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therapy, speech pathology and audiology,
physical education, therapeutic recreation,
community rehabilitation programs, or
prosthetics and orthotics;
‘‘(ii) projects to train personnel to pro-
vide—
‘‘(I) services to individuals with
specific disabilities or individuals with
disabilities who have specific impedi-
ments to rehabilitation, including indi-
viduals who are members of popu-
lations that are unserved or under-
served by programs under this Act;
‘‘(II) job development and job
placement services to individuals with
disabilities;
‘‘(III) supported employment serv-
ices, including services of employment
specialists for individuals with disabil-
ities;
‘‘(IV) specialized services for indi-
viduals with significant disabilities; or
‘‘(V) recreation for individuals
with disabilities;
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‘‘(iii) projects to train personnel in
other fields contributing to the rehabilita-
tion of individuals with disabilities; and
‘‘(iv) projects to train personnel in the
use, applications, and benefits of rehabilita-
tion 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 ad-
visory committees, as practicum sites, in cur-
riculum 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 employ-
ers that would meet the requirements of para-
graph (4)(A)(i); and
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‘‘(C) an assurance that data on the employ-
ment 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 sub-
section, the grant or contract recipient may ex-
tend 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 indi-
vidual who receives a scholarship, for the first
academic year after the date of enactment of the
Rehabilitation Act Amendments of 1998, utiliz-
ing funds provided under such grant or contract
shall enter into an agreement with the recipient
under which the individual shall—
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‘‘(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 rehabilita-
tion 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 in-
dividual, within a period, beginning
after the recipient completes the train-
ing for which the scholarship was
awarded, of not more than the sum of
the number of years in the period de-
scribed in this subclause and 2 addi-
tional years;
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‘‘(ii) directly provide or administer
services, conduct research, or furnish train-
ing, 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
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with such procedures, and containing such information as
the Commissioner may require, including a detailed de-
scription 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 num-
ber 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 pro-
grams 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 inter-
preters to meet the communications needs of in-
dividuals who are deaf or hard of hearing, and
individuals who are deaf-blind, the Commis-
sioner, acting through a Federal office respon-
sible for deafness and communicative disorders,
may award grants to public or private nonprofit
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agencies or organizations to pay part of the
costs—
‘‘(i) for the establishment of interpreter
training programs; or
‘‘(ii) to enable such agencies or organi-
zations to provide financial assistance for
ongoing interpreter training programs.
‘‘(B) GEOGRAPHIC
AREAS.—The Commis-
sioner 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 pri-
ority to public or private nonprofit agencies or
organizations with existing programs that have
a demonstrated capacity for providing inter-
preter 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
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‘‘(ii) pursuant to an agreement with
the Director of the Office of the Special
Education Program (established under sec-
tion 603 of the Individuals with Disabilities
Education Act (as amended by section 101
of the Individuals with Disabilities Edu-
cation 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 award-
ed 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 con-
taining such information as the Commissioner may
require, including—
‘‘(A) a description of the manner in which
an interpreter training program will be devel-
oped and operated during the 5-year period fol-
lowing the date on which a grant is received by
the applicant under this subsection;
‘‘(B) a demonstration of the applicant’s ca-
pacity or potential for providing training for in-
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terpreters 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 stand-
ards of competency as the Commissioner may es-
tablish for purposes of this subsection; and
‘‘(D) such other information as the Commis-
sioner 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 Commis-
sioner, subject to the provisions of section 306, may require
that recipients of grants or contracts under this section pro-
vide 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
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the purposes of the Act, including related research and eval-
uation activities.
‘‘(b) ELIGIBLE ENTITIES AND TERMS AND CONDI-
TIONS.—
‘‘(1) ELIGIBLE ENTITIES.—To be eligible to re-
ceive a grant or contract under subsection (a), an en-
tity shall be a State vocational rehabilitation agency,
community rehabilitation program, Indian tribe or
tribal organization, or other public or nonprofit agen-
cy or organization, or as the Commissioner deter-
mines 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 appli-
cation to the Secretary at such time, in such form, and con-
taining such information and assurances as the Commis-
sioner may require, including, if the Commissioner deter-
mines 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 In-
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stitute 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 serv-
ice 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 Com-
missioner shall give priority consideration to—
‘‘(A) projects to provide training, informa-
tion, 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 dis-
abilities;
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‘‘(B) special projects and demonstration
programs of service delivery for adults who are
either low-functioning and deaf or low-function-
ing and hard of hearing;
‘‘(C) innovative methods of promoting con-
sumer choice in the rehabilitation process;
‘‘(D) supported employment, including com-
munity-based supported employment programs
to meet the needs of individuals with the most
significant disabilities or to provide technical as-
sistance to States and community organizations
to improve and expand the provision of sup-
ported 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 In-
dividuals with Disabilities Education Act
(as amended by section 101 of the Individ-
uals 
with 
Disabilities 
Education 
Act
Amendments of 1997 (Public Law 105–17));
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‘‘(ii) organizations that meet the defi-
nition 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 de-
scribed in paragraph (1)(A) shall, to the extent
practicable, coordinate training and information
activities with Centers for Independent Living.
‘‘(3) ADDITIONAL COMPETITIONS.—In announc-
ing competitions for grants and contracts under this
section, the Commissioner may require that appli-
cants 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 dis-
abilities;
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‘‘(iv) low-incidence disability popu-
lations; and
‘‘(v) individuals residing in federally
designated empowerment zones and enter-
prise communities.
‘‘(G) Expansion of employment opportuni-
ties for individuals with disabilities.
‘‘(H) Systems change projects to promote
meaningful access of individuals with disabilities
to employment-related services under the Work-
force Investment Partnership Act of 1998 and
under other Federal laws.
‘‘(I) Innovative methods of promoting the
achievement of high-quality employment out-
comes.
‘‘(J) The demonstration of the effectiveness
of early intervention activities in improving em-
ployment outcomes.
‘‘(K) Alternative methods of providing af-
fordable transportation services to individuals
with disabilities who are employed, seeking em-
ployment, or receiving vocational rehabilitation
services from public or private organizations and
who reside in geographic areas in which public
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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 eli-
gible 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 farm-
workers, as determined in accordance with rules pre-
scribed 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).
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‘‘(2) ELIGIBLE ENTITIES.—To be eligible to re-
ceive a grant under paragraph (1), an entity shall
be—
‘‘(A) a State designated agency;
‘‘(B) a nonprofit agency working in collabo-
ration with a State agency described in subpara-
graph (A); or
‘‘(C) a local agency working in collabora-
tion with a State agency described in subpara-
graph (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 transpor-
tation for individuals and family members de-
scribed in paragraph (1) as necessary for the re-
habilitation of such individuals.
‘‘(B) REQUIREMENT.—Maintenance pay-
ments under this paragraph shall be provided in
a manner consistent with any maintenance pay-
ments provided to other individuals with disabil-
ities in the State under this Act.
‘‘(4) ASSURANCE OF COOPERATION.—To be eligi-
ble to receive a grant under this section an entity
shall provide assurances (satisfactory to the Commis-
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sioner) 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 experi-
ence in the provision of services to migrant or sea-
sonal farmworkers or their families.
‘‘(5) COORDINATION WITH OTHER PROGRAMS.—
The Commissioner shall administer this section in co-
ordination 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 Pub-
lic 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 nec-
essary 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, sub-
ject to the provisions of section 306, shall make
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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 relat-
ed experiences to aid in the employment, mobil-
ity, socialization, independence, and community
integration of such individuals.
‘‘(B) RECREATION PROGRAMS.—The recre-
ation programs that may be funded using assist-
ance provided under a grant under this section
may include vocational skills development, lei-
sure education, leisure networking, leisure re-
source development, physical education and
sports, scouting and camping, 4–H activities,
music, dancing, handicrafts, art, and home-
making. 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 pro-
grams assist in maximizing the independence
and integration of individuals with disabilities.
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‘‘(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 NONGRANT RESOURCES.—
‘‘(A) IN GENERAL.—A grant may not be
made to an applicant under this section unless
the applicant provides assurances that, with re-
spect to costs of the recreation program to be car-
ried 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.
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‘‘(4) APPLICATION.—To be eligible to receive a
grant under this section, a State, agency, or organiza-
tion shall submit an application to the Commissioner
at such time, in such manner, and containing such
information as the Commissioner may require, in-
cluding 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 pro-
gram 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 mini-
mum, 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.
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‘‘(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 an-
nual 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 PER-
FORMANCE.
‘‘The Commissioner may require that recipients of
grants under this title submit information, including data,
as determined by the Commissioner to be necessary to meas-
ure project outcomes and performance, including any data
needed to comply with the Government Performance and
Results Act.’’.
SEC. 607. 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
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(hereinafter in this title referred to as the ‘National Coun-
cil’), 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 Na-
tional Council after soliciting recommendations from rep-
resentatives 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 in-
dividuals with disabilities, parents or guardians of individ-
uals with disabilities, or other individuals who have sub-
stantial knowledge or experience relating to disability pol-
icy or programs. The members of the National Council shall
be appointed so as to be representative of individuals with
disabilities, national organizations concerned with individ-
uals with disabilities, providers and administrators of serv-
ices to individuals with disabilities, individuals engaged in
conducting medical or scientific research relating to indi-
viduals with disabilities, business concerns, and labor orga-
nizations. A majority of the members of the National Coun-
cil shall be individuals with disabilities. The members of
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the National Council shall be broadly representative of mi-
nority 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 indi-
viduals 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 soci-
ety.
‘‘(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 enact-
ment 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 stag-
gered 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. Mem-
bers may serve after the expiration of their terms until their
successors have taken office.
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‘‘(B) As used in this paragraph, the term ‘full term’
means a term of 3 years.
‘‘(3) Any member appointed to fill a vacancy occur-
ring before the expiration of the term for which such mem-
ber’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 Coun-
cil. The National Council shall meet at the call of the Chair-
person, but not less often than four times each year.
‘‘(d) Eight members of the National Council shall con-
stitute 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 dissemi-
nating findings of such research;
‘‘(2) provide advice to the Commissioner with re-
spect to the policies of and conduct of the Rehabilita-
tion Services Administration;
‘‘(3) advise the President, the Congress, the Com-
missioner, the appropriate Assistant Secretary of the
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Department of Education, and the Director of the Na-
tional Institute on Disability and Rehabilitation Re-
search on the development of the programs to be car-
ried 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 inte-
gration, independence, and productivity of individ-
uals with disabilities;
‘‘(5) review and evaluate on a continuing
basis—
‘‘(A) policies, programs, practices, and pro-
cedures concerning individuals with disabilities
conducted or assisted by Federal departments
and agencies, including programs established or
assisted under this Act or under the Develop-
mental Disabilities Assistance and Bill of Rights
Act; and
‘‘(B) all statutes and regulations pertaining
to Federal programs which assist such individ-
uals with disabilities;
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in order to assess the effectiveness of such policies,
programs, practices, procedures, statutes, and regula-
tions in meeting the needs of individuals with disabil-
ities;
‘‘(6) assess the extent to which such policies, pro-
grams, practices, and procedures facilitate or impede
the promotion of the policies set forth in subpara-
graphs (A) and (B) of section 400(a)(2);
‘‘(7) gather information about the implementa-
tion, 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 Fed-
eral 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 that 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
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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 indi-
viduals 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 Con-
gress 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, train-
ing, prevention, early intervention, and education. The re-
port shall include recommendations for policy change.
‘‘(3) In determining the issues to focus on and the find-
ings, conclusions, and recommendations to include in the
report, the National Council shall seek input from the pub-
lic, particularly individuals with disabilities, representa-
tives of organizations representing a broad range of indi-
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viduals 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 Sched-
ule under section 5382 of title 5, United States Code, in-
cluding 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 Na-
tional 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 ap-
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pointments, the provisions of chapter 75 of such title (relat-
ing 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 Execu-
tive 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 tech-
nical 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 serv-
ices, 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,
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tangible or nontangible, received by gift, devise, be-
quest, or otherwise; and
‘‘(C) enter into contracts and cooperative agree-
ments with Federal and State agencies, private firms,
institutions, and individuals for the conduct of re-
search 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 pro-
vide 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 avail-
able under subsection (a)(2)(B) as is not, in the Secretary’s
judgment, required to meet current withdrawals. Such in-
vestments 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 avail-
able to the National Council to carry out this title.
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‘‘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 com-
mittees to assist the National Council in carrying out its
duties. The members thereof shall serve without compensa-
tion.
‘‘(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 with-
out 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.’’.
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SEC. 608. RIGHTS AND ADVOCACY.
(a) CONFORMING AMENDMENTS TO RIGHTS AND ADVO-
CACY 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 Employ-
ment of the Handicapped’’ and inserting ‘‘Presi-
dent’s Committees on Employment of People
With Disabilities’’; and
(B) in subsection (e), by striking ‘‘individ-
ualized written rehabilitation program’’ and in-
serting ‘‘individualized rehabilitation employ-
ment plan’’.
(2) ACCESS
BOARD.—Section 502 (29 U.S.C.
792) is amended—
(A) in subsection (a)(1), in the sentence fol-
lowing subparagraph (B), by striking ‘‘Chair-
person’’ and inserting ‘‘chairperson’’;
(B) 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 follow-
ing:
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‘‘(11) carry out the responsibilities specified for
the Access Board in section 508’’;
(C) in subsection (d)(2)(A), by inserting be-
fore the semicolon the following: ‘‘and section
508(d)(2)(C)’’;
(D) in subsection (g)(2), by striking ‘‘Com-
mittee on Education and Labor’’ and inserting
‘‘Committee on Education and the Workforce’’;
and
(E) 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. 794(a)) is amended in the first sen-
tence 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 in-
serting the following: ‘‘Any concurrence of the
Access Board under paragraph (2) shall reflect
its consideration of cost studies carried out by
States.’’; and
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(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.
‘‘(a) REQUIREMENTS
FOR FEDERAL DEPARTMENTS
AND AGENCIES.—
‘‘(1) ACCESSIBILITY.—Each Federal department
or agency shall procure, maintain, and use (unless
such procurement, maintenance, or use is not prac-
ticable) electronic and information technology that al-
lows, regardless of the type of medium of the tech-
nology, individuals with disabilities to have access to
and use information and data that is comparable to
the information and data that is accessible to and
used by individuals who are not individuals with dis-
abilities.
‘‘(2) ELECTRONIC
AND
INFORMATION
TECH-
NOLOGY STANDARDS.—
‘‘(A) IN
GENERAL.—Not later than 18
months after the date of enactment of the Reha-
bilitation Act Amendments of 1998, the Architec-
tural and Transportation Barriers Compliance
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Board (referred to in this section as the ‘Access
Board’), after consultation with the Secretary of
Education, the Administrator of General Serv-
ices, the Director of the Office of Management
and Budget, the Secretary of Commerce, the
Chairman of the Federal Communications Com-
mission, and the head of any other Federal de-
partment or agency that the Access Board deter-
mines to be appropriate, including consultation
on relevant research findings, and after consulta-
tion with the electronic and information tech-
nology industry and appropriate public or non-
profit agencies or organizations, shall issue and
publish standards setting forth—
‘‘(i) for purposes of this section, a defi-
nition of electronic and information tech-
nology that is consistent with the definition
of information technology in section 5002 of
the Clinger-Cohen Act of 1996 (Public Law
104–106; 110 Stat. 679); and
‘‘(ii) the technical and functional per-
formance criteria necessary to implement
the requirements set forth in paragraph (1).
‘‘(B) REVIEW AND AMENDMENT.—The Ac-
cess Board shall periodically review and, as ap-
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propriate, amend the standards required under
subparagraph (A) to reflect technological ad-
vances or changes in electronic and information
technology.
‘‘(3) INCORPORATION OF STANDARDS.—Not later
than 6 months after the Access Board publishes the
standards required under paragraph (2), the Federal
Acquisition Regulatory Council shall revise the Fed-
eral Acquisition Regulation and each Federal depart-
ment or agency shall revise the Federal procurement
policies and directives under the control of the depart-
ment or agency to incorporate those standards.
‘‘(b) TECHNICAL ASSISTANCE.—The Administrator of
General Services and the Access Board shall provide tech-
nical assistance to individuals and Federal departments
and agencies concerning the requirements of this section.
‘‘(c) AGENCY EVALUATIONS.—Not later than 6 months
after the date of enactment of the Rehabilitation Act
Amendments of 1998, the head of each Federal department
or agency shall evaluate the extent to which the electronic
and information technology of the department or agency is
accessible to individuals with disabilities, and submit a re-
port containing the evaluation to the Attorney General.
‘‘(d) REPORTS.—
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‘‘(1) INTERIM
REPORT.—Not later than 18
months after the date of enactment of the Rehabilita-
tion Act Amendments of 1998, the Attorney General
shall prepare and submit to the President a report
containing information on and recommendations re-
garding the state of electronic and information tech-
nology accessibility in the Federal Government for in-
dividuals with disabilities.
‘‘(2) BIENNIAL
REPORTS.—Not later than 3
years after the date of enactment of the Rehabilitation
Act Amendments of 1998, and every 2 years there-
after, the Attorney General shall prepare and submit
to the President and Congress a report containing in-
formation on and recommendations regarding the
state of Federal department and agency compliance
with the requirements of this section, including ac-
tions regarding individual complaints under sub-
section (f).
‘‘(e) COOPERATION.—Each head of a Federal depart-
ment or agency (including the Access Board, the Equal Em-
ployment Opportunity Commission, and the General Serv-
ices Administration) shall provide the Attorney General
with such information as the Attorney General determines
is necessary to conduct the evaluations under subsection (c)
and prepare the reports under subsection (d).
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‘‘(f) ENFORCEMENT.—
‘‘(1) GENERAL.—Any individual with a disabil-
ity, including a Federal employee or a person served
by a Federal agency, may file a complaint alleging
that a procurement action initiated after the date de-
scribed in paragraph (4) fails to comply with sub-
section (a)(1).
‘‘(2) ADMINISTRATIVE COMPLAINTS.—Complaints
filed under paragraph (1) shall be filed with the Fed-
eral department or agency alleged to be in noncompli-
ance. The Federal department or agency receiving the
complaint shall apply the complaint procedures estab-
lished to implement section 504 for resolving allega-
tions of discrimination in a federally conducted pro-
gram or activity.
‘‘(3) CIVIL ACTIONS.—The remedies, procedures,
and rights set forth in sections 505(a)(2) and 505(b)
shall be the remedies, procedures, and rights available
to any individual alleging that a procurement action
initiated after the date described in paragraph (4)
fails to comply with subsection (a)(1).
‘‘(4) APPLICATION.—This subsection shall apply
to Federal departments and agencies on the date of
publication of the standards issued pursuant to sub-
section (a)(2)(A).
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‘‘(g) RELATIONSHIP TO OTHER FEDERAL LAWS.—
This section shall not be construed to limit any right, rem-
edy, or procedure otherwise available under any provision
of Federal law (including sections 501 through 505) that
provides greater or equal protection for the rights of indi-
viduals with disabilities than this section.’’.
(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 sup-
port 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 assist-
ance program under section 112; and
‘‘(2) are ineligible for protection and advocacy
programs under part C of the Developmental Disabil-
ities Assistance and Bill of Rights Act (42 U.S.C.
6041 et seq.) because the individuals do not have a de-
velopmental 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
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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 author-
ized under this section for individuals with disabilities who
meet the requirements of paragraphs (1) and (2) of sub-
section (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 per-
cent of the amount to provide training and tech-
nical 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 appro-
priated to carry out this section equals or exceeds
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$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 ad-
vocacy programs authorized under this section for
such individuals.
‘‘(3) SYSTEMS WITHIN STATES.—
‘‘(A) POPULATION BASIS.—Except as pro-
vided 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 availabil-
ity of appropriations to carry out this section,
and except as provided in paragraph (4), the al-
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lotment 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 re-
mainder 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 Common-
wealth 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 fis-
cal 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 Commis-
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amount available for carrying out the provisions of this sec-
tion 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 sec-
tion, be regarded as an increase in the allotment of the sys-
tem (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 appli-
cation 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 re-
quirements of this section, including assurances that the eli-
gible system will—
‘‘(1) have in effect a system to protect and advo-
cate 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, adminis-
trative, and other appropriate remedies or approaches
to ensure the protection of, and advocacy for, the
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rights of such individuals within the State or the
American Indian consortium who are individuals de-
scribed in subsection (a);
‘‘(4) provide information on and make referrals
to programs and services addressing the needs of indi-
viduals with disabilities in the State or the American
Indian consortium;
‘‘(5) develop a statement of objectives and prior-
ities on an annual basis, and provide to the public,
including individuals with disabilities and, as appro-
priate, the individuals’ representatives, an oppor-
tunity to comment on the objectives and priorities es-
tablished by, and activities of, the system including—
‘‘(A) the objectives and priorities for the ac-
tivities of the system for each year and the ra-
tionale 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 pro-
gram 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
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the Protection and Advocacy for Mentally Ill In-
dividuals 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 indi-
viduals with disabilities are afforded equal oppor-
tunity 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 provi-
sions 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 In-
dian consortium provides otherwise.
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‘‘(2) CARRYOVER.—Any amount paid to an eli-
gible 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 con-
sortium 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 per-
formance 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 infor-
mation 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.
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‘‘(k) REPORT.—The Commissioner shall annually pre-
pare and submit to the Committee on Education and the
Workforce of the House of Representatives and the Commit-
tee on Labor and Human Resources of the Senate a report
describing the types of services and activities being under-
taken by programs funded under this section, the total num-
ber 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 sys-
tem’ means a protection and advocacy system that is
established under part C of the Developmental Dis-
abilities Assistance and Bill of Rights Act (42 U.S.C.
6041 et seq.) and that meets the requirements of sub-
section (f).
‘‘(2) AMERICAN INDIAN CONSORTIUM.—The term
‘American Indian consortium’ means a consortium
established as described in section 142 of the Develop-
mental Disabilities Assistance and Bill of Rights Act
(42 U.S.C. 6042).’’.
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SEC. 609. 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 
OP-
PORTUNITIES FOR INDIVID-
UALS WITH DISABILITIES
‘‘SEC. 601. SHORT TITLE.
‘‘This title may be cited as the ‘Employment Opportu-
nities 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 find-
ings:
‘‘(1) It is in the best interest of the United States
to identify and promote increased employment oppor-
tunities 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 ac-
cess to telecommuting employment opportunities. It
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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 recog-
nize that individuals with disabilities are excellent
candidates for telecommuting employment opportuni-
ties.
‘‘(5) Individuals with disabilities, especially
those living in rural areas, often do not have access
to accessible transportation, and in such cases tele-
commuting presents an excellent opportunity for the
employment of such individuals.
‘‘(6) It is in the best interests of economic devel-
opment agencies, venture capitalists, and financial
institutions for the Federal Government to dem-
onstrate that individuals with disabilities, who wish
to become or who are self-employed, can meet the cri-
teria for assistance, investment of capital, and busi-
ness 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;
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HR 1385 EAS
‘‘(B) gain access to employment opportuni-
ties; and
‘‘(C) demonstrate their abilities, capabili-
ties, interests, and preferences regarding employ-
ment in positions that are increasingly being of-
fered 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-lim-
ited grants, contracts, or cooperative agreements to
public and private entities—
‘‘(A) provide funds, in accordance with sec-
tion 612, to enable individuals with disabilities
to identify and secure employment opportunities
involving telecommuting; and
‘‘(B) encourage employers to become part-
ners in providing telecommuting placements for
individuals with disabilities through the involve-
ment of such employers in telecommuting
projects that continue and expand opportunities
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for the provision of telecommuting placements to
individuals with disabilities beyond those oppor-
tunities that are currently facilitated by the tele-
commuting projects; and
‘‘(2) through the awarding of 1-time, time-lim-
ited 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 accord-
ance with section 613; and
‘‘(B) encourage entities to assist more indi-
viduals with disabilities to engage in self-em-
ployment enterprises.
‘‘SEC. 612. PROJECTS IN TELECOMMUTING FOR INDIVID-
UALS WITH DISABILITIES.
‘‘(a) IN GENERAL.—The Commissioner shall, on a
competitive basis, award 1-time, time-limited grants, con-
tracts, 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—
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‘‘(A) an entity carrying out a Project With
Industry described in part B;
‘‘(B) a designated State agency;
‘‘(C) a statewide workforce investment part-
nership or local workforce investment partner-
ship;
‘‘(D) a public educational agency;
‘‘(E) a training institution, which may in-
clude 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 Commis-
sioner determines to be appropriate; or
‘‘(I) a combination or consortium of the en-
tities described in subparagraphs (A) through
(H);
‘‘(2) have 3 or more years of experience in assist-
ing individuals with disabilities in securing, retain-
ing, regaining, or advancing in employment;
‘‘(3) demonstrate that such entity has the capac-
ity to secure full- and part-time employment involv-
ing telecommuting for individuals with disabilities;
and
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‘‘(4) submit an application that meets the re-
quirements 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 infor-
mation concerning the telecommuting project to be funded
under the grant, contract, or agreement as the Commis-
sioner 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 par-
ticipate 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 part-
ner 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
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individuals with disabilities who will be employed as
the result of the assistance provided by the tele-
commuting project;
‘‘(5) with respect to any employers that have in-
dicated an interest in offering telecommuting employ-
ment opportunities to individuals with disabilities, a
description of—
‘‘(A) the identity of such employers; and
‘‘(B) the manner in which additional em-
ployers would be recruited under the telecommut-
ing project;
‘‘(6) a description of the manner in which indi-
viduals with disabilities will be identified and selected
to participate in the telecommuting project;
‘‘(7) a description of the jobs that will be tar-
geted by the telecommuting project;
‘‘(8) a description of the process by which indi-
viduals with disabilities will be matched with employ-
ers 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
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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 disabil-
ities for telecommuting placements;
‘‘(2) the conduct of marketing activities with re-
spect to employers;
‘‘(3) the purchase of training services for an in-
dividual with a disability who is going to assume a
telecommuting placement;
‘‘(4) the purchase of equipment, materials, tele-
phone 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 place-
ments;
‘‘(6) the provision of technical assistance to em-
ployers, including technical assistance regarding rea-
sonable accommodations with regard to individuals
with disabilities participating in telecommuting
placements; and
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‘‘(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 Safe-
ty 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 pro-
spective employers and individuals with disabilities,
who are to assume telecommuting placements, have a
clear understanding of how the individual’s work per-
formance will be monitored and evaluated by the em-
ployer;
‘‘(4) identify and make available support serv-
ices for individuals with disabilities in telecommuting
placements;
‘‘(5) develop procedures that allow the tele-
commuting project, the employer, and the individual
with a disability to reach agreement on their respec-
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tive responsibilities with regard to establishing and
maintaining the telecommuting placement; and
‘‘(6) for each year of a telecommuting project,
submit an annual report to the Commissioner con-
cerning—
‘‘(A) the number of individuals with dis-
abilities placed in telecommuting positions and
whether the goal described in the agreement en-
tered into under paragraph (2) was met;
‘‘(B) the number of individuals with dis-
abilities employed as salaried employees and
their annual salaries;
‘‘(C) the number of individuals with dis-
abilities employed as independent contractors
and their annual incomes;
‘‘(D) the number of individuals with dis-
abilities that received benefits from their employ-
ers;
‘‘(E) the number of individuals with dis-
abilities in telecommuting placements still work-
ing after—
‘‘(i) 6 months; and
‘‘(ii) 12 months; and
‘‘(F) any reports filed with the Occupa-
tional Safety and Health Administration.
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‘‘(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 INDIVID-
UALS WITH DISABILITIES.
‘‘(a) IN GENERAL.—The Commissioner shall, on a
competitive basis, award 1-time, time-limited grants, con-
tracts, 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;
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‘‘(F) a private organization, including em-
ployers and organizations related to individuals
with disabilities;
‘‘(G) any other entity that the Commis-
sioner 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 capac-
ity to assist clients, including clients with disabilities,
to successfully engage in self-employment enterprises;
and
‘‘(3) submit an application that meets the re-
quirements 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 infor-
mation concerning the self-employment project to be funded
under the grant, contract, or agreement as the Commis-
sioner may require, including—
‘‘(1) a description of how and the extent to which
the applicant has assisted individuals, including in-
dividuals with disabilities, if appropriate, to success-
fully engage in self-employment enterprises;
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‘‘(2) with respect to any partners who will par-
ticipate 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 part-
ner 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-employ-
ment enterprises through the self-employment project;
‘‘(5) a description of the manner in which poten-
tial clients will be identified and selected to be as-
sisted 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 pro-
spective clients will be matched with self-employment
opportunities;
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‘‘(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 en-
gage 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 spe-
cifically related to an individual’s disability;
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‘‘(6) to provide assistance for clients in develop-
ing 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 en-
gaged in self-employment enterprises who seek such
assistance in order to sustain or expand their enter-
prises; 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 cri-
teria 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-em-
ployment 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
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sustaining an ongoing enterprise engaged in by a cli-
ent 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 cli-
ent 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 provide 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-employ-
ment 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 en-
tered into under paragraph (2) was met; and
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‘‘(B) concerning the number of clients as-
sisted 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 ter-
minated; and
‘‘(ii) 12 months after the date on which
assistance provided by the project was ter-
minated.
‘‘(f) DURATION OF AWARDS.—A grant, contract, or co-
operative 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 enter-
prise.
‘‘SEC. 614. DISCRETIONARY AUTHORITY FOR DUAL-PUR-
POSE APPLICATIONS.
‘‘(a) IN GENERAL.—The Commissioner may establish
procedures to permit applicants for grants, contracts, or co-
operative agreements under this part to submit applications
that serve dual purposes, so long as such applications meet
the requirements of sections 612 and 613.
‘‘(b) AMOUNT OF ASSISTANCE.—In a case described in
subsection (a), the minimum amount of a grant, contract,
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or cooperative agreement awarded under a dual-purpose
application may, at the discretion of the Commissioner, ex-
ceed 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 engag-
ing the talent and leadership of private industry as part-
ners in the rehabilitation process, to identify competitive
job and career opportunities and the skills needed to per-
form 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 Sec-
retary of Labor and with designated State units, may
award grants to individual employers, community rehabili-
tation program providers, labor unions, trade associations,
Indian tribes, tribal organizations, designated State units,
and other entities to establish jointly financed Projects With
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Industry to create and expand job and career opportunities
for individuals with disabilities, which projects shall—
‘‘(A) provide for the establishment of business ad-
visory councils, that shall—
‘‘(i) be comprised of—
‘‘(I) representatives of private indus-
try, business concerns, and organized labor;
‘‘(II) individuals with disabilities and
representatives of individuals with disabil-
ities; and
‘‘(III) a representative of the appro-
priate designated State unit;
‘‘(ii) identify job and career availability
within the community, consistent with the cur-
rent and projected local employment opportuni-
ties identified by the local workforce investment
partnership for the community under section
308(e)(6) of the Workforce Investment Partner-
ship Act of 1998;
‘‘(iii) identify the skills necessary to per-
form 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
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to be an individual described in section 102(a)(1), and if
the determination is made in a manner consistent with sec-
tion 102(a).
‘‘(B) Such a determination may be made by the recipi-
ent of a grant under this part, to the extent the determina-
tion 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 prac-
ticable, the appropriate designated State unit and the indi-
viduals with disabilities (or the individuals’ representa-
tives) 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 provi-
sions as the parties to the agreement consider to be appro-
priate.
‘‘(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 devel-
oped by the Commissioner under subsection (d), and, in
conducting the review and evaluation, to collect data and
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information of the type described in subparagraphs (A)
through (C) of section 101(a)(10), as determined to be ap-
propriate by the Commissioner.
‘‘(6) The Commissioner may include, as part of agree-
ments with grant recipients, authority for such grant re-
cipients 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 Dis-
abilities Act of 1990 (42 U.S.C. 12101 et seq.) as the
Act relates to employment of individuals with disabil-
ities.
‘‘(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 af-
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forded 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 eval-
uation 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 re-
view and revise the evaluation standards as necessary, sub-
ject 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 individ-
uals with disabilities, individuals served by grant recipi-
ents, organizations representing community rehabilitation
program providers, and labor organizations.
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‘‘(3) No standards may be established under this sub-
section unless the standards are approved by the National
Council on Disability. The Council shall be afforded ade-
quate 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 re-
newed.
‘‘(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 re-
quire.
‘‘(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 avail-
able, the Commissioner shall award grants under this sec-
tion to new projects that will serve individuals with disabil-
ities 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, indica-
tors of what constitutes minimum compliance consistent
with the evaluation standards under subsection (d)(1).
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‘‘(2) Each grant recipient shall report to the Commis-
sioner 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 re-
cipients. The Commissioner shall select grant recipients for
review on a random basis.
‘‘(B) The Commissioner shall use the indicators in de-
termining 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 Govern-
ment; and
‘‘(ii) has experience or expertise in conducting
projects.
‘‘(D) The Commissioner shall ensure that—
‘‘(i) a representative of the appropriate des-
ignated 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
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‘‘(II) participation in the review would give
the appearance of a conflict of interest.
‘‘(4) In making a determination concerning any subse-
quent grant under this section, the Commissioner shall con-
sider the past performance of the applicant, if applicable.
The Commissioner shall use compliance indicators devel-
oped under this subsection that are consistent with program
evaluation standards developed under subsection (d) to as-
sess 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 com-
plied with the evaluation standards. The Commissioner
may identify individual grant recipients in the analysis.
In addition, the Commissioner shall report the results of
onsite compliance reviews, identifying individual grant re-
cipients.
‘‘(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—
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‘‘(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 In-
dustry established under subsection (a)(2).
‘‘(3) The term ‘grant recipient’ means a recipi-
ent 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
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employment services for individuals with the most signifi-
cant 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 al-
lotment 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 great-
er.
‘‘(2) CERTAIN TERRITORIES.—
‘‘(A) IN GENERAL.—For the purposes of this
subsection, Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of
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the Northern Mariana Islands shall not be con-
sidered to be States.
‘‘(B) ALLOTMENT.—Each jurisdiction de-
scribed 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 de-
termines that any amount of an allotment to a State for
any fiscal year will not be expended by such State for carry-
ing 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 Commis-
sioner 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 pursu-
ant 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 pro-
vide supported employment services to individuals who are
eligible under this part. Funds provided under this part,
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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 re-
ceive supported employment services authorized under this
Act if—
‘‘(1) the individual is eligible for vocational re-
habilitation services;
‘‘(2) the individual is determined to be an indi-
vidual with a most significant disability; and
‘‘(3) a comprehensive assessment of rehabilita-
tion needs of the individual described in section
7(2)(B), including an evaluation of rehabilitation, ca-
reer, and job needs, identifies supported employment
as the appropriate employment outcome for the indi-
vidual.
‘‘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 employ-
ment 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.
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‘‘(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 dis-
tribution of funds received under section 632;
‘‘(4) demonstrate evidence of the efforts of the
designated State agency to identify and make ar-
rangements (including entering into cooperative
agreements) with other State agencies and other ap-
propriate entities to assist in the provision of sup-
ported employment services;
‘‘(5) demonstrate evidence of the efforts of the
designated State agency to identify and make ar-
rangements (including entering into cooperative
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agreements) with other public or nonprofit agencies or
organizations within the State, employers, natural
supports, and other entities with respect to the provi-
sion of extended services;
‘‘(6) provide assurances that—
‘‘(A) funds made available under this part
will only be used to provide supported employ-
ment services authorized under this Act to indi-
viduals who are eligible under this part to re-
ceive the services;
‘‘(B) the comprehensive assessments of indi-
viduals with significant disabilities conducted
under section 102(b)(1) and funded under title I
will include consideration of supported employ-
ment as an appropriate employment outcome;
‘‘(C) an individualized rehabilitation em-
ployment 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 serv-
ices needed; and
‘‘(iii) identify the source of extended
services, which may include natural sup-
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ports, 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 sup-
plant, the funds provided under title I, in pro-
viding supported employment services specified
in the individualized rehabilitation employment
plan;
‘‘(E) services provided under an individual-
ized rehabilitation employment plan will be co-
ordinated with services provided under other in-
dividualized plans established under other Fed-
eral or State programs;
‘‘(F) to the extent jobs skills training is pro-
vided, the training will be provided onsite; and
‘‘(G) supported employment services will in-
clude 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
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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 sub-
mitted in such manner as the Commissioner may re-
quire.
‘‘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 em-
ployment services under this part and for eligible individ-
uals 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 pro-
viding 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
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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. 610. 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 LIV-
ING 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 philoso-
phy of independent living, including a philosophy of con-
sumer 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
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integration and full inclusion of individuals with disabil-
ities 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 inde-
pendent living; and
‘‘(3) providing financial assistance to States for
improving working relationships among State inde-
pendent living rehabilitation service programs, cen-
ters for independent living, Statewide Independent
Living Councils established under section 705, State
vocational rehabilitation programs receiving assist-
ance under title I, State programs of supported em-
ployment services receiving assistance under part C of
title VI, client assistance programs receiving assist-
ance under section 112, programs funded under other
titles of this Act, programs funded under other Fed-
eral 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 con-
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sumer-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 liv-
ing services.
‘‘(2) CONSUMER CONTROL.—The term ‘consumer
control’ means, with respect to a center for independ-
ent 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 sec-
tion 7(21)(B).
‘‘SEC. 704. STATE PLAN.
‘‘(a) IN GENERAL.—
‘‘(1) REQUIREMENT.—To be eligible to receive fi-
nancial assistance under this chapter, a State shall
submit to the Commissioner, and obtain approval of,
a State plan containing such provisions as the Com-
missioner may require, including, at a minimum, the
provisions required in this section.
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‘‘(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 Inde-
pendent 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 appro-
priately address, on a statewide and comprehensive
basis, needs in the State for—
‘‘(A) the provision of State independent liv-
ing services;
‘‘(B) the development and support of a
statewide network of centers for independent liv-
ing; and
‘‘(C) working relationships between—
‘‘(i) programs providing independent
living services and independent living cen-
ters; and
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‘‘(ii) the vocational rehabilitation pro-
gram 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 re-
quirements 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 re-
ceived 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;
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‘‘(3) keep such records and afford such access to
such records as the Commissioner finds to be nec-
essary with respect to the programs; and
‘‘(4) submit such additional information or pro-
vide such assurances as the Commissioner may re-
quire 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 serv-
ices under this chapter to individuals with significant dis-
abilities, 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 de-
scribe 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
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providing such services, such arrangements shall be de-
scribed in the plan.
‘‘(g) NETWORK.—The plan shall set forth a design for
the establishment of a statewide network of centers for inde-
pendent living that comply with the standards and assur-
ances 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 agen-
cies represented on such Council, other councils that
address the needs of specific disability populations
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and issues, and other public and private entities de-
termined to be appropriate by the Council.
‘‘(j) COORDINATION OF SERVICES.—The plan shall de-
scribe how services funded under this chapter will be coordi-
nated 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 liv-
ing 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, in-
cluding minority groups and urban and rural populations.
‘‘(m) REQUIREMENTS.—The plan shall provide satis-
factory 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;
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‘‘(2) take affirmative action to employ and ad-
vance in employment qualified individuals with dis-
abilities 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 account-
ing 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 re-
cipient of the proceeds of such financial assist-
ance;
‘‘(ii) the total cost of the project or under-
taking 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 Com-
missioner determines to be appropriate to facilitate
an effective audit;
‘‘(C) afford such access to records maintained
under subparagraphs (A) and (B) as the Commis-
sioner determines to be appropriate; and
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‘‘(D) submit such reports with respect to such
records as the Commissioner determines to be appro-
priate;
‘‘(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), in-
cluding evaluation of satisfaction by individuals with dis-
abilities.
‘‘SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.
‘‘(a) ESTABLISHMENT.—To be eligible to receive finan-
cial 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 estab-
lished as an entity within a State agency.
‘‘(b) COMPOSITION AND APPOINTMENT.—
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‘‘(1) APPOINTMENT.—Members of the Council
shall be appointed by the Governor. The Governor
shall select members after soliciting recommendations
from representatives of organizations representing a
broad range of individuals with disabilities and orga-
nizations interested in individuals with disabilities.
‘‘(2) COMPOSITION.—The Council shall in-
clude—
‘‘(A) at least one director of a center for
independent living chosen by the directors of cen-
ters for independent living within the State;
‘‘(B) as ex officio, nonvoting members—
‘‘(i) a representative from the des-
ignated State unit; and
‘‘(ii) representatives from other State
agencies that provide services for individ-
uals with disabilities; and
‘‘(C) in a State in which 1 or more projects
are carried out under section 121, at least 1 rep-
resentative of the directors of the projects.
‘‘(3) ADDITIONAL MEMBERS.—The Council may
include—
‘‘(A) other representatives from centers for
independent living;
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‘‘(B) parents and guardians of individuals
with disabilities;
‘‘(C) advocates of and for individuals with
disabilities;
‘‘(D) representatives from private busi-
nesses;
‘‘(E) representatives from organizations
that provide services for individuals with dis-
abilities; and
‘‘(F) other appropriate individuals.
‘‘(4) QUALIFICATIONS.—
‘‘(A) IN GENERAL.—The Council shall be
composed of members—
‘‘(i) who provide statewide representa-
tion;
‘‘(ii) who represent a broad range of
individuals with disabilities from diverse
backgrounds;
‘‘(iii) who are knowledgeable about
centers for independent living and inde-
pendent living services; and
‘‘(iv) a majority of whom are persons
who are—
‘‘(I) individuals with disabilities
described in section 7(20)(B); and
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‘‘(II) not employed by any State
agency or center for independent liv-
ing.
‘‘(B) VOTING MEMBERS.—A majority of the
voting members of the Council shall be—
‘‘(i) individuals with disabilities de-
scribed in section 7(20)(B); and
‘‘(ii) not employed by any State agen-
cy 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, ex-
cept that—
‘‘(i) a member appointed to fill a va-
cancy occurring prior to the expiration of
the term for which a predecessor was ap-
pointed, shall be appointed for the remain-
der of such term; and
‘‘(ii) the terms of service of the mem-
bers initially appointed shall be (as speci-
fied by the Governor) for such fewer number
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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 remain-
ing members to execute the duties of the Council.
‘‘(B) DELEGATION.—The Governor may del-
egate 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 re-
quired in section 704;
‘‘(2) monitor, review, and evaluate the imple-
mentation of the State plan;
‘‘(3) coordinate activities with the State Reha-
bilitation Council established under section 105, if the
State has such a Council, or the commission described
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in section 101(a)(21)(A), if the State has such a com-
mission, and councils that address the needs of spe-
cific 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 pro-
vided; 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 author-
ized 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 suffi-
cient to carry out the functions of the Council under
this section, with funds made available under this
chapter, and under section 110 (consistent with sec-
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tion 101(a)(18)), and from other public and private
sources. The resource plan shall, to the maximum ex-
tent 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 des-
ignated 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 com-
pensation 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.—
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‘‘(1) IN GENERAL.—The Commissioner shall ap-
prove any State plan submitted under section 704
that the Commissioner determines meets the require-
ments 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 dis-
approval, 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 Reg-
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ister indicators of minimum compliance consistent with the
standards set forth in section 725.
‘‘(c) ONSITE COMPLIANCE REVIEWS.—
‘‘(1) REVIEWS.—The Commissioner shall annu-
ally conduct onsite compliance reviews of at least 15
percent of the centers for independent living that re-
ceive funds under section 722 and shall periodically
conduct such a review of each such center. The Com-
missioner 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 sec-
tion 723, centers that receive funding under section
723 in such State. The Commissioner shall select the
centers and State units described in this paragraph
for review on a random basis.
‘‘(2) QUALIFICATIONS OF EMPLOYEES CONDUCT-
ING 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;
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‘‘(B) ensure that the employee of the De-
partment 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 indi-
vidual 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 receiv-
ing 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
onsite 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 pro-
vided in subparagraphs (B) and (C), from sums
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appropriated for each fiscal year to carry out
this part, the Commissioner shall make an allot-
ment to each State whose State plan has been
approved under section 706 of an amount bear-
ing the same ratio to such sums as the popu-
lation 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 Reha-
bilitation Act Amendments of 1992.
‘‘(C) MINIMUMS.—Subject to the availabil-
ity of appropriations to carry out this part, and
except as provided in subparagraph (B), the al-
lotment 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
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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 Common-
wealth of the Northern Mariana Islands shall not
be considered to be States.
‘‘(B) ALLOTMENT.—Each jurisdiction de-
scribed 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 fis-
cal year, beginning in fiscal year 1999, in which the
total amount appropriated to carry out this part ex-
ceeds the total amount appropriated to carry out this
part for the preceding fiscal year, the Commissioner
shall increase the minimum allotment under para-
graph (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.
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‘‘(b) PROPORTIONAL REDUCTION.—To provide allot-
ments 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 allot-
ments 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 de-
termines that any amount of an allotment to a State for
any fiscal year will not be expended by such State in carry-
ing 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 Commis-
sioner 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 pursu-
ant 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.
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‘‘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 pay-
ments may be made (after necessary adjustments on account
of previously made overpayments or underpayments) in ad-
vance or by way of reimbursement, and in such install-
ments and on such conditions as the Commissioner may
determine.
‘‘(b) FEDERAL SHARE.—
‘‘(1) IN GENERAL.—The Federal share with re-
spect to any State for any fiscal year shall be 90 per-
cent of the expenditures incurred by the State during
such year under its State plan approved under sec-
tion 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 pro-
vided 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—
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‘‘(1) to provide independent living services to in-
dividuals with significant disabilities;
‘‘(2) to demonstrate ways to expand and improve
independent living services;
‘‘(3) to support the operation of centers for inde-
pendent living that are in compliance with the stand-
ards and assurances set forth in subsections (b) and
(c) of section 725;
‘‘(4) to support activities to increase the capac-
ities of public or nonprofit agencies and organizations
and other entities to develop comprehensive ap-
proaches or systems for providing independent living
services;
‘‘(5) to conduct studies and analyses, gather in-
formation, develop model policies and procedures, and
present information, approaches, strategies, findings,
conclusions, and recommendations to Federal, State,
and local policymakers in order to enhance independ-
ent 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 independ-
ent living philosophy; and
‘‘(7) to provide outreach to populations that are
unserved or underserved by programs under this title,
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including minority groups and urban and rural pop-
ulations.
‘‘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
ARRANGE-
MENTS.—For any fiscal year in which the funds ap-
propriated to carry out this part exceed the funds ap-
propriated to carry out this part for fiscal year 1993,
the Commissioner shall first reserve from such excess,
to provide training and technical assistance to eligi-
ble 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.
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‘‘(2) ALLOCATION.—From the funds reserved
under paragraph (1), the Commissioner shall make
grants to, and enter into contracts and other arrange-
ments with, entities that have experience in the oper-
ation 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 Liv-
ing Councils and centers for independent living re-
garding 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 appli-
cation 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
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have experience in the operation of centers for inde-
pendent living.
‘‘(5) PROHIBITION
ON
COMBINED
FUNDS.—No
funds reserved by the Commissioner under this sub-
section 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 res-
ervation 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.
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‘‘(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 inde-
pendent 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 availabil-
ity 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 appro-
priated 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
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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 avail-
able for the fiscal year for which the allot-
ment 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
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United States Virgin Islands, and the Common-
wealth of the Northern Mariana Islands shall not
be considered to be States.
‘‘(B) ALLOTMENT.—Each jurisdiction de-
scribed 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 fis-
cal year, beginning in fiscal year 1999, in which the
total amount appropriated to carry out this part ex-
ceeds the total amount appropriated to carry out this
part for the preceding fiscal year, the Commissioner
shall increase the minimum allotment under para-
graph (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 pro-
portionately reduce the allotments of the remaining
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States under paragraph (1)(A), with such adjust-
ments 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 de-
termines that any amount of an allotment to a State for
any fiscal year will not be expended by such State for carry-
ing 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 Commis-
sioner 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 pursu-
ant 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 LIV-
ING IN STATES IN WHICH FEDERAL FUNDING
EXCEEDS STATE FUNDING.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—Unless the director of a des-
ignated 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
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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, ad-
ministration, and evaluation of centers for independ-
ent living that comply with the standards and assur-
ances set forth in section 725.
‘‘(b) ELIGIBLE AGENCIES.—In any State in which the
Commissioner has approved the State plan required by sec-
tion 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 re-
ceive 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 pro-
grams;
‘‘(2) is determined by the Commissioner to be
able to plan, conduct, administer, and evaluate a cen-
ter for independent living consistent with the stand-
ards and assurances set forth in section 725; and
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‘‘(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 adminis-
tration 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 inde-
pendent living serving a region of the State or a re-
gion is underserved, and the increase in the allotment
of the State is sufficient to support an additional cen-
ter for independent living in the State, the Commis-
sioner may award a grant under this section to the
most qualified applicant proposing to serve such re-
gion, 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 ap-
plicants for a grant under this section for a new cen-
ter for independent living, the Commissioner—
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‘‘(A) shall consider comments regarding the
application, if any, by the Statewide Independ-
ent Living Council in the State in which the ap-
plicant 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 cen-
ter;
‘‘(ii) any past performance of such ap-
plicant in providing services comparable to
independent living services;
‘‘(iii) the plan for satisfying or dem-
onstrated 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 signifi-
cant 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
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underserved by independent living programs,
consistent with the provisions of the State plan
submitted under section 704 regarding establish-
ment of a statewide network of centers for inde-
pendent living.
‘‘(3) 
CURRENT
CENTERS.—Notwithstanding
paragraphs (1) and (2), a center for independent liv-
ing 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 sub-
section (c), that comply with the standards and assur-
ances 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 inde-
pendent living.
‘‘(3) The Commissioner shall fund new centers
for independent living, as described in subsection (d),
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that comply with the standards and assurances set
forth in section 725.
‘‘(f) NONRESIDENTIAL AGENCIES.—A center that pro-
vides 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 pe-
riodically 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 im-
mediately notify such center that it is out of compli-
ance.
‘‘(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 ap-
proved by the Commissioner.
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‘‘SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIV-
ING 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 fis-
cal 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 exceed-
ed 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 al-
lotted for the initial fiscal year, to eligible
agencies in the State for the planning, con-
duct, administration, and evaluation of cen-
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ters for independent living that comply with
the standards and assurances set forth in
section 725.
‘‘(iii) 
REGULATION.—The 
Commis-
sioner shall by regulation specify the pre-
ceding 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 cy-
cles 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 contin-
ues to earmark the amount of State funds de-
scribed 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 fol-
lowing such fiscal year, as defined in accordance
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with regulations established by the Commis-
sioner, 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 determina-
tion described in subparagraph (A)(i) or (B), as ap-
propriate, 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 des-
ignated State agency of a State described in para-
graph (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 sec-
tion 722.
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‘‘(b) ELIGIBLE AGENCIES.—In any State in which the
Commissioner has approved the State plan required by sec-
tion 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 re-
ceive 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 pro-
grams;
‘‘(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 in-
formation as the head of the designated State unit
may require.
‘‘(c) EXISTING ELIGIBLE AGENCIES.—In the adminis-
tration 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
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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 inde-
pendent living serving a region of the State or the re-
gion 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 agen-
cies, 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 eligi-
ble 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 re-
view committee that shall rank applications in
accordance with the standards and assurances
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set forth in section 725 and criteria jointly es-
tablished by such director and such chairperson
or individual;
‘‘(B) the peer review committee shall con-
sider the ability of each such applicant to oper-
ate 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 ap-
plicant 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 individ-
uals with significant disabilities by the ap-
plicant;
‘‘(v) the budgets and cost-effectiveness
of the applicant;
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‘‘(vi) the evaluation plan of the appli-
cant; 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 liv-
ing 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 be-
half 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
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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 ex-
isting centers for independent living.
‘‘(3) The director of the designated State unit
shall fund new centers for independent living, as de-
scribed in subsection (d), that comply with the stand-
ards and assurances set forth in section 725.
‘‘(f) NONRESIDENTIAL AGENCIES.—A center that pro-
vides 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 des-
ignated State unit shall periodically review each cen-
ter receiving funds under this section to determine
whether such center is in compliance with the stand-
ards and assurances set forth in section 725. If the di-
rector 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.
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‘‘(2) ENFORCEMENT.—The director of the des-
ignated 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 compli-
ance within 90 days and such plan is approved by
the director, or if appealed, by the Commissioner.
‘‘(h) ONSITE 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 onsite 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 des-
ignated State unit proposes to take a significant adverse
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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 des-
ignated 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 de-
cision.
‘‘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 Com-
missioner; and
‘‘(B) obtains approval of the application
under section 722 or 723; or
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‘‘(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 liv-
ing 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 evalu-
ated in a manner consistent with the purposes of this chap-
ter 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 regard-
ing decisionmaking, service delivery, manage-
ment, and establishment of the policy and direc-
tion of the center;
‘‘(B) self-help and self-advocacy;
‘‘(C) development of peer relationships and
peer role models; and
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‘‘(D) equal access of individuals with sig-
nificant 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 sig-
nificant 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 under-
served 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
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in order to facilitate the development and achievement
of independent living goals by individuals with sig-
nificant disabilities.
‘‘(5) INDEPENDENT
LIVING
CORE
SERVICES.—
The center shall provide independent living core serv-
ices and, as appropriate, a combination of any other
independent living services.
‘‘(6) ACTIVITIES TO INCREASE COMMUNITY CA-
PACITY.—The center shall conduct activities to in-
crease 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 activi-
ties 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 disabil-
ities, including an assurance that the center will have
a Board that is the principal governing body of the
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center and a majority of which shall be composed of
individuals with significant disabilities;
‘‘(3) the applicant will comply with the stand-
ards 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 pro-
posed 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 employ-
ment qualified individuals with significant disabil-
ities on the same terms and conditions required with
respect to the employment of individuals with disabil-
ities under section 503;
‘‘(6) the applicant will ensure that the majority
of the staff, and individuals in decisionmaking posi-
tions, of the applicant are individuals with disabil-
ities;
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‘‘(7) the applicant will practice sound fiscal
management, including making arrangements for an
annual independent fiscal audit, notwithstanding sec-
tion 7502(a)(2)(A) of title 31, United States Code;
‘‘(8) the applicant will conduct annual self-eval-
uations, 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 signifi-
cant disabilities who are employed by, and the
number who are in management and decision-
making positions in, the center; and
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‘‘(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 availabil-
ity of, and how to contact, the client assistance pro-
gram;
‘‘(10) aggressive outreach regarding services pro-
vided through the center will be conducted in an effort
to reach populations of individuals with significant
disabilities that are unserved or underserved by pro-
grams 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 re-
port to the designated State unit or the Commis-
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sioner, as the case may be, at the end of each fiscal
year that contains the information described in para-
graph (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 individ-
ual who is blind’ means an individual age 55 or older whose
significant visual impairment makes competitive employ-
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ment extremely difficult to attain but for whom independ-
ent living goals are feasible.
‘‘SEC. 752. PROGRAM OF GRANTS.
‘‘(a) IN GENERAL.—
‘‘(1) AUTHORITY FOR GRANTS.—Subject to sub-
sections (b) and (c), the Commissioner may make
grants to States for the purpose of providing the serv-
ices described in subsection (d) to older individuals
who are blind.
‘‘(2) DESIGNATED
STATE
AGENCY.—The Com-
missioner 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
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‘‘(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 sub-
section (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 in-
volved agrees that the grant will be expended only for pur-
poses 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
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‘‘(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 condi-
tions; 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 individ-
ual who is blind adjust to blindness;
‘‘(5) guide services, reader services, and trans-
portation;
‘‘(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;
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‘‘(7) independent living skills training, informa-
tion and referral services, peer counseling, and indi-
vidual 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 pro-
gram to be carried out by the State pursuant to such
subsection, to make available (directly or through do-
nations 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
CONTRIB-
UTED.—Non-Federal contributions required in para-
graph (1) may be in cash or in kind, fairly evaluated,
including plant, equipment, or services. Amounts pro-
vided 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
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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 sub-
section (d)(1), the State will seek to incorporate into the
State plan under section 704 any new methods and ap-
proaches 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 applica-
tion 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 pro-
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gram 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 in-
dividuals 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 fund-
ing for the operation of each project or pro-
gram;
‘‘(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 indi-
viduals with significant disabilities, includ-
ing 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—
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‘‘(i) provide services that contribute to
the maintenance of, or the increased inde-
pendence 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 com-
munity 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 para-
graph (2); or
‘‘(B) the amount determined under para-
graph (3).
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‘‘(2) MINIMUM ALLOTMENT.—
‘‘(A) STATES.—In the case of the several
States, the District of Columbia, and the Com-
monwealth 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 sub-
paragraph (B) of paragraph (1) for a State for a fis-
cal year is the product of—
‘‘(A) the amount appropriated under sec-
tion 753 and available for allotments under sub-
section (a); and
‘‘(B) a percentage equal to the quotient of—
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‘‘(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) rel-
ative 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 re-
sult of—
‘‘(i) the failure of any State to submit
an application under subsection (i);
‘‘(ii) the failure of any State to pre-
pare within a reasonable period of time
such application in compliance with such
subsection; or
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‘‘(iii) any State informing the Com-
missioner 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. 611. HELEN KELLER NATIONAL CENTER ACT.
(a) GENERAL AUTHORIZATION OF APPROPRIATIONS.—
The first sentence of section 205(a) of the Helen Keller Na-
tional Center Act (29 U.S.C. 1904(a)) is amended by strik-
ing ‘‘1993 through 1997’’ and inserting ‘‘1998 through
2004’’.
(b) HELEN KELLER NATIONAL CENTER FEDERAL EN-
DOWMENT 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 2004’’.
(c) REGISTRY.—Such Act (29 U.S.C. 1901 et seq.) is
amended by adding at the end the following:
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‘‘SEC. 209. NATIONAL REGISTRY AND AUTHORIZATION OF
APPROPRIATIONS.
‘‘(a) REGISTRY.—The Center shall establish and main-
tain 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 2004.’’.
SEC. 612. PRESIDENT’S COMMITTEE ON EMPLOYMENT OF
PEOPLE WITH DISABILITIES.
Section 2(2) of the joint resolution approved July 11,
1949 (63 Stat. 409, chapter 302; 36 U.S.C. 155b(2)) is
amended by inserting ‘‘solicit,’’ before ‘‘accept,’’.
SEC. 613. CONFORMING AMENDMENTS.
(a) PREPARATION.—After consultation with the appro-
priate 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 title.
(b) SUBMISSION
TO CONGRESS.—Not later than 6
months after the date of enactment of this Act, the Secretary
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of Education shall submit to Congress the recommended leg-
islation referred to under subsection (a).
Attest:
Secretary.
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