[Federal Register Volume 67, Number 248 (Thursday, December 26, 2002)]
[Notices]
[Pages 78790-78794]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-32574]


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DEPARTMENT OF EDUCATION

RIN 1820-ZA13


Access to Telework Fund

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

ACTION: Notice of proposed priority and proposed application and 
project requirements.

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SUMMARY: The Assistant Secretary for Special Education and 
Rehabilitative Services proposes a priority and application and project 
requirements for an Access to Telework Fund (ATF). The Assistant 
Secretary may use this priority and the requirements for competitions 
in fiscal year (FY) 2002 and later years. We take this action to expand 
employment opportunities for individuals with disabilities by providing 
greater access to computers and other equipment that will allow them to 
work from home if they choose. Grants would be made to States, 
including the District of Columbia, the Commonwealth of Puerto Rico, 
the United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands, and American Indian 
tribal governments to enable them to provide loans to individuals with 
disabilities to purchase computers and other equipment for this 
purpose.

DATES: We must receive your comments on or before January 27, 2003.

ADDRESSES: Address all comments about this proposed priority and 
proposed application and project requirements to Pamela Martin, U.S. 
Department of Education, 400 Maryland Avenue, SW., room 3314, Switzer 
Building, Washington, DC 20202-2645. If you prefer to send your 
comments through the Internet, use one of the following addresses: 
[email protected] or [email protected].
    You must include the term ``Access to Telework Fund'' in the 
subject line of your electronic message.

FOR FURTHER INFORMATION CONTACT: Pamela Martin. Telephone (202) 205-
8494 or via Internet: [email protected].
    Or Gayle Palumbo, U.S. Department of Education, Rehabilitation 
Services Administration, 50 United Nations Plaza, room 215, San 
Francisco, CA 94102. Telephone (415) 556-4071 or via Internet: 
[email protected].
    If you use a telecommunications device for the deaf (TDD), you may 
call the TDD number at (202) 205-4475.
    Individuals with disabilities may obtain this document in an 
alternative format (e.g., Braille, large print, or computer diskette) 
on request to one of the contact persons listed under FOR FURTHER 
INFORMATION CONTACT.

SUPPLEMENTARY INFORMATION:

Invitation to Comment

    We invite you to submit comments regarding this proposed priority 
and the proposed application and project requirements. To ensure that 
your comments have maximum effect in developing the notice of final 
priority and final application and project requirements, we urge you to 
be specific about any recommended changes. We are particularly 
interested in receiving comments on the following topics:
    1. Eligible applicants for the Access to Telework Fund, including 
who may apply for an ATF grant and the implications of allowing more 
than one agency within a State to receive a grant.
    2. The authorized activities under this program and appropriate 
uses of grant funds.

[[Page 78791]]

    3. The definition of ``telework,'' as it appears in this priority.
    4. Requirements, including reporting requirements, and procedures 
considered essential in the establishment of this loan program and 
which should be included under ``Application and Project 
Requirements.'' For example, comments are welcome on more specific 
outcome measures needed to evaluate the impact of the program.
    We invite you to assist us in complying with the specific 
requirements of Executive Order 12866 and its overall requirement of 
reducing regulatory burden that might result from this proposed 
priority. Please let us know of any further opportunities we should 
take to reduce potential costs or increase potential benefits while 
preserving the effective and efficient administration of the program.
    During and after the comment period, you may inspect all public 
comments about this proposed priority in room 3038, Switzer Building, 
330 C Street, SW., Washington, DC, between the hours of 8:30 a.m. and 4 
p.m., Eastern time, Monday through Friday of each week except Federal 
holidays.

Assistance to Individuals With Disabilities in Reviewing the Rulemaking 
Record

    On request, we will supply an appropriate aid, such as a reader or 
print magnifier, to an individual with a disability who needs 
assistance to review the comments or other documents in the public 
rulemaking record for this proposed priority. If you want to schedule 
an appointment for this type of aid, please contact one of the 
individuals listed under FOR FURTHER INFORMATION CONTACT.
    We will announce the final priority and final application and 
project requirements in a notice in the Federal Register. We will 
determine the final priority and final application and project 
requirements after considering responses to this notice and other 
information available to the Department. This notice does not preclude 
us from proposing or funding additional priorities, subject to meeting 
applicable rulemaking requirements.

    Note: This notice does not solicit applications. In any year in 
which we choose to use this proposed priority and proposed 
application and project requirements, we invite applications through 
a notice in the Federal Register.

Priority

Access to Telework Fund

    The proposed priority would implement the Access to Telework Fund 
(ATF) proposed by the President in his New Freedom Initiative. This new 
program would enable States, including the District of Columbia, the 
Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, 
American Samoa, and the Commonwealth of the Northern Mariana Islands, 
and American Indian tribes to provide loans to individuals with 
disabilities to purchase computers and other equipment so they can work 
from home.
    The ATF will be conducted under section 303(b) of the 
Rehabilitation Act of 1973, as amended (Act). The proposed priority 
supports section 303(b) by furthering the purposes of the Act, 
specifically by empowering individuals with disabilities to maximize 
employment, economic self-sufficiency, independence, and inclusion and 
integration into society.
    Background: In February of 2001, the President introduced his New 
Freedom Initiative to help Americans with disabilities by increasing 
access to assistive technologies, expanding educational opportunities, 
increasing the ability of Americans with disabilities to integrate into 
the workforce, and promoting increased access into daily community 
life. As a part of this initiative, the ATF was proposed to increase 
the participation of Americans with disabilities in the workforce by 
expanding telework opportunities.
    We anticipate that many employers will provide employees with the 
equipment they need to telework. We wish to emphasize that this program 
does not relieve covered employers from their obligations under the 
Americans with Disabilities Act (ADA). However, we realize that some 
individuals with disabilities need an alternative mechanism to access 
computers and other needed equipment not provided by an employer to 
enable them to work from home. The Access to Telework Fund will provide 
that alternative mechanism.
    The employment rate for people with disabilities is unacceptably 
low and for individuals with significant disabilities it is even lower. 
Yet most people with disabilities who can work, but do not have jobs, 
say that they would like to work and contribute to the country's 
economy. However, individuals with disabilities experience many 
barriers to employment, including inadequate transportation, fatigue, 
inaccessible work environments, and the need for personal assistance. 
For many, these barriers can be reduced or eliminated through the 
availability of viable alternatives such as telework and other 
alternative work options.
    Telework and other alternative work options, such as home-based 
self-employment, are rapidly expanding employment options in the 
emerging information age. These work options provide employment 
opportunities to many Americans who want or need a flexible work 
environment. Americans with disabilities should have the same access to 
pursue employment opportunities in traditional and alternative work 
settings as other members of society.
    Promoting telework options may also bring more individuals with 
disabilities into the labor market. Many individuals with disabilities, 
and individuals with chronic illnesses, may not be aware of how new 
technologies can accommodate flexible work schedules and expand 
employment options. Becoming more aware of what is available, and that 
options do exist, may open more doors to employment. The availability 
of telework and other flexible work arrangements for people with 
disabilities can reduce or eliminate barriers to employment. Some 
employees may want or need to telework almost exclusively, while others 
may choose to work from home only if the need arises. These 
alternatives can mean the difference between being able to work and not 
being able to work.
    Computer technology and the Internet have tremendous potential to 
broaden the lives and increase the independence and employment of many 
people with disabilities. However, the computer and Internet revolution 
has not reached as many people with disabilities as the population 
without disabilities. Only 25 percent of people with disabilities own a 
computer, compared with 66 percent of U.S. adults without disabilities, 
and only 20 percent of people with disabilities have access to the 
Internet, compared with 40 percent of U.S. adults.
    The primary barrier to wider access to computer equipment is cost. 
Computers with adaptive technology (e.g., screen readers, voice 
synthesizers, adaptive keyboards, and specialized software) can cost as 
much as $20,000. The median income of Americans with disabilities is 
far below the national average. Thus, for many individuals with 
disabilities, owning a computer with adaptive technology is 
prohibitively expensive.

[[Page 78792]]

    It is often very difficult for individuals with disabilities to 
save enough money to purchase computer or other necessary office 
equipment. Cash benefit programs do not provide sufficient funds for 
both living expenses and savings, and income support programs limit the 
amount of assets a person can accumulate. For a number of reasons, 
people with disabilities often find it difficult to access loans as a 
method to purchase necessary equipment. For example, they may have 
insufficient cash or collateral, lack an appropriate credit rating, or 
face attitudinal barriers.
    Proposed Priority: Under 34 CFR 75.105 (c)(3) we propose to give an 
absolute preference to applications that meet the following priority. 
Under an absolute priority we consider only applications that meet the 
priority.
    This priority supports grants to States for the establishment of an 
Access to Telework Fund to provide loans to individuals with 
disabilities for the purpose of purchasing computers and other 
equipment, including adaptive equipment, so that the individuals with 
disabilities can telework from home.
    The term ``telework'' typically encompasses work that can be 
performed effectively from home or from other designated sites away 
from the office, such as work on the road or at a telework center. For 
the purposes of this program, telework is limited to work that can be 
performed effectively from home and does not include work from the road 
or a telework center. Successful applicants will develop programs that 
will enable them to provide loans, for the purchase of computers and 
other equipment, to individuals with disabilities who want to work at 
home as an employee, a contractor, or work in home-based self-
employment on a full- or part-time basis. Individuals with disabilities 
who are employees and work from home for part of the work week are 
eligible for loans for equipment they need while working at home.
    Consistent with legislative history, the Department intends to give 
grantees the flexibility to design and implement the Access to Telework 
program in a manner that will encourage individuals with disabilities 
to apply for loans.
    Eligible Applicants: State agencies from the 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, the United 
States Virgin Islands, Guam, American Samoa, and the Commonwealth of 
the Northern Mariana Islands, are eligible to apply for ATF grants. 
These agencies may include, but are not limited to, State vocational 
rehabilitation agencies; State employment agencies; State agencies 
currently administering programs under the Assistive Technology Act, 
including the Assistive Technology State Grant Program or the 
Alternative Financing Program; Governors' offices; or other appropriate 
State agencies. Applicants may also include consortia of State 
agencies, with one agency acting as the official applicant for the 
grant.
    Governing bodies of American Indian tribes located on Federal and 
State reservations (and consortia of those governing bodies) consistent 
with section 7(19)(B) of the Act are also eligible to apply for ATF 
grants.
    More than one agency within a State may apply for a grant, but 
there must be coordination and communication between grantees in any 
single State.

Application and Project Requirements

    In accordance with the application and project requirements that 
follow, applicants under this competition must successfully demonstrate 
that they will:
    A. Achieve the program's short-term goal of increasing access to 
technology for disabled individuals through the provision of loans that 
must be used to purchase computers and other equipment, including 
adaptive equipment, so that individuals with disabilities can telework 
from home; and
    B. Achieve the program's long-term goal of increasing employment 
opportunities and competitive employment outcomes for individuals with 
disabilities.
    Application, matching, reporting, and other project requirements 
are as follows:

A. General Requirements for Applicants under this Competition

    (1) Each applicant under the ATF competition must provide 
information, in its application, on the manner in which its proposed 
loan program will expand employment opportunities for individuals with 
disabilities by including information on the expected impact and 
outcomes of the project. More specifically, applicants must project a 
goal of how many people could achieve employment outcomes with the 
level of grant funding being requested. Applicants also must be 
specific about what data they will collect in order to measure project 
outcomes against the goal. Additional outcome measures, such as 
increases in salary or customer satisfaction levels, must also be 
included to support the application.
    (2) Each applicant is allowed flexibility in the development of its 
proposed loan program under the Access to Telework Fund. However, the 
proposed loan procedures and criteria must be explained in the 
application for funding. At a minimum, the application must contain the 
following:
    (a) Procedures that provide for the timely review and processing of 
loan applications and that include methods and processes that reduce 
paperwork and duplication of effort, particularly as they relate to the 
needs and eligibility of individuals with disabilities to receive loans 
from the project, including--
    (i) Loan application procedures;
    (ii) The criteria whereby an individual with a disability may 
qualify for a loan, including criteria for determining credit 
worthiness; and
    (iii) If proposed, the description of any appeal process for 
applicants who are denied loans.
    (b) The type or types of alternative financing mechanisms the 
applicant is proposing to provide as part of the project and in 
conjunction with contracting organizations, if any, including--
    (i) A low-interest loan program;
    (ii) An interest buy-down program;
    (iii) A revolving fund;
    (iv) A loan guarantee or insurance program; and
    (v) Any other mechanism that meets the requirements and intent of 
this program and is approved by the Secretary.
    (c) Policies, procedures, and specifications related to the 
awarding and collection of loans, including--
    (i) Minimum and maximum loan amounts;
    (ii) Criteria for determining the amount of a loan, the interest on 
loans, and how interest will be determined;
    (iii) Loan repayment and collection procedures, including 
procedures for handling situations in which individuals are delinquent 
in repayment or default on loans, and the consequences of defaulting on 
a loan; and
    (iv) If appropriate, possibilities for deferral of repayment and 
loan forgiveness under specified circumstances.
    (d) Outreach and marketing strategies the applicant proposes to use 
to inform individuals with disabilities and other appropriate target 
groups about the program.
    (3) Each applicant must provide information, in its application, on 
the procedures to be used to ensure the individuals with disabilities 
who receive loans under this program intend to work from home.
    (4) If an applicant chooses to enter into contracts with private 
financial institutions, banks, credit unions, other

[[Page 78793]]

State agencies, or community-based organizations to administer the 
Access to Telework Fund, each contract must include--
    (a) A provision requiring that the program funds, including the 
Federal and non-Federal shares of the cost of the program, be 
administered in a manner consistent with the requirements of this 
program; and
    (b) Provisions for contract oversight and evaluation in order to 
protect Federal financial interests.
    (5) Each applicant must provide a description of each organization, 
if any, that it intends to use by contract or other arrangements to 
carry out the Access to Telework Fund. The role and responsibilities of 
each organization must also be included.

B. Application Assurances

    Each applicant must provide the following assurances in its 
application:
    (1) ATF funds will not be used as a substitute for employer 
responsibilities under the ADA or to fulfill responsibilities of other 
parties under the ADA.
    (2) All Federal and matching funds that support the Access to 
Telework Fund, including all principal and interest repaid during the 
life of the program, will be placed in a permanent separate account and 
identified and accounted for separately from any other funds.
    (3) The funds specified in paragraph (B)(2) will be invested in low 
risk securities in which a regulated insurance company may invest under 
the laws of the State.
    (4) Funds comprised of the principal and interest from the account 
described in paragraph (B)(2) and any interest or investment income 
that accrues on or derives from the investments noted in paragraph 
(B)(3) must also be available to support the Access to Telework Fund.
    (5) ATF funds will be used to supplement and not supplant Federal 
(funding other than through this program), State, and local public 
funds used to support similar services to individuals with 
disabilities.
    (6) The ATF program will be continued on a permanent basis or for 
as long as funding exists to support such a program, including funding 
identified in paragraphs (B)(2) and (B)(3).
    (7) The grantee will administer the funds with the same judgment 
and care that a person of prudence, discretion, and intelligence would 
exercise in the management of his or her own financial affairs.
    (8) Materials used by potential loan applicants to obtain 
information on loan availability, eligibility requirements, and 
procedures for applying for a loan will be provided in accessible 
formats.
    (9) The project will coordinate and share information and resources 
with other ATF projects within the State, as well as with the 
alternative financing programs such as those funded under titles I and 
III of the Assistive Technology Act.
    (10) Policies and procedures will be established to ensure that 
access to the ATF will be given to consumers regardless of type of 
disability, age, income level, or type of computers and other equipment 
for which financing is requested through the program.

C. Matching Requirements and Limitations on Indirect Costs

    (1) The Federal share of the cost of the ATF must not be more than 
90 percent. Therefore, each applicant must demonstrate it will provide 
at least 10 percent of the total program cost in non-Federal funds.
    (2) The grantee must provide the non-Federal share of the cost of 
the ATF in cash from State, tribal, local, or private sources.
    (3) The non-Federal match requirement must be met within the 12-
month project period.
    (4) Federal funds may be drawn down and expended before or after 
the non-Federal match requirement is met, as long as the match is 
provided within the 12-month project period.
    (5) Each grantee must limit indirect costs charged to the Federal 
grant to 10 percent of the total direct costs.

D. Reporting Requirements

    Through the analysis of data collected under the following 
reporting requirements, the Secretary will assess grantee success in 
meeting the program's overall goals of--
    (1) Increasing access to technology for disabled individuals; and
    (2) Increasing employment opportunities and competitive employment 
outcomes for individuals with disabilities.
    Performance measures used to determine whether the goals have been 
accomplished will include-- numbers of loans made to individuals with 
disabilities; numbers of individuals who obtained telework employment 
as a result of ATF loans; and ATF default rates. Grantee evaluation 
systems must be capable of collecting and analyzing this and the 
following additional required information.
    Each grantee must collect and submit to the Secretary the following 
information within 90 calendar days after the end of the project period 
and annually thereafter, for as long as an ATF program identified in 
paragraphs (B)(2) and (B)(3), Application Assurances, is in operation:
    (1) The total financial contribution to the project, including the 
Federal share and non-Federal matching contributions, and the source of 
the non-Federal share.
    (2) The amount of ATF funding requested by and provided to each 
individual consumer applicant for a loan.
    (3) The total number of loans requested by and made to individuals 
with disabilities and the total number of loans in each of the types of 
alternative financing mechanisms listed in paragraph (A)(2)(b).
    (4) The number of loan applicants denied and the reasons for 
denial.
    (5) The amount and terms of each loan provided, including the 
interest rate.
    (6) The types of equipment financed through the project, including 
the total number of each type of equipment financed.
    (7) Information on the characteristics of each individual with a 
disability served under the project, including demographic information 
such as age and ethnicity; type of disability; employment status at the 
time of loan application; whether the consumer tried to secure 
financial support from other sources and, if so, a description of those 
sources; whether the individual consumer went to work, if he or she is 
teleworking for some part of his or her job, and the occupation in 
which the individual is working; the hourly salary the individual 
consumer is earning and a comparison of the consumer's salary with that 
reported in the previous annual ATF report; and information on whether 
each individual has repaid his or her loan, is in repayment status, is 
delinquent on repayments, or has defaulted on the loan.
    (8) A breakdown of expenditures from the ATF program, including 
information on the amount paid in direct loans to individuals with 
disabilities, the amount devoted to administrative costs of the 
program, and the nature of those administrative costs.
    (9) The default rate under the program.

Executive Order 12866

    This notice of proposed priority and proposed application and 
project requirements has been reviewed in accordance with Executive 
Order 12866. Under the terms of the order, we have assessed the 
potential costs and benefits of this regulatory action.
    The potential costs associated with this notice are those resulting 
from

[[Page 78794]]

requirements we have determined as necessary for administering this 
program effectively and efficiently.
    In assessing the potential costs and benefits--both quantitative 
and qualitative--of this notice, we have determined that the benefits 
of the proposed priority and proposed application and project 
requirements justify the costs.
    We have also determined that this regulatory action does not unduly 
interfere with State, local, and tribal governments in the exercise of 
their governmental functions.
    Summary of potential costs and benefits: The Assistant Secretary 
has determined that the cost to the Federal Government associated with 
this program will not exceed $20 million in FY 2002 or FY 2003. In 
addition, grant recipients (State agencies from the 50 States, the 
District of Columbia, the Commonwealth of Puerto Rico, the United 
States Virgin Islands, Guam, American Samoa, the Commonwealth of the 
Northern Mariana Islands, and governing bodies of American Indian 
tribes located on Federal and State reservations) must contribute a 
required non-Federal match of at least 10 percent of the total program 
cost. No other costs will result from the announcement of this proposed 
priority and proposed application and project requirements.
    The benefit of this proposed priority and proposed application and 
project requirements will be the establishment of the Access to 
Telework Fund proposed by the President in the New Freedom Initiative, 
which calls for the provision of loans to individuals with disabilities 
for the purpose of purchasing computers and other equipment, including 
adaptive equipment, so that individuals with disabilities can telework 
from home.

Intergovernmental Review

    This program is subject to Executive Order 12372 and the 
regulations in 34 CFR part 79. One of the objectives of the Executive 
order is to foster an intergovernmental partnership and a strengthened 
federalism. The Executive order relies on processes developed by State 
and local governments for coordination and review of proposed Federal 
financial assistance.
    This document provides early notification of our specific plans and 
actions for this program.

Electronic Access to This Document

    You may review 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 the following site: 
www.ed.gov/legislation/FedRegister.
    To use PDF you must have Adobe Acrobat Reader, which is available 
free at this site. If you have questions about using PDF, call the U.S. 
Government Printing Office (GPO), toll free, at 1-888-293-6498; or in 
the Washington, DC, 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.


(Catalog of Federal Domestic Assistance Number 84.235, Special 
Demonstration Programs, Access to Telework Fund)

    Program Authority:  29 U.S.C. 773(b).

Robert H. Pasternack,
Assistant Secretary for Special Education and Rehabilitative Services.
[FR Doc. 02-32574 Filed 12-24-02; 8:45 am]
BILLING CODE 4000-01-P