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[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 1579 Introduced in Senate (IS)]

105th CONGRESS
  2d Session
                                S. 1579

To amend the Rehabilitation Act of 1973 to extend the authorizations of 
          appropriations for such Act, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                            January 28, 1998

Mr. DeWine (for himself, Mr. Jeffords, Mr. Kennedy, Mr. Wellstone, Mr. 
Harkin, Mr. Frist, Ms. Collins, Mr. Dodd, Mr. Reed, Mr. Chafee, and Mr. 
   Bingaman) introduced the following bill; which was read twice and 
         referred to the Committee on Labor and Human Resources

_______________________________________________________________________

                                 A BILL

 
To amend the Rehabilitation Act of 1973 to extend the authorizations of 
          appropriations for such Act, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Rehabilitation Act Amendments of 
1998''.

SEC. 2. TITLE.

    The title of the Rehabilitation Act of 1973 is amended by striking 
``to establish special responsibilities'' and all that follows and 
inserting the following: ``to create linkage between State vocational 
rehabilitation programs and workforce investment activities carried out 
under the Workforce Investment Partnership Act of 1998, to establish 
special responsibilities for the Secretary of Education for 
coordination of all activities with respect to individuals with 
disabilities within and across programs administered by the Federal 
Government, and for other purposes.''.

SEC. 3. GENERAL PROVISIONS.

    The Rehabilitation Act of 1973 is amended by striking the matter 
preceding title I and inserting the following:

``Sec. 1. Short title; table of contents.
``Sec. 2. Findings; purpose; policy.
``Sec. 3. Rehabilitation Services Administration.
``Sec. 4. Advance funding.
``Sec. 5. Joint funding.
``Sec. 7. Definitions.
``Sec. 8. Allotment percentage.
``Sec. 10. Nonduplication.
``Sec. 11. Application of other laws.
``Sec. 12. Administration of the Act.
``Sec. 13. Reports.
``Sec. 14. Evaluation.
``Sec. 15. Information clearinghouse.
``Sec. 16. Transfer of funds.
``Sec. 17. State administration.
``Sec. 18. Review of applications.
``Sec. 19. Carryover.
``Sec. 20. Client assistance information.
``Sec. 21. Traditionally underserved populations.
             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

                      ``Part A--General Provisions

``Sec. 100. Declaration of policy; authorization of appropriations.
``Sec. 101. State plans.
``Sec. 102. Eligibility and individualized rehabilitation employment 
                            plan.
``Sec. 103. Vocational rehabilitation services.
``Sec. 104. Non-Federal share for establishment of program.
``Sec. 105. State Rehabilitation Council.
``Sec. 106. Evaluation standards and performance indicators.
``Sec. 107. Monitoring and review.
``Sec. 108. Expenditure of certain amounts.
``Sec. 109. Training of employers with respect to Americans with 
                            Disabilities Act of 1990.
           ``Part B--Basic Vocational Rehabilitation Services

``Sec. 110. State allotments.
``Sec. 111. Payments to States.
``Sec. 112. Client assistance program.
      ``Part C--American Indian Vocational Rehabilitation Services

``Sec. 121. Vocational rehabilitation services grants.
    ``Part D--Vocational Rehabilitation Services Client Information

``Sec. 131. Data sharing.
                   ``TITLE II--RESEARCH AND TRAINING

``Sec. 200. Declaration of purpose.
``Sec. 201. Authorization of appropriations.
``Sec. 202. National Institute on Disability and Rehabilitation 
                            Research.
``Sec. 203. Interagency Committee.
``Sec. 204. Research and other covered activities.
``Sec. 205. Rehabilitation Research Advisory Council.
    ``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

``Sec. 301. Declaration of purpose and competitive basis of grants and 
                            contracts.
``Sec. 302. Training.
``Sec. 303. Special demonstration program.
``Sec. 304. Migrant and seasonal farmworkers.
``Sec. 305. Recreational programs.
``Sec. 306. Measuring of project outcomes and performance.
               ``TITLE IV--NATIONAL COUNCIL ON DISABILITY

``Sec. 400. Establishment of National Council on Disability.
``Sec. 401. Duties of National Council.
``Sec. 402. Compensation of National Council members.
``Sec. 403. Staff of National Council.
``Sec. 404. Administrative powers of National Council.
``Sec. 405. Authorization of Appropriations.
                     ``TITLE V--RIGHTS AND ADVOCACY

``Sec. 501. Employment of individuals with disabilities.
``Sec. 502. Architectural and Transportation Barriers Compliance Board.
``Sec. 503. Employment under Federal contracts.
``Sec. 504. Nondiscrimination under Federal grants and programs.
``Sec. 505. Remedies and attorneys' fees.
``Sec. 506. Secretarial responsibilities.
``Sec. 507. Interagency Disability Coordinating Council.
``Sec. 508. Electronic and information technology regulations.
``Sec. 509. Protection and advocacy of individual rights.
 ``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

``Sec. 601. Short title.
``Part A--Projects in Telecommuting and Self-Employment for Individuals 
                           with Disabilities

``Sec. 611. Findings, policies, and purposes.
``Sec. 612. Projects in telecommuting for individuals with 
                            disabilities.
``Sec. 613. Projects in self-employment for individuals with 
                            disabilities.
``Sec. 614. Discretionary authority for dual-purpose applications.
``Sec. 615. Authorization of appropriations.
                    ``Part B--Projects With Industry

``Sec. 621. Projects with industry.
``Sec. 622. Authorization of appropriations.
     ``Part C--Supported Employment Services for Individuals With 
                        Significant Disabilities

``Sec. 631. Purpose.
``Sec. 632. Allotments.
``Sec. 633. Availability of services.
``Sec. 634. Eligibility.
``Sec. 635. State plan.
``Sec. 636. Restriction.
``Sec. 637. Savings provision.
``Sec. 638. Authorization of appropriations.
 ``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

         ``Chapter 1--Individuals With Significant Disabilities

                      ``Part A--General Provisions

``Sec. 701. Purpose.
``Sec. 702. Definitions.
``Sec. 703. Eligibility for receipt of services.
``Sec. 704. State plan.
``Sec. 705. Statewide Independent Living Council.
``Sec. 706. Responsibilities of the Commissioner.
                 ``Part B--Independent Living Services

``Sec. 711. Allotments.
``Sec. 712. Payments to States from allotments.
``Sec. 713. Authorized uses of funds.
``Sec. 714. Authorization of appropriations.
                ``Part C--Centers for Independent Living

``Sec. 721. Program authorization.
``Sec. 722. Grants to centers for independent living in States in which 
                            Federal funding exceeds State funding.
``Sec. 723. Grants to centers for independent living in States in which 
                            State funding equals or exceeds Federal 
                            funding.
``Sec. 724. Centers operated by State agencies.
``Sec. 725. Standards and assurances for centers for independent 
                            living.
``Sec. 726. Definitions.
``Sec. 727. Authorization of appropriations.
``Chapter 2--Independent Living Services for Older Individuals Who are 
                                 Blind

``Sec. 751. Definition.
``Sec. 752. Program of grants.
``Sec. 753. Authorization of appropriations.

                      ``findings; purpose; policy

    ``Sec. 2. (a) Findings.--Congress finds that--
            ``(1) millions of Americans have one or more physical or 
        mental disabilities and the number of Americans with such 
        disabilities is increasing;
            ``(2) individuals with disabilities constitute one of the 
        most disadvantaged groups in society;
            ``(3) disability is a natural part of the human experience 
        and in no way diminishes the right of individuals to--
                    ``(A) live independently;
                    ``(B) enjoy self-determination;
                    ``(C) make choices;
                    ``(D) contribute to society;
                    ``(E) pursue meaningful careers; and
                    ``(F) enjoy full inclusion and integration in the 
                economic, political, social, cultural, and educational 
                mainstream of American society;
            ``(4) increased employment of individuals with disabilities 
        can be achieved through implementation of statewide activities 
        carried out under the Workforce Investment Partnership Act of 
        1998 that provide meaningful and effective participation for 
        individuals with disabilities in workforce investment 
        activities and activities carried out under the vocational 
        rehabilitation program established under title I, and through 
        the provision of independent living services, support services, 
        and meaningful opportunities for employment in integrated work 
        settings through the provision of reasonable accommodations;
            ``(5) individuals with disabilities continually encounter 
        various forms of discrimination in such critical areas as 
        employment, housing, public accommodations, education, 
        transportation, communication, recreation, 
        institutionalization, health services, voting, and public 
        services; and
            ``(6) the goals of the Nation properly include the goal of 
        providing individuals with disabilities with the tools 
        necessary to--
                    ``(A) make informed choices and decisions; and
                    ``(B) achieve equality of opportunity, full 
                inclusion and integration in society, employment, 
                independent living, and economic and social self-
                sufficiency, for such individuals.
    ``(b) Purpose.--The purposes of this Act are--
            ``(1) to empower individuals with disabilities to maximize 
        employment, economic self-sufficiency, independence, and 
        inclusion and integration into society, through--
                    ``(A) statewide activities carried out in 
                accordance with the Workforce Investment Partnership 
                Act of 1998 that include, as integral components, 
                comprehensive and coordinated state-of-the-art programs 
                of vocational rehabilitation;
                    ``(B) independent living centers and services;
                    ``(C) research;
                    ``(D) training;
                    ``(E) demonstration projects; and
                    ``(F) the guarantee of equal opportunity; and
            ``(2) to ensure that the Federal Government plays a 
        leadership role in promoting the employment of individuals with 
        disabilities, especially individuals with significant 
        disabilities, and in assisting States and providers of services 
        in fulfilling the aspirations of such individuals with 
        disabilities for meaningful and gainful employment and 
        independent living.
    ``(c) Policy.--It is the policy of the United States that all 
programs, projects, and activities receiving assistance under this Act 
shall be carried out in a manner consistent with the principles of--
            ``(1) respect for individual dignity, personal 
        responsibility, self-determination, and pursuit of meaningful 
        careers, based on informed choice, of individuals with 
        disabilities;
            ``(2) respect for the privacy, rights, and equal access 
        (including the use of accessible formats), of the individuals;
            ``(3) inclusion, integration, and full participation of the 
        individuals;
            ``(4) support for the involvement of an individual's 
        representative if an individual with a disability requests, 
        desires, or needs such support; and
            ``(5) support for individual and systemic advocacy and 
        community involvement.

                ``rehabilitation services administration

    ``Sec. 3. (a) There is established in the Office of the Secretary a 
Rehabilitation Services Administration which shall be headed by a 
Commissioner (hereinafter in this Act referred to as the 
`Commissioner') appointed by the President by and with the advice and 
consent of the Senate. Except for titles IV and V and part A of title 
VI and as otherwise specifically provided in this Act, such 
Administration shall be the principal agency, and the Commissioner 
shall be the principal officer, of such Department for carrying out 
this Act. The Commissioner shall be an individual with substantial 
experience in rehabilitation and in rehabilitation program management. 
In the performance of the functions of the office, the Commissioner 
shall be directly responsible to the Secretary or to the Under 
Secretary or an appropriate Assistant Secretary of such Department, as 
designated by the Secretary. The functions of the Commissioner shall 
not be delegated to any officer not directly responsible, both with 
respect to program operation and administration, to the Commissioner. 
Any reference in this Act to duties to be carried out by the 
Commissioner shall be considered to be a reference to duties to be 
carried out by the Secretary acting through the Commissioner. In 
carrying out any of the functions of the office under this Act, the 
Commissioner shall be guided by general policies of the National 
Council on Disability established under title IV of this Act.
    ``(b) The Secretary shall take whatever action is necessary to 
insure that funds appropriated pursuant to this Act, as well as 
unexpended appropriations for carrying out the Vocational 
Rehabilitation Act (29 U.S.C. 31-42), are expended only for the 
programs, personnel, and administration of programs carried out under 
this Act.
    ``(c) The Secretary shall take such action as necessary to ensure 
that--
            ``(1) the staffing of the Rehabilitation Services 
        Administration shall be in sufficient numbers to meet program 
        needs and at levels which will attract and maintain the most 
        qualified personnel; and
            ``(2) such staff includes individuals who have training and 
        experience in the provision of rehabilitation services and that 
        staff competencies meet professional standards.

                           ``advance funding

    ``Sec. 4. (a) For the purpose of affording adequate notice of 
funding available under this Act, appropriations under this Act are 
authorized to be included in the appropriation Act for the fiscal year 
preceding the fiscal year for which they are available for obligation.
    ``(b) In order to effect a transition to the advance funding method 
of timing appropriation action, the authority provided by subsection 
(a) of this section shall apply notwithstanding that its initial 
application will result in the enactment in the same year (whether in 
the same appropriation Act or otherwise) of two separate 
appropriations, one for the then current fiscal year and one for the 
succeeding fiscal year.

                            ``joint funding

    ``Sec. 5. Pursuant to regulations prescribed by the President, and 
to the extent consistent with the other provisions of this Act, where 
funds are provided for a single project by more than one Federal agency 
to an agency or organization assisted under this Act, the Federal 
agency principally involved may be designated to act for all in 
administering the funds provided, and, in such cases, a single non-
Federal share requirement may be established according to the 
proportion of funds advanced by each agency. When the principal agency 
involved is the Rehabilitation Services Administration, it may waive 
any grant or contract requirement (as defined by such regulations) 
under or pursuant to any law other than this Act, which requirement is 
inconsistent with the similar requirements of the administering agency 
under or pursuant to this Act.

``SEC. 7. DEFINITIONS.

    ``For the purposes of this Act:
            ``(1) Administrative costs.--The term `administrative 
        costs' means expenditures incurred by the designated State unit 
        in the performance of administrative functions under the 
        vocational rehabilitation program carried out under title I, 
        including expenses related to program planning, development, 
        monitoring, and evaluation, including--
                    ``(A) expenses for--
                            ``(i) quality assurance;
                            ``(ii) budgeting, accounting, financial 
                        management, information systems, and related 
                        data processing;
                            ``(iii) provision of information about the 
                        program to the public;
                            ``(iv) technical assistance and related 
                        support services to other State agencies, 
                        private nonprofit organizations, and businesses 
                        and industries, except for technical assistance 
                        and support services described in section 
                        103(b)(5);
                            ``(v) the State Rehabilitation Council and 
                        other entities that advise the designated State 
                        unit with regard to the provision of vocational 
                        rehabilitation services;
                            ``(vi) removal of architectural barriers in 
                        State vocational rehabilitation agency offices 
                        and State operated rehabilitation facilities;
                            ``(vii) operation and maintenance of 
                        designated State unit facilities, equipment, 
                        and grounds;
                            ``(viii) supplies; and
                            ``(ix)(I) administration of the 
                        comprehensive system of personnel development 
                        described in section 101(a)(7), including 
                        personnel administration, and administration of 
                        affirmative action plans;
                            ``(II) training and staff development; and
                            ``(III) administrative salaries, including 
                        clerical and other support staff salaries, in 
                        support of the administrative functions;
                    ``(B) travel costs related to carrying out the 
                program, other than travel costs related to the 
                provision of services;
                    ``(C) costs incurred in conducting reviews of 
                rehabilitation counselor or coordinator determinations; 
                and
                    ``(D) legal expenses required in the administration 
                of the program.
            ``(2) Assessment for determining eligibility and vocational 
        rehabilitation needs.--The term `assessment for determining 
        eligibility and vocational rehabilitation needs' means, as 
        appropriate in each case--
                    ``(A)(i) a review of existing data--
                            ``(I) to determine whether an individual is 
                        eligible for vocational rehabilitation 
                        services; and
                            ``(II) to assign priority for an order of 
                        selection described in section 101(a)(5)(A) in 
                        the States that use an order of selection 
                        pursuant to section 101(a)(5)(A); and
                    ``(ii) to the extent necessary, the provision of 
                appropriate assessment activities to obtain necessary 
                additional data to make such determination and 
                assignment;
                    ``(B) to the extent additional data is necessary to 
                make a determination of the employment outcomes, and 
                the objectives, nature, and scope of vocational 
                rehabilitation services, to be included in the 
                individualized rehabilitation employment plan 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 rehabilitation employment plan 
                        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--
                                    ``(I) existing information obtained 
                                for the purposes of determining the 
                                eligibility of the individual and 
                                assigning priority for an order of 
                                selection described in section 
                                101(a)(5)(A) for the individual; and
                                    ``(II) such information as can be 
                                provided by the individual and, where 
                                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; and
                            ``(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 utilization of work in real job 
                        situations to assess and develop the capacities 
                        of the individual to perform adequately in a 
                        work environment;
                    ``(C) 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
                    ``(D) an exploration of the individual's abilities, 
                capabilities, and capacity to perform in work 
                situations, through the use of trial work experiences, 
                including experiences in which the individual is 
                provided appropriate supports and training.
            ``(3) Assistive technology device.--The term `assistive 
        technology device' has the meaning given such term in section 
        3(2) of the Technology-Related Assistance for Individuals With 
        Disabilities Act of 1988 (29 U.S.C. 2202(2)), except that the 
        reference in such section to the term `individuals with 
        disabilities' shall be deemed to mean more than one individual 
        with a disability as defined in paragraph (20)(A).
            ``(4) Assistive technology service.--The term `assistive 
        technology service' has the meaning given such term in section 
        3(3) of the Technology-Related Assistance for Individuals With 
        Disabilities Act of 1988 (29 U.S.C. 2202(3)), except that the 
        reference in such section--
                    ``(A) to the term `individual with a disability' 
                shall be deemed to mean an individual with a 
                disability, as defined in paragraph (20)(A); and
                    ``(B) to the term `individuals with disabilities' 
                shall be deemed to mean more than one such individual.
            ``(5) Community rehabilitation program.--The term 
        `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--
                    ``(A) medical, psychiatric, psychological, social, 
                and vocational services that are provided under one 
                management;
                    ``(B) testing, fitting, or training in the use of 
                prosthetic and orthotic devices;
                    ``(C) recreational therapy;
                    ``(D) physical and occupational therapy;
                    ``(E) speech, language, and hearing therapy;
                    ``(F) psychiatric, psychological, and social 
                services, including positive behavior management;
                    ``(G) assessment for determining eligibility and 
                vocational rehabilitation needs;
                    ``(H) rehabilitation technology;
                    ``(I) job development, placement, and retention 
                services;
                    ``(J) evaluation or control of specific 
                disabilities;
                    ``(K) orientation and mobility services for 
                individuals who are blind;
                    ``(L) extended employment;
                    ``(M) psychosocial rehabilitation services;
                    ``(N) supported employment services and extended 
                services;
                    ``(O) services to family members when necessary to 
                the vocational rehabilitation of the individual;
                    ``(P) personal assistance services; or
                    ``(Q) services similar to the services described in 
                one of subparagraphs (A) through (P).
            ``(6) Criminal act.--The term `criminal act' means any 
        crime, including an act, omission, or possession under the laws 
        of the United States or a State or unit of general local 
        government, which poses a substantial threat of personal 
        injury, notwithstanding that by reason of age, insanity, or 
        intoxication or otherwise the person engaging in the act, 
        omission, or possession was legally incapable of committing a 
        crime.
            ``(7) Designated state agency.--The term `designated State 
        agency' means an agency designated under section 101(a)(2)(A).
            ``(8) Designated state unit.--The term `designated State 
        unit' means--
                    ``(A) any State agency unit required under section 
                101(a)(2)(B)(ii); or
                    ``(B) in cases in which no such unit is so 
                required, the State agency described in section 
                101(a)(2)(B)(i).
            ``(9) Disability.--The term `disability' means--
                    ``(A) except as otherwise provided in subparagraph 
                (B), a physical or mental impairment that constitutes 
                or results in a substantial impediment to employment; 
                or
                    ``(B) for purposes of sections 2, 14, and 15, and 
                titles II, IV, V, and VII, a physical or mental 
                impairment that substantially limits one or more major 
                life activities.
            ``(10) Drug and illegal use of drugs.--
                    ``(A) Drug.--The term `drug' means a controlled 
                substance, as defined in schedules I through V of 
section 202 of the Controlled Substances Act (21 U.S.C. 812).
                    ``(B) Illegal use of drugs.--The term `illegal use 
                of drugs' means the use of drugs, the possession or 
                distribution of which is unlawful under the Controlled 
                Substances Act. Such term does not include the use of a 
                drug taken under supervision by a licensed health care 
                professional, or other uses authorized by the 
                Controlled Substances Act or other provisions of 
                Federal law.
            ``(11) Employment outcome.--The term `employment outcome' 
        means, with respect to an individual--
                    ``(A) entering or retaining full-time or, if 
                appropriate, part-time competitive employment in the 
                integrated labor market;
                    ``(B) satisfying the vocational outcome of 
                supported employment; or
                    ``(C) satisfying any other vocational outcome the 
                Secretary may determine to be appropriate (including 
                satisfying the vocational outcome of self-employment or 
                business ownership),
        in a manner consistent with this Act.
            ``(12) Establishment of a community rehabilitation 
        program.--The term `establishment of a community rehabilitation 
        program' includes the acquisition, expansion, remodeling, or 
        alteration of existing buildings necessary to adapt them to 
        community rehabilitation program purposes or to increase their 
        effectiveness for such purposes (subject, however, to such 
        limitations as the Secretary may determine, in accordance with 
        regulations the Secretary shall prescribe, in order to prevent 
        impairment of the objectives of, or duplication of, other 
        Federal laws providing Federal assistance in the construction 
        of facilities for community rehabilitation programs), and may 
        include such additional equipment and staffing as the 
        Commissioner considers appropriate.
            ``(13) Extended services.--The term `extended services' 
        means ongoing support services and other appropriate services, 
        needed to support and maintain an individual with a most 
        significant disability in supported employment, that--
                    ``(A) are provided singly or in combination and are 
                organized and made available in such a way as to assist 
                an eligible individual in maintaining supported 
                employment;
                    ``(B) are based on a determination of the needs of 
                an eligible individual, as specified in an 
                individualized rehabilitation employment plan; and
                    ``(C) are provided by a State agency, a nonprofit 
                private organization, employer, or any other 
                appropriate resource, after an individual has made the 
                transition from support provided by the designated 
                State unit.
            ``(14) Federal share.--
                    ``(A) In general.--Subject to subparagraph (B), the 
                term `Federal share' means 78.7 percent.
                    ``(B) Relationship to expenditures by a political 
                subdivision.--For the purpose of determining the non-
                Federal share with respect to a State, expenditures by 
                a political subdivision thereof or by a local agency 
                shall be regarded as expenditures by such State, 
                subject to such limitations and conditions as the 
                Secretary shall by regulation prescribe.
            ``(15) Impartial hearing officer.--
                    ``(A) In general.--The term `impartial hearing 
                officer' means an individual--
                            ``(i) who is not an employee of a public 
                        agency (other than an administrative law judge, 
                        hearing examiner, or employee of an institution 
                        of higher education);
                            ``(ii) who is not a member of the State 
                        Rehabilitation Council described in section 
                        105;
                            ``(iii) who has not been involved 
                        previously in the vocational rehabilitation of 
                        the applicant or client;
                            ``(iv) who has knowledge of the delivery of 
                        vocational rehabilitation services, the State 
                        plan under section 101, and the Federal and 
                        State rules governing the provision of such 
                        services and training with respect to the 
                        performance of official duties; and
                            ``(v) who has no personal or financial 
                        interest that would be in conflict with the 
                        objectivity of the individual.
                    ``(B) Construction.--An individual shall not be 
                considered to be an employee of a public agency for 
                purposes of subparagraph (A)(i) solely because the 
                individual is paid by the agency to serve as a hearing 
                officer.
            ``(16) Independent living core services.--The term 
        `independent living core services' means--
                    ``(A) information and referral services;
                    ``(B) independent living skills training;
                    ``(C) peer counseling (including cross-disability 
                peer counseling); and
                    ``(D) individual and systems advocacy.
            ``(17) Independent living services.--The term `independent 
        living services' includes--
                    ``(A) independent living core services; and
                    ``(B)(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 
                such 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 a community and participating in community 
                activities;
                    ``(x) supported living;
                    ``(xi) transportation, including referral and 
                assistance for such transportation and training in the 
                use of public transportation vehicles and systems;
                    ``(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;
                    ``(xix) 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 into society of 
                individuals with disabilities; and
                    ``(xxi) such other services as may be necessary and 
                not inconsistent with the provisions of this Act.
            ``(18) Indian; american indian; indian american.--The terms 
        `Indian', `American Indian', and `Indian American' mean an 
        individual who is a member of an Indian tribe.
            ``(19) Indian tribe.--The term `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).
            ``(20) Individual with a disability.--
                    ``(A) In general.--Except as otherwise provided in 
                subparagraph (B), the term `individual with a 
                disability' means any individual who--
                            ``(i) has a physical or mental impairment 
                        which for such individual constitutes or 
                        results in a substantial impediment to 
                        employment; and
                            ``(ii) can benefit in terms of an 
                        employment outcome from vocational 
                        rehabilitation services provided pursuant to 
                        title I, III, or VI.
                    ``(B) Certain programs; limitations on major life 
                activities.--Subject to subparagraphs (C), (D), (E), 
                and (F), the term `individual with a disability' means, 
                for purposes of sections 2, 14, and 15, and titles II, 
                IV, V, and VII of this Act, any person who--
                            ``(i) has a physical or mental impairment 
                        which substantially limits one or more of such 
                        person's major life activities;
                            ``(ii) has a record of such an impairment; 
                        or
                            ``(iii) is regarded as having such an 
                        impairment.
                    ``(C) Rights and advocacy provisions.--
                            ``(i) In general; exclusion of individuals 
                        engaging in drug use.--For purposes of title V, 
                        the term `individual with a disability' does 
                        not include an individual who is currently 
                        engaging in the illegal use of drugs, when a 
                        covered entity acts on the basis of such use.
                            ``(ii) Exception for individuals no longer 
                        engaging in drug use.--Nothing in clause (i) 
                        shall be construed to exclude as an individual 
                        with a disability an individual who--
                                    ``(I) has successfully completed a 
                                supervised drug rehabilitation program 
                                and is no longer engaging in the 
                                illegal use of drugs, or has otherwise 
                                been rehabilitated successfully and is 
                                no longer engaging in such use;
                                    ``(II) is participating in a 
                                supervised rehabilitation program and 
                                is no longer engaging in such use; or
                                    ``(III) is erroneously regarded as 
                                engaging in such use, but is not 
                                engaging in such use;
                        except that it shall not be a violation of this 
                        Act for a covered entity to adopt or administer 
                        reasonable policies or procedures, including 
                        but not limited to drug testing, designed to 
                        ensure that an individual described in 
                        subclause (I) or (II) is no longer engaging in 
                        the illegal use of drugs.
                            ``(iii) Exclusion for certain services.--
                        Notwithstanding clause (i), for purposes of 
                        programs and activities providing health 
                        services and services provided under titles I, 
                        II and III, an individual shall not be excluded 
                        from the benefits of such programs or 
                        activities on the basis of his or her current 
                        illegal use of drugs if he or she is otherwise 
                        entitled to such services.
                            ``(iv) Disciplinary action.--For purposes 
                        of programs and activities providing 
                        educational services, local educational 
                        agencies may take disciplinary action 
                        pertaining to the use or possession of illegal 
                        drugs or alcohol against any student who is an 
                        individual with a disability and who currently 
                        is engaging in the illegal use of drugs or in 
                        the use of alcohol to the same extent that such 
                        disciplinary action is taken against students 
                        who are not individuals with disabilities. 
                        Furthermore, the due process procedures at 
                        section 104.36 of title 34, Code of Federal 
                        Regulations (or any corresponding similar 
                        regulation or ruling) shall not apply to such 
                        disciplinary actions.
                            ``(v) Employment; exclusion of 
                        alcoholics.--For purposes of sections 503 and 
                        504 as such sections relate to employment, the 
                        term `individual with a disability' does not 
                        include any individual who is an alcoholic 
                        whose current use of alcohol prevents such 
                        individual from performing the duties of the 
                        job in question or whose employment, by reason 
                        of such current alcohol abuse, would constitute 
                        a direct threat to property or the safety of 
                        others.
                    ``(D) Employment; exclusion of individuals with 
                certain diseases or infections.--For the purposes of 
                sections 503 and 504, as such sections relate to 
                employment, such term does not include an individual 
                who has a currently contagious disease or infection and 
                who, by reason of such disease or infection, would 
                constitute a direct threat to the health or safety of 
                other individuals or who, by reason of the currently 
                contagious disease or infection, is unable to perform 
                the duties of the job.
                    ``(E) Rights provisions; exclusion of individuals 
                on basis of homosexuality or bisexuality.--For the 
                purposes of sections 501, 503, and 504--
                            ``(i) for purposes of the application of 
                        subparagraph (B) to such sections, the term 
                        `impairment' does not include homosexuality or 
                        bisexuality; and
                            ``(ii) therefore the term `individual with 
                        a disability' does not include an individual on 
                        the basis of homosexuality or bisexuality.
                    ``(F) Rights provisions; exclusion of individuals 
                on basis of certain disorders.--For the purposes of 
                sections 501, 503, and 504, the term `individual with a 
                disability' does not include an individual on the basis 
                of--
                            ``(i) transvestism, transsexualism, 
                        pedophilia, exhibitionism, voyeurism, gender 
                        identity disorders not resulting from physical 
                        impairments, or other sexual behavior 
                        disorders;
                            ``(ii) compulsive gambling, kleptomania, or 
                        pyromania; or
                            ``(iii) psychoactive substance use 
                        disorders resulting from current illegal use of 
                        drugs.
                    ``(G) Individuals with disabilities.--The term 
                `individuals with disabilities' means more than one 
                individual with a disability.
            ``(21) Individual with a significant disability.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B) or (C), the term `individual with a 
                significant disability' means an individual with a 
                disability--
                            ``(i) who has a severe physical or mental 
                        impairment which 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;
                            ``(ii) whose vocational rehabilitation can 
                        be expected to require multiple vocational 
                        rehabilitation services over an extended period 
                        of time; and
                            ``(iii) who has one or more physical or 
                        mental disabilities resulting from amputation, 
                        arthritis, autism, blindness, burn injury, 
                        cancer, cerebral palsy, cystic fibrosis, 
                        deafness, head injury, heart disease, 
                        hemiplegia, hemophilia, respiratory or 
                        pulmonary dysfunction, mental retardation, 
                        mental illness, multiple sclerosis, muscular 
                        dystrophy, musculo-skeletal disorders, 
                        neurological disorders (including stroke and 
                        epilepsy), paraplegia, quadriplegia, and other 
                        spinal cord conditions, sickle cell anemia, 
                        specific learning 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 described in 
                        subparagraphs (A) and (B) of paragraph (2) to 
                        cause comparable substantial functional 
                        limitation.
                    ``(B) Independent living services and centers for 
                independent living.--For purposes of title VII, the 
                term `individual with a significant disability' means 
                an individual with a severe physical or mental 
                impairment whose ability to function independently in 
                the family or community or whose ability to obtain, 
                maintain, or advance in employment is substantially 
                limited and for whom the delivery of independent living 
                services will improve the ability to function, continue 
                functioning, or move towards functioning independently 
                in the family or community or to continue in 
                employment, respectively.
                    ``(C) Research and training.--For purposes of title 
                II, the term `individual with a significant disability' 
                includes an individual described in subparagraph (A) or 
                (B).
                    ``(D) Individuals with significant disabilities.--
                The term `individuals with significant disabilities' 
                means more than one individual with a significant 
                disability.
                    ``(E) Individual with a most significant 
                disability.--
                            ``(i) In general.--The term `individual 
                        with a most significant disability', used with 
                        respect to an individual in a State, means an 
                        individual with a significant disability who 
                        meets criteria established by the State under 
                        section 101(a)(5)(C).
                            ``(ii) Individuals with the most 
                        significant disabilities.--The term 
                        `individuals with the most significant 
                        disabilities' means more than one individual 
                        with a most significant disability.
            ``(22) Individual's representative; applicant's 
        representative.--
                    ``(A) Individual's representative.--The term 
                `individual's representative' used with respect to an 
                eligible individual or other individual with a 
                disability, means--
                            ``(i) any representative chosen by the 
                        eligible individual or other individual with a 
                        disability, including a parent, guardian, other 
                        family member, or advocate; or
                            ``(ii) if a representative or legal 
                        guardian has been appointed by a court to 
                        represent the eligible individual or other 
                        individual with a disability, the court-
                        appointed representative or legal guardian.
                    ``(B) Applicant's representative.--The term 
                `applicant's representative' means--
                            ``(i) any representative described in 
                        subparagraph (A)(i) chosen by the applicant; or
                            ``(ii) if a representative or legal 
                        guardian has been appointed by a court to 
                        represent the applicant, the court-appointed 
                        representative or legal guardian.
            ``(23) Institution of higher education.--The term 
        `institution of higher education' has the meaning given the 
        term in section 1201(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1141(a)).
            ``(24) Local agency.--The term `local agency' means an 
        agency of a unit of general local government or of an Indian 
        tribe (or combination of such units or tribes) which has an 
        agreement with the designated State agency to conduct a 
        vocational rehabilitation program under the supervision of such 
        State agency in accordance with the State plan approved under 
        section 101. Nothing in the preceding sentence of this 
        paragraph or in section 101 shall be construed to prevent the 
        local agency from arranging to utilize another local public or 
        nonprofit agency to provide vocational rehabilitation services 
        if such an arrangement is made part of the agreement specified 
        in this paragraph.
            ``(25) Local workforce investment partnership.--The term 
        `local workforce investment partnership' means a local 
        workforce investment partnership established under section 308 
        of the Workforce Investment Partnership Act of 1998.
            ``(26) Nonprofit.--The term `nonprofit', when used with 
        respect to a community rehabilitation program, means a 
        community rehabilitation program carried out by a corporation 
        or association, no part of the net earnings of which inures, or 
        may lawfully inure, to the benefit of any private shareholder 
        or individual and the income of which is exempt from taxation 
        under section 501(c)(3) of the Internal Revenue Code of 1986.
            ``(27) Ongoing support services.--The term `ongoing support 
        services' means services--
                    ``(A) provided to individuals with the most 
                significant disabilities;
                    ``(B) provided, at a minimum, twice monthly--
                            ``(i) to make an assessment, regarding the 
                        employment situation, at the worksite of each 
                        such individual in supported employment, or, 
                        under special circumstances, especially at the 
                        request of the client, off site; and
                            ``(ii) based on the assessment, to provide 
                        for the coordination or provision of specific 
                        intensive services, at or away from the 
                        worksite, that are needed to maintain 
                        employment stability; and
                    ``(C) consisting of--
                            ``(i) a particularized assessment 
                        supplementary to the comprehensive assessment 
                        described in paragraph (2)(B);
                            ``(ii) the provision of skilled job 
                        trainers who accompany the individual for 
                        intensive job skill training at the work site;
                            ``(iii) job development, job retention, and 
                        placement services;
                            ``(iv) social skills training;
                            ``(v) regular observation or supervision of 
                        the individual;
                            ``(vi) followup services such as regular 
                        contact with the employers, the individuals, 
                        the individuals' representatives, and other 
                        appropriate individuals, in order to reinforce 
                        and stabilize the job placement;
                            ``(vii) facilitation of natural supports at 
                        the worksite;
                            ``(viii) any other service identified in 
                        section 103; or
                            ``(ix) a service similar to another service 
                        described in this subparagraph.
            ``(28) Personal assistance services.--The term `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. Such services shall be designed to 
increase the individual's control in life and ability to perform 
everyday activities on or off the job.
            ``(29) Public or nonprofit.--The term `public or 
        nonprofit', used with respect to an agency or organization, 
        includes an Indian tribe.
            ``(30) Rehabilitation technology.--The term `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 which include education, 
        rehabilitation, employment, transportation, independent living, 
        and recreation. The term includes rehabilitation engineering, 
        assistive technology devices, and assistive technology 
        services.
            ``(31) Requires vocational rehabilitation services.--The 
        term `requires vocational rehabilitation services', used with 
        respect to an individual with a disability as defined in 
        paragraph (20)(A), means that the individual is unable to 
        prepare for, secure, retain, or regain employment consistent 
        with the strengths, resources, priorities, concerns, abilities, 
        capabilities, interests, and informed choice of the individual 
        without vocational rehabilitation services, because the 
        individual--
                    ``(A) has never been employed;
                    ``(B) has lost employment;
                    ``(C) is underemployed;
                    ``(D) is at immediate risk of losing employment; or
                    ``(E) receives benefits on the basis of disability 
                or blindness pursuant to title II or XVI of the Social 
                Security Act (42 U.S.C. 401 et seq. or 1381 et seq.), 
                in a case in which the individual intends to achieve an 
                employment outcome consistent with the unique 
                strengths, resources, priorities, concerns, abilities, 
                capabilities, interests, and informed choice of the 
                individual.
            ``(32) Secretary.--The term `Secretary', except when the 
        context otherwise requires, means the Secretary of Education.
            ``(33) State.--The term `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.
            ``(34) Statewide workforce investment partnership.--The 
        term `statewide workforce investment partnership' means a 
        partnership established under section 303 of the Workforce 
        Investment Partnership Act of 1998.
            ``(35) Statewide workforce investment system.--The term 
        `statewide workforce investment system' means a system 
        described in section 301 of the Workforce Investment 
        Partnership Act of 1998.
            ``(36) Supported employment.--
                    ``(A) In general.--The term `supported employment' 
                means competitive work in integrated work settings, or 
                employment in integrated work settings in which 
                individuals are working toward competitive work, 
                consistent with the strengths, resources, priorities, 
                concerns, abilities, capabilities, interests, and 
                informed choice of the individuals, for individuals 
                with the most significant disabilities--
                            ``(i)(I) for whom competitive employment 
                        has not traditionally occurred; or
                            ``(II) for whom competitive 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 for the period, 
                        and any extension, described in paragraph 
                        (37)(C) and extended services after the 
                        transition described in paragraph (13)(C) in 
                        order to perform such work.
                    ``(B) Certain transitional employment.--Such term 
                includes transitional employment for persons who are 
                individuals with the most significant disabilities due 
                to mental illness.
            ``(37) Supported employment services.--The term `supported 
        employment services' means ongoing support services and other 
        appropriate services needed to support and maintain an 
        individual with a most significant disability in supported 
        employment, that--
                    ``(A) are provided singly or in combination and are 
                organized and made available in such a way as to assist 
                an eligible individual to achieve competitive 
                employment;
                    ``(B) are based on a determination of the needs of 
                an eligible individual, as specified in an 
                individualized rehabilitation employment plan; and
                    ``(C) are provided by the designated State unit for 
                a period of time not to extend beyond 18 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 rehabilitation employment plan.
            ``(38) Transition services.--The term `transition services' 
        means a coordinated set of activities for a student, 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 shall be based 
        upon the individual student's needs, taking into account the 
        student's preferences and interests, and shall include 
        instruction, community experiences, the development of 
        employment and other post school adult living objectives, and, 
        when appropriate, acquisition of daily living skills and 
        functional vocational evaluation.
            ``(39) Underemployed.--The term `underemployed', used with 
        respect to an individual with a disability, as defined in 
        paragraph (20)(A), means a situation in which the individual is 
        employed in a job that is not consistent with the strengths, 
        resources, priorities, concerns, abilities, capabilities, 
        interests, and informed choice of the individual.
            ``(40) Vocational rehabilitation services.--The term 
        `vocational rehabilitation services' means those services 
        identified in section 103 which are provided to individuals 
        with disabilities under this Act.
            ``(41) Workforce investment activities.--The term 
        `workforce investment activities' has the meaning given the 
        term in section 2 of the Workforce Investment Partnership Act 
        of 1998 carried out under that Act.

                         ``allotment percentage

    ``Sec. 8. (a)(1) For purposes of section 110, the allotment 
percentage for any State shall be 100 per centum less that percentage 
which bears the same ratio to 50 per centum as the per capita income of 
such State bears to the per capita income of the United States, except 
that--
            ``(A) the allotment percentage shall in no case be more 
        than 75 per centum or less than 33\1/3\ per centum; and
            ``(B) the allotment percentage for the District of 
        Columbia, Puerto Rico, Guam, the Virgin Islands, American 
        Samoa, and the Commonwealth of the Northern Mariana Islands 
        shall be 75 per centum.
    ``(2) The allotment percentages shall be promulgated by the 
Secretary between October 1 and December 31 of each even-numbered year, 
on the basis of the average of the per capita incomes of the States and 
of the United States for the three most recent consecutive years for 
which satisfactory data are available from the Department of Commerce. 
Such promulgation shall be conclusive for each of the two fiscal years 
in the period beginning on the October 1 next succeeding such 
promulgation.
    ``(3) The term `United States' means (but only for purposes of this 
subsection) the fifty States and the District of Columbia.
    ``(b) The population of the several States and of the United States 
shall be determined on the basis of the most recent data available, to 
be furnished by the Department of Commerce by October 1 of the year 
preceding the fiscal year for which funds are appropriated pursuant to 
statutory authorizations.

                            ``nonduplication

    ``Sec. 10. In determining the amount of any State's Federal share 
of expenditures for planning, administration, and services incurred by 
it under a State plan approved in accordance with section 101, there 
shall be disregarded (1) any portion of such expenditures which are 
financed by Federal funds provided under any other provision of law, 
and (2) the amount of any non-Federal funds required to be expended as 
a condition of receipt of such Federal funds. No payment may be made 
from funds provided under one provision of this Act relating to any 
cost with respect to which any payment is made under any other 
provision of this Act, except that this section shall not be construed 
to limit or reduce fees for services rendered by community 
rehabilitation programs.

                      ``application of other laws

    ``Sec. 11. The provisions of the Act of December 5, 1974 (Public 
Law 93-510) and of title V of the Act of October 15, 1977 (Public Law 
95-134) shall not apply to the administration of the provisions of this 
Act or to the administration of any program or activity under this Act.

                      ``administration of the act

    ``Sec. 12. (a) In carrying out the purposes of this Act, the 
Commissioner may--
            ``(1) provide consultative services and technical 
        assistance to public or nonprofit private agencies and 
        organizations, including assistance to enable such agencies and 
        organizations to facilitate meaningful and effective 
        participation by individuals with disabilities in workforce 
        investment activities;
            ``(2) provide short-term training and technical 
        instruction, including training for the personnel of community 
        rehabilitation programs, centers for independent living, and 
        other providers of services (including job coaches);
            ``(3) conduct special projects and demonstrations;
            ``(4) collect, prepare, publish, and disseminate special 
        educational or informational materials, including reports of 
        the projects for which funds are provided under this Act; and
            ``(5) provide monitoring and conduct evaluations.
    ``(b)(1) In carrying out the duties under this Act, the 
Commissioner may utilize the services and facilities of any agency of 
the Federal Government and of any other public or nonprofit agency or 
organization, in accordance with agreements between the Commissioner 
and the head thereof, and may pay therefor, in advance or by way of 
reimbursement, as may be provided in the agreement.
    ``(2) In carrying out the provisions of this Act, the Commissioner 
shall appoint such task forces as may be necessary to collect and 
disseminate information in order to improve the ability of the 
Commissioner to carry out the provisions of this Act.
    ``(c) The Commissioner may promulgate such regulations as are 
considered appropriate to carry out the Commissioner's duties under 
this Act.
    ``(d) The Secretary shall promulgate regulations regarding the 
requirements for the implementation of an order of selection for 
vocational rehabilitation services under section 101(a)(5)(A) if such 
services cannot be provided to all eligible individuals with 
disabilities who apply for such services.
    ``(e) Not later than 180 days after the date of enactment of the 
Rehabilitation Act Amendments of 1998, the Secretary shall receive 
public comment and promulgate regulations to implement the amendments 
made by the Rehabilitation Act Amendments of 1998.
    ``(f) In promulgating regulations to carry out this Act, the 
Secretary shall promulgate only regulations that are necessary to 
administer and ensure compliance with the specific requirements of this 
Act.
    ``(g) There are authorized to be appropriated to carry out this 
section such sums as may be necessary.

                               ``reports

    ``Sec. 13. (a) Not later than one hundred and eighty days after the 
close of each fiscal year, the Commissioner shall prepare and submit to 
the President and to the Congress a full and complete report on the 
activities carried out under this Act, including the activities and 
staffing of the information clearinghouse under section 15.
    ``(b) The Commissioner shall collect information to determine 
whether the purposes of this Act are being met and to assess the 
performance of programs carried out under this Act. The Commissioner 
shall take whatever action is necessary to assure that the identity of 
each individual for which information is supplied under this section is 
kept confidential, except as otherwise required by law (including 
regulation).
    ``(c) In preparing the report, the Commissioner shall annually 
collect and include in the report information based on the information 
submitted by States in accordance with section 101(a)(10). The 
Commissioner shall, to the maximum extent appropriate, include in the 
report all information that is required to be submitted in the reports 
described in section 321(d) of the Workforce Investment Partnership Act 
of 1998 and that pertains to the employment of individuals with 
disabilities.

                              ``evaluation

    ``Sec. 14. (a) For the purpose of improving program management and 
effectiveness, the Secretary, in consultation with the Commissioner, 
shall evaluate all the programs authorized by this Act, their general 
effectiveness in relation to their cost, their impact on related 
programs, and their structure and mechanisms for delivery of services, 
using appropriate methodology and evaluative research designs. The 
Secretary shall establish and use standards for the evaluations 
required by this subsection. Such an evaluation shall be conducted by a 
person not immediately involved in the administration of the program 
evaluated.
    ``(b) In carrying out evaluations under this section, the Secretary 
shall obtain the opinions of program and project participants about the 
strengths and weaknesses of the programs and projects.
    ``(c) The Secretary shall take the necessary action to assure that 
all studies, evaluations, proposals, and data produced or developed 
with Federal funds under this Act shall become the property of the 
United States.
    ``(d) Such information as the Secretary may determine to be 
necessary for purposes of the evaluations conducted under this section 
shall be made available upon request of the Secretary, by the 
departments and agencies of the executive branch.
    ``(e)(1) To assess the linkages between vocational rehabilitation 
services and economic and noneconomic outcomes, the Secretary shall 
continue to conduct a longitudinal study of a national sample of 
applicants for the services.
    ``(2) The study shall address factors related to attrition and 
completion of the program through which the services are provided and 
factors within and outside the program affecting results. Appropriate 
comparisons shall be used to contrast the experiences of similar 
persons who do not obtain the services.
    ``(3) The study shall be planned to cover the period beginning on 
the application of individuals with disabilities for the services, 
through the eligibility determination and provision of services for the 
individuals, and a further period of not less than 2 years after the 
termination of services.
    ``(f)(1) The Commissioner shall identify and disseminate 
information on exemplary practices concerning vocational 
rehabilitation.
    ``(2) To facilitate compliance with paragraph (1), the Commissioner 
shall conduct studies and analyses that identify exemplary practices 
concerning vocational rehabilitation, including studies in areas 
relating to providing informed choice in the rehabilitation process, 
promoting consumer satisfaction, promoting job placement and retention, 
providing supported employment, providing services to particular 
disability populations, financing personal assistance services, 
providing assistive technology devices and assistive technology 
services, entering into cooperative agreements, establishing standards 
and certification for community rehabilitation programs, converting 
from nonintegrated to integrated employment, and providing caseload 
management.
    ``(g) There are authorized to be appropriated to carry out this 
section such sums as may be necessary.

                      ``information clearinghouse

    ``Sec. 15. (a) The Secretary shall establish a central 
clearinghouse for information and resource availability for individuals 
with disabilities which shall provide information and data regarding--
            ``(1) the location, provision, and availability of services 
        and programs for individuals with disabilities, including such 
        information and data provided by statewide partnerships 
        established under section 303 of the Workforce Investment 
        Partnership Act of 1998 regarding such services and programs 
        authorized under such Act;
            ``(2) research and recent medical and scientific 
        developments bearing on disabilities (and their prevention, 
        amelioration, causes, and cures); and
            ``(3) the current numbers of individuals with disabilities 
        and their needs.
The clearinghouse shall also provide any other relevant information and 
data which the Secretary considers appropriate.
    ``(b) The Commissioner may assist the Secretary to develop within 
the Department of Education a coordinated system of information and 
data retrieval, which will have the capacity and responsibility to 
provide information regarding the information and data referred to in 
subsection (a) of this section to the Congress, public and private 
agencies and organizations, individuals with disabilities and their 
families, professionals in fields serving such individuals, and the 
general public.
    ``(c) The office established to carry out the provisions of this 
section shall be known as the `Office of Information and Resources for 
Individuals with Disabilities'.
    ``(d) There are authorized to be appropriated to carry out this 
section such sums as may be necessary.

                          ``transfer of funds

    ``Sec. 16. (a) Except as provided in subsection (b) of this 
section, no funds appropriated under this Act for any research program 
or activity may be used for any purpose other than that for which the 
funds were specifically authorized.
    ``(b) No more than 1 percent of funds appropriated for 
discretionary grants, contracts, or cooperative agreements authorized 
by this Act may be used for the purpose of providing non-Federal panels 
of experts to review applications for such grants, contracts, or 
cooperative agreements.

                         ``state administration

    ``Sec. 17. The application of any State rule or policy relating to 
the administration or operation of programs funded by this Act 
(including any rule or policy based on State interpretation of any 
Federal law, regulation, or guideline) shall be identified as a State 
imposed requirement.

                        ``review of applications

    ``Sec. 18. Applications for grants in excess of $100,000 in the 
aggregate authorized to be funded under this Act, other than grants 
primarily for the purpose of conducting dissemination or conferences, 
shall be reviewed by panels of experts which shall include a majority 
of non-Federal members. Non-Federal members may be provided travel, per 
diem, and consultant fees not to 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.

``SEC. 19. CARRYOVER.

    ``(a) In General.--Except as provided in subsection (b), and 
notwithstanding any other provision of law--
            ``(1) any funds appropriated for a fiscal year to carry out 
        any grant program under part B of title I, section 509 (except 
        as provided in section 509(b)), part C of title VI, part B or C 
        of chapter 1 of title VII, or chapter 2 of title VII (except as 
        provided in section 752(b)), including any funds reallotted 
        under any such grant program, that are not obligated and 
        expended by recipients prior to the beginning of the succeeding 
        fiscal year; or
            ``(2) any amounts of program income, including 
        reimbursement payments under the Social Security Act (42 U.S.C. 
        301 et seq.), received by recipients under any grant program 
        specified in paragraph (1) that are not obligated and expended 
        by recipients prior to the beginning of the fiscal year 
        succeeding the fiscal year in which such amounts were received,
shall remain available for obligation and expenditure by such 
recipients during such succeeding fiscal year.
    ``(b) Non-Federal Share.--Such funds shall remain available for 
obligation and expenditure by a recipient as provided in subsection (a) 
only to the extent that the recipient complied with any Federal share 
requirements applicable to the program for the fiscal year for which 
the funds were appropriated.

``SEC. 20. CLIENT ASSISTANCE INFORMATION.

    ``All programs, including community rehabilitation programs, and 
projects, that provide services to individuals with disabilities under 
this Act shall advise such individuals who are applicants for or 
recipients of the services, or the applicants' representatives or 
individuals' representatives, of the availability and purposes of the 
client assistance program under section 112, including information on 
means of seeking assistance under such program.

``SEC. 21. TRADITIONALLY UNDERSERVED POPULATIONS.

    ``(a) Findings.--With respect to the programs authorized in titles 
II through VII, the Congress finds as follows:
            ``(1) Racial profile.--The racial profile of America is 
        rapidly changing. While the rate of increase for white 
        Americans is 3.2 percent, the rate of increase for racial and 
        ethnic minorities is much higher: 38.6 percent for Latinos, 
        14.6 percent for African-Americans, and 40.1 percent for Asian-
        Americans and other ethnic groups. By the year 2000, the Nation 
        will have 260,000,000 people, one of every three of whom will 
        be either African-American, Latino, or Asian-American.
            ``(2) Rate of disability.--Ethnic and racial minorities 
        tend to have disabling conditions at a disproportionately high 
        rate. The rate of work-related disability for American Indians 
        is about one and one-half times that of the general population. 
        African-Americans are also one and one-half times more likely 
        to be disabled than whites and twice as likely to be 
        significantly disabled.
            ``(3) Inequitable treatment.--Patterns of inequitable 
        treatment of minorities have been documented in all major 
        junctures of the vocational rehabilitation process. As compared 
        to white Americans, a larger percentage of African-American 
        applicants to the vocational rehabilitation system is denied 
        acceptance. Of applicants accepted for service, a larger 
        percentage of African-American cases is closed without being 
        rehabilitated. Minorities are provided less training than their 
        white counterparts. Consistently, less money is spent on 
        minorities than on their white counterparts.
            ``(4) Recruitment.--Recruitment efforts within vocational 
        rehabilitation at the level of pre-service training, continuing 
        education, and in-service training must focus on bringing 
        larger numbers of minorities into the profession in order to 
        provide appropriate practitioner knowledge, role models, and 
        sufficient manpower to address the clearly changing demography 
        of vocational rehabilitation.
    ``(b) Outreach to Minorities.--
            ``(1) In general.--For each fiscal year, the Commissioner 
        and the Director of the National Institute on Disability and 
        Rehabilitation Research (referred to in this subsection as the 
        `Director') shall reserve 1 percent of the funds appropriated 
        for the fiscal year for programs authorized under titles II, 
        III, VI, and VII to carry out this subsection. The Commissioner 
        and the Director shall use the reserved funds to carry out 1 or 
        more of the activities described in paragraph (2) through a 
        grant, contract, or cooperative agreement.
            ``(2) Activities.--The activities carried out by the 
        Commissioner and the Director shall include 1 or more of the 
        following:
                    ``(A) Making awards to minority entities and Indian 
                tribes to carry out activities under the programs 
                authorized under titles II, III, VI, and VII.
                    ``(B) Making awards to minority entities and Indian 
                tribes to conduct research, training, technical 
                assistance, or a related activity, to improve services 
                provided under this Act, especially services provided 
                to individuals from minority backgrounds.
                    ``(C) Making awards to entities described in 
                paragraph (3) to provide outreach and technical 
                assistance to minority entities and Indian tribes to 
                promote their participation in activities funded under 
                this Act, including assistance to enhance their 
                capacity to carry out such activities.
            ``(3) Eligibility.--To be eligible to receive a award under 
        paragraph (2)(C), an entity shall be a State or a public or 
        private nonprofit agency or organization, such as an 
        institution of higher education or an Indian tribe.
            ``(4) Report.--In each fiscal year, the Commissioner and 
        the Director shall prepare and submit to Congress a report that 
        describes the activities funded under this subsection for the 
        preceding fiscal year.
            ``(5) Definitions.--In this subsection:
                    ``(A) Historically black college or university.--
                The term ``historically Black college or university'' 
                means a part B institution, as defined in section 
                322(2) of the Higher Education Act of 1965 (20 U.S.C. 
                1061(2)).
                    ``(B) Minority entity.--The term ``minority entity' 
                means an entity that is a Historically Black College or 
                University, a Hispanic-serving institution of higher 
                education, an American Indian Tribal College or 
                University, or another institution of higher education 
                whose minority student enrollment is at least 50 
                percent.
    ``(c) Demonstration.--In awarding grants, or entering into 
contracts or cooperative agreements under titles I, II, III, VI, and 
VII, and section 509, the Commissioner and the Director, in appropriate 
cases, shall require applicants to demonstrate how the applicants will 
address, in whole or in part, the needs of individuals with 
disabilities from minority backgrounds.''.

SEC. 4. VOCATIONAL REHABILITATION SERVICES.

    Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.) 
is amended to read as follows:

             ``TITLE I--VOCATIONAL REHABILITATION SERVICES

                      ``PART A--GENERAL PROVISIONS

``SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Findings; Purpose; Policy.--
            ``(1) Findings.--Congress finds that--
                    ``(A) work--
                            ``(i) is a valued activity, both for 
                        individuals and society; and
                            ``(ii) fulfills the need of an individual 
                        to be productive, promotes independence, 
                        enhances self-esteem, and allows for 
                        participation in the mainstream of life in the 
                        United States;
                    ``(B) as a group, individuals with disabilities 
                experience staggering levels of unemployment and 
                poverty;
                    ``(C) individuals with disabilities, including 
                individuals with the most significant disabilities, 
                have demonstrated their ability to achieve gainful 
                employment in integrated settings if appropriate 
                services and supports are provided;
                    ``(D) reasons for significant numbers of 
                individuals with disabilities not working, or working 
                at levels not commensurate with their abilities and 
                capabilities, include--
                            ``(i) discrimination;
                            ``(ii) lack of accessible and available 
                        transportation;
                            ``(iii) fear of losing health coverage 
                        under the medicare and medicaid programs 
                        carried out under titles XVIII and XIX of the 
                        Social Security Act (42 U.S.C. 1395 et seq. and 
                        1396 et seq.) or fear of losing private health 
                        insurance; and
                            ``(iv) lack of education, training, and 
                        supports to meet job qualification standards 
                        necessary to secure, retain, regain, or advance 
                        in employment;
                    ``(E) enforcement of title V and of the Americans 
                with Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) 
                holds the promise of ending discrimination for 
                individuals with disabilities;
                    ``(F) the provision of workforce investment 
                activities and vocational rehabilitation services can 
                enable individuals with disabilities, including 
                individuals with the most significant disabilities, to 
                pursue meaningful careers by securing gainful 
                employment commensurate with their abilities and 
                capabilities; and
                    ``(G) linkages between the vocational 
                rehabilitation programs established under this title 
                and other components of the statewide workforce 
                investment system are critical to ensure effective and 
                meaningful participation by individuals with 
                disabilities in workforce investment activities.
            ``(2) Purpose.--The purpose of this title is to assist 
        States in operating statewide comprehensive, coordinated, 
        effective, efficient, and accountable programs of vocational 
        rehabilitation, each of which is--
                    ``(A) an integral part of a statewide workforce 
                investment system; and
                    ``(B) designed to assess, plan, develop, and 
                provide vocational rehabilitation services for 
                individuals 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 gainful 
                employment.
            ``(3) Policy.--It is the policy of the United States that 
        such a program shall be carried out in a manner consistent with 
        the following principles:
                    ``(A) Individuals with disabilities, including 
                individuals with the most significant disabilities, are 
                generally presumed to be capable of engaging in gainful 
                employment and the provision of individualized 
                vocational rehabilitation services can improve their 
                ability to become gainfully employed.
                    ``(B) Individuals with disabilities must be 
                provided the opportunities to obtain gainful employment 
                in integrated settings.
                    ``(C) Individuals who are applicants for such 
                programs or eligible to participate in such programs 
                must be active and full partners, in collaboration with 
                qualified vocational rehabilitation professionals, in 
                the vocational rehabilitation process, making 
                meaningful and informed choices--
                            ``(i) during assessments for determining 
                        eligibility and vocational rehabilitation 
                        needs; and
                            ``(ii) in the selection of employment 
                        outcomes for the individuals, services needed 
                        to achieve the outcomes, entities providing 
                        such services, and the methods used to secure 
                        such services.
                    ``(D) Families and other natural supports can play 
                important roles in the success of a vocational 
                rehabilitation program, if the individual with a 
                disability involved requests, desires, or needs such 
                supports.
                    ``(E) Vocational rehabilitation counselors that are 
                trained and prepared in accordance with State policies 
                and procedures as described in section 
                101(a)(7)(A)(iii) (referred to individually in this 
                title as a `qualified vocational rehabilitation 
                counselor'), other qualified rehabilitation personnel, 
                and other qualified personnel facilitate the 
                accomplishment of the employment outcomes and 
                objectives of an individual.
                    ``(F) Individuals with disabilities and the 
                individuals' representatives are full partners in a 
                vocational rehabilitation program and must be involved 
                on a regular basis and in a meaningful manner with 
                respect to policy development and implementation.
                    ``(G) Accountability measures must facilitate the 
                accomplishment of the goals and objectives of the 
                program, including providing vocational rehabilitation 
                services to, among others, individuals with the most 
                significant disabilities.
    ``(b) Authorization of Appropriations.--
            ``(1) In general.--For the purpose of making grants to 
        States under part B to assist States in meeting the costs of 
        vocational rehabilitation services provided in accordance with 
        State plans under section 101, there are authorized to be 
        appropriated such sums as may be necessary for fiscal years 
        1998 through 2004, except that the amount to be appropriated 
        for a fiscal year shall not be less than the amount of the 
        appropriation under this paragraph for the immediately 
        preceding fiscal year, increased by the percentage change in 
        the Consumer Price Index determined under subsection (c) for 
        the immediately preceding fiscal year.
            ``(2) Reference.--The reference in paragraph (1) to grants 
        to States under part B shall not be considered to refer to 
        grants under section 112.
    ``(c) Consumer Price Index.--
            ``(1) Percentage change.--No later than November 15 of each 
        fiscal year (beginning with fiscal year 1979), the Secretary of 
        Labor shall publish in the Federal Register the percentage 
        change in the Consumer Price Index published for October of the 
        preceding fiscal year and October of the fiscal year in which 
        such publication is made.
            ``(2) Application.--
                    ``(A) Increase.--If in any fiscal year the 
                percentage change published under paragraph (1) 
                indicates an increase in the Consumer Price Index, then 
                the amount to be appropriated under subsection (b)(1) 
                for the subsequent fiscal year shall be at least the 
                amount appropriated under subsection (b)(1) for the 
                fiscal year in which the publication is made under 
                paragraph (1) increased by such percentage change.
                    ``(B) No increase or decrease.--If in any fiscal 
                year the percentage change published under paragraph 
                (1) does not indicate an increase in the Consumer Price 
                Index, then the amount to be appropriated under 
                subsection (b)(1) for the subsequent fiscal year shall 
                be at least the amount appropriated under subsection 
                (b)(1) for the fiscal year in which the publication is 
                made under paragraph (1).
            ``(3) Definition.--For purposes of this section, the term 
        `Consumer Price Index' means the Consumer Price Index for All 
        Urban Consumers, published monthly by the Bureau of Labor 
        Statistics.
    ``(d) Extension.--
            ``(1) In general.--
                    ``(A) Authorization or duration of program.--Unless 
                the Congress in the regular session which ends prior to 
                the beginning of the terminal fiscal year--
                            ``(i) of the authorization of 
                        appropriations for the program authorized by 
                        the State grant program under part B of this 
                        title; or
                            ``(ii) of the duration of the program 
                        authorized by the State grant program under 
                        part B of this title;
                has passed legislation which would have the effect of 
                extending the authorization or duration (as the case 
                may be) of such program, such authorization or duration 
                is automatically extended for 1 additional year for the 
                program authorized by this title.
                    ``(B) Calculation.--The amount authorized to be 
                appropriated for the additional fiscal year described 
                in subparagraph (A) shall be an amount equal to the 
amount appropriated for such program for fiscal year 2004, increased by 
the percentage change in the Consumer Price Index determined under 
subsection (c) for the immediately preceding fiscal year, if the 
percentage change indicates an increase.
            ``(2) Construction.--
                    ``(A) Passage of legislation.--For the purposes of 
                paragraph (1)(A), Congress shall not be deemed to have 
                passed legislation unless such legislation becomes law.
                    ``(B) Acts or determinations of commissioner.--In 
                any case where the Commissioner is required under an 
                applicable statute to carry out certain acts or make 
                certain determinations which are necessary for the 
                continuation of the program authorized by this title, 
                if such acts or determinations are required during the 
                terminal year of such program, such acts and 
                determinations shall be required during any fiscal year 
                in which the extension described in that part of 
                paragraph (1) that follows clause (ii) of paragraph 
                (1)(A) is in effect.

``SEC. 101. STATE PLANS.

    ``(a) Plan Requirements.--
            ``(1) In general.--
                    ``(A) Submission.--To be eligible to participate in 
                programs under this title, a State shall submit to the 
                Commissioner a State plan for vocational rehabilitation 
                services that meets the requirements of this section, 
                on the same date that the State submits a State plan 
                under section 304 of the Workforce Investment 
                Partnership Act of 1998.
                    ``(B) Nonduplication.--The State shall not be 
                required to submit, in the State plan for vocational 
                rehabilitation services, policies, procedures, or 
                descriptions required under this title that have been 
                previously submitted to the Commissioner and that 
                demonstrate that such State meets the requirements of 
                this title, including any policies, procedures, or 
                descriptions submitted under this title as in effect on 
                the day before the effective date of the Rehabilitation 
                Act Amendments of 1998.
                    ``(C) Duration.--The State plan shall remain in 
                effect subject to the submission of such modifications 
                as the State determines to be necessary or as the 
                Commissioner may require based on a change in State 
                policy, a change in Federal law (including 
                regulations), an interpretation of this Act by a 
                Federal court or the highest court of the State, or a 
                finding by the Commissioner of State noncompliance with 
                the requirements of this Act, until the State submits 
                and receives approval of a new State plan.
            ``(2) Designated state agency; designated state unit.--
                    ``(A) Designated state agency.--The State plan 
                shall designate a State agency as the sole State agency 
                to administer the plan, or to supervise the 
                administration of the plan by a local agency, except 
                that--
                            ``(i) where, under State law, the State 
                        agency for individuals who are blind or another 
                        agency that provides assistance or services to 
                        adults who are blind is authorized to provide 
                        vocational rehabilitation services to 
                        individuals who are blind, that agency may be 
                        designated as the sole State agency to 
                        administer the part of the plan under which 
                        vocational rehabilitation services are provided 
                        for individuals who are blind (or to supervise 
                        the administration of such part by a local 
                        agency) and a separate State agency may be 
                        designated as the sole State agency to 
                        administer or supervise the administration of 
                        the rest of the State plan;
                            ``(ii) the Commissioner, on the request of 
                        a State, may authorize the designated State 
                        agency to share funding and administrative 
                        responsibility with another agency of the State 
                        or with a local agency in order to permit the 
                        agencies to carry out a joint program to 
                        provide services to individuals with 
                        disabilities, and may waive compliance, with 
                        respect to vocational rehabilitation services 
                        furnished under the joint program, with the 
                        requirement of paragraph (4) that the plan be 
                        in effect in all political subdivisions of the 
                        State; and
                            ``(iii) in the case of American Samoa, the 
                        appropriate State agency shall be the Governor 
                        of American Samoa.
                    ``(B) Designated state unit.--The State agency 
                designated under subparagraph (A) shall be--
                            ``(i) a State agency primarily concerned 
                        with vocational rehabilitation, or vocational 
                        and other rehabilitation, of individuals with 
                        disabilities; or
                            ``(ii) if not such an agency, the State 
                        agency (or each State agency if 2 are so 
                        designated) shall include a vocational 
                        rehabilitation bureau, division, or other 
                        organizational unit that--
                                    ``(I) is primarily concerned with 
                                vocational rehabilitation, or 
                                vocational and other rehabilitation, of 
                                individuals with disabilities, and is 
                                responsible for the vocational 
                                rehabilitation program of the 
                                designated State agency;
                                    ``(II) has a full-time director;
                                    ``(III) has a staff employed on the 
                                rehabilitation work of the 
                                organizational unit all or 
                                substantially all of whom are employed 
                                full time on such work; and
                                    ``(IV) is located at an 
                                organizational level and has an 
                                organizational status within the 
                                designated State agency comparable to 
                                that of other major organizational 
                                units of the designated State agency.
                    ``(C) Responsibility for services for the blind.--
                If the State has designated only 1 State agency 
                pursuant to subparagraph (A), the State may assign 
                responsibility for the part of the plan under which 
                vocational rehabilitation services are provided for 
                individuals who are blind to an organizational unit of 
                the designated State agency and assign responsibility 
                for the rest of the plan to another organizational unit 
                of the designated State agency, with the provisions of 
                subparagraph (B) applying separately to each of the 
                designated State units.
            ``(3) Non-federal share.--The State plan shall provide for 
        financial participation by the State, or if the State so 
        elects, by the State and local agencies, to provide the amount 
        of the non-Federal share of the cost of carrying out part B.
            ``(4) Statewideness.--The State plan shall provide that the 
        plan shall be in effect in all political subdivisions of the 
        State, except that in the case of any activity that, in the 
        judgment of the Commissioner, is likely to assist in promoting 
        the vocational rehabilitation of substantially larger numbers 
        of individuals with disabilities or groups of individuals with 
        disabilities, the Commissioner may waive compliance with the 
requirement that the plan be in effect in all political subdivisions of 
the State to the extent and for such period as may be provided in 
accordance with regulations prescribed by the Commissioner. The 
Commissioner may waive compliance with the requirement only if the non-
Federal share of the cost of the vocational rehabilitation services is 
provided from funds made available by a local agency (including, to the 
extent permitted by such regulations, funds contributed to such agency 
by a private agency, organization, or individual).
            ``(5) Order of selection for vocational rehabilitation 
        services.--In the event that vocational rehabilitation services 
        cannot be provided to all eligible individuals with 
        disabilities in the State who apply for the services, the State 
        plan shall--
                    ``(A) show the order to be followed in selecting 
                eligible individuals to be provided vocational 
                rehabilitation services;
                    ``(B) provide the justification for the order of 
                selection;
                    ``(C) include an assurance that, in accordance with 
                criteria established by the State for the order of 
                selection, individuals with the most significant 
                disabilities will be selected first for the provision 
                of vocational rehabilitation services; and
                    ``(D) provide that eligible individuals, who do not 
                meet the order of selection criteria, shall have access 
                to services provided through the information and 
                referral system implemented under paragraph (20).
            ``(6) Methods for administration.--
                    ``(A) In general.--The State plan shall provide for 
                such methods of administration as are found by the 
                Commissioner to be necessary for the proper and 
                efficient administration of the plan.
                    ``(B) Employment of individuals with 
                disabilities.--The State plan shall provide that the 
                designated State agency, and entities carrying out 
                community rehabilitation programs in the State, who are 
                in receipt of assistance under this title shall take 
                affirmative action to employ and advance in employment 
                qualified individuals with disabilities covered under, 
                and on the same terms and conditions as set forth in, 
                section 503.
                    ``(C) Personnel and program standards for community 
                rehabilitation programs.--The State plan shall provide 
                that the designated State unit shall establish, 
                maintain, and implement minimum standards for community 
                rehabilitation programs providing services to 
                individuals under this title, including--
                            ``(i) standards--
                                    ``(I) governing community 
                                rehabilitation programs and qualified 
                                personnel utilized for the provision of 
                                vocational rehabilitation services 
                                through such programs; and
                                    ``(II) providing, to the extent 
                                that providers of vocational 
                                rehabilitation services utilize 
                                personnel who do not meet the highest 
                                requirements in the State applicable to 
                                a particular profession or discipline, 
                                that the providers shall take steps to 
                                ensure the retraining or hiring of 
                                personnel so that such personnel meet 
                                appropriate professional standards in 
                                the State; and
                            ``(ii) minimum standards to ensure the 
                        availability of personnel, to the maximum 
                        extent feasible, trained to communicate in the 
                        native language or mode of communication of an 
                        individual receiving services through such 
                        programs.
                    ``(D) Facilities.--The State plan shall provide 
                that facilities used in connection with the delivery of 
                services assisted under the State plan shall comply 
                with the Act entitled `An Act to insure that certain 
                buildings financed with Federal funds are so designed 
                and constructed as to be accessible to the physically 
                handicapped', approved on August 12, 1968 (commonly 
                known as the `Architectural Barriers Act of 1968'), 
                with section 504, and with the Americans with 
                Disabilities Act of 1990.
            ``(7) Comprehensive system of personnel development.--The 
        State plan shall include--
                    ``(A) a description, consistent with the purposes 
                of this Act, of a comprehensive system of personnel 
                development for personnel involved in carrying out this 
                title, which, at a minimum, shall consist of--
                            ``(i) a description of the procedures and 
                        activities the designated State agency will 
                        implement and undertake to address the current 
                        and projected needs for personnel, and training 
                        needs of such personnel, in the designated 
                        State unit to ensure that the personnel are 
                        adequately trained and prepared;
                            ``(ii) a plan to coordinate and facilitate 
                        efforts between the designated State unit and 
                        institutions of higher education and 
                        professional associations to recruit, prepare, 
                        and retain qualified personnel, including 
                        personnel from culturally or linguistically 
                        diverse backgrounds, and personnel that include 
                        individuals with disabilities;
                            ``(iii) a description of policies and 
                        procedures on the establishment and maintenance 
                        of reasonable standards to ensure that 
                        personnel, including professionals and 
                        paraprofessionals, are adequately trained and 
                        prepared, including--
                                    ``(I) standards that are consistent 
                                with any 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; and
                                    ``(II) to the extent that such 
                                standards are not based on the highest 
                                requirements in the State applicable to 
                                a particular profession or discipline, 
                                the steps the State will take to ensure 
                                the retraining or hiring of personnel 
                                within the designated State unit so 
                                that such personnel meet appropriate 
                                professional standards in the State;
                            ``(iv) a description of a system for 
                        evaluating the performance of vocational 
                        rehabilitation counselors, coordinators, and 
                        other personnel used in the State, including a 
                        description of how the system facilitates the 
                        accomplishment of the purpose and policy of 
                        this title, including the policy of serving 
                        individuals with the most significant 
                        disabilities;
                            ``(v) a description of standards to ensure 
                        the availability of personnel within the 
                        designated State unit who are, to the maximum 
                        extent feasible, trained to communicate in the 
                        native language or mode of communication of an 
                        applicant or eligible individual; and
                            ``(vi) a detailed description, including a 
                        budget, of how the funds reserved under 
                        subparagraph (B) will be expended to carry out 
                        the comprehensive system for personnel 
                        development, including the provision of in-
                        service training for personnel of the 
                        designated State unit;
                    ``(B) assurances that--
                            ``(i) at a minimum, the State will reserve 
                        from the allotment made to the State under 
                        section 110 an amount to carry out the 
                        comprehensive system of personnel development, 
                        including the provision of in-service training 
                        for personnel of the designated State unit;
                            ``(ii) for fiscal year 1999, the amount 
                        reserved will be equal to the amount of the 
                        funds the State received for fiscal year 1998 
                        to provide in-service training under section 
                        302, or for any State that did not receive 
                        those funds for fiscal year 1998, an amount 
                        determined by the Commissioner; and
                            ``(iii) for each subsequent year, the 
                        amount reserved under this subparagraph will be 
                        equal to the amount reserved under this 
                        subparagraph for the previous fiscal year, 
                        increased by the percentage change in the 
                        Consumer Price Index published under section 
                        100(c) in such previous fiscal year, if the 
                        percentage change indicates an increase; and
                    ``(C) an assurance that the standards adopted by a 
                State in accordance with subparagraph (A)(iii) shall 
                not permit discrimination on the basis of disability 
                with regard to training and hiring.
            ``(8) Comparable services and benefits.--
                    ``(A) Determination of availability.--
                            ``(i) In general.--The State plan shall 
                        include an assurance that, prior to providing 
                        any vocational rehabilitation service to an 
                        eligible individual, except those services 
                        specified in paragraph (5)(D) and in paragraphs 
                        (1) through (4) and (14) of section 103(a), the 
                        designated State unit will determine whether 
comparable services and benefits are available under any other program 
(other than a program carried out under this title) unless such a 
determination would interrupt or delay--
                                    ``(I) the progress of the 
                                individual toward achieving the 
                                employment outcome identified in the 
                                individualized rehabilitation 
                                employment plan of the individual in 
                                accordance with section 102(b); or
                                    ``(II) the provision of such 
                                service to any individual at extreme 
                                medical risk.
                            ``(ii) Awards and scholarships.--For 
                        purposes of clause (i), comparable benefits do 
                        not include awards and scholarships based on 
                        merit.
                    ``(B) Interagency agreement.--The State plan shall 
                include an assurance that the Chief Executive Officer 
                of the State or the designee of such officer will 
                ensure that an interagency agreement or other mechanism 
                for interagency coordination takes effect between any 
                appropriate public entity, including a component of the 
                statewide workforce investment system, and the 
                designated State unit, in order to ensure the provision 
                of vocational rehabilitation services described in 
                subparagraph (A) (other than those services specified 
                in paragraph (5)(D), and in paragraphs (1) through (4) 
                and (14) of section 103(a)), that are included in the 
                individualized rehabilitation employment plan of an 
                eligible individual, including the provision of such 
                vocational rehabilitation services during the pendency 
                of any dispute described in clause (iii). Such 
                agreement or mechanism shall include the following:
                            ``(i) Agency financial responsibility.--An 
                        identification of, or a description of a method 
                        for defining, the financial responsibility of 
                        such public entity for providing such services, 
                        and a provision stating that the financial 
                        responsibility of such public entity for 
                        providing such services, including the 
                        financial responsibility of the State agency 
                        responsible for administering the medicaid 
                        program under title XIX of the Social Security 
                        Act (42 U.S.C. 1396 et seq.), other public 
                        agencies, and public institutions of higher 
                        education, shall precede the financial 
                        responsibility of the designated State unit 
                        especially with regard to the provision of 
                        auxiliary aids and services to the maximum 
                        extent allowed by law.
                            ``(ii) Conditions, terms, and procedures of 
                        reimbursement.--Information specifying the 
                        conditions, terms, and procedures under which a 
                        designated State unit shall pursue and obtain 
                        reimbursement by other public agencies for 
                        providing such services.
                            ``(iii) Interagency disputes.--Information 
                        specifying procedures for resolving interagency 
                        disputes under the agreement or other mechanism 
                        (including procedures under which the 
                        designated State unit may initiate proceedings 
                        to secure reimbursement from other agencies or 
                        otherwise implement the provisions of the 
                        agreement or mechanism).
                            ``(iv) Coordination of services 
                        procedures.--Information specifying policies 
                        and procedures for agencies to determine and 
                        identify the interagency coordination 
                        responsibilities of each agency to promote the 
                        coordination and timely delivery of vocational 
                        rehabilitation services (except those services 
                        specified in paragraph (5)(D) and in paragraphs 
                        (1) through (4) and (14) of section 103(a)).
                    ``(C) Responsibilities of other agencies.--
                            ``(i) Responsibilities under other law.--
                        Notwithstanding subparagraph (B), if any public 
                        agency other than a designated State unit is 
                        obligated under Federal or State law, or 
                        assigned responsibility under State policy or 
                        under this paragraph, to provide or pay for any 
                        services that are also considered to be 
                        vocational rehabilitation services (other than 
                        those specified in paragraph (5)(D) and in 
                        paragraphs (1) through (4) and (14) of section 
                        103(a)), such public agency shall fulfill that 
                        obligation or responsibility, either directly 
                        or by contract or other arrangement.
                            ``(ii) Reimbursement.--In a case in which a 
                        public agency other than the designated State 
                        unit fails to fulfill the financial 
                        responsibility of the agency described in this 
                        paragraph to provide services described in 
                        clause (i), the designated State unit may claim 
                        reimbursement from such public agency for such 
                        services. Such public agency shall reimburse 
                        the designated State unit pursuant to the terms 
                        of the interagency agreement or other mechanism 
                        in effect under this paragraph according to the 
                        procedures established pursuant to subparagraph 
                        (B)(ii).
                    ``(D) Methods.--The Chief Executive Officer of a 
                State may meet the requirements of subparagraph (B) 
                through--
                            ``(i) a State statute or regulation;
                            ``(ii) a signed agreement between the 
                        respective agency officials that clearly 
                        identifies the responsibilities of each agency 
                        relating to the provision of services; or
                            ``(iii) another appropriate method, as 
                        determined by the designated State unit.
            ``(9) Individualized rehabilitation employment plan.--
                    ``(A) Development and implementation.--The State 
                plan shall include an assurance that an individualized 
                rehabilitation employment plan meeting the requirements 
                of section 102(b) will be developed and implemented in 
                a timely manner for an individual subsequent to the 
                determination of the eligibility of the individual for 
                services under this title, except that in a State 
                operating under an order of selection described in 
                paragraph (5), the plan will be developed and 
                implemented only for individuals meeting the order of 
                selection criteria of the State.
                    ``(B) Provision of services.--The State plan shall 
                include an assurance that such services will be 
                provided in accordance with the provisions of the 
                individualized rehabilitation employment plan.
            ``(10) Reporting requirements.--
                    ``(A) In general.--The State plan shall include an 
                assurance that the designated State agency will submit 
                reports in the form and level of detail and at the time 
                required by the Commissioner regarding applicants for, 
                and eligible individuals receiving, services under this 
                title.
                    ``(B) Annual reporting.--In specifying the 
                information to be submitted in the reports, the 
                Commissioner shall require annual reporting on the 
                eligible individuals receiving the services, on those 
                specific data elements described in section 321(d)(2) 
                of the Workforce Investment Partnership Act of 1998 
                that are determined by the Secretary to be relevant in 
                assessing the performance of designated State units in 
                carrying out the vocational rehabilitation program 
                established under this title.
                    ``(C) Additional data.--In specifying the 
                information required to be submitted in the reports, 
                the Commissioner shall require additional data with 
                regard to applicants and eligible individuals related 
                to--
                            ``(i) the number of applicants and the 
                        number of individuals determined to be eligible 
                        or ineligible for the program carried out under 
                        this title, including--
                                    ``(I) the number of individuals 
                                determined to be ineligible because 
                                they did not require vocational 
                                rehabilitation services, as provided in 
                                section 102(a); and
                                    ``(II) the number of individuals 
                                determined, on the basis of clear and 
                                convincing evidence, to be too severely 
                                disabled to benefit in terms of an 
                                employment outcome from vocational 
                                rehabilitation services;
                            ``(ii) the number of individuals who 
                        received vocational rehabilitation services 
                        through the program, including--
                                    ``(I) the number who received 
                                services under paragraph (5)(D), but 
                                not assistance under an individualized 
                                rehabilitation employment plan; and
                                    ``(II) the number who received 
                                assistance under an individualized 
                                rehabilitation employment plan 
                                consistent with section 102(b);
                            ``(iii) the number of individuals receiving 
                        public assistance and the amount of the public 
                        assistance on the date of application and on 
                        the last date of participation in the program 
                        carried out under this title;
                            ``(iv) the number of individuals with 
                        disabilities who ended their participation in 
                        the program and the number who achieved 
                        employment outcomes after receiving vocational 
                        rehabilitation services; and
                            ``(v) the number of individuals who ended 
                        their participation in the program and who were 
                        employed 6 months and 12 months after securing 
                        or regaining employment, or, in the case of 
                        individuals whose employment outcome was to 
                        retain or advance in employment, who were 
                        employed 6 months and 12 months after achieving 
                        their employment outcome, including--
                                    ``(I) the number of such 
                                individuals who earned the minimum wage 
                                rate specified in section 6(a)(1) of 
                                the Fair Labor Standards Act of 1938 
                                (29 U.S.C. 206(a)(1)) or another wage 
                                level set by the Commissioner, during 
                                such employment;
                                    ``(II) the number of such 
                                individuals who received employment 
                                benefits from an employer during such 
                                employment; and
                                    ``(III) the number of such 
                                individuals whose public assistance was 
                                terminated or reduced after such 
                                participation;
                    ``(D) Costs and results.--The Commissioner shall 
                also require that the designated State agency include 
                in the reports information on--
                            ``(i) the costs under this title of 
                        conducting administration, providing assessment 
                        services, counseling and guidance, and other 
                        direct services provided by designated State 
                        agency staff, providing services purchased 
                        under individualized rehabilitation employment 
                        plans, supporting small business enterprises, 
                        establishing, developing, and improving 
                        community rehabilitation programs, and 
                        providing other services to groups; and
                            ``(ii) the results of annual evaluation by 
                        the State of program effectiveness under 
                        paragraph (15)(E).
                    ``(E) Additional information.--The Commissioner 
                shall require that each designated State unit include 
                in the reports additional information related to the 
                applicants and eligible individuals, obtained either 
                through a complete count or sampling, including--
                            ``(i) information on--
                                    ``(I) age, gender, race, ethnicity, 
                                education, type of impairment, severity 
                                of disability, and whether the 
                                individuals are students described in 
                                clause (i) or (ii)(II) of paragraph 
                                (11)(D);
                                    ``(II) dates of application, 
                                determination of eligibility or 
                                ineligibility, initiation of the 
                                individualized rehabilitation 
                                employment plan, and termination of 
                                participation in the program;
                                    ``(III) earnings at the time of 
                                application for the program and 
                                termination of participation in the 
                                program;
                                    ``(IV) work status and occupation;
                                    ``(V) types of services, including 
                                assistive technology services and 
                                assistive technology devices, provided 
                                under the program;
                                    ``(VI) types of public or private 
                                programs or agencies that furnished 
                                services under the program; and
                                    ``(VII) the reasons for individuals 
                                terminating participation in the 
                                program without achieving an employment 
                                outcome; and
                            ``(ii) information necessary to determine 
                        the success of the State in meeting--
                                    ``(I) the State performance 
                                measures established under section 
                                321(b) of the Workforce Investment 
                                Partnership Act of 1998 to the extent 
                                the measures are applicable to 
                                individuals with disabilities; and
                                    ``(II) the standards and indicators 
                                established pursuant to section 106.
                    ``(F) Completeness and confidentiality.--The State 
                plan shall include an assurance that the information 
                submitted in the reports will include a complete count, 
                except as provided in subparagraph (E), of the 
                applicants and eligible individuals, in a manner 
                permitting the greatest possible cross-classification 
                of data and that the identity of each individual for 
                which information is supplied under this paragraph will 
                be kept confidential.
            ``(11) Cooperation, collaboration, and coordination.--
                    ``(A) Cooperative agreements with other components 
                of statewide workforce investment systems.--The State 
                plan shall provide that the designated State unit or 
                designated State agency shall enter into a cooperative 
                agreement with other entities that are components of 
                the statewide workforce investment system of the State, 
                regarding the system, which agreement may provide for--
                            ``(i) provision of intercomponent staff 
                        training and technical assistance with regard 
                        to--
                                    ``(I) the availability and benefits 
                                of, and eligibility standards for, 
                                vocational rehabilitation services; and
                                    ``(II) the promotion of equal, 
                                effective, and meaningful participation 
                                by individuals with disabilities in 
                                workforce investment activities in the 
                                State through the promotion of program 
                                accessibility, the use of 
                                nondiscriminatory policies and 
                                procedures, and the provision of 
                                reasonable accommodations, auxiliary 
                                aids and services, and rehabilitation 
                                technology, for individuals with 
                                disabilities;
                            ``(ii) use of information and financial 
                        management systems that link all components of 
                        the statewide workforce investment system, that 
                        link the components to other electronic 
                        networks, including nonvisual electronic 
                        networks, and that relate to such subjects as 
                        labor market information, and information on 
                        job vacancies, career planning, and workforce 
                        investment activities;
                            ``(iii) use of customer service features 
                        such as common intake and referral procedures, 
                        customer databases, resource information, and 
                        human services hotlines;
                            ``(iv) establishment of cooperative efforts 
                        with employers to--
                                    ``(I) facilitate job placement; and
                                    ``(II) carry out any other 
                                activities that the designated State 
                                unit and the employers determine to be 
                                appropriate;
                            ``(v) identification of staff roles, 
                        responsibilities, and available resources, and 
                        specification of the financial responsibility 
                        of each component of the statewide workforce 
                        investment system with regard to paying for 
                        necessary services (consistent with State law 
                        and Federal requirements); and
                            ``(vi) specification of procedures for 
                        resolving disputes among such components.
                    ``(B) Replication of cooperative agreements.--The 
                State plan shall provide for the replication of such 
                cooperative agreements at the local level between 
                individual offices of the designated State unit and 
                local entities carrying out activities through the 
                statewide workforce investment system.
                    ``(C) Interagency cooperation with other 
                agencies.--The State plan shall include descriptions of 
                interagency cooperation with, and utilization of the 
                services and facilities of, the Federal, State, and 
                local agencies and programs that are not carrying out 
                activities through the statewide workforce investment 
                system.
                    ``(D) Coordination with education officials.--The 
                State plan shall contain plans, policies, and 
                procedures for coordination between the designated 
                State agency and education officials that are designed 
                to facilitate the transition of students who are 
                individuals with disabilities described in section 
                7(20)(B) from the receipt of educational services in 
                school to the receipt of vocational rehabilitation 
                services under this title, including information on a 
                formal interagency agreement with the State educational 
                agency that, at a minimum, provides for--
                            ``(i) consultation and technical assistance 
                        to assist educational agencies in planning for 
                        the transition of students who are individuals 
                        with disabilities described in section 7(20)(B) 
                        from school to post-school activities, 
                        including vocational rehabilitation services;
                            ``(ii)(I) transition planning by personnel 
                        of the designated State agency and educational 
                        agency personnel for students with disabilities 
                        described in clause (i) that facilitates the 
                        development and completion of their 
                        individualized education programs under section 
                        614(d) of the Individuals with Disabilities 
                        Education Act (as added by section 101 of 
                        Public Law 105-17); and
                            ``(II) transition planning and services for 
                        students who are eligible to receive services 
                        under this title and who will be exiting school 
                        in the school year in which the planning and 
                        services are provided;
                            ``(iii) the roles and responsibilities, 
                        including financial responsibilities, of each 
                        agency, including provisions for determining 
                        State lead agencies and qualified personnel 
                        responsible for the transition services 
                        described in clause (ii)(II); and
                            ``(iv) procedures for outreach to and 
                        identification of students with disabilities 
                        described in clause (ii)(II) who need the 
                        transition services.
                    ``(E) Coordination with statewide independent 
                living councils and independent living centers.--The 
                State plan shall include an assurance that the 
                designated State unit, the Statewide Independent Living 
                Council established under section 705, and the 
                independent living centers described in part C of title 
                VII within the State have developed working 
                relationships and coordinate their activities.
                    ``(F) Cooperative agreement with recipients of 
                grants for services to american indians.--In applicable 
                cases, the State plan shall include an assurance that 
                the State has entered into a formal cooperative 
                agreement with each grant recipient in the State that 
                receives funds under part C. The agreement shall 
                describe strategies for collaboration and coordination 
                in providing vocational rehabilitation services to 
                American Indians who are individuals with disabilities, 
                including--
                            ``(i) strategies for interagency referral 
                        and information sharing that will assist in 
                        eligibility determinations and the development 
                        of individualized rehabilitation employment 
                        plans;
                            ``(ii) procedures for ensuring that 
                        American Indians who are individuals with 
                        disabilities and are living near a reservation 
                        or tribal service area are provided vocational 
                        rehabilitation services; and
                            ``(iii) provisions for sharing resources in 
                        cooperative studies and assessments, joint 
                        training activities, and other collaborative 
                        activities designed to improve the provision of 
                        services to American Indians who are 
                        individuals with disabilities.
            ``(12) Residency.--The State plan shall include an 
        assurance that the State will not impose a residence 
        requirement that excludes from services provided under the plan 
        any individual who is present in the State.
            ``(13) Services to american indians.--The State plan shall 
        include an assurance that, except as otherwise provided in part 
        C, the designated State agency will provide vocational 
        rehabilitation services to American Indians who are individuals 
        with disabilities residing in the State to the same extent as 
        the designated State agency provides such services to other 
        significant populations of individuals with disabilities 
        residing in the State.
            ``(14) Annual review of individuals in extended employment 
        or other employment under special certificate provisions of the 
        fair labor standards act of 1938.--The State plan shall provide 
        for--
                    ``(A) an annual review and reevaluation of the 
                status of each individual with a disability served 
                under this title who has achieved an employment outcome 
                either in an extended employment setting in a community 
                rehabilitation program or any other employment under 
                section 14(c) of the Fair Labor Standards Act (29 
                U.S.C. 214(c)) for 2 years after the achievement of the 
                outcome (and annually thereafter if requested by the 
                individual or, if appropriate, the individual's 
                representative), to determine the interests, 
                priorities, and needs of the individual with respect to 
                competitive employment or training for competitive 
                employment;
                    ``(B) input into the review and reevaluation, and a 
                signed acknowledgement that such review and 
                reevaluation have been conducted, by the individual 
                with a disability, or, if appropriate, the individual's 
                representative; and
                    ``(C) maximum efforts, including the identification 
                and provision of vocational rehabilitation services, 
                reasonable accommodations, and other necessary support 
                services, to assist the individuals described in 
                subparagraph (A) in engaging in competitive employment.
            ``(15) Annual state goals and reports of progress.--
                    ``(A) Assessments and estimates.--The State plan 
                shall--
                            ``(i) include the results of a 
                        comprehensive, statewide assessment, jointly 
                        conducted by the designated State unit and the 
                        State Rehabilitation Council (if the State has 
                        such a Council) every 3 years, describing the 
                        rehabilitation needs of individuals with 
                        disabilities residing within the State, 
                        particularly the vocational rehabilitation 
                        services needs of--
                                    ``(I) individuals with the most 
                                significant disabilities, including 
                                their need for supported employment 
                                services;
                                    ``(II) individuals with 
                                disabilities who are minorities and 
                                individuals with disabilities who have 
                                been unserved or underserved by the 
                                vocational rehabilitation program 
                                carried out under this title; and
                                    ``(III) individuals with 
                                disabilities served through other 
                                components of the statewide workforce 
                                investment system (other than the 
                                vocational rehabilitation program), as 
                                identified by such individuals and 
                                personnel assisting such individuals 
                                through the components;
                            ``(ii) include an assessment of the need to 
                        establish, develop, or improve community 
                        rehabilitation programs within the State; and
                            ``(iii) provide that the State shall submit 
                        to the Commissioner a report containing 
                        information regarding updates to the 
                        assessments, for any year in which the State 
                        updates the assessments.
                    ``(B) Annual estimates.--The State plan shall 
                include, and shall provide that the State shall 
                annually submit a report to the Commissioner that 
                includes, State estimates of--
                            ``(i) the number of individuals in the 
                        State who are eligible for services under this 
                        title;
                            ``(ii) the number of such individuals who 
                        will receive services provided with funds 
                        provided under part B and under part C of title 
                        VI, including, if the designated State agency 
                        uses an order of selection in accordance with 
                        paragraph (5), estimates of the number of 
                        individuals to be served under each priority 
                        category within the order; and
                            ``(iii) the costs of the services described 
                        in clause (i), including, if the designated 
                        State agency uses an order of selection in 
                        accordance with paragraph (5), the service 
                        costs for each priority category within the 
                        order.
                    ``(C) Goals and priorities.--
                            ``(i) In general.--The State plan shall 
                        identify the goals and priorities of the State 
                        in carrying out the program. The goals and 
                        priorities shall be jointly developed, agreed 
                        to, and reviewed annually by the designated 
                        State unit and the State Rehabilitation 
                        Council, if the State has such a Council. Any 
                        revisions to the goals and priorities shall be 
                        jointly agreed to by the designated State unit 
                        and the State Rehabilitation Council, if the 
                        State has such a Council. The State plan shall 
                        provide that the State shall submit to the 
                        Commissioner a report containing information 
                        regarding revisions in the goals and 
                        priorities, for any year in which the State 
                        revises the goals and priorities.
                            ``(ii) Basis.--The State goals and 
                        priorities shall be based on an analysis of--
                                    ``(I) the comprehensive assessment 
                                described in subparagraph (A), 
                                including any updates to the 
                                assessment;
                                    ``(II) the performance of the State 
                                on the standards and indicators 
                                established under section 106; and
                                    ``(III) other available information 
                                on the operation and the 
effectiveness of the vocational rehabilitation program carried out in 
the State, including any reports received from the State Rehabilitation 
Council, under section 105(c) and the findings and recommendations from 
monitoring activities conducted under section 107.
                            ``(iii) Service and outcome goals for 
                        categories in order of selection.--If the 
                        designated State agency uses an order of 
                        selection in accordance with paragraph (5), the 
                        State shall also identify in the State plan 
                        service and outcome goals and the time within 
                        which these goals may be achieved for 
                        individuals in each priority category within 
                        the order.
                    ``(D) Strategies.--The State plan shall contain a 
                description of the strategies the State will use to 
                address the needs identified in the assessment 
                conducted under subparagraph (A) and achieve the goals 
                and priorities identified in subparagraph (C), 
                including--
                            ``(i) the methods to be used to expand and 
                        improve services to individuals with 
                        disabilities, including how a broad range of 
                        assistive technology services and assistive 
                        technology devices will be provided to such 
                        individuals at each stage of the rehabilitation 
                        process and how such services and devices will 
                        be provided to such individuals on a statewide 
                        basis;
                            ``(ii) outreach procedures to identify and 
                        serve individuals with disabilities who are 
                        minorities and individuals with disabilities 
                        who have been unserved or underserved by the 
                        vocational rehabilitation program;
                            ``(iii) where necessary, the plan of the 
                        State for establishing, developing, or 
                        improving community rehabilitation programs;
                            ``(iv) strategies to improve the 
                        performance of the State with respect to the 
                        evaluation standards and performance indicators 
                        established pursuant to section 106; and
                            ``(v) strategies for assisting entities 
                        carrying out other components of the statewide 
                        workforce investment system (other than the 
                        vocational rehabilitation program) in assisting 
                        individuals with disabilities.
                    ``(E) Evaluation and reports of progress.--The 
                State plan shall--
                            ``(i) include the results of an evaluation 
                        of the effectiveness of the vocational 
                        rehabilitation program, and a joint report by 
                        the designated State unit and the State 
                        Rehabilitation Council, if the State has such a 
                        Council, to the Commissioner on the progress 
                        made in improving the effectiveness from the 
                        previous year, which evaluation and report 
                        shall include--
                                    ``(I) an evaluation of the extent 
                                to which the goals identified in 
                                subparagraph (C) were achieved;
                                    ``(II) a description of strategies 
                                that contributed to achieving the 
                                goals;
                                    ``(III) to the extent to which the 
                                goals were not achieved, a description 
                                of the factors that impeded that 
                                achievement; and
                                    ``(IV) an assessment of the 
                                performance of the State on the 
                                standards and indicators established 
                                pursuant to section 106; and
                            ``(ii) provide that the designated State 
                        unit and the State Rehabilitation Council, if 
                        the State has such a Council, shall jointly 
                        submit to the Commissioner an annual report 
                        that contains the information described in 
                        clause (i).
            ``(16) Public comment.--The State plan shall--
                    ``(A) provide that the designated State agency, 
                prior to the adoption of any policies or procedures 
                governing the provision of vocational rehabilitation 
                services under the State plan (including making any 
                amendment to such policies and procedures), shall 
                conduct public meetings throughout the State, after 
                providing adequate notice of the meetings, to provide 
                the public, including individuals with disabilities, an 
                opportunity to comment on the policies or procedures, 
                and actively consult with the Director of the client 
                assistance program carried out under section 112, and, 
                as appropriate, Indian tribes, tribal organizations, 
                and Native Hawaiian organizations on the policies or 
                procedures; and
                    ``(B) provide that the designated State agency (or 
                each designated State agency if 2 agencies are 
                designated) and any sole agency administering the plan 
                in a political subdivision of the State, shall take 
                into account, in connection with matters of general 
                policy arising in the administration of the plan, the 
                views of--
                            ``(i) individuals and groups of individuals 
                        who are recipients of vocational rehabilitation 
                        services, or in appropriate cases, the 
                        individuals' representatives;
                            ``(ii) personnel working in programs that 
                        provide vocational rehabilitation services to 
                        individuals with disabilities;
                            ``(iii) providers of vocational 
                        rehabilitation services to individuals with 
                        disabilities;
                            ``(iv) the director of the client 
                        assistance program; and
                            ``(v) the State Rehabilitation Council, if 
                        the State has such a Council.
            ``(17) Prohibition on use of funds for construction of 
        facilities.--The State plan shall contain an assurance that the 
        State will not use any funds made available under this title 
        for the construction of facilities.
            ``(18) Innovation and expansion activities.--The State plan 
        shall--
                    ``(A) include an assurance that the State will 
                reserve and use a portion of the funds allotted to the 
                State under section 110--
                            ``(i) for the development and 
                        implementation of innovative approaches to 
                        expand and improve the provision of vocational 
                        rehabilitation services to individuals with 
                        disabilities under this title, particularly 
                        individuals with the most significant 
                        disabilities, consistent with the findings of 
                        the statewide assessment and goals and 
                        priorities of the State as described in 
                        paragraph (15); and
                            ``(ii) to support the funding of--
                                    ``(I) the State Rehabilitation 
                                Council, if the State has such a 
                                Council, consistent with the plan 
                                prepared under section 105(d)(1); and
                                    ``(II) the Statewide Independent 
                                Living Council, consistent with the 
                                plan prepared under section 705(e)(1);
                    ``(B) include a description of how the reserved 
                funds will be utilized; and
                    ``(C) provide that the State shall submit to the 
                Commissioner an annual report containing a description 
                of how the reserved funds will be utilized.
            ``(19) Choice.--The State plan shall include an assurance 
        that applicants and eligible individuals or, as appropriate, 
        the applicants' representatives or individuals' 
        representatives, will be provided information and support 
        services to assist the applicants and individuals in exercising 
        informed choice throughout the rehabilitation process, 
        consistent with the provisions of section 102(d).
            ``(20) Information and referral services.--
                    ``(A) In general.--The State plan shall include an 
                assurance that the designated State agency will 
                implement an information and referral system adequate 
                to ensure that individuals with disabilities will be 
                provided accurate vocational rehabilitation 
                information, using appropriate modes of communication, 
                to assist such individuals in preparing for, securing, 
                retaining, or regaining employment, and will be 
                appropriately referred to Federal and State programs 
                (other than the vocational rehabilitation program 
                carried out under this title), including other 
                components of the statewide workforce investment system 
                in the State.
                    ``(B) Services.--In providing activities through 
                the system established under subparagraph (A), the 
                State may include services consisting of the provision 
                of individualized counseling and guidance, 
                individualized vocational exploration, supervised job 
                placement referrals, and assistance in securing 
                reasonable accommodations for eligible individuals who 
                do not meet the order of selection criteria used by the 
                State, to the extent that such services are not 
                purchased by the designated State unit.
            ``(21) State independent consumer-controlled commission; 
        state rehabilitation council.--
                    ``(A) Commission or council.--The State plan shall 
                provide that either--
                            ``(i) the designated State agency is an 
                        independent commission that--
                                    ``(I) is responsible under State 
                                law for operating, or overseeing the 
                                operation of, the vocational 
                                rehabilitation program in the State;
                                    ``(II) is consumer-controlled by 
                                persons who--
                                            ``(aa) are individuals with 
                                        physical or mental impairments 
                                        that substantially limit major 
                                        life activities; and
                                            ``(bb) represent 
                                        individuals with a broad range 
                                        of disabilities, unless the 
                                        designated State unit under the 
                                        direction of the commission is 
                                        the State agency for 
                                        individuals who are blind;
                                    ``(III) includes family members, 
                                advocates, or other representatives, of 
                                individuals with mental impairments; 
                                and
                                    ``(IV) undertakes the functions set 
                                forth in section 105(c)(4); or
                            ``(ii) the State has established a State 
                        Rehabilitation Council that meets the criteria 
                        set forth in section 105 and the designated 
                        State unit--
                                    ``(I) in accordance with paragraph 
                                (15), jointly develops, agrees to, and 
                                reviews annually State goals and 
                                priorities, and jointly submits annual 
                                reports of progress with the Council;
                                    ``(II) regularly consults with the 
                                Council regarding the development, 
                                implementation, and revision of State 
                                policies and procedures of general 
                                applicability pertaining to the 
                                provision of vocational rehabilitation 
                                services;
                                    ``(III) includes in the State plan 
                                and in any revision to the State plan, 
                                a summary of input provided by the 
                                Council, including recommendations from 
                                the annual report of the Council 
                                described in section 105(c)(5), the 
                                review and analysis of consumer 
                                satisfaction described in section 
                                105(c)(4), and other reports prepared 
                                by the Council, and the response of the 
                                designated State unit to such input and 
                                recommendations, including explanations 
                                for rejecting any input or 
                                recommendation; and
                                    ``(IV) transmits to the Council--
                                            ``(aa) all plans, reports, 
                                        and other information required 
                                        under this title to be 
                                        submitted to the Secretary;
                                            ``(bb) all policies, and 
                                        information on all practices 
                                        and procedures, of general 
                                        applicability provided to or 
                                        used by rehabilitation 
                                        personnel in carrying out this 
                                        title; and
                                            ``(cc) copies of due 
                                        process hearing decisions 
                                        issued under this title, which 
                                        shall be transmitted in such a 
                                        manner as to ensure that the 
                                        identity of the participants in 
                                        the hearings is kept 
                                        confidential.
                    ``(B) More than 1 designated state agency.--In the 
                case of a State that, under section 101(a)(2), 
                designates a State agency to administer the part of the 
                State plan under which vocational rehabilitation 
                services are provided for individuals who are blind (or 
                to supervise the administration of such part by a local 
                agency) and designates a separate State agency to 
                administer the rest of the State plan, the State shall 
                either establish a State Rehabilitation Council for 
                each of the 2 agencies that does not meet the 
                requirements in subparagraph (A)(i), or establish 1 
                State Rehabilitation Council for both agencies if 
                neither agency meets the requirements of subparagraph 
                (A)(i).
            ``(22) Supported employment state plan supplement.--The 
        State plan shall include an assurance that the State has an 
        acceptable plan for carrying out part C of title VI, including 
        the use of funds under that part to supplement funds made 
        available under part B of this title to pay for the cost of 
        services leading to supported employment.
            ``(23) Electronic and information technology regulations.--
        The State plan shall include an assurance that the State, and 
        any recipient or subrecipient of funds made available to the 
        State under this title--
                    ``(A) will comply with the requirements of section 
                508, including the regulations established under that 
                section; and
                    ``(B) will designate an employee to coordinate 
                efforts to comply with section 508 and will adopt 
                grievance procedures that incorporate due process 
                standards and provide for the prompt and equitable 
                resolution of complaints concerning such requirements.
            ``(24) Annual updates.--The plan shall include an assurance 
        that the State will submit to the Commissioner reports 
        containing annual updates of the information required under 
        paragraph (7) (relating to a comprehensive system of personnel 
        development) and any other updates of the information required 
        under this section that are requested by the Commissioner, and 
        annual reports as provided in paragraphs (15) (relating to 
        assessments, estimates, goals and priorities, and reports of 
        progress) and (18) (relating to innovation and expansion), at 
        such time and in such manner as the Secretary may determine to 
        be appropriate.
    ``(b) Approval; Disapproval of the State Plan.--
            ``(1) Approval.--The Commissioner shall approve any plan 
        that the Commissioner finds fulfills the conditions specified 
        in this section, and shall disapprove any plan that does not 
        fulfill such conditions.
            ``(2) Disapproval.--Prior to disapproval of the State plan, 
        the Commissioner shall notify the State of the intention to 
        disapprove the plan and shall afford the State reasonable 
        notice and opportunity for a hearing.

``SEC. 102. ELIGIBILITY AND INDIVIDUALIZED REHABILITATION EMPLOYMENT 
              PLAN.

    ``(a) Eligibility.--
            ``(1) Criterion for eligibility.--An individual is eligible 
        for assistance under this title if the individual--
                    ``(A) is an individual with a disability under 
                section 7(20)(A); and
                    ``(B) requires vocational rehabilitation services 
                to prepare for, secure, retain, or regain employment.
            ``(2) Presumption of benefit.--
                    ``(A) Demonstration.--For purposes of this section, 
                an individual shall be presumed to be an individual 
                that can benefit in terms of an employment outcome from 
                vocational rehabilitation services under section 
                7(20)(A), unless the designated State unit involved can 
                demonstrate by clear and convincing evidence that such 
                individual is incapable of benefiting in terms of an 
                employment outcome from vocational rehabilitation 
                services due to the severity of the disability of the 
                individual.
                    ``(B) Methods.--In making the demonstration 
                required under subparagraph (A), the designated State 
                unit shall explore the individual's abilities, 
                capabilities, and capacity to perform in work 
                situations, through the use of trial work experiences, 
                as described in section 7(2)(D), with appropriate 
                supports provided through the designated State unit, 
                except under limited circumstances when an individual 
                can not take advantage of such experiences. Such 
                experiences shall be of sufficient variety and over a 
                sufficient period of time to determine the eligibility 
                of the individual or to determine the existence of 
                clear and convincing evidence that the individual is 
                incapable of benefiting in terms of an employment 
                outcome from vocational rehabilitation services due to 
                the severity of the disability of the individual.
            ``(3) Presumption of eligibility.--For purposes of this 
        section, an individual who has a disability or is blind as 
        determined pursuant to title II or title XVI of the Social 
        Security Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall 
        be--
                    ``(A) considered to be an individual with a 
                significant disability under section 7(21)(A); and
                    ``(B) presumed to be eligible for vocational 
                rehabilitation services under this title (provided that 
                the individual intends to achieve an employment outcome 
                consistent with the unique strengths, resources, 
                priorities, concerns, abilities, capabilities, 
                interests, and informed choice of the individual) 
                unless the designated State unit involved can 
                demonstrate by clear and convincing evidence that such 
                individual is incapable of benefiting in terms of an 
                employment outcome from vocational rehabilitation 
                services due to the severity of the disability of the 
                individual in accordance with paragraph (2).
            ``(4) Use of existing information.--
                    ``(A) In general.--To the maximum extent 
                appropriate and consistent with the requirements of 
                this part, for purposes of determining the eligibility 
                of an individual for vocational rehabilitation services 
                under this title and developing the individualized 
rehabilitation employment plan described in subsection (b) for the 
individual, the designated State unit shall use information that is 
existing and current (as of the date of the determination of 
eligibility or of the development of the individualized rehabilitation 
employment plan), including information available from other programs 
and providers, particularly information used by education officials and 
the Social Security Administration, information provided by the 
individual and the family of the individual, and information obtained 
under the assessment for determining eligibility and vocational 
rehabilitation needs.
                    ``(B) Determinations by officials of other 
                agencies.--Determinations made by officials of other 
                agencies, particularly education officials described in 
                section 101(a)(11)(D), regarding whether an individual 
                satisfies 1 or more factors relating to whether an 
                individual is an individual with a disability under 
                section 7(20)(A) or an individual with a significant 
                disability under section 7(21)(A) shall be used, to the 
                extent appropriate and consistent with the requirements 
                of this part, in assisting the designated State unit in 
                making such determinations.
                    ``(C) Basis.--The determination of eligibility for 
                vocational rehabilitation services shall be based on--
                            ``(i) the review of existing data described 
                        in section 7(2)(A)(i); and
                            ``(ii) to the extent that such data is 
                        unavailable or insufficient for determining 
                        eligibility, the provision of assessment 
                        activities described in section 7(2)(A)(ii).
            ``(5) Determination of ineligibility.--If an individual who 
        applies for services under this title is determined, based on 
        the review of existing data and, to the extent necessary, the 
        assessment activities described in section 7(2)(A)(ii), not to 
        be eligible for the services, or if an eligible individual 
        receiving services under an individualized rehabilitation 
        employment plan is determined to be no longer eligible for the 
        services--
                    ``(A) the ineligibility determination involved 
                shall be made only after providing an opportunity for 
                full consultation with the individual or, as 
                appropriate, the individual's representative;
                    ``(B) the individual or, as appropriate, the 
                individual's representative, shall be informed in 
                writing (supplemented as necessary by other appropriate 
                modes of communication consistent with the informed 
                choice of the individual) of the ineligibility 
                determination, including--
                            ``(i) the reasons for the determination; 
                        and
                            ``(ii) a description of the means by which 
                        the individual may express, and seek a remedy 
                        for, any dissatisfaction with the 
                        determination, including the procedures for 
                        review by an impartial hearing officer under 
                        subsection (c);
                    ``(C) the individual shall be provided with a 
                description of services available from the client 
                assistance program under section 112 and information on 
                how to contact that program; and
                    ``(D) any ineligibility determination that is based 
                on a finding that the individual is incapable of 
                benefiting in terms of an employment outcome shall be 
                reviewed--
                            ``(i) within 12 months; and
                            ``(ii) annually thereafter, if such a 
                        review is requested by the individual or, if 
                        appropriate, by the individual's 
                        representative.
            ``(6) Timeframe for making an eligibility determination.--
        The designated State unit shall determine whether an individual 
        is eligible for vocational rehabilitation services under this 
        title within a reasonable period of time, not to exceed 60 
        days, after the individual has submitted an application for the 
        services unless--
                    ``(A) exceptional and unforeseen circumstances 
                beyond the control of the designated State unit 
                preclude making an eligibility determination within 60 
                days and the designated State unit and the individual 
                agree to a specific extension of time; or
                    ``(B) the designated State unit is exploring an 
                individual's abilities, capabilities, and capacity to 
                perform in work situations under paragraph (2)(B).
    ``(b) Development of an Individualized Rehabilitation Employment 
Plan.--
            ``(1) Options for developing an individualized 
        rehabilitation employment plan.--If an individual is determined 
        to be eligible for vocational rehabilitation services as 
        described in subsection (a), the designated State unit shall 
        complete the assessment for determining eligibility and 
        vocational rehabilitation needs, as appropriate, and shall 
        provide the eligible individual or the individual's 
        representative, in writing and in an appropriate mode of 
        communication, with information on the individual's options for 
        developing an individualized rehabilitation employment plan, 
        including--
                    ``(A) information on the availability of 
                assistance, to the extent determined to be appropriate 
                by the eligible individual, from a qualified vocational 
                rehabilitation counselor in developing all or part of 
                the individualized rehabilitation employment plan for 
                the individual, and the availability of technical 
                assistance in developing all or part of the 
                individualized rehabilitation employment plan for the 
                individual;
                    ``(B) a description of the full range of components 
                that shall be included in an individualized 
                rehabilitation employment plan;
                    ``(C) as appropriate--
                            ``(i) an explanation of agency guidelines 
                        and criteria associated with financial 
                        commitments concerning an individualized 
                        rehabilitation employment plan;
                            ``(ii) additional information the eligible 
                        individual requests or the designated State 
                        unit determines to be necessary; and
                            ``(iii) information on the availability of 
                        assistance in completing designated State 
                        agency forms required in developing an 
                        individualized rehabilitation employment plan; 
                        and
                    ``(D)(i) a description of the rights and remedies 
                available to such an individual including, if 
                appropriate, recourse to the processes set forth in 
                subsection (c); and
                    ``(ii) a description of the availability of a 
                client assistance program established pursuant to 
                section 112 and information about how to contact the 
                client assistance program.
            ``(2) Mandatory procedures.--
                    ``(A) Written document.--An individualized 
                rehabilitation employment plan shall be a written 
                document prepared on forms provided by the designated 
                State unit.
                    ``(B) Informed choice.--An individualized 
                rehabilitation employment plan shall be developed and 
                implemented in a manner that affords eligible 
                individuals the opportunity to exercise informed choice 
                in selecting an employment outcome, the specific 
                vocational rehabilitation services to be provided under 
                the plan, the entity that will provide the vocational 
                rehabilitation services, and the methods used to 
                procure the services, consistent with subsection (d).
                    ``(C) Signatories.--An individualized 
                rehabilitation employment plan shall be--
                            ``(i) agreed to, and signed by, such 
                        eligible individual or, as appropriate, the 
                        individual's representative; and
                            ``(ii) approved and signed by a qualified 
                        vocational rehabilitation counselor employed by 
                        the designated State unit.
                    ``(D) Copy.--A copy of the individualized 
                rehabilitation employment plan for an eligible 
                individual shall be provided to the individual or, as 
                appropriate, to the individual's representative, in 
                writing and, if appropriate, in the native language or 
                mode of communication of the individual or, as 
                appropriate, of the individual's representative.
                    ``(E) Review and amendment.--The individualized 
                rehabilitation employment plan shall be--
                            ``(i) reviewed at least annually by--
                                    ``(I) a qualified vocational 
                                rehabilitation counselor; and
                                    ``(II) the eligible individual or, 
                                as appropriate, the individual's 
                                representative; and
                            ``(ii) amended, as necessary, by the 
                        individual or, as appropriate, the individual's 
                        representative, in collaboration with a 
                        representative of the designated State agency 
                        or a qualified vocational rehabilitation 
                        counselor, if there are substantive changes in 
                        the employment outcome, the vocational 
                        rehabilitation services to be provided, or the 
                        service providers of the services (which 
                        amendments shall not take effect until agreed 
                        to and signed by the eligible individual or, as 
                        appropriate, the individual's representative, 
                        and by a qualified vocational rehabilitation 
                        counselor).
            ``(3) Mandatory components of an individualized 
        rehabilitation employment plan.-- Regardless of the approach 
selected by an eligible individual to develop an individualized 
rehabilitation employment plan, an individualized rehabilitation 
employment plan shall, at a minimum, contain mandatory components 
consisting of--
                    ``(A) a description of the specific employment 
                outcome that is chosen by the eligible individual, 
                consistent with the unique strengths, resources, 
                priorities, concerns, abilities, capabilities, 
                interests, and informed choice of the eligible 
                individual, and, to the maximum extent appropriate, 
                results in employment in an integrated setting;
                    ``(B)(i) a description of the specific vocational 
                rehabilitation services that are--
                            ``(I) needed to achieve the employment 
                        outcome, including, as appropriate, the 
                        provision of assistive technology devices and 
                        assistive technology services, and personal 
                        assistance services, including training in the 
                        management of such services; and
                            ``(II) provided in the most integrated 
                        setting that is appropriate for the service 
                        involved and is consistent with the informed 
                        choice of the eligible individual; and
                    ``(ii) timelines for the achievement of the 
                employment outcome and for the initiation of the 
                services;
                    ``(C) a description of the entity chosen by the 
                eligible individual or, as appropriate, the 
                individual's representative, that will provide the 
                vocational rehabilitation services, and the methods 
                used to procure such services;
                    ``(D) a description of criteria to evaluate 
                progress toward achievement of the employment outcome;
                    ``(E) the terms and conditions of the 
                individualized rehabilitation employment plan, 
                including, as appropriate, information describing--
                            ``(i) the responsibilities of the 
                        designated State unit;
                            ``(ii) the responsibilities of the eligible 
                        individual, including--
                                    ``(I) the responsibilities the 
                                eligible individual will assume in 
                                relation to the employment outcome of 
                                the individual;
                                    ``(II) if applicable, the 
                                participation of the eligible 
                                individual in paying for the costs of 
                                the plan; and
                                    ``(III) the responsibility of the 
                                eligible individual with regard to 
                                applying for and securing comparable 
                                benefits as described in section 
                                101(a)(8);
                            ``(iii) the responsibilities of other 
                        entities as the result of arrangements made 
                        pursuant to comparable services or benefits 
                        requirements as described in section 101(a)(8);
                    ``(F) for an eligible individual with the most 
                significant disabilities for whom an employment outcome 
                in a supported employment setting has been determined 
                to be appropriate, information identifying--
                            ``(i) the extended services needed by the 
                        eligible individual; and
                            ``(ii) the source of extended services or, 
                        to the extent that the source of the extended 
                        services cannot be identified at the time of 
                        the development of the individualized 
                        rehabilitation employment plan, a description 
                        of the basis for concluding that there is a 
                        reasonable expectation that such source will 
                        become available; and
                    ``(G) as determined to be necessary, a statement of 
                projected need for post-employment services.
    ``(c) Procedures.--
            ``(1) In general.--Each State shall establish procedures 
        for mediation of, and procedures for review through an 
        impartial due process hearing of, determinations made by 
        personnel of the designated State unit that affect the 
        provision of vocational rehabilitation services to applicants 
        or eligible individuals.
            ``(2) Notification.--
                    ``(A) Rights and assistance.--The procedures shall 
                provide that an applicant or an eligible individual or, 
                as appropriate, the applicant's representative or 
                individual's representative shall be notified of--
                            ``(i) the right to obtain review of 
                        determinations described in paragraph (1) in an 
                        impartial due process hearing under paragraph 
                        (5);
                            ``(ii) the right to pursue mediation with 
                        respect to the determinations under paragraph 
                        (4); and
                            ``(iii) the availability of assistance from 
                        the client assistance program under section 
                        112.
                    ``(B) Timing.--Such notification shall be provided 
                in writing--
                            ``(i) at the time an individual applies for 
                        vocational rehabilitation services provided 
                        under this title;
                            ``(ii) at the time the individualized 
                        rehabilitation employment plan for the 
                        individual is developed; and
                            ``(iii) upon reduction, suspension, or 
                        cessation of vocational rehabilitation services 
                        for the individual.
            ``(3) Evidence and representation.--The procedures required 
        under this subsection shall, at a minimum--
                    ``(A) provide an opportunity for an applicant or an 
                eligible individual, or, as appropriate, the 
                applicant's representative or individual's 
                representative, to submit at the mediation session or 
                hearing evidence and information to support the 
                position of the applicant or eligible individual; and
                    ``(B) include provisions to allow an applicant or 
                an eligible individual to be represented in the 
                mediation session or hearing by a person selected by 
                the applicant or eligible individual.
            ``(4) Mediation.--
                    ``(A) Procedures.--Each State shall ensure that 
                procedures are established and implemented under this 
                subsection to allow parties described in paragraph (1) 
                to disputes involving any determination described in 
                paragraph (1) to resolve such disputes through a 
                mediation process that, at a minimum, shall be 
                available whenever a hearing is requested under this 
                subsection.
                    ``(B) Requirements.--Such procedures shall ensure 
                that the mediation process--
                            ``(i) is voluntary on the part of the 
                        parties;
                            ``(ii) is not used to deny or delay the 
                        right of an individual to a hearing under this 
                        subsection, or to deny any other right afforded 
                        under this title; and
                            ``(iii) is conducted by a qualified and 
                        impartial mediator who is trained in effective 
                        mediation techniques.
                    ``(C) List of mediators.--The State shall maintain 
                a list of individuals who are qualified mediators and 
                knowledgeable in laws (including regulations) relating 
                to the provision of vocational rehabilitation services 
                under this title, from which the mediators described in 
                subparagraph (B) shall be selected.
                    ``(D) Cost.--The State shall bear the cost of the 
                mediation process.
                    ``(E) Scheduling.--Each session in the mediation 
                process shall be scheduled in a timely manner and shall 
                be held in a location that is convenient to the parties 
                to the dispute.
                    ``(F) Agreement.--An agreement reached by the 
                parties to the dispute in the mediation process shall 
                be set forth in a written mediation agreement.
                    ``(G) Confidentiality.--Discussions that occur 
                during the mediation process shall be confidential and 
                may not be used as evidence in any subsequent due 
                process hearing or civil proceeding. The parties to the 
                mediation process may be required to sign a 
                confidentiality pledge prior to the commencement of 
                such process.
                    ``(H) Construction.--Nothing in this subsection 
                shall be construed to preclude the parties to such a 
                dispute from informally resolving the dispute prior to 
                proceedings under this paragraph or paragraph (5), if 
                the informal process used is not used to deny or delay 
                the right of the applicant or eligible individual to a 
                hearing under this subsection or to deny any other 
                right afforded under this title.
            ``(5) Hearings.--
                    ``(A) Officer.--A due process hearing described in 
                paragraph (2) shall be conducted by an impartial 
                hearing officer who shall issue a decision based on the 
                provisions of the approved State plan, this Act 
                (including regulations implementing this Act), and 
                State regulations and policies that are consistent with 
                the Federal requirements specified in this title. The 
                officer shall provide the decision in writing to the 
                applicant or eligible individual, or, as appropriate, 
                the applicant's representative or individual's 
                representative, and to the designated State unit.
                    ``(B) List.--The designated State unit shall 
                maintain a list of qualified impartial hearing officers 
                who are knowledgeable in laws (including regulations) 
                relating to the provision of vocational rehabilitation 
                services under this title from which the officer 
                described in subparagraph (A) shall be selected. For 
                the purposes of maintaining such list, impartial 
                hearing officers shall be identified jointly by--
                            ``(i) the designated State unit; and
                            ``(ii) members of the Council or 
                        commission, as appropriate, described in 
                        section 101(a)(21).
                    ``(C) Selection.--Such an impartial hearing officer 
                shall be selected to hear a particular case relating to 
                a determination--
                            ``(i) on a random basis; or
                            ``(ii) by agreement between--
                                    ``(I) the Director of the 
                                designated State unit and the 
                                individual with a disability; or
                                    ``(II) in appropriate cases, the 
                                Director and the individual's 
                                representative.
                    ``(D) Procedures for seeking review.--A State may 
                establish procedures to enable a party involved in a 
                hearing under this paragraph to seek an impartial 
                review of the decision of the hearing officer under 
                subparagraph (A) by--
                            ``(i) the chief official of the designated 
                        State agency if the State has established both 
                        a designated State agency and a designated 
                        State unit under section 101(a)(2); or
                            ``(ii) an official from the office of the 
                        Governor or the chief official of another State 
                        office or agency that has supervisory authority 
                        over the designated State agency.
                    ``(E) Review request.--If the State establishes 
                impartial review procedures under subparagraph (D), 
                either party may request the review of the decision of 
                the hearing officer within 20 days after the decision.
                    ``(F) Reviewing official.--The reviewing official 
                described in subparagraph (D) shall--
                            ``(i) in conducting the review, provide an 
                        opportunity for the submission of additional 
                        evidence and information relevant to a final 
                        decision concerning the matter under review;
                            ``(ii) not overturn or modify the decision 
                        of the hearing officer, or part of the 
                        decision, that supports the position of the 
                        applicant or eligible individual unless the 
                        reviewing official concludes, based on clear 
                        and convincing evidence, that the decision of 
                        the impartial hearing officer is clearly 
                        erroneous on the basis of being contrary to the 
                        approved State plan, this Act (including 
                        regulations implementing this Act) or any State 
                        regulation or policy that is consistent with 
                        the Federal requirements specified in this 
                        title; and
                            ``(iii) make a final decision with respect 
                        to the matter in a timely manner and provide 
                        such decision in writing to the applicant or 
                        eligible individual, or, as appropriate, the 
                        applicant's representative or individual's 
                        representative, and to the designated State 
                        unit, including a full report of the findings 
                        and the grounds for such decision.
                    ``(G) Finality of hearing decision.--A decision 
                made after a hearing under subparagraph (A) shall be 
                final, except that a party may request an impartial 
                review if the State has established procedures for such 
                review under subparagraph (D) and a party involved in a 
                hearing may bring a civil action under subparagraph 
                (J).
                    ``(H) Finality of review.--A decision made under 
                subparagraph (F) shall be final unless such a party 
                brings a civil action under subparagraph (J).
                    ``(I) Implementation.--If a party brings a civil 
                action under subparagraph (J) to challenge a final 
                decision of a hearing officer under subparagraph (A) or 
                to challenge a final decision of a State reviewing 
                official under subparagraph (F), the final decision 
                involved shall be implemented pending review by the 
                court.
                    ``(J) Civil action.--
                            ``(i) In general.--Any party aggrieved by a 
                        final decision described in subparagraph (I), 
                        may bring a civil action for review of such 
                        decision. The action may be brought in any 
                        State court of competent jurisdiction or in a 
                        district court of the United States of 
                        competent jurisdiction without regard to the 
                        amount in controversy.
                            ``(ii) Procedure.--In any action brought 
                        under this subparagraph, the court--
                                    ``(I) shall receive the records 
                                relating to the hearing under 
                                subparagraph (A) and the records 
                                relating to the State review under 
                                subparagraphs (D) through (F), if 
                                applicable;
                                    ``(II) shall hear additional 
                                evidence at the request of a party to 
                                the action; and
                                    ``(III) basing the decision of the 
                                court on the preponderance of the 
                                evidence, shall grant such relief as 
                                the court determines to be appropriate.
            ``(6) Hearing board.--
                    ``(A) In general.--A fair hearing board, 
                established by a State before January 1, 1985, and 
                authorized under State law to review determinations or 
                decisions under this Act, is authorized to carry out 
                the responsibilities of the impartial hearing officer 
                under this subsection.
                    ``(B) Application.--The provisions of paragraphs 
                (1), (2), and (3) that relate to due process hearings 
                do not apply, and paragraph (5) (other than 
                subparagraph (J)) does not apply, to any State to which 
                subparagraph (A) applies.
            ``(7) Impact on provision of services.--Unless the 
        individual with a disability so requests, or, in an appropriate 
        case, the individual's representative, so requests, pending a 
        decision by a mediator, hearing officer, or reviewing officer 
        under this subsection, the designated State unit shall not 
        institute a suspension, reduction, or termination of services 
        being provided for the individual, including evaluation and 
        assessment services and plan development, unless such services 
        have been obtained through misrepresentation, fraud, collusion, 
        or criminal conduct on the part of the individual, or the 
        individual's representative.
            ``(8) Information collection and report.--
                    ``(A) In general.--The Director of the designated 
                State unit shall collect information described in 
                subparagraph (B) and prepare and submit to the 
                Commissioner a report containing such information. The 
                Commissioner shall prepare a summary of the information 
                furnished under this paragraph and include the summary 
                in the annual report submitted under section 13. The 
                Commissioner shall also collect copies of the final 
                decisions of impartial hearing officers conducting 
                hearings under this subsection and State officials 
                conducting reviews under this subsection.
                    ``(B) Information.--The information required to be 
                collected under this subsection includes--
                            ``(i) a copy of the standards used by State 
                        reviewing officials for reviewing decisions 
                        made by impartial hearing officers under this 
                        subsection;
                            ``(ii) information on the number of 
                        hearings and reviews sought from the impartial 
                        hearing officers and the State reviewing 
                        officials, including the type of complaints and 
                        the issues involved;
                            ``(iii) information on the number of 
                        hearing decisions made under this subsection 
                        that were not reviewed by the State reviewing 
                        officials; and
                            ``(iv) information on the number of the 
                        hearing decisions that were reviewed by the 
                        State reviewing officials, and, based on such 
                        reviews, the number of hearing decisions that 
                        were--
                                    ``(I) sustained in favor of an 
                                applicant or eligible individual;
                                    ``(II) sustained in favor of the 
                                designated State unit;
                                    ``(III) reversed in whole or in 
                                part in favor of the applicant or 
                                eligible individual; and
                                    ``(IV) reversed in whole or in part 
                                in favor of the designated State unit.
                    ``(C) Confidentiality.--The confidentiality of 
                records of applicants and eligible individuals 
                maintained by the designated State unit shall not 
                preclude the access of the Commissioner to those 
                records for the purposes described in subparagraph (A).
    ``(d) Policies and Procedures.--Each designated State agency, in 
consultation with the State Rehabilitation Council, if the State has 
such a council, shall, consistent with section 100(a)(3)(C), develop 
and implement written policies and procedures that enable each 
individual who is an applicant for or eligible to receive vocational 
rehabilitation services under this title to exercise informed choice 
throughout the vocational rehabilitation process carried out under this 
title, including policies and procedures that require the designated 
State agency--
            ``(1) to inform each such applicant and eligible individual 
        (including students with disabilities described in section 
        101(a)(11)(D)(ii)(II) who are making the transition from 
        programs under the responsibility of an educational agency to 
        programs under the responsibility of the designated State 
        unit), 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 under this title;
            ``(3) to develop and implement flexible procurement 
        policies and methods that facilitate the provision of services, 
        and that afford eligible individuals meaningful choices among 
        the methods used to procure services, under this title;
            ``(4) to provide or assist eligible individuals in 
        acquiring information that enables those individuals to 
        exercise informed choice under this title in the selection of--
                    ``(A) the employment outcome;
                    ``(B) the specific vocational rehabilitation 
                services needed to achieve the employment outcome;
                    ``(C) the entity that will provide the services;
                    ``(D) the employment setting and the settings in 
                which the services will be provided; and
                    ``(E) the methods available for procuring the 
                services; and
            ``(5) to ensure that the availability and scope of informed 
        choice provided under this section is consistent with the 
        obligations of the designated State agency under this title.

``SEC. 103. VOCATIONAL REHABILITATION SERVICES.

    ``(a) Vocational Rehabilitation Services for Individuals.--
Vocational rehabilitation services provided under this title are any 
services described in an individualized rehabilitation employment plan 
necessary to assist 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, including--
            ``(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 consistent with the provisions of section 102(d);
            ``(3) referral and other services to secure needed services 
        from other agencies through agreements developed under section 
        101(b)(11), if such services are not available under this 
        title;
            ``(4) job-related services, including job search and 
        placement assistance, job retention services, followup 
        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, except that no 
        training services provided at an institution of higher 
        education shall be paid for with funds under this title unless 
        maximum efforts have been made by the designated State unit and 
        the individual to secure grant assistance, in whole or in part, 
        from other sources to pay for such training;
            ``(6) to the extent that financial support is not readily 
        available from a source (such as through health insurance of 
        the individual or through comparable services and benefits 
        consistent with section 101(a)(8)(A)), other than the 
        designated State unit, diagnosis and treatment of physical and 
        mental impairments, including--
                    ``(A) corrective surgery or therapeutic treatment 
                necessary to correct or substantially modify a physical 
                or mental condition that constitutes a substantial 
                impediment to employment, but is of such a nature that 
                such correction or modification may reasonably be 
                expected to eliminate or reduce such impediment to 
                employment within a reasonable length of time;
                    ``(B) necessary hospitalization in connection with 
                surgery or treatment;
                    ``(C) prosthetic and orthotic devices;
                    ``(D) eyeglasses and visual services as prescribed 
                by qualified personnel who meet State licensure laws 
                and who are selected by the individual;
                    ``(E) special services (including transplantation 
                and dialysis), artificial kidneys, and supplies 
                necessary for the treatment of individuals with end-
                stage renal disease; and
                    ``(F) diagnosis and treatment for mental and 
                emotional disorders by qualified personnel who meet 
                State licensure laws;
            ``(7) maintenance for additional costs incurred while 
        participating in an assessment for determining eligibility and 
        vocational rehabilitation needs or while receiving services 
        under an individualized rehabilitation employment plan;
            ``(8) transportation, including adequate training in the 
        use of public transportation vehicles and systems, that is 
        provided in connection with the provision of any other service 
        described in this section and needed by the individual to 
        achieve an employment outcome;
            ``(9) on-the-job or other related personal assistance 
        services provided while an individual is receiving other 
        services described in this section;
            ``(10) interpreter services provided by qualified personnel 
        for individuals who are deaf or hard of hearing, and reader 
        services for individuals who are determined to be blind, after 
        an examination by qualified personnel who meet State licensure 
        laws;
            ``(11) rehabilitation teaching services, and orientation 
        and mobility services, for individuals who are blind;
            ``(12) occupational licenses, tools, equipment, and initial 
        stocks and supplies;
            ``(13) technical assistance and other consultation services 
        to conduct market analyses, develop business plans, and 
        otherwise provide resources, to the extent such resources are 
        authorized to be provided under the statewide workforce 
        investment system, to eligible individuals who are pursuing 
        self-employment 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 students with disabilities 
        described in section 101(a)(11)(D)(ii)(II), that facilitate the 
        achievement of the employment outcome identified in the 
        individualized rehabilitation employment plan;
            ``(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; and
            ``(18) specific post-employment services necessary to 
        assist an individual with a disability to, retain, regain, or 
        advance in employment.
    ``(b) Vocational Rehabilitation Services for Groups of 
Individuals.--Vocational rehabilitation services 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 the operation of 
        which can be improved by management services and supervision 
        provided by the designated State agency, the provision of such 
        services and supervision, along or together with the 
        acquisition by the designated State agency of vending 
        facilities or other equipment and initial stocks and supplies.
            ``(2) The establishment, development, or improvement of 
        community rehabilitation programs, that promise to contribute 
        substantially to the rehabilitation of a group of individuals 
        but that are not related directly to the individualized 
        rehabilitation employment plan of any 1 individual with a 
        disability. Such programs shall be used to provide services 
        that promote integration and competitive employment.
            ``(3) The use of telecommunications systems (including 
        telephone, television, satellite, radio, and other similar 
        systems) that have the potential for substantially improving 
        delivery methods of activities described in this section and 
        developing appropriate programming to meet the particular needs 
        of individuals with disabilities.
            ``(4)(A) 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.
            ``(B) Captioned television, films, or video cassettes for 
        individuals who are deaf or hard of hearing.
            ``(C) Tactile materials for individuals who are deaf-blind.
            ``(D) Other special services that provide information 
        through tactile, vibratory, auditory, and visual media.
            ``(5) Technical assistance and support services to 
        businesses that are not subject to title I of the Americans 
        with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and 
        that are seeking to employ individuals with disabilities.
            ``(6) Consultative and technical assistance services to 
        assist educational agencies in planning for the transition of 
        students with disabilities described in section 
        101(a)(11)(D)(i) from school to post-school activities, 
        including employment.

``SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM.

    ``For the purpose of determining the amount of payments to States 
for carrying out part B of this title (or to an Indian tribe under part 
C), the non-Federal share, subject to such limitations and conditions 
as may be prescribed in regulations by the Commissioner, shall include 
contributions of funds made by any private agency, organization, or 
individual to a State or local agency to assist in meeting the costs of 
establishment of a community rehabilitation program, which would be 
regarded as State or local funds except for the condition, imposed by 
the contributor, limiting use of such funds to establishment of such a 
program.''.

``SEC. 105. STATE REHABILITATION COUNCIL.

    ``(a) Establishment.--
            ``(1) In general.--Except as provided in section 
        101(a)(21)(A)(i), to be eligible to receive financial 
        assistance under this title a State shall establish a State 
        Rehabilitation Council (referred to in this section as the 
        `Council') in accordance with this section.
            ``(2) Separate agency for individuals who are blind.--A 
        State that designates a State agency to administer the part of 
        the State plan under which vocational rehabilitation services 
        are provided for individuals who are blind under section 
        101(a)(2)(A)(i) may establish a separate Council in accordance 
        with this section to perform the duties of such a Council with 
        respect to such State agency.
    ``(b) Composition and Appointment.--
            ``(1) Composition.--
                    ``(A) In general.--Except in the case of a separate 
                Council established under subsection (a)(2), the 
                Council shall be composed of--
                            ``(i) at least one representative of the 
                        Statewide Independent Living Council 
                        established under section 705, which 
                        representative may be the chairperson or other 
                        designee of the Council;
                            ``(ii) at least one representative of a 
                        parent training and information center 
                        established pursuant to section 682(a) of the 
                        Individuals with Disabilities Education Act (as 
                        added by section 101 of the Individuals with 
                        Disabilities Education Act Amendments of 1997; 
                        Public Law 105-17);
                            ``(iii) at least one representative of the 
                        client assistance program established under 
                        section 112;
                            ``(iv) at least one vocational 
                        rehabilitation counselor, with knowledge of and 
                        experience with vocational rehabilitation 
                        programs, who shall serve as an ex officio, 
                        nonvoting member of the Council if the 
                        counselor is an employee of the designated 
                        State agency;
                            ``(v) at least one representative of 
                        community rehabilitation program service 
                        providers;
                            ``(vi) four representatives of business, 
                        industry, and labor;
                            ``(vii) representatives of disability 
                        advocacy groups representing a cross section 
                        of--
                                    ``(I) individuals with physical, 
                                cognitive, sensory, and mental 
                                disabilities; and
                                    ``(II) individuals' representatives 
                                of individuals with disabilities who 
                                have difficulty in representing 
                                themselves or are unable due to their 
                                disabilities to represent themselves;
                            ``(viii) current or former applicants for, 
                        or recipients of, vocational rehabilitation 
                        services;
                            ``(ix) in a State in which one or more 
                        projects are carried out under section 121, at 
                        least one representative of the directors of 
                        the projects;
                            ``(x) at least one representative of the 
                        State educational agency responsible for the 
                        public education of students with disabilities 
                        who are eligible to receive services under this 
                        title and part B of the Individuals with 
                        Disabilities Education Act; and
                            ``(xi) at least one representative of the 
                        statewide workforce investment partnership.
                    ``(B) Separate council.--In the case of a separate 
                Council established under subsection (a)(2), the 
                Council shall be composed of--
                            ``(i) at least one representative described 
                        in subparagraph (A)(i);
                            ``(ii) at least one representative 
                        described in subparagraph (A)(ii);
                            ``(iii) at least one representative 
                        described in subparagraph (A)(iii);
                            ``(iv) at least one vocational 
                        rehabilitation counselor described in 
                        subparagraph (A)(iv), who shall serve as 
                        described in such subparagraph;
                            ``(v) at least one representative described 
                        in subparagraph (A)(v);
                            ``(vi) four representatives described in 
                        subparagraph (A)(vi);
                            ``(vii) at least one representative of a 
                        disability advocacy group representing 
                        individuals who are blind;
                            ``(viii) at least one individual's 
                        representative, of an individual who--
                                    ``(I) is an individual who is blind 
                                and has multiple disabilities; and
                                    ``(II) has difficulty in 
                                representing himself or herself or is 
                                unable due to disabilities to represent 
                                himself or herself;
                            ``(ix) applicants or recipients described 
                        in subparagraph (A)(viii);
                            ``(x) in a State described in subparagraph 
                        (A)(ix), at least one representative described 
                        in such subparagraph;
                            ``(xi) at least one representative 
                        described in subparagraph (A)(x); and
                            ``(xii) at least one representative 
                        described in subparagraph (A)(xi).
                    ``(C) Exception.--In the case of a separate Council 
                established under subsection (a)(2), any Council that 
                is required by State law, as in effect on the date of 
                enactment of the Rehabilitation Act Amendments of 1992, 
                to have fewer than 15 members shall be deemed to be in 
                compliance with subparagraph (B) if the Council--
                            ``(i) meets the requirements of 
                        subparagraph (B), other than the requirements 
                        of clauses (vi) and (ix) of such subparagraph; 
                        and
                            ``(ii) includes at least--
                                    ``(I) one representative described 
                                in subparagraph (B)(vi); and
                                    ``(II) one applicant or recipient 
                                described in subparagraph (B)(ix).
            ``(2) Ex officio member.--The Director of the designated 
        State unit shall be an ex officio, nonvoting member of the 
        Council.
            ``(3) Appointment.--Members of the Council shall be 
        appointed by the Governor. In the case of a State that, under 
        State law, vests appointment authority in an entity in lieu of, 
        or in conjunction with, the Governor, such as one or more 
        houses of the State legislature, or an independent board that 
        has general appointment authority, that entity shall make the 
        appointments. The appointing authority shall select members 
        after soliciting recommendations from representatives of 
        organizations representing a broad range of individuals with 
        disabilities and organizations interested in individuals with 
        disabilities. In selecting members, the appointing authority 
        shall consider, to the greatest extent practicable, the extent 
        to which minority populations are represented on the Council.
            ``(4) Qualifications.--A majority of Council members shall 
        be persons who are--
                    ``(A) individuals with disabilities described in 
                section 7(20)(A); and
                    ``(B) not employed by the designated State unit.
            ``(5) Chairperson.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the Council shall select a 
                chairperson from among the membership of the Council.
                    ``(B) Designation by governor.--In States in which 
                the Governor does not have veto power pursuant to State 
                law, the Governor shall designate a member of the 
                Council to serve as the chairperson of the Council or 
                shall require the Council to so designate such a 
                member.
            ``(6) Terms of appointment.--
                    ``(A) Length of term.--Each member of the Council 
                shall serve for a term of not more than 3 years, except 
                that--
                            ``(i) a member appointed to fill a vacancy 
                        occurring prior to the expiration of the term 
for which a predecessor was appointed, shall be appointed for the 
remainder of such term; and
                            ``(ii) the terms of service of the members 
                        initially appointed shall be (as specified by 
                        the appointing authority) for such fewer number 
                        of years as will provide for the expiration of 
                        terms on a staggered basis.
                    ``(B) Number of terms.--No member of the Council, 
                other than a representative described in clause (iii) 
                or (ix) of paragraph (1)(A), or clause (iii) or (x) of 
                paragraph (1)(B), may serve more than two consecutive 
                full terms.
            ``(7) Vacancies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any vacancy occurring in the 
                membership of the Council shall be filled in the same 
                manner as the original appointment. The vacancy shall 
                not affect the power of the remaining members to 
                execute the duties of the Council.
                    ``(B) Delegation.--The Governor (including an 
                entity described in paragraph (3)) may delegate the 
                authority to fill such a vacancy to the remaining 
                members of the Council after making the original 
                appointment.
    ``(c) Functions of Council.--The Council shall, after consulting 
with the statewide workforce investment partnership--
            ``(1) review, analyze, and advise the designated State unit 
        regarding the performance of the responsibilities of the unit 
        under this title, particularly responsibilities relating to--
                    ``(A) eligibility (including order of selection);
                    ``(B) the extent, scope, and effectiveness of 
                services provided; and
                    ``(C) functions performed by State agencies that 
                affect or that potentially affect the ability of 
                individuals with disabilities in achieving employment 
                outcomes under this title;
            ``(2) in partnership with the designated State unit--
                    ``(A) develop, agree to, and review State goals and 
                priorities in accordance with section 101(a)(15)(C); 
                and
                    ``(B) evaluate the effectiveness of the vocational 
                rehabilitation program and submit reports of progress 
                to the Commissioner in accordance with section 
                101(a)(15)(E);
            ``(3) advise the designated State agency and the designated 
        State unit regarding activities authorized to be carried out 
        under this title, and assist in the preparation of the State 
        plan and amendments to the plan, applications, reports, needs 
        assessments, and evaluations required by this title;
            ``(4) to the extent feasible, conduct a review and analysis 
        of the effectiveness of, and consumer satisfaction with--
                    ``(A) the functions performed by the designated 
                State agency;
                    ``(B) vocational rehabilitation services provided 
                by State agencies and other public and private entities 
                responsible for providing vocational rehabilitation 
                services to individuals with disabilities under this 
                Act; and
                    ``(C) employment outcomes achieved by eligible 
                individuals receiving services under this title, 
                including the availability of health and other 
                employment benefits in connection with such employment 
                outcomes;
            ``(5) prepare and submit an annual report to the Governor 
        or appropriate State entity and the Commissioner on the status 
        of vocational rehabilitation programs operated within the 
        State, and make the report available to the public;
            ``(6) to avoid duplication of efforts and enhance the 
        number of individuals served, coordinate activities with the 
        activities of other councils within the State, including the 
        Statewide Independent Living Council established under section 
        705, the advisory panel established under section 612(a)(21) of 
        the Individual with Disabilities Education Act (as amended by 
        section 101 of the Individuals with Disabilities Education Act 
        Amendments of 1997; Public Law 105-17), the State Developmental 
        Disabilities Council described in section 124 of the 
        Developmental Disabilities Assistance and Bill of Rights Act 
        (42 U.S.C. 6024), the State mental health planning council 
        established under section 1914(a) of the Public Health Service 
        Act (42 U.S.C. 300x-4(a)), and the statewide workforce 
        investment partnership;
            ``(7) provide for coordination and the establishment of 
        working relationships between the designated State agency and 
        the Statewide Independent Living Council and centers for 
        independent living within the State; and
            ``(8) perform such other functions, consistent with the 
        purpose of this title, as the State Rehabilitation Council 
        determines to be appropriate, that are comparable to the other 
        functions performed by the Council.
    ``(d) Resources.--
            ``(1) Plan.--The Council shall prepare, in conjunction with 
        the designated State unit, a plan for the provision of such 
        resources, including such staff and other personnel, as may be 
        necessary and sufficient to carry out the functions of the 
        Council under this section. The resource plan shall, to the 
        maximum extent possible, rely on the use of resources in 
        existence during the period of implementation of the plan.
            ``(2) Resolution of disagreements.--To the extent that 
        there is a disagreement between the Council and the designated 
        State unit in regard to the resources necessary to carry out 
        the functions of the Council as set forth in this section, the 
        disagreement shall be resolved by the Governor or appointing 
        agency consistent with paragraph (1).
            ``(3) Supervision and evaluation.--Each Council shall, 
        consistent with State law, supervise and evaluate such staff 
        and other personnel as may be necessary to carry out its 
        functions under this section.
            ``(4) Personnel conflict of interest.--While assisting the 
        Council in carrying out its duties, staff and other personnel 
        shall not be assigned duties by the designated State unit or 
        any other agency or office of the State, that would create a 
        conflict of interest.
    ``(e) Conflict of Interest.--No member of the Council shall cast a 
vote on any matter that would provide direct financial benefit to the 
member or otherwise give the appearance of a conflict of interest under 
State law.
    ``(f) Meetings.--The Council shall convene at least 4 meetings a 
year in such places as it determines to be necessary to conduct Council 
business and conduct such forums or hearings as the Council considers 
appropriate. The meetings, hearings, and forums shall be publicly 
announced. The meetings shall be open and accessible to the general 
public unless there is a valid reason for an executive session.
    ``(g) Compensation and Expenses.--The Council may use funds 
allocated to the Council by the designated State unit under this title 
(except for funds appropriated to carry out the client assistance 
program under section 112 and funds reserved pursuant to section 110(c) 
to carry out part C) to reimburse members of the Council for reasonable 
and necessary expenses of attending Council meetings and performing 
Council duties (including child care and personal assistance services), 
and to pay compensation to a member of the Council, if such member is 
not employed or must forfeit wages from other employment, for each day 
the member is engaged in performing the duties of the Council.
    ``(h) Hearings and Forums.--The Council is authorized to hold such 
hearings and forums as the Council may determine to be necessary to 
carry out the duties of the Council.

``SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS.

    ``(a) Establishment.--
            ``(1) In general.--
                    ``(A) Establishment of standards and indicators.--
                The Commissioner shall, not later than September 30, 
                1998, establish and publish evaluation standards and 
                performance indicators for the vocational 
                rehabilitation program carried out under this title.
                    ``(B) Review and revision.--Effective September 30, 
                1998, the Commissioner shall review and, if necessary, 
                revise the evaluation standards and performance 
                indicators every 3 years. Any revisions of the 
                standards and indicators shall be developed with input 
                from State vocational rehabilitation agencies, related 
                professional and consumer organizations, recipients of 
                vocational rehabilitation services, and other 
                interested parties. Any revisions of the standards and 
                indicators shall be subject to the publication, review, 
                and comment provisions of paragraph (3).
                    ``(C) Bases.--Effective July 1, 1999, to the 
                maximum extent practicable, the standards and 
                indicators shall be consistent with the core indicators 
                of performance established under section 321(b) of the 
                Workforce Investment Partnership Act of 1998.
            ``(2) Measures.--The standards and indicators shall include 
        outcome and related measures of program performance that 
        facilitate the accomplishment of the purpose and policy of this 
        title.
            ``(3) Comment.--The standards and indicators shall be 
        developed with input from State vocational rehabilitation 
        agencies, related professional and consumer organizations, 
        recipients of vocational rehabilitation services, and other 
        interested parties. The Commissioner shall publish in the 
Federal Register a notice of intent to regulate regarding the 
development of proposed standards and indicators. Proposed standards 
and indicators shall be published in the Federal Register for review 
and comment. Final standards and indicators shall be published in the 
Federal Register.
    ``(b) Compliance.--
            ``(1) State reports.--In accordance with regulations 
        established by the Secretary, each State shall report to the 
        Commissioner after the end of each fiscal year the extent to 
        which the State is in compliance with the standards and 
        indicators.
            ``(2) Program improvement.--
                    ``(A) Plan.--If the Commissioner determines that 
                the performance of any State is below established 
                standards, the Commissioner shall provide technical 
                assistance to the State and the State and the 
                Commissioner shall jointly develop a program 
                improvement plan outlining the specific actions to be 
                taken by the State to improve program performance.
                    ``(B) Review.--The Commissioner shall--
                            ``(i) review the program improvement 
                        efforts of the State on a biannual basis and, 
                        if necessary, request the State to make further 
                        revisions to the plan to improve performance; 
                        and
                            ``(ii) continue to conduct such reviews and 
                        request such revisions until the State sustains 
                        satisfactory performance over a period of more 
                        than 1 year.
    ``(c) Withholding.--If the Commissioner determines that a State 
whose performance falls below the established standards has failed to 
enter into a program improvement plan, or is not complying 
substantially with the terms and conditions of such a program 
improvement plan, the Commissioner shall, consistent with subsections 
(c) and (d) of section 107, reduce or make no further payments to the 
State under this program, until the State has entered into an approved 
program improvement plan, or satisfies the Commissioner that the State 
is complying substantially with the terms and conditions of such a 
program improvement plan, as appropriate.
    ``(d) Report to Congress.--Beginning in fiscal year 1999, the 
Commissioner shall include in each annual report to the Congress under 
section 13 an analysis of program performance, including relative State 
performance, based on the standards and indicators.

``SEC. 107. MONITORING AND REVIEW.

    ``(a) In General.--
            ``(1) Duties.--In carrying out the duties of the 
        Commissioner under this title, the Commissioner shall--
                    ``(A) provide for the annual review and periodic 
                onsite monitoring of programs under this title; and
                    ``(B) determine whether, in the administration of 
                the State plan, a State is complying substantially with 
                the provisions of such plan and with evaluation 
                standards and performance indicators established under 
                section 106.
            ``(2) Procedures for reviews.--In conducting reviews under 
        this section the Commissioner shall consider, at a minimum--
                    ``(A) State policies and procedures;
                    ``(B) guidance materials;
                    ``(C) decisions resulting from hearings conducted 
                in accordance with due process;
                    ``(D) State goals established under section 
                101(a)(15) and the extent to which the State has 
                achieved such goals;
                    ``(E) plans and reports prepared under section 
                106(b);
                    ``(F) consumer satisfaction reviews and analyses 
                described in section 105(c)(4);
                    ``(G) information provided by the State 
                Rehabilitation Council established under section 105, 
                if the State has such a Council, or by the commission 
                described in section 101(a)(21)(A)(i), if the State has 
                such a commission;
                    ``(H) reports; and
                    ``(I) budget and financial management data.
            ``(3) Procedures for monitoring.--In conducting monitoring 
        under this section the Commissioner shall conduct--
                    ``(A) onsite visits, including onsite reviews of 
                records to verify that the State is following 
                requirements regarding the order of selection set forth 
                in section 101(a)(5)(A);
                    ``(B) public hearings and other strategies for 
                collecting information from the public;
                    ``(C) meetings with the State Rehabilitation 
                Council, if the State has such a Council or with the 
                commission described in section 101(a)(21)(A)(i), if 
                the State has such a commission;
                    ``(D) reviews of individual case files, including 
                individualized rehabilitation employment plans and 
                ineligibility determinations; and
                    ``(E) meetings with rehabilitation counselors and 
                other personnel.
            ``(4) Areas of inquiry.--In conducting the review and 
        monitoring, the Commissioner shall examine--
                    ``(A) the eligibility process;
                    ``(B) the provision of services, including, if 
                applicable, the order of selection;
                    ``(C) whether the personnel evaluation system 
                described in section 101(a)(7)(A)(iv) facilitates the 
                accomplishments of the program;
                    ``(D) such other areas as may be identified by the 
                public or through meetings with the State 
                Rehabilitation Council, if the State has such a Council 
                or with the commission described in section 
                101(a)(21)(A)(i), if the State has such a commission; 
                and
                    ``(E) such other areas of inquiry as the 
                Commissioner may consider appropriate.
            ``(5) Reports.--If the Commissioner issues a report 
        detailing the findings of an annual review or onsite monitoring 
        conducted under this section, the report shall be made 
        available to the State Rehabilitation Council, if the State has 
        such a Council.
    ``(b) Technical Assistance.--The Commissioner shall--
            ``(1) provide technical assistance to programs under this 
        title regarding improving the quality of vocational 
        rehabilitation services provided; and
            ``(2) provide technical assistance and establish a 
        corrective action plan for a program under this title if the 
        Commissioner finds that the program fails to comply 
        substantially with the provisions of the State plan, or with 
        evaluation standards or performance indicators established 
        under section 106, in order to ensure that such failure is 
        corrected as soon as practicable.
    ``(c) Failure To Comply With Plan.--
            ``(1) Withholding payments.--Whenever the Commissioner, 
        after providing reasonable notice and an opportunity for a 
        hearing to the State agency administering or supervising the 
        administration of the State plan approved under section 101, 
        finds that--
                    ``(A) the plan has been so changed that it no 
                longer complies with the requirements of section 
                101(a); or
                    ``(B) in the administration of the plan there is a 
                failure to comply substantially with any provision of 
                such plan or with an evaluation standard or performance 
                indicator established under section 106,
        the Commissioner shall notify such State agency that no further 
        payments will be made to the State under this title (or, in the 
        discretion of the Commissioner, that such further payments will 
        be reduced, in accordance with regulations the Commissioner 
        shall prescribe, or that further payments will not be made to 
        the State only for the projects under the parts of the State 
        plan affected by such failure), until the Commissioner is 
        satisfied there is no longer any such failure.
            ``(2) Period.--Until the Commissioner is so satisfied, the 
        Commissioner shall make no further payments to such State under 
        this title (or shall reduce payments or limit payments to 
        projects under those parts of the State plan in which there is 
        no such failure).
            ``(3) Disbursal of withheld funds.--The Commissioner may, 
        in accordance with regulations the Secretary shall prescribe, 
        disburse any funds withheld from a State under paragraph (1) to 
        any public or nonprofit private organization or agency within 
        such State or to any political subdivision of such State 
        submitting a plan meeting the requirements of section 101(a). 
        The Commissioner may not make any payment under this paragraph 
        unless the entity to which such payment is made has provided 
        assurances to the Commissioner that such entity will 
        contribute, for purposes of carrying out such plan, the same 
        amount as the State would have been obligated to contribute if 
        the State received such payment.
    ``(d) Review.--
            ``(1) Petition.--Any State that is dissatisfied with a 
        final determination of the Commissioner under section 101(b) or 
        subsection (c) may file a petition for judicial review of such 
        determination in the United States Court of Appeals for the 
        circuit in which the State is located. Such a petition may be 
        filed only within the 30-day period beginning on the date that 
        notice of such final determination was received by the State. 
        The clerk of the court shall transmit a copy of the petition to 
        the Commissioner or to any officer designated by the 
        Commissioner for that purpose. In accordance with section 2112 
        of title 28, United States Code, the Commissioner shall file 
with the court a record of the proceeding on which the Commissioner 
based the determination being appealed by the State. Until a record is 
so filed, the Commissioner may modify or set aside any determination 
made under such proceedings.
            ``(2) Submissions and determinations.--If, in an action 
        under this subsection to review a final determination of the 
        Commissioner under section 101(b) or subsection (c), the 
        petitioner or the Commissioner applies to the court for leave 
        to have additional oral submissions or written presentations 
        made respecting such determination, the court may, for good 
        cause shown, order the Commissioner to provide within 30 days 
        an additional opportunity to make such submissions and 
        presentations. Within such period, the Commissioner may revise 
        any findings of fact, modify or set aside the determination 
        being reviewed, or make a new determination by reason of the 
        additional submissions and presentations, and shall file such 
        modified or new determination, and any revised findings of 
        fact, with the return of such submissions and presentations. 
        The court shall thereafter review such new or modified 
        determination.
            ``(3) Standards of review.--
                    ``(A) In general.--Upon the filing of a petition 
                under paragraph (1) for judicial review of a 
                determination, the court shall have jurisdiction--
                            ``(i) to grant appropriate relief as 
                        provided in chapter 7 of title 5, United States 
                        Code, except for interim relief with respect to 
                        a determination under subsection (c); and
                            ``(ii) except as otherwise provided in 
                        subparagraph (B), to review such determination 
                        in accordance with chapter 7 of title 5, United 
                        States Code.
                    ``(B) Substantial evidence.--Section 706 of title 
                5, United States Code, shall apply to the review of any 
                determination under this subsection, except that the 
                standard for review prescribed by paragraph (2)(E) of 
                such section 706 shall not apply and the court shall 
                hold unlawful and set aside such determination if the 
                court finds that the determination is not supported by 
                substantial evidence in the record of the proceeding 
                submitted pursuant to paragraph (1), as supplemented by 
                any additional submissions and presentations filed 
                under paragraph (2).

``SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.

    ``(a) Expenditure.--Amounts described in subsection (b) may not be 
expended by a State for any purpose other than carrying out programs 
for which the State receives financial assistance under this title, 
under part C of title VI, or under title VII.
    ``(b) Amounts.--The amounts referred to in subsection (a) are 
amounts provided to a State under the Social Security Act (42 U.S.C. 
301 et seq.) as reimbursement for the expenditure of payments received 
by the State from allotments under section 110 of this Act.

``SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS WITH 
              DISABILITIES ACT OF 1990.

    ``A State may expend payments received under section 111--
            ``(1) to carry out a program to train employers with 
        respect to compliance with the requirements of title I of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et 
        seq.); and
            ``(2) to inform employers of the existence of the program 
        and the availability of the services of the program.

           ``Part B--Basic Vocational Rehabilitation Services

                           ``state allotments

    ``Sec. 110. (a)(1) Subject to the provisions of subsection (c), for 
each fiscal year beginning before October 1, 1978, each State shall be 
entitled to an allotment of an amount bearing the same ratio to the 
amount authorized to be appropriated under section 100(b)(1) for 
allotment under this section as the product of--
            ``(A) the population of the State; and
            ``(B) the square of its allotment percentage,
bears to the sum of the corresponding products for all the States.
    ``(2)(A) For each fiscal year beginning on or after October 1, 
1978, each State shall be entitled to an allotment in an amount equal 
to the amount such State received under paragraph (1) for the fiscal 
year ending September 30, 1978, and an additional amount determined 
pursuant to subparagraph (B) of this paragraph.
    ``(B) For each fiscal year beginning on or after October 1, 1978, 
each State shall be entitled to an allotment, from any amount 
authorized to be appropriated for such fiscal year under section 
100(b)(1) for allotment under this section in excess of the amount 
appropriated under section 100(b)(1)(A) for the fiscal year ending 
September 30, 1978, in an amount equal to the sum of--
            ``(i) an amount bearing the same ratio to 50 percent of 
        such excess amount as the product of the population of the 
        State and the square of its allotment percentage bears to the 
        sum of the corresponding products for all the States; and
            ``(ii) an amount bearing the same ratio to 50 percent of 
        such excess amount as the product of the population of the 
        State and its allotment percentage bears to the sum of the 
        corresponding products for all the States.
    ``(3) The sum of the payment to any State (other than Guam, 
American Samoa, the Virgin Islands, and the Commonwealth of the 
Northern Mariana Islands) under this subsection for any fiscal year 
which is less than one-third of 1 percent of the amount appropriated 
under section 100(b)(1), or $3,000,000, whichever is greater, shall be 
increased to that amount, the total of the increases thereby required 
being derived by proportionately reducing the allotment to each of the 
remaining such States under this subsection, but with such adjustments 
as may be necessary to prevent the sum of the allotments made under 
this subsection to any such remaining State from being thereby reduced 
to less than that amount.
    ``(b)(1) Not later than forty-five days prior to the end of the 
fiscal year, the Commissioner shall determine, after reasonable 
opportunity for the submission to the Commissioner of comments by the 
State agency administering or supervising the program established under 
this title, that any payment of an allotment to a State under section 
111(a) for any fiscal year will not be utilized by such State in 
carrying out the purposes of this title.
    ``(2) As soon as practicable but not later than the end of the 
fiscal year, the Commissioner shall make such amount available for 
carrying out the purposes of this title to one or more other States to 
the extent the Commissioner determines such other State will be able to 
use such additional amount during that fiscal year or the subsequent 
fiscal year for carrying out such purposes. The Commissioner shall make 
such amount available only if such other State will be able to make 
sufficient payments from non-Federal sources to pay for the non-Federal 
share of the cost of vocational rehabilitation services under the State 
plan for the fiscal year for which the amount was appropriated.
    ``(3) For the purposes of this part, any amount made available to a 
State for any fiscal year pursuant to this subsection shall be regarded 
as an increase of such State's allotment (as determined under the 
preceding provisions of this section) for such year.
    ``(c)(1) For fiscal year 1987 and for each subsequent fiscal year, 
the Commissioner shall reserve from the amount appropriated under 
section 100(b)(1) for allotment under this section a sum, determined 
under paragraph (2), to carry out the purposes of part C.
    ``(2) The sum referred to in paragraph (1) shall be, as determined 
by the Secretary--
            ``(A) not less than three-quarters of 1 percent and not 
        more than 1.5 percent of the amount referred to in paragraph 
        (1), for fiscal year 1998; and
            ``(B) not less than 1 percent and not more than 1.5 percent 
        of the amount referred to in paragraph (1), for each of fiscal 
        years 1999 through 2004.

                          ``payments to states

    ``Sec. 111. (a)(1) Except as provided in paragraph (2), from each 
State's allotment under this part for any fiscal year, the Commissioner 
shall pay to a State an amount equal to the Federal share of the cost 
of vocational rehabilitation services under the plan for that State 
approved under section 101, including expenditures for the 
administration of the State plan.
    ``(2)(A) The total of payments under paragraph (1) to a State for a 
fiscal year may not exceed its allotment under subsection (a) of 
section 110 for such year.
    ``(B) For fiscal year 1994 and each fiscal year thereafter, the 
amount otherwise payable to a State for a fiscal year under this 
section shall be reduced by the amount by which expenditures from non-
Federal sources under the State plan under this title for the previous 
fiscal year are less than the total of such expenditures for the second 
fiscal year preceding the previous fiscal year.
    ``(C) The Commissioner may waive or modify any requirement or 
limitation under paragraphs (A) and (B) if the Commissioner determines 
that a waiver or modification is an equitable response to exceptional 
or uncontrollable circumstances affecting the State.
    ``(b) The method of computing and paying amounts pursuant to 
subsection (a) shall be as follows:
            ``(1) The Commissioner shall, prior to the beginning of 
        each calendar quarter or other period prescribed by the 
        Commissioner, estimate the amount to be paid to each State 
        under the provisions of such subsection for such period, such 
        estimate to be based on such records of the State and 
        information furnished by it, and such other investigation as 
        the Commissioner may find necessary.
            ``(2) The Commissioner shall pay, from the allotment 
        available therefor, the amount so estimated by the Commissioner 
        for such period, reduced or increased, as the case may be, by 
        any sum (not previously adjusted under this paragraph) by which 
        the Commissioner finds that the estimate of the amount to be 
        paid the State for any prior period under such subsection was 
        greater or less than the amount which should have been paid to 
        the State for such prior period under such subsection. Such 
        payment shall be made prior to audit or settlement by the 
        General Accounting Office, shall be made through the disbursing 
        facilities of the Treasury Department, and shall be made in 
        such installments as the Commissioner may determine.

                      ``client assistance program

    ``Sec. 112. (a) From funds appropriated under subsection (h), the 
Secretary shall, in accordance with this section, make grants to States 
to establish and carry out client assistance programs to provide 
assistance in informing and advising all clients and client applicants 
of all available benefits under this Act, and, upon request of such 
clients or client applicants, to assist and advocate for such clients 
or applicants in their relationships with projects, programs, and 
services provided under this Act, including assistance and advocacy in 
pursuing legal, administrative, or other appropriate remedies to ensure 
the protection of the rights of such individuals under this Act and to 
facilitate access to the services funded under this Act through 
individual and systemic advocacy. The client assistance program shall 
provide information on the available services and benefits under this 
Act and title I of the Americans with Disabilities Act of 1990 (42 
U.S.C. 12111 et seq.) to individuals with disabilities in the State, 
especially with regard to individuals with disabilities who have 
traditionally been unserved or underserved by vocational rehabilitation 
programs. In providing assistance and advocacy under this subsection 
with respect to services under this title, a client assistance program 
may provide the assistance and advocacy with respect to services that 
are directly related to facilitating the employment of the individual.
    ``(b) No State may receive payments from its allotment under this 
Act in any fiscal year unless the State has in effect not later than 
October 1, 1984, a client assistance program which--
            ``(1) has the authority to pursue legal, administrative, 
        and other appropriate remedies to ensure the protection of 
        rights of individuals with disabilities who are receiving 
        treatments, services, or rehabilitation under this Act within 
        the State; and
            ``(2) meets the requirements of designation under 
        subsection (c).
    ``(c)(1)(A) The Governor shall designate a public or private agency 
to conduct the client assistance program under this section. Except as 
provided in the last sentence of this subparagraph, the Governor shall 
designate an agency which is independent of any agency which provides 
treatment, services, or rehabilitation to individuals under this Act. 
If there is an agency in the State which has, or had, prior to the date 
of enactment of the Rehabilitation Amendments of 1984, served as a 
client assistance agency under this section and which received Federal 
financial assistance under this Act, the Governor may, in the initial 
designation, designate an agency which provides treatment, services, or 
rehabilitation to individuals with disabilities under this Act.
    ``(B)(i) The Governor may not redesignate the agency designated 
under subparagraph (A) without good cause and unless--
            ``(I) the Governor has given the agency 30 days notice of 
        the intention to make such redesignation, including 
        specification of the good cause for such redesignation and an 
        opportunity to respond to the assertion that good cause has 
        been shown;
            ``(II) individuals with disabilities or the individuals' 
        representatives have timely notice of the redesignation and 
        opportunity for public comment; and
            ``(III) the agency has the opportunity to appeal to the 
        Commissioner on the basis that the redesignation was not for 
        good cause.
    ``(ii) If, after the date of enactment of the Rehabilitation Act 
Amendments of 1998--
            ``(I) a designated State agency undergoes any change in the 
        organizational structure of the agency that results in the 
        creation of 1 or more new State agencies or departments or 
        results in the merger of the designated State agency with 1 or 
        more other State agencies or departments; and
            ``(II) an agency (including an office or other unit) within 
        the designated State agency was conducting a client assistance 
        program before the change under the last sentence of 
        subparagraph (A),
the Governor shall redesignate the agency conducting the program. In 
conducting the redesignation, the Governor shall designate to conduct 
the program an agency that is independent of any agency that provides 
treatment, services, or rehabilitation to individuals with disabilities 
under this Act.
    ``(2) In carrying out the provisions of this section, the Governor 
shall consult with the director of the State vocational rehabilitation 
agency, the head of the developmental disability protection and 
advocacy agency, and with representatives of professional and consumer 
organizations serving individuals with disabilities in the State.
    ``(3) The agency designated under this subsection shall be 
accountable for the proper use of funds made available to the agency.
    ``(4) For the purpose of this subsection, the term `Governor' means 
the chief executive of the State.
    ``(d) The agency designated under subsection (c) of this section 
may not bring any class action in carrying out its responsibilities 
under this section.
    ``(e)(1)(A) The Secretary shall allot 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 State shall receive 
less than $50,000.
    ``(B) The Secretary shall allot $30,000 each to American Samoa, 
Guam, the Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands.
    ``(C) For the purpose of this paragraph, the term `State' does not 
include American Samoa, Guam, the Virgin Islands, and the Commonwealth 
of the Northern Mariana Islands.
    ``(D)(i) In any fiscal year that the funds appropriated for such 
fiscal year exceed $7,500,000, the minimum allotment shall be $100,000 
for States and $45,000 for territories.
    ``(ii) For any fiscal year in which the total amount appropriated 
under subsection (h) exceeds the total amount appropriated under such 
subsection for the preceding fiscal year, the Secretary shall increase 
each of the minimum allotments under clause (i) by a percentage that 
shall not exceed the percentage increase in the total amount 
appropriated under such subsection between the preceding fiscal year 
and the fiscal year involved.
    ``(2) The amount of an allotment to a State for a fiscal year which 
the Secretary determines will not be required by the State during the 
period for which it is available for the purpose for which allotted 
shall be available for reallotment by the Secretary at appropriate 
times to other States with respect to which such a determination has 
not been made, in proportion to the original allotments of such States 
for such fiscal year, but with such proportionate amount for any of 
such other States being reduced to the extent it exceeds the sum the 
Secretary estimates such State needs and will be able to use during 
such period, and the total of such reduction shall be similarly 
reallotted among the States whose proportionate amounts were not so 
reduced. Any such amount so reallotted to a State for a fiscal year 
shall be deemed to be a part of its allotment for such fiscal year.
    ``(3) Except as specifically prohibited by or as otherwise provided 
in State law, the Secretary shall pay to the agency designated under 
subsection (c) the amount specified in the application approved under 
subsection (f).
    ``(f) No grant may be made under this section unless the State 
submits an application to the Secretary at such time, in such manner, 
and containing or accompanied by such information as the Secretary 
deems necessary to meet the requirements of this section.
    ``(g) The Secretary shall prescribe regulations applicable to the 
client assistance program which shall include the following 
requirements:
            ``(1) No employees of such programs shall, while so 
        employed, serve as staff or consultants of any rehabilitation 
        project, program, or facility receiving assistance under this 
        Act in the State.
            ``(2) Each program shall be afforded reasonable access to 
        policymaking and administrative personnel in the State and 
        local rehabilitation programs, projects, or facilities.
            ``(3)(A) Each program shall contain provisions designed to 
        assure that to the maximum extent possible alternative means of 
        dispute resolution are available for use at the discretion of 
        an applicant or client of the program prior to resorting to 
        litigation or formal adjudication to resolve a dispute arising 
        under this section.
            ``(B) In subparagraph (A), the term `alternative means of 
        dispute resolution' means any procedure, including good faith 
        negotiation, conciliation, facilitation, mediation, fact 
        finding, and arbitration, and any combination of procedures, 
        that is used in lieu of litigation in a court or formal 
        adjudication in an administrative forum, to resolve a dispute 
        arising under this section.
            ``(4) For purposes of any periodic audit, report, or 
        evaluation of the performance of a client assistance program 
        under this section, the Secretary shall not require such a 
        program to disclose the identity of, or any other personally 
        identifiable information related to, any individual requesting 
        assistance under such program.
    ``(h) There are authorized to be appropriated such sums as may be 
necessary for fiscal years 1998 through 2004 to carry out the 
provisions of this section.

      ``Part C--American Indian Vocational Rehabilitation Services

              ``vocational rehabilitation services grants

    ``Sec. 121. (a) The Commissioner, in accordance with the provisions 
of this part, may make grants to the governing bodies of Indian tribes 
located on Federal and State reservations (and consortia of such 
governing bodies) to pay 90 percent of the costs of vocational 
rehabilitation services for American Indians who are individuals with 
disabilities residing on such reservations. The non-Federal share of 
such costs may be in cash or in kind, fairly valued, and the 
Commissioner may waive such non-Federal share requirement in order to 
carry out the purposes of this Act.
    ``(b)(1) No grant may be made under this part for any fiscal year 
unless an application therefor has been submitted to and approved by 
the Commissioner. The Commissioner may not approve an application 
unless the application--
            ``(A) is made at such time, in such manner, and contains 
        such information as the Commissioner may require;
            ``(B) contains assurances that the rehabilitation services 
        provided under this part to American Indians who are 
        individuals with disabilities residing on a reservation in a 
        State shall be, to the maximum extent feasible, comparable to 
        rehabilitation services provided under this title to other 
        individuals with disabilities residing in the State and that, 
        where appropriate, may include services traditionally used by 
        Indian tribes; and
            ``(C) contains assurances that the application was 
        developed in consultation with the designated State unit of the 
        State.
    ``(2) The provisions of sections 5, 6, 7, and 102(a) of the Indian 
Self-Determination and Education Assistance Act shall be applicable to 
any application submitted under this part. For purposes of this 
paragraph, any reference in any such provision to the Secretary of 
Education or to the Secretary of the Interior shall be considered to be 
a reference to the Commissioner.
    ``(3) Any application approved under this part shall be effective 
for not more than 60 months, except as determined otherwise by the 
Commissioner pursuant to prescribed regulations. The State shall 
continue to provide vocational rehabilitation services under its State 
plan to American Indians residing on a reservation whenever such State 
includes any such American Indians in its State population under 
section 110(a)(1).
    ``(4) In making grants under this part, the Secretary shall give 
priority consideration to applications for the continuation of programs 
which have been funded under this part.
    ``(5) Nothing in this section may be construed to authorize a 
separate service delivery system for Indian residents of a State who 
reside in non-reservation areas.
    ``(c) The term `reservation' includes Indian reservations, public 
domain Indian allotments, former Indian reservations in Oklahoma, and 
land held by incorporated Native groups, regional corporations, and 
village corporations under the provisions of the Alaska Native Claims 
Settlement Act.

    ``Part D--Vocational Rehabilitation Services Client Information

``SEC. 131. DATA SHARING.

    ``(a) In General.--
            ``(1) Memorandum of understanding.--The Secretary of 
        Education and the Secretary of Health and Human Services shall 
        enter into a memorandum of understanding for the purposes of 
        exchanging data of mutual importance--
                    ``(A) that concern clients of designated State 
                agencies; and
                    ``(B) that are data maintained either by--
                            ``(i) the Rehabilitation Services 
                        Administration, as required by section 13; or
                            ``(ii) the Social Security Administration, 
                        from its Summary Earnings and Records and 
                        Master Beneficiary Records.
            ``(2) Labor market information.--The Secretary of Labor 
        shall provide the Commissioner with labor market information 
        that facilitates evaluation by the Commissioner of the program 
        carried out under part B, and allows the Commissioner to 
        compare the progress of individuals with disabilities who are 
        assisted under the program in securing, retaining, regaining, 
        and advancing in employment with the progress made by 
        individuals who are assisted under title III of the Workforce 
        Investment Partnership Act of 1998.
    ``(b) Treatment of Information.--For purposes of the exchange 
described in subsection (a)(1), the data described in subsection 
(a)(1)(B)(ii) shall not be considered return information (as defined in 
section 6103(b)(2) of the Internal Revenue Code of 1986) and, as 
appropriate, the confidentiality of all client information shall be 
maintained by the Rehabilitation Services Administration and the Social 
Security Administration.''.

SEC. 5. RESEARCH AND TRAINING.

    Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760 et seq.) 
is amended to read as follows:

                   ``TITLE II--RESEARCH AND TRAINING

                        ``declaration of purpose

    ``Sec. 200. The purpose of this title is to--
            ``(1) provide for research, demonstration projects, 
        training, and related activities to maximize the full inclusion 
        and integration into society, employment, independent living, 
        family support, and economic and social self-sufficiency of 
        individuals with disabilities of all ages, with particular 
        emphasis on improving the effectiveness of services authorized 
        under this Act;
            ``(2) provide for a comprehensive and coordinated approach 
        to the support and conduct of such research, demonstration 
        projects, training, and related activities and to ensure that 
        the approach is in accordance with the 5-year plan developed 
        under section 202(h);
            ``(3) promote the transfer of rehabilitation technology to 
        individuals with disabilities through research and 
        demonstration projects relating to--
                    ``(A) the procurement process for the purchase of 
                rehabilitation technology;
                    ``(B) the utilization of rehabilitation technology 
                on a national basis;
                    ``(C) specific adaptations or customizations of 
                products to enable individuals with disabilities to 
                live more independently; and
                    ``(D) the development or transfer of assistive 
                technology;
            ``(4) ensure the widespread distribution, in usable 
        formats, of practical scientific and technological 
        information--
                    ``(A) generated by research, demonstration 
                projects, training, and related activities; and
                    ``(B) regarding state-of-the-art practices, 
                improvements in the services authorized under this Act, 
                rehabilitation technology, and new knowledge regarding 
                disabilities,
        to rehabilitation professionals, individuals with disabilities, 
        and other interested parties, including the general public;
            ``(5) identify effective strategies that enhance the 
        opportunities of individuals with disabilities to engage in 
        employment, including employment involving telecommuting and 
        self-employment; and
            ``(6) increase opportunities for researchers who are 
        members of traditionally underserved populations, including 
        researchers who are members of minority groups and researchers 
        who are individuals with disabilities.

                   ``authorization of appropriations

    ``Sec. 201. (a) There are authorized to be appropriated--
            ``(1) for the purpose of providing for the expenses of the 
        National Institute on Disability and Rehabilitation Research 
        under section 202, which shall include the expenses of the 
        Rehabilitation Research Advisory Council under section 205, and 
        shall not include the expenses of such Institute to carry out 
        section 204, such sums as may be necessary for each of fiscal 
        years 1998 through 2004; and
            ``(2) to carry out section 204, such sums as may be 
        necessary for each of fiscal years 1998 through 2004.
    ``(b) Funds appropriated under this title shall remain available 
until expended.

     ``national institute on disability and rehabilitation research

    ``Sec. 202. (a)(1) There is established within the Department of 
Education a National Institute on Disability and Rehabilitation 
Research (hereinafter in this title referred to as the `Institute'), 
which shall be headed by a Director (hereinafter in this title referred 
to as the `Director'), in order to--
            ``(A) promote, coordinate, and provide for--
                    ``(i) research;
                    ``(ii) demonstration projects and training; and
                    ``(iii) related activities,
        with respect to individuals with disabilities;
            ``(B) more effectively carry out activities through the 
        programs under section 204 and activities under this section;
            ``(C) widely disseminate information from the activities 
        described in subparagraphs (A) and (B); and
            ``(D) provide leadership in advancing the quality of life 
        of individuals with disabilities.
    ``(2) In the performance of the functions of the office, the 
Director shall be directly responsible to the Secretary or to the same 
Under Secretary or Assistant Secretary of the Department of Education 
to whom the Commissioner is responsible under section 3(a).
    ``(b) The Director, through the Institute, shall be responsible 
for--
            ``(1) administering the programs described in section 204 
        and activities under this section;
            ``(2) widely disseminating findings, conclusions, and 
        recommendations, resulting from research, demonstration 
        projects, training, and related activities (referred to in this 
        title as `covered activities') funded by the Institute, to--
                    ``(A) other Federal, State, tribal, and local 
                public agencies;
                    ``(B) private organizations engaged in research 
                relating to rehabilitation or providing rehabilitation 
                services;
                    ``(C) rehabilitation practitioners; and
                    ``(D) individuals with disabilities and the 
                individuals' representatives;
            ``(3) coordinating, through the Interagency Committee 
        established by section 203 of this Act, all Federal programs 
        and policies relating to research in rehabilitation;
            ``(4) widely disseminating educational materials and 
        research results, concerning ways to maximize the full 
        inclusion and integration into society, employment, independent 
        living, family support, and economic and social self-
        sufficiency of individuals with disabilities, to--
                    ``(A) public and private entities, including--
                            ``(i) elementary and secondary schools (as 
                        defined in section 14101 of the Elementary and 
                        Secondary Education Act of 1965; and
                            ``(ii) institutions of higher education;
                    ``(B) rehabilitation practitioners;
                    ``(C) individuals with disabilities (especially 
                such individuals who are members of minority groups or 
                of populations that are unserved or underserved by 
                programs under this Act); and
                    ``(D) the individuals' representatives for the 
                individuals described in subparagraph (C);
            ``(5)(A) conducting an education program to inform the 
        public about ways of providing for the rehabilitation of 
        individuals with disabilities, including information relating 
        to--
                    ``(i) family care;
                    ``(ii) self-care; and
                    ``(iii) assistive technology devices and assistive 
                technology services; and
            ``(B) as part of the program, disseminating engineering 
        information about assistive technology devices;
            ``(6) conducting conferences, seminars, and workshops 
        (including in-service training programs and programs for 
individuals with disabilities) concerning advances in rehabilitation 
research and rehabilitation technology (including advances concerning 
the selection and use of assistive technology devices and assistive 
technology services), pertinent to the full inclusion and integration 
into society, employment, independent living, family support, and 
economic and social self-sufficiency of individuals with disabilities;
            ``(7) taking whatever action is necessary to keep the 
        Congress fully and currently informed with respect to the 
        implementation and conduct of programs and activities carried 
        out under this title, including dissemination activities;
            ``(8) producing, in conjunction with the Department of 
        Labor, the National Center for Health Statistics, the Bureau of 
        the Census, the Health Care Financing Administration, the 
        Social Security Administration, the Bureau of Indian Affairs, 
        the Indian Health Service, and other Federal departments and 
        agencies, as may be appropriate, statistical reports and 
        studies on the employment, health, income, and other 
        demographic characteristics of individuals with disabilities, 
        including information on individuals with disabilities who live 
        in rural or inner-city settings, with particular attention 
        given to underserved populations, and widely disseminating such 
        reports and studies to rehabilitation professionals, 
        individuals with disabilities, the individuals' 
        representatives, and others to assist in the planning, 
        assessment, and evaluation of vocational and other 
        rehabilitation services for individuals with disabilities;
            ``(9) conducting research on consumer satisfaction with 
        vocational rehabilitation services for the purpose of 
        identifying effective rehabilitation programs and policies that 
        promote the independence of individuals with disabilities and 
        achievement of long-term vocational goals;
            ``(10) conducting research to examine the relationship 
        between the provision of specific services and successful, 
        sustained employment outcomes, including employment outcomes 
        involving self-employment; and
            ``(11) coordinating activities with the Attorney General 
        regarding the provision of information, training, or technical 
        assistance regarding the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.) to ensure consistency with the 
        plan for technical assistance required under section 506 of 
        such Act (42 U.S.C. 12206).
    ``(c)(1) The Director, acting through the Institute or 1 or more 
entities funded by the Institute, shall provide for the development and 
dissemination of models to address consumer-driven information needs 
related to assistive technology devices and assistive technology 
services.
    ``(2) The development and dissemination of models may include--
            ``(A) convening groups of individuals with disabilities, 
        family members and advocates of such individuals, commercial 
        producers of assistive technology, and entities funded by the 
        Institute to develop, assess, and disseminate knowledge about 
        information needs related to assistive technology;
            ``(B) identifying the types of information regarding 
        assistive technology devices and assistive technology services 
        that individuals with disabilities find especially useful;
            ``(C) evaluating current models, and developing new models, 
        for transmitting the information described in subparagraph (B) 
        to consumers and to commercial producers of assistive 
        technology; and
            ``(D) disseminating through 1 or more entities funded by 
        the Institute, the models described in subparagraph (C) and 
        findings regarding the information described in subparagraph 
        (B) to consumers and commercial producers of assistive 
        technology.
    ``(d)(1) The Director of the Institute shall be appointed by the 
Secretary. The Director shall be an individual with substantial 
experience in rehabilitation and in research administration. The 
Director shall be compensated at the rate payable for level V of the 
Executive Schedule under section 5316 of title 5, United States Code. 
The Director shall not delegate any of his functions to any officer who 
is not directly responsible to the Director.
    ``(2) There shall be a Deputy Director of the Institute (referred 
to in this section as the `Deputy Director') who shall be appointed by 
the Secretary. The Deputy Director shall be an individual with 
substantial experience in rehabilitation and in research 
administration. The Deputy Director shall be compensated at the rate of 
pay for level 4 of the Senior Executive Service Schedule under section 
5382 of title 5, United States Code, and shall act for the Director 
during the absence of the Director or the inability of the Director to 
perform the essential functions of the job, exercising such powers as 
the Director may prescribe. In the case of any vacancy in the office of 
the Director, the Deputy Director shall serve as Director until a 
Director is appointed under paragraph (1). The position created by this 
paragraph shall be a Senior Executive Service position, as defined in 
section 3132 of title 5, United States Code.
    ``(3) The Director, subject to the approval of the President, may 
appoint, for terms not to exceed three years, without regard to the 
provisions of title 5, United States Code, governing appointment in the 
competitive service, and may compensate, without regard to the 
provisions of chapter 51 and subchapter III of chapter 53 of such title 
relating to classification and General Schedule pay rates, such 
technical and professional employees of the Institute as the Director 
determines to be necessary to accomplish the functions of the Institute 
and also appoint and compensate without regard to such provisions, in a 
number not to exceed one-fifth of the number of full-time, regular 
technical and professional employees of the Institute.
    ``(4) The Director may obtain the services of consultants, without 
regard to the provisions of title 5, United States Code, governing 
appointments in the competitive service.
    ``(e) The Director, pursuant to regulations which the Secretary 
shall prescribe, may establish and maintain fellowships with such 
stipends and allowances, including travel and subsistence expenses 
provided for under title 5, United States Code, as the Director 
considers necessary to procure the assistance of highly qualified 
research fellows, including individuals with disabilities, from the 
United States and foreign countries.
    ``(f)(1) The Director shall, pursuant to regulations that the 
Secretary shall prescribe, provide for scientific peer review of all 
applications for financial assistance for research, training, and 
demonstration projects over which the Director has authority. The 
Director shall provide for the review by utilizing, to the maximum 
extent possible, appropriate peer review panels established within the 
Institute. The panels shall be standing panels if the grant period 
involved or the duration of the program involved is not more than 3 
years. The panels shall be composed of individuals who are not Federal 
employees, who are scientists or other experts in the rehabilitation 
field (including the independent living field), including knowledgeable 
individuals with disabilities, and the individuals' representatives, 
and who are competent to review applications for the financial 
assistance.
    ``(2) The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to the panels.
    ``(3) The Director shall solicit nominations for such panels from 
the public and shall publish the names of the individuals selected. 
Individuals comprising each panel shall be selected from a pool of 
qualified individuals to facilitate knowledgeable, cost-effective 
review.
    ``(4) In providing for such scientific peer review, the Secretary 
shall provide for training, as necessary and appropriate, to facilitate 
the effective participation of those individuals selected to 
participate in such review.
    ``(g) Not less than 90 percent of the funds appropriated under this 
title for any fiscal year shall be expended by the Director to carry 
out activities under this title through grants, contracts, or 
cooperative agreements. Up to 10 percent of the funds appropriated 
under this title for any fiscal year may be expended directly for the 
purpose of carrying out the functions of the Director under this 
section.
    ``(h)(1) The Director shall--
            ``(A) by October 1, 1998 and every fifth October 1 
        thereafter, prepare and publish in the Federal Register for 
        public comment a draft of a 5-year plan that outlines 
        priorities for rehabilitation research, demonstration projects, 
        training, and related activities and explains the basis for 
        such priorities;
            ``(B) by June 1, 1999, and every fifth June 1 thereafter, 
        after considering public comments, submit the plan in final 
        form to the appropriate committees of Congress;
            ``(C) at appropriate intervals, prepare and submit 
        revisions in the plan to the appropriate committees of 
        Congress; and
            ``(D) annually prepare and submit progress reports on the 
        plan to the appropriate committees of Congress.
    ``(2) Such plan shall--
            ``(A) identify any covered activity that should be 
        conducted under this section and section 204 respecting the 
        full inclusion and integration into society of individuals with 
        disabilities, especially in the area of employment;
            ``(B) determine the funding priorities for covered 
        activities to be conducted under this section and section 204;
            ``(C) specify appropriate goals and timetables for covered 
        activities to be conducted under this section and section 204;
            ``(D) be developed by the Director--
                    ``(i) after consultation with the Rehabilitation 
                Research Advisory Council established under section 
                205;
                    ``(ii) in coordination with the Commissioner;
                    ``(iii) after consultation with the National 
                Council on Disability established under title IV, the 
                Secretary of Education, officials responsible for the 
                administration of the Developmental Disabilities 
                Assistance and Bill of Rights Act (42 U.S.C. 6000 et 
                seq.), and the Interagency Committee on Disability 
                Research established under section 203; and
                    ``(iv) after full consideration of the input of 
                individuals with disabilities and the individuals' 
                representatives, organizations representing individuals 
                with disabilities, providers of services furnished 
                under this Act, researchers in the rehabilitation 
                field, and any other persons or entities the Director 
                considers to be appropriate;
            ``(E) specify plans for widespread dissemination of the 
        results of covered activities, in accessible formats, to 
        rehabilitation practitioners, individuals with disabilities, 
        and the individuals' representatives; and
            ``(F) specify plans for widespread dissemination of the 
        results of covered activities that concern individuals with 
        disabilities who are members of minority groups or of 
        populations that are unserved or underserved by programs 
        carried out under this Act.
    ``(i) In order to promote cooperation among Federal departments and 
agencies conducting research programs, the Director shall consult with 
the administrators of such programs, and with the Interagency Committee 
established by section 203, regarding the design of research projects 
conducted by such entities and the results and applications of such 
research.
    ``(j)(1) The Director shall take appropriate actions to provide for 
a comprehensive and coordinated research program under this title. In 
providing such a program, the Director may undertake joint activities 
with other Federal entities engaged in research and with appropriate 
private entities. Any Federal entity proposing to establish any 
research project related to the purposes of this Act shall consult, 
through the Interagency Committee established by section 203, with the 
Director as Chairperson of such Committee and provide the Director with 
sufficient prior opportunity to comment on such project.
    ``(2) Any person responsible for administering any program of the 
National Institutes of Health, the Department of Veterans Affairs, the 
National Science Foundation, the National Aeronautics and Space 
Administration, the Office of Special Education and Rehabilitative 
Services, or of any other Federal entity, shall, through the 
Interagency Committee established by section 203, consult and cooperate 
with the Director in carrying out such program if the program is 
related to the purposes of this title.
    ``(k) The Director shall make grants to institutions of higher 
education for the training of rehabilitation researchers, including 
individuals with disabilities, with particular attention to research 
areas that support the implementation and objectives of this Act and 
that improve the effectiveness of services authorized under this Act.

                        ``interagency committee

    ``Sec. 203. (a)(1) In order to promote coordination and cooperation 
among Federal departments and agencies conducting rehabilitation 
research programs, there is established within the Federal Government 
an Interagency Committee on Disability Research (hereinafter in this 
section referred to as the `Committee'), chaired by the Director and 
comprised of such members as the President may designate, including the 
following (or their designees): the Director, the Commissioner of the 
Rehabilitation Services Administration, the Assistant Secretary for 
Special Education and Rehabilitative Services, the Secretary of 
Education, the Secretary of Veterans Affairs, the Director of the 
National Institutes of Health, the Director of the National Institute 
of Mental Health, the Administrator of the National Aeronautics and 
Space Administration, the Secretary of Transportation, the Assistant 
Secretary of the Interior for Indian Affairs, the Director of the 
Indian Health Service, and the Director of the National Science 
Foundation.
    ``(2) The Committee shall meet not less than four times each year.
    ``(b) After receiving input from individuals with disabilities and 
the individuals' representatives, the Committee shall identify, assess, 
and seek to coordinate all Federal programs, activities, and projects, 
and plans for such programs, activities, and projects with respect to 
the conduct of research related to rehabilitation of individuals with 
disabilities.
    ``(c) The Committee shall annually submit to the President and to 
the appropriate committees of the Congress a report making such 
recommendations as the Committee deems appropriate with respect to 
coordination of policy and development of objectives and priorities for 
all Federal programs relating to the conduct of research related to 
rehabilitation of individuals with disabilities.

                ``research and other covered activities

    ``Sec. 204. (a)(1) To the extent consistent with priorities 
established in the 5-year plan described in section 202(h), the 
Director may make grants to and contracts with States and public or 
private agencies and organizations, including institutions of higher 
education, Indian tribes, and tribal organizations, to pay part of the 
cost of projects for the purpose of planning and conducting research, 
demonstration projects, training, and related activities, the purposes 
of which are to develop methods, procedures, and rehabilitation 
technology, that maximize the full inclusion and integration into 
society, employment, independent living, family support, and economic 
and social self-sufficiency of individuals with disabilities, 
especially individuals with the most significant disabilities, and 
improve the effectiveness of services authorized under this Act.
    ``(2)(A) In carrying out this section, the Director shall emphasize 
projects that support the implementation of titles I, III, V, VI, and 
VII, including projects addressing the needs described in the State 
plans submitted under section 101 or 704 by State agencies.
    ``(B) Such projects, as described in the State plans submitted by 
State agencies, may include--
            ``(i) medical and other scientific, technical, 
        methodological, and other investigations into the nature of 
        disability, methods of analyzing it, and restorative 
        techniques, including basic research where related to 
        rehabilitation techniques or services;
            ``(ii) studies and analysis of industrial, vocational, 
        social, recreational, psychiatric, psychological, economic, and 
        other factors affecting rehabilitation of individuals with 
        disabilities;
            ``(iii) studies and analysis of special problems of 
        individuals who are homebound and individuals who are 
        institutionalized;
            ``(iv) studies, analyses, and demonstrations of 
        architectural and engineering design adapted to meet the 
        special needs of individuals with disabilities;
            ``(v) studies, analyses, and other activities related to 
        supported employment;
            ``(vi) related activities which hold promise of increasing 
        knowledge and improving methods in the rehabilitation of 
        individuals with disabilities and individuals with the most 
        significant disabilities, particularly individuals with 
        disabilities, and individuals with the most significant 
        disabilities, who are members of populations that are unserved 
        or underserved by programs under this Act; and
            ``(vii) studies, analyses, and other activities related to 
        job accommodations, including the use of rehabilitation 
        engineering and assistive technology.
    ``(b)(1) In addition to carrying out projects under subsection (a), 
the Director may make grants under this subsection (referred to in this 
subsection as `research grants') to pay part or all of the cost of the 
research or other specialized covered activities described in 
paragraphs (2) through (18). A research grant made under any of 
paragraphs (2) through (18) may only be used in a manner consistent 
with priorities established in the 5-year plan described in section 
202(h).
    ``(2)(A) Research grants may be used for the establishment and 
support of Rehabilitation Research and Training Centers, for the 
purpose of providing an integrated program of research, which Centers 
shall--
            ``(i) be operated in collaboration with institutions of 
        higher education or providers of rehabilitation services or 
        other appropriate services; and
            ``(ii) serve as centers of national excellence and national 
        or regional resources for providers and individuals with 
        disabilities and the individuals' representatives.
    ``(B) The Centers shall conduct research and training activities 
by--
            ``(i) conducting coordinated and advanced programs of 
        research in rehabilitation targeted toward the production of 
        new knowledge that will improve rehabilitation methodology and 
        service delivery systems, alleviate or stabilize disabling 
        conditions, and promote maximum social and economic 
        independence of individuals with disabilities, especially 
        promoting the ability of the individuals to prepare for, 
        secure, retain, regain, or advance in employment;
            ``(ii) providing training (including graduate, pre-service, 
        and in-service training) to assist individuals to more 
        effectively provide rehabilitation services;
            ``(iii) providing training (including graduate, pre-
        service, and in-service training) for rehabilitation research 
        personnel and other rehabilitation personnel; and
            ``(iv) serving as an informational and technical assistance 
        resource to providers, individuals with disabilities, and the 
        individuals' representatives, through conferences, workshops, 
        public education programs, in-service training programs, and 
        similar activities.
    ``(C) The research to be carried out at each such Center may 
include--
            ``(i) basic or applied medical rehabilitation research;
            ``(ii) research regarding the psychological and social 
        aspects of rehabilitation, including disability policy;
            ``(iii) research related to vocational rehabilitation;
            ``(iv) continuation of research that promotes the 
        emotional, social, educational, and functional growth of 
        children who are individuals with disabilities;
            ``(v) continuation of research to develop and evaluate 
        interventions, policies, and services that support families of 
        those children and adults who are individuals with 
        disabilities; and
            ``(vi) continuation of research that will improve services 
        and policies that foster the productivity, independence, and 
        social integration of individuals with disabilities, and enable 
        individuals with disabilities, including individuals with 
        mental retardation and other developmental disabilities, to 
        live in their communities.
    ``(D) Training of students preparing to be rehabilitation personnel 
shall be an important priority for such a Center.
    ``(E) The Director shall make grants under this paragraph to 
establish and support both comprehensive centers dealing with multiple 
disabilities and centers primarily focused on particular disabilities.
    ``(F) Grants made under this paragraph may be used to provide funds 
for services rendered by such a Center to individuals with disabilities 
in connection with the research and training activities.
    ``(G) Grants made under this paragraph may be used to provide 
faculty support for teaching--
            ``(i) rehabilitation-related courses of study for credit; 
        and
            ``(ii) other courses offered by the Centers, either 
        directly or through another entity.
    ``(H) The research and training activities conducted by such a 
Center shall be conducted in a manner that is accessible to and usable 
by individuals with disabilities.
    ``(I) The Director shall encourage the Centers to develop practical 
applications for the findings of the research of the Centers.
    ``(J) In awarding grants under this paragraph, the Director shall 
take into consideration the location of any proposed Center and the 
appropriate geographic and regional allocation of such Centers.
    ``(K) To be eligible to receive a grant under this paragraph, each 
such institution or provider described in subparagraph (A) shall--
            ``(i) be of sufficient size, scope, and quality to 
        effectively carry out the activities in an efficient manner 
        consistent with appropriate State and Federal law; and
            ``(ii) demonstrate the ability to carry out the training 
        activities either directly or through another entity that can 
        provide such training.
    ``(L) The Director shall make grants under this paragraph for 
periods of 5 years, except that the Director may make a grant for a 
period of less than 5 years if--
            ``(i) the grant is made to a new recipient; or
            ``(ii) the grant supports new or innovative research.
    ``(M) Grants made under this paragraph shall be made on a 
competitive basis. To be eligible to receive a grant under this 
paragraph, a prospective grant recipient shall submit an application to 
the Director at such time, in such manner, and containing such 
information as the Director may require.
    ``(N) In conducting scientific peer review under section 202(f) of 
an application for the renewal of a grant made under this paragraph, 
the peer review panel shall take into account the past performance of 
the applicant in carrying out the grant and input from individuals with 
disabilities and the individuals' representatives.
    ``(O) An institution or provider that receives a grant under this 
paragraph to establish such a Center may not collect more than 15 
percent of the amount of the grant received by the Center in indirect 
cost charges.
    ``(3)(A) Research grants may be used for the establishment and 
support of Rehabilitation Engineering Research Centers, operated by or 
in collaboration with institutions of higher education or nonprofit 
organizations, to conduct research or demonstration activities, and 
training activities, regarding rehabilitation technology, including 
rehabilitation engineering, assistive technology devices, and assistive 
technology services, for the purposes of enhancing opportunities for 
better meeting the needs of, and addressing the barriers confronted by, 
individuals with disabilities in all aspects of their lives.
    ``(B) In order to carry out the purposes set forth in subparagraph 
(A), such a Center shall carry out the research or demonstration 
activities by--
            ``(i) developing and disseminating innovative methods of 
        applying advanced technology, scientific achievement, and 
        psychological and social knowledge to--
                    ``(I) solve rehabilitation problems and remove 
                environmental barriers through planning and conducting 
                research, including cooperative research with public or 
                private agencies and organizations, designed to produce 
                new scientific knowledge, and new or improved methods, 
                equipment, and devices; and
                    ``(II) study new or emerging technologies, 
                products, or environments, and the effectiveness and 
                benefits of such technologies, products, or 
                environments;
            ``(ii) demonstrating and disseminating--
                    ``(I) innovative models for the delivery, to rural 
                and urban areas, of cost-effective rehabilitation 
                technology services that promote utilization of 
                assistive technology devices; and
                    ``(II) other scientific research to assist in 
                meeting the employment and independent living needs of 
                individuals with significant disabilities; or
            ``(iii) conducting research or demonstration activities 
        that facilitate service delivery systems change by 
        demonstrating, evaluating, documenting, and disseminating--
                    ``(I) consumer responsive and individual and 
                family-centered innovative models for the delivery to 
                both rural and urban areas, of innovative cost-
                effective rehabilitation technology services that 
                promote utilization of rehabilitation technology; and
                    ``(II) other scientific research to assist in 
                meeting the employment and independent living needs of, 
                and addressing the barriers confronted by, individuals 
                with disabilities, including individuals with 
                significant disabilities.
    ``(C) To the extent consistent with the nature and type of research 
or demonstration activities described in subparagraph (B), each Center 
established or supported through a grant made available under this 
paragraph shall--
            ``(i) cooperate with programs established under the 
        Technology-Related Assistance for Individuals With Disabilities 
        Act of 1988 (29 U.S.C. 2201 et seq.) and other regional and 
        local programs to provide information to individuals with 
        disabilities and the individuals' representatives to--
                    ``(I) increase awareness and understanding of how 
                rehabilitation technology can address their needs; and
                    ``(II) increase awareness and understanding of the 
                range of options, programs, services, and resources 
                available, including financing options for the 
                technology and services covered by the area of focus of 
                the Center;
            ``(ii) provide training opportunities to individuals, 
        including individuals with disabilities, to become researchers 
        of rehabilitation technology and practitioners of 
        rehabilitation technology in conjunction with institutions of 
        higher education and nonprofit organizations; and
            ``(iii) respond, through research or demonstration 
        activities, to the needs of individuals with all types of 
        disabilities who may benefit from the application of technology 
        within the area of focus of the Center.
    ``(D)(i) In establishing Centers to conduct the research or 
demonstration activities described in subparagraph (B)(iii), the 
Director may establish one Center in each of the following areas of 
focus:
            ``(I) Early childhood services, including early 
        intervention and family support.
            ``(II) Education at the elementary and secondary levels, 
        including transition from school to postschool activities.
            ``(III) Employment, including supported employment, and 
        reasonable accommodations and the reduction of environmental 
        barriers as required by the Americans with Disabilities Act of 
        1990 (42 U.S.C. 12101 et seq.) and title V.
            ``(IV) Independent living, including transition from 
        institutional to community living, maintenance of community 
        living on leaving the work force, self-help skills, and 
        activities of daily living.
    ``(ii) Each Center conducting the research or demonstration 
activities described in subparagraph (B)(iii) shall have an advisory 
committee, of which the majority of members are individuals with 
disabilities who are users of rehabilitation technology, and the 
individuals' representatives.
    ``(E) Grants made under this paragraph shall be made on a 
competitive basis and shall be for a period of 5 years, except that the 
Director may make a grant for a period of less than 5 years if--
            ``(i) the grant is made to a new recipient; or
            ``(ii) the grant supports new or innovative research.
    ``(F) To be eligible to receive a grant under this paragraph, a 
prospective grant recipient shall submit an application to the Director 
at such time, in such manner, and containing such information as the 
Director may require.
    ``(G) Each Center established or supported through a grant made 
available under this paragraph shall--
            ``(i) cooperate with State agencies and other local, State, 
        regional, and national programs and organizations developing or 
        delivering rehabilitation technology, including State programs 
        funded under the Technology-Related Assistance for Individuals 
        With Disabilities Act of 1988 (29 U.S.C. 2201 et seq.); and
            ``(ii) prepare and submit to the Director as part of an 
        application for continuation of a grant, or as a final report, 
        a report that documents the outcomes of the program of the 
        Center in terms of both short- and long-term impact on the 
        lives of individuals with disabilities, and such other 
        information as may be requested by the Director.
    ``(4)(A) Research grants may be used to conduct a program for 
spinal cord injury research, including conducting such a program by 
making grants to public or private agencies and organizations to pay 
part or all of the costs of special projects and demonstration projects 
for spinal cord injuries, that will--
            ``(i) ensure widespread dissemination of research findings 
        among all Spinal Cord Injury Centers, to rehabilitation 
        practitioners, individuals with spinal cord injury, the 
        individuals' representatives, and organizations receiving 
        financial assistance under this paragraph;
            ``(ii) provide encouragement and support for initiatives 
        and new approaches by individual and institutional 
        investigators; and
            ``(iii) establish and maintain close working relationships 
        with other governmental and voluntary institutions and 
        organizations engaged in similar efforts in order to unify and 
        coordinate scientific efforts, encourage joint planning, and 
        promote the interchange of data and reports among spinal cord 
        injury investigations.
    ``(B) Any agency or organization carrying out a project or 
demonstration project assisted by a grant under this paragraph that 
provides services to individuals with spinal cord injuries shall--
            ``(i) establish, on an appropriate regional basis, a 
        multidisciplinary system of providing vocational and other 
        rehabilitation services, specifically designed to meet the 
        special needs of individuals with spinal cord injuries, 
        including acute care as well as periodic inpatient or 
        outpatient followup and services;
            ``(ii) demonstrate and evaluate the benefits to individuals 
        with spinal cord injuries served in, and the degree of cost 
        effectiveness of, such a regional system;
            ``(iii) demonstrate and evaluate existing, new, and 
        improved methods and rehabilitation technology essential to the 
        care, management, and rehabilitation of individuals with spinal 
        cord injuries; and
            ``(iv) demonstrate and evaluate methods of community 
        outreach for individuals with spinal cord injuries and 
        community education in connection with the problems of such 
        individuals in areas such as housing, transportation, 
        recreation, employment, and community activities.
    ``(C) In awarding grants under this paragraph, the Director shall 
take into account the location of any proposed Spinal Cord Injury 
Center and the appropriate geographic and regional allocation of such 
Centers.
    ``(5) Research grants may be used to conduct a program for end-
stage renal disease research, to include support of projects and 
demonstrations for providing special services (including 
transplantation and dialysis), artificial kidneys, and supplies 
necessary for the rehabilitation of individuals with such disease and 
which will--
            ``(A) insure dissemination of research findings;
            ``(B) provide encouragement and support for initiatives and 
        new approaches by individuals and institutional investigators; 
        and
            ``(C) establish and maintain close working relationships 
        with other governmental and voluntary institutions and 
        organizations engaged in similar efforts,
in order to unify and coordinate scientific efforts, encourage joint 
planning, and promote the interchange of data and reports among 
investigators in the field of end-stage renal disease. No person shall 
be selected to participate in such program who is eligible for services 
for such disease under any other provision of law.
    ``(6) Research grants may be used to conduct a program for 
international rehabilitation research, demonstration, and training for 
the purpose of developing new knowledge and methods in the 
rehabilitation of individuals with disabilities in the United States, 
cooperating with and assisting in developing and sharing information 
found useful in other nations in the rehabilitation of individuals with 
disabilities, and initiating a program to exchange experts and 
technical assistance in the field of rehabilitation of individuals with 
disabilities with other nations as a means of increasing the levels of 
skill of rehabilitation personnel.
    ``(7) Research grants may be used to conduct a research program 
concerning the use of existing telecommunications systems (including 
telephone, television, satellite, radio, and other similar systems) 
which have the potential for substantially improving service delivery 
methods, and the development of appropriate programing to meet the 
particular needs of individuals with disabilities.
    ``(8) Research grants may be used to conduct a program of joint 
projects with the National Institutes of Health, the National Institute 
of Mental Health, the Health Services Administration, the 
Administration on Aging, the National Science Foundation, the Veterans' 
Administration, the Department of Health and Human Services, the 
National Aeronautics and Space Administration, other Federal agencies, 
and private industry in areas of joint interest involving 
rehabilitation.
    ``(9) Research grants may be used to conduct a program of research 
related to the rehabilitation of children, or older individuals, who 
are individuals with disabilities, including older American Indians who 
are individuals with disabilities. Such research program may include 
projects designed to assist the adjustment of, or maintain as residents 
in the community, older workers who are individuals with disabilities 
on leaving the work force.
    ``(10) Research grants may be used to conduct a research program to 
develop and demonstrate innovative methods to attract and retain 
professionals to serve in rural areas in the rehabilitation of 
individuals with disabilities, including individuals with significant 
disabilities.
    ``(11) Research grants may be used to conduct a model research and 
demonstration project designed to assess the feasibility of 
establishing a center for producing and distributing to individuals who 
are deaf or hard of hearing captioned video cassettes providing a broad 
range of educational, cultural, scientific, and vocational programing.
    ``(12) Research grants may be used to conduct a model research and 
demonstration program to develop innovative methods of providing 
services for preschool age children who are individuals with 
disabilities, including the--
            ``(A) early intervention, assessment, parent counseling, 
        infant stimulation, early identification, diagnosis, and 
        evaluation of children who are individuals with significant 
        disabilities up to the age of five, with a special emphasis on 
        children who are individuals with significant disabilities up 
        to the age of three;
            ``(B) such physical therapy, language development, 
        pediatric, nursing, psychological, and psychiatric services as 
        are necessary for such children; and
            ``(C) appropriate services for the parents of such 
        children, including psychological and psychiatric services, 
        parent counseling, and training.
    ``(13) Research grants may be used to conduct a model research and 
training program under which model training centers shall be 
established to develop and use more advanced and effective methods of 
evaluating and addressing the employment needs of individuals with 
disabilities, including programs which--
            ``(A) provide training and continuing education for 
        personnel involved with the employment of individuals with 
        disabilities;
            ``(B) develop model procedures for testing and evaluating 
        the employment needs of individuals with disabilities;
            ``(C) develop model training programs to teach individuals 
        with disabilities skills which will lead to appropriate 
        employment;
            ``(D) develop new approaches for job placement of 
        individuals with disabilities, including new followup 
        procedures relating to such placement;
            ``(E) provide information services regarding education, 
        training, employment, and job placement for individuals with 
        disabilities; and
            ``(F) develop new approaches and provide information 
        regarding job accommodations, including the use of 
        rehabilitation engineering and assistive technology.
    ``(14) Research grants may be used to conduct a rehabilitation 
research program under which financial assistance is provided in order 
to--
            ``(A) test new concepts and innovative ideas;
            ``(B) demonstrate research results of high potential 
        benefits;
            ``(C) purchase prototype aids and devices for evaluation;
            ``(D) develop unique rehabilitation training curricula; and
            ``(E) be responsive to special initiatives of the Director.
No single grant under this paragraph may exceed $50,000 in any fiscal 
year and all payments made under this paragraph in any fiscal year may 
not exceed 5 percent of the amount available for this section to the 
National Institute on Disability and Rehabilitation Research in any 
fiscal year. Regulations and administrative procedures with respect to 
financial assistance under this paragraph shall, to the maximum extent 
possible, be expedited.
    ``(15) Research grants may be used to conduct studies of the 
rehabilitation needs of American Indian populations and of effective 
mechanisms for the delivery of rehabilitation services to Indians 
residing on and off reservations.
    ``(16) Research grants may be used to conduct a demonstration 
program under which one or more projects national in scope shall be 
established to develop procedures to provide incentives for the 
development, manufacturing, and marketing of orphan technological 
devices, including technology transfer concerning such devices, 
designed to enable individuals with disabilities to achieve 
independence and access to gainful employment.
    ``(17)(A) Research grants may be used to conduct a research program 
related to quality assurance in the area of rehabilitation technology.
    ``(B) Activities carried out under the research program may 
include--
            ``(i) the development of methodologies to evaluate 
        rehabilitation technology products and services and the 
        dissemination of the methodologies to consumers and other 
        interested parties;
            ``(ii) identification of models for service provider 
        training and evaluation and certification of the effectiveness 
        of the models;
            ``(iii) identification and dissemination of outcome 
        measurement models for the assessment of rehabilitation 
        technology products and services; and
            ``(iv) development and testing of research-based tools to 
        enhance consumer decisionmaking about rehabilitation technology 
        products and services.
    ``(C) The Director shall develop the quality assurance research 
program after consultation with representatives of all types of 
organizations interested in rehabilitation technology quality 
assurance.
    ``(18) Research grants may be used to provide for research and 
demonstration projects and related activities that explore the use and 
effectiveness of specific alternative or complementary medical 
practices for individuals with disabilities. Such projects and 
activities may include projects and activities designed to--
            ``(A) determine the use of specific alternative or 
        complementary medical practices among individuals with 
        disabilities and the perceived effectiveness of the practices;
            ``(B) determine the specific information sources, 
        decisionmaking methods, and methods of payment used by 
        individuals with disabilities who access alternative or 
        complementary medical services;
            ``(C) develop criteria to screen and assess the validity of 
        research studies of such practices for individuals with 
        disabilities; and
            ``(D) determine the effectiveness of specific alternative 
        or complementary medical practices that show promise for 
        promoting increased functioning, prevention of secondary 
        disabilities, or other positive outcomes for individuals with 
        certain types of disabilities, by conducting controlled 
        research studies.
    ``(c)(1) In carrying out evaluations of covered activities under 
this section, the Director is authorized to make arrangements for site 
visits to obtain information on the accomplishments of the projects.
    ``(2) The Director shall not make a grant under this section which 
exceeds $499,999 unless the peer review of the grant application has 
included a site visit.

               ``rehabilitation research advisory council

    ``Sec. 205. (a) Establishment.--Subject to the availability of 
appropriations, the Secretary shall establish in the Department of 
Education a Rehabilitation Research Advisory Council (referred to in 
this section as the `Council') composed of 12 members appointed by the 
Secretary.
    ``(b) Duties.--The Council shall advise the Director with respect 
to research priorities and the development and revision of the 5-year 
plan required by section 202(h).
    ``(c) Qualifications.--Members of the Council shall be generally 
representative of the community of rehabilitation professionals, the 
community of rehabilitation researchers, the community of individuals 
with disabilities, and the individuals' representatives. At least one-
half of the members shall be individuals with disabilities or the 
individuals' representatives.
    ``(d) Terms of Appointment.--
            ``(1) Length of term.--Each member of the Council shall 
        serve for a term of up to 3 years, determined by the Secretary, 
        except that--
                    ``(A) a member appointed to fill a vacancy 
                occurring prior to the expiration of the term for which 
                a predecessor was appointed, shall be appointed for the 
                remainder of such term; and
                    ``(B) the terms of service of the members initially 
                appointed shall be (as specified by the Secretary) for 
                such fewer number of years as will provide for the 
                expiration of terms on a staggered basis.
            ``(2) Number of terms.--No member of the Council may serve 
        more than two consecutive full terms. Members may serve after 
        the expiration of their terms until their successors have taken 
        office.
    ``(e)  Vacancies.--Any vacancy occurring in the membership of the 
Council shall be filled in the same manner as the original appointment 
for the position being vacated. The vacancy shall not affect the power 
of the remaining members to execute the duties of the Council.
    ``(f) Payment and Expenses.--
            ``(1) Payment.--Each member of the Council who is not an 
        officer or full-time employee of the Federal Government shall 
        receive a payment of $150 for each day (including travel time) 
        during which the member is engaged in the performance of duties 
        for the Council. All members of the Council who are officers or 
        full-time employees of the United States shall serve without 
        compensation in addition to compensation received for their 
        services as officers or employees of the United States.
            ``(2) Travel expenses.--Each member of the Council may 
        receive travel expenses, including per diem in lieu of 
        subsistence, as authorized by section 5703 of title 5, United 
        States Code, for employees serving intermittently in the 
        Government service, for each day the member is engaged in the 
        performance of duties away from the home or regular place of 
        business of the member.
    ``(g) Detail of Federal Employees.--On the request of the Council, 
the Secretary may detail, with or without reimbursement, any of the 
personnel of the Department of Education to the Council to assist the 
Council in carrying out its duties. Any detail shall not interrupt or 
otherwise affect the civil service status or privileges of the Federal 
employee.
    ``(h) Technical Assistance.--On the request of the Council, the 
Secretary shall provide such technical assistance to the Council as the 
Council determines to be necessary to carry out its duties.
    ``(i) Termination.--Section 14 of the Federal Advisory Committee 
Act (5 U.S.C. App.) shall not apply with respect to the Council.''.

SEC. 6. PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
              DEMONSTRATIONS.

    Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770 et seq.) 
is amended to read as follows:

    ``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND 
                             DEMONSTRATIONS

``SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF GRANTS AND 
              CONTRACTS.

    ``(a) Purpose.--It is the purpose of this title to authorize grants 
and contracts to--
            ``(1)(A) provide academic training to 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 independent living 
        services programs, and through client assistance programs; and
            ``(B) provide training to maintain and upgrade basic skills 
        and knowledge of personnel employed to provide state-of-the-art 
        service delivery and rehabilitation technology services;
            ``(2) conduct special projects and demonstrations that 
        expand and improve the provision of rehabilitation and other 
        services authorized under this Act, or that otherwise further 
        the purposes of this Act, including related research and 
        evaluation;
            ``(3) provide vocational rehabilitation services to 
        individuals with disabilities who are migrant or seasonal 
        farmworkers;
            ``(4) initiate recreational programs to provide 
        recreational activities and related experiences for individuals 
        with disabilities to aid such individuals in employment, 
        mobility, socialization, independence, and community 
        integration; and
            ``(5) provide training and information to individuals with 
        disabilities and the individuals' representatives, and other 
        appropriate parties to develop the skills necessary for 
        individuals with disabilities to gain access to the 
        rehabilitation system and workforce investment system and to 
        become active decisionmakers in the rehabilitation process.
    ``(b) Competitive Basis of Grants and Contracts.--The Secretary 
shall ensure that all grants and contracts are awarded under this title 
on a competitive basis.

``SEC. 302. TRAINING.

    ``(a) Grants and Contracts for Personnel Training.--
            ``(1) Authority.--The Commissioner shall make grants to, 
        and enter into contracts with, States and public or nonprofit 
        agencies and organizations (including institutions of higher 
        education) to pay part of the cost of projects to provide 
        training, traineeships, and related activities, including the 
        provision of technical assistance, that are designed to assist 
        in increasing the numbers of, and upgrading the skills of, 
        qualified personnel (especially rehabilitation counselors) who 
        are trained in providing vocational, medical, social, and 
        psychological rehabilitation services, who are trained to 
        assist individuals with communication and related disorders, 
        who are trained to provide other services provided under this 
        Act, to individuals with disabilities, and who may include--
                    ``(A) personnel specifically trained in providing 
                employment assistance to individuals with disabilities 
                through job development and job placement services;
                    ``(B) personnel specifically trained to identify, 
                assess, and meet the individual rehabilitation needs of 
                individuals with disabilities, including needs for 
                rehabilitation technology;
                    ``(C) personnel specifically trained to deliver 
                services to individuals who may benefit from receiving 
                independent living services;
                    ``(D) personnel specifically trained to deliver 
                services in the client assistance programs;
                    ``(E) personnel specifically trained to deliver 
                services, through supported employment programs, to 
                individuals with a most significant disability;
                    ``(F) personnel providing vocational rehabilitation 
                services specifically trained in the use of braille, 
                the importance of braille literacy, and in methods of 
                teaching braille; and
                    ``(G) personnel trained in performing other 
                functions necessary to the provision of vocational, 
                medical, social, and psychological rehabilitation 
                services, and other services provided under this Act.
            ``(2) Authority to provide scholarships.--Grants and 
        contracts under paragraph (1) may be expended for scholarships 
        and may include necessary stipends and allowances.
            ``(3) Related federal statutes.--In carrying out this 
        subsection, the Commissioner may make grants to and enter into 
        contracts with States and public or nonprofit agencies and 
        organizations, including institutions of higher education, to 
        furnish training regarding related Federal statutes (other than 
this Act).
            ``(4) Training for statewide workforce systems personnel.--
        The Commissioner may make grants to and enter into contracts 
        under this subsection with States and public or nonprofit 
        agencies and organizations, including institutions of higher 
        education, to furnish training to personnel providing services 
        to individuals with disabilities under the Workforce Investment 
        Partnership Act of 1998. Under this paragraph, personnel may be 
        trained--
                    ``(A) in evaluative skills to determine whether an 
                individual with a disability may be served by the State 
                vocational rehabilitation program or another component 
                of the statewide workforce investment system; or
                    ``(B) to assist individuals with disabilities 
                seeking assistance through one-stop customer service 
                centers established under section 315 of the Workforce 
                Investment Partnership Act of 1998.
            ``(5) Joint funding.--Training and other activities 
        provided under paragraph (4) for personnel may be jointly 
        funded with the Department of Labor, using funds made available 
        under title III of the Workforce Investment Partnership Act of 
        1998.
    ``(b) Grants and Contracts for Academic Degrees and Academic 
Certificate Granting Training Projects.--
            ``(1) Authority.--
                    ``(A) In general.--The Commissioner may make grants 
                to, and enter into contracts with, States and public or 
                nonprofit agencies and organizations (including 
                institutions of higher education) to pay part of the 
                costs of academic training projects to provide training 
                that leads to an academic degree or academic 
                certificate. In making such grants or entering into 
                such contracts, the Commissioner shall target funds to 
                areas determined under subsection (e) to have shortages 
                of qualified personnel.
                    ``(B) Types of projects.--Academic training 
                projects described in this subsection may include--
                            ``(i) projects to train personnel in the 
                        areas of vocational rehabilitation counseling, 
                        rehabilitation technology, rehabilitation 
                        medicine, rehabilitation nursing, 
                        rehabilitation social work, rehabilitation 
                        psychiatry, rehabilitation psychology, 
                        rehabilitation dentistry, physical therapy, 
                        occupational therapy, speech pathology and 
                        audiology, physical education, therapeutic 
                        recreation, community rehabilitation programs, 
                        or prosthetics and orthotics;
                            ``(ii) projects to train personnel to 
                        provide--
                                    ``(I) services to individuals with 
                                specific disabilities or individuals 
                                with disabilities who have specific 
                                impediments to rehabilitation, 
                                including individuals who are members 
                                of populations that are unserved or 
                                underserved by programs under this Act;
                                    ``(II) job development and job 
                                placement services to individuals with 
                                disabilities;
                                    ``(III) supported employment 
                                services, including services of 
                                employment specialists for individuals 
                                with disabilities;
                                    ``(IV) specialized services for 
                                individuals with significant 
                                disabilities; or
                                    ``(V) recreation for individuals 
                                with disabilities;
                            ``(iii) projects to train personnel in 
                        other fields contributing to the rehabilitation 
                        of individuals with disabilities; and
                            ``(iv) projects to train personnel in the 
                        use, applications, and benefits of 
                        rehabilitation technology.
            ``(2) Application.--No grant shall be awarded or contract 
        entered into under this subsection unless the applicant has 
        submitted to the Commissioner an application at such time, in 
        such form, in accordance with such procedures, and including 
        such information as the Secretary may require, including--
                    ``(A) 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;
                    ``(B) the identification of potential employers 
                that would meet the requirements of paragraph 
                (4)(A)(i); and
                    ``(C) an assurance that data on the employment of 
                graduates or trainees who participate in the project is 
                accurate.
            ``(3) Limitation.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), no grant or contract under this 
                subsection may be used to provide any one course of 
                study to an individual for a period of more than 4 
                years.
                    ``(B) Exception.--If a grant or contract recipient 
                under this subsection determines that an individual has 
                a disability which seriously affects the completion of 
                training under this subsection, the grant or contract 
                recipient may extend the period referred to in 
                subparagraph (A).
            ``(4) Required agreements.--
                    ``(A) In general.--A recipient of a grant or 
                contract under this subsection shall provide assurances 
                to the Commissioner that each individual who receives a 
                scholarship, for the first academic year after the date 
                of enactment of the Rehabilitation Act Amendments of 
                1998, utilizing funds provided under such grant or 
                contract shall enter into an agreement with the 
                recipient under which the individual shall--
                            ``(i) maintain employment--
                                    ``(I) with an employer that is a 
                                State rehabilitation or other agency or 
                                organization (including a professional 
                                corporation or practice group) that 
                                provides services to individuals with 
                                disabilities under this Act, or with an 
                                institution of higher education or 
                                other organization that conducts 
                                rehabilitation education, training, or 
                                research under this Act;
                                    ``(II) on a full- or part-time 
                                basis; and
                                    ``(III) for a period of not less 
                                than the full-time equivalent of 2 
                                years for each year for which 
                                assistance under this subsection was 
                                received by the individual, within a 
                                period, beginning after the recipient 
                                completes the training for which the 
                                scholarship was awarded, of not 
more than the sum of the number of years in the period described in 
this subclause and 2 additional years;
                            ``(ii) directly provide or administer 
                        services, conduct research, or furnish 
                        training, funded under this Act; and
                            ``(iii) repay all or part of the amount of 
                        any scholarship received under the grant or 
                        contract, plus interest, if the individual does 
                        not fulfill the requirements of clauses (i) and 
                        (ii), except that the Commissioner may by 
                        regulation provide for repayment exceptions and 
                        deferrals.
                    ``(B) Enforcement.--The Commissioner shall be 
                responsible for the enforcement of each agreement 
                entered into under subparagraph (A) upon the completion 
                of the training involved with respect to such 
                agreement.
    ``(c) Grants to Historically Black Colleges and Universities.--The 
Commissioner, in carrying out this section, shall make grants to 
Historically Black Colleges and Universities and other institutions of 
higher education whose minority student enrollment is at least 50 
percent of the total enrollment of the institution.
    ``(d) Application.--A grant may not be awarded to a State or other 
organization under this section unless the State or organization has 
submitted an application to the Commissioner at such time, in such 
form, in accordance with such procedures, and containing such 
information as the Commissioner may require, including a detailed 
description of strategies that will be utilized to recruit and train 
individuals 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 from linguistically and 
culturally diverse backgrounds, who are available to provide 
rehabilitation services.
    ``(e) Evaluation and Collection of Data.--The Commissioner shall 
evaluate the impact of the training programs conducted under this 
section, and collect information on the training needs of, and data on 
shortages of qualified personnel necessary to provide services to 
individuals with disabilities.
    ``(f) Grants for the Training of Interpreters.--
            ``(1) Authority.--
                    ``(A) In general.--For the purpose of training a 
                sufficient number of qualified interpreters to meet the 
                communications needs of individuals who are deaf or 
                hard of hearing, and individuals who are deaf-blind, 
                the Commissioner, acting through a Federal office 
                responsible for deafness and communicative disorders, 
                may award grants to public or private nonprofit 
                agencies or organizations to pay part of the costs--
                            ``(i) for the establishment of interpreter 
                        training programs; or
                            ``(ii) to enable such agencies or 
                        organizations to provide financial assistance 
                        for ongoing interpreter training programs.
                    ``(B) Geographic areas.--The Commissioner shall 
                award grants under this subsection for programs in 
                geographic areas throughout the United States that the 
                Commissioner considers appropriate to best carry out 
                the objectives of this section.
                    ``(C) Priority.--In awarding grants under this 
                subsection, the Commissioner shall give priority to 
                public or private nonprofit agencies or organizations 
                with existing programs that have a demonstrated 
                capacity for providing interpreter training services.
                    ``(D) Funding.--The Commissioner may award grants 
                under this subsection through the use of--
                            ``(i) amounts appropriated to carry out 
                        this section; or
                            ``(ii) pursuant to an agreement with the 
                        Director of the Office of the Special Education 
                        Program (established under section 603 of the 
                        Individuals with Disabilities Education Act (as 
                        amended by section 101 of the Individuals with 
                        Disabilities Education Act Amendments of 1997 
                        (Public Law 105-17))), amounts appropriated 
                        under section 686 of the Individuals with 
                        Disabilities Education Act.
            ``(2) Application.--A grant may not be awarded to an agency 
        or organization under paragraph (1) unless the agency or 
        organization has submitted an application to the Commissioner 
        at such time, in such form, in accordance with such procedures, 
        and containing such information as the Commissioner may 
        require, including--
                    ``(A) a description of the manner in which an 
                interpreter training program will be developed and 
                operated during the 5-year period following the date on 
                which a grant is received by the applicant under this 
                subsection;
                    ``(B) a demonstration of the applicant's capacity 
                or potential for providing training for interpreters 
                for individuals who are deaf or hard of hearing, and 
                individuals who are deaf-blind;
                    ``(C) assurances that any interpreter trained or 
                retrained under a program funded under the grant will 
                meet such minimum standards of competency as the 
                Commissioner may establish for purposes of this 
                subsection; and
            ``(D) such other information as the Commissioner may 
        require.
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2004.
    ``(h) Provision of Information.--The Commissioner, subject to the 
provisions of section 306, may require that recipients of grants or 
contracts under this section provide information, including data, with 
regard to the impact of activities funded under this section.

``SEC. 303. SPECIAL DEMONSTRATION PROGRAM.

    ``(a) Authority.--The Commissioner, subject to the provisions of 
section 306, may award grants or contracts to eligible entities to pay 
all or part of the cost of programs that expand and improve the 
provision of rehabilitation and other services authorized under this 
Act or that further the purposes of the Act, including related research 
and evaluation activities.
    ``(b) Eligible Entities and Terms and Conditions.--
            ``(1) Eligible entities.--To be eligible to receive a grant 
        or contract under subsection (a), an entity shall be a State 
        vocational rehabilitation agency, community rehabilitation 
        program, Indian tribe or tribal organization, or other public 
        or nonprofit agency or organization, or as the Commissioner 
        determines appropriate, a for-profit organization. The 
        Commissioner may limit competitions to 1 or more types of 
        organizations described in this paragraph.
            ``(2) Terms and conditions.--Awards under this section 
        shall contain such terms and conditions as the Commissioner may 
        require.
    ``(c) Application.--An eligible entity that desires to receive an 
award under this section shall submit an application to the Secretary 
at such time, in such form, and containing such information and 
assurances as the Commissioner may require, including, if the 
Commissioner determines appropriate, a description of how the proposed 
project or demonstration program--
            ``(1) is based on current research findings, which may 
        include research conducted by the National Institute on 
        Disability and Rehabilitation Research, the National Institutes 
        of Health, and other public or private organizations; and
            ``(2) is of national significance.
    ``(d) Types of Projects.--The programs that may be funded under 
this section include--
            ``(1) special projects and demonstrations of service 
        delivery;
            ``(2) model demonstration projects;
            ``(3) technical assistance projects;
            ``(4) systems change projects;
            ``(5) special studies and evaluations; and
            ``(6) dissemination and utilization activities.
    ``(e) Priority for Competitions.--
            ``(1) In general.--In announcing competitions for grants 
        and contracts under this section, the Commissioner shall give 
        priority consideration to--
                    ``(A) projects to provide training, information, 
                and technical assistance that will enable individuals 
                with disabilities and the individuals' representatives, 
                to participate more effectively in meeting the 
                vocational, independent living, and rehabilitation 
                needs of the individuals with disabilities;
                    ``(B) special projects and demonstration programs 
                of service delivery for adults who are either low-
                functioning and deaf or low-functioning and hard of 
                hearing;
                    ``(C) innovative methods of promoting consumer 
                choice in the rehabilitation process;
                    ``(D) 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; and
                    ``(E) model transitional planning services for 
                youths with disabilities;
            ``(2) Eligibility and coordination.--
                    ``(A) Eligibility.--Eligible applicants for grants 
                and contracts under this section for projects described 
                in paragraph (1)(A) include--
                            ``(i) Parent Training and Information 
                        Centers funded under section 682 of 
the Individuals with Disabilities Education Act (as amended by section 
101 of the Individuals with Disabilities Education Act Amendments of 
1997 (Public Law 105-17));
                            ``(ii) organizations that meet the 
                        definition of a parent organization in section 
                        682 of such Act; and
                            ``(iii) private nonprofit organizations 
                        assisting parent training and information 
                        centers.
                    ``(B) Coordination.--Recipients of grants and 
                contracts under this section for projects described in 
                paragraph (1)(A) shall, to the extent practicable, 
                coordinate training and information activities with 
                Centers for Independent Living.
            ``(3) Additional competitions.--In announcing competitions 
        for grants and contracts under this section, the Commissioner 
        may require that applicants address 1 or more of the following:
                    ``(A) Age ranges.
                    ``(B) Types of disabilities.
                    ``(C) Types of services.
                    ``(D) Models of service delivery.
                    ``(E) Stage of the rehabilitation process.
                    ``(F) The needs of--
                            ``(i) underserved populations;
                            ``(ii) unserved and underserved areas;
                            ``(iii) individuals with significant 
                        disabilities;
                            ``(iv) low-incidence disability 
                        populations; and
                            ``(v) individuals residing in federally 
                        designated empowerment zones and enterprise 
                        communities.
                    ``(G) Expansion of employment opportunities for 
                individuals with disabilities.
                    ``(H) Systems change projects to promote meaningful 
                access of individual with disabilities to employment 
                related services under the Workforce Investment 
                Partnership Act of 1998 and under other Federal laws.
                    ``(I) Innovative methods of promoting the 
                achievement of high-quality employment outcomes.
                    ``(J) The demonstration of the effectiveness of 
                early intervention activities in improving employment 
                outcomes.
                    ``(K) Alternative methods of providing affordable 
                transportation services to individuals with 
                disabilities who are employed, seeking employment, or 
                receiving vocational rehabilitation services from 
                public or private organizations and who reside in 
                geographic areas in which public transportation or 
                paratransit service is not available.
    ``(f) Use of Funds for Continuation Awards.--The Commissioner may 
use funds made available to carry out this section for continuation 
awards for projects that were funded under sections 12 and 311 (as such 
sections were in effect on the day prior to the date of the enactment 
of the Rehabilitation Act Amendments of 1998).
    ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2004.

``SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.

    ``(a) Grants.--
            ``(1) Authority.--The Commissioner, subject to the 
        provisions of section 306, may make grants to eligible entities 
        to pay up to 90 percent of the cost of projects or 
        demonstration programs for the provision of vocational 
        rehabilitation services to individuals with disabilities who 
        are migrant or seasonal farmworkers, as determined in 
        accordance with rules prescribed by the Secretary of Labor, and 
        to the family members who are residing with such individuals 
        (whether or not such family members are individuals with 
        disabilities).
            ``(2) Eligible entities.--To be eligible to receive a grant 
        under paragraph (1), an entity shall be--
                    ``(A) a State designated agency;
                    ``(B) a nonprofit agency working in collaboration 
                with a State agency described in subparagraph (A); or
                    ``(C) a local agency working in collaboration with 
                a State agency described in subparagraph (A).
            ``(3) Maintenance and transportation.--
                    ``(A) In general.--Amounts provided under a grant 
                under this section may be used to provide for the 
                maintenance of and transportation for individuals and 
                family members described in paragraph (1) as necessary 
                for the rehabilitation of such individuals.
                    ``(B) Requirement.--Maintenance payments under this 
                paragraph shall be provided in a manner consistent with 
                any maintenance payments provided to other individuals 
                with disabilities in the State under this Act.
            ``(4) Assurance of cooperation.--To be eligible to receive 
        a grant under this section an entity shall provide assurances 
        (satisfactory to the Commissioner) that in the provision of 
        services under the grant there will be appropriate cooperation 
        between the grantee and other public or nonprofit agencies and 
        organizations having special skills and experience in the 
        provision of services to migrant or seasonal farmworkers or 
        their families.
            ``(5) Coordination with other programs.--The Commissioner 
        shall administer this section in coordination with other 
        programs serving migrant and seasonal farmworkers, including 
        programs under title I of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 6301 et seq.), section 330 of 
        the Public Health Service Act (42 U.S.C. 254b), the Migrant and 
        Seasonal Agricultural Worker Protection Act (29 U.S.C. 1801 et 
        seq.), and the Workforce Investment Partnership Act of 1998.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out this section, 
for each of the fiscal years 1998 through 2004.

``SEC. 305. RECREATIONAL PROGRAMS.

    ``(a) Grants.--
            ``(1) Authority.--
                    ``(A) In general.--The Commissioner, subject to the 
                provisions of section 306, shall make grants to States, 
                public agencies, and nonprofit private organizations to 
                pay the Federal share of the cost of the establishment 
                and operation of recreation programs to provide 
                individuals with disabilities with recreational 
                activities and related experiences to aid in the 
                employment, mobility, socialization, independence, and 
                community integration of such individuals.
                    ``(B) Recreation programs.--The recreation programs 
                that may be funded using assistance provided under a 
                grant under this section may include vocational skills 
                development, leisure education, leisure networking, 
                leisure resource development, physical education and 
                sports, scouting and camping, 4-H activities, music, 
                dancing, handicrafts, art, and homemaking. When 
                possible and appropriate, such programs and activities 
                should be provided in settings with peers who are not 
                individuals with disabilities.
                    ``(C) Design of program.--Programs and activities 
                carried out under this section shall be designed to 
                demonstrate ways in which such programs assist in 
                maximizing the independence and integration of 
                individuals with disabilities.
            ``(2) Maximum term of grant.--A grant under this section 
        shall be made for a period of not more than 3 years.
            ``(3) Availability of non grant resources.--
                    ``(A) In general.--A grant may not be made to an 
                applicant under this section unless the applicant 
                provides assurances that, with respect to costs of the 
                recreation program to be carried out under the grant, 
                the applicant, to the maximum extent practicable, will 
                make available non-Federal resources (in cash or in-
                kind) to pay the non-Federal share of such costs.
                    ``(B) Federal share.--The Federal share of the 
                costs of the recreation programs carried out under this 
                section shall be--
                            ``(i) with respect to the first year in 
                        which assistance is provided under a grant 
                        under this section, 100 percent;
                            ``(ii) with respect to the second year in 
                        which assistance is provided under a grant 
                        under this section, 75 percent; and
                            ``(iii) with respect to the third year in 
                        which assistance is provided under a grant 
                        under this section, 50 percent.
            ``(4) Application.--To be eligible to receive a grant under 
        this section, a State, agency, or organization shall submit an 
        application to the Commissioner at such time, in such manner, 
        and containing such information as the Commissioner may 
        require, including a description of--
                    ``(A) the manner in which the findings and results 
                of the project to be funded under the grant, 
                particularly information that facilitates the 
                replication of the results of such projects, will be 
                made generally available; and
                    ``(B) the manner in which the service program 
                funded under the grant will be continued after Federal 
                assistance ends.
            ``(5) Level of services.--Recreation programs funded under 
        this section shall maintain, at a minimum, the same level of 
services over a 3-year project period.
            ``(6) Reports by grantees.--
                    ``(A) Requirement.--The Commissioner shall require 
                that each recipient of a grant under this section 
                annually prepare and submit to the Commissioner a 
                report concerning the results of the activities funded 
                under the grant.
                    ``(B) Limitation.--The Commissioner may not make 
                financial assistance available to a grant recipient for 
                a subsequent year until the Commissioner has received 
                and evaluated the annual report of the recipient under 
                subparagraph (A) for the current year.
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section, such sums as may be necessary 
for each of the fiscal years 1998 through 2004.

``SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.

    ``The Commissioner may require that recipients of grants under this 
title submit information, including data, as determined by the 
Commissioner to be necessary to measure project outcomes and 
performance, including any data needed to comply with the Government 
Performance and Results Act.''.

SEC. 7. NATIONAL COUNCIL ON DISABILITY.

    Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780 et seq.) 
is amended to read as follows:

               ``TITLE IV--NATIONAL COUNCIL ON DISABILITY

           ``establishment of national council on disability

    ``Sec. 400. (a)(1)(A) There is established within the Federal 
Government a National Council on Disability (hereinafter in this title 
referred to as the `National Council'), which shall be composed of 
fifteen members appointed by the President, by and with the advice and 
consent of the Senate.
    ``(B) The President shall select members of the National Council 
after soliciting recommendations from representatives of--
            ``(i) organizations representing a broad range of 
        individuals with disabilities; and
            ``(ii) organizations interested in individuals with 
        disabilities.
    ``(C) The members of the National Council shall be individuals with 
disabilities, parents or guardians of individuals with disabilities, or 
other individuals who have substantial knowledge or experience relating 
to disability policy or programs. The members of the National Council 
shall be appointed so as to be representative of individuals with 
disabilities, national organizations concerned with individuals with 
disabilities, providers and administrators of services to individuals 
with disabilities, individuals engaged in conducting medical or 
scientific research relating to individuals with disabilities, business 
concerns, and labor organizations. A majority of the members of the 
National Council shall be individuals with disabilities. The members of 
the National Council shall be broadly representative of minority and 
other individuals and groups.
    ``(2) The purpose of the National Council is to promote policies, 
programs, practices, and procedures that--
            ``(A) guarantee equal opportunity for all individuals with 
        disabilities, regardless of the nature or severity of the 
        disability; and
            ``(B) empower individuals with disabilities to achieve 
        economic self-sufficiency, independent living, and inclusion 
        and integration into all aspects of society.
    ``(b)(1) Each member of the National Council shall serve for a term 
of 3 years, except that the terms of service of the members initially 
appointed after the date of enactment of the Rehabilitation, 
Comprehensive Services, and Developmental Disabilities Amendments of 
1978 shall be (as specified by the President) for such fewer number of 
years as will provide for the expiration of terms on a staggered basis.
    ``(2)(A) No member of the National Council may serve more than two 
consecutive full terms beginning on the date of commencement of the 
first full term on the Council. Members may serve after the expiration 
of their terms until their successors have taken office.
    ``(B) As used in this paragraph, the term `full term' means a term 
of 3 years.
    ``(3) Any member appointed to fill a vacancy occurring before the 
expiration of the term for which such member's predecessor was 
appointed shall be appointed only for the remainder of such term.
    ``(c) The President shall designate the Chairperson from among the 
members appointed to the National Council. The National Council shall 
meet at the call of the Chairperson, but not less often than four times 
each year.
    ``(d) Eight members of the National Council shall constitute a 
quorum and any vacancy in the National Council shall not affect its 
power to function.

                      ``duties of national council

    ``Sec. 401. (a) The National Council shall--
            ``(1) provide advice to the Director with respect to the 
        policies and conduct of the National Institute on Disability 
        and Rehabilitation Research, including ways to improve research 
        concerning individuals with disabilities and the methods of 
        collecting and disseminating findings of such research;
            ``(2) provide advice to the Commissioner with respect to 
        the policies of and conduct of the Rehabilitation Services 
        Administration;
            ``(3) advise the President, the Congress, the Commissioner, 
        the appropriate Assistant Secretary of the Department of 
        Education, and the Director of the National Institute on 
        Disability and Rehabilitation Research on the development of 
        the programs to be carried out under this Act;
            ``(4) provide advice regarding priorities for the 
        activities of the Interagency Disability Coordinating Council 
        and review the recommendations of such Council for legislative 
        and administrative changes to ensure that such recommendations 
        are consistent with the purposes of the Council to promote the 
        full integration, independence, and productivity of individuals 
        with disabilities;
            ``(5) review and evaluate on a continuing basis--
                    ``(A) policies, programs, practices, and procedures 
                concerning individuals with disabilities conducted or 
                assisted by Federal departments and agencies, including 
                programs established or assisted under this Act or 
                under the Developmental Disabilities Assistance and 
                Bill of Rights Act; and
                    ``(B) all statutes and regulations pertaining to 
                Federal programs which assist such individuals with 
                disabilities;
        in order to assess the effectiveness of such policies, 
        programs, practices, procedures, statutes, and regulations in 
        meeting the needs of individuals with disabilities;
            ``(6) assess the extent to which such policies, programs, 
        practices, and procedures facilitate or impede the promotion of 
        the policies set forth in subparagraphs (A) and (B) of section 
        400(a)(2);
            ``(7) gather information about the implementation, 
        effectiveness, and impact of the Americans with Disabilities 
        Act of 1990 (42 U.S.C. 12101 et seq.);
            ``(8) make recommendations to the President, the Congress, 
        the Secretary, the Director of the National Institute on 
        Disability and Rehabilitation Research, and other officials of 
        Federal agencies or other Federal entities, respecting ways to 
        better promote the policies set forth in section 400(a)(2);
            ``(9) provide to the Congress on a continuing basis advice, 
        recommendations, legislative proposals, and any additional 
        information which the National Council or the Congress deems 
        appropriate; and
            ``(10) review and evaluate on a continuing basis new and 
        emerging disability policy issues affecting individuals with 
        disabilities at the international, Federal, State, and local 
        levels, and in the private sector, including the need for and 
        coordination of adult services, access to personal assistance 
        services, school reform efforts and the impact of such efforts 
        on individuals with disabilities, access to health care, and 
        policies that operate as disincentives for the individuals to 
        seek and retain employment.
    ``(b)(1) Not later than July 26, 1998, and annually thereafter, the 
National Council shall prepare and submit to the President and the 
appropriate committees of the Congress a report entitled `National 
Disability Policy: A Progress Report'.
    ``(2) The report shall assess the status of the Nation in achieving 
the policies set forth in section 400(a)(2), with particular focus on 
the new and emerging issues impacting on the lives of individuals with 
disabilities. The report shall present, as appropriate, available data 
on health, housing, employment, insurance, transportation, recreation, 
training, prevention, early intervention, and education. The report 
shall include recommendations for policy change.
    ``(3) In determining the issues to focus on and the findings, 
conclusions, and recommendations to include in the report, the National 
Council shall seek input from the public, particularly individuals with 
disabilities, representatives of organizations representing a broad 
range of individuals with disabilities, and organizations and agencies 
interested in individuals with disabilities.

               ``compensation of national council members

    ``Sec. 402. (a) Members of the National Council shall be entitled 
to receive compensation at a rate equal to the rate of pay for level 4 
of the Senior Executive Service Schedule under section 5382 of title 5, 
United States Code, including travel time, for each day they are 
engaged in the performance of their duties as members of the National 
Council.
    ``(b) Members of the National Council who are full-time officers or 
employees of the United States shall receive no additional pay on 
account of their service on the National Council except for 
compensation for travel expenses as provided under subsection (c) of 
this section.
    ``(c) While away from their homes or regular places of business in 
the performance of services for the National Council, members of the 
National Council shall be allowed travel expenses, including per diem 
in lieu of subsistence, in the same manner as persons employed 
intermittently in the Government service are allowed expenses under 
section 5703 of title 5, United States Code.

                      ``staff of national council

    ``Sec. 403. (a)(1) The Chairperson of the National Council may 
appoint and remove, without regard to the provisions of title 5, United 
States Code, governing appointments, the provisions of chapter 75 of 
such title (relating to adverse actions), the provisions of chapter 77 
of such title (relating to appeals), or the provisions of chapter 51 
and subchapter III of chapter 53 of such title (relating to 
classification and General Schedule pay rates), an Executive Director 
to assist the National Council to carry out its duties. The Executive 
Director shall be appointed from among individuals who are experienced 
in the planning or operation of programs for individuals with 
disabilities.
    ``(2) The Executive Director is authorized to hire technical and 
professional employees to assist the National Council to carry out its 
duties.
    ``(b)(1) The National Council may procure temporary and 
intermittent services to the same extent as is authorized by section 
3109(b) of title 5, United States Code (but at rates for individuals 
not to 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).
    ``(2) The National Council may--
            ``(A) accept voluntary and uncompensated services, 
        notwithstanding the provisions of section 1342 of title 31, 
        United States Code;
            ``(B) in the name of the Council, solicit, accept, employ, 
        and dispose of, in furtherance of this Act, any money or 
        property, real or personal, or mixed, tangible or nontangible, 
        received by gift, devise, bequest, or otherwise; and
            ``(C) enter into contracts and cooperative agreements with 
        Federal and State agencies, private firms, institutions, and 
        individuals for the conduct of research and surveys, 
        preparation of reports and other activities necessary to the 
        discharge of the Council's duties and responsibilities.
    ``(3) Not more than 10 per centum of the total amounts available to 
the National Council in each fiscal year may be used for official 
representation and reception.
    ``(c) The Administrator of General Services shall provide to the 
National Council on a reimbursable basis such administrative support 
services as the Council may request.
    ``(d)(1) It shall be the duty of the Secretary of the Treasury to 
invest such portion of the amounts made available under subsection 
(a)(2)(B) as is not, in the Secretary's judgment, required to meet 
current withdrawals. Such investments may be made only in interest-
bearing obligations of the United States or in obligations guaranteed 
as to both principal and interest by the United States.
    ``(2) The amounts described in paragraph (1), and the interest on, 
and the proceeds from the sale or redemption of, the obligations 
described in paragraph (1) shall be available to the National Council 
to carry out this title.

              ``administrative powers of national council

    ``Sec. 404. (a) The National Council may prescribe such bylaws and 
rules as may be necessary to carry out its duties under this title.
    ``(b) The National Council may hold such hearings, sit and act at 
such times and places, take such testimony, and receive such evidence 
as it deems advisable.
    ``(c) The National Council may appoint advisory committees to 
assist the National Council in carrying out its duties. The members 
thereof shall serve without compensation.
    ``(d) The National Council may use the United States mails in the 
same manner and upon the same conditions as other departments and 
agencies of the United States.
    ``(e) The National Council may use, with the consent of the 
agencies represented on the Interagency Disability Coordinating 
Council, and as authorized in title V, such services, personnel, 
information, and facilities as may be needed to carry out its duties 
under this title, with or without reimbursement to such agencies.

                   ``authorization of appropriations

    ``Sec. 405. There are authorized to be appropriated to carry out 
this title such sums as may be necessary for each of the fiscal years 
1998 through 2004.''.

SEC. 8. RIGHTS AND ADVOCACY.

    (a) Conforming Amendments to Rights and Advocacy Provisions.--
            (1) Employment.--Section 501 (29 U.S.C. 791) is amended--
                    (A) in the third sentence of subsection (a), by 
                striking ``President's Committees on Employment of the 
                Handicapped'' and inserting ``President's Committees on 
                Employment of People With Disabilities''; and
                    (B) in subsection (e), by striking ``individualized 
                written rehabilitation program'' and inserting 
                ``individualized rehabilitation employment plan''.
            (2) Access board.--Section 502 (29 U.S.C. 792) is amended--
                    (A) in subsection (b)--
                            (i) in paragraph (9), by striking ``; and'' 
                        and inserting a semicolon;
                            (ii) in paragraph (10), by striking the 
                        period and inserting ``; and''; and
                            (iii) by adding at the end the following:
            ``(11) carry out the responsibilities specified for the 
        Access Board in section 508'';
                    (B) in subsection (d)(2)(A), by inserting before 
                the semicolon the following: ``and section 
                508(d)(2)(C)'';
                    (C) in subsection (g)(2), by striking ``Committee 
                on Education and Labor'' and inserting ``Committee on 
                Education and the Workforce''; and
                    (D) in subsection (i), by striking ``fiscal years 
                1993 through 1997'' and inserting ``fiscal years 1998 
                through 2004''.
            (3)Federal grants and contracts.--Section 504(a) (29 U.S.C. 
        ) is amended in the first sentence by striking ``section 7(8)'' 
        and inserting ``section 7(20)''.
            (4) Secretarial responsibilities.--Section 506(a) (29 
        U.S.C. 794b(a)) is amended--
                    (A) by striking the second sentence and inserting 
                the following: ``Any concurrence of the Access Board 
                under paragraph (2) shall reflect its consideration of 
                cost studies carried out by States.''; and
                    (B) in the second sentence of subsection (c), by 
                striking ``provided under this paragraph'' and 
                inserting ``provided under this subsection''.
    (b) Electronic and Information Technology Regulations.--Section 508 
(29 U.S.C. 794d) is amended to read as follows:

``SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY REGULATIONS.

    ``(a) Definition.--In this section, the term `electronic and 
information technology' includes--
            ``(1) any equipment, software, interface system, operating 
        system, or interconnected system or subsystem of equipment, 
        whether or not accessed remotely, that is used in the 
        acquisition, storage, manipulation, management, movement, 
        control, display, switching, interchange, transmission, or 
        reception of data or information; and
            ``(2) any related service (including a support service) and 
        any related resource.
    ``(b) Promulgation of Rules and Regulations.--
            ``(1) Procurement, maintenance, and use of electronic and 
        information technology.--Consistent with paragraph (2), each 
        Federal agency shall procure, maintain, and use electronic and 
        information technology that allows, regardless of the type of 
        medium of the technology, individuals with disabilities to 
        produce information and data, and have access to information 
        and data, comparable to the information and data, and access, 
        respectively, of individuals who are not individuals with 
        disabilities.
            ``(2) Regulations.--
                    ``(A) In general.--Not later than 1 year after the 
                date of enactment of the Rehabilitation Act Amendments 
                of 1998, the Access Board, after consultation with the 
                Secretary of Education, the Administrator of the 
                General Services Administration, and the head of any 
                other Federal agency that the Access Board may 
                determine to be appropriate, and after consultation 
                with the electronic and information technology industry 
                and appropriate public or nonprofit agencies or 
                organizations, shall issue regulations, including 
                criteria for procurement of accessible electronic and 
                information technology, to implement this section.
                    ``(B) Criteria.--The Access Board shall consult 
                with the Director of the National Institute on 
                Disability and Rehabilitation Research and the heads of 
                other Federal agencies that conduct applicable 
                research, regarding relevant research findings to 
                assist the Access Board in developing and updating the 
                criteria for procurement of accessible technology 
                required under subparagraph (A).
                    ``(C) Reviews and amendments.--The Access Board 
                shall review and amend the regulations periodically to 
                reflect technological advances or changes in electronic 
                and information technology.
    ``(c) Technical Assistance.--The Access Board shall provide 
technical assistance to individuals and Federal agencies concerning the 
rights and responsibilities provided under this section. The 
Administrator of the General Services Administration shall provide 
technical assistance to Federal agencies concerning the rights and 
responsibilities provided under this section, in coordination with the 
activities of the Access Board.
    ``(d) Compliance.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of the Rehabilitation Act Amendments of 1998, the 
Access Board shall establish, by regulation issued under subsection 
(b), procedures for ensuring the compliance of Federal agencies with 
this section (including the regulation).
            ``(2) Procedures.--At a minimum the regulation shall 
        establish procedures by which--
                    ``(A) the head of each Federal agency shall assess 
                the compliance of the agency with this section and 
                report periodically to the Access Board and the 
                Director of the Office of Management and Budget on such 
                compliance;
                    ``(B) any aggrieved person may file a complaint 
                with the Access Board regarding noncompliance by a 
                Federal agency with this section; and
                    ``(C) the Access Board may, after providing notice 
                and an opportunity for a hearing, issue an order 
                requiring compliance with this section, which shall be 
                final and binding on the affected Federal agency.
            ``(3) Office of management and budget oversight.--
                    ``(A) Oversight and coordination.--The Director of 
                the Office of Management and Budget shall oversee and 
                coordinate the procurement, financial management, 
                information, and regulatory policies of the executive 
                branch of the Federal Government relating to electronic 
                and information technology.
                    ``(B) Issuance of policies.--In issuing circulars, 
                bulletins, directives, memoranda, and other policies 
                affecting the procurement, maintenance, and use of 
                electronic and information technology, by Federal 
                agencies, as appropriate, the Director of the Office of 
                Management and Budget shall require compliance with 
                this section, including the regulations and criteria 
                described in subsection (b).
    ``(e) Relationship to Other Laws.--This section shall not be 
construed to limit a remedy, right, or procedure available under any 
other provision of Federal law (including title V and the Americans 
with Disabilities Act of 1990), or State or local law (including State 
common law) that provides greater or equal protection for the rights of 
individuals with disabilities.''.
    (c) Protection and Advocacy of Individual Rights.--Section 509 (29 
U.S.C. 794e) is amended to read as follows:

``SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.

    ``(a) Purpose.--The purpose of this section is to support a system 
in each State to protect the legal and human rights of individuals with 
disabilities who--
            ``(1) need services that are beyond the scope of services 
        authorized to be provided by the client assistance program 
        under section 112; and
            ``(2) are ineligible for protection and advocacy programs 
        under part C of the Developmental Disabilities Assistance and 
        Bill of Rights Act (42 U.S.C. 6041 et seq.) because the 
        individuals do not have a developmental disability, as defined 
        in section 102 of such Act (42 U.S.C. 6002) and the Protection 
        and Advocacy for Mentally Ill Individuals Act of 1986 (42 
        U.S.C. 10801 et seq.) because the individuals are not 
        individuals with mental illness, as defined in section 102 of 
        such Act (42 U.S.C. 10802).
    ``(b) Appropriations Less Than $5,500,000.--For any fiscal year in 
which the amount appropriated to carry out this section is less than 
$5,500,000, the Commissioner may make grants from such amount to 
eligible systems within States to plan for, develop outreach strategies 
for, and carry out protection and advocacy programs authorized under 
this section for individuals with disabilities who meet the 
requirements of paragraphs (1) and (2) of subsection (a).
    ``(c) Appropriations of $5,500,000 or More.--
            ``(1) Reservations.--
                    ``(A) Technical assistance.--For any fiscal year in 
                which the amount appropriated to carry out this section 
                equals or exceeds $5,500,000, the Commissioner shall 
                set aside not less than 1.8 percent and not more than 
                2.2 percent of the amount to provide training and 
                technical assistance to the systems established under 
                this section.
                    ``(B) Grant for the eligible system serving the 
                american indian consortium.--For any fiscal year in 
                which the amount appropriated to carry out this section 
                equals or exceeds $10,500,000, the Commissioner shall 
                reserve a portion, and use the portion to make a grant 
                for the eligible system serving the American Indian 
                consortium. The Commission shall make the grant in an 
                amount of not less than $50,000 for the fiscal year.
            ``(2) Allotments.--For any such fiscal year, after the 
        reservations required by paragraph (1) have been made, the 
        Commissioner shall make allotments from the remainder of such 
        amount in accordance with paragraph (3) to eligible systems 
        within States to enable such systems to carry out protection 
        and advocacy programs authorized under this section for such 
        individuals.
            ``(3) Systems within states.--
                    ``(A) Population basis.--Except as provided in 
                subparagraph (B), from such remainder for each such 
                fiscal year, the Commissioner shall make an allotment 
                to the eligible system within a State of an amount 
                bearing the same ratio to such remainder as the 
                population of the State bears to the population of all 
                States.
                    ``(B) Minimums.--Subject to the availability of 
                appropriations to carry out this section, and except as 
                provided in paragraph (4), the allotment to any system 
                under subparagraph (A) shall be not less than $100,000 
                or one-third of one percent of the remainder for the 
                fiscal year for which the allotment is made, whichever 
                is greater, and the allotment to any system under this 
                section for any fiscal year that is less than $100,000 
                or one-third of one percent of such remainder shall be 
                increased to the greater of the two amounts.
            ``(4) Systems within other jurisdictions.--
                    ``(A) In general.--For the purposes of paragraph 
                (3)(B), Guam, American Samoa, the United States Virgin 
                Islands, and the Commonwealth of the Northern Mariana 
                Islands shall not be considered to be States.
                    ``(B) Allotment.--The eligible system within a 
                jurisdiction described in subparagraph (A) shall be 
                allotted under paragraph (3)(A) not less than $50,000 
                for the fiscal year for which the allotment is made.
            ``(5) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total amount 
        appropriated to carry out this section exceeds the total amount 
        appropriated to carry out this section for the preceding fiscal 
        year, the Commissioner shall increase each of the minimum 
        grants or allotments under paragraphs (1)(B), (3)(B), and 
        (4)(B) by a percentage that shall not exceed the percentage 
        increase in the total amount appropriated to carry out this 
        section between the preceding fiscal year and the fiscal year 
        involved.
    ``(d) Proportional Reduction.--To provide minimum allotments to 
systems within States (as increased under subsection (c)(5)) under 
subsection (c)(3)(B), or to provide minimum allotments to systems 
within States (as increased under subsection (c)(5)) under subsection 
(c)(4)(B), the Commissioner shall proportionately reduce the allotments 
of the remaining systems within States under subsection (c)(3), with 
such adjustments as may be necessary to prevent the allotment of any 
such remaining system within a State from being reduced to less than 
the minimum allotment for a system within a State (as increased under 
subsection (c)(5)) under subsection (c)(3)(B), or the minimum allotment 
for a State (as increased under subsection (c)(5)) under subsection 
(c)(4)(B), as appropriate.
    ``(e) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a system within a State for any fiscal year 
described in subsection (c)(1) will not be expended by such system in 
carrying out the provisions of this section, the Commissioner shall 
make such amount available for carrying out the provisions of this 
section to one or more of the systems that the Commissioner determines 
will be able to use additional amounts during such year for carrying 
out such provisions. Any amount made available to a system for any 
fiscal year pursuant to the preceding sentence shall, for the purposes 
of this section, be regarded as an increase in the allotment of the 
system (as determined under the preceding provisions of this section) 
for such year.
    ``(f) Application.--In order to receive assistance under this 
section, an eligible system shall submit an application to the 
Commissioner, at such time, in such form and manner, and containing 
such information and assurances as the Commissioner determines 
necessary to meet the requirements of this section, including 
assurances that the eligible system will--
            ``(1) have in effect a system to protect and advocate the 
        rights of individuals with disabilities;
            ``(2) have the same general authorities, including access 
        to records and program income, as are set forth in part C of 
        the Developmental Disabilities Assistance and Bill of Rights 
        Act (42 U.S.C. 6041 et seq.);
            ``(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 such individuals 
        within the State or the American Indian consortium who are 
        individuals described in subsection (a);
            ``(4) provide information on and make referrals to programs 
        and services addressing the needs of individuals with 
        disabilities in the State or the American Indian consortium;
            ``(5) develop a statement of objectives and priorities on 
        an annual basis, and provide to the public, including 
        individuals with disabilities and, as appropriate, the 
        individuals' representatives, an opportunity to comment on the 
        objectives and priorities established by, and activities of, 
        the system including--
                    ``(A) the objectives and priorities for the 
                activities of the system for each year and the 
                rationale for the establishment of such objectives and 
                priorities; and
                    ``(B) the coordination of programs provided through 
                the system under this section with the advocacy 
                programs of the client assistance program under section 
                112, the State long-term care ombudsman program 
                established under the Older Americans Act of 1965 (42 
                U.S.C. 3001 et seq.), the Developmental Disabilities 
                Assistance and Bill of Rights Act (42 U.S.C. 6000 et 
                seq.), and the Protection and Advocacy for Mentally Ill 
                Individuals Act of 1986 (42 U.S.C. 10801 et seq.);
            ``(6) establish a grievance procedure for clients or 
        prospective clients of the system to ensure that individuals 
        with disabilities are afforded equal opportunity to access the 
        services of the system;
            ``(7) provide assurances to the Commissioner that funds 
        made available under this section will 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; and
            ``(8) not use allotments or grants provided under this 
        section in a manner inconsistent with section 5 of the Assisted 
        Suicide Funding Restriction Act of 1997.
    ``(g) Carryover and Direct Payment.--
            ``(1) Direct payment.--Notwithstanding any other provision 
        of law, the Commissioner shall pay directly to any system that 
        complies with the provisions of this section, the amount of the 
        allotment of the State or the grant for the eligible system 
        that serves the American Indian consortium involved under this 
        section, unless the State or American Indian consortium 
        provides otherwise.
            ``(2) Carryover.--Any amount paid to an eligible system 
        that serves a State or American Indian consortium for a fiscal 
year that remains unobligated at the end of such year shall remain 
available to such system that serves the State or American Indian 
consortium for obligation during the next fiscal year for the purposes 
for which such amount was paid.
    ``(h) Limitation on Disclosure Requirements.--For purposes of any 
audit, report, or evaluation of the performance of the program 
established under this section, the Commissioner shall not require such 
a program to disclose the identity of, or any other personally 
identifiable information related to, any individual requesting 
assistance under such program.
    ``(i) Administrative Cost.--In any State in which an eligible 
system is located within a State agency, a State may use a portion of 
any allotment under subsection (c) for the cost of the administration 
of the system required by this section. Such portion may not exceed 5 
percent of the allotment.
    ``(j) Delegation.--The Commissioner may delegate the administration 
of this program to the Commissioner of the Administration on 
Developmental Disabilities within the Department of Health and Human 
Services.
    ``(k) Report.--The Commissioner shall annually prepare and submit 
to the Committee on Education and the Workforce of the House of 
Representatives and the Committee on Labor and Human Resources of the 
Senate a report describing the types of services and activities being 
undertaken by programs funded under this section, the total number of 
individuals served under this section, the types of disabilities 
represented by such individuals, and the types of issues being 
addressed on behalf of such individuals.
    ``(l) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as may be necessary 
for each of the fiscal years 1998 through 2004.
    ``(m) Definitions.--As used in this section:
            ``(1) Eligible system.--The term `eligible system' means a 
        protection and advocacy system that is established under part C 
        of the Developmental Disabilities Assistance and Bill of Rights 
        Act (42 U.S.C. 6041 et seq.) and that meets the requirements of 
        subsection (f).
            ``(2) American indian consortium.--The term `American 
        Indian consortium' means a consortium established as described 
        in section 142 of the Developmental Disabilities Assistance and 
        Bill of Rights Act (42 U.S.C. 6042).''.

SEC. 9. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES.

    Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795 et seq.) 
is amended to read as follows:

 ``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES

``SEC. 601. SHORT TITLE.

    ``This title may be cited as the `Employment Opportunities for 
Individuals With Disabilities Act'.

``PART A--PROJECTS IN TELECOMMUTING AND SELF-EMPLOYMENT FOR INDIVIDUALS 
                           WITH DISABILITIES

``SEC. 611. FINDINGS, POLICIES, AND PURPOSES.

    ``(a) Findings.--Congress makes the following findings:
            ``(1) It is in the best interest of the United States to 
        identify and promote increased employment opportunities for 
        individuals with disabilities.
            ``(2) Telecommuting is one of the most rapidly expanding 
        forms of employment. In 1990 there were 4,000,000 telecommuters 
        and that number has risen to 11,100,000 in 1997.
            ``(3) It is in the best interest of the United States to 
        ensure that individuals with disabilities have access to 
        telecommuting employment opportunities. It has been estimated 
        that 10 percent of individuals with disabilities, who are 
        unemployed, could benefit from telecommuting opportunities.
            ``(4) It is in the interest of employers to recognize that 
        individuals with disabilities are excellent candidates for 
        telecommuting employment opportunities.
            ``(5) Individuals with disabilities, especially those 
        living in rural areas, often do not have access to accessible 
        transportation, and in such cases telecommuting presents an 
        excellent opportunity for the employment of such individuals.
            ``(6) It is in the best interests of economic development 
        agencies, venture capitalists, and financial institutions for 
        the Federal Government to demonstrate that individuals with 
        disabilities, who wish to become or who are self-employed, can 
        meet the criteria for assistance, investment of capital, and 
        business that other entrepreneurs meet.
    ``(b) Policies.--It is the policy of the United States to--
            ``(1) promote opportunities for individuals with 
        disabilities to--
                    ``(A) secure, retain, regain, or advance in 
                employment involving telecommuting;
                    ``(B) gain access to employment opportunities; and
                    ``(C) demonstrate their abilities, capabilities, 
                interests, and preferences regarding employment in 
                positions that are increasingly being offered to 
                individuals in the workplace; and
            ``(2) promote opportunities for individuals with 
        disabilities to engage in self-employment enterprises that 
        permit these individuals to achieve significant levels of 
        independence, participate in and contribute to the life of 
        their communities, and offer employment opportunities to 
        others.
    ``(c) Purposes.--It is the purpose of this part to--
            ``(1) through the awarding of 1-time, time-limited grants, 
        contracts, or cooperative agreements to public and private 
        entities--
                    ``(A) provide funds, in accordance with section 
                612, to enable individuals with disabilities to 
                identify and secure employment opportunities involving 
                telecommuting; and
                    ``(B) encourage employers to become partners in 
                providing telecommuting placements for individuals with 
                disabilities through the involvement of such employers 
                in telecommuting projects that continue and expand 
                opportunities for the provision of telecommuting 
                placements to individuals with disabilities beyond 
                those opportunities that are currently facilitated by 
                the telecommuting projects; and
            ``(2) through the awarding of 1-time, time-limited grants, 
        contracts, cooperative agreements, or other appropriate 
        mechanisms of providing assistance to public or private 
        entities--
                    ``(A) assist individuals with disabilities to 
                engage in self-employment enterprises in accordance 
                with section 613; and
                    ``(B) encourage entities to assist more individuals 
                with disabilities to engage in self-employment 
                enterprises.

``SEC. 612. PROJECTS IN TELECOMMUTING FOR INDIVIDUALS WITH 
              DISABILITIES.

    ``(a) In General.--The Commissioner shall, on a competitive basis, 
award 1-time, time-limited grants, contracts, or cooperative agreements 
to eligible entities for the establishment and operation of projects in 
telecommuting for individuals with disabilities.
    ``(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a) an entity 
shall--
            ``(1) be--
                    ``(A) an entity carrying out a Project With 
                Industry described in part B;
                    ``(B) a designated State agency;
                    ``(C) a statewide workforce investment partnership 
                or local workforce investment partnership;
                    ``(D) a public educational agency;
                    ``(E) a training institution, which may include an 
                institution of higher education;
                    ``(F) a private organization, with priority given 
                to organizations of or for individuals with 
                disabilities;
                    ``(G) a public or private employer;
                    ``(H) any other entity that the Commissioner 
                determines to be appropriate; or
                    ``(I) a combination or consortium of the entities 
                described in subparagraphs (A) through (H);
            ``(2) have 3 or more years of experience in assisting 
        individuals with disabilities in securing, retaining, 
        regaining, or advancing in employment;
            ``(3) demonstrate that such entity has the capacity to 
        secure full- and part-time employment involving telecommuting 
        for individuals with disabilities; and
            ``(4) submit an application that meets the requirements of 
        subsection (c).
    ``(c) Application Requirements.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an entity 
shall submit to the Commissioner at such time, in such manner, and 
containing such information concerning the telecommuting project to be 
funded under the grant, contract, or agreement as the Commissioner may 
require, including--
            ``(1) a description of how and the extent to which the 
        applicant meets the requirement of subsection (b)(2);
            ``(2) with respect to any partners who will participate in 
        the implementation of activities under the telecommuting 
        project, a description of--
                    ``(A) the identity of such partners; and
                    ``(B) the roles and responsibilities of each 
                partner in preparing the application, and if funded, 
                the roles and responsibility of each partner during the 
                telecommuting project;
            ``(3) a description of the geographic region that will be 
        the focus of activity under the telecommuting project;
            ``(4) a projection for each year of a 3-year period of the 
        grant, contract, or agreement, of the number of individuals 
        with disabilities who will be employed as the result of the 
        assistance provided by the telecommuting project;
            ``(5) with respect to any employers that have indicated an 
        interest in offering telecommuting employment opportunities to 
        individuals with disabilities, a description of--
                    ``(A) the identity of such employers; and
                    ``(B) the manner in which additional employers 
                would be recruited under the telecommuting project;
            ``(6) a description of the manner in which individuals with 
        disabilities will be identified and selected to participate in 
        the telecommuting project;
            ``(7) a description of the jobs that will be targeted by 
        the telecommuting project;
            ``(8) a description of the process by which individuals 
        with disabilities will be matched with employers for 
        telecommuting placements;
            ``(9) a description of the manner in which the project will 
        become self-sustaining in the third year of the telecommuting 
        project; and
            ``(10) a description of the nature and amount of funding, 
        including in-kind support, other than funds received under this 
        part, that will be available to be used by the telecommuting 
        project.
    ``(d) Use of Funds.--Amounts received under a grant, contract, or 
cooperative agreement under subsection (a) shall be used for--
            ``(1) the recruitment of individuals with disabilities for 
        telecommuting placements;
            ``(2) the conduct of marketing activities with respect to 
        employers;
            ``(3) the purchase of training services for an individual 
        with a disability who is going to assume a telecommuting 
        placement;
            ``(4) the purchase of equipment, materials, telephone 
        lines, auxiliary aids, and services related to telecommuting 
        placements;
            ``(5) the provision of orientation services and training to 
        the supervisors of employers participating in the project and 
        to co-workers of individuals with disabilities who are selected 
        for telecommuting placements;
            ``(6) the provision of technical assistance to employers, 
        including technical assistance regarding reasonable 
        accommodations with regard to individuals with disabilities 
        participating in telecommuting placements; and
            ``(7) other uses determined appropriate by the 
        Commissioner.
    ``(e) Project Requirements.--Telecommuting projects funded under 
this section shall--
            ``(1) establish criteria for safety with regard to the 
        telecommuting work space, which at a minimum meet guidelines 
        established by the Occupational Safety and Health 
        Administration for a work space of comparable size and 
        function;
            ``(2) on an annual basis, enter into agreements with the 
        Commissioner that contain goals concerning the number of 
        individuals with disabilities that the project will place in 
        telecommuting positions;
            ``(3) establish procedures for ensuring that prospective 
        employers and individuals with disabilities, who are to assume 
        telecommuting placements, have a clear understanding of how the 
        individual's work performance will be monitored and evaluated 
        by the employer;
            ``(4) identify and make available support services for 
        individuals with disabilities in telecommuting placements;
            ``(5) develop procedures that allow the telecommuting 
        project, the employer, and the individual with a disability to 
        reach agreement on their respective responsibilities with 
        regard to establishing and maintaining the telecommuting 
        placement;
            ``(6) for each year of a telecommuting project, submit an 
        annual report to the Commissioner concerning--
                    ``(A) the number of individuals with disabilities 
                placed in telecommuting positions and whether the goal 
                described in the agreement entered into paragraph (2) 
                was met;
                    ``(B) the number of individuals with disabilities 
                employed as salaried employees and their annual 
                salaries;
                    ``(C) the number of individuals with disabilities 
                employed as independent contractors and their annual 
                incomes;
                    ``(D) the number of individuals with disabilities 
                that received benefits from their employers;
                    ``(E) the number of individuals with disabilities 
                in telecommuting placements still working after--
                            ``(i) 6 months; and
                            ``(ii) 12 months; and
                    ``(F) any reports filed with the Occupational 
                Safety and Health Administration.
    ``(f) Limitations.--
            ``(1) Period of award.--A grant, contract, or cooperative 
        agreement under subsection (a) shall be for a 3-year period.
            ``(2) Amount.--The amount of a grant, contract, or 
        cooperative agreement under subsection (a) shall not be less 
        than $250,000 nor more than $1,000,000.

``SEC. 613. PROJECTS IN SELF-EMPLOYMENT FOR INDIVIDUALS WITH 
              DISABILITIES.

    ``(a) In General.--The Commissioner shall, on a competitive basis, 
award 1-time, time-limited grants, contracts, or cooperative agreements 
to eligible entities for the establishment and operation of projects in 
self-employment for individuals with disabilities.
    ``(b) Eligible Entities.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a) an entity 
shall--
            ``(1) be--
                    ``(A) a financial institution;
                    ``(B) an economic development agency;
                    ``(C) a venture capitalist;
                    ``(D) an entity carrying out a Project With 
                Industry described in part B;
                    ``(E) a designated State agency, or other public 
                entity;
                    ``(F) a private organization, including employers 
                and organizations related to individuals with 
                disabilities;
                    ``(G) any other entity that the Commissioner 
                determines to be appropriate; or
                    ``(H) a combination or consortium of the entities 
                described in subparagraphs (A) through (G);
            ``(2) demonstrate that such entity has the capacity to 
        assist clients, including clients with disabilities, to 
        successfully engage in self-employment enterprises; and
            ``(3) submit an application that meets the requirements of 
        subsection (c).
    ``(c) Application Requirements.--To be eligible to receive a grant, 
contract, or cooperative agreement under subsection (a), an entity 
shall submit to the Commissioner at such time, in such manner, and 
containing such information concerning the self-employment project to 
be funded under the grant, contract, or agreement as the Commissioner 
may require, including--
            ``(1) a description of how and the extent to which the 
        applicant has assisted individuals, including individuals with 
        disabilities, if appropriate, to successfully engage in self-
        employment enterprises;
            ``(2) with respect to any partners who will participate in 
        the implementation of activities under the self-employment 
        project, a description of--
                    ``(A) the identity of such partners; and
                    ``(B) the roles and responsibilities of each 
                partner in preparing the application, and if funded, 
                the roles and responsibility of each partner during the 
                self-employment project;
            ``(3) a description of the geographic region that will be 
        the focus of activity in the self-employment project;
            ``(4) a projection for each year of a 3-year period of the 
        grant, contract, or agreement, of the number of clients who 
        will be assisted to engage in self-employment enterprises 
        through the self-employment project;
            ``(5) a description of the manner in which potential 
        clients will be identified and selected to be assisted by the 
        self-employment project;
            ``(6) a description of the manner in which self-employment 
        enterprises (or market niches) will be identified for the 
        geographic areas to be targeted in the self-employment project;
            ``(7) a description of the process by which prospective 
        clients will be matched with self-employment opportunities;
            ``(8) a description of the manner in which the project will 
        become self-sustaining in the third year of the self-employment 
        project; and
            ``(9) a description of the nature and amount of funding, 
        including in-kind support, other than funds received under this 
        part, that will be available to be used during the self-
        employment project.
    ``(d) Use of Funds.--Amounts received under a grant, contract, or 
cooperative agreement under subsection (a) shall be used--
            ``(1) for the preparation of marketing analyses to identify 
        self-employment opportunities;
            ``(2) for the conduct of marketing activities with respect 
        to financial institutions or venture capitalists concerning the 
        benefits of investing in individuals with disabilities who are 
        engaged in self-employment enterprises;
            ``(3) for the conduct of marketing activities with respect 
        to potential clients who engage in or might engage in self-
        employment enterprises;
            ``(4) for the provision of training for clients to be 
        assisted through the project who seek to engage or are engaging 
        in self-employment enterprises;
            ``(5) to cover the costs of business expenses specifically 
        related to an individual's disability;
            ``(6) to provide assistance for clients in developing 
        business plans for capital investment;
            ``(7) to provide assistance for clients in securing capital 
        to engage in a self-employment enterprise;
            ``(8) to provide technical assistance to clients engaged in 
        self-employment enterprises who seek such assistance in order 
        to sustain or expand their enterprises; and
            ``(9) for other uses as determined appropriate by the 
        Commissioner.
    ``(e) Project Requirements.--Self-employment projects funded under 
this section shall--
            ``(1) establish criteria for and apply such criteria in 
        selecting clients to be assisted through the project;
            ``(2) on an annual basis, enter into agreements with the 
        Commissioner that contain goals concerning the number of 
        individuals with disabilities that the project will assist in 
        starting and sustaining self-employment enterprises;
            ``(3) establish and apply criteria to determine whether an 
        enterprise is a viable option in which to invest project funds;
            ``(4) establish and apply criteria to determine when and if 
        the project would provide assistance in sustaining an ongoing 
        enterprise engaged in by a client or potential client;
            ``(5) establish and apply criteria to determine when and if 
        the project would provide assistance in expanding an ongoing 
        enterprise engaged in by a client or potential client;
            ``(6) establish and apply procedures to ensure that a 
        potential client has a clear understanding of the scope and 
        limits of assistance from the project that will be applicable 
        in such client's case;
            ``(7) develop procedures, which include a written 
        agreement, that provides for the documentation of the 
        respective responsibilities of the self-employment project and 
        any client with regard to the creation, maintenance, or 
        expansion of the client's self-employment enterprise; and
            ``(8) with respect to the project, submit a report to the 
        Commissioner--
                    ``(A) for each project year, concerning the number 
                of clients assisted by the project who are engaging in 
                self-employment enterprises and whether the goal 
                described in the agreement entered into under paragraph 
                (2) was met; and
                    ``(B) the number of clients assisted by the project 
                who are still engaged in such an enterprise on the date 
                that is--
                            ``(i) 6 months after the date on which 
                        assistance provided by the project was 
                        terminated; and
                            ``(ii) 12 months after the date of which 
                        assistance provided by the project was 
                        terminated.
    ``(f) Duration of Awards.--A grant, contract, or cooperative 
agreement under subsection (a) shall be for a 3-year period.
    ``(g) Definition.--For the purpose of this section, the term 
`client' means 1 or more individuals with disabilities who engage in or 
seek to engage in a self-employment enterprise.

``SEC. 614. DISCRETIONARY AUTHORITY FOR DUAL-PURPOSE APPLICATIONS.

    ``(a) In General.--The Commissioner may establish procedures to 
permit applicants for grants, contracts, or cooperative agreements 
under this part to submit applications that serve dual purposes, so 
long as such applications meet the requirements of sections 612 and 
section 613.
    ``(b) Amount of Assistance.--In a case described in subsection (a), 
the minimum amount of a grant, contract, or cooperative agreement 
awarded under a dual-purpose application may, at the discretion of the 
Commissioner, exceed the limitations described in section 612(f)(2).

``SEC. 615. AUTHORIZATION OF APPROPRIATIONS.

    ``There is authorized to be appropriated to carry out this part, 
$10,000,000 for fiscal year 1998, and such sums as may be necessary for 
each of the fiscal years 1999 through 2004.

                    ``Part B--Projects With Industry

                        ``projects with industry

    ``Sec. 621. (a)(1) The purpose of this part 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 such jobs, to create practical job and career readiness and 
training programs, and to provide job placements and career 
advancement.
    ``(2) The Commissioner, in consultation with the Secretary of Labor 
and with designated State units, may award grants to individual 
employers, community rehabilitation program providers, labor unions, 
trade associations, Indian tribes, tribal organizations, designated 
State units, and other entities to establish jointly financed Projects 
With Industry to create and expand job and career opportunities for 
individuals with disabilities, which projects shall--
            ``(A) provide for the establishment of business advisory 
        councils, which shall--
                    ``(i) be comprised of--
                            ``(I) representatives of private industry, 
                        business concerns, and organized labor;
                            ``(II) individuals with disabilities and 
                        representatives of individuals with 
                        disabilities; and
                            ``(III) a representative of the appropriate 
                        designated State unit;
                    ``(ii) identify job and career availability within 
                the community, consistent with the current and 
                projected local employment opportunities identified by 
                the local workforce investment partnership for the 
                community under section 308(e)(6) of the Workforce 
                Investment Partnership Act of 1998;
                    ``(iii) identify the skills necessary to perform 
                the jobs and careers identified; and
                    ``(iv) prescribe training programs designed to 
                develop appropriate job and career skills, or job 
                placement programs designed to identify and develop job 
                placement and career advancement opportunities, for 
                individuals with disabilities in fields related to the 
                job and career availability identified under clause 
                (ii);;
            ``(B) provide job development, job placement, and career 
        advancement services;
            ``(C) to the extent appropriate, provide for--
                    ``(i) training in realistic work settings in order 
                to prepare individuals with disabilities for employment 
                and career advancement in the competitive market; and
                    ``(ii) the modification of any facilities or 
                equipment of the employer involved that are used 
                primarily by individuals with disabilities, except that 
                a project shall not be required to provide for such 
                modification if the modification is required as a 
                reasonable accommodation under the Americans with 
                Disabilities Act of 1990 (42 U.S.C. 12101 et seq.); and
            ``(D) provide individuals with disabilities with such 
        support services as may be required in order to maintain the 
        employment and career advancement for which the individuals 
        have received training under this part.
    ``(3)(A) An individual shall be eligible for services described in 
paragraph (2) if the individual is determined to be an individual 
described in section 102(a)(1), and if the determination is made in a 
manner consistent with section 102(a).
    ``(B) Such a determination may be made by the recipient of a grant 
under this part, to the extent the determination is appropriate and 
available and consistent with the requirements of section 102(a).
    ``(4) The Commissioner shall enter into an agreement with the grant 
recipient regarding the establishment of the project. Any agreement 
shall be jointly developed by the Commissioner, the grant recipient, 
and, to the extent practicable, the appropriate designated State unit 
and the individuals with disabilities (or the individuals' 
representatives) involved. Such agreements shall specify the terms of 
training and employment under the project, provide for the payment by 
the Commissioner of part of the costs of the project (in accordance 
with subsection (c)), and contain the items required under subsection 
(b) and such other provisions as the parties to the agreement consider 
to be appropriate.
    ``(5) Any agreement shall include a description of a plan to 
annually conduct a review and evaluation of the operation of the 
project in accordance with standards developed by the Commissioner 
under subsection (d), and, in conducting the review and evaluation, to 
collect data and information of the type described in subparagraphs (A) 
through (C) of section 101(a)(10), as determined to be appropriate by 
the Commissioner.
    ``(6) The Commissioner may include, as part of agreements with 
grant recipients, authority for such grant recipients to provide 
technical assistance to--
            ``(A) assist employers in hiring individuals with 
        disabilities; or
            ``(B) improve or develop relationships between--
                    ``(i) grant recipients or prospective grant 
                recipients; and
                    ``(ii) employers or organized labor; or
            ``(C) assist employers in understanding and meeting the 
        requirements of the Americans with Disabilities Act of 1990 (42 
        U.S.C. 12101 et seq.) as the Act relates to employment of 
individuals with disabilities.
    ``(b) No payment shall be made by the Commissioner under any 
agreement with a grant recipient entered into under subsection (a) 
unless such agreement--
            ``(1) provides an assurance that individuals with 
        disabilities placed under such agreement shall receive at least 
        the applicable minimum wage;
            ``(2) provides an assurance that any individual with a 
        disability placed under this part shall be afforded terms and 
        benefits of employment equal to terms and benefits that are 
        afforded to the similarly situated nondisabled co-workers of 
        the individual, and that such individuals with disabilities 
        shall not be segregated from their co-workers; and
            ``(3) provides an assurance that an annual evaluation 
        report containing information specified under subsection (a)(5) 
        shall be submitted as determined to be appropriate by the 
        Commissioner.
    ``(c) Payments under this section with respect to any project may 
not exceed 80 per centum of the costs of the project.
    ``(d)(1) The Commissioner shall develop standards for the 
evaluation described in subsection (a)(5) and shall review and revise 
the evaluation standards as necessary, subject to paragraphs (2) and 
(3).
    ``(2) In revising the standards for evaluation to be used by the 
grant recipients, the Commissioner shall obtain and consider 
recommendations for such standards from State vocational rehabilitation 
agencies, current and former grant recipients, professional 
organizations representing business and industry, organizations 
representing individuals with disabilities, individuals served by grant 
recipients, organizations representing community rehabilitation program 
providers, and labor organizations.
    ``(3) No standards may be established under this subsection unless 
the standards are approved by the National Council on Disability. The 
Council shall be afforded adequate time to review and approve the 
standards.
    ``(e)(1)(A) A grant may be awarded under this section for a period 
of up to 5 years and such grant may be renewed.
    ``(B) Grants under this section shall be awarded on a competitive 
basis. To be eligible to receive such a grant, a prospective grant 
recipient shall submit an application to the Commissioner at such time, 
in such manner, and containing such information as the Commissioner may 
require.
    ``(2) The Commissioner shall to the extent practicable ensure an 
equitable distribution of payments made under this section among the 
States. To the extent funds are available, the Commissioner shall award 
grants under this section to new projects that will serve individuals 
with disabilities in States, portions of States, Indian tribes, or 
tribal organizations, that are currently unserved or underserved by 
projects.
    ``(f)(1) The Commissioner shall, as necessary, develop and publish 
in the Federal Register in final form indicators of what constitutes 
minimum compliance consistent with the evaluation standards under 
subsection (d)(1).
    ``(2) Each grant recipient shall report to the Commissioner at the 
end of each project year the extent to which the grant recipient is in 
compliance with the evaluation standards.
    ``(3)(A) The Commissioner shall annually conduct on-site compliance 
reviews of at least 15 percent of grant recipients. The Commissioner 
shall select grant recipients for review on a random basis.
    ``(B) The Commissioner shall use the indicators in determining 
compliance with the evaluation standards.
    ``(C) The Commissioner shall ensure that at least one member of a 
team conducting such a review shall be an individual who--
            ``(i) is not an employee of the Federal Government; and
            ``(ii) has experience or expertise in conducting projects.
    ``(D) The Commissioner shall ensure that--
            ``(i) a representative of the appropriate designated State 
        unit shall participate in the review; and
            ``(ii) no person shall participate in the review of a grant 
        recipient if--
                    ``(I) the grant recipient provides any direct 
                financial benefit to the reviewer; or
                    ``(II) participation in the review would give the 
                appearance of a conflict of interest.
    ``(4) In making a determination concerning any subsequent grant 
under this section, the Commissioner shall consider the past 
performance of the applicant, if applicable. The Commissioner shall use 
compliance indicators developed under this subsection that are 
consistent with program evaluation standards developed under subsection 
(d) to assess minimum project performance for purposes of making 
continuation awards in the third, fourth, and fifth years.
    ``(5) Each fiscal year the Commissioner shall include in the annual 
report to Congress required by section 13 an analysis of the extent to 
which grant recipients have complied with the evaluation standards. The 
Commissioner may identify individual grant recipients in the analysis. 
In addition, the Commissioner shall report the results of on-site 
compliance reviews, identifying individual grant recipients.
    ``(g) The Commissioner may provide, directly or by way of grant, 
contract, or cooperative agreement, technical assistance to--
            ``(1) entities conducting projects for the purpose of 
        assisting such entities in--
                    ``(A) the improvement of or the development of 
                relationships with private industry or labor; or
                    ``(B) the improvement of relationships with State 
                vocational rehabilitation agencies; and
            ``(2) entities planning the development of new projects.
    ``(h) As used in this section:
            ``(1) The term `agreement' means an agreement described in 
        subsection (a)(4).
            ``(2) The term `project' means a Project With Industry 
        established under subsection (a)(2).
            ``(3) The term `grant recipient' means a recipient of a 
        grant under subsection (a)(2).

                   ``authorization of appropriations

    ``Sec. 622. There are authorized to be appropriated to carry out 
the provisions of this part, such sums as may be necessary for each of 
fiscal years 1998 through 2004.

 ``Part C--Supported Employment Services for Individuals With the Most 
                        Significant Disabilities

``SEC. 631. PURPOSE.

    ``It is the purpose of this part to authorize allotments, in 
addition to grants for vocational rehabilitation services under title 
I, to assist States in developing collaborative programs with 
appropriate entities to provide supported employment services for 
individuals with the most significant disabilities to enable such 
individuals to achieve the employment outcome of supported employment.

``SEC. 632. ALLOTMENTS.

    ``(a) In General.--
            ``(1) States.--The Secretary shall allot the sums 
        appropriated for each fiscal year to carry out this part among 
        the States on the basis of relative population of each State, 
        except that--
                    ``(A) no State shall receive less than $250,000, or 
                one-third of one percent of the sums appropriated for 
                the fiscal year for which the allotment is made, 
                whichever is greater; and
                    ``(B) if the sums appropriated to carry out this 
                part for the fiscal year exceed by $1,000,000 or more 
                the sums appropriated to carry out this part in fiscal 
                year 1992, no State shall receive less than $300,000, 
                or one-third of one percent of the sums appropriated 
                for the fiscal year for which the allotment is made, 
                whichever is greater.
            ``(2) Certain territories.--
                    ``(A) In general.--For the purposes of this 
                subsection, Guam, American Samoa, the United States 
                Virgin Islands, and the Commonwealth of the Northern 
                Mariana Islands shall not be considered to be States.
                    ``(B) Allotment.--Each jurisdiction described in 
                subparagraph (A) shall be allotted not less than one-
                eighth of one percent of the amounts appropriated for 
                the fiscal year for which the allotment is made.
    ``(b) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a State for any fiscal year will not be 
expended by such State for carrying out the provisions of this part, 
the Commissioner shall make such amount available for carrying out the 
provisions of this part to one or more of the States that the 
Commissioner determines will be able to use additional amounts during 
such year for carrying out such provisions. Any amount made available 
to a State for any fiscal year pursuant to the preceding sentence 
shall, for the purposes of this section, be regarded as an increase in 
the allotment of the State (as determined under the preceding 
provisions of this section) for such year.

``SEC. 633. AVAILABILITY OF SERVICES.

    ``Funds provided under this part may be used to provide supported 
employment services to individuals who are eligible under this part. 
Funds provided under this part, or title I, may not be used to provide 
extended services to individuals who are eligible under this part or 
title I.

``SEC. 634. ELIGIBILITY.

    ``An individual shall be eligible under this part to receive 
supported employment services authorized under this Act if--
            ``(1) the individual is eligible for vocational 
        rehabilitation services;
            ``(2) the individual is determined to be an individual with 
        a most significant disability; and
            ``(3) a comprehensive assessment of rehabilitation needs of 
        the individual described in section 7(2)(B), including an 
        evaluation of rehabilitation, career, and job needs, identifies 
        supported employment as the appropriate employment outcome for 
        the individual.

``SEC. 635. STATE PLAN.

    ``(a) State Plan Supplements.--To be eligible for an allotment 
under this part, a State shall submit to the Commissioner, as part of 
the State plan under section 101, a State plan supplement for providing 
supported employment services authorized under this Act to individuals 
who are eligible under this Act to receive the services. Each State 
shall make such annual revisions in the plan supplement as may be 
necessary.
    ``(b) Contents.--Each such plan supplement shall--
            ``(1) designate each designated State agency as the agency 
        to administer the program assisted under this part;
            ``(2) summarize the results of the comprehensive, statewide 
        assessment conducted under section 101(a)(15)(A)(i), with 
        respect to the rehabilitation needs of individuals with 
        significant disabilities and the need for supported employment 
        services, including needs related to coordination;
            ``(3) describe the quality, scope, and extent of supported 
        employment services authorized under this Act to be provided to 
        individuals who are eligible under this Act to receive the 
        services and specify the goals and plans of the State with 
        respect to the distribution of funds received under section 
        632;
            ``(4) demonstrate evidence of the efforts of the designated 
        State agency to identify and make arrangements (including 
        entering into cooperative agreements) with other State agencies 
        and other appropriate entities to assist in the provision of 
        supported employment services;
            ``(5) demonstrate evidence of the efforts of the designated 
        State agency to identify and make arrangements (including 
        entering into cooperative agreements) with other public or 
        nonprofit agencies or organizations within the State, 
        employers, natural supports, and other entities with respect to 
        the provision of extended services;
            ``(6) provide assurances that--
                    ``(A) funds made available under this part will 
                only be used to provide supported employment services 
                authorized under this Act to individuals who are 
                eligible under this part to receive the services;
                    ``(B) the comprehensive assessments of individuals 
                with significant disabilities conducted under section 
                102(b)(1) and funded under title I will include 
consideration of supported employment as an appropriate employment 
outcome;
                    ``(C) an individualized rehabilitation employment 
                plan, as required by section 102, will be developed and 
                updated using funds under title I in order to--
                            ``(i) specify the supported employment 
                        services to be provided;
                            ``(ii) specify the expected extended 
                        services needed; and
                            ``(iii) identify the source of extended 
                        services, which may include natural supports, 
                        or to the extent that it is not possible to 
                        identify the source of extended services at the 
                        time the individualized rehabilitation 
                        employment plan is developed, a statement 
                        describing the basis for concluding that there 
                        is a reasonable expectation that such sources 
                        will become available;
                    ``(D) the State will use funds provided under this 
                part only to supplement, and not supplant, the funds 
                provided under title I, in providing supported 
                employment services specified in the individualized 
                rehabilitation employment plan;
                    ``(E) services provided under an individualized 
                rehabilitation employment plan will be coordinated with 
                services provided under other individualized plans 
                established under other Federal or State programs;
                    ``(F) to the extent jobs skills training is 
                provided, the training will be provided on-site; and
                    ``(G) supported employment services will include 
                placement in an integrated setting for the maximum 
                number of hours possible based on the unique strengths, 
                resources, priorities, concerns, abilities, 
                capabilities, interests, and informed choice of 
                individuals with the most significant disabilities;
            ``(7) provide assurances that the State agencies designated 
        under paragraph (1) will expend not more than 5 percent of the 
        allotment of the State under this part for administrative costs 
        of carrying out this part; and
            ``(8) contain such other information and be submitted in 
        such manner as the Commissioner may require.

``SEC. 636. RESTRICTION.

    ``Each State agency designated under section 635(b)(1) shall 
collect the information required by section 101(a)(10) separately for 
eligible individuals receiving supported employment services under this 
part and for eligible individuals receiving supported employment 
services under title I.

``SEC. 637. SAVINGS PROVISION.

    ``(a) Supported Employment Services.--Nothing in this Act shall be 
construed to prohibit a State from providing supported employment 
services in accordance with the State plan submitted under section 101 
by using funds made available through a State allotment under section 
110.
    ``(b) Postemployment Services.--Nothing in this part shall be 
construed to prohibit a State from providing discrete postemployment 
services in accordance with the State plan submitted under section 101 
by using funds made available through a State allotment under section 
110 to an individual who is eligible under this part.

``SEC. 638. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of fiscal years 1998 through 
2004.''.

SEC. 10. INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
              LIVING.

    Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796 et seq.) 
is amended to read as follows:

 ``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT 
                                 LIVING

         ``CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES

                      ``PART A--GENERAL PROVISIONS

``SEC. 701. PURPOSE.

    ``The purpose of this chapter is to promote a philosophy of 
independent living, including a philosophy of consumer control, peer 
support, self-help, self-determination, equal access, and individual 
and system advocacy, in order to maximize the leadership, empowerment, 
independence, and productivity of individuals with disabilities, and 
the integration and full inclusion of individuals with disabilities 
into the mainstream of American society, by--
            ``(1) providing financial assistance to States for 
        providing, expanding, and improving the provision of 
        independent living services;
            ``(2) providing financial assistance to develop and support 
        statewide networks of centers for independent living; and
            ``(3) providing financial assistance to States for 
        improving working relationships among State independent living 
        rehabilitation service programs, centers for independent 
        living, Statewide Independent Living Councils established under 
        section 705, State vocational rehabilitation programs receiving 
        assistance under title I, State programs of supported 
        employment services receiving assistance under part C of title 
        VI, client assistance programs receiving assistance under 
        section 112, programs funded under other titles of this Act, 
        programs funded under other Federal law, and programs funded 
        through non-Federal sources.

``SEC. 702. DEFINITIONS.

    ``As used in this chapter:
            ``(1) Center for independent living.--The term `center for 
        independent living' means a consumer-controlled, community-
        based, cross-disability, nonresidential private nonprofit 
        agency that--
                    ``(A) is designed and operated within a local 
                community by individuals with disabilities; and
                    ``(B) provides an array of independent living 
                services.
            ``(2) Consumer control.--The term `consumer control' means, 
        with respect to a center for independent living, that the 
        center vests power and authority in individuals with 
        disabilities.

``SEC. 703. ELIGIBILITY FOR RECEIPT OF SERVICES.

    ``Services may be provided under this chapter to any individual 
with a significant disability, as defined in section 7(21)(B).

``SEC. 704. STATE PLAN.

    ``(a) In General.--
            ``(1) Requirement.--To be eligible to receive financial 
        assistance under this chapter, a State shall submit to the 
        Commissioner, and obtain approval of, a State plan containing 
        such provisions as the Commissioner may require, including, at 
        a minimum, the provisions required in this section.
            ``(2) Joint development.--The plan under paragraph (1) 
        shall be jointly developed and signed by--
                    ``(A) the director of the designated State unit; 
                and
                    ``(B) the chairperson of the Statewide Independent 
                Living Council, acting on behalf of and at the 
                direction of the Council.
            ``(3) Periodic review and revision.--The plan shall provide 
        for the review and revision of the plan, not less than once 
        every 3 years, to ensure the existence of appropriate planning, 
        financial support and coordination, and other assistance to 
        appropriately address, on a statewide and comprehensive basis, 
        needs in the State for--
                    ``(A) the provision of State independent living 
                services;
                    ``(B) the development and support of a statewide 
                network of centers for independent living; and
                    ``(C) working relationships between--
                            ``(i) programs providing independent living 
                        services and independent living centers; and
                            ``(ii) the vocational rehabilitation 
                        program established under title I, and other 
                        programs providing services for individuals 
                        with disabilities.
            ``(4) Date of submission.--The State shall submit the plan 
        to the Commissioner 90 days before the completion date of the 
        preceding plan. If a State fails to submit such a plan that 
        complies with the requirements of this section, the 
        Commissioner may withhold financial assistance under this 
        chapter until such time as the State submits such a plan.
    ``(b) Statewide Independent Living Council.--The plan shall provide 
for the establishment of a Statewide Independent Living Council in 
accordance with section 705.
    ``(c) Designation of State Unit.--The plan shall designate the 
designated State unit of such State as the agency that, on behalf of 
the State, shall--
            ``(1) receive, account for, and disburse funds received by 
        the State under this chapter based on the plan;
            ``(2) provide administrative support services for a program 
        under part B, and a program under part C in a case in which the 
        program is administered by the State under section 723;
            ``(3) keep such records and afford such access to such 
        records as the Commissioner finds to be necessary with respect 
        to the programs; and
            ``(4) submit such additional information or provide such 
        assurances as the Commissioner may require with respect to the 
        programs.
    ``(d) Objectives.--The plan shall--
            ``(1) specify the objectives to be achieved under the plan 
        and establish timelines for the achievement of the objectives; 
        and
            ``(2) explain how such objectives are consistent with and 
        further the purpose of this chapter.
    ``(e) Independent Living Services.--The plan shall provide that the 
State will provide independent living services under this chapter to 
individuals with significant disabilities, and will provide the 
services to such an individual in accordance with an independent living 
plan mutually agreed upon by an appropriate staff member of the service 
provider and the individual, unless the individual signs a waiver 
stating that such a plan is unnecessary.
    ``(f) Scope and Arrangements.--The plan shall describe the extent 
and scope of independent living services to be provided under this 
chapter to meet such objectives. If the State makes arrangements, by 
grant or contract, for providing such services, such arrangements shall 
be described in the plan.
    ``(g) Network.--The plan shall set forth a design for the 
establishment of a statewide network of centers for independent living 
that comply with the standards and assurances set forth in section 725.
    ``(h) Centers.--In States in which State funding for centers for 
independent living equals or exceeds the amount of funds allotted to 
the State under part C, as provided in section 723, the plan shall 
include policies, practices, and procedures governing the awarding of 
grants to centers for independent living and oversight of such centers 
consistent with section 723.
    ``(i) Cooperation, Coordination, and Working Relationships Among 
Various Entities.--The plan shall set forth the steps that will be 
taken to maximize the cooperation, coordination, and working 
relationships among--
            ``(1) the independent living rehabilitation service 
        program, the Statewide Independent Living Council, and centers 
        for independent living; and
            ``(2) the designated State unit, other State agencies 
        represented on such Council, other councils that address the 
        needs of specific disability populations and issues, and other 
        public and private entities determined to be appropriate by the 
        Council.
    ``(j) Coordination of Services.--The plan shall describe how 
services funded under this chapter will be coordinated with, and 
complement, other services, in order to avoid unnecessary duplication 
with other Federal, State, and local programs.
    ``(k) Coordination Between Federal and State Sources.--The plan 
shall describe efforts to coordinate Federal and State funding for 
centers for independent living and independent living services.
    ``(l) Outreach.--With respect to services and centers funded under 
this chapter, the plan shall set forth steps to be taken regarding 
outreach to populations that are unserved or underserved by programs 
under this title, including minority groups and urban and rural 
populations.
    ``(m) Requirements.--The plan shall provide satisfactory assurances 
that all recipients of financial assistance under this chapter will--
            ``(1) notify all individuals seeking or receiving services 
        under this chapter about the availability of the client 
        assistance program under section 112, the purposes of the 
        services provided under such program, and how to contact such 
        program;
            ``(2) take affirmative action to employ and advance in 
        employment qualified individuals with disabilities on the same 
        terms and conditions required with respect to the employment of 
        such individuals under the provisions of section 503;
            ``(3) adopt such fiscal control and fund accounting 
        procedures as may be necessary to ensure the proper 
        disbursement of and accounting for funds paid to the State 
        under this chapter;
            ``(4)(A) maintain records that fully disclose--
                    ``(i) the amount and disposition by such recipient 
                of the proceeds of such financial assistance;
                    ``(ii) the total cost of the project or undertaking 
                in connection with which such financial assistance is 
                given or used; and
                    ``(iii) the amount of that portion of the cost of 
                the project or undertaking supplied by other sources;
            ``(B) maintain such other records as the Commissioner 
        determines to be appropriate to facilitate an effective audit;
            ``(C) afford such access to records maintained under 
        subparagraphs (A) and (B) as the Commissioner determines to be 
        appropriate; and
            ``(D) submit such reports with respect to such records as 
        the Commissioner determines to be appropriate;
            ``(5) provide access to the Commissioner and the 
        Comptroller General or any of their duly authorized 
        representatives, for the purpose of conducting audits and 
        examinations, of any books, documents, papers, and records of 
        the recipients that are pertinent to the financial assistance 
        received under this chapter; and
            ``(6) provide for public hearings regarding the contents of 
        the plan during both the formulation and review of the plan.
    ``(n) Evaluation.--The plan shall establish a method for the 
periodic evaluation of the effectiveness of the plan in meeting the 
objectives established in subsection (d), including evaluation of 
satisfaction by individuals with disabilities.

``SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.

    ``(a) Establishment.--To be eligible to receive financial 
assistance under this chapter, each State shall establish a Statewide 
Independent Living Council (referred to in this section as the 
`Council'). The Council shall not be established as an entity within a 
State agency.
    ``(b) Composition and Appointment.--
            ``(1) Appointment.--Members of the Council shall be 
        appointed by the Governor or the appropriate entity within the 
        State responsible for making appointments. The appointing 
        authority shall select members after soliciting recommendations 
        from representatives of organizations representing a broad 
        range of individuals with disabilities and organizations 
        interested in individuals with disabilities.
            ``(2) Composition.--The Council shall include--
                    ``(A) at least one director of a center for 
                independent living chosen by the directors of centers 
                for independent living within the State;
                    ``(B) as ex officio, nonvoting members--
                            ``(i) a representative from the designated 
                        State unit; and
                            ``(ii) representatives from other State 
                        agencies that provide services for individuals 
                        with disabilities; and
                    ``(C) in a State in which 1 or more projects are 
                carried out under section 121, at least 1 
                representative of the directors of the projects.
            ``(3) Additional members.--The Council may include--
                    ``(A) other representatives from centers for 
                independent living;
                    ``(B) parents and guardians of individuals with 
                disabilities;
                    ``(C) advocates of and for individuals with 
                disabilities;
                    ``(D) representatives from private businesses;
                    ``(E) representatives from organizations that 
                provide services for individuals with disabilities; and
                    ``(F) other appropriate individuals.
            ``(4) Qualifications.--
                    ``(A) In general.--The Council shall be composed of 
                members--
                            ``(i) who provide statewide representation;
                            ``(ii) who represent a broad range of 
                        individuals with disabilities from diverse 
                        backgrounds;
                            ``(iii) who are knowledgeable about centers 
                        for independent living and independent living 
                        services; and
                            ``(iv) a majority of whom are persons who 
                        are--
                                    ``(I) individuals with disabilities 
                                described in section 7(20)(B); and
                                    ``(II) not employed by any State 
                                agency or center for independent 
                                living.
                    ``(B) Voting members.--A majority of the voting 
                members of the Council shall be--
                            ``(i) individuals with disabilities 
                        described in section 7(20)(B); and
                            ``(ii) not employed by any State agency or 
                        center for independent living.
            ``(5) Chairperson.--The Council shall select a chairperson 
        from among the voting membership of the Council.
            ``(6) Terms of appointment.--
                    ``(A) Length of term.--Each member of the Council 
                shall serve for a term of 3 years, except that--
                            ``(i) a member appointed to fill a vacancy 
                        occurring prior to the expiration of the term 
                        for which a predecessor was appointed, shall be 
                        appointed for the remainder of such term; and
                            ``(ii) the terms of service of the members 
                        initially appointed shall be (as specified by 
                        the appointing authority) for such fewer number 
                        of years as will provide for the expiration of 
                        terms on a staggered basis.
                    ``(B) Number of terms.--No member of the Council 
                may serve more than two consecutive full terms.
            ``(7) Vacancies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), any vacancy occurring in the 
                membership of the Council shall be filled in the same 
                manner as the original appointment. The vacancy shall 
                not affect the power of the remaining members to 
                execute the duties of the Council.
                    ``(B) Delegation.--The Governor (including an 
                entity described in paragraph (1)) may delegate the 
                authority to fill such a vacancy to the remaining 
                voting members of the Council after making the original 
                appointment.
    ``(c) Duties.--The Council shall--
            ``(1) jointly develop and sign (in conjunction with the 
        designated State unit) the State plan required in section 704;
            ``(2) monitor, review, and evaluate the implementation of 
        the State plan;
            ``(3) coordinate activities with the State Rehabilitation 
        Council established under section 105, if the State has such a 
        Council, or the commission described in section 101(a)(21)(A), 
        if the State has such a commission, and councils that address 
        the needs of specific disability populations and issues under 
        other Federal law;
            ``(4) ensure that all regularly scheduled meetings of the 
        Statewide Independent Living Council are open to the public and 
        sufficient advance notice is provided; and
            ``(5) submit to the Commissioner such periodic reports as 
        the Commissioner may reasonably request, and keep such records, 
        and afford such access to such records, as the Commissioner 
        finds necessary to verify such reports.
    ``(d) Hearings and Forums.--The Council is authorized to hold such 
hearings and forums as the Council may determine to be necessary to 
carry out the duties of the Council.
    ``(e) Plan.--
            ``(1) In general.--The Council shall prepare, in 
        conjunction with the designated State unit, a plan for the 
        provision of such resources, including such staff and 
        personnel, as may be necessary and sufficient to carry out the 
        functions of the Council under this section, with funds made 
        available under this chapter, and under section 110 (consistent 
        with section 101(a)(18)), and from other public and private 
        sources. The resource plan shall, to the maximum extent 
        possible, rely on the use of resources in existence during the 
        period of implementation of the plan.
            ``(2) Supervision and evaluation.--Each Council shall, 
        consistent with State law, supervise and evaluate such staff 
        and other personnel as may be necessary to carry out the 
        functions of the Council under this section.
            ``(3) Conflict of interest.--While assisting the Council in 
        carrying out its duties, staff and other personnel shall not be 
        assigned duties by the designated State agency or any other 
        agency or office of the State, that would create a conflict of 
        interest.
    ``(f) Compensation and Expenses.--The Council may use such 
resources to reimburse members of the Council for reasonable and 
necessary expenses of attending Council meetings and performing Council 
duties (including child care and personal assistance services), and to 
pay compensation to a member of the Council, if such member is not 
employed or must forfeit wages from other employment, for each day the 
member is engaged in performing Council duties.

``SEC. 706. RESPONSIBILITIES OF THE COMMISSIONER.

    ``(a) Approval of State Plans.--
            ``(1) In general.--The Commissioner shall approve any State 
        plan submitted under section 704 that the Commissioner 
        determines meets the requirements of section 704, and shall 
        disapprove any such plan that does not meet such requirements, 
        as soon as practicable after receiving the plan. Prior to such 
        disapproval, the Commissioner shall notify the State of the 
        intention to disapprove the plan, and shall afford such State 
        reasonable notice and opportunity for a hearing.
            ``(2) Procedures.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the provisions of subsections (c) and 
                (d) of section 107 shall apply to any State plan 
                submitted to the Commissioner under section 704.
                    ``(B) Application.--For purposes of the application 
                described in subparagraph (A), all references in such 
                provisions--
                            ``(i) to the Secretary shall be deemed to 
                        be references to the Commissioner; and
                            ``(ii) to section 101 shall be deemed to be 
                        references to section 704.
    ``(b) Indicators.--Not later than October 1, 1993, the Commissioner 
shall develop and publish in the Federal Register indicators of minimum 
compliance consistent with the standards set forth in section 725.
    ``(c) On-Site Compliance Reviews.--
            ``(1) Reviews.--The Commissioner shall annually conduct on-
        site compliance reviews of at least 15 percent of the centers 
        for independent living that receive funds under section 722 and 
        shall periodically conduct such a review of each such center. 
        The Commissioner shall select such centers for review on a 
        random basis. The Commissioner shall annually conduct onsite 
        compliance reviews of at least one-third of the designated 
        State units that receive funding under section 723, and, to the 
        extent necessary to determine the compliance of such a State 
        unit with subsections (f) and (g) of section 723, centers that 
        receive funding under section 723 in such State.
            ``(2) Qualifications of employees conducting reviews.--The 
        Commissioner shall--
                    ``(A) to the maximum extent practicable, carry out 
                such a review by using employees of the Department who 
                are knowledgeable about the provision of independent 
                living services;
                    ``(B) ensure that the employee of the Department 
                with responsibility for supervising such a review shall 
                have such knowledge; and
                    ``(C) ensure that at least one member of a team 
                conducting such a review shall be an individual who--
                            ``(i) is not a government employee; and
                            ``(ii) has experience in the operation of 
                        centers for independent living.
    ``(d) Reports.--The Commissioner shall include, in the annual 
report required under section 13, information on the extent to which 
centers for independent living receiving funds under part C have 
complied with the standards and assurances set forth in section 725. 
The Commissioner may identify individual centers for independent living 
in the analysis. The Commissioner shall report the results of on-site 
compliance reviews, identifying individual centers for independent 
living and other recipients of assistance under this chapter.

                 ``PART B--INDEPENDENT LIVING SERVICES

``SEC. 711. ALLOTMENTS.

    ``(a) In General.--
            ``(1) States.--
                    ``(A) Population basis.--Except as provided in 
                subparagraphs (B) and (C), from sums appropriated for 
                each fiscal year to carry out this part, the 
                Commissioner shall make an allotment to each State 
                whose State plan has been approved under section 706 of 
                an amount bearing the same ratio to such sums as the 
                population of the State bears to the population of all 
                States.
                    ``(B) Maintenance of 1992 amounts.--Subject to the 
                availability of appropriations to carry out this part, 
                the amount of any allotment made under subparagraph (A) 
                to a State for a fiscal year shall not be less than the 
                amount of an allotment made to the State for fiscal 
                year 1992 under part A of this title, as in effect on 
                the day before the date of enactment of the 
                Rehabilitation Act Amendments of 1992.
                    ``(C) Minimums.--Subject to the availability of 
                appropriations to carry out this part, and except as 
                provided in subparagraph (B), the allotment to any 
                State under subparagraph (A) shall be not less than 
                $275,000 or one-third of one percent of the sums made 
                available for the fiscal year for which the allotment 
                is made, whichever is greater, and the allotment of any 
                State under this section for any fiscal year that is 
                less than $275,000 or one-third of one percent of such 
                sums shall be increased to the greater of the two 
                amounts.
            ``(2) Certain territories.--
                    ``(A) In general.--For the purposes of paragraph 
                (1)(C), Guam, American Samoa, the United States Virgin 
                Islands, and the Commonwealth of the Northern Mariana 
                Islands shall not be considered to be States.
                    ``(B) Allotment.--Each jurisdiction described in 
                subparagraph (A) shall be allotted under paragraph 
                (1)(A) not less than one-eighth of one percent of the 
                amounts made available for purposes of this part for 
                the fiscal year for which the allotment is made.
            ``(3) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total amount 
        appropriated to carry out this part exceeds the total amount 
        appropriated to carry out this part for the preceding fiscal 
        year, the Commissioner shall increase the minimum allotment 
        under paragraph (1)(C) by a percentage that shall not exceed 
        the percentage increase in the total amount appropriated to 
        carry out this part between the preceding fiscal year and the 
        fiscal year involved.
    ``(b) Proportional Reduction.--To provide allotments to States in 
accordance with subsection (a)(1)(B), to provide minimum allotments to 
States (as increased under subsection (a)(3)) under subsection 
(a)(1)(C), or to provide minimum allotments to States under subsection 
(a)(2)(B), the Commissioner shall proportionately reduce the allotments 
of the remaining States under subsection (a)(1)(A), with such 
adjustments as may be necessary to prevent the allotment of any such 
remaining State from being reduced to less than the amount required by 
subsection (a)(1)(B).
    ``(c) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a State for any fiscal year will not be 
expended by such State in carrying out the provisions of this part, the 
Commissioner shall make such amount available for carrying out the 
provisions of this part to one or more of the States that the 
Commissioner determines will be able to use additional amounts during 
such year for carrying out such provisions. Any amount made available 
to a State for any fiscal year pursuant to the preceding sentence 
shall, for the purposes of this section, be regarded as an increase in 
the allotment of the State (as determined under the preceding 
provisions of this section) for such year.

``SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.

    ``(a) Payments.--From the allotment of each State for a fiscal year 
under section 711, the State shall be paid the Federal share of the 
expenditures incurred during such year under its State plan approved 
under section 706. Such payments may be made (after necessary 
adjustments on account of previously made overpayments or 
underpayments) in advance or by way of reimbursement, and in such 
installments and on such conditions as the Commissioner may determine.
    ``(b) Federal Share.--
            ``(1) In general.--The Federal share with respect to any 
        State for any fiscal year shall be 90 percent of the 
        expenditures incurred by the State during such year under its 
        State plan approved under section 706.
            ``(2) Non-federal share.--The non-Federal share of the cost 
        of any project that receives assistance through an allotment 
        under this part may be provided in cash or in kind, fairly 
        evaluated, including plant, equipment, or services.

``SEC. 713. AUTHORIZED USES OF FUNDS.

    ``The State may use funds received under this part to provide the 
resources described in section 705(e), relating to the Statewide 
Independent Living Council, and may use funds received under this 
part--
            ``(1) to provide independent living services to individuals 
        with significant disabilities;
            ``(2) to demonstrate ways to expand and improve independent 
        living services;
            ``(3) to support the operation of centers for independent 
        living that are in compliance with the standards and assurances 
        set forth in subsections (b) and (c) of section 725;
            ``(4) to support activities to increase the capacities of 
        public or nonprofit agencies and organizations and other 
        entities to develop comprehensive approaches or systems for 
        providing independent living services;
            ``(5) to conduct studies and analyses, gather information, 
        develop model policies and procedures, and present information, 
        approaches, strategies, findings, conclusions, and 
        recommendations to Federal, State, and local policymakers in 
        order to enhance independent living services for individuals 
        with disabilities;
            ``(6) to train individuals with disabilities and 
        individuals providing services to individuals with disabilities 
        and other persons regarding the independent living philosophy; 
        and
            ``(7) to provide outreach to populations that are unserved 
        or underserved by programs under this title, including minority 
        groups and urban and rural populations.

``SEC. 714. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of the fiscal years 1998 through 
2004.

                ``PART C--CENTERS FOR INDEPENDENT LIVING

``SEC. 721. PROGRAM AUTHORIZATION.

    ``(a) In General.--From the funds appropriated for fiscal year 1998 
and for each subsequent fiscal year to carry out this part, the 
Commissioner shall allot such sums as may be necessary to States and 
other entities in accordance with subsections (b) through (d).
    ``(b) Training.--
            ``(1) Grants; contracts; other arrangements.--For any 
        fiscal year in which the funds appropriated to carry out this 
        part exceed the funds appropriated to carry out this part for 
        fiscal year 1993, the Commissioner shall first reserve from 
        such excess, to provide training and technical assistance to 
        eligible agencies, centers for independent living, and 
        Statewide Independent Living Councils for such fiscal year, not 
        less than 1.8 percent, and not more than 2 percent, of the 
        funds appropriated to carry out this part for the fiscal year 
        involved.
            ``(2) Allocation.--From the funds reserved under paragraph 
        (1), the Commissioner shall make grants to, and enter into 
        contracts and other arrangements with, entities who have 
        experience in the operation of centers for independent living 
        to provide such training and technical assistance with respect 
        to planning, developing, conducting, administering, and 
        evaluating centers for independent living.
            ``(3) Funding priorities.--The Commissioner shall conduct a 
        survey of Statewide Independent Living Councils and centers for 
        independent living regarding training and technical assistance 
        needs in order to determine funding priorities for such grants, 
        contracts, and other arrangements.
            ``(4) Review.--To be eligible to receive a grant or enter 
        into a contract or other arrangement under this subsection, 
        such an entity shall submit an application to the Commissioner 
        at such time, in such manner, and containing a proposal to 
        provide such training and technical assistance, and containing 
        such additional information as the Commissioner may require. 
        The Commissioner shall provide for peer review of grant 
        applications by panels that include persons who are not 
        government employees and who have experience in the operation 
        of centers for independent living.
            ``(5) Prohibition on combined funds.--No funds reserved by 
        the Commissioner under this subsection may be combined with 
        funds appropriated under any other Act or part of this Act if 
        the purpose of combining funds is to make a single 
        discretionary grant or a single discretionary payment, unless 
        such funds appropriated under this chapter are separately 
        identified in such grant or payment and are used for the 
        purposes of this chapter.
    ``(c) In General.--
            ``(1) States.--
                    ``(A) Population basis.--After the reservation 
                required by subsection (b) has been made, and except as 
                provided in subparagraphs (B) and (C), from the 
                remainder of the amounts appropriated for each such 
                fiscal year to carry out this part, the Commissioner 
                shall make an allotment to each State whose State plan 
                has been approved under section 706 of an amount 
                bearing the same ratio to such remainder as the 
                population of the State bears to the population of all 
                States.
                    ``(B) Maintenance of 1992 amounts.--Subject to the 
                availability of appropriations to carry out this part, 
                the amount of any allotment made under subparagraph (A) 
                to a State for a fiscal year shall not be less than the 
                amount of financial assistance received by centers for 
                independent living in the State for fiscal year 1992 
                under part B of this title, as in effect on the day 
                before the date of enactment of the Rehabilitation Act 
                Amendments of 1992.
                    ``(C) Minimums.--Subject to the availability of 
                appropriations to carry out this part and except as 
                provided in subparagraph (B), for a fiscal year in 
                which the amounts appropriated to carry out this part 
                exceed the amounts appropriated for fiscal year 1992 to 
                carry out part B of this title, as in effect on the day 
                before the date of enactment of the Rehabilitation Act 
                Amendments of 1992--
                            ``(i) if such excess is not less than 
                        $8,000,000, the allotment to any State under 
                        subparagraph (A) shall be not less than 
                        $450,000 or one-third of one percent of the 
                        sums made available for the fiscal year for 
                        which the allotment is made, whichever is 
                        greater, and the allotment of any State under 
                        this section for any fiscal year that is less 
                        than $450,000 or one-third of one percent of 
                        such sums shall be increased to the greater of 
                        the two amounts;
                            ``(ii) if such excess is not less than 
                        $4,000,000 and is less than $8,000,000, the 
                        allotment to any State under subparagraph (A) 
                        shall be not less than $400,000 or one-third of 
                        one percent of the sums made available for the 
                        fiscal year for which the allotment is made, 
                        whichever is greater, and the allotment of any 
                        State under this section for any fiscal year 
                        that is less than $400,000 or one-third of one 
                        percent of such sums shall be increased to the 
                        greater of the two amounts; and
                            ``(iii) if such excess is less than 
                        $4,000,000, the allotment to any State under 
                        subparagraph (A) shall approach, as nearly as 
                        possible, the greater of the two amounts 
                        described in clause (ii).
            ``(2) Certain territories.--
                    ``(A) In general.--For the purposes of paragraph 
                (1)(C), Guam, American Samoa, the United States Virgin 
                Islands, and the Commonwealth of the Northern Mariana 
                Islands shall not be considered to be States.
                    ``(B) Allotment.--Each jurisdiction described in 
                subparagraph (A) shall be allotted under paragraph 
                (1)(A) not less than one-eighth of one percent of the 
                remainder for the fiscal year for which the allotment 
                is made.
            ``(3) Adjustment for inflation.--For any fiscal year, 
        beginning in fiscal year 1999, in which the total amount 
        appropriated to carry out this part exceeds the total amount 
        appropriated to carry out this part for the preceding fiscal 
        year, the Commissioner shall increase the minimum allotment 
        under paragraph (1)(C) by a percentage that shall not exceed 
        the percentage increase in the total amount appropriated to 
        carry out this part between the preceding fiscal year and the 
        fiscal year involved.
            ``(4) Proportional reduction.--To provide allotments to 
        States in accordance with paragraph (1)(B), to provide minimum 
        allotments to States (as increased under paragraph (3)) under 
        paragraph (1)(C), or to provide minimum allotments to States 
        under paragraph (2)(B), the Commissioner shall proportionately 
        reduce the allotments of the remaining States under paragraph 
        (1)(A), with such adjustments as may be necessary to prevent 
        the allotment of any such remaining State from being reduced to 
        less than the amount required by paragraph (1)(B).
    ``(d) Reallotment.--Whenever the Commissioner determines that any 
amount of an allotment to a State for any fiscal year will not be 
expended by such State for carrying out the provisions of this part, 
the Commissioner shall make such amount available for carrying out the 
provisions of this part to one or more of the States that the 
Commissioner determines will be able to use additional amounts during 
such year for carrying out such provisions. Any amount made available 
to a State for any fiscal year pursuant to the preceding sentence 
shall, for the purposes of this section, be regarded as an increase in 
the allotment of the State (as determined under the preceding 
provisions of this section) for such year.

``SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
              FEDERAL FUNDING EXCEEDS STATE FUNDING.

    ``(a) Establishment.--
            ``(1) In general.--Unless the director of a designated 
        State unit awards grants under section 723 to eligible agencies 
        in a State for a fiscal year, the Commissioner shall award 
        grants under this section to such eligible agencies for such 
        fiscal year from the amount of funds allotted to the State 
        under subsection (c) or (d) of section 721 for such year.
            ``(2) Grants.--The Commissioner shall award such grants, 
        from the amount of funds so allotted, to such eligible agencies 
        for the planning, conduct, administration, and evaluation of 
        centers for independent living that comply with the standards 
        and assurances set forth in section 725.
    ``(b) Eligible Agencies.--In any State in which the Commissioner 
has approved the State plan required by section 704, the Commissioner 
may make a grant under this section to any eligible agency that--
            ``(1) has the power and authority to carry out the purpose 
        of this part and perform the functions set forth in section 725 
        within a community and to receive and administer funds under 
        this part, funds and contributions from private or public 
        sources that may be used in support of a center for independent 
        living, and funds from other public and private programs;
            ``(2) is determined by the Commissioner to be able to plan, 
        conduct, administer, and evaluate a center for independent 
        living consistent with the standards and assurances set forth 
        in section 725; and
            ``(3) submits an application to the Commissioner at such 
        time, in such manner, and containing such information as the 
        Commissioner may require.
    ``(c) Existing Eligible Agencies.--In the administration of the 
provisions of this section, the Commissioner shall award grants to any 
eligible agency that has been awarded a grant under this part by 
September 30, 1997 unless the Commissioner makes a finding that the 
agency involved fails to meet program and fiscal standards and 
assurances set forth in section 725.
    ``(d) New Centers for Independent Living.--
            ``(1) In general.--If there is no center for independent 
        living serving a region of the State or a region is 
        underserved, and the increase in the allotment of the State is 
        sufficient to support an additional center for independent 
        living in the State, the Commissioner may award a grant under 
        this section to the most qualified applicant proposing to serve 
        such region, consistent with the provisions in the State plan 
        setting forth the design of the State for establishing a 
statewide network of centers for independent living.
            ``(2) Selection.--In selecting from among applicants for a 
        grant under this section for a new center for independent 
        living, the Commissioner--
                    ``(A) shall consider comments regarding the 
                application, if any, by the Statewide Independent 
                Living Council in the State in which the applicant is 
                located;
                    ``(B) shall consider the ability of each such 
                applicant to operate a center for independent living 
                based on--
                            ``(i) evidence of the need for such a 
                        center;
                            ``(ii) any past performance of such 
                        applicant in providing services comparable to 
                        independent living services;
                            ``(iii) the plan for satisfying or 
                        demonstrated success in satisfying the 
                        standards and the assurances set forth in 
                        section 725;
                            ``(iv) the quality of key personnel and the 
                        involvement of individuals with significant 
                        disabilities;
                            ``(v) budgets and cost-effectiveness;
                            ``(vi) an evaluation plan; and
                            ``(vii) the ability of such applicant to 
                        carry out the plans; and
                    ``(C) shall give priority to applications from 
                applicants proposing to serve geographic areas within 
                each State that are currently unserved or underserved 
                by independent living programs, consistent with the 
                provisions of the State plan submitted under section 
                704 regarding establishment of a statewide network of 
                centers for independent living.
            ``(3) Current centers.--Notwithstanding paragraphs (1) and 
        (2), a center for independent living that receives assistance 
        under part B for a fiscal year shall be eligible for a grant 
        for the subsequent fiscal year under this subsection.
    ``(e) Order of Priorities.--The Commissioner shall be guided by the 
following order of priorities in allocating funds among centers for 
independent living within a State, to the extent funds are available:
            ``(1) The Commissioner shall support existing centers for 
        independent living, as described in subsection (c), that comply 
        with the standards and assurances set forth in section 725, at 
        the level of funding for the previous year.
            ``(2) The Commissioner shall provide for a cost-of-living 
        increase for such existing centers for independent living.
            ``(3) The Commissioner shall fund new centers for 
        independent living, as described in subsection (d), that comply 
        with the standards and assurances set forth in section 725.
    ``(f) Nonresidential Agencies.--A center that provides or manages 
residential housing after October 1, 1994, shall not be considered to 
be an eligible agency under this section.
    ``(g) Review.--
            ``(1) In general.--The Commissioner shall periodically 
        review each center receiving funds under this section to 
        determine whether such center is in compliance with the 
        standards and assurances set forth in section 725. If the 
        Commissioner determines that any center receiving funds under 
        this section is not in compliance with the standards and 
        assurances set forth in section 725, the Commissioner shall 
        immediately notify such center that it is out of compliance.
            ``(2) Enforcement.--The Commissioner shall terminate all 
        funds under this section to such center 90 days after the date 
        of such notification unless the center submits a plan to 
        achieve compliance within 90 days of such notification and such 
        plan is approved by the Commissioner.

``SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN STATES IN WHICH 
              STATE FUNDING EQUALS OR EXCEEDS FEDERAL FUNDING.

    ``(a) Establishment.--
            ``(1) In general.--
                    ``(A) Initial year.--
                            ``(i) Determination.--The director of a 
                        designated State unit, as provided in paragraph 
                        (2), or the Commissioner, as provided in 
                        paragraph (3), shall award grants under this 
                        section for an initial fiscal year if the 
                        Commissioner determines that the amount of 
                        State funds that were earmarked by a State for 
                        a preceding fiscal year to support the general 
                        operation of centers for independent living 
                        meeting the requirements of this part equaled 
                        or exceeded the amount of funds allotted to the 
                        State under subsection (c) or (d) of section 
                        721 for such year.
                            ``(ii) Grants.--The director or the 
                        Commissioner, as appropriate, shall award such 
                        grants, from the amount of funds so allotted 
                        for the initial fiscal year, to eligible 
                        agencies in the State for the planning, 
                        conduct, administration, and evaluation of 
                        centers for independent living that comply with 
                        the standards and assurances set forth in 
                        section 725.
                            ``(iii) Regulation.--The Commissioner shall 
                        by regulation specify the preceding fiscal year 
                        with respect to which the Commissioner will 
                        make the determinations described in clause (i) 
                        and subparagraph (B), making such adjustments 
                        as may be necessary to accommodate State 
                        funding cycles such as 2-year funding cycles or 
                        State fiscal years that do not coincide with 
                        the Federal fiscal year.
                    ``(B) Subsequent years.--For each year subsequent 
                to the initial fiscal year described in subparagraph 
                (A), the director of the designated State unit shall 
                continue to have the authority to award such grants 
                under this section if the Commissioner determines that 
                the State continues to earmark the amount of State 
                funds described in subparagraph (A)(i). If the State 
                does not continue to earmark such an amount for a 
                fiscal year, the State shall be ineligible to make 
                grants under this section after a final year following 
                such fiscal year, as defined in accordance with 
                regulations established by the Commissioner, and for 
                each subsequent fiscal year.
            ``(2) Grants by designated state units.--In order for the 
        designated State unit to be eligible to award the grants 
        described in paragraph (1) and carry out this section for a 
        fiscal year with respect to a State, the designated State 
        agency shall submit an application to the Commissioner at such 
        time, and in such manner as the Commissioner may require, 
        including information about the amount of State funds described 
        in paragraph (1) for the preceding fiscal year. If the 
        Commissioner makes a determination described in subparagraph 
        (A)(i) or (B), as appropriate, of paragraph (1), the 
        Commissioner shall approve the application and designate the 
        director of the designated State unit to award the grant and 
        carry out this section.
            ``(3) Grants by commissioner.--If the designated State 
        agency of a State described in paragraph (1) does not submit 
        and obtain approval of an application under paragraph (2), the 
        Commissioner shall award the grant described in paragraph (1) 
        to eligible agencies in the State in accordance with section 
        722.
    ``(b) Eligible Agencies.--In any State in which the Commissioner 
has approved the State plan required by section 704, the director of 
the designated State unit may award a grant under this section to any 
eligible agency that--
            ``(1) has the power and authority to carry out the purpose 
        of this part and perform the functions set forth in section 725 
        within a community and to receive and administer funds under 
        this part, funds and contributions from private or public 
        sources that may be used in support of a center for independent 
        living, and funds from other public and private programs;
            ``(2) is determined by the director to be able to plan, 
        conduct, administer, and evaluate a center for independent 
        living, consistent with the standards and assurances set forth 
        in section 725; and
            ``(3) submits an application to the director at such time, 
        in such manner, and containing such information as the head of 
        the designated State unit may require.
    ``(c) Existing Eligible Agencies.--In the administration of the 
provisions of this section, the director of the designated State unit 
shall award grants under this section to any eligible agency that has 
been awarded a grant under this part by September 30, 1997, unless the 
director makes a finding that the agency involved fails to comply with 
the standards and assurances set forth in section 725.
    ``(d) New Centers for Independent Living.--
            ``(1) In general.--If there is no center for independent 
        living serving a region of the State or the region is unserved 
        or underserved, and the increase in the allotment of the State 
        is sufficient to support an additional center for independent 
        living in the State, the director of the designated State unit 
        may award a grant under this section from among eligible 
        agencies, consistent with the provisions of the State plan 
        under section 704 setting forth the design of the State for 
        establishing a statewide network of centers for independent 
        living.
            ``(2) Selection.--In selecting from among eligible agencies 
        in awarding a grant under this part for a new center for 
        independent living--
                    ``(A) the director of the designated State unit and 
                the chairperson of, or other individual designated by, 
                the Statewide Independent Living Council acting on 
                behalf of and at the direction of the Council, shall 
                jointly appoint a peer review committee that shall rank 
                applications in accordance with the standards and 
                assurances set forth in section 725 and criteria 
                jointly established by such director and such 
                chairperson or individual;
                    ``(B) the peer review committee shall consider the 
                ability of each such applicant to operate a center for 
                independent living, and shall recommend an applicant to 
                receive a grant under this section, based on--
                            ``(i) evidence of the need for a center for 
                        independent living, consistent with the State 
                        plan;
                            ``(ii) any past performance of such 
                        applicant in providing services comparable to 
                        independent living services;
                            ``(iii) the plan for complying with, or 
                        demonstrated success in complying with, the 
                        standards and the assurances set forth in 
                        section 725;
                            ``(iv) the quality of key personnel of the 
                        applicant and the involvement of individuals 
                        with significant disabilities by the applicant;
                            ``(v) the budgets and cost-effectiveness of 
                        the applicant;
                            ``(vi) the evaluation plan of the 
                        applicant; and
                            ``(vii) the ability of such applicant to 
                        carry out the plans; and
                    ``(C) the director of the designated State unit 
                shall award the grant on the basis of the 
                recommendations of the peer review committee if the 
                actions of the committee are consistent with Federal 
                and State law.
            ``(3) Current centers.--Notwithstanding paragraphs (1) and 
        (2), a center for independent living that receives assistance 
        under part B for a fiscal year shall be eligible for a grant 
        for the subsequent fiscal year under this subsection.
    ``(e) Order of Priorities.--Unless the director of the designated 
State unit and the chairperson of the Council or other individual 
designated by the Council acting on behalf of and at the direction of 
the Council jointly agree on another order of priority, the director 
shall be guided by the following order of priorities in allocating 
funds among centers for independent living within a State, to the 
extent funds are available:
            ``(1) The director of the designated State unit shall 
        support existing centers for independent living, as described 
        in subsection (c), that comply with the standards and 
        assurances set forth in section 725, at the level of funding 
        for the previous year.
            ``(2) The director of the designated State unit shall 
        provide for a cost-of-living increase for such existing centers 
        for independent living.
            ``(3) The director of the designated State unit shall fund 
        new centers for independent living, as described in subsection 
        (d), that comply with the standards and assurances set forth in 
        section 725.
    ``(f) Nonresidential Agencies.--A center that provides or manages 
residential housing after October 1, 1994, shall not be considered to 
be an eligible agency under this section.
    ``(g) Review.--
            ``(1) In general.--The director of the designated State 
        unit shall periodically review each center receiving funds 
        under this section to determine whether such center is in 
        compliance with the standards and assurances set forth in 
        section 725. If the director of the designated State unit 
        determines that any center receiving funds under this section 
        is not in compliance with the standards and assurances set 
        forth in section 725, the director of the designated State unit 
        shall immediately notify such center that it is out of 
        compliance.
            ``(2) Enforcement.--The director of the designated State 
        unit shall terminate all funds under this section to such 
        center 90 days after--
                    ``(A) the date of such notification; or
                    ``(B) in the case of a center that requests an 
                appeal under subsection (i), the date of any final 
                decision under subsection (i),
        unless the center submits a plan to achieve compliance within 
        90 days and such plan is approved by the director, or if 
        appealed, by the Commissioner.
    ``(h) On-Site Compliance Review.--The director of the designated 
State unit shall annually conduct onsite compliance reviews of at least 
15 percent of the centers for independent living that receive funding 
under this section in the State. Each team that conducts on-site 
compliance review of centers for independent living shall include at 
least one person who is not an employee of the designated State agency, 
who has experience in the operation of centers for independent living, 
and who is jointly selected by the director of the designated State 
unit and the chairperson of or other individual designated by the 
Council acting on behalf of and at the direction of the Council. A copy 
of this review shall be provided to the Commissioner.
    ``(i) Adverse Actions.--If the director of the designated State 
unit proposes to take a significant adverse action against a center for 
independent living, the center may seek mediation and conciliation to 
be provided by an individual or individuals who are free of conflicts 
of interest identified by the chairperson of or other individual 
designated by the Council. If the issue is not resolved through the 
mediation and conciliation, the center may appeal the proposed adverse 
action to the Commissioner for a final decision.

``SEC. 724. CENTERS OPERATED BY STATE AGENCIES.

    ``A State that receives assistance for fiscal year 1993 with 
respect to a center in accordance with subsection (a) of this section 
(as in effect on the day before the date of enactment of the 
Rehabilitation Act Amendments of 1998) may continue to receive 
assistance under this part for fiscal year 1994 or a succeeding fiscal 
year if, for such fiscal year--
            ``(1) no nonprofit private agency--
                    ``(A) submits an acceptable application to operate 
                a center for independent living for the fiscal year 
                before a date specified by the Commissioner; and
                    ``(B) obtains approval of the application under 
                section 722 or 723; or
            ``(2) after funding all applications so submitted and 
        approved, the Commissioner determines that funds remain 
        available to provide such assistance.

``SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR INDEPENDENT 
              LIVING.

    ``(a) In General.--Each center for independent living that receives 
assistance under this part shall comply with the standards set out in 
subsection (b) and provide and comply with the assurances set out in 
subsection (c) in order to ensure that all programs and activities 
under this part are planned, conducted, administered, and evaluated in 
a manner consistent with the purposes of this chapter and the objective 
of providing assistance effectively and efficiently.
    ``(b) Standards.--
            ``(1) Philosophy.--The center shall promote and practice 
        the independent living philosophy of--
                    ``(A) consumer control of the center regarding 
                decisionmaking, service delivery, management, and 
                establishment of the policy and direction of the 
                center;
                    ``(B) self-help and self-advocacy;
                    ``(C) development of peer relationships and peer 
                role models; and
                    ``(D) equal access of individuals with significant 
                disabilities to society and to all services, programs, 
                activities, resources, and facilities, whether public 
                or private and regardless of the funding source.
            ``(2) Provision of services.--The center shall provide 
        services to individuals with a range of significant 
        disabilities. The center shall provide services on a cross-
        disability basis (for individuals with all different types of 
        significant disabilities, including individuals with 
        significant disabilities who are members of populations that 
        are unserved or underserved by programs under this title). 
        Eligibility for services at any center for independent living 
        shall be determined by the center, and shall not be based on 
        the presence of any one or more specific significant 
        disabilities.
            ``(3) Independent living goals.--The center shall 
        facilitate the development and achievement of independent 
        living goals selected by individuals with significant 
        disabilities who seek such assistance by the center.
            ``(4) Community options.--The center shall work to increase 
        the availability and improve the quality of community options 
        for independent living in order to facilitate the development 
        and achievement of independent living goals by individuals with 
        significant disabilities.
            ``(5) Independent living core services.--The center shall 
        provide independent living core services and, as appropriate, a 
        combination of any other independent living services.
            ``(6) Activities to increase community capacity.--The 
        center shall conduct activities to increase the capacity of 
        communities within the service area of the center to meet the 
        needs of individuals with significant disabilities.
            ``(7) Resource development activities.--The center shall 
        conduct resource development activities to obtain funding from 
        sources other than this chapter.
    ``(c) Assurances.--The eligible agency shall provide at such time 
and in such manner as the Commissioner may require, such satisfactory 
assurances as the Commissioner may require, including satisfactory 
assurances that--
            ``(1) the applicant is an eligible agency;
            ``(2) the center will be designed and operated within local 
        communities by individuals with disabilities, including an 
        assurance that the center will have a Board that is the 
        principal governing body of the center and a majority of which 
        shall be composed of individuals with significant disabilities;
            ``(3) the applicant will comply with the standards set 
        forth in subsection (b);
            ``(4) the applicant will establish clear priorities through 
        annual and 3-year program and financial planning objectives for 
        the center, including overall goals or a mission for the 
        center, a work plan for achieving the goals or mission, 
        specific objectives, service priorities, and types of services 
        to be provided, and a description that shall demonstrate how 
        the proposed activities of the applicant are consistent with 
        the most recent 3-year State plan under section 704;
            ``(5) the applicant will use sound organizational and 
        personnel assignment practices, including taking affirmative 
        action to employ and advance in employment qualified 
        individuals with significant disabilities on the same terms and 
        conditions required with respect to the employment of 
        individuals with disabilities under section 503;
            ``(6) the applicant will ensure that the majority of the 
        staff, and individuals in decisionmaking positions, of the 
        applicant are individuals with disabilities;
            ``(7) the applicant will practice sound fiscal management, 
        including making arrangements for an annual independent fiscal 
        audit, notwithstanding section 7502(a)(2)(A) of title 31, 
        United States Code;
            ``(8) the applicant will conduct annual self-evaluations, 
        prepare an annual report, and maintain records adequate to 
        measure performance with respect to the standards, containing 
        information regarding, at a minimum--
                    ``(A) the extent to which the center is in 
                compliance with the standards;
                    ``(B) the number and types of individuals with 
                significant disabilities receiving services through the 
                center;
                    ``(C) the types of services provided through the 
                center and the number of individuals with significant 
                disabilities receiving each type of service;
                    ``(D) the sources and amounts of funding for the 
                operation of the center;
                    ``(E) the number of individuals with significant 
                disabilities who are employed by, and the number who 
                are in management and decisionmaking positions in, the 
                center; and
                    ``(F) a comparison, when appropriate, of the 
                activities of the center in prior years with the 
                activities of the center in the most recent year;
            ``(9) individuals with significant disabilities who are 
        seeking or receiving services at the center will be notified by 
        the center of the existence of, the availability of, and how to 
        contact, the client assistance program;
            ``(10) aggressive outreach regarding services provided 
        through the center will be conducted in an effort to reach 
        populations of individuals with significant disabilities that 
        are unserved or underserved by programs under this title, 
        especially minority groups and urban and rural populations;
            ``(11) staff at centers for independent living will receive 
        training on how to serve such unserved and underserved 
        populations, including minority groups and urban and rural 
        populations;
            ``(12) the center will submit to the Statewide Independent 
        Living Council a copy of its approved grant application and the 
        annual report required under paragraph (8);
            ``(13) the center will prepare and submit a report to the 
        designated State unit or the Commissioner, as the case may be, 
        at the end of each fiscal year that contains the information 
        described in paragraph (8) and information regarding the extent 
        to which the center is in compliance with the standards set 
        forth in subsection (b); and
            ``(14) an independent living plan described in section 
        704(e) will be developed unless the individual who would 
        receive services under the plan signs a waiver stating that 
        such a plan is unnecessary.

``SEC. 726. DEFINITIONS.

    ``As used in this part, the term `eligible agency' means a 
consumer-controlled, community-based, cross-disability, nonresidential 
private nonprofit agency.

``SEC. 727. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this part 
such sums as may be necessary for each of the fiscal years 1998 through 
2004.

``CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE 
                                 BLIND

``SEC. 751. DEFINITION.

    ``For purposes of this chapter, the term `older individual who is 
blind' means an individual age 55 or older whose significant visual 
impairment makes competitive employment extremely difficult to attain 
but for whom independent living goals are feasible.

``SEC. 752. PROGRAM OF GRANTS.

    ``(a) In General.--
            ``(1) Authority for grants.--Subject to subsections (b) and 
        (c), the Commissioner may make grants to States for the purpose 
        of providing the services described in subsection (d) to older 
        individuals who are blind.
            ``(2) Designated state agency.--The Commissioner may not 
        make a grant under subsection (a) unless the State involved 
        agrees that the grant will be administered solely by the agency 
        described in section 101(a)(2)(A)(i).
    ``(b) Contingent Competitive Grants.--Beginning with fiscal year 
1993, in the case of any fiscal year for which the amount appropriated 
under section 753 is less than $13,000,000, grants made under 
subsection (a) shall be--
            ``(1) discretionary grants made on a competitive basis to 
        States; or
            ``(2) grants made on a noncompetitive basis to pay for the 
        continuation costs of activities for which a grant was 
        awarded--
                    ``(A) under this chapter; or
                    ``(B) under part C, as in effect on the day before 
                the date of enactment of the Rehabilitation Act 
                Amendments of 1992.
    ``(c) Contingent Formula Grants.--
            ``(1) In general.--In the case of any fiscal year for which 
        the amount appropriated under section 753 is equal to or 
        greater than $13,000,000, grants under subsection (a) shall be 
        made only to States and shall be made only from allotments 
        under paragraph (2).
            ``(2) Allotments.--For grants under subsection (a) for a 
        fiscal year described in paragraph (1), the Commissioner shall 
        make an allotment to each State in an amount determined in 
        accordance with subsection (j), and shall make a grant to the 
        State of the allotment made for the State if the State submits 
        to the Commissioner an application in accordance with 
        subsection (i).
    ``(d) Services Generally.--The Commissioner may not make a grant 
under subsection (a) unless the State involved agrees that the grant 
will be expended only for purposes of--
            ``(1) providing independent living services to older 
        individuals who are blind;
            ``(2) conducting activities that will improve or expand 
        services for such individuals; and
            ``(3) conducting activities to help improve public 
        understanding of the problems of such individuals.
    ``(e) Independent Living Services.--Independent living services for 
purposes of subsection (d)(1) include--
            ``(1) services to help correct blindness, such as--
                    ``(A) outreach services;
                    ``(B) visual screening;
                    ``(C) surgical or therapeutic treatment to prevent, 
                correct, or modify disabling eye conditions; and
                    ``(D) hospitalization related to such 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) independent living skills training, information and 
        referral services, peer counseling, and individual advocacy 
        training; and
            ``(8) other independent living services.
    ``(f) Matching Funds.--
            ``(1) In general.--The Commissioner may not make a grant 
        under subsection (a) unless the State involved agrees, with 
        respect to the costs of the program to be carried out by the 
        State pursuant to such subsection, to make available (directly 
        or through donations from public or private entities) non-
        Federal contributions toward such costs in an amount that is 
        not less than $1 for each $9 of Federal funds provided in the 
        grant.
            ``(2) Determination of amount contributed.--Non-Federal 
        contributions required in paragraph (1) may be in cash or in 
        kind, fairly evaluated, including plant, equipment, or 
        services. Amounts provided by the Federal Government, or 
        services assisted or subsidized to any significant extent by 
        the Federal Government, may not be included in determining the 
        amount of such non-Federal contributions.
    ``(g) Certain Expenditures of Grants.--A State may expend a grant 
under subsection (a) to carry out the purposes specified in subsection 
(d) through grants to public and nonprofit private agencies or 
organizations.
    ``(h) Requirement Regarding State Plan.--The Commissioner may not 
make a grant under subsection (a) unless the State involved agrees 
that, in carrying out subsection (d)(1), the State will seek to 
incorporate into the State plan under section 704 any new methods and 
approaches relating to independent living services for older 
individuals who are blind.
    ``(i) Application for Grant.--
            ``(1) In general.--The Commissioner may not make a grant 
        under subsection (a) unless an application for the grant is 
        submitted to the Commissioner and the application is in such 
        form, is made in such manner, and contains such agreements, 
        assurances, and information as the Commissioner determines to 
        be necessary to carry out this section (including agreements, 
        assurances, and information with respect to any grants under 
        subsection (j)(4)).
            ``(2) Contents.--An application for a grant under this 
        section shall contain--
                    ``(A) an assurance that the agency described in 
                subsection (a)(2) will prepare and submit to the 
                Commissioner a report, at the end of each fiscal year, 
                with respect to each project or program the agency 
                operates or administers under this section, whether 
                directly or through a grant or contract, which report 
                shall contain, at a minimum, information on--
                            ``(i) the number and types of older 
                        individuals who are blind and are receiving 
                        services;
                            ``(ii) the types of services provided and 
                        the number of older individuals who are blind 
                        and are receiving each type of service;
                            ``(iii) the sources and amounts of funding 
                        for the operation of each project or program;
                            ``(iv) the amounts and percentages of 
                        resources committed to each type of service 
                        provided;
                            ``(v) data on actions taken to employ, and 
                        advance in employment, qualified individuals 
                        with significant disabilities, including older 
                        individuals who are blind; and
                            ``(vi) a comparison, if appropriate, of 
                        prior year activities with the activities of 
                        the most recent year;
                    ``(B) an assurance that the agency will--
                            ``(i) provide services that contribute to 
                        the maintenance of, or the increased 
                        independence of, older individuals who are 
                        blind; and
                            ``(ii) 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
                    ``(C) an assurance that the application is 
                consistent with the State plan for providing 
                independent living services required by section 704.
    ``(j) Amount of Formula Grant.--
            ``(1) In general.--Subject to the availability of 
        appropriations, the amount of an allotment under subsection (a) 
        for a State for a fiscal year shall be the greater of--
                    ``(A) the amount determined under paragraph (2); or
                    ``(B) the amount determined under paragraph (3).
            ``(2) Minimum allotment.--
                    ``(A) States.--In the case of the several States, 
                the District of Columbia, and the Commonwealth of 
                Puerto Rico, the amount referred to in subparagraph (A) 
                of paragraph (1) for a fiscal year is the greater of--
                            ``(i) $225,000; or
                            ``(ii) an amount equal to one-third of one 
                        percent of the amount appropriated under 
                        section 753 for the fiscal year and available 
                        for allotments under subsection (a).
                    ``(B) Certain territories.--In the case of Guam, 
                American Samoa, the United States Virgin Islands, and 
                the Commonwealth of the Northern Mariana Islands, the 
                amount referred to in subparagraph (A) of paragraph (1) 
                for a fiscal year is $40,000.
            ``(3) Formula.--The amount referred to in subparagraph (B) 
        of paragraph (1) for a State for a fiscal year is the product 
        of--
                    ``(A) the amount appropriated under section 753 and 
                available for allotments under subsection (a); and
                    ``(B) a percentage equal to the quotient of--
                            ``(i) an amount equal to the number of 
                        individuals residing in the State who are not 
                        less than 55 years of age; divided by
                            ``(ii) an amount equal to the number of 
                        individuals residing in the United States who 
                        are not less than 55 years of age.
            ``(4) Disposition of certain amounts.--
                    ``(A) Grants.--From the amounts specified in 
                subparagraph (B), the Commissioner may make grants to 
                States whose population of older individuals who are 
                blind has a substantial need for the services specified 
                in subsection (d) relative to the populations in other 
                States of older individuals who are blind.
                    ``(B) Amounts.--The amounts referred to in 
                subparagraph (A) are any amounts that are not paid to 
                States under subsection (a) as a result of--
                            ``(i) the failure of any State to submit an 
                        application under subsection (i);
                            ``(ii) the failure of any State to prepare 
                        within a reasonable period of time such 
                        application in compliance with such subsection; 
                        or
                            ``(iii) any State informing the 
                        Commissioner that the State does not intend to 
                        expend the full amount of the allotment made 
                        for the State under subsection (a).
                    ``(C) Conditions.--The Commissioner may not make a 
                grant under subparagraph (A) unless the State involved 
                agrees that the grant is subject to the same conditions 
                as grants made under subsection (a).

``SEC. 753. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this chapter 
such sums as may be necessary for each of the fiscal years 1998 through 
2004.''.

SEC. 11. HELEN KELLER NATIONAL CENTER ACT.

    (a) General Authorization of Appropriations.--The first sentence of 
section 205(a) of the Helen Keller National Center Act (29 U.S.C. 
1904(a)) is amended by striking ``1993 through 1997'' and inserting 
``1998 through 2000''.
    (b) Helen Keller National Center Federal Endowment Fund.--The first 
sentence of section 208(h) of such Act (29 U.S.C. 1907(h)) is amended 
by striking ``1993 through 1997'' and inserting ``1998 through 2000''.
    (c) Registry.--Such Act (29 U.S.C. 1901 et seq.) is amended by 
adding at the end the following:

``SEC. 209. NATIONAL REGISTRY AND AUTHORIZATION OF APPROPRIATIONS.

    ``(a) The Center shall establish and maintain a national registry 
of individuals who are deaf-blind, using funds made available under 
subsection (b).
    ``(b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out subsection (a) such sums as may be necessary 
for each of fiscal years 1998 through 2000.''.

SEC. 12. PRESIDENT'S COMMITTEE ON NATIONAL EMPLOY THE PHYSICALLY 
              HANDICAPPED WEEK.

    Section 2(2) of the Joint Resolution entitled ``Joint Resolution 
authorizing an appropriation for the work of the President's Committee 
on National Employ the Physically Handicapped Week'', approved July 11, 
1949 (36 U.S.C. 155b(2)) is amended by inserting ``solicit,'' before 
``accept,''.

SEC. 13. PEER REVIEW.

    Part B of title IV of the Department of Education Organization Act 
(20 U.S.C. 3471 et seq.) is amended by inserting before section 427 the 
following:

``SEC. 426A. PEER REVIEW.

    ``The Federal Advisory Committee Act (5 U.S.C. App.) shall not 
apply to peer review panels established by the Secretary to evaluate 
applications for financial assistance awarded on a competitive 
basis.''.

SEC. 14. CONFORMING AMENDMENTS.

    (a) Preparation.--After consultation with the appropriate 
committees of Congress and the Director of the Office of Management and 
Budget, the Secretary of Education shall prepare recommended 
legislation containing technical and conforming amendments to reflect 
the changes made by this Act.
    (b) Submission to Congress.--Not later than 6 months after the date 
of enactment of this Act, the Secretary of Education shall submit to 
Congress the recommended legislation referred to under subsection (a).
                                 <all>
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