An Act to amend the Vocational Rehabilitation Act to assist in providing more flexibility in the financing and administration of State rehabilitation programs, and to assist in the expansion and improvement of services and facilities provided under such programs, particularly for the mentally retarded and other groups presenting special vocational rehabilitation problems, and for other purposes
PL 89-333 (H.R.8310), enacted 11/08/1965

1282 
PUBLIC LAW 89-333-NOV. 8, 1965 
[79 STAT. 
Public Law 89-333 
November 8, 19 65 
[H. R. 8310] 
AN ACT 
Vocational Re-
habilitation Act 
Amendments of 
1965. 
68 Stat. 65 2. 
29 u s e 31-33. 
Post, 
p. 
Post, 
p. 
1289. 
1290. 
To amend the Vocational Rehabilitation Act to assist in providing more flexi-
bility in the financing and administration of State rehabilitation programs, 
and to assist in the expansion and improvement of services and facilities 
provided under such programs, particularly for the mentally retarded and 
other groups presenting special vocational rehabilitation problems, and for 
other purposes. 
Be it enacted hy the Senate and House of Representatives 
of the 
United States of America in Congress assemhled^ That this Act may 
be cited as the "Vocational Rehabilitation Act Amendments of 1965". 
AUTHORIZATION OF APPROPRIATIONS; ALLOTMENTS 
SEC. 2. (a) Sections 1, 2, and 3 of the Vocational Rehabilitation 
Act are amended to read as follows: 
'•AUTHORIZATION OF APPROPRIATIONS FOR GRANTS; PURPOSES FOR W H I C H 
AVAILAKLE 
"SECTION 1. (a) The Secretary is authorized to make grants as 
provided in this Act for the purpose of assisting States in rehabili-
tating handicapped individuals so that they may prepare for and 
engage in gainful employment to the extent of their capabilities, 
thereby increasing not only their social and economic well-being but 
also the productive capacity of the Nation. 
" (b) (1) For the purpose of making grants to States under section 2 
to assist them in meeting the costs of vocational rehabilitation serv-
ices, there is authorized to be appropriated for the fiscal year ending 
June 30, 1966, the sum of $300,000,000, for the fiscal year ending 
June 30, 1967, the sum of $360,000,000, and for the fiscal year ending 
June 30, 1968, the sum of $400,000,000. 
"(2) For the purpose of making grants under section 3, relating 
to grants to States to assist them in meeting the costs of projects for 
innovation of vocational rehabilitation services, there is authorized to 
be appropriated for the fiscal year ending June 30, 1966, the sum of 
$5,000,000, for the fiscal year ending June 30, 1967, the sum of 
$7,000,000, and for the fiscal year ending June 30, 1968, the sum of 
$9,000,000. 
"(3) For the purpose of making grants (A) under section 4(a) (1) 
for research, demonstrations, training, and traineeships; (B) under 
clause 1(2) (A) of section 4(a) for planning, preparing for, and 
initiating special programs to expand State vocational rehabilitation 
services; and (C) under clause (2) (B) of section 4(a) to meet the 
cost of planning for the development of a comprehensive vocational 
rehabilitation program in each State, there is authorized to be appro-
priated for the fiscal year ending June 30,1966, the sum of $80,000,000, 
for the fiscal year ending June 30, 1967, the sum of $104,000,000, and 
for the fiscal year ending June 30, 1968, the sum of $117,000,000. 
"(4) For the fiscal year ending June 30, 1969, and each of the 
succeeding fiscal years, only such sums may be appropriated for the 
purposes described in paragraphs (1), (2), and (3) as the Ck)ngress 
may hereafter authorize by law. 
" G R A N T S 
T O S T A T E S FOR VOCATIONAL REHABILITATION 
SERVICES 
"SEC. 2. (a) For each fiscal year each State shall be entitled to an 
allotment of an amount bearing the same ratio to the amount author-
ized to be appropriated by paragraph (1) of section 1(b) for meeting 
79 STAT. ] 
PUBLIC LAW 89-333-NOV. 8, 1965 
1283 
the cost of vocational rehabilitation services, as the product of (1) 
the population of the State and (2) the square of its allotment per-
centage (as defined in section 11(h)) bears to the sum of the corre- 
^^ stat. eeu 
' 
74 St at 
4ol 7 
sponding products for all the States. The allotment to any State 
29 use 41'. 
under the preceding sentence which is less than the amount such 
State was entitled to receive under subsection (b) of this section for 
the fiscal year ending June 30,1965, shall be increased to that amount, 
the total of the increases thereby required being derived by propor-
tionately reducing the allotments of each of the remaining States 
under the preceding sentence, but with such adjustments as may be 
necessary to prevent the allotment of any of such remaining States 
from being thereby reduced to less than that amount. 
"(b) For each fiscal year the Secretary shall pay to each State an 
amount equal to the Federal share (determined as provided in sec-
tion 11 (i)) of the cost of vocational rehabilitation services under the 
^°^'' P- ^2^'*-
plan for such State approved under section 5, including expenditures 
^°®'' P- ^^^^• 
for the administration of the State plan, except that the total of such 
payments to such State for such fiscal year may not exceed its allot-
ment under subsection (a) for such year, and except that the amount 
otherwise payable to such State for such year under this section shall 
be reduced by the amount (if any) by which expenditures from non-
Federal sources (except for expenditures with respect to which the 
State is entitled to payments under section 3) during such year under 
such State's plan are less than such expenditures under such plan for 
the fiscal year ending June 30, 1965. 
"GRANTS TO STATES FOR INNOVATION OF VOCATIONAL REHABILITATION 
SERVICES 
"SEC. 3. (a) (1) From the sums available for any fiscal year for 
grants to States to assist them in meeting the costs described in para-
graph (2) of this subsection, each State shall be entitled to an allot-
ment of an amount bearing the same ratio to such sums as the popula-
tion of the State bears to the population of all the States. 
The 
allotment to any State under the preceding sentence for any fiscal 
year which is less than $5,000 (or such other amount as may be 
specified as a minimum allotment in the Act appropriating such sums 
for such year) shall be increased to that amount, the total of the 
increases thereby required being derived by proportionately reducing 
the allotments to each of the remaining States under the preceding 
sentence, but with such adjustments as may be necessary to prevent 
the allotment of any of such remaining States from being thereby 
reduced to less than that amount. 
"(2) From each State's allotment under this section for any fiscal 
year, the Secretary shall pay to such State a portion of the cost of 
approved projects for vocational rehabilitation services (including 
their administration) under the State plan which (A) provide for 
the development of methods or techniques, which are new in the State, 
for proxading vocational rehabilitation services for handicapped indi-
viduals, or (B) are specially designed for development of, or provision 
for, new or expanded vocational rehabilitation services for groups of 
handicapped individuals having disabilities which are catastrophic 
or particularly severe. The Secretary shall approve any project for 
purposes of this section only if the plan of such State approved under 
section 5 includes such project or is modified to include it. 
"(b) Payments under this section with respect to any project may 
"
^
^
"
^
^ umitati -. 
be made for a period of not to exceed five years beginning with the 
commencement of the first fiscal year for which any payment is made 
witli respect to such project from an allotment under this section. To 
1284 
PUBLIC LAW 89-333-NOV. 8, 1965 
[79 STAT. 
Ante, p. 1 
Effective 
282. 
date. 
the extent permitted by the State's allotment under this section, such 
payments with respect to any project shall be equal to 90 per centum 
of the cost of such project for the first three years and 75 per centum 
of the cost of such project for the next two years, except that, at the 
request of the State, such payments may be less than such percentage 
of the cost of such project. 
"(c) No payment may be made from an allotment under this sec-
tion with respect to any cost with respect to which any payment is 
made under section 2." 
(b) The amendment made by this section shall be in effect for 
fiscal years beginning after June 30, 1965, except that payments may 
be made from a State's allotment under section 3 of the Vocational 
Rehabilita;tion Act for any project approved under such section before 
the enactment of this Act. 
Such payments may be made for the 
period for which such project was approved and at the rate provided 
for in such section at the time of such approval. 
Ante, 
p. 676; 
68 Stat. 662. 
29 u s e 31 note. 
CONSTRUCTION OF REHABILITATION FACILITIES ; WORKSHOP IMPROVEMENT; 
REMOVAL OF ARCHITECTURAL 
BARRIERS 
SEC. 3. The Vocational Rehabilitation Act is further amended by 
redesignating sections 12 and 13 as sections 16 and 17, and by inserting 
after section 11 the following new sections: 
" G R A N T S F O R C O N S T R U C T I O N O F REHABILITATION FACILITIES AND 
WORKSHOPS 
"SEC. 12. (a) Effective for fiscal years beginning after June 30,1965, 
the Secretary is authorized to make grants to assist in meeting the 
costs of construction of public or other nonprofit workshops and 
rehabilitation facilities. Such grants may be made only for projects 
for which applications are approved by the Secretary under this 
section. 
Applications, re- 
a/|j\ np^ ij^^ approved, au application for a grant for a construction 
quirements for ap- 
} ' 
i 
,i • 
,• 
r 
provai. 
project under this section must— 
"(1) contain or be supported by reasonable assurances that (A) 
for a period of not less than twenty years after completion of 
construction of the project it wdll be used as a public or other 
nonprofit workshop or rehabilitation facility, (B) sufficient funds 
will be available to meet the non-Federal share of the cost of con-
struction of the project, and (C) sufficient funds will be available, 
when construction of the project is completed, for its effective use 
as a workshop or rehabilitation facility, as the case may be; 
"(2) be accompanied or supplemented by plans and specifica-
tions which comply with regulations of the Secretary relating to 
minimum standards of construction and ec[uipment, and with 
regulations of the Secretary of Labor relating to safety stand-
ards for workshops and rehabilitation facilities; 
"(3) be approved, in accordance with regulations of the Secre-
tary, by the appropriate State agency designated as provided in 
section 5(a) (1); 
"(4) contain or be supported by reasonable assurance that any 
laborer or mechanic employed by any contractor or subcontractor 
in the performance of work on any construction aided by pay-
ments pursuant to any grant under this section will be paid wages 
at rates not less than those prevailing on similar construction in 
the locality as determined by the Secretary of Labor in accord-
ance with the Davis-Bacon Act, as amended (40 TJ.S.C. 276a—• 
276a-5); and the Secretary of Labor shall have, with respect to 
the labor standards specified in this paragraph, the authority and 
Post, p. 1291. 
Labor standards. 
49 Stat. 10 11; 
78 Stat. 238. 
79 STAT. ] 
PUBLIC LAW 89-333-NOV. 8, 1965 
1285 
functions set forth in Reorganization Plan Numbered 14 of 1950 
(15 F.R. 3176; 5 U.S.C. 133z-15) and section 2 of the Act of 
^''^'^'- ^2^^-
June 13,1934, as amended (40 U.S.C. 276c). 
^3 stat. los. 
"(c) The amount of a grant under this section with respect to 
any construction project in any State shall be equal to the same per-
centage of the cost of such project as the Federal share which is 
applicable in the case of rehabilitation facilities (as defined in sec-
tion 625(g) of the Public Health Service Act, 42 U.S.C. 291o(g)) 
^s stat. 46i. 
in such State, except that if the Federal share with respect to rehabili-
tation facilities in such State is determined under subparagraph 
(A) of section 625(b) (1) of such Act (42 U.S.C. 291o(b) (1)), the 
percentage of the cost for purposes of this section shall be determined 
in accordance with regulations of the Secretary designed to achieve 
as nearly as practicable results comparable to the results obtained 
under such subparagraph. 
"(d) Upon approval of any application for a grant for a construc-
tion project under this section, the Secretary shall reserve, from any 
appropriation available therefor, the amount of such grant determin^ 
under subsection (c) ; the amount so reserved may be paid in advance 
or by way of reimbursement, and in such installments consistent with 
construction progress, as the Secretary may determine. 
In case an 
amendment to an approved application is approved or the estimated 
cost of a project is revised upward, any additional payment with 
respect thereto may be made from the appropriation from which the 
original reservation was made or the appropriation for the fiscal year in 
which such amendment or revision is approved. 
"(e) If, within twenty years after completion of any construction 
project for which funds have been paid under this section, the work-
shop or rehabilitation facility shall cease to be a public or other non-
profit workshop or rehabilitation facility, the United States shall be 
entitled to recover from the applicant or other owner of the workshop 
or facility the amount bearing the same ratio to the then value (as 
determined by agreement of the parties or by action brought in the 
United States district court for the district in which such workshop 
or facility is situated) of the workshop or facility, as the amount of 
the Federal participation bore to the cost of construction of such 
workshop or facility. 
"(f) The Secretary is also authorized to make grants to assist in the 
staffing, Federal 
• • • 1 
IV 
p 
I T 
1 
n 
1 1 
1 1 -T 
share of costs. 
initial stamng oi any public or other nonprofit workshop or rehabilita-
tion facility constructed after the date of enactment of this section 
(whether or not such constiTiction was financed with the aid of a grant 
under this section) by covering part of the costs (determined in accord-
ance with regulations of the Secretary) of compensation of profes-
sional or technical personnel of such worksliop or facility during the 
l>eriod beginning with the commencement of the operation of such 
workshop or facility and ending with the close of four years and three 
months after the month in which such operation commenced. 
Such 
grants with respect to any workshop or facility may not exceed 75 per 
centum of such costs for the period ending with the close of the 
fifteenth month following the month in which such operation com-
menced, 60 per centum of such costs for the first year thereafter, 45 
per centum of such costs for the second year thereafter, and 30 per 
centum of such costs for the thii-d year thereafter. 
"(g) The Secretary is also authorized to make grants (1) to the 
State agency or agencies designated as provided in section 5(a) (1) to 
P°st' P- 1291. 
assist in meeting the cost of determining the Sta.te's needs for work-
shops and rehabilitation facilities and (2) upon application approved 
l)y tile appropriate State agency so designated for such State, to public 
or other nonprofit agencies, institutions, or organizations to assist them 
1286 
PUBLIC LAW 89-333-NOV. 8, 1965 
[79 STAT. 
Payments. 
Appropriation. 
Definitions. 
in meeting the costs of planning workshops and rehabilitation facilities 
and the services to be provided thereby. 
"(h) Payment of grants under subsection (f) or (g) may be made 
(after necessary adjustment on account of previously made overpay-
ments or underpayments) in advance or by way of reimbursement, 
and in such installments and on such conditions, as the Secretary may 
determine. 
"(i) There is authorized to be appropriated for carrying out this 
section $1,500,000 for the fiscal year ending June 30, 1966, $7,000,000 
for the fiscal year ending June 30, 1967, $9,000,000 for the fiscal year 
ending June 30, 1968; and for each of the two succeeding fiscal years 
only such sums may be appropriated for carrying out this section as 
the Congress may hereafter authorize by law. 
Sums so appropriated 
sliall remain available for payment with respect to construction proj-
ects approved or initial staffing grants made under this section prior 
to July 1, 1970. 
"(j) For purposes of this section— 
"(1) 'construction' includes construction of new" buildings, 
acquisition of existing buildings, and expansion, remodeling, 
alteration, and renovation of existing buildings, and initial equip-
ment of such new, newly acquired, expanded, remodeled, altered, 
or renovated buildings; 
"(2) the 'cost' of construction includes the cost of architects' 
fees and acquisition of land in connection with construction, but 
does not include the cost of off 
site improvements ; 
"(3) a project for construction of a workshop maj include 
such construction as may be necessary to provide residential accom-
modations for use in connection with the rehabilitation of men-
tally retarded individuals or such other categories of handicapped 
individuals as the Secretary may designate. 
Training and re-
lated services 
defined. 
Trainees' allow-
Conditions. 
"WORKSHOP IMPROVEMENT 
"Grants for Projects for Training Services 
"SEC. 13. (a)(1) The Secretary is authorized, during the period 
beginning July 1, 1966, and ending June 30, 1971, to make grants to 
States and public and other nonprofit organizations and agencies to 
pay 90 per centum of the cost of projects for providing training serv-
ices to handicapped individuals in public or other nonprofit work-
shops and rehabilitation facilities. 
"(2) (A) Training services, for purposes of this subsection, shall 
include training in occupational skills; related services, including 
work evaluation, work testing, provision of occupational tools and 
equipment required by the individual to engage in such training, and 
job try 
outs; and payment of weekly allowances to individuals receiv-
ing such training and related services. 
"(B) Such allowances may not be paid to any individual for any 
period in excess of two years, and such allowances for any week shall 
not exceed $25 plus $10 for each of the individual's dependents, or 
$65, whichever is less. In determining the amount of such allowance 
for any individual, consideration shall be given to the individual's 
need for such an allowance, including any expenses reasonably attribut-
able to receipt of training services, the extent to which such an allow-
ance will help assure entry into and satisfactory completion of train-
ing, and such other factors, specified by the Secretary, as will promote 
such individual's fitness to engage in a remunerative occupation. 
"(3) The Secretary may make a grant for a project pursuant to this 
subsection only on his determination that (A) the purpose of such 
79 STAT.] 
PUBLIC LAW 89-333-NOV. 8, 1965 
1287 
project is to prepare handicapped individuals for a gainful occupation, 
(B) the individuals to receive training services under such project 
will include only individuals who have been determined to be suitable 
for and in need of such training services by the State agency or agen-
cies designated as provided in section 5(a) (1) of the State in which 
the workshop or rehabilitation facility is located, (C) the full range 
of training services will be made available to each such individual, 
to the extent of his need for such services, and (D) the project, includ-
ing the participating workshop or rehabilitation facility and the train-
ing services provided, meet such other requirements as he may pre-
scribe for carrying out the purposes of this subsection. 
"(4) Payments under this subsection may be made in installments, 
and in advance or by way of reimbursement, as may be determined 
by the Secretary, and shall be made on such conditions as he finds 
necessary to carry out the purposes of this subsection. 
"Workshop Improvement Grants 
"(b) (1) The Secretary is authorized to make grants to public or 
other nonprofit workshops during the fiscal year ending June 30,1966, 
and each of the four succeeding fiscal years to pay part of the cost 
of projects to analyze, improve, and increase their professional serv-
ices to the handicapped, their business management, or any other 
part of their operations affecting their capacity to provide employ-
ment and services for the handicapped, 
" (2) No part of any grant made pursuant to this subsection may be 
used to pay costs of acquiring, constructing, expanding, remodeling, 
or altering any building. 
"(3) Payments under this subsection may be made in installments, 
and in advance or by way of reimbursement, as may be determined by 
the Secretary, and shall be made on such conditions as he finds neces-
sary to carry out the purposes of this subsection. 
"Technical Assistance to Workshops 
"(c) (1) The Secretary is authorized, directly or by contract with 
State vocational rehabilitation agencies or experts or consultants or 
groups thereof, to provide technical assistance to worksliops. 
"(2) Any such experts or consultants shall, while serving pursuant 
to such contracts, be entitled to receive compensation at rates fixed 
by the Secretary, but not exceeding $100 per diem, including travel 
time, and while so serving away from their homes or regular places 
of business they may be allowed travel expenses, including per diem 
in lieu of subsistence, as authorized by section 5 of the Administrative 
Expense Act of 1946 (5 U.S.C. 73b-2) for persons in the Government 
service employed intermittently. 
"National Policy and Performance Council 
"(d) (1) There is hereby established in the Department of Health, 
Education, and Welfare a National Policy and Performance Council, 
consisting of twelve members;, not otherwise in the regular full-time 
employ of the United States, appointed by the Secretary without 
regard to the civil service laws. The Secretary shall from time to 
t ime appoint one of the members to serve as Chairman. 
The appointed 
membei-s shall be selected from among leaders in the vocational reha-
bilitation or workshop fields, State or local government, and business 
and from among representatives of related professions, labor leaders, 
and the general ):)ublic. Each appointed member shall hold office for 
Post, p. 1291. 
Payments. 
Restriction. 
Payments. 
Experts or con-
sultants. 
Compensation. 
60 Stat. 808; 
75 Stat. 339, 340. 
Membership. 
Term of office. 
1288 
PUBLIC LAW 89-333-NOV. 8, 1965 
[79 STAT. 
a term of four years, except that any member appointed to fill a 
\^acancy occurring prior to the expiration of the term for which his 
predecessor was appointed shall be appointed for the remainder of 
Fuch term, and except that, of the twelve members first appointed, 
three shall hold office for a term of three years, three shall hold office 
for a term of two years, and three shall hold office for a term of one 
year, as designated by the Secretary at the time of appointment. 
None 
of such twelve members shall be eligible for reappointment until a year 
has elapsed after the end of his preceding term. 
Duties. 
a (2) The Council shall (A) advise the Secretary with respect to 
the policies and criteria to be used by him in determining whether 
or not to make grants under subsection (a) ; (B) make recommenda-
tions to the Secretary with respect to workshop improvement and the 
extent to which this section is effective in accomplishing this purpose; 
and (C) perform such other services with respect to workshops as the 
Secretary may request. 
"(3) The Secretary shall make available to the Council such tech-
nical, administrative, and other assistance as it may require to carry 
out its functions. 
Compensation. 
u ^^^ Appointed members of the Council, while attending meetings 
or conferences thereof or otherwise serving on business of the Council, 
shall be entitled to receive compensation alt rates fixed by the Secre-
tary, but not exceeding $100 per day, including travel time, and while 
so serving away from their homes or regular places of business they 
may be allowed travel expenses, including per diem in lieu of sub-
sistence, as authorized by section 5 of the Administrative Expenses 
,60 Stat 808; 
Act of 1946 (5 U.S.C. 73b-2) for persons in the Government service 
employed intermittently, 
^^safety stand- 
u^^,^ rpj^^ Secretary shall make no grant under this section to any 
workshop or rehabilitation facility which does not comply with safety 
standards which the Secretary of Labor shall prescribe by regulation. 
Appropriation. 
"^f) There is authorized to be appropriated for making grants 
under subsection (a) and subsection (b) of this section $1,500,000 for 
the fiscal year ending June 30,1966, $9,000,000 for the fiscal year end-
ing June 30,1967, $14,000,000 for the fiscal year ending June 30,1968, 
and for each of the three succeeding fiscal years only such sums may 
be appropriated for making grants under subsection (a) and sub-
section (b) of this section as the Congress may hereafter authorize by 
Jaw. 
" W A I V E R 
o r 
STATEWIDENESS REQUIREMENTS FOR LOCALLY FINANCED 
ACTIVITY 
"SEC. 14. In the case of any activity which, in the judgment of the 
Secretary, is likely to assist in promoting the vocational rehabilitation 
of substantially larger numbers of handicapped individuals or the 
vocational rehabilitation of individuals with particular types of dis-
abilities in a State or States, the Secretary may waive compliance, 
with respect to vocational rehabilitation services furnished as part of 
29 ^us*c 35^' 
^^^^^ activity, with the requirement of section 5(a) (3) 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 him, but only if the non-Federal share of the cost of 
such vocational rehabilitation services is met from funds made avail-
able by a political subdivision of the State (including, to the extent 
permitted by such regulations, funds contributed to such subdivision 
by a private agency, organization, or individual). 
79 STAT. ] 
PUBLIC LAW 89-333-NOV. 8, 1965 
1289 
"NATIONAL COMMISSION ON ARCHITECTURAL BARRIERS TO REHABILITATION 
OF 
THE 
HANDICAPPED 
"SEC. 15. (a) There is hereby established in the Department of 
Membership. 
Health, Education, and Welfare a National Commission on Architec-
tural Barriers to Kehabilitation of the Handicapped, consisting of the 
Secretary, or his designee, who shall be Chairman, and not more than 
fifteen members appointed by the Secretary without regard to the 
civil service laws. The fifteen appointed members shall be representa-
tive of the general public, and of private and professional groups 
having an interest in and able to contribute to the solution of architec-
tural problems which impede the rehabilitation of the handicapped. 
"(b) The Commission shall (1) determine how and to what extent 
Duties. 
architectural barriers impede access to or use of facilities in buildings 
of all types by the handicapped; (2) determine what is being done, 
especially hj public and other nonprofit agencies and groups having 
an interest m and a capacity to deal with the problem, to eliminate 
such barriers from existing buildings and to prevent their incorpora-
tion into buildings constructed in the future; and (3) prepare plans 
and proposals for such further action as may be necessary to achieve 
the goal of ready access to and full use of facilities in buildings of all 
types by the handicapped, including proposals for bringing together 
in a cooperative effort, agencies, organizations, and groups already 
working toward that goal or whose cooperation is essential to effective 
and comprehensive action. 
"(c) The Commission is authorized to appoint such special advisory consSuants"'^ 
and technical experts and consultants, and to establish such com-
mittees, as may be useful in carrying out its functions, to make studies, 
and to contract for studies or demonstrations to assist it in performing 
its functions. 
The Secretary shall make available to the Commission 
such technical, administrative, and other assistance as it may require 
to carry out its functions. 
"(d) AppOiinted members of the Commission and special advisory 
compensation. 
and technical experts and consultants appointed pursuant to sub-
section (c) shall, while attending meetings or conferences thereof or 
otherwise serving on business of the Commission, be entitled to 
receive compensation at rates fixed by the Secretary, but not exceeding 
$100 per day, including travel time; and while so ser^nng away from 
their homes or regular places of business they may be allowed travel 
expenses, including per diem in lieu of subsistence as authorized by 
section 5 of the Administrative Expenses Act of 1946 (5 U.S.O. 
73b-2) for persons in the Government service employed intermittently. 75^stat^339°^34o 
"(e) The Commission shall, prior to January 1, 1968, submit a 
Reports to Prek-
final report of its activities, together with its recommendations for ^'^^"^ ^
"
"
^ ^'°"" 
further carrying out the purposes of this section, to the Secretary ^'^^^^" 
for transmission by him together with his recommendations to the 
President and then to the Congress. The Commission shall also 
prepare such interim reports as the Secretary may request. 
"(f) There is hereby authorized to be appropriated for the fiscal Appropriation. 
year ending June 30, 1966, and each of the two succeeding fiscal 
years, the sum of $250,000 for carrying out the purposes of this 
section." 
SPECIAL PROGRAMS A N D COMPREHENSIArE PLANNING TO EXPAND VOCA-
TIONAL REHABILITATION SERVICES 
S E C 4. (a) (1) Section 4(a) of the Vocational Rehabilitation Act 
(29 U.S.C. 34(a)) is amended by striking out "(1)" where it first 
appears therein and inserting it immediately after "the Secretary shall 
make grants". 
68 Stat. (555. 
49-850 0-66—84 
1290 
PUBLIC LAW 89-333-NOV. 8, 1965 
[79 STAT. 
71 Stat. 488. 
29 use 34. 
Restriction. 
Restriction. 
68 Stat. 65 6. 
Effective date. 
(2) Clause (2) of section 4(a) of such Act is amended to read: 
"(2) (A) to States and public and other nonprofit organizations and 
agencies for paying part of the cost of planning, preparing for, and 
initiating special programs to expand vocational rehabilitation serv-
ices in those States where, in the judgment of the Secretary, such 
action holds promise of yielding a substantial increase in the number 
of persons vocationally rehabilitated, except that sums appropriated 
for any fiscal year beginning after June 30, 1970, shall not be avail-
able for grants under this clause, and sums appropriated for any fiscal 
year ending prior to July 1, 1970, for grants under this clause shall 
remain available for such grants until the close of June 30, 1971, and 
(B) to States (but not to exceed $100,000 for any State for any fiscal 
year) to meet the cost of planning for the development of a compre-
hensive vocational rehabilitation program in each State, with a view to 
achieving the orderly development of vocational rehabilitation services 
in the State (including vocational rehabilitation services provided by 
private nonprofit agencies), and making vocational rehabilitation 
services available to all handicapped individuals in the State by July 1, 
1975, except that sums appropriated for any fiscal year beginning 
prior to July 1,1965, or ending after June 30, 1967, shall not be avail-
able for grants under this clause, and sums appropriated for the period 
beginning July 1,1965, and ending June 30,1967, for grants under this 
clause shall remain available for such grants until the close of June 30, 
1968." 
(3) Paragraph (2) of section 4(d) of such Act is amended by 
inserting "(other than subsection (a) (2))" after "under this section" 
where it first appears therein, and by striking out "under this section" 
where it next appears therein and inserting in lieu thereof "there-
under". 
(b) The amendment made by subsection (a) shall be effective with 
respect to fiscal years beginning after June 30, 1965. 
71 Stat.474; 
Post, p. 1291. 
RAISING OF LIMITATIONS ON TRAINING 
SEC. 5. (a) Section 4(a) of the Vocational Eehabilitation Act (29 
U.S.C. 34(a)) is amended by striking out the second sentence and 
inserting in lieu thereof: "Grants for training and traineeships under 
clause (1) of this subsection may include training and traineeships 
in physical medicine and rehabilitation, physical therapy, occupational 
therapy, speech pathology and audiology, rehabilitation nursing, 
rehabilitation social w^ork, prosthetics and orthotics, rehabilitation psy-
chology, rehabilitation counseling, recreation for the ill and handi-
capped, and other specialized fields contributing to vocational rehabili-
tation. 
No grant shall be made under clause (1) or clause (2) of this 
subsection for furnishing to an individual any one course of study 
extending for a period in excess of four years". 
(b) Section 7(a) (3) of such Act (29IT.S.C. 37(a) (3)) is amended 
by striking out all that follows "any one course of study" and insert-
ing in lieu thereof "for a period in excess of four years, and such 
training, instruction, fellowships, and traineeships may be in the 
fields of physical medicine and rehabilitation, physical therapy, occu-
pational therapy, speech pathology and audiology, rehabilitation 
nursing, rehabilitation social work, prosthetics and orthotics, rehabili-
tation psychology, rehabilitation counseling, recreation for the ill 
and handicapped, and other specialized fields contributing to voca-
tional rehabilitation; and". 
79 STAT. ] 
PUBLIC LAW 89-333-NOV. 8, 1965 
1291 
DELETION OF ECONOMIC NEED AS REQUIREMENT FOR SERVICES 
Stat. 559. 
SEC. 6. (a) Section 11(a) of the Vocational Kehabilitation Act 
(29 U.S.C. 41) is amended by striking out "in the case of any such 
individual found to require financial assistance with respect thereto,". 
(b) Paragraph (6) of section 11(a) of such Act is amended by 
striking out "(except where necessary in connection with determina-
tions of eligibility or nature or scope of services)". 
RESEARCH AND INFORMATION 
SEC. 7. (a) Effective July 1, 1965, section 7(a) of the Vocational 
Rehabilitation Act (29 U.S.C. 37(a)) is amended by deleting para-
graph (1); by redesignating paragraphs (2), (3), and (4) as para-
graphs (1), (2), and (3), respectively; and by striking out, in the 
paragraph herein redesignated as paragraph (3), "as to the studies, 
investigations, demonstrations, and reports referred to in paragraph 
(1) and other matters". 
(b) Effective July 1, 1965, section 7 of such Act (20 U.S.C. 37) is 
amended by adding at the end thereof the following new subsection: 
"(c) The Secretary is authorized, directly or by contract— 
"(1) to conduct research, studies, investigations, and demon-
strations, and to make reports, with respect to abilities, aptitudes, 
and capacities of handicapped individuals, development of their 
potentialities, and their utilization in gainful and suitable employ-
ment; and 
"(2) to plan, establish, and operate an information service, to 
make available to agencies, organizations, and other groups and 
persons concerned with vocational rehabilitation, information on 
rehabilitation resources useful foi various kinds of disability and 
on research and the results thereof and on other matters which 
may be helpful in promoting the rehabilitation of handicapped 
individuals and their greater utilization in gainful and suitable 
employment. 
"(d) There are authorized to be appropriated for the fiscal year 
Appropriation. 
ending June 30, 1966, and each succeeding fiscal year, such sums as 
may be necessary for carrying out the purposes of this section." 
FLEXIBILITY IN STATE ADMINISTRATION 
SEC. 8. (a) Subsection (a) of section 5 of the Vocational Rehabili-
tation Act (29 U.S.C. 35(a)) is amended by striking out paragraphs 
(1) and (2) and inserting in lieu thereof the following: 
"(1) (A) designate a State agency as the sole State agency to 
administer the plan, or to supervise its administration in a politi-
cal subdivision of the State by a sole local agency of such political 
subdivision, except that where under the State's law the State 
blind commission, or other agency which provides assistance or 
services to the adult blind, is authorized to provide them voca-
tional rehabilitation services, such commission or agency may be 
designated as the sole State agency to administer the part of the 
plan under which vocational rehabilitation services are provided 
for the blind (or to supervise the administration of such part in a 
political subdivision of the State by a sole local agency of such 
political subdivision) and a separate State agency may be desig-
nated as the sole State agency with respect to the rest of the 
State plan; 
"(B) provide that the State agency so designated to administer 
or supervise the administration of the State plan, or (if there are 
two State agencies designated under subparagraph (A)) so much 
1292 
PUBLIC LAW 89-333-NOV. 8, 1965 
[79 STAT. 
of the State plan as does not relate to services for the blind, shall 
be (i) a State agency primarily concerned with vocational reha-
bilitation, or vocational and other rehabilitation, of disabled 
individuals, (ii) the State agency administering or supervising 
the administration of education or vocational education in the 
State, or (iii) a State agency which includes at least two other 
major organizational units each of which administers one or more 
of the major public education, public health, public welfare, or 
labor programs of the State; 
"(2) provide, except in the case of agencies described in para-
graph a ) ( B ) ( i ) -
"(A) that the State agency designated pursuant to para-
graph (1) (or each State agency if two are so designated) 
shall include a vocational rehabilitation bureau, division, or 
other organizational unit which (i) is primarily concerned 
with vocational rehabilitation, or vocational and other reha-
bilitation, of disabled individuals, and is responsible for the 
vocational rehabilitation program of such State agency, (ii) 
has a full-time director, and (iii) has a staff employed on 
such rehabilitation work of such organizational unit all or 
substantially all of whom are employed full time on such 
work; and 
" (B) (i) that such unit shall be located at an organizational 
level and shall have an organizational status within such 
State agency comparable to that of other major organizational 
units of such agency or (ii) in the case of an agency described 
in paragraph (1) (B) (ii), either that such imit shall be so 
located and have such status or that the director of such unit 
shall be the executive officer of such State agency; except 
that, in the case of a State which has designated only one 
State agency pursuant to paragraph (1), such State may, if 
it so desires, assign responsibility for the part of the plan 
under which vocational rehabilitation services are provided 
for the blind to one organizational unit of such agency and 
assign responsibility for the rest of the plan to another orga-
nizational unit of such agency, with the provisions of this 
paragraph (2) applying separately to each of such units." 
Effective date. 
^|^^ The amendments made by subsectiou (a) shall become effective 
July 1, 1967, except that, in the case of any State, such amendments 
shall be effective on such earlier date (on or after the date of enactment 
of this Act) as such State has in effect an approved plan meeting the 
requirements of the Vocational Rehabilitation Act as amended by 
subsection (a). 
SPECIAL SERVICES FOR T H E BLIND AND T H E DEAF 
SEC. 9. So much of subsection (a) of section 11 of the Vocational 
68 Stat. 659. 
Rehabilitation Act (29 U.S.C. 41 (a)) as precedes paragraph (1) is 
amended by inserting after the second semicolon "provision, in the 
case of handicapped individuals, of reader services for such indi-
viduals who are blind and of interpreter services in the case of such 
individuals who are deaf;". 
SERVICES TO DETERMINE REHABILITATION POTENTIAL OF RECIPIENT 
SEC. 10. (a) Subsection (b) of section 11 of the Vocational Reha-
bilitation Act (29 U.S.C. 41 (b)) is amended by inserting before the 
period at the end thereof: "; except that nothing in the preceding 
provisions of this subsection or in subsection (a) shall be construed 
to exclude from 'vocational rehabilitation services' any goods or serv-
79 STAT. ] 
PUBLIC LAW 89-333-NOV. 8, 1965 
1293 
ices provided to an individual who is under a physical or mental 
disability which constitutes a substantial handicap to employment, 
during the period, not in excess of eighteen months in the case 
of any individual who is mentally retarded or has a disability 
designated for this purpose by the Secretary, or six months in 
the case of an individual with any other disability, determined 
(in accordance with regulations of the Secretary) to be necessary for, 
and which are provided for the purpose of, ascertaining whether it 
may reasonably be expected that such individual will be rendered 
fit to engage in a remunerative occupation through the provision of 
goods and services described in subsection (a), but only if the goods 
^^ ^tat. 659. 
or services provided to him during such period would constitute 
'vocational rehabilitation services' if his disability were of such a 
nature that he would be a 'handicapped individual' under such pre-
ceding provisions of this subsection". 
(b) The amendment made by subsection (a) shall apply in the case 
Applicability. 
of expenditures made after June 30,1965, under a State plan approved 
under the Vocational Rehabilitation Act. 
MANAGEMENT SERVICES AND SUPERVISION OF BUSINESS ENTERPRISES OF 
T H E 
HANDICAPPED 
SEC. 11. Effective July 1, 1966, section 11(a) (7) of the Vocational 
Rehabilitation Act (29 U.S.C. 41(a)(7)) is amended to read as 
follows: 
"(7) in the case of any type of small business operated by the 
severely handicapped the operation of which can be improved 
by management services and supervision provided by the State 
agency, the provision of such services and supervision, alone or 
together with the acquisition by the State agency of vending 
stands or dther equipment and initial stocks and supplies; and". 
TECHNICAL 
AMENDMENTS 
SEC. 12. (a) Section 4(d) (3) of the Vocational Rehabilitation Act 
(29 U.S.C. 34(d) (3)) is amended to read as follows: 
"(3) Appointed members of the Council, while attending meetings 
National Advis-
or conferences thereof or otherwise serving on business of the Council bers. 
or at the request of the Secretary, shall be entitled to receive com-
pensation at rates fixed by the Secretary, but not exceeding $100 per 
day, including travel time, and while so serving away from their 
homes or regular places of business they may be allowed travel 
expenses, including per diem in lieu of subsistence, as authorized by 
section 5 of the Administrative Expenses Act of 1946 (5 U.S.C. 73b-
2) for persons in the Government service employed intermittently." 75^star*-!39°^34o 
(b) (1) The last sentence of section 4(a), the second sentence of sec-
tion4(d) (l),the firstsentence of section 4rd) (2),section 5(a) (4), the 
29 use 35. 
paragraphs of section 7(a) redesignated (by section 7 of this Act) as 
paragraphs (1) and (3), the portion of section 11(a) preceding para-
graph (1), paragraph (8) of section 11(a), section 11(b), and so 
much of section 11(c) as precedes paragraph (1), of such Act, are 
each amended by striking out "physically handicapped individuals" 
and inserting in lieu thereof "handicapped individuals". 
(2) The third sentence of section 4(d) (1) of such Act is amended 
by striking out "physically handicapped" and inserting in lieu thereof 
"handicapped". 
(3) Section 8 of such Act is amended by striking out "Physically 
Handicapped" and inserting in lieu thereof "Handicapped" and by 
striking out "handicapped individuals" and inserting in lieu thereof 
"individuals". 
29 u s e 38. 
1294 
PUBLIC LAW 89-334-NOV. 8, 1965 
[79 STAT. 
68 Stat. 660. 
29 u s e 41. 
(c) Section 11(d) of such Act is amended by striking out "severely 
handicapped individuals" and inserting in lieu thereof "the severely 
handicapped". 
(d) Subsections (a), (b), and (d) of section 11 of such Act are 
amended by striking out "remunerative" and inserting in lieu thereof 
"gainful". 
FEDERAL SHARE 
SEC. 13. (a) Effective for the fiscal year ending June 30, 1966, sec-
tion 11 (i) of the Vocational Rehabilitation Act is amended to read as 
follows: 
"(i) The term 'Federal share' for any State shall be equal to its 
Federal share as determined hereunder for the fiscal year ending 
June 30, 1965, plus one-half the difference between such share and 75 
per centum." 
(b) Effective for fiscal years beginning after June 30, 1966, such 
section 11 (i) is amended to read as follows: 
" (i) The term 'Federal share' means 75 per centum." 
78 Stat. 221. 
PRESIDENT S COMMITTEE ON NATIONAL EMPLOYMENT OF THE HANDICAPPED 
SEC. 14. The joint resolution entitled "Joint resolution authorizing 
an appropriation for the work of the President's Committee on Na-
tional Employ the Physically Handicapped Week", approved July 11, 
1949 (63 Stat. 409), as amended, is amended by striking out "$400,000" 
and inserting in lieu thereof "$500,000". 
Approved November 8, 1965. 
November 8, 1965 
[S. 2542] 
Public Law 89-334 
AN ACT 
To Miiieiul tJie Small Business Act. 
Revolving fund. 
Ante, 
p. 484. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled.. That section 4(c) of 
the Small Business Act is amended by striking out "$1,721,000,000" 
and inserting in lieu thereof "$1,841,000,000". 
Approved"November 8, 1965. 
Public Law 89-335 
November 
[H. R. 
Lexingti 
Mass. 
Display 
flag. 
56 Stat. 
8, 1965 
5493] 
on. 
of U.S. 
1074. 
AN ACT 
To provide that the flag of the United States of America may be flown for 
tweuty-four hours of each day in Lexington, Massachusetts. 
Be it enacted by the Senate and House of Representatives 
of the 
United States of America in Congress assembled., That, notwithstand-
ing any rule or custom pertaining to the display of the flag of the 
United States of America as set forth in the joint resolution entitled 
"Joint resolution to codify and emphasize existing rules and customs 
pertaining to the display and use of the flag of the United States of 
America", approved June 22,1942 (36 U.S.C. 171-178), the flag of the 
United States of America may be flown for twenty-four hours of each 
day on the green of the toMii of Lexington, Massachusetts. The flag 
may not be flown pursuant to the authority contained in this Act 
during the hours from sunset to sunrise unless it is illuminated. 
Approved November 8, 1965.