[Federal Register Volume 59, Number 34 (Friday, February 18, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-3010]


[[Page Unknown]]

[Federal Register: February 18, 1994]


_______________________________________________________________________

Part III





Department of Education





_______________________________________________________________________



34 CFR Part 363, et al.




Rehabilitation Services Administration Programs; Final Rule
DEPARTMENT OF EDUCATION

34 CFR Parts 363, 369, 371, 373, 374, 375, 376, 377, 378, 379, 380, 
381, 385, 387, 389, and 390

RIN 1820-AB11

 
Rehabilitation Services Administration Programs

AGENCY: Department of Education.

ACTION: Final regulations.

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SUMMARY: The Secretary amends the regulations governing a variety of 
programs administered by the Rehabilitation Services Administration 
(RSA). These regulations implement technical amendments to the 
Rehabilitation Act of 1973 made by the Rehabilitation Act Amendments of 
1992 and by the Rehabilitation Act Amendments of 1993.

EFFECTIVE DATE: These regulations take effect either 45 days after 
publication in the Federal Register or later if the Congress takes 
certain adjournments, with the exception of Secs. 373.30, 379.43, 
381.10, and 385.45. Sections 373.30, 379.43, 381.10, and 385.45 will 
become effective after the information collection requirements 
contained in those sections have been submitted by the Department of 
Education and approved by the Office of Management and Budget under the 
Paperwork Reduction Act of 1980. If you want to know the effective date 
of these regulations, call or write the Department of Education contact 
person. A document announcing the effective date will be published in 
the Federal Register.

FOR FURTHER INFORMATION CONTACT: Beverlee Stafford, U.S. Department of 
Education, 400 Maryland Avenue, SW., room 3028 Switzer Building, 
Washington, DC 20202-2531. Telephone: (202) 205-9331. Individuals who 
use a telecommunications device for the deaf (TDD) may call the Federal 
Information Relay Service (FIRS) at 1-800-877-8339 between 8 a.m. and 8 
p.m., Eastern time, Monday through Friday.

SUPPLEMENTARY INFORMATION: The Rehabilitation Act Amendments of 1992 
(the Amendments) included a number of technical changes to make the Act 
more consistent with other Federal legislation affecting individuals 
with disabilities. In addition, the Amendments strengthen the focus on 
serving those individuals with the most severe disabilities and 
individuals with disabilities from minority backgrounds. Significant 
changes include:

--Terminology and Definitional Changes. The Rehabilitation Act 
Amendments of 1992 replaced the terms ``handicap,'' ``rehabilitation 
facility,'' and ``employability'' throughout the Act with the terms 
``disability,'' ``community rehabilitation program,'' and 
``employment outcome,'' respectively. In addition, new or revised 
definitions of certain terms such as ``individual with a 
disability,'' ``supported employment,'' ``ongoing support 
services,'' and ``extended services'' necessitated technical changes 
to various program regulations.
--Outreach to Minorities. A new provision was added that requires 
all applicants for new and continuation funding under the Act to 
demonstrate how they will address the needs of individuals with 
disabilities from minority backgrounds.
--Client Assistance Information. A new provision was added that 
requires all programs and projects funded under the Act to advise 
the individuals that they serve of the availability of the State 
Client Assistance Program and to provide information on how to 
obtain access to that program. The 1993 Amendments expanded this 
requirement to cover applicants for services as well as recipients 
of services.
--State Supported Employment Services Program. Each State is now 
required to serve only those individuals with the most severe 
disabilities under this program. In addition, States can now begin 
to serve individuals in supported employment as long as there is a 
reasonable expectation that an extended funding source will be 
identified during the course of the individual's rehabilitation 
program.
--Projects for Migratory Agricultural Workers and Seasonal 
Farmworkers with Disabilities. Nonprofit organizations, working in 
collaboration with State vocational rehabilitation agencies, can now 
apply for these project grants.
--Projects with Industry. These projects can now focus on careers 
and career advancement for individuals with disabilities. 
Eligibility for services must be determined by the project and 
confirmed, within 60 days, by the State vocational rehabilitation 
agency.
--Protection and Advocacy of Individual Rights. Although final 
regulations were issued for this program on August 12, 1993, 
additional statutory amendments were made to this program by Public 
Law 103-73. Changes with regard to eligible agencies, application 
requirements and limits on administrative costs have been 
incorporated.
--Special Projects and Demonstrations. The funding of construction 
and construction-related activities under the Special Demonstration 
Programs under parts 373 and 374 was eliminated by statute (Public 
Law 102-569).

Waiver of Notice of Proposed Rulemaking

    In accordance with section 431(b)(2)(A) of the General Education 
Provisions Act (20 U.S.C. 1232(b)(2)(A)) and the Administrative 
Procedure Act (5 U.S.C. 553), it is the practice of the Secretary to 
offer interested parties the opportunity to comment on proposed 
regulations. However, these amendments merely incorporate statutory 
changes into the regulations and do not implement substantive policy. 
Therefore, the Secretary has determined, pursuant to 5 U.S.C. 
553(b)(B), that public comment on the regulations is unnecessary and 
contrary to the public interest.

Regulatory Flexibility Act Certification

    The Secretary certifies that these regulations contain only 
technical amendments and would not have a significant economic impact 
on a substantial number of small entities.

Paperwork Reduction Act of 1980

    Sections 363.11, 363.52, 369.21, 373.30, 379.43, 380.15, 381.10, 
and 385.45 contain information collection requirements. As required by 
the Paperwork Reduction Act of 1980, the Department of Education will 
submit a copy of these sections to the Office of Management and Budget 
(OMB) for its review. (44 U.S.C. 3504(h)).
    State, public, and other nonprofit agencies and organizations, 
governing bodies of Indian tribes, and institutions of higher education 
are eligible to apply for grants under these regulations, as indicated 
in the various parts. The Department needs and uses the information to 
make grants. Annual public reporting burden for this collection of 
information is estimated to be as follows:
    (1) Sections 363.11 and 363.52--average 10 hours per response for 
81 respondents.
    (2) Section 369.21--average 1.5 hours per response for 425 
respondents.
    (3) Section 373.30--average 2 hours per response for 125 
respondents.
    (4) Section 379.43--average 40 hours per response for 125 
respondents.
    (5) Section 380.15--average 1.5 hours per response for 120 
respondents.
    (6) Section 381.10--average 1.5 hours per response for 57 
respondents.
    (7) Section 385.45--average 3.5 hours per response for 1,150 
respondents.
    These estimates include time for reviewing instructions, searching 
existing data sources, gathering and maintaining the data needed, and 
completing and reviewing the collection of information.
    Organizations and individuals desiring to submit comments on the 
information collection requirements should direct them to the Office of 
Information and Regulatory Affairs, OMB, room 3002, New Executive 
Office Building, Washington, DC 20503; Attention: Daniel J. Chenok.

Intergovernmental Review

    These programs, with the exception of Vocational Rehabilitation 
Service Projects for American Indians with Disabilities, are subject to 
the requirements of Executive Order 12372 and the regulations in 34 CFR 
part 79. The objective of the Executive order is to foster an 
intergovernmental partnership and a strengthened federalism by relying 
on processes developed by State and local governments for coordination 
and review of proposed Federal financial assistance.
    In accordance with the order, this document is intended to provide 
early notification of the Department's specific plans and actions for 
this program.

Assessment of Educational Impact

    Based on its own review, the Department has determined that the 
regulations in this document do not require transmission of information 
that is being gathered by or is available from another agency or 
authority of the United States.

List of Subjects

34 CFR Part 363

    Education, Grant programs--education, Reporting and recordkeeping 
requirements, Vocational rehabilitation.

34 CFR Part 369

    Education, Grant programs--education, Grant programs--social 
programs, Manpower training programs, Reporting and recordkeeping 
requirements, Research, Technical assistance, Vocational 
rehabilitation.

34 CFR Part 371

    Education, Grant programs--education, Vocational rehabilitation.

34 CFR Part 373

    Education, Grant programs--education, Reporting and recordkeeping 
requirements, Vocational rehabilitation.

34 CFR Part 374

    Education, Grant programs--education, Vocational rehabilitation.

34 CFR Part 375

    Education, Grant programs--social programs, Vocational 
rehabilitation.

34 CFR Part 376

    Education, Grant programs--education, Vocational rehabilitation.

34 CFR Part 377

    Education, Grant programs--social programs, Reporting and 
recordkeeping requirements, Vocational rehabilitation.

34 CFR Part 378

    Education, Grant programs--recreation, Recreation, Disability or 
individuals with disabilities.

34 CFR Part 379

    Business and industry, Education, Grant programs--social programs, 
Reporting and recordkeeping requirements, Vocational rehabilitation.

34 CFR Part 380

    Education, Grant programs--education, Reporting and recordkeeping 
requirements, Vocational rehabilitation.

34 CFR Part 381

    Education, Grant programs--social programs, Reporting and 
recordkeeping requirements, Vocational rehabilitation.

34 CFR Part 385

    Education, Grant programs--education, Reporting and recordkeeping 
requirements, Vocational rehabilitation.

34 CFR Part 387

    Education, Grant programs--education, Vocational rehabilitation.

34 CFR Part 389

    Education, Grant programs--education, Vocational rehabilitation.

34 CFR Part 390

    Education, Grant programs--education, Vocational rehabilitation.

(Catalog of Federal Domestic Assistance Numbers: 84.128 Vocational 
Rehabilitation Service Projects; 84.128 Special Projects and 
Demonstrations for Providing Supported Employment Services to 
Individuals with the Most Severe Disabilities and Technical 
Assistance Projects; 84.128 Special Projects and Demonstrations for 
Making Recreational Activities Accessible to Individuals with 
Disabilities; 84.128 Special Projects and Demonstrations for 
Providing Transitional Rehabilitation Services to Youth with 
Disabilities; 84.128G Vocational Rehabilitation Service Projects 
Program for Migratory Agricultural and Seasonal Farmworkers; 84.128J 
Projects for Initiating Recreational Programs for Individuals with 
Disabilities; 84.129 Rehabilitation Training; 84.187 The State 
Supported Employment Program; 84.234 Projects With Industry; 84.235 
Special Projects and Demonstrations for Providing Vocational 
Rehabilitation Services to Individuals with Disabilities; 84.235D 
Demonstration Projects to Increase Client Choice Program; 84.240 
Protection and Advocacy of Individual Rights; 84.246 Rehabilitation 
Short-Term Training; 84.250 Vocational Rehabilitation Service 
Projects for American Indians with Disabilities; 84.263 Experimental 
and Innovative Training; and 84.264 Rehabilitation Continuing 
Education Programs)

    Dated: February 4, 1994.
Judith E. Heumann,
Assistant Secretary for Special Education and Rehabilitative Services.
    The Secretary amends Parts 363, 369, 371, 373, 374, 375, 376, 377, 
378, 379, 380, 381, 385, 387, 389, and 390 of Title 34 of the Code of 
Federal Regulations as follows:
    1. Part 363 is revised to read as follows:

PART 363--THE STATE SUPPORTED EMPLOYMENT SERVICES PROGRAM

Subpart A--General

Sec.
363.1  What is the State Supported Employment Services Program?
363.2  Who is eligible for an award?
363.3  Who is eligible for services?
363.4  What are the authorized activities under a State Supported 
Employment Services grant?
363.5  What regulations apply?
363.6  What definitions apply?

Subpart B--How Does a State Apply for a Grant?

363.10  What documents must a State submit to receive a grant?
363.11  What information and assurances must be included in the 
State plan supplement?

Subpart C--How Does the Secretary Make a Grant?

363.20  How does the Secretary allocate funds?
363.21  How does the Secretary reallocate funds?

Subparts D-E--[Reserved]

Subpart F--What Post-Award Conditions Must Be Met by a State?

363.50  What collaborative agreements must the State develop?
363.51  What are allowable administrative costs?
363.52  What are the information collection and reporting 
requirements?
363.53  What special conditions apply to services and activities 
under this program?
363.54  What requirements must a State meet before it provides for 
the transition of an individual to extended services?
363.55  What are the requirements for successfully rehabilitating an 
individual in supported employment?
363.56  What notice requirements apply to this program?

    Authority: 29 U.S.C. 795j-q, unless otherwise noted.

Subpart A--General


Sec. 363.1  What is the State Supported Employment Services Program?

    Under the State Supported Employment Services Program, the 
Secretary provides grants to assist States in developing and 
implementing collaborative programs with appropriate entities to 
provide programs of supported employment services for individuals with 
the most severe disabilities who require supported employment services 
to enter or retain competitive employment.

(Authority: 29 U.S.C. 795j)


Sec. 363.2  Who is eligible for an award?

    Any State is eligible for an award under this program.

(Authority: 29 U.S.C. 795n)


Sec. 363.3  Who is eligible for services?

    A State may provide services under this program to any individual 
if--
    (a) The individual has been determined eligible for vocational 
rehabilitation services in accordance with the criteria in section 
102(a)(1) of the Act;
    (b) The individual has been determined to be an individual with the 
most severe disabilities; and
    (c) Supported employment has been identified as the appropriate 
rehabilitation objective for the individual on the basis of a 
comprehensive assessment of rehabilitation needs, including an 
evaluation of rehabilitation, career, and job needs.

(Authority: 29 U.S.C. 795m)


Sec. 363.4  What are the authorized activities under a State Supported 
Employment Services grant?

    Under this program, the following activities are authorized:
    (a) Any particularized assessment that is needed to supplement the 
comprehensive assessment of rehabilitation needs done under 34 CFR part 
361 and that is provided subsequent to the development of the 
individualized written rehabilitation program. The supplementary 
assessment may be provided in circumstances such as the following:
    (1) A reassessment of the suitability of the placement is 
warranted.
    (2) There is a change in the individual's medical condition.
    (b) Development of and placement in jobs for individuals with the 
most severe disabilities.
    (c) Provision of supported employment services that are needed to 
support individuals with the most severe disabilities in employment, 
such as--
    (1) Intensive on-the-job skills training and other training 
provided by skilled job trainers, co-workers, and other qualified 
individuals, and other services specified in section 103(a) of the Act 
in order to achieve and maintain job stability;
    (2) Follow-up services, including regular contact with employers, 
trainees with the most severe disabilities, parents, guardians or other 
representatives of trainees, and other suitable professional and 
informed advisors in order to reinforce and stabilize the job 
placement; and
    (3) Discrete post-employment services following transition that are 
unavailable from an extended services provider and that are necessary 
to maintain the job placement, such as job station redesign, repair and 
maintenance of assistive technology, and replacement of prosthetic and 
orthotic devices.

(Authority: 29 U.S.C. 795l)


Sec. 363.5  What regulations apply?

    The following regulations apply to the State Supported Employment 
Services Program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR Part 76 (State-Administered Programs).
    (2) 34 CFR Part 77 (Definitions that Apply to Department 
Regulations).
    (3) 34 CFR Part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (4) 34 CFR Part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (5) 34 CFR Part 81 (General Education Provisions Act--Enforcement).
    (6) 34 CFR Part 82 (New Restrictions on Lobbying).
    (7) 34 CFR Part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)).
    (8) 34 CFR Part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part 363.
    (c) The following regulations in 34 CFR Part 361 (The State 
Vocational Rehabilitation Services Program): Secs. 361.31; 361.32; 
361.33; 361.34; 361.35; 361.39; 361.40; 361.41; 361.42; 361.47(a); 
361.48; and 361.49.

    Note: Many of the regulatory provisions cross-referenced in 
Sec. 363.5(c) are affected by statutory changes made by the 
Rehabilitation Act Amendments of 1992. If these provisions conflict 
with statutory language, they are superseded by the statutory 
language. Program regulations for part 361 are being amended to 
implement statutory changes. When final regulations for part 361 are 
published, these cross-references will be corrected, if necessary.

(Authority: 29 U.S.C. 795j and 711(c))


Sec. 363.6  What definitions apply?

    (a) Definitions in 34 CFR part 361. The following terms used in 
this part are defined in 34 CFR 369.4(b):

Act
Designated State unit
Individual with disabilities
Individual with severe disabilities
State plan

    (b) Definitions in EDGAR. The following terms used in this part are 
defined in 34 CFR 77.1:

Fiscal Year
Nonprofit
Private Secretary
State

    (c) Other definitions. The following definitions also apply to this 
part:
    (1) Supported employment means--
    (i)(A) Competitive work in integrated work settings for individuals 
with the most severe disabilities--
    (1) For whom competitive employment has not traditionally occurred; 
or
    (2) For whom competitive employment has been interrupted or 
intermittent as a result of a severe disability; and
    (B) Who, because of the nature and severity of their disability, 
need intensive supported employment services from the designated State 
unit and extended services after transition in order to perform this 
work.
    (ii) Transitional employment for individuals with the most severe 
disabilities due to mental illness.
    (2) As used in the definition of ``Supported employment''--
    (i) Competitive work means work that at the time of transition is 
performed weekly on a full-time basis or on a part-time basis, as 
determined in each individualized written rehabilitation program, and 
for which an individual is compensated consistent with the wage 
standards provided for in the Fair Labor Standards Act;
    (ii)(A) Integrated work setting means job sites where either--
    (1)(i) Most employees are not disabled; and
    (ii) An individual with the most severe disabilities interacts on a 
regular basis, in the performance of job duties, with employees who are 
not disabled; and
    (iii) If an individual with the most severe disabilities is part of 
a distinct work group of only individuals with disabilities, the work 
group consists of no more than eight individuals; or
    (2) If there are no other employees or the only other employees are 
individuals who are part of a work group as described in paragraph 
(c)(2)(ii)(A)(1)(iii) of this section of an individual with the most 
severe disabilities interacts on a regular basis, in the performance of 
job duties, with individuals who are not disabled, including members of 
the general public.
    (B) The interaction required by paragraphs (c)(2)(ii)(A)(1)(ii) and 
(c)(2)(ii)(A)(2) of this section may not be satisfied by contact 
between an individual with the most severe disabilities and individuals 
who provide on-going support services at the job site;
    (iii) Supported employment services means on-going support services 
provided by the designated State unit with funds under this part--
    (A) For a period not to exceed 18 months, unless under special 
circumstances a longer period to achieve job stabilization has been 
jointly agreed to by the individual and the rehabilitation counselor 
and established in the individualized written rehabilitation program, 
before an individual with the most severe disabilities makes the 
transition to extended services; and
    (B) As discrete post-employment services following transition in 
accordance with Sec. 363.4(c)(3);
    (iv) Extended services means on-going support services and other 
appropriate services provided by a State agency, a private nonprofit 
organization, employer, or any other appropriate resource, from funds 
other than funds received under this part, Part 381, Part 376, or Part 
380, after an individual with the most severe disabilities has made the 
transition from State vocational rehabilitation agency support; and
    (v) Transitional employment means a series of temporary job 
placements in competitive work in an integrated work setting with on-
going support services for individuals with the most severe 
disabilities due to mental illness. In transitional employment, the 
provision of on-going support services must include continuing 
sequential job placements until job permanency is achieved.
    (3) On-going support services means services that are--
    (i) Needed to support and maintain an individual with the most 
severe disabilities in supported employment;
    (ii) Based on a determination by the designated State unit of the 
individual's needs as specified in an individualized written 
rehabilitation program; and
    (iii) Furnished by the designated State unit from the time of job 
placement until transition to extended services, except as provided in 
Sec. 363.4(c)(3) and, following transition, by one or more extended 
services providers throughout the individual's term of employment in a 
particular job placement or multiple placements if those placements are 
being provided under a program of transitional employment. On-going 
support services must include, at a minimum, twice-monthly monitoring 
at the work site of each individual in supported employment to assess 
employment stability, unless under special circumstances, especially at 
the request of the individual, the individualized written 
rehabilitation program provides for off-site monitoring, and, based 
upon that assessment, the coordination or provision of specific 
services at or away from the work site, that are needed to maintain 
employment stability. If off-site monitoring is determined to be 
appropriate, it must, at a minimum, consist of two meetings with the 
individual and one contact with the employer each month. On-going 
support services consist of--
    (A) Any particularized assessment needed to supplement the 
comprehensive assessment of rehabilitation needs;
    (B) The provision of skilled job trainers who accompany the 
individual for intensive job skill training at the work site;
    (C) Job development and placement;
    (D) Social skills training;
    (E) Regular observation or supervision of the individual;
    (F) Follow-up services such as regular contact with the employers, 
the individuals, the parents, family members, guardians, advocates or 
authorized representatives of the individuals, and other suitable 
professional and informed advisors, in order to reinforce and stabilize 
the job placement;
    (G) Facilitation of natural supports at the worksite;
    (H) Any other service identified in the scope of rehabilitation 
services described in 34 CFR part 361; and
    (I) Any service similar to the foregoing services.

(Authority: 29 U.S.C. 706(18), 706(27), 706(33), 706(34), 711(c), 
and 795j)

Subpart B--How Does a State Apply for a Grant?


Sec. 363.10  What documents must a State submit to receive a grant?

    To receive a grant under this part, a State must submit to the 
Secretary, as part of the State plan under 34 CFR part 361, a State 
plan supplement that meets the requirements of Sec. 363.11.

(Authority: 29 U.S.C. 795n)


Sec. 363.11  What information and assurances must be included in the 
State plan supplement?

    Each State plan supplement must include the following:
    (a) Designated State agency. Designate the State unit or units for 
vocational rehabilitation services identified in the State plan 
submitted under 34 CFR part 361 as the State agency or agencies to 
administer this program.
    (b) Results of needs assessment. Summarize the results of the needs 
assessment of individuals with severe disabilities conducted under 
title I of the Act with respect to the rehabilitation and career needs 
of individuals with severe disabilities and the need for supported 
employment services. The results of the needs assessment must address 
the coordination and use of information within the State relating to 
section 618(b)(1)(c) of the Individuals with Disabilities Education 
Act.
    (c) Quality, scope, and extent of services. Describe the quality, 
scope, and extent of supported employment services to be provided to 
individuals with the most severe disabilities under this program. The 
description must address the timing of the transition to extended 
services referred to in Sec. 363.50(b)(2).
    (d) Distribution of funds. Describe the State's goals and plans 
with respect to the distribution of funds received under Sec. 363.20.
    (e) Collaboration. Demonstrate evidence of the efforts of the 
designated State unit to identify and make arrangements, including 
entering into cooperative agreements, with--
    (1) Other State agencies and other appropriate entities to assist 
in the provision of supported employment services; and
    (2) Other public or non-profit agencies or organizations within the 
State, employers, natural supports, and other entities with respect to 
the provision of extended services.
    (f) Minority outreach. Describe the designated State unit's 
outreach procedures for identifying and serving individuals with the 
most severe disabilities who are minorities.
    (g) Assurances. Provide assurances that--
    (1) Funds made available under this part will only be used to 
provide supported employment services authorized under the Act to 
individuals who are eligible under this part to receive the services;
    (2) The comprehensive assessments of individuals with severe 
disabilities conducted under section 102(b)(1)(A) and funded under 
title I of the Act will include consideration of supported employment 
as an appropriate rehabilitation objective;
    (3) An individualized written rehabilitation program, as required 
by section 102 of the Act, will be developed and updated, using funds 
under title I, that--
    (i) Specifies the supported employment services to be provided to 
each individual served under this program, including a description of 
the expected extended services needed, which may include natural 
supports, and an identification of the State, Federal, or private 
programs or other resources that will provide the extended services, 
including a description of the basis for determining that extended 
services are available, or to the extent that it is not possible to 
identify the source of extended services at the time the individualized 
written rehabilitation program is developed, a statement describing the 
basis for concluding that there is a reasonable expectation that 
sources will become available;
    (ii) Provides for periodic monitoring to ensure that each 
individual with severe disabilities is making satisfactory progress 
toward meeting the weekly work requirement established in the 
individualized written rehabilitation program by the time of transition 
to extended services;
    (4) The State will use funds provided under this part only to 
supplement, and not supplant, the funds provided under title I of the 
Act, in providing supported employment services specified in the 
individualized written rehabilitation program;
    (5) Services provided under an individualized written 
rehabilitation program will be coordinated with services provided under 
other individualized plans established under other Federal or State 
programs;
    (6) To the extent job skills training is provided, the training 
will be provided on-site;
    (7) Supported employment services will include placement in an 
integrated setting for the maximum number of hours possible based on 
the unique strengths, resources, interests, concerns, abilities, and 
capabilities of individuals with the most severe disabilities;
    (8) The designated State agency or agencies will expend no more 
than 5 percent of the State's allotment under this part for 
administrative costs of carrying out this program; and
    (9) The public participation requirements of section 101(a)(23) are 
met.
    (h) Other information. Contain any other information and be 
submitted in the form and in accordance with the procedures that the 
Secretary may require.

(Approved by the Office of Management and Budget under control 
number 1820-0500)

(Authority: 29 U.S.C. 795n)

Subpart C--How Does the Secretary Make a Grant?


Sec. 363.20  How does the Secretary allocate funds?

    The Secretary allocates funds under this program in accordance with 
section 632(a) of the Act.

(Authority: 29 U.S.C. 795k)


Sec. 363.21  How does the Secretary reallocate funds?

    The Secretary reallocates funds in accordance with section 632(b) 
of the Act.

(Authority: 29 U.S.C. 795k)

Subparts D-E--[Reserved]

Subpart F--What Post-Award Conditions Must Be Met by a State?


Sec. 363.50  What collaborative agreements must the State develop?

    (a) A designated State unit must enter into one or more written 
cooperative agreements or memoranda of understanding with other 
appropriate State agencies, private nonprofit organizations, and other 
available funding sources to ensure collaboration in a plan to provide 
supported employment services and extended services to individuals with 
the most severe disabilities.
    (b) A cooperative agreement or memorandum of understanding must, at 
a minimum, specify the following:
    (1) The supported employment services to be provided by the 
designated State unit with funds received under this part.
    (2) The extended services to be provided by relevant State 
agencies, private nonprofit organizations, or other sources following 
the cessation of supported employment services under this part.
    (3) The estimated funds to be expended by the participating party 
or parties in implementing the agreement or memorandum.
    (4) The projected number of individuals with the most severe 
disabilities who will receive supported employment services and 
extended services under the agreement or memorandum.

(Authority: 29 U.S.C. 795n)


Sec. 363.51  What are the allowable administrative costs?

    (a) Administrative costs--general. Expenditures are allowable for 
the following administrative costs:
    (1) Administration of the State plan supplement for this program.
    (2) Planning program development, and personnel development to 
implement a system of supported employment services.
    (3) Monitoring, supervision, and evaluation of this program.
    (4) Technical assistance to other State agencies, private nonprofit 
organizations, and businesses and industries.
    (b) Limitation on administrative costs. Not more than five percent 
of a State's allotment may be expended for administrative costs for 
carrying out this program.

(Authority: 29 U.S.C. 795n)


Sec. 363.52  What are the information collection and reporting 
requirements?

    (a) A State shall collect and report information as required under 
section 13 of the Act for each individual with the most severe 
disabilities served under this program.
    (b) The State shall collect and report separately information for
    (1) Supported employment clients served under this program; and
    (2) Supported employment clients served under 34 CFR part 361.

(Approved by the Office of Management and Budget under control 
number 1820-0551)

(Authority: 29 U.S.C. 712 and 795o)


Sec. 363.53  What special conditions apply to services and activities 
under this program?

    Each grantee shall coordinate the services provided to an 
individual under this part and under 34 CFR part 361 to ensure that the 
services are complementary and not duplicative.

(Authority: 29 U.S.C. 711(c) and 795p)


Sec. 363.54  What requirements must a State meet before it provides for 
the transition of an individual to extended services?

    A designated State unit must provide for the transition of an 
individual with the most severe disabilities to extended services no 
later than 18 months after placement in supported employment, unless a 
longer period is established in the individualized written 
rehabilitation program, and only if the individual has made substantial 
progress toward meeting the hours-per-week work goal provided for in 
the individualized written rehabilitation program, the individual is 
stabilized in the job, and extended services are available and can be 
provided without a hiatus in services.

(Authority: 29 U.S.C. 795n and 711(c))


Sec. 363.55  What are the requirements for successfully rehabilitating 
an individual in supported employment?

    An individual with the most severe disabilities who is receiving 
supported employment services is considered to be successfully 
rehabilitated if the individual maintains a supported employment 
placement for 60 days after making the transition to extended services.

(Authority: 29 U.S.C. 711(c))


Sec. 363.56  What notice requirements apply to this program?

    Each grantee must advise applicants for or recipients of services 
under this part, or as appropriate, the parents, family members, 
guardians, advocates, or authorized representatives of those 
individuals, of the availability and purposes of the State's Client 
Assistance Program, including information on seeking assistance from 
that program.

(Authority: 29 U.S.C. 718a)

PART 369--VOCATIONAL REHABILITATION SERVICE PROJECTS

    2. The authority citation for part 369 continues to read as 
follows:

    Authority: 29 U.S.C 711(c), 732, 750, 775, 777(a)(1), 777(a)(3), 
777(b), 777f, and 795g, unless otherwise noted.

    3. In 34 CFR part 369 the word ``handicaps'' is removed, and the 
word ``disabilities'' is added, in its place, in the following places:
    (a) Section 369.1(a);
    (b) Section 369.2(a) (twice), (c) (twice), (d) (twice), and (f) 
(twice);
    (c) Section 369.31(a)(2)(v)(A) and (b)(2)(iv)(A);
    (d) Section 369.43;
    (e) Section 369.46; and
    (f) Section 369.48.


Sec. 369.1  [Amended]

    4. Section 369.1 is further amended by removing the word 
``Handicaps'', and adding, in its place, the word ``Disabilities'' in 
paragraphs (b)(1), (b)(4), (b)(5), and (b)(7); removing the words 
``Severe Handicaps'', and adding, in their place, the word 
``Disabilities'' in paragraph (b)(3); removing the words ``Handicapped 
Youth'', and adding, in their place, the words ``Youths with 
Disabilities'' in paragraph (b)(6); and revising the authority citation 
following the section to read as follows:

(Authority: Secs. 112, 130, 305, 308, 311a, 311(a)(3), 311(a)(4), 
312, 316, and 621 of the Act; 29 U.S.C. 732, 750, 775, 776, 
777(a)(1), 777(a)(3), 777(a)(4), 777(b), 777f, and 795g)

    5. Section 369.2 is further amended by removing the word ``severe'' 
in paragraph (c), removing the words ``handicapped youth'', and adding, 
in their place, the words ``youths with disabilities'' in paragraph 
(h), and revising paragraphs (e) and (g) to read as follows:


Sec. 369.2  Who is eligible for assistance under these programs?

* * * * *
    (e) Vocational rehabilitation service projects for migratory 
agricultural workers and seasonal farmworkers with disabilities. State 
vocational rehabilitation agencies, local agencies administering 
vocational rehabilitation programs under written agreements with State 
agencies, and nonprofit agencies working in collaboration with State 
vocational rehabilitation agencies are eligible for assistance to 
support projects for providing vocational rehabilitation services to 
migratory agricultural workers or seasonal farmworkers with 
disabilities.
* * * * *
    (g) Projects with industry. Any designated State unit, labor union, 
community rehabilitation program provider, Indian tribe or tribal 
organization employer, trade association, or other agency or 
organization with the capacity to create and expand job and career 
opportunities for individuals with disabilities is eligible for 
assistance to support a project with industry.
* * * * *
    6. Section 369.3 is amended by revising paragraph (a) to read as 
follows:


Sec. 369.3  What regulations apply to these programs?

* * * * *
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities); except the Part 79 does not apply 
to the Vocational Rehabilitation Service Program for American Indians 
with Disabilities.
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)).
    (9) 34 CFR part 86 (Drug-Free Schools and Campuses).
* * * * *
    7. Section 369.4 is amended by revising paragraph (b) to read as 
follows:


Sec. 369.4  What definitions apply to these programs?

* * * * *
    (b) The following definitions also apply to programs under 
Vocational Rehabilitation Service Projects:
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 
as amended.
    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--
    (1) Medical, psychiatric, psychological, social, and vocational 
services that are provided under one management;
    (2) Testing, fitting, or training in the use of prosthetic and 
orthotic devices;
    (3) Recreational therapy;
    (4) Physical and occupational therapy;
    (5) Speech, language and hearing therapy;
    (6) Psychiatric, psychological and social services, including 
positive behavior management;
    (7) Assessment for determining eligibility and vocational 
rehabilitation needs;
    (8) Rehabilitation technology;
    (9) Job development, placement, and retention services;
    (10) Evaluation or control of specific disabilities;
    (11) Orientation and mobility services for individuals who are 
blind;
    (12) Extended employment;
    (13) Psychosocial rehabilitation services;
    (14) Supported employment services and extended services;
    (15) Services to family members when necessary to the vocational 
rehabilitation of the individual;
    (16) Personal assistance services; or
    (17) Services similar to the services described in paragraphs (1) 
through (16) of this definition.

(Authority: Sec. 7(25) of the Act; 29 U.S.C. 706(25))

    Employment outcome means entering or retaining full-time or, if 
appropriate, part-time competitive employment in the integrated labor 
market, the practice of a profession, self-employment, homemaking, farm 
or family work (including work for which payment is in kind rather than 
cash), extended employment in a community rehabilitation program, 
supported employment, or other gainful work.

(Authority: Sec 7(5) of the Act; 29 U.S.C. 706(5))

    Individual who is blind means a person who is blind within the 
meaning of the law relating to vocational rehabilitation in each State.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    Individual with a disability means any individual who--
    (1) Has a physical or mental impairment that for that individual 
constitutes or results in a substantial impediment to employment; and
    (2) Can benefit in terms of an employment outcome from vocational 
rehabilitation services provided under Titles I, III, VI, or VIII of 
the Act.

(Authority: Sec. 7(8)(A) of the Act; 29 U.S.C. 706(8)(A))

    Individual with a severe disability means an individual with a 
disability--
    (1) Who has a severe physical or mental impairment that 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;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) 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 disabilities, end-
stage renal disease, or another disability or combination of 
disabilities determined to cause comparable substantial functional 
limitation.

(Authority: Sec. 7(15)(A) of the Act; 29 U.S.C. 706(15)(A))

    Physical and mental restoration services means--
    (1) Medical or corrective surgical treatment for the purpose of 
correcting or modifying substantially a physical or mental condition 
that is stable or slowly progressive and constitutes a substantial 
impediment to employment and that is likely, within a reasonable period 
of time, to be corrected or substantially modified as a result of the 
medical or surgical treatment;
    (2) Diagnosis and treatment for mental or emotional disorders by 
qualified personnel in accordance with State licensure laws;
    (3) Dentistry;
    (4) Nursing services;
    (5) Necessary hospitalization (either inpatient or outpatient care) 
in connection with surgery or treatment and clinic services;
    (6) Convalescent or nursing home care;
    (7) Drugs and supplies;
    (8) Prosthetic, orthotic, or other assistive devices, including 
hearing aids essential to obtaining or retaining employment;
    (9) Eyeglasses and visual services, including visual training, and 
the examination and services necessary for the prescription and 
provision of eyeglasses, contact lenses, microscopic lenses, telescopic 
lenses, and other special visual aids, prescribed by qualified persons 
under State licensure laws, that are selected by the individual;
    (10) Podiatry;
    (11) Physical therapy;
    (12) Occupational therapy;
    (13) Speech and hearing therapy;
    (14) Psychological services;
    (15) Therapeutic recreation services;
    (16) Medical or medically related social work services;
    (17) Treatment of either acute or chronic medical complications and 
emergencies that are associated with or arise out of the provision of 
physical and mental restoration services or that are inherent in the 
condition under treatment;
    (18) Special services for the treatment of individuals with end-
stage renal disease, including transplantation, dialysis, artificial 
kidneys, and supplies; and
    (19) Other medical or medically related rehabilitation services, 
including art therapy, dance therapy, music therapy, and psychodrama.

(Authority: Sec. 103(a)(4) of the Act; 29 U.S.C. 723(a)(4))

    Physical or mental impairment means a physical or mental condition 
which materially limits, contributes to limiting or, if not corrected, 
will probably result in limiting an individual's employment activities 
or vocational functioning.

(Authority: Sec. 7(8)(A) of the Act; 29 U.S.C. 706(8)(A))

    Reservation means a Federal or State Indian reservation, public 
domain Indian allotment, former Indian reservation in Oklahoma, and 
land held by incorporated Native groups, regional corporations and 
village corporations under the provisions of the Alaska Native Claims 
Settlement Act.

(Authority: Sec. 130(c) of the Act; 29 U.S.C. 750(c))

    State agency means the sole State agency designated to administer 
(or supervise local administration of) the State plan for vocational 
rehabilitation services. The term includes the State agency for the 
blind, if designated as the sole State agency with respect to that part 
of the plan relating to the vocational rehabilitation of individuals 
who are blind.

(Authority: Sec. 7(3)(A) and 101(a)(1)(A) of the Act; 29 U.S.C. 
721(a)(1)(A))

    State plan means the State plan for vocational rehabilitation 
services. (34 CFR Part 361)

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    State unit, State vocational rehabilitation unit or designated 
State unit means either--
    (1) The State agency vocational rehabilitation bureau, division, or 
other organizational unit that is primarily concerned with vocational 
rehabilitation or vocational and other rehabilitation of individuals 
with disabilities and that is responsible for the administration of the 
vocational rehabilitation program of the State agency; or
    (2) The independent State commission, board, or other agency that 
has vocational rehabilitation, or vocational and other rehabilitation 
as its primary function.

(Authority: Sec. 7(3) of the Act; 29 U.S.C. 706(3))

    Substantial impediment to employment means that a physical or 
mental impairment (in light of attendant medical, psychological, 
vocational, educational, and other related factors) significantly 
restricts an individual's occupational performance by preventing his 
preparing for, obtaining, or retaining employment consistent with his 
capacities and abilities.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))

    Vocational rehabilitation services: (1) When provided to an 
individual, means any goods or services necessary to render an 
individual with a disability employable, including, but not limited to, 
the following--
    (i) An assessment for determining eligibility and vocational 
rehabilitation needs by qualified personnel, including, if appropriate, 
an assessment by personnel skilled in rehabilitation technology;
    (ii) Counseling, guidance, and work-related placement services for 
individuals with disabilities, including job search assistance, 
placement assistance, job retention services, personal assistance 
services, and follow-up, follow-along, and specific diagnosis services 
necessary to assist such individuals to maintain, regain, or advance in 
employment;
    (iii) Vocational and other training services for individuals with 
disabilities, including personal and vocational adjustment, books, or 
other training materials;
    (iv) Services to the families of such individuals with 
disabilities, if necessary to the adjustment or rehabilitation of such 
individuals;
    (v) Physical and mental restoration services;
    (vi) Maintenance for additional costs incurred while participating 
in rehabilitation;
    (vii) Interpreter services and note-taking services for individuals 
who are deaf, including tactile interpreting for individuals who are 
deaf-blind;
    (viii) Reader services and note-taking services for those 
individuals who are determined to be blind after an examination by 
qualified personnel under State licensure laws;
    (ix) Recruitment and training services to provide new employment 
opportunities in the fields of rehabilitation, health, welfare, public 
safety and law enforcement, and other appropriate service employment;
    (x) Rehabilitation teaching services and orientation and mobility 
services for individuals who are blind;
    (xi) Occupational licenses, tools, equipment, and initial stocks 
and supplies;
    (xii) Transportation in connection with the rendering of any 
vocational rehabilitation service;
    (xiii) Telecommunications, sensory, and other technological aids 
and devices;
    (xiv) Rehabilitation technology services;
    (xv) Referral and other services designed to assist individuals 
with disabilities in securing needed services from other agencies;
    (xvi) Transition services that promote or facilitate the 
accomplishment of long-term rehabilitation goals and intermediate 
rehabilitation objectives;
    (xvii) On-the-job or other related personal assistance services 
provided while an individual with a disability is receiving vocational 
rehabilitation services; and
    (xviii) Supported employment services.

(Authority: Sec. 103(a) of the Act; 29 U.S.C. 723(a))

    (2) When provided for the benefit of groups of individuals, 
Vocational rehabilitation services also means--
    (i) In the case of any type of small business enterprise operated 
by individuals with the most severe disabilities under the supervision 
of the State unit, management services, and supervision and acquisition 
of vending facilities or other equipment, and initial stocks and 
supplies;
    (ii) The establishment, development, or improvement of community 
rehabilitation programs, including, under special circumstances, the 
construction of a rehabilitation facility to provide services that 
promote integration and competitive employment;
    (iii) The provision of services, including services provided at 
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 written rehabilitation 
program of any one individual with disabilities;
    (iv) The use of existing telecommunications systems;
    (v) The use of services providing recorded material for persons who 
are blind and captioned films or video cassettes for persons who are 
deaf; and
    (vi) Technical assistance and support services to businesses that 
are not subject to Title I of the Americans with Disabilities Act of 
1990 and that are seeking to employ individuals with disabilities.

(Authority: Sec. 103(b) of the Act; 29 U.S.C. 723(b))

    8. A new Sec. 369.21 is added to subpart C to read as follows:


Sec. 369.21  What application requirement applies to these programs?

    Each applicant for a grant under a program under 34 CFR Parts 372, 
373, 374, 375, 376, 378, or 379 must include in its application a 
description of the manner in which it will address the needs of 
individuals with disabilities from minority backgrounds.

(Approved by the Office of Management and Budget under control 
number 1820-0018)

(Authority: Sec. 21(b)(5) of the Act; 29 U.S.C. 718b)

    9. Section 369.42 is amended by revising the heading, designating 
the existing text as paragraph (a), adding a new paragraph (b), and 
revising the authority citation following the section to read as 
follows:


Sec. 369.42  What special requirements affect provision of services to 
individuals with disabilities?

* * * * *
    (b) Each grantee under 34 CFR parts 371, 372, 373, 374, 375, 376, 
378, or 379 must advise applicants for or recipients of services under 
its project, or as appropriate, the parents, family members, guardians, 
advocates, or authorized representatives of those individuals, of the 
availability and purposes of the State's Client Assistance Program, 
including information on seeking assistance from that program.

(Authority: Secs. 20 and 306(h) of the Act; 29 U.S.C. 718a and 
776(h))


Sec. 369.44  [Removed]

    10. Section 369.44 is removed.


Sec. 369.45  [Redesignated as Sec. 369.44 and amended]

    11. Section 369.45 is redesignated as Sec. 369.44 and amended by 
removing the word ``workshops'' in the heading and text, and adding, in 
its place, the words ``community rehabilitation programs''.


Sec. 369.46  [Redesignated as Sec. 369.45]

    12. Section 369.46, as amended, is redesignated as Sec. 369.45.


Sec. 369.47  [Redesignated as Sec. 369.46]

    13. Section 369.47 is redesignated as Sec. 369.46.


Sec. 369.48  [Redesignated as Sec. 369.47]

    14. Section 369.48, as amended, is redesignated as Sec. 369.47.
    15. The title of part 371 is revised to read as follows:

PART 371--VOCATIONAL REHABILITATION SERVICE PROJECTS FOR AMERICAN 
INDIANS WITH DISABILITIES

    16. The authority citation for part 371 continues to read as 
follows:

    Authority: 29 U.S.C. 711(c) and 750, unless otherwise noted.

    17. In 34 CFR part 371 the word ``handicaps'' is removed, and the 
word ``disabilities'' is added, in its place, in the following places:
    (a) Section 371.1;
    (b) Section 371.21(d) (twice), (e), (f), (g), (h), and (i);
    (c) Section 371.30(f)(2) (i) and (ii);
    (d) Section 371.41(a)(2) and (b);
    (e) Section 371.42 (a) and (c); and
    (f) Section 371.43 (a) and (b).
    18. Section 371.1 is amended by revising the heading to read as 
follows:


Sec. 371.1  What is the Vocational Rehabilitation Service Program for 
American Indians with Disabilities?

* * * * *


Sec. 371.4  [Amended]

    19. Section 371.4 is amended by revising the authority citation 
following the definition for ``Reservation'' in paragraph (b) to read 
as follows:

(Authority: Secs. 12(c) and 130(c) of the Act; 29 U.S.C. 711(c) and 
750(c))

    20. Section 371.10 is revised to read as follows:


Sec. 371.10  What types of projects are authorized under this program?

    The Vocational Rehabilitation Service Program for American Indians 
with Disabilities provides financial assistance for the establishment 
and operation of tribal vocational rehabilitation service programs for 
American Indians with disabilities who reside on Federal or State 
reservations.

(Authority: Sec. 130(a) of the Act; 29 U.S.C. 750(a))

    21. Section 371.21 is amended by revising paragraph (c), removing 
the word ``facilities'' in paragraph (j), and adding, in its place, the 
words ``community rehabilitation programs'', and revising the authority 
citation following paragraph (j) to read as follows:


Sec. 371.21  What are the special application requirements related to 
the State plan program?

* * * * *
    (c) Priority in the delivery of vocational rehabilitation service 
will be given to those American Indians with disabilities who are the 
most severely disabled.
* * * * *
    (j) * * *

(Authority: Secs. 12(c) and 101(a) (6) and (7) of the Act; 29 U.S.C. 
711(c) and 721(a) (6) and (7))
* * * * *


Sec. 371.40  [Amended]

    22. Section 371.40 is amended by revising the authority citation 
following the section to read as follows:

(Authority: Secs. 12(c) and 130(a) of the Act; 29 U.S.C. 711(c) and 
750(a))


Sec. 371.42  [Amended]

    23. Section 371.42 is amended by removing the words 
``rehabilitation facility'' in paragraph (a), and adding, in their 
place, the words ``community rehabilitation program''.


Sec. 371.43  [Amended]

    24. Section 371.43 is amended by revising the authority citation 
following the section to read as follows:

(Authority: Secs. 12(c) and 130(b)(2) of the Act; 29 U.S.C. 711(c) 
and 750(b)(2))

PART 373--[AMENDED]

    25. The title of part 373 is revised to read as follows:

PART 373--SPECIAL PROJECTS AND DEMONSTRATIONS FOR PROVIDING 
VOCATIONAL REHABILITATION SERVICES TO INDIVIDUALS WITH DISABILITIES

    26. The authority citation for part 373 continues to read as 
follows:

    Authority: 29 U.S.C. 711(c), 777a(a)(1), and 777a(a)(4), unless 
otherwise noted.

    27. Section 373.1 is revised to read as follows:


Sec. 373.1  What is the Program of Special Projects and Demonstrations 
for Providing Vocational Rehabilitation Services to Individuals with 
Disabilities?

    This program is designed to provide financial assistance to 
projects for expanding or otherwise improving vocational rehabilitation 
services and other rehabilitation services for individuals with 
disabilities, especially individuals with the most severe disabilities.

(Authority: Sec. 311(a) of the Act; 29 U.S.C. 777(a))

    28. Section 373.10 is revised to read as follows:


Sec. 373.10  What types of projects are authorized under this program?

    (a) Authorized activities under this program include carrying out 
special projects concerned with establishing programs for expanding or 
otherwise improving vocational rehabilitation services and other 
rehabilitation services to individuals with disabilities, especially 
those individuals with the most severe disabilities.
    (b) Projects also may be conducted to meet the special needs of 
isolated populations of individuals with disabilities, particularly 
among American Indians residing on or outside of reservations.
    (c) Individuals with disabilities served under this program include 
individuals who are blind, individuals who are deaf, and other groups 
of individuals with disabilities who are members of populations that 
are unserved or underserved by programs under the Act, as identified by 
the Secretary in a notice published in the Federal Register.

(Authority: Sec. 311(a)(1) and 311(a)(4) of the Act; 29 U.S.C. 
777(a)(1) and 777a(a)(4))

    29. Section 373.11 is amended by revising the heading, the 
undesignated introductory text, and paragraphs (a) and (c) to read as 
follows:


Sec. 373.11  What specific activities must be supported under this 
program to provide services to individuals who are blind?

    Projects in which services are provided to individuals who are 
blind must--
    (a) Demonstrate innovative methods of providing intensive 
rehabilitation services needed to rehabilitate individuals who are 
blind; or
* * * * *
    (c) Conduct coordinated rehabilitation service activities with 
other public or nonprofit agencies serving individuals who are blind in 
the same area.
    30. Section 373.12 is revised to read as follows:


Sec. 373.12  What specific activities must be supported under this 
program to provide services to individuals who are deaf?

    Projects in which services are provided to individuals who are deaf 
must--
    (a) Demonstrate innovative methods of providing the specialized 
services needed to rehabilitate and make maximum use of the vocational 
potential of individuals who are deaf; or
    (b) Conduct coordinated activities with other public and nonprofit 
agencies administering programs for people who are deaf in the same 
area in order to expand or improve rehabilitation services for 
individuals who are deaf.

(Authority: Sec. 311(a) of the Act; 29 U.S.C. 777a)

    31. Section 373.30 is amended by revising paragraphs (f)(2)(i), 
(g)(2)(i), (g)(2)(iv), and (h)(2) to read as follows:


Sec. 373.30  What selection criteria does the Secretary use under this 
program?

* * * * *
    (f) * * *
    (2) * * *
    (i) A broad range of vocational rehabilitation services and other 
rehabilitation services will be available to individuals with 
disabilities, especially individuals with the most severe disabilities, 
within the project;
* * * * *
    (g) * * *
    (2) * * *
    (i) The project will be designed primarily for individuals with the 
most severe disabilities being provided vocational rehabilitation 
services by State vocational rehabilitation units;
* * * * *
    (iv) All comparable benefits for which project clients might be 
eligible will be utilized.
    (h) * * *
    (2) The Secretary looks for information that shows that the 
approach to be used in providing vocational rehabilitation services and 
other rehabilitation services will be innovative and appropriate to the 
groups of individuals with severe disabilities being served.
* * * * *
    32. Section 373.40 is revised to read as follows:


Sec. 373.40  What are the matching requirements?

    Grants may be made for paying all or part of the cost of activities 
covered under this program. If part of the costs is to be paid by the 
grantee, the amount of grantee participation is specified in the 
application notice and will not be more than 10 percent of the total 
cost of the project.

(Authority: Secs. 12(c) and 311 of the Act; 29 U.S.C. 711(c) and 
777(a))


Secs. 373.41 and 373.42  [Removed]

    33. Sections 373.41 and 373.42 are removed.

PART 374--[AMENDED]

    34. The title of part 374 is revised to read as follows:

PART 374--SPECIAL PROJECTS AND DEMONSTRATIONS FOR MAKING 
RECREATIONAL ACTIVITIES ACCESSIBLE TO INDIVIDUALS WITH DISABILITIES

    35. The authority citation for part 374 continues to read as 
follows:

    Authority: 29 U.S.C. 711(c) and 777a(a)(3), unless otherwise 
noted.

    36. Section 374.1 is revised to read as follows:


Sec. 374.1  What is the Program of Special Projects and Demonstrations 
for Making Recreational Activities Accessible to Individuals with 
Disabilities?

    This program is designed to provide financial assistance to 
projects to demonstrate methods of making recreational activities fully 
accessible to individuals with disabilities.

(Authority: Sec. 311(a)(3) of the Act; 29 U.S.C. 777a(a)(3)).


Sec. 374.3  [Amended]

    37. Section 374.3 is amended by removing ``734'' in paragraph (b), 
and adding, in its place, ``374''.
    38. Section 374.10 is amended by revising paragraph (a) and by 
removing the word ``handicaps'' both times it appears in paragraph (c), 
and adding, in its place, the word ``disabilities'' to read as follows:


Sec. 374.10  What types of projects are authorized under this program?

    (a) This program provides financial assistance for the support of 
special projects and demonstrations, and related research and 
evaluation, to demonstrate methods of making recreational activities 
fully accessible to individuals with disabilities.
* * * * *


Sec. 374.30  [Amended]

    39. Section 374.30 is amended by removing the word ``handicaps'', 
and adding, in its place, the word ``disabilities'' in paragraphs 
(f)(1), (g)(1), (g)(2)(i), (g)(2)(ii), (g)(2)(iv), and (g)(2)(v).
    40. Section 374.40 is revised to read as follows:


Sec. 374.40  What are the matching requirements?

    Grants may be made for paying all or part of the costs of 
activities covered under this program. If part of the costs is to be 
paid by the grantee, the amount of grantee participation is specified 
in the application notice and will not be more than 10 percent of the 
total cost of the project.

(Authority: Secs. 12(c) and 311(a)(3) of the Act; 29 U.S.C. 711(c) 
and 777a(a)(3)).


Sec. 374.41  [Removed]

    41. Section 374.41 is removed.


Sec. 374.42  [Redesignated as Sec. 374.41 and amended]

    42. Section 374.42 is redesignated as Sec. 374.41 and amended by 
removing the word ``handicaps'', and adding, in its place the word 
``disabilities''.


Sec. 374.43  [Removed]

    43. Section 374.43 is removed.

PART 375--[AMENDED]

    44. The heading for part 375 is revised to read as follows:

PART 375--VOCATIONAL REHABILITATION SERVICE PROJECTS PROGRAM FOR 
MIGRATORY AGRICULTURAL WORKERS AND SEASONAL FARMWORKERS WITH 
DISABILITIES

    45. The authority citation for part 375 continues to read as 
follows:

    Authority: 29 U.S.C. 711(c) and 777b, unless otherwise noted.

    46. The authority citations for Secs. 375.30, 375.40, 375.41, and 
375.42 are revised to read as follows:

(Authority: Secs. 12(c) and 312 of the Act; 29 U.S.C. 711(c) and 
777b).

    47. In 34 CFR part 375 the word ``handicaps'' is removed, and the 
word ``disabilities'' is added, in its place, in the following places:
    (a) Section 375.1;
    (b) Section 375.10 (twice); and
    (c) Section 375.41 (a) and (b).
    48. Section 375.1 is amended by revising the heading and the 
authority citation following the section to read as follows:


Sec. 375.1  What is the Vocational Rehabilitation Service Projects 
Program for Migratory Agricultural Workers and Seasonal Farmworkers 
with Disabilities?

* * * * *
(Authority: Sec. 312 of the Act; 29 U.S.C. 777b)


Sec. 375.2  [Amended]

    49. Section 375.2 is amended by adding ``, nonprofit agencies 
working in collaboration with State vocational rehabilitation 
agencies,'' before the word ``or'' in paragraph (a).


Sec. 375.4  [Amended]

    50. Section 375.4 is amended by removing the word ``handicaps'' in 
paragraph (b)(1) both times it appears, and adding, in its place, the 
word ``disabilities''.


Sec. 375.10  [Amended]

    51. Section 375.10 is amended by removing the word ``handicapped'' 
and adding, in its place, the word ``disabled''.


Sec. 375.30  [Amended]

    52. Section 375.30 is amended by removing the words ``State or 
local'' in paragraph (g)(2), and adding, in their place, the word 
``applicant''.


Sec. 375.41  [Amended]

    53. Section 375.41 is amended by adding the words ``or nonprofit'' 
after the word ``local'' in paragraph (a).


Sec. 375.42  [Amended]

    54. Section 375.42 is amended by removing ``1964,'' and adding, in 
its place, ``1965, section 311 of the Economic Opportunity Act of 
1964,''.

PART 376--[AMENDED]

    55. The title of part 376 is revised to read as follows:

PART 376--SPECIAL PROJECTS AND DEMONSTRATIONS FOR PROVIDING 
TRANSITIONAL REHABILITATION SERVICES TO YOUTH WITH DISABILITIES

    56. The authority citation for part 376 is revised to read as 
follows:

    Authority: 29 U.S.C. 777a(b), unless otherwise noted.

    57. In 34 CFR part 376 the words ``handicapped youth'' or 
``handicapped youths'' are removed, and the words ``youths with 
disabilities'' are added, in their place, in the following places:
    (a) Section 376.1;
    (b) Section 376.10 (a)(1) and (a)(2);
    (c) Section 376.30 (a), (b)(twice), (e)(twice), and (f); and
    (d) Section 376.31 (f)(1), (f)(2)(ii), and (g)(2)(i).
    58. Section 376.1 is further amended by revising the heading and 
the authority citation following the section to read as follows:


Sec. 376.1  What is the program of Special Projects and Demonstrations 
for Providing Transitional Rehabilitation Services to Youths with 
Disabilities?

* * * * *
(Authority: Sec. 311(b); 29 U.S.C. 777a(b))


Sec. 376.2  [Amended]

    59. Section 376.2 is amended by revising the authority citation 
following the section to read as follows:

(Authority: Sec. 311(b); 29 U.S.C. 777a(b))


Sec. 376.3  [Amended]

    60. Section 376.3 is amended by revising the authority citation 
following the section to read as follows:

(Authority: Secs. 12(c) and 311(b); 29 U.S.C. 711(c) and 777a(b))

    61. Section 376.4 is amended by revising the definition of 
``Extended services'' in paragraph (d)(1), removing the definition of 
``Handicapped youth'' in paragraph (d)(2), redesignating paragraph 
(d)(3) as (d)(2), adding a new definition of ``Youths with 
disabilities'' as paragraph (d)(3), and revising the authority citation 
following the section to read as follows:


Sec. 376.4  What definitions apply to this program?

* * * * *
    (d) * * *
    (1) Extended services means on-going support services and other 
appropriate services provided by a State agency, a private nonprofit 
organization, employer, or any other appropriate resource, from funds 
other than funds under this part, part 361, part 363, or part 380, 
after an individual with the most severe disabilities has made the 
transition from project support.
* * * * *
    (3) Youths with disabilities means individuals with disabilities 
between the ages of 12 and 26.

(Authority: Secs. 12(c) and 311(b); 29 U.S.C. 711a(c) and 777(b))


Sec. 376.10  [Amended]

    62. Section 376.10 is further amended by removing the word 
``facilities'' in paragraph (a)(2), and adding, in its place, the words 
``community rehabilitation programs'', removing the words ``handicapped 
youths'' in paragraph (c), and adding, in their place, the words 
``youths with disabilities'', and revising the authority citation 
following the section to read as follows:

(Authority: Secs. 12(c) and 311(b); 29 U.S.C. 711a(c) and 777(b))


Sec. 376.30  [Amended]

    63. Section 376.30 is further amended by removing the words 
``handicapped youth with'' in the heading of paragraph (c), and adding, 
in their place, the words ``youths with disabilities who have'', and 
revising the authority citation following the section to read as 
follows:

(Authority: Sec. 311(b); 29 U.S.C. 777 (a), (b))


Sec. 376.31  [Amended]

    64. Section 376.31 is further amended by removing the words 
``handicapped youths'' in paragraph (h)(2)(ii), and adding, in their 
place, the words ``youths with disabilities'', and revising the 
authority citation following the section to read as follows:

(Authority: Sec. 311(b); 29 U.S.C. 777a(b))

    65. Section 376.40 is revised to read as follows:


Sec. 376.40  What are the matching requirements?

    The Secretary may pay all or part of the costs of activities funded 
under this program. If part of the costs is to be paid by a grantee, 
the amount of grantee participation is specified in the application 
notice and will not be more than 10 percent of the total cost of the 
project.

(Authority: Secs. 12(c) and 311(b); 29 U.S.C. 711(c) and 777a(b))

    66. Section 376.41 is amended by revising the authority citation 
following the section to read as follows:

(Authority: Sec. 311(b); 29 U.S.C. 777a(b))

PART 377--DEMONSTRATION PROJECTS TO INCREASE CLIENT CHOICE PROGRAM

    67. The authority citation for Part 377 continues to read as 
follows:

    Authority: Sec. 802(g) of the Rehabilitation Act of 1973; 29 
U.S.C. 797a(g), unless otherwise noted.


Sec. 377.5  [Amended]

    68. Section 377.5 is amended by removing ``II,'' in paragraph (2) 
of the definition of ``Individual with a disability'' in paragraph (a).


Sec. 377.11  [Amended]

    69. Section 377.11 is amended by revising the authority citation 
following the section to read as follows:

(Authority: Secs. 21(b)(6), 802(g)(2), 802(g)(3), 802(g)(5), 
802(g)(6), and 802(g)(7) of the Rehabilitation Act of 1973; 29 
U.S.C. 718b and 29 U.S.C. 797a(g)(2), (3), (5), (6), and (7)).

PART 378--PROJECTS FOR INITIATING RECREATIONAL PROGRAMS FOR 
INDIVIDUALS WITH DISABILITIES

    70. The authority citation for part 378 continues to read as 
follows:

    Authority: 29 U.S.C. 711(c) and 777(f), unless otherwise noted.


Sec. 378.3  [Amended]

    71. Section 378.3 as revised by the regulations published in the 
Federal Register on July 1, 1993 (58 FR 35764) (effective date pending) 
is amended by revising the authority citation following the section to 
read as follows:

(Authority: Secs. 21(b)(6) and 316(a)(4) of the Act; 29 U.S.C. 718b 
and 777(f))

PART 379--PROJECTS WITH INDUSTRY

    72. The authority citation for part 379 continues to read as 
follows:

    Authority: Secs. 12(c) and 621 of the Act; 29 U.S.C. 711(c) and 
795g, unless otherwise noted.

    73. Section 379.1 is revised to read as follows:


Sec. 379.1  What is the Projects with Industry program?

    This program is designed to--
    (a) 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;
    (b) Identify competitive job and career opportunities and the 
skills needed to perform these jobs;
    (c) Create practical settings for job readiness and training 
programs; and
    (d) Provide job placements and career advancement.

(Authority: Sec. 621(a) of the Act; 29 U.S.C. 795(a))

    74. Section 379.2 is revised to read as follows:


Sec. 379.2  Who is eligible for assistance under this program?

    Employers and profit-making and nonprofit organizations with which 
the Secretary may enter into an agreement include any--
    (a) Designated State unit;
    (b) Labor union;
    (c) Employer;
    (d) Community rehabilitation program provider;
    (e) Trade association;
    (f) Indian tribe or tribal organization; or
    (g) Other agency or organization with the capacity to create and 
expand job and career opportunities for individuals with disabilities.

(Authority: Sec. 621(a)(2) of the Act; 29 U.S.C. 795g(a)(2))


Secs. 379.3 and 379.4  [Redesignated as Secs. 379.4 and 379.5]

    75. Sections 379.3 and 379.4 are redesignated as Secs. 379.4 and 
379.5, respectively.
    76. A new Sec. 379.3 is added to read as follows:


Sec. 379.3  Who is eligible for services under this program?

    (a) An individual is eligible for services under this program if 
the appropriate State vocational rehabilitation unit determines the 
individual to be an individual with a disability or an individual with 
a severe disability.
    (b) In making the determination under paragraph (a) of this 
section, the State vocational rehabilitation unit shall rely on the 
determination made by the recipient of the grant under which the 
services are provided.
    (c) If a State vocational rehabilitation unit does not notify a 
recipient of a grant within 60 days that the determination of the 
recipient is inappropriate, the recipient of the grant may consider the 
individual to be eligible for services.

(Authority: Sec. 621(a)(3) of the Act; 29 U.S.C. 795g(a)(3))

    77. Section 379.10 is amended by revising paragraphs (a), (b), (c), 
and (d) and adding paragraph (e) to read as follows:


Sec. 379.10  What types of project activities are required under this 
program?

* * * * *
    (a) Providing individuals with disabilities with training and 
employment in a realistic work setting in order to prepare them for 
employment and career advancement in the competitive market;
    (b) Providing individuals with disabilities with job placement and 
career advancement services;
    (c) Providing individuals with disabilities with supportive 
services that are necessary to permit them to maintain the employment 
and career advancement for which they have received training under this 
program; and
    (d) To the extent appropriate, providing for--
    (1) The development and modification of jobs and careers to 
accommodate the special needs of the individuals with disabilities 
being trained and employed under this program;
    (2) The purchase and distribution of rehabilitation technology to 
meet the needs of individuals with disabilities at job sites; and
    (3) The modification of any facilities or equipment of the employer 
which are to be used by individuals with disabilities under this 
program; and
    (e) Providing for the establishment of business advisory councils 
comprised of representatives of private industry, business concerns, 
organized labor, and individuals with disabilities and their 
representatives who will identify job and career availability within 
the community, the skills necessary to perform those jobs and careers, 
and prescribe appropriate training programs.
    78. A new Sec. 379.11 is added to Subpart B to read as follows:


Sec. 379.11  What additional types of project activities may be 
authorized under this program?

    The Secretary may include, as part of agreements with grant 
recipients under this program, authority for such grant recipients to 
provide the following types of technical assistance:
    (a) Assisting employers in hiring individuals with disabilities; or
    (b) Improving or developing relationships between grant recipients 
or prospective grant recipients and employers or organized labor; or
    (c) Assisting 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.

(Authority: Sec. 621(a) of the Act; 29 U.S.C 795g)


Sec. 379.30  [Amended]

    79. Section 379.30 is amended by removing the word ``handicaps'' in 
paragraphs (f)(1), (f)(2)(i), (f)(2)(ii), (f)(2)(iii), and (h)(1), and 
adding, in its place, the word ``disabilities'', and by removing the 
words ``similar benefits'' in paragraph (g)(2)(i), and adding, in their 
place, the words ``comparable benefits and services''.
    80. Section 379.31 is amended by revising paragraph (a) and the 
authority citation following the section to read as follows:


Sec. 379.31  What other factors does the Secretary consider in 
reviewing an application?

* * * * *
    (a) The equitable distribution of projects among the States and 
awards new grants 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 the 
Projects with Industry program; and
* * * * *
(Authority: Secs. 621(e)(2) and 621(f)(4) of the Act; 29 U.S.C. 
795g(e)(2) and 795g(f)(4))

    81. Section 379.41 is amended by revising paragraphs (f) and (g) to 
read as follows:


Sec. 379.41  What are allowable costs?

* * * * *
    (f) The purchase or modification of rehabilitation technology to 
meet the needs of individuals with disabilities; and
    (g) Alteration and renovation appropriate and necessary to ensure 
access to and utilization of buildings by persons with disabilities.


Sec. 379.42  [Amended]

    82. Section 379.42 is amended by removing the word ``handicaps'' in 
the undesignated introductory text and in paragraph (a), and adding, in 
its place, the word ``disabilities''.
    83. Section 379.43 is amended by removing the words ``handicapped 
individual'' in paragraph (d), and adding, in their place, the words 
``individual with a disability'', by removing paragraphs (f) and (i), 
and redesignating paragraphs (g), (h), (j), (k), (l), (m), and (n) as 
paragraphs (f), (g), (h), (i), (j), (k), and (l), respectively, and by 
revising the redesignated paragraphs to read as follows:


Sec. 379.43  What general provisions are required in agreements?

* * * * *
    (f) Provide reasonable assurance that individuals with disabilities 
successfully completing the training program will be employed by the 
employer or within a similar enterprise;
    (g) Specify the duration of the project, not to exceed five years;
    (h) Provide that any individual with disabilities placed with an 
employer under this program will be given terms and benefits of 
employment equal to those which are given to similarly situated co-
workers of the individual;
    (i) Provide that employees with disabilities will not be segregated 
from their co-workers;
    (j) Contain an agreement to make reports and to keep any records 
and accounts required by the Secretary and to make records and accounts 
available for audit purposes;
    (k) Contain a description of an annual evaluation plan which 
contains, at a minimum, the following elements:
    (1) The numbers and types of individuals with disabilities served.
    (2) The types of services provided.
    (3) The sources of funding.
    (4) The percentage of resources committed to each type of service 
provided.
    (5) The extent to which the employment status and earning power of 
individuals with disabilities changed following services.
    (6) The extent of capacity building activities, including 
collaboration with business and industry and other organizations, 
agencies, and institutions.
    (7) A comparison, if appropriate, of activities in prior years with 
activities in the most recent year.
    (8) The number of project participants who were terminated from 
project placements and the duration of those placements; and
    (l) Provide assurance that an evaluation report containing the data 
specified in paragraph (k) of this section will be submitted to the 
Secretary.
    84. Section 379.44 is amended by adding a new paragraph (c) to read 
as follows:


Sec. 379.44  What wage rates are required under agreements?

* * * * *
    (c) The agreement must also provide that individuals with 
disabilities who are placed in competitive employment must receive at 
least the applicable minimum wage.

PART 380--[AMENDED]

    85. The title of part 380 is revised to read as follows:

PART 380--SPECIAL PROJECTS AND DEMONSTRATIONS FOR PROVIDING 
SUPPORTED EMPLOYMENT SERVICES TO INDIVIDUALS WITH THE MOST SEVERE 
DISABILITIES AND TECHNICAL ASSISTANCE PROJECTS

    86. The authority citation for part 380 is revised to read as 
follows:

    Authority: 29 U.S.C 711(c) and 777a(c), unless otherwise noted.

    87. In 34 CFR part 380 the words ``severe handicaps'' are removed, 
and the words ``the most severe disabilities'' are added, in their 
place, in the following places:
    (a) Section 380.3(a) and (b);
    (b) Section 380.4(b)(1), (b)(2) introductory text, (b)(2)(i), and 
(b)(2)(ii);
    (c) Section 380.6(b);
    (d) Section 380.11(h)(2)(i);
    (e) Section 380.12(f) and (g)(1);
    (f) Section 380.13(h)(1)(twice), (h)(2)(i), and (h)(2)(ii); and
    (g) Section 380.20.
    88. Sections 380.2, 380.5, 380.10, 380.12, and 380.20 are amended 
by revising the authority citation following the section to read as 
follows:

(Authority: 29 U.S.C. 777a(c))

    89. Sections 380.3, 380.4, 380.11 and 380.14 are amended by 
revising the authority citation following the section to read as 
follows:

(Authority: 29 U.S.C. 777a(a)(1) and 777a(c))

    90. Section 380.1 is revised to read as follows:


Sec. 380.1  What is the program of special projects and demonstrations 
for providing supported employment services to individuals with the 
most severe disabilities and technical assistance projects?

    This program is designed to provide grants for special projects and 
demonstrations to expand or otherwise improve the provision of 
supported employment services to individuals with the most severe 
disabilities, including projects that demonstrate the effectiveness of 
natural supports or other alternative approaches for supporting and 
maintaining individuals in supported employment, and grants for 
technical assistance projects.

(Authority: 29 U.S.C. 777a(a)(1) and 777a(c))


Sec. 380.2  [Amended]

    91. Section 380.2 is amended by removing the words ``rehabilitation 
facilities'' in paragraphs (a) and (b), and adding, in their place, the 
words ``community rehabilitation programs''.


Sec. 380.4  [Amended]

    92. Section 380.4 is further amended by removing the word 
``statewide'' in the heading, and adding, in its place, the word 
``Statewide''.
    93. Section 380.5 is amended by revising paragraphs (a)(5) and 
(a)(6) to read as follows:


Sec. 380.5  What activities may the Secretary fund under community-
based supported employment projects?

    (a) * * *
    (5) Application of rehabilitation technology in providing supported 
employment services.
    (6) Provision of supported employment services for individuals 
placed in employment.
* * * * *
    94. Sections 380.6, 380.7 and 380.13 are amended by revising the 
authority citations following the sections to read as follows:

(Authority: 29 U.S.C. 777a(c)(2))

    95. Section 380.8 is amended by removing the words ``Severe 
Handicaps'' in the undesignated introductory text, and adding, in their 
place, the words ``the Most Severe Disabilities'', and by revising 
paragraphs (a) and (c) and the authority citation following the section 
to read as follows:


Sec. 380.8  What regulations apply?

* * * * *
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR Part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR Part 75 (Direct Grant Programs).
    (3) 34 CFR Part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR Part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR Part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR Part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR Part 82 (New Restrictions on Lobbying).
    (8) 34 CFR Part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)).
    (9) 34 CFR Part 86 (Drug-Free Schools and Campuses).
* * * * *
    (c) The regulations in 34 CFR 369.46

(Authority: 29 U.S.C. 711(c) and 777a(c))

    96. Section 380.9 is amended by revising paragraphs (b) and (c) and 
the authority citation following the section to read as follows:


Sec. 380.9  What definitions apply?

* * * * *
    (b) The following terms used in this part are defined in 34 CFR 
part 369:

Designated State unit
Community rehabilitation program
Individual with a severe disability

    (c) Other definitions. The following definitions also apply to this 
part:
    (1) As used in the definition of ``supported employment''--
    (i) Competitive work means work that at the time of transition is 
performed weekly on a full-time basis or on a part-time basis, as 
determined in each individual's program of services, and for which an 
individual is compensated consistent with the wage standards provided 
for in the Fair Labor Standards Act;
    (ii)(A) Integrated work setting means job sites where either--
    (1)(i) Most employees are not disabled; and
    (ii) An individual with the most severe disabilities interacts on a 
regular basis, in the performance of job duties, with employees who are 
not disabled; and
    (iii) If an individual with the most severe disabilities is part of 
a distinct work group of only individuals with disabilities, the work 
group consists of no more than eight individuals; or
    (2) If there are no other employees or the only other employees are 
individuals who are part of a work group as described in paragraph 
(c)(1)(ii)(A)(1)(iii) of this section an individual with the most 
severe disabilities interacts on a regular basis, in the performance of 
job duties, with individuals who are not disabled, including members of 
the general public.
    (B) The interaction required by paragraphs (c)(1)(ii)(A)(1)(ii) and 
(c)(1)(ii)(A)(2) of this section may not be satisfied by contact 
between an individual with the most severe disabilities and individuals 
who provide on-going support services at the job site;
    (iii) Supported employment services means on-going support services 
provided by the grantee with funds under this part--
    (A) For a period not to exceed 18 months, unless under special 
circumstances a longer period to achieve job stabilization has been 
jointly agreed to by the individual and the rehabilitation counselor 
and established in the individual's program of services, before an 
individual with the most severe disabilities makes the transition to 
extended services; and
    (B) As discrete post-employment services following transition in 
accordance with 34 CFR 363.4(c)(3);
    (iv) Extended services means on-going support services and other 
appropriate services provided by a State agency, a private nonprofit 
organization, employer, or any other appropriate resource, from funds 
other than funds received under this part, part 361, part 363, or part 
376 after an individual with the most severe disabilities has made the 
transition from project support; and
    (v) Transitional employment means a series of temporary job 
placements in competitive work in an integrated work setting with on-
going support services for individuals with the most severe 
disabilities due to mental illness. In transitional employment, the 
provision of on-going support services must include continuing 
sequential job placements until job permanency is achieved.
    (2) On-going support services means services that are--
    (i) Needed to support and maintain an individual with the most 
severe disabilities in supported employment;
    (ii) Based on a determination by the grantee of the individual's 
needs as specified in a program of services; and
    (iii) Furnished by the grantee from the time of job placement until 
transition to extended services, except as provided in 34 CFR 
363.4(c)(3) and, following transition, by one or more extended services 
providers throughout the individual's term of employment in a 
particular job placement or multiple placements if those placements are 
being provided under a program of transitional employment. On-going 
support services must include, at a minimum, twice-monthly monitoring 
at the work site of each individual in supported employment to assess 
employment stability, unless under special circumstances, especially at 
the request of the individual, the individual's program of services 
provides for off-site monitoring, and, based upon that assessment, the 
coordination or provision of specific services, at or away from the 
work site, that are needed to maintain employment stability. If off-
site monitoring is determined to be appropriate, it must, at a minimum, 
consist of two meetings with the individual and one contact with the 
employer each month. On-going support services consist of--
    (A) Any particularized assessment needed to supplement the 
comprehensive assessment of rehabilitation needs;
    (B) The provision of skilled job trainers who accompany the 
individual for intensive job skill training at the work site;
    (C) Job development and placement;
    (D) Social skills training;
    (E) Regular observation or supervision of the individual;
    (F) Follow-up services such as regular contact with the employers, 
the individuals, the parents, family members, guardians, advocates or 
authorized representative of the individuals, and other suitable 
professional and informed advisors, in order to reinforce and stabilize 
the job placement;
    (G) Facilitation of natural supports at the worksite;
    (H) Any other service identified in the scope of rehabilitation 
services described in 34 CFR part 361; and
    (I) Any service similar to the foregoing services.

(Authority: 29 U.S.C. 777a(c))


Sec. 380.11  [Amended]

    97. Section 380.11 is further amended by removing the word 
``statewide'' in the heading, and adding, in its place, the word 
``Statewide'' and by removing the word ``handicapping'' in paragraphs 
(a)(2) and (b)(1)(iv), and adding, in its place, the word 
``disabling''.
    98. A new 380.15 is added to subpart B to read as follows:


Sec. 380.15  What application requirement applies to this program?

    Each applicant for a grant under this program must include in its 
application a description of the manner in which it will address the 
needs of individuals with the most severe disabilities from minority 
backgrounds.

(Approved by the Office of Management and Budget under control 
number 1820-0018.)

(Authority: 29 U.S.C. 718b)

    99. A new Sec. 380.21 is added to subpart C to read as follows:


Sec. 380.21  What information requirement applies to this program?

    Each grantee must advise recipients of services under its project 
or, as appropriate, the parents, family members, guardians, advocates, 
or authorized representatives of those individuals, of the availability 
and purposes of the State's Client Assistance Program, including 
information on seeking assistance from that program.

(Authority: 29 U.S.C. 718a)

PART 381--PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS

    100. The authority citation for part 381 continues to read as 
follows:

    Authority: 29 U.S.C 794e, unless otherwise noted.

    101. Section 381.2 is amended by removing the word ``State'' in 
paragraph (a); removing the word ``receive'' in paragraph (a) and 
adding, in its place, the words ``apply for''; revising paragraph (b); 
and removing the words ``may receive the amount'' in paragraph (c), and 
adding, in their place, the words ``may apply to receive the amount'' 
to read as follows:


Sec. 381.2  Who is eligible for an award?

* * * * *
    (b) In any fiscal year in which the amount appropriated to carry 
out this section is less than $5,500,000, a protection and advocacy 
system from any State or from Guam, American Samoa, the United States 
Virgin Islands, the Commonwealth of the Northern Mariana Islands, or 
the Republic of Palau may apply for a grant under the Protection and 
Advocacy of Individual Rights (PAIR) program to plan for, develop 
outreach strategies for, and carry out a protection and advocacy 
program authorized under this part, except that the Republic of Palau 
may not apply for a grant under the PAIR program after the Compact of 
Free Association with Palau takes effect.
* * * * *
    101. Section 381.3 is amended by revising paragraph (a)(4) to read 
as follows:


Sec. 381.3  What activities may the Secretary fund?

    (a) * * *
    (4) Coordinating the protection and advocacy program provided 
through an eligible system with the advocacy programs under--
    (i) Section 112 of the Act (the Client Assistance Program (CAP));
    (ii) The Older Americans Act of 1965 (the State long-term care 
ombudsman program);
    (iii) Part C of the DDA; and
    (iv) The Protection and Advocacy for Individuals with Mental 
Illness Act of 1986 (PAIMI), 42 U.S.C. 10801-10851.
    102. In Sec. 381.5 paragraph (b) is amended by removing the comma 
before the word ``organizations'' in the definition of ``Advocacy'', 
and adding, in its place, the word ``or'', and adding a comma after the 
word ``organizations''; revising paragraph (3) of the definition of 
``Advocacy''; revising the definition of ``Eligible individual with a 
disability''; revising the first sentence of the definition of 
``Mediation'', and adding the word ``independent'' before ``third party 
mutually''; and by removing ``the allotments under sections 509(b)-
(e)'' in the definition of ``State'', and adding, in its place, 
``section 509 (c)(3)(B) and (c)(4)'', to read as follows:


Sec. 381.5  What definitions apply?

* * * * *
    (b) * * *
    Advocacy * * *
    (3) Oneself, in which case it is self advocacy.
    Eligible individual with a disability means an individual who--
    (1) Needs protection and advocacy services that are beyond the 
scope of services authorized to be provided by the CAP under section 
112 of the Act; and
    (2) Is ineligible for--
    (i) Protection and advocacy programs under Part C of the DDA; and
    (ii) Protection and advocacy programs under the PAIMI.
* * * * *
    Mediation means the act or process of using an independent third 
party to act as a mediator, intermediary, or conciliator to settle 
differences or disputes between persons or parties.
* * * * *
    103. Section 381.10 is amended by revising paragraph (a)(6)(ii) to 
read as follows:


Sec. 381.10  What are the application requirements?

    (a) * * *
    (6) * * *
    (ii) The coordination of programs provided through eligible systems 
with the advocacy programs under--
    (A) Section 112 of the Act (CAP);
    (B) The Older Americans Act of 1965 (the State long-term care 
ombudsman program);
    (C) Part C of the DDA; and
    (D) The PAIMI;
    104. Section 381.21 is amended by removing the words ``agency 
designated to operate the PAIR program'' in paragraph (h)(1), and 
adding, in their place, the words ``eligible system''.
    105. Section 381.30 is amended by revising paragraph (c) 
introductory text and paragraph (c)(1) to read as follows:


Sec. 381.30  How are services to be administered?

* * * * *
    (c) An eligible system may contract with another agency, entity, or 
individual to carry out the PAIR program in whole or in part, but only 
if the agency, entity, or individual with whom the eligible system has 
contracted--
    (1) Does not provide services under the Act or does not provide 
treatment, services, or habilitation to persons with disabilities; and
* * * * *


Sec. 381.31  [Amended]

    106. Section 381.31 is amended by removing the words ``designated 
agency'' in paragraph (b), and adding, in their place, the words 
``eligible system''.
    107. Section 381.33 is amended by revising paragraph (b) and 
removing the last sentence of paragraph (d), to read as follows:


Sec. 381.33  What are the requirements related to the use of funds 
provided under this part?

* * * * *
    (b) In any State in which an eligible system is located within a 
State agency, that State or State agency may not use more than five 
percent of any allotment for the costs of administration of the 
eligible system supported under this part. For purposes of this 
paragraph, ``costs of administration'' include, but are not limited to, 
administrative salaries (including salaries for clerical and support 
staff), supplies, depreciation or use allowances, the cost of operating 
and maintaining facilities, equipment, and grounds (e.g., rental of 
office space or equipment, telephone, postage, maintenance agreements), 
and other similar types of costs that may be incurred by the State or 
State agency to administer the eligible system.
* * * * *

PART 385--REHABILITATION TRAINING

    108. The authority citation for part 385 is revised to read as 
follows:

    Authority: 29 U.S.C. 711(c), 772, and 774, unless otherwise 
noted.

    109. Section 385.1 is revised to read as follows:


Sec. 385.1  What is the Rehabilitation Training program?

    (a) The Rehabilitation Training program is designed to--
    (1) Ensure that skilled personnel are available to provide 
rehabilitation services to individuals with disabilities through 
vocational, medical, social, and psychological rehabilitation programs, 
through supported employment programs, through independent living 
services programs, and through client assistance programs;
    (2) Maintain and upgrade basic skills and knowledge of personnel 
employed to provide state-of-the-art service delivery systems and 
rehabilitation technology services; and
    (3) Provide training and information to individuals with 
disabilities, the parents, families, guardians, advocates, and 
authorized representatives of the individuals, and other appropriate 
parties to develop the skills necessary for individuals with 
disabilities to access the rehabilitation system and to become active 
decisionmakers in the rehabilitation process.
    (b) The Secretary awards grants and contracts to pay part of the 
costs of projects for training, traineeships, and related activities, 
including the provision of technical assistance, to assist in 
increasing the numbers of qualified personnel trained in providing 
rehabilitation services and other services provided under the Act, to 
individuals with disabilities. Financial assistance is provided through 
six categories of training programs:
    (1) Rehabilitation Long-Term Training (34 CFR Part 386).
    (2) Experimental and Innovative Training (34 CFR Part 387).
    (3) State Vocational Rehabilitation Unit In-Service Training (34 
CFR Part 388).
    (4) Rehabilitation Continuing Education Programs (34 CFR Part 389).
    (5) Rehabilitation Short-Term Training (34 CFR Part 390).
    (6) Training of Interpreters for Individuals Who Are Deaf and 
Individuals Who Are Deaf-Blind (34 CFR Part 396).

(Authority: Secs. 301 and 302 of the Act; 29 U.S.C. 770 and 774)

    110. Section 385.2 is revised to read as follows:


Sec. 385.2  Who is eligible for assistance under these programs?

    States and public or nonprofit agencies and organizations, 
including Indian tribes and institutions of higher education, are 
eligible for assistance under the Rehabilitation Training program.

(Authority: Secs. 7(19) and 302 of the Act; 29 U.S.C. 706(19) and 
774)

    111. Section 385.3 is revised to read as follows:


Sec. 385.3  What regulations apply to these programs?

    The following regulations apply to the Rehabilitation Training 
program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR Part 74 (Administration of Grants to Institutions of 
Higher Education, Hospitals, and Nonprofit Organizations).
    (2) 34 CFR Part 75 (Direct Grant Programs).
    (3) 34 CFR Part 77 (Definitions That Apply to Department 
Regulations).
    (4) 34 CFR Part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR Part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR Part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR Part 82 (New Restrictions on Lobbying).
    (8) 34 CFR Part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)).
    (9) 34 CFR Part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this Part 385.
    (c) The regulations in 34 CFR Parts 386, 387, 388, 389, 390, and 
396, as appropriate.

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 
774)

    112. Section 385.4 is amended by revising paragraph (b) and the 
authority citation following the section to read as follows:


Sec. 385.4  What definitions apply to these programs?

* * * * *
    (b) The following definitions also apply to programs under the 
Rehabilitation Training program:
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 
as amended.
    Assistive technology device means any item, piece of equipment, or 
product system, whether acquired commercially off the shelf, modified, 
or customized, that is used to increase, maintain, or improve 
functional capabilities of individuals with disabilities.
    Assistive technology service means any service that directly 
assists an individual with a disability in the selection, acquisition, 
or use of an assistive technology device. The term includes--
    (1) The evaluation of the needs of an individual with a disability, 
including a functional evaluation of the individual in the individual's 
customary environment;
    (2) Purchasing, leasing, or otherwise providing for the acquisition 
of assistive technology devices by individuals with disabilities;
    (3) Selecting, designing, fitting, customizing, adapting, applying, 
maintaining, repairing, or replacing of assistive technology devices;
    (4) Coordinating and using other therapies, interventions, or 
services with assistive technology devices, such as those associated 
with existing education and rehabilitation plans and programs;
    (5) Training or technical assistance for an individual with 
disabilities, or, if appropriate, the family of an individual with 
disabilities; and
    (6) Training or technical assistance for professionals (including 
individuals providing education and rehabilitation services), 
employers, or other individuals who provide services to, employ, or are 
otherwise substantially involved in the major life functions of 
individuals with disabilities.
    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--
    (1) Medical, psychiatric, psychological, social, and vocational 
services that are provided under one management;
    (2) Testing, fitting, or training in the use of prosthetic and 
orthotic devices;
    (3) Recreational therapy;
    (4) Physical and occupational therapy;
    (5) Speech, language, and hearing therapy;
    (6) Psychiatric, psychological, and social services, including 
positive behavior management;
    (7) Assessment for determining eligibility and vocational 
rehabilitation needs;
    (8) Rehabilitation technology;
    (9) Job development, placement, and retention services;
    (10) Evaluation or control of specific disabilities;
    (11) Orientation and mobility services for individuals who are 
blind;
    (12) Extended employment;
    (13) Psychosocial rehabilitation services;
    (14) Supported employment services and extended services;
    (15) Services to family members when necessary to the vocational 
rehabilitation of the individual;
    (16) Personal assistance services; or
    (17) Services similar to the services described in paragraphs (1) 
through (16) of this definition.
    Designated State agency means an agency designated under section 
101(a)(1)(A) of the Act.
    Designated State unit means (1) Any State agency unit required 
under section 101(a)(2)(A) of the Act, or
    (2) In cases in which no State agency unit is required, the State 
agency described in section 101(a)(2)(B)(i) of the Act.
    Independent living core services means--
    (1) Information and referral services;
    (2) Independent living skills training;
    (3) Peer counseling, including cross-disability peer counseling; 
and
    (4) Individual and systems advocacy.
    Independent living services includes--
    (1) Independent living core services; and
    (2)(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 these 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 the community 
and participating in community activities;
    (x) Supported living;
    (xi) Transportation, including referral and assistance for 
transportation;
    (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;
    (xvix) 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 of individuals with disabilities; and
    (xxi) Such other services as may be necessary and not inconsistent 
with the provisions of this Act.
    Individual with a disability means any individual who--
    (1) Has a physical or mental impairment, which for that individual 
constitutes or results in a substantial impediment to employment; and
    (2) Can benefit in terms of an employment outcome from vocational 
rehabilitation services provided pursuant to titles I, II, III, VI, or 
VIII of the Act.
    Individual with a severe disability means an individual with a 
disability--
    (1) Who has a severe physical or mental impairment that 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;
    (2) Whose vocational rehabilitation can be expected to require 
multiple vocational rehabilitation services over an extended period of 
time; and
    (3) 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 disabilities, 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.
    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)).
    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. The services shall be designed to increase the individual's 
control in life and ability to perform everyday activities on or off 
the job.
    Qualified personnel: (1) For designated State agencies or 
designated State units, means personnel who have met standards that are 
consistent with existing 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.
    (2) For other than designated State agencies or designated State 
units, means personnel who have met existing State certification or 
licensure requirements, or in the absence of State requirements, have 
met professionally accepted requirements established by national 
certification boards.
    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 that include education, rehabilitation, 
employment, transportation, independent living, and recreation. The 
term includes rehabilitation engineering, assistive technology devices, 
and assistive technology services.
    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, the 
Commonwealth of the Northern Mariana Islands and the Republic of Palau 
(until the Compact of Free Association with Palau takes effect).
    Stipend means financial assistance on behalf of individuals in 
support of their training, as opposed to salary payment for services 
provided within the project.
    Supported employment means--
    (1) Competitive work in integrated work settings for individuals 
with the most severe disabilities--
    (i)(A) For whom competitive employment has not traditionally 
occurred; or
    (B) For whom competitive employment has been interrupted or 
intermittent as a result of a severe disability; and
    (ii) Who, because of the nature and severity of their disability, 
need intensive supported employment services from the designated State 
unit and extended services after transition in order to perform this 
work.
    (2) Transitional employment for individuals with the most severe 
disabilities due to mental illness.
    Supported employment services means ongoing support services and 
other appropriate services needed to support and maintain an individual 
with most severe disability in supported employment, that are--
    (1) Provided singly or in combination and are organized and made 
available in such a way as to assist an eligible individual in entering 
or maintaining integrated, competitive employment;
    (2) Based on a determination of the needs of an eligible 
individual, as specified in an individualized written rehabilitation 
program; and
    (3) 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 written rehabilitation 
program.
    Vocational rehabilitation services means the same as the term is 
defined in 34 CFR 369.4(b).

(Authority: Secs. 7, 12(c), and 101(a)(7) of the Act; 29 U.S.C. 706, 
711(c), and 721(a)(7))


Sec. 385.20  [Amended]

    113. Section 385.20 is amended by removing the words ``State 
vocational rehabilitation unit'', and adding, in their place, the words 
``designated State agency''.
    114. Section 385.32 is amended by revising paragraphs (a)(2)(V)(A) 
and (b)(2)(iv)(A), adding ``(b)'' before ``(2)(i)'' in paragraph 
(b)(2)(iii), and revising the authority citation following the section 
to read as follows:


Sec. 385.32  What general selection criteria does the Secretary use in 
reviewing an application?

* * * * *
    (a) * * *
    (b) * * *
    (v) * * *
    (A) Persons with disabilities;
* * * * *
    (b) * * *
    (2) * * *
    (iv) * * *
    (A) Persons with disabilities;
* * * * *
(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 
774)

    115. Section 385.40 is revised to read as follows:


Sec. 385.40  What are the requirements pertaining to the membership of 
a project advisory committee?

    If a project funded under 34 CFR parts 386 through 390 or 396 
establishes an advisory committee, its membership must include 
individuals with disabilities or parents, family members, guardians, 
advocates, or other authorized representatives of the individuals; 
members of minority groups; trainees; and providers of vocational 
rehabilitation and independent living rehabilitation services.

(Authority: Sec. 12(c) of the Act; 29 U.S.C. 711(c))


Sec. 385.41  [Amended]

    116. Section 385.41 is amended by adding the word ``designated'' 
before the words ``State agencies'' in the heading and the text, and by 
removing the word ``handicaps'', and adding, in its place, the word 
``disabilities''.
    117. Section 385.43 is revised to read as follows:


Sec. 385.43  What requirements apply to the training of rehabilitation 
counselors and other rehabilitation personnel?

    Any grantee who provides training of rehabilitation counselors or 
other rehabilitation personnel under any of the programs in 34 CFR 
parts 386 through 390 shall train those counselors and personnel on the 
services provided under this Act, and, in particular, services provided 
in accordance with amendments made by the Rehabilitation Act Amendments 
of 1992. The grantee shall also furnish training to these counselors 
and personnel regarding the applicability of section 504 of this Act, 
title I of the Americans with Disabilities Act of 1990, and the 
provisions of titles II and XVI of the Social Security Act that are 
related to work incentives for individuals with disabilities.

(Authority: Sec. 302(a)(3) of the Act; 29 U.S.C. 774(a)(3))

    118. Section 385.44 is revised to read as follows:


Sec. 385.44  What requirement applies to the training of individuals 
with disabilities?

    Any grantee or contractor who provides training under any of the 
programs in 34 CFR parts 386 through 390 and 396 shall give due regard 
to the training of individuals with disabilities as part of its effort 
to increase the number of qualified personnel available to provide 
rehabilitation services.

(Authority: Sec. 302(a)(1) of the Act; 29 U.S.C. 774(a)(1))

    119. A new Sec. 385.45 is added to subpart E to read as follows:


Sec. 385.45  What additional application requirements apply to the 
training of individuals for rehabilitation careers?

    (a) All applicants for a grant or contract to provide training 
under any of the programs in 34 CFR parts 386 through 390 and 396 shall 
demonstrate how the training they plan to provide will prepare 
rehabilitation professionals to address the needs of individuals with 
disabilities from minority backgrounds.
    (b) All applicants for a grant under any of the programs in 34 CFR 
parts 386 through 390 and 396 shall include a detailed description of 
strategies that will be utilized to recruit and train persons 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 members of minority groups, who are available to 
provide rehabilitation services.

(Authority: Secs. 21(b)(5) and 302(a)(5) of the Act; 29 U.S.C. 
718b(b)(6) and 774(a)(6))

    120. A new Sec. 385.46 is added to subpart E to read as follows:


Sec. 385.46  What limitations apply to the rate of pay for experts or 
consultants appointed or serving under contract under the 
Rehabilitation Training program?

    An expert or consultant appointed or serving under contract 
pursuant to this section shall be compensated at a rate subject to 
approval of the Commissioner which shall not 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. 
Such an expert or consultant may be allowed travel and transportation 
expenses in accordance with section 5703 of title 5, United States 
Code.

(Authority: Sec. 302(g)(2) of the Act; 29 U.S.C. 774(g)(2))

PART 387--EXPERIMENTAL AND INNOVATIVE TRAINING

    121. The authority citation for part 387 continues to read as 
follows:

    Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.


Sec. 387.1  [Amended]

    122. Section 387.1 is amended by removing the words ``persons with 
severe handicaps'', and adding, in their place, the words ``individuals 
with disabilities'', and by revising the authority citation following 
the section to read as follows:

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)


Secs. 387.2, 387.3, and 387.10  [Amended]

    123. The authority citations following Secs. 387.2, 387.3, and 
387.10 are revised to read as follows:


(Authority: Sec. 302 of the Act; 29 U.S.C. 774)


Sec. 387.30  [Amended]

    124. Section 387.30 is amended by removing the word ``handicaps'' 
in paragraph (g)(2) and both times it appears in paragraph (h)(2)(iii), 
and adding, in its place, the word ``disabilities'', and by revising 
the authority citation following the section to read as follows:
(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 
774)
    125. Sections 387.40 and 387.41 are amended by revising the 
authority citations following the sections to read as follows:


(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 
774)

PART 389--REHABILITATION CONTINUING EDUCATION PROGRAMS

    126. The authority citation for Part 389 continues to read as 
follows:

Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.


Secs. 389.1, 389.2, and 389.3, and 389.10 [Amended]

    127. Sections 389.1, 389.2, 389.3, and 389.10 are amended by 
revising the authority citations following the sections to read as 
follows:

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)


Secs. 389.30  [Amended]

    128. Section 389.30 is amended by removing the word ``program'' in 
paragraphs (g) introductory text and (g)(l), and adding, in its place, 
the word ``programs'', and removing the word ``handicaps'' in paragraph 
(g)(2), and adding, in its place, the word ``disabilities''.


Secs. 389.40 and 389.41  [Amended]

    129. Sections 389.40 and 389.41 are amended by revising the 
authority citations following the sections to read as follows:

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 
774).

PART 390--REHABILITATION SHORT-TERM TRAINING

    130. The authority citation for Part 390 continues to read as 
follows:

    Authority: 29 U.S.C. 711(c) and 774, unless otherwise noted.

    131. Section 390.1 is revised to read as follows:


Sec. 390.1  What is the Rehabilitation Short-Term Training program?

    This program is designed for the support of special seminars, 
institutes, workshops, and other short-term courses in technical 
matters relating to the vocational, medical, social, and psychological 
rehabilitation programs, independent living services programs, and 
client assistance programs.
(Authority: Secs. 12(a)(2) and 302 of the Act; 29 U.S.C. 711(a)(2) 
and 774)


Secs. 390.2 and 390.3  [Amended]

    132. Sections 390.2 and 390.3 are amended by revising the authority 
citations following the sections to read as follows:

(Authority: Sec. 302 of the Act; 29 U.S.C. 774)

    133. Section 390.10 is amended by revising paragraph (a) and the 
authority citation following the section to read as follows:


Sec. 390.10  What types of projects are authorized under this program?

    (a) Projects under this program are designed to provide short-term 
training and technical instruction in areas of special significance to 
the vocational, medical, social, and psychological rehabilitation 
programs, supported employment programs, independent living services 
programs, and client assistance programs.

 * * * * *

(Authority: Secs. 12(a)(2) and 302 of the Act; 29 U.S.C. 711(a)(2) 
and 774)


Sec. 390.30  [Amended]

    134. Section 390.30 is amended by removing the word ``program'' in 
the heading of paragraph (g) and paragraphs (g)(1) and (g)(2), and 
adding, in its place, the word ``programs''.


Secs. 390.40 and 390.41  [Amended]

    135. Sections 390.40 and 390.41 are amended by revising the 
authority citations following the sections to read as follows:

(Authority: Secs. 12(c) and 302 of the Act; 29 U.S.C. 711(c) and 
774)

[FR Doc. 94-3010 Filed 2-17-94; 8:45 am]
BILLING CODE 4000-01-D