[Congressional Record Volume 144, Number 2 (Wednesday, January 28, 1998)]
[Senate]
[Pages S114-S179]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
By Mrs. FEINSTEIN:
S. 1576. A bill to amend the Clean Air Act to permit the exclusive
application of California State regulations regarding reformulated
gasoline in certain areas within the State; to the Committee on
Environment and Public Works.
THE MTBE CLEAN AIR ACT AMENDMENT ACT OF 1998
Mrs. FEINSTEIN. Mr. President, I rise today to introduce legislation
which will amend the Clean Air Act to allow California to operate its
own reformulated gasoline program, which is stricter than the federal
program and meets the air quality requirements set forth in the 1990
Clean Air Act.
What the bill does
The bill provides that if a state's reformulated gasoline rules
achieve equal or greater emissions reductions than federal regulation,
that state's rules will take precedence. This works to exempt
California from overlapping federal oxygenate requirements.
The bill is the Senate version of legislation introduced last year in
the House by Congressman Brian Bilbray (R-San Diego) and cosponsored by
46 members of the California Congressional delegation.
The bill applies only to states which have received waivers under
Section 209(b)(1) of the Clean Air Act, for which California is the
only state currently eligible for such a waiver.
By exempting California from the oxygenate requirement, this
legislation will give gasoline manufacturers the flexibility to reduce
or even eliminate the use of gasoline oxygenates, such as methyl
tertiary butyl ether (MTBE)--which has been detected in alarming
amounts in California groundwater.
The legislation allows the companies who serve California's gasoline
needs to continue to adopt better methods of producing California
Cleaner Burning gasoline, without being restricted by oxygenate
requirements.
california air quality history
California's efforts to improve air quality predate similar federal
efforts, and have achieved marked success in reducing toxic emission
levels, resulting in the cleanest air Californians have seen in
decades. This trend will continue with the passage of this bill.
Since the introduction of the California Cleaner Burning Gasoline
program, there has been a 300 ton per day decrease in ozone forming
ingredients found in the air. This is the emission reduction equivalent
of taking 3.5 million automobiles off the road. California reformulated
gasoline reduces smog forming emissions from vehicles by 15 percent.
The state has also has seen a marked decrease in first stage smog
alerts, during which residents with respiratory ailments are encouraged
to stay indoors.
California Environmental Protection Agency Chairman John Dunlop, who
supports this legislation, says:
. . . our program has proven (to have) a significant effect
on California's air quality. Following the introduction of
California's gasoline program in the spring of 1996, monitor
levels of ozone . . . were reduced by 10 percent in Northern
California, and by 18 percent in the Los Angeles area.
Benzene levels (have decreased) by more than 50 percent.
Although California has made great progress in decreasing the amount
of toxins in the air, the overlap of federal regulations, on top of the
strict state regulations, does not allow the state much flexibility in
the design and implementation of its reformulated fuels program.
This inflexibility makes it difficult for gasoline producers to
respond effectively to unforeseen problems associated with their
product. Such is the case with the oxygenate MTBE leaking into
California groundwater.
Refiners are bound by federal law to include an oxygenate in their
gasoline, even if they can make gasoline which meets Clean Air Act
emissions requirements without its use.
Thus, the need for the legislation is twofold--to streamline
overlapping federal and state regulations, and to allow gasoline
manufacturers the flexibility to make California Cleaner Burning
Gasoline without oxygenated fuels.
Federal reformulated gasoline requirement history
Federal reformulated gasoline, and the oxygenate requirement included
in it, came as a response to the worsening air quality of many American
cities.
For many years major cities, including San Diego, Sacramento and Los
Angeles, were facing serious pollution problems due to increasing
amounts of smog and ozone in the air.
As the air quality worsened, people around the country began
experiencing more frequent respiratory illnesses, and increased asthma
attacks due to the toxins in the air.
In 1990, Congress recognized the gravity of this national problem and
amended the Clean Air Act to ensure that our nation's most smoggy and
polluted areas were the beneficiaries of tougher motor vehicle emission
control standards.
One of these amendments directed the United States Environmental
Protection Agency (EPA) to adopt a federal reformulated gasoline
program for urban areas with the most serious pollution problems.
The federal reformulated gasoline program mandated that this new
cleaner burning gasoline reduce emissions of benzene, a known human
carcinogen, and other toxins.
The federal program also mandated that this reformulated gasoline
contain 2 percent by weight oxygenate, which functions to make the gas
burn more completely and efficiently.
california reformulated gasoline
By December 1994, the oxygenate requirement went into effect. In
California, this mandate affected three cities in particular, where the
air quality was the worst.
Reformulated gasoline was required to be sold during the winter
season in the greater Los Angeles, San Diego and Sacramento regions.
This gasoline contained 11 percent MTBE, in order to meet the federal
oxygenate requirement.
While federal Clean Air Act regulations were being promulgated, the
California Air Resources Board developed even tougher and more
stringent environmental standards. However, these standards permitted
more flexibility in how they could be achieved by California's gasoline
manufacturers.
By establishing a State Implementation Plan which restricts eight
different properties that affect emissions of toxic air pollutants and
ozone forming compounds, California's stricter regulations were
approved by the U.S. EPA and are federally enforceable.
Additionally, California regulations contain an innovative predictive
model which is based on the analysis of a large number of vehicle
emission test studies. Refiners have the option of using this model to
produce reformulated gasoline as long as its usage results in
equivalent or greater reductions in emissions than federal regulations.
California EPA states that the predictive model ``shows that a
different formulation will achieve equivalent or better air quality
benefits.''
While the amendments to the Clean Air Act have helped reduce
emissions throughout the United States, they imposed limitations on the
level of flexibility that U.S. EPA can grant to California.
The overlapping applicability of both the federal and state
reformulated gasoline rules has actually prohibited gasoline
manufacturers from responding as effectively as possible to unforeseen
problems with their product. This bill addresses exactly this type of
situation.
This legislation rewards California for its unique and effective
approach in solving its own air quality problems by permitting it an
exemption from federal oxygenate requirements as long as tough
environmental standards are enforced.
[[Page S115]]
mtbe contamination of california groundwater
This legislation will allow refiners to address the problems that
have occurred with the use of MTBE as it has leaked into groundwater
supplies.
Such problems were certainly not anticipated during the drafting of
these amendments, and therefore only exemplifies the need for a
California exemption to this requirement.
MTBE is a highly soluble organic compound which moves quickly through
soil and gravel, therefore posing a more rapid threat to aquifers than
the other constituents of gasoline when leaks occur. MTBE is easily
traced, but very difficult and expensive to clean up.
Higher quantities of MTBE in drinking water has a smell similar to
turpentine and a taste like paint thinner.
Although we do not have all of the data we need to determine the
potential damage of MTBE to our water and our health, we do know that
it is increasingly a problem for California:
MTBE has been detected in drinking water supplies in a number of
cities including Santa Monica, Riverside, Anaheim, Los Angeles and San
Francisco;
MTBE has also been detected in numerous California reservoirs
including Lake Shasta in Redding, San Pablo and Cherry reservoirs in
the Bay Area, and Coyote and Anderson reservoirs in Santa Clara;
The largest contamination occurred in the city of Santa Monica, which
lost 75% of its ground water supply as a result of MTBE leaking out of
shallow gas tanks beneath the surface;
MTBE has been discovered in publicly owned wells approximately 100
feet from City Council Chamber in South Lake Tahoe;
In Glennvile, California, Near Bakersfield, MTBE levels have been
detected in groundwater as high as 190,000 parts per billion--
dramatically exceeding the California Department of Health advisory of
35 parts per billion; and
250 underground fuel tank sites have leaked MTBE in Santa Clara
County not far from water wells used by the residents of San Jose.
In the face of mounting evidence of extensive MTBE contamination in
California groundwater, several gasoline manufacturers, including
Chevron and Tosco (Union 76), have made it clear they would like to
have the flexibility to use only the amount and type of oxygenate
necessary to continue to meet the environmental specifications of clean
burning gasoline.
Many manufacturers believe that it is possible to meet California's
more stringent clean air standards using reduced amounts of, or in some
cases, no oxygenate in their gasolines.
In a recent letter to me, Chevron chairman Ken Derr expressed
his belief that while he believes MTBE is safe if handled properly, his
company is exploring other options. He says:
(Chevron has) taken another look at the extensive body of
data that relates to fuel composition to vehicle emissions
and have concluded that it may be possible to make more
gasoline without MTBE and still meet California's cleaner
burning gasoline standards.
If California refiners can meet the stricter state clean air standard
while reducing or eliminating the use of a chemical that is
contaminating California water, it makes good sense to give them the
flexibility they need to solve the problem.
By amending the Clear Air Act to waive the requirement for oxygenates
in California, which already has in place its own stricter standards,
this legislation does not detract in any way from the gains in emission
reductions mandated in the Clear Air Act. It will simply allow for
companies like Chevron to meet Clean Air Act requirements, while
maximizing the advantages of increased flexibility in order to respond
more efficiently and effectively to any unforseen problems encountered
in the production of California cleaner burning gasoline.
If exempting California from the oxygenate requirement meant
weakening the Clear Air Act in any way, I would be the first person to
stand up and lead the battle against such an effort.
This bill does not weaken the Clear Air Act, but instead is a step in
the right direction, towards sound environmental policy.
This narrowly-targeted legislation simply makes sense. With this
bill, California is once again taking the initiative to lead the way in
ensuring the protection of the air we breathe, and the water we drink.
By allowing the companies that supply our state's gasoline to utilize
good science and sound environmental policy, we can achieve the goals
set forth by the Clear Air Act, without sacrificing California's clean
water.
In short, when we pass this legislation, we will take another step
forward in ensuring that protecting our air qualify does not come at
the expense of safeguarding our water.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1576
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. CALIFORNIA REFORMULATED GASOLINE RULES.
Section 211(c)(4)(B) of the Clean Air Act (42 U.S.C.
7545(c)(4)(B)) is amended by adding at the end the following:
``If any such State that has received a waiver under section
209(b)(1) promulgates reformulated gasoline rules for any
covered area of the State (as defined in subsection (k)(10)),
the rules shall apply in the area in lieu of the requirements
of subsection (k) if the State rules will achieve equivalent
or greater emission reductions than would result from the
application of the requirements of subsection (k) in the case
of the aggregate mass of emissions of toxic air pollutants
and in the case of the aggregate mass of emissions of ozone-
forming compounds.''.
______
By Mr. CHAFEE (for himself, Mr. Hatch, Ms. Snowe, Mr. Roberts,
Mr. Specter and Ms. Collins):
S. 1577. A bill to amend the Internal Revenue Code of 1986 to provide
additional tax relief to families to increase the affordability of
child care, and for other purposes; to the Committee on Finance.
THE CARING FOR CHILDREN ACT
Mr. CHAFEE. Mr. President, I am pleased today to introduce the Caring
for Children Act, legislation to help all families with their child
care needs.
I want to thank my colleagues who have worked so hard to put this
bill together. Senator Hatch, who was a leader in the development of
the child care block grant, and is always a stalwart supporter of
children. Senator Snowe, who has worked on this issue for many years.
Senator Roberts, who has taken an active interest in this issue.
Senator Specter, who made an enormous contribution to the development
of this bill. And Senator Susan Collins, who we are very fortunate to
have on our child care proposal.
Last night, in his State of the Union Address to the nation,
President Clinton issued a challenge to Congress to develop child care
legislation in a bipartisan manner with the Administration. Well, that
is exactly what we are doing today.
Our proposal is straightforward and far-reaching. It makes the
current child care credit more equitable for lower and middle income
families. And, for the first time, makes the credit available to
families where one parent stays at home to care for the children. That
is a critical step and an important change for families across America.
Raising children in today's world is a true challenge. In many
families, both parents must work in order to support the family. Often,
the child care expenses consume all or most of one parent's income. How
often do we hear the refrain, particularly from women, that after they
pay for day care, there is little or nothing left of their wages.
Another common complaint is from parents who desperately want to stay
home and raise their children themselves--especially in those very
critical, early years of childhood--but who simply cannot afford to
forego that second income.
The legislation we are introducing today responds to both of these
concerns. We believe that parents should make their own decisions about
who is going to care for their children. The government and the tax
code should not be promoting one choice over another.
By making more of the existing child care tax credit available to
lower and middle income families, and making it available also to
families where one parent stays at home, we are sending the message
that the choice is yours, and we support your choice.
Our bill makes several changes to the existing dependent care tax
credit.
[[Page S116]]
First, the maximum credit percentage is increased from 30 percent to 50
percent to provide more benefits to those most in need. Second, the
income level at which the maximum credit begins to be reduced is moved
from $10,000 to $30,000, so that more lower-income families will
qualify for the maximum amount of assistance. Third, we propose to
completely phase out the credit for wealthier families. Finally,
families where one spouse stays at home to care for the children will
be eligible for a credit similar to the one they would receive if both
parents were working outside the home and the child was in daycare.
We also acknowledge that we cannot solve the entire child care
problem through the tax code alone. Many low-income families do not
have taxable income, and therefore cannot benefit from a tax credit.
The Child Care and Development Block Grant (CCDBG) provides critical
funding to help these lower-income families--and I have been a strong
supporter of the program. Recognizing the critical role CCDBG plays in
subsidizing daycare for low-income families in the states, our proposal
doubles the block grant over a five-year period.
Of course, the problem with child care is not limited to just
affordability. Many parents cannot find an available child care slot.
Our proposal addresses this issue of accessibility by providing a tax
credit to businesses to build or renovate on or near-site child care
centers for their employees.
Finally, there is the issue of quality daycare. Parents cannot be
productive in the workplace if they are constantly worrying about the
health and safety of their children in daycare. We have all read the
horrifying stories in the newspapers about daycare facilities that are
unsafe or unsanitary, about the poor record of enforcement of standards
in many states.
while we acknowledge that the federal government should not be
setting standards for daycare providers, we do believe the states
should set at least minimum health and safety standards and enforce
them rigorously. Our legislation beefs up this enforcement by rewarding
states with a good enforcement record and penalizing those with poor
records.
I am very proud of this legislation, and proud that this group was
able to come together and produce this initiative. Child care is a
problem that must be solved, and we are committed to doing that. I look
forward to working with the President and my colleagues in the Congress
to find workable, affordable solutions for all families.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1577
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Caring for
Children Act''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--TAX RELIEF TO INCREASE CHILD CARE AFFORDABILITY
Sec. 101. Expansion of dependent care tax credit.
Sec. 102. Promotion of dependent care assistance programs.
Sec. 103. Allowance of credit for employer expenses for child care
assistance.
TITLE II--ENCOURAGING QUALITY CHILD CARE
Subtitle A--Dissemination of Information About Quality Child Care
Sec. 201. Collection and dissemination of information.
Sec. 202. Grants for the development of a child care training
infrastructure.
Sec. 203. Authorization of appropriations.
Subtitle B--Increased Enforcement of State Health and Safety Standards
Sec. 211. Enforcement of State health and safety standards.
Subtitle C--Removal of Barriers to Increasing the Supply of Quality
Child Care
Sec. 221. Increased authorization of appropriations for the Child Care
and Development Block Grant Act.
Sec. 222. Small business child care grant program.
Sec. 223. GAO report regarding the relationship between legal liability
concerns and the availability and affordability of child
care.
Subtitle D--Quality Child Care Through Federal Facilities and Programs
Sec. 231. Providing quality child care in Federal facilities.
TITLE I--TAX RELIEF TO INCREASE CHILD CARE AFFORDABILITY
SEC. 101. EXPANSION OF DEPENDENT CARE TAX CREDIT.
(a) Percentage of Employment-Related Expenses Determined by
Taxpayer Status.--Section 21(a)(2) of the Internal Revenue
Code of 1986 (defining applicable percentage) is amended to
read as follows:
``(2) Applicable percentage defined.--For purposes of
paragraph (1), the term `applicable percentage' means 50
percent reduced (but not below zero) by 1 percentage point
for each $1,500, or fraction thereof, by which the
taxpayers's adjusted gross income for the taxable year
exceeds $30,000.''.
(b) Minimum Credit Allowed for Stay-at-Home Parents.--
Section 21(e) of the Internal Revenue Code of 1986 (relating
to special rules) is amended by adding at the end the
following:
``(11) Minimum credit allowed for stay-at-home parents.--
Notwithstanding subsection (d), in the case of any taxpayer
with one or more qualifying individuals described in
subsection (b)(1)(A) under the age of 4 at any time during
the taxable year, such taxpayer shall be deemed to have
employment-related expenses with respect to such qualifying
individuals in an amount equal to the greater of--
``(A) the amount of employment-related expenses incurred
for such qualifying individuals for the taxable year
(determined under this section without regard to this
paragraph), or
``(B) $150 for each month in such taxable year during which
such qualifying individual is under the age of 4.''.
(c) Effective Date.--The amendments made by this section
apply to taxable years beginning after December 31, 1998.
SEC. 102. PROMOTION OF DEPENDENT CARE ASSISTANCE PROGRAMS.
(a) Promotion of Dependent Care Assistance Programs.--The
Secretary of Labor shall establish a program to promote
awareness of the use of dependent care assistance programs
(as described in section 129(d) of the Internal Revenue Code
of 1986) by employers.
(b) Authorization of appropriations.--There is authorized
to be appropriated to carry out the program under paragraph
(1) $1,000,000 for each of fiscal years 1999, 2000, 2001, and
2002.
SEC. 103. ALLOWANCE OF CREDIT FOR EMPLOYER EXPENSES FOR CHILD
CARE ASSISTANCE.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 of the Internal Revenue Code of 1986 (relating to
business related credits) is amended by adding at the end the
following:
``SEC. 45D. EMPLOYER-PROVIDED CHILD CARE CREDIT.
``(a) Allowance of Credit.--For purposes of section 38, the
employer-provided child care credit determined under this
section for the taxable year is an amount equal to 20 percent
of the qualified child care expenditures of the taxpayer for
such taxable year.
``(b) Dollar Limitation.--The credit allowable under
subsection (a) for any taxable year shall not exceed
$100,000.
``(c) Definitions.--For purposes of this section--
``(1) Qualified child care expenditure.--
``(A) In general.--The term `qualified child care
expenditure' means any amount paid or incurred--
``(i) to acquire, construct, rehabilitate, or expand
property--
``(I) which is to be used as part of a qualified child care
facility of the taxpayer,
``(II) with respect to which a deduction for depreciation
(or amortization in lieu of depreciation) is allowable, and
``(III) which does not constitute part of the principal
residence (within the meaning of section 1034) of the
taxpayer or any employee of the taxpayer,
``(ii) for the operating costs of a qualified child care
facility of the taxpayer, including costs related to the
training of employees,
``(iii) under a contract with a qualified child care
facility to provide child care services to employees of the
taxpayer, or
``(iv) under a contract to provide child care resource and
referral services to employees of the taxpayer.
``(2) Exclusion for amounts funded by grants, etc.--The
term `qualified child care expenditure' shall not include any
amount to the extent such amount is funded by any grant,
contract, or otherwise by another person (or any governmental
entity).
``(3) Qualified child care facility.--
``(A) In general.--The term `qualified child care facility'
means a facility--
``(i) the principal use of which is to provide child care
assistance, and
``(ii) which meets the requirements of all applicable laws
and regulations of the State or local government in which it
is located, including, but not limited to, the licensing of
the facility as a child care facility.
Clause (i) shall not apply to a facility which is the
principal residence (within the meaning of section 1034) of
the operator of the facility.
``(B) Special rules with respect to a taxpayer.--A facility
shall not be treated as a qualified child care facility with
respect to a taxpayer unless--
[[Page S117]]
``(i) enrollment in the facility is open to employees of
the taxpayer during the taxable year,
``(ii) the facility is not the principal trade or business
of the taxpayer unless at least 30 percent of the enrollees
of such facility are dependents of employees of the taxpayer,
and
``(iii) the use of such facility (or the eligibility to use
such facility) does not discriminate in favor of employees of
the taxpayer who are highly compensated employees (within the
meaning of section 414(q)).
``(d) Recapture of Acquisition and Construction Credit.--
``(1) In general.--If, as of the close of any taxable year,
there is a recapture event with respect to any qualified
child care facility of the taxpayer, then the tax of the
taxpayer under this chapter for such taxable year shall be
increased by an amount equal to the product of--
``(A) the applicable recapture percentage, and
``(B) the aggregate decrease in the credits allowed under
section 38 for all prior taxable years which would have
resulted if the qualified child care expenditures of the
taxpayer described in subsection (c)(1)(A) with respect to
such facility had been zero.
``(2) Applicable recapture percentage.--
``(A) In general.--For purposes of this subsection, the
applicable recapture percentage shall be determined from the
following table:
The applicable
recapture
``If the recapture evpercentage is:
Years 1-3....................................................100
Year 4........................................................85
Year 5........................................................70
Year 6........................................................55
Year 7........................................................40
Year 8........................................................25
Years 9 and 10................................................10
Years 11 and thereafter........................................0.
``(B) Years.--For purposes of subparagraph (A), year 1
shall begin on the first day of the taxable year in which the
qualified child care facility is placed in service by the
taxpayer.
``(3) Recapture event defined.--For purposes of this
subsection, the term `recapture event' means--
``(A) Cessation of operation.--The cessation of the
operation of the facility as a qualified child care facility.
``(B) Change in ownership.--
``(i) In general.--Except as provided in clause (ii), the
disposition of a taxpayer's interest in a qualified child
care facility with respect to which the credit described in
subsection (a) was allowable.
``(ii) Agreement to assume recapture liability.--Clause (i)
shall not apply if the person acquiring such interest in the
facility agrees in writing to assume the recapture liability
of the person disposing of such interest in effect
immediately before such disposition. In the event of such an
assumption, the person acquiring the interest in the facility
shall be treated as the taxpayer for purposes of assessing
any recapture liability (computed as if there had been no
change in ownership).
``(4) Special rules.--
``(A) Tax benefit rule.--The tax for the taxable year shall
be increased under paragraph (1) only with respect to credits
allowed by reason of this section which were used to reduce
tax liability. In the case of credits not so used to reduce
tax liability, the carryforwards and carrybacks under section
39 shall be appropriately adjusted.
``(B) No credits against tax.--Any increase in tax under
this subsection shall not be treated as a tax imposed by this
chapter for purposes of determining the amount of any credit
under subpart A, B, or D of this part.
``(C) No recapture by reason of casualty loss.--The
increase in tax under this subsection shall not apply to a
cessation of operation of the facility as a qualified child
care facility by reason of a casualty loss to the extent such
loss is restored by reconstruction or replacement within a
reasonable period established by the Secretary.
``(e) Special Rules.--For purposes of this section--
``(1) Aggregation rules.--All persons which are treated as
a single employer under subsections (a) and (b) of section 52
shall be treated as a single taxpayer.
``(2) Pass-thru in the case of estates and trusts.--Under
regulations prescribed by the Secretary, rules similar to the
rules of subsection (d) of section 52 shall apply.
``(3) Allocation in the case of partnerships.--In the case
of partnerships, the credit shall be allocated among partners
under regulations prescribed by the Secretary.
``(f) No Double Benefit.--
``(1) Reduction in basis.--For purposes of this subtitle--
``(A) In general.--If a credit is determined under this
section with respect to any property by reason of
expenditures described in subsection (c)(1)(A), the basis of
such property shall be reduced by the amount of the credit so
determined.
``(B) Certain dispositions.--If during any taxable year
there is a recapture amount determined with respect to any
property the basis of which was reduced under subparagraph
(A), the basis of such property (immediately before the event
resulting in such recapture) shall be increased by an amount
equal to such recapture amount. For purposes of the preceding
sentence, the term `recapture amount' means any increase in
tax (or adjustment in carrybacks or carryovers) determined
under subsection (d).
``(2) Other deductions and credits.--No deduction or credit
shall be allowed under any other provision of this chapter
with respect to the amount of the credit determined under
this section.
``(g) Termination.--This section shall not apply to taxable
years beginning after December 31, 2003.''.
(b) Conforming Amendments.--
(1) Section 38(b) of the Internal Revenue Code of 1986 is
amended--
(A) by striking out ``plus'' at the end of paragraph (11),
(B) by striking out the period at the end of paragraph
(12), and inserting a comma and ``plus'', and
(C) by adding at the end the following new paragraph:
``(13) the employer-provided child care credit determined
under section 45D.''.
(2) The table of sections for subpart D of part IV of
subchapter A of chapter 1 of such Code is amended by adding
at the end the following new item:
``Sec. 45D. Employer-provided child care credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31,
1998.
TITLE II--ENCOURAGING QUALITY CHILD CARE
Subtitle A--Dissemination of Information About Quality Child Care
SEC. 201. COLLECTION AND DISSEMINATION OF INFORMATION.
(a) Collection and Dissemination of Information.--The
Secretary of Health and Human Services shall, directly or
through a contract awarded on a competitive basis to a
qualified entity, collect and disseminate--
(1) information concerning health and safety in various
child care settings that would assist--
(A) the provision of safe and healthful environments by
child care providers; and
(B) the evaluation of child care providers by parents; and
(2) relevant findings in the field of early childhood
learning and development.
(b) Information and Findings To Be Generally Available.--
(1) Secretarial responsibility.--The Secretary of Health
and Human Services shall make the information and findings
described in subsection (a) generally available to States,
units of local governments, private nonprofit child care
organizations (including resource and referral agencies),
employers, child care providers, and parents.
(2) Definition of generally available.--For purposes of
paragraph (1), the term ``generally available'' means that
the information and findings shall be distributed through
resources that are used by, and available to, the public,
including such resources as brochures, Internet web sites,
toll-free telephone information lines, and public and private
resource and referral organizations.
SEC. 202. GRANTS FOR THE DEVELOPMENT OF A CHILD CARE TRAINING
INFRASTRUCTURE.
(a) Authority To Award Grants.--The Secretary of Health and
Human Services shall award grants to eligible entities to
develop distance learning child care training technology
infrastructures and to develop model technology-based
training courses for child care providers and child care
workers. The Secretary shall, to the maximum extent possible,
ensure that grants for the development of distance learning
child care training technology infrastructures are awarded in
those regions of the United States with the fewest training
opportunities for child care providers.
(b) Eligibility Requirements.--To be eligible to receive a
grant under subsection (a), an entity shall--
(1) develop the technological and logistical aspects of the
infrastructure described in this section and have the
capability of implementing and maintaining the
infrastructure;
(2) to the maximum extent possible, develop partnerships
with secondary schools, institutions of higher education,
State and local government agencies, and private child care
organizations for the purpose of sharing equipment, technical
assistance, and other technological resources, including--
(A) sites from which individuals may access the training;
(B) conversion of standard child care training courses to
programs for distance learning; and
(C) ongoing networking among program participants; and
(3) develop a mechanism for participants to--
(A) evaluate the effectiveness of the infrastructure,
including the availability and affordability of the
infrastructure, and the training offered the infrastructure;
and
(B) make recommendations for improvements to the
infrastructure.
(c) Application.--To be eligible to receive a grant under
subsection (a), an entity shall submit an application to the
Secretary at such time and in such manner as the Secretary
may require, and that includes--
(1) a description of the partnership organizations through
which the distance learning programs will be disseminated and
made available;
(2) the capacity of the infrastructure in terms of the
number and type of distance learning programs that will be
made available;
(3) the expected number of individuals to participate in
the distance learning programs; and
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(4) such additional information as the Secretary may
require.
(d) Limitation On Fees.--No entity receiving a grant under
this section may collect fees from an individual for
participation in a distance learning child care training
program funded in whole or in part by this section that
exceed the pro rata share of the amount expended by the
entity to provide materials for the training program and to
develop, implement, and maintain the infrastructure (minus
the amount of the grant awarded by this section).
(e) Rule of Construction.--Nothing in this section shall be
construed as requiring a child care provider to subscribe to
or complete a distance learning child care training program
made available by this section.
SEC. 203. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
subtitle $50,000,000 for each of fiscal years 1999 through
2003.
Subtitle B--Increased Enforcement of State Health and Safety Standards
SEC. 211. ENFORCEMENT OF STATE HEALTH AND SAFETY STANDARDS.
(a) Identification of State Inspection Rate.--
(1) In general.--Section 658E(c)(2)(G) of the Child Care
and Development Block Grant Act of 1990 (42 U.S.C.
9858c(2)(G)) is amended by striking the period and inserting
``, and provide the percentage of completed child care
provider inspections that were required under State law for
each of the 2 preceding fiscal years.''.
(2) Effective date.--The amendment made by paragraph (1)
applies to State plans under the Child Care and Development
Block Grant Act of 1990 (42 U.S.C. 9858 et seq.) on and after
September 1, 1998.
(b) Increased or Decreased Allotments.--Section 658O(b) of
the Child Care and Development Block Grant Act of 1990 (42
U.S.C. 9858m(b)) is amended--
(1) in paragraph (1), in the matter preceding subparagraph
(A), by inserting ``, subject to paragraph (5),'' after
``shall''; and
(2) by adding at the end the following:
``(5) Increased or decreased allotment based on state
inspection rate.--
``(A) Increased allotment for fiscal years 1999, 2000, and
2001.--
``(i) In general.--Subject to clause (iii), for fiscal
years 1999, 2000, and 2001, the allotment determined for a
State under paragraph (1) for each such fiscal year shall be
increased by an amount equal to 10 percent of such allotment
for the fiscal year involved with respect to any State--
``(I) that certifies to the Secretary that the State has
not reduced the scope of any State child care health or
safety standards or requirements that were in effect in
calendar year 1996; and
``(II) that, with respect to the preceding fiscal year, had
a percentage of completed child care provider inspections (as
required to be reported under section 658E(c)(2)(G)), that
equaled or exceeded the target inspection and enforcement
percentage specified under clause (ii) for the fiscal year
for which the allotment is to be paid.
``(ii) Target inspection and enforcement percentage.--For
purposes of clause (i)(II), the target inspection and
enforcement percentage is--
``(I) for fiscal year 1999, 75 percent;
``(II) for fiscal year 2000, 80 percent; and
``(III) for fiscal year 2001, 100 percent.
``(iii) Pro rata reductions if insufficient
appropriations.--The Secretary shall make pro rata reductions
in the percentage increase otherwise required under clause
(i) for a State allotment for a fiscal year as necessary so
that the aggregate of all the allotments made under this
section do not exceed the amount appropriated for that fiscal
year under section 658B.
``(B) Decreased allotment for fiscal years 2000 and 2001.--
``(i) In general.--The allotment determined for a State
under paragraph (1) for each of fiscal years 2000 and 2001
shall be decreased by an amount equal to 10 percent of such
allotment for the fiscal year involved with respect to any
State that, with respect to the preceding fiscal year, had a
percentage of completed child care provider inspections (as
required to be reported under section 658E(c)(2)(G)) that was
below the minimum inspection and enforcement percentage
specified under clause (ii) for the fiscal year for which the
allotment is to be paid.
``(ii) Minimum inspection and enforcement percentage.--For
purposes of clause (i), the minimum inspection and
enforcement percentage is--
``(I) for fiscal year 2000, 50 percent; and
``(II) for fiscal year 2001, 75 percent.
``(iii) Requirement to expend State funds to replace
reduction.--If the allotment determined for a State for a
fiscal year is reduced by reason of clause (i), the State
shall, during the immediately succeeding fiscal year, expend
additional State funds under the State plan funded under this
subchapter by an amount equal to the amount of such
reduction.''.
Subtitle C--Removal of Barriers to Increasing the Supply of Quality
Child Care
SEC. 221. INCREASED AUTHORIZATION OF APPROPRIATIONS FOR THE
CHILD CARE AND DEVELOPMENT BLOCK GRANT ACT.
Section 658B of the Child Care and Development Block Grant
Act of 1990 (42 U.S.C. 9858) is amended to read as follows:
``SEC. 658B. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this
subchapter--
``(1) for each of fiscal years 1996 through 1998,
$1,000,000,000;
``(2) for fiscal year 1999, $1,500,000,000;
``(2) for fiscal year 2000, $1,750,000,000;
``(2) for fiscal year 2001, $2,000,000,000;
``(2) for fiscal year 2002, $2,250,000,000; and
``(2) for fiscal year 2003, $2,500,000,000.''.
SEC. 222. SMALL BUSINESS CHILD CARE GRANT PROGRAM.
(a) Establishment.--The Secretary of Health and Human
Services (in this section referred to as the ``Secretary'')
shall establish a program to award grants to States to assist
States in providing funds to encourage the establishment and
operation of employer operated child care programs.
(b) Application.--To be eligible to receive a grant under
this section, a State shall prepare and submit to the
Secretary an application at such time, in such manner, and
containing such information as the Secretary may require,
including an assurance that the funds required under
subsection (e) will be provided.
(c) Amount of Grant.--The Secretary shall determine the
amount of a grant to a State under this section based on the
population of the State as compared to the population of all
States.
(d) Use of Funds.--
(1) In general.--A State shall use amounts provided under a
grant awarded under this section to provide assistance to
small businesses located in the State to enable the small
businesses to establish and operate child care programs. Such
assistance may include--
(A) technical assistance in the establishment of a child
care program;
(B) assistance for the start up costs related to a child
care program;
(C) assistance for the training of child care providers;
(D) scholarships for low-income wage earners;
(E) the provision of services to care for sick children or
to provide care to school aged children;
(F) the entering into of contracts with local resource and
referral or local health departments;
(G) care for children with disabilities; or
(H) assistance for any other activity determined
appropriate by the State.
(2) Application.--To be eligible to receive assistance from
a State under this section, a small business shall prepare
and submit to the State an application at such time, in such
manner, and containing such information as the State may
require.
(3) Preference.--
(A) In general.--In providing assistance under this
section, a State shall give priority to applicants that
desire to form a consortium to provide child care in
geographic areas within the State where such care is not
generally available or accessible.
(B) Consortium.--For purposes of subparagraph (A), a
consortium shall be made up of 2 or more entities which may
include businesses, nonprofit agencies or organizations,
local governments, or other appropriate entities.
(4) Limitation.--With respect to grant funds received under
this section, a State may not provide in excess of $100,000
in assistance from such funds to any single applicant.
(e) Matching Requirement.--To be eligible to receive a
grant under this section a State shall provide assurances to
the Secretary that, with respect to the costs to be incurred
by an entity receiving assistance in carrying out activities
under this section, the entity will make available (directly
or through donations from public or private entities) non-
Federal contributions to such costs in an amount equal to--
(1) for the first fiscal year in which the entity receives
such assistance, not less than 50 percent of such costs ($1
for each $1 of assistance provided to the entity under the
grant);
(2) for the second fiscal year in which an entity receives
such assistance, not less than 66\2/3\ percent of such costs
($2 for each $1 of assistance provided to the entity under
the grant); and
(3) for the third fiscal year in which an entity receives
such assistance, not less than 75 percent of such costs ($3
for each $1 of assistance provided to the entity under the
grant).
(f) Requirements of Providers.--To be eligible to receive
assistance under a grant awarded under this section a child
care provider shall comply with all applicable State and
local licensing and regulatory requirements and all
applicable health and safety standards in effect in the
State.
(g) Administration.--
(1) State responsibility.--A State shall have
responsibility for administering the grant awarded under this
section and for monitoring entities that receive assistance
under such grant.
(2) Audits.--A State shall require each entity receiving
assistance under a grant awarded under this section to
conduct an annual audit with respect to the activities of the
entity. Such audits shall be submitted to the State.
(3) Misuse of funds.--
(A) Repayment.--If the State determines, through an audit
or otherwise, that an entity receiving assistance under a
grant awarded under this section has misused the assistance,
the State shall notify the Secretary of the misuse. The
Secretary, upon such a notification, may seek from such an
entity the repayment of an amount equal to the amount of any
misused assistance plus interest.
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(B) Appeals process.--The Secretary shall by regulation
provide for an appeals process with respect to repayments
under this paragraph.
(h) Reporting Requirements.--
(1) 2-year study.--
(A) In general.--Not later than 2 years after the date on
which the Secretary first provides grants under this section,
the Secretary shall conduct a study to determine--
(i) the capacity of entities to meet the child care needs
of communities within a State;
(ii) the kinds of partnerships that are being formed with
respect to child care at the local level; and
(iii) who is using the programs funded under this section
and the income levels of such individuals.
(B) Report.--Not later than 28 months after the date of
enactment of this Act, the Secretary shall prepare and submit
to the appropriate committees of Congress a report on the
results of the study conducted in accordance with
subparagraph (A).
(2) 4-year study.--
(A) In general.--Not later than 4 years after the date on
which the Secretary first provides grants under this section,
the Secretary shall conduct a study to determine the number
of child care facilities funded through entities that
received assistance through a grant made under this section
that remain in operation and the extent to which such
facilities are meeting the child care needs of the
individuals served by such facilities.
(B) Report.--Not later than 52 months after the date of
enactment of this Act, the Secretary shall prepare and submit
to the appropriate committees of Congress a report on the
results of the study conducted in accordance with
subparagraph (A).
(i) Definition.--As used in this section, the term ``small
business'' means an employer who employed an average of at
least 2 but not more than 50 employees on business days
during the preceding calendar year.
(j) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section, $60,000,000 for
the period of fiscal years 1999 through 2001. With respect to
the total amount appropriated for such period in accordance
with this subsection, not more than $5,000,000 of that amount
may be used for expenditures related to conducting
evaluations required under, and the administration of, this
section.
(k) Termination of Program.--The program established under
subsection (a) shall terminate on September 30, 2002.
SEC. 223. GAO REPORT REGARDING THE RELATIONSHIP BETWEEN LEGAL
LIABILITY CONCERNS AND THE AVAILABILITY AND
AFFORDABILITY OF CHILD CARE.
Not later than 6 months after the date of enactment of this
Act, the Comptroller General of the United States shall
report to Congress regarding whether and, if so, the extent
to which, concerns regarding potential legal liability
exposure inhibit the availability and affordability of child
care. The report shall include an assessment of whether such
concerns prevent--
(1) employers from establishing on or near-site child care
for their employees;
(2) schools or community centers from allowing their
facilities to be used for on-site child care; and
(3) individuals from providing professional, licensed child
care services in their homes.
Subtitle D--Quality Child Care Through Federal Facilities and Programs
SEC. 231. PROVIDING QUALITY CHILD CARE IN FEDERAL FACILITIES.
(a) Definition.--In this section:
(1) Administrator.--The term ``Administrator'' means the
Administrator of General Services.
(2) Executive agency.--The term ``Executive agency'' has
the meaning given the term in section 105 of title 5, United
States Code, but does not include the Department of Defense.
(3) Executive facility.--The term ``executive facility''
means a facility that is owned or leased by an Executive
agency.
(4) Federal agency.--The term ``Federal agency'' means an
Executive agency, a judicial office, or a legislative office.
(5) Judicial facility.--The term ``judicial facility''
means a facility that is owned or leased by a judicial
office.
(6) Judicial office.--The term ``judicial office'' means an
entity of the judicial branch of the Federal Government.
(7) Legislative facility.--The term ``legislative
facility'' means a facility that is owned or leased by a
legislative office.
(8) Legislative office.--The term ``legislative office''
means an entity of the legislative branch of the Federal
Government.
(b) Executive Branch Standards and Enforcement.--
(1) State and local licensing requirements.--
(A) In general.--The Administrator shall issue regulations
requiring any entity operating a child care center in an
executive facility to comply with applicable State and local
licensing requirements related to the provision of child
care.
(B) Compliance.--The regulations shall require that, not
later than 6 months after the date of enactment of this Act--
(i) the entity shall comply, or make substantial progress
(as determined by the Administrator) toward complying, with
the requirements; and
(ii) any contract for the operation of such a child care
center shall include a condition that the child care be
provided in accordance with the requirements.
(2) Evaluation and enforcement.--The Administrator shall
evaluate the compliance of the entities described in
paragraph (1) with the regulations issued under that
paragraph. The Administrator may conduct the evaluation of
such an entity directly, or through an agreement with another
Federal agency, other than the Federal agency for which the
entity is providing child care. If the Administrator
determines, on the basis of such an evaluation, that the
entity is not in compliance with the regulations, the
Administrator shall notify the Executive agency.
(c) Legislative Branch Standards and Enforcement.--
(1) State and local licensing requirements and
accreditation standards.--The Architect of the Capitol shall
issue regulations for entities operating child care centers
in legislative facilities, which shall be the same as the
regulations issued by the Administrator under subsection
(b)(1), except to the extent that the Architect may
determine, for good cause shown and stated together with the
regulations, that a modification of such regulations would be
more effective for the implementation of the requirements and
standards described in such paragraphs.
(2) Evaluation and enforcement.--Subsection (b)(2) shall
apply to the Architect of the Capitol, entities operating
child care centers in legislative facilities, and legislative
offices. For purposes of that application, references in
subsection (b)(2) to regulations shall be considered to be
references to regulations issued under this subsection.
(d) Judicial Branch Standards and Enforcement.--
(1) State and local licensing requirements and
accreditation standards.--The Director of the Administrative
Office of the United States Courts shall issue regulations
for entities operating child care centers in judicial
facilities, which shall be the same as the regulations issued
by the Administrator under subsection (b)(1), except to the
extent that the Director may determine, for good cause shown
and stated together with the regulations, that a modification
of such regulations would be more effective for the
implementation of the requirements and standards described in
such paragraphs.
(2) Evaluation and enforcement.--Subsection (b)(2) shall
apply to the Director described in paragraph (1), entities
operating child care centers in judicial facilities, and
judicial offices. For purposes of that application,
references in subsection (b)(2) to regulations shall be
considered to be references to regulations issued under this
subsection.
(e) Application.--Notwithstanding any other provision of
this section, if 3 or more child care centers are operated in
facilities owned or leased by a Federal agency, the head of
the Federal agency may carry out the responsibilities
assigned to the Administrator under subsection (b)(2), the
Architect of the Capitol under subsection (c)(2), or the
Director described in subsection (d)(2) under such
subsection, as appropriate.
Mr. SPECTER. Mr. President, I have sought recognition to join my
colleagues in introducing the ``Caring for Children Act,'' which will
ease the financial burden of child care for American families--for
those parents who work, and for those who choose to stay home to raise
their children for a period of time. The sponsors of this legislation
recognize the importance of affordable quality child care to the
successful development of our children.
Our bill would expand the Dependent Care tax credit to make it more
accessible to families who need it, double the authorization for the
Child Care Development Block Grant, and provide grants to small
businesses to create or enhance child care facilities for their
employees. This bill also includes provisions from the proposal I
introduced last year with my colleague, Congressman Jon Fox, ``The
Affordable Child Care Act,'' which provides a tax credit for employers
who provide on-site or site-adjacent child care to their employees in
order to reduce the child care expenses of the employee.
Not all families choose the same option for child care. Many families
rely on relatives, centers operated by churches and other religious
organizations, centers at or near their workplace, or make other
arrangements to provide care for their children while they work. In
light of the diverse needs for child care in America, this bill
represents a good start toward expanding the choices for American
parents. And, any such legislation must recognize that there is a need
to provide some relief to families where one parent stays at home.
The need for affordable and accessible day care is critical given the
increasing numbers of working parents and dual-income families in the
United States. According to the Bureau of the Census, in 1975, 31
percent of married
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mothers with a child younger than age one participated in the labor
force. By 1995, that figure had risen to 59 percent. Almost 64 percent
of married mothers and 53 percent of single mothers with children
younger than age six participated in the labor force in 1995.
The cost of child care for families is also significant. Licensed day
care centers in some urban areas cost as much as $200 per week, and the
disparity in costs and availability of child care between urban and
rural grows greater every day. For families which need or choose to
have both parents work outside the home, the burden of making child
care decisions is great. These figures serve to underscore the need for
action on the part of the Federal government to provide the necessary
assistance to our nation's working families.
As Chairman of the Labor, Health and Human Services, and Education
Appropriations Subcommittee, I am pleased that this legislation would
build on an existing federal child care program by authorizing an
additional $5 billion over five years to the Child Care Development
Block Grant program, bringing total spending for this program to $2.5
billion annually by FY2002. The CCDBG program which works well in
assisting low-income families acquire child care and helped over 93,000
Pennsylvania families last year. By increasing the authorization, we
can help even more families without creating a new entitlement program.
Our legislation will also require States to create and enforce safety
and health standards in child care facilities, and provide money for
the Department of Health and Human Services to disseminate information
to parents and providers about quality child care, through brochures,
toll-free hotlines, the Internet, and other technological assistance.
The ``Caring for Children Act'' complements my recent efforts to
assist working families in the context of welfare reform and children's
health insurance. When Congress debated welfare reform in 1995 and
1996, I worked to ensure that adequate funds were provided for child
care, a critical component for welfare mothers who would be required to
work to receive new limited welfare benefits. I am pleased that the
welfare reform bill that became law provides $20 billion in child care
funding over a six year period. Similarly, I was pleased to participate
in the bipartisan effort in 1997 to enact legislation to provide $24
billion over the next five years for States to establish or broaden
children's health insurance programs.
In conclusion, Mr. President, I believe that it is critical that the
105th Congress not adjourn without enacting legislation to assist
families in their ability to afford safe, quality child care for their
children, either at home with a parent or another arrangement. Our
legislation will provide peace of mind to millions of American families
struggling to balance career and child raising. I urge my colleagues to
join me in cosponsoring this important legislation, and I urge its
swift adoption.
Mr. HATCH. Mr. President, eight years ago, Congress passed and
President Bush signed the landmark Child Care and Development Block
Grant Act. I was proud to have helped lead the effort, and I am proud
of what our states have been able to accomplish since its
implementation.
But, it is also clear that we must do more to help families. In my
home state of Utah, more than half of the children under age 6 have
either their only parent or both parents in the workforce.
The ``Child Care Connection,'' a four-county resource and referral
program, reported last year that there were five major Salt Lake area
zip codes that had zero openings for infants.
Utah child care officials have reported that there are too few slots
generally for infants and toddlers and for special needs children.
It is my pleasure to be here today with Senators Chafee, Snowe,
Roberts, and Specter, each of whom has a long track record of
involvement in child care issues. We believe that we have developed a
comprehensive, yet realistic, child care proposal that will augment the
ability of the child care block grant to serve families in each state.
Of particular note, this proposal recognizes the choice that many
families make to have one parent remain at home as primary caregiver.
As important as it is to assist low- and middle-income families with
necessary out-of-home child care expenses--and our proposal will
increase the Dependent Care Tax Credit for such families--it is also
important for us to realize the value of a parent in the home and that
the sacrifice of a second income is also a child care expense.
Additionally, our proposal will not create major new programs in need
of permanent funding. We do not intend to spend federal dollars on
bigger bureaucracy in the name of expanding child care. We want
available resources to be put directly in the hands of parents through
tax credits and in the hands of states to address specific gaps in
availability and enforcement of health and safety standards.
Our bill takes a very balanced approach to the issues of
affordability, availability, and quality.
Child care costs, of course, are a significant part of a family
budget. The average cost of child care has been estimated at over $4000
per child. This is a substantial increase from the $3000 average it was
when we enacted the Child Care and Development Block Grant eight years
ago. Clearly, low- and middle-income taxpayers devote a larger share of
their earnings to child care.
And, at a time when we are trying to move families off of public
assistance and into employment, child care has to be a key element of
transitional support.
Our bill increases the Dependent Care Tax Credit (DCTC) for working
parents. Our bill raises the maximum credit from 30 percent to 50
percent. And, it raises the maximum income level for the maximum credit
from $10,000 to $30,000. No change is made in the maximum allowable
expenses of $2400 for one child and $4800 for two or more children.
Thus, a family in St. George, Utah, earning $30,000, with two
children, would receive a tax credit of $2400. Under current law, this
family's credit would be $960.
Both our bill and the proposal made by the Clinton administration
begin to gradually reduce the percentage of the credit at $30,000, but
the ``Caring for Children Act'' reduces the credit at a slower rate.
Thus, families earning between $30,000 and $75,000 will receive a
bigger tax benefit than under either President Clinton's proposal or
current law.
We can afford to provide larger benefits for this income group
because we have recommended a phase-out of the credit entirely for
families with incomes of $105,000 or more. Under current law, there is
no income limit for eligibility for the DCTC. This is one tax credit
that wealthy taxpayers do not need.
But, our bill, the ``Caring for Children Act,'' goes one step
further. The bill I have developed along with Senators Chafee, Snowe,
Roberts, and Specter would, for the first time, recognize child care
provided by a parent.
Our bill would extend eligibility for the Dependent Care Tax Credit
to families with young children in which one parent remains at home as
caregiver. How would this work? The bill would impute monthly child
care expenses of $150 to families with children age 3 and under. For
example, a family in Morgan, Utah, earning $30,000 a year and having
one or more children under age 3, would receive a $900 tax credit. It
works this way: 50% credit $150 monthly imputed expenses 12 months =
$900.
I would like to see this tax break be even more generous. I will work
toward that end. But, given our budget realities, this ground-breaking
extension of the DCTC is feasible. And, I believe it is an essential
component of the ``Caring for Children Act.''
It is high time we recognize the value of stay-at-home parents. This
tax credit in no way offsets their work or their monetary sacrifices;
but it does, at last, give a mother or father in the home standing in
our tax code. It transforms the Dependent Care Tax Credit from an
employment-based credit to a child-based credit.
These two changes to the DCTC will put money--their own money I might
add--back into the pockets of America's families.
The ``Caring for Children Act'' also deals with the issue of
availability. As I mentioned, there are areas where child care--
particularly infant care,
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after school care, or care for special needs children--is tough to
find. The substantial increase we are recommending for the Child Care
and Development Block Grant (CCDBG) will provide states with the
ability to address shortages as well as to increase support to low-
income families.
President Clinton has recommended solving the availability problem by
creating two new programs, one for after school care and one geared to
early childhood. While I can appreciate the President's concern that
there may be few choices out there for parents who depend on out-of-
home care, I do not believe it makes sense to create new programs when
the CCDBG already permits such programs. I think the answer is not to
second guess how the states have chosen to allocate their scarce
resources under the block grant, but rather to give the states some
additional resources so that they can better meet their own priorities.
We are proposing a $5 billion increase in the CCDBG over five years.
These additional resources will give states much more flexibility in
their planning. States will be able to provide subsidies for a greater
number of the eligible population; they will be able to finance child
care programs in underserved areas of the state; they will be able to
address particular shortages. And, they will be able to better enforce
critical health and safety standards.
I am a firm believer that states should be able to set their own
rules and regulations for child care providers. I do not believe that
the federal government can or should interfere with child care
affordability in our various states by setting national standards that
are unrealistic. Moreover, to the extent that child care standards
reflect the values as well as the economic conditions of any given
state, the federal government has no business micromanaging them.
But, I also believe that states that participate in the block grant
program--and that would be all of them--have an obligation to ensure
that children are in safe and healthy environments. And, they have an
obligation to see that such standards are adequately enforced. A
sanitary standard is no standard at all if it is unenforced.
It may not matter where you have your car washed, but it absolutely
matters who is taking care of your child.
Therefore, the ``Caring for Children Act'' puts some teeth into the
requirement for inspections under the block grant. A state that
inspects a threshold number of facilities subject to inspection will be
eligible for a 10 percent bonus. After the second year, a state failing
to inspect a minimum number of child care sites will be subject to a 10
percent penalty.
Additionally, our bill authorizes $50 million a year for HHS to
undertake two important quality enhancing activities. First, more
information about child care can be made available to parents. Consumer
information about automobiles, credit cards, and well-baby care are
available. I believe parents would welcome more information on what to
look for in a child care center or family-based care setting. I also
believe that parents are the best form of accountability in child care.
Second, to assist providers and child care workers enhance the quality
of their services, the bill would enable HHS to award grants for the
development of a technology infrastructure for distance learning.
Many child care providers are in rural areas. Traditional training in
the form of workshops and college classes are not practical. Programs
for child care providers that could be developed and made available
through distance learning, however, could prove a viable alternative as
well as a valued help. My home state of Utah, I might add, has been a
leader in the distance learning arena. I have no doubt that such a
format would be eagerly received in my state.
The ``Caring for Children Act'' contains several other provisions of
interest. In order to test the effectiveness of small business
consortia as employer-based child care providers, the bill authorizes
$60 million over three years for demonstration grants.
To increase the awareness of the existing Dependent Care Assistance
Program (DCAP), a tax provision that permits employees to authorize
their employers to withhold up to $5000 of the employee's salary in a
DCAP account for child care expenses to be paid by the employer, the
``Caring for Children Act'' authorizes $1 million a year for the next
five years to the Secretary of Labor to conduct outreach to both
employers and employees about this program and its benefits.
Finally, the bill would require that child care facilities located in
federal buildings for federal employees be held to the same quality
standards that apply to child care programs in the state in which the
federal facility is located.
I believe the measure we have introduced is a balanced approach. It
does not depend entirely on the tax code to address child care issues,
nor does it depend solely on federal spending.
It does not concentrate benefits on only one income group. The DCTC
expansion is geared particularly to assist the middle class. The
increase in the CCDBG is targeted to subsidies for low-income families.
It recognizes that we have to make an investment in our children, but
it does not propose new federal mandatory spending programs that can
become wildly expensive.
Our bill gives careful attention to each of the three cornerstones of
child care: affordability, availability, and quality.
And, for the first time, federal child care legislation will not
ignore those families who choose to forego one income to have a parent
remain at home.
I want to say again that I am proud to sponsor this bill with my
colleagues, Senators Chafee, Snowe, Roberts, and Specter. I urge other
senators to join us in this legislation.
Mr. ROBERTS. Mr. President, I am pleased and honored to join with my
colleagues to introduce legislation to help meet the child care
challenges facing families around the nation. Our bill is entitled the
``Caring for Children Act.''
Child care, in the home when possible and outside the home when both
parents work, goes right to the heart of keeping families strong.
Unfortunately, finding quality, affordable child care is one of the
most pressing problems for families in Kansas and around the country.
The ``Caring for Children Act'' takes the first steps to address this
challenge through a responsible approach. This legislation expands
child care opportunities without expanded government costs or intrusion
in our lives. This legislation builds into the existing network without
adding more government intervention or mandates. This legislation will
help families that have two working parents and families that have a
stay-at-home parent. This legislation will help to increase the supply
of quality of child care.
First, in order to provide additional tax relief and increase
affordability of child care, we expand the Dependent Care Tax Credit
(DCTC) by raising the income level to $30,000 at which families become
eligible for the maximum tax credit. We also raise the maximum
percentage of child care expenses that parents can deduct to 50
percent. These changes make the DCTC more realistic for families that
face increasing child care costs.
Increasing the income level and the percentage of child care expenses
that are deductible will help families where both parents work. But, we
also recognize that families who choose to have one parent remain at
home have child care expenses as well. Therefore, we extend eligibility
for the DCTC to families with a stay-at-home parent. This provides
greater options to more families and leaves child care choices where
they should be--with the family. In order to target this credit to
parents who need it the most and meet our fiscal responsibilities, the
credit is phased out for higher income wage earners.
Small businesses play a critical role in providing child care options
to millions of working parents. Unfortunately, small businesses
generally do not have the resources required to start up and support a
child care center. The ``Caring for Children Act'' includes a short-
term, flexible grant program to encourage small businesses to work
together to provide child care services for employees. This program is
more of a demonstration project that will sunset at the end of three
years. In the meantime, small businesses will be eligible for grants up
to $100,000 for start-up costs, training, scholarships, or other
related activities. Businesses
[[Page S122]]
must continue to meet state quality and health standards. Businesses
will be required to match federal funds to encourage self-sustaining
facilities well into the future.
``Caring for Children'' also includes provisions to provide a tax
credit of expenses up to $500,000 for employers who choose to
construct, renovate, or operate on- or near-site child care facilities
for their employees. And, ``Caring for Children'' includes funding to
promote greater availability of the Dependent Care Assistance Program
(DCAP) for families with children. This will allow the Department of
Labor to conduct outreach to businesses to promote awareness of the
DCAP program.
All children deserve quality care. Although all states have health
and safety standards in place, many times these regulations are not
enforced. ``Caring for Children'' includes incentives for states to
improve their inspection efforts and ensure that facilities are in
compliance with their own state standards. The bill also authorizes
funding for the Department of Health and Human Services to get more
information in the hands of parents and help child care providers
access child care training programs.
Finally, we authorize additional funding for the Child Care and
Development Block Grant. This program sends federal assistance to
states, permitting them to allocate resources where they are most
needed in the state. We maintain maximum flexibility and allow states
to make decisions about how to address their own child care challenges.
Child care is an issue that impacts each and every one of us. While
parents continue to struggle to meet the constant demand of work and
family, we must continue to do our part to expand child care options
and protect our nation's most valuable resource, our children. I look
forward to working with all of my colleagues in this important effort.
Ms. SNOWE. Thank you, Mr. President, I am pleased to join with my
colleagues, Senators Hatch, Roberts, Specter, and Chafee to introduce a
bill that I believe is an historic opportunity to help ensure the well-
being of our children and by extension the very well-being of our
nation: the Caring for Children Act.
I come before you as a veteran on child care issues who has worked to
address child care throughout my political life, and was the lead
Republican cosponsor on the Act for Better Child Care in 1989--the bill
which set the stage for the bipartisan package that was adopted by the
101st Congress. Since that time we have advanced the ball in profound
ways that reflect the changing nature of the American family, but our
work must never cease when it comes to our children. We must build on
our laurels, not rest on them: and that is precisely what this bill
does.
Consider the challenge: In California alone in 1997, 500,000 children
were already on waiting lists for federal child care in--half a
million! Now, it is estimated that, as welfare reform proceeds, some 2
million parents across America will join the workforce and their
children will require child care. A GAO report from May of last year
determined that in Chicago, for example, the known supply of child care
would only meet 14 percent of the need for infant child care in the
first year of welfare reform implementation. And within three years, 3
out of 4 American women with children under 5 will be working and in
need of child care.
With the perspective of years spent on this issue, I have come to the
conclusion that what American parents need most are choices. The
decision of how to care for a young child is a deeply personal and
difficult one. Many feel handcuffed by economic concerns, others worry
about the safety of child care, but all face different circumstances
that make the decision making process unique.
Given the tremendous challenges of raising children today, and the
extraordinary range of issues facing families, I believe the federal
government should not be in the business of encouraging one choice over
another. Instead the government's role must be to ensure that families
have viable options and that the basis for decisions is the best
interests of the child. If we are to care about children we must care
about choices, and not politicize the issue with partisanship or
ideology.
That is the spirit in which we crafted our bill. Because it is not
about pitting one group against another. It is not about starting a
``mommy war''. It is about helping parents do the best they can for
their children--no matter what choice they make.
The reality is that, despite our best efforts to date to make
quality, affordable child care accessible, the myriad pressures facing
American families today still imperil their ability to provide the best
possible care for their children. In my home state of Maine, one out of
every five Mainers are working multiple jobs. Across the country, 63
percent of women with children under age six are in the workforce, and
as a result, over 12 million children are cared for by someone other
than a parent during working hours. In Maine, there are 42,000 women in
the labor force with children under 6, and 64,000 with children between
the ages of 6 and 17.
At the same time, child care costs can range from $4,000 to $9,000
annually--with families earning less than $14,000 per year paying more
than one quarter of their income in child support. As a result,
families are often forced to make a choice between two unacceptable
options: find care for their children that may not be safe or
appropriate, or stay home and hope that they can somehow still put food
on the table.
Our bill respects parents' decisions and expands the choices
available in a number of innovative ways. By expanding the Dependent
Care Tax Credit, we make it more affordable for parents to choose
quality child care, but we also leave the door open for a parent to
stay at home with their child. And we target our tax benefits to those
who need them most: working American families.
For two-working parent families with child care expenses, we raise
the income level at which parents can take the maximum credit from
$10,000 to $30,000, allowing more parents to take advantage of the
maximum tax credit. In addition, we raise the percentage of child care
expenses that parents can put toward their credit to 50% (up from 40%
under current law) of expenses up to $2400 for one child, or $4800 for
two or more children. The credit will phase down 1% for every $1500 of
income above $30,000, phasing out completely for families earning over
$105,000 per year. Under this new scheme, the maximum tax credit will
be $1200 for one child (up from $720), or $2400 for two or more
children (up from $480).
For the first time, parents who forgo an income to stay at home to
take care of a child between the ages of 0-3 will be able to take
advantage of the Dependent Care Tax Credit. By attributing child care
expenses to stay at home parents of $150 per month, they will be
eligible for a maximum tax credit of up to $900 per year, depending on
their income. Applying the tax credit to parents who wish to stay
home for children ages 0-3 acknowledges that parents of infants and
toddlers often face the toughest decisions between working or staying
at home, particularly in light of recent research in the area of early
childhood development which demonstrates that care from one or two
consistent, loving and stimulating caregivers during these earliest
years is crucial to brain development.
The Caring for Children Act will also help defray the considerable
costs of child care for low-income families by doubling funding for the
Child Care and Development Block Grant, to the time of $5 billion. This
will create more child care slots for low-income families and double
the amount of money devoted to improving quality, again leaving more
options for parents.
And we also address the issue safety, because parents are still
rightfully concerned about safety. According to a US News and World
Report article last August, a query of all 50 states and the District
of Columbia revealed that 76 children died in day care in 1996. The
causes included drownings, falls, and being struck by automobiles. And
these numbers are low because, shockingly, some states do not even
track day care deaths. In terms of oversight, the US News report
revealed that in Virginia, for example, the state had failed to make
mandatory twice-a-year inspections of 722 of its 4,200 licensed
facilities in 1996; 159 centers were not visited even once.
No parents should have to fear for their child's safety--no parent
should
[[Page S123]]
ever get that dreaded call that their child was hurt at day care.
Bringing a young child to day care in the morning should not be an act
of faith--it should be an act of confidence. While states have the
responsibility to set health and safety standards, states need to be
held accountable for enforcing these standards by adhering to the
inspection-schedule that they establish under state law. Accordingly,
our bill provides a 10 percent bonus in CCDBG funding to states that
meet targeted inspection rates, while penalizing those by 10 percent
that don't meet their existing responsibility to ensure health and
safety. This gives our bill ``teeth'' to ensure that child care is safe
and children are protected.
Finally, we encourage more American businesses to become partners in
child care by offering then tax credits for child care operation,
construction and renovation expenses up to $500,000. And recognizing
that it is not always feasible for small businesses to assist with
child care, we offer grants to small employers to provide such care.
Businesses already have an incentive to provide child care in that
parents who are confident in their child care arrangements are more
reliable, productive workers. These initiatives will not only create
more slots and make child care more affordable for parents and
businesses alike, but it will help literally bring care closer to more
parents.
In closing, let me emphasize that this bill is an investment in our
nation's future. It is a statement by the federal government that there
can be no greater cause--no more noble a purpose than providing for our
children. How a nation raises its youth and the value it places on
giving children a chance to grow up safe, happy, and healthy speaks
volumes to its greatness. This legislation won't make decisions easier
for parents but it will ensure that they have a full range of options
available to them as they seek to do the very best they can for their
children. That's why I'm proud to be here today and that's why I will
work hard to ensure the passage of the Caring for Children Act. Thank
you.
______
By Mr. McCAIN (for himself, Mr. Coats, Mr. Faircloth and Mr.
Ashcroft):
S. 1578. A bill to make available on the Internet, for purposes of
access and retrieval by the public, certain information available
through the Congressional Research Service web site; to the Committee
on Rules and Administration.
CONGRESSIONAL RESEARCH SERVICE LEGISLATION
Mr. McCAIN. Mr. President, I would like to introduce a bill that will
make Congressional Research Service Reports, Issue Briefs, and
Authorization and Appropriations products available on a web site to
the American people. Senator Coats, Senator Faircloth, and Senator
Ashcroft are original co-sponsors to this bill. Additionally,
Representative Shays will be introducing a companion bill over in the
House.
The Congressional Research Service (CRS) has a well-known reputation
for producing high-quality reports and issue briefs that are unbiased,
concise, and accurate. Many of us have used these CRS products to make
decisions on a wide variety of legislative proposals and issues,
including Amtrak, the Endangered Species Act, the Line Item Veto, and
U.S. policy in Zambia. Also, we routinely issue these products to our
constituents in order to help them understand the important issues of
our time.
This fiscal year, the American taxpayer will pay $64.6 million to
fund the Congressional Research Service. Newspapers, such as the San
Jose Mercury-News and the Austin American-Statesman, and watchdog
groups, such as the Congressional Accountability Project, have recently
asked the Congress to allow the public access to CRS resources. The
American people have paid for these valuable resources and have a right
to see that their money is being well spent.
Congress can also serve two important functions by allowing public
access to this information. First, public access to these CRS products
will mark an important milestone in opening up the federal government.
Our constituents will be able to see the research documents which
influenced our decisions and understand the trade-offs and factors that
we consider before a vote. This will give the public a more accurate
view of the Congressional decision-making process to counter the
prevailing cynical view of Members of Congress selling their votes to
the highest campaign contributor.
Also, these CRS reports will serve an important role in informing the
public. Members of the public will be able to read these CRS products
and receive a concise, accurate summary of the issues that concern
them. As elected representatives, we should do what we can to promote
an informed, educated public. The educated voter is best able to make
decisions and petition us to do the right things here.
The Internet provides an ideal way to inform the public while not
distracting CRS from its primary mission to serve Congress. The
Director of CRS can simply post CRS products on a web site, and then
voters can look up information without any extra effort by CRS
researchers. The public will not be allowed to write responses or
research requests to CRS, so that valuable CRS time will not be
diverted from helping us to do our jobs. Confidential requests by
Members of Congress will not be released to the public. It is my intent
that CRS establish a separate web site that will serve the public
without otherwise causing CRS to do anything drastically different from
its current operations when it posts CRS products on the web site
accessible to Members of Congress.
I recognize that there have been a few questions about this bill.
There are concerns disseminating CRS material via the Internet will
remove its protection under the Speech and Debate Clause. At present,
no court case has directly addressed this issue. However, the Supreme
Court acknowledged in its concurrence to Doe versus McMillan that a
legislator's function in informing the public concerning matters before
Congress should be protected by the Speech and Debate Clause, similar
to communications which relate directly to the legislative process.
Furthermore, my bill gives the CRS Director discretion to not release
material that he determines is confidential. This aspect of my bill has
been upheld in similar circumstances where the U.S. District Court
maintained the confidentiality of the underlying research used to
create reports by Congressional support agencies. I am including in the
Record a letter by Mr. Stanley M. Brand, a former General Counsel to
the House of Representatives, who agrees that my legislation will not
threaten CRS' protection under the Speech and Debate Clause.
I am also aware of potential copyright concerns if the CRS
information is made accessible to the public. For example, CRS has
informed me that it does not have a copyright agreement that will allow
it to make the maps used in CRS products available electronically. I
believe we can work out an equitable solution to resolve any copyright
concerns that would prevent any CRS Report, Issue Brief, or
Authorization or Appropriations product from being electronically
disseminated to the public.
Another concern has been raised about the 30 day delay between the
release of CRS material to Members of Congress and their staff and its
release to the public on the web site. This delay will make sure that
CRS has carried out its primary statutory duty of informing Congress
before releasing information the public. Also, it will allow CRS to
verify that its products are accurate and prepare them for public
release in order to protect CRS from liability problems and the
American people from being misinformed.
I would like to stress that opening up these select CRS products to
the public will in no way compete with existing commercial information
services. The public will have access to selected CRS products that are
currently available only to Members of Congress and their staff. I
firmly believe that the federal government should not be involved in
competing with legitimate private industry.
This bill has received popular support from across the country, and I
am including in the Record a letter of support from many concerned
industries and groups including America On-Line, IBM, Public Citizen,
and the League of Women Voters of the United States. I hope that my
colleagues will join them
[[Page S124]]
in supporting this legislation and opening up a useful source of
information to the American people.
Mr. President, I ask unanimous consent that additional material be
printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1578
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. AVAILABILITY OF CERTAIN CRS WEB SITE INFORMATION.
(a) Availability of Information.--
(1) In general.--The Director of the Congressional Research
Service shall make available on the Internet, for purposes of
access and retrieval by the public, all information that--
(A) is available through the Congressional Research Service
web site;
(B) is described in paragraph (2); and
(C) is not confidential as determined by--
(i) the Director; or
(ii) the head of a Federal department or agency that
provided the information to the Congressional Research
Service.
(2) Information.--The information referred to in paragraph
(1)(B) is as follows:
(A) All Congressional Research Service Issue Briefs.
(B) All Congressional Research Service Reports that are
available to Members of Congress through the Congressional
Research Service web site.
(C) All Congressional Research Service Authorization of
Appropriations Products or Appropriations Products.
(b) Time.--The information shall be so made available not
earlier than 30 days after the first day the information is
available to Members of Congress through the Congressional
Research Service web site.
(c) Requirements.--The Director of the Congressional
Research Service shall make the information available in a
manner that the Director determines--
(1) is practical and reasonable; and
(2) does not permit the submission of comments from the
public.
____
Congressional Accountability
Project,
Washington, DC, January 26, 1998.
Hon. John McCain and Daniel Coats,
Russell Senate Office Building, U.S. Senate, Washington, DC.
Dear Senators McCain and Coats: We happily endorse your
draft legislation to put Congressional Research Service (CRS)
reports and products on the Internet, including CRS Issue and
Legislative Briefs, and Authorization and Appropriation
products.
CRS products are some of the finest research prepared by
the federal government. They are a precious source of
government information on a huge range of topics. In a recent
editorial, Roll Call described CRS reports as ``often the
most trenchant and useful monographs available on a
subject.'' Citizens, scholars, journalists, librarians,
businesses, and many others have long wanted access to CRS
reports via the Internet.
We believe that taxpayers ought to be able to read the
research that we pay for. But citizens cannot obtain most CRS
products directly. Instead, we must purchase them from
private vendors, or engage in the burdensome and time-
consuming process of requesting a member of Congress to send
CRS products to us. Often, citizens must wait for weeks or
even months before such a request is filled. This barrier to
obtaining CRS products serves no useful purpose, and damages
citizens' ability to participate in the congressional
legislative process.
James Madison aptly described why the public needs
reliable, accurate information about current events: ``A
popular Government, without popular information, or the means
of acquiring it, is but a Prologue to a Farce or a Tragedy;
or, perhaps both. Knowledge will forever govern ignorance:
And a people who mean to be their own Governors, must arm
themselves with the power which knowledge gives.''
Your bill falls squarely within the spirit of Madison's
honorable words. Thanks for your efforts in making CRS
products available on the Internet.
Sincerely,
American Conservative Union.
American Protestant Health Alliance.
America Online Corp.
Danielle Brian, Executive Director, Project on Government
Oversight.
Business Software Alliance.
California Budget Project (CA).
Center for Media Education.
Center for Science in the Public Interest.
Citizen Advocacy Center (IL).
Timothy J. Coleman, Director, Kettle Range Conservation
Group (WA).
Computer Communications Industry Association.
Computer Professionals for Social Responsibility.
Congressional Accountability Project.
Consumer Project on Technology.
Decision Matrix Inc. (OR).
George Draffan, Director, Public Information Network (WA).
Electronic Frontier Foundation.
Fairness and Accuracy in Reporting.
Federation of American Scientists.
Ray Fenner, President, Superior Wilderness Action Network
(MI).
Darlene Flowers, Executive Director, Foster Parents
Association of Washington State (WA).
Forest Service Employees for Environmental Ethics.
Government Purchasing Project.
IBM.
Impact Voters of America.
Information Technology Association of America.
Institute for Local Self-Reliance.
Intel Corp.
League of Women Voters of the United States.
Marin Democratic Club (CA).
Halsey Minor, Chief Executive Officer, CNET.
Barbara J. Moore, Ph.D., President and CEO, Shape Up
America!
National Association of Manufacturers.
National Citizens Communications Lobby.
Native Forest Council (OR).
NetAction.
Netscape Communications Corp.
OMB Watch.
Public Citizen.
Public Interest Projects.
Amy Ridenour, President, The National Center for Public
Policy Research.
Greg Schuckman, Director of Public Affairs, American
Association of Engineering Societies.
Peter J. Sepp, Vice-President for Communications, National
Taxpayers Union.
Taxpayers for Common Sense.
TenantNet (NY).
Triad Healthcare Technologies, LLC (TX).
United Democratic Clubs, Orange County, CA; Larry
Trullinger, President.
United Seniors Association.
U.S. Public Interest Research Group (PIRG).
U.S. Term Limits.
Russell Verney, Chairman, Reform Party.
Virginia Journal of Law and Technology.
Western Land Exchange Project (WA).
____
Brand, Lowell & Ryan,
Washington, DC, January 27, 1998.
Hon. John McCain,
U.S. Senate, Russell Senate Office Building, Washington, DC.
Dear Senator McCain: I am writing to amplify the comments
that I recently made to the press concerning applicability of
the Speech or Debate Clause, U.S. Const. art. I, Sec. 6, cl.
1, to certain CRS products which your bill would, if enacted,
make available on the Internet. Juliet Eilperin, Memo Claims
That McCain Legislation to Put CRS Reports Online Could Have
Constitutional Problems, Roll Call, January 15, 1998, p. 8.
First, as General Counsel to the House of Representatives I
litigated virtually scores of cases involving the Speech or
Debate Clause, including a landmark case before the Supreme
Court reaffirming the central function of the clause in
protecting the legislative branch from judicial and executive
branch interference, United States v. Helstoski; 442 U.S.
477, Helstoski v. Meanor, 442 U.S. 500 (1979); see also,
Vander Jagt v. O'Neill, 699 F.2d 1166 (D.C. Cir. 1983); In Re
Grand Jury Investigation, 587 F.2d 589 (3d Cir. 1978); United
States v. Eilberg, 507 F. Supp. 267 (E.D. Pa. 1980); Benford
v. American Broadcasting Co., 98 F.R.D. 42 (D. Md. 1983),
rev'd sub nom. In Re: Guthrie, 735 F.2d 634 (4th Cir. 1984).
Many of these cases which I litigated were cited in the CRS
memorandum as supporting their conclusion that publication on
the Internet would adversely affect the Speech or Debate
Clause privilege.
I believe that the concerns expressed in the CRS memorandum
are either overstated, or the extent they are not, provide no
basis for arguing that protection of CRS works will be
weakened by your bill. I also want you to know that I was,
and remain, a strong advocate for vigorous assertion and
protection of the Speech or Debate Clause privilege as a
great bulwark of the separation of powers doctrine that
protects the Congress from Executive and Judicial branch
encroachment.
The CRS memorandum states ``extensive involvement by CRS in
the informing function might cause the judiciary and
administrative agencies to reassess their perception of CRS
as playing a substantial role in the legislative process, and
thereby might endanger a claim of immunity even in an
instance in which CRS was fulfilling its legislative
mission.''
This fear is simply unfounded. While the courts have
consistently relegated the so-called ``informing function''
to non-constitutionally protected status, they have also
steadfastly refused to permit litigants to pierce the
privilege for activities that are cognate to the legislative
process despite later dissemination outside the Congress. So,
for example, in McSurely v. McClellan, 553 F.2d 1277, 1286 n.
3 (D.C. Cir. 1976) (en banc), the Court refused to allow a
litigant to question Senate aides about acts taken within the
Committee, even though acts of dissemination outside the
Congress were subject to discovery. Publication of a CRS
product on the Internet would no more subject CRS employees
to questioning about the basis for their work, consultations
with colleagues or the sources of that work, than would be
the case if the same CRS product were obtained by means other
than the Internet. Indeed, the fact that House and Senate
proceedings are televised does not alter the applicability of
the clause to floor speeches, committee deliberations, staff
consultation, or other legislative activities. Even certain
consultations concerning press relations are protected though
dissemination to the media is not protected. Mary Jacoby,
Hill Press Releases Protected Speech, Roll Call, April 17,
[[Page S125]]
1995, p. 1 (the Senate Legal Counsel argued that because a
legislative discussion is embedded in a press release doesn't
entitle a litigant to question staff about the substance of
the legislation); see also Tavoulareas v. Piro, 527 F. Supp.
676, 682 (D.D.C. 1981) (court ordered congressional deponents
to merely identify documents disseminated outside of Congress
but did not permit questions regarding preparation of the
documents, the basis of conclusions contained therein, or the
sources who provided evidence relied upon in the documents),
Peroff v. Manual, 421 F. Supp. 570, 574 (D.D.C. 1976)
(preparation of a Committee witness by a congressional
investigator is protected because ``facially legislative in
character''). Under this line of caselaw, it is difficult to
foresee how the mere dissemination of a CRS product could
subject any CRS employee to inquiry concerning the
preparation of such a product. In short, because ``discovery
into alleged conduct of [legislative aides] not protected by
the Speech or Debate Clause can infringe the [legislative
aides'] right to be free from inquiry into legislative acts
which are so protected,'' McSurely v. McClellan, 521 F.2d
1024, 1033 (D.C. Cir. 1975), aff'd en banc by an equally
divided court, 553 F.2d 1277 (1976) courts have imposed the
Clause as a bar to any inquiry into acts unrelated to
dissemination of the congressional reports.
In Tavaulareas v. Piro, 527 F. Supp. at 682, the court
ruled ``[t]he fact that the documents were ultimately
disseminated outside the Congress does not provide any
justification'' for piercing the privilege as to the staff's
internal use of the document. Accord McSurely v. McClellan,
553 F.2d at 1296-1298 (use and retention of illegally seized
documents by Committee not actionable); United States v.
Helstoski, 442 U.S. 477, 489 (1979) (clause bars introduction
into evidence of even non-contemporaneous discussions and
correspondence which merely describe and refer to legislative
acts in bribery prosecution of Member); Eastland v. United
States Serviceman's Fund, 421 U.S. at 499 n. 13 (subpoena to
Senate staff aide for documents and testimony quashed because
``received by [the employee] pursuant to his official duties
as a staff employee of the Senate'' and therefore ``. . .
within the privilege of the Senate''). See also United States
v. Hoffa, 205 F. Supp. 710, 723 (S.D. Fla 1962), cert, denied
sub nom Hoffa v. Lieb, 371 U.S. 892 (wiretap withheld by
defendant by ``invocation of legislative privilege by the
United States Senate'').
In the Tavoulareas case, in which I represented the House
deponents, part of the theory of plaintiff's case against the
Post was the reporter ``laundered'' the story through the
committee ``as a means of lending legitimacy'' to the stories
and information provided by other sources, Tavoulareas v.
Piro, 93 F.R.D. at 18. In pursuance of validating this
theory, the plaintiff sought to prove that the committee
never formally authorized the investigation, but rather that
the staff merely served as a conduit and engaged in no bona
fide investigation activity. The court ruled that ``although
plaintiffs have repeatedly suggested that the subject
investigation was not actually aimed at uncovering
information of valid legislative interest . . . it is clear
that such assertions, even if true, do not pierce the
legislative privilege.''
As a practical matter, therefore, a litigant suing or
seeking to take testimony from a CRS employee based on
dissemination of a report alleged to be libelous or
actionable may be unable to obtain the collateral evidence
needed to prove such a claim--a serious impediment to
bringing such a case in the first place.
Even in the case of Doe v. McMillan, 412 U.S.C. 306 (1973)
relied on by the CRS memorandum to support its narrow view of
the Clause's protection, the Court of Appeals on remand
stated: ``Restricting distribution of committee hearings and
reports to Members of Congress and the federal agencies would
be unthinkable.'' 566 F.2d 713, 718 (D.C. Cir. 1977). It
would be similarly unthinkable to subject CRS to broad
ranging discovery simply because its work product was made
available on the Internet.
The CRS memorandum raises the specter that litigants might
even seek ``the files of CRS analysts'' in actions
challenging the privilege. It is beyond peradventure of
doubt, however, that publication of even alleged defamatory
or actionable congressional committee reports does not
entitle a litigant to legislative flies used to created
in preparing such a report. United States v. Peoples
Temple of the Disciples of Christ, 515 F. Supp. 246, 248-
49 (D.D.C. 1981) In re: Guthrie, Clerk, U.S. House of
Representatives, 773 F.2d 634 (4th Cir. 1984), Eastland v.
United States Servicemen's Fund, 421 U.S. at 499, n. 13.
Given the foregoing caselaw, I fail to see a realistic
threat that CFS employees will be subjected to any
increased risk of liability, or discovery of their files.
Of course, nothing can prevent litigants from filing
frivolous or ill-founded suits, but their successful
prosecution or ability to obtain evidence from legislative
files seems remote and nothing in your bill would change
that.
The CRS memoranda even goes so far as to suggest that
claims of speech or debate immunity for CRS products might
lead to in camera inspection of material, itself an incursion
into legislative branch discretion. Yet in the very case
cited to by CRS memo, no court ordered in camera inspection
of House documents. In Re: Guthrie, supra, involved no camera
inspection of legislation documents. These cases are
typically litigated on the basis of the facial validity of
the privilege and few, if any, courts of which I am aware
have even gone so far as to order in camera inspection. See
United States v. Dowdy, 479 F. 2d 213, 226 (4th Cir.
1973)(``Once it was determined, as here, that the legislative
function. . .was apparently being performed, the proprietary
and motivation for the action taken as well as the detail of
the acts performed, are immune from judicial inquiry'').
Under the Clause, courts simply do not routinely resort to in
camera review to resolve privilege disputes. Given the now
highly developed judicial analysis of the applicability of
the Clause to modern legislative practices it rarely occurs.
In one recent celebrated case cited to by the CRS, the Court
upheld a claim of privilege for tobacco company documents
obtained by Congress even though they were alleged to have
been stolen, without ever seeking in camera review. Brown &
Williamson Tobacco Corp. v. Williams, 62 F.3d 408, 417 (D.C.
Cir. 1995) (``Once the documents were received by Congress
for legislative use--at least so long as congressmen were not
involved in the alleged theft--an absolute constitutional ban
of privilege drops like a steel curtain to prevent B&W from
seeking discovery'').
In an abundance of caution, and to address CRS' concerns,
you might consider adding the following language to the bill:
``Nothing herein shall be deemed or considered to diminish,
qualify, condition, waive or otherwide affect applicability
of the Constitution's Speech or Debate Clause, or any other
privilege available to Congress, its agencies or their
employees, to any CRS product made available on the Internet
under this bill.''
I appreciate the CRS sensitivity to subjecting its
employees, or their work product, to searching discovery by
litigants. Based on the very good caselaw protecting their
performance of legislative duties and the strong
institutional precedent in both the House and Senate in
defending CRS against such intrusions, I do not believe your
bill creates any greater exposure to such risks that already
exists.
I hope my views are helpful in your deliberations on this
issue.
Sincerely,
Stanley M. Brand.
Mr. COATS. Mr. President, I am pleased to join the distinguished
Senator from Arizona in introducing legislation directing the
Congressional Research Service to make available, on-line, CRS Reports,
Issue Briefs, and more comprehensive CRS reports on federal
authorizations and appropriations.
CRS is funded with over $64 million in taxpayer money every year and
produces perhaps the most prolific and quality research available on
policy and legislative issues. In making available information and
materials that are used every day by Members and their staffs in
developing policy initiatives and legislation, we will be opening a
more informed relationship between the American people and the Congress
that serves them.
Beyond the tremendous value of informing the American people on the
issues before their Congress, this legislation will help to shine some
light on the federal government, allowing the American people to see
the documents which influence the decision-making process.
Mr. President, FDR once said that, ``The only bulwark of continuing
liberty is a government strong enough to protect the interest of the
people, and people strong enough and well enough informed to maintain
its sovereign control over its government.'' At a time when public
cynicism about government is at an all-time high, when government has
encroached upon virtually every aspect of our daily lives, this
statement is particularly poignant.
As I have stated, CRS information briefs play a critical role in
assisting Members of Congress in policy development and the legislative
process. By making these products readily available to the American
people, who pay for them, we hold out the promise of demystifying a
legislative process that has become so complex and arcane that many
Americans have simply tuned out.
Mr. President, more than ever, information is power. It is my hope
that the effect of this legislation will be to give a better informed
public more power over their government.
[[Page S126]]
My intention today is to keep my remarks short. As this legislation
moves through the process, I will ask my colleagues to indulge me with
more time to discuss the bill in detail. I would like to commend
Senator McCain for his leadership on this issue, and to ask my
colleagues for their support in this effort to make the Congress more
accessible to the people. I yield the floor.
______
By Mr. DeWINE (for himself, Mr. Jeffords, Mr. Kennedy, Mr.
Wellstone, Mr. Harkin, Mr. Frist, Ms. Collins, Mr. Dodd, Mr.
Reed, Mr. Chafee, and Mr. Bingaman):
S. 1579. A bill to amend the Rehabilitation Act of 1973 to extend the
authorizations of appropriations for such Act, and for other purposes;
to the Committee on Labor and Human Resources.
THE REHABILITATION ACT AMENDMENTS OF 1998
Mr. DeWINE. Mr. President, on September 17, 1997, as a member of the
Senate Labor and Human Resources Committee and as Chairman of the
Subcommittee on Employment and Training, I introduced S. 1186, the
Workforce Investment Partnership Act. This legislation represents a
tremendous effort to reshape our country's job training system,
eliminate its fragmented and ineffective programs, and prepare it for
the new demands of the next century.
Today, in the same spirit, I introduce the reauthorized
Rehabilitation Act and am very pleased to be joined by Senators
Jeffords, Kennedy, Wellstone, Harkin, Frist, Collins, Reed, and Chafee.
The Rehabilitation Act is the country's only Federally funded job
training program for individuals with disabilities. If we are to truly
reshape the country's job training programs--and begin to create a
seamless system--we must bring all the programs, including vocational
rehabilitation, in line with each other. We must link their efforts to
train and place individuals. And we must ensure cooperation and
awareness among their personnel.
Reauthorizing the Rehabilitation Act of 1973 gives us the perfect
opportunity to ensure that the vocational rehabilitation (VR) system
does just that.
It links the VR system to the states' new job training systems under
the Workforce Investment Partnership Act.
It streamlines the VR system, and eliminates unnecessary and wasteful
requirements on state agencies.
It improves the provision of services that lead to more jobs and
better jobs for individuals with disabilities.
And it reauthorizes the Rehabilitation Act for 7 years, to mirror the
reauthorization schedule of the Workforce Investment Partnership Act.
Linking the VR system to states' new workforce systems should not be
confused with compromising the integrity of the VR system. Under no
circumstances, proposed either in this reauthorization or in S. 1186,
will funding for VR be jeopardized or diluted. However, no one should
underestimate the importance of cooperation and awareness between the
two systems, and the strong statutory links that are necessary to
ensure such cooperation.
Mr. President, let me elaborate on some of the links included in this
reauthorization.
First, one member of a state's State Partnership, under S. 1186,
would also be a member of a state's State Rehabilitation Council. State
Rehabilitation Councils are responsible for advising state VR agencies
and helping them develop the state plan for implementing rehabilitation
services. Input from a State Partnership will help assure that the
programs do not duplicate each other's efforts.
Second, a state's VR agency is required to develop cooperative
agreements with other components of the state's workforce investment
system. These agreements should include: Arrangements for interagency
staff training; arrangements to share data electronically regarding
labor market information and information on specific job vacancies;
arrangements to use common intake procedures, forms, and referral
procedures; agreements to share client databases; and arrangements for
resolving interagency disputes.
Third, the Rehabilitation Services Agency Commissioner, who is
required to submit a report to Congress and the President on the
activities carried out under the Rehabilitation Act for a fiscal year,
must now include in his report the same information required in the
Workforce Investment Partnership Act.
Linking the reporting requirements helps assure that VR and the state
workforce systems will be evaluated on the same results, including
statistics on job placement, job retention six and twelve months after
placement, and on how many did or did not complete their training.
Finally, the bill clearly states that its purpose is to ``assist
states in operating statewide comprehensive, coordinated, effective,
efficient, and accountable programs of vocational rehabilitation, each
of which is an integral part of a statewide workforce investment
system.''
After establishing significant links between state workforce systems
and state vocational rehabilitation systems, my second objective in
this bill is to streamline the existing VR system. For example:
First, the duplicative and wasteful requirements to develop state
plans were removed. For example, the entire concept of a ``strategic
plan'' requiring states to develop already existing or required goals
and standards elsewhere is eliminated. In addition to saving time for
state administrators, this means that states would no longer have to
spend 1.5% of their Federal allotment on the ``strategic plan.'' In
Ohio, this means a savings of close to 3 million dollars--savings the
state of Ohio could now spend on providing services and getting people
jobs.
Second, eligibility procedures also have been simplified. Under this
reauthorization bill, an individual could demonstrate eligibility for
VR services based on information attained from another program with
either the same or higher eligibility criteria. Therefore, state
agencies would not longer have to reinvent the wheel to determine
eligibility for individuals who can already demonstrate it.
Mr. President, in addition to linkages and streamlining, we have
vastly improved the VR system in several ways.
First, all individuals eligible for VR programming would now receive
at least basic services. Current law allows states under an ``order of
selection'' to ignore eligible individuals who have come for job
assistance if they do not meet the state's definition of ``most
severely disabled.'' Now, even those disabled individuals who would not
otherwise be served must receive at least evaluative services, job
placement information, and referral services. A state may opt to
provide additional services to these individuals, but not everyone will
have access to basic assistance and information.
Second, individuals' roles in developing their own ``Individualized
Rehabilitation Employment Plans'' have been strengthened. Individuals
with disabilities, who will always have the opportunity of working as a
team with a VR counselor, will also have more choice as to what their
plan will provide.
Third, the dispute resolution process between clients and state
agencies has been vastly improved, ensuring real due process for all
parties. No longer will a state VR administrator be allowed to review
decisions in which the state agency is always a party. Under this
reauthorization bill, it is a state's option to have an administrative
review of an initial decision, but this review must be conducted by
someone not affiliated with the state VR agency.
If a state does not have such a review, any appeals from an initial
hearing proceed directly to civil court.
Furthermore, assuming both parties agree, mediation is now an option
for either the state VR agency or the individual.
Finally, one of the most positive changes emphasizes the value of
self-employment as a possibility for individuals with disabilities.
Individuals with disabilities, together with their VR counselors, can
develop plans in which their goal is to be self-employed. It is a step
that gives VR clients more choice in how they will live their lives and
become more independent members of their communities.
Before I conclude, Mr. President, I would like to point out the broad
bipartisan support for this bill and its link to the Workforce
Investment Partnership Act enjoys. Members from both sides of the
aisle, the Department of
[[Page S127]]
Education, and many interest groups worked together in a very open
negotiation to produce this legislation--one that will truly improve
the lives of millions of people.
I thank the Chairman of the Labor Committee, Senator Jeffords; the
Ranking Member of the Committee, Senator Kennedy; the Ranking Member of
the Employment and Training Subcommittee, Senator Wellstone, and my
colleague from Iowa, Senator Harkin for all the work they and their
staffs put into this process. I also would like to thank my colleague
from Tennessee, Senator Frist and his staff for his contribution not
only in the 105th Congress, but also for his contributions to
developing links to our previous workforce bill in the 104th Congress.
Mr. President, I am hopeful the Senate will approve this legislation
soon. Passage of this bill will create a system that will improve the
lives of individuals with disabilities and provide opportunities for
more jobs. This bill would streamline the VR system, making it more
efficient and effective, and couple the vocational rehabilitation
system's job training efforts with states' workforce systems' efforts
to develop a seamless system of job training.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1579
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Rehabilitation Act
Amendments of 1998''.
SEC. 2. TITLE.
The title of the Rehabilitation Act of 1973 is amended by
striking ``to establish special responsibilities'' and all
that follows and inserting the following: ``to create linkage
between State vocational rehabilitation programs and
workforce investment activities carried out under the
Workforce Investment Partnership Act of 1998, to establish
special responsibilities for the Secretary of Education for
coordination of all activities with respect to individuals
with disabilities within and across programs administered by
the Federal Government, and for other purposes.''.
SEC. 3. GENERAL PROVISIONS.
The Rehabilitation Act of 1973 is amended by striking the
matter preceding title I and inserting the following:
``Sec. 1. Short title; table of contents.
``Sec. 2. Findings; purpose; policy.
``Sec. 3 Rehabilitation Services Administration.
``Sec. 4. Advance funding.
``Sec. 5. Joint funding.
``Sec. 7. Definitions.
``Sec. 8. Allotment percentage.
``Sec. 10. Nonduplication.
``Sec. 11. Application of other laws.
``Sec. 12. Administration of the Act.
``Sec. 13. Reports.
``Sec. 14. Evaluation.
``Sec. 15. Information clearinghouse.
``Sec. 16. Transfer of funds.
``Sec. 17. State administration.
``Sec. 18. Review of applications.
``Sec. 19. Carryover.
``Sec. 20. Client assistance information.
``Sec. 21. Traditionally underserved populations.
``TITLE I--VOCATIONAL REHABILITATION SERVICES
``Part A--General Provisions
``Sec. 100. Declaration of policy; authorization of appropriations.
``Sec. 101. State plans.
``Sec. 102. Eligibility and individualized rehabilitation employment
plan.
``Sec. 103. Vocational rehabilitation services.
``Sec. 104. Non-Federal share for establishment of program.
``Sec. 105. State Rehabilitation Council.
``Sec. 106. Evaluation standards and performance indicators.
``Sec. 107. Monitoring and review.
``Sec. 108. Expenditure of certain amounts.
``Sec. 109. Training of employers with respect to Americans with
Disabilities Act of 1990.
``Part B--Basic Vocational Rehabilitation Services
``Sec. 110. State allotments.
``Sec. 111. Payments to States.
``Sec. 112. Client assistance program.
``Part C--American Indian Vocational Rehabilitation Services
``Sec. 121. Vocational rehabilitation services grants.
``Part D--Vocational Rehabilitation Services Client Information
``Sec. 131. Data sharing.
``TITLE II--RESEARCH AND TRAINING
``Sec. 200. Declaration of purpose.
``Sec. 201. Authorization of appropriations.
``Sec. 202. National Institute on Disability and Rehabilitation
Research.
``Sec. 203. Interagency Committee.
``Sec. 204. Research and other covered activities.
``Sec. 205. Rehabilitation Research Advisory Council.
``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
``Sec. 301. Declaration of purpose and competitive basis of grants and
contracts.
``Sec. 302. Training.
``Sec. 303. Special demonstration program.
``Sec. 304. Migrant and seasonal farmworkers.
``Sec. 305. Recreational programs.
``Sec. 306. Measuring of project outcomes and performance.
``TITLE IV--NATIONAL COUNCIL ON DISABILITY
``Sec. 400. Establishment of National Council on Disability.
``Sec. 401. Duties of National Council.
``Sec. 402. Compensation of National Council members.
``Sec. 403. Staff of National Council.
``Sec. 404. Administrative powers of National Council.
``Sec. 405. Authorization of Appropriations.
``TITLE V--RIGHTS AND ADVOCACY
``Sec. 501. Employment of individuals with disabilities.
``Sec. 502. Architectural and Transportation Barriers Compliance Board.
``Sec. 503. Employment under Federal contracts.
``Sec. 504. Nondiscrimination under Federal grants and programs.
``Sec. 505. Remedies and attorneys' fees.
``Sec. 506. Secretarial responsibilities.
``Sec. 507. Interagency Disability Coordinating Council.
``Sec. 508. Electronic and information technology regulations.
``Sec. 509. Protection and advocacy of individual rights.
``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
``Sec. 601. Short title.
``Part A--Projects in Telecommuting and Self-Employment for Individuals
with Disabilities
``Sec. 611. Findings, policies, and purposes.
``Sec. 612. Projects in telecommuting for individuals with
disabilities.
``Sec. 613. Projects in self-employment for individuals with
disabilities.
``Sec. 614. Discretionary authority for dual-purpose applications.
``Sec. 615. Authorization of appropriations.
``Part B--Projects With Industry
``Sec. 621. Projects with industry.
``Sec. 622. Authorization of appropriations.
``Part C--Supported Employment Services for Individuals With
Significant Disabilities
``Sec. 631. Purpose.
``Sec. 632. Allotments.
``Sec. 633. Availability of services.
``Sec. 634. Eligibility.
``Sec. 635. State plan.
``Sec. 636. Restriction.
``Sec. 637. Savings provision.
``Sec. 638. Authorization of appropriations.
``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
``Chapter 1--Individuals With Significant Disabilities
``Part A--General Provisions
``Sec. 701. Purpose.
``Sec. 702. Definitions.
``Sec. 703. Eligibility for receipt of services.
``Sec. 704. State plan.
``Sec. 705. Statewide Independent Living Council.
``Sec. 706. Responsibilities of the Commissioner.
``Part B--Independent Living Services
``Sec. 711. Allotments.
``Sec. 712. Payments to States from allotments.
``Sec. 713. Authorized uses of funds.
``Sec. 714. Authorization of appropriations.
``Part C--Centers for Independent Living
``Sec. 721. Program authorization.
``Sec. 722. Grants to centers for independent living in States in which
Federal funding exceeds State funding.
``Sec. 723. Grants to centers for independent living in States in which
State funding equals or exceeds Federal funding.
``Sec. 724. Centers operated by State agencies.
``Sec. 725. Standards and assurances for centers for independent
living.
``Sec. 726. Definitions.
``Sec. 727. Authorization of appropriations.
``Chapter 2--Independent Living Services for Older Individuals Who are
Blind
``Sec. 751. Definition.
``Sec. 752. Program of grants.
``Sec. 753. Authorization of appropriations.
``findings; purpose; policy
``Sec. 2. (a) Findings.--Congress finds that--
``(1) millions of Americans have one or more physical or
mental disabilities and the number of Americans with such
disabilities is increasing;
[[Page S128]]
``(2) individuals with disabilities constitute one of the
most disadvantaged groups in society;
``(3) disability is a natural part of the human experience
and in no way diminishes the right of individuals to--
``(A) live independently;
``(B) enjoy self-determination;
``(C) make choices;
``(D) contribute to society;
``(E) pursue meaningful careers; and
``(F) enjoy full inclusion and integration in the economic,
political, social, cultural, and educational mainstream of
American society;
``(4) increased employment of individuals with disabilities
can be achieved through implementation of statewide
activities carried out under the Workforce Investment
Partnership Act of 1998 that provide meaningful and effective
participation for individuals with disabilities in workforce
investment activities and activities carried out under the
vocational rehabilitation program established under title I,
and through the provision of independent living services,
support services, and meaningful opportunities for employment
in integrated work settings through the provision of
reasonable accommodations;
``(5) individuals with disabilities continually encounter
various forms of discrimination in such critical areas as
employment, housing, public accommodations, education,
transportation, communication, recreation,
institutionalization, health services, voting, and public
services; and
``(6) the goals of the Nation properly include the goal of
providing individuals with disabilities with the tools
necessary to--
``(A) make informed choices and decisions; and
``(B) achieve equality of opportunity, full inclusion and
integration in society, employment, independent living, and
economic and social self-sufficiency, for such individuals.
``(b) Purpose.--The purposes of this Act are--
``(1) to empower individuals with disabilities to maximize
employment, economic self-sufficiency, independence, and
inclusion and integration into society, through--
``(A) statewide activities carried out in accordance with
the Workforce Investment Partnership Act of 1998 that
include, as integral components, comprehensive and
coordinated state-of-the-art programs of vocational
rehabilitation;
``(B) independent living centers and services;
``(C) research;
``(D) training;
``(E) demonstration projects; and
``(F) the guarantee of equal opportunity; and
``(2) to ensure that the Federal Government plays a
leadership role in promoting the employment of individuals
with disabilities, especially individuals with significant
disabilities, and in assisting States and providers of
services in fulfilling the aspirations of such individuals
with disabilities for meaningful and gainful employment and
independent living.
``(c) Policy.--It is the policy of the United States that
all programs, projects, and activities receiving assistance
under this Act shall be carried out in a manner consistent
with the principles of--
``(1) respect for individual dignity, personal
responsibility, self-determination, and pursuit of meaningful
careers, based on informed choice, of individuals with
disabilities;
``(2) respect for the privacy, rights, and equal access
(including the use of accessible formats), of the
individuals;
``(3) inclusion, integration, and full participation of the
individuals;
``(4) support for the involvement of an individual's
representative if an individual with a disability requests,
desires, or needs such support; and
``(5) support for individual and systemic advocacy and
community involvement.
``rehabilitation services administration
``Sec. 3. (a) There is established in the Office of the
Secretary a Rehabilitation Services Administration which
shall be headed by a Commissioner (hereinafter in this Act
referred to as the `Commissioner') appointed by the President
by and with the advice and consent of the Senate. Except for
titles IV and V and part A of title VI and as otherwise
specifically provided in this Act, such Administration shall
be the principal agency, and the Commissioner shall be the
principal officer, of such Department for carrying out this
Act. The Commissioner shall be an individual with substantial
experience in rehabilitation and in rehabilitation program
management. In the performance of the functions of the
office, the Commissioner shall be directly responsible to the
Secretary or to the Under Secretary or an appropriate
Assistant Secretary of such Department, as designated by the
Secretary. The functions of the Commissioner shall not be
delegated to any officer not directly responsible, both with
respect to program operation and administration, to the
Commissioner. Any reference in this Act to duties to be
carried out by the Commissioner shall be considered to be a
reference to duties to be carried out by the Secretary acting
through the Commissioner. In carrying out any of the
functions of the office under this Act, the Commissioner
shall be guided by general policies of the National Council
on Disability established under title IV of this Act.
``(b) The Secretary shall take whatever action is necessary
to insure that funds appropriated pursuant to this Act, as
well as unexpended appropriations for carrying out the
Vocational Rehabilitation Act (29 U.S.C. 31-42), are expended
only for the programs, personnel, and administration of
programs carried out under this Act.
``(c) The Secretary shall take such action as necessary to
ensure that--
``(1) the staffing of the Rehabilitation Services
Administration shall be in sufficient numbers to meet program
needs and at levels which will attract and maintain the most
qualified personnel; and
``(2) such staff includes individuals who have training and
experience in the provision of rehabilitation services and
that staff competencies meet professional standards.
``advance funding
``Sec. 4. (a) For the purpose of affording adequate notice
of funding available under this Act, appropriations under
this Act are authorized to be included in the appropriation
Act for the fiscal year preceding the fiscal year for which
they are available for obligation.
``(b) In order to effect a transition to the advance
funding method of timing appropriation action, the authority
provided by subsection (a) of this section shall apply
notwithstanding that its initial application will result in
the enactment in the same year (whether in the same
appropriation Act or otherwise) of two separate
appropriations, one for the then current fiscal year and one
for the succeeding fiscal year.
``joint funding
``Sec. 5. Pursuant to regulations prescribed by the
President, and to the extent consistent with the other
provisions of this Act, where funds are provided for a single
project by more than one Federal agency to an agency or
organization assisted under this Act, the Federal agency
principally involved may be designated to act for all in
administering the funds provided, and, in such cases, a
single non-Federal share requirement may be established
according to the proportion of funds advanced by each agency.
When the principal agency involved is the Rehabilitation
Services Administration, it may waive any grant or contract
requirement (as defined by such regulations) under or
pursuant to any law other than this Act, which requirement is
inconsistent with the similar requirements of the
administering agency under or pursuant to this Act.
``SEC. 7. DEFINITIONS.
``For the purposes of this Act:
``(1) Administrative costs.--The term `administrative
costs' means expenditures incurred by the designated State
unit in the performance of administrative functions under the
vocational rehabilitation program carried out under title I,
including expenses related to program planning, development,
monitoring, and evaluation, including--
``(A) expenses for--
``(i) quality assurance;
``(ii) budgeting, accounting, financial management,
information systems, and related data processing;
``(iii) provision of information about the program to the
public;
``(iv) technical assistance and related support services to
other State agencies, private nonprofit organizations, and
businesses and industries, except for technical assistance
and support services described in section 103(b)(5);
``(v) the State Rehabilitation Council and other entities
that advise the designated State unit with regard to the
provision of vocational rehabilitation services;
``(vi) removal of architectural barriers in State
vocational rehabilitation agency offices and State operated
rehabilitation facilities;
``(vii) operation and maintenance of designated State unit
facilities, equipment, and grounds;
``(viii) supplies; and
``(ix)(I) administration of the comprehensive system of
personnel development described in section 101(a)(7),
including personnel administration, and administration of
affirmative action plans;
``(II) training and staff development; and
``(III) administrative salaries, including clerical and
other support staff salaries, in support of the
administrative functions;
``(B) travel costs related to carrying out the program,
other than travel costs related to the provision of services;
``(C) costs incurred in conducting reviews of
rehabilitation counselor or coordinator determinations; and
``(D) legal expenses required in the administration of the
program.
``(2) Assessment for determining eligibility and vocational
rehabilitation needs.--The term `assessment for determining
eligibility and vocational rehabilitation needs' means, as
appropriate in each case--
``(A)(i) a review of existing data--
``(I) to determine whether an individual is eligible for
vocational rehabilitation services; and
``(II) to assign priority for an order of selection
described in section 101(a)(5)(A) in the States that use an
order of selection pursuant to section 101(a)(5)(A); and
``(ii) to the extent necessary, the provision of
appropriate assessment activities to obtain necessary
additional data to make such determination and assignment;
``(B) to the extent additional data is necessary to make a
determination of the employment outcomes, and the objectives,
nature, and scope of vocational rehabilitation
[[Page S129]]
services, to be included in the individualized rehabilitation
employment plan of an eligible individual,, a comprehensive
assessment to determine the unique strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice, including the need for supported employment,
of the eligible individual, which comprehensive assessment--
``(i) is limited to information that is necessary to
identify the rehabilitation needs of the individual and to
develop the individualized rehabilitation employment plan of
the eligible individual;
``(ii) uses, as a primary source of such information, to
the maximum extent possible and appropriate and in accordance
with confidentiality requirements--
``(I) existing information obtained for the purposes of
determining the eligibility of the individual and assigning
priority for an order of selection described in section
101(a)(5)(A) for the individual; and
``(II) such information as can be provided by the
individual and, where appropriate, by the family of the
individual;
``(iii) may include, to the degree needed to make such a
determination, an assessment of the personality, interests,
interpersonal skills, intelligence and related functional
capacities, educational achievements, work experience,
vocational aptitudes, personal and social adjustments, and
employment opportunities of the individual, and the medical,
psychiatric, psychological, and other pertinent vocational,
educational, cultural, social, recreational, and
environmental factors, that affect the employment and
rehabilitation needs of the individual; and
``(iv) may include, to the degree needed, an appraisal of
the patterns of work behavior of the individual and services
needed for the individual to acquire occupational skills, and
to develop work attitudes, work habits, work tolerance, and
social and behavior patterns necessary for successful job
performance, including the utilization of work in real job
situations to assess and develop the capacities of the
individual to perform adequately in a work environment;
``(C) referral, for the provision of rehabilitation
technology services to the individual, to assess and develop
the capacities of the individual to perform in a work
environment; and
``(D) an exploration of the individual's abilities,
capabilities, and capacity to perform in work situations,
through the use of trial work experiences, including
experiences in which the individual is provided appropriate
supports and training.
``(3) Assistive technology device.--The term `assistive
technology device' has the meaning given such term in section
3(2) of the Technology-Related Assistance for Individuals
With Disabilities Act of 1988 (29 U.S.C. 2202(2)), except
that the reference in such section to the term `individuals
with disabilities' shall be deemed to mean more than one
individual with a disability as defined in paragraph (20)(A).
``(4) Assistive technology service.--The term `assistive
technology service' has the meaning given such term in
section 3(3) of the Technology-Related Assistance for
Individuals With Disabilities Act of 1988 (29 U.S.C.
2202(3)), except that the reference in such section--
``(A) to the term `individual with a disability' shall be
deemed to mean an individual with a disability, as defined in
paragraph (20)(A); and
``(B) to the term `individuals with disabilities' shall be
deemed to mean more than one such individual.
``(5) Community rehabilitation program.--The term
`community rehabilitation program' means a program that
provides directly or facilitates the provision of vocational
rehabilitation services to individuals with disabilities, and
that provides, singly or in combination, for an individual
with a disability to enable the individual to maximize
opportunities for employment, including career advancement--
``(A) medical, psychiatric, psychological, social, and
vocational services that are provided under one management;
``(B) testing, fitting, or training in the use of
prosthetic and orthotic devices;
``(C) recreational therapy;
``(D) physical and occupational therapy;
``(E) speech, language, and hearing therapy;
``(F) psychiatric, psychological, and social services,
including positive behavior management;
``(G) assessment for determining eligibility and vocational
rehabilitation needs;
``(H) rehabilitation technology;
``(I) job development, placement, and retention services;
``(J) evaluation or control of specific disabilities;
``(K) orientation and mobility services for individuals who
are blind;
``(L) extended employment;
``(M) psychosocial rehabilitation services;
``(N) supported employment services and extended services;
``(O) services to family members when necessary to the
vocational rehabilitation of the individual;
``(P) personal assistance services; or
``(Q) services similar to the services described in one of
subparagraphs (A) through (P).
``(6) Criminal act.--The term `criminal act' means any
crime, including an act, omission, or possession under the
laws of the United States or a State or unit of general local
government, which poses a substantial threat of personal
injury, notwithstanding that by reason of age, insanity, or
intoxication or otherwise the person engaging in the act,
omission, or possession was legally incapable of committing a
crime.
``(7) Designated state agency.--The term `designated State
agency' means an agency designated under section
101(a)(2)(A).
``(8) Designated state unit.--The term `designated State
unit' means--
``(A) any State agency unit required under section
101(a)(2)(B)(ii); or
``(B) in cases in which no such unit is so required, the
State agency described in section 101(a)(2)(B)(i).
``(9) Disability.--The term `disability' means--
``(A) except as otherwise provided in subparagraph (B), a
physical or mental impairment that constitutes or results in
a substantial impediment to employment; or
``(B) for purposes of sections 2, 14, and 15, and titles
II, IV, V, and VII, a physical or mental impairment that
substantially limits one or more major life activities.
``(10) Drug and illegal use of drugs.--
``(A) Drug.--The term `drug' means a controlled substance,
as defined in schedules I through V of section 202 of the
Controlled Substances Act (21 U.S.C. 812).
``(B) Illegal use of drugs.--The term `illegal use of
drugs' means the use of drugs, the possession or distribution
of which is unlawful under the Controlled Substances Act.
Such term does not include the use of a drug taken under
supervision by a licensed health care professional, or other
uses authorized by the Controlled Substances Act or other
provisions of Federal law.
``(11) Employment outcome.--The term `employment outcome'
means, with respect to an individual--
``(A) entering or retaining full-time or, if appropriate,
part-time competitive employment in the integrated labor
market;
``(B) satisfying the vocational outcome of supported
employment; or
``(C) satisfying any other vocational outcome the Secretary
may determine to be appropriate (including satisfying the
vocational outcome of self-employment or business ownership),
in a manner consistent with this Act.
``(12) Establishment of a community rehabilitation
program.--The term `establishment of a community
rehabilitation program' includes the acquisition, expansion,
remodeling, or alteration of existing buildings necessary to
adapt them to community rehabilitation program purposes or to
increase their effectiveness for such purposes (subject,
however, to such limitations as the Secretary may determine,
in accordance with regulations the Secretary shall prescribe,
in order to prevent impairment of the objectives of, or
duplication of, other Federal laws providing Federal
assistance in the construction of facilities for community
rehabilitation programs), and may include such additional
equipment and staffing as the Commissioner considers
appropriate.
``(13) Extended services.--The term `extended services'
means ongoing support services and other appropriate
services, needed to support and maintain an individual with a
most significant disability in supported employment, that--
``(A) are provided singly or in combination and are
organized and made available in such a way as to assist an
eligible individual in maintaining supported employment;
``(B) are based on a determination of the needs of an
eligible individual, as specified in an individualized
rehabilitation employment plan; and
``(C) are provided by a State agency, a nonprofit private
organization, employer, or any other appropriate resource,
after an individual has made the transition from support
provided by the designated State unit.
``(14) Federal share.--
``(A) In general.--Subject to subparagraph (B), the term
`Federal share' means 78.7 percent.
``(B) Relationship to expenditures by a political
subdivision.--For the purpose of determining the non-Federal
share with respect to a State, expenditures by a political
subdivision thereof or by a local agency shall be regarded as
expenditures by such State, subject to such limitations and
conditions as the Secretary shall by regulation prescribe.
``(15) Impartial hearing officer.--
``(A) In general.--The term `impartial hearing officer'
means an individual--
``(i) who is not an employee of a public agency (other than
an administrative law judge, hearing examiner, or employee of
an institution of higher education);
``(ii) who is not a member of the State Rehabilitation
Council described in section 105;
``(iii) who has not been involved previously in the
vocational rehabilitation of the applicant or client;
``(iv) who has knowledge of the delivery of vocational
rehabilitation services, the State plan under section 101,
and the Federal and State rules governing the provision of
such services and training with respect to the performance of
official duties; and
``(v) who has no personal or financial interest that would
be in conflict with the objectivity of the individual.
``(B) Construction.--An individual shall not be considered
to be an employee of a public agency for purposes of
subparagraph (A)(i) solely because the individual is paid by
the agency to serve as a hearing officer.
[[Page S130]]
``(16) Independent living core services.--The term
`independent living core services' means--
``(A) information and referral services;
``(B) independent living skills training;
``(C) peer counseling (including cross-disability peer
counseling); and
``(D) individual and systems advocacy.
``(17) Independent living services.--The term `independent
living services' includes--
``(A) independent living core services; and
``(B)(i) counseling services, including psychological,
psychotherapeutic, and related services;
``(ii) services related to securing housing or shelter,
including services related to community group living, and
supportive of the purposes of this Act and of the titles of
this Act, and adaptive housing services (including
appropriate accommodations to and modifications of any space
used to serve, or occupied by, individuals with
disabilities);
``(iii) rehabilitation technology;
``(iv) mobility training;
``(v) services and training for individuals with cognitive
and sensory disabilities, including life skills training, and
interpreter and reader services;
``(vi) personal assistance services, including attendant
care and the training of personnel providing such services;
``(vii) surveys, directories, and other activities to
identify appropriate housing, recreation opportunities, and
accessible transportation, and other support services;
``(viii) consumer information programs on rehabilitation
and independent living services available under this Act,
especially for minorities and other individuals with
disabilities who have traditionally been unserved or
underserved by programs under this Act;
``(ix) education and training necessary for living in a
community and participating in community activities;
``(x) supported living;
``(xi) transportation, including referral and assistance
for such transportation and training in the use of public
transportation vehicles and systems;
``(xii) physical rehabilitation;
``(xiii) therapeutic treatment;
``(xiv) provision of needed prostheses and other appliances
and devices;
``(xv) individual and group social and recreational
services;
``(xvi) training to develop skills specifically designed
for youths who are individuals with disabilities to promote
self-awareness and esteem, develop advocacy and self-
empowerment skills, and explore career options;
``(xvii) services for children;
``(xviii) services under other Federal, State, or local
programs designed to provide resources, training, counseling,
or other assistance, of substantial benefit in enhancing the
independence, productivity, and quality of life of
individuals with disabilities;
``(xix) appropriate preventive services to decrease the
need of individuals assisted under this Act for similar
services in the future;
``(xx) community awareness programs to enhance the
understanding and integration into society of individuals
with disabilities; and
``(xxi) such other services as may be necessary and not
inconsistent with the provisions of this Act.
``(18) Indian; american indian; indian american.--The terms
`Indian', `American Indian', and `Indian American' mean an
individual who is a member of an Indian tribe.
``(19) Indian tribe.--The term `Indian tribe' means any
Federal or State Indian tribe, band, rancheria, pueblo,
colony, or community, including any Alaskan native village or
regional village corporation (as defined in or established
pursuant to the Alaska Native Claims Settlement Act).
``(20) Individual with a disability.--
``(A) In general.--Except as otherwise provided in
subparagraph (B), the term `individual with a disability'
means any individual who--
``(i) has a physical or mental impairment which for such
individual constitutes or results in a substantial impediment
to employment; and
``(ii) can benefit in terms of an employment outcome from
vocational rehabilitation services provided pursuant to title
I, III, or VI.
``(B) Certain programs; limitations on major life
activities.--Subject to subparagraphs (C), (D), (E), and (F),
the term `individual with a disability' means, for purposes
of sections 2, 14, and 15, and titles II, IV, V, and VII of
this Act, any person who--
``(i) has a physical or mental impairment which
substantially limits one or more of such person's major life
activities;
``(ii) has a record of such an impairment; or
``(iii) is regarded as having such an impairment.
``(C) Rights and advocacy provisions.--
``(i) In general; exclusion of individuals engaging in drug
use.--For purposes of title V, the term `individual with a
disability' does not include an individual who is currently
engaging in the illegal use of drugs, when a covered entity
acts on the basis of such use.
``(ii) Exception for individuals no longer engaging in drug
use.--Nothing in clause (i) shall be construed to exclude as
an individual with a disability an individual who--
``(I) has successfully completed a supervised drug
rehabilitation program and is no longer engaging in the
illegal use of drugs, or has otherwise been rehabilitated
successfully and is no longer engaging in such use;
``(II) is participating in a supervised rehabilitation
program and is no longer engaging in such use; or
``(III) is erroneously regarded as engaging in such use,
but is not engaging in such use;
except that it shall not be a violation of this Act for a
covered entity to adopt or administer reasonable policies or
procedures, including but not limited to drug testing,
designed to ensure that an individual described in subclause
(I) or (II) is no longer engaging in the illegal use of
drugs.
``(iii) Exclusion for certain services.--Notwithstanding
clause (i), for purposes of programs and activities providing
health services and services provided under titles I, II and
III, an individual shall not be excluded from the benefits of
such programs or activities on the basis of his or her
current illegal use of drugs if he or she is otherwise
entitled to such services.
``(iv) Disciplinary action.--For purposes of programs and
activities providing educational services, local educational
agencies may take disciplinary action pertaining to the use
or possession of illegal drugs or alcohol against any student
who is an individual with a disability and who currently is
engaging in the illegal use of drugs or in the use of alcohol
to the same extent that such disciplinary action is taken
against students who are not individuals with disabilities.
Furthermore, the due process procedures at section 104.36 of
title 34, Code of Federal Regulations (or any corresponding
similar regulation or ruling) shall not apply to such
disciplinary actions.
``(v) Employment; exclusion of alcoholics.--For purposes of
sections 503 and 504 as such sections relate to employment,
the term `individual with a disability' does not include any
individual who is an alcoholic whose current use of alcohol
prevents such individual from performing the duties of the
job in question or whose employment, by reason of such
current alcohol abuse, would constitute a direct threat to
property or the safety of others.
``(D) Employment; exclusion of individuals with certain
diseases or infections.--For the purposes of sections 503 and
504, as such sections relate to employment, such term does
not include an individual who has a currently contagious
disease or infection and who, by reason of such disease or
infection, would constitute a direct threat to the health or
safety of other individuals or who, by reason of the
currently contagious disease or infection, is unable to
perform the duties of the job.
``(E) Rights provisions; exclusion of individuals on basis
of homosexuality or bisexuality.--For the purposes of
sections 501, 503, and 504--
``(i) for purposes of the application of subparagraph (B)
to such sections, the term `impairment' does not include
homosexuality or bisexuality; and
``(ii) therefore the term `individual with a disability'
does not include an individual on the basis of homosexuality
or bisexuality.
``(F) Rights provisions; exclusion of individuals on basis
of certain disorders.--For the purposes of sections 501, 503,
and 504, the term `individual with a disability' does not
include an individual on the basis of--
``(i) transvestism, transsexualism, pedophilia,
exhibitionism, voyeurism, gender identity disorders not
resulting from physical impairments, or other sexual behavior
disorders;
``(ii) compulsive gambling, kleptomania, or pyromania; or
``(iii) psychoactive substance use disorders resulting from
current illegal use of drugs.
``(G) Individuals with disabilities.--The term `individuals
with disabilities' means more than one individual with a
disability.
``(21) Individual with a significant disability.--
``(A) In general.--Except as provided in subparagraph (B)
or (C), the term `individual with a significant disability'
means an individual with a disability--
``(i) who has a severe physical or mental impairment which
seriously limits one or more functional capacities (such as
mobility, communication, self-care, self-direction,
interpersonal skills, work tolerance, or work skills) in
terms of an employment outcome;
``(ii) whose vocational rehabilitation can be expected to
require multiple vocational rehabilitation services over an
extended period of time; and
``(iii) who has one or more physical or mental disabilities
resulting from amputation, arthritis, autism, blindness, burn
injury, cancer, cerebral palsy, cystic fibrosis, deafness,
head injury, heart disease, hemiplegia, hemophilia,
respiratory or pulmonary dysfunction, mental retardation,
mental illness, multiple sclerosis, muscular dystrophy,
musculo-skeletal disorders, neurological disorders (including
stroke and epilepsy), paraplegia, quadriplegia, and other
spinal cord conditions, sickle cell anemia, specific learning
disability, end-stage renal disease, or another disability or
combination of disabilities determined on the basis of an
assessment for determining eligibility and vocational
rehabilitation needs described in subparagraphs (A) and (B)
of paragraph (2) to cause comparable substantial functional
limitation.
``(B) Independent living services and centers for
independent living.--For purposes of title VII, the term
`individual with a significant disability' means an
individual with a severe physical or mental impairment
[[Page S131]]
whose ability to function independently in the family or
community or whose ability to obtain, maintain, or advance in
employment is substantially limited and for whom the delivery
of independent living services will improve the ability to
function, continue functioning, or move towards functioning
independently in the family or community or to continue in
employment, respectively.
``(C) Research and training.--For purposes of title II, the
term `individual with a significant disability' includes an
individual described in subparagraph (A) or (B).
``(D) Individuals with significant disabilities.--The term
`individuals with significant disabilities' means more than
one individual with a significant disability.
``(E) Individual with a most significant disability.--
``(i) In general.--The term `individual with a most
significant disability', used with respect to an individual
in a State, means an individual with a significant disability
who meets criteria established by the State under section
101(a)(5)(C).
``(ii) Individuals with the most significant
disabilities.--The term `individuals with the most
significant disabilities' means more than one individual with
a most significant disability.
``(22) Individual's representative; applicant's
representative.--
``(A) Individual's representative.--The term `individual's
representative' used with respect to an eligible individual
or other individual with a disability, means--
``(i) any representative chosen by the eligible individual
or other individual with a disability, including a parent,
guardian, other family member, or advocate; or
``(ii) if a representative or legal guardian has been
appointed by a court to represent the eligible individual or
other individual with a disability, the court-appointed
representative or legal guardian.
``(B) Applicant's representative.--The term `applicant's
representative' means--
``(i) any representative described in subparagraph (A)(i)
chosen by the applicant; or
``(ii) if a representative or legal guardian has been
appointed by a court to represent the applicant, the court-
appointed representative or legal guardian.
``(23) Institution of higher education.--The term
`institution of higher education' has the meaning given the
term in section 1201(a) of the Higher Education Act of 1965
(20 U.S.C. 1141(a)).
``(24) Local agency.--The term `local agency' means an
agency of a unit of general local government or of an Indian
tribe (or combination of such units or tribes) which has an
agreement with the designated State agency to conduct a
vocational rehabilitation program under the supervision of
such State agency in accordance with the State plan approved
under section 101. Nothing in the preceding sentence of this
paragraph or in section 101 shall be construed to prevent the
local agency from arranging to utilize another local public
or nonprofit agency to provide vocational rehabilitation
services if such an arrangement is made part of the agreement
specified in this paragraph.
``(25) Local workforce investment partnership.--The term
`local workforce investment partnership' means a local
workforce investment partnership established under section
308 of the Workforce Investment Partnership Act of 1998.
``(26) Nonprofit.--The term `nonprofit', when used with
respect to a community rehabilitation program, means a
community rehabilitation program carried out by a corporation
or association, no part of the net earnings of which inures,
or may lawfully inure, to the benefit of any private
shareholder or individual and the income of which is exempt
from taxation under section 501(c)(3) of the Internal Revenue
Code of 1986.
``(27) Ongoing support services.--The term `ongoing support
services' means services--
``(A) provided to individuals with the most significant
disabilities;
``(B) provided, at a minimum, twice monthly--
``(i) to make an assessment, regarding the employment
situation, at the worksite of each such individual in
supported employment, or, under special circumstances,
especially at the request of the client, off site; and
``(ii) based on the assessment, to provide for the
coordination or provision of specific intensive services, at
or away from the worksite, that are needed to maintain
employment stability; and
``(C) consisting of--
``(i) a particularized assessment supplementary to the
comprehensive assessment described in paragraph (2)(B);
``(ii) the provision of skilled job trainers who accompany
the individual for intensive job skill training at the work
site;
``(iii) job development, job retention, and placement
services;
``(iv) social skills training;
``(v) regular observation or supervision of the individual;
``(vi) followup services such as regular contact with the
employers, the individuals, the individuals' representatives,
and other appropriate individuals, in order to reinforce and
stabilize the job placement;
``(vii) facilitation of natural supports at the worksite;
``(viii) any other service identified in section 103; or
``(ix) a service similar to another service described in
this subparagraph.
``(28) Personal assistance services.--The term `personal
assistance services' means a range of services, provided by
one or more persons, designed to assist an individual with a
disability to perform daily living activities on or off the
job that the individual would typically perform if the
individual did not have a disability. Such services shall be
designed to increase the individual's control in life and
ability to perform everyday activities on or off the job.
``(29) Public or nonprofit.--The term `public or
nonprofit', used with respect to an agency or organization,
includes an Indian tribe.
``(30) Rehabilitation technology.--The term `rehabilitation
technology' means the systematic application of technologies,
engineering methodologies, or scientific principles to meet
the needs of and address the barriers confronted by
individuals with disabilities in areas which include
education, rehabilitation, employment, transportation,
independent living, and recreation. The term includes
rehabilitation engineering, assistive technology devices, and
assistive technology services.
``(31) Requires vocational rehabilitation services.--The
term `requires vocational rehabilitation services', used with
respect to an individual with a disability as defined in
paragraph (20)(A), means that the individual is unable to
prepare for, secure, retain, or regain employment consistent
with the strengths, resources, priorities, concerns,
abilities, capabilities, interests, and informed choice of
the individual without vocational rehabilitation services,
because the individual--
``(A) has never been employed;
``(B) has lost employment;
``(C) is underemployed;
``(D) is at immediate risk of losing employment; or
``(E) receives benefits on the basis of disability or
blindness pursuant to title II or XVI of the Social Security
Act (42 U.S.C. 401 et seq. or 1381 et seq.), in a case in
which the individual intends to achieve an employment outcome
consistent with the unique strengths, resources, priorities,
concerns, abilities, capabilities, interests, and informed
choice of the individual.
``(32) Secretary.--The term `Secretary', except when the
context otherwise requires, means the Secretary of Education.
``(33) State.--The term `State' includes, in addition to
each of the several States of the United States, the District
of Columbia, the Commonwealth of Puerto Rico, the United
States Virgin Islands, Guam, American Samoa, and the
Commonwealth of the Northern Mariana Islands.
``(34) Statewide workforce investment partnership.--The
term `statewide workforce investment partnership' means a
partnership established under section 303 of the Workforce
Investment Partnership Act of 1998.
``(35) Statewide workforce investment system.--The term
`statewide workforce investment system' means a system
described in section 301 of the Workforce Investment
Partnership Act of 1998.
``(36) Supported employment.--
``(A) In general.--The term `supported employment' means
competitive work in integrated work settings, or employment
in integrated work settings in which individuals are working
toward competitive work, consistent with the strengths,
resources, priorities, concerns, abilities, capabilities,
interests, and informed choice of the individuals, for
individuals with the most significant disabilities--
``(i)(I) for whom competitive employment has not
traditionally occurred; or
``(II) for whom competitive employment has been interrupted
or intermittent as a result of a significant disability; and
``(ii) who, because of the nature and severity of their
disability, need intensive supported employment services for
the period, and any extension, described in paragraph (37)(C)
and extended services after the transition described in
paragraph (13)(C) in order to perform such work.
``(B) Certain transitional employment.--Such term includes
transitional employment for persons who are individuals with
the most significant disabilities due to mental illness.
``(37) Supported employment services.--The term `supported
employment services' means ongoing support services and other
appropriate services needed to support and maintain an
individual with a most significant disability in supported
employment, that--
``(A) are provided singly or in combination and are
organized and made available in such a way as to assist an
eligible individual to achieve competitive employment;
``(B) are based on a determination of the needs of an
eligible individual, as specified in an individualized
rehabilitation employment plan; and
``(C) are provided by the designated State unit for a
period of time not to extend beyond 18 months, unless under
special circumstances the eligible individual and the
rehabilitation counselor or coordinator jointly agree to
extend the time in order to achieve the rehabilitation
objectives identified in the individualized rehabilitation
employment plan.
``(38) Transition services.--The term `transition services'
means a coordinated set of activities for a student, designed
within an outcome-oriented process, that promotes
[[Page S132]]
movement from school to post school activities, including
postsecondary education, vocational training, integrated
employment (including supported employment), continuing and
adult education, adult services, independent living, or
community participation. The coordinated set of activities
shall be based upon the individual student's needs, taking
into account the student's preferences and interests, and
shall include instruction, community experiences, the
development of employment and other post school adult living
objectives, and, when appropriate, acquisition of daily
living skills and functional vocational evaluation.
``(39) Underemployed.--The term `underemployed', used with
respect to an individual with a disability, as defined in
paragraph (20)(A), means a situation in which the individual
is employed in a job that is not consistent with the
strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the
individual.
``(40) Vocational rehabilitation services.--The term
`vocational rehabilitation services' means those services
identified in section 103 which are provided 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 allotment
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 capita
income of the United States, except that--
``(A) the allotment percentage shall in no case be more
than 75 per centum or less than 33\1/3\ per centum; 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 the three
most recent consecutive years for which satisfactory 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 purposes
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 statutory
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 provision of this Act, except
that this section shall not be construed to limit or reduce
fees for services rendered by community 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 October 15,
1977 (Public Law 95-134) shall not apply to the
administration of the provisions of this Act or to the
administration 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 disabilities in workforce
investment activities;
``(2) provide short-term training and technical
instruction, including training for the personnel of
community rehabilitation programs, centers for independent
living, and other providers of services (including job
coaches);
``(3) conduct special projects and demonstrations;
``(4) collect, prepare, publish, and disseminate special
educational or informational materials, including reports of
the projects for which funds are provided under this Act; and
``(5) provide monitoring and conduct evaluations.
``(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 reimbursement, 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
necessary 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 regulations as
are considered appropriate to carry out the Commissioner's
duties under this Act.
``(d) The Secretary shall promulgate regulations regarding
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 provided to
all eligible individuals with disabilities who apply for such
services.
``(e) Not later than 180 days after the date of enactment
of the Rehabilitation Act Amendments of 1998, the Secretary
shall receive public comment and promulgate regulations to
implement the amendments made by the Rehabilitation 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 Congress 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
determine 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).
``(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 information
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 employment of individuals with
disabilities.
``evaluation
``Sec. 14. (a) For the purpose of improving program
management and effectiveness, the Secretary, in consultation
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 appropriate methodology and evaluative research
designs. The Secretary shall establish and use standards for
the evaluations 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.
``(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 executive
branch.
``(e)(1) To assess the linkages between vocational
rehabilitation 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 obtain the
services.
``(3) The study shall be planned to cover the period
beginning on the application of individuals with disabilities
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
services.
``(f)(1) The Commissioner shall identify and disseminate
information on exemplary practices concerning vocational
rehabilitation.
``(2) To facilitate compliance with paragraph (1), the
Commissioner shall conduct studies and analyses that identify
exemplary practices concerning vocational rehabilitation,
including studies in areas relating to providing informed
choice in the rehabilitation process, promoting consumer
satisfaction, promoting job placement and retention,
[[Page S133]]
providing supported employment, providing services to
particular disability populations, financing personal
assistance services, providing assistive technology devices
and assistive technology services, entering into cooperative
agreements, establishing standards and certification for
community rehabilitation programs, converting from
nonintegrated to integrated employment, and providing
caseload 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 information
and data regarding--
``(1) the location, provision, and availability of services
and programs for individuals with disabilities, 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
authorized under such Act;
``(2) research and recent medical and scientific
developments bearing on disabilities (and their prevention,
amelioration, causes, and cures); and
``(3) the current numbers of individuals with disabilities
and their needs.
The clearinghouse shall also provide any other relevant
information and data which the Secretary considers
appropriate.
``(b) The Commissioner may assist the Secretary to develop
within the Department of Education a coordinated system of
information and data retrieval, which will have the capacity
and responsibility to provide information regarding the
information and data referred to in subsection (a) of this
section to the Congress, public and private agencies and
organizations, individuals with disabilities and their
families, professionals in fields serving such individuals,
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'.
``(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
research 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
providing 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
requirement.
``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
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.
``(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 recipient complied
with any Federal share requirements applicable 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
individuals who are applicants for or recipients of the
services, or the applicants' representatives or individuals'
representatives, of the availability and purposes of the
client assistance 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 authorized 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 increase 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 African-Americans, and 40.1 percent for
Asian-Americans and other ethnic groups. By the year 2000,
the Nation 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 disproportionately
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 inequitable
treatment of minorities have been documented in all major
junctures of the vocational rehabilitation process. As
compared to white Americans, a larger percentage of African-
American applicants to the vocational rehabilitation system
is denied acceptance. Of applicants accepted for service, a
larger percentage 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 pre-service training,
continuing education, and in-service training must focus on
bringing larger numbers of minorities into the profession in
order to provide appropriate practitioner knowledge, role
models, and sufficient manpower to address the clearly
changing demography of vocational rehabilitation.
``(b) Outreach to Minorities.--
``(1) In general.--For each fiscal year, the Commissioner
and the Director of the National Institute on Disability and
Rehabilitation Research (referred to in this subsection as
the `Director') shall reserve 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 Commissioner 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
cooperative 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
title II, III, VI, and VII.
``(B) Making awards to minority entities and Indian tribes
to conduct research, training, technical assistance, or a
related activity, to improve 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 funded under this Act, including assistance to
enhance their capacity to carry out such activities.
``(3) Eligibility.--To be eligible to receive a award under
paragraph (2)(C), an entity shall be a State or a public or
private nonprofit agency or organization, such as an
institution of higher education or an Indian tribe.
``(4) Report.--In each fiscal year, the Commissioner and
the Director shall prepare and submit to Congress a report
that describes the activities funded under this subsection
for the preceding fiscal year.
``(5) Definitions.--In this subsection:
``(A) Historically black college or university.--The term
``historically Black college or university'' means a part B
institution, as defined in section 322(2) of the Higher
Education Act of 1965 (20 U.S.C. 1061(2)).
``(B) Minority entity.--The term ``minority entity' means
an entity that is a Historically Black College or University,
a Hispanic-serving institution of higher education, an
American Indian Tribal College or University, or another
institution of higher education whose minority student
enrollment is at least 50 percent.
``(c) Demonstration.--In awarding grants, or entering into
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. 4. VOCATIONAL REHABILITATION SERVICES.
Title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et
seq.) is amended to read as follows:
[[Page S134]]
``TITLE I--VOCATIONAL REHABILITATION SERVICES
``PART A--GENERAL PROVISIONS
``SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF
APPROPRIATIONS.
``(a) Findings; Purpose; Policy.--
``(1) Findings.--Congress finds that--
``(A) work--
``(i) is a valued activity, both for individuals and
society; and
``(ii) fulfills the need of an individual to be productive,
promotes independence, enhances self-esteem, and allows for
participation in the mainstream of life in the United States;
``(B) as a group, individuals with disabilities experience
staggering levels of unemployment and poverty;
``(C) individuals with disabilities, including individuals
with the most significant disabilities, have demonstrated
their ability to achieve gainful employment in integrated
settings if appropriate services and supports are provided;
``(D) reasons for significant numbers of individuals with
disabilities not working, or working at levels not
commensurate with their abilities and capabilities, include--
``(i) discrimination;
``(ii) lack of accessible and available transportation;
``(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 private health insurance; and
``(iv) lack of education, training, and supports to meet
job qualification standards necessary to secure, retain,
regain, or advance in employment;
``(E) enforcement of title V and of the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) holds the
promise of ending discrimination for individuals with
disabilities;
``(F) the provision of workforce investment activities and
vocational rehabilitation services can enable individuals
with disabilities, including individuals with the most
significant disabilities, to pursue meaningful careers by
securing gainful employment commensurate with their abilities
and capabilities; and
``(G) linkages between the vocational rehabilitation
programs established under this title and other components of
the statewide workforce investment system are critical to
ensure effective and meaningful participation by individuals
with disabilities in workforce investment activities.
``(2) Purpose.--The purpose of this title is to assist
States in operating statewide comprehensive, coordinated,
effective, efficient, and accountable programs of vocational
rehabilitation, each of which is--
``(A) an integral part of a statewide workforce investment
system; and
``(B) designed to assess, plan, develop, and provide
vocational rehabilitation services for individuals with
disabilities, consistent with their strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice, so that such individuals may prepare for and
engage in gainful employment.
``(3) Policy.--It is the policy of the United States that
such a program shall be carried out in a manner consistent
with the following principles:
``(A) Individuals with disabilities, including individuals
with the most significant disabilities, are generally
presumed to be capable of engaging in gainful employment and
the provision of individualized vocational rehabilitation
services can improve their ability to become gainfully
employed.
``(B) Individuals with disabilities must be provided the
opportunities to obtain gainful employment in integrated
settings.
``(C) Individuals who are applicants for such programs or
eligible to participate in such programs must be active and
full partners, in collaboration with qualified vocational
rehabilitation professionals, in the vocational
rehabilitation process, making meaningful and informed
choices--
``(i) during assessments for determining eligibility and
vocational rehabilitation needs; and
``(ii) in the selection of employment outcomes for the
individuals, services needed to achieve the outcomes,
entities providing such services, and the methods used to
secure such services.
``(D) Families and other natural supports can play
important roles in the success of a vocational rehabilitation
program, if the individual with a disability involved
requests, desires, or needs such supports.
``(E) Vocational rehabilitation counselors that are trained
and prepared in accordance with State policies and procedures
as described in section 101(a)(7)(A)(iii) (referred to
individually in this title as a `qualified vocational
rehabilitation counselor'), other qualified rehabilitation
personnel, and other qualified personnel facilitate the
accomplishment of the employment outcomes and objectives of
an individual.
``(F) Individuals with disabilities and the individuals'
representatives are full partners in a vocational
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 facilitate the
accomplishment of the goals and objectives of the program,
including providing vocational 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 section 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
appropriated 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 considered to refer to
grants under section 112.
``(c) Consumer Price Index.--
``(1) Percentage change.--No later than November 15 of each
fiscal year (beginning with fiscal year 1979), the 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 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) increased by such percentage change.
``(B) No increase or decrease.--If in any fiscal year the
percentage change published under paragraph (1) does not
indicate an increase in the Consumer Price Index, then the
amount to be appropriated under subsection (b)(1) for the
subsequent fiscal year shall be at least the amount
appropriated under subsection (b)(1) for the fiscal year in
which the publication is made under paragraph (1).
``(3) Definition.--For purposes of this section, the term
`Consumer Price Index' means the Consumer Price Index for All
Urban Consumers, published monthly by the Bureau of Labor
Statistics.
``(d) Extension.--
``(1) In general.--
``(A) Authorization or duration of program.--Unless the
Congress in the regular session which ends prior to the
beginning of the terminal fiscal year--
``(i) of the authorization of appropriations for the
program authorized by the State grant program under part B of
this title; or
``(ii) of the duration of the program authorized by the
State grant program under part B of this title;
has passed legislation which would have the effect of
extending the authorization or duration (as the case may be)
of such program, such authorization or duration is
automatically extended for 1 additional year for the program
authorized by this title.
``(B) Calculation.--The amount authorized to be
appropriated for the additional fiscal year described in
subparagraph (A) shall be an amount equal to the amount
appropriated for such program for fiscal year 2004, increased
by the percentage change in the Consumer Price Index
determined under subsection (c) for the immediately preceding
fiscal year, if the percentage change indicates an increase.
``(2) Construction.--
``(A) Passage of legislation.--For the purposes of
paragraph (1)(A), Congress shall not be deemed to have passed
legislation unless such legislation becomes law.
``(B) Acts or determinations of commissioner.--In any case
where the Commissioner is required under an applicable
statute to carry out certain acts or make certain
determinations which are necessary for the continuation of
the program authorized by this title, if such acts or
determinations are required during the terminal year of such
program, such acts and determinations shall be required
during any fiscal year in which the extension described in
that part of paragraph (1) that follows clause (ii) of
paragraph (1)(A) is in effect.
``SEC. 101. STATE PLANS.
``(a) Plan Requirements.--
``(1) In general.--
``(A) Submission.--To be eligible to participate 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 section
304 of the Workforce Investment Partnership Act of 1998.
``(B) Nonduplication.--The State shall not be required to
submit, in the State plan for vocational rehabilitation
services, policies, procedures, or descriptions required
under this title that have been previously submitted to the
Commissioner and that demonstrate that such State meets the
requirements of this title, including any policies,
procedures, or descriptions submitted under this title as in
effect on the day before the effective date of the
Rehabilitation Act Amendments of 1998.
``(C) Duration.--The State plan shall remain in effect
subject to the submission of such modifications as the State
determines to be necessary or as the Commissioner may require
based on a change in State policy, a change in Federal law
(including regulations), an interpretation of this Act by a
[[Page S135]]
Federal court or the highest court of the State, or a finding
by the Commissioner of State noncompliance with the
requirements of this Act, until the State submits and
receives approval of a new State plan.
``(2) Designated state agency; designated state unit.--
``(A) Designated state agency.--The State plan shall
designate a State agency as the sole State agency to
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 another agency that provides
assistance or services to adults who are blind is authorized
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 services are provided for
individuals who are blind (or to supervise the administration
of such part by a local agency) and a separate State agency
may be designated as the sole State agency to administer or
supervise the administration of the rest of the State plan;
``(ii) the Commissioner, on the request of a State, may
authorize the designated State agency to share funding and
administrative responsibility with another agency of the
State or with a local agency in order to permit the agencies
to carry out a joint program to provide services to
individuals with disabilities, and may waive compliance, with
respect to vocational rehabilitation services furnished under
the joint program, with the requirement of paragraph (4) that
the plan be in effect in all political subdivisions of the
State; and
``(iii) in the case of American Samoa, the 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 concerned with vocational
rehabilitation, or vocational and other rehabilitation, of
individuals 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 rehabilitation bureau, division, or other
organizational unit that--
``(I) is primarily concerned with vocational
rehabilitation, or vocational 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 organizational unit all or substantially all of whom are
employed full time on such work; and
``(IV) is located at an organizational level and has an
organizational status within the designated State agency
comparable to that of other major organizational units of the
designated 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 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 agencies, 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 Commissioner, is likely to assist in
promoting the vocational rehabilitation of substantially
larger numbers of individuals 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 requirement 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 contributed to such agency by a private agency,
organization, or individual).
``(5) Order of selection for vocational rehabilitation
services.--In the event that vocational rehabilitation
services cannot be provided to all eligible individuals with
disabilities in the State who apply for the services, the
State plan shall--
``(A) show the order to be followed in selecting eligible
individuals to be provided vocational rehabilitation
services;
``(B) provide the justification for the order of selection;
``(C) include an assurance that, in accordance with
criteria established by the State for the order of selection,
individuals with the most significant disabilities will be
selected first for the provision of vocational rehabilitation
services; and
``(D) provide that eligible individuals, who do not meet
the order of selection criteria, shall have access to
services provided through the information and referral system
implemented under paragraph (20).
``(6) Methods for administration.--
``(A) In general.--The State plan shall provide for such
methods of administration as are found by the Commissioner to
be necessary for the proper and efficient administration of
the plan.
``(B) Employment of individuals with disabilities.--The
State plan shall provide that the designated State agency,
and entities carrying out community rehabilitation programs
in the State, who are in receipt of assistance under this
title shall take affirmative action to employ and advance in
employment qualified individuals with disabilities covered
under, and on the same terms and conditions as set forth in,
section 503.
``(C) Personnel and program standards for community
rehabilitation programs.--The State plan shall provide that
the designated State unit shall establish, maintain, and
implement minimum standards for community rehabilitation
programs providing services to individuals under this title,
including--
``(i) standards--
``(I) governing community rehabilitation programs and
qualified personnel utilized for the provision of vocational
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 profession or discipline, that the providers
shall take steps to ensure the retraining or hiring of
personnel so that such personnel 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 communication
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 to be
accessible to the physically handicapped', approved on August
12, 1968 (commonly known as the `Architectural Barriers Act
of 1968'), with section 504, and with the Americans with
Disabilities Act of 1990.
``(7) Comprehensive system of personnel development.--The
State plan shall include--
``(A) a description, consistent with the purposes of this
Act, of a comprehensive system of personnel development for
personnel involved in carrying 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 personnel, 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 facilitate efforts between
the designated State unit and institutions of higher
education and professional associations to recruit, prepare,
and retain qualified personnel, including personnel from
culturally or linguistically diverse backgrounds, and
personnel that include individuals with disabilities;
``(iii) a description of policies and procedures on the
establishment and maintenance 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 requirements that apply to
the area in which such personnel are providing vocational
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 that such personnel meet
appropriate professional standards in the State;
``(iv) a description of a system for evaluating the
performance of vocational rehabilitation counselors,
coordinators, and other personnel used in the State,
including a description of how the system facilitates the
accomplishment of the purpose and policy of this title,
including the policy of serving individuals with the most
significant disabilities;
``(v) a description of standards to ensure the availability
of personnel within the designated State unit who are, to the
maximum extent feasible, trained to communicate 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 designated State unit;
``(B) assurances that--
``(i) at a minimum, the State will reserve from the
allotment made to the State under section 110 an amount to
carry out the comprehensive system of personnel development,
including the provision of in-service training for personnel
of the designated State unit;
[[Page S136]]
``(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 increase; and
``(C) an assurance that the standards adopted 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 determination would interrupt or delay--
``(I) the progress of the individual toward achieving the
employment outcome identified in the individualized
rehabilitation employment plan of the individual in
accordance with section 102(b); or
``(II) the provision of such service to any individual at
extreme medical risk.
``(ii) Awards and scholarships.--For purposes of clause
(i), comparable benefits do not include awards and
scholarships based on merit.
``(B) Interagency agreement.--The State plan shall include
an assurance that the Chief Executive Officer of the State or
the designee of such officer will ensure that an interagency
agreement or other mechanism for interagency coordination
takes effect between any appropriate public entity, 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 specified 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,
including the provision of such vocational rehabilitation
services during the pendency of any dispute described in
clause (iii). Such agreement or mechanism shall include the
following:
``(i) Agency financial responsibility.--An identification
of, or a description of a method for defining, the financial
responsibility of such public entity for providing such
services, and a provision stating that the financial
responsibility of such public entity for providing such
services, including 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 institutions of
higher education, shall precede the financial responsibility
of the designated State unit especially with regard to the
provision of auxiliary aids and services to the maximum
extent allowed by law.
``(ii) Conditions, terms, and procedures of
reimbursement.--Information specifying the conditions, terms,
and procedures under which a designated State unit shall
pursue and obtain reimbursement by other public agencies for
providing such services.
``(iii) Interagency disputes.--Information 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 reimbursement from other agencies or otherwise
implement the provisions of the agreement or mechanism).
``(iv) Coordination of services procedures.--Information
specifying policies and procedures for agencies to determine
and identify the interagency coordination responsibilities of
each agency to promote 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 agencies.--
``(i) Responsibilities under other law.--Notwithstanding
subparagraph (B), if any public agency other than a
designated State unit is obligated under Federal or State
law, or assigned responsibility under State policy or under
this paragraph, to provide or pay for any services that are
also considered to be vocational rehabilitation services
(other than those specified in paragraph (5)(D) and in
paragraphs (1) through (4) and (14) of section 103(a)), such
public agency shall fulfill that obligation or
responsibility, either directly or by contract or other
arrangement.
``(ii) Reimbursement.--In a case in which a public agency
other than the designated State unit fails to fulfill the
financial 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 procedures established
pursuant to subparagraph (B)(ii).
``(D) Methods.--The Chief Executive Officer 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 identifies the responsibilities of
each agency relating to the provision of services; or
``(iii) another appropriate method, as determined by the
designated State unit.
``(9) Individualized rehabilitation employment plan.--
``(A) Development and implementation.--The State plan shall
include an assurance that an individualized rehabilitation
employment plan meeting the requirements of section 102(b)
will be developed and implemented in a timely manner for an
individual subsequent to the determination of the eligibility
of the individual for services under this title, except that
in a State operating under an order of selection described in
paragraph (5), the plan will be developed and implemented
only for individuals meeting the order of selection criteria
of the State.
``(B) Provision of services.--The State plan shall include
an assurance that such services will be provided in
accordance with the provisions of the individualized
rehabilitation employment 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 Commissioner 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
section 321(d)(2) of the Workforce Investment Partnership Act
of 1998 that are determined by the Secretary to be relevant
in assessing the performance of designated State units in
carrying out the vocational rehabilitation program
established under this title.
``(C) Additional data.--In specifying the information
required to be submitted in the reports, the Commissioner
shall require additional data with regard to applicants and
eligible individuals related to--
``(i) the number of applicants and the number of
individuals determined to be eligible or ineligible for the
program carried out under this title, including--
``(I) the number of individuals determined to be ineligible
because they did not require vocational rehabilitation
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 employment outcome from vocational
rehabilitation services;
``(ii) the number of individuals who received vocational
rehabilitation services through the program, including--
``(I) the number who received services under paragraph
(5)(D), but not assistance under an individualized
rehabilitation employment plan; and
``(II) the number who received assistance under an
individualized rehabilitation employment plan consistent with
section 102(b);
``(iii) the number of individuals receiving 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 receiving 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 employment, or, in
the case of individuals whose employment outcome was to
retain or advance in employment, who were employed 6 months
and 12 months after achieving their employment outcome,
including--
``(I) the number of such individuals 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 individuals who received
employment benefits from an employer during such employment;
and
``(III) the number of such individuals whose public
assistance was terminated or reduced after such
participation;
``(D) Costs and results.--The Commissioner shall also
require that the designated State agency include in the
reports information on--
``(i) the costs under this title of conducting
administration, providing assessment services, counseling and
guidance, and other direct services provided by designated
State agency staff, providing services purchased under
individualized rehabilitation employment plans, supporting
small business 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).
[[Page S137]]
``(E) Additional information.--The Commissioner shall
require that each designated State unit include in the
reports additional information 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
individuals are students described in clause (i) or (ii)(II)
of paragraph (11)(D);
``(II) dates of application, determination of eligibility
or ineligibility, initiation of the individualized
rehabilitation employment plan, and termination of
participation in the program;
``(III) earnings at the time of application for the program
and termination of participation in the program;
``(IV) work status and occupation;
``(V) types of services, including assistive technology
services and assistive 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 program without achieving an employment
outcome; and
``(ii) information necessary to determine the success of
the State in meeting--
``(I) the State performance measures established under
section 321(b) of the Workforce Investment Partnership Act of
1998 to the extent the measures are applicable to individuals
with disabilities; and
``(II) the standards and indicators established pursuant to
section 106.
``(F) Completeness and confidentiality.--The State plan
shall include an assurance that the information submitted in
the reports will include a complete count, except as provided
in subparagraph (E), of the applicants and eligible
individuals, in a manner permitting the greatest possible
cross-classification of data and that the identity of each
individual for which information is supplied under this
paragraph will be kept confidential.
``(11) Cooperation, collaboration, and coordination.--
``(A) Cooperative agreements with other components of
statewide workforce investment systems.--The State plan shall
provide that the designated State unit or designated State
agency shall enter into a cooperative agreement with other
entities that are components of the statewide workforce
investment system of the State, regarding the system, which
agreement may provide for--
``(i) provision of intercomponent staff training and
technical assistance with regard to--
``(I) the availability and benefits of, and eligibility
standards for, vocational rehabilitation services; and
``(II) the promotion of equal, effective, and meaningful
participation by individuals with disabilities in workforce
investment activities in the State through the promotion of
program accessibility, the use of nondiscriminatory policies
and procedures, and the provision of reasonable
accommodations, auxiliary aids and services, and
rehabilitation technology, for individuals with disabilities;
``(ii) use of information and financial management systems
that link all components of the statewide workforce
investment system, that link the components to other
electronic networks, including nonvisual electronic networks,
and that relate to such subjects as labor market information,
and information on job vacancies, career planning, and
workforce investment activities;
``(iii) use of customer service features such as common
intake and referral procedures, customer databases, resource
information, and human services hotlines;
``(iv) establishment of cooperative efforts with employers
to--
``(I) facilitate job placement; and
``(II) carry out any other activities that the designated
State unit and the employers determine to be appropriate;
``(v) identification of staff roles, responsibilities, and
available resources, and specification of the financial
responsibility of each component of the statewide workforce
investment system with regard to paying for necessary
services (consistent with State law and Federal
requirements); and
``(vi) specification of procedures for resolving disputes
among such components.
``(B) Replication of cooperative agreements.--The State
plan shall provide for the replication of such cooperative
agreements at the local level between individual offices of
the designated State unit and local entities carrying out
activities through the statewide workforce investment system.
``(C) Interagency cooperation with other 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 officials.--The State
plan shall contain plans, policies, and procedures for
coordination between the designated State agency and
education officials 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 vocational
rehabilitation services under this title, including
information on a formal interagency agreement with the State
educational agency that, at a minimum, provides for--
``(i) consultation and technical assistance to assist
educational agencies in planning for the transition of
students who are individuals with disabilities described in
section 7(20)(B) from school to post-school activities,
including vocational rehabilitation services;
``(ii)(I) transition planning by personnel of the
designated State agency and educational agency personnel for
students with disabilities described in clause (i) that
facilitates the development and completion of their
individualized education programs under section 614(d) of the
Individuals with Disabilities Education Act (as added by
section 101 of Public Law 105-17); and
``(II) transition planning and services for students who
are eligible to receive services under this title and who
will be exiting school in the school year in which the
planning and services are provided;
``(iii) the roles and responsibilities, including financial
responsibilities, of each agency, including provisions for
determining State lead agencies and qualified personnel
responsible for the transition services described in clause
(ii)(II); and
``(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 independent living centers.--The State plan
shall include an assurance that the designated State unit,
the Statewide Independent Living Council established under
section 705, and the independent living centers described in
part C of title VII within the State have developed working
relationships and coordinate their activities.
``(F) Cooperative agreement with recipients of grants for
services to american indians.--In applicable cases, the State
plan shall include an assurance that the State has entered
into a formal cooperative agreement with each grant recipient
in the State that receives funds under part C. The agreement
shall describe strategies for collaboration and coordination
in providing vocational rehabilitation services to American
Indians who are individuals with disabilities, including--
``(i) strategies for interagency referral and information
sharing that will assist in eligibility determinations and
the development of individualized rehabilitation employment
plans;
``(ii) procedures for ensuring that American Indians who
are individuals with disabilities and are living near a
reservation or tribal service area are provided vocational
rehabilitation services; and
``(iii) provisions for sharing resources in cooperative
studies and assessments, joint training activities, and other
collaborative activities designed to improve the provision of
services to American Indians who are individuals with
disabilities.
``(12) Residency.--The State plan shall include an
assurance that the State will not impose a residence
requirement that excludes from services provided 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 to American Indians who are
individuals with disabilities residing in the State to the
same extent as the designated State agency provides such
services to other significant populations of individuals with
disabilities residing in the State.
``(14) Annual review of individuals in extended employment
or other employment under special 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 employment outcome either in an extended
employment setting in a community rehabilitation program or
any other employment under section 14(c) of the Fair Labor
Standards Act (29 U.S.C. 214(c)) for 2 years after the
achievement of the outcome (and annually thereafter if
requested by the individual or, if appropriate, the
individual's representative), to determine the interests,
priorities, and needs of the individual with respect to
competitive employment or training for competitive
employment;
``(B) input into the review and reevaluation, and a signed
acknowledgement that such review and reevaluation have been
conducted, by the individual with a disability, or, if
appropriate, the individual's representative; and
``(C) maximum efforts, including the identification and
provision of vocational rehabilitation services, reasonable
accommodations, and other necessary support services, to
assist the individuals described in subparagraph (A) in
engaging in competitive employment.
``(15) Annual state goals and reports of progress.--
``(A) Assessments and estimates.--The State plan shall--
``(i) include the results of a comprehensive, 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,
particularly the vocational rehabilitation services needs
of--
[[Page S138]]
``(I) individuals with the most significant disabilities,
including their need for supported employment services;
``(II) individuals with disabilities who are minorities and
individuals with disabilities who have been unserved or
underserved by the vocational rehabilitation program carried
out under this title; and
``(III) individuals with disabilities served through other
components of the statewide workforce investment system
(other than the vocational rehabilitation program), as
identified by such individuals and personnel assisting such
individuals through the components;
``(ii) include an assessment of the need to establish,
develop, or improve community rehabilitation programs within
the State; and
``(iii) provide that the State shall submit to the
Commissioner a report containing information regarding
updates to the assessments, for any year in which the State
updates the assessments.
``(B) Annual estimates.--The State plan shall include, and
shall provide that the State shall annually submit a report
to the Commissioner that includes, State estimates of--
``(i) the number of individuals in the State who are
eligible for services under this title;
``(ii) the number of such individuals who will receive
services provided with funds provided under part B and under
part C of title VI, including, if the designated State agency
uses an order of selection in accordance with paragraph (5),
estimates of the number of individuals to be served under
each priority category within the order; and
``(iii) the costs of the services described in clause (i),
including, if the designated State agency uses an order of
selection in accordance with paragraph (5), the service costs
for each priority category within the order.
``(C) Goals and priorities.--
``(i) In general.--The State plan shall identify the goals
and priorities of the State in carrying out the program. The
goals and priorities shall be jointly developed, agreed to,
and reviewed annually by the designated State unit and the
State Rehabilitation Council, if the State has such a
Council. Any revisions to the goals and priorities shall be
jointly agreed to by the designated State unit and the State
Rehabilitation 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 priorities shall be
based on an analysis of--
``(I) the comprehensive assessment described in
subparagraph (A), including any updates to the assessment;
``(II) the performance of the State on the standards and
indicators established under section 106; and
``(III) other available information on the operation and
the effectiveness of the vocational rehabilitation program
carried out in the State, including any reports received from
the State Rehabilitation Council, under section 105(c) and
the findings and recommendations from monitoring activities
conducted under section 107.
``(iii) Service and outcome goals for categories in order
of selection.--If the designated State agency uses an order
of selection in accordance with paragraph (5), the State
shall also identify in the State plan service and outcome
goals and the time within which these goals may be achieved
for individuals in each priority category within the order.
``(D) Strategies.--The State plan shall contain a
description of the strategies the State will use to address
the needs identified in the assessment conducted under
subparagraph (A) and achieve the goals and priorities
identified in subparagraph (C), including--
``(i) the methods to be used to expand and improve services
to individuals with disabilities, including how a broad range
of assistive technology services and assistive technology
devices will be provided to such individuals at each stage of
the rehabilitation process and how such services and devices
will be provided to such individuals on a statewide basis;
``(ii) outreach procedures to identify and serve
individuals with disabilities who are minorities and
individuals with disabilities who have been unserved or
underserved by the vocational rehabilitation program;
``(iii) where necessary, the plan of the State for
establishing, developing, or improving community
rehabilitation programs;
``(iv) strategies to improve the performance of the State
with respect to the evaluation standards and performance
indicators established pursuant to section 106; and
``(v) strategies for assisting entities carrying out other
components of the statewide workforce investment system
(other than the vocational rehabilitation program) in
assisting individuals with disabilities.
``(E) Evaluation and reports of progress.--The State plan
shall--
``(i) include the results of an evaluation of the
effectiveness of the vocational rehabilitation program, and a
joint report by the designated State unit and the State
Rehabilitation Council, if the State has such a Council, to
the Commissioner on the progress made in improving the
effectiveness from the previous year, which evaluation and
report shall include--
``(I) an evaluation of the extent to which the goals
identified in subparagraph (C) were achieved;
``(II) a description of strategies that 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 performance of the State on the
standards and indicators established pursuant to section 106;
and
``(ii) provide that the designated State unit and the State
Rehabilitation Council, if the State has such a Council,
shall jointly submit to the Commissioner an annual report
that contains the information described in clause (i).
``(16) Public comment.--The State plan shall--
``(A) provide that the designated State agency, prior to
the adoption of any policies or procedures governing the
provision of vocational rehabilitation services under the
State plan (including making any amendment to such policies
and procedures), shall conduct public meetings throughout the
State, after providing adequate notice of the meetings, to
provide the public, including individuals with disabilities,
an opportunity to comment on the policies or procedures, and
actively consult with the Director of the client assistance
program carried out under section 112, and, as appropriate,
Indian tribes, tribal organizations, and Native Hawaiian
organizations on the policies or procedures; and
``(B) provide that the designated State agency (or each
designated State agency if 2 agencies are designated) and any
sole agency administering the plan in a political subdivision
of the State, shall take into account, in connection with
matters of general policy arising in the administration of
the plan, the views of--
``(i) individuals and groups of individuals who are
recipients of vocational rehabilitation services, or in
appropriate cases, the individuals' representatives;
``(ii) personnel working in programs that provide
vocational rehabilitation services to individuals with
disabilities;
``(iii) providers of vocational rehabilitation services to
individuals with disabilities;
``(iv) the director of the client assistance program; and
``(v) the State Rehabilitation Council, if the State has
such a Council.
``(17) Prohibition on use of funds for construction of
facilities.--The State plan shall contain an assurance that
the State will not use any funds made available under this
title for the construction of facilities.
``(18) Innovation and expansion activities.--The State plan
shall--
``(A) include an assurance that the State will reserve and
use a portion of the funds allotted to the State under
section 110--
``(i) for the development and implementation of innovative
approaches to expand and improve the provision of vocational
rehabilitation services to individuals with disabilities
under this title, particularly individuals with the most
significant disabilities, consistent with the findings of the
statewide assessment and goals and priorities of the State as
described in paragraph (15); and
``(ii) to support the funding of--
``(I) the State Rehabilitation Council, if the State has
such a Council, consistent with the plan prepared under
section 105(d)(1); and
``(II) the Statewide Independent Living Council, consistent
with the plan prepared under section 705(e)(1);
``(B) include a description of how the reserved funds will
be utilized; and
``(C) provide that the State shall submit to the
Commissioner an annual report containing a description of how
the reserved funds will be utilized.
``(19) Choice.--The State plan shall include an assurance
that applicants and eligible individuals or, as appropriate,
the applicants' representatives or individuals'
representatives, will be provided information and support
services to assist the applicants and individuals in
exercising informed choice throughout the rehabilitation
process, consistent with the provisions of section 102(d).
``(20) Information and referral services.--
``(A) In general.--The State plan shall include an
assurance that the designated State agency will implement an
information and referral system adequate to ensure that
individuals with disabilities will be provided accurate
vocational rehabilitation information, using appropriate
modes of communication, to assist such individuals in
preparing for, securing, retaining, or regaining employment,
and will be appropriately referred to Federal and State
programs (other than the vocational rehabilitation program
carried out under this title), including other components of
the statewide workforce investment system in the State.
``(B) Services.--In providing activities through the system
established under subparagraph (A), the State may include
services consisting of the provision of individualized
counseling and guidance, individualized vocational
exploration, supervised job placement referrals, and
assistance in securing reasonable accommodations 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-controlled commission;
state rehabilitation council.--
``(A) Commission or council.--The State plan shall provide
that either--
``(i) the designated State agency is an independent
commission that--
[[Page S139]]
``(I) is responsible under State law for operating, or
overseeing the operation of, the vocational rehabilitation
program in the State;
``(II) is consumer-controlled by persons who--
``(aa) are individuals with physical or 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 commission is the State agency for
individuals who are blind;
``(III) includes family members, advocates, or other
representatives, of individuals with mental impairments; and
``(IV) undertakes the functions set forth in section
105(c)(4); or
``(ii) the State has established a State Rehabilitation
Council that meets the criteria set forth in section 105 and
the designated State unit--
``(I) in accordance with paragraph (15), jointly develops,
agrees to, and reviews annually State goals and priorities,
and jointly submits annual reports of progress with the
Council;
``(II) regularly consults with the Council regarding the
development, implementation, and revision of State policies
and procedures of general applicability pertaining to the
provision of 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 review and
analysis of consumer satisfaction described in section
105(c)(4), and other reports prepared by the Council, and the
response of the designated State unit to such input and
recommendations, including explanations for rejecting any
input or recommendation; and
``(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 information on all practices and
procedures, of general applicability provided to or used by
rehabilitation personnel in carrying out this title; and
``(cc) copies of due process hearing decisions issued under
this title, which shall be transmitted in such a manner as to
ensure that the identity of the participants in the hearings
is kept confidential.
``(B) More than 1 designated state agency.--In the case of
a State that, under section 101(a)(2), designates a State
agency to administer 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) and designates a separate
State agency to administer the rest of the State plan, the
State shall either establish a State Rehabilitation Council
for each of the 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 assurance that the State has an
acceptable plan for carrying 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 technology 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 coordinate efforts to
comply with section 508 and will adopt grievance procedures
that incorporate due process standards and provide for the
prompt and equitable resolution of complaints concerning such
requirements.
``(24) Annual updates.--The plan shall include an assurance
that the State will submit to the Commissioner reports
containing annual updates of the information required under
paragraph (7) (relating to a comprehensive system of
personnel development) and any other updates of the
information required under this section that are requested by
the Commissioner, and annual reports as provided in
paragraphs (15) (relating to assessments, estimates, goals
and priorities, and reports of progress) and (18) (relating
to innovation and expansion), at such time and in such manner
as the Secretary may determine to be appropriate.
``(b) Approval; Disapproval of the State Plan.--
``(1) Approval.--The Commissioner shall approve any plan
that the Commissioner finds fulfills the conditions specified
in this section, and shall disapprove any plan that does not
fulfill such conditions.
``(2) Disapproval.--Prior to disapproval of the State plan,
the Commissioner shall notify the State of the intention to
disapprove the plan and shall afford the State reasonable
notice and opportunity for a hearing.
``SEC. 102. ELIGIBILITY AND INDIVIDUALIZED REHABILITATION
EMPLOYMENT PLAN.
``(a) Eligibility.--
``(1) Criterion for eligibility.--An individual is eligible
for assistance under this title if the individual--
``(A) is an individual with a disability under section
7(20)(A); and
``(B) requires vocational rehabilitation services to
prepare for, secure, retain, or regain employment.
``(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
rehabilitation services under section 7(20)(A), unless the
designated State unit involved 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.
``(B) Methods.--In making the demonstration required under
subparagraph (A), the designated State unit shall explore the
individual's abilities, capabilities, and capacity to perform
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 circumstances when an individual
can not take advantage 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
employment outcome from vocational rehabilitation services
due to the severity of the disability of the individual.
``(3) Presumption of eligibility.--For purposes of this
section, an individual who has a disability 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--
``(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 employment outcome consistent with the
unique strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the
individual) unless the designated State unit involved 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
accordance with paragraph (2).
``(4) Use of existing information.--
``(A) In general.--To the maximum extent appropriate and
consistent with the requirements of this part, for purposes
of determining the eligibility of an individual for
vocational rehabilitation services under this title and
developing the individualized rehabilitation employment plan
described in subsection (b) for the individual, the
designated State unit shall use information that is existing
and current (as of the date of the determination of
eligibility or of the development of the individualized
rehabilitation employment 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
vocational rehabilitation needs.
``(B) Determinations by officials of other agencies.--
Determinations made by officials of other agencies,
particularly education officials described in section
101(a)(11)(D), regarding 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 disability under section
7(21)(A) shall be used, to the extent appropriate and
consistent with the requirements of this part, in assisting
the designated State unit in making such determinations.
``(C) Basis.--The determination of eligibility for
vocational rehabilitation services shall be based on--
``(i) the review of existing data described in section
7(2)(A)(i); and
``(ii) to the extent that such data is unavailable or
insufficient for determining eligibility, the provision of
assessment activities 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 described 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 involved shall be
made only after providing an opportunity for full
consultation with the individual or, as appropriate, the
individual's representative;
``(B) the individual or, as appropriate, the individual's
representative, shall be informed in writing (supplemented as
necessary by other appropriate 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);
[[Page S140]]
``(C) the individual shall be provided with a description
of services available from the client assistance program
under section 112 and information on how to contact that
program; and
``(D) any ineligibility determination that is based on a
finding that the individual is incapable of benefiting in
terms of an employment outcome shall be reviewed--
``(i) within 12 months; and
``(ii) annually thereafter, if such a review is requested
by the individual or, if appropriate, by the individual's
representative.
``(6) Timeframe for making an eligibility determination.--
The designated State unit shall determine whether an
individual is eligible for vocational 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 circumstances beyond the
control of the designated State unit preclude making an
eligibility determination 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 capacity to perform
in work situations under paragraph (2)(B).
``(b) Development of an Individualized Rehabilitation
Employment Plan.--
``(1) Options for developing an individualized
rehabilitation employment plan.--If an individual is
determined to be eligible for vocational rehabilitation
services as described in subsection (a), the designated State
unit shall complete the assessment for determining
eligibility and vocational rehabilitation needs, as
appropriate, and shall provide the eligible individual or the
individual's representative, in writing and in an appropriate
mode of communication, with information on the individual's
options for developing an individualized rehabilitation
employment plan, including--
``(A) information on the availability of assistance, to the
extent determined to be appropriate by the eligible
individual, from a qualified vocational rehabilitation
counselor in developing all or part of the individualized
rehabilitation employment plan for the individual, and the
availability of technical assistance in developing all or
part of the individualized rehabilitation employment plan for
the individual;
``(B) a description of the full range of components that
shall be included in an individualized rehabilitation
employment plan;
``(C) as appropriate--
``(i) an explanation of agency guidelines and criteria
associated with financial commitments concerning an
individualized rehabilitation employment plan;
``(ii) additional information the eligible 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 individualized rehabilitation employment plan;
and
``(D)(i) a description of the rights and remedies 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 contact the client assistance
program.
``(2) Mandatory procedures.--
``(A) Written document.--An individualized rehabilitation
employment plan shall be a written document prepared on forms
provided by the designated State unit.
``(B) Informed choice.--An individualized rehabilitation
employment plan shall be developed and implemented in a
manner that affords eligible individuals the opportunity to
exercise 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 rehabilitation
employment plan shall be--
``(i) agreed to, and signed by, such eligible individual
or, as appropriate, the individual's representative; and
``(ii) approved and signed by a qualified vocational
rehabilitation counselor employed 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
representative, in writing and, if appropriate, in the native
language or mode of communication of the individual or, as
appropriate, of the individual's representative.
``(E) Review and amendment.--The individualized
rehabilitation employment plan shall be--
``(i) reviewed at least annually by--
``(I) a qualified vocational rehabilitation counselor; and
``(II) the eligible individual or, as appropriate, the
individual's representative; and
``(ii) amended, as necessary, by the individual or, as
appropriate, the individual's representative, in
collaboration with a representative of the designated State
agency or a qualified vocational rehabilitation counselor, if
there are substantive changes in the employment outcome, the
vocational rehabilitation 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 appropriate, the individual's
representative, and by a qualified vocational rehabilitation
counselor).
``(3) Mandatory components of an individualized
rehabilitation employment plan.--Regardless of the approach
selected by an eligible individual to develop an
individualized rehabilitation employment plan, an
individualized rehabilitation employment plan shall, at a
minimum, contain mandatory components consisting of--
``(A) a description of the specific employment outcome that
is chosen by the eligible individual, consistent with the
unique strengths, resources, priorities, concerns, abilities,
capabilities, interests, and informed choice of the eligible
individual, and, to the maximum extent appropriate, results
in employment in an integrated setting;
``(B)(i) a description of the specific vocational
rehabilitation services that are--
``(I) needed to achieve the employment outcome, including,
as appropriate, the provision of assistive technology devices
and assistive technology services, and personal assistance
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
``(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 individual's
representative, that will provide the vocational
rehabilitation services, and the methods 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 individualized
rehabilitation employment plan, including, as appropriate,
information describing--
``(i) the responsibilities of the designated State unit;
``(ii) the responsibilities of the eligible individual,
including--
``(I) the responsibilities the eligible individual will
assume in relation to the employment outcome of the
individual;
``(II) if applicable, the participation of the eligible
individual in paying for the costs of the plan; and
``(III) the responsibility of the eligible individual with
regard to applying for and securing comparable benefits as
described in section 101(a)(8);
``(iii) the responsibilities of other entities as the
result of arrangements made pursuant to comparable services
or benefits requirements as described in section 101(a)(8);
``(F) for an eligible individual with the most significant
disabilities for whom an employment 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
rehabilitation employment plan, a description of the basis
for concluding that there is a reasonable expectation that
such source will become available; and
``(G) as determined to be necessary, a statement of
projected need for post-employment services.
``(c) Procedures.--
``(1) In general.--Each State shall establish procedures
for mediation of, and procedures for review through an
impartial due process hearing of, determinations made by
personnel of the designated State unit that affect the
provision of vocational rehabilitation services to applicants
or eligible individuals.
``(2) Notification.--
``(A) Rights and assistance.--The procedures shall provide
that an applicant or an eligible individual or, as
appropriate, the applicant's representative or individual's
representative shall be notified of--
``(i) the right to obtain review of determinations
described in paragraph (1) in an impartial due process
hearing under paragraph (5);
``(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 provided under this title;
``(ii) at the time the individualized rehabilitation
employment plan for the individual is developed; and
``(iii) upon reduction, suspension, or cessation of
vocational rehabilitation services for the individual.
``(3) Evidence and representation.--The procedures required
under this subsection shall, at a minimum--
``(A) provide an opportunity for an applicant or an
eligible individual, or, as appropriate, the applicant's
representative or individual's representative, to submit at
the mediation session or hearing evidence and information to
support the position of the applicant or eligible individual;
and
``(B) include provisions to allow an applicant or an
eligible individual to be represented in the mediation
session or hearing
[[Page S141]]
by a person selected by the applicant or eligible individual.
``(4) Mediation.--
``(A) Procedures.--Each State shall ensure that procedures
are established and implemented under this subsection to
allow parties described in paragraph (1) to disputes
involving any determination described in paragraph (1) to
resolve such disputes through a mediation process that, at a
minimum, shall be available whenever 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
``(iii) is conducted by a qualified and impartial mediator
who is trained in effective 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
vocational rehabilitation services under this title, from
which the mediators described in subparagraph (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 confidential and may not be used
as evidence in any subsequent due process hearing or civil
proceeding. The parties to the mediation process may be
required to sign a confidentiality pledge prior to the
commencement of such process.
``(H) Construction.--Nothing in this subsection shall be
construed to preclude the parties to such a dispute from
informally resolving the dispute prior to proceedings under
this paragraph 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 described 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
implementing this Act), and State regulations and policies
that are consistent with the Federal requirements specified
in this title. The officer shall provide the decision in
writing to the applicant or eligible individual, or, as
appropriate, the applicant's representative or individual's
representative, and to the designated State unit.
``(B) List.--The designated State unit shall maintain a
list of qualified impartial hearing officers who are
knowledgeable in laws (including regulations) relating to the
provision of vocational rehabilitation services under this
title from which the officer described in subparagraph (A)
shall be selected. For the purposes of maintaining such list,
impartial hearing officers shall be identified jointly by--
``(i) the designated State unit; and
``(ii) members of the Council or commission, as
appropriate, described in section 101(a)(21).
``(C) Selection.--Such an impartial hearing 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 Director and the
individual's representative.
``(D) Procedures for seeking review.--A State may establish
procedures to enable a party involved in a hearing under this
paragraph to seek an impartial review of the decision 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 designated State unit under section 101(a)(2); or
``(ii) an official from the office of the Governor or the
chief official of another State office or agency that has
supervisory authority over the designated State agency.
``(E) Review request.--If the State establishes impartial
review procedures under subparagraph (D), either party may
request the review 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 additional evidence and information
relevant to a final decision concerning the matter under
review;
``(ii) not overturn or modify the decision of the hearing
officer, or part of the decision, that supports the position
of the applicant or eligible individual unless the reviewing
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 respect to the matter in
a timely manner and provide such decision in writing to the
applicant or eligible individual, or, as appropriate, the
applicant's representative or individual's representative,
and to the designated State unit, including a full report of
the findings and the grounds for such decision.
``(G) Finality of hearing decision.--A decision made after
a hearing under subparagraph (A) shall be final, except that
a party may request an impartial review if the State has
established procedures for such review under subparagraph (D)
and a party involved in a hearing may bring a civil action
under subparagraph (J).
``(H) Finality of review.--A decision made under
subparagraph (F) shall be final unless such a party brings a
civil action under subparagraph (J).
``(I) Implementation.--If a party brings a civil action
under subparagraph (J) to challenge a final decision of a
hearing officer under subparagraph (A) or to challenge a
final decision of a State reviewing official under
subparagraph (F), the final decision involved shall be
implemented pending review by the court.
``(J) Civil action.--
``(i) In general.--Any party aggrieved by a final decision
described in subparagraph (I), may bring a civil action for
review of such decision. The action may be brought in any
State court of competent jurisdiction or in a district court
of the United States of competent jurisdiction without regard
to the amount in controversy.
``(ii) Procedure.--In any action brought under this
subparagraph, the court--
``(I) shall receive the records relating 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 evidence at the request of a
party to the action; and
``(III) basing the decision of the court on the
preponderance of the evidence, 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 determinations or decisions under this Act, is
authorized to carry out the responsibilities of the impartial
hearing officer under this subsection.
``(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.--Unless the
individual with a disability so requests, or, in an
appropriate case, the individual's representative, so
requests, pending a decision by a mediator, hearing officer,
or reviewing officer under this subsection, the designated
State unit shall not institute a suspension, reduction, or
termination of services being provided for the individual,
including evaluation and assessment services and plan
development, unless such services have been obtained through
misrepresentation, fraud, collusion, or criminal conduct on
the part of the individual, or the individual's
representative.
``(8) Information collection and report.--
``(A) In general.--The Director of the designated State
unit shall collect information described in subparagraph (B)
and prepare and submit to the Commissioner a report
containing such information. The Commissioner shall prepare 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 conducting
hearings under this subsection and State officials conducting
reviews under this subsection.
``(B) Information.--The information required to be
collected under this subsection includes--
``(i) a copy of the standards used by State reviewing
officials for reviewing decisions made by impartial hearing
officers under this subsection;
``(ii) information on the number of hearings and reviews
sought from the impartial hearing officers and the State
reviewing officials, including the type of complaints and the
issues involved;
``(iii) information on the number of hearing decisions made
under this subsection that were not reviewed by the State
reviewing officials; and
``(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 applicant or eligible
individual;
``(II) sustained in favor of the designated State unit;
``(III) reversed in whole or in part in favor of the
applicant or eligible individual; and
``(IV) reversed in whole or in part in favor of the
designated State unit.
``(C) Confidentiality.--The confidentiality of records of
applicants and eligible individuals maintained by the
designated State unit shall not preclude the access of the
Commissioner to those records for the purposes described in
subparagraph (A).
[[Page S142]]
``(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 an
applicant for or eligible to receive vocational
rehabilitation services under this title to exercise informed
choice throughout the vocational rehabilitation process
carried out under this title, including policies and
procedures that require the designated State agency--
``(1) to inform each such applicant and eligible individual
(including students with disabilities described in section
101(a)(11)(D)(ii)(II) who are making the transition from
programs under the responsibility 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, informed
choice, including the availability of support services for
individuals with cognitive or other disabilities who require
assistance in exercising informed choice, throughout the
vocational rehabilitation process;
``(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 procurement
policies and methods that facilitate the provision of
services, and that afford eligible individuals meaningful
choices among the methods used to procure 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 selection
of--
``(A) the employment outcome;
``(B) the specific vocational rehabilitation services
needed to achieve the employment outcome;
``(C) the entity that will provide the services;
``(D) the employment setting and the settings 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 consistent with the
obligations of the designated State agency under this title.
``SEC. 103. VOCATIONAL REHABILITATION SERVICES.
``(a) Vocational Rehabilitation Services for Individuals.--
Vocational rehabilitation services provided under this title
are any services described in an individualized
rehabilitation employment plan necessary to assist an
individual with a disability in preparing for, securing,
retaining, or regaining an employment outcome that is
consistent 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 personnel,
including, if appropriate, an assessment by personnel skilled
in rehabilitation technology;
``(2) counseling and guidance, including information and
support services to assist an individual in exercising
informed choice consistent with the provisions of section
102(d);
``(3) referral and other services to secure needed services
from other agencies through agreements developed 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, including the
provision of personal and vocational adjustment services,
books, tools, and other training materials, except that no
training services provided at an institution of higher
education shall be paid for 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 comparable services and benefits
consistent with section 101(a)(8)(A)), other than the
designated State unit, diagnosis and treatment of physical
and mental impairments, including--
``(A) corrective surgery or therapeutic treatment 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
modification 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 prescribed by
qualified personnel who meet State licensure laws and who are
selected by the individual;
``(E) special services (including transplantation and
dialysis), artificial kidneys, and supplies necessary for the
treatment of individuals with end-stage renal disease; and
``(F) diagnosis and treatment for mental and emotional
disorders by qualified personnel who meet State licensure
laws;
``(7) maintenance for additional costs incurred while
participating in an assessment for determining eligibility
and vocational rehabilitation needs or while receiving
services under an individualized rehabilitation employment
plan;
``(8) transportation, including adequate training in the
use of public transportation vehicles and systems, that is
provided in connection with the provision of any other
service described in this section and needed by the
individual to achieve an employment outcome;
``(9) on-the-job or other related personal assistance
services provided while an individual is receiving other
services described in this section;
``(10) interpreter services provided by qualified personnel
for individuals who are deaf or hard of 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 orientation
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 individuals who are pursuing
self-employment or establishing a small business operation as
an employment outcome;
``(14) rehabilitation technology, including
telecommunications, sensory, and other technological aids and
devices;
``(15) transition services for students with disabilities
described in section 101(a)(11)(D)(ii)(II), that facilitate
the achievement of the employment outcome identified in the
individualized rehabilitation employment plan;
``(16) supported employment services;
``(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 services 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 operated 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 supervision, 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 improvement of
community rehabilitation programs, that promise to contribute
substantially to the rehabilitation of a group of individuals
but that are not related directly to the individualized
rehabilitation employment plan of any 1 individual with a
disability. Such programs shall be used to provide services
that promote integration and competitive employment.
``(3) The use of telecommunications systems (including
telephone, television, satellite, radio, and other similar
systems) that have the potential for substantially improving
delivery methods of activities described in this section and
developing appropriate programming to meet the particular
needs of individuals with disabilities.
``(4)(A) Special services to provide nonvisual access to
information for individuals who are blind, including the use
of telecommunications, Braille, sound recordings, or other
appropriate media.
``(B) Captioned television, films, or video cassettes for
individuals who are deaf or hard of hearing.
``(C) Tactile materials for individuals who are deaf-blind.
``(D) Other special services that provide information
through tactile, vibratory, auditory, and visual media.
``(5) Technical assistance and support services to
businesses that are not subject to title I of the Americans
with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and
that are seeking to employ individuals with disabilities.
``(6) Consultative and technical assistance services 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 activities,
including employment.
``SEC. 104. NON-FEDERAL SHARE FOR ESTABLISHMENT OF PROGRAM.
``For the purpose of determining the amount of payments 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 prescribed in
regulations by the Commissioner, shall include contributions
of funds made by any private agency, organization, or
individual to a State or local agency to assist in meeting
the costs of establishment of a community rehabilitation
program, which would be regarded as State or local funds
except for the condition, imposed by the contributor,
limiting use of such funds to establishment of such a
program.''.
``SEC. 105. STATE REHABILITATION COUNCIL.
``(a) Establishment.--
[[Page S143]]
``(1) In general.--Except as provided in section
101(a)(21)(A)(i), to be eligible to receive financial
assistance under this title a State shall establish a State
Rehabilitation Council (referred to in this section 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 individuals 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 established under section 705,
which representative may be the chairperson or other designee
of the Council;
``(ii) at least one representative of a parent training and
information center established pursuant to section 682(a) of
the Individuals with Disabilities Education Act (as added by
section 101 of the Individuals with Disabilities Education
Act Amendments 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 rehabilitation counselor,
with knowledge of and experience with vocational
rehabilitation programs, who shall serve as an ex officio,
nonvoting member of the Council if the counselor is an
employee of the designated State agency;
``(v) at least one representative of community
rehabilitation program service providers;
``(vi) four representatives of business, industry, and
labor;
``(vii) representatives of disability advocacy groups
representing a cross section of--
``(I) individuals with physical, cognitive, sensory, and
mental disabilities; and
``(II) individuals' representatives of individuals with
disabilities who have difficulty in representing themselves
or are unable due to their disabilities to represent
themselves;
``(viii) current or former applicants for, or recipients
of, vocational rehabilitation 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
disabilities who are eligible to receive services under this
title and part B of the Individuals 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 described in subparagraph
(A)(i);
``(ii) at least one representative described in
subparagraph (A)(ii);
``(iii) at least one representative described in
subparagraph (A)(iii);
``(iv) at least one vocational rehabilitation counselor
described in subparagraph (A)(iv), who shall serve as
described in such subparagraph;
``(v) at least one representative described in subparagraph
(A)(v);
``(vi) four representatives described in subparagraph
(A)(vi);
``(vii) at least one representative of a disability
advocacy group representing individuals who are blind;
``(viii) at least one individual's representative, of an
individual who--
``(I) is an individual who is blind and has multiple
disabilities; and
``(II) has difficulty in representing himself or herself or
is unable due to disabilities to represent himself or
herself;
``(ix) applicants or recipients described in subparagraph
(A)(viii);
``(x) in a State described in subparagraph (A)(ix), at
least one representative described in such subparagraph;
``(xi) at least one representative described in
subparagraph (A)(x); and
``(xii) at least one representative described 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 effect on the date of enactment
of the Rehabilitation Act Amendments of 1992, to have fewer
than 15 members shall be deemed to be in compliance with
subparagraph (B) if the Council--
``(i) meets the requirements of subparagraph (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).
``(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. In the case of a State that, under
State law, vests appointment authority in an entity in lieu
of, or in conjunction with, the Governor, such as one or more
houses of the State legislature, or an independent board that
has general appointment authority, that entity shall make the
appointments. The appointing authority shall select members
after soliciting recommendations from representatives of
organizations representing a broad range of individuals with
disabilities and organizations interested in individuals with
disabilities. In selecting members, the appointing authority
shall consider, to the greatest extent practicable, the
extent to which minority 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
Governor does not have veto power pursuant to State law, the
Governor shall designate a member of the Council 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 vacancy occurring prior
to the expiration of the term for which a predecessor was
appointed, shall be appointed for the remainder of such term;
and
``(ii) the terms of service of the members initially
appointed shall be (as specified by the appointing authority)
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.--
``(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 remaining members
to execute the duties of the Council.
``(B) Delegation.--The Governor (including an entity
described in paragraph (3)) may delegate 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 responsibilities of the unit
under this title, particularly responsibilities relating to--
``(A) eligibility (including order of selection);
``(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 employment outcomes under this
title;
``(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 vocational
rehabilitation program and submit reports of progress to the
Commissioner in accordance 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 satisfaction with--
``(A) the functions performed by the designated State
agency;
``(B) vocational rehabilitation services provided by State
agencies and other public and private entities responsible
for providing vocational rehabilitation services to
individuals with disabilities under this Act; and
``(C) employment outcomes achieved by eligible 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
or appropriate State entity and the Commissioner on the
status of vocational 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 established under section
612(a)(21) of the Individual with Disabilities Education Act
(as amended by section 101 of the Individuals with
Disabilities Education Act Amendments of 1997; Public Law
105-17), the State Developmental Disabilities Council
described in section 124 of the Developmental
[[Page S144]]
Disabilities Assistance and Bill of Rights Act (42 U.S.C.
6024), the State mental health planning council established
under section 1914(a) of the Public Health Service Act (42
U.S.C. 300x-4(a)), and the statewide workforce investment
partnership;
``(7) provide for coordination and the establishment 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 Rehabilitation 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 conjunction with
the designated State unit, a plan for the provision of such
resources, including such staff and other personnel, as may
be necessary and sufficient 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
existence during the period of implementation of the plan.
``(2) Resolution of disagreements.--To the extent that
there is a disagreement between the Council and the
designated State unit in regard to the resources necessary to
carry out the functions of the Council as set forth in this
section, the disagreement shall be resolved by the Governor
or appointing agency 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 section.
``(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 interest.
``(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
necessary to conduct Council business and conduct such forums
or hearings as the Council considers appropriate. The
meetings, 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.
``(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 personal 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 authorized 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 for the vocational rehabilitation program carried
out under this title.
``(B) Review and revision.--Effective September 30, 1998,
the Commissioner shall review and, if necessary, revise the
evaluation standards and performance indicators every 3
years. Any revisions of the standards and indicators shall be
developed with input from State vocational rehabilitation
agencies, related professional and consumer organizations,
recipients of vocational rehabilitation services, and other
interested 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 indicators 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 program performance that
facilitate the accomplishment of the purpose and policy of
this title.
``(3) Comment.--The standards and indicators shall be
developed with input from State vocational rehabilitation
agencies, related professional and consumer organizations,
recipients of vocational rehabilitation services, and other
interested parties. The Commissioner shall publish in the
Federal Register a notice of intent to regulate regarding the
development of proposed standards and indicators. Proposed
standards and indicators shall be published in the Federal
Register for review and comment. Final standards and
indicators shall be published in the Federal Register.
``(b) Compliance.--
``(1) State reports.--In accordance with regulations
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 determines 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 specific actions to be
taken by the State to improve program performance.
``(B) Review.--The Commissioner shall--
``(i) review the program improvement efforts of the State
on a biannual basis and, if necessary, request the State to
make further revisions to the plan to improve performance;
and
``(ii) continue to conduct such reviews and request such
revisions until the State sustains satisfactory performance
over a period of more than 1 year.
``(c) Withholding.--If the Commissioner determines that a
State whose performance falls below the established standards
has failed to enter into a program improvement plan, or is
not complying substantially with the terms and conditions of
such a program improvement plan, the Commissioner shall,
consistent with 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 improvement plan, as
appropriate.
``(d) Report to Congress.--Beginning in fiscal year 1999,
the Commissioner shall include in each annual report to the
Congress under section 13 an analysis of program performance,
including relative State performance, based on the standards
and indicators.
``SEC. 107. MONITORING AND REVIEW.
``(a) In General.--
``(1) Duties.--In carrying out the duties of the
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 administration of the State
plan, a State is complying substantially with the provisions
of such plan and with evaluation standards and performance
indicators established under section 106.
``(2) Procedures for reviews.--In conducting reviews under
this section the Commissioner shall consider, at a minimum--
``(A) State policies and procedures;
``(B) guidance materials;
``(C) decisions resulting from hearings conducted in
accordance with due process;
``(D) State goals established under section 101(a)(15) and
the extent to which the State has achieved such goals;
``(E) plans and reports prepared under section 106(b);
``(F) consumer satisfaction reviews and analyses described
in section 105(c)(4);
``(G) information provided by the State Rehabilitation
Council established under section 105, if the State has such
a Council, or by the commission described in section
101(a)(21)(A)(i), if the State has such a commission;
``(H) reports; and
``(I) budget and financial management data.
``(3) Procedures for monitoring.--In conducting monitoring
under this section the Commissioner shall conduct--
``(A) onsite visits, including onsite reviews of records to
verify that the State is following requirements regarding the
order of selection set forth in section 101(a)(5)(A);
``(B) public hearings and other strategies for collecting
information from the public;
``(C) meetings with the State Rehabilitation Council, if
the State has such a Council or with the commission described
in section 101(a)(21)(A)(i), if the State has such a
commission;
``(D) reviews of individual case files, including
individualized rehabilitation employment plans and
ineligibility determinations; and
``(E) meetings with rehabilitation counselors and other
personnel.
``(4) Areas of inquiry.--In conducting the review and
monitoring, the Commissioner shall examine--
``(A) the eligibility process;
``(B) the provision of services, including, if applicable,
the order of selection;
``(C) whether the personnel evaluation system described in
section 101(a)(7)(A)(iv) facilitates the accomplishments of
the program;
``(D) such other areas as may be identified by the public
or through meetings with the State Rehabilitation Council, if
the State has such a Council or with the commission described
in section 101(a)(21)(A)(i), if the State has such a
commission; and
``(E) such other areas of inquiry as the Commissioner may
consider appropriate.
``(5) Reports.--If the Commissioner issues a report
detailing the findings of an annual review or onsite
monitoring conducted under
[[Page S145]]
this section, the report shall be made available to the State
Rehabilitation Council, if the State has such a Council.
``(b) Technical Assistance.--The Commissioner shall--
``(1) provide technical assistance to programs under this
title regarding improving the quality of vocational
rehabilitation services provided; and
``(2) provide technical assistance and establish a
corrective action plan for a program under this title if the
Commissioner finds that the program fails to comply
substantially with the provisions of the State plan, or with
evaluation standards or performance indicators established
under section 106, in order to ensure that such failure is
corrected as soon as practicable.
``(c) Failure To Comply With Plan.--
``(1) Withholding payments.--Whenever the Commissioner,
after providing reasonable notice and an opportunity for a
hearing to the State agency administering or supervising the
administration of the State plan approved under section 101,
finds that--
``(A) the plan has been so changed that it no longer
complies with the requirements of section 101(a); or
``(B) in the administration of the plan there is a failure
to comply substantially with any provision of such plan or
with an evaluation standard or performance indicator
established under section 106,
the Commissioner shall notify such State agency that no
further payments will be made to the State under this title
(or, in the discretion of the Commissioner, that such further
payments will be reduced, in accordance with regulations the
Commissioner shall prescribe, or that further payments will
not be made to the State only for the projects under the
parts of the State plan affected by such failure), until the
Commissioner is satisfied there is no longer any such
failure.
``(2) Period.--Until the Commissioner is so satisfied, the
Commissioner shall make no further payments to such State
under this title (or shall reduce payments or limit payments
to projects under those parts of the State plan in which
there is no such failure).
``(3) Disbursal of withheld funds.--The Commissioner may,
in accordance with regulations the Secretary shall prescribe,
disburse any funds withheld from a State under paragraph (1)
to any public or nonprofit private organization or agency
within such State or to any political subdivision of such
State submitting a plan meeting the requirements of section
101(a). The Commissioner may not make any payment under this
paragraph unless the entity to which such payment is made has
provided assurances to the Commissioner that such entity will
contribute, for purposes of carrying out such plan, the same
amount as the State would have been obligated to contribute
if the State received such payment.
``(d) Review.--
``(1) Petition.--Any State that is dissatisfied with a
final determination of the Commissioner under section 101(b)
or subsection (c) may file a petition for judicial review of
such determination in the United States Court of Appeals for
the circuit in which the State is located. Such a petition
may be filed only within the 30-day period beginning on the
date that notice of such final determination was received by
the State. The clerk of the court shall transmit a copy of
the petition to the Commissioner or to any officer designated
by the Commissioner for that purpose. In accordance with
section 2112 of title 28, United States Code, the
Commissioner shall file with the court a record of the
proceeding on which the Commissioner based the determination
being appealed by the State. Until a record is so filed, the
Commissioner may modify or set aside any determination made
under such proceedings.
``(2) Submissions and determinations.--If, in an action
under this subsection to review a final determination of the
Commissioner under section 101(b) or subsection (c), the
petitioner or the Commissioner applies to the court for leave
to have additional oral submissions or written presentations
made respecting such determination, the court may, for good
cause shown, order the Commissioner to provide within 30 days
an additional opportunity to make such submissions and
presentations. Within such period, the Commissioner may
revise any findings of fact, modify or set aside the
determination being reviewed, or make a new determination by
reason of the additional submissions and presentations, and
shall file such modified or new determination, and any
revised findings of fact, with the return of such submissions
and presentations. The court shall thereafter review such new
or modified determination.
``(3) Standards of review.--
``(A) In general.--Upon the filing of a petition under
paragraph (1) for judicial review of a determination, the
court shall have jurisdiction--
``(i) to grant appropriate relief as provided in chapter 7
of title 5, United States Code, except for interim relief
with respect to a determination under subsection (c); and
``(ii) except as otherwise provided in subparagraph (B), to
review such determination in accordance with chapter 7 of
title 5, United States Code.
``(B) Substantial evidence.--Section 706 of title 5, United
States Code, shall apply to the review of any determination
under this subsection, except that the standard for review
prescribed by paragraph (2)(E) of such section 706 shall not
apply and the court shall hold unlawful and set aside such
determination if the court finds that the determination is
not supported by substantial evidence in the record of the
proceeding submitted pursuant to 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 Security Act
(42 U.S.C. 301 et seq.) as reimbursement for the expenditure
of payments received by the State from allotments under
section 110 of this Act.
``SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS
WITH DISABILITIES ACT OF 1990.
``A State may expend payments received under section 111--
``(1) to carry out a program to train employers with
respect to compliance with the requirements of title I of the
Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et
seq.); and
``(2) to inform employers of the existence of the program
and the availability of the services of the program.
``Part B--Basic Vocational Rehabilitation Services
``state allotments
``Sec. 110. (a)(1) Subject to the provisions of subsection
(c), for each fiscal year beginning before October 1, 1978,
each State shall be entitled to an allotment of an amount
bearing the same ratio to the amount authorized to be
appropriated under section 100(b)(1) for allotment under this
section as the product of--
``(A) the population of the State; and
``(B) the square of its allotment percentage,
bears to the sum of the corresponding products for all the
States.
``(2)(A) For each fiscal year beginning on or after October
1, 1978, each State shall be entitled to an allotment in an
amount equal to the amount such State received under
paragraph (1) for the fiscal year ending September 30, 1978,
and an additional amount determined pursuant to subparagraph
(B) of this paragraph.
``(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 section 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 percent of
such excess amount as the product of the population of the
State and the square of its allotment percentage bears to the
sum of the corresponding products 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 Commonwealth 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 increased to that amount, the
total of the increases thereby required being derived by
proportionately reducing the allotment to each of the
remaining such States under this subsection, but with such
adjustments as may be necessary to prevent the sum of the
allotments made under this subsection to any such remaining
State from being thereby reduced 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 Commissioner
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
determines 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
vocational 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
allotment (as determined under the preceding provisions of
this section) for such year.
``(c)(1) For fiscal year 1987 and for each subsequent
fiscal year, the Commissioner
[[Page S146]]
shall reserve from the amount appropriated under section
100(b)(1) for allotment under this section a sum, determined
under paragraph (2), to carry out the purposes of part C.
``(2) The sum referred to in paragraph (1) shall be, as
determined by the Secretary--
``(A) not less than three-quarters of 1 percent and not
more than 1.5 percent of the amount referred to in paragraph
(1), for fiscal year 1998; and
``(B) not less than 1 percent and not more than 1.5 percent
of the amount referred to in paragraph (1), for each of
fiscal years 1999 through 2004.
``payments to states
``Sec. 111. (a)(1) Except as provided in paragraph (2),
from each State's allotment under this part for any fiscal
year, the Commissioner shall pay to a State an amount equal
to the Federal share of the cost of vocational rehabilitation
services under the plan for that State approved under section
101, including expenditures for the administration of the
State plan.
``(2)(A) The total of payments under paragraph (1) to a
State for a fiscal year may not exceed its allotment under
subsection (a) of section 110 for such year.
``(B) For fiscal year 1994 and each fiscal year thereafter,
the amount otherwise payable to a State for a fiscal year
under this section shall be reduced by the amount by which
expenditures from non-Federal sources under the State plan
under this title for the previous fiscal year are less than
the total of such expenditures for the second fiscal year
preceding the previous fiscal year.
``(C) The Commissioner may waive or modify any requirement
or limitation under paragraphs (A) and (B) if the
Commissioner determines that a waiver or modification is an
equitable response to exceptional or uncontrollable
circumstances affecting the State.
``(b) The method of computing and paying amounts pursuant
to subsection (a) shall be as follows:
``(1) The Commissioner shall, prior to the beginning of
each calendar quarter or other period prescribed by the
Commissioner, estimate the amount to be paid to each State
under the provisions of such subsection for such period, such
estimate to be based on such records of the State and
information furnished by it, and such other investigation as
the Commissioner may find necessary.
``(2) The Commissioner shall pay, from the allotment
available therefor, the amount so estimated by the
Commissioner for such period, reduced or increased, as the
case may be, by any sum (not previously adjusted under this
paragraph) by which the Commissioner finds that the estimate
of the amount to be paid the State for any prior period under
such subsection was greater or less than the amount which
should have been paid to the State for such prior period
under such subsection. Such payment shall be made prior to
audit or settlement by the General Accounting Office, shall
be made through the disbursing facilities of the Treasury
Department, and shall be made in such installments as the
Commissioner may determine.
``client assistance program
``Sec. 112. (a) From funds appropriated under subsection
(h), the Secretary shall, in accordance with this section,
make grants to States to establish and carry out client
assistance programs to provide assistance in informing and
advising all clients and client applicants of all available
benefits under this Act, and, upon request of such clients or
client applicants, to assist and advocate for such clients or
applicants in their relationships with projects, programs,
and services provided under this Act, including assistance
and advocacy in pursuing legal, administrative, or other
appropriate remedies to ensure the protection of the rights
of such individuals under this Act and to facilitate access
to the services funded under this Act through individual and
systemic advocacy. The client assistance program shall
provide information on the available services and benefits
under this Act and title I of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12111 et seq.) to individuals with
disabilities in the State, especially with regard to
individuals with disabilities who have traditionally been
unserved or underserved by vocational rehabilitation
programs. In providing assistance and advocacy under this
subsection with respect to services under this title, a
client assistance program may provide the assistance and
advocacy with respect to services that are directly related
to facilitating the employment of the individual.
``(b) No State may receive payments from its allotment
under this Act in any fiscal year unless the State has in
effect not later than October 1, 1984, a client assistance
program which--
``(1) has the authority to pursue legal, administrative,
and other appropriate remedies to ensure the protection of
rights of individuals with disabilities who are receiving
treatments, services, or rehabilitation under this Act within
the State; and
``(2) meets the requirements of designation under
subsection (c).
``(c)(1)(A) The Governor shall designate a public or
private agency to conduct the client assistance program under
this section. Except as provided in the last sentence of this
subparagraph, the Governor shall designate an agency which is
independent of any agency which provides treatment, services,
or rehabilitation to individuals under this Act. If there is
an agency in the State which has, or had, prior to the date
of enactment of the Rehabilitation Amendments of 1984, served
as a client assistance agency under this section and which
received Federal financial assistance under this Act, the
Governor may, in the initial designation, designate an agency
which provides treatment, services, or rehabilitation to
individuals with disabilities under this Act.
``(B)(i) The Governor may not redesignate the agency
designated under subparagraph (A) without good cause and
unless--
``(I) the Governor has given the agency 30 days notice of
the intention to make such redesignation, including
specification of the good cause for such redesignation and an
opportunity to respond to the assertion that good cause has
been shown;
``(II) individuals with disabilities or the individuals'
representatives have timely notice of the redesignation and
opportunity for public comment; and
``(III) the agency has the opportunity to appeal to the
Commissioner on the basis that the redesignation was not for
good cause.
``(ii) If, after the date of enactment of the
Rehabilitation Act Amendments of 1998--
``(I) a designated State agency undergoes any change in the
organizational structure of the agency that results in the
creation of 1 or more new State agencies or departments or
results in the merger of the designated State agency with 1
or more other State agencies or departments; and
``(II) an agency (including an office or other unit) within
the designated State agency was conducting a client
assistance program before the change under the last sentence
of subparagraph (A),
the Governor shall redesignate the agency conducting the
program. In conducting the redesignation, the Governor shall
designate to conduct the program an agency that is
independent of any agency that provides treatment, services,
or rehabilitation to individuals with disabilities under this
Act.
``(2) In carrying out the provisions of this section, the
Governor shall consult with the director of the State
vocational rehabilitation agency, the head of the
developmental disability protection and advocacy agency, and
with representatives of professional and consumer
organizations serving individuals with disabilities in the
State.
``(3) The agency designated under this subsection shall be
accountable for the proper use of funds made available to the
agency.
``(4) For the purpose of this subsection, the term
`Governor' means the chief executive of the State.
``(d) The agency designated under subsection (c) of this
section may not bring any class action in carrying out its
responsibilities under this section.
``(e)(1)(A) The Secretary shall allot the sums appropriated
for each fiscal year under this section among the States on
the basis of relative population of each State, except that
no State shall receive less than $50,000.
``(B) The Secretary shall allot $30,000 each to American
Samoa, Guam, the Virgin Islands, and the Commonwealth of the
Northern Mariana Islands.
``(C) For the purpose of this paragraph, the term `State'
does not include American Samoa, Guam, the Virgin Islands,
and the Commonwealth of the Northern Mariana Islands.
``(D)(i) In any fiscal year that the funds appropriated for
such fiscal year exceed $7,500,000, the minimum allotment
shall be $100,000 for States and $45,000 for territories.
``(ii) For any fiscal year in which the total amount
appropriated under subsection (h) exceeds the total amount
appropriated under such subsection for the preceding fiscal
year, the Secretary shall increase each of the minimum
allotments under clause (i) by a percentage that shall not
exceed the percentage increase in the total amount
appropriated under such subsection between the preceding
fiscal year and the fiscal year involved.
``(2) The amount of an allotment to a State for a fiscal
year which the Secretary determines will not be required by
the State during the period for which it is available for the
purpose for which allotted shall be available for reallotment
by the Secretary at appropriate times to other States with
respect to which such a determination has not been made, in
proportion to the original allotments of such States for such
fiscal year, but with such proportionate amount for any of
such other States being reduced to the extent it exceeds the
sum the Secretary estimates such State needs and will be able
to use during such period, and the total of such reduction
shall be similarly reallotted among the States whose
proportionate amounts were not so reduced. Any such amount so
reallotted to a State for a fiscal year shall be deemed to be
a part of its allotment for such fiscal year.
``(3) Except as specifically prohibited by or as otherwise
provided in State law, the Secretary shall pay to the agency
designated under subsection (c) the amount specified in the
application approved under subsection (f).
``(f) No grant may be made under this section unless the
State submits an application to the Secretary at such time,
in such manner, and containing or accompanied by such
information as the Secretary deems necessary to meet the
requirements of this section.
``(g) The Secretary shall prescribe regulations applicable
to the client assistance program which shall include the
following requirements:
``(1) No employees of such programs shall, while so
employed, serve as staff or consultants of any rehabilitation
project, program,
[[Page S147]]
or facility receiving assistance under this Act in the State.
``(2) Each program shall be afforded reasonable access to
policymaking and administrative personnel in the State and
local rehabilitation programs, projects, or facilities.
``(3)(A) Each program shall contain provisions designed to
assure that to the maximum extent possible alternative means
of dispute resolution are available for use at the discretion
of an applicant or client of the program prior to resorting
to litigation or formal adjudication to resolve a dispute
arising under this section.
``(B) In subparagraph (A), the term `alternative means of
dispute resolution' means any procedure, including good faith
negotiation, conciliation, facilitation, mediation, fact
finding, and arbitration, and any combination of procedures,
that is used in lieu of litigation in a court or formal
adjudication in an administrative forum, to resolve a dispute
arising under this section.
``(4) For purposes of any periodic audit, report, or
evaluation of the performance of a client assistance program
under this section, the Secretary shall not require such a
program to disclose the identity of, or any other personally
identifiable information related to, any individual
requesting assistance under such program.
``(h) There are authorized to be appropriated such sums as
may be necessary for fiscal years 1998 through 2004 to carry
out the provisions of this section.
``Part C--American Indian Vocational Rehabilitation Services
``vocational rehabilitation services grants
``Sec. 121. (a) The Commissioner, in accordance with the
provisions of this part, may make grants to the governing
bodies of Indian tribes located on Federal and State
reservations (and consortia of such governing bodies) to pay
90 percent of the costs of vocational rehabilitation services
for American Indians who are individuals with disabilities
residing on such reservations. The non-Federal share of such
costs may be in cash or in kind, fairly valued, and the
Commissioner may waive such non-Federal share requirement in
order to carry out the purposes of this Act.
``(b)(1) No grant may be made under this part for any
fiscal year unless an application therefor has been submitted
to and approved by the Commissioner. The Commissioner may not
approve an application unless the application--
``(A) is made at such time, in such manner, and contains
such information as the Commissioner may require;
``(B) contains assurances that the rehabilitation services
provided under this part to American Indians who are
individuals with disabilities residing on a reservation in a
State shall be, to the maximum extent feasible, comparable to
rehabilitation services provided under this title to other
individuals with disabilities residing in the State and that,
where appropriate, may include services traditionally used by
Indian tribes; and
``(C) contains assurances that the application was
developed in consultation with the designated State unit of
the State.
``(2) The provisions of sections 5, 6, 7, and 102(a) of the
Indian Self-Determination and Education Assistance Act shall
be applicable to any application submitted under this part.
For purposes of this paragraph, any reference in any such
provision to the Secretary of Education or to the Secretary
of the Interior shall be considered to be a reference to the
Commissioner.
``(3) Any application approved under this part shall be
effective for not more than 60 months, except as determined
otherwise by the Commissioner pursuant to prescribed
regulations. The State shall continue to provide vocational
rehabilitation services under its State plan to American
Indians residing on a reservation whenever such State
includes any such American Indians in its State population
under section 110(a)(1).
``(4) In making grants under this part, the Secretary shall
give priority consideration to applications for the
continuation of programs which have been funded under this
part.
``(5) Nothing in this section may be construed to authorize
a separate service delivery system for Indian residents of a
State who reside in non-reservation areas.
``(c) The term `reservation' includes Indian reservations,
public domain Indian allotments, former Indian reservations
in Oklahoma, and land held by incorporated Native groups,
regional corporations, and village corporations under the
provisions of the Alaska Native Claims Settlement Act.
``Part D--Vocational Rehabilitation Services Client Information
``SEC. 131. DATA SHARING.
``(a) In General.--
``(1) Memorandum of understanding.--The Secretary of
Education and the Secretary of Health and Human Services
shall enter into a memorandum of understanding for the
purposes of exchanging data of mutual importance--
``(A) that concern clients of designated State agencies;
and
``(B) that are data maintained either by--
``(i) the Rehabilitation Services Administration, as
required by section 13; or
``(ii) the Social Security Administration, from its Summary
Earnings and Records and Master Beneficiary Records.
``(2) Labor market information.--The Secretary of Labor
shall provide the Commissioner with labor market information
that facilitates evaluation by the Commissioner of the
program carried out under part B, and allows the Commissioner
to compare the progress of individuals with disabilities who
are assisted under the program in securing, retaining,
regaining, and advancing in employment with the progress made
by individuals who are assisted under title III of the
Workforce Investment Partnership Act of 1998.
``(b) Treatment of Information.--For purposes of the
exchange described in subsection (a)(1), the data described
in subsection (a)(1)(B)(ii) shall not be considered return
information (as defined in section 6103(b)(2) of the Internal
Revenue Code of 1986) and, as appropriate, the
confidentiality of all client information shall be maintained
by the Rehabilitation Services Administration and the Social
Security Administration.''.
SEC. 5. RESEARCH AND TRAINING.
Title II of the Rehabilitation Act of 1973 (29 U.S.C. 760
et seq.) is amended to read as follows:
``TITLE II--RESEARCH AND TRAINING
``declaration of purpose
``Sec. 200. The purpose of this title is to--
``(1) provide for research, demonstration projects,
training, and related activities to maximize the full
inclusion and integration into society, employment,
independent living, family support, and economic and social
self-sufficiency of individuals with disabilities of all
ages, with particular emphasis on improving the effectiveness
of services authorized under this Act;
``(2) provide for a comprehensive and coordinated approach
to the support and conduct of such research, demonstration
projects, training, and related activities and to ensure that
the approach is in accordance with the 5-year plan developed
under section 202(h);
``(3) promote the transfer of rehabilitation technology to
individuals with disabilities through research and
demonstration projects relating to--
``(A) the procurement process for the purchase of
rehabilitation technology;
``(B) the utilization of rehabilitation technology on a
national basis;
``(C) specific adaptations or customizations of products to
enable individuals with disabilities to live more
independently; and
``(D) the development or transfer of assistive technology;
``(4) ensure the widespread distribution, in usable
formats, of practical scientific and technological
information--
``(A) generated by research, demonstration projects,
training, and related activities; and
``(B) regarding state-of-the-art practices, improvements in
the services authorized under this Act, rehabilitation
technology, and new knowledge regarding disabilities,
to rehabilitation professionals, individuals with
disabilities, and other interested parties, including the
general public;
``(5) identify effective strategies that enhance the
opportunities of individuals with disabilities to engage in
employment, including employment involving telecommuting and
self-employment; and
``(6) increase opportunities for researchers who are
members of traditionally underserved populations, including
researchers who are members of minority groups and
researchers who are individuals with disabilities.
``authorization of appropriations
``Sec. 201. (a) There are authorized to be appropriated--
``(1) for the purpose of providing for the expenses of the
National Institute on Disability and Rehabilitation Research
under section 202, which shall include the expenses of the
Rehabilitation Research Advisory Council under section 205,
and shall not include the expenses of such Institute to carry
out section 204, such sums as may be necessary for each of
fiscal years 1998 through 2004; and
``(2) to carry out section 204, such sums as may be
necessary for each of fiscal years 1998 through 2004.
``(b) Funds appropriated under this title shall remain
available until expended.
``national institute on disability and rehabilitation research
``Sec. 202. (a)(1) There is established within the
Department of Education a National Institute on Disability
and Rehabilitation Research (hereinafter in this title
referred to as the `Institute'), which shall be headed by a
Director (hereinafter in this title referred to as the
`Director'), in order to--
``(A) promote, coordinate, and provide for--
``(i) research;
``(ii) demonstration projects and training; and
``(iii) related activities,
with respect to individuals with disabilities;
``(B) more effectively carry out activities through the
programs under section 204 and activities under this section;
``(C) widely disseminate information from the activities
described in subparagraphs (A) and (B); and
``(D) provide leadership in advancing the quality of life
of individuals with disabilities.
``(2) In the performance of the functions of the office,
the Director shall be directly responsible to the Secretary
or to the same Under Secretary or Assistant Secretary of the
Department of Education to whom the Commissioner is
responsible under section 3(a).
``(b) The Director, through the Institute, shall be
responsible for--
[[Page S148]]
``(1) administering the programs described in section 204
and activities under this section;
``(2) widely disseminating findings, conclusions, and
recommendations, resulting from research, demonstration
projects, training, and related activities (referred to in
this title as `covered activities') funded by the Institute,
to--
``(A) other Federal, State, tribal, and local public
agencies;
``(B) private organizations engaged in research relating to
rehabilitation or providing rehabilitation services;
``(C) rehabilitation practitioners; and
``(D) individuals with disabilities and the individuals'
representatives;
``(3) coordinating, through the Interagency Committee
established by section 203 of this Act, all Federal programs
and policies relating to research in rehabilitation;
``(4) widely disseminating educational materials and
research results, concerning ways to maximize the full
inclusion and integration into society, employment,
independent living, family support, and economic and social
self-sufficiency of individuals with disabilities, to--
``(A) public and private entities, including--
``(i) elementary and secondary schools (as defined in
section 14101 of the Elementary and Secondary Education Act
of 1965; and
``(ii) institutions of higher education;
``(B) rehabilitation practitioners;
``(C) individuals with disabilities (especially such
individuals who are members of minority groups or of
populations that are unserved or underserved by programs
under this Act); and
``(D) the individuals' representatives for the individuals
described in subparagraph (C);
``(5)(A) conducting an education program to inform the
public about ways of providing for the rehabilitation of
individuals with disabilities, including information relating
to--
``(i) family care;
``(ii) self-care; and
``(iii) assistive technology devices and assistive
technology services; and
``(B) as part of the program, disseminating engineering
information about assistive technology devices;
``(6) conducting conferences, seminars, and workshops
(including in-service training programs and programs for
individuals with disabilities) concerning advances in
rehabilitation research and rehabilitation technology
(including advances concerning the selection and use of
assistive technology devices and assistive technology
services), pertinent to the full inclusion and integration
into society, employment, independent living, family support,
and economic and social self-sufficiency of individuals with
disabilities;
``(7) taking whatever action is necessary to keep the
Congress fully and currently informed with respect to the
implementation and conduct of programs and activities carried
out under this title, including dissemination activities;
``(8) producing, in conjunction with the Department of
Labor, the National Center for Health Statistics, the Bureau
of the Census, the Health Care Financing Administration, the
Social Security Administration, the Bureau of Indian Affairs,
the Indian Health Service, and other Federal departments and
agencies, as may be appropriate, statistical reports and
studies on the employment, health, income, and other
demographic characteristics of individuals with disabilities,
including information on individuals with disabilities who
live in rural or inner-city settings, with particular
attention given to underserved populations, and widely
disseminating such reports and studies to rehabilitation
professionals, individuals with disabilities, the
individuals' representatives, and others to assist in the
planning, assessment, and evaluation of vocational and other
rehabilitation services for individuals with disabilities;
``(9) conducting research on consumer satisfaction with
vocational rehabilitation services for the purpose of
identifying effective rehabilitation programs and policies
that promote the independence of individuals with
disabilities and achievement of long-term vocational goals;
``(10) conducting research to examine the relationship
between the provision of specific services and successful,
sustained employment outcomes, including employment outcomes
involving self-employment; and
``(11) coordinating activities with the Attorney General
regarding the provision of information, training, or
technical assistance regarding the Americans with
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) to ensure
consistency with the plan for technical assistance required
under section 506 of such Act (42 U.S.C. 12206).
``(c)(1) The Director, acting through the Institute or 1 or
more entities funded by the Institute, shall provide for the
development and dissemination of models to address consumer-
driven information needs related to assistive technology
devices and assistive technology services.
``(2) The development and dissemination of models may
include--
``(A) convening groups of individuals with disabilities,
family members and advocates of such individuals, commercial
producers of assistive technology, and entities funded by the
Institute to develop, assess, and disseminate knowledge about
information needs related to assistive technology;
``(B) identifying the types of information regarding
assistive technology devices and assistive technology
services that individuals with disabilities find especially
useful;
``(C) evaluating current models, and developing new models,
for transmitting the information described in subparagraph
(B) to consumers and to commercial producers of assistive
technology; and
``(D) disseminating through 1 or more entities funded by
the Institute, the models described in subparagraph (C) and
findings regarding the information described in subparagraph
(B) to consumers and commercial producers of assistive
technology.
``(d)(1) The Director of the Institute shall be appointed
by the Secretary. The Director shall be an individual with
substantial experience in rehabilitation and in research
administration. The Director shall be compensated at the rate
payable for level V of the Executive Schedule under section
5316 of title 5, United States Code. The Director shall not
delegate any of his functions to any officer who is not
directly responsible to the Director.
``(2) There shall be a Deputy Director of the Institute
(referred to in this section as the `Deputy Director') who
shall be appointed by the Secretary. The Deputy Director
shall be an individual with substantial experience in
rehabilitation and in research administration. The Deputy
Director shall be compensated at the rate of pay for level 4
of the Senior Executive Service Schedule under section 5382
of title 5, United States Code, and shall act for the
Director during the absence of the Director or the inability
of the Director to perform the essential functions of the
job, exercising such powers as the Director may prescribe. In
the case of any vacancy in the office of the Director, the
Deputy Director shall serve as Director until a Director is
appointed under paragraph (1). The position created by this
paragraph shall be a Senior Executive Service position, as
defined in section 3132 of title 5, United States Code.
``(3) The Director, subject to the approval of the
President, may appoint, for terms not to exceed three years,
without regard to the provisions of title 5, United States
Code, governing appointment in the competitive service, and
may compensate, without regard to the provisions of chapter
51 and subchapter III of chapter 53 of such title relating to
classification and General Schedule pay rates, such technical
and professional employees of the Institute as the Director
determines to be necessary to accomplish the functions of the
Institute and also appoint and compensate without regard to
such provisions, in a number not to exceed one-fifth of the
number of full-time, regular technical and professional
employees of the Institute.
``(4) The Director may obtain the services of consultants,
without regard to the provisions of title 5, United States
Code, governing appointments in the competitive service.
``(e) The Director, pursuant to regulations which the
Secretary shall prescribe, may establish and maintain
fellowships with such stipends and allowances, including
travel and subsistence expenses provided for under title 5,
United States Code, as the Director considers necessary to
procure the assistance of highly qualified research fellows,
including individuals with disabilities, from the United
States and foreign countries.
``(f)(1) The Director shall, pursuant to regulations that
the Secretary shall prescribe, provide for scientific peer
review of all applications for financial assistance for
research, training, and demonstration projects over which the
Director has authority. The Director shall provide for the
review by utilizing, to the maximum extent possible,
appropriate peer review panels established within the
Institute. The panels shall be standing panels if the grant
period involved or the duration of the program involved is
not more than 3 years. The panels shall be composed of
individuals who are not Federal employees, who are scientists
or other experts in the rehabilitation field (including the
independent living field), including knowledgeable
individuals with disabilities, and the individuals'
representatives, and who are competent to review applications
for the financial assistance.
``(2) The Federal Advisory Committee Act (5 U.S.C. App.)
shall not apply to the panels.
``(3) The Director shall solicit nominations for such
panels from the public and shall publish the names of the
individuals selected. Individuals comprising each panel shall
be selected from a pool of qualified individuals to
facilitate knowledgeable, cost-effective review.
``(4) In providing for such scientific peer review, the
Secretary shall provide for training, as necessary and
appropriate, to facilitate the effective participation of
those individuals selected to participate in such review.
``(g) Not less than 90 percent of the funds appropriated
under this title for any fiscal year shall be expended by the
Director to carry out activities under this title through
grants, contracts, or cooperative agreements. Up to 10
percent of the funds appropriated under this title for any
fiscal year may be expended directly for the purpose of
carrying out the functions of the Director under this
section.
``(h)(1) The Director shall--
``(A) by October 1, 1998 and every fifth October 1
thereafter, prepare and publish in the Federal Register for
public comment a draft of a 5-year plan that outlines
priorities for rehabilitation research, demonstration
projects, training, and related activities and explains the
basis for such priorities;
[[Page S149]]
``(B) by June 1, 1999, and every fifth June 1 thereafter,
after considering public comments, submit the plan in final
form to the appropriate committees of Congress;
``(C) at appropriate intervals, prepare and submit
revisions in the plan to the appropriate committees of
Congress; and
``(D) annually prepare and submit progress reports on the
plan to the appropriate committees of Congress.
``(2) Such plan shall--
``(A) identify any covered activity that should be
conducted under this section and section 204 respecting the
full inclusion and integration into society of individuals
with disabilities, especially in the area of employment;
``(B) determine the funding priorities for covered
activities to be conducted under this section and section
204;
``(C) specify appropriate goals and timetables for covered
activities to be conducted under this section and section
204;
``(D) be developed by the Director--
``(i) after consultation with the Rehabilitation Research
Advisory Council established under section 205;
``(ii) in coordination with the Commissioner;
``(iii) after consultation with the National Council on
Disability established under title IV, the Secretary of
Education, officials responsible for the administration of
the Developmental Disabilities Assistance and Bill of Rights
Act (42 U.S.C. 6000 et seq.), and the Interagency Committee
on Disability Research established under section 203; and
``(iv) after full consideration of the input of individuals
with disabilities and the individuals' representatives,
organizations representing individuals with disabilities,
providers of services furnished under this Act, researchers
in the rehabilitation field, and any other persons or
entities the Director considers to be appropriate;
``(E) specify plans for widespread dissemination of the
results of covered activities, in accessible formats, to
rehabilitation practitioners, individuals with disabilities,
and the individuals' representatives; and
``(F) specify plans for widespread dissemination of the
results of covered activities that concern individuals with
disabilities who are members of minority groups or of
populations that are unserved or underserved by programs
carried out under this Act.
``(i) In order to promote cooperation among Federal
departments and agencies conducting research programs, the
Director shall consult with the administrators of such
programs, and with the Interagency Committee established by
section 203, regarding the design of research projects
conducted by such entities and the results and applications
of such research.
``(j)(1) The Director shall take appropriate actions to
provide for a comprehensive and coordinated research program
under this title. In providing such a program, the Director
may undertake joint activities with other Federal entities
engaged in research and with appropriate private entities.
Any Federal entity proposing to establish any research
project related to the purposes of this Act shall consult,
through the Interagency Committee established by section 203,
with the Director as Chairperson of such Committee and
provide the Director with sufficient prior opportunity to
comment on such project.
``(2) Any person responsible for administering any program
of the National Institutes of Health, the Department of
Veterans Affairs, the National Science Foundation, the
National Aeronautics and Space Administration, the Office of
Special Education and Rehabilitative Services, or of any
other Federal entity, shall, through the Interagency
Committee established by section 203, consult and cooperate
with the Director in carrying out such program if the program
is related to the purposes of this title.
``(k) The Director shall make grants to institutions of
higher education for the training of rehabilitation
researchers, including individuals with disabilities, with
particular attention to research areas that support the
implementation and objectives of this Act and that improve
the effectiveness of services authorized under this Act.
``interagency committee
``Sec. 203. (a)(1) In order to promote coordination and
cooperation among Federal departments and agencies conducting
rehabilitation research programs, there is established within
the Federal Government an Interagency Committee on Disability
Research (hereinafter in this section referred to as the
`Committee'), chaired by the Director and comprised of such
members as the President may designate, including the
following (or their designees): the Director, the
Commissioner of the Rehabilitation Services Administration,
the Assistant Secretary for Special Education and
Rehabilitative Services, the Secretary of Education, the
Secretary of Veterans Affairs, the Director of the National
Institutes of Health, the Director of the National Institute
of Mental Health, the Administrator of the National
Aeronautics and Space Administration, the Secretary of
Transportation, the Assistant Secretary of the Interior for
Indian Affairs, the Director of the Indian Health Service,
and the Director of the National Science Foundation.
``(2) The Committee shall meet not less than four times
each year.
``(b) After receiving input from individuals with
disabilities and the individuals' representatives, the
Committee shall identify, assess, and seek to coordinate all
Federal programs, activities, and projects, and plans for
such programs, activities, and projects with respect to the
conduct of research related to rehabilitation of individuals
with disabilities.
``(c) The Committee shall annually submit to the President
and to the appropriate committees of the Congress a report
making such recommendations as the Committee deems
appropriate with respect to coordination of policy and
development of objectives and priorities for all Federal
programs relating to the conduct of research related to
rehabilitation of individuals with disabilities.
``research and other covered activities
``Sec. 204. (a)(1) To the extent consistent with priorities
established in the 5-year plan described in section 202(h),
the Director may make grants to and contracts with States and
public or private agencies and organizations, including
institutions of higher education, Indian tribes, and tribal
organizations, to pay part of the cost of projects for the
purpose of planning and conducting research, demonstration
projects, training, and related activities, the purposes of
which are to develop methods, procedures, and rehabilitation
technology, that maximize the full inclusion and integration
into society, employment, independent living, family support,
and economic and social self-sufficiency of individuals with
disabilities, especially individuals with the most
significant disabilities, and improve the effectiveness of
services authorized under this Act.
``(2)(A) In carrying out this section, the Director shall
emphasize projects that support the implementation of titles
I, III, V, VI, and VII, including projects addressing the
needs described in the State plans submitted under section
101 or 704 by State agencies.
``(B) Such projects, as described in the State plans
submitted by State agencies, may include--
``(i) medical and other scientific, technical,
methodological, and other investigations into the nature of
disability, methods of analyzing it, and restorative
techniques, including basic research where related to
rehabilitation techniques or services;
``(ii) studies and analysis of industrial, vocational,
social, recreational, psychiatric, psychological, economic,
and other factors affecting rehabilitation of individuals
with disabilities;
``(iii) studies and analysis of special problems of
individuals who are homebound and individuals who are
institutionalized;
``(iv) studies, analyses, and demonstrations of
architectural and engineering design adapted to meet the
special needs of individuals with disabilities;
``(v) studies, analyses, and other activities related to
supported employment;
``(vi) related activities which hold promise of increasing
knowledge and improving methods in the rehabilitation of
individuals with disabilities and individuals with the most
significant disabilities, particularly individuals with
disabilities, and individuals with the most significant
disabilities, who are members of populations that are
unserved or underserved by programs under this Act; and
``(vii) studies, analyses, and other activities related to
job accommodations, including the use of rehabilitation
engineering and assistive technology.
``(b)(1) In addition to carrying out projects under
subsection (a), the Director may make grants under this
subsection (referred to in this subsection as `research
grants') to pay part or all of the cost of the research or
other specialized covered activities described in paragraphs
(2) through (18). A research grant made under any of
paragraphs (2) through (18) may only be used in a manner
consistent with priorities established in the 5-year plan
described in section 202(h).
``(2)(A) Research grants may be used for the establishment
and support of Rehabilitation Research and Training Centers,
for the purpose of providing an integrated program of
research, which Centers shall--
``(i) be operated in collaboration with institutions of
higher education or providers of rehabilitation services or
other appropriate services; and
``(ii) serve as centers of national excellence and national
or regional resources for providers and individuals with
disabilities and the individuals' representatives.
``(B) The Centers shall conduct research and training
activities by--
``(i) conducting coordinated and advanced programs of
research in rehabilitation targeted toward the production of
new knowledge that will improve rehabilitation methodology
and service delivery systems, alleviate or stabilize
disabling conditions, and promote maximum social and economic
independence of individuals with disabilities, especially
promoting the ability of the individuals to prepare for,
secure, retain, regain, or advance in employment;
``(ii) providing training (including graduate, pre-service,
and in-service training) to assist individuals to more
effectively provide rehabilitation services;
``(iii) providing training (including graduate, pre-
service, and in-service training) for rehabilitation research
personnel and other rehabilitation personnel; and
``(iv) serving as an informational and technical assistance
resource to providers, individuals with disabilities, and the
individuals' representatives, through conferences, workshops,
public education programs, in-service training programs, and
similar activities.
``(C) The research to be carried out at each such Center
may include--
[[Page S150]]
``(i) basic or applied medical rehabilitation research;
``(ii) research regarding the psychological and social
aspects of rehabilitation, including disability policy;
``(iii) research related to vocational rehabilitation;
``(iv) continuation of research that promotes the
emotional, social, educational, and functional growth of
children who are individuals with disabilities;
``(v) continuation of research to develop and evaluate
interventions, policies, and services that support families
of those children and adults who are individuals with
disabilities; and
``(vi) continuation of research that will improve services
and policies that foster the productivity, independence, and
social integration of individuals with disabilities, and
enable individuals with disabilities, including individuals
with mental retardation and other developmental disabilities,
to live in their communities.
``(D) Training of students preparing to be rehabilitation
personnel shall be an important priority for such a Center.
``(E) The Director shall make grants under this paragraph
to establish and support both comprehensive centers dealing
with multiple disabilities and centers primarily focused on
particular disabilities.
``(F) Grants made under this paragraph may be used to
provide funds for services rendered by such a Center to
individuals with disabilities in connection with the research
and training activities.
``(G) Grants made under this paragraph may be used to
provide faculty support for teaching--
``(i) rehabilitation-related courses of study for credit;
and
``(ii) other courses offered by the Centers, either
directly or through another entity.
``(H) The research and training activities conducted by
such a Center shall be conducted in a manner that is
accessible to and usable by individuals with disabilities.
``(I) The Director shall encourage the Centers to develop
practical applications for the findings of the research of
the Centers.
``(J) In awarding grants under this paragraph, the Director
shall take into consideration the location of any proposed
Center and the appropriate geographic and regional allocation
of such Centers.
``(K) To be eligible to receive a grant under this
paragraph, each such institution or provider described in
subparagraph (A) shall--
``(i) be of sufficient size, scope, and quality to
effectively carry out the activities in an efficient manner
consistent with appropriate State and Federal law; and
``(ii) demonstrate the ability to carry out the training
activities either directly or through another entity that can
provide such training.
``(L) The Director shall make grants under this paragraph
for periods of 5 years, except that the Director may make a
grant for a period of less than 5 years if--
``(i) the grant is made to a new recipient; or
``(ii) the grant supports new or innovative research.
``(M) Grants made under this paragraph shall be made on a
competitive basis. To be eligible to receive a grant under
this paragraph, a prospective grant recipient shall submit an
application to the Director at such time, in such manner, and
containing such information as the Director may require.
``(N) In conducting scientific peer review under section
202(f) of an application for the renewal of a grant made
under this paragraph, the peer review panel shall take into
account the past performance of the applicant in carrying out
the grant and input from individuals with disabilities and
the individuals' representatives.
``(O) An institution or provider that receives a grant
under this paragraph to establish such a Center may not
collect more than 15 percent of the amount of the grant
received by the Center in indirect cost charges.
``(3)(A) Research grants may be used for the establishment
and support of Rehabilitation Engineering Research Centers,
operated by or in collaboration with institutions of higher
education or nonprofit organizations, to conduct research or
demonstration activities, and training activities, regarding
rehabilitation technology, including rehabilitation
engineering, assistive technology devices, and assistive
technology services, for the purposes of enhancing
opportunities for better meeting the needs of, and addressing
the barriers confronted by, individuals with disabilities in
all aspects of their lives.
``(B) In order to carry out the purposes set forth in
subparagraph (A), such a Center shall carry out the research
or demonstration activities by--
``(i) developing and disseminating innovative methods of
applying advanced technology, scientific achievement, and
psychological and social knowledge to--
``(I) solve rehabilitation problems and remove
environmental barriers through planning and conducting
research, including cooperative research with public or
private agencies and organizations, designed to produce new
scientific knowledge, and new or improved methods, equipment,
and devices; and
``(II) study new or emerging technologies, products, or
environments, and the effectiveness and benefits of such
technologies, products, or environments;
``(ii) demonstrating and disseminating--
``(I) innovative models for the delivery, to rural and
urban areas, of cost-effective rehabilitation technology
services that promote utilization of assistive technology
devices; and
``(II) other scientific research to assist in meeting the
employment and independent living needs of individuals with
significant disabilities; or
``(iii) conducting research or demonstration activities
that facilitate service delivery systems change by
demonstrating, evaluating, documenting, and disseminating--
``(I) consumer responsive and individual and family-
centered innovative models for the delivery to both rural and
urban areas, of innovative cost-effective rehabilitation
technology services that promote utilization of
rehabilitation technology; and
``(II) other scientific research to assist in meeting the
employment and independent living needs of, and addressing
the barriers confronted by, individuals with disabilities,
including individuals with significant disabilities.
``(C) To the extent consistent with the nature and type of
research or demonstration activities described in
subparagraph (B), each Center established or supported
through a grant made available under this paragraph shall--
``(i) cooperate with programs established under the
Technology-Related Assistance for Individuals With
Disabilities Act of 1988 (29 U.S.C. 2201 et seq.) and other
regional and local programs to provide information to
individuals with disabilities and the individuals'
representatives to--
``(I) increase awareness and understanding of how
rehabilitation technology can address their needs; and
``(II) increase awareness and understanding of the range of
options, programs, services, and resources available,
including financing options for the technology and services
covered by the area of focus of the Center;
``(ii) provide training opportunities to individuals,
including individuals with disabilities, to become
researchers of rehabilitation technology and practitioners of
rehabilitation technology in conjunction with institutions of
higher education and nonprofit organizations; and
``(iii) respond, through research or demonstration
activities, to the needs of individuals with all types of
disabilities who may benefit from the application of
technology within the area of focus of the Center.
``(D)(i) In establishing Centers to conduct the research or
demonstration activities described in subparagraph (B)(iii),
the Director may establish one Center in each of the
following areas of focus:
``(I) Early childhood services, including early
intervention and family support.
``(II) Education at the elementary and secondary levels,
including transition from school to postschool activities.
``(III) Employment, including supported employment, and
reasonable accommodations and the reduction of environmental
barriers as required by the Americans with Disabilities Act
of 1990 (42 U.S.C. 12101 et seq.) and title V.
``(IV) Independent living, including transition from
institutional to community living, maintenance of community
living on leaving the work force, self-help skills, and
activities of daily living.
``(ii) Each Center conducting the research or demonstration
activities described in subparagraph (B)(iii) shall have an
advisory committee, of which the majority of members are
individuals with disabilities who are users of rehabilitation
technology, and the individuals' representatives.
``(E) Grants made under this paragraph shall be made on a
competitive basis and shall be for a period of 5 years,
except that the Director may make a grant for a period of
less than 5 years if--
``(i) the grant is made to a new recipient; or
``(ii) the grant supports new or innovative research.
``(F) To be eligible to receive a grant under this
paragraph, a prospective grant recipient shall submit an
application to the Director at such time, in such manner, and
containing such information as the Director may require.
``(G) Each Center established or supported through a grant
made available under this paragraph shall--
``(i) cooperate with State agencies and other local, State,
regional, and national programs and organizations developing
or delivering rehabilitation technology, including State
programs funded under the Technology-Related Assistance for
Individuals With Disabilities Act of 1988 (29 U.S.C. 2201 et
seq.); and
``(ii) prepare and submit to the Director as part of an
application for continuation of a grant, or as a final
report, a report that documents the outcomes of the program
of the Center in terms of both short- and long-term impact on
the lives of individuals with disabilities, and such other
information as may be requested by the Director.
``(4)(A) Research grants may be used to conduct a program
for spinal cord injury research, including conducting such a
program by making grants to public or private agencies and
organizations to pay part or all of the costs of special
projects and demonstration projects for spinal cord injuries,
that will--
``(i) ensure widespread dissemination of research findings
among all Spinal Cord Injury Centers, to rehabilitation
practitioners, individuals with spinal cord injury, the
individuals' representatives, and organizations receiving
financial assistance under this paragraph;
[[Page S151]]
``(ii) provide encouragement and support for initiatives
and new approaches by individual and institutional
investigators; and
``(iii) establish and maintain close working relationships
with other governmental and voluntary institutions and
organizations engaged in similar efforts in order to unify
and coordinate scientific efforts, encourage joint planning,
and promote the interchange of data and reports among spinal
cord injury investigations.
``(B) Any agency or organization carrying out a project or
demonstration project assisted by a grant under this
paragraph that provides services to individuals with spinal
cord injuries shall--
``(i) establish, on an appropriate regional basis, a
multidisciplinary system of providing vocational and other
rehabilitation services, specifically designed to meet the
special needs of individuals with spinal cord injuries,
including acute care as well as periodic inpatient or
outpatient followup and services;
``(ii) demonstrate and evaluate the benefits to individuals
with spinal cord injuries served in, and the degree of cost
effectiveness of, such a regional system;
``(iii) demonstrate and evaluate existing, new, and
improved methods and rehabilitation technology essential to
the care, management, and rehabilitation of individuals with
spinal cord injuries; and
``(iv) demonstrate and evaluate methods of community
outreach for individuals with spinal cord injuries and
community education in connection with the problems of such
individuals in areas such as housing, transportation,
recreation, employment, and community activities.
``(C) In awarding grants under this paragraph, the Director
shall take into account the location of any proposed Spinal
Cord Injury Center and the appropriate geographic and
regional allocation of such Centers.
``(5) Research grants may be used to conduct a program for
end-stage renal disease research, to include support of
projects and demonstrations for providing special services
(including transplantation and dialysis), artificial kidneys,
and supplies necessary for the rehabilitation of individuals
with such disease and which will--
``(A) insure dissemination of research findings;
``(B) provide encouragement and support for initiatives and
new approaches by individuals and institutional
investigators; and
``(C) establish and maintain close working relationships
with other governmental and voluntary institutions and
organizations engaged in similar efforts,
in order to unify and coordinate scientific efforts,
encourage joint planning, and promote the interchange of data
and reports among investigators in the field of end-stage
renal disease. No person shall be selected to participate in
such program who is eligible for services for such disease
under any other provision of law.
``(6) Research grants may be used to conduct a program for
international rehabilitation research, demonstration, and
training for the purpose of developing new knowledge and
methods in the rehabilitation of individuals with
disabilities in the United States, cooperating with and
assisting in developing and sharing information found useful
in other nations in the rehabilitation of individuals with
disabilities, and initiating a program to exchange experts
and technical assistance in the field of rehabilitation of
individuals with disabilities with other nations as a means
of increasing the levels of skill of rehabilitation
personnel.
``(7) Research grants may be used to conduct a research
program concerning the use of existing telecommunications
systems (including telephone, television, satellite, radio,
and other similar systems) which have the potential for
substantially improving service delivery methods, and the
development of appropriate programing to meet the particular
needs of individuals with disabilities.
``(8) Research grants may be used to conduct a program of
joint projects with the National Institutes of Health, the
National Institute of Mental Health, the Health Services
Administration, the Administration on Aging, the National
Science Foundation, the Veterans' Administration, the
Department of Health and Human Services, the National
Aeronautics and Space Administration, other Federal agencies,
and private industry in areas of joint interest involving
rehabilitation.
``(9) Research grants may be used to conduct a program of
research related to the rehabilitation of children, or older
individuals, who are individuals with disabilities, including
older American Indians who are individuals with disabilities.
Such research program may include projects designed to assist
the adjustment of, or maintain as residents in the community,
older workers who are individuals with disabilities on
leaving the work force.
``(10) Research grants may be used to conduct a research
program to develop and demonstrate innovative methods to
attract and retain professionals to serve in rural areas in
the rehabilitation of individuals with disabilities,
including individuals with significant disabilities.
``(11) Research grants may be used to conduct a model
research and demonstration project designed to assess the
feasibility of establishing a center for producing and
distributing to individuals who are deaf or hard of hearing
captioned video cassettes providing a broad range of
educational, cultural, scientific, and vocational programing.
``(12) Research grants may be used to conduct a model
research and demonstration program to develop innovative
methods of providing services for preschool age children who
are individuals with disabilities, including the--
``(A) early intervention, assessment, parent counseling,
infant stimulation, early identification, diagnosis, and
evaluation of children who are individuals with significant
disabilities up to the age of five, with a special emphasis
on children who are individuals with significant disabilities
up to the age of three;
``(B) such physical therapy, language development,
pediatric, nursing, psychological, and psychiatric services
as are necessary for such children; and
``(C) appropriate services for the parents of such
children, including psychological and psychiatric services,
parent counseling, and training.
``(13) Research grants may be used to conduct a model
research and training program under which model training
centers shall be established to develop and use more advanced
and effective methods of evaluating and addressing the
employment needs of individuals with disabilities, including
programs which--
``(A) provide training and continuing education for
personnel involved with the employment of individuals with
disabilities;
``(B) develop model procedures for testing and evaluating
the employment needs of individuals with disabilities;
``(C) develop model training programs to teach individuals
with disabilities skills which will lead to appropriate
employment;
``(D) develop new approaches for job placement of
individuals with disabilities, including new followup
procedures relating to such placement;
``(E) provide information services regarding education,
training, employment, and job placement for individuals with
disabilities; and
``(F) develop new approaches and provide information
regarding job accommodations, including the use of
rehabilitation engineering and assistive technology.
``(14) Research grants may be used to conduct a
rehabilitation research program under which financial
assistance is provided in order to--
``(A) test new concepts and innovative ideas;
``(B) demonstrate research results of high potential
benefits;
``(C) purchase prototype aids and devices for evaluation;
``(D) develop unique rehabilitation training curricula; and
``(E) be responsive to special initiatives of the Director.
No single grant under this paragraph may exceed $50,000 in
any fiscal year and all payments made under this paragraph in
any fiscal year may not exceed 5 percent of the amount
available for this section to the National Institute on
Disability and Rehabilitation Research in any fiscal year.
Regulations and administrative procedures with respect to
financial assistance under this paragraph shall, to the
maximum extent possible, be expedited.
``(15) Research grants may be used to conduct studies of
the rehabilitation needs of American Indian populations and
of effective mechanisms for the delivery of rehabilitation
services to Indians residing on and off reservations.
``(16) Research grants may be used to conduct a
demonstration program under which one or more projects
national in scope shall be established to develop procedures
to provide incentives for the development, manufacturing, and
marketing of orphan technological devices, including
technology transfer concerning such devices, designed to
enable individuals with disabilities to achieve independence
and access to gainful employment.
``(17)(A) Research grants may be used to conduct a research
program related to quality assurance in the area of
rehabilitation technology.
``(B) Activities carried out under the research program may
include--
``(i) the development of methodologies to evaluate
rehabilitation technology products and services and the
dissemination of the methodologies to consumers and other
interested parties;
``(ii) identification of models for service provider
training and evaluation and certification of the
effectiveness of the models;
``(iii) identification and dissemination of outcome
measurement models for the assessment of rehabilitation
technology products and services; and
``(iv) development and testing of research-based tools to
enhance consumer decisionmaking about rehabilitation
technology products and services.
``(C) The Director shall develop the quality assurance
research program after consultation with representatives of
all types of organizations interested in rehabilitation
technology quality assurance.
``(18) Research grants may be used to provide for research
and demonstration projects and related activities that
explore the use and effectiveness of specific alternative or
complementary medical practices for individuals with
disabilities. Such projects and activities may include
projects and activities designed to--
``(A) determine the use of specific alternative or
complementary medical practices
[[Page S152]]
among individuals with disabilities and the perceived
effectiveness of the practices;
``(B) determine the specific information sources,
decisionmaking methods, and methods of payment used by
individuals with disabilities who access alternative or
complementary medical services;
``(C) develop criteria to screen and assess the validity of
research studies of such practices for individuals with
disabilities; and
``(D) determine the effectiveness of specific alternative
or complementary medical practices that show promise for
promoting increased functioning, prevention of secondary
disabilities, or other positive outcomes for individuals with
certain types of disabilities, by conducting controlled
research studies.
``(c)(1) In carrying out evaluations of covered activities
under this section, the Director is authorized to make
arrangements for site visits to obtain information on the
accomplishments of the projects.
``(2) The Director shall not make a grant under this
section which exceeds $499,999 unless the peer review of the
grant application has included a site visit.
``rehabilitation research advisory council
``Sec. 205. (a) Establishment.--Subject to the availability
of appropriations, the Secretary shall establish in the
Department of Education a Rehabilitation Research Advisory
Council (referred to in this section as the `Council')
composed of 12 members appointed by the Secretary.
``(b) Duties.--The Council shall advise the Director with
respect to research priorities and the development and
revision of the 5-year plan required by section 202(h).
``(c) Qualifications.--Members of the Council shall be
generally representative of the community of rehabilitation
professionals, the community of rehabilitation researchers,
the community of individuals with disabilities, and the
individuals' representatives. At least one-half of the
members shall be individuals with disabilities or the
individuals' representatives.
``(d) Terms of Appointment.--
``(1) Length of term.--Each member of the Council shall
serve for a term of up to 3 years, determined by the
Secretary, except that--
``(A) a member appointed to fill a vacancy occurring prior
to the expiration of the term for which a predecessor was
appointed, shall be appointed for the remainder of such term;
and
``(B) the terms of service of the members initially
appointed shall be (as specified by the Secretary) for such
fewer number of years as will provide for the expiration of
terms on a staggered basis.
``(2) Number of terms.--No member of the Council may serve
more than two consecutive full terms. Members may serve after
the expiration of their terms until their successors have
taken office.
``(e) Vacancies.--Any vacancy occurring in the membership
of the Council shall be filled in the same manner as the
original appointment for the position being vacated. The
vacancy shall not affect the power of the remaining members
to execute the duties of the Council.
``(f) Payment and Expenses.--
``(1) Payment.--Each member of the Council who is not an
officer or full-time employee of the Federal Government shall
receive a payment of $150 for each day (including travel
time) during which the member is engaged in the performance
of duties for the Council. All members of the Council who are
officers or full-time employees of the United States shall
serve without compensation in addition to compensation
received for their services as officers or employees of the
United States.
``(2) Travel expenses.--Each member of the Council may
receive travel expenses, including per diem in lieu of
subsistence, as authorized by section 5703 of title 5, United
States Code, for employees serving intermittently in the
Government service, for each day the member is engaged in the
performance of duties away from the home or regular place of
business of the member.
``(g) Detail of Federal Employees.--On the request of the
Council, the Secretary may detail, with or without
reimbursement, any of the personnel of the Department of
Education to the Council to assist the Council in carrying
out its duties. Any detail shall not interrupt or otherwise
affect the civil service status or privileges of the Federal
employee.
``(h) Technical Assistance.--On the request of the Council,
the Secretary shall provide such technical assistance to the
Council as the Council determines to be necessary to carry
out its duties.
``(i) Termination.--Section 14 of the Federal Advisory
Committee Act (5 U.S.C. App.) shall not apply with respect to
the Council.''.
SEC. 6. PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS.
Title III of the Rehabilitation Act of 1973 (29 U.S.C. 770
et seq.) is amended to read as follows:
``TITLE III--PROFESSIONAL DEVELOPMENT AND SPECIAL PROJECTS AND
DEMONSTRATIONS
``SEC. 301. DECLARATION OF PURPOSE AND COMPETITIVE BASIS OF
GRANTS AND CONTRACTS.
``(a) Purpose.--It is the purpose of this title to
authorize grants and contracts to--
``(1)(A) provide academic training to ensure that skilled
personnel are available to provide rehabilitation services to
individuals with disabilities through vocational, medical,
social, and psychological rehabilitation programs (including
supported employment programs), through independent living
services programs, and through client assistance programs;
and
``(B) provide training to maintain and upgrade basic skills
and knowledge of personnel employed to provide state-of-the-
art service delivery and rehabilitation technology services;
``(2) conduct special projects and demonstrations that
expand and improve the provision of rehabilitation and other
services authorized under this Act, or that otherwise further
the purposes of this Act, including related research and
evaluation;
``(3) provide vocational rehabilitation services to
individuals with disabilities who are migrant or seasonal
farmworkers;
``(4) initiate recreational programs to provide
recreational activities and related experiences for
individuals with disabilities to aid such individuals in
employment, mobility, socialization, independence, and
community integration; and
``(5) provide training and information to individuals with
disabilities and the individuals' representatives, and other
appropriate parties to develop the skills necessary for
individuals with disabilities to gain access to the
rehabilitation system and workforce investment system and to
become active decisionmakers in the rehabilitation process.
``(b) Competitive Basis of Grants and Contracts.--The
Secretary shall ensure that all grants and contracts are
awarded under this title on a competitive basis.
``SEC. 302. TRAINING.
``(a) Grants and Contracts for Personnel Training.--
``(1) Authority.--The Commissioner shall make grants to,
and enter into contracts with, States and public or nonprofit
agencies and organizations (including institutions of higher
education) to pay part of the cost of projects to provide
training, traineeships, and related activities, including the
provision of technical assistance, that are designed to
assist in increasing the numbers of, and upgrading the skills
of, qualified personnel (especially rehabilitation
counselors) who are trained in providing vocational, medical,
social, and psychological rehabilitation services, who are
trained to assist individuals with communication and related
disorders, who are trained to provide other services provided
under this Act, to individuals with disabilities, and who may
include--
``(A) personnel specifically trained in providing
employment assistance to individuals with disabilities
through job development and job placement services;
``(B) personnel specifically trained to identify, assess,
and meet the individual rehabilitation needs of individuals
with disabilities, including needs for rehabilitation
technology;
``(C) personnel specifically trained to deliver services to
individuals who may benefit from receiving independent living
services;
``(D) personnel specifically trained to deliver services in
the client assistance programs;
``(E) personnel specifically trained to deliver services,
through supported employment programs, to individuals with a
most significant disability;
``(F) personnel providing vocational rehabilitation
services specifically trained in the use of braille, the
importance of braille literacy, and in methods of teaching
braille; and
``(G) personnel trained in performing other functions
necessary to the provision of vocational, medical, social,
and psychological rehabilitation services, and other services
provided under this Act.
``(2) Authority to provide scholarships.--Grants and
contracts under paragraph (1) may be expended for
scholarships and may include necessary stipends and
allowances.
``(3) Related federal statutes.--In carrying out this
subsection, the Commissioner may make grants to and enter
into contracts with States and public or nonprofit agencies
and organizations, including institutions of higher
education, to furnish training regarding related Federal
statutes (other than this Act).
``(4) Training for statewide workforce systems personnel.--
The Commissioner may make grants to and enter into contracts
under this subsection with States and public or nonprofit
agencies and organizations, including institutions of higher
education, to furnish training to personnel providing
services to individuals with disabilities under the Workforce
Investment Partnership Act of 1998. Under this paragraph,
personnel may be trained--
``(A) in evaluative skills to determine whether an
individual with a disability may be served by the State
vocational rehabilitation program or another component of the
statewide workforce investment system; or
``(B) to assist individuals with disabilities seeking
assistance through one-stop customer service centers
established under section 315 of the Workforce Investment
Partnership Act of 1998.
``(5) Joint funding.--Training and other activities
provided under paragraph (4) for personnel may be jointly
funded with the Department of Labor, using funds made
available under title III of the Workforce Investment
Partnership Act of 1998.
``(b) Grants and Contracts for Academic Degrees and
Academic Certificate Granting Training Projects.--
``(1) Authority.--
[[Page S153]]
``(A) In general.--The Commissioner may make grants to, and
enter into contracts with, States and public or nonprofit
agencies and organizations (including institutions of higher
education) to pay part of the costs of academic training
projects to provide training that leads to an academic degree
or academic certificate. In making such grants or entering
into such contracts, the Commissioner shall target funds to
areas determined under subsection (e) to have shortages of
qualified personnel.
``(B) Types of projects.--Academic training projects
described in this subsection may include--
``(i) projects to train personnel in the areas of
vocational rehabilitation counseling, rehabilitation
technology, rehabilitation medicine, rehabilitation nursing,
rehabilitation social work, rehabilitation psychiatry,
rehabilitation psychology, rehabilitation dentistry, physical
therapy, occupational therapy, speech pathology and
audiology, physical education, therapeutic recreation,
community rehabilitation programs, or prosthetics and
orthotics;
``(ii) projects to train personnel to provide--
``(I) services to individuals with specific disabilities or
individuals with disabilities who have specific impediments
to rehabilitation, including individuals who are members of
populations that are unserved or underserved by programs
under this Act;
``(II) job development and job placement services to
individuals with disabilities;
``(III) supported employment services, including services
of employment specialists for individuals with disabilities;
``(IV) specialized services for individuals with
significant disabilities; or
``(V) recreation for individuals with disabilities;
``(iii) projects to train personnel in other fields
contributing to the rehabilitation of individuals with
disabilities; and
``(iv) projects to train personnel in the use,
applications, and benefits of rehabilitation technology.
``(2) Application.--No grant shall be awarded or contract
entered into under this subsection unless the applicant has
submitted to the Commissioner an application at such time, in
such form, in accordance with such procedures, and including
such information as the Secretary may require, including--
``(A) a description of how the designated State unit or
units will participate in the project to be funded under the
grant or contract, including, as appropriate, participation
on advisory committees, as practicum sites, in curriculum
development, and in other ways so as to build closer
relationships between the applicant and the designated State
unit and to encourage students to pursue careers in public
vocational rehabilitation programs;
``(B) the identification of potential employers that would
meet the requirements of paragraph (4)(A)(i); and
``(C) an assurance that data on the employment of graduates
or trainees who participate in the project is accurate.
``(3) Limitation.--
``(A) In general.--Except as provided in subparagraph (B),
no grant or contract under this subsection may be used to
provide any one course of study to an individual for a period
of more than 4 years.
``(B) Exception.--If a grant or contract recipient under
this subsection determines that an individual has a
disability which seriously affects the completion of training
under this subsection, the grant or contract recipient may
extend the period referred to in subparagraph (A).
``(4) Required agreements.--
``(A) In general.--A recipient of a grant or contract under
this subsection shall provide assurances to the Commissioner
that each individual who receives a scholarship, for the
first academic year after the date of enactment of the
Rehabilitation Act Amendments of 1998, utilizing funds
provided under such grant or contract shall enter into an
agreement with the recipient under which the individual
shall--
``(i) maintain employment--
``(I) with an employer that is a State rehabilitation or
other agency or organization (including a professional
corporation or practice group) that provides services to
individuals with disabilities under this Act, or with an
institution of higher education or other organization that
conducts rehabilitation education, training, or research
under this Act;
``(II) on a full- or part-time basis; and
``(III) for a period of not less than the full-time
equivalent of 2 years for each year for which assistance
under this subsection was received by the individual, within
a period, beginning after the recipient completes the
training for which the scholarship was awarded, of not more
than the sum of the number of years in the period described
in this subclause and 2 additional years;
``(ii) directly provide or administer services, conduct
research, or furnish training, funded under this Act; and
``(iii) repay all or part of the amount of any scholarship
received under the grant or contract, plus interest, if the
individual does not fulfill the requirements of clauses (i)
and (ii), except that the Commissioner may by regulation
provide for repayment exceptions and deferrals.
``(B) Enforcement.--The Commissioner shall be responsible
for the enforcement of each agreement entered into under
subparagraph (A) upon the completion of the training involved
with respect to such agreement.
``(c) Grants to Historically Black Colleges and
Universities.--The Commissioner, in carrying out this
section, shall make grants to Historically Black Colleges and
Universities and other institutions of higher education whose
minority student enrollment is at least 50 percent of the
total enrollment of the institution.
``(d) Application.--A grant may not be awarded to a State
or other organization under this section unless the State or
organization has submitted an application to the Commissioner
at such time, in such form, in accordance with such
procedures, and containing such information as the
Commissioner may require, including a detailed description of
strategies that will be utilized to recruit and train
individuals so as to reflect the diverse populations of the
United States as part of the effort to increase the number of
individuals with disabilities, and individuals who are from
linguistically and culturally diverse backgrounds, who are
available to provide rehabilitation services.
``(e) Evaluation and Collection of Data.--The Commissioner
shall evaluate the impact of the training programs conducted
under this section, and collect information on the training
needs of, and data on shortages of qualified personnel
necessary to provide services to individuals with
disabilities.
``(f) Grants for the Training of Interpreters.--
``(1) Authority.--
``(A) In general.--For the purpose of training a sufficient
number of qualified interpreters to meet the communications
needs of individuals who are deaf or hard of hearing, and
individuals who are deaf-blind, the Commissioner, acting
through a Federal office responsible for deafness and
communicative disorders, may award grants to public or
private nonprofit agencies or organizations to pay part of
the costs--
``(i) for the establishment of interpreter training
programs; or
``(ii) to enable such agencies or organizations to provide
financial assistance for ongoing interpreter training
programs.
``(B) Geographic areas.--The Commissioner shall award
grants under this subsection for programs in geographic areas
throughout the United States that the Commissioner considers
appropriate to best carry out the objectives of this section.
``(C) Priority.--In awarding grants under this subsection,
the Commissioner shall give priority to public or private
nonprofit agencies or organizations with existing programs
that have a demonstrated capacity for providing interpreter
training services.
``(D) Funding.--The Commissioner may award grants under
this subsection through the use of--
``(i) amounts appropriated to carry out this section; or
``(ii) pursuant to an agreement with the Director of the
Office of the Special Education Program (established under
section 603 of the Individuals with Disabilities Education
Act (as amended by section 101 of the Individuals with
Disabilities Education Act Amendments of 1997 (Public Law
105-17))), amounts appropriated under section 686 of the
Individuals with Disabilities Education Act.
``(2) Application.--A grant may not be awarded to an agency
or organization under paragraph (1) unless the agency or
organization has submitted an application to the Commissioner
at such time, in such form, in accordance with such
procedures, and containing such information as the
Commissioner may require, including--
``(A) a description of the manner in which an interpreter
training program will be developed and operated during the 5-
year period following the date on which a grant is received
by the applicant under this subsection;
``(B) a demonstration of the applicant's capacity or
potential for providing training for interpreters for
individuals who are deaf or hard of hearing, and individuals
who are deaf-blind;
``(C) assurances that any interpreter trained or retrained
under a program funded under the grant will meet such minimum
standards of competency as the Commissioner may establish for
purposes of this subsection; and
``(D) such other information as the Commissioner may
require.
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for each of the fiscal years 1998
through 2004.
``(h) Provision of Information.--The Commissioner, subject
to the provisions of section 306, may require that recipients
of grants or contracts under this section provide
information, including data, with regard to the impact of
activities funded under this section.
``SEC. 303. SPECIAL DEMONSTRATION PROGRAM.
``(a) Authority.--The Commissioner, subject to the
provisions of section 306, may award grants or contracts to
eligible entities to pay all or part of the cost of programs
that expand and improve the provision of rehabilitation and
other services authorized under this Act or that further the
purposes of the Act, including related research and
evaluation activities.
``(b) Eligible Entities and Terms and Conditions.--
``(1) Eligible entities.--To be eligible to receive a grant
or contract under subsection
[[Page S154]]
(a), an entity shall be a State vocational rehabilitation
agency, community rehabilitation program, Indian tribe or
tribal organization, or other public or nonprofit agency or
organization, or as the Commissioner determines appropriate,
a for-profit organization. The Commissioner may limit
competitions to 1 or more types of organizations described in
this paragraph.
``(2) Terms and conditions.--Awards under this section
shall contain such terms and conditions as the Commissioner
may require.
``(c) Application.--An eligible entity that desires to
receive an award under this section shall submit an
application to the Secretary at such time, in such form, and
containing such information and assurances as the
Commissioner may require, including, if the Commissioner
determines appropriate, a description of how the proposed
project or demonstration program--
``(1) is based on current research findings, which may
include research conducted by the National Institute on
Disability and Rehabilitation Research, the National
Institutes of Health, and other public or private
organizations; and
``(2) is of national significance.
``(d) Types of Projects.--The programs that may be funded
under this section include--
``(1) special projects and demonstrations of service
delivery;
``(2) model demonstration projects;
``(3) technical assistance projects;
``(4) systems change projects;
``(5) special studies and evaluations; and
``(6) dissemination and utilization activities.
``(e) Priority for Competitions.--
``(1) In general.--In announcing competitions for grants
and contracts under this section, the Commissioner shall give
priority consideration to--
``(A) projects to provide training, information, and
technical assistance that will enable individuals with
disabilities and the individuals' representatives, to
participate more effectively in meeting the vocational,
independent living, and rehabilitation needs of the
individuals with disabilities;
``(B) special projects and demonstration programs of
service delivery for adults who are either low-functioning
and deaf or low-functioning and hard of hearing;
``(C) innovative methods of promoting consumer choice in
the rehabilitation process;
``(D) supported employment, including community-based
supported employment programs to meet the needs of
individuals with the most significant disabilities or to
provide technical assistance to States and community
organizations to improve and expand the provision of
supported employment services; and
``(E) model transitional planning services for youths with
disabilities;
``(2) Eligibility and coordination.--
``(A) Eligibility.--Eligible applicants for grants and
contracts under this section for projects described in
paragraph (1)(A) include--
``(i) Parent Training and Information Centers funded under
section 682 of the Individuals with Disabilities Education
Act (as amended by section 101 of the Individuals with
Disabilities Education Act Amendments of 1997 (Public Law
105-17));
``(ii) organizations that meet the definition of a parent
organization in section 682 of such Act; and
``(iii) private nonprofit organizations assisting parent
training and information centers.
``(B) Coordination.--Recipients of grants and contracts
under this section for projects described in paragraph (1)(A)
shall, to the extent practicable, coordinate training and
information activities with Centers for Independent Living.
``(3) Additional competitions.--In announcing competitions
for grants and contracts under this section, the Commissioner
may require that applicants address 1 or more of the
following:
``(A) Age ranges.
``(B) Types of disabilities.
``(C) Types of services.
``(D) Models of service delivery.
``(E) Stage of the rehabilitation process.
``(F) The needs of--
``(i) underserved populations;
``(ii) unserved and underserved areas;
``(iii) individuals with significant disabilities;
``(iv) low-incidence disability populations; and
``(v) individuals residing in federally designated
empowerment zones and enterprise communities.
``(G) Expansion of employment opportunities for individuals
with disabilities.
``(H) Systems change projects to promote meaningful access
of individual with disabilities to employment related
services under the Workforce Investment Partnership Act of
1998 and under other Federal laws.
``(I) Innovative methods of promoting the achievement of
high-quality employment outcomes.
``(J) The demonstration of the effectiveness of early
intervention activities in improving employment outcomes.
``(K) Alternative methods of providing affordable
transportation services to individuals with disabilities who
are employed, seeking employment, or receiving vocational
rehabilitation services from public or private organizations
and who reside in geographic areas in which public
transportation or paratransit service is not available.
``(f) Use of Funds for Continuation Awards.--The
Commissioner may use funds made available to carry out this
section for continuation awards for projects that were funded
under sections 12 and 311 (as such sections were in effect on
the day prior to the date of the enactment of the
Rehabilitation Act Amendments of 1998).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for each of the fiscal years 1998
through 2004.
``SEC. 304. MIGRANT AND SEASONAL FARMWORKERS.
``(a) Grants.--
``(1) Authority.--The Commissioner, subject to the
provisions of section 306, may make grants to eligible
entities to pay up to 90 percent of the cost of projects or
demonstration programs for the provision of vocational
rehabilitation services to individuals with disabilities who
are migrant or seasonal farmworkers, as determined in
accordance with rules prescribed by the Secretary of Labor,
and to the family members who are residing with such
individuals (whether or not such family members are
individuals with disabilities).
``(2) Eligible entities.--To be eligible to receive a grant
under paragraph (1), an entity shall be--
``(A) a State designated agency;
``(B) a nonprofit agency working in collaboration with a
State agency described in subparagraph (A); or
``(C) a local agency working in collaboration with a State
agency described in subparagraph (A).
``(3) Maintenance and transportation.--
``(A) In general.--Amounts provided under a grant under
this section may be used to provide for the maintenance of
and transportation for individuals and family members
described in paragraph (1) as necessary for the
rehabilitation of such individuals.
``(B) Requirement.--Maintenance payments under this
paragraph shall be provided in a manner consistent with any
maintenance payments provided to other individuals with
disabilities in the State under this Act.
``(4) Assurance of cooperation.--To be eligible to receive
a grant under this section an entity shall provide assurances
(satisfactory to the Commissioner) that in the provision of
services under the grant there will be appropriate
cooperation between the grantee and other public or nonprofit
agencies and organizations having special skills and
experience in the provision of services to migrant or
seasonal farmworkers or their families.
``(5) Coordination with other programs.--The Commissioner
shall administer this section in coordination with other
programs serving migrant and seasonal farmworkers, including
programs under title I of the Elementary and Secondary
Education Act of 1965 (20 U.S.C. 6301 et seq.), section 330
of the Public Health Service Act (42 U.S.C. 254b), the
Migrant and Seasonal Agricultural Worker Protection Act (29
U.S.C. 1801 et seq.), and the Workforce Investment
Partnership Act of 1998.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated such sums as may be necessary
to carry out this section, for each of the fiscal years 1998
through 2004.
``SEC. 305. RECREATIONAL PROGRAMS.
``(a) Grants.--
``(1) Authority.--
``(A) In general.--The Commissioner, subject to the
provisions of section 306, shall make grants to States,
public agencies, and nonprofit private organizations to pay
the Federal share of the cost of the establishment and
operation of recreation programs to provide individuals with
disabilities with recreational activities and related
experiences to aid in the employment, mobility,
socialization, independence, and community integration of
such individuals.
``(B) Recreation programs.--The recreation programs that
may be funded using assistance provided under a grant under
this section may include vocational skills development,
leisure education, leisure networking, leisure resource
development, physical education and sports, scouting and
camping, 4-H activities, music, dancing, handicrafts, art,
and homemaking. When possible and appropriate, such programs
and activities should be provided in settings with peers who
are not individuals with disabilities.
``(C) Design of program.--Programs and activities carried
out under this section shall be designed to demonstrate ways
in which such programs assist in maximizing the independence
and integration of individuals with disabilities.
``(2) Maximum term of grant.--A grant under this section
shall be made for a period of not more than 3 years.
``(3) Availability of non grant resources.--
``(A) In general.--A grant may not be made to an applicant
under this section unless the applicant provides assurances
that, with respect to costs of the recreation program to be
carried out under the grant, the applicant, to the maximum
extent practicable, will make available non-Federal resources
(in cash or in-kind) to pay the non-Federal share of such
costs.
``(B) Federal share.--The Federal share of the costs of the
recreation programs carried out under this section shall be--
``(i) with respect to the first year in which assistance is
provided under a grant under this section, 100 percent;
[[Page S155]]
``(ii) with respect to the second year in which assistance
is provided under a grant under this section, 75 percent; and
``(iii) with respect to the third year in which assistance
is provided under a grant under this section, 50 percent.
``(4) Application.--To be eligible to receive a grant under
this section, a State, agency, or organization shall submit
an application to the Commissioner at such time, in such
manner, and containing such information as the Commissioner
may require, including a description of--
``(A) the manner in which the findings and results of the
project to be funded under the grant, particularly
information that facilitates the replication of the results
of such projects, will be made generally available; and
``(B) the manner in which the service program funded under
the grant will be continued after Federal assistance ends.
``(5) Level of services.--Recreation programs funded under
this section shall maintain, at a minimum, the same level of
services over a 3-year project period.
``(6) Reports by grantees.--
``(A) Requirement.--The Commissioner shall require that
each recipient of a grant under this section annually prepare
and submit to the Commissioner a report concerning the
results of the activities funded under the grant.
``(B) Limitation.--The Commissioner may not make financial
assistance available to a grant recipient for a subsequent
year until the Commissioner has received and evaluated the
annual report of the recipient under subparagraph (A) for the
current year.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section, such
sums as may be necessary for each of the fiscal years 1998
through 2004.
``SEC. 306. MEASURING OF PROJECT OUTCOMES AND PERFORMANCE.
``The Commissioner may require that recipients of grants
under this title submit information, including data, as
determined by the Commissioner to be necessary to measure
project outcomes and performance, including any data needed
to comply with the Government Performance and Results Act.''.
SEC. 7. NATIONAL COUNCIL ON DISABILITY.
Title IV of the Rehabilitation Act of 1973 (29 U.S.C. 780
et seq.) is amended to read as follows:
``TITLE IV--NATIONAL COUNCIL ON DISABILITY
``establishment of national council on disability
``Sec. 400. (a)(1)(A) There is established within the
Federal Government a National Council on Disability
(hereinafter in this title referred to as the `National
Council'), which shall be composed of fifteen members
appointed by the President, by and with the advice and
consent of the Senate.
``(B) The President shall select members of the National
Council after soliciting recommendations from representatives
of--
``(i) organizations representing a broad range of
individuals with disabilities; and
``(ii) organizations interested in individuals with
disabilities.
``(C) The members of the National Council shall be
individuals with disabilities, parents or guardians of
individuals with disabilities, or other individuals who have
substantial knowledge or experience relating to disability
policy or programs. The members of the National Council shall
be appointed so as to be representative of individuals with
disabilities, national organizations concerned with
individuals with disabilities, providers and administrators
of services to individuals with disabilities, individuals
engaged in conducting medical or scientific research relating
to individuals with disabilities, business concerns, and
labor organizations. A majority of the members of the
National Council shall be individuals with disabilities. The
members of the National Council shall be broadly
representative of minority and other individuals and groups.
``(2) The purpose of the National Council is to promote
policies, programs, practices, and procedures that--
``(A) guarantee equal opportunity for all individuals with
disabilities, regardless of the nature or severity of the
disability; and
``(B) empower individuals with disabilities to achieve
economic self-sufficiency, independent living, and inclusion
and integration into all aspects of society.
``(b)(1) Each member of the National Council shall serve
for a term of 3 years, except that the terms of service of
the members initially appointed after the date of enactment
of the Rehabilitation, Comprehensive Services, and
Developmental Disabilities Amendments of 1978 shall be (as
specified by the President) for such fewer number of years as
will provide for the expiration of terms on a staggered
basis.
``(2)(A) No member of the National Council may serve more
than two consecutive full terms beginning on the date of
commencement of the first full term on the Council. Members
may serve after the expiration of their terms until their
successors have taken office.
``(B) As used in this paragraph, the term `full term' means
a term of 3 years.
``(3) Any member appointed to fill a vacancy occurring
before the expiration of the term for which such member's
predecessor was appointed shall be appointed only for the
remainder of such term.
``(c) The President shall designate the Chairperson from
among the members appointed to the National Council. The
National Council shall meet at the call of the Chairperson,
but not less often than four times each year.
``(d) Eight members of the National Council shall
constitute a quorum and any vacancy in the National Council
shall not affect its power to function.
``duties of national council
``Sec. 401. (a) The National Council shall--
``(1) provide advice to the Director with respect to the
policies and conduct of the National Institute on Disability
and Rehabilitation Research, including ways to improve
research concerning individuals with disabilities and the
methods of collecting and disseminating findings of such
research;
``(2) provide advice to the Commissioner with respect to
the policies of and conduct of the Rehabilitation Services
Administration;
``(3) advise the President, the Congress, the Commissioner,
the appropriate Assistant Secretary of the Department of
Education, and the Director of the National Institute on
Disability and Rehabilitation Research on the development of
the programs to be carried out under this Act;
``(4) provide advice regarding priorities for the
activities of the Interagency Disability Coordinating Council
and review the recommendations of such Council for
legislative and administrative changes to ensure that such
recommendations are consistent with the purposes of the
Council to promote the full integration, independence, and
productivity of individuals with disabilities;
``(5) review and evaluate on a continuing basis--
``(A) policies, programs, practices, and procedures
concerning individuals with disabilities conducted or
assisted by Federal departments and agencies, including
programs established or assisted under this Act or under the
Developmental Disabilities Assistance and Bill of Rights Act;
and
``(B) all statutes and regulations pertaining to Federal
programs which assist such individuals with disabilities;
in order to assess the effectiveness of such policies,
programs, practices, procedures, statutes, and regulations in
meeting the needs of individuals with disabilities;
``(6) assess the extent to which such policies, programs,
practices, and procedures facilitate or impede the promotion
of the policies set forth in subparagraphs (A) and (B) of
section 400(a)(2);
``(7) gather information about the implementation,
effectiveness, and impact of the Americans with Disabilities
Act of 1990 (42 U.S.C. 12101 et seq.);
``(8) make recommendations to the President, the Congress,
the Secretary, the Director of the National Institute on
Disability and Rehabilitation Research, and other officials
of Federal agencies or other Federal entities, respecting
ways to better promote the policies set forth in section
400(a)(2);
``(9) provide to the Congress on a continuing basis advice,
recommendations, legislative proposals, and any additional
information which the National Council or the Congress deems
appropriate; and
``(10) review and evaluate on a continuing basis new and
emerging disability policy issues affecting individuals with
disabilities at the international, Federal, State, and local
levels, and in the private sector, including the need for and
coordination of adult services, access to personal assistance
services, school reform efforts and the impact of such
efforts on individuals with disabilities, access to health
care, and policies that operate as disincentives for the
individuals to seek and retain employment.
``(b)(1) Not later than July 26, 1998, and annually
thereafter, the National Council shall prepare and submit to
the President and the appropriate committees of the Congress
a report entitled `National Disability Policy: A Progress
Report'.
``(2) The report shall assess the status of the Nation in
achieving the policies set forth in section 400(a)(2), with
particular focus on the new and emerging issues impacting on
the lives of individuals with disabilities. The report shall
present, as appropriate, available data on health, housing,
employment, insurance, transportation, recreation, training,
prevention, early intervention, and education. The report
shall include recommendations for policy change.
``(3) In determining the issues to focus on and the
findings, conclusions, and recommendations to include in the
report, the National Council shall seek input from the
public, particularly individuals with disabilities,
representatives of organizations representing a broad range
of individuals with disabilities, and organizations and
agencies interested in individuals with disabilities.
``compensation of national council members
``Sec. 402. (a) Members of the National Council shall be
entitled to receive compensation at a rate equal to the rate
of pay for level 4 of the Senior Executive Service Schedule
under section 5382 of title 5, United States Code, including
travel time, for each day they are engaged in the performance
of their duties as members of the National Council.
``(b) Members of the National Council who are full-time
officers or employees of the United States shall receive no
additional pay on account of their service on the National
Council except for compensation for travel expenses as
provided under subsection (c) of this section.
``(c) While away from their homes or regular places of
business in the performance of
[[Page S156]]
services for the National Council, members of the National
Council shall be allowed travel expenses, including per diem
in lieu of subsistence, in the same manner as persons
employed intermittently in the Government service are allowed
expenses under section 5703 of title 5, United States Code.
``staff of national council
``Sec. 403. (a)(1) The Chairperson of the National Council
may appoint and remove, without regard to the provisions of
title 5, United States Code, governing appointments, the
provisions of chapter 75 of such title (relating to adverse
actions), the provisions of chapter 77 of such title
(relating to appeals), or the provisions of chapter 51 and
subchapter III of chapter 53 of such title (relating to
classification and General Schedule pay rates), an Executive
Director to assist the National Council to carry out its
duties. The Executive Director shall be appointed from among
individuals who are experienced in the planning or operation
of programs for individuals with disabilities.
``(2) The Executive Director is authorized to hire
technical and professional employees to assist the National
Council to carry out its duties.
``(b)(1) The National Council may procure temporary and
intermittent services to the same extent as is authorized by
section 3109(b) of title 5, United States Code (but at rates
for individuals not to exceed the daily equivalent of the
rate of pay for level 4 of the Senior Executive Service
Schedule under section 5382 of title 5, United States Code).
``(2) The National Council may--
``(A) accept voluntary and uncompensated services,
notwithstanding the provisions of section 1342 of title 31,
United States Code;
``(B) in the name of the Council, solicit, accept, employ,
and dispose of, in furtherance of this Act, any money or
property, real or personal, or mixed, tangible or
nontangible, received by gift, devise, bequest, or otherwise;
and
``(C) enter into contracts and cooperative agreements with
Federal and State agencies, private firms, institutions, and
individuals for the conduct of research and surveys,
preparation of reports and other activities necessary to the
discharge of the Council's duties and responsibilities.
``(3) Not more than 10 per centum of the total amounts
available to the National Council in each fiscal year may be
used for official representation and reception.
``(c) The Administrator of General Services shall provide
to the National Council on a reimbursable basis such
administrative support services as the Council may request.
``(d)(1) It shall be the duty of the Secretary of the
Treasury to invest such portion of the amounts made available
under subsection (a)(2)(B) as is not, in the Secretary's
judgment, required to meet current withdrawals. Such
investments may be made only in interest-bearing obligations
of the United States or in obligations guaranteed as to both
principal and interest by the United States.
``(2) The amounts described in paragraph (1), and the
interest on, and the proceeds from the sale or redemption of,
the obligations described in paragraph (1) shall be available
to the National Council to carry out this title.
``administrative powers of national council
``Sec. 404. (a) The National Council may prescribe such
bylaws and rules as may be necessary to carry out its duties
under this title.
``(b) The National Council may hold such hearings, sit and
act at such times and places, take such testimony, and
receive such evidence as it deems advisable.
``(c) The National Council may appoint advisory committees
to assist the National Council in carrying out its duties.
The members thereof shall serve without compensation.
``(d) The National Council may use the United States mails
in the same manner and upon the same conditions as other
departments and agencies of the United States.
``(e) The National Council may use, with the consent of the
agencies represented on the Interagency Disability
Coordinating Council, and as authorized in title V, such
services, personnel, information, and facilities as may be
needed to carry out its duties under this title, with or
without reimbursement to such agencies.
``authorization of appropriations
``Sec. 405. There are authorized to be appropriated to
carry out this title such sums as may be necessary for each
of the fiscal years 1998 through 2004.''.
SEC. 8. RIGHTS AND ADVOCACY.
(a) Conforming Amendments to Rights and Advocacy
Provisions.--
(1) Employment.--Section 501 (29 U.S.C. 791) is amended--
(A) in the third sentence of subsection (a), by striking
``President's Committees on Employment of the Handicapped''
and inserting ``President's Committees on Employment of
People With Disabilities''; and
(B) in subsection (e), by striking ``individualized written
rehabilitation program'' and inserting ``individualized
rehabilitation employment plan''.
(2) Access board.--Section 502 (29 U.S.C. 792) is amended--
(A) in subsection (b)--
(i) in paragraph (9), by striking ``; and'' and inserting a
semicolon;
(ii) in paragraph (10), by striking the period and
inserting ``; and''; and
(iii) by adding at the end the following:
``(11) carry out the responsibilities specified for the
Access Board in section 508'';
(B) in subsection (d)(2)(A), by inserting before the
semicolon the following: ``and section 508(d)(2)(C)'';
(C) in subsection (g)(2), by striking ``Committee on
Education and Labor'' and inserting ``Committee on Education
and the Workforce''; and
(D) in subsection (i), by striking ``fiscal years 1993
through 1997'' and inserting ``fiscal years 1998 through
2004''.
(3) Federal grants and contracts.--Section 504(a) (29
U.S.C. ) is amended in the first sentence by striking
``section 7(8)'' and inserting ``section 7(20)''.
(4) Secretarial responsibilities.--Section 506(a) (29
U.S.C. 794b(a)) is amended--
(A) by striking the second sentence and inserting the
following: ``Any concurrence of the Access Board under
paragraph (2) shall reflect its consideration of cost studies
carried out by States.''; and
(B) in the second sentence of subsection (c), by striking
``provided under this paragraph'' and inserting ``provided
under this subsection''.
(b) Electronic and Information Technology Regulations.--
Section 508 (29 U.S.C. 794d) is amended to read as follows:
``SEC. 508. ELECTRONIC AND INFORMATION TECHNOLOGY
REGULATIONS.
``(a) Definition.--In this section, the term `electronic
and information technology' includes--
``(1) any equipment, software, interface system, operating
system, or interconnected system or subsystem of equipment,
whether or not accessed remotely, that is used in the
acquisition, storage, manipulation, management, movement,
control, display, switching, interchange, transmission, or
reception of data or information; and
``(2) any related service (including a support service) and
any related resource.
``(b) Promulgation of Rules and Regulations.--
``(1) Procurement, maintenance, and use of electronic and
information technology.--Consistent with paragraph (2), each
Federal agency shall procure, maintain, and use electronic
and information technology that allows, regardless of the
type of medium of the technology, individuals with
disabilities to produce information and data, and have access
to information and data, comparable to the information and
data, and access, respectively, of individuals who are not
individuals with disabilities.
``(2) Regulations.--
``(A) In general.--Not later than 1 year after the date of
enactment of the Rehabilitation Act Amendments of 1998, the
Access Board, after consultation with the Secretary of
Education, the Administrator of the General Services
Administration, and the head of any other Federal agency that
the Access Board may determine to be appropriate, and after
consultation with the electronic and information technology
industry and appropriate public or nonprofit agencies or
organizations, shall issue regulations, including criteria
for procurement of accessible electronic and information
technology, to implement this section.
``(B) Criteria.--The Access Board shall consult with the
Director of the National Institute on Disability and
Rehabilitation Research and the heads of other Federal
agencies that conduct applicable research, regarding relevant
research findings to assist the Access Board in developing
and updating the criteria for procurement of accessible
technology required under subparagraph (A).
``(C) Reviews and amendments.--The Access Board shall
review and amend the regulations periodically to reflect
technological advances or changes in electronic and
information technology.
``(c) Technical Assistance.--The Access Board shall provide
technical assistance to individuals and Federal agencies
concerning the rights and responsibilities provided under
this section. The Administrator of the General Services
Administration shall provide technical assistance to Federal
agencies concerning the rights and responsibilities provided
under this section, in coordination with the activities of
the Access Board.
``(d) Compliance.--
``(1) In general.--Not later than 1 year after the date of
enactment of the Rehabilitation Act Amendments of 1998, the
Access Board shall establish, by regulation issued under
subsection (b), procedures for ensuring the compliance of
Federal agencies with this section (including the
regulation).
``(2) Procedures.--At a minimum the regulation shall
establish procedures by which--
``(A) the head of each Federal agency shall assess the
compliance of the agency with this section and report
periodically to the Access Board and the Director of the
Office of Management and Budget on such compliance;
``(B) any aggrieved person may file a complaint with the
Access Board regarding noncompliance by a Federal agency with
this section; and
``(C) the Access Board may, after providing notice and an
opportunity for a hearing, issue an order requiring
compliance with this section, which shall be final and
binding on the affected Federal agency.
``(3) Office of management and budget oversight.--
``(A) Oversight and coordination.--The Director of the
Office of Management and Budget shall oversee and coordinate
the procurement, financial management, information, and
regulatory policies of the executive
[[Page S157]]
branch of the Federal Government relating to electronic and
information technology.
``(B) Issuance of policies.--In issuing circulars,
bulletins, directives, memoranda, and other policies
affecting the procurement, maintenance, and use of electronic
and information technology, by Federal agencies, as
appropriate, the Director of the Office of Management and
Budget shall require compliance with this section, including
the regulations and criteria described in subsection (b).
``(e) Relationship to Other Laws.--This section shall not
be construed to limit a remedy, right, or procedure available
under any other provision of Federal law (including title V
and the Americans with Disabilities Act of 1990), or State or
local law (including State common law) that provides greater
or equal protection for the rights of individuals with
disabilities.''.
(c) Protection and Advocacy of Individual Rights.--Section
509 (29 U.S.C. 794e) is amended to read as follows:
``SEC. 509. PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS.
``(a) Purpose.--The purpose of this section is to support a
system in each State to protect the legal and human rights of
individuals with disabilities who--
``(1) need services that are beyond the scope of services
authorized to be provided by the client assistance program
under section 112; and
``(2) are ineligible for protection and advocacy programs
under part C of the Developmental Disabilities Assistance and
Bill of Rights Act (42 U.S.C. 6041 et seq.) because the
individuals do not have a developmental disability, as
defined in section 102 of such Act (42 U.S.C. 6002) and the
Protection and Advocacy for Mentally Ill Individuals Act of
1986 (42 U.S.C. 10801 et seq.) because the individuals are
not individuals with mental illness, as defined in section
102 of such Act (42 U.S.C. 10802).
``(b) Appropriations Less Than $5,500,000.--For any fiscal
year in which the amount appropriated to carry out this
section is less than $5,500,000, the Commissioner may make
grants from such amount to eligible systems within States to
plan for, develop outreach strategies for, and carry out
protection and advocacy programs authorized under this
section for individuals with disabilities who meet the
requirements of paragraphs (1) and (2) of subsection (a).
``(c) Appropriations of $5,500,000 or More.--
``(1) Reservations.--
``(A) Technical assistance.--For any fiscal year in which
the amount appropriated to carry out this section equals or
exceeds $5,500,000, the Commissioner shall set aside not less
than 1.8 percent and not more than 2.2 percent of the amount
to provide training and technical assistance to the systems
established under this section.
``(B) Grant for the eligible system serving the american
indian consortium.--For any fiscal year in which the amount
appropriated to carry out this section equals or exceeds
$10,500,000, the Commissioner shall reserve a portion, and
use the portion to make a grant for the eligible system
serving the American Indian consortium. The Commission shall
make the grant in an amount of not less than $50,000 for the
fiscal year.
``(2) Allotments.--For any such fiscal year, after the
reservations required by paragraph (1) have been made, the
Commissioner shall make allotments from the remainder of such
amount in accordance with paragraph (3) to eligible systems
within States to enable such systems to carry out protection
and advocacy programs authorized under this section for such
individuals.
``(3) Systems within states.--
``(A) Population basis.--Except as provided in subparagraph
(B), from such remainder for each such fiscal year, the
Commissioner shall make an allotment to the eligible system
within a State of an amount bearing the same ratio to such
remainder as the population of the State bears to the
population of all States.
``(B) Minimums.--Subject to the availability of
appropriations to carry out this section, and except as
provided in paragraph (4), the allotment to any system under
subparagraph (A) shall be not less than $100,000 or one-third
of one percent of the remainder for the fiscal year for which
the allotment is made, whichever is greater, and the
allotment to any system under this section for any fiscal
year that is less than $100,000 or one-third of one percent
of such remainder shall be increased to the greater of the
two amounts.
``(4) Systems within other jurisdictions.--
``(A) In general.--For the purposes of paragraph (3)(B),
Guam, American Samoa, the United States Virgin Islands, and
the Commonwealth of the Northern Mariana Islands shall not be
considered to be States.
``(B) Allotment.--The eligible system within a jurisdiction
described in subparagraph (A) shall be allotted under
paragraph (3)(A) not less than $50,000 for the fiscal year
for which the allotment is made.
``(5) Adjustment for inflation.--For any fiscal year,
beginning in fiscal year 1999, in which the total amount
appropriated to carry out this section exceeds the total
amount appropriated to carry out this section for the
preceding fiscal year, the Commissioner shall increase each
of the minimum grants or allotments under paragraphs (1)(B),
(3)(B), and (4)(B) by a percentage that shall not exceed the
percentage increase in the total amount appropriated to carry
out this section between the preceding fiscal year and the
fiscal year involved.
``(d) Proportional Reduction.--To provide minimum
allotments to systems within States (as increased under
subsection (c)(5)) under subsection (c)(3)(B), or to provide
minimum allotments to systems within States (as increased
under subsection (c)(5)) under subsection (c)(4)(B), the
Commissioner shall proportionately reduce the allotments of
the remaining systems within States under subsection (c)(3),
with such adjustments as may be necessary to prevent the
allotment of any such remaining system within a State from
being reduced to less than the minimum allotment for a system
within a State (as increased under subsection (c)(5)) under
subsection (c)(3)(B), or the minimum allotment for a State
(as increased under subsection (c)(5)) under subsection
(c)(4)(B), as appropriate.
``(e) Reallotment.--Whenever the Commissioner determines
that any amount of an allotment to a system within a State
for any fiscal year described in subsection (c)(1) will not
be expended by such system in carrying out the provisions of
this section, the Commissioner shall make such amount
available for carrying out the provisions of this section to
one or more of the systems that the Commissioner determines
will be able to use additional amounts during such year for
carrying out such provisions. Any amount made available to a
system for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an
increase in the allotment of the system (as determined under
the preceding provisions of this section) for such year.
``(f) Application.--In order to receive assistance under
this section, an eligible system shall submit an application
to the Commissioner, at such time, in such form and manner,
and containing such information and assurances as the
Commissioner determines necessary to meet the requirements of
this section, including assurances that the eligible system
will--
``(1) have in effect a system to protect and advocate the
rights of individuals with disabilities;
``(2) have the same general authorities, including access
to records and program income, as are set forth in part C of
the Developmental Disabilities Assistance and Bill of Rights
Act (42 U.S.C. 6041 et seq.);
``(3) have the authority to pursue legal, administrative,
and other appropriate remedies or approaches to ensure the
protection of, and advocacy for, the rights of such
individuals within the State or the American Indian
consortium who are individuals described in subsection (a);
``(4) provide information on and make referrals to programs
and services addressing the needs of individuals with
disabilities in the State or the American Indian consortium;
``(5) develop a statement of objectives and priorities on
an annual basis, and provide to the public, including
individuals with disabilities and, as appropriate, the
individuals' representatives, an opportunity to comment on
the objectives and priorities established by, and activities
of, the system including--
``(A) the objectives and priorities for the activities of
the system for each year and the rationale for the
establishment of such objectives and priorities; and
``(B) the coordination of programs provided through the
system under this section with the advocacy programs of the
client assistance program under section 112, the State long-
term care ombudsman program established under the Older
Americans Act of 1965 (42 U.S.C. 3001 et seq.), the
Developmental Disabilities Assistance and Bill of Rights Act
(42 U.S.C. 6000 et seq.), and the Protection and Advocacy for
Mentally Ill Individuals Act of 1986 (42 U.S.C. 10801 et
seq.);
``(6) establish a grievance procedure for clients or
prospective clients of the system to ensure that individuals
with disabilities are afforded equal opportunity to access
the services of the system;
``(7) provide assurances to the Commissioner that funds
made available under this section will be used to supplement
and not supplant the non-Federal funds that would otherwise
be made available for the purpose for which Federal funds are
provided; and
``(8) not use allotments or grants provided under this
section in a manner inconsistent with section 5 of the
Assisted Suicide Funding Restriction Act of 1997.
``(g) Carryover and Direct Payment.--
``(1) Direct payment.--Notwithstanding any other provision
of law, the Commissioner shall pay directly to any system
that complies with the provisions of this section, the amount
of the allotment of the State or the grant for the eligible
system that serves the American Indian consortium involved
under this section, unless the State or American Indian
consortium provides otherwise.
``(2) Carryover.--Any amount paid to an eligible system
that serves a State or American Indian consortium for a
fiscal year that remains unobligated at the end of such year
shall remain available to such system that serves the State
or American Indian consortium for obligation during the next
fiscal year for the purposes for which such amount was paid.
``(h) Limitation on Disclosure Requirements.--For purposes
of any audit, report, or evaluation of the performance of the
program established under this section, the Commissioner
shall not require such a program to disclose the identity of,
or any other personally identifiable information related
[[Page S158]]
to, any individual requesting assistance under such program.
``(i) Administrative Cost.--In any State in which an
eligible system is located within a State agency, a State may
use a portion of any allotment under subsection (c) for the
cost of the administration of the system required by this
section. Such portion may not exceed 5 percent of the
allotment.
``(j) Delegation.--The Commissioner may delegate the
administration of this program to the Commissioner of the
Administration on Developmental Disabilities within the
Department of Health and Human Services.
``(k) Report.--The Commissioner shall annually prepare and
submit to the Committee on Education and the Workforce of the
House of Representatives and the Committee on Labor and Human
Resources of the Senate a report describing the types of
services and activities being undertaken by programs funded
under this section, the total number of individuals served
under this section, the types of disabilities represented by
such individuals, and the types of issues being addressed on
behalf of such individuals.
``(l) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section such
sums as may be necessary for each of the fiscal years 1998
through 2004.
``(m) Definitions.--As used in this section:
``(1) Eligible system.--The term `eligible system' means a
protection and advocacy system that is established under part
C of the Developmental Disabilities Assistance and Bill of
Rights Act (42 U.S.C. 6041 et seq.) and that meets the
requirements of subsection (f).
``(2) American Indian consortium.--The term `American
Indian consortium' means a consortium established as
described in section 142 of the Developmental Disabilities
Assistance and Bill of Rights Act (42 U.S.C. 6042).''.
SEC. 9. EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH
DISABILITIES.
Title VI of the Rehabilitation Act of 1973 (29 U.S.C. 795
et seq.) is amended to read as follows:
``TITLE VI--EMPLOYMENT OPPORTUNITIES FOR INDIVIDUALS WITH DISABILITIES
``SEC. 601. SHORT TITLE.
``This title may be cited as the ``Employment Opportunities
for Individuals With Disabilities Act.
``PART A--PROJECTS IN TELECOMMUTING AND SELF-EMPLOYMENT FOR INDIVIDUALS
WITH DISABILITIES
``SEC. 611. FINDINGS, POLICIES, AND PURPOSES.
``(a) Findings.--Congress makes the following findings:
``(1) It is in the best interest of the United States to
identify and promote increased employment opportunities for
individuals with disabilities.
``(2) Telecommuting is one of the most rapidly expanding
forms of employment. In 1990 there were 4,000,000
telecommuters and that number has risen to 11,100,000 in
1997.
``(3) It is in the best interest of the United States to
ensure that individuals with disabilities have access to
telecommuting employment opportunities. It has been estimated
that 10 percent of individuals with disabilities, who are
unemployed, could benefit from telecommuting opportunities.
``(4) It is in the interest of employers to recognize that
individuals with disabilities are excellent candidates for
telecommuting employment opportunities.
``(5) Individuals with disabilities, especially those
living in rural areas, often do not have access to accessible
transportation, and in such cases telecommuting presents an
excellent opportunity for the employment of such individuals.
``(6) It is in the best interests of economic development
agencies, venture capitalists, and financial institutions for
the Federal Government to demonstrate that individuals with
disabilities, who wish to become or who are self-employed,
can meet the criteria for assistance, investment of capital,
and business that other entrepreneurs meet.
``(b) Policies.--It is the policy of the United States to--
``(1) promote opportunities for individuals with
disabilities to--
``(A) secure, retain, regain, or advance in employment
involving telecommuting;
``(B) gain access to employment opportunities; and
``(C) demonstrate their abilities, capabilities, interests,
and preferences regarding employment in positions that are
increasingly being offered to individuals in the workplace;
and
``(2) promote opportunities for individuals with
disabilities to engage in self-employment enterprises that
permit these individuals to achieve significant levels of
independence, participate in and contribute to the life of
their communities, and offer employment opportunities to
others.
``(c) Purposes.--It is the purpose of this part to--
``(1) through the awarding of 1-time, time-limited grants,
contracts, or cooperative agreements to public and private
entities--
``(A) provide funds, in accordance with section 612, to
enable individuals with disabilities to identify and secure
employment opportunities involving telecommuting; and
``(B) encourage employers to become partners in providing
telecommuting placements for individuals with disabilities
through the involvement of such employers in telecommuting
projects that continue and expand opportunities for the
provision of telecommuting placements to individuals with
disabilities beyond those opportunities that are currently
facilitated by the telecommuting projects; and
``(2) through the awarding of 1-time, time-limited grants,
contracts, cooperative agreements, or other appropriate
mechanisms of providing assistance to public or private
entities--
``(A) assist individuals with disabilities to engage in
self-employment enterprises in accordance with section 613;
and
``(B) encourage entities to assist more individuals with
disabilities to engage in self-employment enterprises.
``SEC. 612. PROJECTS IN TELECOMMUTING FOR INDIVIDUALS WITH
DISABILITIES.
``(a) In General.--The Commissioner shall, on a competitive
basis, award 1-time, time-limited grants, contracts, or
cooperative agreements to eligible entities for the
establishment and operation of projects in telecommuting for
individuals with disabilities.
``(b) Eligible Entities.--To be eligible to receive a
grant, contract, or cooperative agreement under subsection
(a) an entity shall--
``(1) be--
``(A) an entity carrying out a Project With Industry
described in part B;
``(B) a designated State agency;
``(C) a statewide workforce investment partnership or local
workforce investment partnership;
``(D) a public educational agency;
``(E) a training institution, which may include an
institution of higher education;
``(F) a private organization, with priority given to
organizations of or for individuals with disabilities;
``(G) a public or private employer;
``(H) any other entity that the Commissioner determines to
be appropriate; or
``(I) a combination or consortium of the entities described
in subparagraphs (A) through (H);
``(2) have 3 or more years of experience in assisting
individuals with disabilities in securing, retaining,
regaining, or advancing in employment;
``(3) demonstrate that such entity has the capacity to
secure full- and part-time employment involving telecommuting
for individuals with disabilities; and
``(4) submit an application that meets the requirements of
subsection (c).
``(c) Application Requirements.--To be eligible to receive
a grant, contract, or cooperative agreement under subsection
(a), an entity shall submit to the Commissioner at such time,
in such manner, and containing such information concerning
the telecommuting project to be funded under the grant,
contract, or agreement as the Commissioner may require,
including--
``(1) a description of how and the extent to which the
applicant meets the requirement of subsection (b)(2);
``(2) with respect to any partners who will participate in
the implementation of activities under the telecommuting
project, a description of--
``(A) the identity of such partners; and
``(B) the roles and responsibilities of each partner in
preparing the application, and if funded, the roles and
responsibility of each partner during the telecommuting
project;
``(3) a description of the geographic region that will be
the focus of activity under the telecommuting project;
``(4) a projection for each year of a 3-year period of the
grant, contract, or agreement, of the number of individuals
with disabilities who will be employed as the result of the
assistance provided by the telecommuting project;
``(5) with respect to any employers that have indicated an
interest in offering telecommuting employment opportunities
to individuals with disabilities, a description of--
``(A) the identity of such employers; and
``(B) the manner in which additional employers would be
recruited under the telecommuting project;
``(6) a description of the manner in which individuals with
disabilities will be identified and selected to participate
in the telecommuting project;
``(7) a description of the jobs that will be targeted by
the telecommuting project;
``(8) a description of the process by which individuals
with disabilities will be matched with employers for
telecommuting placements;
``(9) a description of the manner in which the project will
become self-sustaining in the third year of the telecommuting
project; and
``(10) a description of the nature and amount of funding,
including in-kind support, other than funds received under
this part, that will be available to be used by the
telecommuting project.
``(d) Use of Funds.--Amounts received under a grant,
contract, or cooperative agreement under subsection (a) shall
be used for--
``(1) the recruitment of individuals with disabilities for
telecommuting placements;
``(2) the conduct of marketing activities with respect to
employers;
``(3) the purchase of training services for an individual
with a disability who is going to assume a telecommuting
placement;
``(4) the purchase of equipment, materials, telephone
lines, auxiliary aids, and services related to telecommuting
placements;
``(5) the provision of orientation services and training to
the supervisors of employers participating in the project and
to co-workers of individuals with disabilities who are
selected for telecommuting placements;
[[Page S159]]
``(6) the provision of technical assistance to employers,
including technical assistance regarding reasonable
accommodations with regard to individuals with disabilities
participating in telecommuting placements; and
``(7) other uses determined appropriate by the
Commissioner.
``(e) Project Requirements.--Telecommuting projects funded
under this section shall--
``(1) establish criteria for safety with regard to the
telecommuting work space, which at a minimum meet guidelines
established by the Occupational Safety and Health
Administration for a work space of comparable size and
function;
``(2) on an annual basis, enter into agreements with the
Commissioner that contain goals concerning the number of
individuals with disabilities that the project will place in
telecommuting positions;
``(3) establish procedures for ensuring that prospective
employers and individuals with disabilities, who are to
assume telecommuting placements, have a clear understanding
of how the individual's work performance will be monitored
and evaluated by the employer;
``(4) identify and make available support services for
individuals with disabilities in telecommuting placements;
``(5) develop procedures that allow the telecommuting
project, the employer, and the individual with a disability
to reach agreement on their respective responsibilities with
regard to establishing and maintaining the telecommuting
placement;
``(6) for each year of a telecommuting project, submit an
annual report to the Commissioner concerning--
``(A) the number of individuals with disabilities placed in
telecommuting positions and whether the goal described in the
agreement entered into paragraph (2) was met;
``(B) the number of individuals with disabilities employed
as salaried employees and their annual salaries;
``(C) the number of individuals with disabilities employed
as independent contractors and their annual incomes;
``(D) the number of individuals with disabilities that
received benefits from their employers;
``(E) the number of individuals with disabilities in
telecommuting placements still working after--
``(i) 6 months; and
``(ii) 12 months; and
``(F) any reports filed with the Occupational Safety and
Health Administration.
``(f) Limitations.--
``(1) Period of award.--A grant, contract, or cooperative
agreement under subsection (a) shall be for a 3-year period.
``(2) Amount.--The amount of a grant, contract, or
cooperative agreement under subsection (a) shall not be less
than $250,000 nor more than $1,000,000.
``SEC. 613. PROJECTS IN SELF-EMPLOYMENT FOR INDIVIDUALS WITH
DISABILITIES.
``(a) In General.--The Commissioner shall, on a competitive
basis, award 1-time, time-limited grants, contracts, or
cooperative agreements to eligible entities for the
establishment and operation of projects in self-employment
for individuals with disabilities.
``(b) Eligible Entities.--To be eligible to receive a
grant, contract, or cooperative agreement under subsection
(a) an entity shall--
``(1) be--
``(A) a financial institution;
``(B) an economic development agency;
``(C) a venture capitalist;
``(D) an entity carrying out a Project With Industry
described in part B;
``(E) a designated State agency, or other public entity;
``(F) a private organization, including employers and
organizations related to individuals with disabilities;
``(G) any other entity that the Commissioner determines to
be appropriate; or
``(H) a combination or consortium of the entities described
in subparagraphs (A) through (G);
``(2) demonstrate that such entity has the capacity to
assist clients, including clients with disabilities, to
successfully engage in self-employment enterprises; and
``(3) submit an application that meets the requirements of
subsection (c).
``(c) Application Requirements.--To be eligible to receive
a grant, contract, or cooperative agreement under subsection
(a), an entity shall submit to the Commissioner at such time,
in such manner, and containing such information concerning
the self-employment project to be funded under the grant,
contract, or agreement as the Commissioner may require,
including--
``(1) a description of how and the extent to which the
applicant has assisted individuals, including individuals
with disabilities, if appropriate, to successfully engage in
self-employment enterprises;
``(2) with respect to any partners who will participate in
the implementation of activities under the self-employment
project, a description of--
``(A) the identity of such partners; and
``(B) the roles and responsibilities of each partner in
preparing the application, and if funded, the roles and
responsibility of each partner during the self-employment
project;
``(3) a description of the geographic region that will be
the focus of activity in the self-employment project;
``(4) a projection for each year of a 3-year period of the
grant, contract, or agreement, of the number of clients who
will be assisted to engage in self-employment enterprises
through the self-employment project;
``(5) a description of the manner in which potential
clients will be identified and selected to be assisted by the
self-employment project;
``(6) a description of the manner in which self-employment
enterprises (or market niches) will be identified for the
geographic areas to be targeted in the self-employment
project;
``(7) a description of the process by which prospective
clients will be matched with self-employment opportunities;
``(8) a description of the manner in which the project will
become self-sustaining in the third year of the self-
employment project; and
``(9) a description of the nature and amount of funding,
including in-kind support, other than funds received under
this part, that will be available to be used during the self-
employment project.
``(d) Use of Funds.--Amounts received under a grant,
contract, or cooperative agreement under subsection (a) shall
be used--
``(1) for the preparation of marketing analyses to identify
self-employment opportunities;
``(2) for the conduct of marketing activities with respect
to financial institutions or venture capitalists concerning
the benefits of investing in individuals with disabilities
who are engaged in self-employment enterprises;
``(3) for the conduct of marketing activities with respect
to potential clients who engage in or might engage in self-
employment enterprises;
``(4) for the provision of training for clients to be
assisted through the project who seek to engage or are
engaging in self-employment enterprises;
``(5) to cover the costs of business expenses specifically
related to an individual's disability;
``(6) to provide assistance for clients in developing
business plans for capital investment;
``(7) to provide assistance for clients in securing capital
to engage in a self-employment enterprise;
``(8) to provide technical assistance to clients engaged in
self-employment enterprises who seek such assistance in order
to sustain or expand their enterprises; and
``(9) for other uses as determined appropriate by the
Commissioner.
``(e) Project Requirements.--Self-employment projects
funded under this section shall--
``(1) establish criteria for and apply such criteria in
selecting clients to be assisted through the project;
``(2) on an annual basis, enter into agreements with the
Commissioner that contain goals concerning the number of
individuals with disabilities that the project will assist in
starting and sustaining self-employment enterprises;
``(3) establish and apply criteria to determine whether an
enterprise is a viable option in which to invest project
funds;
``(4) establish and apply criteria to determine when and if
the project would provide assistance in sustaining an ongoing
enterprise engaged in by a client or potential client;
``(5) establish and apply criteria to determine when and if
the project would provide assistance in expanding an ongoing
enterprise engaged in by a client or potential client;
``(6) establish and apply procedures to ensure that a
potential client has a clear understanding of the scope and
limits of assistance from the project that will be applicable
in such client's case;
``(7) develop procedures, which include a written
agreement, that provides for the documentation of the
respective responsibilities of the self-employment project
and any client with regard to the creation, maintenance, or
expansion of the client's self-employment enterprise; and
``(8) with respect to the project, submit a report to the
Commissioner--
``(A) for each project year, concerning the number of
clients assisted by the project who are engaging in self-
employment enterprises and whether the goal described in the
agreement entered into under paragraph (2) was met; and
``(B) the number of clients assisted by the project who are
still engaged in such an enterprise on the date that is--
``(i) 6 months after the date on which assistance provided
by the project was terminated; and
``(ii) 12 months after the date of which assistance
provided by the project was terminated.
``(f) Duration of Awards.--A grant, contract, or
cooperative agreement under subsection (a) shall be for a 3-
year period.
``(g) Definition.--For the purpose of this section, the
term `client' means 1 or more individuals with disabilities
who engage in or seek to engage in a self-employment
enterprise.
``SEC. 614. DISCRETIONARY AUTHORITY FOR DUAL-PURPOSE
APPLICATIONS.
``(a) In General.--The Commissioner may establish
procedures to permit applicants for grants, contracts, or
cooperative agreements under this part to submit applications
that serve dual purposes, so long as such applications meet
the requirements of sections 612 and section 613.
``(b) Amount of Assistance.--In a case described in
subsection (a), the minimum
[[Page S160]]
amount of a grant, contract, or cooperative agreement awarded
under a dual-purpose application may, at the discretion of
the Commissioner, exceed the limitations described in section
612(f)(2).
``SEC. 615. AUTHORIZATION OF APPROPRIATIONS.
``There is authorized to be appropriated to carry out this
part, $10,000,000 for fiscal year 1998, and such sums as may
be necessary for each of the fiscal years 1999 through 2004.
``Part B--Projects With Industry
``projects with industry
``Sec. 621. (a)(1) The purpose of this part is to create
and expand job and career opportunities for individuals with
disabilities in the competitive labor market by engaging the
talent and leadership of private industry as partners in the
rehabilitation process, to identify competitive job and
career opportunities and the skills needed to perform such
jobs, to create practical job and career readiness and
training programs, and to provide job placements and career
advancement.
``(2) The Commissioner, in consultation with the Secretary
of Labor and with designated State units, may award grants to
individual employers, community rehabilitation program
providers, labor unions, trade associations, Indian tribes,
tribal organizations, designated State units, and other
entities to establish jointly financed Projects With Industry
to create and expand job and career opportunities for
individuals with disabilities, which projects shall--
``(A) provide for the establishment of business advisory
councils, which shall--
``(i) be comprised of--
``(I) representatives of private industry, business
concerns, and organized labor;
``(II) individuals with disabilities and representatives of
individuals with disabilities; and
``(III) a representative of the appropriate designated
State unit;
``(ii) identify job and career availability within the
community, consistent with the current and projected local
employment opportunities identified by the local workforce
investment partnership for the community under section
308(e)(6) of the Workforce Investment Partnership Act of
1998;
``(iii) identify the skills necessary to perform the jobs
and careers identified; and
``(iv) prescribe training programs designed to develop
appropriate job and career skills, or job placement programs
designed to identify and develop job placement and career
advancement 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 competitive market; and
``(ii) the modification of any facilities or equipment of
the employer involved that are used primarily by individuals
with disabilities, except that a project shall not be
required to provide 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
described in paragraph (2) if the individual is determined to
be an individual described in section 102(a)(1), and if the
determination is made in a manner consistent with section
102(a).
``(B) Such a determination may be made by the recipient of
a grant under this part, to the extent the determination is
appropriate and available and consistent with the
requirements of section 102(a).
``(4) The Commissioner shall enter into an agreement with
the grant recipient regarding the establishment of the
project. Any agreement shall be jointly developed by the
Commissioner, the grant recipient, and, to the extent
practicable, the appropriate designated State unit and the
individuals with disabilities (or the individuals'
representatives) involved. Such agreements shall specify the
terms of training and employment under the project, provide
for the payment by the Commissioner of part of the costs of
the project (in accordance with subsection (c)), and contain
the items required under subsection (b) and such other
provisions as the parties to the agreement consider to be
appropriate.
``(5) Any agreement shall include a description of a plan
to annually conduct a review and evaluation of the operation
of the project in accordance with standards developed by the
Commissioner under subsection (d), and, in conducting the
review and evaluation, to collect data and information of the
type described in subparagraphs (A) through (C) of section
101(a)(10), as determined to be appropriate by the
Commissioner.
``(6) The Commissioner may include, as part of agreements
with grant recipients, authority for such grant recipients to
provide technical assistance to--
``(A) assist employers in hiring individuals with
disabilities; or
``(B) improve or develop relationships between--
``(i) grant recipients or prospective grant recipients; and
``(ii) employers or organized labor; or
``(C) assist employers in understanding and meeting the
requirements of the Americans with Disabilities Act of 1990
(42 U.S.C. 12101 et seq.) as the Act relates to employment of
individuals with disabilities.
``(b) No payment shall be made by the Commissioner under
any agreement with a grant recipient entered into under
subsection (a) unless such agreement--
``(1) provides an assurance that individuals with
disabilities placed under such agreement shall receive at
least the applicable minimum wage;
``(2) provides an assurance that any individual with a
disability placed under this part shall be afforded terms and
benefits of employment equal to terms and benefits that are
afforded to the similarly situated nondisabled co-workers of
the individual, and that such individuals with disabilities
shall not be segregated from their co-workers; and
``(3) provides an assurance that an annual evaluation
report containing information specified under subsection
(a)(5) shall be submitted as determined to be appropriate by
the Commissioner.
``(c) Payments under this section with respect to any
project may not exceed 80 per centum of the costs of the
project.
``(d)(1) The Commissioner shall develop standards for the
evaluation described in subsection (a)(5) and shall review
and revise the evaluation standards as necessary, subject to
paragraphs (2) and (3).
``(2) In revising the standards for evaluation to be used
by the grant recipients, the Commissioner shall obtain and
consider recommendations for such standards from State
vocational rehabilitation agencies, current and former grant
recipients, professional organizations representing business
and industry, organizations representing individuals with
disabilities, individuals served by grant recipients,
organizations representing community rehabilitation program
providers, and labor organizations.
``(3) No standards may be established under this subsection
unless the standards are approved by the National Council on
Disability. The Council shall be afforded adequate time to
review and approve the standards.
``(e)(1)(A) A grant may be awarded under this section for a
period of up to 5 years and such grant may be renewed.
``(B) Grants under this section shall be awarded on a
competitive basis. To be eligible to receive such a grant, a
prospective grant recipient shall submit an application to
the Commissioner at such time, in such manner, and containing
such information as the Commissioner may require.
``(2) The Commissioner shall to the extent practicable
ensure an equitable distribution of payments made under this
section among the States. To the extent funds are available,
the Commissioner shall award grants under this section to new
projects that will serve individuals with disabilities in
States, portions of States, Indian tribes, or tribal
organizations, that are currently unserved or underserved by
projects.
``(f)(1) The Commissioner shall, as necessary, develop and
publish in the Federal Register in final form indicators of
what constitutes minimum compliance consistent with the
evaluation standards under subsection (d)(1).
``(2) Each grant recipient shall report to the Commissioner
at the end of each project year the extent to which the grant
recipient is in compliance with the evaluation standards.
``(3)(A) The Commissioner shall annually conduct on-site
compliance reviews of at least 15 percent of grant
recipients. The Commissioner shall select grant recipients
for review on a random basis.
``(B) The Commissioner shall use the indicators in
determining compliance with the evaluation standards.
``(C) The Commissioner shall ensure that at least one
member of a team conducting such a review shall be an
individual who--
``(i) is not an employee of the Federal Government; and
``(ii) has experience or expertise in conducting projects.
``(D) The Commissioner shall ensure that--
``(i) a representative of the appropriate designated State
unit shall participate in the review; and
``(ii) no person shall participate in the review of a grant
recipient if--
``(I) the grant recipient provides any direct financial
benefit to the reviewer; or
``(II) participation in the review would give the
appearance of a conflict of interest.
``(4) In making a determination concerning any subsequent
grant under this section, the Commissioner shall consider the
past performance of the applicant, if applicable. The
Commissioner shall use compliance indicators developed under
this subsection that are consistent with program evaluation
standards developed under subsection (d) to assess minimum
project performance for purposes of making continuation
awards in the third, fourth, and fifth years.
``(5) Each fiscal year the Commissioner shall include in
the annual report to Congress required by section 13 an
analysis of the extent to which grant recipients have
complied with the evaluation standards. The Commissioner may
identify individual grant recipients in the analysis. In
addition, the Commissioner shall report the results of on-
site compliance reviews, identifying individual grant
recipients.
``(g) The Commissioner may provide, directly or by way of
grant, contract, or cooperative agreement, technical
assistance to--
[[Page S161]]
``(1) entities conducting projects for the purpose of
assisting such entities in--
``(A) the improvement of or the development of
relationships with private industry or labor; or
``(B) the improvement of relationships with State
vocational rehabilitation agencies; and
``(2) entities planning the development of new projects.
``(h) As used in this section:
``(1) The term `agreement' means an agreement described in
subsection (a)(4).
``(2) The term `project' means a Project With Industry
established under subsection (a)(2).
``(3) The term `grant recipient' means a recipient of a
grant under subsection (a)(2).
``authorization of appropriations
``Sec. 622. There are authorized to be appropriated to
carry out the provisions of this part, such sums as may be
necessary for each of fiscal years 1998 through 2004.
``Part C--Supported Employment Services for Individuals With the Most
Significant Disabilities
``SEC. 631. PURPOSE.
``It is the purpose of this part to authorize allotments,
in addition to grants for vocational rehabilitation services
under title I, to assist States in developing collaborative
programs with appropriate entities to provide supported
employment services for individuals with the most significant
disabilities to enable such individuals to achieve the
employment outcome of supported employment.
``SEC. 632. ALLOTMENTS.
``(a) In General.--
``(1) States.--The Secretary shall allot the sums
appropriated for each fiscal year to carry out this part
among the States on the basis of relative population of each
State, except that--
``(A) no State shall receive less than $250,000, or one-
third of one percent of the sums appropriated for the fiscal
year for which the allotment is made, whichever is greater;
and
``(B) if the sums appropriated to carry out this part for
the fiscal year exceed by $1,000,000 or more the sums
appropriated to carry out this part in fiscal year 1992, no
State shall receive less than $300,000, or one-third of one
percent of the sums appropriated for the fiscal year for
which the allotment is made, whichever is greater.
``(2) Certain territories.--
``(A) In general.--For the purposes of this subsection,
Guam, American Samoa, the United States Virgin Islands, and
the Commonwealth of the Northern Mariana Islands shall not be
considered to be States.
``(B) Allotment.--Each jurisdiction described in
subparagraph (A) shall be allotted not less than one-eighth
of one percent of the amounts appropriated for the fiscal
year for which the allotment is made.
``(b) Reallotment.--Whenever the Commissioner determines
that any amount of an allotment to a State for any fiscal
year will not be expended by such State for carrying out the
provisions of this part, the Commissioner shall make such
amount available for carrying out the provisions of this part
to one or more of the States that the Commissioner determines
will be able to use additional amounts during such year for
carrying out such provisions. Any amount made available to a
State for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an
increase in the allotment of the State (as determined under
the preceding provisions of this section) for such year.
``SEC. 633. AVAILABILITY OF SERVICES.
``Funds provided under this part may be used to provide
supported employment services to individuals who are eligible
under this part. Funds provided under this part, or title I,
may not be used to provide extended services to individuals
who are eligible under this part or title I.
``SEC. 634. ELIGIBILITY.
``An individual shall be eligible under this part to
receive supported employment services authorized under this
Act if--
``(1) the individual is eligible for vocational
rehabilitation services;
``(2) the individual is determined to be an individual with
a most significant disability; and
``(3) a comprehensive assessment of rehabilitation needs of
the individual described in section 7(2)(B), including an
evaluation of rehabilitation, career, and job needs,
identifies supported employment as the appropriate employment
outcome for the individual.
``SEC. 635. STATE PLAN.
``(a) State Plan Supplements.--To be eligible for an
allotment under this part, a State shall submit to the
Commissioner, as part of the State plan under section 101, a
State plan supplement for providing supported employment
services authorized under this Act to individuals who are
eligible under this Act to receive the services. Each State
shall make such annual revisions in the plan supplement as
may be necessary.
``(b) Contents.--Each such plan supplement shall--
``(1) designate each designated State agency as the agency
to administer the program assisted under this part;
``(2) summarize the results of the comprehensive, statewide
assessment conducted under section 101(a)(15)(A)(i), with
respect to the rehabilitation needs of individuals with
significant disabilities and the need for supported
employment services, including needs related to coordination;
``(3) describe the quality, scope, and extent of supported
employment services authorized under this Act to be provided
to individuals who are eligible under this Act to receive the
services and specify the goals and plans of the State with
respect to the distribution of funds received under section
632;
``(4) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including
entering into cooperative agreements) with other State
agencies and other appropriate entities to assist in the
provision of supported employment services;
``(5) demonstrate evidence of the efforts of the designated
State agency to identify and make arrangements (including
entering into cooperative agreements) with other public or
nonprofit agencies or organizations within the State,
employers, natural supports, and other entities with respect
to the provision of extended services;
``(6) provide assurances that--
``(A) funds made available under this part will only be
used to provide supported employment services authorized
under this Act to individuals who are eligible under this
part to receive the services;
``(B) the comprehensive assessments of individuals with
significant disabilities conducted under section 102(b)(1)
and funded under title I will include consideration of
supported employment as an appropriate employment outcome;
``(C) an individualized rehabilitation employment plan, as
required by section 102, will be developed and updated using
funds under title I in order to--
``(i) specify the supported employment services to be
provided;
``(ii) specify the expected extended services needed; and
``(iii) identify the source of extended services, which may
include natural supports, or to the extent that it is not
possible to identify the source of extended services at the
time the individualized rehabilitation employment plan is
developed, a statement describing the basis for concluding
that there is a reasonable expectation that such sources will
become available;
``(D) the State will use funds provided under this part
only to supplement, and not supplant, the funds provided
under title I, in providing supported employment services
specified in the individualized rehabilitation employment
plan;
``(E) services provided under an individualized
rehabilitation employment plan will be coordinated with
services provided under other individualized plans
established under other Federal or State programs;
``(F) to the extent jobs skills training is provided, the
training will be provided on-site; and
``(G) supported employment services will include placement
in an integrated setting for the maximum number of hours
possible based on the unique strengths, resources,
priorities, concerns, abilities, capabilities, interests, and
informed choice of individuals with the most significant
disabilities;
``(7) provide assurances that the State agencies designated
under paragraph (1) will expend not more than 5 percent of
the allotment of the State under this part for administrative
costs of carrying out this part; and
``(8) contain such other information and be submitted in
such manner as the Commissioner may require.
``SEC. 636. RESTRICTION.
``Each State agency designated under section 635(b)(1)
shall collect the information required by section 101(a)(10)
separately for eligible individuals receiving supported
employment services under this part and for eligible
individuals receiving supported employment services under
title I.
``SEC. 637. SAVINGS PROVISION.
``(a) Supported Employment Services.--Nothing in this Act
shall be construed to prohibit a State from providing
supported employment services in accordance with the State
plan submitted under section 101 by using funds made
available through a State allotment under section 110.
``(b) Postemployment Services.--Nothing in this part shall
be construed to prohibit a State from providing discrete
postemployment services in accordance with the State plan
submitted under section 101 by using funds made available
through a State allotment under section 110 to an individual
who is eligible under this part.
``SEC. 638. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of fiscal years
1998 through 2004.''.
SEC. 10. INDEPENDENT LIVING SERVICES AND CENTERS FOR
INDEPENDENT LIVING.
Title VII of the Rehabilitation Act of 1973 (29 U.S.C. 796
et seq.) is amended to read as follows:
``TITLE VII--INDEPENDENT LIVING SERVICES AND CENTERS FOR INDEPENDENT
LIVING
``CHAPTER 1--INDIVIDUALS WITH SIGNIFICANT DISABILITIES
``PART A--GENERAL PROVISIONS
``SEC. 701. PURPOSE.
``The purpose of this chapter is to promote a philosophy of
independent living, including a philosophy of consumer
control, peer support, self-help, self-determination, equal
access, and individual and system advocacy, in order to
maximize the leadership, empowerment, independence, and
productivity of individuals with disabilities, and the
integration and full inclusion of individuals with
[[Page S162]]
disabilities into the mainstream of American society, by--
``(1) providing financial assistance to States for
providing, expanding, and improving the provision of
independent living services;
``(2) providing financial assistance to develop and support
statewide networks of centers for independent living; and
``(3) providing financial assistance to States for
improving working relationships among State independent
living rehabilitation service programs, centers for
independent living, Statewide Independent Living Councils
established under section 705, State vocational
rehabilitation programs receiving assistance under title I,
State programs of supported employment services receiving
assistance under part C of title VI, client assistance
programs receiving assistance under section 112, programs
funded under other titles of this Act, programs funded under
other Federal law, and programs funded through non-Federal
sources.
``SEC. 702. DEFINITIONS.
``As used in this chapter:
``(1) Center for independent living.--The term `center for
independent living' means a consumer-controlled, community-
based, cross-disability, nonresidential private nonprofit
agency that--
``(A) is designed and operated within a local community by
individuals with disabilities; and
``(B) provides an array of independent living services.
``(2) Consumer control.--The term `consumer control' means,
with respect to a center for independent living, that the
center vests power and authority in individuals with
disabilities.
``SEC. 703. ELIGIBILITY FOR RECEIPT OF SERVICES.
``Services may be provided under this chapter to any
individual with a significant disability, as defined in
section 7(21)(B).
``SEC. 704. STATE PLAN.
``(a) In General.--
``(1) Requirement.--To be eligible to receive financial
assistance under this chapter, a State shall submit to the
Commissioner, and obtain approval of, a State plan containing
such provisions as the Commissioner may require, including,
at a minimum, the provisions required in this section.
``(2) Joint development.--The plan under paragraph (1)
shall be jointly developed and signed by--
``(A) the director of the designated State unit; and
``(B) the chairperson of the Statewide Independent Living
Council, acting on behalf of and at the direction of the
Council.
``(3) Periodic review and revision.--The plan shall provide
for the review and revision of the plan, not less than once
every 3 years, to ensure the existence of appropriate
planning, financial support and coordination, and other
assistance to appropriately address, on a statewide and
comprehensive basis, needs in the State for--
``(A) the provision of State independent living services;
``(B) the development and support of a statewide network of
centers for independent living; and
``(C) working relationships between--
``(i) programs providing independent living services and
independent living centers; and
``(ii) the vocational rehabilitation program established
under title I, and other programs providing services for
individuals with disabilities.
``(4) Date of submission.--The State shall submit the plan
to the Commissioner 90 days before the completion date of the
preceding plan. If a State fails to submit such a plan that
complies with the requirements of this section, the
Commissioner may withhold financial assistance under this
chapter until such time as the State submits such a plan.
``(b) Statewide Independent Living Council.--The plan shall
provide for the establishment of a Statewide Independent
Living Council in accordance with section 705.
``(c) Designation of State Unit.--The plan shall designate
the designated State unit of such State as the agency that,
on behalf of the State, shall--
``(1) receive, account for, and disburse funds received by
the State under this chapter based on the plan;
``(2) provide administrative support services for a program
under part B, and a program under part C in a case in which
the program is administered by the State under section 723;
``(3) keep such records and afford such access to such
records as the Commissioner finds to be necessary with
respect to the programs; and
``(4) submit such additional information or provide such
assurances as the Commissioner may require with respect to
the programs.
``(d) Objectives.--The plan shall--
``(1) specify the objectives to be achieved under the plan
and establish timelines for the achievement of the
objectives; and
``(2) explain how such objectives are consistent with and
further the purpose of this chapter.
``(e) Independent Living Services.--The plan shall provide
that the State will provide independent living services under
this chapter to individuals with significant disabilities,
and will provide the services to such an individual in
accordance with an independent living plan mutually agreed
upon by an appropriate staff member of the service provider
and the individual, unless the individual signs a waiver
stating that such a plan is unnecessary.
``(f) Scope and Arrangements.--The plan shall describe the
extent and scope of independent living services to be
provided under this chapter to meet such objectives. If the
State makes arrangements, by grant or contract, for providing
such services, such arrangements shall be described in the
plan.
``(g) Network.--The plan shall set forth a design for the
establishment of a statewide network of centers for
independent living that comply with the standards and
assurances set forth in section 725.
``(h) Centers.--In States in which State funding for
centers for independent living equals or exceeds the amount
of funds allotted to the State under part C, as provided in
section 723, the plan shall include policies, practices, and
procedures governing the awarding of grants to centers for
independent living and oversight of such centers consistent
with section 723.
``(i) Cooperation, Coordination, and Working Relationships
Among Various Entities.--The plan shall set forth the steps
that will be taken to maximize the cooperation, coordination,
and working relationships among--
``(1) the independent living rehabilitation service
program, the Statewide Independent Living Council, and
centers for independent living; and
``(2) the designated State unit, other State agencies
represented on such Council, other councils that address the
needs of specific disability populations and issues, and
other public and private entities determined to be
appropriate by the Council.
``(j) Coordination of Services.--The plan shall describe
how services funded under this chapter will be coordinated
with, and complement, other services, in order to avoid
unnecessary duplication with other Federal, State, and local
programs.
``(k) Coordination Between Federal and State Sources.--The
plan shall describe efforts to coordinate Federal and State
funding for centers for independent living and independent
living services.
``(l) Outreach.--With respect to services and centers
funded under this chapter, the plan shall set forth steps to
be taken regarding outreach to populations that are unserved
or underserved by programs under this title, including
minority groups and urban and rural populations.
``(m) Requirements.--The plan shall provide satisfactory
assurances that all recipients of financial assistance under
this chapter will--
``(1) notify all individuals seeking or receiving services
under this chapter about the availability of the client
assistance program under section 112, the purposes of the
services provided under such program, and how to contact such
program;
``(2) take affirmative action to employ and advance in
employment qualified individuals with disabilities on the
same terms and conditions required with respect to the
employment of such individuals under the provisions of
section 503;
``(3) adopt such fiscal control and fund accounting
procedures as may be necessary to ensure the proper
disbursement of and accounting for funds paid to the State
under this chapter;
``(4)(A) maintain records that fully disclose--
``(i) the amount and disposition by such recipient of the
proceeds of such financial assistance;
``(ii) the total cost of the project or undertaking in
connection with which such financial assistance is given or
used; and
``(iii) the amount of that portion of the cost of the
project or undertaking supplied by other sources;
``(B) maintain such other records as the Commissioner
determines to be appropriate to facilitate an effective
audit;
``(C) afford such access to records maintained under
subparagraphs (A) and (B) as the Commissioner determines to
be appropriate; and
``(D) submit such reports with respect to such records as
the Commissioner determines to be appropriate;
``(5) provide access to the Commissioner and the
Comptroller General or any of their duly authorized
representatives, for the purpose of conducting audits and
examinations, of any books, documents, papers, and records of
the recipients that are pertinent to the financial assistance
received under this chapter; and
``(6) provide for public hearings regarding the contents of
the plan during both the formulation and review of the plan.
``(n) Evaluation.--The plan shall establish a method for
the periodic evaluation of the effectiveness of the plan in
meeting the objectives established in subsection (d),
including evaluation of satisfaction by individuals with
disabilities.
``SEC. 705. STATEWIDE INDEPENDENT LIVING COUNCIL.
``(a) Establishment.--To be eligible to receive financial
assistance under this chapter, each State shall establish a
Statewide Independent Living Council (referred to in this
section as the `Council'). The Council shall not be
established as an entity within a State agency.
``(b) Composition and Appointment.--
``(1) Appointment.--Members of the Council shall be
appointed by the Governor or the appropriate entity within
the State responsible for making appointments. The appointing
authority shall select members after soliciting
recommendations from representatives of organizations
representing a broad
[[Page S163]]
range of individuals with disabilities and organizations
interested in individuals with disabilities.
``(2) Composition.--The Council shall include--
``(A) at least one director of a center for independent
living chosen by the directors of centers for independent
living within the State;
``(B) as ex officio, nonvoting members--
``(i) a representative from the designated State unit; and
``(ii) representatives from other State agencies that
provide services for individuals with disabilities; and
``(C) in a State in which 1 or more projects are carried
out under section 121, at least 1 representative of the
directors of the projects.
``(3) Additional members.--The Council may include--
``(A) other representatives from centers for independent
living;
``(B) parents and guardians of individuals with
disabilities;
``(C) advocates of and for individuals with disabilities;
``(D) representatives from private businesses;
``(E) representatives from organizations that provide
services for individuals with disabilities; and
``(F) other appropriate individuals.
``(4) Qualifications.--
``(A) In general.--The Council shall be composed of
members--
``(i) who provide statewide representation;
``(ii) who represent a broad range of individuals with
disabilities from diverse backgrounds;
``(iii) who are knowledgeable about centers for independent
living and independent living services; and
``(iv) a majority of whom are persons who are--
``(I) individuals with disabilities described in section
7(20)(B); and
``(II) not employed by any State agency or center for
independent living.
``(B) Voting members.--A majority of the voting members of
the Council shall be--
``(i) individuals with disabilities described in section
7(20)(B); and
``(ii) not employed by any State agency or center for
independent living.
``(5) Chairperson.--The Council shall select a chairperson
from among the voting membership of the Council.
``(6) Terms of appointment.--
``(A) Length of term.--Each member of the Council shall
serve for a term of 3 years, except that--
``(i) a member appointed to fill a vacancy occurring prior
to the expiration of the term for which a predecessor was
appointed, shall be appointed for the remainder of such term;
and
``(ii) the terms of service of the members initially
appointed shall be (as specified by the appointing authority)
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 may serve
more than two consecutive full terms.
``(7) Vacancies.--
``(A) In general.--Except as provided in subparagraph (B),
any vacancy occurring in the membership of the Council shall
be filled in the same manner as the original appointment. The
vacancy shall not affect the power of the remaining members
to execute the duties of the Council.
``(B) Delegation.--The Governor (including an entity
described in paragraph (1)) may delegate the authority to
fill such a vacancy to the remaining voting members of the
Council after making the original appointment.
``(c) Duties.--The Council shall--
``(1) jointly develop and sign (in conjunction with the
designated State unit) the State plan required in section
704;
``(2) monitor, review, and evaluate the implementation of
the State plan;
``(3) coordinate activities with the State Rehabilitation
Council established under section 105, if the State has such
a Council, or the commission described in section
101(a)(21)(A), if the State has such a commission, and
councils that address the needs of specific disability
populations and issues under other Federal law;
``(4) ensure that all regularly scheduled meetings of the
Statewide Independent Living Council are open to the public
and sufficient advance notice is provided; and
``(5) submit to the Commissioner such periodic reports as
the Commissioner may reasonably request, and keep such
records, and afford such access to such records, as the
Commissioner finds necessary to verify such reports.
``(d) Hearings and Forums.--The Council is authorized to
hold such hearings and forums as the Council may determine to
be necessary to carry out the duties of the Council.
``(e) Plan.--
``(1) In general.--The Council shall prepare, in
conjunction with the designated State unit, a plan for the
provision of such resources, including such staff and
personnel, as may be necessary and sufficient to carry out
the functions of the Council under this section, with funds
made available under this chapter, and under section 110
(consistent with section 101(a)(18)), and from other public
and private sources. The resource plan shall, to the maximum
extent possible, rely on the use of resources in existence
during the period of implementation of the plan.
``(2) Supervision and evaluation.--Each Council shall,
consistent with State law, supervise and evaluate such staff
and other personnel as may be necessary to carry out the
functions of the Council under this section.
``(3) Conflict of interest.--While assisting the Council in
carrying out its duties, staff and other personnel shall not
be assigned duties by the designated State agency or any
other agency or office of the State, that would create a
conflict of interest.
``(f) Compensation and Expenses.--The Council may use such
resources to reimburse members of the Council for reasonable
and necessary expenses of attending Council meetings and
performing Council duties (including child care and personal
assistance services), and to pay 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 Council duties.
``SEC. 706. RESPONSIBILITIES OF THE COMMISSIONER.
``(a) Approval of State Plans.--
``(1) In general.--The Commissioner shall approve any State
plan submitted under section 704 that the Commissioner
determines meets the requirements of section 704, and shall
disapprove any such plan that does not meet such
requirements, as soon as practicable after receiving the
plan. Prior to such disapproval, the Commissioner shall
notify the State of the intention to disapprove the plan, and
shall afford such State reasonable notice and opportunity for
a hearing.
``(2) Procedures.--
``(A) In general.--Except as provided in subparagraph (B),
the provisions of subsections (c) and (d) of section 107
shall apply to any State plan submitted to the Commissioner
under section 704.
``(B) Application.--For purposes of the application
described in subparagraph (A), all references in such
provisions--
``(i) to the Secretary shall be deemed to be references to
the Commissioner; and
``(ii) to section 101 shall be deemed to be references to
section 704.
``(b) Indicators.--Not later than October 1, 1993, the
Commissioner shall develop and publish in the Federal
Register indicators of minimum compliance consistent with the
standards set forth in section 725.
``(c) On-Site Compliance Reviews.--
``(1) Reviews.--The Commissioner shall annually conduct on-
site compliance reviews of at least 15 percent of the centers
for independent living that receive funds under section 722
and shall periodically conduct such a review of each such
center. The Commissioner shall select such centers for review
on a random basis. The Commissioner shall annually conduct
onsite compliance reviews of at least one-third of the
designated State units that receive funding under section
723, and, to the extent necessary to determine the compliance
of such a State unit with subsections (f) and (g) of section
723, centers that receive funding under section 723 in such
State.
``(2) Qualifications of employees conducting reviews.--The
Commissioner shall--
``(A) to the maximum extent practicable, carry out such a
review by using employees of the Department who are
knowledgeable about the provision of independent living
services;
``(B) ensure that the employee of the Department with
responsibility for supervising such a review shall have such
knowledge; and
``(C) ensure that at least one member of a team conducting
such a review shall be an individual who--
``(i) is not a government employee; and
``(ii) has experience in the operation of centers for
independent living.
``(d) Reports.--The Commissioner shall include, in the
annual report required under section 13, information on the
extent to which centers for independent living receiving
funds under part C have complied with the standards and
assurances set forth in section 725. The Commissioner may
identify individual centers for independent living in the
analysis. The Commissioner shall report the results of on-
site compliance reviews, identifying individual centers for
independent living and other recipients of assistance under
this chapter.
``PART B--INDEPENDENT LIVING SERVICES
``SEC. 711. ALLOTMENTS.
``(a) In General.--
``(1) States.--
``(A) Population basis.--Except as provided in
subparagraphs (B) and (C), from sums appropriated for each
fiscal year to carry out this part, the Commissioner shall
make an allotment to each State whose State plan has been
approved under section 706 of an amount bearing the same
ratio to such sums as the population of the State bears to
the population of all States.
``(B) Maintenance of 1992 amounts.--Subject to the
availability of appropriations to carry out this part, the
amount of any allotment made under subparagraph (A) to a
State for a fiscal year shall not be less than the amount of
an allotment made to the State for fiscal year 1992 under
part A of this title, as in effect on the day before the date
of enactment of the Rehabilitation Act Amendments of 1992.
``(C) Minimums.--Subject to the availability of
appropriations to carry out this part,
[[Page S164]]
and except as provided in subparagraph (B), the allotment to
any State under subparagraph (A) shall be not less than
$275,000 or one-third of one percent of the sums made
available for the fiscal year for which the allotment is
made, whichever is greater, and the allotment of any State
under this section for any fiscal year that is less than
$275,000 or one-third of one percent of such sums shall be
increased to the greater of the two amounts.
``(2) Certain territories.--
``(A) In general.--For the purposes of paragraph (1)(C),
Guam, American Samoa, the United States Virgin Islands, and
the Commonwealth of the Northern Mariana Islands shall not be
considered to be States.
``(B) Allotment.--Each jurisdiction described in
subparagraph (A) shall be allotted under paragraph (1)(A) not
less than one-eighth of one percent of the amounts made
available for purposes of this part for the fiscal year for
which the allotment is made.
``(3) Adjustment for inflation.--For any fiscal year,
beginning in fiscal year 1999, in which the total amount
appropriated to carry out this part exceeds the total amount
appropriated to carry out this part for the preceding fiscal
year, the Commissioner shall increase the minimum allotment
under paragraph (1)(C) by a percentage that shall not exceed
the percentage increase in the total amount appropriated to
carry out this part between the preceding fiscal year and the
fiscal year involved.
``(b) Proportional Reduction.--To provide allotments to
States in accordance with subsection (a)(1)(B), to provide
minimum allotments to States (as increased under subsection
(a)(3)) under subsection (a)(1)(C), or to provide minimum
allotments to States under subsection (a)(2)(B), the
Commissioner shall proportionately reduce the allotments of
the remaining States under subsection (a)(1)(A), with such
adjustments as may be necessary to prevent the allotment of
any such remaining State from being reduced to less than the
amount required by subsection (a)(1)(B).
``(c) Reallotment.--Whenever the Commissioner determines
that any amount of an allotment to a State for any fiscal
year will not be expended by such State in carrying out the
provisions of this part, the Commissioner shall make such
amount available for carrying out the provisions of this part
to one or more of the States that the Commissioner determines
will be able to use additional amounts during such year for
carrying out such provisions. Any amount made available to a
State for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an
increase in the allotment of the State (as determined under
the preceding provisions of this section) for such year.
``SEC. 712. PAYMENTS TO STATES FROM ALLOTMENTS.
``(a) Payments.--From the allotment of each State for a
fiscal year under section 711, the State shall be paid the
Federal share of the expenditures incurred during such year
under its State plan approved under section 706. Such
payments may be made (after necessary adjustments on account
of previously made overpayments or underpayments) in advance
or by way of reimbursement, and in such installments and on
such conditions as the Commissioner may determine.
``(b) Federal Share.--
``(1) In general.--The Federal share with respect to any
State for any fiscal year shall be 90 percent of the
expenditures incurred by the State during such year under its
State plan approved under section 706.
``(2) Non-federal share.--The non-Federal share of the cost
of any project that receives assistance through an allotment
under this part may be provided in cash or in kind, fairly
evaluated, including plant, equipment, or services.
``SEC. 713. AUTHORIZED USES OF FUNDS.
``The State may use funds received under this part to
provide the resources described in section 705(e), relating
to the Statewide Independent Living Council, and may use
funds received under this part--
``(1) to provide independent living services to individuals
with significant disabilities;
``(2) to demonstrate ways to expand and improve independent
living services;
``(3) to support the operation of centers for independent
living that are in compliance with the standards and
assurances set forth in subsections (b) and (c) of section
725;
``(4) to support activities to increase the capacities of
public or nonprofit agencies and organizations and other
entities to develop comprehensive approaches or systems for
providing independent living services;
``(5) to conduct studies and analyses, gather information,
develop model policies and procedures, and present
information, approaches, strategies, findings, conclusions,
and recommendations to Federal, State, and local policymakers
in order to enhance independent living services for
individuals with disabilities;
``(6) to train individuals with disabilities and
individuals providing services to individuals with
disabilities and other persons regarding the independent
living philosophy; and
``(7) to provide outreach to populations that are unserved
or underserved by programs under this title, including
minority groups and urban and rural populations.
``SEC. 714. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of the fiscal
years 1998 through 2004.
``PART C--CENTERS FOR INDEPENDENT LIVING
``SEC. 721. PROGRAM AUTHORIZATION.
``(a) In General.--From the funds appropriated for fiscal
year 1998 and for each subsequent fiscal year to carry out
this part, the Commissioner shall allot such sums as may be
necessary to States and other entities in accordance with
subsections (b) through (d).
``(b) Training.--
``(1) Grants; contracts; other arrangements.--For any
fiscal year in which the funds appropriated to carry out this
part exceed the funds appropriated to carry out this part for
fiscal year 1993, the Commissioner shall first reserve from
such excess, to provide training and technical assistance to
eligible agencies, centers for independent living, and
Statewide Independent Living Councils for such fiscal year,
not less than 1.8 percent, and not more than 2 percent, of
the funds appropriated to carry out this part for the fiscal
year involved.
``(2) Allocation.--From the funds reserved under paragraph
(1), the Commissioner shall make grants to, and enter into
contracts and other arrangements with, entities who have
experience in the operation of centers for independent living
to provide such training and technical assistance with
respect to planning, developing, conducting, administering,
and evaluating centers for independent living.
``(3) Funding priorities.--The Commissioner shall conduct a
survey of Statewide Independent Living Councils and centers
for independent living regarding training and technical
assistance needs in order to determine funding priorities for
such grants, contracts, and other arrangements.
``(4) Review.--To be eligible to receive a grant or enter
into a contract or other arrangement under this subsection,
such an entity shall submit an application to the
Commissioner at such time, in such manner, and containing a
proposal to provide such training and technical assistance,
and containing such additional information as the
Commissioner may require. The Commissioner shall provide for
peer review of grant applications by panels that include
persons who are not government employees and who have
experience in the operation of centers for independent
living.
``(5) Prohibition on combined funds.--No funds reserved by
the Commissioner under this subsection may be combined with
funds appropriated under any other Act or part of this Act if
the purpose of combining funds is to make a single
discretionary grant or a single discretionary payment, unless
such funds appropriated under this chapter are separately
identified in such grant or payment and are used for the
purposes of this chapter.
``(c) In General.--
``(1) States.--
``(A) Population basis.--After the reservation required by
subsection (b) has been made, and except as provided in
subparagraphs (B) and (C), from the remainder of the amounts
appropriated for each such fiscal year to carry out this
part, the Commissioner shall make an allotment to each State
whose State plan has been approved under section 706 of an
amount bearing the same ratio to such remainder as the
population of the State bears to the population of all
States.
``(B) Maintenance of 1992 amounts.--Subject to the
availability of appropriations to carry out this part, the
amount of any allotment made under subparagraph (A) to a
State for a fiscal year shall not be less than the amount of
financial assistance received by centers for independent
living in the State for fiscal year 1992 under part B of this
title, as in effect on the day before the date of enactment
of the Rehabilitation Act Amendments of 1992.
``(C) Minimums.--Subject to the availability of
appropriations to carry out this part and except as provided
in subparagraph (B), for a fiscal year in which the amounts
appropriated to carry out this part exceed the amounts
appropriated for fiscal year 1992 to carry out part B of this
title, as in effect on the day before the date of enactment
of the Rehabilitation Act Amendments of 1992--
``(i) if such excess is not less than $8,000,000, the
allotment to any State under subparagraph (A) shall be not
less than $450,000 or one-third of one percent of the sums
made available for the fiscal year for which the allotment is
made, whichever is greater, and the allotment of any State
under this section for any fiscal year that is less than
$450,000 or one-third of one percent of such sums shall be
increased to the greater of the two amounts;
``(ii) if such excess is not less than $4,000,000 and is
less than $8,000,000, the allotment to any State under
subparagraph (A) shall be not less than $400,000 or one-third
of one percent of the sums made available for the fiscal year
for which the allotment is made, whichever is greater, and
the allotment of any State under this section for any fiscal
year that is less than $400,000 or one-third of one percent
of such sums shall be increased to the greater of the two
amounts; and
``(iii) if such excess is less than $4,000,000, the
allotment to any State under subparagraph (A) shall approach,
as nearly as possible, the greater of the two amounts
described in clause (ii).
``(2) Certain territories.--
``(A) In general.--For the purposes of paragraph (1)(C),
Guam, American Samoa,
[[Page S165]]
the United States Virgin Islands, and the Commonwealth of the
Northern Mariana Islands shall not be considered to be
States.
``(B) Allotment.--Each jurisdiction described in
subparagraph (A) shall be allotted under paragraph (1)(A) not
less than one-eighth of one percent of the remainder for the
fiscal year for which the allotment is made.
``(3) Adjustment for inflation.--For any fiscal year,
beginning in fiscal year 1999, in which the total amount
appropriated to carry out this part exceeds the total amount
appropriated to carry out this part for the preceding fiscal
year, the Commissioner shall increase the minimum allotment
under paragraph (1)(C) by a percentage that shall not exceed
the percentage increase in the total amount appropriated to
carry out this part between the preceding fiscal year and the
fiscal year involved.
``(4) Proportional reduction.--To provide allotments to
States in accordance with paragraph (1)(B), to provide
minimum allotments to States (as increased under paragraph
(3)) under paragraph (1)(C), or to provide minimum allotments
to States under paragraph (2)(B), the Commissioner shall
proportionately reduce the allotments of the remaining States
under paragraph (1)(A), with such adjustments as may be
necessary to prevent the allotment of any such remaining
State from being reduced to less than the amount required by
paragraph (1)(B).
``(d) Reallotment.--Whenever the Commissioner determines
that any amount of an allotment to a State for any fiscal
year will not be expended by such State for carrying out the
provisions of this part, the Commissioner shall make such
amount available for carrying out the provisions of this part
to one or more of the States that the Commissioner determines
will be able to use additional amounts during such year for
carrying out such provisions. Any amount made available to a
State for any fiscal year pursuant to the preceding sentence
shall, for the purposes of this section, be regarded as an
increase in the allotment of the State (as determined under
the preceding provisions of this section) for such year.
``SEC. 722. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN
STATES IN WHICH FEDERAL FUNDING EXCEEDS STATE
FUNDING.
``(a) Establishment.--
``(1) In general.--Unless the director of a designated
State unit awards grants under section 723 to eligible
agencies in a State for a fiscal year, the Commissioner shall
award grants under this section to such eligible agencies for
such fiscal year from the amount of funds allotted to the
State under subsection (c) or (d) of section 721 for such
year.
``(2) Grants.--The Commissioner shall award such grants,
from the amount of funds so allotted, to such eligible
agencies for the planning, conduct, administration, and
evaluation of centers for independent living that comply with
the standards and assurances set forth in section 725.
``(b) Eligible Agencies.--In any State in which the
Commissioner has approved the State plan required by section
704, the Commissioner may make a grant under this section to
any eligible agency that--
``(1) has the power and authority to carry out the purpose
of this part and perform the functions set forth in section
725 within a community and to receive and administer funds
under this part, funds and contributions from private or
public sources that may be used in support of a center for
independent living, and funds from other public and private
programs;
``(2) is determined by the Commissioner to be able to plan,
conduct, administer, and evaluate a center for independent
living consistent with the standards and assurances set forth
in section 725; and
``(3) submits an application to the Commissioner at such
time, in such manner, and containing such information as the
Commissioner may require.
``(c) Existing Eligible Agencies.--In the administration of
the provisions of this section, the Commissioner shall award
grants to any eligible agency that has been awarded a grant
under this part by September 30, 1997 unless the Commissioner
makes a finding that the agency involved fails to meet
program and fiscal standards and assurances set forth in
section 725.
``(d) New Centers for Independent Living.--
``(1) In general.--If there is no center for independent
living serving a region of the State or a region is
underserved, and the increase in the allotment of the State
is sufficient to support an additional center for independent
living in the State, the Commissioner may award a grant under
this section to the most qualified applicant proposing to
serve such region, consistent with the provisions in the
State plan setting forth the design of the State for
establishing a statewide network of centers for independent
living.
``(2) Selection.--In selecting from among applicants for a
grant under this section for a new center for independent
living, the Commissioner--
``(A) shall consider comments regarding the application, if
any, by the Statewide Independent Living Council in the State
in which the applicant is located;
``(B) shall consider the ability of each such applicant to
operate a center for independent living based on--
``(i) evidence of the need for such a center;
``(ii) any past performance of such applicant in providing
services comparable to independent living services;
``(iii) the plan for satisfying or demonstrated success in
satisfying the standards and the assurances set forth in
section 725;
``(iv) the quality of key personnel and the involvement of
individuals with significant disabilities;
``(v) budgets and cost-effectiveness;
``(vi) an evaluation plan; and
``(vii) the ability of such applicant to carry out the
plans; and
``(C) shall give priority to applications from applicants
proposing to serve geographic areas within each State that
are currently unserved or underserved by independent living
programs, consistent with the provisions of the State plan
submitted under section 704 regarding establishment of a
statewide network of centers for independent living.
``(3) Current centers.--Notwithstanding paragraphs (1) and
(2), a center for independent living that receives assistance
under part B for a fiscal year shall be eligible for a grant
for the subsequent fiscal year under this subsection.
``(e) Order of Priorities.--The Commissioner shall be
guided by the following order of priorities in allocating
funds among centers for independent living within a State, to
the extent funds are available:
``(1) The Commissioner shall support existing centers for
independent living, as described in subsection (c), that
comply with the standards and assurances set forth in section
725, at the level of funding for the previous year.
``(2) The Commissioner shall provide for a cost-of-living
increase for such existing centers for independent living.
``(3) The Commissioner shall fund new centers for
independent living, as described in subsection (d), that
comply with the standards and assurances set forth in section
725.
``(f) Nonresidential Agencies.--A center that provides or
manages residential housing after October 1, 1994, shall not
be considered to be an eligible agency under this section.
``(g) Review.--
``(1) In general.--The Commissioner shall periodically
review each center receiving funds under this section to
determine whether such center is in compliance with the
standards and assurances set forth in section 725. If the
Commissioner determines that any center receiving funds under
this section is not in compliance with the standards and
assurances set forth in section 725, the Commissioner shall
immediately notify such center that it is out of compliance.
``(2) Enforcement.--The Commissioner shall terminate all
funds under this section to such center 90 days after the
date of such notification unless the center submits a plan to
achieve compliance within 90 days of such notification and
such plan is approved by the Commissioner.
``SEC. 723. GRANTS TO CENTERS FOR INDEPENDENT LIVING IN
STATES IN WHICH STATE FUNDING EQUALS OR EXCEEDS
FEDERAL FUNDING.
``(a) Establishment.--
``(1) In general.--
``(A) Initial year.--
``(i) Determination.--The director of a designated State
unit, as provided in paragraph (2), or the Commissioner, as
provided in paragraph (3), shall award grants under this
section for an initial fiscal year if the Commissioner
determines that the amount of State funds that were earmarked
by a State for a preceding fiscal year to support the general
operation of centers for independent living meeting the
requirements of this part equaled or exceeded the amount of
funds allotted to the State under subsection (c) or (d) of
section 721 for such year.
``(ii) Grants.--The director or the Commissioner, as
appropriate, shall award such grants, from the amount of
funds so allotted for the initial fiscal year, to eligible
agencies in the State for the planning, conduct,
administration, and evaluation of centers for independent
living that comply with the standards and assurances set
forth in section 725.
``(iii) Regulation.--The Commissioner shall by regulation
specify the preceding fiscal year with respect to which the
Commissioner will make the determinations described in clause
(i) and subparagraph (B), making such adjustments as may be
necessary to accommodate State funding cycles such as 2-year
funding cycles or State fiscal years that do not coincide
with the Federal fiscal year.
``(B) Subsequent years.--For each year subsequent to the
initial fiscal year described in subparagraph (A), the
director of the designated State unit shall continue to have
the authority to award such grants under this section if the
Commissioner determines that the State continues to earmark
the amount of State funds described in subparagraph (A)(i).
If the State does not continue to earmark such an amount for
a fiscal year, the State shall be ineligible to make grants
under this section after a final year following such fiscal
year, as defined in accordance with regulations established
by the Commissioner, and for each subsequent fiscal year.
``(2) Grants by designated state units.--In order for the
designated State unit to be eligible to award the grants
described in paragraph (1) and carry out this section for a
fiscal year with respect to a State, the designated State
agency shall submit an application to the Commissioner at
such time, and in such manner as the Commissioner may
require, including information about
[[Page S166]]
the amount of State funds described in paragraph (1) for the
preceding fiscal year. If the Commissioner makes a
determination described in subparagraph (A)(i) or (B), as
appropriate, of paragraph (1), the Commissioner shall approve
the application and designate the director of the designated
State unit to award the grant and carry out this section.
``(3) Grants by commissioner.--If the designated State
agency of a State described in paragraph (1) does not submit
and obtain approval of an application under paragraph (2),
the Commissioner shall award the grant described in paragraph
(1) to eligible agencies in the State in accordance with
section 722.
``(b) Eligible Agencies.--In any State in which the
Commissioner has approved the State plan required by section
704, the director of the designated State unit may award a
grant under this section to any eligible agency that--
``(1) has the power and authority to carry out the purpose
of this part and perform the functions set forth in section
725 within a community and to receive and administer funds
under this part, funds and contributions from private or
public sources that may be used in support of a center for
independent living, and funds from other public and private
programs;
``(2) is determined by the director to be able to plan,
conduct, administer, and evaluate a center for independent
living, consistent with the standards and assurances set
forth in section 725; and
``(3) submits an application to the director at such time,
in such manner, and containing such information as the head
of the designated State unit may require.
``(c) Existing Eligible Agencies.--In the administration of
the provisions of this section, the director of the
designated State unit shall award grants under this section
to any eligible agency that has been awarded a grant under
this part by September 30, 1997, unless the director makes a
finding that the agency involved fails to comply with the
standards and assurances set forth in section 725.
``(d) New Centers for Independent Living.--
``(1) In general.--If there is no center for independent
living serving a region of the State or the region is
unserved or underserved, and the increase in the allotment of
the State is sufficient to support an additional center for
independent living in the State, the director of the
designated State unit may award a grant under this section
from among eligible agencies, consistent with the provisions
of the State plan under section 704 setting forth the design
of the State for establishing a statewide network of centers
for independent living.
``(2) Selection.--In selecting from among eligible agencies
in awarding a grant under this part for a new center for
independent living--
``(A) the director of the designated State unit and the
chairperson of, or other individual designated by, the
Statewide Independent Living Council acting on behalf of and
at the direction of the Council, shall jointly appoint a peer
review committee that shall rank applications in accordance
with the standards and assurances set forth in section 725
and criteria jointly established by such director and such
chairperson or individual;
``(B) the peer review committee shall consider the ability
of each such applicant to operate a center for independent
living, and shall recommend an applicant to receive a grant
under this section, based on--
``(i) evidence of the need for a center for independent
living, consistent with the State plan;
``(ii) any past performance of such applicant in providing
services comparable to independent living services;
``(iii) the plan for complying with, or demonstrated
success in complying with, the standards and the assurances
set forth in section 725;
``(iv) the quality of key personnel of the applicant and
the involvement of individuals with significant disabilities
by the applicant;
``(v) the budgets and cost-effectiveness of the applicant;
``(vi) the evaluation plan of the applicant; and
``(vii) the ability of such applicant to carry out the
plans; and
``(C) the director of the designated State unit shall award
the grant on the basis of the recommendations of the peer
review committee if the actions of the committee are
consistent with Federal and State law.
``(3) Current centers.--Notwithstanding paragraphs (1) and
(2), a center for independent living that receives assistance
under part B for a fiscal year shall be eligible for a grant
for the subsequent fiscal year under this subsection.
``(e) Order of Priorities.--Unless the director of the
designated State unit and the chairperson of the Council or
other individual designated by the Council acting on behalf
of and at the direction of the Council jointly agree on
another order of priority, the director shall be guided by
the following order of priorities in allocating funds among
centers for independent living within a State, to the extent
funds are available:
``(1) The director of the designated State unit shall
support existing centers for independent living, as described
in subsection (c), that comply with the standards and
assurances set forth in section 725, at the level of funding
for the previous year.
``(2) The director of the designated State unit shall
provide for a cost-of-living increase for such existing
centers for independent living.
``(3) The director of the designated State unit shall fund
new centers for independent living, as described in
subsection (d), that comply with the standards and assurances
set forth in section 725.
``(f) Nonresidential Agencies.--A center that provides or
manages residential housing after October 1, 1994, shall not
be considered to be an eligible agency under this section.
``(g) Review.--
``(1) In general.--The director of the designated State
unit shall periodically review each center receiving funds
under this section to determine whether such center is in
compliance with the standards and assurances set forth in
section 725. If the director of the designated State unit
determines that any center receiving funds under this section
is not in compliance with the standards and assurances set
forth in section 725, the director of the designated State
unit shall immediately notify such center that it is out of
compliance.
``(2) Enforcement.--The director of the designated State
unit shall terminate all funds under this section to such
center 90 days after--
``(A) the date of such notification; or
``(B) in the case of a center that requests an appeal under
subsection (i), the date of any final decision under
subsection (i),
unless the center submits a plan to achieve compliance within
90 days and such plan is approved by the director, or if
appealed, by the Commissioner.
``(h) On-Site Compliance Review.--The director of the
designated State unit shall annually conduct onsite
compliance reviews of at least 15 percent of the centers for
independent living that receive funding under this section in
the State. Each team that conducts on-site compliance review
of centers for independent living shall include at least one
person who is not an employee of the designated State agency,
who has experience in the operation of centers for
independent living, and who is jointly selected by the
director of the designated State unit and the chairperson of
or other individual designated by the Council acting on
behalf of and at the direction of the Council. A copy of this
review shall be provided to the Commissioner.
``(i) Adverse Actions.--If the director of the designated
State unit proposes to take a significant adverse action
against a center for independent living, the center may seek
mediation and conciliation to be provided by an individual or
individuals who are free of conflicts of interest identified
by the chairperson of or other individual designated by the
Council. If the issue is not resolved through the mediation
and conciliation, the center may appeal the proposed adverse
action to the Commissioner for a final decision.
``SEC. 724. CENTERS OPERATED BY STATE AGENCIES.
``A State that receives assistance for fiscal year 1993
with respect to a center in accordance with subsection (a) of
this section (as in effect on the day before the date of
enactment of the Rehabilitation Act Amendments of 1998) may
continue to receive assistance under this part for fiscal
year 1994 or a succeeding fiscal year if, for such fiscal
year--
``(1) no nonprofit private agency--
``(A) submits an acceptable application to operate a center
for independent living for the fiscal year before a date
specified by the Commissioner; and
``(B) obtains approval of the application under section 722
or 723; or
``(2) after funding all applications so submitted and
approved, the Commissioner determines that funds remain
available to provide such assistance.
``SEC. 725. STANDARDS AND ASSURANCES FOR CENTERS FOR
INDEPENDENT LIVING.
``(a) In General.--Each center for independent living that
receives assistance under this part shall comply with the
standards set out in subsection (b) and provide and comply
with the assurances set out in subsection (c) in order to
ensure that all programs and activities under this part are
planned, conducted, administered, and evaluated in a manner
consistent with the purposes of this chapter and the
objective of providing assistance effectively and
efficiently.
``(b) Standards.--
``(1) Philosophy.--The center shall promote and practice
the independent living philosophy of--
``(A) consumer control of the center regarding
decisionmaking, service delivery, management, and
establishment of the policy and direction of the center;
``(B) self-help and self-advocacy;
``(C) development of peer relationships and peer role
models; and
``(D) equal access of individuals with significant
disabilities to society and to all services, programs,
activities, resources, and facilities, whether public or
private and regardless of the funding source.
``(2) Provision of services.--The center shall provide
services to individuals with a range of significant
disabilities. The center shall provide services on a cross-
disability basis (for individuals with all different types of
significant disabilities, including individuals with
significant disabilities who are members of populations that
are unserved or underserved by programs under this title).
Eligibility for services at any center for independent living
shall be determined by the center, and shall not be based on
the presence of any one or more specific significant
disabilities.
[[Page S167]]
``(3) Independent living goals.--The center shall
facilitate the development and achievement of independent
living goals selected by individuals with significant
disabilities who seek such assistance by the center.
``(4) Community options.--The center shall work to increase
the availability and improve the quality of community options
for independent living in order to facilitate the development
and achievement of independent living goals by individuals
with significant disabilities.
``(5) Independent living core services.--The center shall
provide independent living core services and, as appropriate,
a combination of any other independent living services.
``(6) Activities to increase community capacity.--The
center shall conduct activities to increase the capacity of
communities within the service area of the center to meet the
needs of individuals with significant disabilities.
``(7) Resource development activities.--The center shall
conduct resource development activities to obtain funding
from sources other than this chapter.
``(c) Assurances.--The eligible agency shall provide at
such time and in such manner as the Commissioner may require,
such satisfactory assurances as the Commissioner may require,
including satisfactory assurances that--
``(1) the applicant is an eligible agency;
``(2) the center will be designed and operated within local
communities by individuals with disabilities, including an
assurance that the center will have a Board that is the
principal governing body of the center and a majority of
which shall be composed of individuals with significant
disabilities;
``(3) the applicant will comply with the standards set
forth in subsection (b);
``(4) the applicant will establish clear priorities through
annual and 3-year program and financial planning objectives
for the center, including overall goals or a mission for the
center, a work plan for achieving the goals or mission,
specific objectives, service priorities, and types of
services to be provided, and a description that shall
demonstrate how the proposed activities of the applicant are
consistent with the most recent 3-year State plan under
section 704;
``(5) the applicant will use sound organizational and
personnel assignment practices, including taking affirmative
action to employ and advance in employment qualified
individuals with significant disabilities on the same terms
and conditions required with respect to the employment of
individuals with disabilities under section 503;
``(6) the applicant will ensure that the majority of the
staff, and individuals in decisionmaking positions, of the
applicant are individuals with disabilities;
``(7) the applicant will practice sound fiscal management,
including making arrangements for an annual independent
fiscal audit, notwithstanding section 7502(a)(2)(A) of title
31, United States Code;
``(8) the applicant will conduct annual self-evaluations,
prepare an annual report, and maintain records adequate to
measure performance with respect to the standards, containing
information regarding, at a minimum--
``(A) the extent to which the center is in compliance with
the standards;
``(B) the number and types of individuals with significant
disabilities receiving services through the center;
``(C) the types of services provided through the center and
the number of individuals with significant disabilities
receiving each type of service;
``(D) the sources and amounts of funding for the operation
of the center;
``(E) the number of individuals with significant
disabilities who are employed by, and the number who are in
management and decisionmaking positions in, the center; and
``(F) a comparison, when appropriate, of the activities of
the center in prior years with the activities of the center
in the most recent year;
``(9) individuals with significant disabilities who are
seeking or receiving services at the center will be notified
by the center of the existence of, the availability of, and
how to contact, the client assistance program;
``(10) aggressive outreach regarding services provided
through the center will be conducted in an effort to reach
populations of individuals with significant disabilities that
are unserved or underserved by programs under this title,
especially minority groups and urban and rural populations;
``(11) staff at centers for independent living will receive
training on how to serve such unserved and underserved
populations, including minority groups and urban and rural
populations;
``(12) the center will submit to the Statewide Independent
Living Council a copy of its approved grant application and
the annual report required under paragraph (8);
``(13) the center will prepare and submit a report to the
designated State unit or the Commissioner, as the case may
be, at the end of each fiscal year that contains the
information described in paragraph (8) and information
regarding the extent to which the center is in compliance
with the standards set forth in subsection (b); and
``(14) an independent living plan described in section
704(e) will be developed unless the individual who would
receive services under the plan signs a waiver stating that
such a plan is unnecessary.
``SEC. 726. DEFINITIONS.
``As used in this part, the term `eligible agency' means a
consumer-controlled, community-based, cross-disability,
nonresidential private nonprofit agency.
``SEC. 727. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
part such sums as may be necessary for each of the fiscal
years 1998 through 2004.
``CHAPTER 2--INDEPENDENT LIVING SERVICES FOR OLDER INDIVIDUALS WHO ARE
BLIND
``SEC. 751. DEFINITION.
``For purposes of this chapter, the term `older individual
who is blind' means an individual age 55 or older whose
significant visual impairment makes competitive employment
extremely difficult to attain but for whom independent living
goals are feasible.
``SEC. 752. PROGRAM OF GRANTS.
``(a) In General.--
``(1) Authority for grants.--Subject to subsections (b) and
(c), the Commissioner may make grants to States for the
purpose of providing the services described in subsection (d)
to older individuals who are blind.
``(2) Designated state agency.--The Commissioner may not
make a grant under subsection (a) unless the State involved
agrees that the grant will be administered solely by the
agency described in section 101(a)(2)(A)(i).
``(b) Contingent Competitive Grants.--Beginning with fiscal
year 1993, in the case of any fiscal year for which the
amount appropriated under section 753 is less than
$13,000,000, grants made under subsection (a) shall be--
``(1) discretionary grants made on a competitive basis to
States; or
``(2) grants made on a noncompetitive basis to pay for the
continuation costs of activities for which a grant was
awarded--
``(A) under this chapter; or
``(B) under part C, as in effect on the day before the date
of enactment of the Rehabilitation Act Amendments of 1992.
``(c) Contingent Formula Grants.--
``(1) In general.--In the case of any fiscal year for which
the amount appropriated under section 753 is equal to or
greater than $13,000,000, grants under subsection (a) shall
be made only to States and shall be made only from allotments
under paragraph (2).
``(2) Allotments.--For grants under subsection (a) for a
fiscal year described in paragraph (1), the Commissioner
shall make an allotment to each State in an amount determined
in accordance with subsection (j), and shall make a grant to
the State of the allotment made for the State if the State
submits to the Commissioner an application in accordance with
subsection (i).
``(d) Services Generally.--The Commissioner may not make a
grant under subsection (a) unless the State involved agrees
that the grant will be expended only for purposes of--
``(1) providing independent living services to older
individuals who are blind;
``(2) conducting activities that will improve or expand
services for such individuals; and
``(3) conducting activities to help improve public
understanding of the problems of such individuals.
``(e) Independent Living Services.--Independent living
services for purposes of subsection (d)(1) include--
``(1) services to help correct blindness, such as--
``(A) outreach services;
``(B) visual screening;
``(C) surgical or therapeutic treatment to prevent,
correct, or modify disabling eye conditions; and
``(D) hospitalization related to such services;
``(2) the provision of eyeglasses and other visual aids;
``(3) the provision of services and equipment to assist an
older individual who is blind to become more mobile and more
self-sufficient;
``(4) mobility training, Braille instruction, and other
services and equipment to help an older individual who is
blind adjust to blindness;
``(5) guide services, reader services, and transportation;
``(6) any other appropriate service designed to assist an
older individual who is blind in coping with daily living
activities, including supportive services and rehabilitation
teaching services;
``(7) independent living skills training, information and
referral services, peer counseling, and individual advocacy
training; and
``(8) other independent living services.
``(f) Matching Funds.--
``(1) In general.--The Commissioner may not make a grant
under subsection (a) unless the State involved agrees, with
respect to the costs of the program to be carried out by the
State pursuant to such subsection, to make available
(directly or through donations from public or private
entities) non-Federal contributions toward such costs in an
amount that is not less than $1 for each $9 of Federal funds
provided in the grant.
``(2) Determination of amount contributed.--Non-Federal
contributions required in paragraph (1) may be in cash or in
kind, fairly evaluated, including plant, equipment, or
services. Amounts provided by the Federal Government, or
services assisted or subsidized to any significant extent by
the Federal Government, may not be included in determining
the amount of such non-Federal contributions.
[[Page S168]]
``(g) Certain Expenditures of Grants.--A State may expend a
grant under subsection (a) to carry out the purposes
specified in subsection (d) through grants to public and
nonprofit private agencies or organizations.
``(h) Requirement Regarding State Plan.--The Commissioner
may not make a grant under subsection (a) unless the State
involved agrees that, in carrying out subsection (d)(1), the
State will seek to incorporate into the State plan under
section 704 any new methods and approaches relating to
independent living services for older individuals who are
blind.
``(i) Application for Grant.--
``(1) In general.--The Commissioner may not make a grant
under subsection (a) unless an application for the grant is
submitted to the Commissioner and the application is in such
form, is made in such manner, and contains such agreements,
assurances, and information as the Commissioner determines to
be necessary to carry out this section (including agreements,
assurances, and information with respect to any grants under
subsection (j)(4)).
``(2) Contents.--An application for a grant under this
section shall contain--
``(A) an assurance that the agency described in subsection
(a)(2) will prepare and submit to the Commissioner a report,
at the end of each fiscal year, with respect to each project
or program the agency operates or administers under this
section, whether directly or through a grant or contract,
which report shall contain, at a minimum, information on--
``(i) the number and types of older individuals who are
blind and are receiving services;
``(ii) the types of services provided and the number of
older individuals who are blind and are receiving each type
of service;
``(iii) the sources and amounts of funding for the
operation of each project or program;
``(iv) the amounts and percentages of resources committed
to each type of service provided;
``(v) data on actions taken to employ, and advance in
employment, qualified individuals with significant
disabilities, including older individuals who are blind; and
``(vi) a comparison, if appropriate, of prior year
activities with the activities of the most recent year;
``(B) an assurance that the agency will--
``(i) provide services that contribute to the maintenance
of, or the increased independence of, older individuals who
are blind; and
``(ii) engage in--
``(I) capacity-building activities, including collaboration
with other agencies and organizations;
``(II) activities to promote community awareness,
involvement, and assistance; and
``(III) outreach efforts; and
``(C) an assurance that the application is consistent with
the State plan for providing independent living services
required by section 704.
``(j) Amount of Formula Grant.--
``(1) In general.--Subject to the availability of
appropriations, the amount of an allotment under subsection
(a) for a State for a fiscal year shall be the greater of--
``(A) the amount determined under paragraph (2); or
``(B) the amount determined under paragraph (3).
``(2) Minimum allotment.--
``(A) States.--In the case of the several States, the
District of Columbia, and the Commonwealth of Puerto Rico,
the amount referred to in subparagraph (A) of paragraph (1)
for a fiscal year is the greater of--
``(i) $225,000; or
``(ii) an amount equal to one-third of one percent of the
amount appropriated under section 753 for the fiscal year and
available for allotments under subsection (a).
``(B) Certain territories.--In the case of Guam, American
Samoa, the United States Virgin Islands, and the Commonwealth
of the Northern Mariana Islands, the amount referred to in
subparagraph (A) of paragraph (1) for a fiscal year is
$40,000.
``(3) Formula.--The amount referred to in subparagraph (B)
of paragraph (1) for a State for a fiscal year is the product
of--
``(A) the amount appropriated under section 753 and
available for allotments under subsection (a); and
``(B) a percentage equal to the quotient of--
``(i) an amount equal to the number of individuals residing
in the State who are not less than 55 years of age; divided
by
``(ii) an amount equal to the number of individuals
residing in the United States who are not less than 55 years
of age.
``(4) Disposition of certain amounts.--
``(A) Grants.--From the amounts specified in subparagraph
(B), the Commissioner may make grants to States whose
population of older individuals who are blind has a
substantial need for the services specified in subsection (d)
relative to the populations in other States of older
individuals who are blind.
``(B) Amounts.--The amounts referred to in subparagraph (A)
are any amounts that are not paid to States under subsection
(a) as a result of--
``(i) the failure of any State to submit an application
under subsection (i);
``(ii) the failure of any State to prepare within a
reasonable period of time such application in compliance with
such subsection; or
``(iii) any State informing the Commissioner that the State
does not intend to expend the full amount of the allotment
made for the State under subsection (a).
``(C) Conditions.--The Commissioner may not make a grant
under subparagraph (A) unless the State involved agrees that
the grant is subject to the same conditions as grants made
under subsection (a).
``SEC. 753. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
chapter such sums as may be necessary for each of the fiscal
years 1998 through 2004.''.
SEC. 11. HELEN KELLER NATIONAL CENTER ACT.
(a) General Authorization of Appropriations.--The first
sentence of section 205(a) of the Helen Keller National
Center Act (29 U.S.C. 1904(a)) is amended by striking ``1993
through 1997'' and inserting ``1998 through 2000''.
(b) Helen Keller National Center Federal Endowment Fund.--
The first sentence of section 208(h) of such Act (29 U.S.C.
1907(h)) is amended by striking ``1993 through 1997'' and
inserting ``1998 through 2000''.
(c) Registry.--Such Act (29 U.S.C. 1901 et seq.) is amended
by adding at the end the following:
``SEC. 209. NATIONAL REGISTRY AND AUTHORIZATION OF
APPROPRIATIONS.
``(a) The Center shall establish and maintain a national
registry of individuals who are deaf-blind, using funds made
available under subsection (b).
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to carry out subsection (a)
such sums as may be necessary for each of fiscal years 1998
through 2000.''.
SEC. 12. PRESIDENT'S COMMITTEE ON NATIONAL EMPLOY THE
PHYSICALLY HANDICAPPED WEEK.
Section 2(2) of the Joint Resolution entitled ``Joint
Resolution authorizing an appropriation for the work of the
President's Committee on National Employ the Physically
Handicapped Week'', approved July 11, 1949 (36 U.S.C.
155b(2)) is amended by inserting ``solicit,'' before
``accept,''.
SEC. 13. PEER REVIEW.
Part B of title IV of the Department of Education
Organization Act (20 U.S.C. 3471 et seq.) is amended by
inserting before section 427 the following:
``SEC. 426A. PEER REVIEW.
``The Federal Advisory Committee Act (5 U.S.C. App.) shall
not apply to peer review panels established by the Secretary
to evaluate applications for financial assistance awarded on
a competitive basis.''.
SEC. 14. CONFORMING AMENDMENTS.
(a) Preparation.--After consultation with the appropriate
committees of Congress and the Director of the Office of
Management and Budget, the Secretary of Education shall
prepare recommended legislation containing technical and
conforming amendments to reflect the changes made by this
Act.
(b) Submission to Congress.--Not later than 6 months after
the date of enactment of this Act, the Secretary of Education
shall submit to Congress the recommended legislation referred
to under subsection (a).
Mr. JEFFORDS. Mr. President, I am pleased to join my colleagues
Senators DeWine, Kennedy, Wellstone, Harkin, Frist, Collins, Chafee,
and Reed in introducing the Rehabilitation Act Amendments of 1998. We
began the process of drafting this bipartisan, consensus-based
legislation shortly after completing the reauthorization of the
Individuals with Disabilities Education Act (IDEA). Just as we sought
the assistance of the disability community and professionals who serve
individuals with disabilities in determining the direction we took in
drafting the IDEA legislation, so we did with this bill. Just as we
welcomed the assistance of the Administration in drafting the IDEA
legislation, so we did with this bill.
As a result, this legislation will open up more employment
opportunities to individuals with disabilities. It will also provide
State vocational rehabilitation agencies and others who provide
employment-related assistance to individuals with disabilities with the
tools they need to provide appropriate, timely help to individuals with
disabilities who want to work. The combination of the 1997
reauthorization of IDEA and this reauthorization brings us closer to a
seamless system in which parents of children with disabilities will
envision and expect greater opportunities for their children to have
productive and satisfying lives as adults.
The Rehabilitation Act Amendments of 1997 will increase opportunities
for individuals with disabilities to prepare for, secure, maintain, and
regain employment by linking vocational rehabilitation services to
those services that are available under current State workforce systems
and those that will be available under the Workforce Investment
Partnership Act of 1997. It will simplify access to vocational
rehabilitation services and streamline the administration of the
vocational rehabilitation program. It makes additional improvements in
discretionary
[[Page S169]]
programs related to personnel training, research, and demonstration
projects and consumer-controlled Centers for Independent Living. It
provides greater access to information technology. The reauthorization
will extend through fiscal year 2004.
The bill includes extensive links between vocational rehabilitation
agencies and State workforce systems. For example, amendments related
to linkage are found throughout the bill in sections pertaining to the
findings and purposes of the legislation, definitions, program
administration, reports, information dissemination, and State plan
requirements, including those concerning data reporting. Complementary
and parallel provisions to promote linkage between vocational
rehabilitation agencies and State workforce systems also are included
in the Workforce Investment Partnership Act of 1997.
The bill makes important changes in title I of the Act. The State
plan requirements have been rewritten to simplify administration of the
vocational rehabilitation program and reinforce its intent, helping
individuals secure employment. The amendments reduce the 36 State plan
requirements in current law to 24 and require the submission of one
State plan, with amendments thereafter under certain circumstances. The
bill allows, when a State is operating under an order of selection, for
core services to be available to individuals with disabilities who do
not meet a State's criteria for full services from the vocational
rehabilitation agency. The legislation gives vocational rehabilitation
agencies the ability to secure financial support from other entities
who could or should pay for certain services needed by an individual
with a disability, who is being assisted by the vocational
rehabilitation agency to prepare for or secure a job. The bill requires
State vocational rehabilitation agencies and State Rehabilitation
Councils to jointly develop and conduct a comprehensive needs
assessment every three years. Based on such an assessment, they will
annually set and report on progress in achieving employment goals set
for individuals with disability. The bill simplifies procedures for
establishing eligibility, by requiring consideration of existing
evaluating information in determining an individual's eligibility for
vocational rehabilitation services. The bill strengthens eligible
individuals' roles in developing their individualized rehabilitation
employment plans. Such individuals will be given greater flexibility in
how they develop their plans. The amendments give all States dollars
for inservice training, and State allotments for training dollars will
increase with increases in the Consumer Price Index. The bill requires
that voluntary mediation be available for resolving disputes between
vocational rehabilitation agencies and individuals with disabilities.
The bill selectively amends other titles in the Rehabilitation Act.
Title II, which authorizes the National Institute on Disability and
Rehabilitation Research, is amended to require that all funding
priorities of the Institute be derived from a five-year plan that will
be subjected to public comment and then submitted to Congress. The bill
expands the authority of the Institute to allow funding of initiatives
related to the quality assurance of assistive technology and the
effectiveness of alternative medicine when used to treat individuals
with disabilities. The legislation streamlines and updates title III of
the Act, which authorizes training and demonstration activities, by
clearly delineating funding priorities, simplifying the notification of
interested parties about upcoming grant opportunities, and permitting
funding for training of personnel in one-stop centers so that they will
be more able to appropriately and effectively assist individuals with
disabilities seeking employment-related assistance through such
centers.
With guidance from Senator Dodd, we strengthened the provisions in
title V of the Act pertaining to the accessibility of electronic and
information technology for individuals with disabilities by designating
that the Access Board to write regulations and by requiring the Office
of Management and Budget to oversee Federal agencies' compliance with
such regulations. The legislation amends title VI of the Act by adding
a new initiative, Projects in Telecommuting and Self-Employment for
Individuals with Disabilities, and by permitting Projects with Industry
to assist eligible individuals without waiting for referrals or
eligibility status determinations from vocational rehabilitation
agencies and to provide training and/or placement services.
These amendments build on and complement those that were enacted in
1992. The 1992 amendments to the Rehabilitation Act had a significant,
positive effect in my State, Vermont.
There, one out of every eight residents is disabled. The Division of
Vocational Rehabilitation has enabled many Vermonters with disabilities
to exercise the choices the 1992 amendments triggered, to become
employed, and to live successfully in their communities. In 1996,
Vermont's vocational rehabilitation program provided an array of
services to almost 5,000 Vermonters, while directly assisting 850
individuals with disabilities to become successfully employed.
The benefits of Vermont's efforts are many. Most important is the
fact that Vermont consumers of vocational rehabilitation services who
secure employment enjoy an average increase in income exceeding $8,000
per year. Seventy-three percent of these individuals enter the
workforce earning more than minimum wage. Seventy-eight percent of
those Vermonters who were assisted by the Vermont Division of
Rehabilitation in 1996 remain employed today. In addition, the Vermont
Consumer Choice Project, made possible by the 1992 amendments, has
allowed my State to create organizational structures, policies and
practices that have resulted in a greater degree of informed choice for
individuals seeking and receiving vocational rehabilitation services.
The Rehabilitation Act Amendments of 1998 truly reflect a team effort
by committed Senators, their staff, Federal officials, individuals with
disabilities, rehabilitation professionals and others who know through
experience that for individuals with disabilities, as for other
individuals, having a job and liking it are the bottom line. Through
these amendments we have secured and extended that bottom line for
individuals with disabilities--more jobs, better jobs--into the next
century.
Mr. KENNEDY. Mr. President, I was proud to be a sponsor of the
Rehabilitation Act Amendments of 1992, and I am proud to support the
current reauthorization. I commend Senator Jeffords, Senator DeWine,
and Senator Wellstone for their leadership in expediting our
consideration of this important legislation. And I commend all the
staff members for their skillful work in making this a successful
bipartisan consensus bill. I especially thank Senator Tom Harkin for
his leadership and continued commitment to individuals with
disabilities in this country.
The Rehabilitation Amendments of 1992 developed the foundation for a
rehabilitation system which recognizes competence and choice, and which
gives individuals with disabilities the services and support they need
to live, work and participate as fully as possible in their
communities. For millions of individuals with disabilities, vocational
rehabilitation has meant the difference between dependence and
independence, between lost potential and productive careers.
Most important, the vocational rehabilitation in this country
provides the necessary skills and support to keep the promise of the
Americans with Disabilities Act--so that all individuals with
disabilities, especially those with significant disabilities, will have
the opportunity to achieve their full potential and be part of the
mainstream of American life.
The bill being introduced today builds on the gains of the past two
decades, by strengthening employment possibilities, encouraging self-
employment, providing better outreach to underserved populations, and
streamlining the role of the government. This bill also establishes a
stronger linkage between vocational rehabilitation and the larger
statewide job training system.
I look forward to working with my colleagues in Congress to enact
this important legislation, so that the talents, strengths, competence
and interests of all individuals with disabilities will be recognized,
enhanced, and fairly rewarded in communities and workplaces across the
nation.
[[Page S170]]
Mr. HARKIN. Mr. President, I am pleased to join my colleagues in co-
sponsoring the Rehabilitation Act Amendments of 1998. I particularly
wish to thank my Republican colleagues, Senators DeWine and Jeffords,
for developing this bill in a bipartisan manner. The bill that we
introduce today represents the work of Republicans, Democrats, and the
Administration. I am pleased that our work together continues the long
history of bipartisanship in developing legislation that addresses the
needs of persons with disabilities.
The State Vocational Rehabilitation Service Program provides $2.2
billion in formula grant assistance to States to help individuals with
disabilities prepare for an engage in gainful employment. Since
established by the Smith-Fess Act 75 years ago, state vocational
rehabilitation programs have served some nine million people. This
program promotes economic independence for persons with disabilities,
and the numbers reflect that:
The percentage of individuals who reported that their income was
their primary source of support increased from 18% at the time of
application to 71% at the time of exit from the program;
The percentage of individuals with earned income of any kind
increased from 22% at application to 93% at program exit; and
The number of individuals working at or above the Federal minimum
wage rate increased from 18% at application to 86% at closure.
In 1992, Congress made major changes to the Act, namely, increasing
consumer participation, streamlining processes, and reducing
unnecessary paperwork. In the bill we introduce today, we have built on
the `92 amendments. The bill preserves and strengthens the themes of
the `92 amendments while fine-tuning and aligning the Act with other
workforce reforms so that individuals with disabilities can benefit
from them.
This bill strengthens the role of the consumer throughout the
vocational rehabilitation process, particularly in the development of
the individual's employment plan. It reduces unnecessary burdens on
State VR agencies by streamlining the State plan. The bill also
refocuses the State plan on improving outcomes for individuals with
disabilities by requiring States to develop, jointly with the State
Rehabilitation Council, annual goals and strategies for improving
results.
The due process protections provided in the State Grant program to VR
applicants and clients are strengthened by eliminating State VR agency
review of decisions by impartial hearing officers. The bill would also
require States to provide for voluntary mediation (modeled on the
provisions in IDEA) as another mechanism to resolve disputes.
Access of Social Security beneficiaries to VR services if
facilitated, and unnecessary gatekeeping is eliminated, by making SSI
and SSDI beneficiaries presumptively eligible for services under the VR
State Grants program. This change would eliminate the need for the VR
agency to determine on a case-by-case basis whether these individuals
``require'' VR services in order to gain employment.
Of particular interest to me and to Senator Dodd are the changes to
Section 508 of the Act which pertain to electronic and information
technology accessibility. This bill strengthens the provisions
regarding procurement by Federal agencies of technology that is
accessible to individuals with disabilities.
I am pleased to co-sponsor this bill and look forward to its passage.
Mr. FRIST. Mr. President. I am pleased to join the Chairman of the
Employment and Training Subcommittee, Senator DeWine and the Chairman
of the Labor and Human Resources Committee Senator Jeffords in
introducing the Rehabilitation Act Amendments of 1998. I am grateful
for their strong leadership in drafting this important legislation.
The vocational rehabilitation program was begun in 1921 to help
disabled war veterans obtain rehabilitation and employment assistance.
Today it is a major source of employment assistance for many
individuals with disabilities, including individuals with severe
disabilities. Vocational rehabilitation programs, although operated by
State vocational rehabilitation agencies are located throughout a
State. These programs help about a million individuals with
disabilities a year, about 20 percent of whom enter the competitive
labor market within 12 months. The average cost per person aided is
about $2,500.
The Tennessee Vocational Rehabilitation Program provides one example
of what can happen when the focus of an agency is clear--getting people
with disabilities jobs. In 1996, this program in my State served 26,032
individuals with disabilities of which 81 percent were severely
disabled. Of the individuals served 5,820 were successfully employed
with 90.4 percent of them working in the competitive labor market. The
annualized income of these 5,820 individuals, once they entered the
work force increased from $8.732 million to $64.233 million. I am proud
of this record, while realizing that more can and should be done.
The main goal of the reauthorization, which has previously been
discussed in detail today by Senators DeWine and Jeffords is to
increase opportunities for individuals with disabilities to prepare
for, secure, maintain, and regain employment. There is also a great
effort to simplify access to vocational rehabilitation services, while
reducing costs and increasing effectiveness through streamlining the
administration of the vocational rehabilitation program.
Also included in this reauthorization is the effort that I began as
Chairman of the Subcommittee on Disability Policy in the 104th
Congress, the linking of vocational rehabilitation programs to a new
state system of work force development. The intention is to create a
seamless system of increasing employment assistance for individuals
with disabilities with a new state workforce system. The
reauthorization of the Rehabilitation Act includes this important goal
by linking vocational rehabilitation services to those that will be
available under the Workforce Investment Partnership Act of 1997.
I would like to acknowledge the bipartisan effort brought forth to
build the consensus that is evident by this bill. I am pleased to see
the tradition of bipartisanship corporation on disability policy issues
continued through this effort. I would especially like to recognize
Aaron Grau with Senator DeWine, and Dr. Patricia Morrissey with Senator
Jeffords for their hard work and dedication which has made legislation
a reality.
I am confident that the Rehabilitation Act Amendments of 1998 will
take this seventy-seven year old program into the next century as a
strong and integral part of providing opportunities for individuals
with disabilities to prepare for, secure, maintain, and regain
employment.
Ms. COLLINS. Mr. President, I am pleased to join my distinguished
colleagues as one of the original cosponsors of the Rehabilitation Act
Amendments of 1998. The Rehabilitation Act, originally adopted almost
80 years ago, has developed during succeeding years into one of this
country's most important efforts assisting disabled persons in
achieving their potentials for employment.
This law authorizes programs helping persons with disabilities attain
their full employment potential as self-supporting, contributing
members of society. It provides supported employment services for
persons who cannot work independently and offers the services disabled
persons need to lead independent lives even if an individual is not
capable of working. Through the Rehabilitation Act, federal-state
programs provide comprehensive services that help persons with physical
and mental disabilities become employable, achieve independence, and
participate more fully in society.
The Rehabilitation Amendments of 1998, which we are introducing
today, reaffirm the commitment of the federal government to its
disabled citizens and continues the progress we have seen in previous
reauthorizations. This bill advances Federal-State rehabilitation
efforts in numerous ways. This morning I want to mention three of the
changes I believe are the most significant: first, the linking of
vocational rehabilitation services to other workforce investment
programs; second, the authorization of core services to individuals not
eligible for services under an order of selection; and third, the
simplification of access to vocational rehabilitation services.
[[Page S171]]
This bill, which will be incorporated into the S. 1186, the Workforce
Investment Partnership Act, will be functionally linked to the state
workforce, job training, and vocational and adult education systems
authorized by S. 1186. The Rehabilitation Act will thereby become part
of the effort by Congress to replace a fragmented array of programs
with an integrated federal system of workforce development without
sacrificing the integrity and effectiveness of the vocational
rehabilitation program. This process is already underway in Maine
through the Maine Department of Labor's one stop career centers. This
legislation will make it easier for Maine and other states to create a
seamless system of employment assistance for our disabled citizens.
The second improvement is the authorization of core services to all
eligible disabled persons. Because the Rehabilitation Act requires the
states to serve the most severely disabled individuals, large numbers
of individuals with lesser disabilities have been cut off from
services. The Rehabilitation Act Amendments of 1998 will permit a state
to provide core services to those individuals who are not eligible for
full services under the state's criteria for order of selection. Under
this provision of the law the states may provide individualized
counseling and guidance, individualized vocational exploration,
supervised job placement referrals, and assistance obtaining reasonable
accommodations even if the individual does not qualify for actual
rehabilitation services. This will extend important and highly
effective services to a large, deserving population and should greatly
enhance these individuals' success in obtaining employment.
A third advance is the simplification of the procedures by which
eligibility for rehabilitation is established. Under these amendments,
individuals receiving Supplemental Security Income or Social Security
Disability Income are presumed to be eligible for services providing
they intend to seek employment and have an impediment to employment
caused by their disability.
In addition to these significant changes that directly affect the
clients of the vocational rehabilitation program, this act makes
important changes that will make the administration of the vocational
rehabilitation program more efficient and reduce a state's
administrative burden. One example of this is the coordination of a
states vocational rehabilitation plan with the submission of the other
job training plans submitted under the Workforce Investment Partnership
Act. This will help to eliminate duplicative provisions, submissions
and reports.
Another is the requirement for cooperation and collaboration through
cooperative agreements among the state's vocational rehabilitation
agency and other components of a state's workforce investment system.
While these agreements will be most visible as they affect access and
delivery of services, they will also bring about coordination of
information and financial management systems leading to simplified and
improved management of a state's job training efforts.
I am proud to cosponsor the reauthorization of an act which has
helped so many disabled individuals achieve employment and independent
lives.
______
By Mr. SHELBY:
S. 1580. A bill to amend the Balanced Budget Act of 1997 to
place an 18-month moratorium on the prohibition of payment
under the medicare program for home health services
consisting of venipuncture solely for the purpose of
obtaining a blood sample, and to require the Secretary of
Health and Human Services to study potential fraud and abuse
under such program with respect to such services; to the
Committee on Finance.
The Medicare Venipuncture Assessment Act of 1998
Mr. SHELBY. Mr. President, the Balanced Budget Act (BBA) of 1997 took
important steps to begin to combat the financial problems that have
plagued the Medicare system for some time. However, the BBA included a
provision that may disqualify Medicare beneficiaries who receive home
health care stemming from their need for venipuncture services. Many
Alabamians who rely on the Medicare home health care program have
contacted me expressing their concern with this provision. Much of the
concern has resulted from a lack of information as to the true effects
of this provision.
Therefore, I rise today to offer the Medicare Venipuncture Assessment
Act of 1998. This legislation will provide an eighteen month moratorium
on the venipuncture provision included in last year's BBA, and direct
the Secretary of Health and Human Services (HHS) to conduct a study to
determine what the specific effects will be of doing away with
venipuncture as a qualifying skill for home health care.
In addition, this legislation provides a window of time for Congress
to address any problems found by HHS, and craft an appropriate solution
that protects the seniors who receive home health care, without
perpetuating fraud and abuse in the system. But perhaps the most
important aspect of the Medicare Venipuncture Assessment Act is that it
will provide much needed piece of mind to many of our seniors. Mr.
President, we owe it to our constituents to separate fact from fiction
with regard to this matter, and fully inform them of the effects of the
venipuncture provision contained in last year's BBA.
If administered correctly, home health care can be a cost effective
alternative to nursing home and hospital based care. This legislation
protects the Medicare home health care system by providing specific
statutory action to root out fraud and abuse in the program, while
ensuring that the seniors who truly need home care receive it. I
strongly encourage my colleagues to join me in this effort by
cosponsoring the Medicare Venipuncture Assessment Act of 1998.
______
By Mr. LUGAR (for himself, Mr. Harkin, Mr. McConnell and Mr.
Leahy):
S. 1581. A bill to reauthorize child nutrition programs, and for
other purposes; to the Committee on Agriculture, Nutrition, and
Forestry.
THE CHILD NUTRITION REAUTHORIZATION ACT OF 1998
Mr. LUGAR. Mr. President, I rise today to introduce legislation to
reauthorize those child nutrition provisions expiring in 1998. The
child nutrition programs have been critically important in helping meet
the nutritional needs of our children. Although not all child nutrition
programs need to be reauthorized, this process gives us the opportunity
to review all programs under the National School Lunch Act and the
Child Nutrition Act of 1966.
As an Indianapolis school board member and the city's mayor in the
late 1960's and early 1970's, I saw firsthand the need to provide
nutritional assistance to children. Since that time, the child
nutrition programs have changed in many ways. Today's programs have
been successful in ensuring that our nation's children have access to
nutritious foods, providing a critical safety net for children.
Although the programs may need some fine tuning, the programs have
ensured that America's school children, in a country of abundance, have
a chance to eat. This is fundamental and something we must preserve.
Some of the larger programs that must be reauthorized include: 1) the
Special Supplemental Nutrition Program for Women, Infants and Children,
often referred to as the WIC program; 2) State Administrative Expenses,
a program which provides grants to states to help cover general
administrative costs associated with child nutrition programs; 3) the
WIC Farmers' Market program which allows states and tribal
organizations to offer special WIC vouchers to buy fresh produce; 4)
the Summer Food Service program which provides reimbursements for meals
served to children in summer programs operated in lower-income areas;
and 5) the requirement to use certain funds to purchase commodities to
maintain commodity assistance for child nutrition programs. In
addition, there are a few other expiring provisions that must be
reauthorized. This bill extends all expiring programs through 2003.
Although it is not necessary to reauthorize the National School Lunch
and Breakfast Programs, we hope to review and improve those programs
during this reauthorization process.
The child nutrition programs continue to successfully feed our
nation's children to help them prepare for the future. In 1997,
approximately 89,000 schools enrolling 46 million children participated
in the National School Lunch program. Although participation in the
school breakfast program is
[[Page S172]]
not as large as that in the school lunch program, it has continued to
grow. Since 1994, school breakfast participation has increased about
13% so that now over 70% of schools operating a school lunch program
also operate a school breakfast program.
The WIC program, which provides nutritious foods and other support to
lower-income infants and children (up to age 5), and pregnant,
postpartum, and breast-feeding women, has been successful at reducing
the number of low-birth-weight babies. Its success has led to strong
support over the years. In 1997, average monthly WIC participation was
7.4 million persons. In many states, the program has reached the long
sought after goal of full funding. This year as we reauthorize the
program, we will look to see if there are ways to make this successful
program run even better.
Senators Harkin, McConnell and Leahy have joined with me today to
introduce this important bill. I wish to stress that this bill is a
starting point for debate on child nutrition reauthorization. I am sure
that the Ranking Minority Member of the Committee as well as the
Chairman and Ranking Minority Member of the subcommittee have
additional ideas to improve these programs. Nutrition programs in the
Congress have a long history of bipartisan support and cooperation and
I am certain that we will continue that tradition. I look forward to
working with them and other members of the Agriculture Committee, on
both sides of the aisle, to craft a thoughtful and sensible bill to
reauthorize the child nutrition programs.
I ask unanimous consent that the text of the bill be printed in full
in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:
S. 1581
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Child
Nutrition Reauthorization Act of 1998''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS
Sec. 101. Grants to integrate food and nutrition projects with
elementary school curricula.
Sec. 102. Summer food service program for children.
Sec. 103. Commodity distribution program.
Sec. 104. Child and adult care food program.
Sec. 105. Pilot projects.
Sec. 106. Training, technical assistance, and food service management
institute.
Sec. 107. Compliance and accountability.
Sec. 108. Information clearinghouse.
Sec. 109. Guidance and grants for accommodating special dietary needs
of children with disabilities.
TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS
Sec. 201. State administrative expenses.
Sec. 202. Special supplemental nutrition program for women, infants,
and children.
Sec. 203. Nutrition education and training.
TITLE I--SCHOOL LUNCH AND RELATED PROGRAMS
SEC. 101. GRANTS TO INTEGRATE FOOD AND NUTRITION PROJECTS
WITH ELEMENTARY SCHOOL CURRICULA.
Section 12(m) of the National School Lunch Act (42 U.S.C.
1760(m)) is amended by striking ``1998'' each place it
appears and inserting ``2003''.
SEC. 102. SUMMER FOOD SERVICE PROGRAM FOR CHILDREN.
Section 13(q) of the National School Lunch Act (42 U.S.C.
1761(q)) is amended by striking ``1998'' and inserting
``2003''.
SEC. 103. COMMODITY DISTRIBUTION PROGRAM.
Section 14(a) of the National School Lunch Act (42 U.S.C.
1762a(a)) is amended by striking ``1998'' and inserting
``2003''.
SEC. 104. CHILD AND ADULT CARE FOOD PROGRAM.
Section 17 of the National School Lunch Act (42 U.S.C.
1766) is amended--
(1) in subsection (c)(6)(B), by striking ``1997'' and
inserting ``2003''; and
(2) in subsection (p), by striking ``1998'' each place it
appears and inserting ``2003''.
SEC. 105. PILOT PROJECTS.
Section 18 of the National School Lunch Act (42 U.S.C.
1769) is amended--
(1) in subsection (c), by striking ``1998'' each place it
appears and inserting ``2003'';
(2) in subsection (e)(5), by striking ``and 1998'' and
inserting ``through 2003'';
(3) in subsections (g)(5) and (h)(5), by striking ``1997''
each place it appears and inserting ``2003''; and
(4) in subsection (i)(8), by striking ``1998'' and
inserting ``2003''.
SEC. 106. TRAINING, TECHNICAL ASSISTANCE, AND FOOD SERVICE
MANAGEMENT INSTITUTE.
Section 21(e)(1) of the National School Lunch Act (42
U.S.C. 1769b-1(e)(1)) is amended by striking ``1998'' and
inserting ``2003''.
SEC. 107. COMPLIANCE AND ACCOUNTABILITY.
Section 22(d) of the National School Lunch Act (42 U.S.C.
1769c(d)) is amended by striking ``1996'' and inserting
``2003''.
SEC. 108. INFORMATION CLEARINGHOUSE.
Section 26(d) of the National School Lunch Act (42 U.S.C.
1769g(d)) is amended in the first sentence by striking
``fiscal year 1998'' and inserting ``each of fiscal years
1998 through 2003''.
SEC. 109. GUIDANCE AND GRANTS FOR ACCOMMODATING SPECIAL
DIETARY NEEDS OF CHILDREN WITH DISABILITIES.
Section 27(c)(6) of the National School Lunch Act (42
U.S.C. 1769h(c)(6)) is amended by striking ``1998'' and
inserting ``2003''.
TITLE II--SCHOOL BREAKFAST AND RELATED PROGRAMS
SEC. 201. STATE ADMINISTRATIVE EXPENSES.
Section 7(g) of the Child Nutrition Act of 1966 (42 U.S.C.
1776(g)) is amended by striking ``1998'' and inserting
``2003''.
SEC. 202. SPECIAL SUPPLEMENTAL NUTRITION PROGRAM FOR WOMEN,
INFANTS, AND CHILDREN.
Section 17 of the Child Nutrition Act of 1966 (42 U.S.C.
1786) is amended in subsections (g)(1), (h)(2)(A),
(h)(10)(A), and (m)(9)(A) by striking ``1998'' each place it
appears and inserting ``2003''.
SEC. 203. NUTRITION EDUCATION AND TRAINING.
Section 19(i)(3) of the Child Nutrition Act of 1966 (42
U.S.C. 1788(i)(3)) is amended--
(1) in the paragraph heading, by striking ``2002'' and
inserting ``2003''; and
(2) in subparagraph (A), by striking ``2002'' and inserting
``2003''.
Mr. HARKIN. Mr. President, I am pleased to have this opportunity to
join Chairman Lugar, Senator McConnell and Senator Leahy in introducing
legislation to reauthorize several programs, primarily relating to
nutrition assistance for children, whose authorizations are set to end
this year. These programs are vitally important to our nation, and I
applaud the introduction of this legislation as a clear demonstration
of our strong support for them in the Agriculture, Nutrition, and
Forestry Committee and our commitment to reenacting authorizing
legislation this year.
The bill introduced today is a simple extension of expiring
authorizations, without amendments or modifications, and thus only
marks the beginning of the legislative process. As Chairman Lugar has
indicated, the Committee will complete the normal child nutrition
reauthorization process, as in past years, allowing for full discussion
and consideration of the programs requiring reauthorization as well as
those having permanent authorizations. I look forward to working with
colleagues on the Committee, in this body, and in the House of
Representatives on this very important legislation.
An essential part of our work on this reauthorization bill involves
examining the child nutrition programs to ensure they are functioning
well, particularly in responding to changing circumstances and new
demands. Another, no less important, part of our efforts must focus on
making the programs more effective by finding better ways to address
longstanding unmet needs and reach individuals who are not adequately
served by the programs in their present form. Of course, we must always
be alert to opportunities for streamlining, paring paperwork and
reducing administrative burdens. A number of thoughtful proposals for
improvements and modifications have already been made, and I know that
we will receive more of them as work on the legislation proceeds.
All of the programs involved in this reauthorization are important,
but I want to mention specifically a few of my priorities. We should
strengthen the school breakfast program in order to reach students who
need school breakfasts but do not currently have access to them. We
also should improve the child nutrition programs in ways that enhance
their effectiveness in helping families obtain quality child care. And
we need to ensure that the summer food program is adequately serving
kids who without it are quite vulnerable once school is out for the
summer. In addition to reauthorizing the Iowa and Kentucky child care
nutrition pilot project, we ought to examine its positive results for
guidance in shaping our national approach to child care nutrition
assistance. With respect to the Special Supplemental Nutrition Program
for Women, Infants, and Children, it is important to continue an
effective competitive bidding system for
[[Page S173]]
infant formula and to extend and strengthen the WIC farmers market
program.
Nothing is more important to the future of our nation than its
children, and nothing is more important to children than the sound
nutrition they need each day. It is beyond dispute that good nutrition
is critical to physical growth, intellectual development and lives that
are healthy, productive and happy. Trying to educate children who are
hungry or malnourished is just as foolish as trying to build a house on
a crumbling foundation. Federal child nutrition programs constitute
investments in the future--of our children and our nation. This
legislation will ensure that we continue to reap the immeasurable
dividends of those wise investments.
Mr. McCONNELL. Mr. President, I rise in strong support of the Child
Nutrition Reauthorization Act of 1998 being introduced today by the
Chairman of the Agriculture, Nutrition and Forestry Committee, Senator
Lugar; Ranking Member Harkin; and Ranking Member Leahy, of the
Research, Nutrition, and General Legislation and myself as Chairman of
that Subcommittee.
In the past, nutrition programs under the jurisdiction of the
Agriculture Committee have been fashioned in a bipartisan manner.
Today's introduction of legislation to reauthorize those child
nutrition programs expiring in 1998, is a starting point.
Our Child Nutrition Programs have played an essential role in
promoting the long-term health of our children. These programs provide
a vital link between diet and health, ensuring that our children have
access to nutritious food.
Mr. President, Chairman Lugar has described the programs that must be
reauthorized and the critical importance these programs serve in
providing a safety net for children. While, I agree that these programs
must be reauthorized, we must not overlook the opportunity to review
the existing structure of these programs, review priorities, and
determine if improvements and streamlining can enhance their
effectiveness.
One area of particular interest to me is a provision expiring under
the National School Lunch Act which required a two state pilot project
for for-profit day care centers in the Child and Adult Care Food
Program. The two states were Kentucky and Iowa. In Kentucky, 242 for-
profit child care centers participate in the demonstration project,
providing meals to over 10,500 children each day.
Many of these child centers are in rural areas or in lower income
municipalities. Without the demonstration project, fees would increase
placing a greater financial burden on parents and some smaller centers
may be forced to close. This demonstration project provides needed
nutritional assistance to financially disadvantaged children. I believe
that continued operation and possible expansion of this type of
demonstration project is essential as we consider policies to help
working families with children.
I am sure Members will have many ideas and changes to improve these
programs.
Mr. President, everyone agrees how critical good nutrition is to our
children's ability to learn. This reauthorization represents our
opportunity to work together to craft a thoughtful bill that will be
the building block to our children's successful learning so they can
have a healthy and productive future.
Mr. LEAHY. Mr. President, I am pleased to join with my colleagues on
the Agriculture, Nutrition, and Forestry Committee, as I have done many
times before on nutrition issues, to introduce a bill that begins the
child nutrition reauthorization process.
For many years on the Committee, when I was Chairman, and later
Ranking Member, we always tried to make our nutrition efforts consensus
bills--agreed to by all members of the Committee. Now as Ranking Member
of the nutrition subcommittee I look forward to working with the
Committee to report out a strong child nutrition reauthorization bill.
The bill I cosponsor today extends existing programs but does not
include improvements which I will discuss with other Committee members
and the Secretary in the near future.
Last November, I introduced the ``Child Nutrition Initiatives Act''
which contained a number of changes that I will discuss with my
colleagues. That was not a reauthorization bill but rather an effort
that I hope will be carefully looked at by my colleagues in the Senate
and in the House.
I intend to meet with representatives of the various nutrition
programs as I work with other Members to help craft a good bill. I look
forward to meeting with Under Secretary Shirley Watkins who has a
number a great ideas to improve our child nutrition programs. In
addition, I will carefully review Senator Johnson's school breakfast
bill which has been strongly endorsed by many groups at that national
and local level.
I will also gain input from Vermont nutrition leaders, Vermont
program directors, community leaders and program participants.
My November 13 statement explains the basis for my bill--I am hopeful
that many of those provisions will be supported by the Committee and
the Senate as a whole.
______
By Mr. ROBB:
S. 1582. A bill to provide market transition assistance for quota
holders, active tobacco producers, and tobacco-growing counties, to
authorize a private Tobacco Production Control Corporation and tobacco
loan associations to control the production and marketing and ensure
the quality of tobacco in the United States, and for other purposes; to
the Committee on Agriculture, Nutrition, and Forestry.
THE TOBACCO MARKET TRANSITION ACT
Mr. ROBB. Mr. President, on behalf of many tobacco growers with whom
I have worked, I rise today to introduce the Tobacco Market Transition
Act. The comprehensive tobacco settlement announced on June 20 of last
year simply did not include provisions for tobacco growers. This
provision is designed to fill that void.
This legislation is truly the result of a grassroots effort and
elaborates the concepts I discussed in the Chamber on November 3.
Tobacco-dependent regions realize that their lives will be directly
affected by comprehensive tobacco legislation and they want to prepare
for that future.
Key members of my staff and I have worked with tobacco growers,
leaders in tobacco growing communities and members of the public health
community to develop legislation which will provide a soft landing to
those regions that have so long depended on the production of tobacco.
In short, because Government action is about to erode the value of
quota, there would be a buyout of existing quota at $8 a pound. A
privatized tobacco program limiting supply would be reinstituted,
providing growers with a license to grow tobacco based on historical
average production for that grower. To provide long-term economic
security in tobacco communities, $250 million will be provided annually
for economic development. Finally, a transition payment would be
offered to growers as the system changes from its present form to a new
one.
Tobacco quota, Mr. President, represents the amount of tobacco
allowed to be produced domestically. Over the years, individuals have
accumulated the right to grow a certain proportion of that total quota.
This individual quota, this right to produce, has liquid value that can
be bought or sold or leased. Many have acquired quota over the years
and planned to retire or in some cases have retired on the funds
received from selling or leasing quota. When the Government depresses
demand for tobacco, it depresses the value of that asset.
The legislation I am introducing recognizes the value of that quota
asset by paying quota holders $8 a pound for the quota they own over 5
years. Once the quota holder has been made whole, a new supply-limiting
program would be instituted giving licenses to grow tobacco to actual
producers of tobacco. Unlike the present system, those licenses would
not cost money to acquire. Eliminating the crushing cost of quota,
which adds 40 cents a pound to the cost of producing flue-cured
tobacco, will allow these growers to become more competitive even as
demand declines in the United States as a result of any comprehensive
bill that we pass. By becoming more competitive with imported tobacco,
U.S. growers could keep the demand for their
[[Page S174]]
product from declining as steeply as demand for cigarettes and other
finished products if we pass comprehensive legislation.
The legislation also provides a transition payment for existing
tobacco producers as we move into the new system and provides $250
million annually to tobacco-growing communities for economic
development. These economic development funds can be used for local
communities to improve education, enhance transportation, promote small
business incubators or develop high technology infrastructure. In
short, these economic development funds will help keep these
communities from exporting their most valuable asset, and that is their
children.
Finally, this proposal recognizes the benefits of a supply-limiting
program for tobacco. A supply-limiting program is absolutely essential
to stabilize the income of tobacco farmers and to protect tobacco-
growing communities from the utter destruction that would follow if the
program is totally eliminated.
A supply-limiting program is also appropriate in the unique
circumstance of tobacco. Unlike other commodities where we are trying
to lower the cost to consumers, pending Federal legislation is designed
to do just the opposite. Every comprehensive tobacco proposal I have
seen would increase the cost of tobacco products to lower demand.
Indeed, the President said last night that he would approve something
up to $1.50 a pack.
There has been much healthy discussion in tobacco growing communities
about whether to retain the current Federal tobacco program or to avoid
the annual battles that threaten it and privatize the program, allowing
growers and others to operate it.
This is an important debate. The Federal program has served tobacco-
growing communities well for over 60 years, and it is my judgment--and
the judgment of many, many with whom I have consulted--that it should
not be dismantled cavalierly.
The question we face is how best to maintain a supply-limiting
program that protects tobacco communities. If we could guarantee that
the Federal program would remain intact for the next 25 years, that may
be the best way to proceed. But I have detected a great deal of unease
about whether we can keep the program, and I think many on both sides
of this issue are growing tired of annual fights which, if we lose,
will destroy many tobacco-growing regions.
That is why this legislation contains provisions to privatize the
tobacco program. For those who have questions about how this program
will work, I invite them to assist in answering those questions and
improving this legislation. For those who are nervous about such a
change, I can say I appreciate their apprehension. It is easier to
understand the world as it is rather than how it could be. But I
believe this offers us the best opportunity to retain a supply-limiting
program over the long term.
I look forward to working with my colleagues to pass legislation that
will protect the communities that will be devastated if we fail to act,
and will, in the words of the President, make growers and their
communities ``whole.''
I ask unanimous consent that the full text of the legislation as well
as the section-by-section summary be printed in the Record following my
remarks.
The PRESIDING OFFICER. Without objection, it is so ordered.
Mr. President, I ask unanimous consent that additional material be
printed in the Record.
There being no objection, the material was ordered to be printed in
the Record, as follows:
S. 1582
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Tobacco
Market Transition Act''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Purposes.
Title I--Tobacco Community Revitalization Trust Fund
Sec. 101. Tobacco Community Revitalization Trust Fund.
Title II--Tobacco Market Transition Assistance
Sec. 201. Compensation to quota holders for loss of tobacco quota asset
value.
Sec. 202. Transition payments for active tobacco producers.
Sec. 203. Tobacco loan associations.
Sec. 204 Tobacco community economic development grants.
Sec. 205. Tax treatment of compensation and transition payments.
Title III--Establishment of Private Tobacco Production Adjustment and
Quality Assurance Programs
Sec. 301. Tobacco Production Control Corporation.
Sec. 302. Tobacco loan associations.
Sec. 303. Tobacco price support levels.
Sec. 304. Penalties.
Sec. 305. Referenda.
SEC. 2. DEFINITIONS.
In this Act:
(1) Active tobacco producer.--The term ``active tobacco
producer'' means a person that--
(A) is the actual producer, as determined by the Secretary,
of tobacco on a farm where tobacco is produced pursuant to a
tobacco farm marketing quota or farm acreage allotment
established under the Agricultural Adjustment Act of 1938 (7
U.S.C. 1281 et seq.) for the 1997 crop year; and
(B) planted the crop, or is considered to have planted the
crop under that Act, in 1997.
(2) Quota holder.--The term ``quota holder'' means an owner
of a farm on January 1, 1998 for which a tobacco farm
marketing quota or farm acreage allotment was established
under the Agricultural Adjustment Act of 1938 (7 U.S.C. 1281
et seq.).
(3) Secretary.--The term ``Secretary'' means the Secretary
of Agriculture.
(4) Tobacco loan association.--The term ``Association''
means a producer-owned cooperative marketing association.
(5) Tobacco production control corporation.--The term
``Corporation'' means the Tobacco Production Control
Corporation established by section 301.
(6) Trust fund.--The term ``Trust Fund'' means the Tobacco
Community Revitalization Trust Fund established by section
101.
SEC. 3. PURPOSES.
It is the purpose of this Act to--
(1) dismantle the existing federal tobacco program and
establish a private program to ensure the stability of the
price and supply of domestically produced tobacco;
(2) compensate quota holders for the value of assets that
may be diminished as a result of this legislation;
(3) provide targeted economic development funds to tobacco
dependent communities for the creation of jobs, training of
individuals, and long-term economic development of the
communities;
(4) reduce the operating costs of tobacco producers by
eliminating expenses associated with buying or leasing
tobacco quota; and
(5) make domestically produced tobacco more competitive
with tobacco produced in other countries.
TITLE I--TOBACCO COMMUNITY REVITALIZATION TRUST FUND
SEC. 101. TOBACCO COMMUNITY REVITALIZATION TRUST FUND.
(a) In General.--There is established in the Treasury of
the United States a trust fund to be known as the ``Tobacco
Community Revitalization Trust Fund'', consisting of such
amounts as may be appropriated or credited to the Trust Fund.
The Trust Fund shall be administered by the Corporation.
(b) Transfers to Trust Fund.--There are appropriated and
transferred to the Trust Fund, from amounts made available to
the Trust Fund out of funds allocated through national
tobacco settlement legislation, $3,500,000,000 for each of
fiscal years 1999 through 2003 and $265,000,000 for each of
fiscal years 2004 through 2023.
(c) Repayable Advances.--
(1) Authorization.--There are authorized to be appropriated
to the Trust Fund, as repayable advances, such sums as may
from time to time be necessary to make expenditures under
subsection (d).
(2) Repayment with interest.--Repayable advances made to
the Trust Fund shall be repaid, and interest on the advances
shall be paid, to the general fund of the Treasury when the
Secretary of the Treasury determines that moneys are
available in the Trust Fund to make the payments.
(3) Rate of interest.--Interest on an advance made under
this subsection shall be at a rate determined by the
Secretary of Treasury (as of the close of the calendar month
preceding the month in which the advance is made) that is
equal to the current average market yield on outstanding
marketable obligations of the United States with remaining
period to maturity comparable to the anticipated period
during which the advance will be outstanding.
(d) Expenditures From Trust Fund.--Amounts in the Trust
Fund shall be available for making expenditures to defray--
(1) the costs of providing compensation to quota holders
for the loss of tobacco quota asset value under section 201;
(2) the costs of making transition payments to active
tobacco producers under section 202;
(3) the costs of forgiving loans and transferring title to
inventories of tobacco and funds to Associations under
section 203;
(4) the costs of making tobacco community economic
development grants under section 204, but not to exceed
$250,000,000 for each of fiscal years 1999 through 2003 and
an amount
[[Page S175]]
determined by the Corporation to be appropriate for each of
fiscal years 2004 through 2023;
(5) the costs of carrying out the duties of the Corporation
and the Associations, including assuring the quality and
controlling the production and marketing of domestic tobacco
and otherwise carrying out title III;
(6) the costs to the Secretary of enforcing title III;
(7) the costs of providing crop insurance to tobacco
producers; and
(8) any other costs incurred by the Department of
Agriculture associated with tobacco.
TITLE II--TOBACCO MARKET TRANSITION ASSISTANCE
SEC. 201. COMPENSATION TO QUOTA HOLDERS FOR LOSS OF TOBACCO
QUOTA ASSET VALUE.
(a) In General.--The Corporation shall make payments for
tobacco quota to eligible quota holders.
(b) Eligibility.--To be eligible to receive payments under
this section, a quota holder shall prepare and submit to the
Corporation an application at such time, in such manner, and
containing such information as the Corporation may require,
including information sufficient to demonstrate to the
satisfaction of the Corporation that the person was a quota
holder on January 1, 1998.
(c) Base Quota Level.--
(1) In general.--The Secretary shall determine, for each
quota holder, the base quota level for the 1995 through 1997
marketing years.
(2) Level.--The base quota level for a quota holder shall
be equal to the average tobacco farm marketing quota
established for the 1995 through 1997 marketing years for the
farm owned by the quota holder on January 1, 1998.
(3) Marketing quotas other than poundage quotas.--For each
kind of tobacco for which there is a marketing quota or
allotment (on an acreage basis), the base quota level for
each quota holder shall be determined in accordance with this
subsection (based on a poundage conversion) in an amount
equal to the product obtained by multiplying--
(A) the average tobacco farm marketing quota or allotment
for the 1995 through 1997 marketing years; by
(B) the average county yield per acre for the county in
which the farm is located for the kind of tobacco for the
marketing years.
(d) Payments.--The Corporation shall make payments to each
quota holder that is eligible under subsection (b) in 5 equal
installments, 1 for each of the 1999 through 2003 crops of
tobacco, in an aggregate amount that is equal to the product
obtained by multiplying--
(1) $8 per pound; by
(2) the base quota level established for the quota holder
under subsection (c).
SEC. 202. TRANSITION PAYMENTS FOR ACTIVE TOBACCO PRODUCERS.
(a) In General.--The Corporation shall make transition
payments to eligible active tobacco producers.
(b) Eligibility.--To be eligible to receive payments under
this section, an active tobacco producer shall--
(1) prepare and submit to the Corporation an application at
such time, in such manner, and containing such information as
the Corporation may require, including information sufficient
to make the demonstration required under paragraph (2); and
(2) demonstrate to the satisfaction of the Corporation
that, the person planted, or is considered to have planted, a
1997 crop of tobacco.
(c) Payment Quantity.--
(1) In general.--The Secretary shall determine and provide
to the Corporation, for each active tobacco producer, the
production quantity eligible for payment for the 1995 through
1997 marketing years.
(2) Eligible production quantity.--The production quantity
eligible for payment for an active tobacco producer shall be
equal to the average number of pounds of tobacco quota
established for a farm for the 1995 through 1997 marketing
years for which the producer was the actual producer of the
tobacco on the farm.
(3) Marketing quotas other than poundage quotas.--For each
kind of tobacco for which there is a marketing quota or
allotment (on an acreage basis), the production quantity
eligible for payment for each active tobacco producer
shall be determined in accordance with this subsection
(based on a poundage conversion) in an amount equal to the
product obtained by multiplying--
(A) the average tobacco farm marketing quota or allotment
for the 1995 through 1997 marketing years; by
(B) the average county yield per acre for the county in
which the farm is located for the kind of tobacco for the
marketing years.
(d) Payments.--The Corporation shall make payments for each
of the 1999 through 2003 crops of tobacco to each active
tobacco producer that is eligible under subsection (b) in an
amount that is equal to the product obtained by multiplying--
(1) $0.40 per pound; by
(2) the payment quantity established for the producer under
subsection (c).
(e) Death of Active Tobacco Producer.--If an active tobacco
producer who is entitled to payments under this section dies
and is survived by a spouse or 1 or more dependents, the
right to receive the payments shall transfer to the surviving
spouse of, if there is no surviving spouse, to the estate of
the producer.
SEC. 203. TOBACCO LOAN ASSOCIATIONS.
(a) Prior Loans.--The Secretary shall forgive each loan
made to an Association under section 106A or 106B of the
Agricultural Act of 1949 (7 U.S.C. 1445 1, 1445 2) that is
outstanding on the date of enactment of this Act.
(b) Transfer of Title for Loan Inventories.--The Secretary
shall transfer to each Association described in subsection
(a) the title to all inventories of tobacco held by the
Secretary to secure loans made to the Association under
section 106A or 106B of the Agricultural Act of 1949 (7
U.S.C. 1445 1, 1445 2).
(c) No Net Cost Tobacco Funds.--Notwithstanding sections
106A(f) and 106b(g) of the Agricultural Act of 1949 (7 U.S.C.
1445-1(f) and 1445-2(g)), all funds held in a No Net Cost
Tobacco Fund or No Net Cost Tobacco Account on behalf of an
Association under section 106A or 106B of that Act (1445-1,
1445-2) on the date of enactment of this Act shall be the
property of the Association.
SEC. 204. TOBACCO COMMUNITY ECONOMIC DEVELOPMENT GRANTS.
(a) Authority.--The Corporation shall make grants to
eligible tobacco-growing political subdivisions in accordance
with this section to enable the political subdivisions to
carry out economic development activities.
(b) Eligibility.--To be eligible to receive payments under
this section, a political subdivisions in a State shall--
(1) have in excess of $100,000 in gross income from sales
of tobacco produced within the political subdivision during 1
or more of the 1995 and 1997 marketing years, as determined
by the Corporation;
(2) prepare and submit to the Corporation an application at
such time, in such manner, and containing such information as
the Corporation may require, including--
(A) a description of the activities that the political
subdivision will carry out using amounts received under the
grant;
(B) a designation of an appropriate political subdivision
agency to administer amounts received under the grant;
(C) a description of the steps to be taken to ensure that
the funds are distributed in accordance with subsection (e);
and
(D) an economic development plan, approved by a regional
authority authorized to coordinate economic development
efforts in the region where the political subdivision is
located, or approved by the State if no such regional
authority exists, that described the activities that the
political subdivision will carry out using amounts received
under the grant. Where a political subdivision ineligible to
receive payments under subsection (b)(1) is surrounded within
the State by a political subdivision eligible to receive
payments under subsection (b)(1), an economic development
plan shall not be approved unless submitted jointly by
both jurisdictions.
(c) Amount of Grant.--
(1) In general.--From the amounts available to carry out
this section for a fiscal year, the Corporation shall allot
to each eligible tobacco-growing political subdivision an
amount that bears the same ratio to the total funds available
as the total income of the tobacco-growing political
subdivision derived from the production of tobacco within the
political subdivision during the 1995 through 1997 marketing
years (as determined under paragraph (2)) bears to the total
income of all tobacco-growing political subdivisions derived
from the production of tobacco during the 1995 through 1997
marketing years.
(2) Tobacco income.--For the 1995 through 1997 marketing
years, the Secretary shall determine and provide to the
Corporation the amount of income derived from the production
of tobacco in each tobacco-growing political subdivision and
in all tobacco-growing political subdivisions.
(d) Payments.--
(1) In general.--A tobacco-growing political subdivision
that has an application approved by the Corporation under
subsection (b) shall be entitled to a payment under this
section in an amount that is equal to its allotment under
subsection (c).
(2) Form of payments.--The Corporation may make payments
under this section to a tobacco-growing political subdivision
in installments, and in advance or by way of reimbursement,
with necessary adjustments on account of overpayments or
underpayments, as the Corporation may determine.
(3) Reallotments.--Any portion of the allotment of a
political subdivision under subsection (c) that the
Corporation determines will not be used to carry out this
section in accordance with an approved political subdivision
application required under subsection (b), shall be
reallotted by the Corporation to other tobacco-growing
political subdivisions in proportion to the original
allotments to the other tobacco-growing political
subdivisions.
(e) Use and Distribution of Funds.--
(1) In general.--Amounts received by a tobacco-growing
political subdivision under this section shall be used to
carry out economic development activities, including--
(A) activities designed to help create productive farm or
off-farm employment in rural areas to provide a more viable
economic base and enhance opportunities for improved incomes,
living standards, and contributions by rural individuals to
the economic and social development of tobacco communities;
(B) activities designed to provide training and transition
assistance to quota holders and active tobacco producers to
enable the holders and producers to produce alternative
agricultural commodities or obtain alternative employment;
[[Page S176]]
(C) activities to improve the quality of education in
tobacco communities;
(D) activities to promote tourism in tobacco communities
through natural resource protection;
(E) activities to construct advanced manufacturing centers,
industrial parks, water and sewer facilities, and
transportation improvements in tobacco communities;
(F) activities to establish small business incubators in
tobacco communities;
(G) activities to install high technology infrastructure
improvement in tobacco communities;
(H) rural business enterprise activities described in
subsections (c) and (e) of section 310B of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1932);
(I) down payment loan assistance programs that are similar
to the program described in section 310E of the Consolidated
Farm and Rural Development Act (7 U.S.C. 1935);
(J) activities that expand existing infrastructure,
facilities, and services to capitalize on opportunities to
diversify economies in tobacco communities and that support
the development of new industries or commercial ventures;
(K) activities by agricultural organizations that provide
assistance directly to quota holders and active tobacco
producers to assist in developing other agricultural
activities that supplement tobacco-producing activities;
(L) initiatives designed to create or expand locally owned
value-added processing and marketing operations in tobacco
communities; and
(M) technical assistance activities by persons to support
farmer-owned enterprises, or agriculture-based rural
development enterprises, of the type described in section 252
or 253 of the Trade Act of 1974 (19 U.S.C. 2342, 2343).
(2) Maintenance of effort.--The political subdivision and
the State shall provide assurances to the Corporation that
funds provided to the political subdivision under this
section will be used only to supplement, not to supplant, the
amount of Federal, State, and local funds otherwise expended
for economic development activities in the political
subdivision.
SEC. 205. TAX TREATMENT OF TOBACCO QUOTA HOLDER COMPENSATION
AND TRANSITION PAYMENTS.
(a) In General.--Part II of subchapter B of chapter 1 of
the Internal Revenue Code of 1986 (relating to items
specifically included in gross income) is amended by adding
at the end the following:
``SEC. 91. CERTAIN TOBACCO PROGRAM PAYMENTS.
``(a) General Rule.--Gross income includes amounts received
under section 201 or 202 of the Tobacco Market Transition
Act.
``(b) Exception for Amounts Transferred During Reinvestment
Period.--
``(1) In general.--Subsection (a) shall not apply to any
amount if during reinvestment period such amount is--
``(A) used to make a qualified debt repayment, or
``(B) transferred to a tobacco farmer individual retirement
account established under section 522.
``(2) Qualified debt repayment.--For purposes of paragraph
(1), the term `qualified debt repayment' means the payment of
debt incurred directly by the taxpayer to produce tobacco
prior to January 1, 1998.
``(c) Character of Income.--For purposes of this subtitle--
``(1) any amount received under section 201 of the Tobacco
Market Assistance Act and included in gross income under this
section shall be treated as long-term capital gain, and
``(2) any amount received under section 202 of such Act and
so included in gross income shall be treated as ordinary
income.''.
(b) Tobacco Farmer Individual Retirement Accounts.--Part IV
of subchapter F of chapter 1 of the Internal Revenue Code of
1986 (relating to farmers' cooperatives) is amended by adding
at the end the following:
``SEC. 522. TOBACCO FARMER INDIVIDUAL RETIREMENT ACCOUNTS.
``(a) General Rule.--Except as provided in this section, a
tobacco farmer individual retirement account shall be treated
for purposes of this title in the same manner as an
individual retirement plan.
``(b) Definitions and Special Rules.--For purposes of this
title--
``(1) Tobacco farmer individual retirement account.--The
term `tobacco farmer individual retirement account' means an
individual retirement plan (as defined in section
7701(a)(37)) other than a Roth IRA which is designated (in
such manner as the Corporation may prescribe) at the time of
establishment of the plan as a tobacco farmer individual
retirement account.
``(2) Treatment of contributions.--
``(A) Cash only.--No contribution will be accepted unless
it is in cash.
``(B) Source of contributions.--The only contributions
which will be accepted are--
``(i) payments under section 201 or 202 of the Tobacco
Market Transition Act, and
(ii) trustee-to-trustee transfers to such trust from
another tobacco farmer individual retirement account of the
account beneficiary.
``(C) No deduction allowed.--No deduction shall be allowed
under section 219 for a contribution to a tobacco farmer
individual retirement account.
``(D) No rollover contributions allowed.--No rollover
contribution may be made to or from a tobacco farmer
individual retirement account.
``(3) Tax treatment of distributions.--Any amount
distributed from a tobacco farmer individual retirement
account attributable to payments made under section 201 or
202 of the Tobacco Market Transition Act (including earnings
thereon) shall be includible in the gross income of the
distributee under the rules described in section 91(c). Any
such distribution shall be made first from amounts in such
account (if any) attributable to payments under such section
202 (and earnings thereon).
``(4) Coordination with individual retirement accounts.--
Section 408(d)(2) shall be applied separately with respect to
tobacco farmer individual retirement accounts and other
individual retirement plans.''.
``(c) Conforming Amendments.--
(1) The table of sections for part II of subchapter B of
chapter 1 of the Internal Revenue Code of 1986 is amended by
adding at the end the following: ``Sec. 91. Certain tobacco
program payments.''.
(2) The table of sections for part IV of subchapter 1 of
such Code is amended by adding at the end the following:
``Sec. 522. Tobacco farmer individual retirement accounts.''.
(3) The heading for part IV of subchapter F of chapter 1 of
such code is amended by striking
``FARMERS' COOPERATIVES'' and inserting ``CERTAIN FARMER
ENTITIES''.
(4) The table of parts for subchapter F of chapter 1 of
such Code is amended by striking ``Farmers' cooperatives''
and inserting ``Certain farmer entities''. Effective Date.--
The amendments made by this section shall apply to taxable
years beginning after December 31, 1997.
TITLE III--ESTABLISHMENT OF PRIVATE TOBACCO PRODUCTION ADJUSTMENT AND
QUALITY ASSURANCE PROGRAM
SEC. 301. TOBACCO PRODUCTION CONTROL CORPORATION.
(a) Establishment.--There is established a corporation to
be known as the ``Tobacco Production Control Corporation'',
which shall be a federally chartered instrumentality of the
United States.
(b) Duties.--Effective for the 1999 and each subsequent
crop of each kind of tobacco, on at least a \2/3\-vote of the
Board of Directors of the Corporation, the Corporation
shall--
(1) promulgate rules that govern the production, marketing,
importation, exportation, and consumer quality assurances for
each kind of tobacco;
(2) establish a licensing system that provides for the
orderly production and marketing of tobacco in the United
States under which--
(A) the Corporation shall issue a license to each active
tobacco producer, or other person that meets requirements
established by the Corporation, initially based upon the
eligible production quantity determined for each producer
under section 202(c)(1);
(B) the licensee shall surrender the license to the
Corporation if the licensee fails to actively engage in the
production of tobacco;
(C) the sale or marketing of a type of tobacco which prior
to the date of enactment was produced pursuant to a tobacco
farm marketing quota or farm acreage allotment issued under
the Agricultural Act of 1938 is prohibited without a license;
(D) the sale, lease, or other transfer of a license shall
be prohibited except pursuant to subsection (c); and
(E) the Corporation shall issue marketing licenses to
tobacco marketing facilities and tobacco purchasing entities;
(3) ensure compliance, through whatever means is available,
of all persons with any license, regulation, rule,
limitation, or guideline issued under, or in order to carry
out, this Act;
(3) offer crop insurance for tobacco producers;
(4) establish a system that will provide assurance to
consumers of the quality of all tobacco marketed in the
United States and that, at a minimum--
(A) provides for the inspection and grading of domestically
produced tobacco and imported tobacco;
(B) determines and describes the physical characteristics
of domestically produced tobacco and imported tobacco;
(C) ensures the physical and chemical integrity of
domestically produced tobacco and imported tobacco;
(5) carry out its duties, functions, and determinations
through loan associations and local committees, to the extent
practicable and appropriate, and
(6) continue to maintain and carry out a tobacco program in
accordance with the rules and regulations contained in
Chapter 7 of the C.F.R. unless and until rules are
promulgated under subsection (c).
(c) Transfer of License.--
(1) Right of survivorship.--
(A) In general.--In the case of the death of a person to
whom a license has been issued under this section, the
license shall transfer to the surviving spouse of the person
or, if there is no surviving spouse, to surviving direct
descendants of the persons.
(B) Hardship.--In the case of the death of a person to whom
a license has been issued under this section and whose
descendants are temporarily unable to produce a crop of
tobacco, the Corporation may hold the license in the name of
the descendants for a period of not more than 18 months, at
the discretion of the Corporation.
[[Page S177]]
(2) Lifetime transfer.--A person that is eligible to obtain
a license under this section may at any time transfer all or
part of the license to the person's spouse or direct
descendants that are actively engaged in the production of
tobacco.
(d) Board of Directors.--
(1) In general.--The powers of the Corporation shall be
vested in a Board of Directors.
(2) Members.--The Board of Directors shall consist of 25
members as follows:
(A) The Secretary of Agriculture.
(B) The Secretary of Health and Human Services.
(C) The Administrator of the Environmental Protection
Agency.
(D) The United States Trade Representative.
(E) 1 member from each state that produces more than
50,000,000 pounds of tobacco. All members appointed under
this subparagraph shall be actively engaged in the production
of tobacco and shall be elected by the tobacco producers from
each respective state.
(F) 3 members appointed by the flue-cured tobacco
association and 2 members appointed by the burley tobacco
associations, all such members to be licensees under this
Act.
(G) 1 member appointed by tobacco associations other than
those specified in subparagraph (F), on a rotating basis.
(H) 3 members representing public health interests,
appointed by the Secretary of Health and Human Services.
(I) 1 member representing domestic cigarette manufacturers.
(J) 1 member representing domestic export leaf dealers,
appointed by the Leaf Tobacco Exporters Association (LTEA).
(K) 2 members representing tobacco marketing facilities, 1
each appointed by the Bright Belt Warehouse Association
(BBWA) and the Burley Auction Warehouse Association (BAWA).
(L) 1 member that is the person responsible for operating
the quality assurance system of the Corporation described in
subsection (b)(4).
(M) 1 member who is a Dean of Agriculture of a Land Grant
University from a tobacco producing state.
(3) Membership qualifications.--A member of the Board shall
not hold any Federal, State, or local elected office.
(4) Chairpersons.--The Secretary of Agriculture shall serve
as chairperson of the Board.
(5) Executive director.--
(A) Appointment.--The Board shall appoint an Executive
Director.
(B) Duties.--The Executive Director shall be the chief
executive officer of the Corporation, with such power and
authority as may be conferred by the Board.
(C) Compensation.--The Executive Director shall receive
basic pay at the rate provided for level IV of the Executive
Schedule under section 5315 of title 5, United States Code.
(6) Officers.--The Board shall establish the offices and
appoint the officers of the Corporation, including a
Secretary, and define the duties of the officers in a manner
consistent with this section.
(7) Meetings.--
(A) In general.--The Board shall meet at least 3 times each
fiscal year at the call of a Chairperson or at the request of
the Executive Director.
(B) Location.--The location of a meeting shall be subject
to approval of the Executive Director.
(C) Quorum.--A quorum of the Board shall consist of a
majority of the members.
(8) Term; vacancies.--
(A) Term.--The term of office of a member of the Board
appointed under any of subparagraphs (E) through (K) of
paragraph (2) shall be 4 years.
(B) Vacancies.--A vacancy on the Board shall be filled in
the same manner as the original appointment was made.
(9) Compensation.--
(A) Federal members.--A member of the Board who is an
officer or employee of the United States shall not receive
any additional compensation by reason of service on the
Board.
(B) Non-federal members.--Any other member shall receive
compensation, for each day (including travel time) that the
member is engaged in the performance of the functions of the
Board, at a rate determined appropriate by the Board.
(C) Expenses.--A member of the Board shall be reimbursed
for travel, subsistence, and other necessary expenses
incurred by the member in the performance of the duties of
the member.
(10) Conflict of interest; financial disclosure.--
(A) Conflict of interest.--Except as provided in
subparagraph (C), a member of the Board shall not vote on any
matter concerning any application, contract, or claim, or
other particular matter pending before the Corporation, in
which, to the knowledge of the member, the member, spouse, or
child of the member, partner of the member, or organization
in which the member is serving as officer, director, trustee,
partner, or employee, or any person or organization with
which the member is negotiating or has any arrangement
concerning prospective employment, has a financial interest.
(B) Violations.--Violation of subparagraph (A) by a member
of the Board shall be cause for removal of the member, but
shall not impair or otherwise affect the validity of any
otherwise lawful action by the Corporation in which the
member participated.
(C) Exceptions.--The prohibitions contained in subparagraph
(A) shall not apply to a member of the Board that is a
tobacco producer if the member advises the Board of the
nature of the particular matter in which the member proposes
to participate, and if the member makes a full disclosure of
the financial interest, prior to any participation.
(D) Financial disclosure.--A Board member shall be subject
to the financial disclosure requirements of subchapter B of
chapter XVI of title 5, Code of Federal Regulations (or any
corresponding or similar regulation or ruling), applicable to
a special Government employee (as defined in section 202(a)
of title 18, United States Code).
(E) Representation.--No member of the Board shall receive
compensation from more than one interest represented on the
Board.
(11) Bylaws.--The Board shall adopt, and may from time to
time amend, any bylaw that is necessary for the proper
management and functioning of the Corporation.
(12) Personnel.--The Corporation may select and appoint
officers, attorneys, employees, and agents, who shall be
vested with such powers and duties as the Corporation may
determine.
(e) General Powers.--In addition to any other powers
granted to the Corporation under this title, the
Corporation--
(1) shall have succession in its corporate name;
(2) may adopt, alter, and rescind any bylaw and adopt and
alter a corporate seal, which shall be judicially noticed;
(3) may enter into any agreement or contract with a person
or private or governmental agency;
(4) may lease, purchase, accept a gift or donation of, or
otherwise acquire, use, own, hold, improve, or otherwise deal
in or with, and sell, convey, mortgage, pledge, lease,
exchange, or otherwise dispose of, any property or interest
in property, as the Corporation considers necessary in the
transaction of the business of the Corporation;
(5) may sue and be sued in the corporate name of the
Corporation, except that--
(A) no attachment, injunction, garnishment, or similar
process shall be issued against the Corporation or property
of the Corporation; and
(B) exclusive original jurisdiction shall reside in the
district courts of the United States, and the Corporation may
intervene in any court in any suit, action, or proceeding in
which the Corporation has an interest;
(6) may independently retain legal representation;
(7) may provide for and designate such committees, and the
functions of the committees, as the Board considers necessary
or desirable;
(8) may indemnify officers of the Corporation, as the Board
considers necessary and desirable, except that the officers
shall not be indemnified for an act outside the scope of
employment;
(9) may, with the consent of any board, commission,
independent establishment, or executive department of the
Federal Government, including any field service, use
information, services, facilities, officials, and employees
in carrying out this section, and pay for the use, which
payments shall be transferred to the applicable appropriation
account that incurred the expense;
(10) may obtain the services and fix the compensation of
any consultant and otherwise procure temporary and
intermittent services under section 3109(b) of title 5,
United States Code;
(11) shall have the rights, privileges, and immunities of
the United States with respect to the right to priority of
payment with respect to debts due from bankrupt, insolvent,
or deceased creditors;
(12) may collect or compromise any obligations assigned to
or held by the Corporation, including any legal or equitable
rights accruing to the Corporation;
(13) shall determine the character of, and necessity for,
obligations and expenditures of the Corporation and the
manner in which the obligations and expenditures shall be
incurred, allowed, and paid, subject to provisions of law
specifically applicable to Government corporations;
(14) may make final and conclusive settlement and
adjustment of any claim by or against the Corporation or a
fiscal officer of the Corporation;
(15) may sell assets, loans, and equity interests acquired
in connection with the financing of projects funded by the
Corporation; and
(16) may exercise all other lawful powers necessarily or
reasonably related to the establishment of the Corporation to
carry out this title and the powers, purposes, functions,
duties, and authorized activities of the Corporation.
SEC. 302. TOBACCO LOAN ASSOCIATIONS.
The Corporation shall enter into an agreement with
producer-owned cooperative marketing loan associations for
each kind of tobacco to--
(1) make price support available to producers of the kind
of tobacco;
(2) carry out the licensing system established under
subsection (b)(2);
(3) arrange for financing and the administration of price
supports for the kind of tobacco; and
(4) receive, process, store, and sell any domestically
produced tobacco received as collateral for a price support
loan.
SEC. 303. TOBACCO PRICE SUPPORT LEVELS.
(a) Initial Level.--Effective for the 1999 crop of each
kind of tobacco, the support
[[Page S178]]
level in cents per pound established under this title shall
be equal to--
(1) the simple average price received by producers of the
kind of tobacco, as determined by the Corporation, during the
marketing years for the immediately preceding 5 crops of the
kind of tobacco; less
(2) the average return to quota for 1994 through 1998 crops
of the kind of tobacco, as determined by the Corporation.
(b) Subsequent Adjustment.--The Corporation, in
consultation with the Associations, shall adjust and
establish the support level for each kind of tobacco at an
appropriate level for each year after 1999.
SEC. 304. PENALTIES.
(a) In General.--The violation of any provision of this
Act, or any rule or regulation issued to carry out this Act,
or the terms of any license issued under this Act, by a
person (including the marketing of any kind of tobacco
without a license issued under this title or in excess of the
quantity permitted under such a license) shall subject the
person to revocation or suspension of the person's license, a
penalty of 75 percent of the average market price (calculated
to the nearest whole cent) for the kind of tobacco for the
immediately preceding marketing year, or both, in the
discretion of the Secretary.
(b) Payor.--
(1) In general.--Except as otherwise provided in this
subsection, the penalty shall be paid by the person who
acquired the tobacco from the producer.
(2) Deduction from price.--An amount equivalent to the
penalty may be deducted by the buyer from the price paid to
the producer in any case in which the tobacco is marketed by
sale.
(3) Warehouseman or agent.--If the tobacco is marketed by
the producer through a warehouseman or other agent, the
penalty shall be paid by the warehouseman or agent who may
deduct an amount equivalent to the penalty from the price
paid to the producer.
(4) Direct marketing outside United States.--In any case in
which tobacco is marketed directly to any person outside the
United States, the penalty shall be paid and remitted by the
producer.
(c) False Statement or Omission.--If any producer falsely
identifies or fails to account for the disposition of any
tobacco--
(1) an amount of tobacco equal to the normal yield of the
number of acres harvested in excess of the quantity permitted
under a license issued under this title shall be considered
to have been marketed in excess of the license for the farm;
and
(2) the penalty for the excess marketing shall be paid and
remitted by the producer.
(d) Carryover.--Tobacco carried over by the producer of the
tobacco from 1 marketing year to another marketing year may
be marketed without payment of the penalty imposed by this
section if--
(1) the total quantity of tobacco available for marketing
from the farm in the marketing year from which the tobacco is
carried over does not exceed the quantity that may be
marketed under a license issued for the farm for the
marketing year; or
(2) the quantity of tobacco carried over does not exceed
the normal production of that number of acres by which the
harvested acreage of tobacco in the calendar year in which
the marketing year begins is less than the quantity that may
be marketed under the license.
(e) Tobacco Marketed Prior to Marketing Year.--Tobacco
produced in a calendar year for the marketing year beginning
during the calendar year shall be subject to licenses issued
for the marketing year even though the tobacco is marketed
prior to the date on which the marketing year begins.
(f) Proportional Payments.--The Secretary shall require
collection of the penalty on a proportion of each lot of
tobacco marketed from the farm equal to the proportion that
the tobacco available for marketing from the farm in excess
of the quantity that may be marketed under a license is of
the total quantity of tobacco available for marketing from
the farm if satisfactory proof is not furnished as to the
disposition to be made of the excess tobacco prior to the
marketing of any tobacco from the farm.
(g) Lien.--Until the amount of the penalty provided by this
section is paid, a lien on the tobacco with respect to which
the penalty is incurred, and on any subsequent tobacco
subject to licenses issued under this title in which the
person liable for payment of the penalty has an interest,
shall be in effect in favor of the Corporation for the amount
of the penalty.
SEC. 305. PROGRAM REFERENDA.
(a) Initial Referendum.--Not later than 3 years after the
date of enactment of this Act, the Corporation shall conduct
a referendum among licensees engaged in the production of
each kind of tobacco to determine whether such producers are
in favor of continuing the operation of the program
established under this Act with respect to that kind of
tobacco. If more than one half of the licensees voting oppose
the continuation of the program, the Corporation shall
announce the result and shall conduct a second referendum one
year later. If more than one half of the licensees voting in
the second referendum also oppose the continuation of the
program, the Corporation shall announce the result and the
program shall cease to be in effect for that kind of tobacco.
(b) Subsequent Referenda.--The Corporation may conduct
subsequent referenda from time to time as the Corporation
deems appropriate to determine whether producers are in favor
of continuing the program established under this Act, the use
of marketing allotments and quotas, limitations on transfer
of quota, or any other aspect of the program.
(c) Effective Date.--This section shall be effective 1 year
after the date of enactment of this Act.
____
Section-by-Section Summary of The ``Tobacco Market Transition Act''
These are the highlights of each section of the
legislation:
Section 1. Table of Contents.
Section 2. Definitions.
This section includes the definition of an ``active tobacco
producer'' (who will be eligible to receive transition
payments and a license to grow tobacco) and a ``quota
holder'' (who will be eligible for the quota asset buyout).
An ``active tobacco producer'' is a person who was the actual
producer of tobacco planted in 1997. A ``quota holder'' is a
person who owned a farm on January 1, 1998 which carried a
tobacco farm marketing quota or farm acreage allotment.
Section 3. Purposes.
Section 101. Tobacco Community Revitalization Trust Fund.
This section establishes a trust fund which will compensate
quota holders, make transition payments to growers, fund the
privatized tobacco production limiting program, pay for
tobacco crop insurance, and provide community development
grants. From the funds generated as a result of comprehensive
tobacco legislation, the trust fund would receive $3.5
billion for the first five years, and $265 million each
succeeding year.
Section 201. Compensation to Quota Holders for Loss of
Tobacco Quota Asset Value.
A quota holder would receive $8/pound based on the average
tobacco farm marketing quota established for the 1995 through
1997 marketing years for the farm owned by the quota holder
on January 1, 1998. The payments would be made in 5 equal
annual installments beginning in 1999.
Section 202. Transition Payments for Active Tobacco
Producers.
Tobacco producers who grew tobacco in 1997 would be
eligible to receive 40 cents/pound for five years based on
the average number of pounds of tobacco quota established for
a farm for the 1995 through 1997 marketing years for which
the grower was the actual producer of tobacco on the farm.
Section 203. Tobacco Loan Associations.
To extricate the federal government from the tobacco
program and assist tobacco loan associations make the
transition to the privatized program, this section forgives
various loans made to the associations by the Department of
Agriculture, transfers title to the loan associations of
tobacco held in inventory by the Department of Agriculture,
and transfers to the loan associations the funds held in the
No Net Cost Tobacco Fund and the No Net Cost Tobacco Account
held on behalf of the associations.
Section 204. Tobacco Community Economic Development Grants.
The Corporation will award $250 million annually to
tobacco-dependent counties to aid community development
efforts. The funds can be used for various purposes,
including education, small business incubators, technology
infrastructure enhancement, transportation improvements and
water projects.
Section 205. Tax Treatment of Tobacco Quota Holder
Compensation and Transition Payments.
Compensation funds to quota holders and transition payments
to tobacco producers will not be taxed if placed in a
qualified retirement account or if used to retire debt
directly associated with tobacco production incurred prior to
January 1, 1998.
Section 301. Tobacco Production Control Corporation.
This section creates the privatized Tobacco Production
Control Corporation, which will undertake the duties
previously performed by the federal government. These duties
will include:
Governing the production, marketing, importation,
exportation, and consumer quality assurance for each kind of
tobacco;
Offering crop insurance;
Establishing a quality assurance system that provides for
the inspection and grading of tobacco marketed in the U.S.,
determines and describes the physical characteristics of
domestic and imported tobacco, and ensures the physical and
chemical integrity of domestic and imported tobacco; and
Creating a licensing system to limit the production of
tobacco, replacing the current quota system. Licenses would
be issued by the Corporation at no cost to the producer and
no tobacco could be sold without a license. Initially,
licenses would be issued to active tobacco producers and
would be surrendered to the Corporation if the producer
ceases growing tobacco. Licenses could not be sold, leased or
transferred except to a licensee's spouse or children
actively engaged in the production of tobacco.
Section 302. Tobacco Loan Associations.
This section requires the Corporation to enter into
agreements with producer-owned loan associations for each
kind of tobacco to make price support available, carry out
the licensing system, arrange for financing and
administration of price supports and handle any domestically
produced tobacco received as collateral for a price support
loan.
Section 303. Tobacco Price Support Levels.
For the 1999 crop year, the price support shall be the
simple average price received by
[[Page S179]]
producers for the preceding 5 years less the average return
to quota for 1994 through 1998 crops. This eliminates from
the price of tobacco an amount equal to the previous cost of
acquiring quota.
Section 304. Penalties.
This section sets forth the penalties for those who sell
tobacco without a license or in violation of a license, and
for those who purchase tobacco which is not licensed or
violates a license.
Section 305. Program Referenda.
This section allows producers to vote periodically on
whether to retain the new privatized program.
____________________