[Federal Register Volume 61, Number 42 (Friday, March 1, 1996)]
[Rules and Regulations]
[Pages 8158-8172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4861]




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Part IV





Department of Education





_______________________________________________________________________



34 CFR Part 345



_______________________________________________________________________



State Grants Program for Technology-Related Assistance for Individuals 
With Disabilities; Final Rule

  Federal Register / Vol. 61, No. 42 / Friday, March 1, 1996 / Rules 
and Regulations  

[[Page 8158]]


DEPARTMENT OF EDUCATION

34 CFR Part 345

RIN 1820-AB28


State Grants Program for Technology-Related Assistance for 
Individuals With Disabilities

AGENCY: Department of Education.

ACTION: Final regulations.

-----------------------------------------------------------------------

SUMMARY: The Secretary issues these final regulations for the State 
Grants Program for Technology-Related Assistance for Individuals with 
Disabilities. This program provides grants to States to support systems 
change and advocacy activities designed to assist States in developing 
and implementing consumer-responsive comprehensive Statewide programs 
of technology-related assistance. These regulations are needed to 
implement the Technology-Related Assistance for Individuals with 
Disabilities Act Amendments of 1994. The final regulations incorporate 
statutory requirements and provide rules for applying for and spending 
Federal funds under this program.

EFFECTIVE DATES: These regulations take effect April 1, 1996. 
Compliance with Secs. 345.30, 345.31, 345.42, 345.50, 345.53, and 
345.55 is not required until the information collection requirements in 
those sections have been approved by the Office of Management and 
Budget (OMB).

FOR FURTHER INFORMATION CONTACT: Carol G. Cohen. Telephone: (202) 205-
5666. 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 5 p.m., Eastern time, Monday through 
Friday.

SUPPLEMENTARY INFORMATION: These proposed regulations would implement 
Title I of the Technology-Related Assistance for Individuals with 
Disabilities Act of 1988 (the Act), as amended by the Technology-
Related Assistance for Individuals with Disabilities Act Amendments of 
1994 (1994 Amendments) (Pub. L. 103-218, enacted March 9, 1994). Title 
I of the Act establishes the State Grants Program for Technology-
Related Assistance for Individuals with Disabilities. This program 
provides grants to States to support systems change and advocacy 
activities designed to assist States in developing and implementing 
consumer-responsive comprehensive Statewide programs of technology-
related assistance.
    On August 9, 1995, the Secretary published a notice of proposed 
rulemaking for this program in the Federal Register (60 FR 40688). The 
preamble to the notice of proposed rulemaking (60 FR 40688 - 40690) 
included a summary and discussion of the 1994 Amendments and other 
major issues that were addressed in the proposed regulations.

Analysis of Comments and Changes

    In response to the Secretary's invitation in the notice of proposed 
rulemaking, 5 parties submitted comments on the proposed regulations, 
including one letter that represented the comments of 28 parties. An 
analysis of the comments and of the changes in the regulations since 
publication of the notice of proposed rulemaking follows.
    Major issues are grouped according to subject, with appropriate 
sections of the regulations referenced in parentheses. Technical and 
other minor changes are not addressed.

Purposes of the Program (Sec. 345.2)

    Comments: Commenters stated that the proposed Sec. 345.2 omitted 
two purposes pertaining to Federal policy as contained in sections 2(b) 
(2) and (3) of the Act. The commenters recommended that the Secretary 
include all purposes of the Act.
    Discussion: The Secretary listed in the proposed regulations only 
those purposes in section 2(b)(1) of the Act because section 102(e)(7) 
of the Act specifically requires States to make an assurance that it 
will carry out activities to meet the purposes in section 2(b)(1). The 
Secretary did not intend to imply that sections 2(b) (2) and (3) were 
not important purposes of the Act. The Secretary believes that the 
purposes in sections 2(b) (2) and (3) authorize, but do not require, 
grantees to carry out activities to accomplish these purposes. 
Therefore, the Secretary believes that a reference to these purposes in 
the regulatory provision that lists allowable program activities is 
necessary.
    Changes: The Secretary adds the purposes in sections 2(b)(2) and 
(3) of the Act to Sec. 345.2. In addition, the Secretary adds paragraph 
(4) to Sec. 345.20(b) to reflect that States may carry out activities 
that accomplish the purposes in sections 2(b)(2) and (3). All cross-
references have been amended to reflect these changes.

Increases in Extension Grants (Sec. 345.3)

    Comments: One commenter urged the Secretary to add the statutory 
language ``with a wide geographic spread'' in Sec. 345.3 to clarify 
which States are sparsely populated.
    Discussion: The language ``sparsely populated, with a wide 
geographic spread'' comes directly from the Act in section 
103(c)(1)(D)(ii). The Secretary believes that adding the additional 
statutory language ``with a wide geographic spread'' will help to 
clarify ``sparsely populated''.
    Changes: The Secretary has added the statutory language ``with a 
wide geographic spread'' as stated in section 103(c)(1)(D)(ii) of the 
Act.

Public Agencies and Lead Agencies (Sec. 345.4, 345.5)

    Comments: One letter requested a clarification of what constitutes 
a public agency. The commenter also asked whether a State must 
designate both a responsible public agency and a lead agency.
    Discussion: The regulations already refer to the definition of 
``public'' in 34 CFR 77.1. The Secretary believes this definition is 
sufficient guidance regarding what constitutes a public agency. The Act 
does not require the lead agency also to be a public agency, but does 
require that money received from this program must flow through a 
public agency. Although a structure that uses two agencies could result 
in additional administrative complexity, the Act permits this type of 
arrangement which the Secretary is not authorized to change.
    Changes: None.

University-Affiliated Program (Sec. 345.6)

    Comments: Commenters thought it would be helpful if the Secretary 
included in the regulations a notation that a university-affiliated 
program is generally also a public agency.
    Discussion: The Secretary does not believe it is necessary to add 
the language that the commenters suggested. The Secretary believes it 
could be confusing to add the word ``generally'' rather than giving a 
specific rule. Also, the regulations already refer to the definition of 
public in 34 CFR 77.1, which the Secretary believes is sufficient 
guidance about whether a university-affiliated program constitutes a 
public agency. Furthermore, the Developmental Disabilities Assistance 
and Bill of Rights Act (Developmental Disabilities Assistance Act) 
specifies that university-affiliated programs are public agencies if 
they are associated with a public entity.
    Changes: None.

Allowable Expenses (Sec. 345.20(d))

    Comments: One commenter stated that the term ``in financial need'' 
used in Sec. 345.20(d) needs clarification. The commenter stated that 
many definitions 

[[Page 8159]]
would include only individuals receiving some State or Federal 
assistance and would exclude many individuals who might otherwise be 
unable to participate in the program activities. The commenter also 
stated that the term ``eligible'' needed clarification.
    Commenters also urged the Secretary to add to the list of examples 
of allowable expenses items such as child care, respite care, drivers, 
and other supportive services.
    Discussion: In implementing this program, the Secretary has 
attempted to give States and subrecipients the most flexibility and 
autonomy possible while adhering to the purposes of the statute. The 
Secretary believes that the State should make determinations regarding 
financial need and which individuals to support. The Secretary believes 
this matter is best determined on a case-by-case basis and that a 
single regulatory rule would not meet all States' concerns. Also, 
``eligible'' was used only in the preamble to the notice of proposed 
rulemaking and not in the proposed regulations. As used in the preamble 
to the notice of proposed rulemaking, ``eligible'' referred to those 
participants that the State determined could participate in the 
program.
    Moreover, the regulations allow a State to include the suggested 
additional examples as allowable expenses. The Secretary believes that 
each State should have the flexibility to make its own determination 
about what expenses may be necessary to ensure access to the 
comprehensive statewide program.
    Changes: None.

Development Grant Application Content (Sec. 345.30(b)(12)(i))

    Comments: Commenters expressed their belief that the conjunction 
between the Developmental Disabilities Assistance Act, the Protection 
and Advocacy for Mentally Ill Individuals Act, and section 509 of the 
Rehabilitation Act of 1973 should be an ``or'' rather than an ``and''. 
The commenters stated that the ``and'' implies that a State must 
contract with an entity that provides all three of these programs and 
that in some States multiple entities provide these three programs.
    Discussion: The conjunction connecting these three programs is 
correct because it reflects the language of the Act. Awards under each 
of these programs are made to the protection and advocacy system 
designated for each State. Under the Developmental Disabilities 
Assistance Act, there is only one designated protection and advocacy 
system for each State.
    Changes: None.

Contracting To Provide Protection and Advocacy Services 
(Sec. 345.30(b)(12)(ii))

    Comments: Commenters advised the Secretary that they believed the 
regulations omitted a section of the Act that allows States to continue 
to contract with an entity that is capable of performing the functions 
that would otherwise be performed by the protection and advocacy 
services providers.
    Discussion: The Secretary provides for that statutory option in 
Sec. 345.55(a)(i). The Secretary recognizes that the proposed 
regulations did not refer to that statutory option in the regulatory 
provisions regarding the content of an application for a development 
grant. The Secretary believes it would be useful and helpful to users 
of the regulations to refer to this option in discussing application 
content.
    Changes: In Sec. 345.30(b)(12)(i), the Secretary has added a 
reference to the provision regarding the statutory option.

Indirect Costs (Sec. 345.30(b)(14))

    Comments: Commenters stated that the Secretary should provide more 
guidance regarding the implementation of the 10 percent cap on indirect 
costs. The commenters requested more guidance on whether the 10 percent 
cap on indirect costs applies to the lead agency, the lead agency's 
subcontractors, or a combination of both. Another commenter, who is a 
subcontractor under this program, stated that it had negotiated an 
agreement, in the capacity as a lead agency, with another U.S. agency 
to allocate 12.6 percent of its grants to indirect costs. Therefore, 
the commenter suggested that the final regulations should allow 
indirect costs for subcontractors to be limited to an approved indirect 
cost rate, rather than left up to the lead agency to determine.
    Discussion: As clearly explained in the preamble to the notice of 
proposed rulemaking, the amount of indirect costs may not exceed 10 
percent of the total amount of the grant as stated in section 
102(e)(22) of the Act. Also in the preamble, on page 40689, the 
Secretary states that the indirect cost rate must be negotiated by the 
State and the subcontractor or subgrantee. The clarifying language used 
in the preamble is confusing because there is no authority requiring a 
State to negotiate an indirect cost rate with a subcontractor or 
subgrantee; rather, the Secretary strongly encourages States to 
negotiate indirect cost rates. The Secretary declines to regulate on 
this issue because the Act leaves how to apportion the indirect cost 
rate to the discretion of States and the Secretary supports giving 
States the flexibility to negotiate these rates.
    Changes: None.

Compliance With Section 508 of the Rehabilitation Act of 1973 
(Sec. 345.31(d))

    Comments: Commenters expressed the belief that, because the 
Secretary's interpretation of section 508 of the Rehabilitation Act of 
1973 (section 508) was broad, the interpretation needed to be clarified 
in the regulations. These commenters also pointed out that the language 
in the preamble summarizing this section was overly inclusive because 
it stated that section 508 would apply to ``all offices, agencies, and 
entities in a State.'' Furthermore, commenters stated that the 
Secretary needs to clarify what entities are included as a part of 
``the State'' for the purposes of the assurance that the State will 
comply with guidelines established under section 508.
    Discussion: Based on the language in the Act and section 508, the 
Secretary believes that the requirements of section 508 apply broadly. 
In the proposed regulations, the Secretary intended to reflect that 
section 508 applies to the State (including any State offices, 
agencies, and entities) and all recipients and subrecipients of funds 
made available to the State under the Act. The Secretary believes it is 
unnecessary to regulate what entities are encompassed in the term ``the 
State'' because each State should determine which of its entities are 
considered part of the State. In addition, the Secretary believes that 
a State needs only to submit an assurance regarding compliance with 
section 508. The Secretary believes that a State should determine how 
it will ensure that its subrecipients comply with section 508.
    Changes: Because the language in the preamble and Sec. 345.31(d) 
was unclear, the Secretary has modified the language to include a 
reference to any subrecipients. This addition clarifies that all State 
offices, agencies, and entities are required to comply with section 
508.

Reporting Requirement (Sec. 345.50(b))

    Comments: Commenters expressed concern that requiring States to 
make reports readily available to the public at no extra cost could be 
burdensome if States may not charge for reasonable duplication and 
handling costs.
    Discussion: This section of the regulations does not allow a State 
to charge for duplication or handling costs, however, the provision 
does not require a State to make copies and send them 

[[Page 8160]]
out to individuals who request the report. The Secretary believes a 
State could make a report readily available to the public through a 
variety of means such as putting the report in a location to which the 
public has access, a library for example, or making the report 
available electronically. In making a report available to the public, a 
State should ensure the public's access to the report and realize that 
using only one method of making a report available may not be 
sufficient.
    Changes: None.

Minimum Amount for Protection and Advocacy Services (Sec. 345.55)

    Comments: Commenters questioned the reliance on the size of a 
State's grant in determining the minimum amount that a State must 
expend on protection and advocacy services.
    Another commenter stated that the language regarding the minimum 
funding amounts to be received by the State protection and advocacy 
systems was confusing. The commenter suggested that the Secretary add 
the statement in the preamble that there is no statutory limit or 
ceiling on the amount a State may expend on protection and advocacy 
services.
    Discussion: The Secretary does not rely solely on the size of the 
State's grant in determining the minimum amount a State must spend on 
protection and advocacy activities. As required by the Act, the 
Secretary also considers other factors in determining the minimum 
protection and advocacy amount. These factors include the needs of 
individuals with disabilities within the State, the population of the 
State, and the geographic size of the State. Because the Secretary 
takes the population into account in determining the State's grant, the 
Secretary believes it is appropriate to base the protection and 
advocacy minimum primarily on the size of the State's.
    The Secretary agrees that the language regarding the minimum 
funding amounts to be received by the State protection and advocacy 
systems may be confusing. The Secretary has clarified the language to 
specify that a minimum amount is established for each State and the 
minimum amount may range from $40,000 to $100,000. However, the 
Secretary does not believe it is necessary to include in the 
regulations the explanatory language used in the preamble. The preamble 
and regulations clearly explain that each State may have a different 
minimum amount and that there is no maximum amount. Additional 
regulations on this issue are unnecessary.
    Changes: In Sec. 345.55(e)(2)(ii), the Secretary has clarified the 
language regarding the minimum amount.

State Redesignation of Protection and Advocacy Service Providers 
(Sec. 345.63)

    Comments: One commenter suggested that the Secretary specify the 
hearing and posthearing procedures for cases that reach the Secretary 
or incorporate the procedures that address redesignation under the 
Developmental Disabilities Assistance Act. The commenter also suggested 
that the Secretary require the type of notice and specific timelines 
for giving individuals with disabilities and their representatives 
timely notice and an opportunity for public comment.
    In addition, the commenter made some suggestions regarding how to 
give notification in an accessible format. The commenter suggested that 
individuals be able to offer verbal or written comments in addition to 
any public meetings.
    Lastly, the commenter noted that the standard to meet the 
protection and advocacy service needs in Sec. 345.63(a) is too high 
because of limited available resources. The commenter suggested that 
the Secretary require that an entity providing services may be changed 
only if the protection and advocacy entity does not set priorities, 
goals, and objectives in consultation with consumers and work toward 
achieving those priorities, goals, and objectives.
    Discussion: The Secretary believes using ``redesignate'' in this 
context is confusing because of the particular meaning of 
``redesignate'' in the Developmental Disabilities Assistance Act. The 
procedures outlined in Sec. 345.63 apply only to situations in which 
the State determines that the entity providing protection and advocacy 
services under the Act has not met the protection and advocacy service 
needs of the individuals with disabilities and their family members, 
guardians, advocates, or authorized representatives under the Act. This 
process is not to be confused with the redesignation of a protection 
and advocacy agency when the entire agency is in jeopardy. If a 
protection and advocacy agency is being redesignated, then the 
procedures in the Developmental Disabilities Assistance Act will 
govern.
    The Secretary believes it is unnecessary to regulate the amount of 
time and the format for giving notice and opportunity for public 
comment. Section 345.30(b)(9) requires States to assure that they will 
make available to individuals with disabilities and their family 
members information concerning technology-related assistance in a form 
that will allow individuals to effectively use the information. The 
Secretary believes that States are capable of making determinations 
regarding how to make information available and how to give notice and 
to accept comments. Therefore, the Secretary gives States flexibility 
to set their own procedures.
    The Secretary disagrees with the commenter's belief that the 
standard in Sec. 345.63(a) is too high given a limited amount of 
resources. Before a protection and advocacy services provider may be 
changed, the regulations require that there must be good cause to 
provide the protection and advocacy services for the State through a 
contract with a second entity. If the only reason a protection and 
advocacy entity cannot meet the needs is because of limited resources, 
other protection and advocacy entities will face the same difficulties. 
If the State chooses to change a protection and advocacy services 
provider under the Act, it may not change the provider simply because 
the protection and advocacy entity does not have enough resources to 
meet all the protection and advocacy services needs; the State must 
also find another provider that it believes can better meet the needs.
    The Secretary believes that the State and the protection and 
advocacy services provider should work together to define an acceptable 
and reasonable scope of work based on the amount of resources 
available. Ideally the State and the protection and advocacy services 
provider would negotiate to agree on deliverable services and expected 
outcomes.
    Changes: The Secretary changes the title of Sec. 345.63 so that 
changing a protection and advocacy service provider under the Act is 
not confused with redesignating a protection and advocacy entity.

Technical Assistance

    Comments: Commenters pointed out that, on page 40689 of the 
preamble, the Secretary made reference to providing information and 
technical assistance to participating States, as well as to individuals 
with disabilities, but that there was no mention of the provision of 
technical assistance in the regulations.
    Discussion: The provision of technical assistance is an activity 
performed by the Secretary and, thus, is not required to be in 
regulations. As a general Department policy, regulations are for 
grantees' use and compliance and not for the purpose of regulating the 
Department.
    Changes: None. 
    
[[Page 8161]]


Performance Guidelines

    Comments: Commenters noted that the language regarding performance 
guidelines on pages 40689-40690 of the preamble was not in the 
regulations and existed only in the preamble. The commenters suggested 
that the Secretary clarify the language. They also suggested that the 
guidelines should be distributed well in advance of progress report and 
application deadlines to allow States to collect needed information and 
to understand what is expected of them.
    Discussion: The Department is currently developing the performance 
guidelines with input from the States. Once the performance guidelines 
are finalized the Secretary will make them available to the States. 
Under a new Department policy regarding non-competing continuation 
grants, the Department will not require submissions of project 
performance reports until seven months after the beginning of a project 
period at the earliest. Thus, the guidelines will be available well in 
advance of any reporting deadlines. The Secretary expects the 
performance guidelines to remain the same for the entire authorization 
of the program. Therefore, grantees may use the same guidelines every 
year and will know exactly what is expected of them.
    Because these guidelines are not binding, the Secretary will not 
publish the guidelines in the regulations.
    Changes: None.

Recycling Devices

    Comments: Commenters suggested that in order for the Secretary to 
administer the recycling of assistive technology devices as discussed 
on page 40690 of the preamble, he would need to formally encourage 
individuals and provide information regarding who to call to facilitate 
recycling.
    Discussion: The Secretary only recommends recycling and cannot 
mandate recycling because it is allowable, not mandatory, under the 
Act. The Secretary is gathering information about recycling devices and 
will provide that information once the Department completes the 
project.
    Changes: None.

Access to Records

    Comments: One commenter suggested that the Secretary add 
requirements similar to the Developmental Disabilities Assistance Act 
allowing access to client records.
    Discussion: The Act does not authorize the Secretary to include 
provisions regarding access to client records. To the extent the 
Developmental Disabilities Assistance Act governs a protection and 
advocacy system, those right of access provisions would apply.
    Changes: None.

Executive Order 12866

    These final regulations have been reviewed in accordance with 
Executive Order 12866. Under the terms of the order the Secretary has 
assessed the potential costs and benefits of this regulatory action.
    The potential costs associated with the final regulations are those 
resulting from statutory requirements and those determined by the 
Secretary to be necessary for administering this program effectively 
and efficiently.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of these regulations, the Secretary has determined 
that the benefits of the regulations justify the costs.

Summary of Potential Costs and Benefits

    The potential costs and benefits of these final regulations are 
discussed elsewhere in this preamble under the following heading: 
Analysis of Comments and Changes.

Paperwork Reduction Act of 1995

    Sections 345.30, 345.31, 345.42, 345.50, 345.53, and 345.55 contain 
information collection requirements. As required by the Paperwork 
Reduction Act of 1995 (44 U.S.C. 3507(d)), the Department of Education 
has submitted a copy of these sections to the OMB for its review.
    Collection of Information: State Grants Program for Technology-
Related Assistance for Individuals with Disabilities.
    States are eligible to apply for grants under these regulations. 
The Department needs and uses the information to make grants and to 
evaluate a recipient's performance. Annual public reporting burden for 
this collection of information is estimated to be 30 hours per response 
for 56 respondents, including the time for reviewing instructions, 
searching existing data sources, gathering and maintaining the data 
needed, and completing and reviewing the collection of information. 
Thus, the total annual reporting and recordkeeping burden for this 
collection is estimated to be 1,680 hours.

Intergovernmental Review

    This program is subject to the requirements of Executive Order 
12372 and the regulations in 34 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 the response to the proposed regulations and 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 any other agency or authority of the 
United States.

List of Subjects in 34 CFR Part 345

    Disabled, Education, Grant program-education, Handicapped, 
Reporting and recordkeeping requirements, Science and technology.

    Dated: January 16, 1996.
Howard R. Moses,
Acting Assistant Secretary for Special Education and Rehabilitative 
Services.
(Catalog of Federal Domestic Assistance Number 84.224--State Grants 
Program for Technology-Related Assistance for Individuals with 
Disabilities)

    The Secretary amends Title 34 of the Code of Federal Regulations by 
revising Part 345 to read as follows:

PART 345--STATE GRANTS PROGRAM FOR TECHNOLOGY-RELATED ASSISTANCE 
FOR INDIVIDUALS WITH DISABILITIES

Subpart A--General

Sec.
345.1  What is the State Grants Program for Technology-Related 
Assistance for Individuals with Disabilities?
345.2  What are the purposes of the State grants program for 
technology-related assistance for individuals with disabilities?
345.3  What are the types of awards under this program?
345.4  Who is eligible to receive a development grant?
345.5  What are the responsibilities of the lead agency or public 
agency in applying for and in administering a development grant?
345.6  How does a State designate the lead agency?
345.7  Who is eligible to receive an extension grant?
345.8  What are the responsibilities of the lead agency in applying 
for and in administering an extension grant?
345.9  What regulations apply to this program? 

[[Page 8162]]

345.10  What definitions apply to this program?

Subpart B--What Kinds of Activities Does the Department Support?

345.20  What types of activities are authorized under this program?

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

345.30  What is the content of an application for a development 
grant?
345.31  What is the content of an application for an extension 
grant?

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

345.40  How does the Secretary evaluate an application for a 
development grant under this program?
345.41  What other factors does the Secretary take into 
consideration in making development grant awards under this program?
345.42  What is the review process for an application for an 
extension grant?
345.43  What priorities does the Secretary establish?

Subpart E--What Conditions Must Be Met After an Award?

345.50  What are the reporting requirements for the recipients of 
development and extension grants?
345.51  When is a State making significant progress?
345.52  Who retains title to devices provided under this program?
345.53  What are the requirements for grantee participation in the 
Secretary's progress assessments?
345.54  How may grant funds be used under this program?
345.55  What are the responsibilities of a State in carrying out 
protection and advocacy services?

Subpart F--What Compliance Procedures May the Secretary Use?

345.60  Who is subject to a corrective action plan?
345.61  What penalties may the Secretary impose on a grantee that is 
subject to corrective action?
345.62  How does a State redesignate the lead agency when it is 
subject to corrective action?
345.63  How does a State change the entity responsible for providing 
protection and advocacy services?

    Authority: 29 U.S.C. 2201-2217, unless otherwise noted.

PART 345--STATE GRANTS PROGRAM FOR TECHNOLOGY-RELATED ASSISTANCE 
FOR INDIVIDUALS WITH DISABILITIES

Subpart A--General


Sec. 345.1  What is the State Grants Program for Technology-Related 
Assistance for Individuals with Disabilities?

    This program provides grants to States to support systems change 
and advocacy activities designed to assist States in developing and 
implementing consumer-responsive comprehensive Statewide programs of 
technology-related assistance that accomplish the purposes in 
Sec. 345.2.

(Authority: 29 U.S.C. 2211(a); Section 101(a) of the Act)


Sec. 345.2  What are the purposes of the State grants program for 
technology-related assistance for individuals with disabilities?

    The purposes of this program are to provide financial assistance to 
States to support systems change and advocacy activities designed to 
assist each State in developing and implementing a consumer-responsive 
comprehensive statewide program of technology-related assistance, for 
individuals with disabilities of all ages, that is designed to--
    (a)(1) Increase the availability of, funding for, access to, and 
provision of, assistive technology devices and assistive technology 
services;
    (2) Increase the active involvement of individuals with 
disabilities and their family members, guardians, advocates, and 
authorized representatives, in the planning, development, 
implementation, and evaluation of the program;
    (3) Increase the involvement of individuals with disabilities and, 
if appropriate, their family members, guardians, advocates, or 
authorized representatives, in decisions related to the provision of 
assistive technology devices and assistive technology services;
    (4) Increase the provision of outreach to underrepresented 
populations and rural populations, to enable the two populations to 
enjoy the benefits of programs carried out to accomplish the purposes 
described in this section to the same extent as other populations;
    (5) Increase and promote coordination among State agencies, and 
between State agencies and private entities, that are involved in 
carrying out activities under this part, particularly providing 
assistive technology devices and assistive technology services, that 
accomplish a purpose described in another paragraph of this section;
    (6)(i) Increase the awareness of laws, regulations, policies, 
practices, procedures, and organizational structures, that facilitate 
the availability or provision of assistive technology devices and 
assistive technology services; and
    (ii) Facilitate the change of laws, regulations, policies, 
practices, procedures, and organizational structures, that impede the 
availability or provision of assistive technology devices and assistive 
technology services;
    (7) Increase the probability that individuals with disabilities of 
all ages will, to the extent appropriate, be able to secure and 
maintain possession of assistive technology devices as these 
individuals make the transition between services offered by human 
service agencies or between settings of daily living;
    (8) Enhance the skills and competencies of individuals involved in 
providing assistive technology devices and assistive technology 
services;
    (9) Increase awareness and knowledge of the efficacy of assistive 
technology devices and assistive technology services among--
    (i) Individuals with disabilities and their family members, 
guardians, advocates, and authorized representatives;
    (ii) Individuals who work for public agencies, or for private 
entities (including insurers), that have contact with individuals with 
disabilities;
    (iii) Educators and related services personnel;
    (iv) Technology experts (including engineers);
    (v) Employers; and
    (vi) Other appropriate individuals;
    (10) Increase the capacity of public agencies and private entities 
to provide and pay for assistive technology devices and assistive 
technology services on a statewide basis for individuals with 
disabilities of all ages; and
    (11) Increase the awareness of the needs of individuals with 
disabilities for assistive technology devices and for assistive 
technology services.
    (b)(1) Identify Federal policies that facilitate payment for 
assistive technology devices and assistive technology services.
    (2) Identify Federal policies that impede this payment.
    (3) Eliminate inappropriate barriers to this payment.
    (c) Enhance the ability of the Federal Government to provide States 
with--
    (1) Technical assistance, information, training, and public 
awareness programs relating to the provision of assistive technology 
devices and assistive technology services; and
    (2) Funding for demonstration projects.

(Authority: 29 U.S.C. 2201(b); Section 2(b) of the Act)


Sec. 345.3  What are the types of awards under this program?

    (a) Under this program, the Secretary--
    (1) Awards three-year development grants to assist States in 
developing and 

[[Page 8163]]
implementing consumer-responsive comprehensive statewide programs that 
accomplish the purposes in Sec. 345.2;
    (2) May award an initial two-year extension grant to any State that 
meets the standards in Sec. 345.42(a); and
    (3) May award a second extension grant, for a period of not more 
than 5 years, to any State that meets the standards in Sec. 345.42(b).
    (b) The Secretary calculates the amount of the development grants 
in paragraph (a)(1) of this section on the basis of--
    (1) Amounts available for making grants under this part;
    (2) The population of the State or territory concerned; and
    (3) The types of activities proposed by the State relating to the 
development of a consumer-responsive comprehensive statewide program of 
technology-related assistance.
    (c) The Secretary calculates the amount of the extension grants in 
paragraph (a)(2) of this section on the basis of--
    (1) Amounts available for making grants;
    (2) The population of the State;
    (3) The types of assistance proposed by the State in its 
application; and
    (4) A description in its application of the amount of resources 
committed by the State and available to the State from other sources to 
sustain the program after federal funding ends.
    (d)(1) In providing any increases in initial extension grants in 
paragraph (a)(2) of this section above the amounts provided to States 
for Fiscal Year 1993, the Secretary may give priority to States (other 
than the territories) that--
    (i) Have the largest populations, based on the most recent census 
data; and
    (ii) Are sparsely populated, with a wide geographic spread.
    (2) To be eligible for the priority in paragraph (d)(1) of this 
section, the circumstances in paragraphs (d)(1)(i) or (ii) must have 
impeded the development of a consumer-responsive, comprehensive 
statewide program of technology-related assistance in a State.
    (e) During the fourth and fifth years of a State's second extension 
grant, the amount received by a State will be reduced to 75% and 50%, 
respectively, of the amount paid to the State for the third year of the 
grant.

(Authority: 29 U.S.C. 2212(b), 2213(a), 2213(c)(1)(B) and (2), and 
2213(c)(1)(D); Sections 102(b), 103(a), 103(c)(1)(B) and (2), 
103(c)(1)(D) of the Act)


Sec. 345.4  Who is eligible to receive a development grant?

    A State is eligible to receive a development grant under this 
program, provided that the Governor has designated a lead agency to 
carry out the responsibilities contained in Sec. 345.5.

(Authority: 29 U.S.C. 2212(a)(1) and 2212 (d)(1); Section 102(a) and 
102(d)(1) of the Act)


Sec. 345.5  What are the responsibilities of the lead agency or public 
agency in applying for and in administering a development grant?

    (a) The lead agency is responsible for the following:
    (1) Submitting the application containing the information and 
assurances contained in Sec. 345.30.
    (2) Administering and supervising the use of amounts made available 
under the grant.
    (3)(i) Coordinating efforts related to, and supervising the 
preparation of, the application;
    (ii) Coordinating the planning, development, implementation, and 
evaluation of the consumer-responsive comprehensive statewide program 
of technology-related assistance among public agencies and between 
public agencies and private agencies, including coordinating efforts 
related to entering into interagency agreements; and
    (iii) Coordinating efforts related to, and supervising, the active, 
timely, and meaningful participation by individuals with disabilities 
and their family members, guardians, advocates, or authorized 
representatives, and other appropriate individuals, with respect to 
activities carried out under the grant.
    (4) The delegation, in whole or in part, of any responsibilities 
described in paragraphs (a)(1) through (3) of this section to one or 
more appropriate offices, agencies, entities, or individuals.
    (b) If the lead agency is not a public agency, a public agency 
shall have the responsibility of controlling and administering amounts 
received under the grant.

(Authority: 29 U.S.C. 2212(d)(1) and 2212(e)(12)(A); Section 
102(d)(1) and 102(e)(12)(A) of the Act)


Sec. 345.6  How does a State designate the lead agency?

    (a) The Governor may designate--
    (1) A commission appointed by the Governor;
    (2) A public-private partnership or consortium;
    (3) A university-affiliated program;
    (4) A public agency;
    (5) A council established under Federal or State law; or
    (6) Another appropriate office, agency, entity, or individual.
    (b) The State shall provide evidence that the lead agency has the 
ability--
    (1) To respond to assistive technology needs across disabilities 
and ages;
    (2) To promote the availability throughout the State of assistive 
technology devices and assistive technology services;
    (3) To promote and implement systems change and advocacy 
activities;
    (4) To promote and develop public-private partnerships;
    (5) To exercise leadership in identifying and responding to the 
technology needs of individuals with disabilities and their family 
members, guardians, advocates, and authorized representatives;
    (6) To promote consumer confidence, responsiveness, and advocacy; 
and
    (7) To exercise leadership in implementing effective strategies for 
capacity building, staff and consumer training, and enhancement of 
access to funding for assistive technology devices and assistive 
technology services across agencies.

(Authority: 29 U.S.C. 2212(d)(2) and (3); Sections 102(d)(2) and (3) 
of the Act)


Sec. 345.7  Who is eligible to receive an extension grant?

    A State is eligible to receive an extension grant under this 
program.


Sec. 345.8  What are the responsibilities of the lead agency in 
applying for and in administering an extension grant?

    (a) To be eligible to receive an initial extension grant, the lead 
agency shall--
    (1) Submit an application containing the information and assurances 
in Sec. 345.31; and
    (2) Hold a public hearing in the third year of a program carried 
out under a development grant, after providing appropriate and 
sufficient notice to allow interested groups and organizations and all 
segments of the public an opportunity to comment on the program.
    (b) To be eligible to receive a second extension grant, the lead 
agency shall--
    (1) Submit an application containing the information and assurances 
in Sec. 345.31; and
    (2) Hold a public hearing in the second year of a program carried 
out under an initial extension grant, after providing appropriate and 
sufficient notice to allow interested groups and organizations and all 
segments of the public an opportunity to comment on the program.

(Authority: 29 U.S.C. 2213(d) and (e); Section 103(d) and (e) of the 
Act)


Sec. 345.9  What regulations apply to this program?

    The following regulations apply to the State Grants Program for 
Technology-

[[Page 8164]]
Related Assistance for Individuals with Disabilities:
    (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), except Sec. 75.618;
    (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), except 
Secs. 80.32(a) and 80.33(a);
    (6) 34 CFR Part 81 (General Education Provisions Act--Enforcement);
    (7) 34 CFR Part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)); and
    (8) Part 86 (Drug-Free Schools and Campuses).
    (b) The regulations in this part.

(Authority: 29 U.S.C. 2201-2217; Sections 101-107 of the Act)


Sec. 345.10  What definitions apply to this program?

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

Applicant
Application
Award
Department
EDGAR
Fiscal year
Grant period
Nonprofit
Nonpublic
Private
Project
Project period
Public

    (b) Definitions in the Technology-Related Assistance for 
Individuals with Disabilities Act of 1988.
    (1) The following terms used in this part are defined in section 3 
of the Act:

Advocacy services
Assistive technology device
Assistive technology service
Comprehensive statewide program of technology-related assistance
Consumer-responsive
Disability
Individual with a disability; individuals with disabilities
Institution of higher education
Protection and advocacy services
Secretary
State
Systems change and related activities
Technology-related assistance
Underrepresented population

    (2) The following term used in this part is defined in section 
102(b)(5) of the Act:

Territory

    (d) Other definitions. The following definitions also apply to this 
part:
    Initial extension grant means the two-year extension grant 
following a three-year development grant under this program.
    Second extension grant means the extension grant following the 
initial extension grant under this program. The period of this grant is 
for a period of not more than 5 years.

(Authority: 29 U.S.C. 2201-2217; Sections 101-107 of the Act)

Subpart B--What Kinds of Activities Does the Department Support


Sec. 345.20  What type of activities are authorized under this program?

    Any State that receives a development or extension grant shall use 
the funds made available through the grant to accomplish the purposes 
described in Sec. 345.2(a) and, in accomplishing such purposes, may 
carry out any of the following systems change and advocacy activities:
    (a) Support activities to increase access to, and funding for, 
assistive technology, including--
    (1) The development, and evaluation of the efficacy, of model 
delivery systems that provide assistive technology devices and 
assistive technology services to individuals with disabilities, that 
pay for devices and services, and that, if successful, could be 
replicated or generally applied, such as--
    (i) The development of systems for the purchase, lease, other 
acquisition, or payment for the provision, of assistive technology 
devices and assistive technology services; or
    (ii) The establishment of alternative State or privately financed 
systems of subsidies for the provision of assistive technology devices 
and assistive technology services, such as--
    (A) A loan system for assistive technology devices;
    (B) An income-contingent loan fund;
    (C) A low interest loan fund;
    (D) A revolving loan fund;
    (E) A loan insurance program; or
    (F) A partnership with private entities for the purchase, lease, or 
other acquisition of assistive technology devices and the provision of 
assistive technology services;
    (2) The demonstration of assistive technology devices, including--
    (i) The provision of a location or locations within the State where 
the following individuals can see and touch assistive technology 
devices, and learn about the devices from personnel who are familiar 
with such devices and their applications:
    (A) Individuals with disabilities and their family members, 
guardians, advocates, and authorized representatives;
    (B) Education, rehabilitation, health care, and other service 
providers;
    (C) Individuals who work for Federal, State, or local government 
entities; and
    (D) Employers.
    (ii) The provision of counseling and assistance to individuals with 
disabilities and their family members, guardians, advocates, and 
authorized representatives to determine individual needs for assistive 
technology devices and assistive technology services; and
    (iii) The demonstration or short-term loan of assistive technology 
devices to individuals, employers, public agencies, or public 
accommodations seeking strategies to comply with the Americans with 
Disabilities Act of 1990 (42 U.S.C. 12101 et seq.) and section 504 of 
the Rehabilitation Act of 1973 (29 U.S.C. 794); and
    (3) The establishment of information systems about, and recycling 
centers for, the redistribution of assistive technology devices and 
equipment that may include device and equipment loans, rentals, or 
gifts.
    (b) Support activities to--
    (1) Identify and coordinate Federal and State policies, resources, 
and services, relating to the provision of assistive technology devices 
and assistive technology services, including entering into interagency 
agreements;
    (2) Convene interagency work groups to enhance public funding 
options and coordinate access to funding for assistive technology 
devices and assistive technology services for individuals with 
disabilities of all ages, with special attention to the issues of 
transition (such as transition from school to work, and transition from 
participation in programs under part H of the Individuals with 
Disabilities Education Act (20 U.S.C. 1471 et seq.), to participation 
in programs under part B of such Act (20 U.S.C. 1411 et seq.)) home 
use, and individual involvement in the identification, planning, use, 
delivery, and evaluation of such devices and services; or
    (3) Document and disseminate information about interagency 
activities that promote coordination with respect to assistive 
technology devices and 

[[Page 8165]]
assistive technology services, including evidence of increased 
participation of State and local special education, vocational 
rehabilitation, and State medical assistance agencies and departments.
    (c) Carry out activities to encourage the creation or maintenance 
of, support, or provide assistance to, statewide and community-based 
organizations, or systems, that provide assistive technology devices 
and assistive technology services to individuals with disabilities or 
that assist individuals with disabilities in using assistive technology 
devices or assistive technology services. The activities may include 
outreach to consumer organizations and groups in the State to 
coordinate the activities of the organizations and groups with efforts 
(including self-help, support groups, and peer mentoring) to assist 
individuals with disabilities and their family members, guardians, 
advocates, or authorized representatives, to obtain funding for, and 
access to, assistive technology devices and assistive technology 
services.
    (d) Pay for expenses, including travel expenses, and services, 
including services of qualified interpreters, readers, and personal 
assistants services that may be necessary to ensure access to the 
comprehensive statewide program of technology-related assistance by 
individuals with disabilities who are determined by the State to be in 
financial need. The expenses must be incurred by participants in 
activities associated with the state technology program.
    (e) Conduct a statewide needs assessment that may be based on data 
in existence on the date on which the assessment is initiated and may 
include--
    (1) Estimates of the numbers of individuals with disabilities 
within the State, categorized by residence, type and extent of 
disabilities, age, race, gender, and ethnicity;
    (2) In the case of an assessment carried out under a development 
grant, a description of efforts, during the fiscal year preceding the 
first fiscal year for which the State received a grant, to provide 
assistive technology devices and assistive technology services to 
individuals with disabilities within the State, including--
    (i) The number of individuals with disabilities who received 
appropriate assistive technology devices and assistive technology 
services; and
    (ii) A description of the devices and services provided;
    (3) Information on the number of individuals with disabilities who 
are in need of assistive technology devices and assistive technology 
services, and a description of the devices and services needed;
    (4) Information on the cost of providing assistive technology 
devices and assistive technology services to all individuals with 
disabilities within the State who need such devices and services;
    (5) A description of State and local public resources and private 
resources (including insurance) that are available to establish a 
consumer-responsive comprehensive statewide program of technology-
related assistance;
    (6) Information identifying Federal and State laws, regulations, 
policies, practices, procedures, and organizational structures, that 
facilitate or interfere with the operation of a consumer responsive 
comprehensive statewide program of technology related assistance;
    (7) A description of the procurement policies of the State and the 
extent to which such policies will ensure, to the extent practicable, 
that assistive technology devices purchased, leased, or otherwise 
acquired with assistance made available through a development or 
extension grant under this part are compatible with other technology 
devices, including technology devices designed primarily for use by--
    (i) Individuals who are not individuals with disabilities;
    (ii) Individuals who are elderly; or
    (iii) Individuals with particular disabilities; and
    (8) Information resulting from an inquiry about whether a State 
agency or task force (composed of individuals representing the State 
and individuals representing the private sector) should study the 
practices of private insurance companies holding licenses within the 
State that offer health or disability insurance policies under which an 
individual may obtain reimbursement for--
    (i) The purchase, lease, or other acquisition of assistive 
technology devices; or
    (ii) The use of assistive technology services.
    (f) Support--
    (1)(i) A public awareness program designed to provide information 
relating to the availability and efficacy of assistive technology 
devices and assistive technology services for--
    (A) Individuals with disabilities and their family members, 
guardians, advocates, or authorized representatives;
    (B) Individuals who work for public agencies, or for private 
entities (including insurers), that have contact with individuals with 
disabilities;
    (C) Educators and related services personnel;
    (D) Technology experts (including engineers);
    (E) Employers; and
    (F) Other appropriate individuals and entities; or
    (ii) Establish and support the program if no such program exists.
    (2) A public awareness program that may include the--
    (i) Development and dissemination of information relating to the--
    (A) Nature of assistive technology devices and assistive technology 
services;
    (B) Appropriateness, cost, and availability of, and access to, 
assistive technology devices and assistive technology services; and
    (C) Efficacy of assistive technology devices and assistive 
technology services with respect to enhancing the capacity of 
individuals with disabilities;
    (ii) Development of procedures for providing direct communication 
among public providers of assistive technology devices and assistive 
technology services and between public providers and private providers 
of devices and services (including employers); and
    (iii) Development and dissemination of information relating to the 
use of the program by individuals with disabilities and their family 
members, guardians, advocates, or authorized representatives, 
professionals who work in a field related to an activity described in 
this section, and other appropriate individuals.
    (g) Carry out directly, or may provide support to a public or 
private entity to carry out, training and technical assistance 
activities that--
    (1)(i) Are provided for individuals with disabilities and their 
family members, guardians, advocates, and authorized representatives, 
and other appropriate individuals; and
    (ii) May include--
    (A) Training in the use of assistive technology devices and 
assistive technology services;
    (B) The development of written materials, training, and technical 
assistance describing the means by which agencies consider the needs of 
an individual with a disability for assistive technology devices and 
assistive technology services in developing, for the individual, any 
individualized education program described in section 614(a)(5) of the 
Individuals with Disabilities Education Act (20 U.S.C. 1414(a)(5)), any 
individualized written rehabilitation program described in section 102 
of the Rehabilitation Act of 

[[Page 8166]]
1973 (29 U.S.C. 722), any individualized family service plan described 
in section 677 of the Individuals with Disabilities Education Act (20 
U.S.C. 1477), and any other individualized plans or programs;
    (C) Training regarding the rights of the persons described in 
paragraph (f)(1)(i) of this section to assistive technology devices and 
assistive technology services under any law other than this Act, to 
promote fuller independence, productivity, and inclusion in and 
integration into society of such persons; and
    (D) Training to increase consumer participation in the 
identification, planning, use, delivery, and evaluation of assistive 
technology devices and assistive technology services; and
    (2)(i) Enhance the assistive technology skills and competencies 
of--
    (A) Individuals who work for public agencies or for private 
entities (including insurers) that have contact with individuals with 
disabilities;
    (B) Educators and related services personnel;
    (C) Technology experts (including engineers);
    (D) Employers; and
    (E) Other appropriate personnel; and
    (ii) Include taking actions to facilitate the development of 
standards, or, when appropriate, the application of standards, to 
ensure the availability of qualified personnel.
    (h) Support the compilation and evaluation of appropriate data 
related to a program described in Sec. 345.1.
    (i)(1) Develop, operate, or expand a system for public access to 
information concerning an activity carried out under another paragraph 
of this section, including information about assistive technology 
devices and assistive technology services, funding sources and costs of 
assistance, and individuals, organizations, and agencies capable of 
carrying out such an activity for individuals with disabilities.
    (2) Access to the system may be provided through community-based 
entities, including public libraries, centers for independent living 
(as defined in section 702(1) of the Rehabilitation Act of 1973 (29 
U.S.C. 796a(1)), and community rehabilitation programs, as defined in 
section 7(25) of such Act (29 U.S.C. 706(25)).
    (3) In developing, operating, or expanding a system described in 
paragraph (i)(1) of this section, the State may--
    (i) Develop, compile, and categorize print, large print, braille, 
audio, and video materials, computer disks, compact discs (including 
compact discs formatted with read-only memory), information that can be 
used in telephone-based information systems, and other media as 
technological innovation may make appropriate;
    (ii) Identify and classify existing funding sources, and the 
conditions of and criteria for access to such sources, including any 
funding mechanisms or strategies developed by the State;
    (iii) Identify existing support groups and systems designed to help 
individuals with disabilities make effective use of an activity carried 
out under another paragraph of this section; and
    (iv) Maintain a record of the extent to which citizens of the State 
use or make inquiries of the system established in paragraph (i)(1) of 
this section, and of the nature of inquiries.
    (4) The information system may be organized on an interstate basis 
or as part of a regional consortium of States in order to facilitate 
the establishment of compatible, linked information systems.
    (j)(1) The State may enter into cooperative agreements with other 
States to expand the capacity of the States involved to assist 
individuals with disabilities of all ages to learn about, acquire, use, 
maintain, adapt, and upgrade assistive technology devices and assistive 
technology services that individuals need at home, at school, at work, 
or in other environments that are part of daily living.
    (2) The State may operate or participate in a computer system 
through which the State may electronically communicate with other 
States to gain technical assistance in a timely fashion and to avoid 
the duplication of efforts already undertaken in other States.
    (k) Support the establishment or continuation of partnerships and 
cooperative initiatives between the public sector and the private 
sector to promote the greater participation by business and industry in 
the--
    (1) Development, demonstration, and dissemination of assistive 
technology devices; and
    (2) Ongoing provision of information about new products to assist 
individuals with disabilities.
    (l) Provide advocacy services.
    (m) Utilize amounts made available through development and 
extension grants for any systems change and advocacy activities, other 
than the activities described in another paragraph of this section, 
that are necessary for developing, implementing, or evaluating the 
consumer-responsive comprehensive statewide program of technology-
related assistance.
    (n)(1) Accomplish the purposes in Sec. 345.2(b) and (c).

(Authority: 29 U.S.C. 2201(b) and 2211(b); Sections 2(b)(2), 2(b)(3) 
and 101(b) of the Act)

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


Sec. 345.30  What is the content of an application for a development 
grant?

    (a) Applicants for development grants under this program shall 
include the following information in their applications:
    (1) Information identifying the lead agency designated by the 
Governor under Sec. 345.4 and the evidence described in Sec. 345.6(b).
    (2) A description of the nature and extent of involvement of 
various State agencies, including the State insurance department, in 
the preparation of the application and the continuing role of each 
agency in the development and implementation of the consumer-responsive 
comprehensive statewide program of technology-related assistance, 
including the identification of the available resources and financial 
responsibility of each agency for paying for assistive technology 
devices and assistive technology services.
    (3)(i) A description of procedures that provide for--
    (A)(1) The active involvement of individuals with disabilities and 
their family members, guardians, advocates, and authorized 
representatives, and other appropriate individuals, in the development, 
implementation, and evaluation of the program; and
    (2) To the maximum extent appropriate, the active involvement of 
individuals with disabilities who use assistive technology devices or 
assistive technology services, in decisions relating to such devices 
and services; and
    (B) Mechanisms for determining consumer satisfaction and 
participation of individuals with disabilities who represent a variety 
of ages and types of disabilities, in the consumer-responsive 
comprehensive statewide program of technology-related assistance.
    (ii) A description of the nature and extent of the--
    (A) Involvement, in the designation of the lead agency under 
Sec. 345.4, and in the development of the application, of--
    (1) Individuals with disabilities and their family members, 
guardians, advocates, or authorized representatives;
    (2) Other appropriate individuals who are not employed by a State 
agency; and
    (3) Organizations, providers, and interested parties, in the 
private sector; and
    (B) Continuing role of the individuals and entities described in 
paragraph 

[[Page 8167]]
(a)(3)(ii)(A) of this section in the program.
    (4) A tentative assessment of the extent of the need of individuals 
with disabilities in the State, including individuals from 
underrepresented populations or rural populations for a statewide 
program of technology-related assistance and a description of previous 
efforts and efforts continuing on the date of the application to 
develop a consumer-responsive comprehensive statewide program of 
technology-related assistance.
    (5) A description of State resources and other resources (to the 
extent this information is available) that are available to commit to 
the development of a consumer-responsive comprehensive statewide 
program of technology-related assistance.
    (6) Information on the program with respect to the--
    (i) Goals and objectives of the State for the program;
    (ii) Systems change and advocacy activities that the State plans to 
carry out under the program; and
    (iii) Expected outcomes of the State for the program, consistent 
with the purposes described in Sec. 345.2(a).
    (7)(i) A description of the data collection system used for 
compiling information on the program, consistent with requirements 
established by the Secretary for systems, and, when a national 
classification system is developed pursuant to section 201 of the Act, 
consistent with the classification system; and
    (ii) Procedures that will be used to conduct evaluations of the 
program.
    (8) A description of the policies and procedures governing 
contracts, grants, and other arrangements with public agencies, private 
nonprofit organizations, and other entities or individuals for the 
purpose of providing assistive technology devices and assistive 
technology services consistent with this part.
    (b) Applicants for development grants shall include the following 
assurances in their applications:
    (1)(i) An assurance that the State will use funds from a 
development or extension grant to accomplish the purposes described in 
Sec. 345.2(a) and the goals, objectives, and outcomes described in 
paragraph (a)(6) of this section, and to carry out the systems change 
and advocacy activities described in paragraph (a)(6)(ii) of this 
section, in a manner that is consumer-responsive.
    (ii) An assurance that the State, in carrying out systems change 
and advocacy activities, shall carry out the following activities, 
unless the State demonstrates through the progress reports required 
under Sec. 345.50 that significant progress has been made in the 
development and implementation of a consumer-responsive comprehensive 
statewide program of technology-related assistance, and that other 
systems change and advocacy activities will increase the likelihood 
that the program will accomplish the purposes described in 
Sec. 345.2(a):
    (A) The development, implementation, and monitoring of State, 
regional, and local laws, regulations, policies, practices, procedures, 
and organizational structures, that will improve access to, provision 
of, funding for, and timely acquisition and delivery of, assistive 
technology devices and assistive technology services;
    (B) The development and implementation of strategies to overcome 
barriers regarding access to, provision of, and funding for, such 
devices and services, with priority for identification of barriers to 
funding through State education (including special education) services, 
vocational rehabilitation services, and medical assistance services or, 
as appropriate, other health and human services, and with particular 
emphasis on overcoming barriers for underrepresented populations and 
rural populations;
    (C) Coordination of activities among State agencies, in order to 
facilitate access to, provision of, and funding for, assistive 
technology devices and assistive technology services;
    (D) The development and implementation of strategies to empower 
individuals with disabilities and their family members, guardians, 
advocates, and authorized representatives, to successfully advocate for 
increased access to, funding for, and provision of, assistive 
technology devices and assistive technology services, and to increase 
the participation, choice, and control of individuals with disabilities 
and their family members, guardians, advocates, and authorized 
representatives in the selection and procurement of assistive 
technology devices and assistive technology services;
    (E) The provision of outreach to underrepresented populations and 
rural populations, including identifying and assessing the needs of 
such populations, providing activities to increase the accessibility of 
services to such populations, training representatives of such 
populations to become service providers, and training staff of the 
consumer-responsive comprehensive statewide program of technology-
related assistance to work with such populations; and
    (F) The development and implementation of strategies to ensure 
timely acquisition and delivery of assistive technology devices and 
assistive technology services, particularly for children.
    (2) An assurance that the State will conduct an annual assessment 
of the consumer-responsive comprehensive statewide program of 
technology-related assistance, in order to determine--
    (i) The extent to which the State's goals and objectives for 
systems change and advocacy activities, as identified in the State plan 
under paragraph (a)(6) of this section, have been achieved; and
    (ii) The areas of need that require attention in the next year.
    (3) An assurance that amounts received under the grant will be 
expended in accordance with the provisions of this part;
    (4) An assurance that amounts received under the grant--
    (i) Will be used to supplement amounts available from other sources 
that are expended for technology-related assistance, including the 
provision of assistive technology devices and assistive technology 
services; and
    (ii) Will not be used to pay a financial obligation for technology-
related assistance (including the provision of assistive technology 
devices or assistive technology services) that would have been paid 
with amounts available from other sources if amounts under the grant 
had not been available, unless--
    (A) The payment is made only to prevent a delay in the receipt of 
appropriate technology-related assistance (including the provision of 
assistive technology devices or assistive technology services) by an 
individual with a disability; and
    (B) The entity or agency responsible subsequently reimburses the 
appropriate account with respect to programs and activities under the 
grant in an amount equal to the amount of the payment;
    (5) An assurance that--
    (i) A public agency shall control and administer amounts received 
under the grant; and
    (ii) A public agency or an individual with a disability shall--
    (A) Hold title to property purchased with such amounts; and
    (B) Administer such property.
    (6) An assurance that the State will--
    (i) Prepare reports to the Secretary in the form and containing 
information required by the Secretary to carry out the Secretary's 
functions under this part; and
    (ii) Keep records and allow access to records as the Secretary may 
require to 

[[Page 8168]]
ensure the correctness and verification of information provided to the 
Secretary under this paragraph of this section.
    (7) An assurance that amounts received under the grant will not be 
commingled with State or other funds;
    (8) An assurance that the State will adopt fiscal control and 
accounting procedures as may be necessary to ensure proper disbursement 
of an accounting for amounts received under the grant;
    (9) An assurance that the State will--
    (i) Make available to individuals with disabilities and their 
family members, guardians, advocates, or authorized representatives 
information concerning technology-related assistance in a form that 
will allow individuals to effectively use the information; and
    (ii) In preparing information for dissemination, consider the 
media-related needs of individuals with disabilities who have sensory 
and cognitive limitations and consider the use of auditory materials, 
including audio cassettes, visual materials, including video cassettes 
and video discs, and braille materials.
    (10) An assurance that, to the extent practicable, technology-
related assistance made available with amounts received under the grant 
will be equitably distributed among all geographical areas of the 
State;
    (11) An assurance that the lead agency will have the authority to 
use funds made available through a development or extension grant to 
comply with the requirements of this part, including the ability to 
hire qualified staff necessary to carry out activities under the 
program;
    (12)(i) An assurance that the State will annually provide, from the 
funds made available to the State through a development or extension 
grant under this part, an amount calculated in accordance with section 
102(f)(4) of the Act in order to make a grant to, or enter into a 
contract with--
    (A) An entity to support protection and advocacy services through 
the systems established to provide protection and advocacy under the 
Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 
6000 et seq.), the Protection and Advocacy for Mentally Ill Individuals 
Act (42 U.S.C. 10801 et seq.), and section 509 of the Rehabilitation 
Act of 1973 (29 U.S.C. 794e); or
    (B) An entity described in Sec. 345.55(a)(1).
    (ii) The State need not provide the assurance in paragraph 
(b)(12)(i) of this section, if the State requests in its annual 
progress report or first or second extension application, as 
applicable, that the Secretary annually reserve, from the funds made 
available for a development or extension grant, an amount calculated in 
accordance with section 102(f)(4) of the Act, in order for the 
Secretary to make a grant to or enter into a contract with a system to 
support protection and advocacy services.
    (13) An assurance that the State--
    (i) Will develop and implement strategies for including personnel 
training regarding assistive technology within existing Federal- and 
State-funded training initiatives, in order to enhance assistive 
technology skills and competencies; and
    (ii) Will document the training;
    (14) An assurance that the percentage of the funds received under 
the grant that is used for indirect costs (as defined in OMB Circular 
A-87 incorporated by reference in 34 CFR 80.22(b)) shall not exceed 10 
percent of the total amount of the grant; and
    (15) An assurance that the lead agency will coordinate the 
activities funded through a development or extension grant under this 
part with the activities carried out by councils within the State, 
including--
    (i) Any council or commission specified in the assurance provided 
by the State in accordance with section 101(a)(36) of the 
Rehabilitation Act of 1973 (29 U.S.C. 721(a)(36));
    (ii) The Statewide Independent Living Council established under 
section 705 of the Rehabilitation Act of 1973 (29 U.S.C. 796d));
    (iii) The advisory panel established under section 613(a)(12) of 
the Individuals with Disabilities Education Act (20 U.S.C. 
1413(a)(12));
    (iv) The State Interagency Coordinating Council established under 
section 682 of the Individuals with Disabilities Education Act (20 
U.S.C. 1482));
    (v) The State Planning Council described in section 124 of the 
Developmental Disabilities Assistance and Bill of Rights Act (20 U.S.C. 
6024);
    (vi) The State mental health planning council established under 
section 1914 of the Public Health Service Act (42 U.S.C. 300x-3);
    (vii) Any council established under section 204, 206(g)(2)(A), or 
712(a)(3)(H) of the Older Americans Act of 1965 (42 U.S.C. 3015, 
3017(g)(2)(A), or 3058g(a)(3)(H)).
    (16) An assurance that there will be coordination between the 
activities funded through the grant and other related systems change 
and advocacy activities funded by either Federal or State sources.
    (c) Applicants for development grants shall provide any other 
related information and assurances that the Secretary may reasonably 
require.

(Authority: 29 U.S.C. 2212(e); Section 102(e) of the Act)


345.31  What is the content of an application for an extension grant?

    A State that seeks an extension grant shall include the following 
in an application:
    (a) The information and assurances described in Sec. 345.30, except 
the preliminary needs assessment described in Sec. 345.30(a)(4).
    (b) A description of the following:
    (1) The needs relating to technology-related assistance of 
individuals with disabilities (including individuals from 
underrepresented populations or rural populations) and their family 
members, guardians, advocates, or authorized representatives, and other 
appropriate individuals within the State.
    (2) Any problems or gaps that remain with the development and 
implementation of a consumer-responsive comprehensive statewide program 
of technology-related assistance in the State.
    (3) The strategies that the State will pursue during the grant 
period to remedy the problems or gaps with the development and 
implementation of a program.
    (4) Outreach activities to be conducted by the State, including 
dissemination of information to eligible populations, with special 
attention to underrepresented populations and rural populations.
    (5)(i) The specific systems change and advocacy activities 
described in Sec. 345.20 (including the activities described in 
Sec. 345.30(b)(1)) carried out under the development grant received by 
the State, or, in the case of an application for a second extension 
grant, under an initial extension grant received by the State under 
this section, including--
    (A) A description of systems change and advocacy activities that 
were undertaken to produce change on a permanent basis for individuals 
with disabilities of all ages;
    (B) A description of activities undertaken to improve the 
involvement of individuals with disabilities in the program, including 
training and technical assistance efforts to improve individual access 
to assistive technology devices and assistive technology services as 
mandated under other laws and regulations in effect on the date of the 
application, and including actions undertaken to improve the 
participation of underrepresented populations and rural populations, 
such as outreach efforts; and 

[[Page 8169]]

    (C) An evaluation of the impact and results of the activities 
described in paragraph (b)(5)(i)(A) and (B) of this section.
    (ii) The relationship of systems change and advocacy activities to 
the development and implementation of a consumer-responsive 
comprehensive statewide program of technology-related assistance.
    (iii) The progress made toward the development and implementation 
of a consumer-responsive comprehensive statewide program of technology-
related assistance.
    (6)(i) In the case of an application for an initial extension 
grant, a report on the hearing described in Sec. 345.8(a)(2) or, in the 
case of an application for a second extension grant, a report on the 
hearing described in Sec. 345.8(b)(2).
    (ii) A description of State actions, other than a hearing, designed 
to determine the degree of satisfaction of individuals with 
disabilities, and their family members, guardians, advocates, or 
authorized representatives, public service providers and private 
service providers, educators and related service providers, technology 
experts (including engineers), employers, and other appropriate 
individuals and entities with--
    (A) The degree of their ongoing involvement in the development and 
implementation of the consumer-responsive comprehensive statewide 
program of technology-related assistance;
    (B) The specific systems change and advocacy activities described 
in Sec. 345.20 (including the activities described in 
Sec. 345.30(b)(1)) carried out by the State under the development grant 
or the initial extension grant;
    (C) Progress made toward the development and implementation of a 
consumer-responsive comprehensive statewide program of technology-
related assistance; and
    (D) The ability of the lead agency to carry out the activities 
described in Sec. 345.6(b).
    (c) A summary of any comments received concerning the issues 
described in paragraph (b)(6) of this section and response of the State 
to such comments, solicited through a public hearing or through other 
means, from individuals affected by the consumer-responsive 
comprehensive statewide program of technology-related assistance, 
including--
    (1) Individuals with disabilities and their family members, 
guardians, advocates, or authorized representatives;
    (2) Public service providers and private service providers;
    (3) Educators and related services personnel;
    (4) Technology experts (including engineers);
    (5) Employers; and
    (6) Other appropriate individuals and entities.
    (d) An assurance that the State, any recipient, and any 
subrecipient of funds made available to the State under the Act will 
comply with guidelines established under section 508 of the 
Rehabilitation Act of 1973 (29 U.S.C. 794d).
    (e)(1) A copy of the protection and advocacy contract or grant 
agreement entered into by the State;
    (2) Evidence of ongoing negotiations with an entity to provide 
protection and advocacy services, if the State has not yet entered into 
a grant or contract; or
    (3) A request that the Secretary enter into a grant agreement with 
an entity to provide protection and advocacy services, pursuant to 
Sec. 345.30(b)(12)(ii).

(Authority: 29 U.S.C. 2213 (d) and (e); Section 103 (d) and (e) of 
the Act).

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


Sec. 345.40  How does the Secretary evaluate an application for a 
development grant under this program?

    The Secretary evaluates each application using the selection 
criteria in 34 CFR 75.210.

(Authority: 29 U.S.C. 2212(a); Section 102(a) of the Act)


Sec. 345.41  What other factors does the Secretary take into 
consideration in making development grant awards under this program?

    In making development grants under this program, the Secretary 
takes into consideration, to the extent feasible--
    (a) Achieving a balance among States that have differing levels of 
development of consumer-responsive comprehensive statewide programs of 
technology-related assistance; and
    (b) Achieving a geographically equitable distribution of the 
grants.

(Authority: 29 U.S.C. 2212(c); Section 102(c) of the Act)


Sec. 345.42  What is the review process for an application for an 
extension grant?

    (a) The Secretary may award an initial extension grant to any State 
that--
    (1) Provides the evidence described in Sec. 345.6(b) and makes the 
demonstration described in paragraph (a)(2) of this section;
    (2) Demonstrates that the State has made significant progress, and 
has carried out systems change and advocacy activities that have 
resulted in significant progress, toward the development and 
implementation of a consumer-responsive comprehensive statewide program 
of technology-related assistance, consistent with this part; and
    (3) Holds a public hearing in the third year of a program carried 
out under a development grant, after providing appropriate and 
sufficient notice to allow interested groups and organizations and all 
segments of the public an opportunity to comment on the program.
    (b) The Secretary may award a second extension grant to any State 
that-(1) Provides the evidence described in Sec. 345.6(b) and makes the 
demonstration described in paragraph (a)(2) of this section;
    (2) Describes the steps the State has taken or will take to 
continue on a permanent basis the consumer-responsive comprehensive 
statewide program of technology-related assistance with the ability to 
maintain, at a minimum, the outcomes achieved by the systems change and 
advocacy activities;
    (3) Identifies future funding options and commitments for the 
program from the public and private sector and the key individuals, 
agencies, and organizations to be involved in, and to direct future 
efforts of, the program; and
    (4) Holds a public hearing in the second year of a program carried 
out under an initial extension grant, after providing appropriate and 
sufficient notice to allow interested groups and organizations and all 
segments of the public an opportunity to comment on the program.
    (c) In making any award to a State for a second extension grant, 
the Secretary makes an award contingent on a determination, based on 
the on-site visit in Sec. 345.53, that the State is making significant 
progress toward development and implementation of a consumer-responsive 
comprehensive statewide program of technology-related assistance, 
except where the Secretary determines that the on-site visit is 
unnecessary. If the Secretary determines that the State is not making 
significant progress, the Secretary may take an action described in 
Sec. 345.61.

(Authority: 29 U.S.C. 2213 (b) and (e) and 2215(a)(2); Section 103 
(b) and (e) and 105(a)(2) of the Act)


Sec. 345.43  What priorities does the Secretary establish?

    (a) The Secretary gives, in each of the 2 fiscal years succeeding 
the fiscal year in which amounts are first appropriated for carrying 
out development grants, priority for funding to States that received 
development grants under this 

[[Page 8170]]
part during the fiscal year preceding the fiscal year concerned.
    (b) For States that are applying for initial extension grants, the 
Secretary gives, in any fiscal year, priority to States that received 
initial extension grants during the fiscal year preceding the fiscal 
year concerned.
    (c) The Secretary may establish other appropriate priorities under 
the Act.

(Authority: 29 U.S.C. 2212(b)(4) and 2213(c); Section 102(b)(4) and 
103(c) of the Act)

Subpart E--What Conditions Must Be Met After an Award?


Sec. 345.50  What are the reporting requirements for the recipients of 
development and extension grants?

    (a) States receiving development and extension grants shall submit 
annually to the Secretary a report that documents significant progress 
in developing and implementing a consumer-responsive comprehensive 
statewide program of technology-related assistance documenting the 
following:
    (1) The progress the State has made, as determined in the State's 
annual assessment (consistent with the guidelines established by the 
Secretary under Sec. 345.51) in achieving the State's goals, 
objectives, and outcomes as identified in the State's application, and 
areas of need that require attention in the next year, including 
unanticipated problems with the achievement of the goals, objectives, 
and outcomes described in the application, and the activities the State 
has undertaken to rectify these problems.
    (2) The systems change and advocacy activities carried out by the 
State including--
    (i) An analysis of the laws, regulations, policies, practices, 
procedures, and organizational structure that the State has changed, 
has attempted to change, or will attempt to change during the next 
year, to facilitate and increase timely access to, provision of, or 
funding for, assistive technology devices and assistive technology 
services; and
    (ii) A description of any written policies and procedures that the 
State has developed and implemented regarding access to, provision of, 
and funding for, assistive technology devices and assistive technology 
services, particularly policies and procedures regarding access to, 
provision of, and funding for, such devices and services under 
education (including special education), vocational rehabilitation, and 
medical assistance programs.
    (3) The degree of involvement of various State agencies, including 
the State insurance department, in the development, implementation, and 
evaluation of the program, including any interagency agreements that 
the State has developed and implemented regarding access to, provision 
of, and funding for, assistive technology devices and assistive 
technology services such as agreements that identify available 
resources for, assistive technology devices and assistive technology 
services and the responsibility of each agency for paying for such 
devices and services.
    (4) The activities undertaken to collect and disseminate 
information about the documents or activities analyzed or described in 
paragraphs (a) (1) through (3) of this section, including outreach 
activities to underrepresented populations and rural populations and 
efforts to disseminate information by means of electronic 
communication.
    (5) The involvement of individuals with disabilities who represent 
a variety of ages and types of disabilities in the planning, 
development, implementation, and assessment of the consumer-responsive 
comprehensive statewide program of technology-related assistance, 
including activities undertaken to improve such involvement, such as 
consumer training and outreach activities to underrepresented 
populations and rural populations.
    (6) The degree of consumer satisfaction with the program, including 
satisfaction by underrepresented populations and rural populations.
    (7) Efforts to train personnel as well as consumers.
    (8) Efforts to reduce the service delivery time for receiving 
assistive technology devices and assistive technology services.
    (9) Significant progress in the provision of protection and 
advocacy services, in each of the areas described in 
Sec. 345.55(c)(1)(ii).
    (b) The State shall make these reports readily available to the 
public at no extra cost.
    (c) The State shall submit on an annual basis--
    (1) A copy of the protection and advocacy contract or grant 
agreement entered into by the State;
    (2) Evidence of ongoing negotiations with an entity to provide 
protection and advocacy services, if the State has not yet entered into 
a grant or contract; or
    (3) A request that the Secretary enter into a grant agreement with 
an entity to provide protection and advocacy services, pursuant to 
Sec. 345.30(b)(12)(ii).

(Authority: 29 U.S.C. 2212(e)(16)(A) and 2214(b); Sections 
102(e)(16)(A) and 104(b) of the Act)


Sec. 345.51  When is a State making significant progress?

    A State is making significant progress when it carries out--
    (a) The systems change and advocacy activities listed in 
Sec. 345.30(b)(1)(ii)(A) through (F); or
    (b) Other systems change and advocacy activities, if the State 
demonstrates through the progress reports developed by the Secretary 
and required to be submitted by a State in Sec. 345.50 that it has 
accomplished the purposes of the program listed in Sec. 345.2(a).

(Authority: 29 U.S.C. 2212(e)(7) and 2214(a); Sections 102(e)(7) and 
104(a) of the Act)


Sec. 345.52  Who retains title to devices provided under this program?

    Title to devices purchased with grant funds under this part, either 
directly or through any contract or subgrant, must be held by a public 
agency or by an individual with a disability who is the beneficiary of 
the device. If the disabled individual does not have legal status to 
hold title, the title may be retained by a parent or legal guardian.

(Authority: 29 U.S.C. 2212(e)(12)(B); Section 102(e)(12)(B) of the 
Act)


Sec. 345.53  What are the requirements for grantee participation in the 
Secretary's progress assessments?

    Recipients of development grants shall participate in the 
Secretary's assessment of the extent to which States are making 
significant progress by--
    (a) Participating in the on-site monitoring visits that will be 
made to each grantee during the final year of the development grant;
    (b) Participating in an on-site monitoring visit, that is in 
addition to the visit in paragraph (a), if the State applies for a 
second extension grant and whose initial on-site visit occurred prior 
to the date of the enactment of the Technology-Related Assistance for 
Individuals with Disabilities Act Amendments of 1994, unless the 
Secretary determines that the visit is not necessary.
    (c) Providing written evaluations of the State's progress toward 
fulfilling its goals and the objectives of the project, and such other 
documents as the Secretary may reasonably require to complete the 
required assessment.

(Authority: 29 U.S.C. 2215(a); Section 105(a) of the Act)


Sec. 345.54  How may grant funds be used under this program?

    (a) States receiving funds under this part shall comply with the 
assurances provided under Secs. 345.30 and 345.31. 

[[Page 8171]]

    (b) A State receiving a grant may make contracts or subgrants to 
the eligible entities in Sec. 345.6, provided that--
    (1) A designated public agency maintains fiscal responsibility and 
accountability; and
    (2) All appropriate provisions related to data collection, 
recordkeeping, and cooperation with the Secretary's evaluation and 
program monitoring efforts are applied to all subcontractors and 
subgrantees as well as to the agency receiving the grant.

(Authority: 29 U.S.C. 2212(e), 2213(d), and 2215(a)(5); Sections 
102(e), 103(d), and 105(a)(5) of the Act; Section 437 of the General 
Education Provisions Act; 20 U.S.C. 1232f)


Sec. 345.55  What are the responsibilities of a State in carrying out 
protection and advocacy services?

    (a)(1) A State is eligible to receive funding to provide protection 
and advocacy services if--
    (i) The State, as of June 30, 1993, has provided for protection and 
advocacy services through an entity that is capable of performing the 
functions that would otherwise be performed under Sec. 345.30(b)(12) by 
the system described in that section; and
    (ii) The entity referred to in Sec. 345.30(b)(12)(i) is not a 
system described in that section.
    (b) A State that meets both of the descriptions in paragraph (a)(1) 
of this section also shall comply with the same requirements of this 
part as a system that receives funding under Sec. 345.30(b)(12).
    (c)(1) A system that receives funds under Sec. 345.30(b)(12)(i) to 
carry out the protection and advocacy services described in 
Sec. 345.30(b)(12)(i) in a State, or an entity described in paragraph 
(a)(1) of this section, shall prepare reports that contain the 
information required by the Secretary, including the following:
    (i) A description of the activities carried out by the system or 
entity with the funds;
    (ii) Documentation of significant progress, in providing protection 
and advocacy services, in each of the following areas:
    (A) Conducting activities that are consumer-responsive, including 
activities that will lead to increased access to funding for assistive 
technology devices and assistive technology services.
    (B) Executing legal, administrative, and other appropriate means of 
representation to implement systems change and advocacy activities.
    (C) Developing and implementing strategies designed to enhance the 
long-term abilities of individuals with disabilities and their family 
members, guardians, advocates, and authorized representatives to 
successfully advocate for assistive technology devices and assistive 
technology services to which the individuals with disabilities are 
entitled under law other than this Act.
    (D) Coordinating activities with protection and advocacy services 
funded through sources other than this Act, and coordinating activities 
with the systems change and advocacy activities carried out by the 
State lead agency.
    (2) The system or entity shall submit the reports to the lead 
agency in the State not less often than every 6 months.
    (3) The system or entity shall provide monthly updates to the lead 
agency concerning the activities and information described in paragraph 
(c) of this section.
    (d) Before making a grant or entering into a contract under 
Sec. 345.30(b)(12)(ii) to support the protection and advocacy services 
described in Sec. 345.30(b)(12)(ii) in a State, the Secretary shall 
solicit and consider the opinions of the lead agency in the State with 
respect to the terms of the grant or contract.
    (e)(1) In each fiscal year, the Secretary specifies for each State 
receiving a development or an extension grant the minimum amount that 
the State shall use to provide protection and advocacy services.
    (2)(i) Except as provided for in paragraphs (e) (3) and (4), the 
Secretary calculates this minimum amount based on the size of the 
grant, the needs of individuals with disabilities within the State, the 
population of the State, and the geographic size of the State.
    (ii) The Secretary establishes a minimum amount for each State that 
ranges from at least $40,000 up to $100,000.
    (3) If a State receives a second extension grant, the Secretary 
specifies a minimum amount for the fourth year (if any) of the grant 
period that equals 75 percent of the minimum amount specified for the 
State for the third year of the second extension grant of the State.
    (4) If a State receives a second extension grant, the Secretary 
specifies a minimum amount for the fifth year (if any) of the grant 
period that equals 50 percent of the minimum amount specified for the 
State for the third year of the second extension grant of the State.
    (5) After the fifth year (if any) of the grant period, no Federal 
funds may be made available under this title by the State to a system 
described in Sec. 345.30(b)(12) or an entity described in paragraph (a) 
of this section.

(Authority: 29 U.S.C. 2212(f); Section 102(f) of the Act)

Subpart F--What Compliance Procedures May the Secretary Use?


Sec. 345.60  Who is subject to a corrective action plan?

    (a) Any State that fails to comply with the requirements of this 
part is subject to a corrective action plan.
    (b) A State may appeal a finding that it is subject to corrective 
action within 30 days of being notified in writing by the Secretary of 
the finding.

(Authority: 29 U.S.C. 2215(b)(1); Section 105(b)(1) of the Act)


Sec. 345.61  What penalties may the Secretary impose on a grantee that 
is subject to corrective action?

    A State that fails to comply with the requirements of this part may 
be subject to corrective actions such as--
    (a) Partial or complete termination of funds;
    (b) Ineligibility to participate in the grant program in the 
following year;
    (c) Reduction in funding for the following year; or
    (d) Required redesignation of the lead agency.

(Authority: 29 U.S.C. 2215(b)(2); Section 105(b)(2) of the Act)


Sec. 345.62  How does a State redesignate the lead agency when it is 
subject to corrective action?

    (a) Once a State becomes subject to a corrective action plan under 
Sec. 345.60, the Governor of the State, subject to approval by the 
Secretary, shall appoint, within 30 days after the submission of the 
plan to the Secretary, a monitoring panel consisting of the following 
representatives:
    (1) The head of the lead agency designated by the Governor;
    (2) Two representatives from different public or private nonprofit 
organizations that represent the interests of individuals with 
disabilities;
    (3) Two consumers who are users of assistive technology devices and 
assistive technology services and who are not--
    (i) Members of the advisory council, if any, of the consumer-
responsive comprehensive statewide program of technology-related 
assistance; or
    (ii) Employees of the State lead agency; and
    (4) Two service providers with knowledge and expertise in assistive 
technology devices and assistive technology services.
    (b) The monitoring panel must be ethnically diverse. The panel 
shall select a chairperson from among the members of the panel. 

[[Page 8172]]

    (c) The panel shall receive periodic reports from the State 
regarding progress in implementing the corrective action plan and shall 
have the authority to request additional information necessary to 
determine compliance.
    (d) The meetings of the panel to determine compliance shall be open 
to the public (subject to confidentiality concerns) and held at 
locations that are accessible to individuals with disabilities.
    (e) The panel shall carry out the duties of the panel for the 
entire period of the corrective action plan, as determined by the 
Secretary.
    (f) A failure by a Governor of a State to comply with the 
requirements of paragraphs (a) through (e) of this section results in 
the termination of funding for the State under this part.
    (g) Based on its findings, a monitoring panel may determine that a 
lead agency designated by a Governor has not accomplished the purposes 
described in Sec. 345.2(a) and that there is good cause for 
redesignation of the agency and the temporary loss of funds by the 
State under this part.
    (h) For the purposes of this section, ``good cause'' includes the 
following:
    (1) Lack of progress with employment of qualified staff;
    (2) Lack of consumer-responsive activities;
    (3) Lack of resource allocation to systems change and advocacy 
activities;
    (4) Lack of progress with meeting the assurances in Sec. 345.30(b); 
or
    (5) Inadequate fiscal management.
    (i) If a monitoring panel determines that the lead agency should be 
redesignated, the panel shall recommend to the Secretary that further 
remedial action be taken or that the Secretary order the Governor to 
redesignate the lead agency within 90 days or lose funds under this 
part. The Secretary, based on the findings and recommendations of the 
monitoring panel, and after providing to the public notice and 
opportunity for comment, shall make a final determination regarding 
whether to order the Governor to redesignate the lead agency. The 
Governor shall make any redesignation in accordance with the 
requirements that apply to designations under Sec. 345.6.

(Authority: 29 U.S.C. 2215(c); Section 105(c) of the Act)


Sec. 345.63  How does a State change the entity responsible for 
providing protection and advocacy services?

    (a) The Governor of a State, based on input from individuals with 
disabilities and their family members, guardians, advocates, or 
authorized representatives, may determine that the entity providing 
protection and advocacy services has not met the protection and 
advocacy service needs of the individuals with disabilities and their 
family members, guardians, advocates, or authorized representatives, 
for securing funding for and access to assistive technology devices and 
assistive technology services, and that there is good cause to provide 
the protection and advocacy services for the State through a contract 
with a second entity.
    (b) On making the determination in paragraph (a) of this section, 
the Governor may not enter into a contract with a second entity to 
provide the protection and advocacy services unless good cause exists 
and unless--
    (1) The Governor has given the first entity 30 days notice of the 
intention to enter into the contract, including specification of good 
cause, and an opportunity to respond to the assertion that good cause 
has been shown;
    (2) Individuals with disabilities and their family members, 
guardians, advocates, or authorized representatives, have timely notice 
of the determination and opportunity for public comment; and
    (3) The first entity has the opportunity to appeal the 
determination to the Secretary within 30 days of the determination on 
the basis that there is not good cause to enter into the contract.
    (c)(1) When the Governor of a State determines that there is good 
cause to enter into a contract with a second entity to provide the 
protection and advocacy services, the Governor shall hold an open 
competition within the State and issue a request for proposals by 
entities desiring to provide the services.
    (2) The Governor shall not issue a request for proposals by 
entities desiring to provide protection and advocacy services until the 
first entity has been given notice and an opportunity to respond. If 
the first entity appeals the determination to the Secretary, the 
Governor shall issue such request only if the Secretary decides not to 
overturn the determination of the Governor. The Governor shall issue 
such request within 30 days after the end of the period during which 
the first entity has the opportunity to respond, or after the decision 
of the Secretary, as appropriate.
    (3) The competition shall be open to entities with the same 
expertise and ability to provide legal services as a system in 
Sec. 345.30(b)(12). The competition shall ensure public involvement, 
including a public hearing and adequate opportunity for public comment.

(Authority: 29 U.S.C. 2215(d); Section 105(d) of the Act)

[FR Doc. 96-4861 Filed 2-29-96; 8:45 am]
BILLING CODE 4000-01-P