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Originally Processed With FOIA(s): FOIA Number: S S FOIA MARKER This is not a textual record. This is used as an administrative marker by the George Bush Presidential Library Staff. Record Group/Collection: Donated Historical Materials Collection/Office of Origin: Frieden, Lex, Collection Series: Government Records Subseries: Federal Laws OA/ID Number: 52001 Folder ID Number: 52001-006 Folder Title: "1978 Amendments (Public Law 95-602) to Rehabilitation Act of 1973" Stack: Row: Section: Shelf: Position: G 5 2 1 1 1978 AMENDMENTS (Public Law 95-602) TO REHABILITATION ACT OF 1973 REHABILITATION COMPREHENSIVE SERVICES DEVELOPMENTAL DISABILITIES THE STATE OFFEREAS OF TEXAS TEXAS REHABILITATION COMMISSION CHANGES IN EXISTING LAW MADE BY H.R. 12467, AS PASSED BY HOUSE AND SENATE REHABILITATION ACT OF 1973 COMMITTEE ON EDUCATION AND LABOR U.S. HOUSE OF REPRESENTATIVES Additional copies available in Office of General Counsel, Texas Rehabilitation Commission. NOTE Changes in existing law made by the bill, as passed, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman). REHABILITATION ACT OF 1973 TABLE OF CONTENTS Sec. 2. Declaration of purpose. Sec. 3. Rehabilitation Services Administration. Sec. 4. Advance funding. Sec. 5. Joint funding. Sec. 6. Consolidated rehabilitation plan. Sec. 7. Definitions. Sec. 8. Allotment percentage. Sec. 9. Audit. Sec. 10. Nonduplication. Sec. 11. Application of other laws. Sec. 12. Administration of the Act. Sec. 13. Reports. Sec. 14. Evaluation. Sec. 15. Information clearinghouse. Sec. 16. Transfer of funds. TITLE I-VOCATIONAL REHABILITATION SERVICES PART A-GENERAL PROVISIONS Sec. 100. Declaration of purpose; authorization of appropriations. Sec. 101. State plans. Sec. 102. Individualized written rehabilitation program. Sec. 103. Scope of vocational rehabilitation services. Sec. 104. Non-Federal share for construction. PART B-BASIC VOCATIONAL REHABILITATION SERVICES Sec. 110. State allotments. Sec. 111. Payments to States. Sec. 112. Client assistance. PART C-INNOVATION AND EXPANSION GRANTS Sec. 120. State allotments. Sec. 121. Payments to States. [PART D-COMPREHENSIVE SERVICE NEEDS [Sec. 130. Special study.] PART D-AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES Sec. 130. Vocational rehabilitation services grants. Sec. 131. Evaluation. [TITLE II-RESEARCH AND TRAINING [Sec. 200. Declaration of purpose. [Sec. 201. Authorization of appropriations. [Sec. 202. Research. [Sec. 203. Training. [Sec. 204. Reports.] 2 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 TITLE II-RESEARCH Sec. 200. Declaration of purpose. Sec. 201. Authorization of appropriations. Sec. 202. National Institute of Handicapped Research. Sec. 203. Interagency committee. Sec. 204. Research. TITLE III-[SPECIAL FEDERAL RESPONSIBILITIES] SUPPLEMENTARY SERVICES AND FACILITIES PART A-MISCELLANEOUS PROGRAMS Sec. 300. Declaration of purpose. Sec. 301. Grants for construction of rehabilitation facilities. Sec. 302. Vocational training services for handicapped individuals. Sec. 303. [Mortgage insurance for rehabilitation facilities.] Loan guarantees for rehabilita- tion facilities. Sec. 304. [Special projects and demonstrations.] Training. Sec. 305. [National Center for Deaf-Blind Youths and Adults.] Comprehensive rehabilitation centers. Sec. 306. General grant and contract requirements. PART B-SPECIAL PROJECTS Sec. 310. Authorization of appropriations. Sec. 311. Special demonstration programs. Sec. 312. Migratory workers. Sec. 313. Helen Keller National Center. Sec. 314. Reader services for the blind. Sec. 315. Interpreter services for the deaf. Sec. 316. Special Recreational Programs. [TITLE IV-ADMINISTRATION AND PROGRAM AND PROJECT EVALUATION [Sec. 400. Administration. [Sec. 401. Program and project evaluation. [Sec. 402. Obtaining information from Federal agencies. [Sec. 403. Authorization of appropriations. [Sec. 404. Reports. [Sec. 405. Secretarial responsibility. [Sec. 406. Sheltered workshop study. [Sec. 407. State allocation study.] TITLE IV-NATIONAL COUNCIL ON THE HANDICAPPED Sec. 400. Establishment of National Council on the Handicapped. Sec. 401. Duties of National Council. Sec. 402. Compensation of National Council members. Sec. 403. Staff of National Council. Sec. 404. Administrative powers of National Council. Sec. 405. Authorization of appropriations. TITLE V-MISCELLANEOUS Sec. 500. Effect on existing laws. Sec. 501. Employment of handicapped individuals. Sec. 502. Architectural and Transportation Barriers Compliance Board. Sec. 503. Employment under Federal contracts. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 3 Sec. 504. Nondiscrimination under Federal grants. Sec. 505. Remedies and attorneys' fees. Sec. 506. Secretarial responsibilities. Sec. 507. Interagency Coordinating Council. TITLE VI-EMPLOYMENT OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS Sec. 601. Short title. PART A-COMMUNITY SERVICE EMPLOYMENT PROGRAMS FOR HANDICAPPED INDIVIDUALS Sec. 611. Establishment of program. Sec. 612. Administration. Sec. 613. Participants not Federal employees. Sec. 614. Interagency cooperation. Sec. 615. Equitable distribution of assistance. Sec. 616. Definitions. Sec. 617. Authorization of appropriations. PART B-PROJECTS WITH INDUSTRY AND BUSINESS OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS Sec. 621. Projects with industry. Sec. 622. Business opportunities for handicapped individuals. Sec. 623. Authorization of appropriations. TITLE VII-COMPREHENSIVE SERVICES FOR INDEPENDENT LIVING PART A-COMPREHENSIVE SERVICES Sec. 701. Purpose. Sec. 702. Eligibility. Sec. 703. Allotments. Sec. 704. Payments to States from allotments. Sec. 705. State plans. PART B-INDEPENDENT LIVING CENTERS Sec. 711. Grant program established. PART C-INDEPENDENT LIVING SERVICES FOR OLDER BLIND INDIVIDUALS Sec. 721. Service program established. PART D-GENERAL PROVISIONS Sec. 731. Protection and advocacy of individual rights. Sec. 732. Employment of handicapped individuals. PART E-AUTHORIZATIONS Sec. 731.* Authorization of appropriations. [DECLARATION OF PURPOSE [SEC. 2. The purpose of this Act is to provide a statutory basis for the Rehabilitation Services Administration, and to authorize programs to- (1) develop and implement comprehensive and continuing State plans for meeting the current and future needs for providing vocational rehabilitation services to handi- capped individuals and to provide such services for the benefit of such individuals, serv- ing first those with the most severe handicaps, so that they may prepare for and engage in gainful employment; (2) evaluate the rehabilitation potential of handicapped individuals; (3) conduct a study to develop methods of providing rehabilitation services to meet the current and future needs of handicapped individuals for whom a vocational goal is Note: There are two sections numbered 731. 4 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 not possible or feasible SO that they may improve their ability to live with greater inde- pendence and self-sufficiency; (4) assist in the construction and improvement of rehabilitation facilities; (5) develop new and innovative methods of applying the most advanced medical technology, scientific achievement, and psychological and social knowledge to solve re- habilitation problems and develop new and innovative methods of providing rehabilita- tion services to handicapped individuals through research, special projects, and demonstrations; (6) initiate and expand services to groups of handicapped individuals (including those who are homebound or institutionalized) who have been underserved in the past; (7) conduct various studies and experiments to focus on long neglected problem areas; (8) promote and expand employment opportunities in the public and private sectors for handicapped individuals and to place such individuals in employment; (9) establish client assistance pilot projects; (10) provide assistance for the purpose of increasing the number of rehabilitation personnel and increasing their skills through training; and (11) evaluate existing approaches to architectural and transportation barriers con- fronting handicapped individuals, develop new such approaches, enforce statutory and regulatory standards and requirements regarding barrier-free construction of public facilities and study and develop solutions to existing architectural and transportation barriers impeding handicapped individuals.] DECLARATION OF PURPOSE SEC. 2. The purpose of this Act is to develop and implement, through research, training, services, and the guarantee of equal opportunity, comprehensive and coordinated programs of vocational rehabilitation and independent living. REHABILITATION SERVICES ADMINISTRATION SEC. 3. (a) There is established in the Office of the Secretary a Rehabilitation Services Administration which shall be headed by a Commissioner (hereinafter in this Act referred to as the "Commissioner") appointed by the President by and with the advice and consent of the Senate. Except for titles IV and V and Part A of title VI and as otherwise specifically provided in this Act, such Administration shall be the principal agency, and the Commissioner shall be the principal officer, of such Department for carrying out this Act. In the performance of his functions, the Commissioner shall be directly responsible to the Secretary or to the Under Secretary or an appropriate Assistant Secretary of such Department, as designated by the Secretary. The functions of the Commissioner shall not be delegated to any officer not directly responsible, both with respect to program operation and administration, to the Com- missioner. Any reference in this Act to duties to be carried out by the Commissioner shall be considered to be a reference to duties to be carried out by the Secretary acting through the Commissioner. In carrying out any of his functions under this Act, the Commissioner shall be guided by general policies of the National Council on Handicapped established under title IV of this Act. [(b) The Secretary, through the Commissioner in coordination with other appropriate programs in the Department of Health, Education, and Welfare, in carrying out research under this Act shall establish the expertise and technological competence to, and shall, in con- sultation with, the National Science Foundation and the National Academy of Sciences de- velop and support, and stimulate the development and utilization (including production and distribution of new and existing devices) of, innovative methods of applying advanced medical technology, scientific achievement, and psychological and social knowledge to solve rehabilita- tion problems, and be responsible for carrying out the activities described in section 202 (b) (2).] [(c)] (b) The Secretary shall take whatever action is necessary to insure that funds appropriated pursuant to this Act, as well as unexpended appropriations for carrying out the Vocational Rehabilitation Act (29 U.S.C. 31-42), are expended only for the programs, per- sonnel, and administration of programs carried out under this Act. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 5 ADVANCE FUNDING SEC. 4. (a) For the purpose of affording adequate notice of funding available under this Act, appropriations under this Act are authorized to be included in the appropriation Act for the fiscal year preceding the fiscal year for which they are available for obligation. (b) In order to effect a transition to the advance funding method of timing appropriation action, the authority provided by subsection (a) of this section shall apply notwithstanding that its initial application will result in the enactment in the same year (whether in the same appropriation Act or otherwise) of two separate appropriations, one for the then current fiscal year and one for the succeeding fiscal year. JOINT FUNDING SEC. 5. Pursuant to regulations prescribed by the President, and to the extent consistent with the other provisions of this Act, where funds are provided for a single project by more than one Federal agency to an agency or organization assisted under this Act, the Federal agency principally involved may be designated to act for all in administering the funds pro- vided, and, in such cases, a single non-Federal share requirement may be established accord- ing to the proportion of funds advanced by each agency. When the principal agency involved is the Rehabilitation Services Administration, it may waive any grant or contract requirement (as defined by such regulations) under or pursuant to any law other than this Act, which requirement is inconsistent with the similar requirements of the administering agency under or pursuant to this Act. CONSOLIDATED REHABILITATION PLAN SEC. 6. (a) In order to secure increased flexibility to respond to the varying needs and local conditions within the State, and in order to permit more effective and interrelated plan- ning and operation of its rehabilitation programs, the State may submit a consolidated re- habilitation plan which includes the State's plan under section 101 (a) of this Act and its program for persons with developmental disabilities under the Development Disabilities Services and Facilities Construction Amendments of 1970 Provided, That the agency admin- istering such State's program under such Act concurs in the submission of such a consolidated rehabilitation plan. (b) Such a consolidated rehabilitation plan must comply with, and be administered in accordance with, all the requirements of this Act and the Developmental Disabilities Services and Facilities Construction Amendments of 1970. If the Secretary finds that all such require- ments are satisfied, he may approve the plan to serve in all respects as the substitute for the separate plans which would otherwise be required with respect to each of the programs in- cluded therein, or he may advise the State to submit separate plans for such programs. (c) Findings of noncompliance in the administration of an approved consolidated re- habilitation plan, and any reduction, suspensions, or terminations of assistance as a result thereof, shall be carried out in accordance with the procedures set forth in subsection (c) and (d) of section 101 of this Act. DEFINITIONS SEC. 7. For the purposes of this Act: (1) The term "construction" means the construction of new buildings, the acquisition, expansion, remodeling, alteration, and renovation of existing buildings, and initial equipment of such buildings, and the term "cost of construction" includes architects' fees and acquisition cf land in connection with construction but does not include the cost of offsite improvements. (2) The term "criminal act" means any crime, including an act, omission, or possession under the laws of the United States or a State or unit of general local government which poses a substantial threat of personal injury, notwithstanding that by reason of age, insanity, in- toxication or otherwise the person engaging in the act, omission, or possession was legally incapable of committing a crime. (3) The term 'designated State unit' means (A) any State agency unit required under section 101 (a) (2) (A) of this Act, or (B) in cases in which no such unit is so required, the State agency described in section 101 (a) (B) (i) of this Act. [(3)] (4) The term "establishment of a rehabilitation facility" means the acquisition, expansion, remodeling, or alteration of existing buildings necessary to adapt them to rehabili- tation facility purposes or to increase their effectiveness for such purposes (subject, however, 6 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 to such limitations as the Secretary may determine, in accordance with regulations he shall prescribe, in order to prevent impairment of the objectives of, or duplication of, other Fed- eral laws providing Federal assistance in the construction of such facilities), [and the initial equipment for such buildings, and may include the initial staffing thereof.] and may include such additional equipment and staffing as the Commissioner considers appropriate. [(4)] (5) The term "evaluation of rehabilitation potential" means, as appropriate in each case: (A) a preliminary diagnostic study to determine that the individual has a substantial handicap to employment, and that vocational rehabilitation services are needed; (B) a diagnostic study consisting of a comprehensive evaluation of pertinent medical, psychiatric, psychological, vocational, educational, cultural, social, and environmental factors which bear on the individual's handicap to employment and rehabilitation potential including, to the degree needed, an evaluation of the individual's personality, intelligence level, educa- tional achievements, work experience, vocational aptitudes and interests, personal and social adjustments, employment opportunities, and other pertinent data helpful in determining the nature and scope of services needed; (C) an appraisal of the individual's patterns of work behavior and ability to acquire occupational skill, and to develop work attitudes, work habits, work tolerance, and social and behavior patterns suitable for successful job performance, including the utilization of work, simulated or real, to assess and develop the individual's capacities to perform adequately in a work environment; (D) any other goods or services provided for the purpose of ascertaining the nature of the handicap and whether it may reasonably be expected that the individual can benefit from vocational rehabilitation services; (E) referral; (F) the administration of these evaluation services; and (G) (i) the provision of vocational rehabilitation services to any individual for a total period not in excess of eighteen months for the purpose of determining whether such individ- ual is a handicapped individual, a handicapped individual for whom a vocational goal is not possible or feasible (as determined in accordance with section 102(c)), or neither such in- dividual; and (ii) an assessment, at least once in every ninety-day period during which such services are provided, of the results of the provision of such services to an individual to ascer- tain whether any of the determinations described in subclause (i) may be made. [(5)] (6) The term "Federal share" means 80 per centum, except that it shall mean 90 per centum for the purposes of part C of title I of this Act and as specifically set forth in sec- tion 301 (b) (3) Provided, That with respect to payments pursuant to part B of title I of this Act to any State which are used to meet the costs of construction of those rehabilitation facilities identified in section 103(b) (2) in such State, the Federal share shall be the per- centages determined in accordance with the provisions of section 301 (b) (3) applicable with respect to that State and that, for the purpose of determining the non-Federal share with re- spect to any State, expenditures by a political subdivision thereof by a local agency shall, sub- ject to such limitations and conditions as the Secretary shall by regulation prescribe, be re- garded as expenditures by such State. [(6)] (7) [The term] (A) Except as otherwise provided in subparagraph (B), the term "handicapped individual" means any individual who [(A)] (i) has a physical or mental dis- ability which for such individual constitutes or results in a substantial handicap to employ- ment and [(B)] (ii) can reasonably be expected to benefit in terms of employability from vocational rehabilitation services provided pursuant to titles I and III of this Act. [For the purposes of titles IV and V of this Act, such term means any person who (A) has a physical or mental impairment which substantially limits one or more of such person's major life activities, (B) has a record of such an impairment, or (C) is regarded as having such an impairment.] (B) Subject to the second sentence of this subparagraph, the term 'handicapped in- dividual' means, for purposes of titles IV and V of this Act, any person who (i) has a physical or mental impairment which substantially limits one or more of such person's major life activities, (ii) has a record of such an impairment, or (iii) is regarded as having such an impairment. For purposes of sections 503 and 504 as such sections relate to employment, such term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents such individual from performing the duties of the job in question or REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 7 whose employment, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others. [(7)] (8) The term "local agency" means an agency of a unit of general local govern- ment or of an Indian tribal organization (or combination of such units or organizations) which has an agreement with the State agency designated pursuant to section 101 (a) (1) to conduct a vocational rehabilitation program under the supervision of such State agency in accordance with the State plan approved under section 101. Nothing in the preceding sentence of this paragraph or in section 101 shall be construed to prevent the local agency from utilizing another local public or nonprofit agency to provide vocational rehabilitation services: Pro- vided, That such an arrangement is made part of the agreement specified in this paragraph. [(8)] (9) The term "nonprofit", when used with respect to a rehabilitation facility, means a rehabilitation facility owned and operated by a corporation or association, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private share- holder or individual and the income of which is exempt from taxation under section 501 (c) (3) of the Internal Revenue Code of 1954. [(9)] (10) The term "public safety officer" means a person serving the United States or a State or unit of general local government, with or without compensation, in any activity pertaining to— (A) the enforcement of the criminal laws, including highway patrol, or the main- tenance of civil peace by the National Guard or the Armed Forces, (B) a correctional program, facility, or institution where the activity is potentially dangerous because of contact with criminal suspects, defendants, prisoners, probationers, or parolees, (C) a court having criminal or juvenile delinquent jurisdiction where the activity is potentially dangerous because of contact with criminal suspects, defendants, prisoners, probationers, or parolees, or (D) firefighting, fire prevention, or emergency rescue missions. [(10)] (11) The term "rehabilitation facility" means a facility which is operated for the primary purpose of providing vocational rehabilitation services to handicapped individ- uals, and which provides single or in combination one or more of the following services for handicapped individuals: (A) vocational rehabilitation services which shall include, under one management, medical, psychiatric, psychological, social, and vocational services, (B) test- ing, fitting, or training in the use of prosthetic and orthotic devices, (C) prevocational condi- tioning or recreational therapy, (D) physical and occupational therapy, (E) speech and hear- ing therapy (F) psychological and social services, (G) evaluation of rehabilitation potential, (H) personal and work adjustment, (I) vocational training with a view toward career ad- vancement (in combination with other rehabilitation services), (J) evaluation or control of specific disabilities, (K) orientation and mobility services to the blind, and (L) extended em- ployment for those handicapped individuals who cannot be readily absorbed in the competitive labor market, except that all medical and related health services must be prescribed by, or under the formal supervision of, persons licensed to prescribe or supervise the provision of such services in the State. [(11)] (12) The term "Secretary", except when the context otherwise requires, means the Secretary of Health, Education, and Welfare. [(12)] (13) The term "severe handicap" means the disability which requires multiple services over an extended period of time and results from amputation, blindness, cancer, cerebral palsy, cystic fibrosis, deafness, heart disease, hemiplegia, mental retardation, mental illness, multiple sclerosis, muscular dystrophy, neurological disorders (including stroke and epilepsy), paraplegia, quadriplegia and other spinal cord conditions, renal failure, respiratory or pulmonary dysfunction, and any other disability specified by the Secretary in regulations he shall prescribe. [(13)] (14) The term "State" includes the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and the Trust Territory of the Pacific Islands, and for the purposes of American Samoa and the Trust Territory of the Pacific Islands, the appro- priate State agency designated as provided in section (a) (1) shall be the Governor of American Samoa or the High Commissioner of the Trust Territory of the Pacific Islands, as the case may be. 8 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 [(14)] (15) The term "vocational rehabilitation services" means those services identi- fied in section 103 which are provided to handicapped individuals under this Act. ALLOTMENT PERCENTAGE PERCENTAGE LIMITATION; PROMULGATION AND COMPUTATION; "UNITED STATES" DEFINED SEC. 8. (a) (1) The allotment percentage for any State shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States, except that (A) the allotment percentage shall in no case be more than 75 per centum or less than 331/3 per centum, and (B) the allot- ment percentage for the District of Columbia, Puerto Rico, Guam, the Virgin Islands, Ameri- can Samoa, and the Trust Territory of the Pacific Islands shall be 75 per centum. (2) The allotment percentages shall be promulgated by the Secretary between October 1 and December 31 of each even-numbered year, on the basis of the average of the per capita incomes of the States and of the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the beginning on the October 1 next suc- ceeding such promulgation. (3) The term "United States" means (but only for purposes of this subsection) the fifty States and the District of Columbia. POPULATION DETERMINATION (b) The population of the several States and of the United States shall be determined on the basis of the most recent data available, to be furnished by the Department of Commerce by October 1 of the year preceding the fiscal year for which funds are appropriated pursuant to statutory authorizations. AUDIT SEC. 9. Each recipient of a grant or contract under this Act shall keep such records as the Secretary may prescribe, including records which fully disclose the amount and disposi- tion by such recipient of the proceeds of such grant or contract, the total cost of the project or undertaking in connection with which such grant or contract is made or funds thereunder used, the amount of that portion of the cost of the project or undertaking supplied by other sources, and such records as will facilitate an effective audit. The Secretary and the Comp- troller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient of any grant or contract under this Act which are pertinent to such grant or contract. NONDUPLICATION SEC. 10. In determining the amount of any State's Federal share of expenditures for planning, administration, and services incurred by it under a State plan approved in accord- ance with section 101, there shall be disregarded (1) any portion of such expenditures which are financed by Federal funds provided under any other provision of law, and (2) the amount of any non-Federal funds required to be expended as a condition of receipt of such Federal funds. No payment may be made from funds provided under one provision of this Act relating to any cost with respect to which any payment is made under any other provision of this Act, except that this section shall not be construed to limit or reduce fees for services rendered by rehabilitation facilities. APPLICATION OF OTHER LAWS Sec. 11. The provisions of the Act of December 5, 1974 (Public Law 93-510) and of title V of the Act of October 15, 1977 (Public Law 95-134) shall not apply to the administra- tion of the provisions of this Act or to the administration of any program or activity under this Act. ADMINISTRATION OF THE ACT SEC. 12. (a) In carrying out the purposes of this Act, the Commissioner may- (1) provide consultative services and technical assistance to public or nonprofit private agencies and organizations; (2) provide short-term training and technical instruction; (3) conduct special projects and demonstrations; REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 9 (4) collect, prepare, publish, and disseminate special educational or informational materials, including reports of the projects for which funds are provided under this Act; and (5) provide staff and other technical assistance to the National Council on the Handicapped. (b) In carrying out his duties under this Act, the Commissioner may utilize the services and facilities of any agency of the Federal Government and of any other public or nonprofit agency or organization, in accordance with agreements between the Commissioner and the head thereof, and may pay therefor, in advance or by way of reimbursement, as may be pro- vided in the agreement. (c) The Commissioner may promulgate such regulations as he considers appropriate to carry out his duties under this Act. (d) There are authorized to be appropriated to carry out this section such sums as may be necessary. REPORTS Sec. 13. Not later than one hundred and twenty days after the close of each fiscal year, the Commissioner shall prepare and submit to the President for transmittal to the Congress a full and complete report on the activities carried out under this Act. Such annual reports shall include statistical data reflecting services and activities provided individuals during the preceding fiscal year. EVALUATION SEC. 14. (a) The Secretary shall evaluate the impact of all programs authorized by this Act, their general effectiveness in achieving stated goals, and their effectiveness in relation to their cost, their impact on related programs, and their structure and mechanisms for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not immediately involved in the administration of the program or project evaluated. (b) In carrying out evaluations under this section, the Secretary shall, whenever possible, arrange to obtain the opinions of program and project participants about the strengths and weaknesses of the programs and projects. (c) The Secretary shall annually publish summaries of the results of evaluative research and evaluations of program and project impact and effectiveness, the full content of which shall be available to the Congress and the public. (d) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with Federal funds shall become the property of the United States. (e) Such information as the Secretary may deem necessary for purposes of the evalua- tions conducted under this section shall be made available to him, upon request, by the depart- ments and agencies of the executive branch. (f) There are authorized to be appropriated to carry out this section such sums as may be necessary. INFORMATION CLEARINGHOUSE SEC. 15. (a) The Secretary may establish a central clearinghouse for information and resource availability for handicapped individuals which shall provide information and data regarding (1) the location, provision, and availability of services and programs for handi- capped individuals, (2) research and recent medical and scientific developments bearing on handicapping conditions (and their prevention, amelioration, causes, and cures), and (3) the current numbers of handicapped individuals and their needs. The clearinghouse shall also provide any other relevant information and data which the Secretary considers appropriate. (b) The Commissioner may assist the Secretary to develop within the Department of Health, Education, and Welfare a coordinated system of information and data retrieval, which will have the capacity and responsibility to provide information regarding the information and data referred to in subsection (a) of this section to the Congress, public and private agencies and organizations, handicapped individuals and their families, professionals in fields serving such individuals, and the general public. 10 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (c) Any office established to carry out the provisions of this section shall be known as the "Office of Information and Resources for the Handicapped". (d) There are authorized to be appropriated to carry out this section such sums as may be necessary. TRANSFER OF FUNDS SEC. 16. No funds appropriated under this Act for any rcsearch program or activity may be used for any purpose other than that for which the funds were specifically authorized. TITLE I-VOCATIONAL REHABILITATION SERVICES PART A-GENERAL PROVISIONS DECLARATION OF PURPOSE; AUTHORIZATION OF APPROPRIATIONS SEC. 100. (a) The purpose of this subchapter is to authorize grants to assist States to meet the current and future needs of handicapped individuals, so that such individuals may prepare for and engage in gainful employment to the extent of their capabilities. (b) (1) For the purpose of making grants to States under part B of this subchapter to assist them in meeting costs of vocational rehabilitation services provided in accordance with State plans under section 721 of this title, there is authorized to be appropriated $650,000,000 for the fiscal year ending June 30, 1974, $680,000,000 for the fiscal year ending June 30, 1975. $720,000,000 for the fiscal year ending June 30, 1976, $740,000,000 for the fiscal year ending September 30, 1977, and $760,000,000 for the fiscal year ending September 30, 1978. There is further authorized to be appropriated for such purpose $808,000,000 for the fiscal year ending September 30, 1979, and the amount determined under subsection (c) for the three succeeding fiscal years, but in no event shall the amount appropriated be greater than $880,- 000,000 for the fiscal year ending September 30, 1980, $945,000,000 for the fiscal year end- ing September 30, 1981, and $972,000,000 for the fiscal year ending September 30, 1982. (2) For the purpose of carrying out part C of this subchapter (relating to grants to States and public and nonprofit agencies to assist them in meeting the cost of projects to initiate or expand services to handicapped individuals, especially those with the most servere handicaps) and part D of this subchapter (relating to the study of comprehensive service needs of individuals with the most severe handicaps), there is authorized to be appropriated $37,000,000 for the fiscal year ending June 30, 1974, $39,000,000 for the fiscal year ending June 30, 1975, $42,000,000 for the fiscal year ending June 30, 1976, and $25,000,000 for the fiscal years ending September 30, 1977, and September 30, 1978; and there is further author- ized to be appropriated for such purposes for each such year such additional sums as the Con- gress may determine to be necessary. Of the sums appropriated under this paragraph for each such fiscal year, $1,000,000 in each such year shall be available only for the purpose of carrying out part D of this subchapter.] (2) For the purpose of allotments under section 120 (a) (1), there are authorized to be appropriated $45,000,000 for the fiscal year ending September 30, 1979, $50,000,000 for the fiscal year ending September 30, 1980, $55,000,000 for the fiscal year ending September 30, 1981, and $60,000,000 for the fiscal year ending September 30, 1982. There are further author- ized to be appropriated for such purpose for each year such additional sums as the Congress may determine to be necessary. (3) For the purpose of making grants to Indian tribes under part D of this title, there are authorized to be appropriated for the fiscal year ending September 30, 1979, and for each of the three fiscal years thereafter, in addition to any other amounts authorized to be appro- priated under this section, such sums as may be necessary for such fiscal year, but not more than an amount equal to 1 percent of the amount appropriated for that fiscal year under paragraph (1) of this subsection. (c) (1) No later than November 15 of each fiscal year (beginning with the fiscal year 1979), the Secretary of Labor shall publish in the Federal Register the percentage change in the price index published for October of the preceding fiscal year and October of the fiscal year in which such publication is made. (2) (A) If in any fiscal year the percentage change published under paragraph (1) indicates an increase in the price index, then the amount authorized to be appropriated under subsection (b) (1) for the subsequent fiscal year is the amount authorized to be appropriated REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 11 for the fiscal year in which the publication is made under paragraph (1) increased by such percentage change. (B) If in any fiscal year the percentage change published under paragraph (1) does not indicate an increase in the price index, then the amount authorized to be appropriated under subsection (b) (1) for the subsequent fiscal year is the amount authorized to be appropriated for the fiscal year in which the publication is made under paragraph (1). (3) For purposes of this subsection, the term "price index" means the Consumer Price Index for All Urban Consumers, published monthly by the Bureau of Labor Statistics. STATE PLANS SEC. 101. (a) [For each fiscal year in which a State desires to participate in programs under this title, a State shall submit to the Secretary for his approval an annual plan for voca- tional rehabilitation services which shall-] In order to be eligible to participate in programs under this title, a State shall submit to the Commissioner a State plan for vocational rehabilita- tion services for a three-year period and, upon request of the Commissioner, shall make such annual revisions in the plan as may be necessary. Each such plan shall- (1) (A) designate a State agency as the sole State agency to administer the plan, or to supervise its administration by a local agency, except that (i) where under the State's law the State agency for the blind or other agency which provides assistance or services to the adult blind, is authorized to provide vocational rehabilitation services to such individuals, such agency may be designated as the sole State agency to administer the part of the plan under which vocational rehabilitation services are provided for the blind (or to supervise the administration of such part by a local agency) and a separate State agency may be desig- nated as the sole State agency with respect to the rest of the State plan, and (ii) the [Secretary] Commissioner, upon the request of a State, may authorize such agency to share funding and administrative responsibility with another agency of the State or with a local agency in order to permit such agencies to carry out a joint program to provide services to handicapped individuals, and may waive compliance with respect to vocational rehabilitation services furnished under such programs with the requirement of clause (4) of this subsection that the plan be in effect in all political subdivisions of that State; (B) provide that the State agency so designated to administer or supervise the admin- istration of the State plan, or (if there are two State agencies designated under subclause (A) of this clause) to supervise or administer the part of the State plan that does not relate to services for the blind, shall be (i) a State agency primarily concerned with vocational reha- bilitation, or vocational and other rehabilitation, of handicapped individuals, (ii) the State agency administering or supervising the administration of education or vocational education in the State, or (iii) a State agency which includes at least two other major organizational units each of which administers one or more of the major public education, public health, public welfare, or labor programs of the State; (2) provide, except in the case of agencies described in clause (1) (B) (i) (A) that the State agency designated pursuant to paragraph (1) (or each State agency if two are so designated) shall include a vocational rehabilitation bureau, division, or other organizational unit which (i) is primarily concerned with vocational rehabilita- tion, or vocational and other rehabilitation, of handicapped individuals, and is responsible for the vocational rehabilitation program of such State agency, (ii) has a full-time direc- tor, and (iii) has a staff employed on such rehabilitation work of such organizational unit all or substantially all of whom are employed full time on such work; and (B) (i) that such unit shall be located at an organizational level and shall have an organizational status within such State agency comparable to that of other major organ- izational units of such agency, or (ii) in the case of an agency described in clause (1) (B) (ii), either that such unit shall be SO located and have such status, or that the director of such unit shall be the executive officer of such State agency; except that, in the case of a State which has designated only one State agency pursuant to clause (1) of this subsection, such State may, if it so desires, assign responsibility for the part of the plan under which vocational rehabilitation services are provided for the blind to one organiza- tional unit of such agency, and assign responsibility for the rest of the plan to another organizational unit of such agency, with the provisions of this clause applying separately to each of such units; (3) provide for financial participation by the State, or if the State SO elects, by the State and local agencies to meet the amount of the non-Federal share; 12 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (4) provide that the plan shall be in effect in all political subdivisions, except that in the case of any activity which, in the judgment of the [Secretary] Commissioner, is likely to assist in promoting the vocational rehabilitation of substantially larger numbers of handi- capped individuals or groups of handicapped individuals the [Secretary] Commissioner may waive compliance with the requirement herein that the plan be in effect in all political sub- divisions of the State to the extent and for such period as may be provided in accordance with regulations prescribed by him, but only if the non-Federal share of the cost of such vocational rehabilitation services is met from funds made available by a local agency (including, to the extent permitted by such regulations, funds contributed to such agency by a private agency, organization, or individual) ; (5) (A) contain the plans, policies, and methods to be followed in carrying out the State plan and in its administration and supervision, including a description of the method to be used to expand and improve services to handicapped individuals with the most severe handi- caps and a description of the method to be used to utilize existing rehabilitation facilities to the maximum extent feasible; and, in the event that vocational rehabilitation services cannot be provided to all eligible handicapped individuals who apply for such services, show (i) the order to be followed in selecting individuals to whom vocational rehabilitation services will be provided and (ii) the outcomes and service goals and the time within which they may be achieved, for the rehabilitation of such individuals, which order of selection for the provision of vocational rehabilitation services shall be determined on the basis of serving first those individuals with the most severe handicaps and shall be consistent with priorities in such order of selection SO determined, and outcome and service goals for serving handicapped individuals, established in regulations prescribed by the [Secretary] Commissioner; and (B) provide satisfactory assurances to the [Secretary] Commissioner that the State has studied and considered a broad variety of means for providing services to individuals with the most severe handicaps; (6) (A) provides for such methods of administration, other than methods relating to the establishment and maintenance of personnel standards, as are found by the [Secretary] Commissioner to be necessary for the proper and efficient administration of the plan (includ- ing a requirement that the State agency and facilities in receipt of assistance under this title shall take affirmative action to employ and advance in employment qualified handicapped individuals covered under, and on the same terms and conditions as set forth in, section 503) ; (B) provide satisfactory assurances that facilities used in connection with the delivery of services assisted under the plan will comply with the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968; (7) contain (A) provisions relating to the establishment and maintenance of personnel standards, which are consistent with any State licensure laws and regulations, including pro- visions relating to the tenure, selection, appointment, and qualifications of personnel, [and] (B) provisions relating to the establishment and maintenance of minimum standards govern- ing the facilities and personnel utilized in the provision of vocational rehabilitation services, but the [Secretary] Commissioner shall exercise no authority with respect to the selection, method of selection, tenure of office, or compensation of any individual employed in accordance with such provision, and (C) provisions relating to the establishment and maintenance of minimum standards to assure the availability of personnel, to the maximum extent feasible, trained to communicate in the client's native language or mode of communication; (8) provide, at a minimum, for the provision of the vocational rehabilitation services specified in clauses (1) through (3) of subsection (a) of section 103, and the remainder of such services specified in such section after full consideration of eligibility for similar benefits under any other program, except that, in the case of the vocational rehabilitation services specified in clauses (4) and (5) of subsection (a) of such section, such consideration shall not be required where it would delay the provision of such services to any individual; (9) provide that (A) an individualized written rehabilitation program meeting the requirements of section 102 will be developed for each handicapped individual eligible for vocational rehabilitation services under this Act, (B) such services will be provided under the plan in accordance with such program, and (C) records of the characteristics of each applicant will be kept, specifying, as to those individuals who apply for services under this title and are determined not to be eligible therefor, the reasons for such determinations in such detail as required by the [Secretary] Commissioner in order for him to analyze and evaluate annually the reasons for and numbers of such ineligibility determinations as part of his responsibilities [under section 401] under section 13, and that the State agency will at least annually categorize and analyze such reasons and numbers and report this information to the [Secretary] Commissioner and will, not later than 12 months after each such determi- REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 13 nation, review each such ineligibility determination in accordance with the criteria set forth in section 102; (10) provide that the State agency will make such reports in such form, containing such information (including the data described in subclause (C) of clause (9) of this subsection, periodic estimates of the population of handicapped individuals eligible for services under this Act in such State, specifications of the number of such individuals who will be served with funds provided under this Act and the outcomes and service goals to be achieved for such individuals in each priority category specified in accordance with clause (5) of this subsection, and the service costs for each such category), and at such time as the [Secretary] Commissioner may require to carry out his functions under this title, and comply with such provisions as he may find necessary to assure the correctness and verification of such reports; (11) provide for entering into cooperative arrangements with, and the utilization of the services and facilities of, the State agencies administering the State's public assistance pro- grams, other programs for handicapped individuals, veterans programs, manpower pro- grams, and public employment offices, and the Social Security Administration of the Depart- ment of Health, Education, and Welfare, the Veterans' Administration, and other Federal, State, and local public agencies providing services related to the rehabilitation of handicapped individuals (specifically including arrangements for the coordination of services to individ- uals eligible for services under this Act, the Education of the Handicapped Act, and the Voca- tional Education Act) ; (12) (A) provide satisfactory assurances to the [Secretary] Commissioner that, in the provision of vocational rehabilitation services, maximum utilization shall be made of public or other vocational or technical training facilities or other appropriate resources in the community; and (B) provide appropriate means for entering into agreements with the opera- tors of rehabilitation facilities for the provision of services for the rehabilitation of handi- capped individuals; (13) (A) provide that vocational rehabilitation services provided under the State plan shall be available to any civil employee of the United States disabled while in the performance of his duty on the same terms and conditions as apply to other persons, and (B) provide that special consideration will be given to the rehabilitation under this Act of a handicapped individual whose handicapping condition arises from a disability sustained in the line of duty while such individual was performing as a public safety officer and the proximate cause of such disability was a criminal act, apparent criminal act, or hazardous condition resulting directly from the officer's performance of duties in direct connection with the enforcement, execution, and administration of law or fire prevention, firefighting, or related public safety activities; (14) provide that no residence requirement will be imposed which excludes from services. under the plan any individual who is present in the State; (15) provide for continuing statewide studies of the needs of handicapped individuals and how these needs may be most effectively met (including the State's needs for rehabilita- tion facilities] (including the capacity and condition of rehabilitation facilities, plans for improving such facilities, and policies for the use thereof by the State agency and review of the efficacy of the criteria employed with respect to ineligibility determinations described in subclause (C) of clause (9) of this subsection) with a view toward the relative need for services to significant segments of the population of handicapped individuals and the need for expansion of services to those individuals with the most severe handicaps; (16) provide for (A) periodic review and reevaluation of the status of handicapped individuals placed in extended employment in rehabilitation facilities (including workshops) to determine the feasibility of their employment, or training for employment, in the competi- tive labor market, and (B) maximum efforts to place such individuals in such employment or training whenever it is determined to be feasible; (17) provide that where such State plan includes provisions for the construction of reha- bilitation facilities- (A) the Federal share of the cost of construction thereof for a fiscal year will not exceed an amount equal to 10 per centum of the State's allotment for such year, (B) the provisions of section 306 shall be applicable to such construction and such provisions shall be deemed to apply to such construction, and 14 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (C) there shall be compliance with regulations the [Secretary] Commissioner shall prescribe designed to assure that no State will reduce its efforts in providing other voca- tional rehabilitation services (other than for the establishment of rehabilitation facili- ties) because its plan includes such provisions for construction; (18) provide satisfactory assurances to the [Secretary] Commissioner that the State agency designated pursuant to clause (1) (or each State agency if two are SO designated) and any sole local agency administering the plan in a political subdivision of the State will take into account, in connection with matters of general policy arising in the administration of the plan, the views of individuals and groups thereof who are recipients of vocational reha- bilitation services (or, in appropriate cases, their parents or guardians), working in the field of vocational rehabilitation, and providers of vocational rehabilitation services; [and] (19) provide satisfactory assurances to the [Secretary] Commissioner that the con- tinuing studies required under clause (15) of this subsection, as well as an annual evaluation of the effectiveness of the program in meeting the goals and priorities set forth in the plan, will form the basis for the submission, from time to time as the Secretary may require, of appropriate amendments to the plan[.]; (20) provide satisfactory assurances to the Commissioner that, except as otherwise provided in section 130, the State shall provide vocational rehabilitation services to handi- capped American Indians residing in the State to the same extent as the State provides such services to other significant segments of the population of handicapped individuals residing in the State; (21) provide that the State agency has the authority to enter into contracts with profit- making organizations for the purpose of providing on-the-job training and related programs for handicapped individuals under part B of title VI upon a determination by such agency that such profitmaking organizations are better qualified to provide such rehabilitation serv- ices than nonprofit agencies and organizations; and (22) provide for the establishment and maintenance of information and referral pro- grams (the staff of which shall include, to the maximum extent feasible, interpreters for the deaf) in sufficient numbers to assure that handicapped individuals within the State are afforded accurate vocational rehabilitation information and appropriate referrals to other Federal and State programs and activities which would benefit them. (b) The [Secretary] Commissioner shall approve any plan which he finds fulfills the conditions specified in subsection (a) of this section, and he shall disapprove any plan which does not fulfill such conditions. Prior to such disapproval, the [Secretary] Commissioner shall notify a State of his intention to disapprove its plan, and he shall afford such State reasonable notice and opportunity for hearing. (c) (1) Whenever the [Secretary] Commissioner, after reasonable notice and opportu- nity for hearing to the State agency administering or supervising the administration of the State plan approved under this section, finds that- (1) (A) the plan has been SO changed that it no longer complies with the require- ments of subsection (a) of this section or ((2) (B) in the administration of the plan there is a failure to comply substantially with any provision of such plan, the [Secretary] Commissioner shall notify such State agency that no further payments will be made to the State under this title (or, in his discretion, that such further payments will be reduced, in accordance with regulations the [Secretary] Commissioner shall prescribe, or that further payments will not be made to the State only for the projects under the parts of the State plan affected by such failure), until he is satisfied there is no longer any such failure. Until he is SO satisfied, the [Secretary] Commissioner shall make no further payments to such State under this title (or shall limit payments to projects under those parts of the State plan in which there is no such failure) (2) The Commissioner may, in accordance with regulations the Secretary shall prescribe, disburse any funds withheld from a State under paragraph (1) to any public or nonprofit private organization or agency. within such State or to any political subdivision of such State submitting a plan meeting the requirements of subsection (a) The Commissioner may not make any payment under this paragraph unless the entity to which such payment is made has provided assurances to the Commissioner that such entity will contribute, for purposes of REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 15 carrying out such plan, the same amount as the State would have been obligated to contribute if the State received such payment. [(d) If any State is dissatisfied with the Secretary's action under subsection (b) or (c) of this section, such State may appeal to the United States district court for the district where the capitol of such State is located and judicial review of such action shall be on the record in accordance with the provisions of chapter 7 of title 5, United States Code.] (d) (1) Any State which is dissatisfied with a final determination of the Commissioner under subsection (b) or (c) may file a petition for judicial review of such determination in the United States Court of Appeals for the circuit in which the State is located. Such a petition may be filed only within the thirty-day period beginning on the date notice of such final determination was received by the State. The clerk of the court shall transmit a copy of the petition to the Commissioner or to any officer designated by him for that purpose. In accord- ance with section 2112 of title 28, United States Code, the Commissioner shall file with the court a record of the proceeding on which he based the determination being appealed by the State. Until a record is so filed, the Commissioner may modify or set aside any determination made under such proceedings. (2) If, in an action under this subsection to review a final determination of the Com- missioner under subscction (b) or (c), the petitioner or the Commissioner applies to the court for leave to have additional oral submissions or written presentations made respecting such determination, the court may, for good cause shown, order the Commissioner to provide within thirty days an additional opportunity to make such submissions and presentations. Within such period, the Commissioner may revise any findings of fact, modify or set aside the determination being reviewed, or make a new determination by reason of the additional submissions and presentations, and shall file such modified or new determination, and any revised findings of fact, with the return of such submissions and presentations. The court shall thereafter review such new or modified determination. (3) (A) Upon the filing of a petition under paragraph (1) for judicial review of a determination, the court shall have jurisdiction (i) to grant appropriate relief as provided in chapter 7 of title 5, United States Code, except for interim relief with respect to a deter- mination under subsection (c), and (ii) except as otherwise provided in subparagraph (B), to review such determination in accordance with chapter 7 of title 5, United States Code. (B) Section 706 of title 5, United States Code, shall apply to the review of any determina- tion under this subsection, except that the standard for review prescribed by paragraph (2) (E) of such section 706 shall not apply and the court shall hold unlawful and set aside such determination if the court finds that the determination is not supported by substantial evi- dence in the record of the proceeding submitted pursuant to paragraph (1), as supplemented by any additional submissions and presentations filed under paragraph (2). INDIVIDUALIZED WRITTEN REHABILITATION PROGRAM SEC. 102. (a) The [Secretary] Commissioner shall insure that the individualized written rehabilitation program, or the specification of reasons for a determination of ineligibility prior to initiation of such program based on preliminary diagnosis, required by section 721 (a) (9) of this title in the case of each handicapped individual is developed jointly by the vocational rehabilitation counselor or coordinator and the handicapped individual (or, in appropriate cases, his parents or guardians), and that such program meets the requirements set forth in subsection (b) of this section. Such written program shall set forth the terms and conditions, as well as the rights and remedies, under which goods and services will be provided to the individual, and, as appropriate, such specification of reasons for such an ineligibility deter- mination shall set forth the rights and remedies, including recourse to the process set forth in subsection (b) (5) of this section, available to the individual in question. (b) Each individualized written rehabilitation program shall be reviewed on an annual basis at which time each such individual (or, in appropriate cases. his parents or guardians) will be afforded an opportunity to review such program and jointly redevelop and agree to its terms. Such program shall include, but not be limited to (1) a statement of long-range reha- bilitation goals for the individual and intermediate rehabilitation objectives related to the attainment of such goals, (2) a statement of the specific vocational rehabilitation services to be provided, (3) the projected date for the initiation and the anticipated duration of each such service, (4) objective criteria and an evaluation procedure and schedule for determining whether such objectives and goals are being achieved, and (5) where appropriate, a detailed explanation of the availability of a client assistance project established in such area pursuant to section 112. 16 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (c) The [Secretary] Commissioner shall also insure that (1) in making any determina- tion of ineligibility referred to in subsection (a) of this section, or in developing and carrying out the individualized written rehabilitation program required, by section 101 in the case of each handicapped individual, primary emphasis is placed upon the determination and achieve- ment of a vocational goal for such individual, (2) a decision that such an individual is not capable of achieving such a goal and thus not eligible for vocational rehabilitation services provided with assistance under this part, is made only in full consultation with such individual (or, in appropriate cases, his parents or guardians), and only upon the certification, as an amendment to such written program, or as a part of the specification of reasons for an ineligibility determination, as appropriate, that the preliminary diagnosis or evaluation of rehabilitation potential, as appropriate, has demonstrated beyond any reasonable doubt that such individual is not then capable of achieving such a goal, and (3) any such decision, as an amendment to such written program, shall be reviewed at least annually in accordance with the procedure and criteria established in this section. (d) (1) The Director of any designated State unit shall establish procedures for the review of determinations made by the rehabilitation counselor or coordinator under this section, upon the request of a handicapped individual (or, in appropriate cases, his parents or guardians). Such procedures shall include a requirement that the final decision concerning the review of any such determination be made in writing by the Director. The Director may not delegate his responsibility to make any such final decision to any other officer or employee of the designated State's unit. (2) Any handicapped individual (or, in appropriate cases, his parent or guardian) who is not satisfied with the final decision made under paragraph (1) by the Director of the desig- nated State unit may request the Secretary to review such decision. Upon such request the Secretary shall conduct such a review and shall make recommendations to the Director as to the appropriate disposition of the matter. The Secretary may not delegate his responsibilities under this paragraph to any officer of the Department of Health, Education, and elfare who is employed at a position below that of an Assistant Secretary. SCOPE OF VOCATIONAL REHABILITATION SERVICES SEC. 103. (a) Vocational réhabilitation services provided under this Act are any goods or services necessary to render a handicapped individual employable, including, but not limited to, the following: (1) evaluation of rehabilitation potential, including diagnostic and related services, incidental to the determination of eligibility for, and the nature and scope of, services to be provided, including, where appropriate, examination by a physician skilled in the diagnosis and treatment of mental or emotional disorders, or by a licensed psychologist in accordance with State laws and regulations, or both; (2) counseling, guidance, referral, and placement services for handicapped individ- uals, including followup, follow-along, and other postemployment services necessary to assist such individuals to maintain their employment and services designed to help handicapped individuals secure needed services from other agencies, where such services are not available under this Act; (3) vocational and other training services for handicapped individuals, which shall include personal and vocational adjustment, books, and other training materials, and services to the families of such individuals as are necessary to the adjustment or reha- bilitation of such individuals: Provided, That no training services in institutions of higher education shall be paid for with funds under this title unless maximum efforts have been made to secure grant assistance, in whole or in part, from other sources to pay for such training; (4) physical and mental restoration services, including, but not limited to, (A) corrective surgery or therapeutic treatment necessary to correct or substantially modify a physical or mental condition which is stable or slowly progressive and constitutes a substantial handicap to employment, but is of such nature that such correction or modifi- cation may reasonably be expected to eliminate or substantially reduce the handicap within a reasonable length of time, (B) necessary hospitalization in connection with surgery or treatment, (C) prosthetic and orthotic devices, (D) eyeglasses and visual services as prescribed by a physician skilled in the diseases of the eye or by an optome- trist, whichever the individual may select, (E) special services (including transplantation and dialysis), artifical kidneys, and supplies necessary for the treatment of individuals suffering from end-stage renal disease, and (F) diagnosis and treatment for mental REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 17 and emotional disorders by a physician or licensed psychologist in accordance with State licensure laws; (5) maintenance, not exceeding the estimated cost of subsistence, during rehabilitation; (6) interpreter services for deaf individuals, and reader services for those individ- uals determined to be blind after an examination by a physician skilled in the disease of the eye or by an optometrist, whichever the individual may select; (7) recruitment and training services for handicapped individuals to provide them with new employment opportunities in the fields of rehabilitation, health, welfare, public safety, and law enforcement, and other appropriate service employment; (8) rehabilitation teaching services and orientation and mobility services for the blind (9) occupational licenses, tools, equipment, and initial stocks and supplies; (10) transportation in connection with the rendering of any vocational rehabilita- tion service; and (11) telecommunications, sensory, and other technological aids and devices. (b) Vocational rehabilitation services, when provided for the benefit of groups of indi- viduals, may also include the following: (1) in the case of any type of small business operated by individuals with the most severe handicaps the operation of which can be improved by management services and supervision provided by the State agency, the provision of such services and supervision, along or together with the acquisition by the State agency of vending facilities or other equipment and initial stocks and supplies; [and] (2) the construction or establishment of public or nonprofit rehabilitation facilities and the provision of other facilities and services (including services offered at rehabilita- tion facilities) which promise to contribute substantially to the rehabilitation of a group of individuals but which are not related directly to the individualized rehabilitation writ- ten program of any one handicapped individual[." ; and (3) the use of existing telecommunications systems (including telephone, television, satellite, radio, and other similar systems) which have the potential for substantially improving service delivery methods, and the development of appropriate programing to meet the particular needs of handicapped individuals; and (4) the use of services providing recorded material for the blind and captioned films or video cassettes for the deaf. NON-FEDERAL SHARE FOR CONSTRUCTION SEC. 104. For the purpose of determining the amount of payments to States for carrying out part B of this title, the non-Federal share, subject to such limitations and conditions as may be prescribed in regulations by the [Secretary] Commissioner, shall include contributions of funds made by any private agency, organization, or individual to a State or local agency to assist in meeting the costs of construction or establishment of a public or nonprofit reha- bilitation facility, which would be regarded as State or local funds except for the condition, imposed by the contributor, limiting use of such funds to construction or establishment of such facility. PART B-BASIC VOCATIONAL REHABILITATION SERVICES STATE ALLOTMENTS [SEC. 110. (a) For each fiscal year, each State shall be entitled to an allotment of an amount bearing the same ratio to the amount authorized to be appropriated under subsection (b) (1) of section 100 for allotment under this section as the product of (1) the population of the State and (2) the square of its allotment percentage bears to the sum of the corresponding products for all the States. The allotment to any State (other than Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands) under the first sentence of this subsection for any fiscal year which is less than one-quarter of 1 per centum of the amount appropriated under subsection (b) (1) of section 100, or $2,000,000, whichever is greater, shall be increased to that amount, the total of the increases thereby required being derived 18 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 by proportionately reducing the allotments to each of the remaining such States under the first sentence of this subsection, but with such adjustments as may be necessary to prevent the allotment of any such remaining States from being thereby reduced to less than that amount.] Sec. 110. (a) (1) For each fiscal year beginning before October 1, 1978, each State shall be entitled to an allotment of an amount bearing the same ratio to the amount authorized to be appropriated under section 100 (b) (1) for allotment under this section as the product of (A) the population of the State; and (B) the square of its allotment percentage, bears to the sum of the corresponding products for all the States. (2) (A) For each fiscal year beginning on or after October 1, 1978, each State shall be entitled to an allotment in an amount equal to the amount such State received under para- graph (1) for the fiscal year ending September 30, 1978, and an additional amount determined pursuant to subparagraph (B) of this paragraph. (B) For each fiscal year beginning on or after October 1, 1978, each State shall be entitled to an allotment, from any amount authorized to be appropriated for such fiscal year under section 100 (b) (1) for allotment under this section in excess of the amount appropriated under section 100 (b) (1) for the fiscal year ending September 30, 1978, in an amount equal to the sums of- (i) an amount bearing the same ratio to 50 percent of such excess amount as the product of the population of the State and the square of its allotment percentage bears to the sum of the corresponding products for all the States; and (ii) an amount bearing the same ratio to 50 percent of such excess amount as the product of the population of the State and its allotment percentage bears to the sum of the corresponding products for all the States. (3) The sum of the payment to any State (other than Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands) under this subsection for any fiscal year which is less than one-third of 1 percent of the amount appro- priated under section 100 (b) (1), or $3,000,000, whichever is greater, shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the allotment to each of the remaining such States under this subsection, but with such adjustments as may be necessary to prevent the sum of the allotments made under this subsection to any such remaining State from being thereby reduced to less than that amount. (b) (1) If the payment to a State under section 111 (a) for a fiscal year is less than the total payments such State received under section 2 of the Vocational Rehabilitation Act for the fiscal year ending June 30, 1973, such State shall be entitled to an additional payment (subject to the same terms and conditions applicable to other payments under this part) equal to the difference between such payment under section 111 (a) and the amount SO received by it. [Payments attributable to the additional payment to a State under this subsection shall be made only from appropriations specifically made to carry out this subsection, and such additional appropriations are hereby authorized.] (2) If a State receives as its Federal share under section 111 (a) for any fiscal year, as a result of the maintenance of effort provisions of such section, less than 80 percent of the expenditure of such State for vocational rehabilitation services under the plan for such State approved under section 101 (including any amount expended by such State for the adminis- tration of the State plan but excluding any amount expended by such State from non-Federal sources for construction under such plan), such State shall be entitled to an additional pay- ment for such fiscal year, subject to the same terms and conditions applicable to other pay- ments under this part, equal to the difference between such payment under section 111 (a) and an amount equal to 80 percent of such expenditure for vocational rehabilitation services. (3) Any payment attributable to the additional payment to a State under this subsection shall be made only from appropriations specifically made to carry out this subsection, and such additional appropriations are hereby authorized. (c) Whenever the [Secretary] Commissioner determines, after reasonable opportunity for the submission to him of comments by the State agency administering or supervising the program established under this title, that any payment of an allotment to a State under section 111(a) for any fiscal year will not be utilized by such State in carrying out the purposes of this title, he shall make such amount available for carrying out the purposes of this title to one or more other States to the extent he determines such other State will be able to use such additional amount during such year for carrying out such purposes. Any amount made avail- able to a State for any fiscal year pursuant to the preceding sentence shall, for the purposes REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 19 of this part, be regarded as an increase of such State's allotment (as determined under the preceding provisions of this section) for such year. PAYMENTS TO STATES SEC. 111. (a) From each State's allotment under this part for any fiscal year (including any additional payment to it under section 110 (b), the [Secretary] Commissioner shall pay to such State an amount equal to the Federal share of the cost of vocational rehabilitation services under the plan for such State approved under section 101, including expenditures for the administration of the State plan, except that the total of such payments to such State for such fiscal year may not exceed its allotment under subsection (a) (and its additional payment under subsection (b), if any) of section 110 for such year and such payments shall not be made in an amount which would result in a violation of the provisions of the State plan required by clause (17) of section 101 (a), and except that the amount otherwise payable to such State for such year under this section shall be reduced by the amount (if any) by which expenditures from non-Federal sources during such year under this title are less than expendi- tures under the State plan for the fiscal year ending June 30, 1972, under the Vocational Rehabilitation Act. (b) The method of computing and paying amounts pursuant to subsection (a) shall be as follows: (1) The [Secretary] Commissioner shall, prior to the beginning of each calendar quarter or other period prescribed by him, estimate the amount to be paid to each State under the provisions of such subsection for such period, such estimate to be based on such records of the State and information furnished by it, and such other investigation, as the [Secretary] Commissioner may find necessary. (2) The [Secretary] Commissioner shall pay, from the allotment available therefor, the amount SO estimated by him for such period, reduced or increased, as the case may be, by any sum (not previously adjusted under this paragraph) by which he finds that his esti- mate of the amount to be paid the State for any prior period under such subsection was greater or less than the amount which should have been paid to the State for such prior period under such subsection. Such payment shall be made prior to audit or settlement by the Gen- eral Accounting Office, shall be made through the disbursing facilities of the Treasury Depart- ment, and shall be made in such installments as the [Secretary] Commissioner may determine. CLIENT ASSISTANCE SEC. 112. (a) From funds appropriated under section [304] 310 for special projects and demonstrations in excess of $11,860,000 the [Secretary] Commissioner shall set aside [up to $1,500,000, but no less than $500,000 for the fiscal year ending June 30, 1974, up to $2,500,000 but no less than $1,000,000 for the fiscal year ending June 30, 1975, and up to $2,500,000 but no less than $1,000,000 for the fiscal year ending June 30, 1976, up to $2,500,000 but no less than $1,000,000 for the fiscal year ending September 30, 1977, and up to $2,500,000 but no less than $1,000,000 for the fiscal year ending September 30, 1978, to establish in no less than 7 nor more than 20 geographically dispersed regions] no less than $3,500,000 for the fiscal year ending September 30, 1979, and for each of the three succeeding fiscal years to establish in geographically dispersed regions client assistance pilot projects (hereinafter in this section referred to as "projects") to provide counselors to inform and advise all clients and client applicants in the project area of all available benefits under this chapter and, upon request of such client or client applicant, to assist such. clients or applicants in their relationships with projects, programs, and facilities providing services to them under this chapter, includ- ing assistance in pursuing legal, administrative, or other appropriate remedies to insure the protection of the rights of such individuals under this Act. In the event that funds SO appro- priated under section [304] 310 do not exceed $11,860,000 in any fiscal year, the [Secretary] Commissioner is authorized to utilize such funds to carry out this section. (b) The [Secretary] Commissioner shall prescribe regulations which shall include the following requirements: (1) No employees of such projects shall be presently serving as staff or consultants or receiving benefits of any kind directly or indirectly from any rehabilitation project, program, or facility receiving assistance under this Act in the project area. (2) Each project shall be afforded reasonable access to policymaking and administrative personnel in State and local rehabilitation programs, projects, and facilities. 20 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (3) The project shall submit an annual report, through the State agency designated pursuant to section 101, to the [Secretary] Commissioner on the operation of the project during the previous year, including a summary of the work done and a uniform statistical tabulation of all cases handled by such project. A copy of each such report shall be submitted to the appropriate committees of the Congress by the [Secretary] Commissioner together with a summary of such reports and his evaluation of such projects, including appropriate recommendations. (4) Each State agency may enter into cooperative arrangements with institutions of higher education to secure the services in such projects of graduate students who are under- going clinical training activities in related fields. No compensation with funds appropriated under this Act shall be provided to such students. (5) Reasonable assurance shall be given by the appropriate State agency that all clients or client applicants within the project area shall have the opportunity to receive adequate service under the project and shall not be pressured against or otherwise discouraged from availing themselves of the services available under such project. (6) The project shall be funded, administered, and operated directly by and with the concurrence of the State agency designated pursuant to section 101. PART C-INNOVATION AND EXPANSION GRANTS STATE ALLOTMENTS SEC. 120. (a) (1) From the sums available pursuant to section 100 (b) (2) for any fiscal year for grants to States to assist them in meeting the costs described in section 121, each State shall be entitled to an allotment of an amount bearing the same ratio to such sums as the population of the State bears to the population of all the States. The allotment to any State under the preceding sentence for any fiscal year which is less than $50,000 shall be increased to that amount, and for the fiscal year ending June 30, 1974, no State shall receive less than the amount necessary to cover up to 90 per centum of the cost of continuing projects assisted under section 4 (a) (2) (A) of the Vocational Rehabilitation Act, except that no such project may receive financial assistance under both the Vocational Rehabilitation Act and this Act for a total period of time in excess of [three] five years. The total of the increase required by the preceding sentence shall be derived by proportionately reducing the allot- ments to each of the remaining States under the first sentence of this section, but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from thereby being reduced to less than $50,000. (b) Whenever the [Secretary] Commissioner determines that any amount of an allot- ment to a State for any fiscal year will not be utilized by such State in carrying out the pur- poses of this section, he shall make such amount available for carrying out the purposes of this section to one or more other States which he determines will be able to use additional amounts during such year for carrying out such purposes. Any amount made available to a State for any fiscal year pursuant to the preceding sentence shall, for purposes of this part, be regarded as an increase of such State's allotment (as determined under the preceding provisions of this section) for such year. PAYMENTS TO STATES SEC. 121. (a) From each State's allotment under this part for any fiscal year, the [Secre- tary] Commissioner shall pay to such State or, at the option of the State agency designated pursuant to section 101 (a) (1), to a public or nonprofit organization or agency, a portion of the cost of planning, preparing for, and initiating special programs under the State plan approved pursuant to section 101 to expand vocational rehabilitation services, including pro- grams to initiate or expand such services to individuals with the most severe handicaps, or of special programs under such State plan to initiate or expand services to classes of handi- capped individuals who have unusual and difficult problems in connection with their reha- bilitation, particularly handicapped individuals who are poor, and responsibility for whose treatment, education, and rehabilitation is shared by the State agency designated in section 101 with other agencies. Payments may also be made under this section for the costs of the construction of facilities to be used in providing services under such State plan if provision for such construction is included in such State plan. The [Secretary] Commissioner may require that any portion of a State's allotment under this section, but not more than 50 per centum of such allotment, may be expended in connection with only such projects as have first been approved by the [Secretary] Commissioner. Any grant of funds under this section which will be used for direct services to handicapped individuals or for establishing or main- REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 21 taining facilities which will render direct services to such individuals must have the prior approval of the appropriate State agency designated pursuant to section 101. (b) Payments under this section with respect to any project may be made for a period of not to exceed three years beginning with the commencement of the project as approved, and sums appropriated for grants under this section shall remain available for such grants through the fiscal year ending [September 30, 1979.] September 30, 1982. Payments with respect to any project may not exceed 90 per centum of the cost of such project. The non- Federal share of the cost of a project may be in cash or in kind and may include funds spent for project purposes by a cooperating public or nonprofit agency provided that it is not included as a cost in any other federally financed program. (c) Payments under this section may be made in advance or by way of reimbursement for services performed and purchases made, as may be determined by the [Secretary] Com- missioner and shall be made on such conditions as the [Secretary] Commissioner finds nec- essary to carry out the purposes of this section. [PART D-COMPREHENSIVE SERVICE NEEDS [SPECIAL STUDY [SEC. 130. (a) The Secretary shall conduct a comprehensive study, including research and demonstration projects of the feasibility of methods designed (1) to prepare individuals with the most severe handicaps for entry into programs under this Act who would not other- wise be eligible to enter such programs due to the severity of their handicap, and (2) to assist individuals with the most severe handicaps who, due to the severity of their handicaps or other factors such as their age, cannot reasonably be expected to be rehabilitated for employment but for whom a program of rehabilitation could improve their ability to live independently or function normally within their family and community. Such study shall encompass the extent to which other programs administered by the Secretary do or might contribute to the objectives set forth in clauses (1) and (2) of the preceding sentence and the methods by which all such programs can be coordinated at Federal, State, and local levels with those carried out under this Act to the end that individuals with the most severe handi- caps are assured of receiving the kinds of assistance necessary for them to achieve such objectives. [(b) The Secretary shall report the findings of the study, research and demonstrations directed by subsection (a) of this section to the Congress and to the President together with such recommendations for legislative or other action as he may find desirable, not later than June 30, 1975.] PART D-AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES VOCATIONAL REHABILITATION SERVICES GRANTS SEC. 130. (a) The Commissioner, in accordance with the provisions of this part, may make grants to the governing bodies of Indian tribes located on Federal and State reserva- tions to pay 90 percent of the costs of vocational rehabilitation services for handicapped American Indians residing on such reservations. (b) (1) No grant may be made under this part for any fiscal year unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application unless the application- (A) is made at such time, in such manner, and contains such ormation as the Com- missioner may require; (B) contains assurances that the rehabilitation services provided under this part to handicapped American Indians residing on a reservation in a State shall be, to the maxi- mum extent feasible, comparable to rehabilitation services provided under this title to other handicapped individuals residing in the State; and (C) contains assurances that the application was developed in consultation with the designated State unit of the State. (2) The provisions of sections 5, 6. 7 and 102 (a) of the Indian Self-Determination and Education Assistance Act shall be applicable to any application submitted under this part. For purposes of this paragraph, any reference in any such provision to the Secretary of 22 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 Health, Education, and Welfare or to the Secretary of the Interior shall be considered to be a reference to the Commissioner. (3) Any application approved under this part shall be effective for not less than twelve months except as determined otherwise by the Commissioner pursuant to prescribed regula- tions. The State shall continue to provide vocational rehabilitation services under its State plan to American Indians residing on a reservation whenever such State includes any such American Indians in its State population under section 110 (a) (1). (d) For the purpose of computing the allotment of any State under section 110 (a), the number of American Indians residing on a reservation to be served by a grant under this part shall be subtracted from the population used for such State in section 110 (a) (1) as follows: (1) 33 percent of such American Indians in the first fiscal year during which such Indians are served by grants under this part; (2) 66 percent of such American Indians in the second fiscal year during which such Indians are served by grants under this part; and (3) 100 percent of such American Indians in the third fiscal year during which such Indians are served by grants under this part. (e) The term "reservation" includes Indian reservations, public domain Indian allot- ments, former Indian reservations in Oklahoma, and land held by incorporated Native groups, regional corporations, and village corporations under the provisions of the Alaska Native Claims Settlement Act. EVALUATION SEC. 131. Not less than thirty months after the date of enactment of the Rehabilitation, Comprehensive Services and Developmental Disabilities Amendments of 1978, the Secretary shall submit to the Congress an evaluation of the programs conducted under this part. Such evaluation shall be conducted by persons other than persons immediately responsible for ad- ministration of such programs. Such evaluation shall include- (1) an examination of the comparability of vocational rehabilitation services pro- vided under this part to services provided to other handicapped individuals under sec- tion 101; and (2) An assessment of the extent to which governing bodies of Indian tribes receiving grants under this part have made services under such grants available to all handicapped American Indians residing on reservations served by such grants." TITLE II-RESEARCH AND TRAINING DECLARATION OF PURPOSE [SEC. 200. The purpose of this title is to authorize Federal assistance to State and public or nonprofit agencies and organizations to- [(a) plan and conduct research, demonstrations, and related activities in the reha- bilitation of handicapped individuals, and (b) plan and conduct courses of training and related activities designed to provide increased numbers of trained rehabilitation personnel, to increase the levels of skills of such personnel, and to develop improved methods of providing such training.] SEC. 200. The purpose of this title is to- (1) provide for a comprehensive and coordinated approach to the administration and conduct of research, demonstration projects, and related activities for the rehabilitation of handicapped individuals, including programs designed to train persons who provide rehabilitation services and persons who conduct research, by authorizing Federal assist- ance in accordance with a plan for rehabilitation research developed under this title; (2) facilitate the distribution of ormation concerning developments in rehabilita- tion procedures, methods, and devices to rehabilitation prof essionals and to handicapped individuals to assist such individuals to live more independently; (3) improve the distribution of technological devices and equipment for handicapped individuals by providing financial support for the development and distribution of such devices and equipment; and REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 23 (4) increase the scientific and technological information presently available in the field of rehabilitation. AUTHORIZATION OF APPROPRIATIONS SEC. 201. [(a) In order to make grants and contracts to carry out the purposes of this subchapter, there is authorized to be appropriated: [ (1) For the purpose of carrying out section 762 of this title, $25,000,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $32,000,000 for the fiscal year ending June 30, 1976, and $30,000,000 for the fiscal years ending September 30, 1977, and Septem- ber 30, 1978; and there is further authorized to be appropriated for such purpose for each such year such additional sums as the Congress may determine to be necessary. Of the sums appro- priated under this paragraph, 20 per centum and 25 per centum of the amounts appropriated in the first and second such fiscal-years, respectively and 25 per centum of the amounts appro- priated in each succeeding fiscal year shall be available only for the purpose of carrying out activities under section 762 (b) (2) of this title. (2) For the purpose of carrying out section 763 of this title, $27,700,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $32,000,000 for the fiscal year ending June 30, 1976, $25,000,000 for the fiscal year ending September 30, 1977, and $30,000,000 for the fiscal year ending September 30, 1978; and there is further authorized to be appro- priated for such purpose for each such year such additional sums as the Congress may deter- mine to be necessary. (b) Funds appropriated under this subchapter shall remain available until expended.] (a) There are authorized to be appropriated- (1) for the purpose of providing for the expenses of the National Institute of Handi- capped Research under section 202, other than expenses to carry out section 204, such sums as may be necessary for the fiscal year ending September 30, 1979, and for each of the three succeeding fiscal years; and (2) for the purpose of carrying out section 204, $50,000,000 for the fiscal year ending September 30, 1979,$75,000,000 for the fiscal year ending September 30, 1980, $90,000,- 000 for the fiscal year. ending September 30, 1981, and $100,000,000 for the fiscal year ending September 30, 1982. National Institute of Handicapped Research SEC. 202. (a) In order to promote and coordinate research with respect to handicapped individuals and to more effectively carry out the programs under section 204, there is estab- lished within the Department of Health, Education, and Welfare a National Institute of Handicapped Research (hereinafter in this title referred to as the 'Institute'), which shall be headed by a Director (hereinaf in this title referred to as the 'Director'). In the per- formance of his functions, the Director shall be directly responsible to the Secretary or to the same Under Secretary or Assistant Secretary of the Department of Health, Education, and Welfare to whom the Commissioner is responsible under section 3(a) of this Act. (b) The Director, through the Institute, shall be responsible for- (1) administering the programs described in section 204; (2) disseminating inf ormation acquired through research funded by the Institute to other Federal, State, and local public agencies and to private organizations engaged in research relating to rehabilitation or providing rehabilitation services; (3) coordinating, through the Interagency Committee established by section 203 of this Act, all Federal programs and policies relating to research in rehabilitation; (4) disseminating educational materials to primary and secondary schools, institu- tions of higher education, and to public and private entities concerning how the quality of life of handicapped individuals may be improved. (5) conducting an education program to inform the public about ways of providing for the rehabilitation of handicapped individuals, including inf ormation relating to family care and self care; 24 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (6) conducting conferences, seminars, and workshops (including in-service training programs) concerning research and engineering advances in rehabilitation pertinent to the problems of handicapped individuals; (7) taking whatever action is necessary to keep the Congress fully and currently. informed with respect to the implementation and conduct of programs and activities carried out under this title; and (8) producing, in conjunction with the Department of Labor, the National Center for Health Statistics, the Bureau of the Census, the Social Security Administration, and other Federal departments and agencies, as may be appropriate, statistical reports and studies on the employment, health, income, and other demographic characteristics of handicapped individuals and disseminating such reports and studies to rehabilitation professionals and others to assist in the planning and evaluation of vocational and other rehabilitation services for the handicapped. (c) (1) The Director of the Institute shall be appointed by the President, by and with the advice and consent of the Senate. The Director shall be compensated at the rate payable for level V of the Executive Schedule under section 5316 of title 5, United States Code. In carrying out any-of his functions under this section, the Director shall be guided by general policies of the National Council on the Handicapped established in title IV. The Director shall not delegate any of his functions to any officer who is not directly responsible to him. (2) There shall be a Deputy Director of the Institute (hereinafter in this section referred to as the "Deputy Director") who shall be appointed by the Secretary. The Deputy Director shall be compensated at the rate provided for grade GS-17 of the General Schedule under section 5332 of title 5, United States Code, and shall act for the Director during the absence or disability of the Director, exercising such powers as the Director may prescribe. In the case of any vacancy in the office of the Director, the Deputy Director shall serve as Director until a Director is appointed under paragraph (1). The position created by this paragraph shall be in addition to the number of positions placed in grade GS-17 of the General Schedule under section 5108 of title 5, United States Code. (3) The Director, subject to the approval of the President, may appoint, for terms not to exceed three years, without regard to the provisions of title 5, United States Code, govern- ing appointment in the competitive service, and may compensate, without regard to the pro- visions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, such technical and professional employees of the Institute as the Director deems necessary to accomplish the functions of the Institute and also appoint and compensate without regard to such provisions in a number not to exceed one-fifth of the number of full-time, regular technical and essional employees of the Institute. (4) The Director may obtain the services of consultants, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service. (d) The Director, pursuant to regulations which the Secretary shall prescribe, may establish and maintain fellowships with such stipends and allowances, including travel and subsistence expenses provided for under title 5, United States Code, as the Director considers necessary to procure the assistance of highly qualified research fellows from the United States and foreign countries. (e) The Director shall, pursuant to regulations which the Secretary shall prescribe, provide for scientific review of all research grants and programs over which he has authority by utilizing, to the maximum extent possible, appropriate peer review groups established within the Institute and composed of non-Federal scientists and other experts in the reha- bilitation field. (f) Not less than 90 percent of the funds appropriated under paragraph (2) of section 201 (a) to carry out section 204 shall be expended by the Director to carry out such section through grants or contracts with qualified public or private agencies and individuals. (g) The Director shall develop and submit to appropriate committees of the Congress within eighteen months after the effective date of this section a long-range plan for rehabilita- tion research which shall— (1) identify any research which should be conducted respecting the problems en- tered by handicapped individuals in their daily activities, especially problems related to employment; (2) determine the funding priorities for research activities under this section and explain the basis for such priorities, including a detailed description of any new types of research recommended under this paragraph for funding; and REHABILITATION ACT. OF 1973, AS AMENDED BY H.R. 12467 25 (3) specify appropriate goals and timetables for activities to be conducted under this section. The plan required by this subsection shall be developed by the Director in consultation with the Commissioner, the National Council on the Handicapped established under title IV, the Commissioner of Education, officials responsible for the administration of the Developmental Disabilities and Bill of Rights Act, the Interagency Committee established by section 203, and any other persons or entities the Director considers appropriate. Such plan shall be reviewed at least once every three years and may be revised at any time by the Director to the extent he considers necessary. (h) In order to promote cooperation among Federal departments and agencies conducting research programs, the Director shall consult with the administrators of such programs, and with the Interagency Committee established, by section 203, regarding the design of research projects conducted by such entities and the results and applications of such research. (i) (1) The Director shall take whatever actions he considers appropriate to provide for a comprehensive and coordinated research program under this title. In providing such a program, the Director may undertake joint activities with other Federal entities engaged in research and with appropriate private entities. Any Federal entity proposing to establish any research project related to the purposes of this Act shall consult, through the Interagency Committee established by section 203, with the Director in his role of Chairman of such Committee and provide the Director with sufficient opportunity to comment on the project. (2) Any person responsible for administering any program of the National Institutes of Health, the Veterans' Administration, the National Science Foundation, the National Aeronautics and Space Administration, the Bureau of Education for the Handicapped, or of any other Federal entity, shall, through the Interagency Committee established by section 203, consult and cooperate with the Director in carrying out such program if the program is related to the purposes of this section. INTERAGENCY COMMITTEE SEC. 203. (a) (1) In order to promote coordination and cooperation among Federal depart- ments and agencies conducting rehabilitation research programs, there is established within the Federal Government an Interagency Committee on Handicapped Research (here- inafter in this section referred to as the 'Committee'), chaired by the Director and comprised of such members as the President may designate, including the following (or-their designees) : the Director, the Commissioner, the Commissioner of Education, the Administrator of Vet- erans' Affairs, the Director of the National Institutes of Health, the Administrator of the National Aeronautics and Space Administration, the Secretary of Transportation, and the Director of the National Science Foundation. (2) The Committee shall meet not less than four times each year. (b) The Committee shall identify, assess, and seek to coordinate all Federal programs, activities, and projects, and plans for such programs, activities, and projects with respect to the conduct of research related to rehabilitation of handicapped individuals. (c) The Committee, not later than eighteen months after the date of enactment of this section, and annually thereafter, shall submit to the President and to the appropriate com- mittees of the Congress a report making such recommendations as the Committee deems appropriate with respect to coordination of policy and development of objectives and priori- ties for all Federal programs relating to the conduct of research related to rehabilitation of handicapped individuals. RESEARCH [SEC. 202.] Sec. 204. (a) [The Secretary, through the Commissioner, and in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to] The Director may make grants to and contracts with States and [public or nonprofit] public or private agencies and organizations, including institutions of higher edu- cation, to pay part of the cost of projects for the purpose of planning and conducting research, demonstrations, and related activities which bear directly on the development of methods, procedures, and devices to assist in the [provision of vocational rehabilitation services] provision of vocational and other rehabilitation services to handicapped individuals, especially those with the most severe handicaps, under this Act. Such projects may include medical and other scientific, technical, methodological, and other investigations into the nature of disability, methods of analyzing it, and [restorative techniques], including basic research 26 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 where related to rehabilitation techniques or services studies and analyses of industrial, vocational, social, psychiatric, psychological, economic, and other factors affecting rehabilita- tion of handicapped individuals; special problems of homebound and institutionalized individ- uals; studies, analyses, and demonstrations of architectural and engineering design adapted to meet the special needs of handicapped individuals; and- related activities which hold promise of increasing knowledge and improving methods in the rehabilitation of handicapped individuals and individuals with the most severe handicaps. (b) In addition to carrying out projects under subsection (a) of this section, [the Secre- tary, through the Commissioner, and in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to] the Director may make grants to pay part or all of the cost of the following specialized research activities: [(1) Establishment and support of Rehabilitation Research and Training Centers to be operated in collaboration with institutions of higher education for the purpose of provid- ing coordinated and advanced programs of research in rehabilitation and training of reha- bilitation research personnel, including, but not limited to, graduate training. Grants may include funds for services rendered by such a center to handicapped individuals in connection with such research and training activities.] (1) Establishment and support of Rehabilitation Research and Training Centers to be operated in collaboration with institutions of higher education for the purpose of (A) provid- ing training (including graduate training). to assist individuals to more effectively provide rehabilitation services, (B) providing coordinated and advanced programs of research in rehabilitation, and (C) providing training (including graduate training) for rehabilitation research and other rehabilitation personnel. The research to be carried out at each Center shall be determined on the basis of the particular needs of handicapped individuals in the geo- graphic area served by the Center, and may include basic or applied medical rehabilitation research, research regarding the psychological and social aspects of rehabilitation, and research related to vocational rehabilitation. The Centers shall be encouraged to develop practical applications for the findings of their research. Grants may include funds for services rendered by such a center to handicapped individuals in connection with such research and training activities. (2) Establishment and support of Rehabilitation Engineering Research Centers to (A) develop innovative methods of applying advanced medical technology, scientific achievement, and psychiatric psychological and social knowledge to solve rehabilitation problems through planning and conducting research, including cooperative research and public or private agencies and organizations, designed to produce new scientific knowledge, equipment, and devices suitable for solving problems in the rehabilitation of handicapped individuals and for reducing environmental barriers, and to (B) cooperate with State agencies designated pursuant to section 101 in developing systems of information exchange and coordination to promote the prompt utilization of engineering and other scientific research to assist in solving problems in the rehabilitation of handicapped individuals. (3) Conduct of a program for spinal cord injury research, to include support of spinal cord injuries projects and demonstrations established pursuant to section 303(b), which will (A) insure dissemination of research findings among all such centers, (B) provide encouragement and support for initiatives and new approaches by individual and institutional investigators, and (C) establish and maintain close working relationships with other govern- mental and voluntary institutions and organizations engaged in similar efforts, in order to unify and coordinate scientific efforts, encourage joint planning, and promote the interchange of data and reports among spinal cord injury investigators. (4) Conduct a program for end-stage renal disease research, to include support of projects and demonstrations for providing special services (including transportation and dialysis), artificial kidneys, and supplies necessary for the rehabilitation of individuals suffer- ing from such disease and which will (A) insure dissemination of research findings, (B) provide encouragement and support for initiatives and new approaches by individual and institutional investigators, and (C) establish and maintain close working relationships with other governmental and voluntary institutions and organizations engaged in similar efforts, in order to unify and coordinate scientific efforts, encourage joint planning, and promote the interchange of data and reports among investigators in the field of end-stage renal disease. No person shall be selected to participate in such program who is eligible for services for such disease under any other provision of law. (5) Conduct of a program for international rehabilitation research, demonstration, and training for the purpose of developing new knowledge and methods in the rehabilitation of REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 27 handicapped individuals in the United States, cooperating with and assisting in developing and sharing information found useful in other nations in the rehabilitation of handicapped individuals, and initiating a program to exchange experts and technical assistance in the field of rehabilitation of handicapped individuals with other nations as a means of increasing the levels of skill of rehabilitation personnel. (6) Conduct of a research program concerning the use of existing telecommunications systems (including telephone, television, satellite, radio, and other similar systems) which have the potential for substantially improving service delivery methods, and the development of appropriate programing to meet the particular needs of handicapped individuals. (7) Conduct of a program of joint projects with the National Institutes of Health, the Health Services Administration, the Administration on Aging, the National Science Founda- tion, the Veterans' Administration, the Office of Education, the National Aeronautics and Space Administration, other Federal agencies, and private industry in areas of joint interest involving rehabilitation. (8) Conduct of a program of research related to the rehabilitation of handicapped chil- dren and of handicapped individuals who are aged sixty or older. (9) Conduct of a research program to develop and demonstrate innovative methods to attract and retain professionals to serve in rural areas in the rehabilitation of handicapped and severely handicapped individuals. (10) Conduct of a model research and demonstration project designed to assess the feasibility of establishing a center for producing and distributing to deaf individuals cap- tioned video cassettes providing a broad range of educational, cultural, scientific, and voca- tional programing. (11) Conduct of a model research and demonstration program to develop innovative methods of providing services for preschool age handicapped children, including the follow- ing: (A) early intervention, parent counseling, infant stimulation, early identification, diag- nosis, and evaluation of severely handicapped children up to the age of five, with a special emphasis on severely handicapped children up to the age of three; (B) such physical therapy, language development, pediatric, nursing, and psychiatric services as are necessary for such children; and (C) appropriate services for the parents of such children, including psychiatric services, parent counseling, and training. (12) Conduct of a model research and training program under which model training centers shall be established to develop and use more advanced and effective methods of evaluat- ing and developing the employment potential of handicapped individuals, including programs which- (A) provide training and continuing education for personnel involved with the employment of handicapped individuals; (B) develop model procedures for testing and evaluating the employment potential of handicapped individuals; (C) develop model training programs to teach handicapped individuals skills which will lead to appropriate employment; (D) develop new approaches for job placement of handicapped individuals, includ- ing new followup procedures relating to such placement; and (E) provide information services regarding education, training, employment, and job placement for handicapped individuals. (c) The provisions of section 306 shall apply to assistance provided under this section, unless the context indicates to the contrary. [TRAINING [SEC. 203. (a) The Secretary, through the Commissioner, in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to make grants to and contracts with States and public or nonprofit agencies and organiza- tions, including institutions of higher education, to pay part of the cost of projects for train- ing, traineeships, and related activities designed to assist in increasing the numbers of personnel trained in providing vocational services to handicapped individuals and in per- forming other functions necessary to the development of such services. [(b) In making such grants or contracts, funds made available for any year will be uti- lized to provide a balanced program of assistance to meet the medical, vocational, and other 28 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 personnel training needs of both public and private rehabilitation programs and institutions, to include projects in rehabilitation medicine, rehabilitation nursing, rehabilitation counseling, rehabilitation social work, rehabilitation psychology, physical therapy, occupational therapy, speech pathology and audiology, workshop and facility administration, prosthetics and orthotics, specialized personnel in providing services to blind and deaf individuals, recreation for ill and handicapped individuals, and other fields contributing to the rehabilitation of handicapped individuals, including homebound and institutionalized individuals and handi- capped individuals with limited English-speaking ability. No grant shall be made under this section for furnishing to an individual any one course of study extending for a period in exess of four years.] [REPORTS [SEC. 204. There shall be included in the annual report to the Congress required by section 404 a full report on the research and training activities carried out under this title and the extent to which such research and training has contributed directly to the development of methods, procedures, devices, and trained personnel to assist in the provision of vocational rehabilitation services to handicapped individuals and those with the most severe handicaps under this Act.] TITLE III-[SPECIAL FEDERAL RESPONSIBILITIES] SUPPLEMENTARY SERVICES AND FACILITIES PART A-CONSTRUCTION AND TRAINING PROGRAMS DECLARATION OF PURPOSE SEC. 300. The purpose of this title is to- (1) authorize grants and contracts to assist in the construction and initial staffing of rehabilitation facilities and authorize such staffing as the Commissioner deems appro- priate; (2) authorize grants and contracts to assist in the provision of vocational training services to handicapped individuals; (3) authorize grants for special projects and demonstrations which hold promise of expanding or otherwise improving rehabilitation services to handicapped individuals, including individuals with spinal cord injuries, older blind individuals, and deaf individ- uals whose maximum vocational potential has not been reached, which experiment with new types of patterns of services or devices for the rehabilitation of handicapped indi- viduals (including opportunities for new careers for handicapped individuals, and for other individuals in programs serving handicapped individuals) and which provide voca- tional rehabilitation services to handicapped migratory agricultural workers or seasonal farmworkers; [(4) establish and operate a National Center for Deaf-Blind Youths and Adults;] and [(5)] (4) establish uniform grant and contract requirements for programs assisted under this title and certain other provisions of this Act. GRANTS FOR CONSTRUCTION OF REHABILITATION FACILITIES SEC. 301. (a) For the purpose of making grants and contracts under this section for con- struction of rehabilitation facilities, [initial] staffing, and planning assistance, there is au- thorized to be appropriated such sums as may be necessary [for the fiscal years endng June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978.] for each fiscal year ending before October 1, 1982. Amounts so appropriated shall remain available for expenditure with respect to construction projects funded or [initial] staffing grants made under this section prior to [October 1, 1980] October 1, 1983. (b) (1) The [Secretary] Commissioner is authorized to make grants to assist in meeting the costs of construction of public or nonprofit rehabilitation facilities. Such grants may be made to States and public or nonprofit organizations and agencies for projects for which ap- plications are approved by the [Secretary] Commissioner under this section. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 29 (2) To be approved, an application for a grant for a construction project under this section must conform to the provisions of section 306. (3) The amount of a grant under this section with respect to any construction project in any State shall be equal to the same percentage of the cost of such project as the Federal share which is applicable in the case of rehabilitation facilities (as defined in section 645 (g) of the Public Health Service Act (42 U.S.C. in such State, except that if the Fed- eral share with respect to rehabilitation facilities in such State is determined pursuant to sub- paragraph (b) (2) of section 645 of such Act (42 U.S.C. 291o(b) (2)), the percentage of the cost for purposes of this section shall be determined in accordance with regulations pre- scribed by the [Secretary] Commissioner designed to achieve as nearly as practicable results comparable to the results obtained under such subparagraph. (c) The [Secretary] Commissioner is also authorized to make grants to assist in the initial staffing of any public or nonprofit rehabilitation facility constructed after the date of enactment of this section (whether or not such construction was financed with the aid of a grant under this section) by covering part of the costs (determined in accordance with regula- tions the [Secretary] Commissioner shall prescribe) of compensation of professional or tech- nical personnel of such facility during the period beginning with the commencement of the operation of such facility and ending with the close of four years and three months after the month in which such operation commenced. Such grants with respect to any facility may not exceed 75 per centum of such costs for the period ending with the close of the fifteenth month following the month in which such operation commenced, 60 per centum of such costs for the first year thereafter, 45 per centum of such costs for the second year thereafter, and 30 per centum of such costs for the third year thereafter. (d) The [Secretary] Commissioner is also authorized to make grants upon application approved by the State agency designated under section 101 to administer the State plan, to public or nonprofit agencies, institutions, or organizations to assist them in meeting the ccst of planning rehabilitation facilities and the services to be provided by such facilities. VOCATIONAL TRAINING SERVICES FOR HANDICAPPED INDIVIDUALS SEC. 302. (a) For the purpose of making grants and contracts under this section, there is authorized to be appropriated such sums as may be necessary for [the fiscal years ending June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978.] each fiscal year ending before October 1, 1982. (b) (1) The [Secretary] Commissioner is authorized to make grants to States and public or nonprofit organizations and agencies to pay up to 90 per centum of the cost of projects for providing vocational training services to handicapped individuals, especially those with the most severe handicaps, in public or nonprofit rehabilitation facilities. (2) (A) Vocational training services for purposes of this subsection shall include train- ing with a view toward career advancement; training in occupational skills; related services, including work evaluation, work testing, provision of occupational tools and equipment re- quired by the individual to engage in such training, and job tryouts; and payment of weekly allowances to individuals receiving such training and related services. (B) Such allowances may not be paid to any individual for any period in excess of two years, and such allowances for any week shall not exceed $30 plus $10 for each of the individ- ual's dependents, or $70, whichever is less. In determining the amount of such allowances for any individual, consideration shall be given to the individual's need for such an allowance, in- cluding any expenses reasonably attributable to receipt of training services, the extent to which such an allowance will help assure entry into and satisfactory completion of training, and such other factors, specified by the [Secretary] Commissioner, as will promote such in- dividual's capacity to engage in gainful and suitable employment. (3) The [Secretary] Commissioner may make a grant for a project pursuant to this subsection only on his determination that (A) the purpose of such project is to prepare handi- capped individuals, especially those with the most severe handicaps, for gainful and suitable employment; (B) the individuals to receive training services under such project will include only those who have been determined to be suitable for and in need of such training services by the State agency or agencies designated as provided in section 101 (a) (1) of the State in which the rehabilitation facility is located; (C) the full range of training services will be made available to each such individual, to the extent of his need for such services; and (D) the project, including the participating rehabilitation facility and the training services provided, meet such other requirements as he may prescribe in regulations for carrying out the purposes of this subsection. 30 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (c) (1) The [Secretary Commissioner is authorized to make grants to public or non- profit rehabilitation facilities, or to an organization or combination of such facilities, to pay the Federal share of the cost of projects to analyze, improve, and increase their professional services to handicapped individuals, their management effectiveness, or any other part of their operations affecting their capacity to provide employment and services for such individuals. (2) No part of any grant made pursuant to this subsection may be used to pay costs of acquiring, constructing, expanding, remodeling, or altering any building. [MORTGAGE INSURANCE FOR REHABILITATION FACILITIES [SEC. 303. (a) It is the purpose of this section to assist and encourage the provision of urgently needed facilities for programs for handicapped individuals. [(b) For the purpose of this section the terms "mortgagee", "maturity date", and "State" shall have the meaning respectively set forth in section 207 of the National Housing Act. [(c) The Secretary, in consultation with the Secretary of Housing and Urban Develop- ment, and subject to the provisions of section 306, is authorized to insure up to 100 per centum of any mortgage (including advances on such mortgage during construction) in accordance with the provisions of this section upon such terms and conditions as he may prescribe and make commitments for insurance of such mortgage prior to the date of its execution or dis- bursement thereon, except that no mortgage of any public agency shall be insured under this section if the interest from such mortgage is exempt from Federal taxation. (d) In order to carry out the purpose of this section, the Secretary is authorized to insure any mortgage which covers construction of a public or nonprofit rehabilitation facility, including equipment to be used in its operation, subject to the following conditions: [(1) The mortgage shall be executed by a mortgagor, approved by the Secretary, who demonstrates ability successfully to operate one or more programs for handicapped in- dividuals. The Secretary may in his discretion require any such mortgagor to be regulated or restricted as to minimum charges and methods of financing, and, in addition thereto, if the mortgagor is a corporate entity, as to capital structure and rate of return. As an aid to the regulation or restriction of any mortgagor with respect to any of the foregoing matters, the Secretary may make such contracts, with and acquire for not to exceed $100 such stock of interest in, such mortgagor as he may deem necessary. Any stock or interest SO purchased shall be paid for out of the Rehabilitation Facilities Insurance Fund (estab- lished by subsection (h) of this section), and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Secretary under the insurance. [(2) The mortgage shall involve a principal obligation in an amount not to exceed 90. per centum of the estimated replacement cost of the property or project, including equipment to be used in the operation of the rehabilitation facility, when the proposed improvements are completed and the equipment is installed, but not including any cost covered by grants in aid under this Act or any other Federal Act. [(3) The mortgage shall- [(A) provide for complete amortization by periodic payments within such term as the Secretary shall prescribe, and ((B) bear interest (exclusive of premium charges for insurance and service charges, if any) at not to exceed such per centum per-annum on the principal obliga- tion outstanding at any time as the Secretary finds necessary to meet the mortgage market. [(e) The Secretary shall fix and collect premium charges for the insurance of mortgages under this section which shall be payable annually in advance by the mortgagee, either in cash or in debentures of the Rehabilitation Facilities Insurance Fund (established by subsection (h) of this section) issued at par plus accrued interest. In the case of any mortgage such charge shall be not less than an amount equivalent to one-fourth of 1 per centum rannum nor more than an amount equivalent to 1 per centum per annum of the amount of the principal obligation of the mortgage outstanding at any one time, without taking into account delinquent payments or prepayments. In addition to the premium charge herein provided for, the Secretary is au- thorized to charge and collect such amounts as he may deem reasonable for the appraisal of a property or project during construction, but such charges for appraisal and inspection shall not aggregate more than 1 per centum of the original principal face amount of the mortgage. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 31 [(f) The Secretary may consent to the release of a part or parts of the mortgaged prop- erty or project from the lien of any mortgage insured under this section upon such terms and conditions as he shall by regulation prescribe. [ (g) (1) The Secretary shall have the same functions, powers, and duties (insofar as applicable) with respect to the insurance of mortgages under this section as the Secretary of Housing and Urban Development has with respect to the insurance of mortgages under title II of the National Housing Act. The Secretary may, pursuant to a formal delegation agree- ment containing regulations prescribed by him, delegate to the Secretary of Housing and Urban Development authority to administer this section in accordance with such delegation agreement. (2) The provisions of subsections (e), (g), (h), (i), (j), (k), (1), and (n) of section 207 of the National Housing Act shall apply to mortgages insured under this section; except that, for the purposes of their application with respect to such mortgages, all references. in such provisions to the General Insurance Fund shall be deemed to refer to the Rehabilitation Facilities Insurance Fund (established by subsection (h) of this section) and all references in such provisions to "Secretary" shall be deemed to refer to the Secretary of Health, Educa- tion, and Welfare. [(h) (1) There is hereby created a Rehabilitation Facilities Insurance Fund which shall be used by the Commissioner as a revolving fund for carrying out all the insurance provisions of this section. All mortgages insured under this section shall be insured under and be the obligation of the Rehabilitation Facilities Insurance Fund. [(2) The general expenses of the operations of the Rehabilitation Services Administra- tion relating to mortgages insured under this section may be charged to the Rehabilitation Facilities Insurance Fund. [(3) Moneys in the Rehabilitation Facilities Insurance Fund not needed for the current operations of the Rehabilitation Services Administration with respect to mortgages insured under this section shall be deposited with the Treasurer of the United States to the credit of such fund, or invested in bonds or other obligations of, or in bonds or other obligations guaran- teed as to principal and interest by, the United States. The Commissioner may, with the ap- proval of the Secretary of the Treasury, purchase in the open market debentures issued as obligations of the Rehabilitation Facilities Insurance Fund. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtainable from other investments authorized by this section. Debentures SO purchased shall be canceled and not reissued. [(4) Premium charges, adjusted premium charges, and appraisals and other fees re- ceived on account of the insurance of any mortgage under this section, the receipts derived from property covered by such mortgages and from any claims, debts, contracts, property, and security assigned to the Secretary in connection therewith, and all earnings as the assets of the fund, shall be credited to the Rehabilitation Facilities Insurance Fund. The principal of, and interest paid and to be paid on, debentures which are the obligation of such fund, cash insurance payments, and adjustments, and expense incurred in the handling, management, renovation, and disposal of properties acquired, in connection with mortgages insured under this section, shall be charged to such fund. [(5) There are authorized to be appropriated to provide initial capital for the Rehabilita- tion Facilities Insurance Fund, and to assure the soundness of such fund thereafter, such sums as may be necessary, except that the total amount of outstanding mortgages insured shall not exceed $200,000,000.] LOAN GUARANTEES FOR REHABILITATION FACILITIES SEC. 303. (a) It is the purpose of this section to assist and encourage the provision of needed facilities for programs for handicapped individuals primarily served by State re- habilitation programs. (b) The Commissioner may, in accordance with this section and subject to section 306, guarantee the payment of principal and interest on loans made to nonprofit private entities by non-Federal lenders and by the Federal Financing Bank for the construction of rehabilita- tion facilities, including equipment used in their operation. (c) In the case of a guarantee of any loan to a nonprofit private entity under this section, the Commissioner shall pay, to the holder of such loan and for and on behalf of the project for which the loan was made, amounts sufficient to reduce by 2 percent per annum the net effective interest rate otherwise payable on such loan. Each holder of a loan which is guaranteed under 32 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 this section shall have a contractual right to receive from the United States interest payments required by the preceding sentence. (d) The cumulative total of the principal of the loans outstanding at any time with respect to which guarantees have becn issued, or which have been directly made, ma not exceed $100,000,000. (e) (1) The Commissioner may not approve a loan guarantee for a project under this section unless he determines that (A) the terms, conditions, security (if any), and schedule and amount of repayments with respect to the loan are sufficient to protect the financial in- terests of the United States and are otherwise reasonable, including a determination that the rate of interest does not exceed such per centum per annum on the principal obligation out- standing as the Commissioner determines to be reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the United States, and (B) the loan would not be available on reasonable terms and conditions without the guarantee under this section. (2) (A) The United States shall be entitled to recover from the applicant for a loan guarantee under this section the amount of any payment made pursuant to such guarantee, unless the Commissioner for good cause waives such right of recovery. Upon making any such payment, the United States shall be subrogated to all of the rights of the recipient of the pay- ments with respect to which the guarantee was made. (E) To the extent permitted by subparagraph (C), any terms and conditions applicable to a loan guarantee under this section (including terms and conditions imposed under para- graph (1)) may be modified by the Commissioner to the extent he considers consistent with the interests of the United States. (C) Any loan guarantee made by the Commissioner under this section shall be incon- testable (i) in the hands of an applicant on whose behalf such guarantee is made unless the applicant engaged in fraud or misrepresentation in securing such guarantee, and (ii) as to any person (or his successor in interest) who makes or contracts to make a loan to such appli- cant in reliance thereon unless such person (or his successor in interest) engaged in fraud or misrepresentation in making or contracting to make such loan. (D) Guarantees of loans under this section shall be subject to such further terms and conditions as the Commissioner considers necessary to assure that the purposes of this sec- tion will be achieved. (f)(1) There is established in the Treasury a loan guarantee fund (hereinafter in this subsection referred to as the "fund") which shall be available to the Commissioner without fiscal year limitation, in such amounts as may be specified from time to time in appropriation Acts- (A) to enable him to discharge his responsibilities under loan guarantees issued by him under this section; and (B) for payment of interest under subsection (c) on loans guaranteed under this section. There are authorized to be appropriated such amounts as may be necessary to provide the sums required for the fund. There shall also be deposited in the fund amounts received by the Commissioner in connection with loan guarantees under this section and other property or assets derived by him from his operations respecting such loan guarantees, including any money derived from the sale of assets. (2) (A) If at any time the sums in the fund are insufficient to enable the Commissioner- (i) to make payments of interest under subsection (c), or (ii) to otherwise comply with guarantees under this section of loans to nonprofit private entities; he is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Commissioner with the approval of the Secretary of the Treasury. (B) Such notes or other obligations shall bear interest at a rate determined by the Secre- tary of the Treasury, taking into consideration the current average market yield on outstand- ing marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 33 (C) The Secretary of the Treasury shall purchase any notes and other obligations issued under this paragraph, and for that purpose he may use as a public debt transaction the pro- ceeds from the sale of any securities issued under the Second Liberty Bond Act. The purposes for which securities may be issued under that Act are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this paragraph. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as a public debt transaction of the United States. (D) Sums borrowed under this paragraph shall be deposited in the fund and redemption of such notes and obligations shall be made by the Commissioner from the fund. [SPECIAL PROJECTS AND DEMONSTRATIONS] TRAINING SEC. 304. (a) (1) For the purpose of making grants under this section for special proj- ects and demonstrations (and research and evaluation connected therewith), there is author- ized to be appropriated $15,000,000 for the fiscal year ending June 30, 1974, $17,000,000 for the fiscal year ending June 30, 1975, $20,000,000 for the fiscal year ending June 30, 1976, and such sums as may be necessary for the fiscal years ending September 30, 1977, and Septem- ber 30, 1978; and there is further authorized to be appropriated for such purposes for each such year such additional sums as the Congress may determine to be necessary. [(2) Of the amounts appropriated pursuant to paragraph (1) of this subsection, 5 per centum in each fiscal year shall be available only for the purpose of making grants under subsection (c) of this section, and there is authorized to be appropriated in each such fiscal year such additional amount as may be necessary to equal, when added to the amount made available for the purpose of making grants under such subsection an amount of $5,000,000 to be available for each such fiscal year. (b) The secretary, subject to the provisions of section 306, shall make grants to States and public or nonprofit agencies and organizations for paying part or all of the cost of special projects and demonstrations (and research and evaluations in connection therewith) (1) for establishing programs and facilities for providing vocational rehabilitation services which hold promise of expanding or otherwise improving rehabilitation services to handicapped individuals (especially those with the most severe handicaps) including individuals with spinal cord injuries, older blind in dividuals, and deaf individuals, whose maximum vocational potential has not been reached, (2) for applying new types or patterns of services or devices (including opportunities for new careers for handicapped individuals or other individuals in programs servicing handicapped individuals), and (3) for operating programs (including renovation and construction of facilities, where appropriate) to demonstrate methods of mak- ing recreational activities fully accessible to handicapped individuals. Projects and demon- strations providing services to individuals with spinal cord injuries shall include provisions to- [(A) establish, on an appropriate regional basis, a multidisciplinary system of pro- viding vocational and other rehabilitation services, specifically designed to meet the special needs of individuals with spinal cord injuries, including acute care as well as periodic inpatient or outpatient followup and services; [(B) demonstrate and evaluate the benefits to individuals with spinal cord injuries served in, and the degree of cost effectiveness of, such a regional system; [(C) demonstrate and evaluate existing, new, and improved methods and equipment essential to the care, management, and rehabilitation of individuals with spinal cord injuries; and [(D) demonstrate and evaluate methods of community outreach for individuals with spinal cord injuries and community education in connection with the problems of such individuals in areas such as housing, transportation, recreation, employment, and com- munity activities. [(c) The Secretary, subject to the provisions of section 306, is authorized to make grants to any State agency designated pursuant to State plan approved under section 101, or to any local agency participating in the administration of such a plan, to pay up to 90 per centum of the cost of projects or demonstrations for the provision of vocational rehabilitation services to handicapped individuals, as determined in accordance with rules prescribed by the Secretary of Labor, who are migratory agricultural workers or seasonal farmworkers, and to members of their families (whether or not handicapped) who are with them, includ- ing maintenance and transportation of such individuals and members of their families where necessary to the rehabilitation of such individuals. Maintenance payments under this section 34 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 shall be consistent with any maintenance payments made to other handicapped individuals in the State under this Act. Such grants shall be conditioned upon satisfactory assurance that in the provision of such services there will be appropriate cooperation between the grantee and other public or nonprofit agencies and organizations having special skills and experience in the provision of services to migratory agricultural workers, seasonal farm- workers, or their families. This subsection shall be administered in coordination with other programs serving migrant agricultural workers and seasonal farmworkers, including pro- grams under title I of the Elementary and Secondary Education Act of 1965, section 311 of the Economic Opportunity Act of 1964, the Migrant Health Act, and the Farm Labor Con- tractor Registration Act of 1963. [(d) The Secretary is authorized to make contracts or jointly financed cooperative arrangements with employers and organizations for the establishment of projects. designed to prepare handicapped individuals for gainful and suitable employment in the competitive labor market under which handicapped individuals are provided training and employment in a realistic work setting and such other services (determined in accordance with regulations prescribed by the Secretary) as may be necessary for such individuals to continue to engage in such employment. [(e) (1) The Secretary is authorized, directly or by contract with State vocational rehabilitation agencies or experts or consultants or groups thereof, to provide technical assistance (A) to rehabilitation facilities, and (B) with the concurrence of the Board estab- lished by section 502, for the purpose of removal of architectural and transportation barriers, to any public or nonprofit agency, institution, organization or facility. (2) Any such experts or consultants shall, while serving pursuant to such contracts, be entitled to receive compensation at rates fixed by the Secretary, but not exceeding the pro rata pay rate for a person employed as a GS-18, under section 5332 of title 5, United States Code, including traveltime, and while so serving away from their homes or regular places of business, they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently.] (a) [The Secretary, through the Commissioner, in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to] The Com- missioner may make grants to and contracts with States and public or nonprofit agencies and organizations, including institutions of higher education, to pay part of the cost of projects for training, traineeships, and related activities designed to assist in increasing the numbers of personnel trained in providing vocational, medical, social and psychological rehabilitation services to handicapped individuals [and], including personnel specially trained in providing employment assistance to handicapped individuals through job development and job placement services, and personnel trained in performing other functions necessary to the development of such services. (b) In making such grants or contracts, funds made available for any year will be utilized to provide a balanced program of assistance to meet the medical, vocational, and other personnel training needs of both public and private rehabilitation programs and institutions, to include projects in rehabilitation medicine, rehabilitation nursing, rehabilitation counsel- ing, rehabilitation social work, rehabilitation psychiatry, rehabilitation psychology, physical therapy, occupational therapy, speech pathology and audiology, workshop and facility admin- istration, prosthetics and orthotics, specialized personnel in providing services to blind and deaf individuals, specialized personnel in providing job development and job placement serv- ices for handicapped individuals, recreation for ill and handicapped individuals, and other fields contributing to the rehabilitation of handicapped individuals, including homebound and institutionalized individuals and handicapped individuals with limited English-speaking ability. No grant shall be made under this section for furnishing to an individual any one course of study extending for a period in excess of four years. (c) The Commissioner shall evaluate the impact of the training programs conducted under this section, shall determine training needs for personnel necessary to provide services to handicapped individuals, and shall develop a long-term rehabilitation manpower plan de- signed to target resources on areas of personnel shortage. (d) (1) For the purpose of training α⁻ sufficient number of interpreters to meet the com- munications needs of deaf individuals, the Secretary, through the Office of Information and Resources for the Handicapped, may award grants under this section to any public or private nonprofit agency or organization to establish interpreter training programs or to provide REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 35 financial assistance for ongoing interpreter training programs. Not more than twelve pro- grams shall be established or assisted by grants under this section. The Secretary shall award grants for programs in such geographic areas throughout the United States as the Secretary considers appropriate to best carry out the purpose of this section. Priority shall be given to public or private nonprofit organizations with existing programs that have demonstrated their capacity for providing interpreter training services. (2) No grant shall be awarded under this section unless the applicant has submitted an application to the Secretary in such form, and in accordance with such procedures, as the Secretary may require. Any such application shall- (A) describe the manner in which an interpreter training program would be de- veloped and operated during the five-year period following the award of any grant under this section; (B) demonstrate the applicant's capacity or potential for providing training for interpreters for deaf individuals; (C) provide assurances that any interpreter trained or retrained under such pro- gram shall meet such minimum standards of competency as the Secretary may establish for purposes of this section; (D) provide assurances that (i) to the extent appropriate, the applicant shall provide for the training or retraining (including short-term and in-service training) of teachers who are involved in providing instruction to deaf individuals but who are not certified as teachers of deaf individuals, and (ii) funds for such in-service training shall be pro- vided under this section only through funds appropriated under the Education for all Handicapped Children Act; and (E) contain such other information as the Secretary may require. (e) There are authorized to be appropriated to carry out this section $34,000,000 for the fiscal year ending September 30, 1979, $40,000,000 for the fiscal year ending September 30, 1980, $45,000,000 for the fiscal year ending September 30, 1981, and $50,000,000 for the fiscal year ending September 30, 1982. There are further authorized to be appropriated for each such fiscal year such additional sums as the Congress may determine to be necessary to carry out this section. [NATIONAL CENTER FOR DEAF-BLIND YOUTHS AND ADULTS [SEC. 305. (a) For the purpose of establishing and operating a Helen Keller National Center for Deaf-Blind Youths and Adults, there is authorized to be appropriated such sums as may be necessary for construction, which shall remain available until expended, and such sums as may be necessary for operations for the fiscal years ending June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978. [(b) In order- [(1) to demonstrate methods of (A) providing the specialized intensive services, and other services, needed to rehabilitate handicapped individuals who are both deaf and blind, and (B) training the professional and allied personnel needed adequately to staff facilities specifically designed to provide such services and training to such personnel who have been or will be working with deaf-blind individuals; [(2) to conduct research in the problems of, and ways of meeting the problems of rehabilitating, deaf-blind individuals; and [(3) to aid in the conduct of related activities which will expand or improve the services for or help improve public understanding of the problems of deaf-blind indi- viduals; the Secretary, subject to the provisions of section 306, is authorized to enter into an agree- ment with any public or nonprofit agency or organization for payment by the United States of all or part of the costs of the establishment and operation, including construction and equip- ment, of a center for vocational rehabilitation of handicapped individuals who are both deaf and blind, which center shall be known as the Helen Keller National Center for the Deaf-Blind Youths and Adults. [(c) Any agency or organization desiring to enter into such agreement shall submit a proposal therefor at such time, in such manner, and containing such information as may be prescribed in regulations by the Secretary. In considering such proposals the Secretary shall 36 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 give preference to proposals which (1) give promise of maximum effectiveness to the orga- nization and operation of the Helen Keller National Center, and (2) give promise of offering the most substantial skill, experience, and capability in providing a broad program of service, research, training, and related activities in the field of rehabilitation of deaf-blind individuals.] COMPREHENSIVE REHABILITATION CENTERS SEC. 305. (a) (1) In order to provide a focal point in communities for the development and delivery of services designed primarily for handicapped persons, the Commissioner may make grants to any designated State unit to establish and operate comprehensive rehabilita- tion centers. The centers shall be established in order to provide a broad range of services to handicapped individuals, including information and referral services, counseling services, and job placement, health, educational, social, and recreational services, as well as to provide facilities for recreational activities. (2) To the maximum extent practicable, such centers shall provide, upon request; to local governmental units and other public and private nonprofit entities located in the area such information and technical assistance (including support personnel such as interpreters for the deaf) as may be necessary to assist those entities in complying with this Act, particularly the requirements of section 504. (b) No grant may be made under this section unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application for a grant unless the application- (1) contains assurances that the designated State unit will use funds provided by such grant in accordance with subsections (c) and (d); and (2) contains such other information, and is submitted in such form and in accordance with such procedures, as the Commissioner may require. (c) (1) The designated State unit may- (A) in accordance with subsection (e) make grants to units of general purpose local government or to other public or nonprofit private agencies or organizations and may make contracts with any agency or organization to pay not to exceed 80 percent of the cost of- (i) leasing facilities to serve as comprehensive rehabilitation centers; (ii) expanding, remodeling, or altering facilities to the extent necessary to adapt them to serve as comprehensive rehabilitation centers; (iii) operating such centers; or (iv) carrying out any combination of the activities specified in this subparagraph; and (B) directly carry out the activities described in subparagraph (A), except that not more than 80 percent of the costs of providing any comprehensive rehabilita- tion center may be provided from funds under this section. (3) Funds made available to any designated State unit under this section for the purpose of assisting in the operation of a comprehensive rehabilitation center may be used to compensate professional and technical personnel required to operate the center and to deliver services in the center, and to provide equipment for the center. (d) (1) The designated State unit may approve a grant or enter into a contract under subsection (c) only if the application for such grant or contract meets the requirements speci- fied in paragraphs (1), (2), (4), and (5) of section 306(b) and if the application contains assurances that any facility assisted by such grant or contract shall be in reasonably close proximity to the majority of individuals eligible to use the comprehensive rehabilitation center. (2) Any designated State unit which directly provides for comprehensive rehabilitation centers under subsection (c) (1) (B) shall use funds under this section in the same manner as any other grant recipient is required to use such funds. (e) If within 20 years after the completion of any construction project for which funds have been paid under this section- (1) the owner of the facility ceases to be a public or nonprofit private agency or organization, or REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 37 (2) the facility ceases to be used for the purposes for which it was leased or con- structed (unless the Commissioner determines, in accordance with regulations, that there is good cause for releasing the applicant or other owner from the obligation to do so), the United States shall be entitled to recover from the grant recipient or other owner of the facility an amount which bears the same ratio to the value of the facility (or so much thereof as constituted an approved project or projects) at the time the United States seeks recovery as the amount of such Federal funds bore to the cost of renovating the facility under subsection (c) (1) (A) (ii). Such value shall be determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated. (f) The requirements of section 306 shall not apply to funds allotted under this section, except that subsections (g) and (h) of such section shall be applicable with respect to such funds. (g) There are authorized to be appropriated to carry out this section such sums as may be necessary for the fiscal year ending September 30, 1979, and for the three succeeding fiscal years. GENERAL GRANT AND CONTRACT REQUIREMENTS SEC. 306. (a) The provisions of this section shall apply to all projects approved and as- sisted under this title[.], except as otherwise provided in section 305(g). The [Secretary] Commissioner shall insure compliance with this section prior to making any grant or entering into any contract or agreement under this title, except projects authorized under section 302. (b) To be approved, an application for assistance for a construction project, or for a project which involves construction, under this title must- (1) contain or be supported by reasonable assurances that (A) for a period of not less than twenty years after completion of construction of the project it will be used as a public or nonprofit facility, (B) sufficient funds will be available to meet the non-Federal share of the cost of construction of the project, and (C) sufficient funds will be available, when construction of the project is completed, for its effective use for its intended purpose; (2) provide that Federal funds provided to any agency or organization under this title will be used only for the purposes for which provided and in accordance with the applicable provisions of this section and the section under which such funds are provided; [(3) provide that the agency or organization receiving Federal funds under this title will make an annual report to the Secretary, which he shall summarize and comment upon in the annual report to the Congress submitted under section 404;] (3) provide that the agency or organization receiving Federal funds under this title will make an annual report to the Commissioner, which the Commissioner shall submit to the Secretary for inclusion (in summarized form) in the annual report submitted to the Congress under section 13; (4) be accompanied or supplemented by plans and specifications which have been approved by the Board established by section 502 in which due consideration shall be given to excellence of architecture and design, and to the inclusion of works of art (not representing more than 1 per centum of the cost of the project), and which comply with regulations prescribed by the [Secretary] Commissioner related to minimum standards of construction and equipment (promulgated with particular emphasis on securing com- pliance with the requirements of the Architectural Barriers Act of 1968 (Public Law 90- 480)), and with regulations of the Secretary of Labor relating to occupational health and safety standards for rehabilitation facilities; and (5) contain or be supported by reasonable assurance that any laborer or mechanic employed by any contractor or subcontractor in the performance of work on any con- struction aided by payments pursuant to any grant under this section will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with-Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5) ; and the Secretary of Labor shall have, with respect to the labor stand- ards specified in this paragraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c). (c) Upon approval of any application for a grant or contract for a project under this title, the [Secretary] Commissioner shall reserve, from any appropriation available there- 38 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 fore, the amount of such grant or contract determined under this title. In case an amendment to an approved application is approved, or the estimated cost of a project is revised upward, any additional payment with respect thereto may be made from the appropriation from which the original reservation was made or the appropriation for the fiscal year in which such amend- ment or revision is approved. (d) If, within twenty years after completion of any construction project for which funds have been paid under this title, the facility shall cease to be a public or nonprofit facility, the United States shall be entitled to recover from the applicant or other owner of the facility the amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated) of the facility, as the amount of the Federal participation bore to the cost of con- struction of such facility. (e) Payment of assistance or reservation of funds made pursuant to this title may be made (after necessary adjustment on account of previously made overpayments or underpay- ments) in advance or by way of reimbursement, and in such installments and on such condi- tions, as the [Secretary] Commissioner may determine. (f) A project for construction of a rehabilitation facility which is primarily a workshop may, where approved by the [Secretary] Commissioner as necessary to the effective operation of the facility, include such construction as may be necessary to provide residential accommo- dations for use in connection with the rehabilitation of handicapped individuals. (g) No funds provided under this title may be used to assist in the construction of any facility which is or will be used for religious worship or any sectarian activity. (h) When in any State, funds provided under this title will be used for providing direct services to handicapped individuals or for establishing facilities which will provide such serv- ices, such services must be carried out in a manner not inconsistent with the State plan ap- proved pursuant to section 101. (i) Prior to making any grant or entering into any contract under this title, the [Secre- tary] Commissioner shall afford reasonable opportunity to the appropriate State agency or agencies designated pursuant to section 101 to comment on such grant or contract. PART B-SPECIAL PROJECTS AND SUPPLEMENTARY SERVICES AUTHORIZATION OF APPROPRIATIONS SEC. 310. (a) For the purpose of carrying out this part (other than section 313), there are authorized to be appropriated such sums as may be necessary for each fiscal year ending before October 1, 1982. (b) Of the amounts appropriated for any fiscal year under subsection (a), 5 percent of such amount shall be available in such fiscal year only for the purpose of making grants under section 312. There is further authorized to be appropriated for each such fiscal year such additional amount as may be necessary to equal, when added to the amount made available for the purpose of making grants under section 312, an amount of $5,000,000 for each such fiscal year. SPECIAL DEMONSTRATION PROGRAMS SEC. 311. (a) Subject to the provisions of section 306, the Commissioner may make grants to States and to public or nonprofit agencies and organizations to pay part or all of the costs of special projects and demonstrations (including related research and evaluation) for- (1) establishing programs and, where appropriate, constructing facilities for pro- viding vocational rehabilitation services, which hold promise of expanding or otherwise improving rehabilitation services to handicapped individuals (especially those with the most severe handicaps), including individuals with spinal cord injuries and blind or deaf individuals, irrespective of age or vocational potential, who can benefit from com- prehensive services; (2) applying new types or patterns of services or devices for handicapped individ- uals (including programs for providing handicapped individuals, or other individuals in programs servicing handicapped individuals, with opportunities for new careers); and (3) operating programs and, where appropriate, renovating and constructing facili- ties to demonstrate methods of making recreational activities fully accessible to handi- capped individuals. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 39 (b) Any project or demonstration assisted by a grant under this section which provides services to individuals with spinal cord injuries shall— (1) establish, on an appropriate regional basis, a multidisciplinary system of providing vocational and other rehabilitation services, specifically designed to meet the special needs of individuals with spinal cord injuries, including acute care as well as periodic inpatient or outpatient followup and services; (2) demonstrate and evaluate the benefits to individuals with spinal cord injuries served in, and the degree of cost effectiveness of, such a regional system; (3) demonstrate and evaluate existing, new, and improved methods and equipment essential to the care, management, and rehabilitation of individuals with spinal cord injuries; and (4) demonstrate and evaluate methods of community outreach for individuals with spinal cord injuries and community education in connection with the problems of such individuals in areas such as housing, transportation, recreation, employment, and com- munity activities. MIGRATORY WORKERS SEC. 312. The Commissioner, subject to the provisions of section 306, is authorized to make grants to any State agency designated pursuant to a State plan approved under section 101, or to any local agency participating in the administration of such a plan, to pay up to 90 per centum of the cost of projects or demonstrations for the provision of vocational reha- bilitation services to handicapped individuals, as determined in accordance with rules pre- scribed by the Secretary of Labor, who are migratory agricultural workers or seasonal farmworkers, and to members of their families (whether or not handicapped) who are with them, including maintenance and transportation of such individuals and members of their families where necessary to the rehabilitation of such individuals. Maintenance payments under this section shall be consistent with any maintenance payments made to other handi- capped individuals in the State under this Act. Such grants shall be conditioned upon satis- factory assurance that in the provision of such services there will be appropriate cooperation between the grantee and other public or nonprofit agencies and organizations having special skills and experience in the provision of services to migratory agricultural workers, seasonal farmworkers, or their families. This section shall be administered in coordination with other programs serving migrant agricultural workers and seasonal farmworkers, including pro- grams under title 1 of the Elementary and Secondary Education Act of 1965, section 311 of the Economic Opportunity Act of 1964, the Migrant Health Act, and the Farm Labor Con- tractor Registration Act of 1963. HELEN KELLER NATIONAL CENTER SEC. 313. (a) The purpose of this section is to provide for the establishment and operation of the Helen Keller National Center for Deaf-Blind Youths and Adults. Any funds appro- priated under this part for construction of the Center shall remain available until expended. (b) In order- (1) to demonstrate methods of (A) providing the specialized intensive services, and other services, needed to rehabilitate handicapped individuals who are both deaf and blind, and (B) training the professional and allied personnel needed adequately to staff facilities specifically designed to provide such services and training to such personnel who have been or will be working with deaf-blind individuals; (2) to conduct research in the problems of, and ways of meeting the problems of rehabilitating, deaf-blind individuals; and (3) to aid in the conduct of related activities which will expand or improve the services for or help improve public understanding of the problems of deaf-blind individuals; the Secretary, subject to the provisions of section 306, is authorized to enter into an agree- ment with any public or nonprofit agency or organization for payment by the United States of all or part of the costs of the establishment and operation, including construction and equipment, of a center for vocational rehabilitation of handicapped individuals who are both deaf and blind, which center shall be known as the Helen Keller National Center for Deaf- Blind Youths and Adults. (c) Any agency or organization desiring to enter into such agreement shall submit a proposal therefor at such time, in such manner, and containing such information as may be 40 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 prescribed in regulations by the Secretary. In considering such proposals the Secretary shall give preference to proposals which (1) give promise of maximum effectiveness in the organi- zation and operation of the Helen Keller National Center, and (2) give promise of offering the most substantial skill, experience, and capability in providing a broad program of ervice, research, training, and related activities in the field of rehabilitation of deaf-blind individuals. (d) To the extent feasible the Helen Keller National Center for Deaf-Blind Youths and Adults shall seek to recover from States, private insurers, and other participating public and private agencies the costs of services provided to individuals by the Center. (e) There are authorized to be appropriated to carry out this section such sums as may be necessary for each fiscal year beginning before October 1, 1982. READER SERVICES FOR THE BLIND SEC. 314. (a) The Commissioner may award grants to States or to private nonprofit agencies or organizations of national scope (as so determined by the Commissioner) to- (1) provide reading services to blind persons who are not otherwise eligible for such services through other State or Federal programs; and (2) expand the quality and scope of reading services available to blind persons, and to assure to the maximum extent possible that the reading services provided under this Act will meet the reading need of blind persons attending institutions providing elemen- tary, secondary, or post-secondary education, and will be adequate to assist blind persons to obtain and continue in employment. Any State which receives a grant under this section shall administer the reading services for which such grant is awarded through the designated State unit of the State. (b) No grant shall be awarded under this section unless the applicant has submitted an application to the Secretary in such form, at such time, and containing such information as the Secretary may require. (c) For purposes of this section, the term "reading services" means- (1) the employment of persons who, by reading aloud, can afford blind persons ready access to printed information; (2) the transcription of printed information into braille or sound recordings if such transcription is performed pursuant to individual requests from blind persons for such services; (3) the storage and distribution of braille materials and sound recordings; (4) the purchase, storage, and distribution of equipment and materials necessary for the production, duplication, and reproduction of braille materials and sound recordings; (5) the purchase, storage, and distribution of equipment to blind persons to provide them with individual access to printed materials by mechanical or electronic means; and (6) radio reading services for blind persons. INTERPRETER SERVICES FOR THE DEAF SEC. 315. (a) The Commissioner may make grants to designated State units to establish within each State a program of interpreter services (including interpreter referral services) which shall be made available to deaf individuals and to any public agency or private nonprofit organization involved in the delivery of assistance or services to deaf individuals. (b) No grant may be made under this section unless an application therefor is submitted to the Commissioner in such form, at such times, and in accordance with such procedures as the Commissioner may require. Such application shall- (1) provide assurances that the program to be conducted under this section will be operated in areas within the State which are specifically selected to provide convenient locations for the provision of services to the maximum number of deaf individuals feasible; (2) include a plan which describes, in sufficient detail, the manner in which inter- preter referral services will be coordinated with the information and referral programs required under section 101 (a) (22), REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 41 (3) provide assurances that the program will seek to enter into contractual or other arrangements, to the extent appropriate, with private nonprofit organizations comprised of primarily hearing-impaired individuals (or private nonprofit organizations which have the primary purpose of providing assistance or services to hearing-impaired indi- viduals) for the operation of such programs; (4) provide that any interpreter participating in the program shall be required to meet minimum standards established by the Commissioner; and (5) contain such other formation as the Secretary may require. (c) Any designated State unit receiving funds under this section may provide interpreter services, without cost, for a period of not to exceed one year to any public agency or private nonprofit organization which provides assistance to deaf individuals. At the end of such period, agencies or organizations receiving such services through referrals shall reimburse the designated State unit for the costs of such services. Funds may also be used for the pur- chase of rental of equipment necessary to provide assistance or services to deaf individuals. (d) Funds provided to any designated State unit for any program under this section shall not be used for any administrative or related costs, nor shall such funds be used for assistance to deaf individuals who are receiving rehabilitation services under any other provision of this Act. SPECIAL RECREATIONAL PROGRAMS SEC. 316. The Commissioner, subject to the provisions of section 306, shall make grants to State and public nonprofit agencies and organizations for paying part or all of the cost of initiation of recreation programs to provide handicapped individuals with recreational activities to aid in the mobility and socialization of such individuals. The activities authorized to be assisted under this section may include, but are not limited to, scouting and camping, 4-H activities, sports, music, dancing, handicrafts, art, and homemaking. No grant may be made under the provisions of this section unless the agreement with respect to such grant contains provisions to assure that, to the extent possible, existing resources will be used to carry out the activities for which the grant is to be made, and that with respect to children the activities for which the grant is to be made will be conducted after school. [TITLE IV-ADMINISTRATION AND PROGRAM AND PROJECT EVALUATION [ADMINISTRATION [SEC. 400. (a) In carrying out his duties under this Act, the Secretary shall- [(1) cooperate with, and render technical assistance (directly or by grant or con- tract) to States in matters relating to the rehabilitation of handicapped individuals; [(2) provide short-term training and instruction in technical matters relating to vocational rehabilitation services, including the establishment and maintenance of such research fellowships and traineeships, with such stipends and allowances (including travel and subsistence expenses), as he may deem necessary, except that no such training or instruction (or fellowship or scholarship) shall be provided any individual for any one course of study for a period in excess of four years, and such training, instruction, fellowships, and traineeships may be in the fields of rehabilitation medicine, rehabilita- tion nursing, rehabilitation counseling, rehabilitation social work, rehabilitation psy- chology, physical therapy, occupational therapy, speech pathology and audiology, prosthetics and orthotics, recreation for ill and handicapped individuals, and other specialized fields contributing to the rehabilitation of handicapped individuals; and [(3) disseminate information relating to vocational rehabilitation services, and otherwise promote the cause of the rehabilitation of handicapped individuals and their greater utilization in gainful and suitable employment. [(b) The Secretary is authorized to make rules and regulations governing the adminis- tration of this title and titles I through III of this Act, and, except as otherwise provided in this Act, to delegate to any officer or employee of the United States such of his powers and duties under such titles, except the making of rules and regulations, as he finds necessary to carry out the provisions of such titles. Such rules and regulations shall be published in the Federal Register, on at least an interim basis, no later than ninety days after the date of enactment of this Act. [(c) The Secretary is authorized (directly or by grants or contracts) to conduct studies, investigations, and evaluation of the programs authorized by this Act, and to make reports, 42 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 with respect to abilities, aptitudes, and capacities of handicapped individuals, development of their potentialities, their utilization in gainful and suitable employment, and with respect to architectural, transportation, and other environmental and attitudinal barriers to their reha- bilitation, including the problems of homebound, institutionalized, and older blind individuals. [(d) There is authorized to be included for each fiscal year in the appropriation for the Department of Health, Education, and Welfare such sums as are necessary to administer the provisions of this Act. (e) In carrying out his duties under this Act, the Secretary shall insure the maximum coordination and consultation, at both national and local levels, with the Administrator of Veterans' Affairs and his designees with respect to programs for and relating to the reha- bilitation of disabled veterans carried out under title 38, United States Code. [PROGRAM AND PROJECT EVALUATION [SEC. 401. (a) (1) The Secretary shall measure and evaluate the impact of all programs authorized by this Act, in order to determine their effectiveness in achieving stated goals in general, and in relation to their cost, their impact on related programs, and their structure and mechanisms for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not immediately involved in the administration of the program or project evaluated. [(2) In carrying out his responsibilities under this subsection, the Secretary, in the case of research, demonstrations, and related activities carried out under section 202, shall, after taking into consideration the views of State agencies designated pursuant to section 101, on an annual basis— [(A) reassess priorities to which such activities should be directed; and [(B) review present research, demonstration, and related activities to determine, in terms of the purpose specified for such activities by subsection (a) of section 202, whether and on what basis such activities should be continued, revised, or terminated. [(3) The Secretary shall, within 12 months after the date of enactment of this Act, and on each April 1 thereafter, prepare and furnish to the appropriate committees of the Con- gress a complete report on the determination and review carried out under paragraph (2) of this subsection, together with such recommendations, including any recommendations for additional legislation, as he deems appropriate. [(b) Effective July 1, 1974, before funds for the programs and projects covered by this Act are released, the Secretary shall develop and publish general standards for evaluation of the programs and project effectiveness in achieving the objectives of this Act. He shall consider the extent to which such standards have been met in deciding, in accordance with procedures set forth in subsection (b), (c), and (d) of section 101, whether to renew or supplement financial assistance authorized under any section of this Act. Reports submitted pursuant to section 404 shall describe the actions taken as a result of these evaluations. [(c) In carrying out evaluations under this title, the Secretary shall, whenever possible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this Act about such programs and projects. [(d) The Secretary shall publish the results of evaluative research and summaries of evaluations of programs and project impact and effectiveness no later than ninety days after the completion thereof. The Secretary shall submit to the appropriate committees of the Con- gress copies of all such research studies and evaluation summaries. [(e) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this Act shall become the property of the United States. [OBTAINING INFORMATION FROM FEDERAL AGENCIES [SEC. 402. Such information as the Secretary may deem necessary for purposes of the evaluations conducted under this title shall be made available to him, upon request, by the agencies of the executive branch. [AUTHORIZATION OF APPROPRIATIONS [SEC. 403. There is authorized to be appropriated for the fiscal years ending June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978, such sums REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 43 as the Secretary may require, but not to exceed an amount equal to one-half of 1 per centum of the funds appropriated under subchapters I, II, and III of this chapter or $1,000,000, whichever is greater, to be available to conduct program and project evaluations as required by this subchapter. [REPORTS [SEC. 404. Not later than one hundred and twenty days after the close of each fiscal year, the Secretary shall prepare and submit to the President and to the Congress a full and com- plete report on the activities carried out under this Act. Such annual reports shall include (1) statistical data reflecting, with the maximum feasible detail vocational rehabilitation services provided handicapped individuals during the preceding fiscal year, (2) specifically distinguished among rehabilitation closures attributable to physical restoration, placement in competitive employment, extended or terminal employment in a sheltered workshop or rehabilitation facility, employment as a homemaker or unpaid family worker, and provision of other services, and (3) include a detailed evaluation of services provided with assistance under title I of this Act, especially services to those with the most severe handicaps. [SECRETARIAL RESPONSIBILITIES [SEC. 405. (a) It shall be the function of the Secretary, with the assistance of agencies within the Department, other departments and agencies within the Federal Government, handicapped individuals, and public and private agencies and organizations, through the Office of the Secretary, to— [(1) prepare for submission to the Congress within eighteen months after the date of enactment of this Act, a long-range projection for the provision of comprehensive services to handicapped individuals and for programs of research, evaluation, and training related to such services and individuals; [(2) analyze on a continuing basis and include in his report submitted under section 404, a report on the results of such analysis, program operation to determine consistency with applicable provisions of law, progress toward meeting the goals and priorities set forth in the projection required under clause (1), and the effectiveness of all programs providing services to handicapped individuals, and the elimination of unnecessary dupli- cation and overlap in such programs under the jurisdiction of the Secretary; [(3) encourage coordinated and cooperative planning designed to produce maximum effectiveness, sensitivity, and continuity in the provision of services for handicapped individuals by all programs; [(4) develop means of promoting the prompt utilization of engineering and other scientific research to assist in solving problems in education (including promotion of the development of curriculums stressing barrier free design and the adoption of such curriculums by schools of architecture, design, and engineering), health, employment, rehabilitation, architectural, housing, and transportation barriers, and other areas so as to bring about full integration of handicapped individuals into all aspects of society; (5) provide a central clearinghouse for information and resource availability for handicapped individuals through (A) the evaluation of systems within the Department of Health, Education, and Welfare, other departments and agencies of the Federal Gov- ernment, public and private agencies and organizations, and other sources, which provide (i) information and data regarding the location, provision, and availability of services and programs for handicapped individuals, regarding research and recent medical and scientific developments bearing on handicapping conditions (and their prevention, amelioration, causes, and cures), and regarding the current numbers of handicapped individuals and their needs, and (ii) any other such relevant information and data which the Secretary deems necessary; and (B) utilizing the results of such evaluation and existing information systems, the development within such Department of a coordinated system of information and data retrieval, which will have the capacity and responsibility to provide general and specific information regarding the information and data referred to in subclause (A) of this clause to the Congress, public and private agencies and organizations, handicapped individuals and their families, professionals in fields serving such individuals, and the general public. (b) In selecting personnel to assist in the performance of the functions assigned in sub- section (a) of this section, the Secretary shall give special emphasis to qualified handicapped individuals. [(c) the functions assigned to the Secretary by this section shall not be delegated to any persons not assigned to and operating in the office of the Secretary, except that he may estab- 44 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 lish an Office for Handicapped Individuals in the office of an appropriate Assistant Secretary of the Department of Health, Education, and Welfare to carry out such functions. In no event shall any functions under this section be further delegated to any persons with opera- tional responsibilities for carrying out functions authorized under any other section of this Act or under any other provision of law designed to benefit handicapped individuals. [(d) There are authorized to be appropriated for carrying out this section $500,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $600,000 for the fiscal year ending June 30, 1976, and $600,000 for the fiscal years ending September 30, 1977, and Sep- tember 30, 1978. (e) Not later than thirty days after the appropriation Act containing sums for carrying out the provisions of this Act is enacted for each fiscal year, the Secretary shall set aside out of sums available to carry out this section or otherwise available pursuant to any other Act, an amount which he determines is necessary and appropriate to enable him to carry out the provisions of this section and shall notify the appropriate committees of the Congress of the amount so set aside, the number of personnel necessary for such purpose, and the basis for his determination under this subsection and his reasons therefor. [SHELTERED WORKSHOP STUDY [SEC. 406. (a) The Secretary shall conduct an original study of the role of sheltered workshops in the rehabilitation and employment of handicapped individuals, including a study of wage payments in sheltered workshops. The study shall incorporate guidelines which are consistent with criteria provided in resolutions adopted by the Committee on Labor and Public Welfare of the United States Senate or the Committee on Education and Labor of the United States House of Representatives, or both. [(b) The study shall include site visits to sheltered workshops, interviews with handi- capped trainees or clients, and consultations with interested individuals and groups and State agencies designated pursuant to section 101. [(c) Any contracts awarded for the purpose of carrying out all or part of this study shall not be made with individuals or groups with a financial or other direct interest in sheltered workshops. [(d) The Secretary shall report to the Congress his findings and recommendations with respect to such study within twenty-four months after the date of enactment of this Act. [STATE ALLOCATION STUDY [SEC. 407. (a) The Secretary shall conduct a thorough study of the allotment of funds among the States for grants for basic vocational rehabilitation services authorized under part B of title I of this Act, including a consideration of- [(1) the needs of individuals requiring vocational rehabilitation services; (2) the financial capability of the States to furnish vocational rehabilitation assist- ance including, on a State-by-State basis, per capita income, per capita costs of services rendered, State tax rates, and the ability and willingness of a State to provide the non- Federal share of the costs of rendering such services; [(3) the continuing demand upon the States to furnish vocational rehabilitation services, together with a consideration of the factor that no State would receive less Federal financial assistance under such part than it received under section 2 of the Voca- tional Rehabilitation Act in the fiscal year immediately prior to the enactment of this Act. [(b) Not later than June 30, 1974, the Secretary shall report to the Congress his findings and recommendations, including recommendations for additional legislation, with respect to the study required by this section, which report shall include recommendations with respect to allotment of Federal funds among the States and the Federal share of the cost of furnishing vocational rehabilitation services by the States.] TITLE IV-NATIONAL COUNCIL ON THE HANDICAPPED ESTABLISHMENT OF NATIONAL COUNCIL ON THE HANDICAPPED SEC. 400. (a) There is established within the Department of Health, Education, and Welfare a National Council on the Handicapped (hereinafter in this title referred to as the REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 45 National Council), which shall be composed of fifteen members appointed by the President, by and with the advice and consent of the Senate. The members of the National Council shall be appointed so as to be representative of handicapped individuals, national organizations concerned with the handicapped, providers and administrators of services to the handicapp individuals engaged in conducting medical or scientific research relating to handicapped indi- viduals, business concerns, and labor organizations. At least five members of the National Council shall be handicapped individuals, or parents or guardians of handicapped individuals. (b) (1) Members of the National Council shall be appointed to serve for terms of three years, except that of the members first appointed- (A) five shall serve for terms of one year, (B) five shall serve for terms of two years, and (C) five shall serve for terms of three years, as designated by the President at the time of appointment. (2) Members may be reappointed and may serve after the expiration of their terms until their successors have taken office. (3) Any member appointed to fill a vacancy occurring before the expiration of the term for which his predecessor was appointed shall be appointed only for the remainder of such term. (c) The President shall designate the Chairman from among the members appointed to the National Council. The National Council shall meet at the call of the Chairman, but not less often than four times each year. (d) Eight members of the National Council shall constitute a quorum and any vacancy in the National Council shall not affect its power to function. DUTIES OF NATIONAL COUNCIL SEC. 401. The National Council shall- (1) establish general policies for, and review the operation of, the National Institute of Handicapped Research; (2) provide advice to the Commissioner with respect to the policies of and conduct of the Rehabilitative Services Administration; (3) advise the Commissioner, the appropriate Assistant Secretary of the Depart- ment of Health, Education, and Welfare, and the Director of the National Institute of Handicapped Research on the development of the programs to be carried out under this Act; (4) review and evaluate on a continuing basis all policies, programs, and activities concerning handicapped individuals and persons with developmental disabilities con- ducted or assisted by Federal departments and agencies, including programs established or assisted under this Act or under the Developmental Disabilities Assistance and Bill of Rights Act, in order to assess the effectiveness of such policies, programs, and activi- ties in meeting the needs of handicapped individuals; (5) make recommendations to the Secretary, the Commissioner, and the Director of the National Institute of Handicapped Research respecting ways to improve research concerning handicapped individuals, the administration of services for handicapped individuals, and the methods of collecting and disseminating the findings of such research, and make recommendations for facilitating the implementation of programs based upon such findings; and (6) submit not later than March 31 of each year (beginning in 1980) an annual report to the Secretary, the Congress, and the President, containing (A) a statement of the current status of research concerning the handicapped in the United States, (B) a review of the activities of the Rehabilitation Services Administration and the National Institute of Handicapped Research, and (C) such recommendations respecting the items described in clauses (A) and (B) as the National Council considers appropriate. COMPENSATION OF NATIONAL COUNCIL MEMBERS SEC. 402. (a) Members of the National Council shall be entitled to receive compensation at a rate equal to the rate of basic pay payable for grade GS-18 of the General Schedule under 46 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 section 5332 of title 5, United States Code, including traveltime, for each day they are engaged in the performance of their duties as members of the National Council. (b) Members of the National Council who are full-time officers or employees of the United States shall receive no additional pay on account of their service on. the National Council except for compensation for travel expenses as provided under subsection (c) of this section. (c) While away from their homes or regular places of business in the performance of services for the National Council members of the National Council shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed. expenses under section 5703 of title 5, United States Code. STAFF OF NATIONAL COUNCIL SEC. 403. (a) The National Council may appoint, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, or the provi- sions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, up to seven technical and professional employees to assist the National Council to carry out its duties. (b) The National Council may procure temporary and intermittent services to the same extent as is authorized by section 3109 (b) of title 5, United States Code (but at rates for individuals not to exceed the daily equivalent of the annual rate of basic pay payable for grade GS-18 of the General Schedule under section 5332 of title 5, United States Code). (c) The Administrator of General Services shall provide to the National Council on a reimbursable basis such administrative support services as the Council may request. ADMINISTRATIVE POWERS OF NATIONAL COUNCIL SEC. 404. (a) The National Council may prescribe such laws and rules as may be necessary to carry out its duties under this title. (b) The National Council may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as it deems advisable. (c) The National Council may appoint advisory committees to assist the National Coun- cil in carrying out its duties. The members thereof shall serve without compensation. (d) The National Council may use the United States mails in the same manner and upon the same conditions as other departments and agencies of the United States. AUTHORIZATION OF APPROPRIATIONS SEC. 405. There are authorized to be appropriated to carry out this title such sums as may be necessary. TITLE V-MISCELLANEOUS EFFECT ON EXISTING LAW SEC. 500. (a) The Vocational Rehabilitation Act (29 U.S.C. 31 et seq.) is repealed ninety days after the date of enactment of this Act and references to such Vocational Rehabilitation Act in any other provision of law shall, ninety days after such date, be deemed to be references to the Rehabilitation Act of 1973. Unexpended appropriations for carrying out the Vocational Rehabilitation Act may be made available to carry out this Act, as directed by the President. Approved State plans for vocational rehabilitation, approved projects, and contractual arrangements authorized under the Vocational Rehabilitation Act will be recognized under comparable provisions of this Act SO that there is no disruption of ongoing activities for which there is continuing authority. (b) The authorizations of appropriations in the Vocational Rehabilitation Act are hereby extended at the level specified for the fiscal year 1972 for the fiscal year 1973. EMPLOYMENT OF HANDICAPPED INDIVIDUALS SEC. 501. (a) There is established within the Federal Government an Interagency Com- mittee on Handicapped Employees (hereinafter in this section referred to as the "Commit- tee"), comprised of such members as the President may select, including the following (or their designees whose positions are Executive Level IV or higher) : the Chairman of the Civil REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 47 Service Commission, the Administrator of Veterans' Affairs, and the Secretaries of Labor and Health, Education, and Welfare. The Secretary of Health, Education, and Welfare and the Chairman of the Civil Service Commission shall serve as co-chairmen of the Committee. The resources of the President's Committees on Employment of the Handicapped and on Mental Retardation shall be made fully available to the Committee. It shall be the purpose and function of the Committee (1) to provide a focus for Federal and other employment of handicapped individuals, and to review, on a periodic basis, in cooperation with the Civil Service Commission, the adequacy of hiring, placement, and advancement practices with respect to handicapped individuals, by each department, agency, and instrumentality in the executive branch of Government and to insure that the special needs of such individuals are being met; and (2) to consult with the Civil Service Commission to assist the Commission to carry out its responsibilities under subsections (b), (c), and (d) of this section. On the basis of such review and consultation the Committee shall periodically make to the Civil Service Commission such recommendations for legislative and administrative changes as it deems necessary or desirable. The Civil Service Commission shall timely transmit to the appropriate committees of Congress any such recommendations. (b) Each department, agency, and instrumentality (including the United States Postal Service and the Postal Rate Commission) in the executive branch shall, within one hundred and eighty days after the date of enactment of this Act, submit to the Civil Service Com- mission and to the Committee an affirmative action program plan for the hiring, placement, and advancement of handicapped individuals in such department, agency, or instrumentality. Such plan shall include a description of the extent to which and methods whereby the special needs of handicapped employees are being met. Such plan shall be updated annually, and shall be reviewed annually and approved by the Commission, if the Commission determines, after consultation with the Committee, that such plan provides sufficient assurances, proce- dures and commitments to provide adequate hiring, placement, and advancement opportuni- ties for handicapped individuals. (c) The Civil Service Commission, after consultation with the Committee, shall develop and recommend to the Secretary for referral to the appropriate State agencies, policies and procedures which will facilitate the hiring, placement, and advancement in employment of individuals who have received rehabilitation services under State vocational rehabilitation programs, veterans' programs, or any other program for handicapped individuals, including the promotion of job opportunities for such individuals. The Secretary shall encourage such State agencies to adopt and implement such policies and procedures. (d) The Civil Service Commission, after consultation with the Committee, shall, on June 30, 1974, and at the end of each subsequent fiscal year, make a complete report to the appropriate committees of the Congress with respect to the practices of and achievements in hiring, placement, and advancement of handicapped individuals by each department, agency, and instrumentality and the effectiveness of the affirmative action programs required by subsection (b) of this section, together with recommendations as to legislation which have been submitted to the Civil Service Commission under subsection (a) of this section, or other appropriate action to insure the adequacy of such practices. Such report shall also include an evaluation by the Committee of the effectiveness of the Civil Service Commission's activi- ties under subsection (b) and (c) of this section. (e) An individual who, as a part of his individualized written rehabilitation program under a State plan approved under this Act, participates in a program of unpaid work experi- ence in a Federal agency, shall not, by reason thereof, be considered to be a Federal employee or to be subject to the provisions of law relating to Federal employment, including those relating to hours of work, rates of compensation, leaves, unemployment compensation, and Federal employee benefits. (f) (1) The Secretary of Labor and the Secretary of Health, Education, and Welfare are authorized and directed to cooperate with the President's Committee on Employment of the Handicapped in carrying out its functions. (2) In selecting personnel to fill all positions on the President's Committee on Employ- ment of the Handicapped, special consideration shall be given to qualified handicapped individuals. ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD SEC. 502. (a) There is established within the Federal Government the Architectural and Transportation Barriers Compliance Board (hereinafter referred to as the "Board") 48 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 which shall be composed of the heads of each of the following departments or agencies (or their designees whose positions are Executive Level IV or higher) : [(1) Department of Health, Education, and Welfare; [(2) Department of Transportation; [(3) Department of Housing and Urban Development; [(4) Department of Labor; [(5) Department of the Interior; [(6) Department of Defense; [(7) General Services Administration; [(8) Veterans' Administration. The Secretary of Health, Education, and Welfare shall be the Chairman of the Board, and the Board shall appoint, upon recommendation of the Secretary, a Consumer Advisory Panel, a majority of the members of which shall be handicapped individuals, to provide guidance, advice, and recommendations to the Board in carrying out its functions.] SEC. 502. (a) (1) There is established within the Federal Government the Architectural and Transportation Barriers Compliance Board (hercinafter referred to as the "Board") which shall be composed as follows: (A) Eleven members shall be appointed by the President from among members of the general public of whom five shall be handicapped individuals. (B) The remaining members shall be the heads of each of the following departments or agencies (or their designees whose positions are executive level IV or higher) : (i) Department of Health, Education, and Welfare. (ii) Department of Transportation. (iii) Department of Housing and Urban Development. (iv) Department of Labor. (v) Department of the Interior. (vi) Department of Defense. (vii) Department of Justice. (viii) General Services Administration. (ix) Veterans' Administration. (x) United States Postal Service. The President shall appoint the first Chairman of such Board who shall serve for a term of not more than two years; thereafter, the Chairman shall be elected by a vote of a majority of the Board for a term of one year. (2) The term of office of each appointed member of the Board shall be three years; except that (i) the members first taking office shall serve, as designated by the President at the time of appointment, four for a term of one year, four for a term of two years, and three for a term of three years, and (ii) any member appointed to fill a vacancy shall serve for the remainder of the term for which his predecessor was appointed. (3) If any appointed member of the Board becomes a Federal employee, such member may continue as a member of the Board for not longer than the sixty-day period beginning on the date he becomes such an employee. (4) No individual appointed under paragraph (1) (A) of this subsection who has served as a member of the Board may be reappointed to the Board more than once unless such indi- vidual has not served on the Board for a period of two years prior to the effective date of such individual's appointment. (5) (A) Members of the Board who are not regular full-time employees of the United States shall, while serving on the business of the Board, be entitled to receive compensation at rates fixed by the President, but not to exceed the daily rate prescribed for GS-18 under section 5332 of title 5, United States Code, including traveltime, for each day they are engaged in the performance of their duties as members of the Board; and shall be entitled to reim- bursement for travel, subsistence, and other necessary expenses incurred by them in carrying out their duties under this section. (B) Members of the Board who are employed by the Federal Government shall serve without compensation, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in carrying out their duties under this section. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 49 (b) It shall be the function of the Board to: [(1) insure compliance with the standards prescribed by the General Services Administration, the Department of Defense, and the Department of Housing and Urban Development pursuant to the Architectural Barriers Act of 1968 (Public Law 90-480), as amended by the Act of March 5, 1970 (Public Law 91-203) (1) insure compliance with the standards prescribed pursuant to the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968 (including the application of that Act to the United States Postal Service) including but not limited to enforcing all standards under that Act, and insuring that all waivers and modifications of standards are based upon findings of fact and are not inconsistent with the provisions of such Act and this section; (2) investigate and examine alternative approaches to the architectural, transportation, communication, and attitudinal barriers confronting handicapped individuals, particularly with respect to telecommunication devices, public buildings and monuments, parks and park- lands, public transportation (including air, water, and surface transportation whether inter- state, foreign, intrastate, or local), and residential and institutional housing; (3) determine what measures are being taken by Federal, State, and local governments and by other public or nonprofit agencies to eliminate the barriers described in clause (2) of this subsection; (4) promote the use of the International Accessibility Symbol in all public facilities that are in compliance with the standards prescribed by the Administrator of the General Services Administration, the Secretary of Defense, and the Secretary of Housing and Urban Develop- ment pursuant to the Architectural Barriers Act of 1968; (5) make to the President and to Congress reports which shall describe in detail the results to its investigations under clauses (2) and (3) of this subsection; [and] (6) make to the President and to the Congress such recommendations for legislation and administration as it deems necessary or desirable to eliminate the barriers described in clause (2) of this subsection ; (7) establish minimum guidelines and requirements for the standards issued pursuant to the Act of August 12, 1968, as amended, commonly known as the Architectural Barriers Act of 1968; and (8) insure that public conveyances, including rolling stock, are readily accessible to, and usable by, physically handicapped persons. (c) The Board shall also (1) (A) determine how and to what extent transportation barriers impede the mobility of handicapped individuals and aged handicapped individuals and consider ways in which travel expenses in connection with transportation to and from work for handicapped individuals can be met or subsidized when such individuals are unable to use mass transit systems or need special equipment in private transportation, and (B) consider the housing needs of handicapped individuals; (2) determine what measures are being taken, especially by public and other nonprofit agencies and groups having an interest in and a capacity to deal with such problems, (A) to eliminate barriers from public trans- portation systems (including vehicles used in such systems), and to prevent their incorpora- tion in new or expanded transportation systems and (B) to make housing available and accessible to handicapped individuals or to meet sheltered housing needs; and (3) prepare plans and proposals for such further actions as may be necessary to the goals of adequate transportation and housing for handicapped individuals, including proposals for bringing together in a cooperative effort, agencies, organizations, and groups already working toward such goals or whose cooperation is essential to effective and comprehensive action. (d) (1) In carrying out its functions under this Act, the Board shall, directly or through grants to [or contracts with] public or private nonprofit organizations or contracts with pri- vate nonprofit or for-profit organizations, carry out its functions under subsections (b) and (c) of this section, and shall conduct investigations, hold public hearings, and issue such orders as it deems necessary to insure compliance with the provisions of the Acts cited in subsection (b). [The] Except as provided in paragraph (3) of subsection (e), the provisions of subchanter II of chapter 5, and chapter 7 of title 5, United States Code, shall apply to proce- dures under this section, and an order of compliance issued by the Board shall be a final order for purposes of judicial review. Any such order affecting any Federal department, agency, or instrumentality of the United States shall be final and binding on such department, agency, or instrumentality. An order of compliance may include the withholding or suspension of Federal funds with respect to any building, or public conveyance or rolling stock found not to be in compliance with standards [prescribed pursuant to the Acts cited in subsection (b) of this section. enforced under this section. Pursuant to chapter 7 of title 5, United States Code, any complainant or participant in a proceeding under this subsection may obtain review of a final order issued in such proceeding. (2) The executive director is authorized, at the direction of the Board- (A) to bring a civil action in any appropriate United States district court to enforce, in whole or in part, any final order of the Board under this subsection; and 50 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (B) to intervene, appear, and participate, or to appear as amicus curiae, in any court of the United States or in any court of a State in civil actions which related to this section or to the Architectural Barriers Act of 1968. Except as provided in section 518 (a) of title 28, United States Code, relating to litigation before the Supreme Court, the executive director may appear for and represent the Board in any civil litigation brought under this section. (3) The Board, in consultation and coordination with other concerned Federal depart- ments and agencies and agencies within the Department of Health, Education, and Welfare, shall develop standards and provide appropriate technical assistance to any public or private activity, person, or entity affected by regulations prescribed pursuant to this title with respect to overcoming architectural, transportation, and communication barriers. Any funds appro- priated to any such department or agency for the purpose of providing such assistance may be transferred to the Board for the purpose of carrying out this paragraph. The Board may arrange to carry out its responsibilities under this paragraph through such other depart- ments and agencies for such periods as the Board determines is appropriate. In carrying out its technical assistance responsibilities under this paragraph, the Board shall establish a procedure to insure separation of its compliance and technical assistance responsibilities under this section. (e) (1) There shall be appointed by the Board an executive director and such other pro- fessional and clerical personnel as are necessary to carry out its functions under this chapter. The Board is authorized to appoint as many administrative law judges as are necessary for proceedings required to be conducted under this section. The provisions applicable to admin- istrative law judges appointed under section 3105 of Title 5 shall apply to administrative law judges appointed under this subsection. (2) The Executive Director shall exercise general supervision over all personnel em- ployed by the Board (other than hearing examiners and their assistants). The Executive Director shall have final authority on behalf of the Board, with respect to the investigation of alleged noncompliance in the issuance of formal complaints before the Board, and shall have such other duties as the Board may prescribe. (3) For the purpose of this section, an order of compliance issued by a hearing examiner shall be deemed to be an order of the Board and shall be the final order for the purpose of judicial review. (f) The departments or agencies specified in subsection (a) of this section shall make available to the Board such technical, administrative, or other assistance as it may require to carry out its functions under this section, and the Board may appoint such other advisers, technical experts, and consultants as it deems necessary to assist it in carrying out its func- tions under this section. Special advisory and technical experts and consultants appointed pursuant to this subsection shall, while performing their functions under this section, be entitled to receive compensation at rates fixed by the Secretary, but not exceeding the daily pay rate, for a person employed as a GS-18 under section 5332 of title 45, United States Code, including traveltime, and while serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of such title 5 for persons in the Government service employed intermittently. (g) The Board shall, at the end of each fiscal year, report its activities during the preced- ing fiscal year to the Congress. Such report shall include an assessment of the extent of com- pliance with the Acts cited in subsection (b) of this section, along with a description and analysis of investigations made and actions taken by the Board, and the reports and recom- mendations described in clauses (5) and (6) of subsection (b) of this section. The Board shall prepare two final reports of its activities under subsection (c). One such report shall be on its activities in the field of transportation barriers to handicapped individuals, and the other such report shall be on its activities in the field of the housing needs of handicapped individuals. The Board shall, not later than September 30, 1975, submit each such report, together with its recommendations, to the President and the Congress. The Board shall also prepare for such submission an interim report of its activities in each such field within 18 months after the date of enactment of this Act. (h) There are authorized to be appropriated for the purpose of carrying out the duties and functions of the Board under this section $1,000,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $1,500,000 for the fiscal year ending June 30, 1976, and $1,500,000 for the fiscal years ending September 30, 1977 and September 30, 1978.] (h) (1) Within one year following the enactment of this subsection, the Board shall submit to the President and the Congress a report containing an assessment of the amounts REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 51 required to be expended by States and by political subdivisions thereof to provide handicapped individuals with full access to all programs and activities receiving Federal assistance. (2) The Board may make grants to, or enter into contracts with, public or private orga- nizations to carry out its duties under subsections (b) and (c). The Board may also make grants to any designated State unit for the purpose of conducting studies to provide the cost assessments required by paragraph (1). Before including in such report the findings of any study conducted for the Board under a grant or contract to provide the Board with such cost assessments, the Board shall take all necessary steps to validate the accuracy of any such findings. (i) There are authorized to be appropriated for the purpose of carrying out the duties and functions of the Board under this section such sums as may be necessary for each fiscal year ending before October 1, 1982, but in no event shall the amount appropriated for any one fiscal year exceed $3,000,000. EMPLOYMENT UNDER FEDERAL CONTRACTS SEC. 503. (a) Any contract in excess of $2,500 entered into by any Federal department or agency for the procurement of personal property and nonpersonal services (including con- struction) for the United States shall contain a provision requiring that, in employing persons to carry out such contract the party contracting with the United States shall take affirmative action to employ and advance in employment qualified handicapped individuals [as defined in section 7(6)] as defined in section 7(7). The provisions of this section shall apply to any subcontract in excess of $2,500 entered into by a prime contractor in carrying out any con- tract for the procurement of personal property and nonpersonal services (including construc- tion) for the United States. The President shall implement the provisions of this section by promulgating regulations within ninety days after the date of enactment of this section. (b) If any handicapped individual believes any contractor has failed or refuses to com- ply with the provisions of his contract with the United States, relating to employment of handicapped individuals, such individual may file a complaint with the Department of Labor. The Department shall promptly investigate such complaint and shall take such action thereon as the facts and circumstances warrant, consistent with the terms of such contract and the laws and regulations applicable thereto. (c) The requirements of this section may be waived, in whole or in part, by the President with respect to a particular contract or subcontract, in accordance with guidelines set forth in regulations which he shall precribe, when he determines that special circumstances in the national interest so require and states in writing his reasons for such determination. NONDISCRIMINATION UNDER FEDERAL GRANTS AND PROGRAMS SEC. 504. No otherwise qualified handicapped individual in the United States, [as defined in section 7 (6) as defined in section 7(7), shall, solely by reason of his handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance[.] or under any program or activity conducted by any Executive agency or by the United States Postal Service. The head of each such agency shall promulgate such regulations as may be necessary to carry out the amendments to this section made by the Rehabilitation, Comprehensive Services, and Devel- opmental Disabilities Act of 1978. Copies of any proposed regulation shall be submitted to appropriate authorizing committees of the Congress, and such regulation may take effect no earlier than the thirtieth day after the date on which such regulation is so submitted to such committees. REMEDIES AND ATTORNEYS' FEES SEC. 505. (a) (1) The remedies, procedures, and rights set forth in section 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16), including the application of sections 706 (f) through 706 (k) (42 U.S.C. 2000e-5 (f) through (k)), shall be available, with respect to any complaint under section 501 of this Act, to any employee. or applicant for employment ag- grieved by the final disposition of such complaint, or by the failure to take final action on such complaint. In fashioning an equitable or affirmative action remedy under such section, a court may take into account the reasonableness of the cost of any necessary work place accomoda- tion, and the availability of alternatives therefor or other appropriate relief in order to achieve an equitable and appropriate remedy. (2) The remedies, procedures, and rights set forth in title VI of the Civil Rights Act of 1964 shall be available to any person aggrieved by any act or failure to act by any recipient of Federal assistance or Federal provider of such assistance under section 504 of this Act. 52 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (b) In any action or proceeding to enforce or charge a violation of a provision of this title, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney's fee as part of the costs. SECRETARIAL RESPONSIBILITIES SEC. 506. (1) The Secretary may provide directly or by contract with State vocational rehabilitation agencies or experts or consultants or groups thereof, technical assistance- (A) to persons operating rehabilitation facilities; and (B) with the concurrence of the Board established by section 502, to any public or nonprofit agency, institution, or organization; for the purpose of assisting such persons or entities in removing architectural, transportation, or communication barriers. Any concurrence of the Board under this paragraph shall reflect its consideration of the cost studies carried out by States under section 502(c)(1). (2) Any such experts or consultants, while serving pursuant to such contracts, shall be entitled to receive compensation at rates fixed by the Secretary, but not exceeding the daily equivalent of the rate of basic pay payable for grade GS-18 of the General Schedule, under section 5332 of title 5, United States Code, including traveltime, and while so serving away from their homes or regular places of business, they may be allowed travel expenses, includ- ing per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently. (3) The Secretary, with the concurrence of the Board and the President may provide, directly or by contract, financial assistance to any public or nonprofit agency, institution, or organization for the purpose of removing architectural, transportation, and communication barriers. No assistance may be provided under this paragraph until a study demonstrating the need for such assistance has been conducted and submitted under section 502(h)(2) of this title. (4) In order to carry out this section, there are authorized to be appropriated such sums as may be necessary. INTERAGENCY COORDINATING COUNCIL SEC. 507. There shall be established an Interagency Coordinating Council (hereinafter referred to in this section as the "Council") composed of the Secretary of Health, Education, and Welfare, the Secretary of Labor, the Attorney General, the Chairman of the United States Civil Service Commission, the Chairman of the Equal Employment Opportunity Com- mission, and the Chairman of the Architectural and Transportation Barriers Compliance Board. The Council shall have the responsibility for developing and implementing agreements, policies, and practices designed to maximize effort, promote efficiency, and eliminate conflict, competition, duplication, and inconsistencies among the operations, functions, and jurisdic- tions of the various departments, agencies, and branches of the Federal Government responsi- ble for the implementation and enforcement of the provisions of this title, and the regulations prescribed thereunder. On or before July 1 of each year, the Council shall transmit to the President and to the Congress a report of its activities, together with such recommendations for legislative or administrative changes as it concludes are desirable to further promote the purposes of this section. Nothing in this section shall impair any responsibilities assigned by any Executive Order to any Federal department, agency, or instrumentality to act as a lead Federal agency with respect to any provisions of this title. TITLE VI-EMPLOYMENT OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS SHORT TITLE SEC. 601. This title may be cited as the "Employment Opportunities for Handicapped Individuals Act". PART A-COMMUNITY SERVICE EMPLOYMENT PILOT PROGRAMS FOR HANDICAPPED INDIVIDUALS ESTABLISHMENT OF PILOT PROGRAM SEC. 611. (a) In order to promote useful opportunities in community service activities for handicapped individuals who have poor employment prospects, the Secretary of Labor (hereinafter in this part referred to as the "Secretary") is authorized to establish a com- munity service employment pilot program for handicapped individuals. For purposes of this part, the term "eligible individuals" means persons who are handicapped individuals (as de- REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 53 fined in section 7(7) of this Act) and who are referred to programs under this part by designated State units. (b) (1) The Secretary may enter into agreements with public or private nonprofit agen- cies or organizations including national organizations, agencies of a State government or a political subdivision of a State (having elected or duly appointed governing officials), or a combination of such political subdivisions, or tribal organizations in order to carry out the pilot program referred to in subsection (a). Such agreements may include provisions con- sistent with subsection (c) for the payment of the costs of projects developed by such organi- zations and agencies in cooperation with the Secretary. No payment shall be made by the Secretary toward the cost of any such project unless the Secretary determines that: (A) Such project will provide employment only for eligible individuals, except that if eligible individuals are not available to serve as technical, administrative, or super- visory personnel for a project then such personnel may be recruited from among other individuals. (B) Such project will provide employment for eligible individuals in the community in which such individuals reside, or in nearby communities. (C) Such project will employ eligible individuals in services related to publicly owned and operated facilities and projects, or projects sponsored by organizations, other than political parties, exempt from taxation under section 501 (c) (3) of the In- ternal Revenue Code of 1954, except for projects involving the construction, operation, or maintenance of any facility used or to be used as a place for sectarian religious in- struction or worship. (D) Such project will contribute to the general welfare of the community in which eligible. individuals are employed under such project. (E) Such project (i) will result in an increase in employment opportunities over those opportunities which would otherwise be available, (ii) will not result in any dis- placement of currently employed workers (including partial displacement, such as a reduction in the hours of nonovertime work or wages or employment benefits), and (iii) will not impair existing contracts or result in the substitution of Federal funds for other funds in connection with work that would otherwise be performed. (F) Such project will not employ any eligible individual to perform work which is the same or substantially the same as that performed by any other person who is on layoff from employment with the agency or organization sponsoring such project. (G) Such project will utilize methods of recruitment and selection (including the listing of job vacancies with the State agency units designated under section 101 (a) (2) (A) to administer vocational rehabilitation services under this Act) which will assure that the maximum number of eligible individuals will have an opportunity to participate in the project. (H) Such project will provide for (i) such training as may be necessary to make the most effective use of the skills and talents of individuals who are participating in the project, and (ii) during the period of such training, a reasonable subsistence allowance for such individuals and the payment of any other reasonable expenses related to such training. (I) Such project will provide safe and healthy working conditions for any eligible individual employed under such project and will pay any such individual at a rate of pay not lower than the rate of pay described in paragraph (2). (J) Such project will be established or administered with the advice of (i) persons competent in the field of service in which employment is being provided, and (ii) persons who are knowledgeable with regard to the needs of handicapped individuals. (K) Such project will pay any reasonable costs for work-related expenses, trans- portation, and attendant care incurred by eligible individuals employed under such project in accordance with regulations prescribed by the Secretary. (L) Such project will provide appropriate placement services for employees under the project to assist them in locating unsubsidized employment when the Federal assist- ance for the project terminates. (2) The rate of pay referred to in subparagraph (I) of paragraph (1) is the highest of the following: 54 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (A) the prevailing rate of pay for persons employed in similar occupations by the same employer. (B) The minimum wage which would be applicable to the employee under the Fair Labor Standards Act of 1938 if such employee were not exempt from such Act under section 13 thereof. (C) The State or local minimum wage for the most nearly comparable covered employment. The Department of Labor shall not issue any certificate of exemption under section 14(c) of the Fair Labor Standards Act of 1938 with respect to any person employed in a project under this section. (c) (1) The Secretary may pay not to exceed 90 percent of the cost of any project which is the subject of an agreement entered into under subsection (b). Notwithstanding the pre- ceding sentence, the Secretary may pay all of the costs of any such project which is (A) an. emergency or disaster project, or (B) a project-located in an economically depressed area, as determined by the Secretary in consultation with the Secretary of Commerce and the Director of the Community Services Administration. (2) The non-Federal share of any project under this may be in cash or in kind. In determining the amount of the non-Federal share, the Secretary may attribute fair market value to services and facilities contributed from non-Federal sources. (d) Payments under this part may be made in advance or by way of reimbursement, and in such installments as the Secretary may determine. ADMINISTRATION SEC. 612. (a) In order to effectively carry out the provisions of this part, the Secretary shall, through the Commissioner of the Rehabilitation Services Administration, consult with any designated State unit with regard to- (1) the localities in which community service projects of the type authorized/by this part are most needed; (2) the employment situations and types of skills possessed by eligible individuals in such localities; and (3) potential projects suitable for funding in such localities. (b) The Secretary shall coordinate the pilot program established under this part with programs authorized under the Emergency Jobs and Unemployment Assistance Act of 1974, the Comprehensive Employment and Training Act of 1973, the Community Services Act of 1974, and the Emergency Employment Act of 1971. Appropriations under this part may not be used to carry out any program under the Acts referred to in the preceding sentence. (c) In carrying out this part, the Secretary may, with the consent of any other Federal, State, or local agency, use the services, equipment, personnel, and facilities of such agency with or without providing such agency with reimbursement and may use the services, equip- ment, and facilities of any other public or private entity on a similar basis. (d) Within one hundred and eighty days after the effective date of this part, the Secre- tary shall issue and publish in the Federal Register such regulations as may be necessary to carry out this part. (e) The Secretary shall not delegate any function of the Secretary under this part to any other department or agency of the Federal Government. PARTICIPANTS NOT FEDERAL EMPLOYEES SEC. 613. (a) Eligible individuals who are employed in any project funded under this part shall not be considered to be Federal employees as a result of such employment and shall not be subject to the provisions of part III of title 5, United States Code. (b) No contract shall be entered into under this part with a contractor who is, or whose employees are, under State law, exempted from operation of any State workmen's compensa- tion law generally applicable to employees, unless the contractor shall undertake to provide for persons to be employed under such contract, through insurance by a recognized carrier or by self-insurance authorized by State law, workmen's compensation coverage equal to that provided by law for covered employment. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 55 (c) No part of the wages, allowances, or reimbursement for transportation and attendant care costs made available to an eligible individual employed in any project funded under this part shall be treated as income or benefits for the purpose of any other program or provision of State or Federal law, unless the Secretary makes a case by case determination that disallow- ance of such income or benefits is inequitable or does not carry out the purposes of this title. INTERAGENCY COOPERATION SEC. 614. (a) The Secretary shall consult with, and obtain the written views of, the Commissioner of the Rehabilitation Services Administration before establishing rules or general policy in the administration of this part. (b) The Secretary shall consult and cooperate with the Director of the Community Serv- ices Administration, the Secretary of Health, Education, and Welfare, and the heads of other Federal agencies carrying out related programs, in order to achieve maximum coordination between such programs and the program established under this part. Each Federal agency shall cooperate with the Secretary in disseminating information relating to the availability of assistance under this part and in identifying individuals eligible for employment in projects assisted under this part. EQUITABLE DISTRIBUTION OF ASSISTANCE SEC. 615. (a) (1) Preference in awarding grants or contracts under this part shall be given to organizations of proven ability in providing employment services to handicapped individuals under this program and similar programs. The Secretary, in awarding grants and contracts under this section, shall, to the extent feasible, assure an equitable distribution of activities under such grants and contracts among the States, taking into account the needs of underserved States. (2) The Secretary shall allot for projects within each State the sums appropriated for any fiscal year under section 617 so that each State will receive an amount which bears the same ratio to such sums as the population of the State bears to the population of all the States. (b) The amount allotted for projects within any State under subsection (a) for any fiscal year which the Secretary determines will not be required for such year shall be reallotted, from time to time and on such dates during such year as the Secretary may fix, to project within other States in proportion to the original allotments to projects within such States under subsection (a) for such' year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum the Secretary estimates that proj- ects within such State need and will be able to use for such year. The total of such reductions shall be similarly reallotted among the States whose proportionate amounts were not so reduced. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) for such year. (c) The amount apportioned for projects within each State under subsection (a) shall be apportioned among areas within each such State in an equitable manner, taking into con- sideration (1) the proportion which eligible individuals in each such area bears to the total number of such individuals, respectively, in that State, and (2) the relative distribution of such individuals residing in rural and urban areas within the State. DEFINITIONS SEC. 616. For purposes of this part- (1) the term "community service" means social, health, welfare, and educational services, legal and other counseling services and assistance, including tax counseling and assistance and financial counseling, and library, recreational, and other similar services; conservation, maintenance, or restoration of natural resources; community betterment or beautification; antipollution and environmental quality efforts; economic develop- ment; and such other services essential and necessary to the community as the Secretary, by regulation, may prescribe; (2) the term "pilot program" means the community service employment program for handicapped individuals established under this part; and (3) the term "attendant care" means interpreter services for the deaf, reader serv- ices for the blind, and services provided to assist mentally retarded individuals to perform duties of employment. AUTHORIZATION OF APPROPRIATIONS SEC. 617. There are authorized to be appropriated to carry out the purposes of this part $35,000,000 for the fiscal year ending September 30, 1979, $50,000,000 for the fiscal year 56 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 ending September 30, 1980, $75,000,000 for the fiscal year ending September 30, 1981, and $100,000,000 for the fiscal year ending September 30, 1982. PART B-PROJECTS WITH INDUSTRY AND BUSINESS OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS PROJECTS WITH INDUSTRY SEC. 621. (a) (1) The Commissioner, in consultation with the Secretaries of Labor and Commerce and with designated State units may enter into agreements with individual em- ployers and other entities to establish jointly financed projects which- (A) shall provide handicapped individuals with training and employment in a realistic work setting in order to prepare them for employment in the competitive market; (B) shall provide handicapped individuals with such supportive services as may be required to permit them to continue to engage in the employment for which they have received training under this section; and (C) shall, to the extent appropriate, expand job opportunities for handicapped individuals by providing for (i) the development and modification of jobs to accom- modate the special needs of such individuals, (ii) the distribution of special aids, appli- ances, or adapted equipment to such individuals, (iii) the establishment of appropriate job placement services, and (iv) the modification of any facilities or equipment of the employer which are to be used primarily by handicapped individuals. (2) Any agreement under this subsection shall be jointly developed by the Commissioner, the prospective employer, and, to the extent practicable, the appropriate designated State unit and the handicapped individuals involved. Such agreements shall specify the terms of training and employment under the project, provide for the payment by the Commissioner of part of the costs of the project (in accordance with subsection (e)), and contain the items required under subsection (b) and such other provisions as the parties to the agreement con- sider to be appropriate. (b) No payment shall be made by the Commissioner under any agreement with an em- ployer entered into under subsection (a) unless such agreement- (1) provides assurances that handicapped individuals placed with such employer shall receive at least the applicable minimum wage; (2) specifies that the Commissioner, together with the designated State unit has the right to review any termination of employment, and that, in the event such termina- tion occurs less than three years after the date of the commencement of employment of the handicapped individual involved, the Commissioner shall be entitled to require the repayment of a portion of the funds made available to the employer if such termina- tion is without reasonable cause, as determined by the Commissioner in consultation with such designated State unit; and (3) provides assurances that any handicapped individual placed with such employer shall be afforded terms and benefits of employment equal to those which are afforded to other employees of such employer, and that such handicapped individuals shall not be unreasonably segregated from other employees. (c) Payments under this section with respect to any project may not exceed 80 per centum of the costs of the project. BUSINESS OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS SEC. 622. The Commissioner, in consultation with the Secretaries of Labor and Com- merce may make grants to, or enter into contracts with, handicapped individuals to enable them to establish or operate commercial or other enterprises to develop or market their products or services. Within ninety days after the effective date of this section, the Com- missioner shall promulgate regulations to carry out this section, including regulations speci- fying (1) the maximum amount of money which may be provided under this section to any participant, and (2) procedures for certification, by designated State units, of individuals eligible to participate in any program under this section. AUTHORIZATION OF APPROPRIATIONS SEC. 623. There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this part for each fiscal year beginning before October 1, 1982. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 57 TITLE VII-COMPREHENSIVE SERVICES FOR INDEPENDENT LIVING PART A-COMPREHENSIVE SERVICES PURPOSE SEC. 701. The purpose of this title is to authorize grants (supplementary to grants for vocational rehabilitation services under title I) to assist States in providing comprehensive services for independent living designed to meet the current and future needs of individuals whose disabilities are so severe that they do not presently have the potential for employment but may benefit from vocational rehabilitation services which will enable them to live and function independently. ELIGIBILITY SEC. 702. (a) Services may be provided under this title to any individual whose ability to engage or continue in employment, or whose ability to function independently in his family or community, is so limited by the severity of his disability that vocational or comprehensive rehabilitation services appreciably more costly and of appreciably greater duration than those vocational or comprehensive rehabilitation services required for the rehabilitation of a handi- capped individual are required to improve significantly either his ability to engage in employ- ment or his ability to function independently in his family or community. Priority of services under this part shall be given to individuals not served by other provisions of this Act. (b) For purposes of this title, the term 'comprehensive services for independent living' means any appropriate vocational rehabilitation service (as defined under title I of this Act) and any other service that will enhance the ability of a handicapped individual to live inde- pendently and function within his family and community and, if appropriate, secure and maintain appropriate employment. Such services may include any of the following: counsel- ing services, including psychological, psychotherapeutic, and related services; housing incidental to the purpose of this section (including appropriate accommodations to and modifi- cations of any space to serve handicapped individuals); appropriate job placement services; transportation; attendant care; physical rehabilitation; therapeutic treatment; needed prostheses and other appliances and devices; health maintenance; recreational activities; services for children of preschool age, including physical therapy, development of language and communication skills, and child development services; and appropriate preventive serv- ices to decrease the needs of individuals assisted under the program for similar services in the future. ALLOTMENTS SEC. 703. (a) (1) From sums made available for each fiscal year for the purposes of allot- ments under this subpart, each State whose comprehensive services plan has been approved under section 705 shall be entitled to an allotment of an amount bearing the same ratio to such sums as the population of the State bears to the population of all States. Except as pro- vided in paragraph (2), the allotment to any State under the preceding sentence shall be not less than $200,000 or one-third of 1 percent of the sums made available for the fiscal year for which the allotment is made, whichever is greater, and the allotment of any State under this section for any fiscal year which is less than $200,000 or one-third of 1 percent of such sums shall be increased to the greater of the two amounts. (2) For purposes of this subsection, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands shall not be con- sidered as States and shall each be allotted not less than one-eighth of 1 percent of the amounts made available for purposes of this subpart for the fiscal year for which the allotment is made. (b) Amounts necessary to increase the allotments of States under paragraph (1) or to provide allotments under paragraph (2) shall be derived by proportionately reducing the allotments of the remaining States under paragraph (1), but with such adjustments as may be necessary to prevent the allotment of any such remaining States from being thereby reduced to less than the greater of $200,000 or one-third of 1 percent of the sums made available for purposes of this subpart for the fiscal year for which the allotment is made. (c) Whenever the Commissioner determines that any amount of an allotment to a State for any fiscal year will not be utilized by such State in carrying out the purposes of this title, he shall make such amount available for carrying out the purposes of this section to one or more of the States which he determines will be able to use additional amounts during such year for carrying out such purposes. Any amount made available to a State for any fiscal year pursuant to the preceding sentence shall, for the purposes of this section, be regarded 58 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 as an increase in the State's allotment (as determined under the preceding provisions of this section) for such year. PAYMENTS TO STATES FROM ALLOTMENTS SEC. 704. (a) From each State's allotment for a fiscal year under section 703, the State shall be paid the Federal share of the expenditures incurred during such year under its State plan approved under section 705. Such payments may be made (after necessary adjustments on account of previously made overpayments or underpayments) in advance or by way of reimbursement, and in such installments and on such conditions as the Commissioner may determine. (b) (1) The Federal share with respect to any State for any fiscal year shall be 90 percent of the expenditures incurred by the State during such year under its State plan approved under section 705. (2) The non-Federal share of the cost of any project assisted by an allotment under this subpart may be provided in kind. (3) For the purpose of determining the Federal share with respect to any State, expendi- tures by a political subdivision of such State shall, subject to regulations prescribed by the Commissioner, be regarded as expenditures by such State. STATE PLANS SEC. 705. (a) In order to be eligible for grants under this part, a State shall submit to the Commissioner a State plan for a three-year period for providing comprehensive services for independent living to severely handicapped individuals, and, upon request of the Com- missioner, shall make such annual revisions in the plan as may be necessary. Each such plan shall- (1) designate the designated State unit of such State as the agency to administer the programs funded under this part; (2) demonstrate that the State has studied and considered a wide variety of methods for providing comprehensive services to severely handicapped individuals (such as regional and community centers, halfway houses, and patient-release programs) and that the State will provide, to the maximum extent feasible, meaningful alternatives to institutionalization; (3) (A) describe the quality, scope, and extent of the comprehensive services for independent living to be provided to handicapped individuals under this part, and specify the State's goals and plans with respect to the distribution of funds received under part B of this title; and (B) provide satisfactory assurances that facilities used in connection with the delivery of services assisted under this part and part B of this title will comply with the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968; (4) provide assurances that (A) an individualized written rehabilitation program meeting the requirements of section 102 will be developed for each handicapped individ- ual eligible for independent living services under this part; (B) such services will be provided in accordance with such program; and (C) that such program be coordinated with the individualized written rehabilitation program, habilitation plan, or education program for such individual required under section 102 of this Act, section 112 of the Developmental Disabilities Services and Facilities Construction Act, and sections 612 (4) and 614 (a) (5) of the Education for All Handicapped Children Act of 1975, respectively; (5) provide assurances that the State will conduct periodic reviews of the progress of individuals assisted under this title to determine whether services provided to such individuals should be continued, modified, or discontinued; (6) provide assurances that special efforts will be undertaken to provide technical assistance to urban and rural poverty areas with respect to the provision of compre- hensive services for severely handicapped individuals and describe such efforts; (7) provide assurances that handicapped individuals shall have a substantial role in developing the State plan; and (8) provide assurances that not less than 20 percent of the funds received by a State under this part shall be used to make grants to local public agencies and private non- profit organizations for the conduct of independent living services except that the Com- missioner may waive the requircment of this clause if the Commissioner determines, on REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 59 the basis of evidence submitted by the State, that such State cannot feasibly use the funds required to be expended under this section for the purposes of this clause; and (9) contain such other information, and be submitted in such form and in accordance with such procedures, as the Commissioner may require. (b) As soon as practicable after receiving a State plan submitted under subsection (a), the Commissioner shall approve or disapprove such plan. The Commissioner shall approve any State plan which he determines meets the requirements and purposes of this section. The provisions of subsections (b), (c), and (d) of section 101 of this Act shall apply to any State plan submitted to the Commissioner pursuant to this section, except that for purposes of this section, all references in such subsections to the Secretary shall be deemed to be references to the Commissioner. PART B-CENTERS FOR INDEPENDENT LIVING GRANT PROGRAM ESTABLISHED SEC. 711. (a) The Commissioner may make grants to any designated State unit which administers the State plan under section 705 to provide for the establishment and operation of independent living centers, which shall be facilities offering the services described in sub- section (c) (2). (b) No grant may be made under this section unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application for a grant unless the application- (1) contains assurances that the designated State unit will use funds provided by such grant in accordance with subsection (c); and (2) contains such other information, and is submitted in such form and in accord- ance with such procedures, as the Commissioner may require. (c) An application by a public or nonprofit agency or organization for such grant shall- (1) provide assurances that handicapped individuals will be substantially involved in policy direction and management of such center, and will be employed by such center; (2) contain assurances that the independent living center to be assisted by such grant shall offer handicapped individuals a combination of independent living services, including, as appropriate- (A) intake counseling to determine the client's need for specific rehabilitation services; (B) referral and counseling services with respect to attendant care; (C) counseling and advocacy services with respect to legal and economic rights and benefits; (D) independent living skills, counseling, and training, including such programs as training in the maintenance of necessary equipment and in job-seeking skills, counseling on therapy needs and programs, and special programs for the blind and deaf; (E) housing and transportation erral and assistance; (F) surveys, directories, and other activities to identify appropriate housing and accessible transportation, and other support services; (G) health maintenance programs; (H) peer counseling; (I) community group living arrangements; (J) education and training necessary for living in the community and partici- pating in community activities; (K) individual and group social and recreational activities; (L) other programs designed to provide resources, training, counseling, serv- ices, or other assistance of substantial benefit in promoting the independence, pro- ductivity, and quality of life of handicapped individuals; 60 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (M) attendant care and training of personnel to provide such care; and (N) such other services as may be necessary and not inconsistent with the provisions of this title; and (3) contain such other information, and be submitted in such form and in accord- ance with such procedures, as the Commissioner may require. (d) If, within six months after the date in each fiscal year on which the Commissioner begins to accept applications from designated State units under this section, a designated State unit in a State has not submitted such an application, the Commissioner may accept applications for grants under this section from local public agencies or private nonprofit organizations within such State. After the receipt of such applications, the Commissioner may make grants to such agencies or organizations for the purpose of establishing independ- ent living centers to provide the services described in subsection (c) (2). PART C-INDEPENDENT LIVING SERVICES FOR OLDER BLIND INDIVIDUALS SERVICE PROGRAM ESTABLISHED SEC. 721. (a) The Commissioner may make grants to any designated State unit to pro- vide independent living services to older blind individuals. Such services shall be designed to assist an older blind individual to adjust to his blindness by becoming more able to care for his individual needs. Such services may include- (1) services to help correct blindness such as (A) outreach services, (B) visual screening, (C) surgical or therapeutic treatment to prevent, correct, or modify disabling eye conditions, and (D) hospitalization related to such services; (2) the provision of eyeglasses and other visual aids; (3) the provision of services and equipment to assist an older blind individual to become more mobile and more able to care for himself; (4) mobility training, Braille instruction, and other services and equipment to help an older blind individual adjust to blindness; (5) guide services, reader services, and transportation; and (6) any other appropriate services designated to assist a blind person in coping with daily living activities, including supportive services or rehabilitation teaching services. (b) No grant may be made under this section unless an application therefor, containing such information as the Commissioner may require, has been submitted to and approved by the Commissioner. The Commissioner may not approve any application for a grant unless the application contains assurances that the designated States unit will seek to incorporate any new methods and approaches relating to the services described in subsection (a) into its State plan for independent living services under section 705 of this title. (c) Funds received under this section by any designated State unit may be used to make grants to public or private nonprofit agencies or organizations to- (1) conduct activities which will improve or expand services for older blind individ- uals and help improve public understanding of the problems of such individuals; and (2) provide independent living services to older blind individuals in accordance with the provisions of subsection (a). (d) For purposes of this section, the term "older blind individual" means an individual aged fifty-five or older whose severe visual impairement makes gainful employment extremely difficult to attain but for whom independent living goals are feasible. PART D-GENERAL PROVISIONS PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS SEC. 731. (a) The Commissioner may make grants to States to establish systems to pro- tect and advocate the rights of severely handicapped individuals. In order to be eligible for a grant under this section, a State shall provide the Commissioner with assurances that any system established with grants made under this section shall have the authority to pursue REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 61 legal, administrative, and other appropriate remedies to insure the protection of the rights of such individuals receiving services under this title within the State. A State must provide that such system will be independent of any designated State unit that provides services under this part to such individuals. (b) No grant may be made under this section unless an application therefor has been submitted to the Commissioner containing such information and in such form and in accord- ance with such procedures as the Commissioner may, by regulation, prescribe. EMPLOYMENT OF HANDICAPPED INDIVIDUALS SEC. 732. As a condition of providing assistance under this title, the Secretary shall require that each recipient of assistance take affirmative action to employ and advance in employment qualified handicapped individuals on the same terms and conditions required with respect to the employment of such individuals under the provisions of this Act which government employment (1) by State rehabilitation agencies and rehabilitation facilities, and (2) under Federal contracts and subcontracts. PART E-AUTHORIZATIONS AUTHORIZATION OF APPROPRIATIONS SEC. 731.* (a) For the purpose of carrying out the provisions of parts A, B, and C of this title, there are authorized to be appropriated $80,000,000 for the fiscal year ending September 30, 1979, $150,000,000 for the fiscal year ending September 30, 1980, $200,000,000 for the fiscal year ending September 30, 1981, and such sums as may be necessary for the fiscal year ending September 30, 1982. (b) From the amounts authorized to be appropriated under this section, an amount shall be made available for the purpose of carrying out the provisions of part C of this title in an amount not in excess of 10 percent of the amount made available for carrying out the provisions of subpart 1 of part A of this title. (c) (1) For the purpose of carrying out part D of this title, there are authorized to be appropriated such sums as may be necessary for the fiscal year ending September 30, 1979, and for each of the three succeeding fiscal years, but in no event shall such sums exceed $6,000,000 for the fiscal year ending September 30, 1979, $7,500,000 for the fiscal year ending September 30, 1980, and $9,000,000 for the fiscal year ending September 30, 1981. (2) The provisions of section 1913 of title 18 of the United States Code shall be applicable to all moneys authorized under the provisions of this subsection. OTHER ACTS AMENDED SECTION 1904 OF TITLE 38, UNITED STATES CODE CHAPTER 39-AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED VETERANS AND MEMBERS OF THE ARMED FORCES § 1904. Research and development (a) In carrying out medical and prosthetic research under section 4101 of this title, the Administrator, through the Chief Medical Director, shall provide for special emphasis on the research and development of adaptive equipment and adapted conveyances (including vans) meeting standards of safety and quality prescribed under subsection (d) of section 1903, including support for the production and distribution of devices and conveyances so developed. (b) In carrying out subsection (a) of this section, the Administrator, through the Chief Medical Director, shall consult and cooperate with the Secretary of Health, Education, and Welfare and the Commissioner of the Rehabilitation Services Administration, Department of Health, Education, and Welfare, in connection with programs carried out under section 3(b) of the Rehabilitation Act of 1973 (Public Law 93-112; 87 Stat. 357) (relating to the development and support, and the stimulation of the development and utilization, including production and distribution of new and existing devices, of innovative methods of applying advanced medical technology, scientific achievement, and psychological and social knowledge to solve rehabilitation problems), [section 202 (b) (2).] and section 204 (b) (2) of such Act *§ 731 of Part E should be "741", of. $ 731, Part D, p. 122. 62 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (relating to the establishment and support of Rehabilitation Engineering Research Centers) [, and section 405 of such Act (relating to the Secretarial responsibilities for planning, analy- sis, promoting utilization of scientific advances, and information clearing house activities) ENERGY CONSERVATION AND PRODUCTION ACT, 90 STAT. 1152 (1976) DEFINITIONS SEC. 412. As used in this part: (1) The term "Administrator" means the Administrator of the Federal Energy Administration except that after such Administration ceases to exist, such term means any officer of the United States designated by the President for purposes of this part. (2) The term "Director" means the Director of the Community Services Administration. (3) The term "elderly" means any individual who is 60 years of age or older. (4) The term "Governor" means the chief executive officer of a State (including the Mayor of the District of Columbia). (5) The term "handicapped person" means any individual (A) who is a handicapped individual [as defined in section 7(6)] as defined in section 7(7) of the Rehabilitation Act of 1973, (B) who is under a disability as defined in section 1614 (a) (3) (A) or 223 (d) (1) of the Social Security Act or in section 102 (7) of the Developmental Disabilities Services and Facilities Construction Act, or (C) who is receiving benefits under chapter 11 or 15 of title 38, United States Code. (6) The terms "Indian" "Indian tribe" and "tribal organization" have the meanings prescribed for such terms by paragraph (4), (5), and (6), respectively, of section 102 of the Older Americans Act of 1965. (7) The term "low-income" means that income in relation to family size which (A) is at or below the poverty level determined in accordance with criteria established by the Director of the Office of Management and Budget, or (B) is the basis on which cash assistance payments have been paid during the preceding 12-month period under titles IV and XVI of the Social Security Act or applicable State or local law. (8) The term "State" means each of the States and the District of Columbia. (9) The term "weatherization materials" means items primarily designed to im- prove the heating or cooling efficiency of a dwelling unit, including, but not limited to, ceiling, wall, floor, and duct insultation, storm windows and doors, and caulking and weatherstripping, but not including mechanical equipment valued in excess of $50 per dwelling unit. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 GPO 39:152mh 1978 AMENDMENTS (Public Law 95-602) TO REHABILITATION ACT OF 1973 REHABILITATION COMPREHENSIVE SERVICES DEVELOPMENTAL DISABILITIES THE STATE OFFERNAL OF TEXAS MAN TEXAS REHABILITATION COMMISSION CHANGES IN EXISTING LAW MADE BY H.R. 12467, AS PASSED BY HOUSE AND SENATE REHABILITATION ACT OF 1973 COMMITTEE ON EDUCATION AND LABOR U.S. HOUSE OF REPRESENTATIVES Additional copies available in Office of General Counsel, Texas Rehabilitation Commission. NOTE Changes in existing law made by the bill, as passed, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italics, existing law in which no change is proposed is shown in roman). REHABILITATION ACT OF 1973 TABLE OF CONTENTS Sec. 2. Declaration of purpose. Sec. 3. Rehabilitation Services Administration. Sec. 4. Advance funding. Sec. 5. Joint funding. Sec. 6. Consolidated rehabilitation plan. Sec. 7. Definitions. Sec. 8. Allotment percentage. Sec. 9. Audit. Sec. 10. Nonduplication. Sec. 11. Application of other laws. Sec. 12. Administration of the Act. Sec. 13. Reports. Sec. 14. Evaluation. Sec. 15. Information clearinghouse. Sec. 16. Transfer of funds. TITLE I-VOCATIONAL REHABILITATION SERVICES PART A-GENERAL PROVISIONS Sec. 100. Declaration of purpose; authorization of appropriations. Sec. 101. State plans. Sec. 102. Individualized written rehabilitation program. Sec. 103. Scope of vocational rehabilitation services. Sec. 104. Non-Federal share for construction. PART B-BASIC VOCATIONAL REHABILITATION SERVICES Sec. 110. State allotments. Sec. 111. Payments to States. Sec. 112. Client assistance. PART C-INNOVATION AND EXPANSION GRANTS Sec. 120. State allotments. Sec. 121. Payments to States. [PART D-COMPREHENSIVE SERVICE NEEDS [Sec. 130. Special study.] PART D-AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES Sec. 130. Vocational rehabilitation services grants. Sec. 131. Evaluation. [TITLE II-RESEARCH AND TRAINING [Sec. 200. Declaration of purpose. [Sec. 201. Authorization of appropriations. [Sec. 202. Research. [Sec. 203. Training. [Sec. 204. Reports.] 2 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 TITLE II-RESEARCH Sec. 200. Declaration of purpose. Sec. 201. Authorization of appropriations. Sec. 202. National Institute of Handicapped Research. Sec. 203. Interagency committee. Sec. 204. Research. TITLE III-[SPECIAL FEDERAL RESPONSIBILITIES] SUPPLEMENTARY SERVICES AND FACILITIES PART A-MISCELLANEOUS PROGRAMS Sec. 300. Declaration of purpose. Sec. 301. Grants for construction of rehabilitation facilities. Sec. 302. Vocational training services for handicapped individuals. Sec. 303. [Mortgage insurance for rehabilitation facilities.] Loan guarantees for rehabilita- tion facilities. Sec. 304. Special projects and demonstrations.] Training. Sec. 305. [National Center for Deaf-Blind Youths and Adults.] Comprehensive rehabilitation centers. Sec. 306. General grant and contract requirements. PART B-SPECIAL PROJECTS Sec. 310. Authorization of appropriations. Sec. 311. Special demonstration programs. Sec. 312. Migratory workers. Sec. 313. Helen Keller National Center. Sec. 314. Reader services for the blind. Sec. 315. Interpreter services for the deaf. Sec. 316. Special Recreational Programs. [TITLE IV-ADMINISTRATION AND PROGRAM AND PROJECT EVALUATION [Sec. 400. Administration. [Sec. 401. Program and project evaluation. [Sec. 402. Obtaining information from Federal agencies. [Sec. 403. Authorization of appropriations. [Sec. 404. Reports. TSec. 405. Secretarial responsibility. [Sec. 406. Sheltered workshop study. [Sec. 407. State allocation study.] TITLE IV-NATIONAL COUNCIL ON THE HANDICAPPED Sec. 400. Establishment of National Council on the Handicapped. Sec. 401. Duties of National Council. Sec. 402. Compensation of National Council members. Sec. 403. Staff of National Council. Sec. 404. Administrative powers of National Council. Sec. 405. Authorization of appropriations. TITLE V-MISCELLANEOUS Sec. 500. Effect on existing laws. Sec. 501. Employment of handicapped individuals. Sec. 502. Architectural and Transportation Barriers Compliance Board. Sec. 503. Employment under Federal contracts. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 3 Sec. 504. Nondiscrimination under Federal grants. Sec. 505. Remedies and attorneys' fees. Sec. 506. Secretarial responsibilities. Sec. 507. Interagency Coordinating Council. TITLE VI-EMPLOYMENT OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS Sec. 601. Short title. PART A-COMMUNITY SERVICE EMPLOYMENT PROGRAMS FOR HANDICAPPED INDIVIDUALS Sec. 611. Establishment of program. Sec. 612. Administration. Sec. 613. Participants not Federal employees. Sec. 614. Interagency cooperation. Sec. 615. Equitable distribution of assistance. Sec. 616. Definitions. Sec. 617. Authorization of appropriations. PART B-PROJECTS WITH INDUSTRY AND BUSINESS OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS Sec. 621. Projects with industry. Sec. 622. Business opportunities for handicapped individuals. Sec. 623. Authorization of appropriations. TITLE VII-COMPREHENSIVE SERVICES FOR INDEPENDENT LIVING PART A-COMPREHENSIVE SERVICES Sec. 701. Purpose. Sec. 702. Eligibility. Sec. 703. Allotments. Sec. 704. Payments to States from allotments. Sec. 705. State plans. PART B-INDEPENDENT LIVING CENTERS Sec. 711. Grant program established. PART C-INDEPENDENT LIVING SERVICES FOR OLDER BLIND INDIVIDUALS Sec. 721. Service program established. PART D-GENERAL PROVISIONS Sec. 731. Protection and advocacy of individual rights. Sec. 732. Employment of handicapped individuals. PART E-AUTHORIZATIONS Sec. 731.* Authorization of appropriations. [DECLARATION OF PURPOSE SEC. 2. The purpose of this Act is to provide a statutory basis for the Rehabilitation Services Administration, and to authorize programs to- (1) develop and implement comprehensive and continuing State plans for meeting the current and future needs for providing vocational rehabilitation services to handi- capped individuals and to provide such services for the benefit of such individuals, serv- ing first those with the most severe handicaps, so that they may prepare for and engage in gainful employment; (2) evaluate the rehabilitation potential of handicapped individuals; (3) conduct a study to develop methods of providing rehabilitation services to meet the current and future needs of handicapped individuals for whom a vocational goal is *Note: There are two sections numbered 731. 4 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 not possible or feasible SO that they may improve their ability to live with greater inde- pendence and self-sufficiency; (4) assist in the construction and improvement of rehabilitation facilities; (5) develop new and innovative methods of applying the most advanced medical technology, scientific achievement, and psychological and social knowledge to solve re- habilitation problems and develop new and innovative methods of providing rehabilita- tion services to handicapped individuals through research, special projects, and demonstrations; (6) initiate and expand services to groups of handicapped individuals (including those who are homebound or institutionalized) who have been underserved in the past; (7) conduct various studies and experiments to focus on long neglected problem areas; (8) promote and expand employment opportunities in the public and private sectors for handicapped individuals and to place such individuals in employment; (9) establish client assistance pilot projects; (10) provide assistance for the purpose of increasing the number of rehabilitation personnel and increasing their skills through training; and (11) evaluate existing approaches to architectural and transportation barriers con- fronting handicapped individuals, develop new such approaches, enforce statutory and regulatory standards and requirements regarding barrier-free construction of public facilities and study and develop solutions to existing architectural and transportation barriers impeding handicapped individuals.] DECLARATION OF PURPOSE SEC. 2. The purpose of this Act is to develop and implement, through research, training, services, and the guarantee of equal opportunity, comprehensive and coordinated programs of vocational rehabilitation and independent living. REHABILITATION SERVICES ADMINISTRATION SEC. 3. (a) There is established in the Office of the Secretary a Rehabilitation Services Administration which shall be headed by a Commissioner (hereinafter in this Act referred to as the "Commissioner") appointed by the President by and with the advice and consent of the Senate. Except for titles IV and V and Part A of title VI and as otherwise specifically provided in this Act, such Administration shall be the principal agency, and the Commissioner shall be the principal officer, of such Department for carrying out this Act. In the performance of his functions, the Commissioner shall be directly responsible to the Secretary or to the Under Secretary or an appropriate Assistant Secretary of such Department, as designated by the Secretary. The functions of the Commissioner shall not be delegated to any officer not directly responsible, both with respect to program operation and administration, to the Com- missioner. Any reference in this Act to duties to be carried out by the Commissioner shall be considered to be a reference to duties to be carried out by the Secretary acting through the Commissioner. In carrying out any of his functions under this Act, the Commissioner shall be guided by general policies of the National Council on Handicapped established under title IV of this Act. [(b) The Secretary, through the Commissioner in coordination with other appropriate programs in the Department of Health, Education, and Welfare, in carrying out research under this Act shall establish the expertise and technological competence to, and shall, in con- sultation with, the National Science Foundation and the National Academy of Sciences de- velop and support, and stimulate the development and utilization (including production and distribution of new and existing devices) of, innovative methods of applying advanced medical technology, scientific achievement, and psychological and social knowledge to solve rehabilita- tion problems, and be responsible for carrying out the activities described in section 202 (b) (2).] [(c)] (b) The Secretary shall take whatever action is necessary to insure that funds appropriated pursuant to this Act, as well as unexpended appropriations for carrying out the Vocational Rehabilitation Act (29 U.S.C. 31-42), are expended only for the programs, per- sonnel, and administration of programs carried out under this Act. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 5 ADVANCE FUNDING SEC. 4. (a) For the purpose of affording adequate notice of funding available under this Act, appropriations under this Act are authorized to be included in the appropriation Act for the fiscal year preceding the fiscal year for which they are available for obligation. (b) In order to effect a transition to the advance funding method of timing appropriation action, the authority provided by subsection (a) of this section shall apply notwithstanding that its initial application will result in the enactment in the same year (whether in the same appropriation Act or otherwise) of two separate appropriations, one for the then current fiscal year and one for the succeeding fiscal year. JOINT FUNDING SEC. 5. Pursuant to regulations prescribed by the President, and to the extent consistent with the other provisions of this Act, where funds are provided for a single project by more than one Federal agency to an agency or organization assisted under this Act, the Federal agency principally involved may be designated to act for all in administering the funds pro- vided, and, in such cases, a single non-Federal share requirement may be established accord- ing to the proportion of funds advanced by each agency. When the principal agency involved is the Rehabilitation Services Administration, it may waive any grant or contract requirement (as defined by such regulations) under or pursuant to any law other than this Act, which requirement is inconsistent with the similar requirements of the administering agency under or pursuant to this Act. CONSOLIDATED REHABILITATION PLAN SEC. 6. (a) In order to secure increased flexibility to respond to the varying needs and local conditions within the State, and in order to permit more effective and interrelated plan- ning and operation of its rehabilitation programs, the State may submit a consolidated re- habilitation plan which includes the State's plan under section 101 (a) of this Act and its program for persons with developmental disabilities under the Development Disabilities Services and Facilities Construction Amendments of 1970 Provided, That the agency admin- istering such State's program under such Act concurs in the submission of such a consolidated rehabilitation plan. (b) Such a consolidated rehabilitation plan must comply with, and be administered in accordance with, all the requirements of this Act and the Developmental Disabilities Services and Facilities Construction Amendments of 1970. If the Secretary finds that all such require- ments are satisfied, he may approve the plan to serve in all respects as the substitute for the separate plans which would otherwise be required with respect to each of the programs in- cluded therein, or he may advise the State to submit separate plans for such programs. (c) Findings of noncompliance in the administration of an approved consolidated re- habilitation plan, and any reduction, suspensions, or terminations of assistance as a result thereof, shall be carried out in accordance with the procedures set forth in subsection (c) and (d) of section 101 of this Act. DEFINITIONS SEC. 7. For the purposes of this Act: (1) The term "construction" means the construction of new buildings, the acquisition, expansion, remodeling, alteration, and renovation of existing buildings, and initial equipment of such buildings, and the term "cost of construction" includes architects' fees and acquisition cf land in connection with construction but does not include the cost of offsite improvements. (2) The term "criminal act" means any crime, including an act, omission, or possession under the laws of the United States or a State or unit of general local government which poses a substantial threat of personal injury, notwithstanding that by reason of age, insanity, in- toxication or otherwise the person engaging in the act, omission, or possession was legally incapable of committing a crime. (3) The term 'designated State unit' means (A) any State agency unit required under section 101 (a) (2) (A) of this Act, or (B) in cases in which no such unit is so required, the State agency described in section 101 (a) (B) (i) of this Act. [(3)] (4) The term "establishment of a rehabilitation facility" means the acquisition, expansion, remodeling, or alteration of existing buildings necessary to adapt them to rehabili- tation facility purposes or to increase their effectiveness for such purposes (subject, however, 6 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 to such limitations as the Secretary may determine, in accordance with regulations he shall prescribe, in order to prevent impairment of the objectives of, or duplication of, other Fed- eral laws providing Federal assistance in the construction of such facilities), [and the initial equipment for such buildings, and may include the initial staffing thereof.] and may include such additional equipment and staffing as the Commissioner considers appropriate. [(4)] (5) The term "evaluation of rehabilitation potential" means, as appropriate in each case: (A) a preliminary diagnostic study to determine that the individual has a substantial handicap to employment, and that vocational rehabilitation services are needed; (B) a diagnostic study consisting of a comprehensive evaluation of pertinent medical, psychiatric, psychological, vocational, educational, cultural, social, and environmental factors which bear on the individual's handicap to employment and rehabilitation potential including, to the degree needed, an evaluation of the individual's personality, intelligence level, educa- tional achievements, work experience, vocational aptitudes and interests, personal and social adjustments, employment opportunities, and other pertinent data helpful in determining the nature and scope of services needed; (C) an appraisal of the individual's patterns of work behavior and ability to acquire occupational skill, and to develop work attitudes, work habits, work tolerance, and social and behavior patterns suitable for successful job performance, including the utilization of work, simulated or real, to assess and develop the individual's capacities to perform adequately in a work environment; (D) any other goods or services provided for the purpose of ascertaining the nature of the handicap and whether it may reasonably be expected that the individual can benefit from vocational rehabilitation services; (E) referral; (F) the administration of these evaluation services; and (G) (i) the provision of vocational rehabilitation services to any individual for a total period not in excess of eighteen months for the purpose of determining whether such individ- ual is a handicapped individual, a handicapped individual for whom a vocational goal is not possible or feasible (as determined in accordance with section 102(c)), or neither such in- dividual; and (ii) an assessment, at least once in every ninety-day period during which such services are provided, of the results of the provision of such services to an individual to ascer- tain whether any of the determinations described in subclause (i) may be made. [(5)] (6) The term "Federal share" means 80 per centum, except that it shall mean 90 per centum for the purposes of part C of title I of this Act and as specifically set forth in sec- tion 301(b) (3) Provided, That with respect to payments pursuant to part B of title I of this Act to any State which are used to meet the costs of construction of those rehabilitation facilities identified in section 103(b) (2) in such State, the Federal share shall be the per- centages determined in accordance with the provisions of section 301 (b) (3) applicable with respect to that State and that, for the purpose of determining the non-Federal share with re- spect to any State, expenditures by a political subdivision thereof by a local agency shall, sub- ject to such limitations and conditions as the Secretary shall by regulation prescribe, be re- garded as expenditures by such State. [(6)] (7) [The term] (A) Except as otherwise provided in subparagraph (B), the term "handicapped individual" means any individual who [(A)] (i) has a physical or mental dis- ability which for such individual constitutes or results in a substantial handicap to employ- ment and [(B)] (ii) can reasonably be expected to benefit in terms of employability from vocational rehabilitation services provided pursuant to titles I and III of this Act. For the purposes of titles IV and V of this Act, such term means any person who (A) has a physical or mental impairment which substantially limits one or more of such person's major life activities, (B) has a record of such an impairment, or (C) is regarded as having such an impairment.] (B) Subject to the second sentence of this subparagraph, the term 'handicapped in- dividual' means, for purposes of titles IV and V of this Act, any person who (i) has a physical or mental impairment which substantially limits one or more of such person's major life activities, (ii) has a record of such an impairment, or (iii) is regarded as having such an impairment. For purposes of sections 503 and 504 as such sections relate to employment, such term does not include any individual who is an alcoholic or drug abuser whose current use of alcohol or drugs prevents such individual from performing the duties of the job in question or REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 7 whose employment, by reason of such current alcohol or drug abuse, would constitute a direct threat to property or the safety of others. [(7)] (8) The term "local agency" means an agency of a unit of general local govern- ment or of an Indian tribal organization (or combination of such units or organizations) which has an agreement with the State agency designated pursuant to section 101 (a) (1) to conduct a vocational rehabilitation program under the supervision of such State agency in accordance with the State plan approved under section 101. Nothing in the preceding sentence of this paragraph or in section 101 shall be construed to prevent the local agency from utilizing another local public or nonprofit agency to provide vocational rehabilitation services: Pro- vided, That such an arrangement is made part of the agreement specified in this paragraph. [(8)] (9) The term "nonprofit", when used with respect to a rehabilitation facility, means a rehabilitation facility owned and operated by a corporation or association, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private share- holder or individual and the income of which is exempt from taxation under section 501 (c) (3) of the Internal Revenue Code of 1954. [(9)] (10) The term "public safety officer" means a person serving the United States or a State or unit of general local government, with or without compensation, in any activity pertaining to- (A) the enforcement of the criminal laws, including highway patrol, or the main- tenance of civil peace by the National Guard or the Armed Forces, (B) a correctional program, facility, or institution where the activity is potentially dangerous because of contact with criminal suspects, defendants, prisoners, probationers, or parolees, (C) a court having criminal or juvenile delinquent jurisdiction where the activity is potentially dangerous because of contact with criminal suspects, defendants, prisoners, probationers, or parolees, or (D) firefighting, fire prevention, or emergency rescue missions. [(10)] (11) The term "rehabilitation facility" means a facility which is operated for the primary purpose of providing vocational rehabilitation services to handicapped individ- uals, and which provides single or in combination one or more of the following services for handicapped individuals: (A) vocational rehabilitation services which shall include, under one management, medical, psychiatric, psychological, social, and vocational services, (B) test- ing, fitting, or training in the use of prosthetic and orthotic devices, (C) prevocational condi- tioning or recreational therapy, (D) physical and occupational therapy, (E) speech and hear- ing therapy (F) psychological and social services, (G) evaluation of rehabilitation potential, (H) personal and work adjustment, (I) vocational training with a view toward career ad- vancement (in combination with other rehabilitation services), (J) evaluation or control of specific disabilities, (K) orientation and mobility services to the blind, and (L) extended em- ployment for those handicapped individuals who cannot be readily absorbed in the competitive labor market, except that all medical and related health services must be prescribed by, or under the formal supervision of, persons licensed to prescribe or supervise the provision of such services in the State. [(11)] (12) The term "Secretary", except when the context otherwise requires, means the Secretary of Health, Education, and Welfare. [(12)] (13) The term "severe handicap" means the disability which requires multiple services over an extended period of time and results from amputation, blindness, cancer, cerebral palsy, cystic fibrosis, deafness, heart disease, hemiplegia, mental retardation, mental illness, multiple sclerosis, muscular dystrophy, neurological disorders (including stroke and epilepsy), paraplegia, quadriplegia and other spinal cord conditions, renal failure, respiratory or pulmonary dysfunction, and any other disability specified by the Secretary in regulations he shall prescribe. [(13)] (14) The term "State" includes the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and the Trust Territory of the Pacific Islands, and for the purposes of American Samoa and the Trust Territory of the Pacific Islands, the appro- priate State agency designated as provided in section 101(a) (1) shall be the Governor of American Samoa or the High Commissioner of the Trust Territory of the Pacific Islands, as the case may be. 8 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 [(14)] (15) The term "vocational rehabilitation services" means those services identi- fied in section 103 which are provided to handicapped individuals under this Act. ALLOTMENT PERCENTAGE PERCENTAGE LIMITATION; PROMULGATION AND COMPUTATION; "UNITED STATES" DEFINED SEC. 8. (a) (1) The allotment percentage for any State shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States, except that (A) the allotment percentage shall in no case be more than 75 per centum or less than 331/3 per centum, and (B) the allot- ment percentage for the District of Columbia, Puerto Rico, Guam, the Virgin Islands, Ameri- can Samoa, and the Trust Territory of the Pacific Islands shall be 75 per centumn. (2) The allotment percentages shall be promulgated by the Secretary between October 1 and December 31 of each even-numbered year, on the basis of the average of the per capita incomes of the States and of the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the beginning on the October 1 next suc- ceeding such promulgation. (3) The term "United States" means (but only for purposes of this subsection) the fifty States and the District of Columbia. POPULATION DETERMINATION (b) The population of the several States and of the United States shall be determined on the basis of the most recent data available, to be furnished by the Department of Commerce by October 1 of the year preceding the fiscal year for which funds are appropriated pursuant to statutory authorizations. AUDIT SEC. 9. Each recipient of a grant or contract under this Act shall keep such records as the Secretary may prescribe, including records which fully disclose the amount and disposi- tion by such recipient of the proceeds of such grant or contract, the total cost of the project or undertaking in connection with which such grant or contract is made or funds thereunder used, the amount of that portion of the cost of the project or undertaking supplied by other sources, and such records as will facilitate an effective audit. The Secretary and the Comp- troller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipient of any grant or contract under this Act which are pertinent to such grant or contract. NONDUPLICATION SEC. 10. In determining the amount of any State's Federal share of expenditures for planning, administration, and services incurred by it under a State plan approved in accord- ance with section 101, there shall be disregarded (1) any portion of such expenditures which are financed by Federal funds provided under any other provision of law, and (2) the amount of any non-Federal funds required to be expended as a condition of receipt of such Federal funds. No payment may be made from funds provided under one provision of this Act relating to any cost with respect to which any payment is made under any other provision of this Act, except that this section shall not be construed to limit or reduce fees for services rendered by rehabilitation facilities. APPLICATION OF OTHER LAWS SEC. 11. The provisions of the Act of December 5, 1974 (Public Law 93-510) and of title V of the Act of October 15, 1977 (Public Law 95-134) shall not apply to the administra- tion of the provisions of this Act or to the administration of any program or activity under this Act. ADMINISTRATION OF THE ACT SEC. 12. (a) In carrying out the purposes of this Act, the Commissioner may- (1) provide consultative services and technical assistance to public or nonprofit private agencies and organizations; (2) provide short-term training and technical instruction; (3) conduct special projects and demonstrations; REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 9 (4) collect, prepare, publish, and disseminate special educational or informational materials, including reports of the projects for which funds are provided under this Act; and (5) provide staff and other technical assistance to the National Council on the Handicapped. (b) In carrying out his duties under this Act, the Commissioner may utilize the services and facilities of any agency of the Federal Government and of any other public or nonprofit agency or organization, in accordance with agreements between the Commissioner and the head thereof, and may pay therefor, in advance or by way of reimbursement, as may be pro- vided in the agreement. (c) The Commissioner may promulgate such regulations as he considers appropriate to carry out his duties under this Act. (d) There are authorized to be appropriated to carry out this section such sums as may be necessary. REPORTS Sec. 13. Not later than one hundred and twenty days after the close of each fiscal year, the Commissioner shall prepare and submit to the President for transmittal to the Congress a full and complete report on the activities carried out under this Act. Such annual reports shall include statistical data reflecting services and activities provided individuals during the preceding fiscal year. EVALUATION Sec. 14. (a) The Secretary shall evaluate the impact of all programs authorized by this Act, their general effectiveness in achieving stated goals, and their effectiveness in relation to their cost, their impact on related programs, and their structure and mechanisms for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not immediately involved in the administration of the program or project evaluated. (b) In carrying out evaluations under this section, the Secretary shall, whenever possible, arrange to obtain the opinions of program and project participants about the strengths and weaknesses of the programs and projects. (c) The Secretary shall annually publish summaries of the results of evaluative research and evaluations of program and project impact and effectiveness, the full content of which shall be available to the Congress and the public. (d) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with Federal funds shall become the property of the United States. (e) Such information as the Secretary may deem necessary for purposes of the evalua- tions conducted under this section shall be made available to him, upon request, by the depart- ments and agencies of the executive branch. (f) There are authorized to be appropriated to carry out this section such sums as may be necessary. INFORMATION CLEARINGHOUSE SEC. 15. (a) The Secretary may establish a central clearinghouse for information and resource availability for handicapped individuals which shall provide information and data regarding (1) the location, provision, and availability of services and programs for handi- capped individuals, (2) research and recent medical and scientific developments bearing on handicapping conditions (and their prevention, amelioration, causes, and cures), and (3) the current numbers of handicapped individuals and their needs. The clearinghouse shall also provide any other relevant formation and data which the Secretary considers appropriate. (b) The Commissioner may assist the Secretary to develop within the Department of Health, Education, and Welfare a coordinated system of information and data retrieval, which will have the capacity and responsibility to provide information regarding the information and data referred to in subsection (a) of this section to the Congress, public and private agencies and organizations, handicapped individuals and their families, professionals in fields serving such individuals, and the general public. 10 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (c) Any office established to carry out the provisions of this section shall be known as the "Office of Information and Resources for the Handicapped". (d) There are authorized to be appropriated to carry out this section such sums as may be necessary. TRANSFER OF FUNDS SEC. 16. No funds appropriated under this Act for any rcsearch program or activity may be used for any purpose other than that for which the funds wcre specifically authorized. TITLE I-VOCATIONAL REHABILITATION SERVICES PART A-GENERAL PROVISIONS DECLARATION OF PURPOSE; AUTHORIZATION OF APPROPRIATIONS SEC. 100. (a) The purpose of this subchapter is to authorize grants to assist States to meet the current and future needs of handicapped individuals, so that such individuals may prepare for and engage in gainful employment to the extent of their capabilities. (b) (1) For the purpose of making grants to States under part B of this subchapter to assist them in meeting costs of vocational rehabilitation services provided in accordance with State plans under section 721 of this title, there is authorized to be appropriated $650,000,000 for the fiscal year ending June 30, 1974, $680,000,000 for the fiscal year ending June 30, 1975. $720,000,000 for the fiscal year ending June 30, 1976, $740,000,000 for the fiscal year ending September 30, 1977, and $760,000,000 for the fiscal year ending September 30, 1978. There is further authorized to be appropriated for such purpose $808,000,000 for the fiscal year ending September 30, 1979, and the amount determined under subsection (c) for the three succeeding fiscal years, but in no event shall the amount appropriated be greater than $880,- 000,000 for the fiscal year ending September 30, 1980, $945,000,000 for the fiscal year end- ing September 30, 1981, and $972,000,000 for the fiscal year ending September 30, 1982. (2) For the purpose of carrying out part C of this subchapter (relating to grants to States and public and nonprofit agencies to assist them in meeting the cost of projects to initiate or expand services to handicapped individuals, especially those with the most servere handicaps) and part D of this subchapter (relating to the study of comprehensive service needs of individuals with the most severe handicaps), there is authorized to be appropriated $37,000,000 for the fiscal year ending June 30, 1974, $39,000,000 for the fiscal year ending June 30, 1975, $42,000,000 for the fiscal year ending June 30, 1976, and $25,000,000 for the fiscal years ending September 30, 1977, and September 30, 1978 and there is further author- ized to be appropriated for such purposes for each such year such additional sums as the Con- gress may determine to be necessary. Of the sums appropriated under this paragraph for each such fiscal year, $1,000,000 in each such year shall be available only for the purpose of carrying out part D of this subchapter.] (2) For the purpose of allotments under section 120 (a) (1), there are authorized to be appropriated $45,000,000 for the fiscal year ending September 30, 1979, $50,000,000 for the fiscal year ending September 30, 1980, $55,000,000 for the fiscal year ending September 30, 1981, and $60,000,000 for the fiscal year ending September 30, 1982. There are further author- ized to be appropriated for such purpose for each year such additional sums as the Congress may determine to be necessary. (3) For the purpose of making grants to Indian tribes under part D of this title, there are authorized to be appropriated for the fiscal year ending September 30, 1979, and for each of the three fiscal years thereafter, in addition to any other amounts authorized to be appro- priated under this section, such sums as may be necessary for such fiscal year, but not more than an amount equal to 1 percent of the amount appropriated for that fiscal year under paragraph (1) of this subsection. (c) (1) No later than November 15 of each fiscal year (beginning with the fiscal year 1979), the Secretary of Labor shall publish in the Federal Register the percentage change in the price index published for October of the preceding fiscal year and October of the fiscal year in which such publication is made. (2) (A) If in any fiscal year the percentage change published under paragraph (1) indicates an increase in the price index, then the amount authorized to be appropriated under subsection (b) (1) for the subsequent fiscal year is the amount authorized to be appropriated REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 11 for the fiscal year in which the publication is made under paragraph (1) increased by such percentage change. (B) If in any fiscal year the percentage change published under paragraph (1) does not indicate an increase in the price index, then the amount authorized to be appropriated under subsection (b) (1) for the subsequent fiscal year is the amount authorized to be appropriated for the fiscal year in which the publication is made under paragraph (1). (3) For purposes of this subsection, the term "price index" means the Consumer Price Index for All Urban Consumers, published monthly by the Bureau of Labor Statistics. STATE PLANS SEc. 101. (a) [For each fiscal year in which a State desires to participate in programs under this title, a State shall submit to the Secretary for his approval an annual plan for voca- tional rehabilitation services which shall-] In order to be eligible to participate in programs under this title, a State shall submit to the Commissioner a State plan for vocational rehabilita- tion services for a three-year period and, upon request of the Commissioner, shall make such annual revisions in the plan as may be necessary. Each such plan shall— (1) (A) designate a State agency as the sole State agency to administer the plan, or to supervise its administration by a local agency, except that (i) where under the State's law the State agency for the blind or other agency which provides assistance or services to the adult blind, is authorized to provide vocational rehabilitation services to such individuals, such agency may be designated as the sole State agency to administer the part of the plan under which vocational. rehabilitation services are provided for the blind (or to supervise the administration of such part by a local agency) and a separate State agency may be desig- nated as the sole State agency with respect to the rest of the State plan, and (ii) the [Secretary] Commissioner, upon the request of a State, may authorize such agency to share funding and administrative responsibility with another agency of the State or with a local agency in order to permit such agencies to carry out a joint program to provide services to handicapped individuals, and may waive compliance with respect to vocational rehabilitation services furnished under such programs with the requirement of clause (4) of this subsection that the plan be in effect in all political subdivisions of that State; (B) provide that the State agency SO designated to administer or supervise the admin- istration of the State plan, or (if there are two State agencies designated under subclause (A) of this clause) to supervise or administer the part of the State plan that does not relate to services for the blind, shall be (i) a State agency primarily concerned with vocational reha- bilitation, or vocational and other rehabilitation, of handicapped individuals, (ii) the State agency administering or supervising the administration of education or vocational education in the State, or (iii) a State agency which includes at least two other major organizational units each of which administers one or more of the major public education, public health, public welfare, or labor programs of the State; (2) provide, except in the case of agencies described in clause (1) (B) (i) (A) that the State agency designated pursuant to paragraph (1) (or each State agency if two are SO designated) shall include a vocational rehabilitation bureau, division, or other organizational unit which (i) is primarily concerned with vocational rehabilita- tion, or vocational and other rehabilitation, of handicapped individuals, and is responsible for the vocational rehabilitation program of such State agency, (ii) has a full-time direc- tor, and (iii) has a staff employed on such rehabilitation work of such organizational unit all or substantially all of whom are employed full time on such work and (B) (i) that such unit shall be located at an organizational level and shall have an organizational status within such State agency comparable to that of other major organ- izational units of such agency, or (ii) in the case of an agency described in clause (1) (B) (ii), either that such unit shall be SO located and have such status, or that the director of such unit shall be the executive officer of such State agency; except that, in the case of a State which has designated only one State agency pursuant to clause (1) of this subsection, such State may, if it SO desires, assign responsibility for the part of the plan under which vocational rehabilitation services are provided for the-blind to one organiza- tional unit of such agency, and assign responsibility for the rest of the plan to another organizational unit of such agency, with the provisions of this clause applying separately to each of such units; (3) provide for financial participation by the State, or if the State SO elects, by the State and local agencies to meet the amount of the non-Federal share; 12 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (4) provide that the plan shall be in effect in all political subdivisions, except that in the case of any activity which, in the judgment of the [Secretary] Commissioner, is likely to assist in promoting the vocational rehabilitation of substantially larger numbers of handi- capped individuals or groups of handicapped individuals the [Secretary] Commissioner may waive compliance with the requirement herein that the plan be in effect in all political sub- divisions of the State to the extent and for such period as may be provided in accordance with regulations prescribed by him, but only if the non-Federal share of the cost of such vocational rehabilitation services is met from funds made available by a local agency (including, to the extent permitted by such regulations, funds contributed to such agency by a private agency, organization, or individual) ; (5) (A) contain the plans, policies, and methods to be followed in carrying out the State plan and in its administration and supervision, including a description of the method to be used to expand and improve services to handicapped individuals with the most severe handi- caps and a description of the method to be used to utilize existing rehabilitation facilities to the maximum extent feasible; and, in the event that vocational rehabilitation services cannot be provided to all eligible handicapped individuals who apply for such services, show (i) the order to be followed in selecting individuals to whom vocational rehabilitation services will be provided and (ii) the outcomes and service goals and the time within which they may be achieved, for the rehabilitation of such individuals, which order of selection for the provision of vocational rehabilitation services shall be determined on the basis of serving first those individuals with the most severe handicaps and shall be consistent with priorities in such order of selection so determined, and outcome and service goals for serving handicapped individuals, established in regulations prescribed by the [Secretary] Commissioner; and (B) provide satisfactory assurances to the [Secretary] Commissioner that the State has studied and considered a broad variety of means for providing services to individuals with the most severe handicaps; (6) (A) provides for such methods of administration, other than methods relating to the establishment and maintenance of personnel standards, as are found by the [Secretary] Commissioner to be necessary for the proper and efficient administration of the plan (includ- ing a requirement that the State agency and facilities in receipt of assistance under this title shall take affirmative action to employ and advance in employment qualified handicapped individuals covered under, and on the same terms and conditions as set forth in, section 503) ; (B) provide satisfactory assurances that facilities used in connection with the delivery of services assisted under the plan will comply with the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968; (7) contain (A) provisions relating to the establishment and maintenance of personnel standards, which are consistent with any State licensure laws and regulations, including pro- visions relating to the tenure, selection, appointment, and qualifications of personnel, [and] (B) provisions relating to the establishment and maintenance of minimum standards govern- ing the facilities and personnel utilized in the provision of vocational rehabilitation services, but the [Secretary] Commissioner shall exercise no authority with respect to the selection, method of selection, tenure of office, or compensation of any individual employed in accordance with such provision, and (C). provisions relating to the establishment and maintenance of minimum standards to assure the availability of personnel, to the maximum extent feasible, trained to communicate in the client's native language or mode of communication; (8) provide, at a minimum, for the provision of the vocational rehabilitation- services specified in clauses (1) through (3) of subsection (a) of section 103, and the remainder of such services specified in such section after full consideration of eligibility for similar benefits under any other program, except that, in the case of the vocational rehabilitation services specified in clauses (4) and (5) of subsection (a) of such section, such consideration shall not be required where it would delay the provision of such services to any individual; (9) provide that (A) an individualized written rehabilitation program meeting the requirements of section 102 will be developed for each handicapped individual eligible for vocational rehabilitation services under this Act, (B) such services will be provided under the plan in accordance with such program, and (C) records of the characteristics of each applicant will be kept, specifying, as to those individuals who apply for services under this title and are determined not to, be eligible therefor, the reasons for such determinations in such detail as required by the [Secretary] Commissioner in order for him to analyze and evaluate annually the reasons for and numbers of such ineligibility determinations as part of his responsibilities [under section 401] under section 13, and that the State agency will at least annually categorize and analyze such reasons and numbers and report this information to the [Secretary] Commissioner and will, not later than 12 months after each such determi- REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 13 nation, review each such ineligibility determination in accordance with the criteria set forth in section 102; (10) provide that the State agency will make such reports in such form, containing such information (including the data described in subclause (C) of clause (9) of this subsection, periodic estimates of the population of handicapped individuals eligible for services under this Act in such State, specifications of the number of such individuals who will be served with funds provided under this Act and the outcomes and service goals to be achieved for such individuals in each priority category specified in accordance with clause (5) of this subsection, and the service costs for each such category), and at such time as the [Secretary] Commissioner may require to carry out his functions under this title, and comply with such provisions as he may find necessary to assure the correctness and verification of such reports; (11) provide for entering into cooperative arrangements with, and the utilization of the services and facilities of, the State agencies administering the State's public assistance pro- grams, other programs for handicapped individuals, veterans programs, manpower pro- grams, and public employment offices, and the Social Security Administration of the Depart- ment of Health, Education, and Welfare, the Veterans' Administration, and other Federal, State, and local public agencies providing services related to the rehabilitation of handicapped individuals (specifically including arrangements for the coordination of services to individ- uals eligible for services under this Act, the Education of the Handicapped Act, and the Voca- tional Education Act) ; (12) (A) provide satisfactory assurances to the [Secretary] Commissioner that, in the provision of vocational rehabilitation services, maximum utilization shall be made of public or other vocational or technical training facilities or other appropriate resources in the community; and (B) provide appropriate means for entering into agreements with the opera- tors of rehabilitation facilities for the provision of services for the rehabilitation of handi- capped individuals; (13) (A) provide that vocational rehabilitation services provided under the State plan shall be available to any civil employee of the United States disabled while in the performance of his duty on the same terms and conditions as apply to other persons, and (B) provide that special consideration will be given to the rehabilitation under this Act of a handicapped individual whose handicapping condition arises from a disability sustained in the line of duty while such individual was performing as a public safety officer and the proximate cause of such disability was a criminal act, apparent criminal act, or hazardous condition resulting directly from the officer's performance of duties in direct connection with the enforcement, execution, and administration of law or fire prevention, firefighting, or related public safety activities; (14) provide that no residence requirement will be imposed which excludes from services under the plan any individual who is present in the State; (15) provide for continuing statewide studies of the needs of handicapped individuals and how these needs may be most effectively met (including the State's needs for rehabilita- tion facilities] (including the capacity and condition of rehabilitation facilities, plans for improving such facilities, and policies for the use thereof by the State agency and review of the efficacy of the criteria employed with respect to ineligibility determinations described in subclause (C) of clause (9) of this subsection) with a view toward the relative need for services to significant segments of the population of handicapped individuals and the need for expansion of services to those individuals with the most severe handicaps; (16) provide for (A) periodic review and reevaluation of the status of handicapped individuals placed in extended employment in rehabilitation facilities (including workshops) to determine the feasibility of their employment, or training for employment, in the competi- tive labor market, and (B) maximum efforts to place such individuals in such employment or training whenever it is determined to be feasible; (17) provide that where such State plan includes provisions for the construction of reha- bilitation facilities- (A) the Federal share of the cost of construction thereof for a fiscal year will not exceed an amount equal to 10 per centum of the State's allotment for such year, (B) the provisions of section 306 shall be applicable to such construction and such provisions shall be deemed to apply to such construction, and 14 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (C) there shall be compliance with regulations the [Secretary] Commissioner shall prescribe designed to assure that no State will reduce its efforts in providing other voca- tional rehabilitation services (other than for the establishment of rehabilitation facili- ties) because its plan includes such provisions for construction; (18) provide satisfactory assurances to the [Secretary] Commissioner that the State agency designated pursuant to clause (1) (or each State agency if two are so designated) and any sole local agency administering the plan in a political subdivision of the State will take into account, in connection with matters of general policy arising in the administration of the plan, the views of individuals and groups thereof who are recipients of vocational reha- bilitation services (or, in appropriate cases, their parents or guardians), working in the field of vocational rehabilitation, and providers of vocational rehabilitation services; [and] (19) provide satisfactory assurances to the [Secretary] Commissioner that the con- tinuing studies required under clause (15) of this subsection, as well as an annual evaluation of the effectiveness of the program in meeting the goals and priorities set forth in the plan, will form the basis for the submission, from time to time as the Secretary may require, of appropriate amendments to the plan[.]; (20) provide satisfactory assurances to the Commissioner that, except as otherwise provided in section 130, the State shall provide vocational rehabilitation services to handi- capped American Indians residing in the State to the same extent as the State provides such services to other significant segments of the population of handicapped individuals residing in the State; (21) provide that the State agency has the authority to enter into contracts with profit- making organizations for the purpose of providing on-the-job training and related programs for handicapped individuals under part B of title VI upon a determination by such agency that such profitmaking organizations are better qualified to provide such rehabilitation serv- ices than nonprofit agencies and organizations; and (22) provide for the establishment and maintenance of information and referral pro- grams (the staff of which shall include, to the maximum extent feasible, interpreters for the deaf) in sufficient numbers to assure that handicapped individuals within the State are afforded accurate vocational rehabilitation information and appropriate referrals to other Federal and State programs and activities which would benefit them. (b) The [Secretary] Commissioner shall approve any plan which he finds fulfills the conditions specified in subsection (a) of this section, and he shall disapprove any plan which does not fulfill such conditions. Prior to such disapproval, the [Secretary] Commissioner shall notify a State of his intention to disapprove its plan, and he shall afford such State reasonable notice and opportunity for hearing. (c) (1) Whenever the [Secretary] Commissioner, after reasonable notice and opportu- nity for hearing to the State agency administering or supervising the administration of the State plan approved under this section, finds that— [(1)](A) the plan has been so changed that it no longer complies with the require- ments of subsection (a) of this section; or (B) in the administration of the plan there is a failure to comply substantially with any provision of such plan, the [Secretary] Commissioner shall notify such State agency that no further payments will be made to the State under this title (or, in his discretion, that such further payments will be reduced, in accordance with regulations the [Secretary] Commissioner shall prescribe, or that further payments will not be made to the State only for the projects under the parts of the State plan affected by such failure), until he is satisfied there is no longer any such failure. Until he is so satisfied, the [Secretary] Commissioner shall make no further payments to such State under this title (or shall limit payments to projects under those parts of the State plan in which there is no such failure). (2) The Commissioner may, in accordance with regulations the Secretary shall prescribe, disburse any funds withheld from a State under paragraph (1) to any public or nonprofit private organization or agency within such State or to any political subdivision of such State submitting a plan meeting the requirements of subsection (a). The Commissioner may not make any payment under this paragraph unless the entity to which such payment is made has provided assurances to the Commissioner that such entity will contribute, for purposes of REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 15 carrying out such plan, the same amount as the State would have been obligated to contribute if the State received such payment. (d) If any State is dissatisfied with the Secretary's action under subsection (b) or (c) of this section, such State may appeal to the United States district court for the district where the capitol of such State is located and judicial review of such action shall be on the record in accordance with the provisions of chapter 7 of title 5, United States Code.] (d) (1) Any State which is dissatisfied with a final determination of the Commissioner under subsection (b) or (c) may file a petition for judicial review of such determination in the United States Court of Appeals for the circuit in which the State is located. Such a petition may be filed only within the thirty-day period beginning on the date notice of such final determination was received by the State. The clerk of the court shall transmit a copy of the petition to the Commissioner or to any officer designated by him for that purpose. In accord- ance with section 2112 of title 28, United States Code, the Commissioner shall file with the court a record of the proceeding on which he based the determination being appealed by the State. Until a record is so filed, the Commissioner may modify or set aside any determination made under such proceedings. (2) If, in an action under this subsection to review a final determination of the Com- missioner under subsection (b) or (c), the petitioner or the Commissioner applies to the court for leave to have additional oral submissions or written presentations made respecting such determination, the court may, for good cause shown, order the Commissioner to provide within thirty days an additional opportunity to make such submissions and presentations. Within such period, the Commissioner may revise any findings of fact, modify or set aside the determination being reviewed, or make a new determination by reason of the additional submissions and presentations, and shall file such modified or new determination, and any revised findings of fact, with the return of such submissions and presentations. The court shall thereafter review such new or modified determination. (3) (A) Upon the filing of a petition under paragraph (1) for judicial review of a determination, the court shall have jurisdiction (i) to grant appropriate relief as provided in chapter 7 of title 5, United States Code, except for interim relief with respect to a deter- mination under subsection (c), and (ii) except as otherwise provided in subparagraph (B), to review such determination in accordance with chapter 7 of title 5, United States Code. (B) Section 706 of title 5, United States Code, shall apply to the review of any determina. tion under this subsection, except that the standard for review prescribed by paragraph (2) (E) of such section 706 shall not apply and the court shall hold unlawful and set aside such determination if the court finds that the determination is not supported by substantial evi- dence in the record of the proceeding submitted pursuant to paragraph (1), as supplemented by any additional submissions and presentations filed under paragraph (2). INDIVIDUALIZED WRITTEN REHABILITATION PROGRAM SEC. 102. (a) The [Secretary] Commissioner shall insure that the individualized written rehabilitation program, or the specification of reasons for a determination of ineligibility prior to initiation of such program based on preliminary diagnosis, required by section 721 (a) (9) of this title in the case of each handicapped individual is developed jointly by the vocational rehabilitation counselor or coordinator and the handicapped individual (or, in appropriate cases, his parents or guardians), and that such program meets the requirements set forth in subsection (b) of this section. Such written program shall set forth the terms and conditions, as well as the rights and remedies, under which goods and services will be provided to the individual, and, as appropriate, such specification of reasons for such an ineligibility deter- mination shall set forth the rights and remedies, including recourse to the process set forth in subsection (b) (5) of this section, available to the individual in question. (b) Each individualized written rehabilitation program shall be reviewed on an annual basis at which time each such individual (or, in appropriate cases. his parents or guardians) will be afforded an opportunity to review such program and jointly redevelop and agree to its terms. Such program shall include, but not be limited to (1) a statement of long-range reha- bilitation goals for the individual and intermediate rehabilitation objectives related to the attainment of such goals, (2) a statement of the specific vocational rehabilitation services to be provided, (3) the projected date for the initiation and the anticipated duration of each such service, (4) objective criteria and an evaluation procedure and schedule for determining whether such objectives and goals are being achieved, and (5) where appropriate, a detailed explanation of the availability of a client assistance project established in such area pursuant to section 112. 16 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (c) The [Secretary] Commissioner shall also insure that (1) in making any determina- tion of ineligibility referred to in subsection (a) of this section, or in developing and carrying out the individualized written rehabilitation program required by section 101 in the case of each handicapped individual, primary emphasis is placed upon the determination and achieve- ment of a vocational goal for such individual, (2) a decision that such an individual is not capable of achieving such a goal and thus not eligible for vocational rehabilitation services provided with assistance under this part, is made only in full consultation with such individual (or, in appropriate cases, his parents or guardians), and only upon the certification, as an amendment to such written program, or as a part of the specification of reasons for an ineligibility determination, as appropriate, that the preliminary diagnosis or evaluation of rehabilitation potential, as appropriate, has demonstrated beyond any reasonable doubt that such individual is not then capable of achieving such a goal, and (3) any such decision, as an amendment to such written program, shall be reviewed at least annually in accordance with the procedure and criteria established in this section. (d) (1) The Director of any designated State unit shall establish procedures for the review of determinations made by the rehabilitation counselor or coordinator under this section, upon the request of a handicapped individual (or, in appropriate cases, his parents or guardians). Such procedures shall include a requirement that the final decision concerning the review of any such determination be made in writing by the Director. The Director may not delegate his responsibility to make any such final decision to any other officer or employee of the designated State's unit. (2) Any handicapped individual (or, in appropriate cases, his parent or guardian) who is not satisfied with the final decision made under paragraph (1) by the Director of the desig- nated State unit may request the Secretary to review such decision. Upon such request the Secretary shall conduct such a review and shall make recommendations to the Director as to the appropriate disposition of the matter. The Secretary may not delegate his responsibilities under this paragraph to any officer of the Department of Health, Education, and Welfare who is employed at a position below that of an Assistant Secretary. SCOPE OF VOCATIONAL REHABILITATION SERVICES SEC. 103. (a) Vocational rehabilitation services provided under this Act are any goods or services necessary to render a handicapped individual employable, including, but not limited to, the following: (1) evaluation of rehabilitation potential, including diagnostic and related services, incidental to the determination of eligibility for, and the nature and scope of, services to be provided, including, where appropriate, examination by a physician skilled in the diagnosis and treatment of mental or emotional disorders, or by a licensed psychologist in accordance with State laws and regulations, or both; (2) counseling, guidance, referral, and placement services for handicapped individ- uals, including followup, follow-along, and other postemployment services necessary to assist such individuals to maintain their employment and services designed to help handicapped individuals secure needed services from other agencies, where such services are not available under this Act; (3) vocational and other training services for handicapped individuals, which shall include personal and vocational adjustment, books, and other training materials, and services to the families of such individuals as are necessary to the adjustment or reha- bilitation of such individuals: Provided, That no training services in institutions of higher education shall be paid for with funds under this title unless maximum efforts have been made to secure grant assistance, in whole or in part, from other sources to pay for such training; (4) physical and mental restoration services, including, but not limited to, (A) corrective surgery or therapeutic treatment necessary to correct or substantially modify a physical or mental condition which is stable or slowly progressive and constitutes a substantial handicap to employment, but is of such nature that such correction or modifi- cation may reasonably be expected to eliminate or substantially reduce the handicap within a reasonable length of time, (B) necessary hospitalization in connection with surgery or treatment, (C) prosthetic and orthotic devices, (D) eyeglasses and visual services as prescribed by a physician skilled in the diseases of the eye or by an optome- trist, whichever the individual may select, (E) special services (including transplantation and dialysis), artifical kidneys, and supplies necessary for the treatment of individuals suffering from end-stage renal disease, and (F) diagnosis and treatment for mental REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 17 and emotional disorders by a physician or licensed psychologist in accordance with State licensure laws; (5) maintenance, not exceeding the estimated cost of subsistence, during rehabilitation; (6) interpreter services for deaf individuals, and reader services for those individ- uals determined to be blind after an examination by a physician skilled in the disease of the or by an optometrist, whichever the individual may select; (7) recruitment and training services for handicapped individuals to provide them with new employment opportunities in the fields of rehabilitation, health, welfare, public safety, and law enforcement, and other appropriate service employment; (8) rehabilitation teaching services and orientation and mobility services for the blind; (9) occupational licenses, tools, equipment, and initial stocks and supplies; (10) transportation in connection with the rendering of any vocational rehabilita- tion service; and (11) telecommunications, sensory, and other technological aids and devices. (b) Vocational rehabilitation services, when provided for the benefit of groups of indi- viduals, may also include the following: (1) in the case of any type of small business operated by individuals with the most severe handicaps the operation of which can be improved by management services and supervision provided by the State agency, the provision of such services and supervision, along or together with the acquisition by the State agency of vending facilities or other equipment and initial stocks and supplies; [and] (2) the construction or establishment of public or nonprofit rehabilitation facilities and the provision of other facilities and services (including services offered at rehabilita- tion facilities) which promise to contribute substantially to the rehabilitation of a group of individuals but which are not related directly to the individualized rehabilitation writ- ten program of any one handicapped individual[. ; and (3) the use of existing telecommunications systems (including telephone, television, satellite, radio, and other similar systems) which have the potential for substantially improving service delivery methods, and the development of appropriate programing to meet the particular needs of handicapped individuals; and (4) the use of services providing recorded material for the blind and captioned films or video cassettes for the deaf. NON-FEDERAL SHARE FOR CONSTRUCTION SEC. 104. For the purpose of determining the amount of payments to States for carrying out part B of this title, the non-Federal share, subject to such limitations and conditions as may be prescribed in regulations by the [Secretary] Commissioner, shall include contributions of funds made by any private agency, organization, or individual to a State or local agency to assist in meeting the costs of construction or establishment of a public or nonprofit reha- bilitation facility, which would be regarded as State or local funds except for the condition. imposed by the contributor, limiting use of such funds to construction or establishment of such facility. PART B-BASIC VOCATIONAL REHABILITATION SERVICES STATE ALLOTMENTS [SEC. 110. (a) For each fiscal year, each State shall be entitled to an allotment of an amount bearing the same ratio to the amount authorized to be appropriated under subsection (b) (1) of section 100 for allotment under this section as the product of (1). the population of the State and (2) the square of its allotment percentage bears to the sum of the corresponding products for all the States. The allotment to any State (other than Guam, American Samoa, the Virgin Islands, and the Trust Territory of the Pacific Islands) under the first sentence of this subsection for any fiscal year which is less than one-quarter of 1 per centum of the amount appropriated under subsection (b) (1) of section 100, or $2,000,000, whichever is greater, shall be increased to that amount, the total of the increases thereby required being derived 18 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 by proportionately reducing the allotments to each of the remaining such States under the first sentence of this subsection, but with such adjustments as may be necessary to prevent the allotment of any such remaining States from being thereby reduced to less than that amount.] Sec. 110. (a) (1) For each fiscal year beginning before October 1, 1978, each State shall be entitled to an allotment of an amount bearing the same ratio to the amount authorized to be appropriated under section 100 (b) (1) for allotment under this section as the product of (A) the population of the State; and (B) the square of its allotment percentage, bears to the sum of the corresponding products for all the States. (2) (A) For each fiscal year beginning on or after October 1, 1978, each State shall be entitled to an allotment in an amount equal to the amount such State received under para- graph (1) for the fiscal year ending September 30, 1978, and an additional amount determined pursuant to subparagraph (B) of this paragraph. (B) For each fiscal year beginning on or af iter October 1, 1978, each State shall be entitled to an allotment, from any amount authorized to be appropriated for such fiscal year under section 100 (b) (1) for allotment under this section in excess of the amount appropriated under section 100 (b) (1) for the fiscal year ending September 30, 1978, in an amount equal to the sums of- (i) an amount bearing the same ratio to 50 percent of such excess amount as the product of the population of the State and the square of its allotment percentage bears to the sum of the corresponding products for all the States; and (ii) an amount bearing the same ratio to 50 percent of such excess amount as the product of the population of the State and its allotment percentage bears to the sum of the corresponding products for all the States. (3) The sum of the payment to any State (other than Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands) under this subsection for any fiscal year which is less than one-third of 1 percent of the amount appro- priated under section 100 (b) (1), or $3,000,000, whichever is greater, shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the allotment to each of the remaining such States under this subsection, but with such adjustments as may be necessary to prevent the sum of the allotments made under this subsection to any such remaining State from being thereby reduced to less than that amount. (b) (1) If the payment to a State under section 111 (a) for a fiscal year is less than the total payments such State received under section 2 of the Vocational Rehabilitation Act for the fiscal year ending June 30, 1973, such State shall be entitled to an additional payment (subject to the same terms and conditions applicable to other payments under this part) equal to the difference between such payment under section 111 (a) and the amount so received by it. [Payments attributable to the additional payment to a State under this subsection shall be made only from appropriations specifically made to carry out this subsection, and such additional appropriations are hereby authorized.] (2) If a State receives as its Federal share under section 111 (a) for any fiscal year, as a result of the maintenance of effort provisions of such section, less than 80 percent of the expenditure of such State for vocational rehabilitation services under the plan for such State approved under section 101 (including any amount expended by such State for the adminis- tration of the State plan but excluding any amount expended by such State from non-Federal sources for construction under such plan), such State shall be entitled to an additional pay- ment for such fiscal year, subject to the same terms and conditions applicable to other pay- ments under this part, equal to the difference between such payment under section 111 (a) and an amount equal to 80 percent of such expenditure for vocational rehabilitation services. (3) Any payment attributable to the additional payment to a State under this subsection shall be made only from appropriations specifically made to carry out this subsection, and such additional appropriations are hereby authorized. (c) Whenever the [Secretary] Commissioner determines, after reasonable opportunity for the submission to him of comments by the State agency administering or supervising the program established under this title, that any payment of an allotment to a State under section 111 (a) for any fiscal year will not be utilized by such State in carrying out the purposes of this title, he shall make such amount available for carrying out the purposes of this title to one or more other States to the extent he determines such other State will be able to use such additional amount during such year for carrying out such purposes. Any amount made avail- able to-a State for any fiscal year pursuant to the preceding sentence shall, for the purposes REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 19 of this part, be regarded as an increase of such State's allotment (as determined under the preceding provisions of this section) for such year. PAYMENTS TO STATES SEC. 111. (a) From each State's allotment under this part for any fiscal year (including any additional payment to it under section 110 (b), the [Secretary] Commissioner shall pay to such State an amount equal to the Federal share of the cost of vocational rehabilitation services under the plan for such State approved under section 101, including expenditures for the administration of the State plan, except that the total of such payments to such State for such fiscal year may not exceed its allotment under subsection (a) (and its additional payment under subsection (b), if any) of section 110 for such year and such payments shall not be made in an amount which would result in a violation of the provisions of the State plan required by clause (17) of section (a), and except that the amount otherwise payable to such State for such year under this section shall be reduced by the amount (if any) by which expenditures from non-Federal sources during such year under this title are less than expendi- tures under the State plan for the fiscal year ending June 30, 1972, under the Vocational Rehabilitation Act. (b) The method of computing and paying amounts pursuant to subsection (a) shall be as follows: (1) The [Secretary] Commissioner shall, prior to the beginning of each calendar quarter or other period prescribed by him, estimate the amount to be paid to each State under the provisions of such subsection for such period, such estimate to be based on such records of the State and information furnished by it, and such other investigation, as the [Secretary] Commissioner may find necessary. (2) The [Secretary] Commissioner shall pay, from the allotment available therefor, the amount so estimated by him for such period, reduced or increased, as the case may be, by any sum (not previously adjusted under this paragraph) by which he finds that his esti- mate of the amount to be paid the State for any prior period under such subsection was greater or less than the amount which should have been paid to the State for such prior period under such subsection. Such payment shall be made prior to audit or settlement by the Gen- eral Accounting Office, shall be made through the disbursing facilities of the Treasury Depart- ment, and shall be made in such installments as the [Secretary] Commissioner may determine. CLIENT ASSISTANCE SEC. 112. (a) From funds appropriated under section [304] 310 for special projects and demonstrations in excess of $11,860,000 the [Secretary] Commissioner shall set aside [up to $1,500,000, but no less than $500,000 for the fiscal year ending June 30, 1974, up to $2,500,000 but no less than $1,000,000 for the fiscal year ending June 30, 1975, and up to $2,500,000 but no less than $1,000,000 for the fiscal year ending June 30, 1976, up to $2,500,000 but no less than $1,000,000 for the fiscal year ending September 30, 1977, and up to $2,500,000 but no less than $1,000,000 for the fiscal year ending September 30, 1978, to establish in no less than 7 nor more than 20 geographically dispersed regions] no less than $3,500,000 for the fiscal year ending September 30, 1979, and for each of the three succeeding fiscal years to establish in geographically dispersed regions client assistance pilot projects (hereinafter in this section referred to as "projects"). to provide counselors to inform and advise all clients and client applicants in the project area of all available benefits under this chapter and, upon request of such client or client applicant, to assist such clients or applicants in their relationships with projects, programs, and facilities providing services to them under this chapter, includ- ing assistance in pursuing legal, administrative, or other appropriate remedies to insure the protection of the rights of such, individuals under this Act. In the event that funds SO appro- priated under section [304] 310 do not exceed $11,860,000 in any fiscal year, the [Secretary] Commissioner is authorized to utilize such funds to carry out this section. (b) The [Secretary] Commissioner shall prescribe regulations which shall include the following requirements: (1) No employees of such projects shall be presently serving as staff or consultants or receiving bénefits of any kind directly or indirectly from any rehabilitation project, program, or facility receiving assistance under this Act in the project area. (2) Each project shall be afforded reasonable access to policymaking and administrative personnel in State and local rehabilitation programs, projects, and facilities. 20 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (3) The project shall submit an annual report, through the State agency designated pursuant to section 101, to the [Secretary] Commissioner on the operation of the project during the previous year, including a summary of the work done and a uniform statistical tabulation of all cases handled by such project. A copy of each such report shall be submitted to the appropriate committees of the Congress by the [Secretary] Commissioner together with a summary of such reports and his evaluation of such projects, including appropriate recommendations. (4) Each State agency may enter into cooperative arrangements with institutions of higher education to secure the services in such projects of graduate students who are under- going clinical training activities in related fields. No compensation with funds appropriated under this Act shall be provided to such students. (5) Reasonable assurance shall be given by the appropriate State agency that all clients or client applicants within the project area shall have the opportunity to receive adequate service under the project and shall not be pressured against or otherwise discouraged from availing themselves of the services available under such project. (6) The project shall be funded, administered, and operated directly by and with the concurrence of the State agency designated pursuant to section 101. PART C-INNOVATION AND EXPANSION GRANTS STATE ALLOTMENTS SEC. 120. (a) (1) From the sums available pursuant to section 100 (b) (2) for any fiscal year for grants to States to assist them in meeting the costs described in section 121, each State shall be entitled to an allotment of an amount bearing the same ratio to such sums as the population of the State bears to the population of all the States. The allotment to any State under the preceding sentence for any fiscal year which is less than $50,000 shall be increased to that amount, and for the fiscal year ending June 30, 1974, no State shall receive less than the amount necessary to cover up to 90 per centum of the cost of continuing projects assisted under section 4 (a) (2) (A) of the Vocational Rehabilitation Act, except that no such project may receive financial assistance under both the Vocational Rehabilitation Act and this Act for a total period of time in excess of [three] five years. The total of the increase required by the preceding sentence shall be derived by proportionately reducing the allot- ments to each of the remaining States under the first sentence of this section, but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from thereby being reduced to less than $50,000. (b) Whenever the [Secretary] Commissioner determines that any amount of an allot- ment to a State for any fiscal year will not be utilized by such State in carrying out the pur- poses of this section, he shall make such amount available for carrying out the purposes of this section to one or more other States which he determines will be able to use additional amounts during such year for carrying out such purposes. Any amount made available to a State for any fiscal year pursuant to the preceding sentence shall, for purposes of this part, be regarded as an increase of such State's allotment (as determined under the preceding provisions of this section) for such year. PAYMENTS TO STATES SEC. 121. (a) From each State's allotment under this part for any fiscal year, the [Secre- tary] Commissioner shall pay to such State or, at the option of the State agency designated pursuant to section 101 (a) (1), to a public or nonprofit organization or agency, a portion of the cost of planning, preparing for, and initiating special programs under the State plan approved pursuant to section 101 to expand vocational rehabilitation services, including pro- grams to initiate or expand such services to individuals with the most severe handicaps, or of special programs under such State plan to initiate or expand services to classes of handi- capped individuals who have unusual and difficult problems in connection with their reha- bilitation, particularly handicapped individuals who are poor, and responsibility for whose treatment, education, and rehabilitation is shared by the State agency designated in section 101 with other agencies. Payments may also be made under this section for the costs of the construction of facilities to be used in providing services under such State plan if provision for such construction is included in such State plan. The [Secretary] Commissioner may require that any portion of a State's allotment under this section, but not more than 50 per centum of such allotment, may be expended in connection with only such projects as have first been approved by the [Secretary] Commissioner. Any grant of funds under this section which will be used for direct services to handicapped individuals or for establishing or main- REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 21 taining facilities which will render direct services to such individuals must have the prior approval of the appropriate State agency designated pursuant to section 101. (b) Payments under this section with respect to any project may be made for a period of not to exceed three years beginning with the commencement of the project as approved, and sums appropriated for grants under this section shall remain available for such grants through the fiscal year ending [September 30, 1979.] September 30, 1982. Payments with respect to any project may not exceed 90 per centum of the cost of such project. The non- Federal share of the cost of a project may be in cash or in kind and may include funds spent for project purposes by a cooperating public or nonprofit agency provided that it is not included as a cost in any other federally financed program. (c) Payments under this section may be made in advance or by way of reimbursement for services performed and purchases made, as may be determined by the [Secretary] Com- missioner and shall be made on such conditions as the [Secretary] Commissioner finds nec- essary to carry out the purposes of this section. [PART DCOMPREHENSIVE SERVICE NEEDS [SPECIAL STUDY [SEC. 130. (a) The Secretary shall conduct a comprehensive study, including research and demonstration projects of the feasibility of methods designed (1) to prepare individuals with the most severe handicaps for entry into programs under this Act who would not other- wise be eligible to enter such programs due to the severity of their handicap, and (2) to assist individuals with the most severe handicaps who, due to the severity of their handicaps or other factors such as their age, cannot reasonably be expected to be rehabilitated for employment but for whom a program of rehabilitation could improve their ability to live independently or function normally within their family and community. Such study shall encompass the extent to which other programs administered by the Secretary do or might contribute to the objectives set forth in clauses (1) and (2) of the preceding sentence and the methods by which all such programs can be coordinated at Federal, State, and local levels with those carried out under this Act to the end that individuals with the most severe handi- caps are assured of receiving the kinds of assistance necessary for them to achieve such objectives. [(b) The Secretary shall report the findings of the study, research and demonstrations directed by subsection (a) of this section to the Congress and to the President together with such recommendations for legislative or other action as he may find desirable, not later than June 30, 1975.] PART D-AMERICAN INDIAN VOCATIONAL REHABILITATION SERVICES VOCATIONAL REHABILITATION SERVICES GRANTS SEC. 130. (a) The Commissioner, in accordance with the provisions of this part, may make grants to the governing bodies of Indian tribes located on Federal and State reserva- tions to pay 90 percent of the costs of vocational rehabilitation services for handicapped American Indians residing on such reservations. (b) (1) No grant may be made under this part for any fiscal year unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application unless the application- (A) is made at such time, in such manner, and contains such information as the Com- missioner may require; (B) contains assurances that the rehabilitation services provided-unde this part to handicapped American Indians residing on a reservation in a State shall be, to the maxi- mum extent feasible, comparable to rehabilitation services provided under this title to other handicapped individuals residing in the State; and (C) contains assurances that the application was developed in consultation with the designated State unit of the State. (2) The provisions of sections 5, 6. 7 and 102 (a) of the Indian Self-Determination and Education Assistance Act shall be applicable to any application submitted under this part. For purposes of this paragraph, any reference in any such provision to the Secretary of 22 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 Health, L'ducation, and Welfare or to the Secretary of the Interior shall be considered to be a reference to the Commissioner. (3) Any application approved under this part shall be effective for not less than twelve months except as determined otherwise by the Commissioner pursuant to prescribed regula- tions. The State shall continue to provide vocational: rehabilitation services under its State plan to American Indians residing on a reservation whenever such State includes any such American Indians in its State population under section 110 (a) (1). (d) For the purpose of computing the allotment of any State under section 110(a), the number of American Indians residing on a reservation to be served by a grant under this part shall be subtracted from the population used for such State in section 110 (a) (1) as follows: (1) 33 percent of such American Indians in the first fiscal year during which such Indians are served by grants under this part; (2) 66 percent of such American Indians in the second fiscal year during which such Indians are served by grants under this part; and (3) 100 percent of such American Indians in the third fiscal year during which such Indians are served by grants under this part. (e) The term "reservation" includes Indian reservations, public domain Indian allot- ments, former Indian reservations in Oklahoma, and land held by incorporated Native groups, regional corporations, and village corporations under the provisions of the Alaska Native Claims Settlement Act. EVALUATION SEC. 131. Not less than thirty months after the date of enactment of the Rehabilitation, Comprehensive Services and Developmental Disabilities Amendments of 1978, the Secretary shall submit to the Congress an evaluation of the programs conducted under this part. Such evaluation shall be conducted by persons other than persons immediately responsible for ad- ministration of such programs. Such evaluation shall include- (1) an examination of the comparability of vocational rehabilitation services pro- vided under this part to services provided to other handicapped individuals under sec- tion 101; and (2) An assessment of the extent to which governing bodies of Indian tribes receiving grants under this part have made services under such grants available to all handicapped American Indians residing on reservations served by such grants." TITLE II-RESEARCH AND TRAINING DECLARATION OF PURPOSE [SEC. 200. The purpose of this title is to authorize Federal assistance to State and public or nonprofit agencies and organizations to- (a) plan and conduct research, demonstrations, and related activities in the reha- bilitation of handicapped individuals, and (b) plan and conduct courses of training and related activities designed to provide increased numbers of trained rehabilitation personnel, to increase the levels of skills of such personnel, and to develop improved methods of providing such training.] SEC. 200. The purpose of this title is to- (1) provide for a comprehensive and coordinated approach to the administration and conduct of research, demonstration projects, and related activities for the rehabilitation of handicapped individuals, including programs designed to train persons who provide rehabilitation services and persons who conduct research, by authorizing Federal assist- ance in accordance with a plan for rehabilitation research developed under this title; (2) facilitate the distribution of information concerning developments. in rehabilita- tion procedures, methods, and devices to rehabilitation essionals and to handicapped individuals to assist such individuals to live more independently; (3) improve the distribution of technological devices and equipment for handicapped individuals by providing financial support for the development and distribution of such devices and equipment; and REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 23 (4) increase the scientific and technological information presently available in the field of rehabilitation. AUTHORIZATION OF APPROPRIATIONS SEC. 201. [(a) In order to make grants and contracts to carry out the purposes of this subchapter, there is authorized to be appropriated: [(1) For the purpose of carrying out section 762 of this title, $25,000,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $32,000,000 for the fiscal year ending June 30, 1976, and $30,000,000 for the fiscal years ending September 30, 1977, and Septem- ber 30, 1978; and there is further authorized to be appropriated for such purpose for each such year such additional sums as the Congress may determine to be necessary. Of the sums appro- priated under this paragraph, 20 per centum and 25 per centum of the amounts appropriated in the first and second such fiscal years, respectively and 25 per centum of the amounts appro- priated in each succeeding fiscal year shall be available only for the purpose of carrying out activities under section 762(b) (2) of this title. [(2) For the purpose of carrying out section 763 of this title, $27,700,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $32,000,000 for the fiscal year ending June 30, 1976, $25,000,000 for the fiscal-year ending September 30, 1977, and $30,000,000 for the fiscal year ending September 30, 1978; and there is further authorized to be appro- priated for such purpose for each such year such additional sums as the Congress may deter- mine to be necessary. (b) Funds appropriated under this subchapter shall remain available until expended. (a) There are authorized to be appropriated- (1) for the purpose of providing for the expenses of the National Institute of Handi- capped Research under section 202, other than expenses to carry out section 204, such sums as may be necessary for the fiscal year ending September 30, 1979, and for each of the three succeeding fiscal years; and (2) for the purpose of carrying out section 204, $50,000,000 for the fiscal year ending September 30, 1979, $75,000,000 for the fiscal year ending September 30, 1980, $90,000,- 000 for the fiscal year ending September 30, 1981, and $100,000,000 for the fiscal year ending September 30, 1982. National Institute of Handicapped Research SEC. 202. (a) In order to promote and coordinate research with respect to handicapped individuals and to more ffectively carry out the programs under section 204, there is estab- lished within the Department of Health, Education, and Welfare a National Institute of Handicapped Research (hereinafter in this title referred to as the 'Institute'), which shall be headed by a Director (hereinaf in this title referred to as the 'Director'). In the per- formance of his functions, the Director shall be directly responsible to the Secretary or to the same Under Secretary or Assistant Secretary of the Department of Health, Education, and Welfare to whom the Commissioner is responsible under section 3(a) of this Act. (b) The Director, through the Institute, shall be responsible for- (1) administering the programs described in section 204; (2) disseminating information acquired through research funded by the Institute to other Federal, State, and local public agencies and to private organizations engaged in research relating to rehabilitation or providing rehabilitation services; (3) coordinating, through the Interagency Committee established by section 203 of this Act, all Federal programs and policies relating to research in rehabilitation; (4) disseminating educational materials to primary and secondary schools, institu- tions of higher education, and to public and private entities concerning how the quality of life of handicapped individuals may be improved. (5) conducting an education program to inform the public about ways of providing for the rehabilitation of handicapped individuals, including information relating to family care and self care; 24 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (6) conducting conferences, seminars, and workshops (including in-service training programs) concerning research and engineering advances in rehabilitation pertinent to the problems of handicapped individuals; (7) taking whatever action is necessary to keep the Congress fully and currently informed with respect to the implementation and conduct of programs and activities carried out under this title; and (8) producing, in conjunction with the Department of Labor, the National Center for Health Statistics, the Bureau of the Census, the Social Security Administration, and other Federal departments and agencies, as may be appropriate, statistical reports and studies on the employment, health, income, and other demographic characteristics of handicapped individuals and disseminating such reports and studies to rehabilitation professionals and others to assist in the planning and evaluation of vocational and other rehabilitation services for the handicapped. (c) (1) The Director of the Institute shall be appointed by the President, by and with the advice and consent of the Senate. The Director shall be compensated at the rate payable for level V of the Executive Schedule under section 5316 of title 5, United States Code. In carrying out any of his functions under this section, the Director shall be guided by general policies of the National Council on the Handicapped established in title IV. The Director shall not delegate any of his functions to any officer who is not directly responsible to him. (2) There shall be a Deputy Director of the Institute (hereinafte in this section referred to as the "Deputy Director") who shall be appointed by the Secretary. The Deputy Director shall be compensated at the rate provided for grade GS-17 of the General Schedule under section 5332 of title 5, United States Code, and shall act for the Director during the absence or disability of the Director, exercising such powers as the Director may prescribe. In the case of any vacancy in the office of the Director, the Deputy Director shall serve as Director until a Director is appointed under paragraph (1). The position created by this paragraph shall be in addition to the number of positions placed in grade GS-17 of the General Schedule under section 5108 of title 5, United States Code. (3) The Director, subject to the approval of the President, may appoint, for terms not to exceed three years, without regard to the provisions of title 5, United States Code, govern- ing appointment in the competitive service, and may compensate, without regard to the pro- visions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, such technical and professional employees of the Institute as the Director deems necessary to accomplish the functions of the Institute and also appoint and compensate without regard to such provisions in a number not to exceed one-fifth of the number of full-time, regular technical and fessional employees of the Institute. (4) The Director may obtain the services of consultants, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service. (d) The Director, pursuant to regulations which the Secretary shall prescribe, may establish and maintain fellowships with such stipends and allowances, including travel and subsistence expenses provided for under title 5, United States Code, as the Director considers necessary to procure the assistance of highly qualified research fellows from the United States and foreign countries. (e) The Director shall, pursuant to regulations which the Secretary shall prescribe, provide for scientific review of all research grants and programs over which he has authority by utilizing, to the maximum extent possible, appropriate peer review groups established within the Institute and composed of non-Federal scientists and other experts in the reha- bilitation field. (f) Not less than 90 percent of the funds appropriated under paragraph (2) of section 201 (a) to carry out section 204 shall be expended by the Director to carry out such section through grants or contracts with qualified public or private agencies and individuals. (g) The Director shall develop and submit to appropriate committees of the Congress within eighteen months after the effective date of this section a long-range plan for rehabilita- tion research which shall— (1) identify any research which should be conducted respecting the problems en- tered by handicapped individuals in their daily activities, especially problems related to employment; (2) determine the funding priorities for research activities under this section and explain the basis for such priorities, including a detailed description of any new types of research recommended under this paragraph for funding; and REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 25 (3) specify appropriate goals and timetables for activities to be conducted under this section. The plan required by this subsection shall be developed by the Director in consultation with the Commissioner, the National Council on the Handicapped established under title IV, the Commissioner of Education, officials responsible for the administration of the Developmental Disabilities and Bill of Rights Act, the Interagency Committee established by section 203, and any other persons or entities the Director considers appropriate. Such plan shall be reviewed at least once every three years and may be revised at any time by the Director to the extent he considers necessary. (h) In order to promote cooperation among Federal departments and agencies conducting research programs, the Director shall consult with the administrators of such programs, and with the Interagency Committee established, by section 203, regarding the design of research projects conducted by such entities and the results and applications of such research. (i) (1) The Director shall take whatever actions he considers appropriate to provide for a comprehensive and coordinated research program under this title. In providing such a program, the Director may undertake joint activities with other Federal entities engaged in research and with appropriate private entities. Any Federal entity proposing to establish any research project related to the purposes of this Act shall consult, through the Interagency Committee established by section 203, with the Director in his role of Chairman of such Committee and provide the Director with sufficient opportunity to comment on the project. (2) Any person responsible for administering any program of the National Institutes of Health, the Veterans' Administration, the National Science Foundation, the National Aeronautics and Space Administration, the Bureau of Education for the Handicapped, or of any other Federal entity, shall, through the Interagency Committee established by section 203, consult and cooperate with the Director in carrying out such program if the program is related to the purposes of this section. INTERAGENCY COMMITTEE SEC. 203. (a) (1) In order to promote coordination and cooperation among Federal depart- ments and agencies conducting rehabilitation research programs, there is established within the Federal Government an Interagency Committee on Handicapped Research (here- inafter in this section referred to as the 'Committee'), chaired by the Director and comprised of such members as the President may designate, including the following (or their designees) : the Director, the Commissioner, the Commissioner of Education, the Administrator of Vet- erans' Affairs, the Director of the National Institutes of Health, the Administrator of the National Aeronautics and Space Administration, the Secretary of Transportation, and the Director of the National Science Foundation. (2) The Committee shall meet not less than four times each year. (b) The Committee shall identify, assess, and seek to coordinate all Federal programs, activities, and projects, and plans for such programs, activities, and projects with respect to the conduct of research related to rehabilitation of handicapped individuals. (c) The Committee, not later than eighteen months after the date of enactment of this section, and annually thereafter, shall submit to the President and to the appropriate com- mittees of the Congress a report making such recommendations as the Committee deems appropriate with respect to coordination of policy and development of objectives and priori- ties for all Federal programs relating to the conduct of research related to rehabilitation of handicapped individuals. RESEARCH [SEC. 202.] Sec. 204. (a) [The Secretary, through the Commissioner, and in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to] The Director may make grants to and contracts with States and [public or nonprofit] public or private agencies and organizations, including institutions of higher edu- cation, to pay part of the cost of projects for the purpose of planning and conducting research, demonstrations, and related activities which bear directly on the development of methods, procedures, and devices to assist in the [provision of vocational rehabilitation services] provision of vocational and other rehabilitation services to handicapped individuals, especially those with the most severe handicaps, under this Act. Such projects may include medical and other scientific, technical, methodological, and other investigations into the nature of disability, methods of analyzing it, and [restorative techniques], including basic research 26 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 where related to rehabilitation techniques or services; studies and analyses of industrial, vocational, social, psychiatric, psychological, economic, and other factors affecting rehabilita- tion of handicapped individuals; special problems of homebound and institutionalized individ- uals; studies, analyses, and demonstrations of architectural and engineering design adapted to meet the special needs of handicapped individuals; and related activities which hold promise of increasing knowledge and improving methods in the rehabilitation of handicapped individuals and individuals with the most severe handicaps. (b) In addition to carrying out projects under subsection (a) of this section, [the Secre- tary, through the Commissioner, and in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to] the Director may make grants to pay part or all of the cost of the following specialized research activities: [(1) Establishment and support of Rehabilitation Research and Training Centers to be operated in collaboration with institutions of higher education for the purpose of provid- ing coordinated and advanced programs of research in rehabilitation and training of reha- bilitation research personnel, including, but not limited to, graduate training. Grants may include funds for services rendered by such a center to handicapped individuals in connection with such research and training activities.] (1) Establishment and support of Rehabilitation Research and Training Centers to be operated in collaboration with institutions of higher education for the purpose of (A) provid- ing training (including graduate training) to assist individuals to more effectively provide rehabilitation services, (B) providing coordinated and advanced programs of research in rehabilitation, and (C) providing training (including graduate training) for rehabilitation research and other rehabilitation personnel. The research to be carried out at each Center shall be determined on the basis of the particular needs of handicapped individuals in the geo- graphic area served by the Center, and may include basic or applied medical rehabilitation research, research regarding the psychological and social aspects of rehabilitation, and research related to vocational rehabilitation. The Centers shall be encouraged to develop practical applications for the findings of their research. Grants may include funds for services rendered by such a center to handicapped individuals in connection with such research and training activities. (2) Establishment and support of Rehabilitation Engineering Research Centers to (A) develop innovative methods of applying advanced medical technology, scientific achievement, and psychiatric psychological and social knowledge to solve rehabilitation problems through planning and conducting research, including cooperative research and public or private agencies and organizations, designed to produce new scientific knowledge, equipment, and devices suitable for solving problems in the rehabilitation of handicapped individuals and for reducing environmental barriers, and to (B) cooperate with State agencies designated pursuant to section 101 in developing systems of information exchange and coordination to promote the prompt utilization of engineering and other scientific research to assist in solving problems in the rehabilitation of handicapped individuals. (3) Conduct of a program for spinal cord injury research, to include support of spinal cord injuries projects and demonstrations established pursuant to section 303 (b), which will (A) insure dissemination of research findings among all such centers, (B) provide encouragement and support for initiatives and new approaches by individual and institutional investigators, and (C) establish and maintain close working relationships with other govern- mental and voluntary institutions and organizations engaged in similar efforts, in order to unify and coordinate scientific efforts, encourage joint planning, and promote the interchange of data and reports among spinal cord injury investigators. (4) Conduct a program for end-stage renal disease research, to include support of projects and demonstrations for providing special services (including transportation and dialysis), artificial kidneys, and supplies necessary for the rehabilitation of individuals suffer- ing from such disease and which will (A) insure dissemination of research findings, (B) provide encouragement and support for initiatives and new approaches by individual and institutional investigators, and (C) establish and maintain close working relationships with other governmental and voluntary institutions and organizations engaged in similar efforts, in order to unify and coordinate scientific efforts, encourage joint planning, and promote the interchange of data and reports among investigators in the field of end-stage renal disease. No person shall be selected to participate in such program who is eligible for services for such disease under any other provision of law. (5) Conduct of a program for international rehabilitation research, demonstration, and training for the purpose of developing new knowledge and methods in the rehabilitation of REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 27 handicapped individuals in the United States, cooperating with and assisting in developing and sharing information found useful in other nations in the rehabilitation of handicapped individuals, and initiating a program to exchange experts and technical assistance in the field of rehabilitation of handicapped individuals with other nations as a means of increasing the levels of skill of rehabilitation personnel. (6) Conduct of a research program concerning the use of existing telecommunications systems (including telephone, television, satellite, radio, and other similar systems) which have the potential for substantially improving service delivery methods, and the development of appropriate programing to meet the particular needs of handicapped individuals. (7) Conduct of a program of joint projects with the National Institutes of Health, the Health Services Administration, the Administration on Aging, the National Science Founda- tion, the Veterans' Administration, the Office of Education, the National Aeronautics and Space Administration, other Federal agencies, and private industry in areas of joint interest involving rehabilitation. (8) Conduct of a program of research related to the rehabilitation of handicapped chil- dren and of handicapped individuals who are aged sixty or older. (9) Conduct of a research program to develop and demonstrate innovative methods to attract and retain professionals to serve in rural areas in the rehabilitation of handicapped and severely handicapped individuals. (10) Conduct of a model research and demonstration project designed to assess the feasibility of establishing a center for producing and distributing to deaf individuals cap- tioned video cassettes providing a broad range of educational, cultural, scientific, and voca- tional programing. (11) Conduct of a model research and demonstration program to develop innovative methods of providing services for preschool age handicapped children, including the follow- ing: (A) early intervention, parent counseling, infant stimulation, early identification, diag- nosis, and evaluation of severely handicapped children up to the age of five, with a special emphasis on severely handicapped children up to the age of three; (B) such physical therapy, language development, pediatric, nursing, and psychiatric services as are necessary. for such children; and (C) appropriate services for the parents of such children, including psychiatric services, parent counseling, and training. (12) Conduct of a model research and training program under which model training centers shall be established to develop and use more advanced and effective methods of evaluat- ing and developing the employment potential of handicapped individuals, including programs which- (A) provide training and continuing education for personnel involved with the employment of handicapped individuals; (B) develop model procedures for testing and evaluating the employment potential of handicapped individuals; (C) develop model training programs to teach handicapped individuals skills which will lead to appropriate employment; (D) develop new approaches for job placement of handicapped individuals, includ- ing new followup procedures relating to such placement; and (E) provide information services regarding education, training, employment, and job placement for handicapped individuals. (c) The provisions of section 306 shall apply to assistance provided under this section, unless the context indicates to the contrary. [TRAINING [SEC. 203. (a) The Secretary, through the Commissioner, in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to make grants to and contracts with States and public or nonprofit agencies and organiza- tions, including institutions of higher education, to pay part of the cost of projects for train- ing, traineeships, and related activities designed to assist in increasing the numbers of personnel trained in providing vocational services to handicapped individuals and in per- forming other functions necessary to the development of such services. [(b) In making such grants or contracts, funds made available for any year will be uti- lized to provide a balanced program of assistance to meet the medical, vocational, and other 28 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 personnel training needs of both public and private rehabilitation programs and institutions, to include projects in rehabilitation medicine, rehabilitation nursing, rehabilitation counseling, rehabilitation social work, rehabilitation psychology, physical therapy, occupational therapy, speech pathology and audiology, workshop and facility administration, prosthetics and orthotics, specialized personnel in providing services to blind and deaf individuals, recreation for ill and handicapped individuals, and other fields contributing to the rehabilitation of handicapped individuals, including homebound and institutionalized individuals and handi- capped individuals with limited English-speaking ability. No grant shall be made under this section for furnishing to an individual any one course of study extending for a period in exess of four years. [REPORTS [SEC. 204. There shall be included in the annual report to the Congress required by section 404 a full report on the research and training activities carried out under this title and the extent to which such research and training has contributed directly to the development of methods, procedures, devices, and trained personnel to assist in the provision of vocational rehabilitation services to handicapped individuals and those with the most severe handicaps under this Act.] TITLE HI-[SPECIAL FEDERAL RESPONSIBILITIES] SUPPLEMENTARY SERVICES AND FACILITIES PART A-CONSTRUCTION AND TRAINING PROGRAMS DECLARATION OF PURPOSE SEC. 300. The purpose of this title is to- (1) authorize grants and contracts to assist in the construction and initial staffing of rehabilitation facilities and authorize such staffing as the Commissioner deems appro- priate; (2) authorize grants and contracts to assist in the provision of vocational training services to handicapped individuals; (3) authorize grants for special projects and demonstrations which hold promise of expanding or otherwise improving rehabilitation services to handicapped individuals, including individuals with spinal cord injuries, older blind individuals, and deaf individ- uals whose maximum vocational potential has not been reached, which experiment with new types of patterns of services or devices for the rehabilitation of handicapped indi- viduals (including opportunities for new careers for handicapped individuals, and for other individuals in programs serving handicapped individuals) and which provide voca- tional rehabilitation services to handicapped migratory agricultural workers or seasonal farmworkers; [(4) establish and operate a National Center for Deaf-Blind Youths and Adults;] and [(5)] (4) establish uniform grant and contract requirements for programs assisted under this title and certain other provisions of this Act. GRANTS FOR CONSTRUCTION OF REHABILITATION FACILITIES SEC. 301. (a) For the purpose of making grants and contracts under this section for con- struction of rehabilitation facilities, [initial] staffing, and planning assistance, there is au- thorized to be appropriated such sums as may be necessary [for the fiscal years endng June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978.] for each fiscal year ending bef ore October 1, 1982. Amounts SO, appropriated shall remain available for expenditure with respect to construction projects funded or [initial] staffing grants made under this section prior to [October 1, 1980] October 1, 1983. (b) (1) The [Secretary] Commissioner is authorized to make grants to assist in meeting the costs of construction of public or nonprofit rehabilitation facilities. Such grants may be made to States and public or nonprofit organizations and agencies for projects for which ap- plications are approved by the [Secretary] Commissioner under this section. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 29 (2) To be approved, an application for a grant for a construction project under this section must conform to the provisions of section 306. (3) The amount of a grant under this section with respect to any construction project in any State shall be equal to the same percentage of the cost of such project as the Federal share which is applicable in the case of rehabilitation facilities (as defined in section 645 (g) of the Public Health Service Act (42 U.S.C. (a) in such State, except that if the Fed- eral share with respect to rehabilitation facilities in such State is determined pursuant to sub- paragraph (b) (2) of section 645 of such Act (42 U.S.C. 291o(b) (2)), the percentage of the cost for purposes of this section shall be determined in accordance with regulations pre- scribed by the [Secretary] Commissioner designed to achieve as nearly as practicable results comparable to the results obtained under such subparagraph. (c) The [Secretary] Commissioner is also authorized to make grants to assist in the initial staffing of any public or nonprofit rehabilitation facility constructed after the date of enactment of this section (whether or not such construction was financed with the aid of a grant under this section) by covering part of the costs (determined in accordance with regula- tions the [Secretary] Commissioner shall prescribe) of compensation of professional or tech- nical personnel of such facility during the period beginning with the commencement of the operation of such facility and ending with the close of four years and three months after the month in which such operation commenced. Such grants with respect to any facility may not exceed 75 per centum of such costs for the period ending with the close of the fifteenth month following the month in which such operation commenced, 60 per centum of such costs for the first year thereafter, 45 per centum of such costs for the second year thereafter, and 30 per centum of such costs for the third year thereafter. (d) The [Secretary] Commissioner is also authorized to make grants upon application approved by the State agency designated under section 101 to administer the State plan, to public or nonprofit agencies, institutions, or organizations to assist them in meeting the ccst of planning rehabilitation facilities and the services to be provided by such facilities. VOCATIONAL TRAINING SERVICES FOR HANDICAPPED INDIVIDUALS SEC. 302. (a) For the purpose of making grants and contracts under this section, there is authorized to be appropriated such sums as may be necessary for [the fiscal years ending June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978.] each fiscal year ending before October 1, 1982. (b) (1) The [Secretary] Commissioner is authorized to make grants to States and public or nonprofit organizations and agencies to pay up to 90 per centum of the cost of projects for providing vocational training services to handicapped individuals, especially those with the most severe handicaps, in public or nonprofit rehabilitation facilities. (2) (A) Vocational training services for purposes of this subsection shall include train- ing with a view toward career advancement; training in occupational skills; related services, including work evaluation, work testing, provision of occupational tools and equipment re- quired by the individual to engage in such training, and job tryouts; and payment of weekly allowances to individuals receiving such training and related services. (B) Such allowances may not be paid to any individual for any period in excess of two years, and such allowances for any week shall not exceed $30 plus $10 for each of the individ- ual's dependents, or $70, whichever is less. In determining the amount of such allowances for any individual, consideration shall be given to the individual's need for such an allowance, in- cluding any expenses reasonably attributable to receipt of training services, the extent to which such an allowance will help assure entry into and satisfactory completion of training, and such other factors, specified by the [Secretary] Commissioner, as will promote such in- dividual's capacity to engage in gainful and suitable employment. (3) The [Secretary] Commissioner may make a grant for a project pursuant to this subsection only on his determination that (A) the purpose of such project is to prepare handi- capped individuals, especially those with the most severe handicaps, for gainful and suitable employment; (B) the individuals to receive training services under such project will include only those who have been determined to be suitable for and in need of such training services by the State agency or agencies designated as provided in section 101 (a) (1) of the State in which the rehabilitation facility is located; (C) the full range of training services will be made available to each such individual, to the extent of his need for such services and (D) the project, including the participating rehabilitation facility and the training services provided, meet such other requirements as he may prescribe in regulations for carrying out the purposes of this subsection. 30 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (c) (1) The [Secretary] Commissioner is authorized to make grants to public or non- profit rehabilitation facilities, or to an organization or combination of such facilities, to pay the Federal share of the cost of projects to analyze, improve, and increase their professional services to handicapped individuals, their management effectiveness, or any other part of their operations affecting their capacity to provide employment and services for such individuals. (2) No part of any grant made pursuant to this subsection may be used to pay costs of acquiring, constructing, expanding, remodeling, or altering any building. [MORTGAGE INSURANCE FOR REHABILITATION FACILITIES [SEC. 303. (a) It is the purpose of this section to assist and encourage the provision of urgently needed facilities for programs for handicapped individuals. [(b) For the purpose of this section the terms "mortgagee", "maturity date", and "State" shall have the meaning respectively set forth in section 207 of the National Housing Act. [(c) The Secretary, in consultation with the Secretary of Housing and Urban Develop- ment, and subject to the provisions of section 306, is authorized to insure up to 100 per centum of any mortgage (including advances on such mortgage during construction) in accordance with the provisions of this section upon such terms and conditions as he may prescribe and make commitments for insurance of such mortgage prior to the date of its execution or dis- bursement thereon, except that no mortgage of any public agency shall be insured under this section if the interest from such mortgage is exempt from Federal taxation. [(d) In order to carry out the purpose of this section, the Secretary is authorized to insure any mortgage which covers construction of a public or nonprofit rehabilitation facility, including equipment to be used in its operation, subject to the following conditions: [(1) The mortgage shall be executed by a mortgagor, approved by the Secretary, who demonstrates ability successfully to operate one or more programs for handicapped in- dividuals. The Secretary may in his discretion require any such mortgagor to be regulated or restricted as to minimum charges and methods of financing, and, in addition thereto, if the mortgagor is a corporate entity, as to capital structure and rate of return. As an aid to the regulation or restriction of any mortgagor with respect to any of the foregoing matters, the Secretary may make such contracts, with and acquire for not to exceed $100 such stock of interest in, such mortgagor as he may deem necessary. Any stock or interest so purchased shall be paid for out of the Rehabilitation Facilities Insurance Fund (estab- lished by subsection (h) of this section), and shall be redeemed by the mortgagor at par upon the termination of all obligations of the Secretary under the insurance. [(2) The mortgage shall involve a principal obligation in an amount not to exceed 90 per centum of the estimated replacement cost of the property or project, including equipment to be used in the operation of the rehabilitation facility, when the proposed improvements are completed and the equipment is installed, but not including any cost covered by grants in aid under this Act or any other Federal Act. [(3) The mortgage shall- [(A) provide for complete amortization by periodic payments within such term as the Secretary shall prescribe, and [(B) bear interest (exclusive of premium charges for insurance and service charges, if any) at not to exceed such per centum per annum on the principal obliga- tion outstanding at any time as the Secretary finds necessary to meet the mortgage market. (e) The Secretary shall fix and collect premium charges for the insurance of mortgages under this section which shall be payable annually in advance by the mortgagee, either in cash or in debentures of the Rehabilitation Facilities Insurance Fund (established by subsection (h)- of this section) issued at par plus accrued interest. In the case of any mortgage such charge shall be not less than an amount equivalent to one-fourth of 1 per centum per annum nor more than an amount equivalent to 1 per centum per annum of the amount of the principal obligation of the mortgage outstanding at any one time, without taking into account delinquent payments or prepayments. In addition to the premium charge herein provided for, the Secretary is au- thorized to charge and collect such amounts as he may deem reasonable for the appraisal of a property or project during construction, but such charges for appraisal and inspection shall not aggregate more than 1 per centum of the original principal face amount of the mortgage. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 31 [(f) The Secretary may consent to the release of a part or parts of the mortgaged prop- erty or project from the lien of any mortgage insured under this section upon such terms and conditions as he shall by regulation prescribe. (g) (1) The Secretary shall have the same functions, powers, and duties (insofar as applicable) with respect to the insurance of mortgages under this section as the Secretary of Housing and Urban Development has with respect to the insurance of mortgages under title II of the National Housing Act. The Secretary may, pursuant to a formal delegation agree- ment containing regulations prescribed by him, delegate to the Secretary of Housing and Urban Development authority to administer this section in accordance with such delegation agreement. (2) The provisions of subsections (e), (g), (h), (i), (j), (k), (1), and (n) of section 207 of the National Housing Act shall apply to mortgages insured under this section; except that, for the purposes of their application with respect to such mortgages, all references in such provisions to the General Insurance Fund shall be deemed to refer to the Rehabilitation Facilities Insurance Fund (established by subsection (h) of this section) and all references in such provisions to "Secretary" shall be deemed to refer to the Secretary of Health, Educa- tion, and Welfare. [(h) (1) There is hereby created a Rehabilitation Facilities Insurance Fund which shall be used by the Commissioner as a revolving fund for carrying out all the insurance provisions of this section. All mortgages insured under this section shall be insured under and be the obligation of the Rehabilitation Facilities Insurance Fund. [(2) The general expenses of the operations of the Rehabilitation Services Administra- tion relating to mortgages insured under this section may be charged to the Rehabilitation Facilities Insurance Fund. (3) Moneys in the Rehabilitation Facilities Insurance Fund not needed for the current operations of the Rehabilitation Services Administration with respect to mortgages insured under this section shall be deposited with the Treasurer of the United States to the credit of such fund, or invested in bonds or other obligations of, or in bonds or other obligations guaran- teed as to principal and interest by, the United States. The Commissioner may, with the ap- proval of the Secretary of the Treasury, purchase in the open market debentures issued as obligations of the Rehabilitation Facilities Insurance Fund. Such purchases shall be made at a price which will provide an investment yield of not less than the yield obtainable from other investments authorized by this section. Debentures so purchased shall be canceled and not reissued. [(4) Premium charges, adjusted premium charges, and appraisals and other fees re- ceived on account of the insurance of any mortgage under this section, the receipts derived from property covered by such mortgages and from any claims, debts, contracts, property, and security assigned to the Secretary in connection therewith, and all earnings as the assets of the fund, shall be credited to the Rehabilitation Facilities Insurance Fund. The principal of, and interest paid and to be paid on, debentures which are the obligation of such fund, cash insurance payments, and adjustments, and expense incurred in the handling, management, renovation, and disposal of properties acquired, in connection with mortgages insured under this section, shall be charged to such fund. (5) There are authorized to be appropriated to provide initial capital for the Rehabilita- tion Facilities Insurance Fund, and to assure the soundness of such fund thereafter, such sums as may be necessary, except that the total amount of outstanding mortgages insured shall not exceed $200,000,000.] LOAN GUARANTEES FOR REHABILITATION FACILITIES SEC. 303. (a) It is the purpose of this section to assist and encourage the provision of needed facilities for programs for handicapped individuals primarily served by State re- habilitation programs. (b) The Commissioner may, in accordance with this section and subject to section 306, guarantee the payment of principal and interest on loans made to nonprofit private entities by non-Federal lenders and by the Federal Financing Bank for the construction of rehabilita- tion facilities, including equipment used in their operation. (c) In the case of a guarantee of any loan to a nonprofit private entity under this section, the Commissioner shall pay, to the holder of such loan and for and on behalf of the project for which the loan was made, amounts sufficient to reduce by 2 percent per annum the net effective interest rate otherwise payable on such loan. Each holder of a loan which is guaranteed under 32 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 this section shall have a contractual right to receive from the United States interest payments required by the preceding sentence. (d) The cumulative total of the principal of the loans outstanding at any time with respect to which guarantees have been issued, or which have been directly made, may not exceed $100,000,000. (e) (1) The Commissioner may not approve a loan guarantee for a project under this section unless he determines that (A) the terms, conditions, security (if any), and schedule and amount of repayments with respect to the loan are sufficient to protect the financial in- terests of the United States and are otherwise reasonable, including a determination that the rate of interest does not exceed such per centum per annum on the principal obligation out- standing as the Commissioner determines to be reasonable, taking into account the range of interest rates prevailing in the private market for similar loans and the risks assumed by the United States, and (B) the loan would not be available on reasonable terms and conditions without the guarantee under this section. (2) (A) The United States shall be entitled to recover from the applicant for a loan guarantee under this section the amount of any payment made pursuant to such guarantee, unless the Commissioner for good cause waives such right of recovery. Upon making any such payment, the United States shall be subrogated to all of the rights of the recipient of the pay- ments with respect to which the guarantee was made. (Б) To the extent permitted by subparagraph (C), any terms and conditions applicable to a loan guarantee under this section (including terms and conditions imposed under para- graph (1)) may be modified by the Commissioner to the extent he considers consistent with the interests of the United States. (C) Any loan guarantee made by the Commissioner under this section shall be incon- testable (i) in the hands of an applicant on whose behalf such guarantee is made unless the applicant engaged in fraud or misrepresentation in securing such guarantee, and (ii) as to any person (or his successor in interest) who makes or contracts to make a loan to such appli- cant in reliance thereon unless such person (or his successor in interest) engaged in fraud or misrepresentation in making or contracting to make such loan. (D) Guarantees of loans under this section shall be subject to such further terms and conditions as the Commissioner considers necessary to assure that the purposes of this sec- tion will be achieved. (f) (1) There is established in the Treasury a loan guarantee fund (hereinafter in this subsection referred to as the "fund") which shall be available to the Commissioner without fiscal year limitation, in such amounts as may be specified from time to time in appropriation Acts- (A) to enable him to discharge his responsibilities under loan guarantees issued by him under this section; and (B) for payment of interest under subsection (c) on loans guaranteed under this section. There are authorized to be appropriated such amounts as may be necessary to provide the sums required for the fund. There shall also be deposited in the fund amounts received by the Commissioner in connection with loan guarantees under this section and other property or assets derived by him from his operations respecting such loan guarantees, including any money derived from the sale of assets. (2) (A) If at any time the sums in the fund are insufficient to enable the Commissioner- (i) to make payments of interest under subsection (c); or (ii) to otherwise comply with guarantees under this section of loans to nonprofit private entities; he is authorized to issue to the Secretary of the Treasury notes or other obligations in such forms and denominations, bearing such maturities, and subject to such terms and conditions, as may be prescribed by the Commissioner with the approval of the Secretary of the Treasury. (B) Such notes or other obligations shall bear interest at a rate determined by the Secre- tary of the Treasury, taking into consideration the current average market yield on outstand- ing marketable obligations of the United States of comparable maturities during the month preceding the issuance of the notes or other obligations. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 33 (C) The Secretary of the Treasury shall purchase any notes and other obligations issued under this paragraph, and for that purpose he may use as a public debt transaction the pro- ceeds from the sale of any securities issued under the Second Liberty Bond Act. The purposes for which securities may be issued under that Act are extended to include any purchase of such notes and obligations. The Secretary of the Treasury may at any time sell any of the notes or other obligations acquired by him under this paragraph. All redemptions, purchases, and sales by the Secretary of the Treasury of such notes or other obligations shall be treated as a public debt transaction of the United States. (D) Sums borrowed under this paragraph shall be deposited in the fund and redemption of such notes and obligations shall be made by the Commissioner from the fund. [SPECIAL PROJECTS AND DEMONSTRATIONS TRAINING SEC. 304. [(a) (1) For the purpose of making grants under this section for special proj- ects and demonstrations (and research and evaluation connected therewith), there is author- ized to be appropriated $15,000,000 for the fiscal year ending June 30, 1974, $17,000,000 for the fiscal year ending June 30, 1975, $20,000,000 for the fiscal year ending June 30, 1976, and such sums as may be necessary for the fiscal years ending September 30, 1977, and Septem- ber 30, 1978; and there is further authorized to be appropriated for such purposes for each such year such additional sums as the Congress may determine to be necessary. [(2) Of the amounts appropriated pursuant to paragraph (1) of this subsection, 5 per centum in each fiscal year shall be available only for the purpose of making grants under subsection (c) of this section, and there is authorized to be appropriated in each such fiscal year such additional amount as may be necessary to equal, when added to the amount made available for the purpose of making grants under such subsection an amount of $5,000,000 to be available for each such fiscal year. (b) The secretary, subject to the provisions of section 306, shall make grants to States and public or nonprofit agencies and organizations for paying part or all of the cost of special projects and demonstrations (and research and evaluations in connection therewith) (1) for establishing programs and facilities for providing vocational rehabilitation services which hold promise of expanding or otherwise improving rehabilitation services to handicapped individuals (especially those with the most severe handicaps) including individuals with spinal cord injuries, older blind in dividuals, and deaf individuals, whose maximum vocational potential has not been reached, (2) for applying new types or patterns of services or devices (including opportunities for new careers for handicapped individuals or other individuals in programs servicing handicapped individuals), and (3) for operating programs (including renovation and construction of facilities, where appropriate) to demonstrate methods of mak- ing recreational activities fully accessible to handicapped individuals. Projects and demon- strations providing services to individuals with spinal cord injuries shall include provisions to- [(A) establish, on an appropriate regional basis, a multidisciplinary system of pro- viding vocational and other rehabilitation services, specifically designed to meet the special needs of individuals with spinal cord injuries, including acute care as well as periodic inpatient or outpatient followup and services; [(B) demonstrate and evaluate the benefits to individuals with spinal cord injuries served in, and the degree of cost effectiveness of, such a regional system; [(C) demonstrate and evaluate existing, new, and improved methods and equipment essential to the care, management, and rehabilitation of individuals with spinal cord injuries; and [(D) demonstrate and evaluate methods of community outreach for individuals with spinal cord injuries and community education in connection with the problems of such individuals in areas such as housing, transportation, recreation, employment, and com- munity activities. [(c) The Secretary, subject to the provisions of section 306, is authorized to make grants to any State agency designated pursuant to State plan approved under section 101, or to any local agency participating in the administration of such a plan, to pay up to 90 per centum of the cost of projects or demonstrations for the provision of vocational rehabilitation services to handicapped individuals, as determined in accordance with rules prescribed by the Secretary of Labor, who are migratory agricultural workers or seasonal farmworkers, and to members of their families (whether or not handicapped) who are with them, includ- ing maintenance and transportation of such individuals and members of their families where necessary to the rehabilitation of such individuals. Maintenance payments under this section 34 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 shall be consistent with any maintenance payments made to other handicapped individuals in the State under this Act. Such grants shall be conditioned upon satisfactory assurance that in the provision of such services there will be appropriate cooperation between the grantee and other public or nonprofit agencies and organizations having special skills and experience in the provision of services to migratory agricultural workers, seasonal farm- workers, or their families. This subsection shall be administered in coordination with other programs serving migrant agricultural workers and seasonal farmworkers, including pro- grams under title I of the Elementary and Secondary Education Act of 1965, section 311 of the Economic Opportunity Act of 1964, the Migrant Health Act, and the Farm Labor Con- tractor Registration Act of 1963. [(d) The Secretary is authorized to make contracts or jointly financed cooperative arrangements with employers and organizations for the establishment of projects designed to prepare handicapped individuals for gainful and suitable employment in the competitive labor market under which handicapped individuals are provided training and employment in a realistic work setting and such other services (determined in accordance with regulations prescribed by the Secretary) as may be necessary for such individuals to continue to engage in such employment. (e) (1) The Secretary is authorized, directly or by contract with State vocational rehabilitation agencies or experts or consultants or groups thereof, to provide technical assistance (A) to rehabilitation facilities, and (B) with the concurrence of the Board estab- lished by section 502, for the purpose of removal of architectural and transportation barriers, to any public or nonprofit agency, institution, organization or facility. (2) Any such experts or consultants shall, while serving pursuant to such contracts, be entitled to receive compensation at rates fixed by the Secretary, but not exceeding the pro rata pay rate for a person employed as a GS-18, under section 5332 of title 5, United States Code, including traveltime, and while so serving away from their homes or regular places of business, they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently.] (a) [The Secretary, through the Commissioner, in coordination with other appropriate programs in the Department of Health, Education, and Welfare, is authorized to] The Com- missioner may make grants to and contracts with States and public or nonprofit agencies and organizations, including institutions of higher education, to pay part of the cost of projects for training, traineeships, and related activities designed to assist in increasing the numbers of personnel trained in providing vocational, medical, social and psychological rehabilitation services to handicapped individuals [and] including personnel specially trained in providing employment assistance to handicapped individuals through job development and job placement services, and personnel trained in performing other functions necessary to the development of such services. (b) In making such grants or contracts, funds made available for any year will be utilized to provide a balanced program of assistance to meet the medical, vocational, and other personnel training needs of both public and private rehabilitation programs and institutions, to include projects in rehabilitation medicine, rehabilitation nursing, rehabilitation counsel- ing, rehabilitation social work, rehabilitation psychiatry, rehabilitation psychology, physical therapy, occupational therapy, speech pathology and audiology, workshop and facility admin- istration, prosthetics and orthotics, specialized personnel in providing services to blind and deaf individuals, specialized personnel in providing job development and job placement serv- ices for handicapped individuals, recreation for ill and handicapped individuals, and other fields contributing to the rehabilitation of handicapped individuals, including homebound and institutionalized individuals and handicapped individuals with limited English-speaking ability. No grant shall be made under this section for furnishing to an individual any one course of study extending for a period in excess of four years. (c) The Commissioner shall evaluate the impact of the training programs conducted under this section, shall determine training needs for personnel necessary to provide services to handicapped individuals, and shall develop a long-term rehabilitation manpower plan de- signed to target resources on areas of personnel shortage. (d) (1) For the purpose of training a sufficient number of interpreters to meet the com- munications needs of deaf individuals, the Secretary, through the Office of Information and Resources for the Handicapped, may award grants under this section to any public or private nonprofit agency or organization to establish interpreter training programs or to provide REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 35 financial assistance for ongoing interpreter training programs. Not more than twelve pro- grams shall be established or assisted by grants under this section. The Secretary shall award grants for programs in such geographic areas throughout the United States as the Secretary considers appropriate to best carry out the purpose of this section. Priority shall be given to public or private nonprofit organizations with existing programs that have demonstrated their capacity for providing interpreter training services. (2) No grant shall be awarded under this section unless the applicant has submitted an application to the Secretary in such form, and in accordance with such procedures, as the Secretary may require. Any such application shall- (A) describe the manner in which an interpreter training program would be de- veloped and operated during the five-year period following the award of any grant under this section; (B) demonstrate the applicant's capacity or potential for providing training for interpreters for deaf individuals; (C) provide assurances that any interpreter trained or retrained under such pro- gram shall meet such minimum standards of competency as the Secretary may establish for purposes of this section; (D) provide assurances that (i) to the extent appropriate, the applicant shall provide for the training or retraining (including short-term and in-service training) of teachers who are involved in providing instruction to deaf individuals but who are not certified as teachers of deaf individuals, and (ii) funds for such in-service training shall be pro- vided under this section only through funds appropriated under the Education for all Handicapped Children Act; and (E) contain such other ormation as the Secretary may require. (e) There are authorized to be appropriated to carry out this section $34,000,000 for the fiscal year ending September 30, 1979, $40,000,000 for the fiscal year ending September 30, 1980, $45,000,000 for the fiscal year ending September 30, 1981, and $50,000,000 for the fiscal year ending September 30, 1982. There are further authorized to be appropriated for each such fiscal year such additional sums as the Congress may determine to be necessary to carry out this section. [NATIONAL CENTER FOR DEAF-BLIND YOUTHS AND ADULTS [SEC. 305. (a) For the purpose of establishing and operating a Helen Keller National Center for Deaf-Blind Youths and Adults, there is authorized to be appropriated such sums as may be necessary for construction, which shall remain available until expended, and such sums as may be necessary for operations for the fiscal years ending June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978. [(b) In order- [(1) to demonstrate methods of (A) providing the specialized intensive services, and other services, needed to rehabilitate handicapped individuals who are both deaf and blind, and (B) training the professional and allied personnel needed adequately to staff facilities specifically designed to provide such services and training to such personnel who have been or will be working with deaf-blind individuals; [(2) to conduct research in the problems of, and ways of meeting the problems of rehabilitating, deaf-blind individuals; and [(3) to aid in the conduct of related activities which will expand or improve the services for or help improve public understanding of the problems of deaf-blind indi- viduals; the Secretary, subject to the provisions of section 306, is authorized to enter into an agree- ment with any public or nonprofit agency or organization for payment by the United States of all or part of the costs of the establishment and operation, including construction and equip- ment, of a center for vocational rehabilitation of handicapped individuals who are both deaf and blind, which center shall be known as the Helen Keller National Center for the Deaf-Blind Youths and Adults. [(c) Any agency or organization desiring to enter into such agreement shall submit a proposal therefor at such time, in such manner, and containing such information as may be prescribed in regulations by the Secretary. In considering such proposals the Secretary shall 36 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 give preference to proposals which (1) give promise of maximum effectiveness to the orga- nization and operation of the Helen Keller National Center, and (2) give promise of offering the most substantial skill, experience, and capability in providing a broad program of service, research, training, and related activities in the field of rehabilitation of deaf-blind individuals.] COMPREHENSIVE REHABILITATION CENTERS SEC. 305. (a) (1) In order to provide a focal point in communities for the development and delivery of services designed primarily for handicapped persons, the Commissioner may make grants to any designated State unit to establish and operate comprehensive rehabilita- tion centers. The centers shall be established in order to provide a broad range of services to handicapped individuals, including information and referral services, counseling services, and job placement, health, educational, social, and recreational services, as well as to provide facilities for recreational activities. (2) To the maximum extent practicable, such centers shall provide, upon request, to local governmental units and other public and private nonprofit entities located in the area such information and technical assistance (including support personnel such as interpreters for the deaf) as may be necessary to assist those entities in complying with this Act, particularly the requirements of section 504. (b) No grant may be made under this section unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application for a grant unless the application- (1) contains assurances that the designated State unit will use funds provided by such grant in accordance with subsections (c) and (d); and (2) contains such other information, and is submitted in such form and in accordance with such procedures, as the Commissioner may require. (c) (1) The designated State unit may- (A) in accordance with subsection (e) make grants to units of general purpose local government or to other public or nonprofit private agencies or organizations and may make contracts with any agency or organization to pay not to exceed 80 percent of the cost of- (i) leasing facilities to serve as comprehensive rehabilitation centers; (ii) expanding, remodeling, or altering facilities to the extent necessary to adapt them to serve as comprehensive rehabilitation centers; (iii) operating such centers; or (iv) carrying out any combination of the activities specified in this subparagraph; and (B) directly carry out the activities described in subparagraph (A), except that not more than 80 percent of the costs of providing any comprehensive rehabilita- tion center may be provided from funds under this section. (3) Funds made available to any designated State unit under this section for the purpose of assisting in the operation of a comprehensive rehabilitation center may be used to compensate professional and technical personnel required to operate the center and to deliver services in the center, and to provide equipment for the center. (d) (1) The designated State unit may approve a grant or enter into a contract under subsection (c) only if the application for such grant or contract meets the requirements speci- fied in paragraphs (1), (2), (4), and (5) of section 306(b) and if the application contains assurances that any facility assisted by such grant or contract shall be in reasonably close proximity to the majority of individuals eligible to use the comprehensive rehabilitation center. (2) Any designated State unit which directly provides for comprehensive rehabilitation centers under subsection (c) (1) (B) shall use funds under this section in the same manner as any other grant recipient is required to use such funds. (e) If within 20 years after the completion of any construction project for which funds have been paid under this section- (1) the owner of the facility ceases to be a public or nonprofit private agency or organization, or REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 37 (2) the facility ceases to be used for the purposes for which it was leased or con- structed (unless the Commissioner determines, in accordance with regulations, that there is good cause for releasing the applicant or other owner from the obligation to do so), the United States shall be entitled to recover from the grant recipient or other owner of the facility an amount which bears the same ratio to the value of the facility (or so much thereof as constituted an approved project or projects) at the time the United States seeks recovery as the amount of such Federal funds bore to the cost of renovating the facility under subsection (c) (1) (A) (ii). Such value shall be determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated. (f) The requirements of section 306 shall not apply to funds allotted under this section, except that subsections (g) and (h) of such section shall be applicable with respect to such funds. (g) There are authorized to be appropriated to carry out this section such sums as may be necessary for the fiscal year ending September 30, 1979, and for the three succeeding fiscal years. GENERAL GRANT AND CONTRACT REQUIREMENTS SEC. 306. (a) The provisions of this section shall apply to all projects approved and as- sisted under this title[.], except as otherwise provided in section 305(g). The [Secretary] Commissioner shall insure compliance with this section prior to making any grant or entering into any contract or agreement under this title, except projects authorized under section 302. (b) To be approved, an application for assistance for a construction project, or for a project which involves construction, under this title must- (1) contain or be supported by reasonable assurances that (A) for a period of not less than twenty years after completion of construction of the project it will be used as a public or nonprofit facility, (B) sufficient funds will be available to meet the non-Federal share of the cost of construction of the project, and (C) sufficient funds will be available, when construction of the project is completed, for its effective use for its intended purpose; (2) provide that Federal funds provided to any agency or organization under this title will be used only for the purposes for which provided and in accordance with the applicable provisions of this section and the section under which such funds are provided; (3) provide that the agency or organization receiving Federal funds under this title will make an annual report to the Secretary, which he shall summarize and comment upon in the annual report to the Congress submitted under section 404;] (3) provide that the agency or organization receiving Federal funds under this title will make an annual report to the Commissioner, which the Commissioner shall submit to the Secretary for inclusion (in summarized form) in the annual report submitted to the Congress under section 13; (4) be accompanied or supplemented by plans and specifications which have been approved by the Board established by section 502 in which due consideration shall be given to excellence of architecture and design, and to the inclusion of works of art (not representing more than 1 per centum of the cost of the project), and which comply with regulations prescribed by the [Secretary] Commissioner related to minimum standards of construction and equipment (promulgated with particular emphasis on securing com- pliance with the requirements of the Architectural Barriers Act of 1968 (Public Law 90- 480)), and with regulations of the Secretary of Labor relating to occupational health and safety standards for rehabilitation facilities; and (5) contain or be supported by reasonable assurance that any laborer or mechanic employed by any contractor or subcontractor in the performance of work on any con- struction aided by payments pursuant to any grant under this section will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with-Davis-Bacon Act, as amended (40 U.S.C. 276a-276a-5) and the Secretary of Labor shall have, with respect to the labor stand- ards specified in this paragraph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176) and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c). (c) Upon approval of any application for a grant or contract for a project under this title, the [Secretary] Commissioner shall reserve, from any appropriation available there- 38 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 fore, the amount of such grant or contract determined under this title. In case an amendment to an approved application is approved, or the estimated cost of a project is revised upward, any additional payment with respect thereto may be made from the appropriation from which the original reservation was made or the appropriation for the fiscal year in which such amend- ment or revision is approved. (d) If, within twenty years after completion of any construction project for which funds have been paid under this title, the facility shall cease to be a public or nonprofit facility, the United States shall be entitled to recover from the applicant or other owner of the facility the amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the United States district court for the district in which such facility is situated) of the facility, as the amount of the Federal participation bore to the cost of con- struction of such facility. (e) Payment of assistance or reservation of funds made pursuant to this title may be made (after necessary adjustment on account of previously made overpayments or underpay- ments) in advance or by way of reimbursement, and in such installments and on such condi- tions, as the [Secretary] Commissioner may determine. (f) A project for construction of a rehabilitation facility which is primarily a workshop may, where approved by the [Secretary] Commissioner as necessary to the effective operation of the facility, include such construction as may be necessary to provide residential accommo- dations for use in connection with the rehabilitation of handicapped individuals. (g) No funds provided under this title may be used to assist in the construction of any facility which is or will be used for religious worship or any sectarian activity. (h) When in any State, funds provided under this title will be used for providing direct services to handicapped individuals or for establishing facilities which will provide such serv- ices, such services must be carried out in a manner not inconsistent with the State plan ap- proved pursuant to section 101. (i) Prior to making any grant or entering into any contract under this title, the Secre- tary" Commissioner shall afford reasonable opportunity to the appropriate State agency or agencies designated pursuant to section 101 to comment on such grant or contract. PART B-SPECIAL PROJECTS AND SUPPLEMENTARY SERVICES AUTHORIZATION OF APPROPRIATIONS SEC. 310. (a) For the purpose of carrying out this part (other than section 313), there are authorized to be appropriated such sums as may be necessary for each fiscal year ending before October 1, 1982. (b) Of the amounts appropriated for any fiscal year under subsection (a), 5 percent of such amount shall be available in such fiscal year only for the purpose of making grants under section 312. There is further authorized to be appropriated for each such fiscal year such additional amount as may be necessary to equal, when added to the amount made available for the purpose of making grants under section 312, an amount of $5,000,000 for each such fiscal year. SPECIAL DEMONSTRATION PROGRAMS SEC. 311. (a) Subject to the provisions of section 306, the Commissioner may make grants to States and to public or nonprofit agencies and organizations to pay part or all of the costs of special projects and demonstrations (including related research and evaluation) for- (1) establishing programs and, where appropriate, constructing facilities for pro- viding vocational rehabilitation services, which hold promise of expanding or otherwise improving rehabilitation services to handicapped individuals (especially those with the most severe handicaps), including individuals with spinal cord injuries and blind or deaf individuals, irrespective of age or vocational potential, who can benefit from com- prehensive services; (2) applying new types or patterns of services or devices for handicapped individ- uals (including programs for providing handicapped individuals, or other individuals in programs servicing handicapped individuals, with opportunities for new careers); and (3) operating programs and, where appropriate, renovating and constructing facili- ties to demonstrate methods of making recreational activities fully accessible to handi- capped individuals. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 39 (b) Any project or demonstration assisted by a grant under this section which provides services to individuals with spinal cord injuries shall- (1) establish, on an appropriate regional basis, a multidisciplinary system of providing vocational and other rehabilitation services, specifically designed to meet the special needs of individuals with spinal cord injuries, including acute care as well as periodic inpatient or outpatient followup and services; (2) demonstrate and evaluate the benefits to individuals with spinal cord injuries served in, and the degree of cost effectiveness of, such a regional system; (3) demonstrate and evaluate existing, new, and improved methods and equipment essential to the care, management, and rehabilitation of individuals with spinal cord injuries; and (4) demonstrate and evaluate methods of community outreach for individuals with spinal cord injuries and community education in connection with the problems of such individuals in areas such as housing, transportation, recreation, employment, and com- munity activities. MIGRATORY WORKERS SEC. 312. The Commissioner, subject to the provisions of section 306, is authorized to make grants to any State agency designated pursuant to a State plan approved under section 101, or to any local agency participating in the administration of such a plan, to pay up to 90 per centum of the cost of projects or demonstrations for the provision of vocational reha- bilitation services to handicapped individuals, as determined in accordance with rules pre- scribed by the Secretary of Labor, who are migratory agricultural workers or seasonal farmworkers, and to members of their families (whether or not handicapped) who are with them, including maintenance and transportation of such individuals and members of their families where necessary to the rehabilitation of such individuals. Maintenance payments under this section shall be consistent with any maintenance payments made to other handi- capped individuals in the State under this Act. Such grants shall be conditioned upon satis- factory assurance that in the provision of such services there will be appropriate cooperation between the grantee and other public or nonprofit agencies and organizations having special skills and experience in the provision of services to migratory agricultural workers, seasonal farmworkers, or their families. This section shall be administered in coordination with other programs serving migrant agricultural workers and seasonal farmworkers, including pro- grams under title I of the Elementary and Secondary Education Act of 1965, section 311 of the Economic Opportunity Act of 1964, the Migrant Health Act, and the Farm Labor Con- tractor Registration Act of 1963. HELEN KELLER NATIONAL CENTER SEC. 313. (a) The purpose of this section is to provide for the establishment and operation of the Helen Keller National Center for Deaf-Blind Youths and Adults. Any funds appro- priated under this part for construction of the Center shall remain available until expended. (b) In order- (1) to demonstrate methods of (A) providing the specialized intensive services, and other services, needed to rehabilitate handicapped individuals who are both deaf and blind, and (B) training the professional and allied personnel needed adequately to staff facilities specifically designed to provide such services and training to such personnel who have been or will be working with deaf-blind individuals; (2) to conduct research in the problems of, and ways of meeting the problems of rehabilitating, deaf-blind individuals; and (3) to aid in the conduct of related activities which will expand or improve the services for or help improve public understanding of the problems of deaf-blind individuals; the Secretary, subject to the provisions of section 306, is authorized to enter into an agree- ment with any public or nonprofit agency or organization for payment by the United States of all or part of the costs of the establishment and operation, including construction and equipment, of a center for vocational rehabilitation of handicapped individuals who are both deaf and blind, which center shall be known as the Helen Keller National Center for Deaf- Blind Youths and Adults. (c) Any agency or organization desiring to enter into such agreement shall submit a proposal therefor at such time, in such manner, and containing such information as may be 40 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 prescribed in regulations by the Secretary. In considering such proposals the Secretary shall give preference to proposals which (1) give promise of maximum effectiveness in the organi- zation and operation of the Helen Keller National Center, and (2) give promise of offering the most substantial skill, experience, and capability in providing a broad program of service, research, training, and related activities in the field of rehabilitation of deaf-blind individuals. (d) To the extent feasible the Helen Keller National Center for Deaf-Blind Youths and Adults shall seek to recover from States, private insurers, and other participating public and private agencies the costs of services provided to individuals by the Center. (e) There are authorized to be appropriated to carry out this section such sums as may be necessary for each fiscal year beginning before October 1, 1982. READER SERVICES FOR THE BLIND SEC. 314. (a) The Commissioner may award grants to States or to private nonprofit agencies or organizations of national scope (as so determined by the Commissioner) to- (1) provide reading services to blind persons who are not otherwise eligible for such services through other State or Federal programs; and (2) expand the quality and scope of reading services available to blind persons, and to assure to the maximum extent possible that the reading services provided under this Act will meet the reading need of blind persons attending institutions providing elemen- tary, secondary, or post-secondary education, and will be adequate to assist blind persons to obtain and continue in employment. Any State which receives a grant under this section shall administer the reading services for which such grant is awarded through the designated State unit of the State. (b) No grant shall be awarded under this section unless the applicant has submitted an application to the Secretary in such form, at such time, and containing such information as the Secretary may require. (c) For purposes of this section, the term "reading services" means- (1) the employment of persons who, by reading aloud, can afford blind persons ready access to printed information; (2) the transcription of printed information into braille or sound recordings if such transcription is performed pursuant to individual requests from blind persons for such services; (3) the storage and distribution of braille materials and sound recordings; (4) the purchase, storage, and distribution of equipment and materials necessary for the production, duplication, and reproduction of braille materials and sound recordings; (5) the purchase, storage, and distribution of equipment to blind persons to provide them with individual access to printed materials by mechanical or electronic means; and (6) radio reading services for blind persons. INTERPRETER SERVICES FOR THE DEAF SEC. 315. (a) The Commissioner may make grants to designated State units to establish within each State a program of interpreter services (including interpreter referral services) which shall be made available to deaf individuals and to any public agency or private nonprofit organization involved in the delivery of assistance or services to deaf individuals. (b) No grant may be made under this section unless an application therefor is submitted to the Commissioner in such form, at such times, and in accordance with such procedures as the Commissioner may require. Such application shall- (1) provide assurances that the program to be conducted under this section will be operated in areas within the State which are specifically selected to provide convenient locations for the provision of services to the maximum number of deaf individuals feasible; (2) include a plan which describes, in sufficient detail, the manner in which inter- preter referral services will be coordinated with the information and referral programs required under section 101 (a) (22), REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 41 (3) provide assurances that the program will seek to enter into contractual or other arrangements, to the extent appropriate, with private nonprofit organizations comprised of primarily hearing-impaired individuals (or private nonprofit organizations which have the primary purpose of providing assistance or services to hearing-impaired indi- viduals) for the operation of such programs; (4) provide that any interpreter participating in the program shall be required to meet minimum standards established by the Commissioner; and (5) contain such other formation as the Secretary may require. (c) Any designated State unit receiving funds under this section may provide interpreter services, without cost, for a period of not to exceed one year to any public agency or private nonprofit organization which provides assistance to deaf individuals. At the end of such period, agencies or organizations receiving such services through referrals shall reimburse the designated State unit for the costs of such services. Funds may also be used for the pur- chase of rental of equipment necessary to provide assistance or services to deaf individuals. (d) Funds provided to any designated State unit for any program under this section shall not be used for any administrative or related costs, nor shall such funds be used for assistance to deaf individuals who are receiving rehabilitation services under any other provision of this Act. SPECIAL RECREATIONAL PROGRAMS SEC. 316. The Commissioner, subject to the provisions of section 306, shall make grants to State and public nonprofit agencies and organizations for paying part or all of the cost of initiation of recreation programs to provide handicapped individuals with recreational activities to aid in the mobility and socialization of such individuals. The activities authorized to be assisted under this section may include, but are not limited to, scouting and camping, 4-H activities, sports, music, dancing, handicrafts, art, and homemaking. No grant may be made under the provisions of this section unless the agreement with respect to such grant contains provisions to assure that, to the extent possible, existing resources will be used to carry out the activities for which the grant is to be made, and that with respect to children the activities for which the grant is to be made will be conducted after school. [TITLE IV-ADMINISTRATION AND PROGRAM AND PROJECT EVALUATION [ADMINISTRATION [SEC. 400. (a) In carrying out his duties under this Act, the Secretary shall- [(1) cooperate with, and render technical assistance (directly or by grant or con- tract) to States in matters relating to the rehabilitation of handicapped individuals; [(2) provide short-term training and instruction in technical matters relating to vocational rehabilitation services, including the establishment and maintenance of such research fellowships and traineeships, with such stipends and allowances (including travel and subsistence expenses), as he may deem necessary, except that no such training or instruction (or fellowship or scholarship) shall be provided any individual for any one course of study for a period in excess of four years, and such training, instruction, fellowships, and traineeships may be in the fields of rehabilitation medicine, rehabilita- tion nursing, rehabilitation counseling, rehabilitation social work, rehabilitation psy- chology, physical therapy, occupational therapy, speech pathology and audiology, prosthetics and orthotics, recreation for ill and handicapped individuals, and other specialized fields contributing to the rehabilitation of handicapped individuals; and [(3) disseminate information relating to vocational rehabilitation services, and otherwise promote the cause of the rehabilitation of handicapped individuals and their greater utilization in gainful and suitable employment. (b) The Secretary is authorized to make rules and regulations governing the adminis- tration of this title and titles I through III of this Act, and, except as otherwise provided in this Act, to delegate to any officer or employee of the United States such of his powers and duties under such titles, except the making of rules and regulations, as he finds necessary to carry out the provisions of such titles. Such rules and regulations shall be published in the Federal Register, on at least an interim basis, no later than ninety days after the date of enactment of this Act. (c) The Secretary is authorized (directly or by grants or contracts) to conduct studies, investigations, and evaluation of the programs authorized by this Act, and to make reports, 42 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 with respect to abilities, aptitudes, and capacities of handicapped individuals, development of their potentialities, their utilization in gainful and suitable employment, and with respect to architectural, transportation, and other environmental and attitudinal barriers to their reha- bilitation, including the problems of homebound, institutionalized, and older blind individuals. [(d) There is authorized to be included for each fiscal year in the appropriation for the Department of Health, Education, and Welfare such sums as are necessary to administer the provisions of this Act. [(e) In carrying out his duties under this Act, the Secretary shall insure the maximum coordination and consultation, at both national and local levels, with the Administrator of Veterans' Affairs and his designees with respect to programs for and relating to the reha- bilitation of disabled veterans carried out under title 38, United States Code. [PROGRAM AND PROJECT EVALUATION [SEC. 401. (a) (1) The Secretary shall measure and evaluate the impact of all programs authorized by this Act, in order to determine their effectiveness in achieving stated goals in general, and in relation to their cost, their impact on related programs, and their structure and mechanisms for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not immediately involved in the administration of the program or project evaluated. (2) In carrying out his responsibilities under this subsection, the Secretary, in the case of research, demonstrations, and related activities carried out under section 202, shall, after taking into consideration the views of State agencies designated pursuant to section 101, on an annual basis— [(A) reassess priorities to which such activities should be directed; and [(B) review present research, demonstration, and related activities to determine, in terms of the purpose specified for such activities by subsection (a) of section 202, whether and on what basis such activities should be continued, revised, or terminated. [(3) The Secretary shall, within 12 months after the date of enactment of this Act, and on each April 1 thereafter, prepare and furnish to the appropriate committees of the Con- gress a complete report on the determination and review carried out under paragraph (2) of this subsection, together with such recommendations, including any recommendations for additional legislation, as he deems appropriate. [(b) Effective July 1, 1974, before funds for the programs and projects covered by this Act are released, the Secretary shall develop and publish general standards for evaluation of the programs and project effectiveness in achieving the objectives of this Act. He shall consider the extent to which such standards have been met in deciding, in accordance with procedures set forth in subsection (b), (c), and (d) of section 101, whether to renew or supplement financial assistance authorized under any section of this Act. Reports submitted pursuant to section 404 shall describe the actions taken as a result of these evaluations. [(c) In carrying out evaluations under this title, the Secretary shall, whenever possible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this Act about such programs and projects. [(d) The Secretary shall publish the results of evaluative research and summaries of evaluations of programs and project impact and effectiveness no later than ninety days after the completion thereof. The Secretary shall submit to the appropriate committees of the Con- gress copies of all such research studies and evaluation summaries. [(e) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this Act shall become the property of the United States. [OBTAINING INFORMATION FROM FEDERAL AGENCIES [SEC. 402. Such information as the Secretary may deem necessary for purposes of the evaluations conducted under this title shall be made available to him, upon request, by the agencies of the executive branch. [AUTHORIZATION OF APPROPRIATIONS [SEC. 403. There is authorized to be appropriated for the fiscal years ending June 30, 1974, June 30, 1975, June 30, 1976, September 30, 1977, and September 30, 1978, such sums REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 43 as the Secretary may require, but not to exceed an amount equal to one-half of 1 per centum of the funds appropriated under subchapters I, II, and III of this chapter or $1,000,000, whichever is greater, to be available to conduct program and project evaluations as required by this subchapter. [REPORTS [SEC. 404. Not later than one hundred and twenty days after the close of each fiscal year, the Secretary shall prepare and submit to the President and to the Congress a full and com- plete report on the activities carried out under this Act. Such annual reports shall include (1) statistical data reflecting, with the maximum feasible detail vocational rehabilitation services provided handicapped individuals during the preceding fiscal year, (2) specifically distinguished among rehabilitation closures attributable to physical restoration, placement in competitive employment, extended or terminal employment in a sheltered workshop or rehabilitation facility, employment as a homemaker or unpaid family worker, and provision of other services, and (3) include a detailed evaluation of services provided with assistance under title I of this Act, especially services to those with the most severe handicaps. [SECRETARIAL RESPONSIBILITIES [SEC. 405. (a) It shall be the function of the Secretary, with the assistance of agencies within the Department, other departments and agencies within the Federal Government, handicapped individuals, and public and private agencies and organizations, through the Office of the Secretary, to— [(1) prepare for submission to the Congress within eighteen months after the date of enactment of this Act, a long-range projection for the provision of comprehensive services to handicapped individuals and for programs of research, evaluation, and training related to such services and individuals; [(2) analyze on a continuing basis and include in his report submitted under section 404, a report on the results of such analysis, program operation to determine consistency with applicable provisions of law, progress toward meeting the goals and priorities set forth in the projection required under clause (1), and the effectiveness of all programs providing services to handicapped individuals, and the elimination of unnecessary dupli- cation and overlap in such programs under the jurisdiction of the Secretary; [(3) encourage coordinated and cooperative planning designed to produce maximum effectiveness, sensitivity, and continuity in the provision of services for handicapped individuals by all programs; [(4) develop means of promoting the prompt utilization of engineering and other scientific research to assist in solving problems in education (including promotion of the development of curriculums stressing barrier free design and the adoption of such curriculums by schools of architecture, design, and engineering), health, employment, rehabilitation, architectural, housing, and transportation barriers, and other areas so as to bring about full integration of handicapped individuals into all aspects of society; [(5) provide a central clearinghouse for information and resource availability for handicapped individuals through (A) the evaluation of systems within the Department of Health, Education, and Welfare, other departments and agencies of the Federal Gov- ernment, public and private agencies and organizations, and other sources, which provide (i) information and data regarding the location, provision, and availability of services and programs for handicapped individuals, regarding research and recent medical and scientific developments bearing on handicapping conditions (and their prevention, amelioration, causes, and cures), and regarding the current numbers of handicapped individuals and their needs, and (ii) any other such relevant information and data which the Secretary deems necessary; and (B) utilizing the results of such evaluation and existing information systems, the development within such Department of a coordinated system of information and data retrieval, which will have the capacity and responsibility to provide general and specific information regarding the information and data referred to in subclause (A) of this clause to the Congress, public and private agencies and organizations, handicapped individuals and their families, professionals in fields serving such individuals, and the general public. (b) In selecting personnel to assist in the performance of the functions assigned in sub- section (a) of this section, the Secretary shall give special emphasis to qualified handicapped individuals. [(c) the functions assigned to the Secretary by this section shall not be delegated to any persons not assigned to and operating in the office of the Secretary, except that he may estab- 44 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 lish an Office for Handicapped Individuals in the office of an appropriate Assistant Secretary of the Department of Health, Education, and Welfare to carry out such functions. In no event shall any functions under this section be further delegated to any persons with opera- tional responsibilities for carrying out functions authorized under any other section of this Act or under any other provision of law designed to benefit handicapped individuals. (d) There are authorized to be appropriated for carrying out this section $500,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $600,000 for the fiscal year ending June 30, 1976, and $600,000 for the fiscal years ending September 30, 1977, and Sep- tember 30, 1978. (e) Not later than thirty days after the appropriation Act containing sums for carrying out the provisions of this Act is enacted for each fiscal year, the Secretary shall set aside out of sums available to carry out this section or otherwise available pursuant to any other Act, an amount which he determines is necessary and appropriate to enable him to carry out the provisions of this section and shall notify the appropriate committees of the Congress of the amount SO set aside, the number of personnel necessary for such purpose, and the basis for his determination under this subsection and his reasons therefor. [SHELTERED WORKSHOP STUDY [SEC. 406. (a) The Secretary shall conduct an original study of the role of sheltered workshops in the rehabilitation and employment of handicapped individuals, including a study of wage payments in sheltered workshops. The study shall incorporate guidelines which are consistent with criteria provided in resolutions adopted by the Committee on Labor and Public Welfare of the United States Senate or the Committee on Education and Labor of the United States House of Representatives, or both. [(b) The study shall include site visits to sheltered workshops, interviews with handi- capped trainees or clients, and consultations with interested individuals and groups and State agencies designated pursuant to section 101. [(c) Any contracts awarded for the purpose of carrying out all or part of this study shall not be made with individuals or groups with a financial or other direct interest in sheltered workshops. [(d) The Secretary shall report to the Congress his findings and recommendations with respect to such study within twenty-four months after the date of enactment of this Act. [STATE ALLOCATION STUDY [SEC. 407. (a) The Secretary shall conduct a thorough study of the allotment of funds among the States for grants for basic vocational rehabilitation services authorized under part B of title I of this Act, including a consideration of- [(1) the needs of individuals requiring vocational rehabilitation services; (2) the financial capability of the States to furnish vocational rehabilitation assist- ance including, on a State-by-State basis, per capita income, per capita costs of services rendered, State tax rates, and the ability and willingness of a State to provide the non- Federal share of the costs of rendering such services; [(3) the continuing demand upon the States to furnish vocational rehabilitation services, together with a consideration of the factor that no State would receive less Federal financial assistance under such part than it received under section 2 of the Voca- tional Rehabilitation Act in the fiscal year immediately prior to the enactment of this Act. [(b) Not later than June 30, 1974, the Secretary shall report to the Congress his findings and recommendations, including recommendations for additional legislation, with respect to the study required by this section, which report shall include recommendations with respect to allotment of Federal funds among the States and the Federal share of the cost of furnishing vocational rehabilitation services by the States.] TITLE IV-NATIONAL COUNCIL ON THE HANDICAPPED ESTABLISHMENT OF NATIONAL COUNCIL ON THE HANDICAPPED SEC. 400. (a) There is established within the Department of Health, Education, and Welfare a National Council on the Handicapped (hereinafter in this title referred to as the REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 45 National Council), which shall be composed of fifteen members appointed by the President, by and with the advice and consent of the Senate. The members of the National Council shall be appointed so as to be representative of handicapped individuals, national organizations concerned with the handicapped, providers and administrators of services to the handicapped, individuals engaged in conducting medical or scientific research relating to handicapped indi- viduals, business concerns, and labor organizations. At least five members of the National Council shall be handicapped individuals, or parents or guardians of handicapped individuals. (b) (1) Members of the National Council shall be appointed to serve for terms of three years, except that of the members first appointed- (A) five shall serve for terms of one year, (B) five shall serve for terms of two years, and (C) five shall serve for terms of three years, as designated by the President at the time of appointment. (2) Members may be reappointed and may serve after the expiration of their terms until their successors have taken office. (3) Any member appointed to fill a vacancy occurring before the expiration of the term for which his predecessor was appointed shall be appointed only for the remainder of such term. (c) The President shall designate the Chairman from among the members appointed to the National Council. The National Council shall meet at the call of the Chairman, but not less often than four times each year. (d) Eight members of the National Council shall constitute a quorum and any vacancy in the National Council shall not affect its power to function. DUTIES OF NATIONAL COUNCIL SEC. 401. The National Council shall— (1) establish general policies for, and review the operation of, the National Institute of Handicapped Research; (2) provide advice to the Commissioner with respect to the policies of and conduct of the Rehabilitative Services Administration; (3) advise the Commissioner, the appropriate Assistant Secretary of the Depart- ment of Health, Education, and Welfare, and the Director of the National Institute of Handicapped Research on the development of the programs to be carried out under this Act; (4) review and evaluate on a continuing basis all policies, programs, and activities concerning handicapped individuals and persons with developmental disabilities con- ducted or assisted by Federal departments and agencies, including programs established or assisted under this Act or under the Developmental Disabilities Assistance and Bill of Rights Act, in order to assess the effectiveness of such policies, programs, and activi- ties in meeting the needs of handicapped individuals; (5) make recommendations to the Secretary, the Commissioner, and the Director of the National Institute of Handicapped Research respecting ways to improve research concerning handicapped individuals, the administration of services for handicapped individuals, and the methods of collecting and disseminating the findings of such research, and make recommendations for facilitating the implementation of programs based upon such findings; and (6) submit not later than March 31 of each year (beginning in 1980) an annual report to the Secretary, the Congress, and the President, containing (A) a statement of the current status of research concerning the handicapped in the United States, (B) a review of the activities of the Rehabilitation Services Administration and the National Institute of Handicapped Research, and (C) such recommendations respecting the items described in clauses (A) and (B) as the National Council considers appropriate. COMPENSATION OF NATIONAL COUNCIL MEMBERS SEC. 402. (a) Members of the National Council shall be entitled to receive compensation at a rate equal to the rate of basic pay payable for grade GS-18 of the General Schedule under 46 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 section 5332 of title 5, United States Code, including traveltime, for each day they are engaged in the performance of their duties as members of the National Council. (b) Members of the National Council who are full-time officers or employees of the United States shall receive no additional pay on account of their service on the National Council except for compensation for travel expenses as provided under subsection (c) of this section. (c) While away from their homes or regular places of business in the performance of services for the National Council members of the National Council shall be allowed travel expenses, including per diem in lieu of subsistence, in the same manner as persons employed intermittently in the Government service are allowed expenses under section 5703 of title 5, United States Code. STAFF OF NATIONAL COUNCIL SEC. 403. (a) The National Council may appoint, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, or the provi- sions of chapter 51 and subchapter III of chapter 53 of such title relating to classification and General Schedule pay rates, up to seven technical and professional employees to assist the National Council to carry out its duties. (b) The National Council may procure temporary and intermittent services to the same extent as is authorized by section 3109 (b) of title 5, United States Code (but at rates for individuals not to exceed the daily equivalent of the annual rate of basic pay payable for grade GS-18 of the General Schedule under section 5332 of title 5, United States Code). (c) The Administrator of General Services shall provide to the National Council on a reimbursable basis such administrative support services as the Council may request. ADMINISTRATIVE POWERS OF NATIONAL COUNCIL SEC. 404. (a) The National Council may prescribe such laws and rules as may be necessary to carry out its duties under this title. (b) The National Council may hold such hearings, sit and act at such times and places, take such testimony, and receive such evidence as it deems advisable. (c) The National Council may appoint advisory committees to assist the National Coun- cil in carrying out its duties. The members thereof shall serve without compensation. (d) The National Council may use the United States mails in the same manner and upon the same conditions as other departments and agencies of the United States. AUTHORIZATION OF APPROPRIATIONS SEC. 405. There are authorized to be appropriated to carry out this title such sums as may be necessary. TITLE V-MISCELLANEOUS EFFECT ON EXISTING LAW SEC. 500. (a) The Vocational Rehabilitation Act (29 U.S.C. 31 et seq.) is repealed ninety days after the date of enactment of this Act and references to such Vocational Rehabilitation Act in any other provision of law shall, ninety days after such date, be deemed to be references to the Rehabilitation Act of 1973. Unexpended appropriations for carrying out the Vocational Rehabilitation Act may be made available to carry out this Act, as directed by the President. Approved State plans for vocational rehabilitation, approved projects, and contractual arrangements authorized under the Vocational Rehabilitation Act will be recognized under comparable provisions of this Act so that there is no disruption of ongoing activities for which there is continuing authority. (b) The authorizations of appropriations in the Vocational Rehabilitation Act are hereby extended at the level specified for the fiscal year 1972 for the fiscal year 1973. EMPLOYMENT OF HANDICAPPED INDIVIDUALS SEC. 501. (a) There is established within the Federal Government an Interagency Com- mittee on Handicapped Employees (hereinafter in this section referred to as the "Commit- tee"), comprised of such members as the President may select, including the following (or their designees whose positions are Executive Level IV or higher) : the Chairman of the Civil REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 47 Service Commission, the Administrator of Veterans' Affairs, and the Secretaries of Labor and Health, Education, and Welfare. The Secretary of Health, Education, and Welfare and the Chairman of the Civil Service Commission shall serve as co-chairmen of the Committee. The resources of the President's Committees on Employment of the Handicapped and on Mental Retardation shall be made fully available to the Committee. It shall be the purpose and function of the Committee (1) to provide a focus for Federal and other employment of handicapped individuals, and to review, on a periodic basis, in cooperation with the Civil Service Commission, the adequacy of hiring, placement, and advancement practices with respect to handicapped individuals, by each department, agency, and instrumentality in the executive branch of Government and to insure that the special needs of such individuals are being met; and (2) to consult with the Civil Service Commission to assist the Commission to carry out its responsibilities under subsections (b), (c), and (d) of this section. On the basis of such review and consultation the Committee shall periodically make to the Civil Service Commission such recommendations for legislative and administrative changes as it deems necessary or desirable. The Civil Service Commission shall timely transmit to the appropriate committees of Congress any such recommendations. (b) Each department, agency, and instrumentality (including the United States Postal Service and the Postal Rate Commission) in the executive branch shall, within one hundred and eighty days after the date of enactment of this Act, submit to the Civil Service Com- mission and to the Committee an affirmative action program plan for the hiring, placement, and advancement of handicapped individuals in such department, agency, or instrumentality. Such plan shall include a description of the extent to which and methods whereby the special needs of handicapped employees are being met. Such plan shall be updated annually, and shall be reviewed annually and approved by the Commission, if the Commission determines, after consultation with the Committee, that such plan provides sufficient assurances, proce- dures and commitments to provide adequate hiring, placement, and advancement opportuni- ties for handicapped individuals. (c) The Civil Service Commission, after consultation with the Committee, shall develop and recommend to the Secretary for referral to the appropriate State agencies, policies and procedures which will facilitate the hiring, placement, and advancement in employment of individuals who have received rehabilitation services under State vocational rehabilitation programs, veterans' programs, or any other program for handicapped individuals, including the promotion of job opportunities for such individuals. The Secretary shall encourage such State agencies to adopt and implement such policies and procedures. (d) The Civil Service Commission, after consultation with the Committee, shall, on June 30, 1974, and at the end of each subsequent fiscal year, make a complete report to the appropriate committees of the Congress with respect to the practices of and achievements in hiring, placement, and advancement of handicapped individuals by each department, agency, and instrumentality and the effectiveness of the affirmative action programs required by subsection (b) of this section, together with recommendations as to legislation which have been submitted to the Civil Service Commission under subsection (a) of this section, or other appropriate action to insure the adequacy of such practices. Such report shall also include an evaluation by the Committee of the effectiveness of the Civil Service Commission's activi- ties under subsection (b) and (c) of this section. (e) An individual who, as a part of his individualized written rehabilitation program under a State plan approved under this Act, participates in a program of unpaid work experi- ence in a Federal agency, shall not, by reason thereof, be considered to be a Federal employee or to be subject to the provisions of law relating to Federal employment, including those relating to hours of work, rates of compensation, leaves, unemployment compensation, and Federal employee benefits. (f) (1) The Secretary of Labor and the Secretary of Health, Education, and Welfare are authorized and directed to cooperate with the President's Committee on Employment of the Handicapped in carrying out its functions. (2) In selecting personnel to fill all positions on the President's Committee on Employ- ment of the Handicapped, special consideration shall be given to qualified handicapped individuals. ARCHITECTURAL AND TRANSPORTATION BARRIERS COMPLIANCE BOARD [SEC. 502. (a) There is established within the Federal Government the Architectural and Transportation Barriers Compliance Board (hereinafter referred to as the "Board") 48 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 which shall be composed of the heads of each of the following departments or agencies (or their designees whose positions are Executive Level IV or higher) : [(1) Department of Health, Education, and Welfare; [(2) Department of Transportation; [(3) Department of Housing and Urban Development; [(4) Department of Labor; [(5) Department of the Interior; [(6) Department of Defense; [(7) General Services Administration; [(8) Veterans' Administration. The Secretary of Health, Education, and Welfare shall be the Chairman of the Board, and the Board shall appoint, upon recommendation of the Secretary, a Consumer Advisory Panel, a majority of the members of which shall be handicapped individuals, to provide guidance, advice, and recommendations to the Board in carrying out its functions.] SEC. 502. (a) (1) There is established within the Federal Government the Architectural and Transportation Barriers Compliance Board (hercinafter referred to as the "Board") which shall be composed as follows: (A) Eleven members shall be appointed by the President from among members of the general public of whom five shall be handicapped individuals. (B) The remaining members shall be the heads of each of the following departments or agencies (or their designees whose positions are executive level IV or higher) : (i) Department of Health, Education, and Welfare. (ii) Department of Transportation. (iii) Department of Housing and Urban Development. (iv) Department of Labor. (v) Department of the Interior. (vi) Department of Defense. (vii) Department of Justice. (viii) General Services Administration. (ix) Veterans' Administration. (x) United States Postal Service. The President shall appoint the first Chairman of such Board who shall serve for a term of not more than two years; thereafter, the Chairman shall be elected by a vote of a majority of the Board for a term of one year. (2) The term of office of each appointed member of the Board shall be three years; except that (i) the members first taking office shall serve, as designated by the President at the time of appointment, four for a term of one year, four for a term of two years, and three for a term of three years, and (ii) any member appointed to fill a vacancy shall serve for the remainder of the term for which his predecessor was appointed. (3) If any appointed member of the Board becomes a Federal employee, such member may continue as a member of the Board for not longer than the sixty-day period beginning on the date he becomes such an employee. (4) No individual appointed under paragraph (1) (A) of this subsection who has served as a member of the Board may be reappointed to the Board more than once unless such indi- vidual has not served on the Board for a period of two years prior to the effective date of such individual's appointment. (5) (A) Members of the Board who are not regular full-time employees of the United States shall, while serving on the business of the Board, be entitled to receive compensation at rates fixed by the President, but not to exceed the daily rate prescribed for GS-18 under section 5332 of title 5, United States Code, including traveltime, for each day they are engaged in the performance of their duties as members of the Board; and shall be entitled to reim- bursement for travel, subsistence, and other necessary expenses incurred by them in carrying out their duties under this section. (B) Members of the Board who are employed by the Federal Government shall serve without compensation, but shall be reimbursed for travel, subsistence, and other necessary expenses incurred by them in carrying out their duties under this section. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 49 (b) It shall be the function of the Board to: [(1) insure compliance with the standards prescribed by the General Services Administration, the Department of Defense, and the Department of Housing and Urban Development pursuant to the Architectural Barriers Act of 1968 (Public Law 90-480), as amended by the Act of March 5, 1970 (Public Law 91-200) ;] (1) insure compliance with the standards prescribed pursuant to the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968 (including the application of that Act to the United States Postal Service) including but not limited to enforcing all standards under that Act, and insuring that all waivers and modifications of standards are based upon findings of fact and are not inconsistent with the provisions of such Act and this section; (2) investigate and examine alternative approaches to the architectural, transportation, communication, and attitudinal barriers confronting handicapped individuals, particularly with respect to telecommunication devices, public buildings and monuments, parks and park- lands, public transportation (including air, water, and surface transportation whether inter- state, foreign, intrastate, or local), and residential and institutional housing; (3) determine what measures are being taken by Federal, State, and local governments and by other public or nonprofit agencies to eliminate the barriers described in clause (2) of this subsection; (4) promote the use of the International Accessibility Symbol in all public facilities that are in compliance with the standards prescribed by the Administrator of the General Services Administration, the Secretary of Defense, and the Secretary of Housing and Urban Develop- ment pursuant to the Architectural Barriers Act of 1968; (5) make to the President and to Congress reports which shall describe in detail the results to its investigations under clauses (2) and (3) of this subsection; [and] (6) make to the President and to the Congress such recommendations for legislation and administration as it deems necessary or desirable to eliminate the barriers described in clause (2) of this subsection| ; (7) establish minimum guidelines and requirements for the standards issued pursuant to the Act of August 12, 1968, as amended, commonly known as the Architectural Barriers Act of 1968; and (8) insure that public conveyances, including rolling stock, are readily accessible to, and usable by, physically handicapped persons. (c) The Board shall also (1) (A) determine how and to what extent transportation barriers impede the mobility of handicapped individuals and aged handicapped individuals and consider ways in which travel expenses in connection with transportation to and from work for handicapped individuals can be met or subsidized when such individuals are unable to use mass transit systems or need special equipment in private transportation, and (B) consider the housing needs of handicapped individuals; (2) determine what measures are being taken, especially by public and other nonprofit agencies and groups having an interest in and a capacity to deal with such problems, (A) to eliminate barriers from public trans- portation systems (including vehicles used in such systems), and to prevent their incorpora- tion in new or expanded transportation systems and (B) to make housing available and accessible to handicapped individuals or to meet sheltered housing needs; and (3) prepare plans and proposals for such further actions as may be necessary to the goals of adequate transportation and housing for handicapped individuals, including proposals for bringing together in a cooperative effort, agencies, organizations, and groups already working toward such goals or whose cooperation is essential to effective and comprehensive action. (d) (1) In carrying out its functions under this Act, the Board shall, directly or through grants to [or contracts with] public or private nonprofit organizations or contracts with pri- vate nonprofit or for-profit organizations, carry out its functions under subsections (b) and (c) of this section, and shall conduct investigations, hold public hearings, and issue such orders as it deems necessary to insure compliance with the provisions of the Acts cited in subsection (b). [The] Except as provided in paragraph (3) of subsection (e), the provisions of subchapter II of chapter 5, and chapter 7 of title 5, United States Code, shall apply to proce- dures under this section, and an order of compliance issued by the Board shall be a final order for purposes of judicial review. Any such order affecting any Federal department, agency, or instrumentality of the United States shall be final and binding on such department, agency, or instrumentality. An order of compliance may include the withholding or suspension of Federal funds with respect to any building, or public conveyance or rolling stock found not to be in compliance with standards [prescribed pursuant to the Acts cited in subsection (b) of this section. enforced under this section. Pursuant to chapter 7 of title 5, United States Code, any complainant or participant in a proceeding under this subsection may obtain review of a final order issued in such proceeding. (2) The executive director is authorized, at the direction of the Board- (A) to bring a civil action in any appropriate United States district court to enforce, in whole or in part, any final order of the Board under this subsection; and 50 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (B) to intervene, appear, and participate, or to appear as amicus curiae, in any court of the United States or in any court of a State in civil actions which related to this section or to the Architectural Barriers Act of 1968. Except as provided in section 518 (a) of title 28, United States Code, relating to litigation before the Supreme Court, the executive director may appear for and represent the Board in any civil litigation brought under this section. (3) The Board, in consultation and coordination with other concerned Federal depart- ments and agencies and agencies within the Department of Health, Education, and Welfare, shall develop standards and provide appropriate technical assistance to any public or private activity, person, or entity affected by regulations prescribed pursuant to this title with respect to overcoming architectural, transportation, and communication barriers. Any funds appro- priated to any such department or agency for the purpose of providing such assistance may be transferred to the Board for the purpose of carrying out this paragraph. The Board may arrange to carry out its responsibilities under this paragraph through such other depart- ments and agencies for such periods as the Board determines is appropriate. In carrying out its technical assistance responsibilities under this paragraph, the Board shall establish a procedure to insure separation of its compliance and technical assistance responsibilities under this section. (e) (1) There shall be appointed by the Board an executive director and such other pro- fessional and clerical personnel as are necessary to carry out its functions under this chapter. The Board is authorized to appoint as many administrative law judges as are necessary for proceedings required to be conducted under this section. The provisions applicable to admin- istrative law judges appointed under section 3105 of Title 5 shall apply to administrative law judges appointed under this subsection. (2) The Executive Director shall exercise general supervision over all personnel em- ployed by the Board (other than hearing examiners and their assistants). The Executive Director shall have final authority on behalf of the Board, with respect to the investigation of alleged noncompliance in the issuance of formal complaints before the Board, and shall have such other duties as the Board may prescribe. (3) For the purpose of this section, an order of compliance issued by a hearing examiner shall be deemed to be an order of the Board and shall be the final order for the purpose of judicial review. (f) The departments or agencies specified in subsection (a) of this section shall make available to the Board such technical, administrative, or other assistance as it may require to carry out its functions under this section, and the Board may appoint such other advisers, technical experts, and consultants as it deems necessary to assist it in carrying out its func- tions under this section. Special advisory and technical experts and consultants appointed pursuant to this subsection shall, while performing their functions under this section, be entitled to receive compensation at rates fixed by the Secretary, but not exceeding the daily pay rate, for a person employed as a GS-18 under section 5332 of title 45, United States Code, including traveltime, and while serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of such title 5 for persons in the Government service employed intermittently. (g) The Board shall, at the end of each fiscal year, report its activities during the preced- ing fiscal year to the Congress. Such report shall include an assessment of the extent of com- pliance with the Acts cited in subsection (b) of this section, along with a description and analysis of investigations made and actions taken by the Board, and the reports and recom- mendations described in clauses (5) and (6) of subsection (b) of this section. The Board shall prepare two final reports of its activities under subsection (c). One such report shall be on its activities in the field of transportation barriers to handicapped individuals, and the other such report shall be on its activities in the field of the housing needs of handicapped individuals. The Board shall, not later than September 30, 1975, submit each such report, together with its recommendations, to the President and the Congress. The Board shall also prepare for such submission an interim report of its activities in each such field within 18 months after the date of enactment of this Act. [(h) There are authorized to be appropriated for the purpose of carrying out the duties and functions of the Board under this section $1,000,000 each for the fiscal years ending June 30, 1974, and June 30, 1975, $1,500,000 for the fiscal year ending June 30, 1976, and $1,500,000 for the fiscal years ending September 30, 1977 and September 30, 1978.] (h) (1) Within one year following the enactment of this subsection, the Board shall submit to the President and the Congress a report containing an assessment of the amounts REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 51 required to be expended by States and by political subdivisions thereof to provide handicapped individuals with full access to all programs and activities receiving Federal assistance. (2) The Board may make grants to, or enter into contracts with, public or private orga- nizations to carry out its duties under subsections (b) and (c). The Board may also make grants to any designated State unit for the purpose of conducting studies to provide the cost assessments required by paragraph (1). Before including in such report the findings of any study conducted for the Board under a grant or contract to provide the Board with such cost assessments, the Board shall take all necessary steps to validate the accuracy of any such findings. (i) There are authorized to be appropriated for the purpose of carrying out the duties and functions of the Board under this section such sums as may be necessary for each fiscal year ending before October 1, 1982, but in no event shall the amount appropriated for any one fiscal year exceed $3,000,000. EMPLOYMENT UNDER FEDERAL CONTRACTS SEC. 503. (a) Any contract in excess of $2,500 entered into by any Federal department or agency for the procurement of personal property and nonpersonal services (including con- struction) for the United States shall contain a provision requiring that, in employing persons to carry out such contract the party contracting with the United States shall take affirmative action to employ and advance in employment qualified handicapped individuals [as defined in section 7(6)] as defined in section 7 (7). The provisions of this section shall apply to any subcontract in excess of $2,500 entered into by a prime contractor in carrying out any con- tract for the procurement of personal property and nonpersonal services (including construc- tion) for the United States. The President shall implement the provisions of this section by promulgating regulations within ninety days after the date of enactment of this section. (b) If any handicapped individual believes any contractor has failed or refuses to com- ply with the provisions of his contract with the United States, relating to employment of handicapped individuals, such individual may file a complaint with the Department of Labor. The Department shall promptly investigate such complaint and shall take such action thereon as the facts and circumstances warrant, consistent with the terms of such contract and the laws and regulations applicable thereto. (c) The requirements of this section may be waived, in whole or in part, by the President with respect to a particular contract or subcontract, in accordance with guidelines set forth in regulations which he shall precribe, when he determines that special circumstances in the national interest so require and states in writing his reasons for such determination. NONDISCRIMINATION UNDER FEDERAL GRANTS AND PROGRAMS SEC. 504. No otherwise qualified handicapped individual in the United States, [as defined in section 7 (6) as defined in section 7(7), shall, solely by reason of his handicap, be excluded from the participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance[.: or under any program or activity conducted by any Executive agency or by the United States Postal Service. The head of each such agency shall promulgate such regulations as may be necessary to carry out the amendments to this section made by the Rehabilitation, Comprehensive Services, and Devel- opmental Disabilities Act of 1978. Copies of any proposed regulation shall be submitted to appropriate authorizing committees of the Congress, and such regulation may take effect no earlier than the thirtieth day after the date on which such regulation is so submitted to such committees. REMEDIES AND ATTORNEYS' FEES SEC. 505. (a) (1) The remedies, procedures, and rights set forth in section 717 of the Civil Rights Act of 1964 (42 U.S.C. 2000e-16), including the application of sections 706 (f) through (k) (42 U.S.C. 2000e-5 (f) through (k)), shall be available, with respect to any complaint under section 501 of this Act, to any employee. or applicant for employment ag- grieved by the final disposition of such complaint, or by the failure to take final action on such complaint. In fashioning an equitable or affirmative action remedy under such section, a court may take into account the reasonableness of the cost of any necessary work place accomoda- tion, and the availability of alternatives therefor or other appropriate relief in order to achieve an equitable and appropriate remedy. (2) The remedies, procedures, and rights set forth in title VI of the Civil Rights Act of 1964 shall be available to any person aggrieved by any act or failure to act by any recipient of Federal assistance or Federal provider of such assistance under section 504 of this Act. 52 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (b) In any action or proceeding to enforce or charge a violation of a provision of this title, the court, in its discretion, may allow the prevailing party, other than the United States, a reasonable attorney's fee as part of the costs. SECRETARIAL RESPONSIBILITIES SEC. 506. (1) The Secretary may provide directly or by contract with State vocational rehabilitation agencies or experts or consultants or groups thereof, technical assistance- (A) to persons operating rehabilitation facilities; and (B) with the concurrence of the Board established by section 502, to any public or nonprofit agency, institution, or organization; for the purpose of assisting such persons or entities in removing architectural, transportation, or communication barriers. Any concurrence of the Board under this paragraph shall reflect its consideration of the cost studies carried out by States under section 502(c)(1). (2) Any such experts or consultants, while serving pursuant to such contracts, shall be entitled to receive compensation at rates fixed by the Secretary, but not exceeding the daily equivalent of the rate of basic pay payable for grade GS-18 of the General Schedule, under section 5332 of title 5, United States Code, including traveltime, and while so serving away from their homes or regular places of business, they may be allowed travel expenses, includ- ing per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code, for persons in the Government service employed intermittently. (3) The Secretary, with the concurrence of the Board and the President may provide, directly or by contract, financial assistance to any public or nonprofit agency, institution, or organization for the purpose of removing architectural, transportation, and communication barriers. No assistance may be provided under this paragraph until a study demonstrating the need for such assistance has been conducted and submitted under section 502(h)(2) of this title. (4) In order to carry out this section, there are authorized to be appropriated such sums as may be necessary. INTERAGENCY COORDINATING COUNCIL SEC. 507. There shall be established an Interagency Coordinating Council (hereinafter referred to in this section as the "Council") composed of the Secretary of Health, Education, and Welfare, the Secretary of Labor, the Attorney General, the Chairman of the United States Civil Service Commission, the Chairman of the Equal Employment Opportunity Com- mission, and the Chairman of the Architectural and Transportation Barriers Compliance Board. The Council shall have the responsibility for developing and implementing agreements, policies, and practices designed to maximize effort, promote efficiency, and eliminate conflict, competition, duplication, and inconsistencies among the operations, functions, and jurisdic- tions of the various departments, agencies, and branches of the Federal Government responsi- ble for the implementation and enforcement of the provisions of this title, and the regulations prescribed thereunder. On or before July 1 of each year, the Council shall transmit to the President and to the Congress a report of its activities, together with such recommendations for legislative or administrative changes as it concludes are desirable to further promote the purposes of this section. Nothing in this section shall impair any responsibilities assigned by any Executive Order to any Federal department, agency, or instrumentality to act as a lead Federal agency with respect to any provisions of this title. TITLE VI-EMPLOYMENT OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS SHORT TITLE SEC. 601. This title may be cited as the "Employment Opportunities for Handicapped Individuals Act". PART A-COMMUNITY SERVICE EMPLOYMENT PILOT PROGRAMS FOR HANDICAPPED INDIVIDUALS ESTABLISHMENT OF PILOT PROGRAM SEC. 611. (a) In order to promote useful opportunities in community service activities for handicapped individuals who have poor employment prospects, the Secretary of Labor (hereinafter in this part referred to as the "Secretary") is authorized to establish a com- munity service employment pilot program for handicapped individuals. For purposes of this part, the term "eligible individuals" means persons who are handicapped individuals (as de- REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 53 fined in section 7(7) of this Act) and who are referred to programs under this part by designated State units. (b) (1) The Secretary may enter into agreements with public or private nonprofit agen- cies or organizations including national organizations, agencies of a State government or a political subdivision of a State (having elected or duly appointed governing officials), or a combination of such political subdivisions, or tribal organizations in order to carry out the pilot program referred to in subsection (a). Such agreements may include provisions con- sistent with subsection (c) for the payment of the costs of projects developed by such organi- zations and agencies in cooperation with the Secretary. No payment shall be made by the Secretary toward the cost of any such project unless the Secretary determines that: (A) Such project will provide employment only for eligible individuals, except that if eligible individuals are not available to serve as technical, administrative, or super- visory personnel for a project then such personnel may be recruited from among other individuals. (B) Such project will provide employment for eligible individuals in the community in which such individuals reside, or in nearby communities. (C) Such project will employ eligible individuals in services related to publicly owned and operated facilities and projects, or projects sponsored by organizations, other than political parties, exempt from taxation under section 501 (c) (3) of the In- ternal Revenue Code of 1954, except for projects involving the construction, operation, or maintenance of any facility used or to be used as a place for sectarian religious in- struction or worship. (D) Such project will contribute to the general welfare of the community in which eligible individuals are employed under such project. (E) Such project (i) will result in an increase in employment opportunities over those opportunities which would otherwise be available, (ii) will not result in any dis- placement of currently employed workers (including partial displacement, such as a reduction in the hours of nonovertime work or wages or employment benefits), and (iii) will not impair existing contracts or result in the substitution of Federal funds for other funds in connection with work that would otherwise. be performed. (F) Such project will not employ any eligible individual to perform work which is the same or substantially the same as that performed by any other person who is on layoff from employment with the agency or organization sponsoring such project. (G) Such project will utilize methods of recruitment and selection (including the listing of job vacancies with the State agency units designated under section 101 (a) (2) (A) to administer vocational rehabilitation services under this Act) which will assure that the maximum number of eligible individuals will have an opportunity to participate in the project. (H) Such project will provide for (i) such training as may be necessary to make the most effective use of the skills and talents of individuals who are participating in the project, and (ii) during the period of such training, a reasonable subsistence allowance for such individuals and the payment of any other reasonable expenses related to such training. (I) Such project will provide safe and healthy working conditions for any eligible individual employed under such project and will pay any such individual at a rate of pay not lower than the rate of pay described in paragraph (2). (J) Such project will be established or administered with the advice of (i) persons competent in the field of service in which employment is being provided, and (ii) persons who are knowledgeable with regard to the needs of handicapped individuals. (K) Such project will pay any reasonable costs for work-related expenses, trans- portation, and attendant care incurred by eligible individuals employed under such project in accordance with regulations prescribed by the Secretary. (L) Such project will provide appropriate placement services for employees under the project to assist them in locating unsubsidized employment when the Federal assist- ance for the project terminates. (2) The rate of pay referred to in subparagraph (I) of paragraph (1) is the highest of the following: 54 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (A) the prevailing rate of pay for persons employed in similar occupations by the same employer. (B) The minimum wage which would be applicable to the employee under the Fair Labor Standards Act of 1938 if such employee were not exempt from such Act under section 13 thereof. (C) The State or local minimum wage for the most nearly comparable covered employment. The Department of Labor shall not issue any certificate of exemption under section 14(c) of the Fair Labor Standards Act of 1938 with respect to any person employed in a project under this section. (c) (1) The Secretary may pay not to exceed 90 percent of the cost of any project which is the subject of an agreement entered into under subsection (b). Notwithstanding the pre- ceding sentence, the Secretary may pay all of the costs of any such project which is (A) an emergency or disaster project, or (B) a project located in an economically depressed area, as determined by the Secretary in consultation with the Secretary of Commerce and the Director of the Community Services Administration. (2) The non-Federal share of any project under this part may be in cash or in kind. In determining the amount of the non-Federal share, the Secretary may attribute fair market value to services and facilities contributed from non-Federal sources. (d) Payments under this part may be made in advance or by way of reimbursement, and in such installments as the Secretary may determine. ADMINISTRATION SEC. 612. (a) In order to effectively carry out the provisions of this part, the Secretary shall, through the Commissioner of the Rehabilitation Services Administration, consult with any designated State unit with regard to- (1) the localities in which community service projects of the type authorized by this part are most needed; (2) the employment situations and types of skills possessed by eligible individuals in such localities; and (3) potential projects suitable for funding in such localities. (b) The Secretary shall coordinate the pilot program established under this part with programs authorized under the Emergency Jobs and Unemployment Assistance Act of 1974, the Comprehensive Employment and Training Act of 1973, the Community Services Act of 1974, and the Emergency Employment Act of 1971. Appropriations under this part may not be used to carry out any program under the Acts referred to in the preceding sentence. (c) In carrying out this part, the Secretary may, with the consent of any other Federal, State, or local agency, use the services, equipment, personnel, and facilities of such agency with or without providing such agency with reimbursement and may use the services, equip- ment, and facilities of any other public or private entity on a similar basis. (d) Within one hundred and eighty days after the effective date of this part, the Secre- tary shall issue and publish in the Federal Register such regulations as may be necessary to carry out this part. (e) The Secretary shall not delegate any function of the Secretary under this part to any other department or agency of the Federal Government. PARTICIPANTS NOT FEDERAL EMPLOYEES SEC. 613. (a) Eligible individuals who are employed in any project funded under this part shall not be considered to be Federal employees as a result of such employment and shall not be subject to the provisions of part III of title 5, United States Code. (b) No contract shall be entered into under this part with a contractor who is, or whose employees are, under State law, exempted from operation of any State workmen's compensa- tion law generally applicable to employees, unless the contractor shall undertake to provide for persons to be employed under such contract, through insurance by a recognized carrier or by self-insurance authorized by State law, workmen's compensation coverage equal to that provided by law for covered employment. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 55 (c) No part of the wages, allowances, or reimbursement for transportation and attendant care costs made available to an eligible individual employed in any projećt funded under this part shall be treated as income or benefits for the purpose of any other program or provision of State 01" Federal law, unless the Secretary makes a case by case determination that disallow- ance of such income or benefits is inequitable or does not carry out the purposes of this title. INTERAGENCY COOPERATION SEC. 614. (a) The Secretary shall consult with, and obtain the written views of, the Commissioner of the Rehabilitation Services Administration before establishing rules or general policy in the administration of this part. (b) The Secretary shall consult and cooperate with the Director of the Community Serv- ices Administration, the Secretary of Health, Education, and Welfare, and the heads of other Federal agencies carrying out related programs, in order to achieve maximum coordination between such programs and the program established under this part. Each Federal agency shall cooperate with the Secretary in disseminating information relating to the availability of assistance under this part and in identifying individuals eligible for employment in projects assisted under this part. EQUITABLE DISTRIBUTION OF ASSISTANCE SEC. 615. (a) (1) Preference in awarding grants or contracts under this part shall be given to organizations of proven ability in providing employment services to handicapped individuals under this program and similar programs. The Secretary, in awarding grants and contracts under this section, shall, to the extent feasible, assure an equitable distribution of activities under such grants and contracts among the States, taking into account the needs of underserved States. (2) The Secretary shall allot for projects within each State the sums appropriated for any fiscal year under section 617 so that each State will receive an amount which bears the same ratio to such sums as the population of the State bears to the population of all the States. (b) The amount allotted for projects within any State under subsection (a) for any fiscal year which the Secretary determines will not be required for such year shall be reallotted, from time to time and on such dates during such year as the Secretary may fix, to project within other States in proportion to the original allotments to projects within such States under subsection (a) for such' year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum the Secretary estimates that proj- ects within such State need and will be able to use for such year. The total of such reductions shall be similarly reallotted among the States whose proportionate amounts were not so reduced. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) for such year. (c) The amount apportioned for projects within each State under subsection (a) shall be apportioned among areas within each such State in an equitable manner, taking into con- sideration (1) the proportion which eligible individuals in each such area bears to the total number of such individuals, respectively, in that State, and (2) the relative distribution of such individuals residing in rural and urban areas within the State. DEFINITIONS SEC. 616. For purposes of this part- (1) the term "community service" means social, health, welfare, and educational services, legal and other counseling services and assistance, including tax counseling and assistance and financial counseling, and library, recreational, and other similar services; conservation, maintenance, or restoration of natural resources; community betterment or beautification; antipollution and environmental quality efforts; economic develop- ment; and such other services essential and necessary to the community as the Secretary, by regulation, may prescribe; (2) the term "pilot program" means the community service employment program for handicapped individuals established under this part; and (3) the term "attendant care" means interpreter services for the deaf, reader serv- ices for the blind, and services provided to assist mentally retarded individuals to perform duties of employment. AUTHORIZATION OF APPROPRIATIONS SEC. 617. There are authorized to be appropriated to carry out the purposes of this part $35,000,000 for the fiscal year ending September 30, 1979, $50,000,000 for the fiscal year 56 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 ending September 30, 1980, $75,000,000 for the fiscal year ending September 30, 1981, and $100,000,000 for the fiscal year ending September 30, 1982. PART B-PROJECTS WITH INDUSTRY AND BUSINESS OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS PROJECTS WITH INDUSTRY SEC. 621. (a) (1) The Commissioner, in consultation with the Secretaries of Labor and Commerce and with designated State units may enter into agreements with individual em- ployers and other entities to establish jointly financed projects which_ (A) shall provide handicapped individuals with training and employment in a realistic work setting in order to prepare them for employment in the competitive market; (B) shall provide handicapped individuals with such supportive services as may be required to permit them to continue to engage in the employment for which they have received training under this section; and (C) shall, to the extent appropriate, expand job opportunities for handicapped individuals by providing for (i) the development and modification of jobs to accom- modate the special needs of such individuals, (ii) the distribution of special aids, appli- ances, or adapted equipment to such individuals, (iii) the establishment of appropriate job placement services, and (iv) the modification of any facilities or equipment of the employer which are to be used primarily by handicapped individuals. (2) Any agreement under this subsection shall be jointly developed by the Commissioner, the prospective employer, and, to the extent practicable, the appropriate designated State unit and the handicapped individuals involved. Such agreements shall specify the terms of training and employment under the project, provide for the payment by the Commissioner of part of the costs of the project (in accordance with subsection (e)), and contain the items required under subsection (b) and such other provisions as the parties to the agreement con- sider to be appropriate. (b) No payment shall be made by the Commissioner under any agreement with an em- ployer entered into under subsection (a) unless such agreement- (1) provides assurances that handicapped individuals placed with such employer shall receive at least the applicable minimum wage; (2) specifies that the Commissioner, together with the designated State unit has the right to review any termination of employment, and that, in the event such termina- tion occurs less than three years after the date of the commencement of employment of the handicapped individual involved, the Commissioner shall be entitled to require the repayment of a portion of the funds made available to the employer if such termina- tion is without reasonable cause, as determined by the Commissioner in consultation with such designated State unit; and (3) provides assurances that any handicapped individual placed with such employer shall be afforded terms and benefits of employment equal to those which are afforded to other employees of such employer, and that such handicapped individuals shall not be unreasonably segregated from other employees. (c) Payments under this section with respect to any project may not exceed 80 per centum of the costs of the project. BUSINESS OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS SEC. 622. The Commissioner, in consultation with the Secretaries of Labor and Com- merce may make grants to, or enter into contracts with, handicapped individuals to enable them to establish or operate commercial or other enterprises to develop or market their products or services. Within ninety days after the effective date of this section, the Com- missioner shall promulgate regulations to carry out this section, including regulations speci- fying (1) the maximum amount of money which may be provided under this section to any participant, and (2) procedures for certification, by designated State units, of individuals eligible to participate in any program under this section. AUTHORIZATION OF APPROPRIATIONS SEC. 623. There are authorized to be appropriated such sums as may be necessary to carry out the provisions of this part for each fiscal year beginning before October 1, 1982. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 57 TITLE VII-COMPREHENSIVE SERVICES FOR INDEPENDENT LIVING PART A-COMPREHENSIVE SERVICES PURPOSE SEC. 701. The purpose of this title is to authorize grants (supplementary to grants for vocational rehabilitation services under title I) to assist States in providing comprehensive services for independent living designed to meet the current and future needs of individuals whose disabilities are so severe that they do not presently have the potential for employment but may benefit from vocational rehabilitation services which will enable them to live and function independently. ELIGIBILITY SEC. 702. (a) Services may be provided under this title to any individual whose ability to engage or continue in employment, or whose ability to function independently in his family or community, is so limited by the severity of his disability that vocational or comprehensive rehabilitation services appreciably more costly and of appreciably greater duration than those vocational or comprehensive rehabilitation services required for the rehabilitation of a handi- capped individual are required to improve significantly either his ability to engage in employ- ment or his ability to function independently in his family or community. Priority of services under this part shall be given to individuals not served by other provisions of this Act. (b) For purposes of this title, the term 'comprehensive services for independent living' means any appropriate vocational rehabilitation service (as defined under title I of this Act) and any other service that will enhance the ability of a handicapped individual to live inde- pendently and function within his family and community and, if appropriate, secure and maintain appropriate employment. Such services may include any of the following: counsel- ing services, including psychological, psychotherapeutic, and related services; housing incidental to the purpose of this section (including appropriate accommodations to and modifi- cations of any space to serve handicapped individuals); appropriate job placement services; transportation; attendant care; physical rehabilitation; therapeutic treatment; needed prostheses and other appliances and devices; health maintenance; recreational activities; services for children of preschool age, including physical therapy, development of language and communication skills, and child development services; and appropriate preventive serv- ices to decrease the needs of individuals assisted under the program for similar services in the future. ALLOTMENTS SEC. 703. (a) (1) From sums made available for each fiscal year for the purposes of allot- ments under this subpart, each State whose comprehensive services plan has been approved under section 705 shall be entitled to an allotment of an amount bearing the same ratio to such sums as the population of the State bears to the population of all States. Except as pro- vided in paragraph (2), the allotment to any State under the preceding sentence shall be not less than $200,000 or one-third of 1 percent of the sums made available for the fiscal year for which the allotment is made, whichever is greater, and the allotment of any State under this section for any fiscal year which is less than $200,000 or one-third of 1 percent of such sums shall be increased to the greater of the two amounts. (2) For purposes of this subsection, Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands shall not be con- sidered as States and shall each be allotted not less than one-eighth of 1 percent of the amounts made available for purposes of this subpart for the fiscal year for which the allotment is made. (b) Amounts necessary to increase the allotments of States under paragraph (1) or to provide allotments under paragraph (2) shall be derived by proportionately reducing the allotments of the remaining States under paragraph (1), but with such adjustments as may be necessary to prevent the allotment of any such remaining States from being thereby reduced to less than the greater of $200,000 or one-third of 1 percent of the sums made available for purposes of this subpart for the fiscal year for which the allotment is made. (c) Whenever the Commissioner determines that any amount of an allotment to a State for any fiscal year will not be utilized by such State in carrying out the purposes of this title, he shall make such amount available for carrying out the purposes of this section to one or more of the States which he determines will be able to use additional amounts during such year for carrying out such purposes. Any amount made available to a State for any fiscal year pursuant to the preceding sentence shall, for the purposes of this section, be regarded 58 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 as an increase in the State's allotment (as determined under the preceding provisions of this section) for such year. PAYMENTS TO STATES FROM ALLOTMENTS SEC. 704. (a) From each State's allotment for a fiscal year under section 703, the State shall be paid the Federal share of the expenditures incurred during such year under its State plan approved under section 705. Such payments may be made (after necessary adjustments on account of previously made overpayments or underpayments) in advance or by way of reimbursement, and in such installments and on such conditions as the Commissioner may determine. (b) (1) The Federal share with respect to any State for any fiscal year shall be 90 percent of the expenditures incurred by the State during such year under its State plan approved under section 705. (2) The non-Federal share of the cost of any project assisted by an allotment under this subpart may be provided in kind. (3) For the purpose of determining the Federal share with respect to any State, expendi- tures by a political subdivision of such State shall, subject to regulations prescribed by the Commissioner, be regarded as expenditures by such State. STATE PLANS SEC. 705. (a) In order to be eligible for grants under this part, a State shall submit to the Commissioner a State plan for a three-year period for providing comprehensive services for independent living to severely handicapped individuals, and, upon request of the Com- missioner, shall make such annual revisions in the plan as may be necessary. Each such plan shall- (1) designate the designated State unit of such State as the agency to administer the programs funded under this part; (2) demonstrate that the State has studied and considered a wide variety of methods for providing comprehensive services to severely handicapped individuals (such as regional and community centers, halfway houses, and patient-release programs) and that the State will provide, to the maximum extent feasible, meaningful alternatives to institutionalization; (3) (A) describe the quality, scope, and extent of the comprehensive services for independent living to be provided to handicapped individuals under this part, and specify the State's goals and plans with respect to the distribution of funds received under part B of this title; and (B) provide satisfactory assurances that facilities used in connection with the delivery of services assisted under this part and part B of this title will comply with the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968; (4) provide assurances that (A) an individualized written rehabilitation program meeting the requirements of section 102 will be developed for each handicapped individ- ual eligible for independent living services under this part; (B) such services will be provided in accordance with such program; and (C) that such program be coordinated with the individualized written rehabilitation program, habilitation plan, or education program for such individual required under section 102 of this Act, section 112 of the Developmental Disabilities Services and Facilities Construction Act, and sections 612 (4) and 614 (a) (5) of the Education for All Handicapped Children Act of 1975, respectively; (5) provide assurances that the State will conduct periodic reviews of the progress of individuals assisted under this title to determine whether services provided to such individuals should be continued, modified, or discontinued; (6) provide assurances that special efforts will be undertaken to provide technical assistance to urban and rural poverty areas with respect to the provision of compre- hensive services for severely handicapped individuals and describe such efforts; (7) provide assurances that handicapped individuals shall have a substantial role in developing the State plan; and (8) provide assurances that not less than 20 percent of the funds received by a State under this part shall be used to make grants to local public agencies and private non- profit organizations for the conduct of independent living services except that the Com- missioner may waive the requircment of this clause if the Commissioner determines, on REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 59 the basis of evidence submitted by the State, that such State cannot feasibly use the funds required to be expended under this section for the purposes of this clause; and (9) contain such other information, and be submitted in such form and in accordance with such procedures, as the Commissioner may require. (b) As soon as practicable after receiving a State plan submitted under subsection (a), the Commissioner shall approve or disapprove such plan. The Commissioner shall approve any State plan which he determines meets the requirements and purposes of this section. The provisions of subsections (b), (c), and (d) of section 101 of this Act shall apply to any State plan submitted to the Commissioner pursuant to this section, except that for purposes of this section, all references in such subsections to the Secretary shall be deemed to be references to the Commissioner. PART B-CENTERS FOR INDEPENDENT LIVING GRANT PROGRAM ESTABLISHED SEC. 711. (a) The Commissioner may make grants to any designated State unit which administers the State plan under section 705 to provide for the establishment and operation of independent living centers, which shall be facilities offering the services described in sub- section (c) (2). (b) No grant may be made under this section unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application for a grant unless the application- (1) contains assurances that the designated State unit will use funds provided by such grant in accordance with subsection (c); and (2) contains such other information, and is submitted in such form and in accord- ance with such procedures, as the Commissioner may require. (c) An application by a public or nonprofit agency or organization for such grant shall— (1) provide assurances that handicapped individuals will be substantially involved in policy direction and management of such center, and will be employed by such center; (2) contain assurances that the independent living center to be assisted by such grant shall offer handicapped individuals a combination of independent living services, including, as appropriate- (A) intake counseling to determine the client's need for specific rehabilitation services; (B) referral and counseling services with respect to attendant care; (C) counseling and advocacy services with respect to legal and economic rights and benefits; (D) independent living skills, counseling, and training, including such programs as training in the maintenance of necessary equipment and in job-seeking skills, counseling on therapy needs and programs, and special programs for the blind and deaf; (E) housing and transportation referral and assistance; (F) surveys, directories, and other activities to identify appropriate housing and accessible transportation, and other support services; (G) health maintenance programs; (H) peer counseling; (I) community group living arrangements; (J) education and training necessary for living in the community and partici- pating in community activities; (K) individual and group social and recreational activities; (L) other programs designed to provide resources, training, counseling, serv- ices, or other assistance of substantial benefit in promoting the independence, pro- ductivity, and quality of life of handicapped individuals; 60 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (M) attendant care and training of personnel to provide such care; and (N) such other services as may be necessary and not inconsistent with the provisions of this title; and (3) contain such other information, and be submitted in such form and in accord- ance with such procedures, as the Commissioner may require. (d) If, within six months after the date in each fiscal year on which the Commissioner begins to accept applications from designated State units under this section, a designated State unit in a State has not submitted such an application, the Commissioner may accept applications for grants under this section from local public agencies or private nonprofit organizations within such State. After the receipt of such applications, the Commissioner may make grants to such agencies or organizations for the purpose of establishing independ- ent living centers to provide the services described in subsection (c) (2). PART C-INDEPENDENT LIVING SERVICES FOR OLDER BLIND INDIVIDUALS SERVICE PROGRAM ESTABLISHED SEC. 721. (a) The Commissioner may make grants to any designated State unit to pro- vide independent living services to older blind individuals. Such services shall be designed to assist an older blind individual to adjust to his blindness by becoming more able to care for his individual needs. Such services may include- (1) services to help correct blindness such as (A) outreach services, (B) visual screening, (C) surgical or therapeutic treatment to prevent, correct, or modify disabling eye conditions, and (D) hospitalization related to such services; (2) the provision of eyeglasses and other visual aids; (3) the provision of services and equipment to assist an older blind individual to become more mobile and more able to care for himself; (4) mobility training, Braille instruction, and other services and equipment to help an older blind individual adjust to blindness; (5) guide services, reader services, and transportation; and (6) any other appropriate services designated to assist a blind person in coping with daily living activities, including supportive services or rehabilitation teaching services. (b) No grant may be made under this section unless an application therefor, containing such information as the Commissioner may require, has been submitted to and approved by the Commissioner. The Commissioner may not approve any application for a grant unless the application contains assurances that the designated States unit will seek to incorporate any new methods and approaches relating to the services described in subsection (a) into its State plan for independent living services under section 705 of this title. (c) Funds received under this section by any designated State unit may be used to make grants to public or private nonprofit agencies or organizations to- (1) conduct activities which will improve or expand services for older blind individ- uals and help improve public understanding of the problems of such individuals; and (2) provide independent living services to older blind individuals in accordance with the provisions of subsection (a). (d) For purposes of this section, the term "older blind individual" means an individual aged fifty-five or older whose severe visual impairement makes gainful employment extremely difficult to attain but for whom independent living goals are feasible. PART D-GENERAL PROVISIONS PROTECTION AND ADVOCACY OF INDIVIDUAL RIGHTS SEC. 731. (a) The Commissioner may make grants to States to establish systems to pro- tect and advocate the rights of severely handicapped individuals. In order to be eligible for a grant under this section, a State shall provide the Commissioner with assurances that any system established with grants made under this section shall have the authority to pursue REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 61 legal, administrative, and other appropriate remedies to insure the protection of the rights of such individuals receiving services under this title within the State. A Stațe must provide that such system will be independent of any designated State unit that provides services under this part to such individuals. (b) No grant may be made under this section unless an application therefor has been submitted to the Commissioner containing such information and in such form and in accord- ance with such procedures as the Commissioner may, by regulation, prescribe. EMPLOYMENT OF IIANDICAPPED INDIVIDUALS SEC. 732. As a condition of providing assistance under this title, the Secretary shall require that each recipient of assistance take affirmative action to employ and advance in employment qualified handicapped individuals on the same terms and conditions required with respect to the employment of such individuals under the provisions of this Act which government employment (1) by State rehabilitation agencies and rehabilitation facilities, and (2) under Federal contracts and subcontracts. PART E-AUTHORIZATIONS AUTHORIZATION OF APPROPRIATIONS SEC. 731.* (a) For the purpose of carrying out the provisions of parts A, B, and C of this title, there are authorized to be appropriated $80,000,000 for the fiscal year ending September 30, 1979, $150,000,000 for the fiscal year ending September 30, 1980, $200,000,000 for the fiscal year ending September 30, 1981, and such sums as may be necessary for the fiscal year ending September 30, 1982. (b) From the amounts authorized to be appropriated under this section, an amount shall be made available for the purpose of carrying out the provisions of part C of this title in an amount not in excess of 10 percent of the amount made available for carrying out the provisions of subpart 1 of part A of this title. (c) (1) For the purpose of carrying out part D of this title, there are authorized to be appropriated such sums as may be necessary for the fiscal year ending September 30, 1979, and for each of the three succeeding fiscal years, but in no event shall such sums exceed $6,000,000 for the fiscal year ending September 30, 1979, $7,500,000 for the fiscal year ending September 30, 1980, and $9,000,000 for the fiscal year ending September 30, 1981. (2) The provisions of section 1913 of title 18 of the United States Code shall be applicable to all moneys authorized under the provisions of this subsection. OTHER ACTS AMENDED SECTION 1904 OF TITLE 38, UNITED STATES CODE CHAPTER 39-AUTOMOBILES AND ADAPTIVE EQUIPMENT FOR CERTAIN DISABLED VETERANS AND MEMBERS OF THE ARMED FORCES § 1904. Research and development (a) In carrying out medical and prosthetic research under section 4101 of this title, the Administrator, through the Chief Medical Director, shall provide for special emphasis on the research and development of adaptive equipment and adapted conveyances (including vans) meeting standards of safety and quality prescribed under subsection (d) of section 1903, including support for the production and distribution of devices and conveyances so developed. (b) In carrying out subsection (a) of this section, the Administrator, through the Chief Medical Director, shall consult and cooperate with the Secretary of Health, Education, and Welfare and the Commissioner of the Rehabilitation Services Administration, Department of Health, Education, and Welfare, in connection with programs carried out under section 3 (b) of the Rehabilitation Act of 1973 (Public Law 93-112; 87 Stat. 357) (relating to the development and support, and the stimulation of the development and utilization, including production and distribution of new and existing devices, of innovative methods of applying advanced medical technology, scientific achievement, and psychological and social knowledge to solve rehabilitation problems), [section 202 (b) (2) and section 204 (b) (2) of such Act *§ 731 of Part E should be "741", cf. 8 731, Part D, p. 122. 62 REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 (relating to the establishment and support of Rehabilitation Engineering Research Centers) [, and section 405 of such Act (relating to the Secretarial responsibilities for planning, analy- sis, promoting utilization of scientific advances, and information clearing house activities) ENERGY CONSERVATION AND PRODUCTION ACT, 90 STAT. 1152 (1976) DEFINITIONS SEC. 412. As used in this part: (1) The term "Administrator" means the Administrator of the Federal Energy Administration; except that after such Administration ceases to exist, such term means any officer of the United States designated by the President for purposes of this part. (2) The term "Director" means the Director of the Community Services Administration. (3) The term "elderly" means any individual who is 60 years of age or older. (4) The term "Governor" means the chief executive officer of a State (including the Mayor of the District of Columbia). (5) The term "handicapped person" means any individual (A) who is a handicapped individual [as defined in section 7(6)] as defined in section 7(7) of the Rehabilitation Act of 1973, (B) who is under a disability as defined in section 1614 (a) (3) (A) or 223 (d) (1) of the Social Security Act or in section 102 (7) of the Developmental Disabilities Services and Facilities Construction Act, or (C) who is receiving benefits under chapter 11 or 15 of title 38, United States Code. (6) The terms "Indian" "Indian tribe" and "tribal organization" have the meanings prescribed for such terms by paragraph (4), (5), and (6), respectively, of section 102 of the Older Americans Act of 1965. (7) The term "low-income" means that income in relation to family size which (A) is at or below the poverty level determined in accordance with criteria established by the Director of the Office of Management and Budget, or (B) is the basis on which cash assistance payments have been paid during the preceding 12-month period under titles IV and XVI of the Social Security Act or applicable State or local law. (8) The term "State" means each of the States and the District of Columbia. (9) The term "weatherization materials" means items primarily designed to im- prove the heating or cooling efficiency of a dwelling unit, including, but not limited to, ceiling, wall, floor, and duct insultation, storm windows and doors, and caulking and weatherstripping, but not including mechanical equipment valued in excess of $50 per dwelling unit. REHABILITATION ACT OF 1973, AS AMENDED BY H.R. 12467 GPO 39 15 2-h