H. R. 1385—222
the Commissioner shall provide technical assistance to the
State, and the State and the Commissioner shall jointly
develop a program improvement plan outlining the specific
actions to be taken by the State to improve program
performance.
‘‘(B) REVIEW.—The Commissioner shall—
‘‘(i) review the program improvement efforts of
the State on a biannual basis and, if necessary, request
the State to make further revisions to the plan to
improve performance; and
‘‘(ii) continue to conduct such reviews and request
such revisions until the State sustains satisfactory
performance over a period of more than 1 year.
‘‘(c) WITHHOLDING.—If the Commissioner determines that a
State whose performance falls below the established standards has
failed to enter into a program improvement plan, or is not complying
substantially with the terms and conditions of such a program
improvement plan, the Commissioner shall, consistent with sub-
sections (c) and (d) of section 107, reduce or make no further
payments to the State under this program, until the State has
entered into an approved program improvement plan, or satisfies
the Commissioner that the State is complying substantially with
the terms and conditions of such a program improvement plan,
as appropriate.
‘‘(d) REPORT TO CONGRESS.—Beginning in fiscal year 1999, the
Commissioner shall include in each annual report to the Congress
under section 13 an analysis of program performance, including
relative State performance, based on the standards and indicators.
‘‘SEC. 107. MONITORING AND REVIEW.
‘‘(a) IN GENERAL.—
‘‘(1) DUTIES.—In carrying out the duties of the Commis-
sioner under this title, the Commissioner shall—
‘‘(A) provide for the annual review and periodic onsite
monitoring of programs under this title; and
‘‘(B) determine whether, in the administration of the
State plan, a State is complying substantially with the
provisions of such plan and with evaluation standards and
performance indicators established under section 106.
‘‘(2) PROCEDURES
FOR
REVIEWS.—In conducting reviews
under this section the Commissioner shall consider, at a mini-
mum—
‘‘(A) State policies and procedures;
‘‘(B) guidance materials;
‘‘(C) decisions resulting from hearings conducted in
accordance with due process;
‘‘(D) State goals established under section 101(a)(15)
and the extent to which the State has achieved such goals;
‘‘(E) plans and reports prepared under section 106(b);
‘‘(F) consumer satisfaction reviews and analyses
described in section 105(c)(4);
‘‘(G) information provided by the State Rehabilitation
Council established under section 105, if the State has
such a Council, or by the commission described in section
101(a)(21)(A)(i), if the State has such a commission;
‘‘(H) reports; and
‘‘(I) budget and financial management data.
H. R. 1385—223
‘‘(3) 
PROCEDURES
FOR
MONITORING.—In 
conducting
monitoring under this section the Commissioner shall conduct—
‘‘(A) onsite visits, including onsite reviews of records
to verify that the State is following requirements regarding
the order of selection set forth in section 101(a)(5)(A);
‘‘(B) public hearings and other strategies for collecting
information from the public;
‘‘(C) meetings with the State Rehabilitation Council,
if the State has such a Council or with the commission
described in section 101(a)(21)(A)(i), if the State has such
a commission;
‘‘(D) reviews of individual case files, including individ-
ualized plans for employment and ineligibility determina-
tions; and
‘‘(E) meetings with qualified vocational rehabilitation
counselors and other personnel.
‘‘(4) AREAS
OF
INQUIRY.—In conducting the review and
monitoring, the Commissioner shall examine—
‘‘(A) the eligibility process;
‘‘(B) the provision of services, including, if applicable,
the order of selection;
‘‘(C) such other areas as may be identified by the
public or through meetings with the State Rehabilitation
Council, if the State has such a Council or with the commis-
sion described in section 101(a)(21)(A)(i), if the State has
such a commission; and
‘‘(D) such other areas of inquiry as the Commissioner
may consider appropriate.
‘‘(5) REPORTS.—If the Commissioner issues a report detail-
ing the findings of an annual review or onsite monitoring
conducted under this section, the report shall be made available
to the State Rehabilitation Council, if the State has such a
Council, for use in the development and modification of the
State plan described in section 101.
‘‘(b) TECHNICAL ASSISTANCE.—The Commissioner shall—
‘‘(1) provide technical assistance to programs under this
title regarding improving the quality of vocational rehabilitation
services provided; and
‘‘(2) provide technical assistance and establish a corrective
action plan for a program under this title if the Commissioner
finds that the program fails to comply substantially with the
provisions of the State plan, or with evaluation standards or
performance indicators established under section 106, in order
to ensure that such failure is corrected as soon as practicable.
‘‘(c) FAILURE TO COMPLY WITH PLAN.—
‘‘(1) WITHHOLDING
PAYMENTS.—Whenever the Commis-
sioner, after providing reasonable notice and an opportunity
for a hearing to the State agency administering or supervising
the administration of the State plan approved under section
101, finds that—
‘‘(A) the plan has been so changed that it no longer
complies with the requirements of section 101(a); or
‘‘(B) in the administration of the plan there is a failure
to comply substantially with any provision of such plan
or with an evaluation standard or performance indicator
established under section 106,
H. R. 1385—224
the Commissioner shall notify such State agency that no further
payments will be made to the State under this title (or, in
the discretion of the Commissioner, that such further payments
will be reduced, in accordance with regulations the Commis-
sioner shall prescribe, or that further payments will not be
made to the State only for the projects under the parts of
the State plan affected by such failure), until the Commissioner
is satisfied there is no longer any such failure.
‘‘(2) PERIOD.—Until the Commissioner is so satisfied, the
Commissioner shall make no further payments to such State
under this title (or shall reduce payments or limit payments
to projects under those parts of the State plan in which there
is no such failure).
‘‘(3) DISBURSAL OF WITHHELD FUNDS.—The Commissioner
may, in accordance with regulations the Secretary shall pre-
scribe, disburse any funds withheld from a State under para-
graph (1) to any public or nonprofit private organization or
agency within such State or to any political subdivision of
such State submitting a plan meeting the requirements of
section 101(a). The Commissioner may not make any payment
under this paragraph unless the entity to which such payment
is made has provided assurances to the Commissioner that
such entity will contribute, for purposes of carrying out such
plan, the same amount as the State would have been obligated
to contribute if the State received such payment.
‘‘(d) REVIEW.—
‘‘(1) PETITION.—Any State that is dissatisfied with a final
determination of the Commissioner under section 101(b) or
subsection (c) may file a petition for judicial review of such
determination in the United States Court of Appeals for the
circuit in which the State is located. Such a petition may
be filed only within the 30-day period beginning on the date
that notice of such final determination was received by the
State. The clerk of the court shall transmit a copy of the
petition to the Commissioner or to any officer designated by
the Commissioner for that purpose. In accordance with section
2112 of title 28, United States Code, the Commissioner shall
file with the court a record of the proceeding on which the
Commissioner based the determination being appealed by the
State. Until a record is so filed, the Commissioner may modify
or set aside any determination made under such proceedings.
‘‘(2) SUBMISSIONS AND DETERMINATIONS.—If, in an action
under this subsection to review a final determination of the
Commissioner under section 101(b) or subsection (c), the peti-
tioner or the Commissioner applies to the court for leave to
have additional oral submissions or written presentations made
respecting such determination, the court may, for good cause
shown, order the Commissioner to provide within 30 days an
additional opportunity to make such submissions and presen-
tations. Within such period, the Commissioner may revise any
findings of fact, modify or set aside the determination being
reviewed, or make a new determination by reason of the addi-
tional submissions and presentations, and shall file such modi-
fied or new determination, and any revised findings of fact,
with the return of such submissions and presentations. The
court shall thereafter review such new or modified determina-
tion.
H. R. 1385—225
‘‘(3) STANDARDS OF REVIEW.—
‘‘(A) IN GENERAL.—Upon the filing of a petition under
paragraph (1) for judicial review of a determination, the
court shall have jurisdiction—
‘‘(i) to grant appropriate relief as provided in chap-
ter 7 of title 5, United States Code, except for interim
relief with respect to a determination under subsection
(c); and
‘‘(ii) except as otherwise provided in subparagraph
(B), to review such determination in accordance with
chapter 7 of title 5, United States Code.
‘‘(B) SUBSTANTIAL EVIDENCE.—Section 706 of title 5,
United States Code, shall apply to the review of any deter-
mination under this subsection, except that the standard
for review prescribed by paragraph (2)(E) of such section
706 shall not apply and the court shall hold unlawful
and set aside such determination if the court finds that
the determination is not supported by substantial evidence
in the record of the proceeding submitted pursuant to para-
graph (1), as supplemented by any additional submissions
and presentations filed under paragraph (2).
‘‘SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.
‘‘(a) EXPENDITURE.—Amounts described in subsection (b) may
not be expended by a State for any purpose other than carrying
out programs for which the State receives financial assistance under
this title, under part B of title VI, or under title VII.
‘‘(b) AMOUNTS.—The amounts referred to in subsection (a) are
amounts provided to a State under the Social Security Act (42
U.S.C. 301 et seq.) as reimbursement for the expenditure of pay-
ments received by the State from allotments under section 110
of this Act.
‘‘SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS
WITH DISABILITIES ACT OF 1990.
‘‘A State may expend payments received under section 111—
‘‘(1) to carry out a program to train employers with respect
to compliance with the requirements of title I of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); and
‘‘(2) to inform employers of the existence of the program
and the availability of the services of the program.
‘‘PART B—BASIC VOCATIONAL REHABILITATION SERVICES
‘‘SEC. 110. STATE ALLOTMENTS.
‘‘(a)(1) Subject to the provisions of subsection (c), for each fiscal
year beginning before October 1, 1978, each State shall be entitled
to an allotment of an amount bearing the same ratio to the amount
authorized to be appropriated under section 100(b)(1) for allotment
under this section as the product of—
‘‘(A) the population of the State; and
‘‘(B) the square of its allotment percentage,
bears to the sum of the corresponding products for all the States.
‘‘(2)(A) For each fiscal year beginning on or after October 1,
1978, each State shall be entitled to an allotment in an amount
equal to the amount such State received under paragraph (1) for
the fiscal year ending September 30, 1978, and an additional
amount determined pursuant to subparagraph (B) of this paragraph.