[Federal Register Volume 80, Number 220 (Monday, November 16, 2015)]
[Proposed Rules]
[Pages 70728-70746]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-28888]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

45 CFR Part 1329

RIN 0985-AA10


Independent Living Services and Centers for Independent Living

AGENCY: Administration for Community Living, HHS.

ACTION: Proposed rule.

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SUMMARY: This proposed rule would implement the Workforce Innovation 
and Opportunity Act enacted on July 22, 2014 and reflects the transfer 
of Independent Living Services and Centers for Independent Living 
programs from the Department of Education to the Department of Health 
and Human Services. The previous regulations were issued by the 
Department of Education. This proposed rule will consolidate the 
Independent Living (IL) regulations into a single part, align the 
regulations with the current statute and HHS policies, and will provide 
guidance to IL grantees.

DATES: Comments are due on or before January 15, 2016.

ADDRESSES: You may submit comments in one of following ways (no 
duplicates, please): Written comments may be submitted through any of 
the methods specified below. Please do not submit duplicate comments.
     Federal eRulemaking Portal: You may (and we encourage you 
to) submit electronic comments on this regulation at http://www.regulations.gov. Follow the instructions under the ``submit a 
comment'' tab. Attachments should be in Microsoft Word, WordPerfect, or 
Excel; however, we prefer Microsoft Word.
     Regular, Express, or Overnight Mail: You may mail written 
comments to the following address ONLY: Administration for Community 
Living, Attention: IL NPRM, U.S. Department of Health and Human 
Services, Washington, DC 20201. Please allow sufficient time for mailed 
comments to be received before the close of the comment period.
     Individuals with a Disability: We will provide an 
appropriate accommodation, including alternative formats, upon request. 
To make such a request, please contact Marlina Moses-Gaither, (202) 
357-3552 (Voice) or at [email protected].

FOR FURTHER INFORMATION CONTACT: Molly Burgdorf, Administration for 
Community Living, telephone (202) 357-3411 (Voice). This is not a toll-
free number.

SUPPLEMENTARY INFORMATION: 

I. Workforce Innovation and Opportunity Act of 2014

    The Workforce Innovation and Opportunity Act (``WIOA,'' Pub. L. 
113-128), signed into law on July 22, 2014, included significant 
changes to title VII of the Rehabilitation Act of 1973. WIOA transfers 
the Independent Living Services and Centers for Independent Living 
programs authorized under chapter 1, title VII of the Rehabilitation 
Act of 1973 (Rehabilitation Act or Act), as amended by WIOA (Pub. L. 
113-128) from the Rehabilitation Services Administration (RSA), U.S. 
Department of Education (ED), to the Administration for Community 
Living (ACL), U.S. Department of Health and Human Services (HHS). WIOA 
also transferred the National Institute on Disability, Independent 
Living, and Rehabilitation Research, and the Assistive Technology Act 
programs to ACL.

[[Page 70729]]

Background

    ACL was established as an Operating Division within HHS in 2012. 
ACL focuses on the shared interests of both older adults and people 
with disabilities, while acknowledging and continuing to address the 
unique needs and differences across the populations served. As an 
agency, we strive to ensure that all Americans, regardless of age or 
disability, can make their own choices and live, learn and work in 
their communities with the services and supports they need to be fully 
participating and contributing members of society. The transferred 
Independent Living (IL) programs make important contributions to the 
work of ACL in unique ways, and they also align with the mission of ACL 
to maximize the independence, well-being and health of individuals with 
disabilities across the lifespan, and their families and caregivers.
    As part of the transfer, the Administrator of ACL (Administrator) 
is issuing new regulations for the programs that implement changes made 
by WIOA in accordance with section 12 of the Rehabilitation Act, as 
amended, 29 U.S.C. 709(e), and section 491(f) of WIOA, 42 U.S.C. 
3515e(f). This notice of proposed rulemaking applies to the Independent 
Living programs. It proposes new regulations that implement the 
transition of the Independent Living programs, including the 
Independent Living Services and the Centers for Independent Living, to 
ACL. While the proposed regulations retain many of the provisions in 
the Department of Education regulations, they also include new 
provisions to implement changes made to the programs by WIOA and to 
replace references to Department of Education procedures and 
regulations with references to procedures and regulations applicable to 
Department of Health and Human Services programs. Existing Department 
of Education Independent Living program regulations found at 34 CFR 
parts 364, 365, and 366 remain in effect until such time as the 
proposed HHS regulations become final.

Programs Amended by WIOA

Overview of the Independent Living Program

    Independent Living (IL) empowers individuals with disabilities to 
live independently in their communities assisted by two federal 
programs: Independent Living Services (ILS) and Centers for Independent 
Living (referred to as CILs or Centers).

Independent Living Services

    Authorized under Title VII, chapter 1, part B of the Rehabilitation 
Act, as amended by WIOA, the Independent Living Services (ILS) Program 
provides formula grants, based primarily on population, to States for 
the purpose of funding, directly and/or through grant or contractual 
arrangements a number of activities. These activities include:
    1. Supporting the operation of Statewide Independent Living 
Councils (SILCs);
    2. Providing IL services to individuals with significant 
disabilities, particularly those in unserved areas of the State;
    3. Demonstrating ways to expand and improve IL services;
    4. Supporting the operation of CILs that comply with the standards 
and assurances of section 725;
    5. Increasing the capacity of public or nonprofit organizations and 
other entities to develop comprehensive approaches or systems for 
providing IL services;
    6. Conducting studies and analyses, developing model policies and 
procedures, and presenting information, approaches, strategies, 
findings, conclusions, and recommendations to federal, State and local 
policymakers to enhance IL services;
    7. Training service providers and individuals with disabilities on 
the IL philosophy; and
    8. Providing outreach to populations that are unserved or 
underserved by IL programs, including minority groups and urban and 
rural populations.
    To be eligible for financial assistance, States are required to 
establish and maintain a SILC and to submit an approvable State Plan 
for Independent Living (SPIL) jointly developed by the chairperson of 
the SILC and the directors of the Centers for Independent Living, with 
input from individuals with disabilities and other stakeholders 
throughout the State. The SPIL must be signed by the SILC chairperson 
acting on behalf of and at the direction of the SILC, the director of 
the designated State entity (DSE), and not less than 51 percent of the 
directors of CILs in the State.

Centers for Independent Living

    Authorized under title VII, chapter 1, part C of the Rehabilitation 
Act, as amended by WIOA, the Centers for Independent Living Program 
provides grants to consumer-controlled, community-based, cross-
disability, nonresidential, private nonprofit agencies for the 
provision of an array of IL services to individuals with significant 
disabilities. At a minimum, Centers funded by the program are required 
to provide the following five IL core services:
    1. Information and referral;
    2. IL skills training;
    3. Peer counseling;
    4. Individual and systems advocacy; and
    5. Services that facilitate transition from nursing homes and other 
institutions to home and community based residences with the necessary 
supports and services, provide assistance to those at risk of entering 
institutions, and facilitate transition of youth to postsecondary life.
    Centers also may provide, among others: Services related to 
securing housing or shelter; personal assistance services; 
transportation, including referral and assistance, mobility training, 
rehabilitation technology; and other services consistent with 29 U.S.C. 
705(18), including those necessary to improve the ability of 
individuals with significant disabilities to function independently in 
the family or community and/or to continue in employment. The 
Rehabilitation Act establishes a set of activities along with standards 
and assurances that must be met by the Centers. To continue receiving 
CIL program funding, eligible Centers must demonstrate minimum 
compliance with the following evaluation standards: Promotion of the IL 
philosophy; provision of IL services on a cross-disability basis; 
support for the development and achievement of IL goals chosen by the 
consumer; efforts to increase the availability of quality community 
options for IL; provision of IL core services; resource development 
activities to secure other funding sources; and community capacity-
building activities. Centers' levels of compliance with the standards 
are assessed based on compliance indicators.
    A population-based formula determines the total funding available 
for discretionary grants to Centers in each State. Subject to the 
availability of appropriations as required by statute, ACL provides 
continuation funding to existing Centers at the same level of funding 
they received the prior fiscal year, including a cost-of-living 
increase, as long as they meet the standards and assurances, or are 
taking appropriate action to address identified deficiencies though a 
corrective action plan. Funding for new Centers in a State is awarded 
on a competitive basis, based on the State's priority designation of 
unserved or underserved areas in the SPIL and the availability of 
sufficient additional funds within the State. There are currently 354 
Centers for

[[Page 70730]]

Independent Living that receive direct grants from the federal 
government.\1\
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    \1\ In many States there are additional CILs that receive State 
funding or federal IL funding administered by the State agencies.
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Statewide Independent Living Councils

    As discussed above, a State must establish and maintain a Statewide 
Independent Living Council (referred to as a SILC or Council) in order 
to be eligible for IL and CIL funding. Although SILCs are not funded 
directly by the federal government, they are an important partner in 
implementing the ILS and CIL programs in a State. The SILCs are 
composed of a majority of people with disabilities and include other 
independent living stakeholders. SILC members are generally appointed 
by the Governor of the State, except in the case of a State that, under 
State law, vests authority for the administration of the activities 
carried out under the IL programs in an entity other than the Governor 
(such as one or more houses of the State legislature or an independent 
board), the chief officer of that entity would appoint SILC members. 
The chairperson of the SILC, and the directors of the Centers for 
Independent Living in the State jointly develop the State Plan for 
Independent Living (referred to as SPIL or State plan) after receiving 
public input from individuals with disabilities and other stakeholders 
throughout the State. The SILC monitors, reviews and evaluates the 
implementation of the SPIL.
    A SPIL has already been approved in each State through fiscal year 
2016. The law remains unchanged that the SPIL continues to govern the 
provision of IL services in the State. Each State is expected to 
continue its support, including specified obligations, under the 
approved SPIL. Any amendments to the SPIL, reflecting either a change 
based on the WIOA amendments or any material change in State law, 
organization, policy or agency operations that affect the 
administration of the SPIL, must be developed and signed in accordance 
with section 704(a)(2) of the Rehabilitation Act, as amended. SPIL 
amendments must be submitted by the State to ACL for approval.

Indicators of Minimum Compliance

    WIOA requires ACL to publish minimum compliance indicators for CILs 
and SILCs before July 22, 2015. (See section 706(b) of the 
Rehabilitation Act, 29 U.S.C. 796d-1(b), as amended.) Section 706(c) of 
the Rehabilitation Act continues to require compliance reviews of CILs 
funded under section 722 and reviews of State entities funded under 
section 723 of the Rehabilitation Act. Until the new minimum compliance 
indicators are published, the IL staff at ACL will continue to conduct 
compliance reviews and make final decisions on any proposed corrective 
actions and/or technical assistance related to compliance reviews, in 
accordance with current compliance indicators. Grantees must also 
continue to submit annual performance reports (referred to as the 704 
Report). ACL is in the process of reviewing related instruments and 
instructions in light of changes under WIOA. Proposed changes and new 
indicators will be published in the Federal Register in accordance with 
the requirements of the Paperwork Reduction Act of 1995, 44 U.S.C. 
chapter 35.

Overview of Key Statutory Changes Made by WIOA

    As previously discussed, WIOA transferred the Independent Living 
Programs to ACL and created a new Independent Living Administration 
within the agency, adding section 701A of the Rehabilitation Act, 29 
U.S.C. 796-1. WIOA also made a number of other changes. WIOA amended 
section 702 of the Act, 29 U.S.C. 796a, to insert the definition of 
Administrator as the Administrator of the Administration for Community 
Living in the U.S. Department of Health and Human Services. The 
responsibilities of the Administrator are set forth in amended section 
706, 29 U.S.C. 796d-1.
    New section 702 of the Act also amended the definition of a CIL and 
requires that CILs provide, at a minimum, independent living core 
services for individuals with significant disabilities, regardless of 
age or income.
    WIOA amended section 7(17) of the Act, to add a new fifth core 
service to the definition of independent living core services. Other 
relevant amendments to the definition section include the addition of a 
new section 7(42), definition of youth with a disability.
    WIOA also amends section 704 of the Act, 42 U.S.C. 796c, which 
describes requirements for the State Plan. The law now requires that 
the SPIL be developed jointly by the chairperson of the Statewide 
Independent Living Council (SILC) and the directors of the Centers for 
Independent Living, after receiving public input from individuals with 
disabilities and other stakeholders throughout the State. The SPIL is 
to be signed by the SILC chairperson acting for and at the direction of 
the SILC, the director of the designated State entity (DSE), and not 
less than 51 percent of the CILs in the state. The law also requires 
that the SPIL address working relationships and collaboration between 
CILs and other entities performing similar work. Finally, the SPIL is 
required to describe strategies for providing independent living 
services on a statewide basis, to the greatest extent possible.
    As part of the amendments to section 704 of the Act, the DSE is 
responsible to receive, account for and distribute funds based on the 
SPIL, provide administrative support for programs under Title VII B, 
maintain records, and provide information or assurances to the 
Administrator. Section 704(c)(5) adds a cap of 5 percent of the funds 
received by the State for any fiscal year under Independent Living 
Services that the DSE may retain to perform these services.
    WIOA made several amendments to section 705 of the Act, 29 U.S.C. 
796d, regarding the Statewide Independent Living Council. Amended 
section 705 (b)(2) requires that voting members of the SILC include, in 
a state in which one or more CILs are run by, or in conjunction with, 
the governing bodies of American Indian tribes located on Federal or 
State reservations, at least one representative of the director of such 
Centers. It also removes the term limit for a CIL director appointed to 
the SILC if there is only one CIL within the State. Amended section 
705(c)(2) permits the SILC to engage in new activities in addition to 
the original duties outlined in section 705(c)(1). However, the amended 
section 705(c) also provides that the SILC may not provide independent 
living services directly to individuals with significant disabilities 
or manage such services. The SILC may work with CILs to coordinate 
services with public and private entities in order to improve services 
provided to individuals with disabilities, and may now also conduct 
resource development activities. SILCs must prepare a resource plan in 
conjunction with the designated State entity.
    WIOA requires that between 1.8 percent and 2 percent of funds be 
set aside for technical assistance and training for SILCs. The law also 
amends section 713 of the Act, 29 U.S.C. 796e-2, to provide that States 
may not use more than 30 percent of the funds received under chapter 1, 
part B, of the Rehabilitation Act for the SILC resource plan unless the 
State plan specifies a greater percentage is needed.
    Finally, WIOA modifies section 706(c) of the Act, 29 U.S.C. 796d-
1(c) to eliminate the requirement that

[[Page 70731]]

compliance reviews of CILs be conducted randomly.

Overview of Regulatory Changes

    U.S. Department of Education (ED) regulations governing the 
Independent Living Program are found at 34 CFR parts 364, 365, and 366. 
Part 364 sets forth regulations addressing State Independent Living 
Services and Centers for Independent Living: General Provisions; part 
365 sets forth regulations addressing State Independent Living 
Services; and part 366 sets forth regulations addressing Centers for 
Independent Living. ACL proposes to consolidate the IL regulations into 
one new part, 45 CFR part 1329. We further propose to eliminate 
regulations applicable specifically to ED processes, as well as to 
eliminate duplicative language or language no longer applicable in the 
existing ED regulations. We propose to eliminate regulatory language 
that does not add further interpretation to the statutory language. 
Unless otherwise noted, the proposed changes in in this notice of 
proposed rulemaking represent changes to implement WIOA, including the 
transfer of the programs from ED to HHS.

45 CFR Part 1329

Subpart A
    We propose to create a Subpart A of the new 45 CFR part 1329 that 
will address General Provisions for the IL programs.
    Proposed Sec.  1329.1 sets out the programs covered by the new 
Part. Proposed Sec.  1329.2 sets out their purpose as defined in 
Section 701 of the Act, 29 U.S.C. 796.
    In considering the purpose of the Act and the changes made under 
WIOA, we wish to highlight ACL's interpretation that the IL programs 
promote a philosophy of person-centeredness in keeping with the mission 
of ACL and with the policy of the Department of Health and Human 
Services. On June 6, 2014, HHS issued guidance on implementing Section 
2402(a) of the Affordable Care Act. Section 2402(a) of the Affordable 
Care Act requires the Secretary to ensure all States receiving federal 
funds develop service systems that are responsive to the needs and 
choices of beneficiaries receiving home and community-based long-term 
services (HCBS), maximize independence and self-direction, provide 
support coordination to assist with a community-supported life, and 
achieve a more consistent and coordinated approach to the 
administration of policies and procedures across public programs 
providing HCBS. Because so much of the work done by IL programs 
involves these same principles, we believe it is important to clarify 
that the June 2014 guidance, including person-centered planning 
requirements,\2\ applies to IL programs.
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    \2\ Person-centered planning is a process directed by the person 
with long-term services and supports needs. The person-centered 
planning approach identifies the person's strengths, goals, 
preferences, needs (e.g. medical and home and community-based 
services), and desired outcomes. The role of agency workers (e.g., 
options counselors, support brokers, social workers and others) in 
the process is to enable and assist people in identifying and 
accessing a unique mix of paid and unpaid services to meet their 
needs, and provide support during planning. Person-centered planning 
is consistent with the independent living philosophy, including 
consumer control and self-determination, in order to maximize 
independence.
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    Proposed Sec.  1329.3 replaces the ED regulations specified in 34 
CFR 364.3 with references to other HHS regulations that govern the 
activities of the Independent Living programs.
    Proposed Sec.  1329.4 is the Definitions section.
Sec. 1329.4 Definitions
    Proposed Sec.  1329.4 defines terms used in the regulations. We 
propose to include statutory definitions when we believe the terms to 
be significant enough to warrant repetition in the regulations. We 
propose to incorporate some definitions from the existing ED 
regulations at 34 CFR 364.4. We propose modifications to other 
definitions to reflect WIOA changes or to modernize the terms.
a. Definition of Independent Living Core Services
    ACL proposes to amend the existing regulatory definition of 
independent living core services by adding the new fifth core service 
to the previous definition. The four original core services are 
information and referral services; independent living skills training; 
peer counseling, including cross-disability peer counseling; individual 
and systems advocacy.
    The new fifth core service has three components, each of which must 
be met to fulfill the fifth core service. It requires CILs to (1) 
facilitate the transition of individuals with significant disabilities 
from nursing homes and other institutions to home and community-based 
residences, with the requisite supports and services; (2) provide 
assistance to individuals with significant disabilities who are at risk 
of entering institutions so that the individuals remain in the 
community; and (3) facilitate the transition of youth who are 
individuals with significant disabilities, who were eligible for 
individualized education programs (IEPs) under Section 614(d) of the 
Individuals with Disabilities Education Act, and who have completed 
their secondary education or otherwise left school to postsecondary 
life.
    We recognize that the fifth core service of promoting full access 
to community living and postsecondary life is an important addition to 
the core services. We acknowledge that through various Medicaid and 
State-specific programs, including partnerships with other programs 
administered by ACL, many CILs have experience and existing services 
consistent with one or more of the three components. To achieve the 
right balance between clarity and flexibility in implementing the new 
core service, ACL is considering the appropriate level of detail. We 
invite comment on whether the proposed language is sufficiently 
specific, or if more information is needed to successfully implement 
this new requirement. Under our proposed approach, we have chosen not 
to define the terms ``institution,'' ``home and community-based 
residences,'' and ``at risk of institutionalization'' at this time. We 
propose, however, to define ``youth with a significant disability'' and 
related terms around youth transition to postsecondary education.
    In considering whether to define the term ``institution,'' we 
looked at a variety of existing Medicare and Medicaid definitions, 
including the definitions at Sections 1819(a) and 1862(e)(1) of the 
Social Security Act, and 42 CFR 416.201, 441.301(c)(5), and 
441.710(a)(2). These definitions include hospitals, skilled nursing 
facilities, Medicaid nursing facilities, and Intermediate Care 
Facilities for Individuals with Intellectual Disabilities (ICF/IID) 
services. They also include a definition consistent with settings that 
are not ``community based'' for Section 1915(c) home and community 
based waivers and for Section 1915(i) State plan home and community 
based services. We are concerned, however, that defining 
``institution'' based on the Medicare and Medicaid model may not be 
broad enough to encompass all institutions with which CILs may work, 
including juvenile detention centers, jails and prisons. We seek public 
comment on whether to include a definition and, if so, the suitability 
of applying Medicare and Medicaid definitions to the fifth core 
service.
    We also considered definitions of ``home and community-based 
residences'' and ``at risk'' of institutionalization. We determined not 
to define these terms at this time, but

[[Page 70732]]

request comment on whether and how ``home and community-based 
residences'' and ``at risk'' of institutionalization should be defined 
for purposes of the fifth core service. We are specifically interested 
in learning how CILs that are already transitioning individuals with 
disabilities to the community and/or doing work to avoid the 
institutionalization of people with significant disabilities currently 
define ``transition'' from institutions to the community, and people 
who are ``at risk of entering institutions.'' To maintain the consumer-
directed purpose of the programs, ACL also invites comments on the 
effectiveness and limitations of including the issue of being ``at 
risk'' as a part of CIL consumers self-disclosing their needs in the 
intake process.
    CILs that provide youth transition services to a broader group of 
youth with significant disabilities beyond the populations covered 
under the youth transition prong of the new fifth core service (in 
Section (17)(E)(iii) of the Act) have the option of continuing to do 
so, but such services would be included as IL services, rather than as 
``core services'' for purposes of the 704 report, and provision of 
those services would not satisfy the core services requirement. ACL 
proposes to define a youth with a significant disability as an 
individual with a significant disability who (i) is not younger than 14 
years of age; and (ii) is not older than 24 years of age. This 
definition is based on the definition of ``individual with a 
significant disability'' in Section 7(21), 29 U.S.C. 705(21) and 
``youth with a disability'' in Section 7(42) of the Act, 29 U.S.C. 
705(42).
    We further propose to define the term ``completed their secondary 
education'' to mean that an eligible youth has received a diploma; has 
received a certificate of completion for high school or other 
equivalent document marking the completion of participation in high 
school; has reached age 18, even if he or she is still receiving 
services in accordance with an individualized education program 
developed under the IDEA; or has exceeded the age of eligibility for 
IDEA services.\3\ Similarly, we propose a broad interpretation of 
``otherwise left school.'' For example, ``otherwise left school'' could 
mean that the youth has dropped out of school; taken a leave of absence 
from secondary school for health or disciplinary reasons; or did not 
graduate but is no longer attending classes at a secondary school. We 
request comments on this interpretation.
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    \3\ The fifth core independent living service to facilitate the 
transition of youth who are individuals with significant 
disabilities requires that they ``. . . were eligible for 
individualized education programs under section 614(d) of the 
Individuals with Disabilities Education Act (20 U.S.C. 1414(d) . . 
.'' under Section 7 of the Act, 29 U.S.C. 705(17)(E)(iii).
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b. Definition of Other Terms in Proposed Sec.  1329.4
    We propose a definition of ``Administrative support services'' 
provided by the designated State entity under Part B, to Part C CILs 
administered by the State under Section 723 of the Act, with some 
examples. We request comments on this definition.
    We proposed to incorporate the definition of ``Administrator'' at 
Section 702(1) of the Act, 29 U.S.C. 796a(1).
    We propose to define ``Advocacy'' consistent with the definition in 
the existing regulations, 34 CFR 364.4. Individual and system advocacy 
remain integral elements of promoting independent living according to 
the purpose of the law. The term includes providing assistance and/or 
representation in obtaining access to benefits, rights, services, and 
programs to which a consumer or group of consumers may be entitled. We 
invite comment on the definition. Grantees should continue to present 
information in a balanced and non-partisan manner that is consistent 
with the principles of the Rehabilitation Act and in accordance with 
relevant federal and State laws and the restrictions and exceptions in 
the Uniform Guidance, including 2 CFR 200.450, and other applicable 
requirements.
    We propose to incorporate the existing definition of ``Attendant 
care services'' in 34 CFR 364.4.
    We propose to add to the existing definition of ``Center for 
independent living'' in 34 CFR 364.4 that the array of independent 
living services provided includes, at a minimum, the independent living 
core services defined in Section 7(17) of the Act. A ``Center'' that 
receives assistance under the Act must meet all of the requirements of 
Section 725 (b) and (c) of the Act, 29 U.S.C. 796f-4(b) and (c), the 
standards and assurances for Centers for Independent Living.
    We propose to add to the statutory definition of ``Consumer 
control'' at Section 702 of the Act, 29 U.S.C. 796a(3), that control is 
vested in individuals with disabilities, including those who are or who 
have been recipients of IL services.
    We propose to add to the existing definition of ``Cross-
disability'' at 34 CFR 364.4 that the CIL provide services to 
individuals representing a range of significant disabilities, including 
individuals who are members of unserved or underserved populations.
    We propose to define ``Designated State entity (DSE)'' based on 
Section 704 of the Act, 29 U.S.C. 796c(c).
    We propose to incorporate the statutory definition of ``Eligible 
agency,'' Section 726 of the Act, 29 U.S.C. 796f-5.
    We propose to incorporate the statutory definition of ``Independent 
living services,'' from Section 7(18) of the Act, 29 U.S.C. 705(18).
    We propose to define ``Individual with a disability'' using the 
language of 42 U.S.C. 12102 as specified in Section 7(20)(B) of the 
Act, 29 U.S.C. 705(20)(B).
    We propose to incorporate the statutory definition of ``Individual 
with a significant disability'' in Section 7(21)(B) of the Act, 29 
U.S.C. 705(21)(B).
    We propose to add a definition of ``Majority'' to clarify that a 
majority means more than 50 percent. This definition applies to the 
SILC member and voting member qualifications, 29 U.S.C. 796d(4)(A)(iv) 
and (B), and the required assurances relating to the CIL Board & CIL 
staff, 29 U.S.C. 796f-4(C)(2) and (6), among other provisions. This 
addition is intended to help clarify statutory requirements, 
particularly those related to establishing consumer control.
    We propose to define ``Minority group'' to mean American Indian, 
Alaskan Native, Asian American, Black or African American (not of 
Hispanic origin), Hispanic or Latino (including persons of Mexican, 
Puerto Rican, Cuban, and Central or South American origin), and Native 
Hawaiian or other Pacific Islander, based on the Office of Management 
and Budget Standards for the Classification of Federal Data on Race and 
Ethnicity (62 FR 58782 (Oct. 30, 1997)), considered in conjunction with 
the definition for minority in National Science Foundation regulations, 
34 CFR part 637 and with the Centers for Disease Control and 
Prevention's Office of Minority Health's definitions.
    We propose to incorporate the existing definition of 
``Nonresidential'' at 34 CFR 364.4.
    We propose to incorporate the existing definition of ``Peer 
relationships'' at 34 CFR 364.4.
    We propose to incorporate the existing definition of ``Peer role 
models'' at 34 CFR 364.4.
    We propose to add to the statutory definition of ``Personal 
assistance services'' in Section 7(28) of the Act, 29 U.S.C. 705(28), 
examples of what might constitute personal assistance services. We also 
propose to add that such services may be paid or unpaid.

[[Page 70733]]

    We propose a definition of ``Service provider'' based on the 
existing definition in 34 CFR 364.4. We further propose to modify the 
definition to reflect the WIOA changes by removing references to a 
designated State unit and adding a designated State entity (DSE).
    We propose to incorporate the statutory definition of ``State'' 
Section 7(34) of the Act, 29 U.S.C. 705(34).
    We propose to define ``State plan'' by reference to Section 704 of 
the Act, 29 U.S.C. 796c.
    We propose to define ``Unserved and underserved'' groups or 
populations to include populations such as individuals with significant 
disabilities who are from racial and ethnic minority backgrounds, 
disadvantaged individuals, individuals with limited English 
proficiency, and individuals from underserved geographic areas (rural 
or urban). This definition is based on the statutory requirement in 
Section 704(l) of the Act, 29 U.S.C. 796c(l), to provide outreach to 
``populations that are unserved or underserved by programs . . . 
including minority groups and urban and rural populations.'' We further 
base the definition on the Congressional findings on traditionally 
underserved populations set forth in Section 21 of the Act, 29 U.S.C. 
718. We recognize that unserved and underserved groups or populations 
will vary by service area. For example, in some service areas unserved 
and underserved groups may include people with disabilities from the 
gay, lesbian, bisexual and transgender communities.
    We propose to define ``Youth with a significant disability'' 
consistent with the definition of ``individual with a significant 
disability'' in Section 7(21)(B), 29 U.S.C. 705(21)(B) and ``youth with 
a disability'' in Section 7(42)(A), 29 U.S.C. 705(42)(A), and with the 
definition of ``individual with a disability'' in Sec.  1329.4.
Sec. 1329.5 Indicators of Minimum Compliance
    Section 706 of the Act, 29 U.S.C. 796d-1, discusses the 
responsibilities of the Administrator with regard to oversight of the 
IL programs. Specifically, WIOA requires the development and 
publication of indicators of minimum compliance for CILs, consistent 
with the standards set forth in Section 725 of the Act, 29 U.S.C. 796f-
4, and indicators of minimum compliance for SILCs. WIOA did not amend 
Section 706(c), which requires annual compliance reviews of 15 percent 
of CILs and, to the extent necessary to determine compliance with the 
requirements of Section 723(f) and (g) of the Act, 29 U.S.C. 796f-2, 
one-third of designated State entities. WIOA deleted the requirement 
that the CILs and State entities reviewed be chosen on a random basis 
and we propose to amend the regulations accordingly. We invite comment 
on the criteria and selection process for compliance reviews going 
forward, given this change.
    ACL proposes to require Centers to demonstrate minimum compliance 
consistent with Section 725, for the following: Promotion of the IL 
philosophy; provision of IL services on a cross-disability basis; 
support for the development and achievement of IL goals chosen by the 
consumer; efforts to increase the availability of quality community 
options for IL; provision of IL core services; resource development 
activities to secure other funding sources; and community capacity-
building activities. ACL will continue to monitor programs based on the 
standards and indicators set forth in the statute as we re-evaluate and 
develop protocols that meet the requirements of the Act.
Sec. 1329.6 Reporting
    In addition to compliance reviews, each CIL and State is required 
to file an annual performance report, known as the 704 Report, which 
describes its work and how the CIL or State is meeting the goals and 
requirements of the Act. This requirement is set forth in proposed 
Sec.  1329.6. ACL is currently in the process of reviewing the 704 
reports. However, for this year, CILs and States are expected to 
complete the 704 instrument that they have used in the past. We will 
issue guidance as to how the reports are to be filed. We are 
considering changes to the 704 Report for future years. The 704 Reports 
are subject to the Paperwork Reduction Act of 1995 (PRA), and 
interested stakeholders will have an opportunity to comment on any 
future revisions to the report through the PRA clearance process.
Sec. 1329.7 Enforcement and Appeals Process
    The existing IL regulations at 34 CFR 366.39 through 366.46, 
include an enforcement and appeals process for the CILs funded under 
Part C of Chapter 1 of Title VII of the Rehabilitation Act. There is no 
corresponding process in the existing ED independent living regulations 
for the designated State entities administering Part B funds in 
accordance with the State Plan, as authorized by Part B of Chapter 1 of 
Title VII. In determining the appropriate approach for enforcement and 
appeals, ACL reviewed the existing Department of Education regulations 
and the regulations applicable to ACL programs funded under the Older 
Americans Act (OAA), 45 CFR part 1321, and the Developmental 
Disabilities and Bill of Rights Act (DD Act) regulations, 45 CFR part 
1385. The NPRM proposes to utilize a version of the process from the 
existing IL regulations modified to account for the new administrative 
structure of the programs. This approach, intended to create a uniform, 
clear and relatively simple process, best meets the needs of the CILs, 
has the advantage of offering a procedure that is familiar to the 
programs, and is not as intricate, formal or lengthy as those in 
current ACL rules.
    Under the proposed rule, if the Director of the Independent Living 
Administration (ILA) determines that a Center is not in compliance with 
the standards and assurances of a grant received from ACL, the Director 
notifies the Center that the Center is out of compliance and may be 
subject to enforcement action, including termination of funds. ACL will 
continue to make reasonable efforts to work with the Center to provide 
technical assistance in accordance with the procedures in the Notice of 
Award terms and conditions and any applicable subsequent guidance, to 
correct any deficiencies and to resolve compliance concerns before 
taking enforcement action. ACL also proposes a two-step preliminary 
appeals process where there is the imminent threat of termination or 
withholding of funds: First to the Director of the Independent Living 
Administration and then to the Administrator of ACL.
    The proposed rule requires a Center found out of compliance to 
develop a corrective action plan. ACL could provide technical 
assistance in developing and implementing the corrective action plan 
and would monitor its implementation. If the Center fails to submit an 
approvable plan or ACL determines that the Center is otherwise out of 
compliance, even with the plan, the Administrator may take steps to 
enforce the corrective action plan or to terminate funding. If the 
determination by the Administrator is a type of determination described 
in 45 CFR part 16, Appendix A, Paragraph C, subparagraphs (a)(1)-(4), 
it would be subject to review by the Departmental Appeals Board 
(DAB).\4\ These

[[Page 70734]]

determinations are: (1) A disallowance or other determination denying 
payment of an amount claimed under an award, or requiring return or 
set-off of funds already received; (2) a termination for failure to 
comply with the terms of an award; (3) a denial of a noncompeting 
continuation award under the project period system of funding where the 
denial is for failure to comply with the terms of a previous award; and 
(4) a voiding (a decision that an award is invalid because it was not 
authorized by statute or regulation or because it was fraudulently 
obtained). Under 45 CFR 16.3, the Center would have 30 days from 
receipt of notice of that determination in which to file a notice of 
appeal with the DAB.
---------------------------------------------------------------------------

    \4\ 45 CFR part 16 refers to Procedures of the Departmental 
Grant Appeals Board, which is currently known within the U.S. Dep't 
of Health and Human Services as the Departmental Appeals Board 
(DAB).
---------------------------------------------------------------------------

    We include the enforcement and appeals process in the General 
Provisions part of these proposed regulations because we propose a 
parallel process for the Part B grants. We also propose a two-step 
preliminary appeals process for the Part B grants where there is the 
imminent threat of termination or withholding of funds, first to the 
Director of the ILA and then to the Administrator of ACL. We believe 
such a process is necessary because there may be situations in which a 
State is out of compliance with the requirements of its grant or of 
these regulations. For example, Section 704 of the Rehabilitation Act 
requires that, ``[t]o be eligible to receive financial assistance . . . 
, a State shall submit to the Administrator, and obtain approval of, a 
State plan developed and signed in accordance with [Section 704] . . . 
.'' WIOA added the requirement that the State plan (SPIL) must be 
signed by not less than 51 percent of the CILs in the State. If a State 
submits a SPIL that does not comply with the 51 percent signature 
requirement, ACL wants to ensure that a process exists whereby ACL can 
provide technical assistance to the State to help bring it into 
compliance.
    As indicated above, ACL may not provide any funds to a State that 
does not have an approved plan. ACL will work with States to resolve 
issues that may result in the disallowance or denial of funding. 
However, should these efforts be unsuccessful, we believe the State 
should have an appeals process through which it may appeal a decision 
to disallow or deny funds that would otherwise be provided to a State 
in accordance with an approved plan.
    Because we intend to create a uniform process for Part B and Part C 
grants, we also propose in these regulations to allow a State to file 
an appeal with the DAB concerning the four types of determinations set 
forth in 45 CFR part 16, appendix A, paragraph C, subparagraphs (a)(1) 
through (4). We further propose that the procedures in 45 CFR part 16 
apply to appeals by a State.
    We solicit comments about our proposed process and whether 
additional details need to be included in regulation. As indicated, we 
intend to utilize technical assistance to help resolve issues before 
they reach the appeals stage, and are interested in the role that other 
informal types of dispute resolution and mediation might play in 
compliance and enforcement, and how such dispute resolution and 
mediations might be conducted. We note that mediation is already 
included as an option for determinations that are appealed to the DAB, 
45 CFR 16.18.
    Because the processes we propose are new, particularly with regard 
to Part B funds, we are considering the issuance of sub-regulatory 
guidance to provide additional detail. Such an approach provides ACL 
and stakeholders with the opportunity to determine the processes that 
allow Centers and States to come into compliance quickly, while giving 
ACL the authority to take enforcement actions if the need arises.
Subpart B Independent Living Services
    Proposed Subpart B of proposed 45 CFR part 1329 sets forth 
requirements for the designated State entity (DSE), the Statewide 
Independent Living Council (SILC), and the State Plan for Independent 
Living (SPIL). It incorporates some of the regulatory language from 34 
CFR part 364 and Part 365. ACL proposes to simplify language and 
processes, to eliminate duplication of language specified in the Act, 
and to implement and clarify changes made by WIOA.
    Proposed Sec.  1329.10 discusses the authorized use of funds for 
independent living (IL) services as set forth in the Act. WIOA amended 
Section 713(b)(1) of the Act to add that a State may use funds to 
provide independent living services to individuals with significant 
disabilities, ``particularly those in unserved areas of the State.'' 
This section includes the new statutory requirement that that States 
may not use more than 30 percent of the funds received under Chapter 1, 
Part B, of the Rehabilitation Act for the SILC resource plan unless the 
approved State plan specifies a greater percentage is needed. This new 
requirement is also reflected in Sec.  1329.15(c)(3). We propose to add 
the phrase ``particularly to those in unserved areas of the State'' to 
the previous regulatory language at 34 CFR part 365.
    In proposed Sec.  1329.11 we describe the designated State entity 
(DSE) as the entity identified by the State and named in the State 
plan. We propose that the DSE must submit to the Administrator and 
receive approval of a State plan in order to receive funding under the 
Act.
    Proposed Sec.  1329.12 defines the role of the DSE as those 
services identified in Sections 704(c)(1) through (5) of the Act. These 
services were unchanged by WIOA. However, WIOA added Section 704(c)(5), 
stipulating that the DSE may not retain ``more than five (5) percent of 
the funds received by the State for any fiscal year under Subpart 2 for 
the performance of the services outlined in paragraphs (1) through 
(4).'' We propose in Sec.  1329.12 that the 5 percent administrative 
cap apply only to the Part B funds allocated to the State and to the 
State's required 10 percent Part B match. We further propose that the 
five (5) percent cap not apply to program income funds, including, but 
not limited to, payments provided to a State from the Social Security 
Administration for assisting Social Security beneficiaries and 
recipients to achieve employment outcomes.
    In implementing the new requirement, the proposed language in the 
rule adopts an interpretation that the ``funds received by the State'' 
include the Part B and State matching funds only, rather than applying 
the 5 percent cap on administrative funds allocated to the DSE to all 
federal funds, and other program income, supporting the Independent 
Living Services program. The cap limits the funds a DSE can retain for 
administrative purposes in order to ensure that the Part B (State 
Independent Living) funds are primarily used to support the State's 
independent living programs and give the SILC sufficient resources to 
carry out required duties. We think it is consistent with the 
administrative cap requirement that the required State match be treated 
on an equal basis with the Part B funds received under this section. 
This creates consistency in accounting for funds that are inextricably 
linked to the funds provided under the Part B program, and should be 
treated the same way as the federal award of Part B funds. However, 
because program income funds are ``received by the State'' through 
means other than an appropriation under Part B, we believe those funds 
should be treated differently and should not be included in the 
administrative cap.
    Proposed Sec.  1329.13 references the allotment of funds for IL 
services in accordance with statutory provisions. It also proposes that 
if a State plan designates more than one entity to administer the State 
plan, including a

[[Page 70735]]

State agency or unit of a State agency to administer IL services to 
individuals who are blind, then it is up to the State to determine and 
specify how the State's allotment will be distributed between the 
multiple entities, consistent with the State plan. We ask for comments 
on the likelihood of a State continuing to or deciding to designate 
more than one entity to share in the allotment.
    Proposed Sec.  1329.13(d) implements new Section 711A of the Act, 
which was added by WIOA. WIOA requires the Administrator to reserve 
between 1.8 percent and 2 percent of Part B appropriated funds to 
provide for training and technical assistance to SILCs. The proposed 
regulation authorizes the technical assistance to be provided directly 
or through grants, contracts, or cooperative agreements in accordance 
with Section 711A. ACL intends to provide further information about 
SILC technical assistance and training in any funding vehicle which 
makes funds available under Section 711A.
    Proposed Sec.  1329.14 describes the requirements for the 
establishment and maintenance of a Statewide Independent Living Council 
(SILC). We propose that a State must establish a SILC that meets the 
requirements of Section 705 of the Act, including composition and 
appointment of members, in order to receive funding.
    WIOA made a number of amendments to the composition of the SILC. 
WIOA removes the requirement for a director of a project carried out 
under Section 121 (the American Indian Vocational Rehabilitation 
Services Program) to be a required SILC member. WIOA added the 
requirement that, in States with one or more CILs run by or in 
conjunction with the governing bodies of American Indian tribes located 
on Federal or State reservations, at least one representative of the 
directors of such Centers serve as a voting member of the SILC. We ask 
for comments whether additional directions are needed to implement this 
provision consistent with the definition of a Center in Section 702 of 
the Act. For example, we seek information about what types of CIL-
Tribal relationships currently exist that would meet this definition, 
and to what extent might the current CIL-Tribal relationships meet the 
requirement of CILs ``run by'' or ``run in conjunction with'' the 
governing bodies of American Indian tribes located on Federal or State 
reservations.
    In proposed Sec.  1329.14(b), ACL proposes to further strengthen 
the independence of the SILC by requiring that the SILC be independent 
of and autonomous from the DSE and all other State agencies.
    Proposed Sec.  1329.15 describes the duties of the SILC with 
reference to Section 705 of the Act and incorporates several changes 
made by WIOA. We propose to clarify in Sec.  1329.15(b) that the SILC 
may provide contact information for the nearest appropriate CIL, and 
that sharing of such information does not constitute the direct 
provision of independent living services. WIOA amended Section 713 of 
the Act to add new language that limits the share of Part B funds that 
may be provided to the SILC resource plan. We propose in Sec.  
1329.15(c) to incorporate and clarify this change.
    The resource plan, as required under Section 705(e) of the Act, is 
a document that is separate from the SPIL and that describes how 
resources necessary and sufficient to carry out the functions of the 
SILC, will be made available. The WIOA amendment to Section 713 
provides that not more than 30 percent of the funds allocated to the 
State may be used for the resource plan, unless the SPIL specifies that 
a greater percentage is needed.
    Because Section 713 refers to funds received under Part B, we 
propose to include the State's required 10 percent Part B match in 
calculating the 30 percent cap to provide the resources in its resource 
plan.\5\ The cap on Part B funds being used for the resource plan 
ensures that there are sufficient financial resources remaining so that 
the State may achieve the goals and objectives for Part B funding 
identified in the SPIL. The State match of the Part B funds is included 
in the calculation of the 30 percent amount, because the Part B funds 
are not available in the absence of the State match. Treating the State 
match as part of the 30 percent also creates efficiency and consistency 
of accounting within the programs regarding treatment of the Part B 
State match. In addition, it aligns with current practice in other ACL-
administered grants, such as the Alzheimer's Disease Supportive 
Services Program, which include the State match in calculating the caps 
for administrative costs and the set asides for services required under 
the Public Health Services Act.
---------------------------------------------------------------------------

    \5\ The proposed regulation concerns the Part B funds, to which 
the ``30 percent'' specifically applies. Many SILCs receive Part B 
funds and/or Vocational Rehabilitation program Innovation and 
Expansion (I&E) funds, Social Security reimbursement funds, other 
federal funds, State matching funds or other public or private 
funds. Conversely, in several States SILCs receive no Part B funds 
at all, but are funded instead through I&E funds, primarily, and 
possibly other non-Part B federal and non-federal funds as well. Of 
the 32 states/territories that reported using I&E funds towards 
their SILC Resource Plan in the FY14-16 SPILs, 13 of these funded 
their SILC Resource Plan entirely with I&E.
---------------------------------------------------------------------------

    The proposed regulation states that the percentage allocated to the 
resource plan in each State is based on the amount of Part B funds 
actually needed (i.e., ``necessary and sufficient'') by each SILC to 
fulfill its statutory duties and authorities, rather than an 
expectation that 30 percent is automatically the baseline. Under WIOA, 
30 percent is the ceiling, unless the SPIL explicitly authorizes 
additional funding, and SILCs are not guaranteed the 30 percent. The 
language authorizing up to 30 percent of Part B funds to be used for 
the SILC resource plan will not automatically result in a greater share 
to be allocated to the SILCs, though it may present an opportunity for 
an increase. The actual percentage received will result from 
negotiations among the SILC and DSEs as mandated under the law, and, as 
indicated, may exceed 30 percent if the State specifies that a greater 
percentage is needed in the approved SPIL. These changes in the law 
should allow States the flexibility to choose an approach that works 
best for the IL network in the State.
    We have not defined what is meant by funds necessary and sufficient 
to carry out the functions of the SILC. We seek comments on whether a 
definition is necessary, including the process for making that 
determination.
    Proposed Sec.  1329.15(d) requires the SILC, as appropriate, to 
coordinate activities with other entities in the State that provide 
services similar to or complementary to independent living services. 
ACL recognizes that many SILCs, as well as many CILs, already 
coordinate activities with other entities, including Area Agencies on 
Aging, Protection and Advocacy programs, Long-Term Care Ombudsman 
Programs, Aging and Disability Resource Centers, and other 
organizations funded by ACL, other federal agencies, and States. Some 
SILCs may choose to coordinate with private entities providing similar 
services. We have chosen not to include a list of all such entities so 
as to provide SILCs with the maximum flexibility to work with entities 
in their state to serve individuals with significant disabilities.
    Proposed Sec.  1329.16 describes the authorities of the SILC to 
conduct discretionary activities as described in the State Plan. The 
proposed rule requires coordination with the CILs. Again, we have 
chosen not to define how a SILC should engage in coordination, 
recognizing that such efforts depend on the needs and requirements in 
each State.
    Proposed Sec.  1329.17 sets forth the requirements for the State 
Plan for

[[Page 70736]]

Independent Living (SPIL). The SPIL is a plan that identifies 
activities to achieve the State's specified independent living 
objectives and reflects the State's commitment to comply with 
applicable statutory and regulatory requirements. Each State must have 
a SPIL approved by the Administrator in order to receive both CIL and 
ILS program funds under the Act, and each SPIL must be reviewed ``not 
less than once every three years,'' Under Sec. 704(a)(3) of the Act.\6\ 
WIOA did not change the requirement that each SPIL be reviewed not less 
than once every three years. We propose that the State must submit the 
SPIL in the form, manner and time frame determined by the Administrator 
in accordance with Section 704.
---------------------------------------------------------------------------

    \6\ 29 U.S.C. 796c(a)(3).
---------------------------------------------------------------------------

    WIOA changed the requirements for joint development of the State 
Plan, and we propose to implement the new requirements in the proposed 
regulations. Section 704(a)(2) of the Act, 29 U.S.C. 796c(a)(2), was 
amended to require that the State plan be developed jointly by the 
chairperson of the SILC and the directors of the Centers for 
Independent Living in the State, after receiving public input from 
individuals with disabilities and other stakeholders throughout the 
State. While WIOA eliminated the required role of the designated State 
entity (formerly the designated State unit) in development of the State 
plan, it does not preclude DSE input in the development of the SPIL in 
collaboration with the SILC and CILs, and ACL would encourage such 
input. Proposed Sec.  1329.17(d) makes this change.
    WIOA also amended Section 704(a)(2) to require that the SPIL be 
signed by the chairperson of the SILC acting on behalf of and at the 
direction of the Council; the director of the DSE; and by not less than 
51 percent of the directors of the Centers for Independent Living in 
that State. We propose in Sec.  1329.17(d)(2)(iii), and (iv) to define 
a CIL for purposes of signing the SPIL as any consumer-controlled, 
community-based, cross-disability, nonresidential, private nonprofit 
agency for individuals with significant disabilities, regardless of 
funding source, that is designed and operated within a local community 
by individuals with disabilities; and provides an array of IL services, 
including, at a minimum, independent living core services and complies 
with the standards set out in Section 725(b) and provides and complies 
with the assurances in Section 725(c) of the Act and Sec.  1329.5 of 
these regulations. We seek comments on this approach.
    On a related issue regarding what type of entity constitutes a CIL 
for SPIL signature purposes, proposed Sec.  1329.17(d)(2)(iii) counts 
the ``legal entity'' that may receive more than one grant as the entity 
included in determining the 51 percent, rather than looking at 
individual grants. For example, an agency that receives multiple Part C 
grant awards serving different geographical locations and operated by 
one governing board and that has one director would constitute a single 
CIL for SPIL signature purposes, rather than labeling each Part C grant 
awarded to that agency a stand-alone Center for Independent Living. 
ACL's intent is that the proposed change will add clarity and simplify 
the signature process. We seek comments on this proposal as well, 
including whether this change should be implemented and the problems, 
if any, this interpretation would create. If the proposed language 
should be implemented in this instance, should it also be applied more 
broadly across the IL programs? What are the possible implications for 
the 704 Reporting process?
    Additional proposed regulatory language related to the SPIL in 
proposed Sec.  1329.17 primarily mirrors Section 704 of the Act and 
existing regulatory language in 34 CFR part 364, with technical 
changes, and requirements for effective communication and access for 
individuals with disabilities, as required under existing law, 
including Section 504 of the Rehabilitation Act and the Americans with 
Disabilities Act as amended.
Subpart C--Centers for Independent Living
    Subpart C of part 1329 of the regulations concerns the Centers for 
Independent Living. The proposed regulations are derived from and 
consolidate existing regulations in 34 CFR part 366. ACL proposes to 
simplify language and processes and to eliminate duplication of 
language. We invite comment on the need for additional clarity in these 
regulatory sections.
    Proposed Sec.  1329.20 refers to the definition of a CIL and 
eligible agency in Sec.  1329.4 of the regulations, and includes 
Rehabilitation Act citations regarding the Part C allotment to States 
and the funding formula to CILs.
    Proposed Sec.  1329.21 outlines the conditions CILs which currently 
receive Part C funds have to meet in order to receive continuation 
funding. It also addresses continuation funding requirements for States 
that receive Part C funds under Section 723 (currently, Minnesota and 
Massachusetts) and Section 724 (currently American Samoa) of the Act.
    Proposed Sec.  1329.22 discusses competitive awards to new Centers 
for Independent Living in accordance with the requirements of Sections 
722(d) of the Act, 29 U.S.C. 796f-1, 796f-2. It stipulates that such 
awards are provided to the most qualified applicant based on the 
selection criteria established by the Administrator consistent with 
Section 722(d) of the Act; subject to the availability of funds; and in 
accordance with the order of priorities in Section 722(e) of the Act 
and the State Plan's design for statewide network of Centers.
    Proposed Sec.  1329.23 addresses the periodic reviews of CILs to 
verify compliance with the standards and assurances in Section 725(b) 
and (c) of the Act and the grant terms and conditions, in accordance 
with Sections 706(c), 722(g) and 723(g) of the Act and guidance set 
forth by the Administrator.
    Proposed Sec.  1329.24 sets forth the requirement that the 
Administrator reserve between 1.8 percent and 2 percent of appropriated 
funds to provide, either directly or through grants, contracts, or 
cooperative agreements, training and technical assistance to CILs. The 
proposed regulation states that the training and technical assistance 
shall be in accordance with Section 721(b) of the Act. ACL intends to 
provide further guidance in any funding opportunity announcement 
related to training and technical assistance for CILs.

II. Regulatory Impact Analysis

A. Executive Order 12866

    Executive Order 12866 requires that regulations be drafted to 
ensure that they are consistent with the priorities and principles set 
forth in Executive Order 12866. The Department has determined that this 
rule is consistent with these priorities and principles. Executive 
Order 12866 encourages agencies, as appropriate, to provide the public 
with meaningful participation in the regulatory process. The rule 
implements the Workforce Innovation and Opportunity Act enacted on July 
22, 2014. In developing the final rule, we will consider input received 
from the public, including stakeholders.

B. Regulatory Flexibility Analysis

    The Secretary certifies under 5 U.S.C. 605(b), the Regulatory 
Flexibility Act (Pub. L. 96-354), that this regulation will not have a 
significant economic impact on a substantial number of small entities. 
The small entities that would be affected by these proposed regulations 
are States and Centers

[[Page 70737]]

receiving Federal funds under these programs. However, the regulations 
would not have a significant economic impact on States or Centers 
affected because the regulations would not impose excessive regulatory 
burdens or require unnecessary Federal supervision. The proposed 
regulations would implement statutory changes that impose new 
requirements to ensure the proper expenditure of program funds.
    The ILS Program provides formula grants to States for the purpose 
of funding a number of activities, directly and/or through grant or 
contractual arrangements. To be eligible for financial assistance, 
States are required to establish a designated State entity, State 
Independent Living Council and to submit an approvable three-year State 
Plan for Independent Living (SPIL) jointly developed by the chairperson 
of the SILC and the directors of the CILs in the State and signed by 
the chairperson of the SILC, not less than 51 percent of the directors 
of the CILs in the state, and the director of the designated State 
entity (DSE). The signature requirement of not less than 51 percent of 
CIL directors is a new requirement under WIOA. While this requirement 
does increase the amount of time a State may need to prepare an 
approvable SPIL, the statute provides no flexibility in implementing 
the new requirement. We are not able to estimate the amount of 
additional time the 51 percent signatory requirement will add to the 
SPIL development and approval process at the State level given that 
this is a new requirement. We are soliciting comments from affected 
States on this issue.
    The CILs program provides grants to consumer-controlled, community-
based, cross-disability, nonresidential, private nonprofit agencies for 
the provision of IL services to individuals with significant 
disabilities. WIOA expanded the previous definition of core IL 
services, specified in Section 7(17) of the Act, to include a fifth 
core service. Specifically, Centers funded by the program must now 
provide services that facilitate transition from nursing homes and 
other institutions to the community, provide assistance to those at 
risk of entering institutions, and facilitate transition of youth to 
postsecondary life. Currently there are 354 CILs that receive federal 
funding under this program.
    WIOA did not include any additional funding for the provision of 
this new fifth core service, but rather assumed that CILs would 
reallocate existing grant money to ensure the appropriate provision of 
all services required under Title VII of the Rehabilitation Act. Since 
successful transition is a process that requires sustained efforts and 
supports over a long-term period, and the CILs were aware of the 
changes under the law before officially tracking these efforts as core 
services, we do not currently have a clear picture of the impact of the 
changes under WIOA on the programs, though we are applying the closest 
applicable data to the estimates in this analysis. We hope to conduct a 
more throughout analysis when we are able to collect updated data and 
specifically request comments on the impact of the change.
    Analysis of Fiscal Year (FY) 2014 data available in the required 
annual performance reports (704 Report) indicates that CILs are 
providing services that are same or similar to the new fifth core 
service to one or more consumers. For purposes of this analysis, we 
looked at three specific categories of data currently captured in the 
704 Annual Performance Report that we believe most accurately match the 
three components of the fifth core service.\7\ We believe that the 
``Relocation from a Nursing Home or Institution'' category matches the 
first component of the new fifth core service: Facilitate transitions 
from nursing homes and other institutions to the community. We believe 
that the ``Community-Based Living'' category matches the second 
component of the new fifth core service: Provide assistance to those at 
risk of entering institutions. We believe the ``Youth/Transition 
Services'' category captures some relevant information for the third 
component of the new fifth core service: Facilitate transition of youth 
to postsecondary life. For FY 2014, 281 CILs report nursing home 
transition goals established for at least one consumer, 343 CILS report 
community-based living goals established for at least one consumer, and 
224 CILs report youth transition services provided to at least one 
consumer under the ``Youth/Transition Services'' category of the 704 
Annual Performance Report.
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    \7\ The current 704 Report was not designed to incorporate the 
fifth core service, so current data roughly corresponds with the 
categories.

----------------------------------------------------------------------------------------------------------------
                                                704 Annual performance  report     Percentage of
              5th Core service                             category                   CILs *      Number of CILS
----------------------------------------------------------------------------------------------------------------
Facilitate Transitions from Nursing Homes    Relocation from a Nursing Home or                83             281
 and Other Institutions to the Community.     Institution.
Provide Assistance to those at risk of       Community-Based Living.............              99             343
 entering institutions.
Facilitate Transition of Youth to            Youth/Transition Services..........              66             224
 Postsecondary Life.
----------------------------------------------------------------------------------------------------------------
* Percentage of CILs reporting a goal set for at least one consumer. The Youth/Transition Services sub-category
  represents the percentage of CILs reporting service provision to at least one consumer.

    Based on this analysis, we believe that many CILs currently have 
staff capable of providing the new fifth core service. However, due to 
the lack of additional funding, compliance with this statutory change 
may require CILs to re-examine their individual budgets, staffing 
plans, and consumer needs in order to reallocate funding to ensure the 
appropriate provisions of services as required by the Rehabilitation 
Act. We estimate that this analysis will require approximately 10-15 
hours of time for each CIL director. We proposed to use the upper end 
of the time estimate (15 hours) for purposes of estimating the total 
impact of this statutory requirement. Therefore, we estimate the amount 
of compliance analysis time for CIL directors to total 5,310 hours.
    To estimate the average hourly wage for a CIL director, we examined 
data compiled by the IL Net (a collaborative project of Independent 
Living Research Utilization (ILRU), the National Council on Independent 
Living (NCIL), and the Association of Programs for Rural Independent 
Living (APRIL)) and Bureau of Labor Statistics (BLS) data. According to 
a 2003 National Survey of Salaries and Work Experience of Center for 
Independent Living Directors, compiled by IL Net, the most common 
annual salary range for CIL directors in 2002 was between $41,000 and 
$45,000. This equates to an average hourly salary

[[Page 70738]]

range of $19.71 to $21.63. The Bureau of Labor Statistics (BLS) 
provided more recent salary information. According to 2012 BLS data, 
the average hourly wage for a social and community manager (a BLS 
occupational classification for managers who coordinate and supervise 
social service programs) was $28.83. We propose using the more recent 
BLS data to calculate the total estimated impact of this statutory 
requirement. In order to estimate the benefits and overhead associated 
with this hourly wage, we assume that these costs equal 100 percent of 
pre-tax wages, for a total hourly cost of $57.66. Therefore, we 
estimate the total dollar impact of this additional CIL director time 
to be $306,174.60.
    As noted previously, we have interpreted recent 704 Reports as 
indicating that many CILs currently have staff capable of providing the 
new fifth core service. However, as shown in the table above, a 
substantial number of CILs do not yet provide the newly required 
services and therefore would potentially incur costs in order to comply 
with this proposed rule.\8\ We would welcome comments from CILs as to 
their cost estimates of providing the statutorily-required fifth core 
service, so as to better inform our budgeting assumptions going 
forward.
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    \8\ Costs of new actions are included in a regulatory impact 
analysis even when budgets or grant amounts do not change. If CILs 
are reallocating grant funds to these newly required services, then 
they are doing some other worthwhile activity to a lesser extent, 
and the value of that alternative activity represents the 
opportunity cost of the new requirements.
---------------------------------------------------------------------------

    WIOA continues to require annual onsite compliance reviews of at 
least 15 percent of CILs that receive funding under section 722 of the 
Act and at least one-third of designated state units that receive funds 
under section 723 of the Act. The only change made by WIOA was to 
eliminate the requirement that CILs subject to compliance reviews be 
selected randomly. ACL is not proposing any changes to the compliance 
review process in this regulation. We do not anticipate any additional 
burden on grantees as a result of the compliance and review process, 
including the development of additional corrective action plans in 
response to such reviews. While ACL is proposing to establish a new 
appeals process for States where there is the imminent threat of 
termination or withholding of funds, we anticipate that the process 
will be utilized infrequently based on past experience of the 
Independent Living Services programs. The process is designed to 
provide additional protection against the termination of funding. 
Therefore, we do not expect that funds will be terminated more or less 
frequently.
    The allocation of 1.8 to 2 percent of Part B funds to training and 
technical assistance for SILCs is a new requirement under WIOA. We have 
limited available data regarding the impact on programs of this 
provision and therefore request comment on this aspect of the analysis.
    The 5 percent administrative cap on the DSE and 30 percent ceiling 
on the SILC resource plan (absent a different amount with justification 
in the SPIL) are also new statutory requirements. The NPRM adopts a 
narrow interpretation of the 5 percent administrative cap, limiting its 
application to ``Part B'' funds only, rather than applying the 5 
percent cap on administrative funds allocated to the DSE to all federal 
funds supporting the Independent Living Services. Additional funding 
sources include Social Security reimbursements, Vocational 
Rehabilitation program Innovation and Expansion (I&E) funds, and other 
public or private funds. The NPRM avoids a broader application of the 
cap in an attempt to avoid creating too great a disincentive to State 
agencies to serve as DSEs, given the more limited role of the DSEs in 
decision-making (as they no longer have a statutory role in the 
development of the SPIL). Our intent is to effectuate the limitation as 
required under the law, while helping ensure retention of DSEs for the 
Part B programs. We request comment on the impacts of this and other 
potential approaches.

C. Alternative Approaches

    Although we believe that the approach of the proposed rule best 
serves the purposes of the law, we considered a regulatory scheme 
requiring an alternative treatment of the Part B State matching funds. 
In the proposed rule, funds used to meet the required 10 percent state 
match are treated the same as funds ``received by the State'' under 
Part B.
    To better understand the implications of this decision, consider 
the five percent administrative cap on the DSE's use of Part B funds 
for administrative purposes in Sec.  1329.12(a)(5), for example. The 
proposed regulatory language mandates that WIOA's 5 percent cap on 
funds for DSE administrative expenses applies only to the Part B funds 
allocated to the State and to the State's required 10 percent Part B 
match. It does not apply to other program funds, including, but not 
limited to, payments provided to a State from the Social Security 
Administration for assisting Social Security beneficiaries and 
recipients to achieve employment outcomes, any other federal funds, or 
to other funds allocated by the State for IL purposes. Treating the 
issue in this way makes more Part B funds available for IL services and 
SPIL activities, while retaining sufficient funds to permit the DSE to 
accomplish its responsibilities and oversight requirements for ILS 
program funds under the law. One key advantage of this approach is 
minimizing disruptions to the ILS program from potential DSE decisions 
to relinquish the program due to insufficient resources to fulfill the 
WIOA-related fiscal oversight/administrative support responsibilities. 
For context, on average, 10-15 percent of DSE funding was spent on 
administrative costs prior to WIOA, though this must be considered 
along with the more limited role the DSE now plays under the law as 
amended.
    A narrower interpretation of this provision would be to apply it to 
Part B funds only, without the state match. Not only would this 
approach severely limit the funds available for fulfillment of DSE 
responsibilities under the law, it would also create some potential 
accounting burdens for programs, as State funds provided as a result of 
the ILS program's State matching requirement have traditionally been 
treated similarly to Federal Part B funds. It would also be 
inconsistent with prior accounting practices regarding the 10% State 
match for Part B funding, which existed prior to WIOA.
    The broadest interpretation would include all federal funds 
supporting the ILS program, including Social Security reimbursements 
and Innovation and Expansion funds from the Title I (Vocational 
Rehabilitation) program in the cap, which would broaden the pot of 
monies allocated for administrative costs of the DSE, which on its face 
seems counter to the change in the law capping the available percentage 
for these purposes at a relatively low amount.

D. Paperwork Reduction Act of 1995

    The Paperwork Reduction Act of 1995 (PRA), 44 U.S.C. 3501 et seq., 
requires certain actions before an agency can adopt or revise a 
collection of information. Under the PRA, we are required to provide 
notice in the Federal Register and solicit public comment before an 
information collection request is submitted to the Office of Management 
and Budget (OMB) for review and approval. In order to fairly evaluate 
whether an information collection should be approved by OMB, Section

[[Page 70739]]

3506(c)(2)(A) of the PRA requires that we solicit comments on new or 
revised information collections, which in the case of this rule, 
includes the new SPIL development requirements. The law is also 
intended to ensure that stakeholders can fully analyze the impact of 
the rule, which includes the associated reporting burden. We are not 
introducing any new information collections in this proposed rule 
however, it does revise process requirements. As discussed earlier, 
WIOA changed the requirements regarding SPIL development and who must 
sign the SPIL.
    This NPRM makes no revisions to the 704 reporting instruments, the 
Section 704 Annual Performance Report (Parts I and II). ACL is 
currently convening workgroups to recommend and implement changes to 
the 704 reporting instruments. These changes will be subject to the 
public comment process under the PRA before they are finalized.
1. State Plans for Independent Living (SPIL)
    The SPIL encompasses the activities planned by the State to achieve 
its specified independent living objectives and reflects the State's 
commitment to comply with all applicable statutory and regulatory 
requirements during the three years covered by the plan. A SPIL has 
already been approved in each State through fiscal year 2016. (State 
Plan for Independent Living and Center for Independent Living Programs, 
OMB Control Number 1820-0527.) The law remains unchanged that the SPIL 
continues to govern the provision of IL services in the State. Each 
State is expected to continue its support, including specified 
obligations, for an approved SPIL. Any amendments to the SPIL, 
reflecting either a change based on the WIOA amendments or any material 
change in State law, organization, policy, or agency operations that 
affect the administration of the SPIL, must be developed in accordance 
with Section 704(a)(2) of the Rehabilitation Act, as amended. SPIL 
amendments must be submitted by the State to ACL for approval.
    WIOA changed the content of the SPIL to the extent that the SPIL 
must describe how the State will provide independent living services 
that promote full access to community life for individuals with 
significant disabilities and describe strategies for providing 
independent living services on a statewide basis, to the greatest 
extent possible. The SPIL must also include a justification for any 
funding allocation of Part B funds above 30% for the SILC's resource 
plan. We solicit comments on any information we should consider 
regarding the potential impact of these changes.
    We anticipate that such changes may, on average, increase the 
amount of time to develop the SPIL by five (5) hours. There are 57 
SPILs, one for each state, the District of Columbia, and the six 
territories. Assuming the same hourly cost of $57.66 discussed in the 
Regulatory Impact Analysis above, we therefore estimate the cost of the 
changes to be $16,433.1 (57 SPILs x $57.66/hour x 5 hours). We solicit 
comments on any information we should consider regarding the potential 
impact of these changes.
2. 704 Reporting Requirements
    The Section 704 Annual Performance Report (Parts I and II) are the 
reporting instruments used to collect information required by the Act, 
as amended by WIOA, related to the use of Part B and Part C funds. 
Sections 704(m)(4)(D), 706(d), 704(c)(3) and (4), and 725(c) of the 
Rehabilitation Act, as amended, and these proposed regulations require 
CILs and DSEs to submit an annual performance report (704 report) to 
ACL to receive funding. This proposed regulation simply transfers the 
statutorily required annual reporting from the Department of Education 
Regulations to the Department of Health and Human Services (HHS) 
regulations. No additional reporting requirements are being added to 
the current OMB approved 704 report at this time. (Section 704 Annual 
Performance Report (Parts I and II), OMB Control Number 1820-0606).
    Prior to WIOA, an effort was underway to make formal changes to the 
704 reporting instruments. The passage of WIOA in July 2014 put those 
efforts on hold until late 2014. ACL is currently convening workgroups 
to recommend and implement changes to the 704 reporting instruments, 
and these changes will be subject to the public comment process under 
the PRA before they are finalized. Key steps in ACL's current and 
projected timeline on the process include an external workgroup 
webinar, held April 1, 2015, to share the status of 704 revision 
efforts and invite feedback on specific issues. It is ACL's goal to 
publish the revised reporting instruments for comment in Federal 
Register in April 2016. According to this projected timeline, in 
October 2017, programs will begin collecting information for the FY 18 
reporting period using the new 704 reporting instruments. In December 
2018, the FY18 704 reports reflecting the new reporting requirements 
will be due.
    Updating the 704 reporting instruments (Parts I and II) will 
require changes to include the new fifth core service under WIOA. We 
propose definitions for some of the terms in the fifth core service in 
this NPRM, and request comments on other areas that need more detail, 
as well as the burdens on programs of implementing this required core 
service. Assuming revised 704 reports include reporting on the new 
fifth core service, we estimate that providing the information will 
take approximately 1 hour per 704 Report. We estimate the total number 
of 704 Reports filed annually to be 412.\9\ Assuming the same hourly 
cost of $57.66 discussed in the regulatory impact analysis above, we 
estimate the cost of the changes to be $23,755.92. In summary, future 
proposed changes to the Section 704 Annual Performance Report (Parts I 
and II) will be published in the Federal Register in accordance with 
the requirements of the PRA. However, we seek comments now on these 
estimates.
---------------------------------------------------------------------------

    \9\ See, 79 FR 23960 (April 29, 2014); information collection 
approved June 4, 2014 through June 30, 2017. http://www.reginfo.gov/public/do/PRAViewICR?ref_nbr=201404-1820-001.
---------------------------------------------------------------------------

    Section 706 of the Rehabilitation Act continues to require reviews 
of CILs funded under Section 722 and reviews of state entities funded 
under Section 723 of the Rehabilitation Act. Therefore, ACL will 
continue to conduct compliance reviews and make final decisions on any 
proposed corrective actions and/or technical assistance related to 
compliance reviews of a CIL's grants.
    In Section 706(b), 29 U.S.C. 796d-1(b), WIOA requires the 
Administrator to develop and publish in the Federal Register new 
indicators of minimum compliance for Statewide Independent Living 
Councils. The SILC Standards and Indicators of minimum compliance are 
currently under development. It is ACL's goal to share a draft for 
informal stakeholder review by January 2016. The CIL indicators of 
minimum compliance (consistent with the standards set forth in Section 
725) are awaiting the addition of the fifth core service, which 
requires input in response to this proposed rule.

E. Unfunded Mandates Reform Act

    Section 202 of the Unfunded Mandates Reform Act of 1995 (Unfunded 
Mandates Act) requires that a covered agency prepare a budgetary impact 
statement before promulgating a rule that includes any Federal mandate 
that may result in expenditures by State, local, or Tribal governments, 
in the

[[Page 70740]]

aggregate, or by the private sector, of $100 million, adjusted for 
inflation, or more in any one year.
    If a covered agency must prepare a budgetary impact statement, 
Section 205 further requires that it select the most cost-effective and 
least burdensome alternatives that achieves the objectives of the rule 
and is consistent with the statutory requirements. In addition, Section 
203 requires a plan for informing and advising any small government 
entities that may be significantly or uniquely impacted by a rule.
    ACL has determined that this rulemaking does not result in the 
expenditure by State, local, and Tribal governments in the aggregate, 
or by the private sector of more than $100 million in any one year. The 
total FY 2015 budget for the Independent Living Services and Centers 
for Independent Living programs authorized under Chapter 1, Title VII 
of the Rehabilitation Act of 1973 (Rehabilitation Act or Act), as 
amended by WIOA (Pub. L. 113-128) is $101,183,000. We do not anticipate 
that the rule will impact the majority of the budget for these 
programs.

F. Congressional Review

    This proposed rule is not a major rule as defined in 5 U.S.C. 
804(2).

G. Assessment of Federal Regulations and Policies on Families

    Section 654 of the Treasury and General Government Appropriations 
Act of 1999 requires Federal agencies to determine whether a policy or 
regulation may affect family well-being. If the agency's conclusion is 
affirmative, then the agency must prepare an impact assessment 
addressing seven criteria specified in the law. These proposed 
regulations do not have an impact on family well-being as defined in 
the legislation.

H. Executive Order 13132

    Executive Order 13132 on ``federalism'' was signed August 4, 1999. 
The purposes of the Order are: ``. . . to guarantee the division of 
governmental responsibilities between the national government and the 
States that was intended by the Framers of the Constitution, to ensure 
that the principles of federalism established by the Framers guide the 
executive departments and agencies in the formulation and 
implementation of policies, and to further the policies of the Unfunded 
Mandates Reform Act . . .''
    The Department certifies that this rule does not have a substantial 
direct effect on States, on the relationship between the Federal 
government and the States, or on the distribution of power and 
responsibilities among the various levels of government.
    ACL is not aware of any specific State laws that would be preempted 
by the adoption of the regulation.

List of Subjects in 45 CFR 1329

    Centers for independent living, Compliance, Enforcement and 
appeals, Independent living services, Persons with disabilities, 
Reporting.

    Dated: June 24, 2015.
Kathy Greenlee,
Administrator, Administration for Community Living.
    Approved: July 17, 2015.
Sylvia M. Burwell,
Secretary, Department of Health and Human Services.

Regulatory Language

    For the reasons discussed in the preamble, the Administration for 
Community Living, Department of Health and Human Services, proposes to 
add part 1329 to title 45, chapter XIII, subchapter C, of the Code of 
Federal Regulations to read as follows:

PART 1329--STATE INDEPENDENT LIVING SERVICES AND CENTERS FOR 
INDEPENDENT LIVING

Subpart A--General Provisions
Sec.
1329.1 Programs covered.
1329.2 Purpose.
1329.3 Applicability of other regulations.
1329.4 Definitions.
1329.5 Indicators of minimum compliance.
1329.6 Reporting.
1329.7 Enforcement and appeals procedures.
Subpart B--Independent Living Services
1329.10 Authorized use of funds for Independent Living Services.
1329.11 DSE eligibility and application.
1329.12 Role of the designated State entity.
1329.13 Allotment of Federal funds for State independent living (IL) 
services.
1329.14 Establishment of SILC.
1329.15 Duties of the SILC.
1329.16 Authorities of the SILC.
1329.17 General requirements for a State plan.
Subpart C--Centers for Independent Living Program
1329.20 Centers for Independent Living (CIL) program.
1329.21 Continuation awards to entities eligible for assistance 
under the CIL program.
1329.22 Competitive awards to new Centers for Independent Living.
1329.23 Compliance reviews.
1329.24 Training and technical assistance to Centers for Independent 
Living.

    Authority: 29 U.S.C. 709; 42 U.S.C. 3515e.

Subpart A--General Provisions


Sec.  1329.1  Programs covered.

    This part includes general requirements applicable to the conduct 
of the following programs authorized under title VII, chapter 1 of the 
Rehabilitation Act of 1973, as amended:
    (a) Independent Living Services (ILS), title VII, chapter 1, part B 
(29 U.S.C. 796e to 796e-3).
    (b) The Centers for Independent Living (CIL), title VII, chapter 1, 
part C (29 U.S.C. 796f to 796f-6).


Sec.  1329.2  Purpose.

    The purpose of title VII of the Act is to promote a philosophy of 
independent living (IL), including a philosophy of consumer control, 
peer support, self-help, self-determination, equal access, and 
individual and system advocacy, in order to maximize the leadership, 
empowerment, independence, and productivity of individuals with 
disabilities, and to promote the integration and full inclusion of 
individuals with disabilities into the mainstream of American society 
by:
    (a) Providing financial assistance to States for providing, 
expanding, and improving the provision of IL services;
    (b) Providing financial assistance to develop and support statewide 
networks of Centers for Independent Living (Centers or CILs)
    (c) Providing financial assistance to States, with the goal of 
improving the independence of individuals with disabilities, for 
improving working relationships among--
    (1) State Independent Living Services;
    (2) Centers for Independent Living;
    (3) Statewide Independent Living Councils (SILCs or Councils) 
established under section 705 of the Act (29 U.S.C. 796d);
    (4) State vocational rehabilitation (VR) programs receiving 
assistance under Title 1 of the Act;
    (5) State programs of supported employment services receiving 
assistance under Title VI of the Act;
    (6) Client assistance programs (CAPs) receiving assistance under 
section 112 of the Act (29 U.S.C. 732);
    (7) Programs funded under other titles of the Act;
    (8) Programs funded under other Federal laws; and
    (9) Programs funded through non-Federal sources with the goal of 
improving the independence of individuals with disabilities.


Sec.  1329.3  Applicability of other regulations.

    Several other regulations apply to all activities under this part. 
These include but are not limited to:

[[Page 70741]]

    (a) 45 CFR part 16--Procedures of the Departmental Grant Appeals 
Board.
    (b) 45 CFR part 46--Protection of Human Subjects.
    (c) 45 CFR part 75--Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for HHS Award.
    (d) 45 CFR part 80--Nondiscrimination under Programs Receiving 
Federal Assistance through the Department of Health and Human 
Services--Effectuation of title VI of the Civil Rights Act of 1964.
    (e) 45 CFR part 81--Practice and Procedures--Practice and Procedure 
for Hearings under Part 80 of this title.
    (f) 45 CFR part 84--Nondiscrimination on the Basis of Handicap in 
Programs and Activities Receiving Federal Financial Assistance.
    (g) 45 CFR part 86--Nondiscrimination on the Basis of Sex in 
Education Programs and Activities Receiving or Benefiting from Federal 
Financial Assistance.
    (h) 45 CFR part 91--Nondiscrimination on the Basis of Age in 
Programs or Activities Receiving Federal Financial Assistance from HHS.
    (i) 45 CFR part 93--New restrictions on Lobbying.
    (j) 2 CFR part 376--Nonprocurement Debarment and Suspension
    (k) 2 CFR part 382--Requirements for Drug-Free Workplace (Financial 
Assistance)


Sec.  1329.4  Definitions.

    For the purposes of this part, the following definitions apply:
    Act means the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), 
as amended. Part B refers to part B of chapter 1 of title VII of the 
Act (29 U.S.C. 796e to 7963-3). Part C refers to part C of chapter 1 of 
title VII, of the Act (29 U.S.C. 796f to 796f-6).
    Administrative support services means services and supports 
provided by the designated State entity under Part B, and to Part C 
CILs administered by the State under section 723 of the Act in support 
of the goals, objectives and related activities under an approved State 
Plan for Independent Living (SPIL). Such support includes any costs 
associated with contracts and subgrants including fiscal and 
programmatic oversight, among other services.
    Administrator means the Administrator of the Administration for 
Community Living (ACL) of the Department of Health and Human Services.
    Advocacy means pleading an individual's cause or speaking or 
writing in support of an individual. To the extent permitted by State 
law or the rules of the agency before which an individual is appearing, 
a non-lawyer may engage in advocacy on behalf of another individual. 
Advocacy may--
    (1) Involve representing an individual--
    (i) Before private entities or organizations, government agencies 
(whether State, local, or Federal), or in a court of law (whether State 
or Federal); or
    (ii) In negotiations or mediation, in formal or informal 
administrative proceedings before government agencies (whether State, 
local, or Federal), or in legal proceedings in a court of law; and
    (2) Be on behalf of--
    (i) A single individual, in which case it is individual advocacy;
    (ii) A group or class of individuals, in which case it is systems 
advocacy; or
    (iii) Oneself, in which case it is self advocacy.
    Attendant care means a personal assistance service provided to an 
individual with significant disabilities in performing a variety of 
tasks required to meet essential personal needs in areas such as 
bathing, communicating, cooking, dressing, eating, homemaking, 
toileting, and transportation.
    Center for independent living (``Center'') means a consumer-
controlled, community-based, cross-disability, nonresidential, private 
nonprofit agency for individuals with significant disabilities 
(regardless of age or income) that--
    (1) Is designed and operated within a local community by 
individuals with disabilities;
    (2) Provides an array of IL services as defined in section 7(18) of 
the Act, including, at a minimum, independent living core services as 
defined in section 7(17); and
    (3) Complies with the standards set out in Section 725(b) and 
provides and complies with the assurances in section 725(c) of the Act 
and Sec.  1329.5 of these regulations.
    Completed their secondary education means, with respect to the 
Independent Living Core Services that facilitate the transition of 
youth who are individuals with significant disabilities in section 
7(17)(e)(iii) of the Act, that an eligible youth has received a 
diploma; has received a certificate of completion for high school or 
other equivalent document marking the completion of participation in 
high school; has reached age 18, even if he or she is still receiving 
services in accordance with an individualized education program 
developed under the IDEA; or has exceeded the age of eligibility for 
services under IDEA.
    Consumer control means, with respect to a Center or eligible 
agency, that the Center or eligible agency vests power and authority in 
individuals with disabilities, including individuals who are or have 
been recipients of IL services, in terms of the management, staffing, 
decision making, operation, and provision of services.
    Cross-disability means, with respect to services provided by a 
Center, that a Center provides services to individuals with all 
different types of significant disabilities, including individuals with 
significant disabilities who are members of unserved or underserved 
populations by programs under Title VII. Eligibility for services shall 
be determined by the Center, and shall not be based on the presence of 
any one or more specific significant disabilities.
    Designated State entity (DSE) is the State agency designated in the 
State Plan for Independent Living (SPIL) that acts on behalf of the 
state to provide the functions described in title VII, chapter 1 of the 
Act.
    Eligible agency means a consumer-controlled, community-based, 
cross-disability, nonresidential, private, nonprofit agency.
    Independent living core services mean, for purposes of services 
that are supported under the ILS or CIL programs--
    (1) Information and referral services;
    (2) Independent Living skills training;
    (3) Peer counseling, including cross-disability peer counseling;
    (4) Individual and systems advocacy;
    (5) Services that--
    (i) Facilitate the transition of individuals with significant 
disabilities from nursing homes and other institutions to home and 
community-based residences, with the requisite supports and services;
    (ii) Provide assistance to individuals with significant 
disabilities who are at risk of entering institutions so that the 
individuals may remain in the community; and
    (iii) Facilitate the transition of youth who are individuals with 
significant disabilities, who were eligible for individualized 
education programs under section 614(d) of the Individuals with 
Disabilities Education Act (20 U.S.C. 1414(d)), and who have completed 
their secondary education or otherwise left school, to postsecondary 
life.
    Independent living service includes the independent living core 
services and such other services as described in section 7(18) of the 
Act.
    Individual with a disability means an individual who--

[[Page 70742]]

    (1) Has a physical or mental impairment that substantially limits 
one or more major life activities of such individual;
    (2) Has a record of such an impairment; or
    (3) Is regarded as having such an impairment, as described in 
section 3(3) of the Americans with Disabilities Act of 1990 (42 U.S.C. 
12102(3)).
    Individual with a significant disability means an individual with a 
severe physical or mental impairment whose ability to function 
independently in the family or community or whose ability to obtain, 
maintain, or advance in employment is substantially limited and for 
whom the delivery of independent living services will improve the 
ability to function, continue functioning, or move toward functioning 
independently in the family or community or to continue in employment, 
respectively.
    Majority means more than 50 percent.
    Minority group means American Indian, Alaskan Native, Asian 
American, Black or African American (not of Hispanic origin), Hispanic 
or Latino (including persons of Mexican, Puerto Rican, Cuban, and 
Central or South American origin), and Native Hawaiian or other Pacific 
Islander.
    Nonresidential means, with respect to a Center, that the Center 
does not operate or manage housing or shelter for individuals as an IL 
service on either a temporary or long-term basis unless the housing or 
shelter is--
    (1) Incidental to the overall operation of the Center;
    (2) Necessary so that the individual may receive an IL service; and
    (3) Limited to a period not to exceed eight weeks during any six-
month period.
    Peer relationships mean relationships involving mutual support and 
assistance among individuals with significant disabilities who are 
actively pursuing IL goals.
    Peer role models mean individuals with significant disabilities 
whose achievements can serve as a positive example for other 
individuals with significant disabilities.
    Personal assistance services mean a range of services, paid or 
unpaid, provided by one or more persons, designed to assist an 
individual with a disability to perform daily living activities on or 
off the job that the individual would typically perform if the 
individual did not have a disability. These services must be designed 
to increase the individual's control in life and ability to perform 
everyday activities on or off the job and include but are not limited 
to: Getting up and ready for work or going out into the community 
(including bathing and dressing), cooking, cleaning or running errands.
    Service provider means a Center for Independent Living that 
receives financial assistance under Part B or C of chapter 1 of title 
VII of the Act; a designated State entity (DSE) that directly provides 
IL services to individuals with significant disabilities; or any other 
entity or individual that provides IL services under a grant or 
contract from the DSE pursuant to section 704(f) of the Act.
    State includes, in addition to each of the several States of the 
United States, the District of Columbia, the Commonwealth of Puerto 
Rico, the United States Virgin Islands, Guam, American Samoa, and the 
Commonwealth of the Northern Mariana Islands.
    State plan means the State Plan for Independent Living (SPIL) 
required under Section 704 of the Act.
    Unserved and underserved groups or populations include populations 
such as individuals from racial and ethnic minority backgrounds, 
disadvantaged individuals, individuals with limited English 
proficiency, and individuals from underserved geographic areas (rural 
or urban).
    Youth with a significant disability means an individual with a 
significant disability who-
    (1) Is not younger than 14 years of age; and
    (2) Is not older than 24 years of age.


Sec.  1329.5  Indicators of minimum compliance.

    To be eligible to receive funds under this part, a Center must 
comply with the standards in section 725(b) and assurances in section 
725(c) of the Act, with the indicators of minimum compliance 
established by the Administrator in accordance with section 706 of the 
Act, and the requirements contained in the terms and conditions of the 
grant award.


Sec.  1329.6  Reporting.

    (a) The Center must submit a performance report in a manner and at 
a time described by the Administrator, consistent with section 
704(m)(4)(D) of the Act, 29 U.S.C. 796c(m)(4)(d).
    (b) The DSE must submit a report in a manner and at a time 
described by the Administrator, consistent with section 704(c)(4) of 
the Act, 29 U.S.C. 796c(c)(4).
    (c) The Administrator may require such other reports as deemed 
necessary to carry out the responsibilities set forth in section 706 of 
the Act, 29 U.S.C. 796d-1.


Sec.  1329.7  Enforcement and appeals procedures.

    (a) Process for Centers for Independent Living. (1) If the Director 
of the Independent Living Administration (Director) determines that any 
Center receiving funds under this part, other than a Center that is 
provided Part C funding by the State under section 723 of the Act, is 
not in compliance with the standards and assurances in section 725 (b) 
and (c) of the Act and of this part, the Director must provide notice 
to the Center pursuant to guidance determined by the Administrator.
    (2) The Director may offer technical assistance to the Center to 
develop a corrective action plan or to take such other steps as are 
necessary to come into comply with the standards and assurances.
    (3) The Center may request a preliminary appeal to the Director in 
a form and manner determined by the Administrator. The Director shall 
review the appeal request and provide written notice of the 
determination within a timely manner.
    (4) Where there is an imminent threat of termination or withholding 
of funds, the Center may appeal an unfavorable decision by the Director 
to the Administrator within a time and manner established by the 
Administrator. The Administrator shall review the appeal request and 
provide written notice of the determination within a timely manner.
    (5) The Administrator may take steps to enforce a corrective action 
plan or to terminate funding if the Administrator determines that the 
Center remains out of compliance.
    (6) Written notice of the determination by the Administrator shall 
constitute a final determination for purposes of 45 CFR part 16. A 
Center that receives such notice, which would result in termination or 
withholding of funds, may appeal to the Departmental Appeals Board 
pursuant to the provisions of 45 CFR part 16.
    (7) A Center that is administered by the State under Section 723 of 
the Act must first exhaust any State process before going through the 
process described in paragraphs (a)(1) through (6) of this section.
    (b) Process for States. (1) If the Director of the Independent 
Living Administration determines that a State is out of compliance with 
sections 704, 705, 713 or other pertinent sections of the Act, the 
Director must provide notice to the State pursuant to guidance 
determined by the Administrator.
    (2) The Director may offer technical assistance to the State to 
develop a corrective action plan or to take such

[[Page 70743]]

other steps as are necessary to ensure that the State comes in to 
compliance.
    (3) Where there is an imminent threat of termination or withholding 
of funds, the State may seek an appeal consistent with the steps set 
forth in paragraphs (a)(3) and (4) of this section.
    (4) The Administrator may take steps to enforce statutory or 
regulatory requirements or to terminate funding if the Administrator 
determines that the State remains out of compliance.
    (5) Written notice of the determination by the Administrator shall 
constitute a final determination for purposes of 45 CFR part 16 with 
regard to the types of determinations set forth in 45 CFR part 16, 
appendix A, section C, paragraphs (a)(1) through (4). A State that 
receives such notice that would result in termination or withholding of 
funds may appeal to the Departmental Appeals Board pursuant to the 
provisions of 45 CFR part 16.

Subpart B--Independent Living Services


Sec.  1329.10  Authorized use of funds for Independent Living Services.

    (a) The State, after reserving funds under section 13(d) for SILC 
training and technical assistance:
    (1) May use funds received under this part to support the SILC 
resource plan described in section 705(e) of the Act but may not use 
more than 30 percent of the funds unless an approved SPIL so specifies 
pursuant to Sec.  1329.15(c);
    (2) May retain funds under section 704(c)(5) of the Act; and
    (3) Shall distribute the remainder of the funds received under this 
part in a manner consistent with the approved State plan for the 
activities described in paragraph (b) of this section.
    (b) The State may use the remainder of the funds described in 
paragraph (a)(3) of this section to--
    (1) Provide to individuals with significant disabilities the 
independent living (IL) services required by section 704(e) of the Act, 
particularly those in unserved areas of the State;
    (2) Demonstrate ways to expand and improve IL services;
    (3) Support the operation of Centers for Independent Living 
(Centers) that are in compliance with the standards and assurances in 
section 725 (b) and (c) of the Act;
    (4) Support activities to increase the capacities of public or 
nonprofit agencies and organizations and other entities to develop 
comprehensive approaches or systems for providing IL services;
    (5) Conduct studies and analyses, gather information, develop model 
policies and procedures, and present information, approaches, 
strategies, findings, conclusions, and recommendations to Federal, 
State, and local policy makers in order to enhance IL services for 
individuals with significant disabilities;
    (6) Train individuals with disabilities and individuals providing 
services to individuals with disabilities, and other persons regarding 
the IL philosophy; and
    (7) Provide outreach to populations that are unserved or 
underserved by programs under title VII of the Act, including minority 
groups and urban and rural populations.


Sec.  1329.11  DSE eligibility and application.

    (a) Any designated State entity (DSE) identified by the State 
pursuant to section 704(c) is eligible to apply for assistance under 
this part in accordance with section 704 of the Act, 29 U.S.C. 796c.
    (b) To receive financial assistance under Parts B and C of chapter 
1 of title VII, a State shall submit to the Administrator and obtain 
approval of a State plan that meets the requirements of section 704 of 
the Act, 29 U.S.C. 796c.
    (c) Allotments to states are determined in accordance with section 
711 of the Act, 29 U.S.C. 796e.


Sec.  1329.12  Role of the designated State entity.

    (a) A DSE that applies for and receives assistance must:
    (1) Receive, account for, and disburse funds received by the State 
under Part B and Part C in a State under section 723 of the Act based 
on the state plan;
    (2) Provide administrative support services for a program under 
Part B and for CILs under Part C when administered by the State under 
section 723 of the Act, 29 U.S.C. 796f-2;
    (3) Keep such records and afford such access to such records as the 
Administrator finds to be necessary with respect to the programs;
    (4) Submit such additional information or provide such assurances 
as the Administrator may require with respect to the programs; and
    (5) Retain not more than 5 percent of the funds received by the 
State for any fiscal year under Part B, for the performance of the 
services outlined in paragraphs (a)(1) through (4) of this section. For 
purposes of these regulations, the 5 percent cap on funds for 
administrative expenses applies only to the Part B funds allocated to 
the State and to the State's required 10 percent Part B match. It does 
not apply to other program income funds, including, but not limited to, 
payments provided to a State from the Social Security Administration 
for assisting Social Security beneficiaries and recipients to achieve 
employment outcomes, any other federal funds, or to other funds 
allocated by the State for IL purposes.
    (b) The DSE must also carry out its other responsibilities under 
the Act, including, but not limited to, arranging for the delivery of 
IL services under Part B of the Act, and for the necessary and 
sufficient resources needed by the SILC to fulfill its statutory duties 
and authorities, as authorized in the approved State Plan.
    (c) Fiscal and accounting requirements: The DSE must adopt fiscal 
control and fund accounting procedures as may be necessary to ensure 
the proper disbursement of and accounting for federal funds provided to 
CILs, SILCs, and/or other services providers under the ILS program. The 
DSE must comply with all applicable federal and state laws and 
regulations, including those in 45 CFR parts 75.


Sec.  1329.13  Allotment of Federal funds for State independent living 
(IL) services.

    (a) The allotment of Federal funds for State IL services for each 
State is computed in accordance with the requirements of section 
711(a)(1) of the Act.
    (b) Notwithstanding paragraph (a) of this section, the allotment of 
Federal funds for Guam, American Samoa, the United States Virgin 
Islands, and the Commonwealth of the Northern Mariana Islands is 
computed in accordance with section 711(a)(2) of the Act.
    (c) If the State plan designates a State agency or unit of a State 
agency to administer the part of the plan under which State IL services 
are provided for individuals who are blind and a separate or different 
State agency or unit of a State agency to administer the rest of the 
plan, the division of the State's allotment between these two units is 
a matter for State determination, consistent with the State plan.
    (d) The Administrator shall reserve between 1.8 percent and 2 
percent of appropriated funds to provide, either directly or through 
grants, contracts, or cooperative agreements, training and technical 
assistance to SILCs. Training and technical assistance funds shall be 
administered in accordance with section 711A of the Act.


Sec.  1329.14  Establishment of a SILC.

    (a) To be eligible to receive assistance under this part, each 
state shall establish and maintain a SILC that meets the requirements 
of section 705 of

[[Page 70744]]

the Act, including composition and appointment of members.
    (b) The SILC shall not be established as an entity within a State 
agency, including the DSE. The SILC shall be independent of and 
autonomous from the DSE and all other State agencies.


Sec.  1329.15  Duties of the SILC.

    (a) The duties of the SILC are those set forth in section 705(c), 
(d), and (e) of the Act.
    (1) The SILC shall develop of the SPIL in accordance with 
guidelines developed by the Administrator.
    (2) The SILC shall monitor, review and evaluate the implementation 
of the SPIL on a regular basis as determined by the SILC and set forth 
in the SPIL.
    (3) The SILC shall meet regularly, and ensure that such meetings 
are open to the public and sufficient advance notice of such meetings 
is provided;
    (4) The SILC shall submit to the Administrator such periodic 
reports as the Administrator may reasonably request, and keep such 
records, and afford such access to such records, as the Administrator 
finds necessary to verify the information in such reports; and
    (5) The SILC shall, as appropriate, coordinate activities with 
other entities in the State that provide services similar to or 
complementary to independent living services, such as entities that 
facilitate the provision of or provide long-term community-based 
services and supports.
    (b) In carrying out the duties under this section, the SILC may 
provide contact information for the nearest appropriate CIL. Sharing of 
such information shall not constitute the direct provision of 
independent living services as defined in section 705(c)(3) of the Act.
    (c) The SILC, in conjunction with the DSE, shall prepare a plan for 
the provision of resources, including staff and personnel that are 
necessary and sufficient to carry out the functions of the SILC.
    (1) The resource plan amount shall be commensurate, to the extent 
possible, with the estimated costs related to SILC fulfilment of its 
duties and authorities consistent with the approved State Plan.
    (2) Such resources may consist of Part B funds, State matching 
funds, Innovation and Expansion (I & E) funds authorized by 29 U.S.C. 
721(a)(18), and other public and private sources.
    (3) In accordance with Sec.  1329.10(a)(1), no more than 30 percent 
of the State's allocation of Part B and Part B State matching funds may 
be used to fund the resource plan, unless the approved SPIL provides 
that more than 30 percent is needed and justifies the greater 
percentage.
    (4) No conditions or requirements may be included in the SILC's 
resource plan that may compromise the independence of the SILC.
    (5) The SILC is responsible for the proper expenditure of funds and 
use of resources that it receives under the resource plan.
    (6) A description of the SILC's resource plan must be included in 
the State plan.
    (d) As appropriate, the SILC shall coordinate activities with other 
entities in the State that provide services similar to or complementary 
to independent living services, such as entities that facilitate the 
provision of or provide long-term community-based services and 
supports, to better serve individuals with significant disabilities and 
help achieve the purpose of section 701 of the Act.
    (e) The SILC shall, consistent with State law, supervise and 
evaluate its staff and other personnel as may be necessary to carry out 
its functions under this section.


Sec.  1329.16  Authorities of the SILC.

    (a) The SILC may conduct the following discretionary activities, as 
authorized and described in the approved State Plan:
    (1) Work with Centers for Independent Living to coordinate services 
with public and private entities to improve services provided to 
individuals with disabilities;
    (2) Conduct resource development activities to support the 
activities described in the approved SPIL and/or to support the 
provision of independent living services by Centers for Independent 
Living; and
    (3) Perform such other functions, consistent with the purpose of 
this part and comparable to other functions described in section 705(c) 
of the Act, as the Council determines to be appropriate and authorized 
in the approved SPIL.
    (b) In undertaking the foregoing duties and authorities, the SILC 
shall:
    (1) Coordinate with the CILs in order to avoid conflicting or 
overlapping activities within the CILs' established service areas;
    (2) Not engage in activities that constitute the direct provision 
of IL services to individuals, including the IL core services; and
    (3) Comply with Federal prohibitions against lobbying.


Sec.  1329.17  General requirements for a State plan.

    (a) The State may use funds received under Part B to support the 
Independent Living Services program and to meet its obligation under 
the Act, including the section 704(e) requirements that apply to the 
provision of independent living services. The State plan must stipulate 
that the State will provide IL services, directly and/or through grants 
and contracts, with Federal, State or other funds, and must describe 
how and to whom those funds will be disbursed for this purpose.
    (b) In order to receive financial assistance under this part, a 
State shall submit to the Administrator a State plan for independent 
living.
    (1) The State plan must contain, in the form prescribed by the 
Administrator, the information set forth in section 704 of the Act, 
including designation of an Agency to serve as the designated State 
entity, and such other information requested by the Administrator.
    (2) The State plan must contain the assurances set forth in section 
704(m) of the Act.
    (3) The State plan must be signed in accordance with the provisions 
of this part.
    (4) The State plan must be submitted 90 days before the completion 
date of the proceeding plan, and otherwise in the time frame and manner 
prescribed by the Administrator.
    (5) The State plan must be approved by the Administrator.
    (c) The State plan must cover a period of not more than three years 
and must be amended whenever necessary to reflect any material change 
in State law, organization, policy, or agency operations that affects 
the administration of the State plan.
    (d) The State plan must be jointly--
    (1) Developed by the chairperson of the SILC, and the directors of 
the CILs, after receiving public input from individuals with 
disabilities and other stakeholders throughout the State; and
    (2) Signed by the--
    (i) Chairperson of the SILC, acting on behalf of and at the 
direction of the SILC;
    (ii) The director of the DSE; and
    (iii) Not less than 51 percent of the directors of the CILs in the 
State. For purposes of this provision, if a legal entity that 
constitutes the ``CIL'' has multiple Part C grants considered as 
separate Centers for all other purposes, for SPIL signature purposes, 
it is only considered as one Center.
    (e) In States where DSE duties are shared with a separate State 
agency authorized to administer vocational rehabilitation (VR) services 
for individuals who are blind, the State plan must be signed by the:
    (1) Director of the DSE;

[[Page 70745]]

    (2) Director of the separate State agency authorized to provide VR 
services for individuals who are blind;
    (3) Chairperson of the SILC, acting on behalf of and at the 
direction of the SILC; and
    (4) Not less than 51 percent of the directors of the CILs in the 
State.
    (f) Periodic review and revision. The State plan must provide for 
the review and revision of the plan, not less than once every three 
years, to ensure the existence of appropriate planning, financial 
support and coordination, and other assistance to meet the requirements 
of section 704(a) of the Act.
    (g) Public input. (1) The public, including people with 
disabilities and other stakeholders throughout the State, must have an 
opportunity to comment on the State plan prior to its submission to the 
Administrator and on any revisions to the approved State plan. Meeting 
this standard for public input from individuals with disabilities 
requires providing reasonable modifications in policies, practices, or 
procedures; effective communication and appropriate auxiliary aids and 
services for individuals with disabilities, which may include the 
provision of qualified interpreters and information in alternate 
formats, free of charge.
    (2) The requirement in paragraph (g)(1) of this section may be met 
by holding public meetings before a preliminary draft State plan is 
prepared or by providing a preliminary draft State plan for comment at 
the public meetings, as appropriate.
    (3) To meet the public input standard of paragraph (g) of this 
section, a public meeting requires:
    (i) Accessible, appropriate and sufficient notice provided at least 
30 days prior to the public meeting through various media available to 
the general public, such as Web sites, newspapers and public service 
announcements, and through specific contacts with appropriate 
constituency groups.
    (ii) All notices, including notices published on a Web site, and 
other written materials provided at or prior to public meetings must be 
available upon request in accessible formats.
    (h) The State plan must identify those provisions that are State-
imposed requirements. For purposes of this section, a State-imposed 
requirement includes any State law, regulation, rule, or policy 
relating to the DSE's administration or operation of IL programs under 
Title VII of the Act, including any rule or policy implementing any 
Federal law, regulation, or guideline that is beyond what would be 
required to comply with the regulations in this part.
    (i) The State plan must address how the specific requirements in 
the Act and in paragraph (g) of this section will be met.

Subpart C--Centers for Independent Living Program


Sec.  1329.20  Centers for Independent Living (CIL) program.

    State allotments of Part C, funds shall be based on section 721(c) 
of the Act, and distributed to Centers within the State in accordance 
with the order of priorities in sections 722(e) and 723(e) of the Act.


Sec.  1329.21  Continuation awards to entities eligible for assistance 
under the CIL program.

    (a) In any State in which the Administrator has approved the State 
plan required by section 704 of the Act, an eligible agency funded 
under Part C in fiscal year 2015 may receive a continuation award in FY 
2016 or a succeeding fiscal year if the Center has--
    (1) Complied during the previous project year with the standards 
and assurances in section 725 of the Act and the terms and conditions 
of its grant; and
    (2) Submitted an approvable annual performance report demonstrating 
that the Center meets the indicators of minimum compliance referenced 
in in Sec.  1329.5.
    (b) If an eligible agency administers more than one Part C grant, 
each of the Center grants must meet the requirements of paragraph (a) 
of this section to receive a continuation award.
    (c) A designated State entity (DSE) that operated a Center in 
accordance with section 724(a) of the Act in fiscal year (FY) 2015 is 
eligible to continue receiving assistance under this part in FY 2016 or 
a succeeding fiscal year if, for the fiscal year for which assistance 
is sought--
    (1) No nonprofit private agency submits and obtains approval of an 
acceptable application under section 722 or 723 of the Act to operate a 
Center for that fiscal year before a date specified by the 
Administrator; or
    (2) After funding all applications so submitted and approved, the 
Administrator determines that funds remain available to provide that 
assistance.
    (d) A Center operated by the DSE under section 724(a) of the Act 
must comply with paragraphs (a), (b), and (c) of this section to 
receive continuation funding, except for the requirement that the 
Center be a private nonprofit agency.
    (e) A designated State entity that administered Part C funds and 
awarded grants directly to Centers within the State under section 723 
of the Act in fiscal year (FY) 2015 is eligible to continue receiving 
assistance under section 723 in FY 2016 or a succeeding fiscal year if 
the Administrator determines that the amount of State funding earmarked 
by the State to support the general operation of Centers during the 
preceding fiscal year equaled or exceeded the amount of federal funds 
allotted to the State under section 721(c) of the Act for that fiscal 
year.
    (f) A DSE may apply to administer Part C funds under section 723 in 
the time and in the manner that the Administrator may require, 
consistent with section 723(a)(1)(A) of the Act.
    (g) Grants awarded by the DSE under section 723 of the Act are 
subject to the requirements of paragraphs (a) and (b) of this section 
and the order of priorities in section 723(e) of the Act, unless the 
DSE and the SILC jointly agree on another order of priorities.


Sec.  1329.22  Competitive awards to new Centers for Independent 
Living.

    (a) Subject to the availability of funds and in accordance with the 
order of priorities in section 722(e) of the Act and the State Plan's 
design for the statewide network of Centers, an eligible agency may 
receive Part C funding as a new Center for Independent Living in a 
State, if the eligible agency:
    (1) Submits to the Administrator an application at the time and 
manner required in the funding opportunity announcement (FOA) issued by 
the Administrator which contains the information and meets the 
selection criteria established by the Administrator in accordance with 
section 722(d) of the Act;
    (2) Proposes to serve a geographic area that has been designated as 
a priority unserved or underserved in the State Plan for Independent 
Living and that is not served by an existing Part C-funded Center; and
    (3) Is determined by the Administrator to be the most qualified 
applicant to serve the designated priority area consistent with the 
State plan setting forth the design of the State for establishing a 
statewide network of Centers for independent living.
    (b) An existing Part C-funded Center may apply to serve the 
designated unserved or underserved areas if it proposes the 
establishment of a separate and complete Center (except that the 
governing board of the existing center may serve as the governing board 
of the new Center) at a different geographical

[[Page 70746]]

location, consistent with the requirements in the FOA.
    (c) An eligible agency located in a bordering State may be eligible 
for a new CIL award if the Administrator determines, based on the 
submitted application, that the agency:
    (1) Is the most qualified applicant meeting the requirements in 
paragraphs (a) and (b) of this section; and
    (2) Has the expertise and resources necessary to serve individuals 
with significant disabilities who reside in the bordering State, in 
accordance with the requirements of the Act and these regulations.
    (d) If there are insufficient funds under the State's allotment to 
fund a new Center, the Administrator may--
    (1) Use the excess funds in the State to assist existing Centers 
consistent with the State plan; or
    (2) Reallot these funds in accordance with section 721(d) of the 
Act.


Sec.  1329.23  Compliance reviews.

    (a) Centers receiving Part C funding shall be subject to periodic 
reviews, including on-site reviews, in accordance with sections 706(c), 
722(g), and 723(g) of the Act and guidance set forth by the 
Administrator, to verify compliance with the standards and assurances 
in section 725(b) and (c) of the Act and the grant terms and 
conditions. The Administrator shall annually conduct reviews of at 
least 15 percent of the Centers.
    (b) A copy of each review under this section shall be provided, in 
the case of section 723(g), by the director of the DSE to the 
Administrator and to the SILC, and in the case of section 722(g), by 
the Administrator to the SILC and the DSE.


Sec.  1329.24  Training and technical assistance to Centers for 
Independent Living.

    The Administrator shall reserve between 1.8% and 2% of appropriated 
funds to provide training and technical assistance to Centers through 
grants, contracts or cooperative agreements, consistent with section 
721(b) of the Act. The training and technical assistance funds shall be 
administered in accordance with section 721(b) of the Act.

    Editorial Note: This document was received for publication by 
the Office of the Federal Register on November 9, 2015.

[FR Doc. 2015-28888 Filed 11-13-15; 8:45 am]
 BILLING CODE 4150-04-P