[Federal Register Volume 64, Number 169 (Wednesday, September 1, 1999)]
[Rules and Regulations]
[Pages 48052-48059]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-22564]



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_______________________________________________________________________

Part IV





DEPARTMENT OF EDUCATION





_______________________________________________________________________



34 CFR Part 379



Projects With Industry; Final Rule

  Federal Register / Vol. 64, No. 169 / Wednesday, September 1, 1999 / 
Rules and Regulations  

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DEPARTMENT OF EDUCATION

34 CFR Part 379


Projects With Industry

AGENCY: Office of Special Education and Rehabilitative Services, 
Department of Education

ACTION: Final Regulations.

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SUMMARY: The Secretary amends the regulations governing the Projects 
With Industry (PWI) program administered by the Rehabilitation Services 
Administration (RSA). The Rehabilitation Act Amendments of 1998 (1998 
Amendments), Title IV of the Workforce Investment Act of 1998 (WIA), 
made certain amendments to the Rehabilitation Act of 1973 that affect 
the PWI program. These regulations implement those amendments to the 
PWI program.

DATES: These regulations are effective October 1, 1999.

FOR FURTHER INFORMATION CONTACT: Thomas E. Finch, U.S. Department of 
Education, 400 Maryland Avenue, S.W., Room 3315, Mary E. Switzer 
Building, Washington, D.C. 20202-2575. Telephone: (202) 205-8292. 
Individuals who use a telecommunications device for the deaf (TDD) may 
call the Federal Information Relay Service (FIRS) at 1-800-877-8339.
    Individuals with disabilities may obtain this document in an 
alternate format (e.g. Braille, large print, audiotape, or computer 
diskette) on request to the contact person listed in the preceding 
paragraph.

SUPPLEMENTARY INFORMATION: The 1998 Amendments, Pub. L. 105-220, 
enacted August 7, 1998, makes a number of changes to programs under the 
Rehabilitation Act of 1973, as amended (Act), intended to increase the 
employment and employment retention of individuals with disabilities, 
including streamlined program requirements, enhanced consumer choice, 
enhanced program accountability, and improved coordination between 
employment and training programs through statewide and local workforce 
investment systems.
    Statutory amendments to the PWI program change the composition and 
functions of the Business Advisory Council (BAC), the specific services 
required to be provided by PWI projects, the eligibility determination 
process, and data and information collection requirements.
    Specifically, the 1998 Amendments require the project's BAC to 
include a representative of the appropriate designated State unit. In 
addition, the functions of the BAC pertaining to the identification of 
job and career availability have been modified to require that the 
analysis be consistent with the current and projected local employment 
opportunities identified by the local workforce investment board for 
the community under section 118(b)(1)(B) of WIA. The 1998 Amendments 
also now gives the BAC the option to prescribe either training programs 
or job placement programs in fields related to the job and career 
availability identified previously. These requirements are implemented 
in Secs. 379.10(a), 379.21(a)(1), and 379.30(b)(1) of the regulations.
    With respect to project services, PWI projects now are required to 
provide job development, in addition to providing job placement and 
career advancement services. However, the 1998 Amendments now require 
that training in realistic work settings must be provided only to the 
extent appropriate. The 1998 Amendments also change the eligibility 
determination process to allow the recipient of a PWI grant to 
determine an individual's eligibility for services, to the extent that 
the determination is made consistent with the requirements of section 
102(a) of the Act. These requirements are implemented in 
Secs. 379.3(b), 379.10(b) and (c), 379.21(a)(1) through (3), and 
379.30(b)(1) and (6) of these regulations.
    The 1998 Amendments also now require that data and information 
collected for use in conducting the annual review and evaluation of the 
operation of the project be the same types as described in 
subparagraphs (A) through (C) of section 101(a)(10) of the Act 
governing the State Vocational Rehabilitation (VR) Services program, as 
determined appropriate by the Commissioner. These requirements are 
implemented in Secs. 379.21(a)(6), 379.21(b)(5), and 379.30(b)(6) of 
these regulations. Specific data and information collection 
requirements were published for comment in a separate notice published 
in the Federal Register on May 25, 1999 (64 FR 28164).
    Finally, we also wish to note that new Sec. 379.4 no longer makes 
34 CFR part 369 applicable to the PWI program. The Secretary will be 
deleting part 369 from the Department's regulations in the near future. 
Therefore, the Secretary has incorporated into these regulations the 
following requirements from part 369 that apply to the PWI program:

Sec. 369.3(a)--The applicability of the Education Department General 
Administrative Regulations (EDGAR) in 34 CFR parts 74, 75, 77, 79, 
80, 81, 82, 85, and 86 to the PWI program. This requirement is now 
found in Sec. 379.4(a).
Sec. 369.4(a)--The following definitions from part 77:
    Applicant
    Application
    Award
    Department
    EDGAR
    Nonprofit
    Secretary
    These definitions are now found in Sec. 379.5(a).
Sec. 369.20--Application procedures for this program. This 
requirement is now found in Sec. 379.22.
Sec. 369.42(b)--Notification of the availability and purposes of the 
State's Client Assistance Program. This requirement is now found in 
Sec. 379.42.
369.46--Special requirements pertaining to the protection, use, and 
release of personal information. These are now found in Sec. 379.43.

    All other requirements in part 369 that were applicable to the PWI 
program either have been superseded by statutory changes made by the 
1998 Amendments, are duplicative of requirements already in part 379, 
or are not applicable to the PWI program.

Waiver of Notice of Proposed Rulemaking

    Section 553(b) of the Administrative Procedure Act (APA) requires 
the Secretary to offer interested parties the opportunity to comment on 
proposed regulations. However, these amendments merely incorporate 
statutory changes into the regulations and do not implement substantive 
policy. Therefore, pursuant to the exception in section 553(b)(B) of 
the APA, the Secretary has determined that public comment on the 
regulations is unnecessary and contrary to the public interest.

Goals 2000: Educate America Act

    The Goals 2000: Educate America Act (Goals 2000) focuses the 
Nation's education reform efforts on the eight National Education Goals 
and provides a framework for meeting them. Goals 2000 promotes new 
partnerships to strengthen schools and expands the Department's 
capacities for helping communities to exchange ideas and obtain 
information needed to achieve the goals.
    These regulations address the National Education Goal that every 
adult American will possess the knowledge and skills necessary to

[[Page 48053]]

compete in a global economy and exercise the rights and 
responsibilities of citizenship. The regulations further the objectives 
of this Goal by implementing a program that affords individuals with 
disabilities opportunities for job training, job placement, placement 
in competitive employment, and career advancement.

Regulatory Flexibility Act Certification

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

Paperwork Reduction Act of 1995

    Under the Paperwork Reduction Act of 1995, no persons are required 
to respond to a collection of information unless it displays a valid 
OMB control number. The valid OMB control number assigned to the 
collection of information in these final regulations is displayed at 
the end of the affected sections of the regulations.

Intergovernmental Review

    This program is subject to the requirements of Executive Order 
12372 and the regulations in 34 CFR part 79. The objective of the 
Executive order is to foster an intergovernmental partnership and a 
strengthened federalism by relying on processes developed by State and 
local governments for coordination and review of proposed Federal 
financial assistance. The order and regulations do not apply to Indian 
tribes or tribal organizations.
    In accordance with the order, this document provides early 
notification of the Department's specific plans and actions for this 
program.

Assessment of Educational Impact

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

Electronic Access to This Document

    You may view this document, as well as all other Department of 
Education documents published in the Federal Register, in text or Adobe 
Portable Document Format (PDF) on the Internet at either of the 
following sites:
http://ocfo.ed.gov/fedreg.htm
http://www.ed.gov/news.html

    To use the PDF you must have the Adobe Acrobat Reader Program with 
Search, which is available free at either of the previous sites. If you 
have questions about using the PDF, call the U.S. Government Printing 
Office (GPO) toll free at 1-888-293-6498; or in the Washington, D.C., 
area at (202) 512-1530.

    Note: The official version of this document is the document 
published in the Federal Register. Free Internet access to the 
official edition of the Federal Register and the Code of Federal 
Regulations is available on GPO Access at: http://
www.access.gpo.gov/nara/index.html

List of Subjects in 34 CFR part 379

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

(Catalog of Federal Domestic Assistance Number 84.234 Projects With 
Industry.)

    Dated: August 26, 1999.
Curtis L. Richards,
Acting Assistant Secretary for Special Education and Rehabilitative 
Services.

    The Secretary amends Title 34 of the Code of Federal Regulations by 
revising part 379 to read as follows:

PART 379--PROJECTS WITH INDUSTRY

Subpart A--General

Sec.
379.1  What is the Projects With Industry (PWI) program?
379.2  Who is eligible for a grant award under this program?
379.3  Who is eligible for services under this program?
379.4  What regulations apply?
379.5  What definitions apply?

Subpart B--What Kinds of Activities Does the Department of Education 
Assist Under This Program?

379.10  What types of project activities are required of each 
grantee under this program?
379.11  What additional types of project activities may be 
authorized under this program?

Subpart C--How Does One Apply for an Award?

379.20  How does an eligible entity apply for an award?
379.21  What is the content of an application for an award?
379.22  What are the application procedures for this program?

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

379.30  What selection criteria does the Secretary use under this 
program?
379.31  What other factors does the Secretary consider in reviewing 
an application?

Subpart E--What Conditions Must Be Met by a Grantee?

379.40  What are the matching requirements?
379.41  What are allowable costs?
379.42  What are the special requirements pertaining to the Client 
Assistance Program?
379.43  What are the special requirements pertaining to the 
protection, use, and release of personal information?
379.44  What are the requirements for a continuation award?
379.45  What are the additional reporting requirements?

Subpart F--What Compliance Indicator Requirements Must a Grantee Meet 
To Receive Continuation Funding?

379.50  What are the requirements for continuation funding?
379.51  What are the program compliance indicators?
379.52  How is grantee performance measured using the compliance 
indicators?
379.53  What are the weights, minimum performance levels, and 
performance ranges for each compliance indicator?
379.54  What are the reporting requirements for the compliance 
indicators?

Appendix A to Part 379--Evaluation Standards

Appendix B to Part 379--Presumption of Eligibility

Appendix C to Part 379--Calculating Required Matching Amount

    Authority: 29 U.S.C. 711(c) and 795, unless otherwise noted.

Subpart A--General


Sec. 379.1  What is the Projects With Industry (PWI) program?

    The purpose of this program is to
    (a) Create and expand job and career opportunities for individuals 
with disabilities in the competitive labor market by engaging the 
talent and leadership of private industry as partners in the 
rehabilitation process;
    (b) Identify competitive job and career opportunities and the 
skills needed to perform these jobs;
    (c) Create practical settings for job readiness and job training 
programs; and
    (d) Provide job placements and career advancement.

(Authority: 29 U.S.C. 795(a)(1))


Sec. 379.2  Who is eligible for a grant award under this program?

    (a) The Secretary may, in consultation with the Secretary of Labor 
and with the appropriate designated State unit or units, make a grant 
under this program to any--
    (1) Community rehabilitation program provider;
    (2) Designated State unit (DSU);
    (3) Employer;
    (4) Indian tribe or tribal organization;
    (5) Labor union;
    (6) Nonprofit agency or organization;
    (7) Trade association; or

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    (8) Other agency or organization with the capacity to create and 
expand job and career opportunities for individuals with disabilities.
    (b) The Secretary may make new awards only to those eligible 
entities identified in paragraph (a) of this section that propose to 
serve individuals with disabilities in States, portions of States, 
Indian tribes, or tribal organizations that are currently unserved or 
underserved by the PWI program.

(Authority: 29 U.S.C. 795(a)(2) and 795(e)(2))


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

    (a) An individual is eligible for services under this program if--
    (1) The individual is an individual with a disability or an 
individual with a significant disability;
    (2) The individual requires vocational services to prepare for, 
secure, retain, or regain employment; and
    (3) The determination of eligibility is consistent with section 
102(a) of the Rehabilitation Act of 1973, as amended (Act), 29 U.S.C. 
701-796l.
    (b) The recipient of the grant under which the services are 
provided may determine an individual's eligibility for services under 
this program, to the extent that the determination is appropriate and 
consistent with the requirements of section 102(a) of the Act. See 
Appendix B to this part for further information.
    (c) Except as provided in paragraph (d) of this section, an 
individual who has a disability or is blind, as determined pursuant to 
title II or title XVI of the Social Security Act (42 U.S.C. 401-433 and 
1381-1385)--
    (1) Is considered to be an individual with a significant 
disability; and
    (2) Is presumed to be eligible for vocational rehabilitation (VR) 
services under this program (provided that the individual intends to 
achieve an employment outcome consistent with the unique strengths, 
resources, priorities, concerns, abilities, capabilities, interests, 
and informed choice of the individual).
    (d) The DSU or recipient of the grant involved may deny an 
individual services if the DSU or recipient of the grant involved can 
demonstrate, by clear and convincing evidence, that the individual is 
incapable of benefiting in terms of an employment outcome from VR 
services due to the significance of the disability of the individual.

(Authority: 29 U.S.C. 722(a)(3) and 795(a)(3))


Sec. 379.4  What regulations apply?

    The following regulations apply to the Projects With Industry 
program:
    (a) The Education Department General Administrative Regulations 
(EDGAR) as follows:
    (1) 34 CFR part 74 (Administration of Grants and Agreements with 
Institutions of Higher Education, Hospitals, and Other Non-profit 
Organizations).
    (2) 34 CFR part 75 (Direct Grant Programs).
    (3) 34 CFR part 77 (Definitions that Apply to Department 
Regulations).
    (4) 34 CFR part 79 (Intergovernmental Review of Department of 
Education Programs and Activities).
    (5) 34 CFR part 80 (Uniform Administrative Requirements for Grants 
and Cooperative Agreements to State and Local Governments).
    (6) 34 CFR part 81 (General Education Provisions Act--Enforcement).
    (7) 34 CFR part 82 (New Restrictions on Lobbying).
    (8) 34 CFR part 85 (Governmentwide Debarment and Suspension 
(Nonprocurement) and Governmentwide Requirements for Drug-Free 
Workplace (Grants)).
    (9) 34 CFR part 86 (Drug and Alcohol Abuse Prevention).
    (b) The regulations in this part 379.

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


Sec. 379.5  What definitions apply?

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

Act
Community rehabilitation program
Designated State unit
Individual who is blind
Individual with a disability
Individual with a significant disability
Physical or mental impairment
Substantial impediment to employment

    (b) The following definitions also apply to this part:
    (1) Career advancement services mean services that develop specific 
job skills beyond those required by the position currently held by an 
individual with a disability to assist the individual to compete for a 
promotion or achieve an advanced position.
    (2) Competitive employment, as the placement outcome under this 
program, means work--
    (i) In the competitive labor market that is performed on a full-
time or part-time basis in an integrated setting; and
    (ii) For which an individual is compensated at or above the minimum 
wage, but not less than the customary or usual wage and terms and 
benefits provided by the employer for the same or similar work 
performed by individuals who are not disabled.
    (3) Integrated setting, as part of the definition of ``competitive 
employment,'' means a setting typically found in the community in which 
individuals with disabilities interact with non-disabled individuals, 
other than non-disabled individuals who are providing services to them, 
to the same extent that non-disabled individuals in comparable 
positions interact with other persons.
    (4) Job readiness training, as used in Sec. 379.41(a), means--
    (i) Training in job-seeking skills;
    (ii) Training in the preparation of resumes or job applications;
    (iii) Training in interviewing skills;
    (iv) Participating in a job club; or
    (v) Other related activities that may assist an individual to 
secure competitive employment.
    (5) Job training, as used in this part, means one or more of the 
following training activities provided prior to placement, as that term 
is defined in Sec. 379.5(b)(7):
    (i) Occupational skills training.
    (ii) On-the-job training.
    (iii) Workplace training combined with related instruction.
    (iv) Job skill upgrading and retraining.
    (v) Training to enhance basic work skills and workplace 
competencies.
    (vi) On-site job coaching.
    (6) Person served means an individual for whom services by a PWI 
project have been initiated with the objective that those services will 
result in a placement in competitive employment.
    (7) Placement means the attainment of competitive employment by a 
person who has received services from a PWI project and has maintained 
employment for a period of at least 90 days.

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

Subpart B--What Kinds of Activities Does the Department of 
Education Assist Under This Program?


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

    Each grantee under the PWI program must--
    (a) Provide for the establishment of a Business Advisory Council 
(BAC), comprised of representatives of private industry, business 
concerns, organized labor, individuals with disabilities and their 
representatives, and a representative of the appropriate DSU, that 
will--
    (1) Identify job and career availability within the community, 
consistent with the current and projected local employment 
opportunities identified by the local workforce investment board for 
the community under section 118(b)(1)(B) of the Workforce Investment 
Act of 1998;
    (2) Identify the skills necessary to perform those jobs and 
careers; and

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    (3) Prescribe for individuals with disabilities in fields related 
to the job and career availability identified in Sec. 379.10(a)(1) 
either--
    (i) training programs designed to develop appropriate job and 
career skills; or
    (ii) job placement programs designed to identify and develop job 
placement and career advancement opportunities;
    (b) Provide job development, job placement, and career advancement 
services;
    (c) To the extent appropriate, arrange for the provision of, or 
provide for--
    (1) Training in realistic work settings to prepare individuals with 
disabilities for employment and career advancement in the competitive 
labor market; and
    (2) To the extent practicable, the modification of any facilities 
or equipment of the employer involved that are to be used by 
individuals with disabilities under this program. However, a project 
may not be required to provide for this modification if the 
modification is required as a reasonable accommodation under the 
Americans with Disabilities Act of 1990 (ADA), 42 U.S.C. 12101-12213; 
and
    (d) Provide individuals with disabilities with supportive services 
that are necessary to permit them to maintain the employment and career 
advancement for which they have received training under this program.

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


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

    The Secretary may include, as part of agreements with grant 
recipients under this program, authority for the grant recipients to 
provide technical assistance to--
    (a) Assist employers in hiring individuals with disabilities; or
    (b) Improve or develop relationships between grant recipients or 
prospective grant recipients and employers or organized labor; or
    (c) Assist employers in understanding and meeting the requirements 
of the ADA, as that Act relates to employment of individuals with 
disabilities.

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

Subpart C--How Does One Apply for an Award?


Sec. 379.20  How does an eligible entity apply for an award?

    To apply for a grant, an eligible entity must submit an application 
to the Secretary in response to an application notice published in the 
Federal Register.

(Approved by the Office of Management and Budget under control 
number 1820-0566)

(Authority: 29 U.S.C. 795(e)(1)(B))


Sec. 379.21  What is the content of an application for an award?

    (a) The grant application must include a description of--
    (1) The responsibilities and membership of the BAC, consistent with 
section 611(a)(2)(A) of the Act, and how it will interact with the 
project in carrying out grant activities, including how the BAC will--
    (i) Identify job and career availability within the community, 
consistent with the current and projected local employment 
opportunities identified by the local workforce investment board for 
the community under section 118(b)(1)(B) of the Workforce Investment 
Act of 1998;
    (ii) Identify the skills necessary to perform the jobs and careers 
identified; and
    (iii) For individuals with disabilities in fields related to the 
job and career availability identified under paragraph (i) of this 
section, prescribe either--
    (A) Training programs designed to develop appropriate job and 
career skills; or
    (B) Job placement programs designed to identify and develop job 
placement and career advancement opportunities;
    (2) How the project will provide job development, job placement, 
and career advancement services to project participants;
    (3) To the extent appropriate, how the project will provide for--
    (i) Training in realistic work settings to prepare individuals with 
disabilities for employment and career advancement in the competitive 
market; and
    (ii) To the extent practicable, the modification of any facilities 
or equipment of the employer involved that are used primarily by 
individuals with disabilities, except that a project will not be 
required to provide for the modification if the modification is 
required as a reasonable accommodation under the ADA;
    (4) How the project will provide individuals with disabilities with 
the support services that may be required to maintain the employment 
and career advancement for which the individuals have received training 
under this part;
    (5) How the project will involve private industry in the design of 
the proposed project and the manner in which the project will 
collaborate with private industry in planning, implementing, and 
evaluating job development, job placement, career advancement 
activities and, to the extent included as part of the activities to be 
carried out by the project, job training activities;
    (6) A plan to conduct annually a review and evaluation of the 
operation of the proposed project in accordance with the program 
compliance indicators and standards established in Subpart F of this 
part and, in conducting the review and evaluation, to collect data and 
information of the type described in subparagraphs (A) through (C) of 
section 101(a)(10) of the Act, as determined to be appropriate by the 
Secretary;
    (7) The geographic area to be served by the project, including an 
explanation of how the area is currently unserved or underserved by the 
PWI program; and
    (8) How the project will address the needs of individuals with 
disabilities from minority backgrounds, as required by section 21(c) of 
the Act.
    (b) The grant application also must include assurances from the 
applicant that--
    (1) The project will carry out all activities required in 
Sec. 379.10;
    (2) Individuals with disabilities who are placed by the project 
will receive compensation at or above the minimum wage, but not less 
than the customary or usual wage paid by the employer for the same or 
similar work performed by individuals who are not disabled;
    (3) Individuals with disabilities who are placed by the project 
will--
    (i) Be given terms and benefits of employment equal to terms and 
benefits that are given to similarly situated nondisabled co-workers; 
and
    (ii) Not be segregated from their co-workers;
    (4) The project will maintain any records required by the Secretary 
and make those records available for monitoring and audit purposes;
    (5) The project will provide to the Secretary an annual evaluation 
report of project operations as required in Sec. 379.21(a)(6) and will 
submit reports in the form and detail and at the time required by the 
Secretary; and
    (6) The applicant will comply with any requirements necessary to 
ensure the correctness and verification of those reports.

(Approved by the Office of Management and Budget under control 
number 1820-0566)

(Authority: 29 U.S.C. 718(c), 795(a), 795(b), and 795(e)(1)(B))


Sec. 379.22  What are the application procedures for this program?

    The Secretary gives the appropriate DSU an opportunity to review 
and comment on applications submitted from within the State that it 
serves. The procedures to be followed by the

[[Page 48056]]

applicant and the State are described in Secs. 75.155 through 75.159 of 
EDGAR.

(Authority: 20 U.S.C. 711(c))

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


Sec. 379.30  What selection criteria does the Secretary use under this 
program?

    (a) The Secretary uses the procedures in 34 CFR part 75 to select 
applications and award new grants.
    (b) The Secretary uses the following selection criteria to evaluate 
an application:
    (1) Extent of need for project (20 points). The Secretary reviews 
each application to determine the extent to which the project meets 
demonstrated needs. The Secretary looks for evidence that--
    (i) The applicant has demonstrated a demand in the competitive 
labor market of the geographic area to be served for the types of jobs 
for which project participants will be placed and, if appropriate, 
trained.
    (A) The applicant may demonstrate the demand for those jobs by 
describing an existing current labor market analysis, other needs 
assessment, or one that it has performed in collaboration with private 
industry.
    (B) The labor market analysis or needs assessment must be 
consistent with the current and projected local employment 
opportunities identified by the local workforce investment board for 
the community under section 118(b)(1)(B) of the Workforce Investment 
Act of 1998; and
    (ii) The job placement and, if appropriate, job training to be 
provided meets the identified needs for personnel in specific 
occupations or occupational categories in the geographic area to be 
served.
    (2) Partnership with industry (25 points). The Secretary looks for 
information that demonstrates--
    (i) The extent of the project's proposed collaboration with private 
industry in the planning, implementation, and evaluation of job 
development, job placement, career advancement activities, and, to the 
extent included as part of the activities to be carried out by the 
project, job training activities; and
    (ii) The extent of proposed participation of the BAC in--
    (A) The identification of job and career opportunities within the 
community, consistent with the current and projected local employment 
opportunities identified by the local workforce investment board for 
the community under section 118(b)(1)(B) of the Workforce Investment 
Act of 1998;
    (B) The identification of the skills necessary to perform the jobs 
and careers identified; and
    (C) For individuals with disabilities in fields related to the job 
and career availability identified under paragraph (b)(1)(i) of this 
section, prescribing either--
    (1) Training programs designed to develop appropriate job and 
career skills; or
    (2) Job placement programs designed to identify and develop job 
placement and career advancement opportunities.
    (3) Project design and plan of operation for achieving competitive 
employment (25 points). The Secretary reviews each application to 
determine--
    (i) The extent to which the project goals and objectives for 
achieving competitive employment for individuals with disabilities to 
be served by the project are clearly stated and meet the needs 
identified by the applicant and the purposes of the program;
    (ii) The extent to which the project provides for all services and 
activities required under Sec. 379.10;
    (iii) The feasibility of proposed strategies and methods for 
achieving project goals and objectives for competitive employment for 
project participants;
    (iv) The extent to which project activities will be coordinated 
with the DSU and with other appropriate community resources to ensure 
an adequate number of referrals and a maximum use of comparable 
benefits and services;
    (v) The extent to which the applicant's management plan will ensure 
proper and efficient administration of the project; and
    (vi) Whether the applicant has proposed a realistic timeline for 
the implementation of project activities to ensure timely 
accomplishment of proposed goals and objectives to achieve competitive 
employment for individuals with disabilities to be served by the 
project.
    (4) Adequacy of resources and quality of key personnel (10 points). 
The Secretary reviews each application to determine--
    (i) The adequacy of the resources (including facilities, equipment, 
and supplies) that the applicant plans to devote to the project;
    (ii) The quality of key personnel who will be involved in the 
project, including--
    (A) The qualifications of the project director;
    (B) The qualifications of each of the other key personnel to be 
used in the project; and
    (C) The experience and training of key personnel in fields related 
to the objectives and activities of the project; and
    (D) The way the applicant plans to use its resources and personnel 
to achieve the project's goals and objectives, including the time that 
key personnel will commit to the project.
    (5) Budget and cost effectiveness (10 points). The Secretary 
reviews each application to determine the extent to which--
    (i) The budget is adequate to support the project; and
    (ii) Costs are reasonable in relation to the objectives of the 
project.
    (6) Project evaluation (10 points). The Secretary reviews each 
application to determine the quality of the proposed evaluation plan 
with respect to--
    (i) Evaluating project operations and outcomes;
    (ii) Involving the BAC in evaluating the project's job development, 
job placement, career advancement activities, and, to the extent 
included as part of the activities to be carried out by the project, 
job training activities;
    (iii) Meeting the annual evaluation reporting requirements in 
Sec. 379.21(a)(6);
    (iv) Determining compliance with the indicators; and
    (v) Addressing any deficiencies identified through project 
evaluation.

(Approved by the Office of Management and Budget under control 
number 1820-0566)

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


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

    In addition to the selection criteria in Sec. 379.30, the 
Secretary, in making awards under this program, considers--
    (a) The equitable distribution of projects among the States; and
    (b) The past performance of the applicant in carrying out a similar 
PWI project under previously awarded grants, as indicated by factors 
such as compliance with grant conditions, soundness of programmatic and 
financial management practices, and meeting the requirements of Subpart 
F of this part.

(Authority: 29 U.S.C. 795(e)(2) and 795(f)(4))

Subpart E--What Conditions Must Be Met by a Grantee?


Sec. 379.40  What are the matching requirements?

    The Federal share may not be more than 80 percent of the total cost 
of a project under this program. For assistance in calculating the 
required matching amount, see Appendix C to this part.


[[Page 48057]]


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


Sec. 379.41  What are allowable costs?

    In addition to those costs that are allowable in accordance with 34 
CFR 74.27 and 34 CFR 80.22, the following items are allowable costs 
under this program:
    (a) The costs of job readiness training, as defined in 
Sec. 379.5(b)(5); job training, as defined in Sec. 379.5(b)(6); job 
placement services; job development and modification; and related 
support services.
    (b) Instruction and supervision of trainees.
    (c) Training materials and supplies, including consumable 
materials.
    (d) Instructional aids.
    (e) The purchase or modification of rehabilitation technology to 
meet the needs of individuals with disabilities.
    (f) Alteration and renovation appropriate and necessary to ensure 
access to and use of buildings by individuals with disabilities served 
by the project.
    (g) To the extent practicable, the modification of any facilities 
or equipment of the employer involved that are to be used by 
individuals with disabilities under this program. However, a project 
may not be required to provide for that modification if the 
modification is required as a reasonable accommodation under the ADA.

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


Sec. 379.42  What are the special requirements pertaining to the Client 
Assistance Program?

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

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


Sec. 379.43  What are the special requirements pertaining to the 
protection, use, and release of personal information?

    (a) All personal information about individuals served by any 
project under this part, including lists of names, addresses, 
photographs, and records of evaluation, must be held confidential.
    (b) The use of information and records concerning individuals must 
be limited only to purposes directly connected with the project, 
including project evaluation activities.
    (c) This information may not be disclosed, directly or indirectly, 
other than in the administration of the project, unless the consent of 
the agency providing the information and the individual to whom the 
information applies, or his or her representative, have been obtained 
in writing.
    (d) The Secretary or other Federal or State officials responsible 
for enforcing legal requirements have access to this information 
without the written consent of the individual.
    (e) The final product of the project may not reveal any personally 
identifying information without the written consent of the individual 
or his or her representative.

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


Sec. 379.44  What are the requirements for a continuation award?

    (a) A grantee that wants to receive a continuation award must--
    (1) Comply with the provisions of 34 CFR 75.253(a), including 
making substantial progress toward meeting the objectives in its 
approved application and submitting all performance and financial 
reports required by 34 CFR 75.118; and
    (2) Submit data in accordance with Sec. 379.54 showing that it has 
met the program compliance indicators established in Subpart F of this 
part.
    (b) In addition to the requirements in paragraph (a) of this 
section, the following other conditions in 34 CFR 75.253(a) must be met 
before the Secretary makes a continuation award:
    (1) Congress must appropriate sufficient funds under the program.
    (2) Continuation of the project must be in the best interest of the 
Federal Government.

(Approved by the Office of Management and Budget under control 
number 1820-0566)

(Authority: 29 U.S.C. 711(c) and 795(f)(4))


Sec. 379.45  What are the additional reporting requirements?

    Each grantee must submit the data from its annual evaluation of 
project operations required under Sec. 379.21(a)(5) no later than 60 
days after the end of each project year, unless the Secretary 
authorizes a later submission date.

(Approved by the Office of Management and Budget under control 
number 1820-0566)

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

Subpart F--What Compliance Indicator Requirements Must a Grantee 
Meet to Receive Continuation Funding?


Sec. 379.50  What are the requirements for continuation funding?

    To receive a continuation award for the third or any subsequent 
year of a PWI grant, a grantee must adhere to the provisions of its 
approved application and must receive a minimum composite score of at 
least 70 points on the program compliance indicators contained in 
Sec. 379.53.

(Authority: 29 U.S.C. 795(f)(4))


Sec. 379.51  What are the program compliance indicators?

    The program compliance indicators implement program evaluation 
standards, which are contained in an appendix to this part, by 
establishing minimum performance levels and performance ranges in 
essential project areas to measure the effectiveness of individual 
grantees.

(Authority: 29 U.S.C. 795(d)(1) and 795(f)(1))


Sec. 379.52  How is grantee performance measured using the compliance 
indicators?

    (a) Each compliance indicator establishes a minimum performance 
level.
    (b) Each compliance indicator also establishes three performance 
ranges with points assigned to each range. The higher the performance 
range, the greater the number of points assigned to that range.
    (c) If a grantee does not achieve the minimum performance level for 
a compliance indicator, the grantee receives no points.
    (d) If a grantee achieves or exceeds the minimum performance level, 
the grantee receives the points assigned to the particular performance 
range that corresponds to its actual level of performance.
    (e) The maximum possible composite score that a grantee can receive 
is 150 points.
    (f) A grantee must receive a composite score of at least 70 points 
to meet the evaluation standards and qualify for continuation funding.

(Authority: 29 U.S.C. 795(f)(1))


Sec. 379.53  What are the weights, minimum performance levels, and 
performance ranges for each compliance indicator?

    (a) Percent of individuals served whose disabilities are 
significant. (3-10 points) A minimum of 50 percent of individuals 
served by the project are individuals who have significant 
disabilities. The performance ranges and the points assigned to each 
range are as follows:
    (1) 50 percent to 59 percent--3 points.
    (2) 60 percent to 75 percent--7 points.
    (3) 76 percent or more--10 points.
    (b) Percent of individuals served who have been unemployed for at 
least six months at the time of project entry. (5-15 points) A minimum 
of 50 percent of individuals served by the project have been unemployed 
for at least 6 months at the time of project entry. The

[[Page 48058]]

performance ranges and the points assigned to each range are as 
follows:
    (1) 50 percent to 59 percent--5 points.
    (2) 60 percent to 75 percent--10 points.
    (3) 76 percent or more--15 points.
    (c) Cost per placement. (8-25 points) The average cost per 
placement of individuals served by the project does not exceed 
$1600.00. The performance ranges and the points assigned to each range 
are as follows:
    (1) $1351 to $1600--8 points.
    (2) $1000 to $1350--17 points.
    (3) Less than $1000-25 points.
    (d) Projected cost per placement. (5-15 points) The actual average 
cost per placement of individuals served by the project does not exceed 
140 percent of the projected average cost per placement in the 
grantee's application. The performance ranges and the points assigned 
to each range are as follows:
    (1) 126 percent to 140 percent--5 points.
    (2) 111 percent to 125 percent--10 points.
    (3) 110 percent or less--15 points.
    (e) Placement rate. (8-25 points) A minimum of 40 percent of 
individuals served by the project are placed in competitive employment. 
The performance ranges and the points assigned to each range are as 
follows:
    (1) 40 percent to 49 percent--8 points.
    (2) 50 percent to 69 percent--17 points.
    (3) 70 percent or more--25 points.
    (f) Projected placement rate. (5-15 points) The actual number of 
individuals served by the project that are placed into competitive 
employment is at least 50 percent of the number of individuals that the 
grantee projected in its grant application would be placed. The 
performance ranges and the points assigned to each range are as 
follows:
    (1) 50 percent to 74 percent--5 points.
    (2) 75 percent to 94 percent--10 points.
    (3) 95 percent or more--15 points.
    (g) Change in earnings. (7-20 points) The earnings of individuals 
served by the project who are placed into competitive employment have 
increased by an average of at least $75.00 a week over earnings at 
project entry. The performance ranges and the points assigned to each 
range are as follows:
    (1) $75 to $124--7 points.
    (2) $125 to $199--14 points.
    (3) $200 or more--20 points.
    (h) Percent placed who have significant disabilities. (3-10 points) 
At least 50 percent of individuals served by the project who are placed 
into competitive employment are individuals who have significant 
disabilities. The performance ranges and the points assigned to each 
range are as follows:
    (1) 50 percent to 59 percent--3 points.
    (2) 60 percent to 75 percent--7 points.
    (3) 76 percent or more--10 points.
    (i) Percent unemployed placed. (5-15 points) At least 50 percent of 
individuals served by the project who are placed into competitive 
employment are individuals who were unemployed for at least 6 months at 
the time of project entry. The performance ranges and the points 
assigned to each range are as follows:
    (1) 50 percent to 59 percent--5 points.
    (2) 60 percent to 75 percent--10 points.
    (3) 76 percent or more--15 points.
    (j) Summary chart of weights and performance ranges. The following 
composite chart shows the weights assigned to the performance ranges 
for each compliance indicator.

------------------------------------------------------------------------
                                            Performance ranges:
                                  --------------------------------------
                                      Range        Range        Range
------------------------------------------------------------------------
Indicator:                                   1            2            3
Individuals with significant                 3            7           10
 disabilities served.............
Unemployed served................            5           10           15
Cost per placement...............            8           17           25
Projected cost per placement.....            5           10           15
Placement rate...................            8           17           25
Projected placement rate.........            5           10           15
Change in earnings...............            7           14           20
Percent placed who have                      3            7           10
 significant disabilities........
Percent unemployed placed........            5           10           15
                                  --------------------------------------
    Total possible score.........           49          102          150
------------------------------------------------------------------------

(Authority: 29 U.S.C. 795(f)(1))


Sec. 379.54  What are the reporting requirements for the compliance 
indicators?

    (a) To allow the Secretary to determine whether a grantee is 
eligible to receive continuation funding for the third year of funding 
(or the second continuation award) or any subsequent year of a PWI 
grant, each grantee must submit data to the Secretary for the first 
project year or for the most recent complete project year no later than 
60 days after the end of that project year, unless--
    (1) The Secretary authorizes a later submission date; or
    (2) The grantee exercises the option in paragraph (c) of this 
section.
    (b) The Secretary uses the data provided pursuant to paragraph (a) 
of this section to determine if the grantee has met the program 
compliance indicators established in this Subpart F.
    (c) If the data provided under paragraph (a) of this section for 
the most recent complete project year shows that a grantee has failed 
to achieve the minimum composite score required to meet the program 
compliance indicators (see Sec. 379.52(f)), the grantee may, at its 
option, submit data from the first six months of the current project 
year. The data must demonstrate that the grantee's project performance 
has improved sufficiently to meet the minimum composite score.
    (d) The grantee must submit data submitted pursuant to paragraph 
(c) of this section no later than 60 days after the end of that 6 month 
period, unless the Secretary authorizes a later submission date.

(Approved by the Office of Management and Budget under control 
number 1820-0566)
(Authority: 29 U.S.C. 795(f)(2) and 795(f)(4))

Appendix A To Part 379--Evaluation Standards

    Standard 1: The primary objective of the project must be to 
assist individuals with disabilities to obtain competitive 
employment. The activities carried out by the project must support 
the accomplishment of this objective.
    Standard 2: The project must serve individuals with disabilities 
that impair their capacity to obtain competitive employment. In 
selecting persons to receive services,

[[Page 48059]]

priority must be given to individuals with significant disabilities.
    Standard 3: The project must ensure the provision of services 
that will assist in the placement of individuals with disabilities.
    Standard 4: Funds must be used to achieve the project's primary 
objective at minimum cost to the Federal Government.
    Standard 5: The project's advisory council must provide policy 
guidance and assistance in the conduct of the project.
    Standard 6: Working relationships, including partnerships, must 
be established with agencies and organizations to expand the 
project's capacity to meet its objectives.
    Standard 7: The project must obtain positive results in 
assisting individuals with disabilities to obtain competitive 
employment.

Appendix B To Part 379--Presumption of Eligibility

    If a DSU determines that an individual is an eligible individual 
under section 102(a) of the Act, including that the individual meets 
the definition of an ``individual with a significant disability,'' 
and refers the individual to a PWI project, the PWI grantee may 
initiate services to that individual without the need for an 
additional determination of eligibility. In these instances, the PWI 
grantee should obtain appropriate documentation of this 
determination from the DSU.

Appendix C To Part 379--Calculating Required Matching Amount

    1. The method for calculating the required matching amount may 
be stated by the following formula:

X = (Y  .8) - Y
X = Required Match (provided in cash or through third party in-kind 
contributions)
Y = Amount of Federal Funds

    This equation holds true regardless of the total cost of the 
project. The amount of Federal funds spent in a fiscal year (FY) can 
never be more than 80 percent (hence, the ``.8'' in the formula) of 
the total funds (Federal and non-Federal) spent by the project. 
Thus, the formula is not dependent on knowing the total cost of the 
project. One needs to know only that the Federal share can be no 
more than 80 percent of whatever the total costs may turn out to be. 
In all cases, the matching contribution is calculated by dividing 
the amount of the Federal grant award by 80 percent (.8) and 
subtracting from that result the amount of the Federal grant award.
    For example: If the amount of the Federal PWI grant award is 
$400,000, the amount of the required match is $100,000, calculated 
as follows:

 
 
                                                                     Max. Fed. % of             (Am't. of Fed.
   Required match      =    (Am't. of Fed. Funds in FY           Total)          -       Funds in FY)
 
X                      =   ($400,000..................    .8)                    -   400,000
X                      =   $500,000-400,000...........
X                      =   $100,000...................
 

    The matching contribution is never simply 20 percent of the 
amount of the Federal grant award (i.e., in the above example, NOT 
.2 x $400,000).
    2. Another consideration is what happens if a grantee carries 
over unspent Federal funds it received in a fiscal year. If the 
grantee spends or obligates less than the amount of its Federal 
grant award in a particular fiscal year and carries over the unspent 
or unobligated amount of its Federal grant award, its required 
matching contribution stays the same because the amount of its 
required matching expenditures or obligations is based on the amount 
of Federal dollars received in a particular fiscal year. That is, if 
the grantee carries over any unspent or unobligated Federal funds, 
the grantee must have spent or obligated the amount of non-Federal 
funds required for its matching contribution in the same fiscal year 
in which the Federal funds were received.
    For example: If a PWI grantee receives a grant award of $80,000 
in FY 2000, its matching requirement for these funds is $20,000. If 
the grantee spends and obligates only $64,000 in FY 2000, it may 
``carry over'' $16,000 to FY 2001. However, the grantee must spend 
or obligate $20,000 in non-Federal funds in FY 2000 to meet its 
matching requirements for the $80,000 it received in FY 2000, even 
though it does not spend or obligate the entire $80,000 in FY 2000. 
If the grantee fails to spend or obligate in FY 2000 the entire 
$20,000 in non-Federal funds, the grantee will fail to meet the 
matching requirement for the $80,000 it received in FY 2000 and may 
not carry over the unspent or unobligated $16,000 to FY 2001.
    3. The matching contribution also must comply with the 
requirements of 34 CFR 74.23 (for grantees that are institutions of 
higher education, hospitals, or other nonprofit organizations) or 34 
CFR 80.24 (for grantees that are State, local, or Indian tribal 
governments). The term ``third party in-kind contributions'' is 
defined in either 34 CFR 74.2 or 34 CFR 80.3, as applicable to the 
type of grantee.
[FR Doc. 99-22564 Filed 8-31-99; 8:45 am]
BILLING CODE 4000-01-U