34218 Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 / Proposed Rules

DEPARTMENT OF EDUCATION

34 CFR Part 379

RIN 1820–AB45

Projects With Industry

AGENCY: Office of Special Education and

Rehabilitative Services, Department of

Education.

ACTION: Notice of proposed rulemaking.

SUMMARY: The Secretary proposes to

amend the regulations governing the

performance indicators for the Projects

With Industry (PWI) program (34 CFR

Part 379). The PWI program is

authorized by section 621 of the

Rehabilitation Act of 1973, as amended

(the Act). The purpose of the PWI

program is to create and expand job and

career opportunities for individuals

with disabilities in the competitive

labor market by engaging the talent and

leadership of private industry as

partners in the rehabilitation process, to

identify competitive job and career

opportunities and the skills needed to

perform those jobs, to create practical

job and career readiness and training

programs, and to provide job

placements and career advancement.

The Secretary is proposing to change the

performance indicators for this program

in order to improve project

performance, enhance project

accountability, better reflect statutory

intent, and reduce grantee burden.

DATES: Comments must be received by

the Department on or before August 24,

1998.

ADDRESSES: All comments concerning

these proposed regulations should be

addressed to Fredric K. Schroeder,

Commissioner, Rehabilitation Services

Administration, U.S. Department of

Education, 600 Independence Avenue,

S.W., Room 3028, Mary E. Switzer

Building, Washington, D.C. 20202–2531.

Comments may also be sent through the

Internet to: Comments@ed.gov. You

must include the term ‘‘PWI’’ in the

subject line of the electronic comment.

To ensure that public comments have

maximum effect in developing the final

regulations, the Department urges

commenters to identify clearly the

specific section or sections of the

proposed regulations that each comment

addresses and to arrange comments in

the same order as the proposed

regulations.

Comments that concern information

collection requirements must be sent to

the Office of Management and Budget at

the address listed in the Paperwork

Reduction Act section of this preamble.

A copy of those comments may also be

sent to the Department representative

named in this section.

FOR FURTHER INFORMATION CONTACT:

Thomas E. Finch, U.S. Department of

Education, 600 Independence Avenue,

S.W., Room 3038, Mary E. Switzer

Building, Washington, D.C. 20202–2575.

Telephone: (202) 205–8292. Individuals

who use a telecommunications device

for the deaf (TDD) may call the Federal

Information Relay Service (FIRS) at 1–

800–877–8339 between 8 a.m. and 8

p.m., Eastern time, Monday through

Friday.

Individuals with disabilities may

obtain this document in an alternate

format (e.g. Braille, large print,

audiotape, or computer diskette) on

request to the contact person listed in

the preceding paragraph.

SUPPLEMENTARY INFORMATION:

Overview of Proposed Changes

The Secretary proposes to amend the

regulations governing the application

content requirements and performance

indicators for the PWI program in order

to clarify statutory intent, enhance

project accountability, and reduce

grantee burden.

In a notice of proposed rulemaking

(NPRM) published in the Federal

Register on January 22, 1996 (61 FR

1672), the Secretary invited comments

on changes needed to improve the

compliance indicators. The comments

received in response to this solicitation,

as well as comments provided by

participants in focus group meetings

held by the Rehabilitation Services

Administration (RSA), were used to

develop these proposed changes. In

addition, the Secretary used a June 1994

report on the PWI program entitled

‘‘Assessment of Performance Indicators

for the Projects With Industry Program,’’

prepared for the Department by

Research Triangle Institute (RTI), which

identifies needed changes in the PWI

performance indicators and scoring

system. To assist in revising the

compliance indicators and determining

the proposed minimum performance

levels, the Secretary also analyzed

grantee performance on the current PWI

compliance indicators.

Based on information from public

comments, the 1994 report prepared by

RTI, and experience in the

implementation of the program, the

Secretary is proposing one addition to

the application content requirements

and a number of changes in the

compliance indicators. The Secretary

believes that the additional application

content requirement regarding the

proposed cost per placement is needed

in light of the proposed changes to the

compliance indicators and to ensure

that cost-effective projects are selected

for funding. The Secretary proposes to

reduce the number of indicators from

nine to five, with an additional

indicator to be established at a later

date. These compliance indicators

establish minimum performance levels

in areas that the Secretary believes are

the most critical and most closely

related to the program’s purpose and

evaluation standards. To be eligible for

continued funding under the proposed

system, projects must meet or exceed

the minimum performance level for

each compliance indicator. However,

projects have two opportunities to meet

these criteria before funding is

terminated. If, based upon the end-ofyear data submission, a project fails any

compliance indicator, the project may

request that funding be continued for

the first six months of the subsequent

project year and agree to submit

additional data. At the end of the sixmonth period the project must submit

the data collected for those six months

to demonstrate that it has passed all the

compliance indicators. If the project

passes all the indicators, funding will

continue for the remainder of the project

year.

In this NPRM, the Secretary proposes

minimum performance levels for five

indicators. The proposed compliance

indicators measure a project’s (a)

placement rate; (b) average change in

weekly earnings; (c) percentage of

individuals placed who have severe

disabilities; (d) percentage of

individuals placed who were

unemployed at least six months at

project entry; and (e) variation between

projected and actual average cost per

placement. In addition, the Secretary

proposes to collect data from projects on

change in earnings and job retention.

The Secretary will use these data to

determine the need, and appropriate

performance levels, for new indicators

on change in earnings and job retention.

Section-by-Section Summary of the

Proposed Changes

The following is a summary of the

proposed changes contained in this

NPRM.

• In § 379.21(a)(4), the Secretary

proposes to add an application content

requirement that would require a

description of the factors that justify a

project’s projected cost per placement.

These factors may include the objectives

of the project, the types of services that

will be provided, the population that is

being targeted, and the proposed

geographicservice area. This is the only

proposed addition to the current

application content requirements.
Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 / Proposed Rules 34219

• In § 379.50, the Secretary proposes

to remove the reference to minimum

composite score and replace it with a

reference to minimum performance

levels on all compliance indicators.

Under the proposed system, grantees

must attain a minimum performance

level on each of the indicators rather

than achieve an overall composite score.

Grantees must pass every indicator in

order to receive continuation funding.

• In §§ 379.51 and 379.52, the

Secretary proposes to delete all

references to performance ranges in

accordance with the proposed change to

a system in which grantees must pass all

compliance indicators. The proposed

change deletes the reference to

composite scores and requires grantees

to pass each indicator by demonstrating

performance at or above the established

minimum levels.

• In § 379.53, the Secretary proposes

to replace the current nine performance

indicators with five compliance

indicators. The major areas of change

are outlined in the following sections

entitled ‘‘Compliance Indicators to be

Eliminated’’ and ‘‘Proposed Compliance

Indicators and Performance Levels.’’

• In § 379.54, the Secretary proposes

to make conforming changes to reflect

the change from composite scoring to a

pass/fail system. As under the current

regulations, projects must submit data

from the most recent complete project

year to demonstrate compliance, but (if

project performance during the most

recent complete year does not meet

minimum performance levels) may opt

to submit data from the first six months

of the current project year. In either

case, projects must submit data to

demonstrate compliance with minimum

performance levels on all of the

indicators.

Compliance Indicators To Be

Eliminated

The Secretary proposes to replace the

current nine indicators with five

compliance indicators. In addition, the

Secretary proposes to collect data that

may lead to a modified indicator on

change in earnings and data that may

form the basis of a future indicator on

job retention. Four compliance

indicators would be eliminated,

including cost per placement, projected

placement rate, percent of persons

served whose disabilities are severe, and

percent of persons served who have

been unemployed at least six months

prior to project entry. The Secretary

believes the proposed indicators better

reflect the goals of the PWI program,

place a greater emphasis on project

outcomes, and reduce grantee

information collection and reporting

burden.

The Secretary proposes to eliminate

the cost per placement indicator and

modify the projected cost per placement

indicator. The Secretary maintains the

importance of serving and placing

individuals at the lowest possible cost

to the Federal Government, but believes

it is not feasible to establish a cost per

placement standard that is reasonable

for all projects supported under the PWI

program. The Secretary recognizes that

some projects may not be able to

achieve a low cost per placement,

particularly projects that serve a high

percentage of individuals with severe

disabilities, provide extensive services,

or serve rural areas. In addition, the

Secretary is concerned that a uniform

cost per placement standard may

discourage projects from serving

individuals who require extensive

support services, job training, and other

resources. Therefore, the Secretary

believes it is more appropriate for

grantees to determine an appropriate

cost per placement and justify the

proposed cost, based on the proposed

project design and objectives, service

population, and services to be provided.

The proposed indicator would require

that a project’s actual cost per

placement not exceed the projected cost

per placement, as specified in the

approved grant application, by more

than 10 percent.

The Secretary also proposes to

eliminate the indicator on projected

placement rate. The Secretary believes it

is more appropriate to focus on a

project’s actual, rather than projected,

success in placing individuals in

competitive employment.

Finally, the Secretary proposes to

eliminate the two indicators that

measure the extent to which projects

serve individuals with severe

disabilities and individuals who have

been unemployed at least six months

prior to project entry. While the

Secretary believes that it is important to

preserve the program’s focus on

individuals with severe disabilities and

individuals who are unemployed, the

Secretary believes it is more appropriate

to judge projects based on the extent to

which they are successful in assisting

these individuals to achieve competitive

employment. The Secretary therefore

proposes to retain the two compliance

indicators that measure the percentage

of these individuals who are placed into

competitive employment.

Proposed Compliance Indicators and

Performance Levels

The proposed compliance indicators

would measure grantee performance in

five areas. The Secretary believes that

the proposed indicators represent the

most critical quantifiable aspects of

project performance. In establishing

minimum performance levels on each

indicator, the Secretary reviewed project

performance data, public comment in

response to the NPRM published in the

Federal Register on January 22, 1996,

focus group discussions, and the RTI

report.

Placement rate. The Secretary

proposes to retain the current placement

rate indicator and raise the minimum

performance level. The primary goal of

the PWI program is to place individuals

into competitive employment.

Therefore, the Secretary views

placement rate as a critical indicator of

project success. Under the proposed

indicator, projects would be required to

place a minimum of 55 percent of

individuals served into competitive

employment.

While higher than the current

minimum placement rate of 40 percent,

the Secretary believes the proposed

performance level is both appropriate

and realistic. Between 1990 and 1995,

PWI projects reported an average

placement rate of 61.2 percent. In

comparison, in 1996 approximately 60.7

percent of individuals served by The

State Vocational Rehabilitation Services

Program achieved an employment

outcome. The Secretary believes the

partnerships with private industry and

collaboration with State vocational

rehabilitation agencies will enable every

PWI project to achieve, at a minimum,

the proposed placement rate of 55

percent. In addition, given the proposal

to give more flexibility to projects on

cost per placement (discussed in the

following sections), the Secretary

believes it is appropriate to raise

performance expectations, particularly

on this critical indicator.

Average change in earnings. The

Secretary proposes to modify the

current indicator that measures average

change in earnings by raising the

minimum performance level. The

current minimum performance level

requires an average increase of $75 per

week. The proposed regulations would

change the required minimum

performance level to $150 per week for

projects that do not use a school-to-work

or supported employment service

delivery model. That is, the earnings of

individuals who are placed into

competitive employment by the project

must increase by an average of at least

$150 a week over earnings at the time

of project entry. Concurrently, the

Secretary proposes to collect data to

determine the need for additional

changes to this indicator.
34220 Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 / Proposed Rules

The Secretary believes that the

proposed increase in the minimum

performance level is appropriate given

both inflation and increases in the

minimum wage since the original

performance level for this indicator was

set in 1989. In addition, the Secretary

believes this proposed performance

level is realistic based on project

performance data that demonstrate an

overall average change in earnings of

$183 and $195 per week in fiscal years

1993 and 1994, respectively.

The Secretary proposes to establish a

lower performance level on this

indicator for PWI projects that primarily

serve secondary school students

transitioning to work or that use a

supported employment model. Based on

a review of these types of projects, the

Secretary has concluded that, by virtue

of the individuals they serve and place,

these projects might have difficulty

meeting the change in earnings

standard. The Secretary does not want

to exclude these types of projects from

the PWI program and, therefore,

proposes a lower minimum performance

level of $100 per week for these

projects. Specifically, the Secretary

proposes this lower standard for

projects in which 75 percent or more of

the individuals placed into competitive

employment are students who are

enrolled in secondary schools and who

are working fewer than 30 hours per

week and for projects in which at least

75 percent of individuals are placed into

supported employment, as defined in 34

CFR 361(b)(45) and (46). All other

projects will be subject to the higher

standard.

In addition to these changes, the

Secretary is proposing to collect data to

assess the need to modify the change in

earnings indicator to measure change in

earnings for two groups: (1) individuals

who entered a project without earnings

and (2) individuals who entered a

project with earnings. The Secretary

believes such a two-tiered indicator may

be a more accurate means of measuring

a project’s impact on individual

earnings. This proposed data collection

is discussed in more detail in the

section entitled ‘‘Proposed Data

Collection on Change in Earnings and

Job Retention.’’

Percent of individuals placed who are

individuals with severe disabilities and

percent of persons placed who have

been unemployed for six months prior

to project entry. The Secretary proposes

to retain these two indicators at the

current minimum performance level,

which requires that 50 percent of those

placed into competitive employment are

individuals with severe disabilities and

50 percent are individuals who have

been unemployed continuously for six

months prior to project entry. The

Secretary believes that it is appropriate

to preserve the program’s emphasis on

placing into competitive employment

individuals with severe disabilities and

individuals who are unemployed for at

least six months prior to program entry.

Actual versus projected cost per

placement. The Secretary proposes to

revise the current indicator on projected

cost per placement. The proposed

indicator would require that a project’s

actual cost per placement not exceed the

projected cost per placement, as

specified in the approved grant

application, by more than 10 percent.

That is, the actual average cost per

placement does not exceed 110 percent

of the projected cost per placement.

The Secretary proposes to allow each

project to determine what is a

reasonable cost per placement, based on

factors such as project objectives,

population and geographic area to be

served, and services to be provided. As

part of its grant application, a project

would be required to provide a

description of those factors that justify

its projected cost per placement,

including, but not limited to, the

project’s objectives, types of services,

target population, and service area. A

project chosen for funding would not be

permitted to exceed by more than 10

percent, the projected cost per

placement in its approved grant

application. The Secretary believes that

this revised approach to cost per

placement allows flexibility in project

design while encouraging each project

to consider cost effectiveness in the

development of its grant application.

Proposed Data Collection on Change in

Earnings and Job Retention

In addition to the five compliance

indicators, the Secretary is concurrently

proposing to collect data to determine

the need to modify the change in

earnings indicator and to add an

additional indicator on job retention.

Change in earnings. While the current

change in earnings indicator may

demonstrate the average economic

benefit of a project, the Secretary

believes it does not measure the true

extent to which the project improved

the earnings of individual participants.

The change in earnings as a result of

project participation is likely to be

significantly different for individuals

who were unemployed at the time of

project entry and who came to the

project for job training and placement

services than it is for individuals who

held a wage-earning job at the time of

project entry and who required career

advancement services. The Secretary is

considering the establishment of a twotiered indicator to measure more

adequately the effect of project services

on the earnings of these two

populations. However, the Secretary

does not have sufficient data on which

to base such a decision.

Concurrent with the proposed

application content and compliance

indicator changes, the Secretary

proposes to collect data to determine the

need for a modification to the change in

earnings indicator to measure project

performance for two groups: individuals

who entered the project without

earnings and individuals who entered

with earnings. The Secretary proposes

to require projects to report the

following data for the next three years:

(1) For individuals with no earnings

at the time of project entry, average

hourly wage and average hours worked

per week at placement.

(2) For individuals with earnings at

the time of project entry, the average

hourly wage and average hours worked

per week, both at the time of project

entry and at placement.

The Secretary plans to use these data

to decide whether a two-tiered indicator

would be a more accurate means of

gauging the earnings impact of the job

training and career advancement

services provided through the PWI

program, and what performance levels

would be appropriate for such an

indicator.

Job retention. The Secretary is

concurrently proposing to collect data to

determine the need to modify the

change in earnings indicator and

whether to add an additional indicator

on job retention. The Secretary believes

job retention is a critical indicator of

project success because it demonstrates

the quality of placements achieved by

projects. A high job retention rate may

indicate consumer satisfaction with the

placement, appropriate job matching,

and effective follow-up services.

In order to sample projects’ job

retention rates, the Secretary proposes

that projects report the number of

individuals who become unemployed

within three months after placement,

within six months after placement, and

within nine months after placement.

In accordance with § 379.5(b)(7),

placement occurs after the individual

has held the job for 90 days. The intent

of the 90-day period is to ensure that an

individual is at least initially stabilized

on a job. The proposed data collection

would require projects to track each

individual for up to nine months after

placement or up to one year after the

individual’s initial job entry. At the end

of the year, the project must report three

separate figures:
Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 / Proposed Rules 34221

• The number of individuals who

were unable to maintain employment

during the first three-month period after

placement (the fourth through sixth

months of employment).

• The number of individuals who

were unable to maintain employment

during the second three-month period

after placement (the seventh through

ninth month of employment).

• The number of individuals who

were unable to maintain employment

during the third three-month period

after placement (the tenth through

twelfth month of employment).

For the purpose of this data

collection, an individual can change

jobs and still be considered to be

employed as long as there is no gap in

employment.

In order to include all placements,

projects may have to include

individuals who were unable to

maintain employment during the

reporting year but who obtained

placements in the previous reporting

year. For example, if the reporting year

is from October 1997 to September

1998, an individual who was placed in

August 1997 but left the job in

December 1997 would be reported as

someone who was unable to maintain

employment during the second threemonth period after placement.

The Secretary does not believe this

will be a significant burden to projects,

since under section 621(a)(2)(E) projects

are required to provide, as necessary,

support and career advancement

services to individuals after they are

placed. In addition, as part of the annual

evaluation plan, projects must provide

information on the number of project

participants who were terminated from

project placements and the duration of

those placements. The Secretary thus

believes projects already track

individuals after they are placed.

The job retention indicator would be

established after the Secretary has

collected and evaluated data for at least

three years. Once collection and

analysis of the data are completed, the

Secretary would determine whether to

establish a new indicator to measure job

retention.

Goals 2000: Educate America Act

The Goals 2000: Educate America Act

(Goals 2000) focuses the Nation’s

education reform efforts on eight

National Education Goals and provides

a framework for meeting them. Goals

2000 promotes new partnerships to

strengthen schools and expands the

Department’s capacities for helping

communities to exchange ideas and

obtain information needed to achieve

the goals.

These proposed regulations would

address the National Education Goals

that every adult American will be

literate and will possess the knowledge

and skills necessary to compete in a

global economy and exercise the rights

and responsibilities of citizenship. The

proposed regulations would further the

objectives of this Goal by ensuring that

only those projects that are successful in

making persons with disabilities part of

the global economy and in allowing

them to exercise their rights as citizens

to participate in the national labor

market continue to receive Federal

funding.

Executive Order 12866

1. Potential Costs and Benefits

These proposed regulations have been

reviewed in accordance with Executive

Order 12866. Under the terms of the

order the Secretary has assessed the

potential costs and benefits of this

regulatory action.

The potential costs associated with

the proposed regulations are those

resulting from statutory requirements

and those determined by the Secretary

to be necessary for administering this

program effectively and efficiently.

Burdens specifically associated with

information collection requirements are

identified and explained elsewhere in

this preamble under the heading

Paperwork Reduction Act of 1995.

In assessing the potential costs and

benefits—both quantitative and

qualitative—of these proposed

regulations, the Secretary has

determined that the benefits of the

proposed regulations justify the costs.

The Secretary has also determined

that this regulatory action does not

unduly interfere with State, local, and

tribal governments in the exercise of

their governmental functions.

To assist the Department in

complying with the specific

requirements of Executive Order 12866,

the Secretary invites comment on

whether there may be further

opportunities to reduce any potential

costs or increase potential benefits

resulting from these proposed

regulations without impeding the

effective and efficient administration of

the program.

Summary of Potential Costs and

Benefits

The potential costs and benefits of

these proposed regulations are

discussed elsewhere in this preamble

under the following headings: Overview

of proposed changes, and Potential costs

and benefits.

The Secretary believes the changes

proposed in this NPRM would improve

the PWI program regulations and would

yield substantial benefits in terms of

improved accountability and

performance and reduced burden. As

stated in the supplementary information

section of this preamble, the Secretary

believes the proposed regulations

reduce grantee burden by reducing the

number and complexity of the

compliance indicators and improve

accountability by focusing on the most

critical areas of project performance.

The Secretary has determined that the

potential benefits of these proposed

changes justify the potential costs to

grantees.

2. Clarity of the Regulations

Executive Order 12866 requires 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: (1)

Are the requirements in the proposed

regulations clearly stated? (2) Do the

proposed regulations contain technical

terms or other wording that interferes

with their clarity? (3) Does the format of

the proposed regulations (grouping and

order of sections, use of headings,

paragraphing, etc.) aid or reduce their

clarity? Would the proposed regulations

be easier to understand if they were

divided into more (but shorter) sections?

(A ‘‘section’’ is preceded by the symbol

‘‘§ ’’ and a numbered heading; for

example, § 379.51 What are program

compliance indicators?). (4) Is the

description of the proposed regulations

in the ‘‘Supplementary Information’’

section of this preamble helpful in

understanding the proposed

regulations? How could this description

be more helpful in making the proposed

regulations easier to understand? (5)

What else could the Department do to

make the proposed regulations easier to

understand?

A copy of any comments that concern

how the Department could make these

proposed regulations easier to

understand should be sent to Stanley M.

Cohen, Regulations Quality Officer, U.S.

Department of Education, 600

Independence Avenue, S.W. (Room

5121, FB–10B), Washington, D.C.

20202–2241.

Regulatory Flexibility Act Certification

The Secretary certifies that these

proposed regulations would not have a

significant economic impact on a

substantial number of small entities.

The small entities that would be

affected by these proposed regulations

are government, nonprofit, and forprofit organizations that receive Federal
34222 Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 / Proposed Rules

funds under this program. However, the

regulations would not have a significant

economic impact on these entities

because the regulations would not

impose excessive regulatory burdens or

require unnecessary Federal

supervision. These regulations would

impose minimal requirements to ensure

the proper expenditure of program

funds.

Paperwork Reduction Act of 1995

Sections 379.21 and 379.54 contain

information collection requirements. As

required by the Paperwork Reduction

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

Department of Education has submitted

a copy of these sections to the Office of

Management and Budget (OMB) for its

review.

Collection of Information: Projects With

Industry

These proposed regulations would

affect entities eligible to apply for and

receive grants under the PWI program,

including for-profit and nonprofit

agencies or organizations with the

capacity to create and expand job and

career opportunities for individuals

with disabilities, designated State units,

labor unions, employers, community

rehabilitation program providers, trade

associations, and Indian tribes and tribal

organizations. These information

collection requirements would affect

applicants for new awards and

organizations and entities already

receiving assistance under the PWI

program.

The Department needs to collect this

information in order to fulfill statutory

requirements regarding the compliance

indicators (in section 621(f) of the Act).

All information is to be collected and

reported once a year, with the exception

of that which is required of all

applicants for new awards in

§ 379.21(a). This section requires

responses from every organization or

entity that applies for a new award

under the PWI program. Annual

reporting and recordkeeping burden for

these collections of information is

estimated to average 30 hours for each

response for 105 respondents, including

the time for reviewing instructions,

searching existing data sources,

gathering and maintaining the data

needed, and completing and reviewing

the collection of information. Thus, the

total annual reporting and

recordkeeping burden for these

collections is estimated to be 3,150

hours.

Organizations and individuals

desiring to submit comments on the

information collection requirements

should direct them to the Office of

Information and Regulatory Affairs,

OMB, Room 10235, New Executive

Office Building, Washington, D.C.

20503; Attention: Desk Officer for the

U.S. Department of Education.

The Department considers comments

by the public on these proposed

collections of information in—

• Evaluating whether the proposed

collections of information are necessary

for the proper performance of the

functions of the Department, including

whether the information will have

practical utility;

• Evaluating the accuracy of the

Department’s estimate of the burden of

the proposed collections of information,

including the validity of the

methodology and assumptions used;

• Enhancing the quality, usefulness,

and clarity of the information to be

collected; and

• Minimizing the burden of the

collection of information on those who

are to respond, including through the

use of appropriate automated,

electronic, mechanical, or other

technological collection techniques or

other forms of information technology;

e.g., permitting electronic submission of

responses.

OMB is required to make a decision

concerning the collections of

information contained in these

proposed regulations between 30 and 60

days after publication of this document

in the Federal Register. Therefore, a

comment to OMB is best assured of

having its full effect if OMB receives it

within 30 days of publication. This does

not affect the deadline for the public to

comment to the Department on the

proposed regulations.

Intergovernmental Review

This program is subject to the

requirements of Executive Order 12372

and the regulations in 34 CFR Part 79.

The objective of the Executive order is

to foster an intergovernmental

partnership and a strengthened

federalism by relying on processes

developed by State and local

governments for coordination and

review of proposed Federal financial

assistance.

In accordance with the order, this

document is intended to provide early

notification of the Department’s specific

plans and actions for this program.

Invitation to Comment

Interested persons are invited to

submit comments and recommendations

regarding these proposed regulations.

All comments submitted in response to

these proposed regulations will be

available for public inspection, during

and after the comment period, in Room

3330, Mary E. Switzer Building, 330 C

Street, S.W., Washington, D.C., between

the hours of 8:30 a.m. and 4:00 p.m.,

Eastern time, Monday through Friday of

each week except Federal holidays.

On request, the Department supplies

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print magnifier, to an individual with a

disability who needs assistance to

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docket for these proposed regulations.

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or (202) 260–9895. An individual who

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To assist the Department in

complying with the specific

requirements of Executive Order 12866

and its overall requirement of reducing

regulatory burden, the Secretary invites

comments on whether there may be

further opportunities to reduce any

regulatory burdens found in these

proposed regulations.

Assessment of Educational Impact

The Secretary particularly requests

comments on whether the proposed

regulations in this document would

require transmission of information that

is being gathered by or is available from

any other agency or authority of the

United States.

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Note: The official version of this document

is the document published in the Federal

Register.
Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 / Proposed Rules 34223

List of Subjects in 34 CFR Part 379

Education, Grant programs—

education, Grant programs—social

programs, Reporting and recordkeeping

requirements, Vocational rehabilitation.

Dated: February 5, 1998.

Judith E. Heumann,

Assistant Secretary for Special Education and

Rehabilitative Services.

(Catalog of Federal Domestic Assistance

Number 84.234 Projects With Industry)

The Secretary proposes to amend Part

379 of Title 34 of the Code of Federal

Regulations as follows:

PART 379—PROJECTS WITH

INDUSTRY

1. The authority citation for part 379

continues to read as follows:

Authority: Sections 12(c) and 621 of the

Act; 29 U.S.C. 711(c) and 795(g), unless

otherwise noted.

2. Section 379.21 is revised to read as

follows:

§ 379.21 What is the content of an

application for an award?

(a) The grant application must include

a description of—

(1) The proposed job training to

prepare project participants for specific

jobs in the competitive labor market for

which there is a need in the geographic

area to be served by the project, as

identified by an existing current labor

market analysis or other needs

assessment or one conducted by the

applicant in collaboration with private

industry;

(2) The involvement of private

industry in the design of the proposed

project and the manner in which the

project will collaborate with private

industry in planning, implementing,

and evaluating job training, job

placement, and career advancement

activities;

(3) The responsibilities of the BAC

and how it will interact with the project

in carrying out grant activities;

(4) The justification of the project’s

proposed cost per placement, including

factors such as the project’s objectives,

types of services, target population, and

service area;

(5) The geographic area to be served

by the project, including an explanation

of how the area is currently unserved or

underserved by the PWI program;

(6) A plan for evaluating annually the

operation of the proposed project,

which, at a minimum, provides for

collecting and submitting to the

Secretary the following information and

any additional data needed to determine

compliance with the program

compliance indicators established in

subpart F:

(i) The numbers and types of

individuals with disabilities served.

(ii) The types of services provided.

(iii) The sources of funding.

(iv) The percentage of resources

committed to each type of service

provided.

(v) The extent to which the

employment status and earning power

of individuals with disabilities changed

following services.

(vi) The extent of capacity building

activities, including collaboration with

business and industry and other

organizations, institutions, and

agencies, including the State vocational

rehabilitation unit.

(vii) A comparison, if appropriate, of

activities in prior years with activities in

the most recent year.

(viii) The number of project

participants who were terminated from

project placements and the duration of

those placements;

(7) A description of the manner in

which the project will address the needs

of individuals with disabilities from

minority backgrounds, as required by 34

CFR 369.21; and

(8) A description of how career

advancement services will be provided

to project participants.

(b) The grant application also must

include assurances from the applicant

that—

(1) The project will carry out all

activities required by § 379.10;

(2) Individuals with disabilities who

are placed by the project will receive

compensation at or above the minimum

wage, but not less than the customary or

usual wage paid by the employer for the

same or similar work performed by

individuals who are not disabled;

(3) Individuals with disabilities who

are placed by the project will be given

terms and benefits of employment equal

to those that are given to similarly

situated co-workers and will not be

segregated from their co-workers; and

(4) The project will maintain any

records required by the Secretary and

make those records available for

monitoring and audit purposes.

(Authority: Sections 621(a)(4), 621(a)(5),

621(b), and 621(e)(1)(B) of the Act; 29 U.S.C.

795g(a)(4), 795g(a)(5), 795g(b), and

795g(e)(1)(B))

3. Subpart F of Part 379 is revised to

read as follows:

Subpart F—What Compliance Indicator

Requirements Must a Grantee Meet to

Receive Continuation Funding?

379.50 What are the requirements for

continuation funding?

379.51 What are the program compliance

indicators?

379.52 How is grantee performance

measured using the compliance

indicators?

379.53 What are the minimum performance

levels for each compliance indicator?

379.54 What are the reporting requirements

for the compliance indicators?

Subpart F—What Compliance Indicator

Requirements Must a Grantee Meet to

Receive Continuation Funding?

§ 379.50 What are the requirements for

continuation funding?

Beginning with fiscal year 1998, in

order to receive a continuation award

for the third or any subsequent year of

a PWI grant, a grantee must adhere to

the provisions of its approved

application and must meet the

minimum performance levels on the

program compliance indicators

contained in § 379.53.

(Authority: Section 621(f)(1)of the Act; 29

U.S.C. 795g(f)(1))

§ 379.51 What are the program compliance

indicators?

The program compliance indicators

implement program evaluation

standards, which are contained in an

appendix to this part, by establishing

minimum performance levels in

essential project areas to measure the

effectiveness of individual grantees.

(Authority: Sections 621(d)(1) and 621(f)(1)

of the Act; 29 U.S.C. 795g(d)(1) and

795g(f)(1))

§ 379.52 How is grantee performance

measured using the compliance indicators?

(a) Each compliance indicator

establishes a minimum performance

level.

(b) If a grantee does not achieve the

minimum performance level for a

compliance indicator, the grantee does

not pass the compliance indicator.

(c) A grantee must pass all the

compliance indicators to meet the

evaluation standards and qualify for

continuation funding.

(Authority: Section 621(f)(1) of the Act; 29

U.S.C. 795g(f)(1))

§ 379.53 What are the minimum

performance levels for each compliance

indicator?

(a) Placement rate. A minimum of 55

percent of individuals served by the

project are placed into competitive

employment.

(b) Change in earnings. (1) For

projects in which at least 75 percent of

individuals placed are placed into

supported employment, as defined in 34

CFR 361.5(b)(45) and (46), the earnings

of individuals placed by the project

increase by an average of at least

$100.00 a week over earnings at the time

of project entry.
34224 Federal Register / Vol. 63, No. 120 /Tuesday, June 23, 1998 / Proposed Rules

(2) For projects in which at least 75

percent of individuals placed into

competitive employment are students

enrolled in secondary schools working

fewer than 30 hours per week, the

earnings of individuals placed by the

project increase by an average of at least

$100.00 a week over earnings at the time

of project entry.

(3) For all projects not covered under

§ 379.53(b)(1) or (2), the earnings of

individuals who are placed into

competitive employment by the project

increase by an average of at least

$150.00 a week over earnings at the time

of project entry.

(c) Percent placed who have severe

disabilities. At least 50 percent of

individuals who are placed into

competitive employment are

individuals with severe disabilities.

(d) Percent placed who were

previously unemployed. At least 50

percent of individuals who are placed

into competitive employment are

individuals who were continuously

unemployed for at least six months at

the time of project entry.

(e) Cost per placement. The actual

average cost per placement does not

exceed 110 percent of the projected

average cost per placement in the

grantee’s application.

(Authority: Section 621(f)(1) of the Act; 29

U.S.C. 795g(f)(1))

§ 379.54 What are the reporting

requirements for the compliance

indicators?

(a) In order to receive continuation

funding for the third or any subsequent

year of a PWI grant, each grantee must

submit data for the most recent

complete project year no later than 60

days after the end of that project year,

unless the Secretary authorizes a later

submission date, in order for the

Secretary to determine if the grantee has

met the program compliance indicators

established in this Subpart F.

(b) If the data for the most recent

complete project year provided under

paragraph (a) of this section shows that

a grantee has failed to achieve the

minimum performance required in

§ 379.53 to meet the program

compliance indicators, the grantee may,

at its option, submit data from the first

6 months of the current project year no

later than 60 days after the end of that

6-month period, unless the Secretary

authorizes a later submission date, to

demonstrate that its project performance

has improved sufficiently to meet the

minimum performance levels for all

compliance indicators.

(Authority: Section 621(f)(2) of the Act; 29

U.S.C. 795g(f)(2))

Note: A grantee receives its second year of

funding (or the first continuation award)

under this program before data from the first

complete project year is available. Data from

the first project year, however, must be

submitted and is used (unless the grantee

exercises the option in paragraph (b) of this

section) to determine eligibility for the third

year of funding (or the second continuation

award).

[FR Doc. 98–16590 Filed 6–22–98; 8:45 am]

BILLING CODE 4000–01–P