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‘‘(40) VOCATIONAL REHABILITATION SERVICES.—
The term ‘vocational rehabilitation services’ means
those services identified in section 103 which are pro-
vided to individuals with disabilities under this Act.
‘‘(41) WORKFORCE
INVESTMENT
ACTIVITIES.—
The term ‘workforce investment activities’ has the
meaning given the term in section 2 of the Workforce
Investment Partnership Act of 1998 carried out under
that Act.
‘‘ALLOTMENT PERCENTAGE
‘‘SEC. 8. (a)(1) For purposes of section 110, the allot-
ment percentage for any State shall be 100 per centum less
that percentage which bears the same ratio to 50 per centum
as the per capita income of such State bears to the per cap-
ita income of the United States, except that—
‘‘(A) the allotment percentage shall in no case be
more than 75 per centum or less than 331⁄3 per cen-
tum; and
‘‘(B) the allotment percentage for the District of
Columbia, Puerto Rico, Guam, the Virgin Islands,
American Samoa, and the Commonwealth of the
Northern Mariana Islands shall be 75 per centum.
‘‘(2) The allotment percentages shall be promulgated
by the Secretary between October 1 and December 31 of each
even-numbered year, on the basis of the average of the per
capita incomes of the States and of the United States for
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the three most recent consecutive years for which satisfac-
tory data are available from the Department of Commerce.
Such promulgation shall be conclusive for each of the two
fiscal years in the period beginning on the October 1 next
succeeding such promulgation.
‘‘(3) The term ‘United States’ means (but only for pur-
poses of this subsection) the fifty States and the District
of Columbia.
‘‘(b) The population of the several States and of the
United States shall be determined on the basis of the most
recent data available, to be furnished by the Department
of Commerce by October 1 of the year preceding the fiscal
year for which funds are appropriated pursuant to statu-
tory authorizations.
‘‘NONDUPLICATION
‘‘SEC. 10. In determining the amount of any State’s
Federal share of expenditures for planning, administration,
and services incurred by it under a State plan approved
in accordance with section 101, there shall be disregarded
(1) any portion of such expenditures which are financed
by Federal funds provided under any other provision of
law, and (2) the amount of any non-Federal funds required
to be expended as a condition of receipt of such Federal
funds. No payment may be made from funds provided
under one provision of this Act relating to any cost with
respect to which any payment is made under any other pro-
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vision of this Act, except that this section shall not be con-
strued to limit or reduce fees for services rendered by com-
munity rehabilitation programs.
‘‘APPLICATION OF OTHER LAWS
‘‘SEC. 11. The provisions of the Act of December 5,
1974 (Public Law 93–510) and of title V of the Act of Octo-
ber 15, 1977 (Public Law 95–134) shall not apply to the
administration of the provisions of this Act or to the admin-
istration of any program or activity under this Act.
‘‘ADMINISTRATION OF THE ACT
‘‘SEC. 12. (a) In carrying out the purposes of this Act,
the Commissioner may—
‘‘(1) provide consultative services and technical
assistance to public or nonprofit private agencies and
organizations, including assistance to enable such
agencies and organizations to facilitate meaningful
and effective participation by individuals with dis-
abilities in workforce investment activities;
‘‘(2) provide short-term training and technical
instruction, including training for the personnel of
community rehabilitation programs, centers for inde-
pendent living, and other providers of services (in-
cluding job coaches);
‘‘(3) conduct special projects and demonstrations;
‘‘(4) collect, prepare, publish, and disseminate
special educational or informational materials, in-
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cluding reports of the projects for which funds are
provided under this Act; and
‘‘(5) provide monitoring and conduct evalua-
tions.
‘‘(b)(1) In carrying out the duties under this Act, the
Commissioner may utilize the services and facilities of any
agency of the Federal Government and of any other public
or nonprofit agency or organization, in accordance with
agreements between the Commissioner and the head thereof,
and may pay therefor, in advance or by way of reimburse-
ment, as may be provided in the agreement.
‘‘(2) In carrying out the provisions of this Act, the
Commissioner shall appoint such task forces as may be nec-
essary to collect and disseminate information in order to
improve the ability of the Commissioner to carry out the
provisions of this Act.
‘‘(c) The Commissioner may promulgate such regula-
tions as are considered appropriate to carry out the Com-
missioner’s duties under this Act.
‘‘(d) The Secretary shall promulgate regulations re-
garding the requirements for the implementation of an
order of selection for vocational rehabilitation services
under section 101(a)(5)(A) if such services cannot be pro-
vided to all eligible individuals with disabilities who apply
for such services.
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‘‘(e) Not later than 180 days after the date of enact-
ment of the Rehabilitation Act Amendments of 1998, the
Secretary shall receive public comment and promulgate reg-
ulations to implement the amendments made by the Reha-
bilitation Act Amendments of 1998.
‘‘(f) In promulgating regulations to carry out this Act,
the Secretary shall promulgate only regulations that are
necessary to administer and ensure compliance with the
specific requirements of this Act.
‘‘(g) There are authorized to be appropriated to carry
out this section such sums as may be necessary.
‘‘REPORTS
‘‘SEC. 13. (a) Not later than one hundred and eighty
days after the close of each fiscal year, the Commissioner
shall prepare and submit to the President and to the Con-
gress a full and complete report on the activities carried
out under this Act, including the activities and staffing of
the information clearinghouse under section 15.
‘‘(b) The Commissioner shall collect information to de-
termine whether the purposes of this Act are being met and
to assess the performance of programs carried out under
this Act. The Commissioner shall take whatever action is
necessary to assure that the identity of each individual for
which information is supplied under this section is kept
confidential, except as otherwise required by law (including
regulation).
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‘‘(c) In preparing the report, the Commissioner shall
annually collect and include in the report information
based on the information submitted by States in accordance
with section 101(a)(10). The Commissioner shall, to the
maximum extent appropriate, include in the report all in-
formation that is required to be submitted in the reports
described in section 321(d) of the Workforce Investment
Partnership Act of 1998 and that pertains to the employ-
ment of individuals with disabilities.
‘‘EVALUATION
‘‘SEC. 14. (a) For the purpose of improving program
management and effectiveness, the Secretary, in consulta-
tion with the Commissioner, shall evaluate all the programs
authorized by this Act, their general effectiveness in relation
to their cost, their impact on related programs, and their
structure and mechanisms for delivery of services, using ap-
propriate methodology and evaluative research designs. The
Secretary shall establish and use standards for the evalua-
tions required by this subsection. Such an evaluation shall
be conducted by a person not immediately involved in the
administration of the program evaluated.
‘‘(b) In carrying out evaluations under this section,
the Secretary shall obtain the opinions of program and
project participants about the strengths and weaknesses of
the programs and projects.
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‘‘(c) The Secretary shall take the necessary action to
assure that all studies, evaluations, proposals, and data
produced or developed with Federal funds under this Act
shall become the property of the United States.
‘‘(d) Such information as the Secretary may determine
to be necessary for purposes of the evaluations conducted
under this section shall be made available upon request of
the Secretary, by the departments and agencies of the execu-
tive branch.
‘‘(e)(1) To assess the linkages between vocational reha-
bilitation services and economic and noneconomic outcomes,
the Secretary shall continue to conduct a longitudinal study
of a national sample of applicants for the services.
‘‘(2) The study shall address factors related to attrition
and completion of the program through which the services
are provided and factors within and outside the program
affecting results. Appropriate comparisons shall be used to
contrast the experiences of similar persons who do not ob-
tain the services.
‘‘(3) The study shall be planned to cover the period
beginning on the application of individuals with disabil-
ities for the services, through the eligibility determination
and provision of services for the individuals, and a further
period of not less than 2 years after the termination of serv-
ices.
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‘‘(f)(1) The Commissioner shall identify and dissemi-
nate information on exemplary practices concerning voca-
tional rehabilitation.
‘‘(2) To facilitate compliance with paragraph (1), the
Commissioner shall conduct studies and analyses that iden-
tify exemplary practices concerning vocational rehabilita-
tion, including studies in areas relating to providing in-
formed choice in the rehabilitation process, promoting con-
sumer satisfaction, promoting job placement and retention,
providing supported employment, providing services to par-
ticular disability populations, financing personal assist-
ance services, providing assistive technology devices and as-
sistive technology services, entering into cooperative agree-
ments, establishing standards and certification for commu-
nity rehabilitation programs, converting from non-
integrated to integrated employment, and providing case-
load management.
‘‘(g) There are authorized to be appropriated to carry
out this section such sums as may be necessary.
‘‘INFORMATION CLEARINGHOUSE
‘‘SEC. 15. (a) The Secretary shall establish a central
clearinghouse for information and resource availability for
individuals with disabilities which shall provide informa-
tion and data regarding—
‘‘(1) the location, provision, and availability of
services and programs for individuals with disabil-
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ities, including such information and data provided
by statewide partnerships established under section
303 of the Workforce Investment Partnership Act of
1998 regarding such services and programs author-
ized under such Act;
‘‘(2) research and recent medical and scientific
developments bearing on disabilities (and their pre-
vention, amelioration, causes, and cures); and
‘‘(3) the current numbers of individuals with dis-
abilities and their needs.
The clearinghouse shall also provide any other relevant in-
formation and data which the Secretary considers appro-
priate.
‘‘(b) The Commissioner may assist the Secretary to de-
velop within the Department of Education a coordinated
system of information and data retrieval, which will have
the capacity and responsibility to provide information re-
garding the information and data referred to in subsection
(a) of this section to the Congress, public and private agen-
cies and organizations, individuals with disabilities and
their families, professionals in fields serving such individ-
uals, and the general public.
‘‘(c) The office established to carry out the provisions
of this section shall be known as the ‘Office of Information
and Resources for Individuals with Disabilities’.
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‘‘(d) There are authorized to be appropriated to carry
out this section such sums as may be necessary.
‘‘TRANSFER OF FUNDS
‘‘SEC. 16. (a) Except as provided in subsection (b) of
this section, no funds appropriated under this Act for any
program or activity may be used for any purpose other than
that for which the funds were specifically authorized.
‘‘(b) No more than 1 percent of funds appropriated for
discretionary grants, contracts, or cooperative agreements
authorized by this Act may be used for the purpose of pro-
viding non-Federal panels of experts to review applications
for such grants, contracts, or cooperative agreements.
‘‘STATE ADMINISTRATION
‘‘SEC. 17. The application of any State rule or policy
relating to the administration or operation of programs
funded by this Act (including any rule or policy based on
State interpretation of any Federal law, regulation, or
guideline) shall be identified as a State imposed require-
ment.
‘‘REVIEW OF APPLICATIONS
‘‘SEC. 18. Applications for grants in excess of $100,000
in the aggregate authorized to be funded under this Act,
other than grants primarily for the purpose of conducting
dissemination or conferences, shall be reviewed by panels
of experts which shall include a majority of non-Federal
members. Non-Federal members may be provided travel, per
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diem, and consultant fees not to exceed the daily equivalent
of the rate of pay for level 4 of the Senior Executive Service
Schedule under section 5382 of title 5, United States Code.
‘‘SEC. 19. CARRYOVER.
‘‘(a) IN GENERAL.—Except as provided in subsection
(b), and notwithstanding any other provision of law—
‘‘(1) any funds appropriated for a fiscal year to
carry out any grant program under part B of title
I, section 509 (except as provided in section 509(b)),
part C of title VI, part B or C of chapter 1 of title
VII, or chapter 2 of title VII (except as provided in
section 752(b)), including any funds reallotted under
any such grant program, that are not obligated and
expended by recipients prior to the beginning of the
succeeding fiscal year; or
‘‘(2) any amounts of program income, including
reimbursement payments under the Social Security
Act (42 U.S.C. 301 et seq.), received by recipients
under any grant program specified in paragraph (1)
that are not obligated and expended by recipients
prior to the beginning of the fiscal year succeeding the
fiscal year in which such amounts were received,
shall remain available for obligation and expenditure by
such recipients during such succeeding fiscal year.
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‘‘(b) NON-FEDERAL SHARE.—Such funds shall remain
available for obligation and expenditure by a recipient as
provided in subsection (a) only to the extent that the recipi-
ent complied with any Federal share requirements applica-
ble to the program for the fiscal year for which the funds
were appropriated.
‘‘SEC. 20. CLIENT ASSISTANCE INFORMATION.
‘‘All programs, including community rehabilitation
programs, and projects, that provide services to individuals
with disabilities under this Act shall advise such individ-
uals who are applicants for or recipients of the services,
or the applicants’ representatives or individuals’ represent-
atives, of the availability and purposes of the client assist-
ance program under section 112, including information on
means of seeking assistance under such program.
‘‘SEC. 21. TRADITIONALLY UNDERSERVED POPULATIONS.
‘‘(a) FINDINGS.—With respect to the programs author-
ized in titles II through VII, the Congress finds as follows:
‘‘(1) RACIAL
PROFILE.—The racial profile of
America is rapidly changing. While the rate of in-
crease for white Americans is 3.2 percent, the rate of
increase for racial and ethnic minorities is much
higher: 38.6 percent for Latinos, 14.6 percent for Afri-
can-Americans, and 40.1 percent for Asian-Americans
and other ethnic groups. By the year 2000, the Nation
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will have 260,000,000 people, one of every three of
whom will be either African-American, Latino, or
Asian-American.
‘‘(2) RATE OF DISABILITY.—Ethnic and racial
minorities tend to have disabling conditions at a dis-
proportionately high rate. The rate of work-related
disability for American Indians is about one and one-
half times that of the general population. African-
Americans are also one and one-half times more likely
to be disabled than whites and twice as likely to be
significantly disabled.
‘‘(3) INEQUITABLE TREATMENT.—Patterns of in-
equitable treatment of minorities have been docu-
mented in all major junctures of the vocational reha-
bilitation process. As compared to white Americans,
a larger percentage of African-American applicants to
the vocational rehabilitation system is denied accept-
ance. Of applicants accepted for service, a larger per-
centage of African-American cases is closed without
being rehabilitated. Minorities are provided less
training than their white counterparts. Consistently,
less money is spent on minorities than on their white
counterparts.
‘‘(4) RECRUITMENT.—Recruitment efforts within
vocational rehabilitation at the level of preservice
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training, continuing education, and in-service train-
ing must focus on bringing larger numbers of minori-
ties into the profession in order to provide appro-
priate practitioner knowledge, role models, and suffi-
cient manpower to address the clearly changing de-
mography of vocational rehabilitation.
‘‘(b) OUTREACH TO MINORITIES.—
‘‘(1) IN
GENERAL.—For each fiscal year, the
Commissioner and the Director of the National Insti-
tute on Disability and Rehabilitation Research (re-
ferred to in this subsection as the ‘Director’) shall re-
serve 1 percent of the funds appropriated for the fiscal
year for programs authorized under titles II, III, VI,
and VII to carry out this subsection. The Commis-
sioner and the Director shall use the reserved funds
to carry out 1 or more of the activities described in
paragraph (2) through a grant, contract, or coopera-
tive agreement.
‘‘(2) ACTIVITIES.—The activities carried out by
the Commissioner and the Director shall include 1 or
more of the following:
‘‘(A) Making awards to minority entities
and Indian tribes to carry out activities under
the programs authorized under titles II, III, VI,
and VII.
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‘‘(B) Making awards to minority entities
and Indian tribes to conduct research, training,
technical assistance, or a related activity, to im-
prove services provided under this Act, especially
services provided to individuals from minority
backgrounds.
‘‘(C) Making awards to entities described in
paragraph (3) to provide outreach and technical
assistance to minority entities and Indian tribes
to promote their participation in activities fund-
ed under this Act, including assistance to en-
hance 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 orga-
nization, such as an institution of higher education
or an Indian tribe.
‘‘(4) REPORT.—In each fiscal year, the Commis-
sioner 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 col-
lege or university’ means a part B institution,
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as defined in section 322(2) of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1061(2)).
‘‘(B) MINORITY ENTITY.—The term ‘minor-
ity entity’ means an entity that is a historically
Black college or university, a Hispanic-serving
institution of higher education, an American In-
dian tribal college or university, or another in-
stitution of higher education whose minority stu-
dent enrollment is at least 50 percent.
‘‘(c) DEMONSTRATION.—In awarding grants, or enter-
ing into contracts or cooperative agreements under titles I,
II, III, VI, and VII, and section 509, the Commissioner and
the Director, in appropriate cases, shall require applicants
to demonstrate how the applicants will address, in whole
or in part, the needs of individuals with disabilities from
minority backgrounds.’’.
SEC. 604. VOCATIONAL REHABILITATION SERVICES.
Title I of the Rehabilitation Act of 1973 (29 U.S.C.
720 et seq.) is amended to read as follows:
‘‘TITLE I—VOCATIONAL
REHABILITATION SERVICES
‘‘PART A—GENERAL PROVISIONS
‘‘SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF
APPROPRIATIONS.
‘‘(a) FINDINGS; PURPOSE; POLICY.—
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‘‘(1) FINDINGS.—Congress finds that—
‘‘(A) work—
‘‘(i) is a valued activity, both for indi-
viduals and society; and
‘‘(ii) fulfills the need of an individual
to be productive, promotes independence, en-
hances self-esteem, and allows for participa-
tion in the mainstream of life in the United
States;
‘‘(B) as a group, individuals with disabil-
ities experience staggering levels of unemploy-
ment and poverty;
‘‘(C) individuals with disabilities, including
individuals with the most significant disabilities,
have demonstrated their ability to achieve gain-
ful employment in integrated settings if appro-
priate services and supports are provided;
‘‘(D) reasons for significant numbers of in-
dividuals with disabilities not working, or work-
ing at levels not commensurate with their abili-
ties and capabilities, include—
‘‘(i) discrimination;
‘‘(ii) lack of accessible and available
transportation;
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‘‘(iii) fear of losing health coverage
under the medicare and medicaid programs
carried out under titles XVIII and XIX of
the Social Security Act (42 U.S.C. 1395 et
seq. and 1396 et seq.) or fear of losing pri-
vate health insurance; and
‘‘(iv) lack of education, training, and
supports to meet job qualification standards
necessary to secure, retain, regain, or ad-
vance in employment;
‘‘(E) enforcement of title V and of the Amer-
icans with Disabilities Act of 1990 (42 U.S.C.
12101 et seq.) holds the promise of ending dis-
crimination for individuals with disabilities;
‘‘(F) the provision of workforce investment
activities and vocational rehabilitation services
can enable individuals with disabilities, includ-
ing individuals with the most significant disabil-
ities, to pursue meaningful careers by securing
gainful employment commensurate with their
abilities and capabilities; and
‘‘(G) linkages between the vocational reha-
bilitation programs established under this title
and other components of the statewide workforce
investment system are critical to ensure effective
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and meaningful participation by individuals
with disabilities in workforce investment activi-
ties.
‘‘(2) PURPOSE.—The purpose of this title is to
assist States in operating statewide comprehensive,
coordinated, effective, efficient, and accountable pro-
grams of vocational rehabilitation, each of which is—
‘‘(A) an integral part of a statewide work-
force investment system; and
‘‘(B) designed to assess, plan, develop, and
provide vocational rehabilitation services for in-
dividuals with disabilities, consistent with their
strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice, so
that such individuals may prepare for and en-
gage 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, includ-
ing individuals with the most significant disabil-
ities, are generally presumed to be capable of en-
gaging in gainful employment and the provision
of individualized vocational rehabilitation serv-
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ices can improve their ability to become gain-
fully employed.
‘‘(B) Individuals with disabilities must be
provided the opportunities to obtain gainful em-
ployment in integrated settings.
‘‘(C) Individuals who are applicants for
such programs or eligible to participate in such
programs must be active and full partners, in
collaboration with qualified vocational rehabili-
tation professionals, in the vocational rehabilita-
tion process, making meaningful and informed
choices—
‘‘(i) during assessments for determin-
ing eligibility and vocational rehabilitation
needs; and
‘‘(ii) in the selection of employment
outcomes for the individuals, services needed
to achieve the outcomes, entities providing
such services, and the methods used to se-
cure such services.
‘‘(D) Families and other natural supports
can play important roles in the success of a vo-
cational rehabilitation program, if the individ-
ual with a disability involved requests, desires,
or needs such supports.
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‘‘(E) Vocational rehabilitation counselors
that are trained and prepared in accordance
with State policies and procedures as described
in section 101(a)(7)(A)(iii) (referred to individ-
ually in this title as a ‘qualified vocational reha-
bilitation counselor’), other qualified rehabilita-
tion personnel, and other qualified personnel fa-
cilitate the accomplishment of the employment
outcomes and objectives of an individual.
‘‘(F) Individuals with disabilities and the
individuals’ representatives are full partners in
a vocational rehabilitation program and must be
involved on a regular basis and in a meaningful
manner with respect to policy development and
implementation.
‘‘(G) Accountability measures must facili-
tate the accomplishment of the goals and objec-
tives of the program, including providing voca-
tional rehabilitation services to, among others,
individuals with the most significant disabilities.
‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—For the purpose of making
grants to States under part B to assist States in
meeting the costs of vocational rehabilitation services
provided in accordance with State plans under sec-
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tion 101, there are authorized to be appropriated such
sums as may be necessary for fiscal years 1998
through 2004, except that the amount to be appro-
priated for a fiscal year shall not be less than the
amount of the appropriation under this paragraph
for the immediately preceding fiscal year, increased
by the percentage change in the Consumer Price Index
determined under subsection (c) for the immediately
preceding fiscal year.
‘‘(2) REFERENCE.—The reference in paragraph
(1) to grants to States under part B shall not be con-
sidered to refer to grants under section 112.
‘‘(c) CONSUMER PRICE INDEX.—
‘‘(1) PERCENTAGE CHANGE.—No later than No-
vember 15 of each fiscal year (beginning with fiscal
year 1979), the Secretary of Labor shall publish in
the Federal Register the percentage change in the
Consumer Price Index published for October of the
preceding fiscal year and October of the fiscal year in
which such publication is made.
‘‘(2) APPLICATION.—
‘‘(A) INCREASE.—If in any fiscal year the
percentage change published under paragraph
(1) indicates an increase in the Consumer Price
Index, then the amount to be appropriated under
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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) in-
creased 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 in-
crease 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—
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‘‘(i) of the authorization of appropria-
tions 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 author-
ization or duration is automatically extended for
1 additional year for the program authorized by
this title.
‘‘(B) CALCULATION.—The amount author-
ized to be appropriated for the additional fiscal
year described in subparagraph (A) shall be an
amount equal to the amount appropriated for
such program for fiscal year 2004, increased by
the percentage change in the Consumer Price
Index determined under subsection (c) for the
immediately preceding fiscal year, if the percent-
age change indicates an increase.
‘‘(2) CONSTRUCTION.—
‘‘(A) PASSAGE OF LEGISLATION.—For the
purposes of paragraph (1)(A), Congress shall not
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be deemed to have passed legislation unless such
legislation becomes law.
‘‘(B) ACTS OR DETERMINATIONS OF COM-
MISSIONER.—In any case where the Commis-
sioner is required under an applicable statute to
carry out certain acts or make certain deter-
minations which are necessary for the continu-
ation 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 fis-
cal year in which the extension described in that
part of paragraph (1) that follows clause (ii) of
paragraph (1)(A) is in effect.
‘‘SEC. 101. STATE PLANS.
‘‘(a) PLAN REQUIREMENTS.—
‘‘(1) IN GENERAL.—
‘‘(A) SUBMISSION.—To be eligible to par-
ticipate in programs under this title, a State
shall submit to the Commissioner a State plan
for vocational rehabilitation services that meets
the requirements of this section, on the same date
that the State submits a State plan under sec-
tion 304 of the Workforce Investment Partner-
ship Act of 1998.
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‘‘(A) DESIGNATED
STATE
AGENCY.—The
State plan shall designate a State agency as the
sole State agency to administer the plan, or to
supervise the administration of the plan by a
local agency, except that—
‘‘(i) where, under State law, the State
agency for individuals who are blind or an-
other agency that provides assistance or
services to adults who are blind is author-
ized to provide vocational rehabilitation
services to individuals who are blind, that
agency may be designated as the sole State
agency to administer the part of the plan
under which vocational rehabilitation serv-
ices 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 adminis-
trative responsibility with another agency of
the State or with a local agency in order to
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permit the agencies to carry out a joint pro-
gram to provide services to individuals with
disabilities, and may waive compliance,
with respect to vocational rehabilitation
services furnished under the joint program,
with the requirement of paragraph (4) that
the plan be in effect in all political subdivi-
sions of the State; and
‘‘(iii) in the case of American Samoa,
the appropriate State agency shall be the
Governor of American Samoa.
‘‘(B) DESIGNATED STATE UNIT.—The State
agency designated under subparagraph (A) shall
be—
‘‘(i) a State agency primarily con-
cerned with vocational rehabilitation, or vo-
cational and other rehabilitation, of indi-
viduals with disabilities; or
‘‘(ii) if not such an agency, the State
agency (or each State agency if 2 are so
designated) shall include a vocational reha-
bilitation bureau, division, or other organi-
zational unit that—
‘‘(I) is primarily concerned with
vocational rehabilitation, or vocational
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and other rehabilitation, of individuals
with disabilities, and is responsible for
the vocational rehabilitation program
of the designated State agency;
‘‘(II) has a full-time director;
‘‘(III) has a staff employed on the
rehabilitation work of the organiza-
tional unit all or substantially all of
whom are employed full time on such
work; and
‘‘(IV) is located at an organiza-
tional level and has an organizational
status within the designated State
agency comparable to that of other
major organizational units of the des-
ignated State agency.
‘‘(C) RESPONSIBILITY
FOR
SERVICES
FOR
THE BLIND.—If the State has designated only 1
State agency pursuant to subparagraph (A), the
State may assign responsibility for the part of
the plan under which vocational rehabilitation
services are provided for individuals who are
blind to an organizational unit of the designated
State agency and assign responsibility for the
rest of the plan to another organizational unit of
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the designated State agency, with the provisions
of subparagraph (B) applying separately to each
of the designated State units.
‘‘(3) NON-FEDERAL
SHARE.—The State plan
shall provide for financial participation by the State,
or if the State so elects, by the State and local agen-
cies, to provide the amount of the non-Federal share
of the cost of carrying out part B.
‘‘(4) STATEWIDENESS.—The State plan shall
provide that the plan shall be in effect in all political
subdivisions of the State, except that in the case of
any activity that, in the judgment of the Commis-
sioner, is likely to assist in promoting the vocational
rehabilitation of substantially larger numbers of indi-
viduals with disabilities or groups of individuals with
disabilities, the Commissioner may waive compliance
with the requirement that the plan be in effect in all
political subdivisions of the State to the extent and
for such period as may be provided in accordance
with regulations prescribed by the Commissioner. The
Commissioner may waive compliance with the re-
quirement only if the non-Federal share of the cost of
the vocational rehabilitation services is provided from
funds made available by a local agency (including, to
the extent permitted by such regulations, funds con-
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tributed to such agency by a private agency, organi-
zation, or individual).
‘‘(5) ORDER OF SELECTION FOR VOCATIONAL RE-
HABILITATION
SERVICES.—In the event that voca-
tional 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 select-
ing eligible individuals to be provided vocational
rehabilitation services;
‘‘(B) provide the justification for the order
of selection;
‘‘(C) include an assurance that, in accord-
ance with criteria established by the State for the
order of selection, individuals with the most sig-
nificant 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 in-
formation and referral system implemented
under paragraph (20).
‘‘(6) METHODS FOR ADMINISTRATION.—
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‘‘(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 in-
dividuals with disabilities covered under, and on
the same terms and conditions as set forth in,
section 503.
‘‘(C) PERSONNEL
AND
PROGRAM
STAND-
ARDS
FOR
COMMUNITY
REHABILITATION
PRO-
GRAMS.—The State plan shall provide that the
designated State unit shall establish, maintain,
and implement minimum standards for commu-
nity rehabilitation programs providing services
to individuals under this title, including—
‘‘(i) standards—
‘‘(I) governing community reha-
bilitation programs and qualified per-
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sonnel utilized for the provision of vo-
cational rehabilitation services through
such programs; and
‘‘(II) providing, to the extent that
providers of vocational rehabilitation
services utilize personnel who do not
meet the highest requirements in the
State applicable to a particular profes-
sion or discipline, that the providers
shall take steps to ensure the retraining
or hiring of personnel so that such per-
sonnel meet appropriate professional
standards in the State; and
‘‘(ii) minimum standards to ensure the
availability of personnel, to the maximum
extent feasible, trained to communicate in
the native language or mode of communica-
tion of an individual receiving services
through such programs.
‘‘(D) FACILITIES.—The State plan shall
provide that facilities used in connection with
the delivery of services assisted under the State
plan shall comply with the Act entitled ‘An Act
to insure that certain buildings financed with
Federal funds are so designed and constructed as
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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 Dis-
abilities Act of 1990.
‘‘(7) COMPREHENSIVE
SYSTEM
OF
PERSONNEL
DEVELOPMENT.—The State plan shall include—
‘‘(A) a description, consistent with the pur-
poses of this Act, of a comprehensive system of
personnel development for personnel employed by
the designated State unit and involved in carry-
ing out this title, which, at a minimum, shall
consist of—
‘‘(i) a description of the procedures
and activities the designated State agency
will implement and undertake to address
the current and projected needs for person-
nel, and training needs of such personnel,
in the designated State unit to ensure that
the personnel are adequately trained and
prepared;
‘‘(ii) a plan to coordinate and facili-
tate efforts between the designated State
unit and institutions of higher education
and professional associations to recruit, pre-
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pare, and retain qualified personnel, in-
cluding personnel from culturally or lin-
guistically diverse backgrounds, and person-
nel that include individuals with disabil-
ities;
‘‘(iii) a description of policies and pro-
cedures on the establishment and mainte-
nance of reasonable standards to ensure that
personnel, 
including 
professionals 
and
paraprofessionals, are adequately trained
and prepared, including—
‘‘(I) standards that are consistent
with any national or State approved
or recognized certification, licensing,
registration, or other comparable re-
quirements that apply to the area in
which such personnel are providing vo-
cational rehabilitation services; and
‘‘(II) to the extent that such
standards are not based on the highest
requirements in the State applicable to
a particular profession or discipline,
the steps the State will take to ensure
the retraining or hiring of personnel
within the designated State unit so
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that such personnel meet appropriate
professional standards in the State;
‘‘(iv) a description of a system for
evaluating the performance of vocational re-
habilitation counselors, coordinators, and
other personnel used in the State, including
a description of how the system facilitates
the accomplishment of the purpose and pol-
icy of this title, including the policy of serv-
ing individuals with the most significant
disabilities;
‘‘(v) a description of standards to en-
sure the availability of personnel within the
designated State unit who are, to the maxi-
mum extent feasible, trained to commu-
nicate in the native language or mode of
communication of an applicant or eligible
individual; and
‘‘(vi) a detailed description, including
a budget, of how the funds reserved under
subparagraph (B) will be expended to carry
out the comprehensive system for personnel
development, including the provision of in-
service training for personnel of the des-
ignated State unit;
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‘‘(B) assurances that—
‘‘(i) at a minimum, the State will re-
serve from the allotment made to the State
under section 110 an amount to carry out
the comprehensive system of personnel devel-
opment, including the provision of in-serv-
ice training for personnel of the designated
State unit;
‘‘(ii) for fiscal year 1999, the amount
reserved will be equal to the amount of the
funds the State received for fiscal year 1998
to provide in-service training under section
302, or for any State that did not receive
those funds for fiscal year 1998, an amount
determined by the Commissioner; and
‘‘(iii) for each subsequent year, the
amount reserved under this subparagraph
will be equal to the amount reserved under
this subparagraph for the previous fiscal
year, increased by the percentage change in
the Consumer Price Index published under
section 100(c) in such previous fiscal year,
if the percentage change indicates an in-
crease; and
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‘‘(C) an assurance that the standards adopt-
ed by a State in accordance with subparagraph
(A)(iii) shall not permit discrimination on the
basis of disability with regard to training and
hiring.
‘‘(8) COMPARABLE SERVICES AND BENEFITS.—
‘‘(A) DETERMINATION OF AVAILABILITY.—
‘‘(i) IN
GENERAL.—The State plan
shall include an assurance that, prior to
providing any vocational rehabilitation
service to an eligible individual, except
those services specified in paragraph (5)(D)
and in paragraphs (1) through (4) and (14)
of section 103(a), the designated State unit
will determine whether comparable services
and benefits are available under any other
program (other than a program carried out
under this title) unless such a determina-
tion would interrupt or delay—
‘‘(I) the progress of the individual
toward achieving the employment out-
come identified in the individualized
rehabilitation employment plan of the
individual in accordance with section
102(b); or
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‘‘(II) the provision of such service
to any individual at extreme medical
risk.
‘‘(ii) AWARDS
AND
SCHOLARSHIPS.—
For purposes of clause (i), comparable bene-
fits 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 or the designee of the Gov-
ernor will ensure that an interagency agreement
or other mechanism for interagency coordination
takes effect between any appropriate public en-
tity, including a component of the statewide
workforce investment system, and the designated
State unit, in order to ensure the provision of
vocational rehabilitation services described in
subparagraph (A) (other than those services spec-
ified in paragraph (5)(D), and in paragraphs
(1) through (4) and (14) of section 103(a)), that
are included in the individualized rehabilitation
employment plan of an eligible individual, in-
cluding the provision of such vocational rehabili-
tation services during the pendency of any dis-
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pute described in clause (iii). Such agreement or
mechanism shall include the following:
‘‘(i) AGENCY FINANCIAL RESPONSIBIL-
ITY.—An identification of, or a description
of a method for defining, the financial re-
sponsibility of such public entity for provid-
ing such services, and a provision stating
that the financial responsibility of such
public entity for providing such services, in-
cluding the financial responsibility of the
State agency responsible for administering
the medicaid program under title XIX of
the Social Security Act (42 U.S.C. 1396 et
seq.), other public agencies, and public in-
stitutions of higher education, shall precede
the financial responsibility of the designated
State unit especially with regard to the pro-
vision of auxiliary aids and services to the
maximum extent allowed by law.
‘‘(ii) CONDITIONS, TERMS, AND PROCE-
DURES OF REIMBURSEMENT.—Information
specifying the conditions, terms, and proce-
dures under which a designated State unit
shall pursue and obtain reimbursement by
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other public agencies for providing such
services.
‘‘(iii) INTERAGENCY DISPUTES.—Infor-
mation specifying procedures for resolving
interagency disputes under the agreement or
other 
mechanism 
(including 
procedures
under which the designated State unit may
initiate proceedings to secure reimburse-
ment from other agencies or otherwise im-
plement the provisions of the agreement or
mechanism).
‘‘(iv) 
COORDINATION
OF
SERVICES
PROCEDURES.—Information specifying poli-
cies and procedures for agencies to deter-
mine and identify the interagency coordina-
tion responsibilities of each agency to pro-
mote the coordination and timely delivery
of vocational rehabilitation services (except
those services specified in paragraph (5)(D)
and in paragraphs (1) through (4) and (14)
of section 103(a)).
‘‘(C) RESPONSIBILITIES OF OTHER AGEN-
CIES.—
‘‘(i) RESPONSIBILITIES UNDER OTHER
LAW.—Notwithstanding subparagraph (B),
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if any public agency other than a des-
ignated State unit is obligated under Fed-
eral 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 rehabilita-
tion services (other than those specified in
paragraph (5)(D) and in paragraphs (1)
through (4) and (14) of section 103(a)),
such public agency shall fulfill that obliga-
tion or responsibility, either directly or by
contract or other arrangement.
‘‘(ii) REIMBURSEMENT.—In a case in
which a public agency other than the des-
ignated State unit fails to fulfill the finan-
cial responsibility of the agency described in
this paragraph to provide services described
in clause (i), the designated State unit may
claim reimbursement from such public
agency for such services. Such public agency
shall reimburse the designated State unit
pursuant to the terms of the interagency
agreement or other mechanism in effect
under this paragraph according to the pro-
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cedures established pursuant to subpara-
graph (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 agency officials that clearly iden-
tifies the responsibilities of each agency re-
lating to the provision of services; or
‘‘(iii) another appropriate method, as
determined by the designated State unit.
‘‘(9) INDIVIDUALIZED REHABILITATION EMPLOY-
MENT PLAN.—
‘‘(A) DEVELOPMENT
AND
IMPLEMENTA-
TION.—The State plan shall include an assur-
ance that an individualized rehabilitation em-
ployment plan meeting the requirements of sec-
tion 102(b) will be developed and implemented
in a timely manner for an individual subsequent
to the determination of the eligibility of the indi-
vidual for services under this title, except that in
a State operating under an order of selection de-
scribed in paragraph (5), the plan will be devel-
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oped and implemented only for individuals meet-
ing the order of selection criteria of the State.
‘‘(B) PROVISION OF SERVICES.—The State
plan shall include an assurance that such serv-
ices will be provided in accordance with the pro-
visions of the individualized rehabilitation em-
ployment plan.
‘‘(10) REPORTING REQUIREMENTS.—
‘‘(A) IN GENERAL.—The State plan shall
include an assurance that the designated State
agency will submit reports in the form and level
of detail and at the time required by the Com-
missioner regarding applicants for, and eligible
individuals receiving, services under this title.
‘‘(B) ANNUAL
REPORTING.—In specifying
the information to be submitted in the reports,
the Commissioner shall require annual reporting
on the eligible individuals receiving the services,
on those specific data elements described in sec-
tion 321(d)(2) of the Workforce Investment Part-
nership Act of 1998 that are determined by the
Secretary to be relevant in assessing the perform-
ance of designated State units in carrying out
the vocational rehabilitation program established
under this title.
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‘‘(C) ADDITIONAL DATA.—In specifying the
information required to be submitted in the re-
ports, the Commissioner shall require additional
data with regard to applicants and eligible indi-
viduals related to—
‘‘(i) the number of applicants and the
number of individuals determined to be eli-
gible or ineligible for the program carried
out under this title, including—
‘‘(I) the number of individuals de-
termined to be ineligible because they
did not require vocational rehabilita-
tion services, as provided in section
102(a); and
‘‘(II) the number of individuals
determined, on the basis of clear and
convincing evidence, to be too severely
disabled to benefit in terms of an em-
ployment outcome from vocational re-
habilitation services;
‘‘(ii) the number of individuals who re-
ceived vocational rehabilitation services
through the program, including—
‘‘(I) the number who received
services under paragraph (5)(D), but
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not assistance under an individualized
rehabilitation employment plan; and
‘‘(II) the number who received as-
sistance under an individualized reha-
bilitation employment plan consistent
with section 102(b);
‘‘(iii) the number of individuals receiv-
ing public assistance and the amount of the
public assistance on the date of application
and on the last date of participation in the
program carried out under this title;
‘‘(iv) the number of individuals with
disabilities who ended their participation
in the program and the number who
achieved employment outcomes after receiv-
ing vocational rehabilitation services; and
‘‘(v) the number of individuals who
ended their participation in the program
and who were employed 6 months and 12
months after securing or regaining employ-
ment, or, in the case of individuals whose
employment outcome was to retain or ad-
vance in employment, who were employed 6
months and 12 months after achieving their
employment outcome, including—
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‘‘(I) the number of such individ-
uals who earned the minimum wage
rate specified in section 6(a)(1) of the
Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)) or another wage level
set by the Commissioner, during such
employment;
‘‘(II) the number of such individ-
uals who received employment benefits
from an employer during such employ-
ment; and
‘‘(III) the number of such individ-
uals whose public assistance was ter-
minated or reduced after such partici-
pation.
‘‘(D) COSTS AND RESULTS.—The Commis-
sioner shall also require that the designated
State agency include in the reports information
on—
‘‘(i) the costs under this title of con-
ducting administration, providing assess-
ment services, counseling and guidance, and
other direct services provided by designated
State agency staff, providing services pur-
chased under individualized rehabilitation
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employment plans, supporting small busi-
ness enterprises, establishing, developing,
and improving community rehabilitation
programs, and providing other services to
groups; and
‘‘(ii) the results of annual evaluation
by the State of program effectiveness under
paragraph (15)(E).
‘‘(E) 
ADDITIONAL
INFORMATION.—The
Commissioner shall require that each designated
State unit include in the reports additional in-
formation related to the applicants and eligible
individuals, obtained either through a complete
count or sampling, including—
‘‘(i) information on—
‘‘(I) age, gender, race, ethnicity,
education, type of impairment, severity
of disability, and whether the individ-
uals are students described in clause
(i) or (ii)(II) of paragraph (11)(D);
‘‘(II) dates of application, deter-
mination of eligibility or ineligibility,
initiation of the individualized reha-
bilitation employment plan, and ter-
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mination of participation in the pro-
gram;
‘‘(III) earnings at the time of ap-
plication for the program and termi-
nation of participation in the pro-
gram;
‘‘(IV) work status and occupation;
‘‘(V) types of services, including
assistive technology services and assist-
ive technology devices, provided under
the program;
‘‘(VI) types of public or private
programs or agencies that furnished
services under the program; and
‘‘(VII) the reasons for individuals
terminating participation in the pro-
gram without achieving an employ-
ment outcome; and
‘‘(ii) information necessary to deter-
mine the success of the State in meeting—
‘‘(I) the State performance meas-
ures established under section 321(b) of
the Workforce Investment Partnership
Act of 1998 to the extent the measures
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are applicable to individuals with dis-
abilities; and
‘‘(II) the standards and indicators
established pursuant to section 106.
‘‘(F) COMPLETENESS
AND
CONFIDENTIAL-
ITY.—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 eli-
gible individuals, in a manner permitting the
greatest possible cross-classification of data and
that the identity of each individual for which in-
formation is supplied under this paragraph will
be kept confidential.
‘‘(11) COOPERATION, COLLABORATION, AND CO-
ORDINATION.—
‘‘(A) 
COOPERATIVE
AGREEMENTS
WITH
OTHER COMPONENTS OF STATEWIDE WORKFORCE
INVESTMENT
SYSTEMS.—The State plan shall
provide that the designated State unit or des-
ignated State agency shall enter into a coopera-
tive agreement with other entities that are com-
ponents of the statewide workforce investment
system of the State, regarding the system, which
agreement may provide for—
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‘‘(i) provision of intercomponent staff
training and technical assistance with re-
gard to—
‘‘(I) the availability and benefits
of, and information on eligibility
standards for, vocational rehabilitation
services; and
‘‘(II) the promotion of equal, effec-
tive, and meaningful participation by
individuals with disabilities in work-
force investment activities in the State
through the promotion of program ac-
cessibility, the use of nondiscrim-
inatory policies and procedures, and
the provision of reasonable accom-
modations, auxiliary aids and services,
and rehabilitation technology, for indi-
viduals with disabilities;
‘‘(ii) use of information and financial
management systems that link all compo-
nents of the statewide workforce investment
system, that link the components to other
electronic networks, including nonvisual
electronic networks, and that relate to such
subjects as labor market information, and
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information on job vacancies, career plan-
ning, and workforce investment activities;
‘‘(iii) use of customer service features
such as common intake and referral proce-
dures, customer databases, resource infor-
mation, and human services hotlines;
‘‘(iv) establishment of cooperative ef-
forts with employers to—
‘‘(I) facilitate job placement; and
‘‘(II) carry out any other activi-
ties that the designated State unit and
the employers determine to be appro-
priate;
‘‘(v) identification of staff roles, re-
sponsibilities, and available resources, and
specification of the financial responsibility
of each component of the statewide work-
force investment system with regard to pay-
ing for necessary services (consistent with
State law and Federal requirements); and
‘‘(vi) specification of procedures for re-
solving disputes among such components.
‘‘(B) 
REPLICATION
OF
COOPERATIVE
AGREEMENTS.—The State plan shall provide for
the replication of such cooperative agreements at
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the local level between individual offices of the
designated State unit and local entities carrying
out activities through the statewide workforce in-
vestment system.
‘‘(C) INTERAGENCY
COOPERATION
WITH
OTHER AGENCIES.—The State plan shall include
descriptions of interagency cooperation with, and
utilization of the services and facilities of, the
Federal, State, and local agencies and programs
that are not carrying out activities through the
statewide workforce investment system.
‘‘(D) COORDINATION WITH EDUCATION OF-
FICIALS.—The State plan shall contain plans,
policies, and procedures for coordination between
the designated State agency and education offi-
cials that are designed to facilitate the transition
of students who are individuals with disabilities
described in section 7(20)(B) from the receipt of
educational services in school to the receipt of vo-
cational 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 assist-
ance to assist educational agencies in plan-
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ning for the transition of students who are
individuals with disabilities described in
section 7(20)(B) from school to post-school
activities, including vocational rehabilita-
tion services;
‘‘(ii)(I) transition planning by person-
nel of the designated State agency and edu-
cational agency personnel for students with
disabilities described in clause (i) that fa-
cilitates the development and completion of
their individualized education programs
under section 614(d) of the Individuals with
Disabilities Education Act (as added by sec-
tion 101 of Public Law 105–17); and
‘‘(II) transition planning and services
for students who are eligible to receive serv-
ices under this title and who will be exiting
school in the school year in which the plan-
ning and services are provided;
‘‘(iii) the roles and responsibilities, in-
cluding financial responsibilities, of each
agency, including provisions for determin-
ing State lead agencies and qualified per-
sonnel responsible for the transition services
described in clause (ii)(II); and
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‘‘(iv) procedures for outreach to and
identification of students with disabilities
described in clause (ii)(II) who need the
transition services.
‘‘(E) 
COORDINATION
WITH
STATEWIDE
INDEPENDENT LIVING COUNCILS AND INDEPEND-
ENT LIVING CENTERS.—The State plan shall in-
clude an assurance that the designated State
unit, the Statewide Independent Living Council
established under section 705, and the independ-
ent living centers described in part C of title VII
within the State have developed working rela-
tionships and coordinate their activities.
‘‘(F) COOPERATIVE AGREEMENT WITH RE-
CIPIENTS OF GRANTS FOR SERVICES TO AMER-
ICAN
INDIANS.—In applicable cases, the State
plan shall include an assurance that the State
has entered into a formal cooperative agreement
with each grant recipient in the State that re-
ceives funds under part C. The agreement shall
describe strategies for collaboration and coordi-
nation in providing vocational rehabilitation
services to American Indians who are individ-
uals with disabilities, including—
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‘‘(i) strategies for interagency referral
and information sharing that will assist in
eligibility determinations and the develop-
ment of individualized rehabilitation em-
ployment plans;
‘‘(ii) procedures for ensuring that
American Indians who are individuals with
disabilities and are living near a reserva-
tion or tribal service area are provided vo-
cational 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 in-
dividuals with disabilities.
‘‘(12) RESIDENCY.—The State plan shall include
an assurance that the State will not impose a resi-
dence requirement that excludes from services pro-
vided under the plan any individual who is present
in the State.
‘‘(13) SERVICES
TO
AMERICAN
INDIANS.—The
State plan shall include an assurance that, except as
otherwise provided in part C, the designated State
agency will provide vocational rehabilitation services
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HR 1385 EAS
to American Indians who are individuals with dis-
abilities residing in the State to the same extent as
the designated State agency provides such services to
other significant populations of individuals with dis-
abilities residing in the State.
‘‘(14) ANNUAL REVIEW OF INDIVIDUALS IN EX-
TENDED
EMPLOYMENT
OR
OTHER
EMPLOYMENT
UNDER
SPECIAL
CERTIFICATE
PROVISIONS
OF
THE
FAIR
LABOR
STANDARDS
ACT
OF
1938.—The State
plan shall provide for—
‘‘(A) an annual review and reevaluation of
the status of each individual with a disability
served under this title who has achieved an em-
ployment outcome either in an extended employ-
ment setting in a community rehabilitation pro-
gram or any other employment under section
14(c) of the Fair Labor Standards Act (29
U.S.C. 214(c)) for 2 years after the achievement
of the outcome (and annually thereafter if re-
quested by the individual or, if appropriate, the
individual’s representative), to determine the in-
terests, priorities, and needs of the individual
with respect to competitive employment or train-
ing for competitive employment;
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‘‘(B) input into the review and reevalua-
tion, and a signed acknowledgment that such re-
view and reevaluation have been conducted, by
the individual with a disability, or, if appro-
priate, the individual’s representative; and
‘‘(C) maximum efforts, including the identi-
fication and provision of vocational rehabilita-
tion services, reasonable accommodations, and
other necessary support services, to assist the in-
dividuals described in subparagraph (A) in en-
gaging in competitive employment.
‘‘(15) ANNUAL STATE GOALS AND REPORTS OF
PROGRESS.—
‘‘(A) ASSESSMENTS AND ESTIMATES.—The
State plan shall—
‘‘(i) include the results of a comprehen-
sive, statewide assessment, jointly conducted
by the designated State unit and the State
Rehabilitation Council (if the State has
such a Council) every 3 years, describing
the rehabilitation needs of individuals with
disabilities residing within the State, par-
ticularly the vocational rehabilitation serv-
ices needs of—
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‘‘(I) individuals with the most
significant disabilities, including their
need for supported employment serv-
ices;
‘‘(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 disabil-
ities served through other components
of the statewide workforce investment
system (other than the vocational reha-
bilitation program), as identified by
such individuals and personnel assist-
ing such individuals through the com-
ponents;
‘‘(ii) include an assessment of the need
to establish, develop, or improve community
rehabilitation programs within the State;
and
‘‘(iii) provide that the State shall sub-
mit to the Commissioner a report contain-
ing information regarding updates to the
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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 Commis-
sioner that includes, State estimates of—
‘‘(i) the number of individuals in the
State who are eligible for services under this
title;
‘‘(ii) the number of such individuals
who will receive services provided with
funds provided under part B and under
part C of title VI, including, if the des-
ignated State agency uses an order of selec-
tion in accordance with paragraph (5), esti-
mates 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.—
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‘‘(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 devel-
oped, agreed to, and reviewed annually by
the designated State unit and the State Re-
habilitation Council, if the State has such a
Council. Any revisions to the goals and pri-
orities shall be jointly agreed to by the des-
ignated State unit and the State Rehabili-
tation Council, if the State has such a
Council. The State plan shall provide that
the State shall submit to the Commissioner
a report containing information regarding
revisions in the goals and priorities, for any
year in which the State revises the goals
and priorities.
‘‘(ii) BASIS.—The State goals and pri-
orities shall be based on an analysis of—
‘‘(I) the comprehensive assessment
described in subparagraph (A), includ-
ing any updates to the assessment;
‘‘(II) the performance of the State
on the standards and indicators estab-
lished under section 106; and
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‘‘(III) other available information
on the operation and the effectiveness
of the vocational rehabilitation pro-
gram carried out in the State, includ-
ing any reports received from the State
Rehabilitation Council, under section
105(c) and the findings and rec-
ommendations from monitoring activi-
ties conducted under section 107.
‘‘(iii) SERVICE AND OUTCOME GOALS
FOR
CATEGORIES
IN
ORDER
OF
SELEC-
TION.—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 as-
sessment conducted under subparagraph (A) and
achieve the goals and priorities identified in sub-
paragraph (C), including—
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‘‘(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 rehabilita-
tion process and how such services and de-
vices 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 disabil-
ities who have been unserved or underserved
by the vocational rehabilitation program;
‘‘(iii) where necessary, the plan of the
State for establishing, developing, or im-
proving 
community 
rehabilitation 
pro-
grams;
‘‘(iv) strategies to improve the perform-
ance of the State with respect to the evalua-
tion standards and performance indicators
established pursuant to section 106; and
‘‘(v) strategies for assisting entities
carrying out other components of the state-
wide workforce investment system (other
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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 evalua-
tion of the effectiveness of the vocational re-
habilitation program, and a joint report by
the designated State unit and the State Re-
habilitation 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 subpara-
graph (C) were achieved;
‘‘(II) a description of strategies
that contributed to achieving the goals;
‘‘(III) to the extent to which the
goals were not achieved, a description
of the factors that impeded that
achievement; and
‘‘(IV) an assessment of the per-
formance of the State on the standards
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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 re-
port that contains the information described
in clause (i).
‘‘(16) 
PUBLIC
COMMENT.—The 
State 
plan
shall—
‘‘(A) provide that the designated State agen-
cy, prior to the adoption of any policies or pro-
cedures governing the provision of vocational re-
habilitation services under the State plan (in-
cluding 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, in-
cluding individuals with disabilities, an oppor-
tunity to comment on the policies or procedures,
and actively consult with the Director of the cli-
ent assistance program carried out under section
112, and, as appropriate, Indian tribes, tribal
organizations, and Native Hawaiian organiza-
tions on the policies or procedures; and
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‘‘(B) provide that the designated State
agency (or each designated State agency if 2
agencies are designated) and any sole agency ad-
ministering the plan in a political subdivision of
the State, shall take into account, in connection
with matters of general policy arising in the ad-
ministration of the plan, the views of—
‘‘(i) individuals and groups of individ-
uals who are recipients of vocational reha-
bilitation services, or in appropriate cases,
the individuals’ representatives;
‘‘(ii) personnel working in programs
that provide vocational rehabilitation serv-
ices to individuals with disabilities;
‘‘(iii) providers of vocational rehabili-
tation services to individuals with disabil-
ities;
‘‘(iv) the director of the client assist-
ance program; and
‘‘(v) the State Rehabilitation Council,
if the State has such a Council.
‘‘(17) PROHIBITION ON USE OF FUNDS FOR CON-
STRUCTION
OF
FACILITIES.—The State plan shall
contain an assurance that the State will not use any
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funds made available under this title for the construc-
tion of facilities.
‘‘(18) INNOVATION
AND
EXPANSION
ACTIVI-
TIES.—The State plan shall—
‘‘(A) include an assurance that the State
will reserve and use a portion of the funds allot-
ted to the State under section 110—
‘‘(i) for the development and imple-
mentation of innovative approaches to ex-
pand and improve the provision of voca-
tional rehabilitation services to individuals
with disabilities under this title, particu-
larly individuals with the most significant
disabilities, consistent with the findings of
the statewide assessment and goals and pri-
orities of the State as described in para-
graph (15); and
‘‘(ii) to support the funding of—
‘‘(I) 
the 
State 
Rehabilitation
Council, if the State has such a Coun-
cil, consistent with the plan prepared
under section 105(d)(1); and
‘‘(II) the Statewide Independent
Living Council, consistent with the
plan prepared under section 705(e)(1);
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(other than the vocational rehabilitation pro-
gram carried out under this title), including
other components of the statewide workforce in-
vestment system in the State.
‘‘(B) SERVICES.—In providing activities
through the system established under subpara-
graph (A), the State may include services con-
sisting of the provision of individualized counsel-
ing and guidance, individualized vocational ex-
ploration, supervised job placement referrals, and
assistance in securing reasonable accommoda-
tions for eligible individuals who do not meet the
order of selection criteria used by the State, to
the extent that such services are not purchased by
the designated State unit.
‘‘(21) STATE
INDEPENDENT
CONSUMER-CON-
TROLLED COMMISSION; STATE REHABILITATION COUN-
CIL.—
‘‘(A) COMMISSION OR COUNCIL.—The State
plan shall provide that either—
‘‘(i) the designated State agency is an
independent commission that—
‘‘(I) is responsible under State
law for operating, or overseeing the op-
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eration of, the vocational rehabilitation
program in the State;
‘‘(II) is consumer-controlled by
persons who—
‘‘(aa) are individuals with
physical or mental impairments
that substantially limit major life
activities; and
‘‘(bb) represent individuals
with a broad range of disabilities,
unless the designated State unit
under the direction of the commis-
sion is the State agency for indi-
viduals who are blind;
‘‘(III) includes family members,
advocates, or other representatives, of
individuals with mental impairments;
and
‘‘(IV) undertakes the functions set
forth in section 105(c)(4); or
‘‘(ii) the State has established a State
Rehabilitation Council that meets the cri-
teria set forth in section 105 and the des-
ignated State unit—
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‘‘(I) in accordance with para-
graph (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, im-
plementation, and revision of State
policies and procedures of general ap-
plicability pertaining to the provision
of vocational rehabilitation services;
‘‘(III) includes in the State plan
and in any revision to the State plan,
a summary of input provided by the
Council, including recommendations
from the annual report of the Council
described in section 105(c)(5), the re-
view and analysis of consumer satis-
faction described in section 105(c)(4),
and other reports prepared by the
Council, and the response of the des-
ignated State unit to such input and
recommendations, 
including 
expla-
nations for rejecting any input or rec-
ommendation; and
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‘‘(IV) transmits to the Council—
‘‘(aa) all plans, reports, and
other information required under
this title to be submitted to the
Secretary;
‘‘(bb) all policies, and infor-
mation on all practices and proce-
dures, of general applicability
provided to or used by rehabilita-
tion personnel in carrying out
this title; and
‘‘(cc) copies of due process
hearing decisions issued under
this title, which shall be transmit-
ted in such a manner as to ensure
that the identity of the partici-
pants in the hearings is kept con-
fidential.
‘‘(B) MORE
THAN
DESIGNATED
STATE
AGENCY.—In the case of a State that, under sec-
tion 101(a)(2), designates a State agency to ad-
minister the part of the State plan under which
vocational rehabilitation services are provided
for individuals who are blind (or to supervise the
administration of such part by a local agency)
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and designates a separate State agency to ad-
minister the rest of the State plan, the State
shall either establish a State Rehabilitation
Council for each of the 2 agencies that does not
meet the requirements in subparagraph (A)(i), or
establish 1 State Rehabilitation Council for both
agencies if neither agency meets the requirements
of subparagraph (A)(i).
‘‘(22) SUPPORTED
EMPLOYMENT
STATE
PLAN
SUPPLEMENT.—The State plan shall include an as-
surance that the State has an acceptable plan for car-
rying out part C of title VI, including the use of
funds under that part to supplement funds made
available under part B of this title to pay for the cost
of services leading to supported employment.
‘‘(23) ELECTRONIC
AND
INFORMATION
TECH-
NOLOGY REGULATIONS.—The State plan shall include
an assurance that the State, and any recipient or
subrecipient of funds made available to the State
under this title—
‘‘(A) will comply with the requirements of
section 508, including the regulations established
under that section; and
‘‘(B) will designate an employee to coordi-
nate efforts to comply with section 508 and will
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adopt grievance procedures that incorporate due
process standards and provide for the prompt
and equitable resolution of complaints concern-
ing such requirements.
‘‘(24) ANNUAL
UPDATES.—The plan shall in-
clude an assurance that the State will submit to the
Commissioner reports containing annual updates of
the information required under paragraph (7) (relat-
ing to a comprehensive system of personnel develop-
ment) and any other updates of the information re-
quired under this section that are requested by the
Commissioner, and annual reports as provided in
paragraphs (15) (relating to assessments, estimates,
goals and priorities, and reports of progress) and (18)
(relating to innovation and expansion), at such time
and in such manner as the Secretary may determine
to be appropriate.
‘‘(b) APPROVAL; DISAPPROVAL OF THE STATE PLAN.—
‘‘(1) APPROVAL.—The Commissioner shall ap-
prove any plan that the Commissioner finds fulfills
the conditions specified in this section, and shall dis-
approve any plan that does not fulfill such condi-
tions.
‘‘(2) DISAPPROVAL.—Prior to disapproval of the
State plan, the Commissioner shall notify the State of
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the intention to disapprove the plan and shall afford
the State reasonable notice and opportunity for a
hearing.
‘‘SEC. 102. ELIGIBILITY AND INDIVIDUALIZED REHABILITA-
TION EMPLOYMENT PLAN.
‘‘(a) ELIGIBILITY.—
‘‘(1) CRITERION FOR ELIGIBILITY.—An individ-
ual is eligible for assistance under this title if the in-
dividual—
‘‘(A) is an individual with a disability
under section 7(20)(A); and
‘‘(B) requires vocational rehabilitation serv-
ices to prepare for, secure, retain, or regain em-
ployment.
‘‘(2) PRESUMPTION OF BENEFIT.—
‘‘(A) DEMONSTRATION.—For purposes of
this section, an individual shall be presumed to
be an individual that can benefit in terms of an
employment outcome from vocational rehabilita-
tion services under section 7(20)(A), unless the
designated State unit involved can demonstrate
by clear and convincing evidence that such indi-
vidual is incapable of benefiting in terms of an
employment outcome from vocational rehabilita-
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tion services due to the severity of the disability
of the individual.
‘‘(B) METHODS.—In making the dem-
onstration required under subparagraph (A), the
designated State unit shall explore the individ-
ual’s abilities, capabilities, and capacity to per-
form in work situations, through the use of trial
work experiences, as described in section 7(2)(D),
with appropriate supports provided through the
designated State unit, except under limited cir-
cumstances when an individual can not take ad-
vantage of such experiences. Such experiences
shall be of sufficient variety and over a sufficient
period of time to determine the eligibility of the
individual or to determine the existence of clear
and convincing evidence that the individual is
incapable of benefiting in terms of an employ-
ment outcome from vocational rehabilitation
services due to the severity of the disability of the
individual.
‘‘(3) PRESUMPTION OF ELIGIBILITY.—For pur-
poses of this section, an individual who has a disabil-
ity or is blind as determined pursuant to title II or
title XVI of the Social Security Act (42 U.S.C. 401
et seq. and 1381 et seq.) shall be—
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‘‘(A) considered to be an individual with a
significant disability under section 7(21)(A);
and
‘‘(B) presumed to be eligible for vocational
rehabilitation services under this title (provided
that the individual intends to achieve an em-
ployment outcome consistent with the unique
strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the
individual) unless the designated State unit in-
volved can demonstrate by clear and convincing
evidence that such individual is incapable of
benefiting in terms of an employment outcome
from vocational rehabilitation services due to the
severity of the disability of the individual in ac-
cordance with paragraph (2).
‘‘(4) USE OF EXISTING INFORMATION.—
‘‘(A) IN GENERAL.—To the maximum ex-
tent appropriate and consistent with the require-
ments of this part, for purposes of determining
the eligibility of an individual for vocational re-
habilitation services under this title and develop-
ing the individualized rehabilitation employment
plan described in subsection (b) for the individ-
ual, the designated State unit shall use informa-
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tion that is existing and current (as of the date
of the determination of eligibility or of the devel-
opment of the individualized rehabilitation em-
ployment plan), including information available
from other programs and providers, particularly
information used by education officials and the
Social Security Administration, information
provided by the individual and the family of the
individual, and information obtained under the
assessment for determining eligibility and voca-
tional rehabilitation needs.
‘‘(B) DETERMINATIONS
BY
OFFICIALS
OF
OTHER AGENCIES.—Determinations made by of-
ficials of other agencies, particularly education
officials described in section 101(a)(11)(D), re-
garding whether an individual satisfies 1 or
more factors relating to whether an individual is
an individual with a disability under section
7(20)(A) or an individual with a significant dis-
ability under section 7(21)(A) shall be used, to
the extent appropriate and consistent with the
requirements of this part, in assisting the des-
ignated State unit in making such determina-
tions.
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‘‘(C) BASIS.—The determination of eligi-
bility for vocational rehabilitation services shall
be based on—
‘‘(i) the review of existing data de-
scribed in section 7(2)(A)(i); and
‘‘(ii) to the extent that such data is un-
available or insufficient for determining eli-
gibility, the provision of assessment activi-
ties described in section 7(2)(A)(ii).
‘‘(5) DETERMINATION OF INELIGIBILITY.—If an
individual who applies for services under this title is
determined, based on the review of existing data and,
to the extent necessary, the assessment activities de-
scribed in section 7(2)(A)(ii), not to be eligible for the
services, or if an eligible individual receiving services
under an individualized rehabilitation employment
plan is determined to be no longer eligible for the
services—
‘‘(A) the ineligibility determination in-
volved shall be made only after providing an op-
portunity for full consultation with the individ-
ual or, as appropriate, the individual’s rep-
resentative;
‘‘(B) the individual or, as appropriate, the
individual’s representative, shall be informed in
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writing (supplemented as necessary by other ap-
propriate modes of communication consistent
with the informed choice of the individual) of the
ineligibility determination, including—
‘‘(i) the reasons for the determination;
and
‘‘(ii) a description of the means by
which the individual may express, and seek
a remedy for, any dissatisfaction with the
determination, including the procedures for
review by an impartial hearing officer
under subsection (c);
‘‘(C) the individual shall be provided with
a description of services available from the client
assistance program under section 112 and infor-
mation on how to contact that program; and
‘‘(D) any ineligibility determination that is
based on a finding that the individual is incapa-
ble of benefiting in terms of an employment out-
come shall be reviewed—
‘‘(i) within 12 months; and
‘‘(ii) annually thereafter, if such a re-
view is requested by the individual or, if
appropriate, by the individual’s representa-
tive.
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‘‘(6) TIMEFRAME FOR MAKING AN ELIGIBILITY
DETERMINATION.—The designated State unit shall de-
termine whether an individual is eligible for voca-
tional rehabilitation services under this title within a
reasonable period of time, not to exceed 60 days, after
the individual has submitted an application for the
services unless—
‘‘(A) 
exceptional 
and 
unforeseen 
cir-
cumstances beyond the control of the designated
State unit preclude making an eligibility deter-
mination within 60 days and the designated
State unit and the individual agree to a specific
extension of time; or
‘‘(B) the designated State unit is exploring
an individual’s abilities, capabilities, and capac-
ity to perform in work situations under para-
graph (2)(B).
‘‘(b) DEVELOPMENT OF AN INDIVIDUALIZED REHA-
BILITATION EMPLOYMENT PLAN.—
‘‘(1) OPTIONS FOR DEVELOPING AN INDIVIDUAL-
IZED REHABILITATION EMPLOYMENT PLAN.—If an in-
dividual is determined to be eligible for vocational re-
habilitation services as described in subsection (a), the
designated State unit shall complete the assessment
for determining eligibility and vocational rehabilita-
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tion needs, as appropriate, and shall provide the eli-
gible individual or the individual’s representative, in
writing and in an appropriate mode of communica-
tion, with information on the individual’s options for
developing an individualized rehabilitation employ-
ment plan, including—
‘‘(A) information on the availability of as-
sistance, to the extent determined to be appro-
priate by the eligible individual, from a quali-
fied vocational rehabilitation counselor in devel-
oping all or part of the individualized rehabili-
tation employment plan for the individual, and
the availability of technical assistance in devel-
oping all or part of the individualized rehabili-
tation employment plan for the individual;
‘‘(B) a description of the full range of com-
ponents that shall be included in an individual-
ized rehabilitation employment plan;
‘‘(C) as appropriate—
‘‘(i) an explanation of agency guide-
lines and criteria associated with financial
commitments concerning an individualized
rehabilitation employment plan;
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‘‘(ii) additional information the eligi-
ble individual requests or the designated
State unit determines to be necessary; and
‘‘(iii) information on the availability
of assistance in completing designated State
agency forms required in developing an in-
dividualized 
rehabilitation 
employment
plan; and
‘‘(D)(i) a description of the rights and rem-
edies available to such an individual including,
if appropriate, recourse to the processes set forth
in subsection (c); and
‘‘(ii) a description of the availability of a
client assistance program established pursuant to
section 112 and information about how to con-
tact the client assistance program.
‘‘(2) MANDATORY PROCEDURES.—
‘‘(A) WRITTEN DOCUMENT.—An individual-
ized rehabilitation employment plan shall be a
written document prepared on forms provided by
the designated State unit.
‘‘(B) INFORMED
CHOICE.—An individual-
ized rehabilitation employment plan shall be de-
veloped and implemented in a manner that af-
fords eligible individuals the opportunity to exer-
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cise informed choice in selecting an employment
outcome, the specific vocational rehabilitation
services to be provided under the plan, the entity
that will provide the vocational rehabilitation
services, and the methods used to procure the
services, consistent with subsection (d).
‘‘(C) SIGNATORIES.—An individualized re-
habilitation employment plan shall be—
‘‘(i) agreed to, and signed by, such eli-
gible individual or, as appropriate, the in-
dividual’s representative; and
‘‘(ii) approved and signed by a quali-
fied vocational rehabilitation counselor em-
ployed by the designated State unit.
‘‘(D) COPY.—A copy of the individualized
rehabilitation employment plan for an eligible
individual shall be provided to the individual or,
as appropriate, to the individual’s representa-
tive, in writing and, if appropriate, in the na-
tive language or mode of communication of the
individual or, as appropriate, of the individual’s
representative.
‘‘(E) REVIEW AND AMENDMENT.—The indi-
vidualized rehabilitation employment plan shall
be—
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‘‘(i) reviewed at least annually by—
‘‘(I) a qualified vocational reha-
bilitation counselor; and
‘‘(II) the eligible individual or, as
appropriate, the individual’s represent-
ative; and
‘‘(ii) amended, as necessary, by the in-
dividual or, as appropriate, the individual’s
representative, in collaboration with a rep-
resentative of the designated State agency or
a qualified vocational rehabilitation coun-
selor employed by the designated State unit,
if there are substantive changes in the em-
ployment outcome, the vocational rehabilita-
tion services to be provided, or the service
providers of the services (which amendments
shall not take effect until agreed to and
signed by the eligible individual or, as ap-
propriate, the individual’s representative,
and by a qualified vocational rehabilitation
counselor employed by the designated State
unit).
‘‘(3) MANDATORY COMPONENTS OF AN INDIVID-
UALIZED REHABILITATION EMPLOYMENT PLAN.—Re-
gardless of the approach selected by an eligible indi-
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vidual to develop an individualized rehabilitation em-
ployment plan, an individualized rehabilitation em-
ployment plan shall, at a minimum, contain manda-
tory components consisting of—
‘‘(A) a description of the specific employ-
ment outcome that is chosen by the eligible indi-
vidual, consistent with the unique strengths, re-
sources, priorities, concerns, abilities, capabili-
ties, interests, and informed choice of the eligible
individual, and, to the maximum extent appro-
priate, results in employment in an integrated
setting;
‘‘(B)(i) a description of the specific voca-
tional rehabilitation services that are—
‘‘(I) needed to achieve the employment
outcome, including, as appropriate, the pro-
vision of assistive technology devices and as-
sistive technology services, and personal as-
sistance services, including training in the
management of such services; and
‘‘(II) provided in the most integrated
setting that is appropriate for the service
involved and is consistent with the informed
choice of the eligible individual; and
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‘‘(ii) timelines for the achievement of the
employment outcome and for the initiation of the
services;
‘‘(C) a description of the entity chosen by
the eligible individual or, as appropriate, the in-
dividual’s representative, that will provide the
vocational rehabilitation services, and the meth-
ods used to procure such services;
‘‘(D) a description of criteria to evaluate
progress toward achievement of the employment
outcome;
‘‘(E) the terms and conditions of the indi-
vidualized rehabilitation employment plan, in-
cluding, as appropriate, information describ-
ing—
‘‘(i) the responsibilities of the des-
ignated State unit;
‘‘(ii) the responsibilities of the eligible
individual, including—
‘‘(I) the responsibilities the eligi-
ble individual will assume in relation
to the employment outcome of the indi-
vidual;
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‘‘(II) if applicable, the participa-
tion of the eligible individual in pay-
ing for the costs of the plan; and
‘‘(III) the responsibility of the eli-
gible individual with regard to apply-
ing for and securing comparable bene-
fits as described in section 101(a)(8);
and
‘‘(iii) the responsibilities of other enti-
ties as the result of arrangements made pur-
suant to comparable services or benefits re-
quirements 
as 
described 
in 
section
101(a)(8);
‘‘(F) for an eligible individual with the
most significant disabilities for whom an em-
ployment outcome in a supported employment
setting has been determined to be appropriate,
information identifying—
‘‘(i) the extended services needed by the
eligible individual; and
‘‘(ii) the source of extended services or,
to the extent that the source of the extended
services cannot be identified at the time of
the development of the individualized reha-
bilitation employment plan, a description of
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the basis for concluding that there is a rea-
sonable expectation that such source will be-
come available; and
‘‘(G) as determined to be necessary, a state-
ment of projected need for post-employment serv-
ices.
‘‘(c) PROCEDURES.—
‘‘(1) IN GENERAL.—Each State shall establish
procedures for mediation of, and procedures for re-
view through an impartial due process hearing of, de-
terminations made by personnel of the designated
State unit that affect the provision of vocational reha-
bilitation services to applicants or eligible individ-
uals.
‘‘(2) NOTIFICATION.—
‘‘(A) RIGHTS AND ASSISTANCE.—The proce-
dures shall provide that an applicant or an eli-
gible individual or, as appropriate, the appli-
cant’s representative or individual’s representa-
tive shall be notified of—
‘‘(i) the right to obtain review of deter-
minations described in paragraph (1) in an
impartial due process hearing under para-
graph (5);
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‘‘(ii) the right to pursue mediation
with respect to the determinations under
paragraph (4); and
‘‘(iii) the availability of assistance
from the client assistance program under
section 112.
‘‘(B) TIMING.—Such notification shall be
provided in writing—
‘‘(i) at the time an individual applies
for vocational rehabilitation services pro-
vided under this title;
‘‘(ii) at the time the individualized re-
habilitation employment plan for the indi-
vidual is developed; and
‘‘(iii) upon reduction, suspension, or
cessation of vocational rehabilitation serv-
ices for the individual.
‘‘(3) EVIDENCE
AND
REPRESENTATION.—The
procedures required under this subsection shall, at a
minimum—
‘‘(A) provide an opportunity for an appli-
cant or an eligible individual, or, as appro-
priate, the applicant’s representative or individ-
ual’s representative, to submit at the mediation
session or hearing evidence and information to
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support the position of the applicant or eligible
individual; and
‘‘(B) include provisions to allow an appli-
cant or an eligible individual to be represented
in the mediation session or hearing by a person
selected by the applicant or eligible individual.
‘‘(4) MEDIATION.—
‘‘(A) PROCEDURES.—Each State shall en-
sure that procedures are established and imple-
mented under this subsection to allow parties de-
scribed in paragraph (1) to disputes involving
any determination described in paragraph (1) to
resolve such disputes through a mediation proc-
ess that, at a minimum, shall be available when-
ever a hearing is requested under this subsection.
‘‘(B) 
REQUIREMENTS.—Such 
procedures
shall ensure that the mediation process—
‘‘(i) is voluntary on the part of the
parties;
‘‘(ii) is not used to deny or delay the
right of an individual to a hearing under
this subsection, or to deny any other right
afforded under this title; and
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‘‘(iii) is conducted by a qualified and
impartial mediator who is trained in effec-
tive mediation techniques.
‘‘(C) LIST OF MEDIATORS.—The State shall
maintain a list of individuals who are qualified
mediators and knowledgeable in laws (including
regulations) relating to the provision of voca-
tional rehabilitation services under this title,
from which the mediators described in subpara-
graph (B) shall be selected.
‘‘(D) COST.—The State shall bear the cost
of the mediation process.
‘‘(E) SCHEDULING.—Each session in the
mediation process shall be scheduled in a timely
manner and shall be held in a location that is
convenient to the parties to the dispute.
‘‘(F) AGREEMENT.—An agreement reached
by the parties to the dispute in the mediation
process shall be set forth in a written mediation
agreement.
‘‘(G) CONFIDENTIALITY.—Discussions that
occur during the mediation process shall be con-
fidential and may not be used as evidence in
any subsequent due process hearing or civil pro-
ceeding. The parties to the mediation process
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may be required to sign a confidentiality pledge
prior to the commencement of such process.
‘‘(H) CONSTRUCTION.—Nothing in this sub-
section shall be construed to preclude the parties
to such a dispute from informally resolving the
dispute prior to proceedings under this para-
graph or paragraph (5), if the informal process
used is not used to deny or delay the right of the
applicant or eligible individual to a hearing
under this subsection or to deny any other right
afforded under this title.
‘‘(5) HEARINGS.—
‘‘(A) OFFICER.—A due process hearing de-
scribed in paragraph (2) shall be conducted by
an impartial hearing officer who shall issue a
decision based on the provisions of the approved
State plan, this Act (including regulations im-
plementing this Act), and State regulations and
policies that are consistent with the Federal re-
quirements specified in this title. The officer
shall provide the decision in writing to the ap-
plicant or eligible individual, or, as appropriate,
the applicant’s representative or individual’s
representative, and to the designated State unit.
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‘‘(B) LIST.—The designated State unit shall
maintain a list of qualified impartial hearing
officers who are knowledgeable in laws (includ-
ing regulations) relating to the provision of voca-
tional rehabilitation services under this title
from which the officer described in subparagraph
(A) shall be selected. For the purposes of main-
taining such list, impartial hearing officers shall
be identified jointly by—
‘‘(i) the designated State unit; and
‘‘(ii) members of the Council or com-
mission, as appropriate, described in sec-
tion 101(a)(21).
‘‘(C) SELECTION.—Such an impartial hear-
ing officer shall be selected to hear a particular
case relating to a determination—
‘‘(i) on a random basis; or
‘‘(ii) by agreement between—
‘‘(I) the Director of the designated
State unit and the individual with a
disability; or
‘‘(II) in appropriate cases, the Di-
rector and the individual’s representa-
tive.
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‘‘(D) 
PROCEDURES
FOR
SEEKING
RE-
VIEW.—A State may establish procedures to en-
able a party involved in a hearing under this
paragraph to seek an impartial review of the de-
cision of the hearing officer under subparagraph
(A) by—
‘‘(i) the chief official of the designated
State agency if the State has established
both a designated State agency and a des-
ignated State unit under section 101(a)(2);
or
‘‘(ii) an official from the office of the
Governor.
‘‘(E) REVIEW REQUEST.—If the State estab-
lishes impartial review procedures under sub-
paragraph (D), either party may request the re-
view of the decision of the hearing officer within
20 days after the decision.
‘‘(F) REVIEWING OFFICIAL.—The reviewing
official described in subparagraph (D) shall—
‘‘(i) in conducting the review, provide
an opportunity for the submission of addi-
tional evidence and information relevant to
a final decision concerning the matter
under review;
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‘‘(ii) not overturn or modify the deci-
sion of the hearing officer, or part of the de-
cision, that supports the position of the ap-
plicant or eligible individual unless the re-
viewing official concludes, based on clear
and convincing evidence, that the decision
of the impartial hearing officer is clearly
erroneous on the basis of being contrary to
the approved State plan, this Act (including
regulations implementing this Act) or any
State regulation or policy that is consistent
with the Federal requirements specified in
this title; and
‘‘(iii) make a final decision with re-
spect to the matter in a timely manner and
provide such decision in writing to the ap-
plicant or eligible individual, or, as appro-
priate, the applicant’s representative or in-
dividual’s representative, and to the des-
ignated State unit, including a full report
of the findings and the grounds for such de-
cision.
‘‘(G) FINALITY OF HEARING DECISION.—A
decision made after a hearing under subpara-
graph (A) shall be final, except that a party may
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request an impartial review if the State has es-
tablished procedures for such review under sub-
paragraph (D) and a party involved in a hear-
ing may bring a civil action under subpara-
graph (J).
‘‘(H) FINALITY
OF
REVIEW.—A decision
made under subparagraph (F) shall be final un-
less such a party brings a civil action under sub-
paragraph (J).
‘‘(I) IMPLEMENTATION.—If a party brings a
civil action under subparagraph (J) to challenge
a final decision of a hearing officer under sub-
paragraph (A) or to challenge a final decision of
a State reviewing official under subparagraph
(F), the final decision involved shall be imple-
mented pending review by the court.
‘‘(J) CIVIL ACTION.—
‘‘(i) IN
GENERAL.—Any party ag-
grieved by a final decision described in sub-
paragraph (I), may bring a civil action for
review of such decision. The action may be
brought in any State court of competent ju-
risdiction or in a district court of the
United States of competent jurisdiction
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without regard to the amount in con-
troversy.
‘‘(ii) PROCEDURE.—In any action
brought 
under 
this 
subparagraph, 
the
court—
‘‘(I) shall receive the records relat-
ing to the hearing under subparagraph
(A) and the records relating to the
State review under subparagraphs (D)
through (F), if applicable;
‘‘(II) shall hear additional evi-
dence at the request of a party to the
action; and
‘‘(III) basing the decision of the
court on the preponderance of the evi-
dence, shall grant such relief as the
court determines to be appropriate.
‘‘(6) HEARING BOARD.—
‘‘(A) IN GENERAL.—A fair hearing board,
established by a State before January 1, 1985,
and authorized under State law to review deter-
minations or decisions under this Act, is author-
ized to carry out the responsibilities of the im-
partial hearing officer under this subsection.
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‘‘(B) 
APPLICATION.—The 
provisions 
of
paragraphs (1), (2), and (3) that relate to due
process hearings do not apply, and paragraph
(5) (other than subparagraph (J)) does not
apply, to any State to which subparagraph (A)
applies.
‘‘(7) IMPACT ON PROVISION OF SERVICES.—Un-
less the individual with a disability so requests, or,
in an appropriate case, the individual’s representa-
tive, so requests, pending a decision by a mediator,
hearing officer, or reviewing officer under this sub-
section, the designated State unit shall not institute
a suspension, reduction, or termination of services
being provided for the individual, including evalua-
tion and assessment services and plan development,
unless such services have been obtained through mis-
representation, fraud, collusion, or criminal conduct
on the part of the individual, or the individual’s rep-
resentative.
‘‘(8) INFORMATION COLLECTION AND REPORT.—
‘‘(A) IN GENERAL.—The Director of the des-
ignated State unit shall collect information de-
scribed in subparagraph (B) and prepare and
submit to the Commissioner a report containing
such information. The Commissioner shall pre-
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pare a summary of the information furnished
under this paragraph and include the summary
in the annual report submitted under section 13.
The Commissioner shall also collect copies of the
final decisions of impartial hearing officers con-
ducting hearings under this subsection and State
officials conducting reviews under this sub-
section.
‘‘(B) INFORMATION.—The information re-
quired to be collected under this subsection in-
cludes—
‘‘(i) a copy of the standards used by
State reviewing officials for reviewing deci-
sions made by impartial hearing officers
under this subsection;
‘‘(ii) information on the number of
hearings and reviews sought from the im-
partial hearing officers and the State re-
viewing officials, including the type of com-
plaints and the issues involved;
‘‘(iii) information on the number of
hearing decisions made under this sub-
section that were not reviewed by the State
reviewing officials; and
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‘‘(iv) information on the number of the
hearing decisions that were reviewed by the
State reviewing officials, and, based on such
reviews, the number of hearing decisions
that were—
‘‘(I) sustained in favor of an ap-
plicant or eligible individual;
‘‘(II) sustained in favor of the des-
ignated State unit;
‘‘(III) reversed in whole or in
part in favor of the applicant or eligi-
ble individual; and
‘‘(IV) reversed in whole or in part
in favor of the designated State unit.
‘‘(C) CONFIDENTIALITY.—The confidential-
ity of records of applicants and eligible individ-
uals maintained by the designated State unit
shall not preclude the access of the Commissioner
to those records for the purposes described in sub-
paragraph (A).
‘‘(d) POLICIES AND PROCEDURES.—Each designated
State agency, in consultation with the State Rehabilitation
Council, if the State has such a council, shall, consistent
with section 100(a)(3)(C), develop and implement written
policies and procedures that enable each individual who is
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an applicant for or eligible to receive vocational rehabilita-
tion services under this title to exercise informed choice
throughout the vocational rehabilitation process carried out
under this title, including policies and procedures that re-
quire the designated State agency—
‘‘(1) to inform each such applicant and eligible
individual (including students with disabilities de-
scribed in section 101(a)(11)(D)(ii)(II) who are mak-
ing the transition from programs under the respon-
sibility of an educational agency to programs under
the responsibility of the designated State unit),
through appropriate modes of communication, about
the availability of, and opportunities to exercise, in-
formed choice, including the availability of support
services for individuals with cognitive or other dis-
abilities who require assistance in exercising informed
choice, throughout the vocational rehabilitation proc-
ess;
‘‘(2) to assist applicants and eligible individuals
in exercising informed choice in decisions related to
the provision of assessment services under this title;
‘‘(3) to develop and implement flexible procure-
ment policies and methods that facilitate the provi-
sion of services, and that afford eligible individuals
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meaningful choices among the methods used to pro-
cure services, under this title;
‘‘(4) to provide or assist eligible individuals in
acquiring information that enables those individuals
to exercise informed choice under this title in the se-
lection of—
‘‘(A) the employment outcome;
‘‘(B) the specific vocational rehabilitation
services needed to achieve the employment out-
come;
‘‘(C) the entity that will provide the serv-
ices;
‘‘(D) the employment setting and the set-
tings in which the services will be provided; and
‘‘(E) the methods available for procuring
the services; and
‘‘(5) to ensure that the availability and scope of
informed choice provided under this section is consist-
ent with the obligations of the designated State agen-
cy under this title.
‘‘SEC. 103. VOCATIONAL REHABILITATION SERVICES.
‘‘(a) VOCATIONAL REHABILITATION SERVICES FOR IN-
DIVIDUALS.—Vocational rehabilitation services provided
under this title are any services described in an individual-
ized rehabilitation employment plan necessary to assist an
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individual with a disability in preparing for, securing, re-
taining, or regaining an employment outcome that is con-
sistent with the strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed choice of the
individual, including—
‘‘(1) an assessment for determining eligibility
and vocational rehabilitation needs by qualified per-
sonnel, including, if appropriate, an assessment by
personnel skilled in rehabilitation technology;
‘‘(2) counseling and guidance, including infor-
mation and support services to assist an individual
in exercising informed choice consistent with the pro-
visions of section 102(d);
‘‘(3) referral and other services to secure needed
services from other agencies through agreements devel-
oped under section 101(b)(11), if such services are not
available under this title;
‘‘(4) job-related services, including job search and
placement assistance, job retention services, followup
services, and follow-along services;
‘‘(5) vocational and other training services, in-
cluding the provision of personal and vocational ad-
justment services, books, tools, and other training ma-
terials, except that no training services provided at
an institution of higher education shall be paid for
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with funds under this title unless maximum efforts
have been made by the designated State unit and the
individual to secure grant assistance, in whole or in
part, from other sources to pay for such training;
‘‘(6) to the extent that financial support is not
readily available from a source (such as through
health insurance of the individual or through com-
parable services and benefits consistent with section
101(a)(8)(A)), other than the designated State unit,
diagnosis and treatment of physical and mental im-
pairments, including—
‘‘(A) corrective surgery or therapeutic treat-
ment necessary to correct or substantially modify
a physical or mental condition that constitutes a
substantial impediment to employment, but is of
such a nature that such correction or modifica-
tion may reasonably be expected to eliminate or
reduce such impediment to employment within a
reasonable length of time;
‘‘(B) necessary hospitalization in connection
with surgery or treatment;
‘‘(C) prosthetic and orthotic devices;
‘‘(D) eyeglasses and visual services as pre-
scribed by qualified personnel who meet State li-
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hearing, and reader services for individuals who are
determined to be blind, after an examination by
qualified personnel who meet State licensure laws;
‘‘(11) rehabilitation teaching services, and ori-
entation and mobility services, for individuals who
are blind;
‘‘(12) occupational licenses, tools, equipment,
and initial stocks and supplies;
‘‘(13) technical assistance and other consultation
services to conduct market analyses, develop business
plans, and otherwise provide resources, to the extent
such resources are authorized to be provided under the
statewide workforce investment system, to eligible in-
dividuals who are pursuing self-employment or estab-
lishing a small business operation as an employment
outcome;
‘‘(14) rehabilitation technology, including tele-
communications, sensory, and other technological aids
and devices;
‘‘(15) transition services for students with dis-
abilities described in section 101(a)(11)(D)(ii)(II),
that facilitate the achievement of the employment out-
come identified in the individualized rehabilitation
employment plan;
‘‘(16) supported employment services;
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‘‘(17) services to the family of an individual
with a disability necessary to assist the individual to
achieve an employment outcome; and
‘‘(18) specific post-employment services necessary
to assist an individual with a disability to, retain,
regain, or advance in employment.
‘‘(b) VOCATIONAL REHABILITATION SERVICES
FOR
GROUPS OF INDIVIDUALS.—Vocational rehabilitation serv-
ices provided for the benefit of groups of individuals with
disabilities may also include the following:
‘‘(1) In the case of any type of small business op-
erated by individuals with significant disabilities the
operation of which can be improved by management
services and supervision provided by the designated
State agency, the provision of such services and su-
pervision, along or together with the acquisition by
the designated State agency of vending facilities or
other equipment and initial stocks and supplies.
‘‘(2) The establishment, development, or improve-
ment of community rehabilitation programs, that
promise to contribute substantially to the rehabilita-
tion of a group of individuals but that are not related
directly to the individualized rehabilitation employ-
ment plan of any 1 individual with a disability.
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Such programs shall be used to provide services that
promote integration and competitive employment.
‘‘(3) The use of telecommunications systems (in-
cluding telephone, television, satellite, radio, and
other similar systems) that have the potential for sub-
stantially improving delivery methods of activities de-
scribed in this section and developing appropriate
programming to meet the particular needs of individ-
uals with disabilities.
‘‘(4)(A) Special services to provide nonvisual ac-
cess to information for individuals who are blind, in-
cluding the use of telecommunications, Braille, sound
recordings, or other appropriate media.
‘‘(B) Captioned television, films, or video cas-
settes for individuals who are deaf or hard of hearing.
‘‘(C) Tactile materials for individuals who are
deaf-blind.
‘‘(D) Other special services that provide informa-
tion through tactile, vibratory, auditory, and visual
media.
‘‘(5) Technical assistance and support services to
businesses that are not subject to title I of the Ameri-
cans with Disabilities Act of 1990 (42 U.S.C. 12111
et seq.) and that are seeking to employ individuals
with disabilities.
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‘‘(6) Consultative and technical assistance serv-
ices to assist educational agencies in planning for the
transition of students with disabilities described in
section 101(a)(11)(D)(i) from school to post-school ac-
tivities, including employment.
‘‘SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF
PROGRAM.
‘‘For the purpose of determining the amount of pay-
ments to States for carrying out part B of this title (or
to an Indian tribe under part C), the non-Federal share,
subject to such limitations and conditions as may be pre-
scribed in regulations by the Commissioner, shall include
contributions of funds made by any private agency, organi-
zation, or individual to a State or local agency to assist
in meeting the costs of establishment of a community reha-
bilitation program, which would be regarded as State or
local funds except for the condition, imposed by the contrib-
utor, limiting use of such funds to establishment of such
a program.
‘‘SEC. 105. STATE REHABILITATION COUNCIL.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—Except as provided in sec-
tion 101(a)(21)(A)(i), to be eligible to receive finan-
cial assistance under this title a State shall establish
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HR 1385 EAS
a State Rehabilitation Council (referred to in this sec-
tion as the ‘Council’) in accordance with this section.
‘‘(2) SEPARATE AGENCY FOR INDIVIDUALS WHO
ARE BLIND.—A State that designates a State agency
to administer the part of the State plan under which
vocational rehabilitation services are provided for in-
dividuals who are blind under section 101(a)(2)(A)(i)
may establish a separate Council in accordance with
this section to perform the duties of such a Council
with respect to such State agency.
‘‘(b) COMPOSITION AND APPOINTMENT.—
‘‘(1) COMPOSITION.—
‘‘(A) IN GENERAL.—Except in the case of a
separate Council established under subsection
(a)(2), the Council shall be composed of—
‘‘(i) at least one representative of the
Statewide Independent Living Council es-
tablished under section 705, which rep-
resentative may be the chairperson or other
designee of the Council;
‘‘(ii) at least one representative of a
parent training and information center es-
tablished pursuant to section 682(a) of the
Individuals with Disabilities Education Act
(as added by section 101 of the Individuals
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with Disabilities Education Act Amend-
ments of 1997; Public Law 105–17);
‘‘(iii) at least one representative of the
client assistance program established under
section 112;
‘‘(iv) at least one vocational rehabilita-
tion counselor, with knowledge of and expe-
rience with vocational rehabilitation pro-
grams, who shall serve as an ex officio, non-
voting member of the Council if the coun-
selor is an employee of the designated State
agency;
‘‘(v) at least one representative of com-
munity rehabilitation program service pro-
viders;
‘‘(vi) four representatives of business,
industry, and labor;
‘‘(vii) representatives of disability ad-
vocacy groups representing a cross section
of—
‘‘(I) individuals with physical,
cognitive, sensory, and mental disabil-
ities; and
‘‘(II) individuals’ representatives
of individuals with disabilities who
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have difficulty in representing them-
selves or are unable due to their dis-
abilities to represent themselves;
‘‘(viii) current or former applicants
for, or recipients of, vocational rehabilita-
tion services;
‘‘(ix) in a State in which one or more
projects are carried out under section 121,
at least one representative of the directors of
the projects;
‘‘(x) at least one representative of the
State educational agency responsible for the
public education of students with disabil-
ities who are eligible to receive services
under this title and part B of the Individ-
uals with Disabilities Education Act; and
‘‘(xi) at least one representative of the
statewide workforce investment partnership.
‘‘(B) SEPARATE COUNCIL.—In the case of a
separate Council established under subsection
(a)(2), the Council shall be composed of—
‘‘(i) at least one representative de-
scribed in subparagraph (A)(i);
‘‘(ii) at least one representative de-
scribed in subparagraph (A)(ii);
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‘‘(iii) at least one representative de-
scribed in subparagraph (A)(iii);
‘‘(iv) at least one vocational rehabilita-
tion counselor described in subparagraph
(A)(iv), who shall serve as described in such
subparagraph;
‘‘(v) at least one representative de-
scribed in subparagraph (A)(v);
‘‘(vi) four representatives described in
subparagraph (A)(vi);
‘‘(vii) at least one representative of a
disability advocacy group representing in-
dividuals who are blind;
‘‘(viii) at least one individual’s rep-
resentative, of an individual who—
‘‘(I) is an individual who is blind
and has multiple disabilities; and
‘‘(II) has difficulty in represent-
ing himself or herself or is unable due
to disabilities to represent himself or
herself;
‘‘(ix) applicants or recipients described
in subparagraph (A)(viii);
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‘‘(x) in a State described in subpara-
graph (A)(ix), at least one representative
described in such subparagraph;
‘‘(xi) at least one representative de-
scribed in subparagraph (A)(x); and
‘‘(xii) at least one representative de-
scribed in subparagraph (A)(xi).
‘‘(C) EXCEPTION.—In the case of a separate
Council established under subsection (a)(2), any
Council that is required by State law, as in ef-
fect on the date of enactment of the Rehabilita-
tion Act Amendments of 1992, to have fewer
than 15 members shall be deemed to be in com-
pliance with subparagraph (B) if the Council—
‘‘(i) meets the requirements of subpara-
graph (B), other than the requirements of
clauses (vi) and (ix) of such subparagraph;
and
‘‘(ii) includes at least—
‘‘(I) one representative described
in subparagraph (B)(vi); and
‘‘(II) one applicant or recipient
described in subparagraph (B)(ix).
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‘‘(2) EX OFFICIO MEMBER.—The Director of the
designated State unit shall be an ex officio, nonvoting
member of the Council.
‘‘(3) APPOINTMENT.—Members of the Council
shall be appointed by the Governor. 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.
In selecting members, the Governor shall consider, to
the greatest extent practicable, the extent to which mi-
nority populations are represented on the Council.
‘‘(4) QUALIFICATIONS.—A majority of Council
members shall be persons who are—
‘‘(A) individuals with disabilities described
in section 7(20)(A); and
‘‘(B) not employed by the designated State
unit.
‘‘(5) CHAIRPERSON.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the Council shall select a
chairperson from among the membership of the
Council.
‘‘(B) 
DESIGNATION
BY
GOVERNOR.—In
States in which the chief executive officer does
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not have veto power pursuant to State law, the
Governor shall designate a member of the Coun-
cil to serve as the chairperson of the Council or
shall require the Council to so designate such a
member.
‘‘(6) TERMS OF APPOINTMENT.—
‘‘(A) LENGTH OF TERM.—Each member of
the Council shall serve for a term of not more
than 3 years, except that—
‘‘(i) a member appointed to fill a 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
of years as will provide for the expiration
of terms on a staggered basis.
‘‘(B) NUMBER OF TERMS.—No member of
the Council, other than a representative described
in clause (iii) or (ix) of paragraph (1)(A), or
clause (iii) or (x) of paragraph (1)(B), may
serve more than two consecutive full terms.
‘‘(7) VACANCIES.—
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‘‘(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 members of the Council after making
the original appointment.
‘‘(c) FUNCTIONS
OF COUNCIL.—The Council shall,
after consulting with the statewide workforce investment
partnership—
‘‘(1) review, analyze, and advise the designated
State unit regarding the performance of the respon-
sibilities of the unit under this title, particularly re-
sponsibilities relating to—
‘‘(A) eligibility (including order of selec-
tion);
‘‘(B) the extent, scope, and effectiveness of
services provided; and
‘‘(C) functions performed by State agencies
that affect or that potentially affect the ability of
individuals with disabilities in achieving em-
ployment outcomes under this title;
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‘‘(2) in partnership with the designated State
unit—
‘‘(A) develop, agree to, and review State
goals and priorities in accordance with section
101(a)(15)(C); and
‘‘(B) evaluate the effectiveness of the voca-
tional rehabilitation program and submit re-
ports of progress to the Commissioner in accord-
ance with section 101(a)(15)(E);
‘‘(3) advise the designated State agency and the
designated State unit regarding activities authorized
to be carried out under this title, and assist in the
preparation of the State plan and amendments to the
plan, applications, reports, needs assessments, and
evaluations required by this title;
‘‘(4) to the extent feasible, conduct a review and
analysis of the effectiveness of, and consumer satisfac-
tion with—
‘‘(A) the functions performed by the des-
ignated State agency;
‘‘(B) vocational rehabilitation services pro-
vided by State agencies and other public and
private entities responsible for providing voca-
tional rehabilitation services to individuals with
disabilities under this Act; and
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‘‘(C) employment outcomes achieved by eli-
gible individuals receiving services under this
title, including the availability of health and
other employment benefits in connection with
such employment outcomes;
‘‘(5) prepare and submit an annual report to the
Governor and the Commissioner on the status of voca-
tional rehabilitation programs operated within the
State, and make the report available to the public;
‘‘(6) to avoid duplication of efforts and enhance
the number of individuals served, coordinate activities
with the activities of other councils within the State,
including the Statewide Independent Living Council
established under section 705, the advisory panel es-
tablished under section 612(a)(21) of the Individual
with Disabilities Education Act (as amended by sec-
tion 101 of the Individuals with Disabilities Edu-
cation Act Amendments of 1997; Public Law 105–17),
the State Developmental Disabilities Council de-
scribed in section 124 of the Developmental Disabil-
ities Assistance and Bill of Rights Act (42 U.S.C.
6024), the State mental health planning council es-
tablished under section 1914(a) of the Public Health
Service Act (42 U.S.C. 300x–4(a)), and the statewide
workforce investment partnership;
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‘‘(7) provide for coordination and the establish-
ment of working relationships between the designated
State agency and the Statewide Independent Living
Council and centers for independent living within the
State; and
‘‘(8) perform such other functions, consistent
with the purpose of this title, as the State Rehabilita-
tion Council determines to be appropriate, that are
comparable to the other functions performed by the
Council.
‘‘(d) RESOURCES.—
‘‘(1) PLAN.—The Council shall prepare, in con-
junction with the designated State unit, a plan for
the provision of such resources, including such staff
and other personnel, as may be necessary and suffi-
cient to carry out the functions of the Council under
this section. The resource plan shall, to the maximum
extent possible, rely on the use of resources in exist-
ence during the period of implementation of the plan.
‘‘(2) RESOLUTION OF DISAGREEMENTS.—To the
extent that there is a disagreement between the Coun-
cil and the designated State unit in regard to the re-
sources necessary to carry out the functions of the
Council as set forth in this section, the disagreement
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shall be resolved by the Governor consistent with
paragraph (1).
‘‘(3) SUPERVISION
AND
EVALUATION.—Each
Council shall, consistent with State law, supervise
and evaluate such staff and other personnel as may
be necessary to carry out its functions under this sec-
tion.
‘‘(4) PERSONNEL
CONFLICT
OF
INTEREST.—
While assisting the Council in carrying out its duties,
staff and other personnel shall not be assigned duties
by the designated State unit or any other agency or
office of the State, that would create a conflict of in-
terest.
‘‘(e) CONFLICT
OF INTEREST.—No member of the
Council shall cast a vote on any matter that would provide
direct financial benefit to the member or otherwise give the
appearance of a conflict of interest under State law.
‘‘(f) MEETINGS.—The Council shall convene at least 4
meetings a year in such places as it determines to be nec-
essary to conduct Council business and conduct such forums
or hearings as the Council considers appropriate. The meet-
ings, hearings, and forums shall be publicly announced. The
meetings shall be open and accessible to the general public
unless there is a valid reason for an executive session.
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‘‘(g) COMPENSATION
AND EXPENSES.—The Council
may use funds allocated to the Council by the designated
State unit under this title (except for funds appropriated
to carry out the client assistance program under section 112
and funds reserved pursuant to section 110(c) to carry out
part C) to reimburse members of the Council for reasonable
and necessary expenses of attending Council meetings and
performing Council duties (including child care and per-
sonal assistance services), and to pay compensation to a
member of the Council, if such member is not employed or
must forfeit wages from other employment, for each day the
member is engaged in performing the duties of the Council.
‘‘(h) HEARINGS AND FORUMS.—The Council is author-
ized to hold such hearings and forums as the Council may
determine to be necessary to carry out the duties of the
Council.
‘‘SEC. 106. EVALUATION STANDARDS AND PERFORMANCE
INDICATORS.
‘‘(a) ESTABLISHMENT.—
‘‘(1) IN GENERAL.—
‘‘(A) ESTABLISHMENT OF STANDARDS AND
INDICATORS.—The Commissioner shall, not later
than September 30, 1998, establish and publish
evaluation standards and performance indicators
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for the vocational rehabilitation program carried
out under this title.
‘‘(B) REVIEW
AND
REVISION.—Effective
September 30, 1998, the Commissioner shall re-
view and, if necessary, revise the evaluation
standards and performance indicators every 3
years. Any revisions of the standards and indi-
cators shall be developed with input from State
vocational rehabilitation agencies, related profes-
sional and consumer organizations, recipients of
vocational rehabilitation services, and other in-
terested parties. Any revisions of the standards
and indicators shall be subject to the publication,
review, and comment provisions of paragraph
(3).
‘‘(C) BASES.—Effective July 1, 1999, to the
maximum extent practicable, the standards and
indicators shall be consistent with the core indi-
cators of performance established under section
321(b) of the Workforce Investment Partnership
Act of 1998.
‘‘(2) MEASURES.—The standards and indicators
shall include outcome and related measures of pro-
gram performance that facilitate the accomplishment
of the purpose and policy of this title.
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‘‘(3) COMMENT.—The standards and indicators
shall be developed with input from State vocational
rehabilitation agencies, related professional and con-
sumer organizations, recipients of vocational rehabili-
tation services, and other interested parties. The Com-
missioner shall publish in the Federal Register a no-
tice of intent to regulate regarding the development of
proposed standards and indicators. Proposed stand-
ards and indicators shall be published in the Federal
Register for review and comment. Final standards
and indicators shall be published in the Federal Reg-
ister.
‘‘(b) COMPLIANCE.—
‘‘(1) STATE REPORTS.—In accordance with regu-
lations established by the Secretary, each State shall
report to the Commissioner after the end of each fiscal
year the extent to which the State is in compliance
with the standards and indicators.
‘‘(2) PROGRAM IMPROVEMENT.—
‘‘(A) PLAN.—If the Commissioner deter-
mines that the performance of any State is below
established standards, the Commissioner shall
provide technical assistance to the State, and the
State and the Commissioner shall jointly develop
a program improvement plan outlining the spe-
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cific 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 fur-
ther revisions to the plan to improve per-
formance; and
‘‘(ii) continue to conduct such reviews
and request such revisions until the State
sustains satisfactory performance over a pe-
riod 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 Com-
missioner shall, consistent with subsections (c) and (d) of
section 107, reduce or make no further payments to the
State under this program, until the State has entered into
an approved program improvement plan, or satisfies the
Commissioner that the State is complying substantially
with the terms and conditions of such a program improve-
ment plan, as appropriate.
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‘‘(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 pro-
gram performance, including relative State performance,
based on the standards and indicators.
‘‘SEC. 107. MONITORING AND REVIEW.
‘‘(a) IN GENERAL.—
‘‘(1) DUTIES.—In carrying out the duties of the
Commissioner under this title, the Commissioner
shall—
‘‘(A) provide for the annual review and
periodic onsite monitoring of programs under
this title; and
‘‘(B) determine whether, in the administra-
tion of the State plan, a State is complying sub-
stantially with the provisions of such plan and
with evaluation standards and performance in-
dicators established under section 106.
‘‘(2) PROCEDURES FOR REVIEWS.—In conduct-
ing reviews under this section the Commissioner shall
consider, at a minimum—
‘‘(A) State policies and procedures;
‘‘(B) guidance materials;
‘‘(C) decisions resulting from hearings con-
ducted in accordance with due process;
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‘‘(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 sec-
tion 106(b);
‘‘(F) consumer satisfaction reviews and
analyses described in section 105(c)(4);
‘‘(G) information provided by the State Re-
habilitation 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 commis-
sion;
‘‘(H) reports; and
‘‘(I) budget and financial management
data.
‘‘(3) PROCEDURES
FOR
MONITORING.—In con-
ducting monitoring under this section the Commis-
sioner shall conduct—
‘‘(A) onsite visits, including onsite reviews
of records to verify that the State is following re-
quirements 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;
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substantial evidence in the record of the proceed-
ing submitted pursuant to paragraph (1), as
supplemented by any additional submissions and
presentations filed under paragraph (2).
‘‘SEC. 108. EXPENDITURE OF CERTAIN AMOUNTS.
‘‘(a) EXPENDITURE.—Amounts described in subsection
(b) may not be expended by a State for any purpose other
than carrying out programs for which the State receives
financial assistance under this title, under part C of title
VI, or under title VII.
‘‘(b) AMOUNTS.—The amounts referred to in subsection
(a) are amounts provided to a State under the Social Secu-
rity Act (42 U.S.C. 301 et seq.) as reimbursement for the
expenditure of payments received by the State from allot-
ments 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
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‘‘(2) to inform employers of the existence of the
program and the availability of the services of the
program.
‘‘PART B—BASIC VOCATIONAL REHABILITATION SERVICES
‘‘STATE ALLOTMENTS
‘‘SEC. 110. (a)(1) Subject to the provisions of sub-
section (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 Oc-
tober 1, 1978, each State shall be entitled to an allotment
in an amount equal to the amount such State received
under paragraph (1) for the fiscal year ending September
30, 1978, and an additional amount determined pursuant
to subparagraph (B) of this paragraph.
‘‘(B) For each fiscal year beginning on or after October
1, 1978, each State shall be entitled to an allotment, from
any amount authorized to be appropriated for such fiscal
year under section 100(b)(1) for allotment under this sec-
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tion in excess of the amount appropriated under section
100(b)(1)(A) for the fiscal year ending September 30, 1978,
in an amount equal to the sum of—
‘‘(i) an amount bearing the same ratio to 50 per-
cent of such excess amount as the product of the popu-
lation of the State and the square of its allotment per-
centage bears to the sum of the corresponding prod-
ucts for all the States; and
‘‘(ii) an amount bearing the same ratio to 50
percent of such excess amount as the product of the
population of the State and its allotment percentage
bears to the sum of the corresponding products for all
the States.
‘‘(3) The sum of the payment to any State (other than
Guam, American Samoa, the Virgin Islands, and the Com-
monwealth of the Northern Mariana Islands) under this
subsection for any fiscal year which is less than one-third
of 1 percent of the amount appropriated under section
100(b)(1), or $3,000,000, whichever is greater, shall be in-
creased to that amount, the total of the increases thereby
required being derived by proportionately reducing the al-
lotment to each of the remaining such States under this sub-
section, but with such adjustments as may be necessary to
prevent the sum of the allotments made under this sub-
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section to any such remaining State from being thereby re-
duced to less than that amount.
‘‘(b)(1) Not later than forty-five days prior to the end
of the fiscal year, the Commissioner shall determine, after
reasonable opportunity for the submission to the Commis-
sioner of comments by the State agency administering or
supervising the program established under this title, that
any payment of an allotment to a State under section
111(a) for any fiscal year will not be utilized by such State
in carrying out the purposes of this title.
‘‘(2) As soon as practicable but not later than the end
of the fiscal year, the Commissioner shall make such amount
available for carrying out the purposes of this title to one
or more other States to the extent the Commissioner deter-
mines such other State will be able to use such additional
amount during that fiscal year or the subsequent fiscal year
for carrying out such purposes. The Commissioner shall
make such amount available only if such other State will
be able to make sufficient payments from non-Federal
sources to pay for the non-Federal share of the cost of voca-
tional rehabilitation services under the State plan for the
fiscal year for which the amount was appropriated.
‘‘(3) For the purposes of this part, any amount made
available to a State for any fiscal year pursuant to this
subsection shall be regarded as an increase of such State’s
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opportunities, for individuals with disabilities in
fields related to the job and career availability
identified under clause (ii);
‘‘(B) provide job development, job placement, and
career advancement services;
‘‘(C) to the extent appropriate, provide for—
‘‘(i) training in realistic work settings in
order to prepare individuals with disabilities for
employment and career advancement in the com-
petitive market; and
‘‘(ii) the modification of any facilities or
equipment of the employer involved that are used
primarily by individuals with disabilities, ex-
cept that a project shall not be required to pro-
vide for such modification if the modification is
required as a reasonable accommodation under
the Americans with Disabilities Act of 1990 (42
U.S.C. 12101 et seq.); and
‘‘(D) provide individuals with disabilities with
such support services as may be required in order to
maintain the employment and career advancement
for which the individuals have received training
under this part.
‘‘(3)(A) An individual shall be eligible for services de-
scribed in paragraph (2) if the individual is determined