providing opportunities for interpreters to raise their skill 
level competence in order to meet the highest standards approved by 
certifying associations.

(Authority: Sections 12(c) and 302(a) and (f) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 772(a) and (f))

Sec.  396.2  Who is eligible for an award?

    Public and private nonprofit agencies and organizations, including 
institutions of higher education, are eligible for assistance under 
this program.

(Authority: Section 302(f) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772(f))


[[Page 21057]]




Sec.  396.3  What regulations apply?

    The following regulations apply to the Training of Interpreters for 
Individuals Who Are Deaf or Hard of Hearing and Individuals Who Are 
Deaf-Blind program:
    (a) 34 CFR part 385 (Rehabilitation Training); and
    (b) The regulations under this part 396.

(Authority: Sections 12(c) and 302(f) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(f))

Sec.  396.4  What definitions apply?

    (a) Definitions in EDGAR. The following terms defined in 34 CFR 
77.1 apply to this part:

Applicant
Application
Award
Equipment
Grant
Nonprofit
Private
Project
Public
Secretary
Supplies

    (b) Definitions in the rehabilitation training regulations. The 
following terms defined in 34 CFR 385.4(b) apply to this part:

Individual With a Disability
Institution of Higher Education

    (c) Other definitions. The following definitions also apply to this 
part:
    Existing program that has demonstrated its capacity for providing 
interpreter training services means an established program with--
    (1) A record of training qualified interpreters who are serving the 
deaf, hard of hearing, and deaf-blind communities; and
    (2) An established curriculum that uses evidence-based practices in 
the training of interpreters and promising practices when evidence-
based practices are not available.
    Individual who is deaf means an individual who has a hearing 
impairment of such severity that the individual must depend primarily 
upon visual modes, such as sign language, speech reading, and gestures, 
or reading and writing to facilitate communication.
    Individual who is deaf-blind means an individual--
    (1)(i) Who has a central visual acuity of 20/200 or less in the 
better eye with corrective lenses, or a field defect such that the 
peripheral diameter of visual field subtends an angular distance no 
greater than 20 degrees, or a progressive visual loss having a 
prognosis leading to one or both of these conditions;
    (ii) Who has a chronic hearing impairment so severe that most 
speech cannot be understood with optimum amplification, or a 
progressive hearing loss having a prognosis leading to this condition; 
and
    (iii) For whom the combination of impairments described in 
paragraphs (1)(i) and (ii) of this definition causes extreme difficulty 
in attaining independence in daily life activities, achieving 
psychosocial adjustment, or obtaining a vocation;
    (2) Who, despite the inability to be measured accurately for 
hearing and vision loss due to cognitive or behavioral constraints, or 
both, can be determined through functional and performance assessment 
to have severe hearing and visual disabilities that cause extreme 
difficulty in attaining independence in daily life activities, 
achieving psychosocial adjustment, or obtaining vocational objectives; 
or
    (3) Who meets any other requirements that the Secretary may 
prescribe.
    Individual who is hard of hearing means an individual who has a 
hearing impairment such that, in order to facilitate communication, the 
individual depends upon visual modes, such as sign language, speech 
reading, and gestures, or reading and writing, in addition to any other 
auditory information.
    Interpreter for individuals who are deaf or hard of hearing means a 
qualified professional who uses sign language skills, cued speech, or 
oral interpreting skills, as appropriate to the needs of individuals 
who are deaf or hard of hearing, to facilitate communication between 
individuals who are deaf or hard of hearing and other individuals.
    Interpreter for individuals who are deaf-blind means a qualified 
professional who uses tactile or other manual language or 
fingerspelling modes, as appropriate to the needs of individuals who 
are deaf-blind, to facilitate communication between individuals who are 
deaf-blind and other individuals.
    Qualified professional means an individual who has--
    (1) Met existing certification or evaluation requirements 
equivalent to the highest standards approved by certifying 
associations; and
    (2) Successfully demonstrated interpreting skills that reflect the 
highest standards approved by certifying associations through prior 
work experience.
    Related agency means--
    (1) An American Indian rehabilitation program; or
    (2) Any of the following agencies that provide services to 
individuals with disabilities under an agreement or other arrangement 
with a designated State agency in the area of specialty for which 
training is provided:
    (i) A Federal, State, or local agency.
    (ii) A nonprofit organization.
    (iii) A professional corporation or professional practice group.

(Authority: Sections 12(c) and 302(f) of the Rehabilitation Act of 
1973, as amended and Section 206 of Pub. L. 98-221; 29 U.S.C. 709(c) 
and 772(f) and 29 U.S.C 1905)

Sec.  396.5  What activities may the Secretary fund?

    The Secretary may award grants to public or private nonprofit 
agencies or organizations, including institutions of higher educations, 
to provide assistance for establishment of interpreter training 
programs or for projects that provide training in interpreting skills 
for persons preparing to serve, and persons who are already serving, as 
interpreters for individuals who are deaf or hard of hearing, and as 
interpreters for individuals who are deaf-blind in public and private 
agencies, schools, and other service-providing institutions.

(Authority: Section 302(f) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772(f))

Subpart B--[Reserved]

Subpart C--How Does One Apply for an Award?


Sec.  396.20  What must be included in an application?

    Each applicant shall include in the application--
    (a) A description of the manner in which the proposed interpreter 
training program will be developed and operated during the five-year 
period following the award of the grant;
    (b) A description of the communication needs for training 
interpreters in the geographical area to be served by the project;
    (c) A description of the applicant's capacity or potential for 
providing training of interpreters for individuals who are deaf or hard 
of hearing and interpreters for individuals who are deaf-blind that is 
evidence-based, and based on promising practices when evidence-based 
practices are not available;
    (d) An assurance that any interpreter trained or retrained under 
this program shall meet those standards of competency for a qualified 
professional, that the Secretary may establish;
    (e) An assurance that the project shall cooperate or coordinate its 
activities, as appropriate, with the activities of other projects 
funded under this program;
    (f) The descriptions required in 34 CFR 385.45 with regard to the 
training

[[Page 21058]]

of individuals with disabilities, including those from minority groups, 
for rehabilitation careers; and
    (g) Such other information as the Secretary may require.
    (Approved by the Office of Management and Budget under control 
number 1820-0018)

(Authority: Sections 12(c), 21(c), and 302(f) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c), 718(c), and 772(f))

Subpart D--How Does the Secretary Make an Award?


Sec.  396.30  How does the Secretary evaluate an application?

    (a) The Secretary evaluates applications under the procedures in 34 
CFR part 75.
    (b) The Secretary evaluates each application using selection 
criteria in Sec.  396.31.
    (c) In addition to the selection criteria described in paragraph 
(b) of this section, the Secretary evaluates each application using--
    (1) Selection criteria in 34 CFR 75.210;
    (2) Selection criteria established under 34 CFR 75.209; or
    (3) A combination of selection criteria established under 34 CFR 
75.209 and selection criteria in 34 CFR 75.210.

(Authority: Section 302(f) of the Rehabilitation Act of 1973, as 
amended; 29 U.S.C. 772(f))

Sec.  396.31  What additional selection criteria are used under this 
program?

    In addition to the criteria in 34 CFR 396.30(c), the Secretary uses 
the following additional selection criterion to evaluate an 
application. The Secretary reviews each application to determine the 
extent to which--
    (a) The proposed interpreter training project was developed in 
consultation with State Vocational Rehabilitation agencies and their 
related agencies and consumers;
    (b) The training is appropriate to the needs of both individuals 
who are deaf or hard of hearing and individuals who are deaf-blind and 
to the needs of public and private agencies that provide services to 
either individuals who are deaf or hard of hearing or individuals who 
are deaf-blind in the geographical area to be served by the training 
project;
    (c) The curriculum for the training of interpreters includes 
evidence-based practices, and promising practices when evidence-based 
practices are not available;
    (d) There is a working relationship between the interpreter 
training project and State Vocational Rehabilitation agencies and their 
related agencies, and consumers; and
    (e) There are opportunities for individuals who are deaf or hard of 
hearing and individuals who are deaf-blind to provide input regarding 
the design and management of the training project.

(Authority: Sections 12(c) and 302(f) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(f))

Sec.  396.32  What additional factors does the Secretary consider in 
making awards?

    In addition to the selection criteria listed in Sec.  396.31 and 34 
CFR 75.210, the Secretary, in making awards under this part, considers 
the geographical distribution of projects throughout the country, as 
appropriate, in order to best carry out the purposes of this program. 
To accomplish this, the Secretary may in any fiscal year make awards of 
regional or national scope.

(Authority: Sections 12(c) and 302(f) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(f))

Sec.  396.33  What priorities does the Secretary apply in making 
awards?

    (a) The Secretary, in making awards under this part, gives priority 
to public or private nonprofit agencies or organizations, including 
institutions of higher education, with existing programs that have 
demonstrated their capacity for providing interpreter training.
    (b) In announcing competitions for grants and contracts, the 
Secretary may give priority consideration to--
    (1) Increasing the skill level of interpreters for individuals who 
are deaf or hard of hearing and individuals who are deaf-blind in the 
unserved or underserved geographic areas;
    (2) Existing programs that have demonstrated their capacity for 
providing interpreter training services that raise the skill level of 
interpreters in order to meet the highest standards approved by 
certifying associations; and
    (3) Specialized topical training based on the communication needs 
of individuals who are deaf or hard of hearing and individuals who are 
deaf-blind.

(Authority: Sections 12(c) and 302(f)(1)(C) of the Rehabilitation 
Act of 1973, as amended; 29 U.S.C. 709(c) and 772(f)(1)(C))

Sec.  396.34  What are the matching requirements?

    A grantee must contribute to the cost of a project under this 
program in an amount satisfactory to the Secretary. The part of the 
costs to be borne by the grantee is determined by the Secretary at the 
time of the grant award.

(Authority: Section 12(c) and 302(f) of the Rehabilitation Act of 
1973, as amended; 29 U.S.C. 709(c) and 772(f))


[FR Doc. 2015-05535 Filed 4-2-15; 4:15 pm]
 BILLING CODE 4000-01-P


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