H. R. 1385—181
‘‘(C) Making awards to entities described in paragraph
(3) to provide outreach and technical assistance to minority
entities and Indian tribes to promote their participation
in activities funded under this Act, including assistance
to enhance their capacity to carry out such activities.
‘‘(3) ELIGIBILITY.—To be eligible to receive an award under
paragraph (2)(C), an entity shall be a State or a public or
private nonprofit agency or organization, such as an institution
of higher education or an Indian tribe.
‘‘(4) REPORT.—In each fiscal year, the Commissioner and
the Director shall prepare and submit to Congress a report
that describes the activities funded under this subsection for
the preceding fiscal year.
‘‘(5) DEFINITIONS.—In this subsection:
‘‘(A) HISTORICALLY BLACK COLLEGE OR UNIVERSITY.—
The term ‘historically Black college or university’ means
a part B institution, as defined in section 322(2) of the
Higher Education Act of 1965 (20 U.S.C. 1061(2)).
‘‘(B) MINORITY
ENTITY.—The term ‘minority entity’
means an entity that is a historically Black college or
university, a Hispanic-serving institution of higher edu-
cation, an American Indian tribal college or university,
or another institution of higher education whose minority
student enrollment is at least 50 percent.
‘‘(c) DEMONSTRATION.—In awarding grants, or entering into con-
tracts or cooperative agreements under titles I, II, III, VI, and
VII, and section 509, the Commissioner and the Director, in appro-
priate cases, shall require applicants to demonstrate how the
applicants will address, in whole or in part, the needs of individuals
with disabilities from minority backgrounds.’’.
SEC. 404. VOCATIONAL REHABILITATION SERVICES.
Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et
seq.) is amended to read as follows:
‘‘TITLE I—VOCATIONAL
REHABILITATION SERVICES
‘‘PART A—GENERAL PROVISIONS
‘‘SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIA-
TIONS.
‘‘(a) FINDINGS; PURPOSE; POLICY.—
‘‘(1) FINDINGS.—Congress finds that—
‘‘(A) work—
‘‘(i) is a valued activity, both for individuals and
society; and
‘‘(ii) fulfills the need of an individual to be produc-
tive, promotes independence, enhances self-esteem, and
allows for participation in the mainstream of life in
the United States;
‘‘(B) as a group, individuals with disabilities experience
staggering levels of unemployment and poverty;
‘‘(C) individuals with disabilities, including individuals
with the most significant disabilities, have demonstrated
H. R. 1385—182
their ability to achieve gainful employment in integrated
settings if appropriate services and supports are provided;
‘‘(D) reasons for significant numbers of individuals with
disabilities not working, or working at levels not commen-
surate with their abilities and capabilities, include—
‘‘(i) discrimination;
‘‘(ii) lack of accessible and available transportation;
‘‘(iii) fear of losing health coverage under the medi-
care and medicaid programs carried out under titles
XVIII and XIX of the Social Security Act (42 U.S.C.
1395 et seq. and 1396 et seq.) or fear of losing private
health insurance; and
‘‘(iv) lack of education, training, and supports to
meet job qualification standards necessary to secure,
retain, regain, or advance in employment;
‘‘(E) enforcement of title V and of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) holds
the promise of ending discrimination for individuals with
disabilities;
‘‘(F) the provision of workforce investment activities
and vocational rehabilitation services can enable individ-
uals with disabilities, including individuals with the most
significant disabilities, to pursue meaningful careers by
securing gainful employment commensurate with their
abilities and capabilities; and
‘‘(G) linkages between the vocational rehabilitation pro-
grams established under this title and other components
of the statewide workforce investment systems are critical
to ensure effective and meaningful participation by individ-
uals with disabilities in workforce investment activities.
‘‘(2) PURPOSE.—The purpose of this title is to assist States
in operating statewide comprehensive, coordinated, effective,
efficient, and accountable programs of vocational rehabilitation,
each of which is—
‘‘(A) an integral part of a statewide workforce invest-
ment system; and
‘‘(B) designed to assess, plan, develop, and provide
vocational rehabilitation services for individuals with
disabilities, consistent with their strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice, so that such individuals may prepare for
and engage in gainful employment.
‘‘(3) POLICY.—It is the policy of the United States that
such a program shall be carried out in a manner consistent
with the following principles:
‘‘(A) Individuals with disabilities, including individuals
with the most significant disabilities, are generally pre-
sumed to be capable of engaging in gainful employment
and the provision of individualized vocational rehabilitation
services can improve their ability to become gainfully
employed.
‘‘(B) Individuals with disabilities must be provided the
opportunities to obtain gainful employment in integrated
settings.
‘‘(C) Individuals who are applicants for such programs
or eligible to participate in such programs must be active
H. R. 1385—183
and full partners in the vocational rehabilitation process,
making meaningful and informed choices—
‘‘(i) during assessments for determining eligibility
and vocational rehabilitation needs; and
‘‘(ii) in the selection of employment outcomes for
the individuals, services needed to achieve the out-
comes, entities providing such services, and the meth-
ods used to secure such services.
‘‘(D) Families and other natural supports can play
important roles in the success of a vocational rehabilitation
program, if the individual with a disability involved
requests, desires, or needs such supports.
‘‘(E) Vocational rehabilitation counselors that are
trained and prepared in accordance with State policies
and procedures as described in section 101(a)(7)(B)
(referred to individually in this title as a ‘qualified voca-
tional rehabilitation counselor’), other qualified rehabilita-
tion personnel, and other qualified personnel facilitate the
accomplishment of the employment outcomes and objectives
of an individual.
‘‘(F) Individuals with disabilities and the individuals’
representatives are full partners in a vocational rehabilita-
tion program and must be involved on a regular basis
and in a meaningful manner with respect to policy develop-
ment and implementation.
‘‘(G) Accountability measures must facilitate the accom-
plishment of the goals and objectives of the program,
including providing vocational rehabilitation services to,
among others, individuals with the most significant disabil-
ities.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—For the purpose of making grants to
States under part B to assist States in meeting the costs
of vocational rehabilitation services provided in accordance with
State plans under section 101, there are authorized to be appro-
priated such sums as may be necessary for fiscal years 1999
through 2003, except that the amount to be appropriated for
a fiscal year shall not be less than the amount of the appropria-
tion under this paragraph for the immediately preceding fiscal
year, increased by the percentage change in the Consumer
Price Index determined under subsection (c) for the immediately
preceding fiscal year.
‘‘(2) REFERENCE.—The reference in paragraph (1) to grants
to States under part B shall not be considered to refer to
grants under section 112.
‘‘(c) CONSUMER PRICE INDEX.—
‘‘(1) PERCENTAGE
CHANGE.—No later than November 15
of each fiscal year (beginning with fiscal year 1979), the Sec-
retary of Labor shall publish in the Federal Register the
percentage change in the Consumer Price Index published for
October of the preceding fiscal year and October of the fiscal
year in which such publication is made.
‘‘(2) APPLICATION.—
‘‘(A) INCREASE.—If in any fiscal year the percentage
change published under paragraph (1) indicates an increase
in the Consumer Price Index, then the amount to be appro-
priated under subsection (b)(1) for the subsequent fiscal
H. R. 1385—184
year shall be at least the amount appropriated under sub-
section (b)(1) for the fiscal year in which the publication
is made under paragraph (1) increased by such percentage
change.
‘‘(B) NO INCREASE OR DECREASE.—If in any fiscal year
the percentage change published under paragraph (1) does
not indicate an increase in the Consumer Price Index,
then the amount to be appropriated under subsection (b)(1)
for the subsequent fiscal year shall be at least the amount
appropriated under subsection (b)(1) for the fiscal year
in which the publication is made under paragraph (1).
‘‘(3) DEFINITION.—For purposes of this section, the term
‘Consumer Price Index’ means the Consumer Price Index for
All Urban Consumers, published monthly by the Bureau of
Labor Statistics.
‘‘(d) EXTENSION.—
‘‘(1) IN GENERAL.—
‘‘(A) AUTHORIZATION
OR
DURATION
OF
PROGRAM.—
Unless the Congress in the regular session which ends
prior to the beginning of the terminal fiscal year—
‘‘(i) of the authorization of appropriations for the
program authorized by the State grant program under
part B of this title; or
‘‘(ii) of the duration of the program authorized
by the State grant program under part B of this title;
has passed legislation which would have the effect of
extending the authorization or duration (as the case may
be) of such program, such authorization or duration is
automatically extended for 1 additional year for the pro-
gram authorized by this title.
‘‘(B) CALCULATION.—The amount authorized to be
appropriated for the additional fiscal year described in
subparagraph (A) shall be an amount equal to the amount
appropriated for such program for fiscal year 2003,
increased by the percentage change in the Consumer Price
Index determined under subsection (c) for the immediately
preceding fiscal year, if the percentage change indicates
an increase.
‘‘(2) CONSTRUCTION.—
‘‘(A) PASSAGE OF LEGISLATION.—For the purposes of
paragraph (1)(A), Congress shall not be deemed to have
passed legislation unless such legislation becomes law.
‘‘(B) ACTS OR DETERMINATIONS OF COMMISSIONER.—In
any case where the Commissioner is required under an
applicable statute to carry out certain acts or make certain
determinations which are necessary for the continuation
of the program authorized by this title, if such acts or
determinations are required during the terminal year of
such program, such acts and determinations shall be
required during any fiscal year in which the extension
described in that part of paragraph (1) that follows clause
(ii) of paragraph (1)(A) is in effect.
‘‘SEC. 101. STATE PLANS.
‘‘(a) PLAN REQUIREMENTS.—
‘‘(1) IN GENERAL.—
H. R. 1385—185
‘‘(A) SUBMISSION.—To be eligible to participate in pro-
grams under this title, a State shall submit to the Commis-
sioner a State plan for vocational rehabilitation services
that meets the requirements of this section, on the same
date that the State submits a State plan under section
112 of the Workforce Investment Act of 1998.
‘‘(B) NONDUPLICATION.—The State shall not be required
to submit, in the State plan for vocational rehabilitation
services, policies, procedures, or descriptions required
under this title that have been previously submitted to
the Commissioner and that demonstrate that such State
meets the requirements of this title, including any policies,
procedures, or descriptions submitted under this title as
in effect on the day before the effective date of the
Rehabilitation Act Amendments of 1998.
‘‘(C) DURATION.—The State plan shall remain in effect
subject to the submission of such modifications as the State
determines to be necessary or as the Commissioner may
require based on a change in State policy, a change in
Federal law (including regulations), an interpretation of
this Act by a Federal court or the highest court of the
State, or a finding by the Commissioner of State noncompli-
ance with the requirements of this Act, until the State
submits and receives approval of a new State plan.
‘‘(2) DESIGNATED STATE AGENCY; DESIGNATED STATE UNIT.—
‘‘(A) DESIGNATED STATE AGENCY.—The State plan shall
designate a State agency as the sole State agency to admin-
ister the plan, or to supervise the administration of the
plan by a local agency, except that—
‘‘(i) where, under State law, the State agency for
individuals who are blind or another agency that pro-
vides assistance or services to adults who are blind
is authorized to provide vocational rehabilitation serv-
ices to individuals who are blind, that agency may
be designated as the sole State agency to administer
the part of the plan under which vocational rehabilita-
tion services are provided for individuals who are blind
(or to supervise the administration of such part by
a local agency) and a separate State agency may be
designated as the sole State agency to administer or
supervise the administration of the rest of the State
plan;
‘‘(ii) the Commissioner, on the request of a State,
may authorize the designated State agency to share
funding and administrative responsibility with another
agency of the State or with a local agency in order
to permit the agencies to carry out a joint program
to provide services to individuals with disabilities, and
may waive compliance, with respect to vocational
rehabilitation services furnished under the joint pro-
gram, with the requirement of paragraph (4) that the
plan be in effect in all political subdivisions of the
State; and
‘‘(iii) in the case of American Samoa, the appro-
priate State agency shall be the Governor of American
Samoa.
H. R. 1385—187
the earmarked funds may be used in such areas if the
State notifies the Commissioner that the State cannot pro-
vide the full non-Federal share without such funds.
‘‘(5) ORDER OF SELECTION FOR VOCATIONAL REHABILITATION
SERVICES.—In the event that vocational rehabilitation services
cannot be provided to all eligible individuals with disabilities
in the State who apply for the services, the State plan shall—
‘‘(A) show the order to be followed in selecting eligible
individuals to be provided vocational rehabilitation serv-
ices;
‘‘(B) provide the justification for the order of selection;
‘‘(C) include an assurance that, in accordance with
criteria established by the State for the order of selection,
individuals with the most significant disabilities will be
selected first for the provision of vocational rehabilitation
services; and
‘‘(D) provide that eligible individuals, who do not meet
the order of selection criteria, shall have access to services
provided through the information and referral system
implemented under paragraph (20).
‘‘(6) METHODS FOR ADMINISTRATION.—
‘‘(A) IN GENERAL.—The State plan shall provide for
such methods of administration as are found by the
Commissioner to be necessary for the proper and efficient
administration of the plan.
‘‘(B) EMPLOYMENT OF INDIVIDUALS WITH DISABILITIES.—
The State plan shall provide that the designated State
agency, and entities carrying out community rehabilitation
programs in the State, who are in receipt of assistance
under this title shall take affirmative action to employ
and advance in employment qualified individuals with
disabilities covered under, and on the same terms and
conditions as set forth in, section 503.
‘‘(C) FACILITIES.—The State plan shall provide that
facilities used in connection with the delivery of services
assisted under the State plan shall comply with the Act
entitled ‘An Act to insure that certain buildings financed
with Federal funds are so designed and constructed as
to be accessible to the physically handicapped’, approved
on August 12, 1968 (commonly known as the ‘Architectural
Barriers Act of 1968’), with section 504, and with the
Americans with Disabilities Act of 1990.
‘‘(7) COMPREHENSIVE
SYSTEM
OF
PERSONNEL
DEVELOP-
MENT.—The State plan shall—
‘‘(A) include a description (consistent with the purposes
of this Act) of a comprehensive system of personnel develop-
ment, which shall include—
‘‘(i) a description of the procedures and activities
the designated State agency will undertake to ensure
an adequate supply of qualified State rehabilitation
professionals and paraprofessionals for the designated
State unit, including the development and maintenance
of a system for determining, on an annual basis—
‘‘(I) the number and type of personnel that
are employed by the designated State unit in the
provision of vocational rehabilitation services,
H. R. 1385—188
including ratios of qualified vocational rehabilita-
tion counselors to clients; and
‘‘(II) the number and type of personnel needed
by the State, and a projection of the numbers
of such personnel that will be needed in 5 years,
based on projections of the number of individuals
to be served, the number of such personnel who
are expected to retire or leave the vocational
rehabilitation field, and other relevant factors;
‘‘(ii) where appropriate, a description of the manner
in which activities will be undertaken under this sec-
tion to coordinate the system of personnel development
with personnel development activities under the
Individuals with Disabilities Education Act (20 U.S.C.
1400 et seq.);
‘‘(iii) a description of the development and mainte-
nance of a system of determining, on an annual basis,
information on the programs of institutions of higher
education within the State that are preparing
rehabilitation professionals, including—
‘‘(I) the numbers of students enrolled in such
programs; and
‘‘(II) the number of such students who grad-
uated with certification or licensure, or with
credentials to qualify for certification or licensure,
as a rehabilitation professional during the past
year;
‘‘(iv) a description of the development, updating,
and implementation of a plan that—
‘‘(I) will address the current and projected
vocational rehabilitation services personnel train-
ing needs for the designated State unit; and
‘‘(II) provides for the coordination and facilita-
tion of efforts between the designated State unit,
institutions of higher education, and professional
associations to recruit, prepare, and retain quali-
fied personnel, including personnel from minority
backgrounds, and personnel who are individuals
with disabilities; and
‘‘(v) a description of the procedures and activities
the designated State agency will undertake to ensure
that all personnel employed by the designated State
unit are appropriately and adequately trained and pre-
pared, including—
‘‘(I) a system for the continuing education of
rehabilitation professionals and paraprofessionals
within the designated State unit, particularly with
respect to rehabilitation technology; and
‘‘(II) procedures for acquiring and disseminat-
ing to rehabilitation professionals and paraprofes-
sionals within the designated State unit significant
knowledge from research and other sources, includ-
ing procedures for providing training regarding the
amendments to this Act made by the Rehabilita-
tion Act Amendments of 1998;
‘‘(B) set forth policies and procedures relating to the
establishment and maintenance of standards to ensure that
H. R. 1385—189
personnel, including rehabilitation professionals and para-
professionals, needed within the designated State unit to
carry out this part are appropriately and adequately pre-
pared and trained, including—
‘‘(i) the establishment and maintenance of stand-
ards that are consistent with any national or State
approved or recognized certification, licensing, registra-
tion, or other comparable requirements that apply to
the area in which such personnel are providing voca-
tional rehabilitation services; and
‘‘(ii) to the extent that such standards are not
based on the highest requirements in the State
applicable to a specific profession or discipline, the
steps the State is taking to require the retraining
or hiring of personnel within the designated State unit
that meet appropriate professional requirements in the
State; and
‘‘(C) contain provisions relating to the establishment
and maintenance of minimum standards to ensure the
availability of personnel within the designated State unit,
to the maximum extent feasible, trained to communicate
in the native language or mode of communication of an
applicant or eligible individual.
‘‘(8) COMPARABLE SERVICES AND BENEFITS.—
‘‘(A) DETERMINATION OF AVAILABILITY.—
‘‘(i) IN GENERAL.—The State plan shall include an
assurance that, prior to providing any vocational
rehabilitation service to an eligible individual, except
those services specified in paragraph (5)(D) and in
paragraphs (1) through (4) and (14) of section 103(a),
the designated State unit will determine whether com-
parable services and benefits are available under any
other program (other than a program carried out under
this title) unless such a determination would interrupt
or delay—
‘‘(I) the progress of the individual toward
achieving the employment outcome identified in
the individualized plan for employment of the
individual in accordance with section 102(b);
‘‘(II) an immediate job placement; or
‘‘(III) the provision of such service to any
individual at extreme medical risk.
‘‘(ii) AWARDS AND SCHOLARSHIPS.—For purposes of
clause (i), comparable benefits do not include awards
and scholarships based on merit.
‘‘(B) INTERAGENCY AGREEMENT.—The State plan shall
include an assurance that the Governor of the State, in
consultation with the entity in the State responsible for
the vocational rehabilitation program and other appropriate
agencies, will ensure that an interagency agreement or
other mechanism for interagency coordination takes effect
between any appropriate public entity, including the State
entity responsible for administering the State medicaid
program, a public institution of higher education, and a
component of the statewide workforce investment system,
and the designated State unit, in order to ensure the provi-
sion of vocational rehabilitation services described in
H. R. 1385—190
subparagraph (A) (other than those services specified in
paragraph (5)(D), and in paragraphs (1) through (4) and
(14) of section 103(a)), that are included in the individual-
ized plan for employment of an eligible individual, including
the provision of such vocational rehabilitation services dur-
ing the pendency of any dispute described in clause (iii).
Such agreement or mechanism shall include the following:
‘‘(i) AGENCY FINANCIAL RESPONSIBILITY.—An identi-
fication of, or a description of a method for defining,
the financial responsibility of such public entity for
providing such services, and a provision stating the
financial responsibility of such public entity for provid-
ing such services.
‘‘(ii) CONDITIONS, TERMS, AND
PROCEDURES
OF
REIMBURSEMENT.—Information specifying the condi-
tions, terms, and procedures under which a designated
State unit shall be reimbursed by other public entities
for providing such services, based on the provisions
of such agreement or mechanism.
‘‘(iii) INTERAGENCY DISPUTES.—Information specify-
ing procedures for resolving interagency disputes under
the agreement or other mechanism (including proce-
dures under which the designated State unit may initi-
ate proceedings to secure reimbursement from other
public entities or otherwise implement the provisions
of the agreement or mechanism).
‘‘(iv) COORDINATION
OF
SERVICES
PROCEDURES.—
Information specifying policies and procedures for pub-
lic entities to determine and identify the interagency
coordination responsibilities of each public entity to
promote the coordination and timely delivery of voca-
tional rehabilitation services (except those services
specified in paragraph (5)(D) and in paragraphs (1)
through (4) and (14) of section 103(a)).
‘‘(C) RESPONSIBILITIES
OF
OTHER
PUBLIC
ENTITIES.—
‘‘(i) RESPONSIBILITIES
UNDER
OTHER
LAW.—Not-
withstanding subparagraph (B), if any public entity
other than a designated State unit is obligated under
Federal or State law, or assigned responsibility under
State policy or under this paragraph, to provide or
pay for any services that are also considered to be
vocational rehabilitation services (other than those
specified in paragraph (5)(D) and in paragraphs (1)
through (4) and (14) of section 103(a)), such public
entity shall fulfill that obligation or responsibility,
either directly or by contract or other arrangement.
‘‘(ii) REIMBURSEMENT.—If a public entity other
than the designated State unit fails to provide or pay
for the services described in clause (i) for an eligible
individual, the designated State unit shall provide or
pay for such services to the individual. Such designated
State unit may claim reimbursement for the services
from the public entity that failed to provide or pay
for such services. Such public entity shall reimburse
the designated State unit pursuant to the terms of
the interagency agreement or other mechanism
described in this paragraph according to the procedures
H. R. 1385—191
established in such agreement or mechanism pursuant
to subparagraph (B)(ii).
‘‘(D) METHODS.—The Governor of a State may meet
the requirements of subparagraph (B) through—
‘‘(i) a State statute or regulation;
‘‘(ii) a signed agreement between the respective
officials of the public entities that clearly identifies
the responsibilities of each public entity relating to
the provision of services; or
‘‘(iii) another appropriate method, as determined
by the designated State unit.
‘‘(9) INDIVIDUALIZED PLAN FOR EMPLOYMENT.—
‘‘(A) DEVELOPMENT AND IMPLEMENTATION.—The State
plan shall include an assurance that an individualized
plan for employment meeting the requirements of section
102(b) will be developed and implemented in a timely man-
ner for an individual subsequent to the determination of
the eligibility of the individual for services under this title,
except that in a State operating under an order of selection
described in paragraph (5), the plan will be developed
and implemented only for individuals meeting the order
of selection criteria of the State.
‘‘(B) PROVISION
OF
SERVICES.—The State plan shall
include an assurance that such services will be provided
in accordance with the provisions of the individualized
plan for employment.
‘‘(10) REPORTING REQUIREMENTS.—
‘‘(A) IN
GENERAL.—The State plan shall include an
assurance that the designated State agency will submit
reports in the form and level of detail and at the time
required by the Commissioner regarding applicants for,
and eligible individuals receiving, services under this title.
‘‘(B) ANNUAL REPORTING.—In specifying the informa-
tion to be submitted in the reports, the Commissioner
shall require annual reporting on the eligible individuals
receiving the services, on those specific data elements
described in section 136(d)(2) of the Workforce Investment
Act of 1998 that are determined by the Secretary to be
relevant in assessing the performance of designated State
units in carrying out the vocational rehabilitation program
established under this title.
‘‘(C) ADDITIONAL DATA.—In specifying the information
required to be submitted in the reports, the Commissioner
shall require additional data with regard to applicants
and eligible individuals related to—
‘‘(i) the number of applicants and the number of
individuals determined to be eligible or ineligible for
the program carried out under this title, including—
‘‘(I) the number of individuals determined to
be ineligible because they did not require voca-
tional rehabilitation services, as provided in sec-
tion 102(a); and
‘‘(II) the number of individuals determined,
on the basis of clear and convincing evidence, to
be too severely disabled to benefit in terms of
an 
employment 
outcome 
from 
vocational
rehabilitation services;
H. R. 1385—194
‘‘(F) COMPLETENESS AND CONFIDENTIALITY.—The State
plan shall include an assurance that the information
submitted in the reports will include a complete count,
except as provided in subparagraph (E), of the applicants
and eligible individuals, in a manner permitting the great-
est possible cross-classification of data and that the identity
of each individual for which information is supplied under
this paragraph will be kept confidential.
‘‘(11) COOPERATION, COLLABORATION, AND COORDINATION.—
‘‘(A) COOPERATIVE AGREEMENTS WITH OTHER COMPO-
NENTS OF STATEWIDE WORKFORCE INVESTMENT SYSTEMS.—
The State plan shall provide that the designated State
unit or designated State agency shall enter into a coopera-
tive agreement with other entities that are components
of the statewide workforce investment system of the State,
regarding the system, which agreement may provide for—
‘‘(i) provision of intercomponent staff training and
technical assistance with regard to—
‘‘(I) the availability and benefits of, and
information on eligibility standards for, vocational
rehabilitation services; and
‘‘(II) the promotion of equal, effective, and
meaningful participation by individuals with
disabilities in workforce investment activities in
the State through the promotion of program acces-
sibility, the use of nondiscriminatory policies and
procedures, and the provision of reasonable accom-
modations, auxiliary aids and services, and
rehabilitation technology, for individuals with
disabilities;
‘‘(ii) use of information and financial management
systems that link all components of the statewide
workforce investment system, that link the components
to other electronic networks, including nonvisual elec-
tronic networks, and that relate to such subjects as
employment statistics, and information on job vacan-
cies, career planning, and workforce investment activi-
ties;
‘‘(iii) use of customer service features such as com-
mon intake and referral procedures, customer data-
bases, resource information, and human services hot-
lines;
‘‘(iv) establishment of cooperative efforts with
employers to—
‘‘(I) facilitate job placement; and
‘‘(II) carry out any other activities that the
designated State unit and the employers determine
to be appropriate;
‘‘(v) identification of staff roles, responsibilities,
and available resources, and specification of the finan-
cial responsibility of each component of the statewide
workforce investment system with regard to paying
for necessary services (consistent with State law and
Federal requirements); and
‘‘(vi) specification of procedures for resolving dis-
putes among such components.
H. R. 1385—195
‘‘(B) REPLICATION OF COOPERATIVE AGREEMENTS.—The
State plan shall provide for the replication of such coopera-
tive agreements at the local level between individual offices
of the designated State unit and local entities carrying
out activities through the statewide workforce investment
system.
‘‘(C) INTERAGENCY
COOPERATION
WITH
OTHER
AGEN-
CIES.—The State plan shall include descriptions of inter-
agency cooperation with, and utilization of the services
and facilities of, Federal, State, and local agencies and
programs, including programs carried out by the Under
Secretary for Rural Development of the Department of
Agriculture and State use contracting programs, to the
extent that such agencies and programs are not carrying
out activities through the statewide workforce investment
system.
‘‘(D) COORDINATION WITH EDUCATION OFFICIALS.—The
State plan shall contain plans, policies, and procedures
for coordination between the designated State agency and
education officials responsible for the public education of
students with disabilities, that are designed to facilitate
the transition of the students with disabilities from the
receipt of educational services in school to the receipt of
vocational rehabilitation services under this title, including
information on a formal interagency agreement with the
State educational agency that, at a minimum, provides
for—
‘‘(i) consultation and technical assistance to assist
educational agencies in planning for the transition of
students with disabilities from school to post-school
activities, including vocational rehabilitation services;
‘‘(ii) transition planning by personnel of the des-
ignated State agency and educational agency personnel
for students with disabilities that facilitates the
development and completion of their individualized
education programs under section 614(d) of the Individ-
uals with Disabilities Education Act (as added by sec-
tion 101 of Public Law 105–17);
‘‘(iii) the roles and responsibilities, including finan-
cial responsibilities, of each agency, including provi-
sions for determining State lead agencies and qualified
personnel responsible for transition services; and
‘‘(iv) procedures for outreach to and identification
of students with disabilities who need the transition
services.
‘‘(E) COORDINATION WITH STATEWIDE INDEPENDENT LIV-
ING
COUNCILS
AND
INDEPENDENT
LIVING
CENTERS.—The
State plan shall include an assurance that the designated
State unit, the Statewide Independent Living Council
established under section 705, and the independent living
centers described in part C of title VII within the State
have developed working relationships and coordinate their
activities.
‘‘(F) COOPERATIVE
AGREEMENT
WITH
RECIPIENTS
OF
GRANTS FOR SERVICES TO AMERICAN INDIANS.—In applicable
cases, the State plan shall include an assurance that the
State has entered into a formal cooperative agreement
H. R. 1385—196
with each grant recipient in the State that receives funds
under part C. The agreement shall describe strategies for
collaboration and coordination in providing vocational
rehabilitation services to American Indians who are
individuals with disabilities, including—
‘‘(i) strategies for interagency referral and informa-
tion sharing that will assist in eligibility determina-
tions and the development of individualized plans for
employment;
‘‘(ii) procedures for ensuring that American Indians
who are individuals with disabilities and are living
near a reservation or tribal service area are provided
vocational rehabilitation services; and
‘‘(iii) provisions for sharing resources in cooperative
studies and assessments, joint training activities, and
other collaborative activities designed to improve the
provision of services to American Indians who are
individuals with disabilities.
‘‘(12) RESIDENCY.—The State plan shall include an assur-
ance that the State will not impose a residence requirement
that excludes from services provided under the plan any individ-
ual who is present in the State.
‘‘(13) SERVICES TO AMERICAN INDIANS.—The State plan shall
include an assurance that, except as otherwise provided in
part C, the designated State agency will provide vocational
rehabilitation services to American Indians who are individuals
with disabilities residing in the State to the same extent as
the designated State agency provides such services to other
significant populations of individuals with disabilities residing
in the State.
‘‘(14) ANNUAL
REVIEW
OF
INDIVIDUALS
IN
EXTENDED
EMPLOYMENT OR OTHER EMPLOYMENT UNDER SPECIAL CERTIFI-
CATE PROVISIONS OF THE FAIR LABOR STANDARDS ACT OF 1938.—
The State plan shall provide for—
‘‘(A) an annual review and reevaluation of the status
of each individual with a disability served under this title
who has achieved an employment outcome either in an
extended employment setting in a community rehabilitation
program or any other employment under section 14(c) of
the Fair Labor Standards Act (29 U.S.C. 214(c)) for 2
years after the achievement of the outcome (and thereafter
if requested by the individual or, if appropriate, the individ-
ual’s representative), to determine the interests, priorities,
and needs of the individual with respect to competitive
employment or training for competitive employment;
‘‘(B) input into the review and reevaluation, and a
signed acknowledgment that such review and reevaluation
have been conducted, by the individual with a disability,
or, if appropriate, the individual’s representative; and
‘‘(C) maximum efforts, including the identification and
provision of vocational rehabilitation services, reasonable
accommodations, and other necessary support services, to
assist the individuals described in subparagraph (A) in
engaging in competitive employment.
‘‘(15) ANNUAL STATE GOALS AND REPORTS OF PROGRESS.—
‘‘(A) ASSESSMENTS
AND
ESTIMATES.—The State plan
shall—
H. R. 1385—197
‘‘(i) include the results of a comprehensive, state-
wide assessment, jointly conducted by the designated
State unit and the State Rehabilitation Council (if
the State has such a Council) every 3 years, describing
the rehabilitation needs of individuals with disabilities
residing within the State, particularly the vocational
rehabilitation services needs of—
‘‘(I) individuals with the most significant
disabilities, including their need for supported
employment services;
‘‘(II) individuals with disabilities who are
minorities and individuals with disabilities who
have been unserved or underserved by the voca-
tional rehabilitation program carried out under
this title; and
‘‘(III) individuals with disabilities served
through other components of the statewide
workforce investment system (other than the voca-
tional rehabilitation program), as identified by
such individuals and personnel assisting such
individuals through the components;
‘‘(ii) include an assessment of the need to establish,
develop, or improve community rehabilitation pro-
grams within the State; and
‘‘(iii) provide that the State shall submit to the
Commissioner a report containing information regard-
ing updates to the assessments, for any year in which
the State updates the assessments.
‘‘(B) ANNUAL ESTIMATES.—The State plan shall include,
and shall provide that the State shall annually submit
a report to the Commissioner that includes, State estimates
of—
‘‘(i) the number of individuals in the State who
are eligible for services under this title;
‘‘(ii) the number of such individuals who will
receive services provided with funds provided under
part B and under part B of title VI, including, if
the designated State agency uses an order of selection
in accordance with paragraph (5), estimates of the
number of individuals to be served under each priority
category within the order; and
‘‘(iii) the costs of the services described in clause
(i), including, if the designated State agency uses an
order of selection in accordance with paragraph (5),
the service costs for each priority category within the
order.
‘‘(C) GOALS AND PRIORITIES.—
‘‘(i) IN
GENERAL.—The State plan shall identify
the goals and priorities of the State in carrying out
the program. The goals and priorities shall be jointly
developed, agreed to, and reviewed annually by the
designated State unit and the State Rehabilitation
Council, if the State has such a Council. Any revisions
to the goals and priorities shall be jointly agreed to
by the designated State unit and the State Rehabilita-
tion Council, if the State has such a Council. The
State plan shall provide that the State shall submit
H. R. 1385—198
to the Commissioner a report containing information
regarding revisions in the goals and priorities, for any
year in which the State revises the goals and priorities.
‘‘(ii) BASIS.—The State goals and priorities shall
be based on an analysis of—
‘‘(I) the comprehensive assessment described
in subparagraph (A), including any updates to the
assessment;
‘‘(II) the performance of the State on the stand-
ards and indicators established under section 106;
and
‘‘(III) other available information on the oper-
ation and the effectiveness of the vocational
rehabilitation program carried out in the State,
including any reports received from the State
Rehabilitation Council, under section 105(c) and
the findings and recommendations from monitor-
ing activities conducted under section 107.
‘‘(iii) SERVICE AND OUTCOME GOALS FOR CATEGORIES
IN
ORDER
OF
SELECTION.—If the designated State
agency uses an order of selection in accordance with
paragraph (5), the State shall also identify in the State
plan service and outcome goals and the time within
which these goals may be achieved for individuals in
each priority category within the order.
‘‘(D) STRATEGIES.—The State plan shall contain a
description of the strategies the State will use to address
the needs identified in the assessment conducted under
subparagraph (A) and achieve the goals and priorities
identified in subparagraph (C), including—
‘‘(i) the methods to be used to expand and improve
services to individuals with disabilities, including how
a broad range of assistive technology services and
assistive technology devices will be provided to such
individuals at each stage of the rehabilitation process
and how such services and devices will be provided
to such individuals on a statewide basis;
‘‘(ii) outreach procedures to identify and serve
individuals with disabilities who are minorities and
individuals with disabilities who have been unserved
or underserved by the vocational rehabilitation pro-
gram;
‘‘(iii) where necessary, the plan of the State for
establishing, developing, or improving community
rehabilitation programs;
‘‘(iv) strategies to improve the performance of the
State with respect to the evaluation standards and
performance indicators established pursuant to section
106; and
‘‘(v) strategies for assisting entities carrying out
other components of the statewide workforce invest-
ment system (other than the vocational rehabilitation
program) in assisting individuals with disabilities.
‘‘(E) EVALUATION
AND
REPORTS
OF
PROGRESS.—The
State plan shall—
‘‘(i) include the results of an evaluation of the
effectiveness of the vocational rehabilitation program,
H. R. 1385—199
and a joint report by the designated State unit and
the State Rehabilitation Council, if the State has such
a Council, to the Commissioner on the progress made
in improving the effectiveness from the previous year,
which evaluation and report shall include—
‘‘(I) an evaluation of the extent to which the
goals identified in subparagraph (C) were achieved;
‘‘(II) a description of strategies that contrib-
uted to achieving the goals;
‘‘(III) to the extent to which the goals were
not achieved, a description of the factors that
impeded that achievement; and
‘‘(IV) an assessment of the performance of the
State on the standards and indicators established
pursuant to section 106; and
‘‘(ii) provide that the designated State unit and
the State Rehabilitation Council, if the State has such
a Council, shall jointly submit to the Commissioner
an annual report that contains the information
described in clause (i).
‘‘(16) PUBLIC COMMENT.—The State plan shall—
‘‘(A) provide that the designated State agency, prior
to the adoption of any policies or procedures governing
the provision of vocational rehabilitation services under
the State plan (including making any amendment to such
policies and procedures), shall conduct public meetings
throughout the State, after providing adequate notice of
the meetings, to provide the public, including individuals
with disabilities, an opportunity to comment on the policies
or procedures, and actively consult with the Director of
the client assistance program carried out under section
112, and, as appropriate, Indian tribes, tribal organizations,
and Native Hawaiian organizations on the policies or proce-
dures; and
‘‘(B) provide that the designated State agency (or each
designated State agency if two agencies are designated)
and any sole agency administering the plan in a political
subdivision of the State, shall take into account, in connec-
tion with matters of general policy arising in the adminis-
tration of the plan, the views of—
‘‘(i) individuals and groups of individuals who are
recipients of vocational rehabilitation services, or in
appropriate cases, the individuals’ representatives;
‘‘(ii) personnel working in programs that provide
vocational rehabilitation services to individuals with
disabilities;
‘‘(iii) providers of vocational rehabilitation services
to individuals with disabilities;
‘‘(iv) the director of the client assistance program;
and
‘‘(v) the State Rehabilitation Council, if the State
has such a Council.
‘‘(17) USE OF FUNDS FOR CONSTRUCTION OF FACILITIES.—
The State plan shall provide that if, under special cir-
cumstances, the State plan includes provisions for the construc-
tion of facilities for community rehabilitation programs—
H. R. 1385—200
‘‘(A) the Federal share of the cost of construction for
the facilities for a fiscal year will not exceed an amount
equal to 10 percent of the State’s allotment under section
110 for such year;
‘‘(B) the provisions of section 306 (as in effect on the
day before the date of enactment of the Rehabilitation
Act Amendments of 1998) shall be applicable to such
construction and such provisions shall be deemed to apply
to such construction; and
‘‘(C) there shall be compliance with regulations the
Commissioner shall prescribe designed to assure that no
State will reduce its efforts in providing other vocational
rehabilitation services (other than for the establishment
of facilities for community rehabilitation programs) because
the plan includes such provisions for construction.
‘‘(18) INNOVATION AND EXPANSION ACTIVITIES.—The State
plan shall—
‘‘(A) include an assurance that the State will reserve
and use a portion of the funds allotted to the State under
section 110—
‘‘(i) for the development and implementation of
innovative approaches to expand and improve the
provision of vocational rehabilitation services to
individuals with disabilities under this title, particu-
larly individuals with the most significant disabilities,
consistent with the findings of the statewide assess-
ment and goals and priorities of the State as described
in paragraph (15); and
‘‘(ii) to support the funding of—
‘‘(I) the State Rehabilitation Council, if the
State has such a Council, consistent with the plan
prepared under section 105(d)(1); and
‘‘(II) the Statewide Independent Living Coun-
cil, consistent with the plan prepared under section
705(e)(1);
‘‘(B) include a description of how the reserved funds
will be utilized; and
‘‘(C) provide that the State shall submit to the Commis-
sioner an annual report containing a description of how
the reserved funds will be utilized.
‘‘(19) CHOICE.—The State plan shall include an assurance
that applicants and eligible individuals or, as appropriate, the
applicants’ representatives or individuals’ representatives, will
be provided information and support services to assist the
applicants and individuals in exercising informed choice
throughout the rehabilitation process, consistent with the provi-
sions of section 102(d).
‘‘(20) INFORMATION AND REFERRAL SERVICES.—
‘‘(A) IN
GENERAL.—The State plan shall include an
assurance that the designated State agency will implement
an information and referral system adequate to ensure
that individuals with disabilities will be provided accurate
vocational rehabilitation information and guidance, using
appropriate modes of communication, to assist such individ-
uals in preparing for, securing, retaining, or regaining
employment, and will be appropriately referred to Federal
H. R. 1385—201
and State programs (other than the vocational rehabilita-
tion program carried out under this title), including other
components of the statewide workforce investment system
in the State.
‘‘(B) 
REFERRALS.—An 
appropriate 
referral 
made
through the system shall—
‘‘(i) be to the Federal or State programs, including
programs carried out by other components of the state-
wide workforce investment system in the State, best
suited to address the specific employment needs of
an individual with a disability; and
‘‘(ii) include, for each of these programs, provision
to the individual of—
‘‘(I) a notice of the referral by the designated
State agency to the agency carrying out the pro-
gram;
‘‘(II) information identifying a specific point
of contact within the agency carrying out the pro-
gram; and
‘‘(III) information and advice regarding the
most suitable services to assist the individual to
prepare for, secure, retain, or regain employment.
‘‘(21) STATE INDEPENDENT CONSUMER-CONTROLLED COMMIS-
SION; STATE REHABILITATION COUNCIL.—
‘‘(A) COMMISSION OR COUNCIL.—The State plan shall
provide that either—
‘‘(i) the designated State agency is an independent
commission that—
‘‘(I) is responsible under State law for operat-
ing, or overseeing the operation of, the vocational
rehabilitation program in the State;
‘‘(II) is consumer-controlled by persons who—
‘‘(aa) are individuals with physical or men-
tal impairments that substantially limit major
life activities; and
‘‘(bb) represent individuals with a broad
range of disabilities, unless the designated
State unit under the direction of the Commis-
sion is the State agency for individuals who
are blind;
‘‘(III) includes family members, advocates, or
other representatives, of individuals with mental
impairments; and
‘‘(IV) undertakes the functions set forth in sec-
tion 105(c)(4); or
‘‘(ii) the State has established a State Rehabilita-
tion Council that meets the criteria set forth in section
105 and the designated State unit—
‘‘(I) in accordance with paragraph (15), jointly
develops, agrees to, and reviews annually State
goals and priorities, and jointly submits annual
reports of progress with the Council;
‘‘(II) regularly consults with the Council
regarding the development, implementation, and
revision of State policies and procedures of general
applicability pertaining to the provision of voca-
tional rehabilitation services;
H. R. 1385—202
‘‘(III) includes in the State plan and in any
revision to the State plan, a summary of input
provided by the Council, including recommenda-
tions from the annual report of the Council
described in section 105(c)(5), the review and
analysis of consumer satisfaction described in sec-
tion 105(c)(4), and other reports prepared by the
Council, and the response of the designated State
unit to such input and recommendations, including
explanations for rejecting any input or rec-
ommendation; and
‘‘(IV) transmits to the Council—
‘‘(aa) all plans, reports, and other informa-
tion required under this title to be submitted
to the Secretary;
‘‘(bb) all policies, and information on all
practices and procedures, of general applicabil-
ity provided to or used by rehabilitation
personnel in carrying out this title; and
‘‘(cc) 
copies 
of 
due 
process 
hearing
decisions issued under this title, which shall
be transmitted in such a manner as to ensure
that the identity of the participants in the
hearings is kept confidential.
‘‘(B) MORE
THAN
ONE
DESIGNATED
STATE
AGENCY.—
In the case of a State that, under section 101(a)(2), des-
ignates a State agency to administer the part of the State
plan under which vocational rehabilitation services are pro-
vided for individuals who are blind (or to supervise the
administration of such part by a local agency) and des-
ignates a separate State agency to administer the rest
of the State plan, the State shall either establish a State
Rehabilitation Council for each of the two agencies that
does not meet the requirements in subparagraph (A)(i),
or establish one State Rehabilitation Council for both agen-
cies if neither agency meets the requirements of subpara-
graph (A)(i).
‘‘(22) SUPPORTED EMPLOYMENT STATE PLAN SUPPLEMENT.—
The State plan shall include an assurance that the State has
an acceptable plan for carrying out part B of title VI, including
the use of funds under that part to supplement funds made
available under part B of this title to pay for the cost of
services leading to supported employment.
‘‘(23) ANNUAL UPDATES.—The plan shall include an assur-
ance that the State will submit to the Commissioner reports
containing annual updates of the information required under
paragraph (7) (relating to a comprehensive system of personnel
development) and any other updates of the information required
under this section that are requested by the Commissioner,
and annual reports as provided in paragraphs (15) (relating
to assessments, estimates, goals and priorities, and reports
of progress) and (18) (relating to innovation and expansion),
at such time and in such manner as the Secretary may deter-
mine to be appropriate.
‘‘(24) CERTAIN
CONTRACTS
AND
COOPERATIVE
AGREE-
MENTS.—