[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. ----------------------------------------------------------------------- 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