Rehabilitation Act of 1973

Pl 93-112 (hr 8070)

September 26, 1973

An act to replace the vocational rehabilitation act, to extend and revise the authorization of grants to states for vocational rehabilitation services, with special emphasis on services to those with the most severe handicaps, to expand special federal responsibilities and research and training programs with respect to handicapped individuals, to establish special responsibilities in the secretary of health, education, and welfare for coordination of all programs with respect to handicapped individuals within the department of health, education, and welfare, and for other purposes.

Be it Enacted by the Senate and House of Representatives of the United States

Of America in Congress Assembled, that:

This Act, with the following table of contents, may be cited as the "Rehabilitation Act of 1973";

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 handicapped individuals and to provide such services for the benefit of such individuals, serving 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 not possible or feasible so that they may improve their ability to live with greater independence 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 rehabilitation problems and develop new and innovative methods of providing rehabilitation services to handicapped individuals through research, special projects, and demonstrations;

(6) Initate 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 confronting 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.

Rehabilitation Services Administration

Sec. 3. (a) There is established in the department of health, education, and welfare a rehabilitation services administration which shall be headed by a commissioner (hereinafter in this act referred to as the "commissioner") appointed by the president. except for titles iv and v and as otherwise specifically provided in this act, such administration shall be the principal agency for carrying out this act. The secretary shall not approve any delegation of the functions of the commissioner to any other officer not directly responsible to the commissioner unless the secretary shall first submit a plan for such delegation to the congress. such delegation is effective at the end of the first period of sixty calendar days of continuous session of congress after the date on which the plan for such delegation is transmitted to it: provided, however, that within thirty days of such transmittal, the secretary shall consult with the committee on labor and public welfare of the senate and the committee on education and labor of the house of representatives respecting such proposed delegation. for the purposes of this section, continuity of session is broken only by an adjournment of congress sine die, and the days on which either house is not in session because of an adjournment of more than three days to a day certain are excluded in the computation of the thirty-day and sixty-day periods.

(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 consultation with, the national science foundation and the national academy of sciences develop 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 rehabilitation problems, and be responsible for carrying out the activities described in section 202 (b) (2).

(c) 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, personnel, and administration of programs carried out under this act.

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 provided, and, in such cases, a single non-federal share requirement may be established according 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 planning and operation of its rehabilitation programs, the state may submit a consolidated rehabilitation plan which includes the state's plan under section 101 (a) of this act and its program for persons with developmental disabilities under the developmental disabilities services and facilities construction Amendments of 1970: provided, that the agency administering 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 requirements 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 included 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 rehabilitation plan, and any reductions, suspensions, or terminations of assistance as a result thereof, shall be carried out in accordance with the procedures set forth in subsections (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 of 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, intoxication or otherwise the person engaging in the act, omission, or possession was legally incapable of committing a crime.

(3) The term "Establishment of a Rehabilitation Facility" means the acquisition, expansion, remodeling, or alteration of existing buildings necessary to adapt them to rehabilitation facility purposes or to increase their effectiveness for such purposes (subject, however, 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 federal laws providing federal assistance in the construction of such facilities), and the initial equipment for such buildings, and may include the initial staffing thereof.

(4) 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, 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, educational 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 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 individual 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 individual; and (ii) An assessment, at least once in every ninety-day period during which such services are provided, of the results of the provisions of such services to an individual to ascertain whether any of the determinations described in subclause (i) may be made.

(5) 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 section 301 (b) (3): provided, that 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 percentages determined in accordance with the provisions of section (b) (3) Applicable with respect to that state and that, for the purpose of determining the non-federal share with respect to any state, expenditures by a political subdivision thereof or by a local agency shall, subject to such limitations and conditions as the secretary shall by regulation prescribe, be regarded as expenditures by such state.

(6) The term "Handicapped Individual" means any individual who (a) has a physical or mental disability which for such individual constitutes or results in a substantial handicap to employment and (b) can reasonably be expected to benefit in terms of employability from vocational rehabilitation services provided pursuant to Titles I and III of this act.

(7) The term "Local Agency" means an agency of a unit of general local government 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: provided, that such an arrangement is made part of the agreement specified in this paragraph.

(8) 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 shareholder or individual and the income of which is exempt from taxation under section 501 (c) (3) of the internal revenue code of 1954.

(9) 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 maintenance 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) The term "Rehabilitation Facility" means a facility which is operated for the primary purpose of providing vocational rehabilitation services to handicapped individuals, and which provides singly or in combination one or more of the following services for handicapped individuals: (a) vocational rehabilitation services which shall include, under one management, medical, psychological, social, and vocational services, (b) testing, fitting, or training in the use of prosthetic and orthotic devices, (c) prevocational conditioning or recreational therapy, (d) physical and occupational therapy, (e) speech and hearing therapy, (f) psychological and social services, (g) evaluation of rehabilitation potential, (h) personal and work adjustment, (i) vocational training with a view toward career advancement (in combination with other rehabilitation services), (j) evaluation or control of specific disabilities, (k) orientation and mobility services to the blind, and (l) extended employment for those handicapped individuals who cannot be readily absorbed in the competitive labor market, by, or under the formal supervision of, persons licensed to prescribe or supervise the provision of such services in the state.

(11) The term "Secretary", except when the context otherwise requires, means the secretary of health, education, and welfare.

(12) 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 prescirbe

(13) 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 appropriate state agency designated as provided in Section 101 (a) (1) shall be the governor of american samoa or the high commissioner of the trust terriroty of the pacific islands, as the case may be.

(14) The term "Vocational Rehabilitation Services" means those services identified in section 103 which are provided to handicapped individuals under this act.

Allotment Percentage

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 33 1/3 per centum, and (b) the allotment percentage for the district of columbia, puerto rico, guam, the virgin islands, american 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 July 1 and september 30 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 period beginning on the July 1 next succeeding such promulgation.

(3) The term "United States" means (but only for purposes of this subsection) the fifty states and the district of columbia.

(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 disposition 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 comptroller 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 accordance 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.

Title I--Vocational Rehabilitation Services Part A-- General Provisions

Declaration of Purpose; Authorization of Appropriations

Sec. 100. (a) The purpose of this title 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 title to assist them in meeting costs of vocational rehabilitation services provided in accordance with state plans under Section 101, there is authorized to be appropriated $650,000,000 for the fiscal year ending June 30, 1974, and $680,000,000 for the fiscal year ending June 30, 1975.

(2) For the purpose of carrying out part c of this title (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 severe handicaps) and part d of this title (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, and $39,000,000 for the fiscal year ending June 30, 1975, 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. 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 title.

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 vocational rehabilitation services which 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 t e administration of such part by a local agency) and a separate state agency may be designated as the sole state agency with respect to the rest of the state plan, and (II) the secretary, upon the request of a state, may authorize such agency to share funding and administrative responsiblity 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 administration 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 rehabilitation, 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 rehabilitation, 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 director, 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 organizational 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 organizational 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;

(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, is likely to assist in promoting the vocational rehabilitation of substantially larger numbers of handicapped individuals or groups of handicapped individuals the secretary may waive compliance with the requirement herein that the plan be in effect in all political subdivisions 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 handicaps; 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; and

(b) Provide satisfactory assurances to the secretary that the state has studied and considered a broad variety of means for providing services to individuals with the most severe handicaps;

(6) Provide for such methods of administration, other than methods relating to the establishment and maintenance of personnel standards, as are found by the secretary to be necessary for the proper and efficient administration of the plan;

(7) Contain (a) provisions relating to the establishment and maintenance of personnel standards, which are consistent with any state licensure laws and regulations, including provisions relating to the tenure, selection, appointment, and qualifications of personnel, and (b) provisions relating to the establishment and maintenance of minimum standards governing the facilities and personnel utilized in the provision of vocational rehabilitation services, but the secretary 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;

(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 therefore, the reasons for such determinations;

(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 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 programs, other programs for handicapped individuals, veterans programs, manpower programs, and public employment offices, and the social security administration of the department 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;

(12) Provide satisfactory assurances to the secretary 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;

(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 a 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 rehabilitation facilities) 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 competitive 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 rehabilitation 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

(c) There shall be compliance with regulations the secretary shall prescribe designed to assure that no state will reduce its efforts in providing other vocational rehabilitation services (other than for the establishment of rehabilitation facilities) because its plan includes such provisions for construction;

(18) Provide satisfactory assurances to the secretary 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 rehabilitation 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 that the continuing 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.

(b) The secretary 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 shall notify a state of his intention to disapprove its plan, and he shall afford such state reasonable notice and opportunity for hearing.

(c) Whenever the secretary, after reasonable notice and opportunity for hearing to the state agency administering or supervising the administration of the state plan approved under this section, finds that--

(1) The plan has been so changed that it no longer complies with the requirements of subsection (a) of this section; or

(2) In the administration of the plan there is a failure to comply substantially with any provision of such plan,

The secretary 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 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 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).

(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 capital 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.

Individualized Written Rehabilitation Program

Sec. 102. (a) The secretary shall insure that the individualized written rehabilitation program required by section 10 (a) (9) 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.

(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 its terms. Such program shall include, but not be limited to (1) a statement of long-range rehabilitation 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.

(c) The secretary shall also insure that (1) in developing and carrying out individualized written rehabilitation program required by section 101 in the case of each handicapped individual primary emphasis is placed upon the determination and achievement 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, that the evaluation of rehabilitation potential has demonstrated beyond any reasonable doubt that such individual is not then capable of achieving such a goal, and (3) any such decision shall be reviewed at least annually in accordance with the procedure and criteria established in this section.

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 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 individuals, 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 rehabilitation 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 modification 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 optometrist, whichever the individual may select, (e) special services (including transplantation and dialysis), artificial kidneys, and supplies necessary for the treatment of individuals suffering from end-stage renal disease, and (f) diagnosis and treatment for mental 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 individuals determined to be blind after an examination by a physician skilled in the diseases 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 rehabilitation service; and

(11) Telecommunications, sensory, and other technological aids and devices.

(b) Vocational rehabilitation services, when provided for the benefit of groups of individuals, 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 which promise to contribute substantially to the rehabilitation of a group of individuals but which are not related directly to the individualized rehabilitation written program of any one handicapped individual.

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 ond ions as may be prescribed funds made by any private agency, organization, or indi dual to a state or local agency to assist in meeting the costs of construction or establishment of a public or nonprofit rehabilitation 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 . 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 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.

(b) 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.

(c) Whenever the secretary 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 available to a state for any fiscal year pursuant to the preceding sentence shall, for the 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. 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 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 expenditures 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 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 may find necessary.

(2) The secretary 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 estimate 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 general accounting office, shall be made through the disbursing facilities of the treasury department, and shall be made in such installments as the secretary may determine.

Client Assistance

Sec. 112. (a) From funds appropriated under Section 304 for special projects and demonstrations in excess of an amount equal to the amount obligated for expenditure for carrying out such projects and demonstrations from appropriations under the vocational rehabilitation act in the fiscal year ending June 30, 1973, the secretary shall set aside up to $1,500,000, but no less than $500,000 for the fiscal year ending June 30, 1974, and up to $2,500,000 but no less than $1,000,000 for the fiscal year ending June 30, 1975, to establish in no less than 7 nor more than 20 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 act 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 act.

(b) The secretary 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.

(3) The project shall submit an annual report, through the state agency designated pursuant to Section 101, to the secretary 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, 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 undergoing 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.

Pact 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 years. The total of the increase required by the preceding sentence shall be derived by proportionately reducing the allotments 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 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 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 secretary 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 of 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 programs 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 handicapped individuals who have unusual and difficult problems in connection with their rehabilitation, 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. The secretary 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. Any grant of funds under this section which will be used for direct services to handicapped individuals or for establishing or maintaining 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 June 30, 1976. 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 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, and shall be made on such conditions as the secretary finds necessary 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 otherwise 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 handicaps 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 February 1, 1975.

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 rehabilitation of handicapped individuals, and

(b) Plan and conduct courses of training and related activities designed to provide increased numbers of trained rehabilitation personnel, to increased numbers of trained rehabilitation personnel, to increase the levels of skills of such personnel, and to develop improved methods of providing such training.

Authorization of Appropriations

Sec. 201. (a) In order to make grants and contracts to carry out the purposes of this title, there is authorized to be appropriated:

(1) For the purpose of carrying out section 202 of this title, $25,000,000 each for the fiscal years ending June 30, 1974, and June 30, 1975; 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 appropriated under under this paragraph, 20 per centum, and 25 per centum of the amounts appropriated in the first and second such fiscal years, respectively, shall be available only for the purpose of carrying out activities under Section 202 (b) (2).

(2) For the purpose of carrying out section 203 of this title, there is authorized to be appropriated $27,700,000 each for the fiscal years ending June 30, 1974, and June 30, 1975; 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.

(b) Funds appropriated under this title shall remain available until expended.

Research

Sec. 202. (a) the secretary, through the commissioner, and 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 organizations, including institutions of higher education, 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 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; studies and analyses of industrial, vocational, social, psychological, economic, and other factors affecting rehabilitation of handicapped individuals; special problems of homebound and institutionalized individuals; studies and analyses 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 secretary, through the commissioner, and in coordination with other appropriate programs in the department of health, education, and welfare, is authorized to 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 providing coordinated and advanced programs of research in rehabilitation and training of rehabilitation 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.

(2) Establishment and support of rehabilitation engineering research centers to (a) develop innovative methods of applying advanced medical technology, scientific achievement, and psychological and social knowledge to solve rehabilitation problems through planning and conducting research, including cooperative research with 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 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 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 transplantation and dialysis), artificial kidneys, and supplies necessary for the rehabilitation of individuals suffering 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 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.

(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 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 services to handicapped individuals and 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 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 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.

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.

Approved September 26, 1973.

Title III--Special Federal Responsibilities

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;

(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 individuals whose maximum vocational potential has not been reached, which experiment with new types of patterns of services or devices for the rehabilitation of handicapped individuals (including opportunities for new careers for handicapped individuals, and for other individuals in programs serving handicapped individuals) and which provide vocational 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) 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 construction of rehabilitation facilities, initial staffing, and planning assistance, there is authorized to be appropriated such sums as may be necessary for the fiscal years ending June 30, 1974, and June 30, 1975. Amounts so appropriated shall remain available for expenditure with respect to construction projects funded or initial staffing grants made under this section prior to July 1, 1977.

(b( (1) The secretary 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 approved by the secretary

Under this Section.

(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. 291o (a))), in such state, except that if the federal share with respect to rehabilitation facilities in such state is determined pursuant to subparagraph (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 prescribed by the secretary designed to achieve as nearly as practicable results comparable to the results obtained under such subparagraph.

(c) The secretary 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 regulations the secretary shall prescribe) of compensation of professional or technical 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 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 cost 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, and June 30, 1975.

(b) (1) The secretary 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 training with a view toward career advancement; training in occupational skills; related services, including work evaluation, work testing, provision of occupational tools and equipment required 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 individual'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, including 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, as will promote such individual's capacity to engage in gainful and suitable employment.

(3) The secretary 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 handicapped 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.

(c) (1) The secretary is authorized to make grants to public or nonprofit 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 meanings respectively set forth in Section 207 of the national housing act.

(c) The secretary, in consultation with the secretary of housing and urban development, 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 disbursement 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 individuals. 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 established 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 obligation 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 authorized 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.

(f) The secretary may consent to the release of a part or parts of the mortgaged property 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 agreement 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), (l), 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, education, 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 administration 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 obligations guaranteed as to principal and interest by, the secretary of the treasury, purchase in the open market debentures issued as obligations of the rehabilitation facilities insurance fund. Such purchase 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 received 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 rehabilitation 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.

Special Projects and Demonstrations

Sec. 304. (a) (1) For the purpose of making grants under this section for special projects and demonstrations (and research and evaluation connected therewith), there is authorized to be appropriated $15,000,000 for the fiscal year ending June 30, 1974, and $17,000,000 for the fiscal year ending June 30, 1975; 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 such 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 evaluation 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 individuals, and deaf individuals, whose maximum vocational potential has not been reached; and (2) for applying new types or patterns of services or devices (including opportunities for new careers for handicapped individuals for other individuals in programs servicing handicapped individuals). Projects and demonstrations providing services to individuals with spinal cord injuries shall include provisions to--

(a) 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 njuries, 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 community activities.

(c) The secretary, 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 rehabilitation services to handicapped individuals, as determined in accordance with rules prescribed by the secretary of labor, 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 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 sp cial skills and experience in the provision of services to migratory agricultural workers, seasonal farmworkers, or their families. This subsection shall be administered in coordination with other programs serving migrant agricultural workers and seasonal farmworkers, including programs 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 contractor 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) 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 gs-18, undersection 5332 of Title 5, united states code, including traveltime, and while so serving away from their homes or 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.

National Center for Deaf-Blind Youths and Adults

Sec. 305. (a) For the purpose of establishing and operating a 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, and June 30, 1975.

(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 agreement 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 national center for dear-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 give preference to proposals which (1) give promise of maximum effectiveness in the organization and operation of such 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.

General Grant and Contract Requirements

Sec. 306. (a) The provisions of this section shall apply to all projects approved and assisted under this title. The secretary 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 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 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;

(4) Be accompanied or supplemented by plans and specifications 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 related to minimum standards of construction and equipment (promulgated with particular emphasis on securing compliance 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 construction 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 standards 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 projected under this title, the secretary shall reserve, from any appropriation available therefore, 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 amendment 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 construction of such facility.

(e) Payment of assistance or reservation f funds made pursuant to this title may be made (after necessary adjustment 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 secretary may determine.

(f) A project for construction of a rehabilitation facility which is primarily a workshop may, where approved by the secretary as necessary to the effective operation of the facility, include such construction as may be necessary to provide residential accommodations 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 services, such services must be carried out in a manner not inconsistent with the state plan approved pursuant to Section 101.

(i) Prior to making any grant or entering into any contract under this title, the secretary shall afford reasonable opportunity to the appropriate state agency or agencies designated pursuant to Section 101 to comment on such grant or contract.

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 contract) 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, rehabilitation nursing, rehabilitation counseling, rehabilitation social work, rehabilitation psychology, 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 administration 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, 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 rehabilitation 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 rehabilitation 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, 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 congress 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 program and project impact and effectiveness no later than ninety days after the completion thereof. The secretary shall submit to the appropriate committees of the congress 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, and June 30, 1975, such sums as the secretary may require, but not to exceed an amount equal to one-half of 1 per centum of the funds appropriated under Titles I, II, and III of this act or $1,000,000, whichever is greater, to be available to conduct program and project evaluations as required by this title.

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 complete report on the activities carried out under this act. Such annual reports shall include (1) statistical data reflecting, with the maximum feasible detail vocational rehabilitataion services provided handicapped individuals during the preceding fiscal year, (2) specifically distinguish 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.

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 duplication 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 provisions 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 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 date 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 subsection (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 establish an office for the handicapped in the office of an appropriate assistant secretary of the department of health, education, and welfare to carry out such functions.

(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.

(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 handicapped 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 assistance 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 vocational 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 sh all 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 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 committee on handicapped employees (hereinafter in this section referred to as the "committee"), 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 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 chariman 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 commission 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 eviewed annually and approved by the commission, if the commission determines, after consultation with the committee, that such plan provides sufficient assurances, procedures and commitments to provide adequate hiring, placement, and advancement opportunities 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 activities under subsections (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 experience 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 or compensation, leave, 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 employment of the handicapped, spec al 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") which shall be composed of the heads of each of the following department 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) general services administration; (7) united states postal service; and (8) veterans' administration.

(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--205); (2) investigate and examine alternative approaches to the architectural, transportation, and attitudinal barriers confronting handicapped individuals, particularly with respect to public buildings and monuments, parks and parklands, public transportation (including air, water, and surface transportation whether interstate, 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 development 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.

(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 transportation systems (including vehicles used in such systems), and to prevent their incorporation 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) In carrying out its functions under this section, the board 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 provisions of Subchapter II of Chapter 5, and Chapter 7 of Title 5, United States code, shall apply to procedures under this section, and an order of compliance issued by the board shall be a final order for purposes of judicial review.

(e) The board is authorized to appoint as many hearing examiners as are necessary for proceedings required to be conducted under this section. The provisions applicable to hearing examiners appointed under Section 3105 of Title 5, united states code, shall apply to hearing examiners appointed under this subsection.

(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 functions 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 preceding fiscal year to the congress. Such report shall include an assessment of the extent of compliance 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 recommendations 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, prior to January 1, 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 baord under this section $1,000,000 each for the fiscal years ending June 30, 1974, and June 30, 1975.

Employment Under Federal Contracts

Sec. 502. (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 construction) 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 (b). 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 contract for the procurement of personal property and nonpersonal services (including construction) 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 comply with the provisions of his contract with the united st tes, 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 prescribe, 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

Sec. 504. No otherwise qualified handicapped individual in the united states, as defined in section 7 (6), 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.