THE REHABILITATION ACT OF 1973 As Amended through THE 1986 AMENDMENTS (P.L. 99-506) October 1, 1986. The West Virginia Research and Training Center is responsible for any typographical errors. TABLE OF CONTENTS Sec. 2. Declaration of Purpose ......................................... 4 Sec. 3. Rehabilitation Services Administration ......................... 4 Sec. 4. Advance funding ................................................ 4 Sec. 5. Joint funding .................................................. 4 Sec. 6. Consolidated rehabilitation plan ............................... 5 Sec. 7. Definitions .................................................... 5 Sec. 8. Allotment percentage ........................................... 9 Sec. 9. Audit .......................................................... 9 Sec. 10. Nonduplication ................................................. 9 Sec. 11. Application of other laws ...................................... 10 Sec. 12. Administration of the Act ...................................... 10 Sec. 13. Reports ........................................................ 10 Sec. 14. Evaluation ..................................................... 11 Sec. 15. Information clearinghouse ...................................... 11 Sec. 16. Transfer of funds .............................................. 12 Sec. 17. State Administration ........................................... 12 Sec. 18. Review of Applications ......................................... 12 TITLE I--VOCATIONAL REHABILITATION SERVICES Part A--General Provisions Sec. 100. Declaration of purpose; authorization of appropriations ........ 13 Sec. 101. State plans .................................................... 14 Sec. 102. Individualized written rehabilitation program .................. 19 Sec. 103. Scope of vocational rehabilitation services .................... 21 Sec. 104. Non-Federal share for construction ............................. 23 Part B--Basic Vocational Rehabilitation Services Sec. 110. State allotments ............................................... 23 Sec. 111. Payments to States ............................................. 24 Sec. 112. Client Assistance Program ...................................... 25 Part C--Innovation and Expansion Grants Sec. 120. State allotments ............................................... 27 Sec. 121. Payments to States ............................................. 27 Part D--American Indian Vocational Rehabilitation Services Sec. 130. Vocational rehabilitation services grants ...................... 28 Sec. 131. Study of Needs of American Indians with Handicaps .............. 29 TITLE II--RESEARCH Sec. 200. Declaration of purpose ......................................... 31 Sec. 201. Authorization of appropriations ................................ 31 Sec. 202. National Institute on Disability and Rehabilitation Research ... 31 Sec. 203. Interagency committee .......................................... 34 Sec. 204. Research ....................................................... 34 TITLE III--SUPPLEMENTARY SERVICES AND FACILITIES Part A--Miscellaneous Programs Sec. 300. Declaration of purpose ......................................... 39 Sec. 301. Grants for construction of rehabilitation facilities ........... 39 Sec. 302. Vocational Training Services for individuals with handicaps .... 40 Sec. 303. Loan guarantees for rehabilitation facilities .................. 40 Sec. 304. Training ....................................................... 42 Sec. 305. Comprehensive rehabilitation centers ........................... 44 Sec. 306. General grant and contract requirements ........................ 45 Part B--Special Projects Sec. 310. Authorization of appropriations ................................ 47 Sec. 311. Special demonstration programs ................................. 47 Sec. 312. Migratory workers .............................................. 49 Sec. 314. Reader services for the blind .................................. 50 Sec. 315. Interpreter services for the deaf .............................. 50 Sec. 316. Special Recreational Programs .................................. 51 TITLE IV--NATIONAL COUNCIL ON THE DISABILITY Sec. 400. Establishment of National Council on the Disability............. 53 Sec. 401. Duties of National Council ..................................... 53 Sec. 402. Compensation of National Council members ....................... 54 Sec. 403. Staff of National Council ...................................... 54 Sec. 404. Administrative powers of National Council ...................... 55 Sec. 405. Authorization of appropriations ................................ 55 TITLE V--MISCELLANEOUS Sec. 500. Effect on existing laws ........................................ 57 Sec. 501. Employment of individuals with handicaps ....................... 57 Sec. 502. Architectural and Transportation Barriers Compliance Board ..... 58 Sec. 503. Employment under Federal contracts ............................. 62 Sec. 504. Nondiscrimination under Federal grants ......................... 62 Sec. 505. Remedies and attorneys' fees ................................... 62 Sec. 506. Secretarial responsibilities ................................... 62 Sec. 507. Interagency Coordinating Council ............................... 63 Sec. 508. Electronic equipment accessibility ............................. 63 TITLE VI--EMPLOYMENT OPPORTUNITIES FOR HANDICAPPED INDIVIDUALS Sec. 601. Short title .................................................... 65 Part A--Community Service Employment Programs for Handicapped Individuals Sec. 611. Establishment of program ....................................... 65 Sec. 612. Administration ................................................. 66 Sec. 613. Participants not Federal employees ............................. 67 Sec. 614. Interagency cooperation ........................................ 67 Sec. 615. Equitable distribution of assistance ........................... 67 Sec. 616. Definitions .................................................... 68 Sec. 617. Authorization of appropriations ................................ 68 Part B--Projects with Industry and Business Opportunities for Handicapped Individuals Sec. 621. Projects with industry ......................................... 68 Sec. 622. Business opportunities for individuals with handicaps .......... 71 Sec. 623. Authorization of appropriations ................................ 72 Part C--Supported Employment Services for Individuals with Severe Handicaps Sec. 631. Purpose ........................................................ 72 Sec. 632. Eligibility .................................................... 72 Sec. 633. Allotments ..................................................... 72 Sec. 634. State plan ..................................................... 73 Sec. 635. Services; availability and comparability ....................... 73 Sec. 636. Restriction .................................................... 74 Sec. 637. Savings provision .............................................. 74 Sec. 638. Authorization of appropriations ................................ 74 TITLE VII--COMPREHENSIVE SERVICES FOR INDEPENDENT LIVING Part A--Comprehensive Services Sec. 701. Purpose ........................................................ 75 Sec. 702. Eligibility .................................................... 75 Sec. 703. Allotments ..................................................... 75 Sec. 704. Payments to States from allotments ............................. 76 Sec. 705. State plans .................................................... 76 Sec. 706. State independent living council ............................... 77 Part B--Independent Living Centers Sec. 711. Grant program established ...................................... 78 Part C--Independent Living Services for Older Blind Individuals Sec. 721. Service program established .................................... 81 Part D--General Provisions Sec. 731. Protection and advocacy of individual rights ................... 81 Sec. 732. Employment of Handicapped individuals .......................... 82 Part E--Authorizations Sec. 741. Authorization of appropriations ................................ 82 HELEN KELLER NATIONAL CENTER ACT ......................................... 83 APPENDICES A. Joint Explanatory Statement of the Committee of Conference........ 85 B. Senate Committee Report [accompanying S. 2515] ................... 107 C. House Report [accompanying H.R. 4021] ............................ 131 SEC. 2. DECLARATION OF PURPOSE. The purpose of this Act is to develop and implement, through research, training, services, and the guarantee of equal opportunity, comprehensive and coordinated programs of vocational rehabilitation and independent living, for individuals with handicaps in order to maximize their employability, independence, and integration into the workplace and the community. SEC. 3. REHABILITATION SERVICES ADMINISTRATION [3](a) There is established in the Office of the Secretary a Rehabilitation Services Administration which shall be headed by a Commissioner (hereinafter in this Act referred to as the "Commissioner") appointed by the President by and with the advice and consent of the Senate. Except for titles IV and V and Part A of title VI and as otherwise specifically provided in this Act, such Administration shall be the principal agency, and the Commissioner shall be the principal officer, of such Department for carrying out this Act. The Commissioner shall be an individual with substantial experience in rehabilitation and in rehabilitation program management. In the performance of the functions of the office the Commissioner shall be directly responsible to the Secretary or to the Under Secretary or an appropriate Assistant Secretary of such Department, as designated by the Secretary. The functions of the Commissioner shall not be delegated to any officer not directly responsible, both with respect to program operation and administration, to the Commissioner. Any reference in this Act to duties to be carried out by the Commissioner shall be considered to be a reference to duties to be carried out by the Secretary acting through the Commissioner. In carrying out any of the functions of the office under this Act, the Commissioner shall be guided by general policies of the National Council on Disability established under Title IV of this Act. [3](b) The Secretary shall take whatever action is necessary to insure that funds appropriated pursuant to this Act, as well as unexpended appropriations for carrying out the Vocational Rehabilitation Act (29 U.S.C. 31-42), are expended only for the programs, personnel, and administration of programs carried out under this Act. [3](c) The Secretary shall take such action as necessary to ensure that--- [3-c](1) the staffing of the Rehabilitation Services Administration shall be in sufficient numbers to meet program needs and at levels which will attract and maintain the most qualified personnel; and [3-c](2) such staff includes individuals who have training and experience in the provision of rehabilitation services and that staff competencies meet professional standards. SEC. 4. ADVANCE FUNDING. [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. [4](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. SEC. 5. JOINT FUNDING. 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. SEC. 6. CONSOLIDATED REHABILITATION PLAN [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 Assistance and Bill of Rights Act: Provided, That the agency administering such State's programs under such Act concurs in the submission of such consolidated rehabilitation plan. [6](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 Assistance and Bill of Rights Act. If the Secretary finds that all such requirements are satisfied, the Secretary may (1) 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 (2) advise the State to submit separate plans for such programs. [6](c) Findings of noncompliance in the administration of an approved consolidated rehabilitation plan, and any reduction, suspensions, or terminations of assistance as a result thereof, shall be carried out in accordance with the procedures set forth in subsection (c) and (d) of section 101 of this Act. SEC. 7. DEFINITIONS. For the purposes of this Act: [7](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. [7](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. [7](3) The term "designated State unit" means [7-3](A) any State agency unit required under section 101(a)(2)(A) of this Act, or [7-3](B) in cases in which no such unit is so required, the State agency described in section 101(a)(B)(i) of this Act. [7](4) 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 regulation the Secretary 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 may include such additional equipment and staffing as the Commissioner considers appropriate. [7](5) The term "evaluation of rehabilitation potential" means, as appropriate in each case; [7-5](A) a preliminary diagnostic study to determine that the individual has a substantial handicap to employment, and that vocational rehabilitation services are needed; [7-5](B) a diagnostic study consisting of a comprehensive evaluation of pertinent medical, psychiatric, psychological, vocational, educational, cultural, social, recreational, 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 employability, 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; [7-5](C) An appraisal of the individual's patterns of work behavior and ability to acquire occupational skills, and to develop work attitudes, work habits, work tolerance, and social and behavior patterns suitable for successful job performance including the utilization of work, simulated or real, to assess and develop the individual's capacities to perform adequately in a work environment; [7-5](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; [7-5](E) referral; [7-5](F) the administration of these evaluation services; [7-5](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 an individual with handicaps, an individual with handicaps for whom a vocational goal is not possible or feasible (as determined in accordance with section 102(c)), or neither; and (ii) an assessment, at least once in every ninety-day period during which such services are provided, of the results of the provision of such services to an individual to ascertain whether any of the determinations described in subclause (i) may be made; and [7-5](H) where appropriate, the provision of rehabilitation engineering services to any individual with a handicap to assess and develop the individual's capacities to perform adequately in a work environment. [7](6) The term "employability", with respect to an individual, means a determination that, with the provision of vocational rehabilitation services, the individual is likely to enter or retain, as a primary objective, full-time employment, and when appropriate, part-time employment, consistent with the capacities or abilities of the individual in the competitive labor market or any other vocational outcome the Secretary may determine consistent with this Act. [7-7](A) Subject to subparagraphs (B) and (C) the term "Federal share" means 80 per cent.** [7-7](B) For any fiscal year for which payments to a State under section 111(a) exceed such payments for fiscal year 1988, the Federal share for those payments in excess of the fiscal year 1988 amount shall be 79 percent for fiscal year 1989, 78 percent for fiscal year 1990, 77 percent for fiscal year 1991, 76 percent for fiscal year 1992, and 75 percent for fiscal year 1993. [7-7](C) The term "Federal share" means 90 percent for the purposes of part C of title I of this Act and as specifically set forth in section 301(b)(3), except that with respect to payments pursuant to part B of title I of this Act to any State which are used to meet the cost 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 301(b)(3) applicable with respect to the State. [7-7](D) For the purpose of determining the non-Federal share with respect to a State, expenditures by a political subdivision thereof or by a local agency shall be regarded as expenditures by such State, subject to such limitations and conditions as the Secretary shall by regulation prescribe. [7-8](A) Except as otherwise provided in subparagraph (B), the term "individual with handicaps" means any individual who (i) has a physical or mental disability which for such individual constitutes or results in a substantial handicap to employment and ____________________________ **For fiscal years 1987 and 1988 federal share is a straight 80%. (ii) can reasonably be expected to benefit in terms of employability from vocational rehabilitation services provided pursuant to titles I and III of this Act. [7-8](B) Subject to the subparagraphs (C) and (D), the term "individual with handicaps" means, for purposes of titles IV and V of this Act, any person who (i) has a physical or mental impairment which substantially limits one or more of such person's major life activities, (ii) has a record of such an impairment, or (iii) is regarded as having such an impairment. [7-8](C)(i) For purposes of title V, the term 'individual with handicaps' does not include an individual who is currently engaging in the illegal use of drugs, when a covered entity acts on the basis of such use. [7-8](C)(ii) Nothing in clause (i) shall be construed to exclude as an individual with handicaps an individual who-- (I)has successfully completed a supervised drug rehabilitation program and is no longer engaging in the illegal use of drugs, or has otherwise been rehabilitated successfully and is no longer engaging in such use; (II)is participating in a supervised rehabilitation program and is no longer engaging in such use; or (III)is erroneously regarded as engaging in such use, but is not engaging in such use; except that it shall not be a violation of this Act for a covered entity to adopt or administer reasonable policies or procedures, including but not limited to drug testing, designed to ensure that an individual described in subclause (I) or (II) is no longer engaging in the illegal use of drugs. [7-8](C)(iii)Notwithstanding clause (i), for purposes of programs and ac- tivities providing health services and services provided under titles I, II, and III, an individual shall not be excluded from the benefits of such programs or activities on the basis of his or her current illegal use of drugs if he or she is otherwise entitled to such services. [7-8](C)(iv)For purposes of programs and activities providing educational services, local educational agencies may take disciplinary action pertaining to the use or possession of illegal drugs or alcohol against any handicapped student who currently is engaging in the illegal use of drugs or in the use of alcohol to the same extent that such disciplinary action is taken against nonhandicapped students. Furthermore, the due process procedures at 34 CFR 104.36 shall not apply to such disciplinary actions. [7-8](C)(v)For purposes of sections 503 and 504 as such sections relate to employment, the term 'individual with handicaps' does not include any individual who is an alcoholic whose current use of alcohol prevents such individual from performing the duties of the job in question or whose employment, by reason of such current alcohol abuse, would constitute a direct threat to property or the safety of others. [7-8](D) For the purpose of sections 503 and 504 of this Act, as such sections relate to employment, such term does not include an individual who has a currently contagious disease or infection and who, by reason of such disease or infection, would constitute a direct threat to the health or safety of other individuals or who, by reason of the currently contagious disease or infection, is unable to perform the duties of the job. [7](9) The term "local agency" means an agency of a unit of general local government or of an "Indian tribe (or combination of such units or tribes) 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. [7](10) 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. [7](11) 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--- [7-11](A) the enforcement of the criminal laws, including highway patrol, or the maintenance of civil peace by the National Guard or the Armed Forces, [7-11](B) a correctional program, facility, or institution where the activity is potentially dangerous because of contact with criminal suspects, defendants, prisoners, probationers, or parolees, [7-11](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 [7-11](D) firefighting, fire prevention, or emergency rescue missions. [7](12) The term "rehabilitation engineering" means the systematic application of technologies, engineering methodologies, or scientific principles to meet the needs of and address the barriers confronted by individuals with handicaps in areas which include education, rehabilitation, employment, transportation, independent living, and recreation. [7](13) The term "rehabilitation facility" means a facility which is operated for the primary purpose of providing vocational rehabilitation services to individuals with handicaps, and which provides singly or in combination one or more of the following services for individuals with handicaps: [7-13](A) vocational rehabilitation services which shall include, under one management, medical, psychiatric, psychological, social, and vocational services, [7-13](B) testing, fitting, or training in the use of prosthetic and orthotic devices, [7-13](C) prevocational conditioning or recreational therapy, [7-13](D) physical and occupational therapy, [7-13](E) speech and hearing therapy, [7-13](F) psychiatric, psychological and social services, [7-13](G) evaluation of rehabilitation potential, [7-13](H) personal and work adjustment, [7-13](I) vocational training with a view toward career advancement (in combination with other rehabilitation services), [7-13](J) evaluation or control of specific disabilities, [7-13](K) orientation and mobility services to the blind, [7-13](L) extended employment for those individuals with handicaps who cannot be readily absorbed in the competitive labor market, except that all medical and related health services must be prescribed by, or under the formal supervision of, persons licensed to prescribe or supervise the provision of such services in the State, and [7-13](M) psychosocial rehabilitation services for individuals with chronic mental illness. [7](14) The term "Secretary", except when the context otherwise requires, means the Secretary of Education. [7-15](A) Except as provided in subparagraph (B) the term "individual with severe handicaps" means an individual with handicaps (as defined in paragraph (8))-- [7-15-A](i) who has a severe physical or mental disability which seriously limits one or more functional capacities (such as mobility, communication, self-care, self-direction, interpersonal skills, work tolerance, or work skills) in terms of employability; [7-15-A](ii) whose vocational rehabilitation can be expected to require multiple vocational rehabilitation services over an extended period of time; and [7-15-A](iii) who has one or more physical or mental disabilities resulting from amputation, arthritis, autism, blindness, burn injury, cancer, cerebral palsy, cystic fibrosis, deafness, head injury, heart disease, hemiplegia, hemophilia, respiratory or pulmonary dysfunction, mental retardation, mental illness, multiple sclerosis, muscular dystrophy, musculo-skeletal disorders, neurological disorders (including stroke and epilepsy), paraplegia, quadriplegia and other spinal cord conditions, sickle-cell anemia, specific learning disabilities, end-stage renal disease, or another disability or combination of disabilities determined on the basis of an evaluation of rehabilitation potential to cause comparable substantial functional limitations. [7-15](B) For the purposes of title VII of this Act the term "individual with severe handicaps" means an individual whose ability to function independently in family or community or whose ability to engage or continue in employment is so limited by the severity of his or her physical or mental disability that independent living rehabilitation services are required in order to achieve a greater level of independence in functioning in family or community or engaging or continuing in employment. [7](16) 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 Territory of the Pacific Islands, as the case may be. [7](17) The term "vocational rehabilitation services" means those services identified in section 103 which are provided to individuals with handicaps under this Act. [7](18) The term "supported employment" means competitive work in integrated work settings--- [7-18](A) for individuals with severe handicaps for whom competitive employment has not traditionally occurred, or [7-18](B) for individuals for whom competitive employment has been interrupted or intermittent as a result of a severe disability, and who, because of their handicap, need on-going support services to perform such work. Such term includes transitional employment for individuals with chronic mental illness. For the purpose of this Act, supported employment as defined in this paragraph may be considered an acceptable outcome for employability. [7](19) The term "public or nonprofit agency or organization" shall include an Indian tribe. [7](20) The terms "Indian", "American Indian", and "Indian American" mean an individual who is a member of an Indian tribe. [7](21) The term "Indian Tribe" means any Federal or State Indian tribe, band, rancheria, pueblo, colony, or community, including any Alaskan Native Village or regional village corporation (as defined in or established pursuant to the Alaska Native Claims Settlement Act). [7](22)(A) The term 'drug' means a controlled substance, as defined in schedules I through V of section 202 of the Controlled Substances Act (21 U.S.C. 812). [7](22)(B) The term 'illegal use of drugs' means the use of drugs, the possession or distribution of which is unlawful under the Controlled Substances Act. Such term does not include the use of a drug taken under supervision by a licensed health care professional, or other uses authorized by the Controlled Substances Act or other provisions of Federal law. SEC. 8. ALLOTMENT PERCENTAGE. [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 [8-a-1](A) the allotment percentage shall in no case be more than 75 per centum or less than 33 1/3 per centum, and [8-a-1](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. [8-a](2) The allotment percentages shall be promulgated by the Secretary between October 1 and December 31 of each even-numbered year, on the basis of the average of the per capita incomes of the States and of the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the period beginning on the October 1 next succeeding such promulgation. [8-a](3) The term "United States" means (but only for purposes of this subsection) the fifty States and the District of Columbia. [8](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. SEC. 9. AUDIT. 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. SEC. 10. NONDUPLICATION. 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 [10](1) any portion of such expenditures which are financed by Federal funds provided under any other provision of law, and [10](2) the amount of any non-Federal funds required to be expended as a condition of receipt of such Federal funds. No payment may be made from funds provided under one provision of this Act relating to any cost with respect to which any payment is made under any other provision of this Act, except that this section shall not be construed to limit or reduce fees for services rendered by rehabilitation facilities. SEC. 11. APPLICATION OF OTHER LAWS. The provisions of the Act of December 5, 1974 (Public Law 93-510) and of title V of the Act of October 15, 1977 (Public Law 95-134) shall not apply to the administration of the provisions of this Act or to the administration of any program or activity under this Act. SEC. 12. ADMINISTRATION OF THE ACT. [12](a) In carrying out the purposes of this Act, the Commissioner may-- [12-a](1) provide consultative services and technical assistance to public or nonprofit private agencies and organizations; [12-a](2) provide short-term training and technical instruction; [12-a](3) conduct special projects and demonstrations; [12-a](4) collect, prepare, publish, and disseminate special educational or informational materials, including reports of the projects for which funds are provided under this Act; and [12-a](5) provide monitoring and conduct evaluations. [12](b)(1) In carrying out the duties under this Act, the Commissioner may utilize the services and facilities of any agency of the Federal Government and of any other public or nonprofit agency or organization, in accordance with agreements between the Commissioner and the head thereof, and may pay therefor, in advance or by way of reimbursement, as may be provided in the agreement. [12-b](2) In carrying out the provisions of this Act, the Commissioner shall appoint such task forces as may be necessary to collect and disseminate information in order to improve the ability of the Commissioner to carry out the provisions of this Act. [12](c) The Commissioner may promulgate such regulations as are considered appropriate to carry out his duties under this Act. [12](d) There are authorized to be appropriated to carry out this section such sums as may be necessary. SEC. 13. REPORTS. Not later than one hundred and twenty days after the close of each fiscal year, the Commissioner shall prepare and submit to the President and to the Congress a full and complete report on the activities carried out under this Act, including the activities and staffing of the information clearinghouse under section 15. The Commissioner shall annually collect information on each client whose case is closed out in the preceding fiscal year and include the information in the report required by this section. The information shall set forth a complete count of such cases in a manner permitting the greatest possible cross-classification of data. The data elements shall include, but not be limited to, age, sex, race, ethnicity, education, type of disability, severity of disability, key rehabilitation process dates, earnings at time of entry into program and at closure, work status, occupation, cost of case services, types of services provided, types of facilities or agencies which furnished services and whether each such facility or agency is public or private, and reasons for closure. The Commissioner shall take whatever action is necessary to assure that the identity of each client for which information is supplied under this subsection is confidential. Such annual reports shall also include statistical data reflecting services and activities provided individuals during the preceding fiscal year. The annual report shall include an evaluation of the status of individuals with severe handicaps participating in programs under this Act. SEC. 14 EVALUATION. [14](a) For the purpose of improving program management and effectiveness, the Commissioner shall evaluate all the programs authorized by this Act, their general effectiveness in relation to their cost, their impact on related programs, and their structure and mechanisms for delivery of services, using appropriate methodology and evaluative research designs. The Commissioner shall establish and use standards for the evaluations required by this subsection. The standards shall, to the extent feasible, for all appropriate programs include standards relating to the increases in employment and earnings, taking into account economic factors in the area to be served by the program and the characteristics of the individuals with handicaps to be served. Evaluations shall be conducted by persons not immediately involved in the administration of the program or project evaluated. [14](b) In carrying out evaluations under this section, the Commissioner shall, whenever possible, arrange to obtain the opinions of program and project participants about the strengths and weaknesses of the programs and projects. [14](c) The Commissioner shall annually publish summaries of the results of evaluative research and evaluations of program and project impact and effectiveness, including the standards used for such evaluations, the full contents of which shall be available to the Congress and the public. [14](d) The Commissioner shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with Federal funds shall become the property of the United States. [14](e) Such information as the Commissioner may deem necessary for purposes of the evaluations conducted under this section shall be made available upon request of the Commissioner, by the departments and agencies of the executive branch. [14](f) There are authorized to be appropriated to carry out this section such sums as may be necessary. SEC. 15. INFORMATION CLEARINGHOUSE. [15](a) The Secretary shall establish a central clearinghouse for information and resource availability for individuals with handicaps which shall provide information and data regarding [15-a](1) the location, provision, and availability of services and programs for individuals with handicaps, [15-a](2) research and recent medical and scientific developments bearing on handicapping conditions (and their prevention, amelioration, causes, and cures), and [15-a](3) the current numbers of individuals with handicaps and their needs. The clearinghouse shall also provide any other relevant information and data which the Secretary considers appropriate. [15](b) The Commissioner may assist the Secretary to develop within the Department of Education a coordinated system of information and data retrieval, which will have the capacity and responsibility to provide information regarding the information and data referred to in subsection (a) of this section to the Congress public and private agencies and organizations, individuals with handicaps and their families, professionals in fields serving such individuals, and the general public. [15](c) The office established to carry out the provisions of this section shall be known as the "Office of Information and Resources for the Handicapped". [15](d) There are authorized to be appropriated to carry out this section such sums as may be necessary. SEC. 16. TRANSFER OF FUNDS. [16](a) Except as provided in subsection (b) of this section, no funds appropriated under this Act for any research program or activity may be used for any purpose other than that for which the funds were specifically authorized. [16](b) No more than one-half of 1 percent of the funds appropriated for discretionary grants, contracts, or cooperative agreements authorized by this Act may be used for the purpose of providing non-Federal panels of experts to review applications for such grants, contracts, or cooperative agreements. SEC. 17. STATE ADMINISTRATION. The application of any State rule or policy relating to the administration or operation of programs funded by this Act (including any rule or policy based on State interpretation of any Federal law, regulation, or guideline) shall be identified as a State imposed requirement. SEC. 18. REVIEW OF APPLICATIONS. Applications for grants or contracts in excess of $60,000 in the aggregate authorized to be funded under this Act, other than grants or contracts for evaluations, dissemination, or conferences, shall be reviewed by panels of experts which shall include a majority of non-Federal members. Non-Federal members may be provided travel, per diem, and consultant fees not to exceed the rate provided for grade GS-18 of the General Schedule under section 5332 of title 5, United States Code. TITLE I--VOCATIONAL REHABILITATION SERVICES PART A---General Provisions. SEC. 100. DECLARATION OF PURPOSE; AUTHORIZATION OF APPROPRIATIONS. [100](a) The purpose of this title is to authorize grants to assist States to meet the current and future needs of individuals with handicaps, so that such individuals may prepare for and engage in gainful employment to the extent of their capabilities. [100](b)(1)(A) For the purposes of making grants to States under part B of this title (other than grants under section 112) to assist States in meeting the costs of vocational rehabilitation services provided in accordance with State plans under section 101, there is authorized to be appropriated $1,281,000,000 for fiscal year 1987, and the amount determined under subsection (c) for each of the fiscal years 1988, 1989, 1990, and 1991. The amount determined under subsection (c) for each fiscal year shall be based on the amount authorized by this subsection, or the amount appropriated for this subsection, whichever is higher, plus the amount determined under subsection (c) for the immediately preceding fiscal year. [100-b-1](B) In addition, there are authorized to be appropriated for such purposes such additional sums as may be necessary for each of the fiscal years 1987 through 1991. Any such sums shall be allocated in accordance with section 110(a)(4). [100-b-1](C) In no event may the amount appropriated for the purpose of making grants to States under part B of this title (other than section 112) be more than $1,281,000,000 for fiscal year 1987, $1,409,100,000 for fiscal year 1988, $1,550,010,000 for fiscal year 1989, $1,705,011,000 for fiscal year 1990, and $1,875,512,100 for fiscal year 1991. [100-b](2) For the purpose of allotments under section 120(a)(1), there are authorized to be appropriated such sums as may be necessary for each of the fiscal years 1987, 1988, 1989, 1990, and 1991. [100](c)(1) No later than November 15 of each fiscal year (beginning with the fiscal year 1979), the Secretary of Labor shall publish in the Federal Register the percentage change in the consumer price index published for October of the preceding fiscal year and October of the fiscal year in which such publication is made. [100-c](2)(A) If in any fiscal year the percentage change published under paragraph (1) indicates an increase in the consumer price index, then the amount authorized to be appropriated under subsection (b)(1) for the subsequent fiscal year is the amount authorized to be appropriated for the fiscal year in which the publication is made under paragraph (1) increased by such percentage change. [100-c-2](B) If in any fiscal year the percentage change published under paragraph (1) does not indicate an increase in the consumer price index, then the amount authorized to be appropriated under subsection (b)(1) for the subsequent fiscal year is the amount authorized to be appropriated for the fiscal year in which the publication is made under paragraph (1). [100-c](3) For purposes of this section, the term "consumer price index" means the Consumer Price Index for All Urban Consumers, published monthly by the Bureau of Labor Statistics. [100](d)(1)(A)Unless the Congress in the regular session which ends prior to the beginning of the terminal fiscal year-- [100-d-1](i) of the authorization of appropriations for the program authorized by the State grant program under part B of this title; or [100-d-1](ii) of the duration of the program authorized by the State grant program under part B of this title; has passed legislation which would have the effect of extending the authorization or duration (as the case may be) of such program, such authorization is automatically extended for one additional year for the program authorized by this title. [100-(d)(1)(B)The amount authorized to be appropriated for the additional fiscal year described in subparagraph (A) shall be an amount equal to the amount appropriated for such program for fiscal year 1991, or the amount authorized to be appropriated for such program for fiscal year 1991, which ever is higher, plus the amount of the consumer price index addition determined under subsection (C) for the immediately preceding fiscal year. [100-d](2)(A) For the purposes of subdivision (i) of paragraph (1), the Congress shall not have been deemed to have passed legislation unless such legislation becomes law. (B) In any case where the Commissioner is required under an applicable statute to carry out certain acts or make certain determinations which are necessary for the continuation of the program authorized by this title, if such acts or determinations are required during the terminal year of such program, such acts and determinations shall be required during any fiscal year in which that part of paragraph (1) of this subsection which follows subdivision (ii) of paragraph (1) is in operation. SEC. 101. STATE PLANS. [101](a) In order to be eligible to participate in programs under this title, a State shall submit to the Commissioner a State plan for vocational rehabilitation services for a three-year period and, upon request of the Commissioner, shall make such annual revisions in the plan as may be necessary. Each such plan shall-- [101-a](1)(A) designate a State agency as the sole State agency to administer the plan, or to supervise its administration by a local agency, except that (i) where, under the State's law, the State Agency for the blind or other agency which provides assistance or services to the adult blind is authorized to provide vocational rehabilitation services to such individuals, such agency may be designated as the sole State agency to administer the part of the plan under which vocational rehabilitation services are provided for the blind (or to supervise the administration of such part by a local agency) and a separate State agency may be designated as the sole State agency with respect to the rest of the State plan and (ii) the Commissioner, upon the request of a State, may authorize such agency to share funding and administrative responsibility with another agency of the State or with a local agency in order to permit such agencies to carry out a joint program to provide services to individuals with handicaps, 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; [101-a-1](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 clause (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 individuals with handicaps, (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; [101-a](2) provide, except in the case of agencies described in clause (1)(B)(i)-- [101-a-2](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 individuals with handicaps, 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 [101-a-2](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; [101-a](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; [101-a](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 Commissioner, is likely to assist in promoting the vocational rehabilitation of substantially larger numbers of individuals with handicaps or groups of individuals with handicaps the Commissioner 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 the Commissioner, 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); [101-a](5)(A) contain the plans, policies, and methods to be followed in carrying out the State plan and in its administration and supervision, including the results of a comprehensive, State-wide assessment of the rehabilitation needs of individuals with severe handicaps residing within the State and the State's response to the assessment, a description of the method to be used to expand and improve services to individuals with the most severe handicaps including individuals served under part C of title VI of this Act, and a description of the method to be used to utilize existing rehabilitation facilities to the maximum extent feasible; and, in the event that vocational rehabilitation services cannot be provided to all eligible individuals with handicaps who apply for such services, (i) show and provide the justification for the order to be followed in selecting individuals to whom vocational rehabilitation services will be provided, and (ii) show 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 individuals with handicaps, established in regulations prescribed by the Commissioner; [101-a-5](B) provide satisfactory assurances to the Commissioner that the State has studied and considered a broad variety of means for providing services to individuals with the most severe handicaps; and [101-a-5](C) describe how rehabilitation engineering services will be provided to assist an increasing number of individuals with handicaps. [101-a](6)(A) provide for such methods of administration, other than methods relating to the establishment and maintenance of personnel standards, as are found by the Commissioner to be necessary for the proper and efficient administration of the plan (including a requirement that the State agency and facilities in receipt of assistance under this title shall take affirmative action to employ and advance in employment qualified individuals with handicaps covered under, and on the same terms and conditions as set forth in, section 503); and (B) provide satisfactory assurances that facilities used in connection with the delivery of services assisted under the plan will comply with the Act of August 12, 1968, commonly known as the Architectural Barriers Act of 1968; [101-a-7](A) contains 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, [101-a-7](B) provisions relating to the establishment and maintenance of minimum standards governing the facilities and qualified personnel utilized therein in the provision of vocational rehabilitation services, but the Commissioner shall exercise no authority with respect to the selection, method of selection, tenure of office, or compensation of any individual employed in accordance with such provision, and [101-a-7](C) provisions relating to the establishment and maintenance of minimum standards to assure the availability of personnel, to the maximum extent feasible, trained to communicate in the client's native language or mode of communication; [101-a](8) provide, at a minimum, for the provision of the vocational rehabilitation services specified in clauses (1) through (3) and clause 12 of section 103(a), and for the provision of such other services as are specified under such section after a determination that comparable services and benefits are not available under any other program, except that such determination shall not be required where it would delay the provision of such services to any individual at extreme medical risk; [101-a](9) provide that [101-a-9](A) an individual written rehabilitation program meeting the requirements of section 102 will be developed for each individual with handicaps eligible for vocational rehabilitation services under this Act, [101-a-9](B) such services will be provided under the plan in accordance with such program, and [101-a-9](C) records of the characteristics of each applicant will be kept, specifying, as to those individuals who apply for services under this title and are determined not to be eligible therefor, the reasons for such determinations in such detail as required by the Commissioner in order for the Commissioner to analyze and evaluate annually the reasons for and numbers of such ineligibility determinations as part of the Commissioner's responsibilities under Section 13, and that the State agency will at least annually categorize and analyze such reasons and numbers and report this information to the Commissioner and will not later than 12 months after each such determination, review each such ineligibility determination in accordance with the criteria set forth in section 102; [101-a](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 individuals with handicaps 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 Commissioner may require to carry out the functions of the Commissioner under this title, and comply with such provisions as are necessary to assure the correctness and verification of such reports; [101-a](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 individuals with handicaps, veterans programs, community mental health programs, manpower programs, and public employment offices, and the Social Security Administration, of the Department of Health and Human Services, the Veterans' Administration, and other Federal, State, and local public agencies providing services related to the rehabilitation of individuals with handicaps (specifically including arrangements for the coordination of services to individuals eligible for services under this Act, the Education of the Handicapped Act, and the Vocational Education Act); [101-a](12)(A) provide satisfactory assurances to the Commissioner that, in the provision of vocational rehabilitation services, maximum utilization shall be made of public or other vocational or technical training facilities or other appropriate resources in the community; and [101-a-12](B) provide (as appropriate) for entering into agreements with the operators of rehabilitation facilities for the provision of services for the rehabilitation of individuals with handicaps; [101-a](13)(A) provide that vocational rehabilitation services provided under the State plan shall be available to any civil employee of the United States who is disabled while in the performance of employee's duty on the same terms and conditions as apply to other persons, and [101-a-13](B) provide that special consideration will be given to the rehabilitation under this act of an individual with handicaps whose handicapping condition arises from a disability sustained in the line of duty while such individual was performing as a public safety officer if the proximate cause of such disability was a criminal act, apparent criminal act, or hazardous condition resulting directly from the officer's performance of duties in direct connection with the enforcement, execution, and administration of law or fire prevention, firefighting, or related public safety activities; [101-a](14) provide that no residence requirement will be imposed which excludes from services under the plan any individual who is present in the State; [101-a](15) provide for continuing statewide studies of the needs of individuals with handicaps and how these needs may be most effectively met, including-- [101-a](15)(A) conducting a full needs assessment for serving individuals with severe handicaps; [101-a](15)(B) an assessment of the capacity and condition of rehabilitation facilities, plans for improving such facilities, and policies for the use thereof by the State agency; and [101-a](15)(C) review of the efficacy of the criteria employed with respect of ineligibility determinations described in paragraph (9)(C) of this subsection with a view toward the relative need for services to significant segments of the population of individuals with handicaps and the need for expansion of services to those individuals with the most severe handicaps; and [101-a](16) provide for [101-a-16](A) periodic review and reevaluation of the status of individuals with handicaps 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 [101-a-16](B) maximum efforts to place such individuals in such employment or training whenever it is determined to be feasible; [101-a](17) provide that where such State plan includes provisions for the construction of rehabilitation facilities-- [101-a-17](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. [101-a-17](B) the provisions of section 306 shall be applicable to such construction and such provisions shall be deemed to apply to such construction, and [101-a-17](C) there shall be compliance with regulations the Commissioner 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; [101-a](18) provide satisfactory assurances to the Commissioner that the State agency designated pursuant to clause (1) (or each State agency if two are so designated) and any sole local agency administering the plan in a political subdivision of the State will take into account, in connection with matters of general policy arising in the administration of the plan, the views of individuals and groups thereof who are recipients of vocational rehabilitation services (or, in appropriate cases, their parents or guardians), personnel working in the field of vocational rehabilitation, and providers of vocational rehabilitation services; [101-a](19) provide satisfactory assurance to the Commissioner 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 Commissioner may require, of appropriate amendments to the plan; [101-a](20) provide satisfactory assurances to the Commissioner that, as appropriate, the State shall actively consult with Indian tribes and tribal organizations and native Hawaiian organizations in the development of the State plan, and that, except as otherwise provided in section 130, the State shall provide vocational rehabilitation services to American Indians with handicaps residing in the State to the same extent as the State provides such services to other significant segments of the population of individuals with handicaps residing in the State; [101-a](21) provide that the State agency has the authority to enter into contracts with profitmaking organizations for the purpose of providing on- the-job training and related programs for individuals with handicaps under part B of title VI upon a determination by such agency that such profitmaking organizations are better qualified to provide such rehabilitation services than nonprofit agencies and organizations; [101-a](22) provide for the establishment and maintenance of information and referral programs (the staff of which shall include, to the maximum extent feasible, interpreters for the deaf) in sufficient numbers to assure that individuals with handicaps within the State are afforded accurate vocational rehabilitation information and appropriate referrals to other Federal and State programs and activities which would benefit them; [101-a](23)(A) provide satisfactory assurances that in the formulation of policies governing the provision of rehabilitation services consistent with the State plan, and any revisions, that the State agency conducts public meetings throughout the State, after appropriate and the sufficient notice, to allow interested groups and organizations and all segments of the public an opportunity to comment on the State plan, and [101-a-23](B) include a summary of such comments and the State agency's response to such comments; [101-a](24) contain the plans, policies, and methods to be followed to assist in the transition from education to employment related activities; and [101-a](25) provide satisfactory assurances that the State has an acceptable plan for part C of title VI. [101](b) The Commissioner shall approve any plan which the Commissioner finds fulfills the conditions specified in subsection (a) of this section, and shall disapprove any plan which does not fulfill such conditions. Prior to such disapproval, the Commissioner shall notify a State of the intention to disapprove its plan, and shall afford such State reasonable notice and opportunity for hearing. [101](c)(1) Whenever the Commissioner, 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-- [101-c-1](A) the plan has been so changed that it no longer complies with the requirements of subsection (a) of this section; or [101-c-1](B) in the administration of the plan there is a failure to comply substantially with any provision of such plan the Commissioner shall notify such State agency that no further payments will be made to the State under this title (or, the discretion of the Commissioner, that such further payments will be reduced, in accordance with regulations the Commissioner shall prescribe, or that further payments will not be made to the State only for the projects under the part of the State plan affected by such failure), until the Commissioner is satisfied there is no longer any such failure. Until the Commissioner is so satisfied, the Commissioner shall make no further payments to such State under this title (or shall limit payments to projects under those parts of the State plan in which there is no such failure). [101-c](2) The Commissioner may, in accordance with regulations the Secretary shall prescribe, disburse any funds withheld from a State under paragraph (1) to any public or nonprofit private organization or agency within such State or to any political subdivision of such State submitting a plan meeting the requirements of subsection (a). The Commissioner may not make any payment under this paragraph unless the entity to which such payment is made has provided assurances to the Commissioner that such entity will contribute, for purposes of carrying out such plan, the same amount as the State would have been obligated to contribute if the State received such payment. [101](d)(1) Any State which is dissatisfied with a final determination of the Commissioner under subsection (b) or (c) may file a petition for judicial review of such determination in the United States Court of Appeals for the circuit in which the State is located. Such a petition may be filed only within the thirty-day period beginning on the date notice of such final determination was received by the State. The clerk of the court shall transmit a copy of the petition to the Commissioner or to any officer designated by the Commissioner for that purpose. In accordance with section 2112 of title 28, United States Code, the Commissioner shall file with the court a record of the proceeding on which the Commissioner based the determination being appealed by the State. Until a record is so filed, the Commissioner may modify or set aside any determination made under such proceedings. [101-d](2) If, in an action under this subsection to review a final determination of the Commissioner under subsection (b) or (c), the petitioner or the Commissioner applies to the court for leave to have additional oral submissions or written presentations made respecting such determination, the court may, for good cause shown, order the Commissioner to provide within thirty days an additional opportunity to make such submissions and presentations. Within such period, the Commissioner may revise any findings of fact, modify or set aside the determination being reviewed, or make a new determination by reason of the additional submissions and presentations, and shall file such modified or new determination, and any revised findings of fact, with the return of such submissions and presentations. The court shall thereafter review such new or modified determination. [101-d](3)(A) Upon the filing of a petition under paragraph (1) for judicial review of a determination, the court shall have jurisdiction (i) to grant appropriate relief as provided in chapter 7 of title 5, United States Code, except for interim relief with respect to a determination under subsection (c), and (ii) except as otherwise provided in subparagraph (B), to review such determination in accordance with chapter 7 of title 5, United States Code. [101-d-3](B) Section 706 of title 5, United States Code, shall apply to the review of any determination under this subsection, except that the standard for review prescribed by paragraph (2)(E) of such section 706 shall not apply and the court shall hold unlawful and set aside such determination if the court finds that the determination is not supported by substantial evidence in the record of the proceeding submitted pursuant to paragraph (1), as supplemented by any additional submissions and presentations filed under paragraph (2). SEC. 102. INDIVIDUALIZED WRITTEN REHABILITATION PROGRAM. [102](a) The Commissioner shall insure that the individualized written rehabilitation program, or the specification of reasons for a determination of ineligibility prior to initiation of such program based on preliminary diagnosis, required by section 101(a)(9) in the case of each individual with handicaps is developed jointly by the vocational rehabilitation counselor or coordinator and the individual with handicaps (or, in appropriate cases, such individual's parents or guardians), and that such program meets the requirements set forth in subsection (b) of this section. Such written program shall set forth the terms and conditions, as well as the rights and remedies, under which goods and services will be provided to the individual, and, as appropriate, such specification of reasons for such an ineligibility determination shall set forth the rights and remedies, including, where appropriate, recourse to the processess set-forth in subsections (b)(2) and (d) of this section, and the availability of services provided under Section 112, available to the individual in question. [102](b)(1) Each individualized written rehabilitation program shall --- [102-b-1](A) shall be developed on the basis of a determination of employability designed to achieve the vocational objective of the individual; [102-b-1](B) include a statement of the long-range rehabilitation goals based on an assessment determined through an evaluation of rehabilitation potential for the individual; [102-b-1](C) include a statement of the intermediate rehabilitation objectives related to the attainment of such goals based on an assessment determined through an evaluation of rehabilitation potential; [102-b-1](D) where appropriate, include a statement of the specific rehabilitation engineering services to be provided to assist in the implementation of intermediate objectives and long-range rehabilitation goals for the individual; [102-b-1](E) include an assessment of the expected need for post-employment services; [102-b-1](F) include a statement of the specific vocational rehabilitation services to be provided and the projected dates for the initiation and the anticipated duration of each such service; [102-b-1](G) include objective criteria and an evaluation procedure and schedule for determining whether such goals and objectives are being achieved; [102-b-1](H) provide for a reassessment of the need for for post-employment services prior to case closure and, where appropriate, for individuals with severe handicaps, the development of a statement detailing how such services shall be provided or arranged through cooperative agreements with other service providers; and [102-b-1](I) provide a description of the availability of a client assistance project established in such area pursuant to section 112. [102-b](2) Each individualized written rehabilitation program shall be reviewed annually, at which time such individual (or, in appropriate cases, the parent or guardian of the individual) will be afforded an opportunity to review such program and jointly redevelop and agree to its terms. Each individualized written rehabilitation program shall be revised as needed. [102](c) The Commissioner shall also insure that [102-c](1) in making any determination of ineligibility referred to in subsection (a) of this section, or in developing and carrying out the individualized written rehabilitation program required by section 101 in the case of each individual with handicaps, primary emphasis is placed upon the determination and achievement of a vocational goal for such individual, [102-c](2) a decision that such an individual is not capable of achieving such a goal and thus is 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, such individual's parents or guardians), and only upon the certification, as an amendment to such written program, or as a part of the specification of reasons for an ineligibility determination, as appropriate, that the preliminary diagnosis or evaluation of rehabilitation potential, as appropriate, has demonstrated that such individual is not then capable of achieving such a goal, and [102-c](3) any such decision, as an amendment to such written program, shall be reviewed at least annually in accordance with the procedure and criteria established in this section. [102](d)(1) Except as provided in paragraph (4), the Director of any designated State unit shall establish procedures for the review of determinations made by the rehabilitation counselor or coordinator under this section, upon the request of an individual with handicaps (or, in appropriate cases, such individual's parents or guardian). [102-d](2) Such review procedures shall provide an opportunity to such individuals for the submission of additional evidence and information to an impartial hearing officer who shall make a decision based on the provisions of the State plan approved under section 101(a). [102-d](3)(A) Within 20 days of the mailing of the decision to the individual with handicaps (or, in appropriate cases, such individual's parent or guardian), the Director shall notify such individuals of the intent to review such decision in whole or in part. [102-d-3](B) If the Director decides to review the decision, such individuals shall be provided an opportunity for the submission of additional evidence and information relevant to a final decision. [102-d-3](C) A final decision shall be made in writing by the Director and shall include a full report of the findings and the grounds for such decision. When a final decision is made, a copy of such decision shall be provided to such individuals. [102-d-3](D) Except as provided in paragraph (4), the Director may not delegate responsibility to make any such final decision to any other officer or employee of the designated State unit. [102-d](4)(A) A fair hearing board, established by a State before January 1, 1985, and authorized under State law to review determinations under this Act, is authorized to carry out the responsibilities of the Director under this subsection. [102-d-4](B) The provisions of paragraphs (1) through (3) of this subsection shall not apply to any State to which subparagraph (A) of this paragraph applies. [102-d](5)(A) The Director shall collect data described in subparagraph (B) and prepare and submit to the Commissioner a report containing such data. For the report submitted on or before February 1, 1988, the Commissioner shall prepare a summary of the information furnished under this paragraph and include the summary in the annual report submitted under section 13. [102-d-5](B) The data required to be collected under this paragraph shall include--- (i) a description of the State procedures for review; (ii) the number of appeals to the independent hearing officer and the State Director, including the type of complaint and the issues involved; (iii) the number of decision by the State Director reversing in whole or in part the decision of the impartial hearing officer; and (iv) the number of decisions affirming the position of the individual with handicaps assisted through the client assistance program. SEC. 103. SCOPE OF VOCATIONAL REHABILITATION SERVICES [103](a) Vocational rehabilitation services provided under this Act are any goods or services necessary to render an individual with handicaps employable, including, but not limited to, the following: [103-a](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-- [103-a](1)(A) an evaluation by personnel skilled in rehabilitation engineering technology; and [103-a](1)(B) an examination by a physician skilled in the diagnosis and treatment of mental or emotional disorders, or by a licensed psychologist in accordance with State laws and regulations, or both; and [103-a](2) counseling, guidance, referral, and placement services for individuals with handicaps, including followup, follow-along, and specific postemployment services necessary to assist such individuals to maintain or regain employment, and other services designed to help individuals with handicaps secure needed services from other agencies, where such services are not available under this Act; [103-a](3) vocational and other training services for individuals with handicaps, which shall include personal and vocational adjustment, books, or 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; [103-a](4) physical and mental restoration services, including, but not limited to, [103-a-4](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, [103-a-4](B) necessary hospitalization in connection with surgery or treatment, [103-a-4](C) prosthetic and orthotic devices, [103-a-4](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, [103-a-4](E) special services (including transplantation and dialysis), artificial kidneys, and supplies necessary for the treatment of individuals suffering from end-stage renal disease, and [103-a-4](F) diagnosis and treatment for mental and emotional disorders by a physician or licensed psychologist in accordance with State licensure laws; [103-a](5) maintenance, not exceeding the estimated cost of subsistence, during rehabilitation; [103-a](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 disease of the eye or by an optometrist, whichever the individual may select; [103-a](7) recruitment and training services for individuals with handicaps to provide them with new employment opportunities in the fields of rehabilitation, health, welfare, public safety, and law enforcement, and other appropriate service employment; [103-a](8) rehabilitation teaching services and orientation and mobility services for the blind; [103-a](9) occupational licenses, tools, equipment, and initial stocks and supplies; [103-a](10) transportation in connection with the rendering of any vocational rehabilitation service; [103-a](11) telecommunications, sensory, and other technological aids and devices; and [103-a](12) rehabilitation engineering services. [103](b) Vocational rehabilitation services, when provided for the benefit of groups of individuals, may also include the following: [103-b](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; [103-b](2) the construction or establishment of public or nonprofit rehabilitation facilities and the provision of other facilities and services (including services offered at rehabilitation facilities) 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 individual with handicaps; [103-b](3) the use of existing telecommunications systems (including telephone, television, satellite, radio, and other similar systems) which has the potential for substantially improving service delivery methods, and the development of appropriate programming to meet the particular needs of individuals with handicaps; and [103-b](4) the use of services providing recorded material for the blind and captioned films or video cassettes for the deaf. SEC. 104. NON-FEDERAL SHARE FOR CONSTRUCTION For the purpose of determining the amount of payments to States for carrying out part B of this title (or to an Indian tribe under part D of this title), the non-Federal share, subject to such limitations and conditions as may be prescribed in regulations by the Commissioner, shall include contributions of funds made by any private agency, organization, or individual to a State or local agency to assist in meeting the costs of construction or establishment of a public or nonprofit 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 a facility. PART B--Basic Vocational Rehabilitation Services. SEC. 110. STATE ALLOTMENTS [110](a)(1) Subject to the provisions of subsection (d), for each fiscal year beginning before October 1, 1978, each State shall be entitled to an allotment of an amount bearing the same ratio to the amount authorized to be appropriated under section 100(b)(1) for allotment under this section as the product of [110-a-1](A) the population of the State, and [110-a-1](B) the square of its allotment percentage, bears to the sum of the corresponding products for all the States. [110-a](2)(A) For each fiscal year beginning on or after October 1, 1978, each State shall be entitled to an allotment in an amount equal to the amount such State received under paragraph (1) for the fiscal year ending September 30, 1978, and an additional amount determined pursuant to subparagraph (B) of this paragraph. [110-a-2](B) For each fiscal year beginning on or after October 1, 1978, each State shall be entitled to an allotment, from any amount authorized to be appropriated for such fiscal year under section 100(b)(1)(A) for allotment under this section in excess of the amount appropriated under section 100(b)(1)(A) for the fiscal year ending September 30, 1978, in an amount equal to the sum of-- (i) an amount bearing the same ratio to 50 percent of such excess amount as the product of the population of the State and the square of its allotment percentage bears to the sum of the corresponding products for all the States; and (ii) an amount bearing the same ratio to 50 percent of such excess amount as the product of the population of the State and its allotment percentage bears to the sum of the corresponding products for all the States. [110-a](3) The sum of the payment to any State (other than Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands) under this subsection for any fiscal year which is less than one-third of 1 percent of the amount appropriated under section 100(b)(1)(A), or $3,000,000 whichever is greater, shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the allotment to each of the remaining such States under this subsection, but with such adjustments as may be necessary to prevent the sum of the allotments made under this subsection to any such remaining State from being thereby reduced to less than that amount. [110-a](4) For each fiscal year beginning on or after October 1, 1984, for which any amount is appropriated pursuant to section 100(b)(1)(B), each State shall receive an allocation (from such appropriated amount) in addition to the allotment to which such State is entitled under paragraphs (2) and (3) of this subsection. Such additional allocation shall be an amount which bears the same ratio to the amount so appropriated as that State's allotment under paragraphs (2) and (3) of this subsection bears to the sum of such allotments of all the States. [110](b)(1) If the payment to a State under section 111(a) for a fiscal year is less than the total payments such State received under section 2 of the Vocational Rehabilitation Act for the fiscal year ending June 30, 1973, such State shall be entitled to an additional payment (subject to the same terms and conditions applicable to other payments under this part) equal to the difference between such payment under section 111(a) and the amount so received by it. [110-b](2) If a State receives as its Federal share under section 111(a) for any fiscal year less than the applicable federal share of the expenditure of such State for fiscal year 1972 for vocational rehabilitation services under the plan for such State approved under section 101 (including any amount expended by such State for the administration of the State plan but excluding any amount expended by such State from non-Federal sources for construction under such plan), such State shall be entitled to an additional payment for such fiscal year, 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 an amount equal to the applicable federal share of such expenditure for vocational rehabilitation services. [110-b](3) Any payment attributable to the additional payment to a State under this subsection shall be made only from appropriations specifically made to carry out this subsection, and such additional appropriations are hereby authorized. [110](c)(1) Not later than forty-five days prior to the end of the fiscal year, the Commissioner shall determine, after reasonable opportunity for the submission to the Commissioner 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. [110-c](2) As soon as practicable but not later than the end of the fiscal year, the Commissioner shall make such amount available for carrying out the purposes of this title to one or more other States to the extent the Commissioner determines that such other State will be able to use such additional amount during the fiscal year or to pay for initial expenditures during the subsequent fiscal year for carrying out such purposes. [110-c](3) For the purposes of this part, any amount made available to a State for any fiscal year pursuant to this subsection shall be regarded as an increase of such State's allotment (as determined under the preceding provisions of this section) for such year. [110](d)(1) For fiscal year 1987 and for each subsequent fiscal year, the Commissioner shall reserve from the amount appropriated under section 100(b)(1) for an allotment under this section a sum, determined under paragraph (2), to carry out the purposes of part D of this title. [110-d](2) For any fiscal year the sum shall be not less than 1/4 of one percent and not more than one percent of the amount under paragraph (1), as determined by the Secretary. SEC. 111. PAYMENTS TO STATES [111](a)(1) Except as provided under paragraph (2), from each State's allotment under this part for any fiscal year (including any additional payment to it under section 110(b) the Commissioner shall pay to a State an amount equal to the Federal share of the cost of vocational rehabilitation services under the plan for that State approved under section 101, including expenditures for the administration of the State plan. [111-a](2)(A) The total of such payments under paragraph (1) to a State for such fiscal year may not exceed its allotment under subsection (a) (and any additional payment under subsection (b)), 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 section (101)(a)(17). [111-a-2](B) For fiscal year 1990 and each fiscal year thereafter, the amount otherwise payable to a State for a fiscal year under this section shall be reduced by any amount by which expenditures from non-Federal sources under the State plan under this title for the previous year are less than the average of the total of such expenditures for the three fiscal years preceding that previous fiscal year (effective October; 1989). [111-a-2](C) The Commissioner may waive or modify any requirement or limitation under paragraphs (A) or (B) if the Commissioner determines that a waiver or modification is an equitable response to exceptional or uncontrollable circumstances affecting the State. [111](b) The method of computing and paying amounts pursuant to subsection (a) shall be as follows: [111-b](1) The Commissioner shall, prior to the beginning of each calendar quarter or other period prescribed by the Commissioner 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 Commissioner may find necessary. [111-b](2) The Commissioner shall pay, from the allotment available therefor, the amount so estimated by the Commissioner for such period, reduced or increased, as the case may be, by any sum (not previously adjusted under this paragraph) by which the Commissioner finds that the 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 Commissioner may determine. SEC. 112. CLIENT ASSISTANCE PROGRAM [112](a) From funds appropriated under subsection (i), the Secretary shall, in accordance with this section, make grants to States to establish and carry out client assistance programs to provide assistance in informing and advising all clients and client applicants of all available benefits under this Act, and, upon request of such clients or client applicants, to assist such clients or applicants in their relationships with projects, programs, and facilities providing services to them under this Act, including assistance in pursuing legal, administrative, or other appropriate remedies to ensure the protection of the rights of such individuals under this Act. The client assistance program may provide information on the available services under this Act to any individuals with handicaps in the State. [112](b) No State may receive payments from its allotment under this Act in any fiscal year unless the State has in effect not later than October 1, 1984 a client assistance program which-- [112-b](1) has the authority to pursue legal, administrative, and other appropriate remedies to insure the protection of rights of individuals with handicaps who are receiving treatments, services or rehabilitation under this Act within the State; and [112-b](2) meets the requirements of designation under subsection (c). [112](c)(1)(A) The Governor shall designate a public or private agency to conduct the client assistance program under this section. Except as provided in the last sentence of this paragraph, the Governor shall designate an agency which is independent of any agency which provides treatment, services, or rehabilitation to individuals under this Act. If there is an agency in the State which has, or had, prior to the date of enactment of the Rehabilitation Amendments of 1984, served as a client assistance agency under this section and which received Federal financial assistance under this Act, the Governor may, in the initial designation, designate an agency which provides treatment, services, or rehabilitation to individuals with handicaps under this Act. [112-c-1](B) The Governor may not redesignate the agency designated under subparagraph (A) without good cause and only after notice and an opportunity for public comment has been given of the intention to make such redesignation. [112-c](2) In carrying out the provisions of this section, the Governor shall consult with the director of the State vocational rehabilitation agency, the head of the developmental disability protection and advocacy agency, and with representatives of professional and consumer organizations serving individuals with handicaps in the State. [112-c](3) The agency designated under this subsection shall be accountable for the proper use of funds made available to the agency. [112-c](4) For the purpose of this subsection, the term 'Governor' means the chief executive of the State. [112](d) The agency designated under subsection (c) of this section may not bring any class action in carrying out its responsibilities under this section. [112](e)(1)(A) The Secretary shall allot the sums appropriated for each fiscal year under this section among the States on the basis of relative population of each State, except that no State shall receive less than $50,000. [112-e-1](B) The Secretary shall allot $30,000 each to American Samoa, Guam, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. [112-e-1](C) For the purpose of this paragraph, the term `State` does not include American Samoa, Guam, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. [112-e-1](D)(i) In any fiscal year that the funds appropriated for such fiscal year exceed $7,500,000, the minimum allotment shall be $75,000 for States and $45,000 for territories. (ii) Subject to subsection (C), the Commissioner may increase the minimum allotment under subparagraph (A) for any fiscal year for which funds appropriated under this section for such fiscal year exceed the sums appropriated under this section for the preceding fiscal year by more than the percentage increase in the Consumer Price Index published monthly by the Bureau of Labor Statistics. [112-e](2) The amount of an allotment to a State for a fiscal year which the Secretary determines will not be required by the State during the period for which it is available for the purpose for which allotted shall be available for reallotment by the Secretary at appropriate times to other States with respect to which such a determination has not been made, in proportion to the original allotments of such States for such fiscal year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum the Secretary estimates such State needs and will be able to use during such period; and the total of such reduction shall be similarly reallotted among the States whose proportionate amounts were not so reduced. Any such amount so reallotted to a State for a fiscal year shall be deemed to be a part of its allotment for such fiscal year. [112-e](3) Except as specifically prohibited by or as otherwise provided in State law, the Secretary shall pay to the agency designated under subsection (c) the amount specified in the application approved under subsection (f). [112](f) No grant may be made under this section unless the State submits an application to the Secretary at such time, in such manner, and containing or accompanied by such information as the Secretary deems necessary to meet the requirements of this section. [112](g) The Secretary shall prescribe regulations applicable to the client assistance program which shall include the following requirements: [112-g](1) No employees of such programs shall, while so employed, serve as staff or consultants of any rehabilitation project, program, or facility receiving assistance under this Act in the State. [112-g](2) Each program shall be afforded reasonable access to policymaking and administrative personnel in the State and local rehabilitation programs, projects, or facilities. [112-g](3) Each program shall contain provisions designed to assure that to the maximum extent possible mediation procedures are used prior to resorting to administrative or legal remedies. [112-g](4) The agency designated under subsection (c) shall submit an annual report to the Secretary on the operation of the program during the previous year, including a summary of the work done and the uniform statistical tabulation of all cases handled by such program. 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 the Secretary's evaluation of the program, including appropriate recommendations. [112](h)(1) The Commissioner shall conduct a comprehensive evaluation of the client assistance program authorized by this section, and submit a report to Congress, not later than February 1, 1986. [112-h](2) In conducting the study required by this subsection, the Commissioner shall address and report the following information for each State that received a client assistance program grant. The study shall include-- [112-h-2](A) the numbers of individuals with handicaps assisted through the client assistance program; [112-h-2](B) the handicapping conditions of the individuals assisted, and the proportion each type of individuals represents of the total population assisted; [112-h-2](C) the types of services provided, cross-referenced to types of individuals with handicaps assisted through each service; [112-h-2](D) the type of organization or agency which administers the client assistance program; [112-h-2](E) the physical proximity of the client assistance program to the State vocational rehabilitation agency; and [112-h-2](F) the type of organizational structure used by the client assistance program to deliver services. [112-h](3) In conducting the study the Commissioner shall make the following comparisons: [112-h-3](A) differences in service delivery patterns in client assistance programs in urban and rural areas; [112-h-3](B) differences in service delivery patterns among client assistance programs administered in various organizational settings; and [112-h-3](C) differences in service delivery patterns among client assistance programs established after the date of the enactment of the Rehabilitation Amendments of 1984 and those that were established prior to the date of the enactment of the Rehabilitation Amendments of 1984. [112-h](4) The report shall include such recommendations, including recommendations for legislative proposals, as the Commissioner deems necessary. [112](i) There are authorized to be appropriated $7,100,000 for fiscal year 1987, $7,550,000 for fiscal year 1988, $8,000,000 for fiscal year 1989, $8,450,000 for fiscal year 1990, and $8,796,000 for fiscal year 1991, to carry out the provisions of this section. PART C--Innovation and Expansion Grants. SEC. 120. STATE ALLOTMENTS [120](a) 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 five 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. [120](b) Whenever the Commissioner determines that any amount of an allotment to a State for any fiscal year will not be utilized by such State in carrying out the purposes of this section, the Commissioner shall make such amount available for carrying out the purposes of this section to one or more other States which the Commissioner 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. SEC. 121. PAYMENTS TO STATES [121](a) From each State's allotment under this part for any fiscal year, the Commissioner shall pay to such State or, at the option of the State agency designated pursuant to section 101(a)(1), to a public or nonprofit organization or agency, a portion of the cost of planning, preparing for, and initiating special programs under the State plan approved pursuant to section 101 to expand vocational rehabilitation services including-- [121-a](1) programs to initiate or expand such services to individuals with the most severe handicaps; [121-a](2) special programs under such State plan to initiate or expand services to classes of individuals with handicaps who have unusual or difficult problems in connection with their rehabilitation; and [121-a](3) programs to maximize the use of technological innovations in meeting the employment training needs of both youths with handicaps and adults with handicaps. [121](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 1991. Payments with respect to any project may not exceed 90 per centum of the cost of such project. The non-Federal share of the cost of a project may be in cash or in kind and may include funds spent for project purposes by a cooperating public or nonprofit agency provided that it is not included as a cost in any other federally financed program. [121](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 Commissioner, and shall be made on such conditions as the Commissioner finds necessary to carry out the purposes of this section. PART D--American Indian Vocational Rehabilitation Services. SEC. 130. VOCATIONAL REHABILITATION SERVICES GRANTS [130](a) The Commissioner, in accordance with the provisions of this part, may make grants to the governing bodies of Indian tribes located on Federal and State reservations (and consortia of such governing bodies) to pay 90 percent of the costs of vocational rehabilitation services for American Indians with handicaps residing on such reservations. The non-Federal share of such costs may be in cash or in kind, fairly valued, and the Commissioner may waive such non-Federal share requirements in order to carry out the purposes of this Act. [130](b)(1) No grant may be made under this part for any fiscal year unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application unless the application-- [130-b-1](A) is made at such time, in such manner, and contains such information as the Commissioner may require; [130-b-1](B) contains assurances that the rehabilitation services provided under this part to American Indians with handicaps residing on a reservation in a State shall be, to the maximum extent feasible, comparable to rehabilitation services provided under this title to other individuals with handicaps residing in the State and that, where appropriate, may include services traditionally used by Indian tribes; and [130-b-1](C) contains assurances that the application was developed in consultation with the designated State unit of the State. [130-b](2) The provisions of sections 5, 6, 7, and 102(a) of the Indian Self- Determination and Education Assistance Act shall be applicable to any application submitted under this part. For purposes of this paragraph, any reference in any such provision to the Secretary of Education or to the Secretary of the Interior shall be considered to be a reference to the Commissioner. [130-b](3) Any application approved under this part shall be effective for not less than twelve months or more than 36 months, except as determined otherwise by the Commissioner pursuant to prescribed regulations. The State shall continue to provide vocational rehabilitation services under its State plan to American Indians residing on a reservation whenever such State includes any such American Indians in its State population under section 110(a)(1). [130-b](4) In making grants under this part, the Secretary shall give priority consideration to applications for the continuation of programs which have been funded under this part. [130-b](5) Nothing in this section may be construed to authorize a separate service delivery system for Indian residents of a State who reside in non- reservation areas. [130](c) The term "reservation" includes Indian reservations, public domain Indian allotments, former Indian reservations in Oklahoma, and land held by incorporated Native groups, regional corporations, and village corporations under the provisions of the Alaska Native Claims Settlement Act. SEC. 131. STUDY OF NEEDS OF AMERICAN INDIANS WITH HANDICAPS. The Secretary shall conduct a study on the special problems and needs of Indians with handicaps both on and off the reservation, in consultation with the Director of the Office of Special Education and Rehabilitation Services, the Director of the National Institute on Disability and Rehabilitation Research, the Assistant Secretary of the Interior for Indian Affairs, the Director of Indian Health Services, representatives of affected Indian tribes and tribal groups, and other appropriate officials, organizations, and individuals. The study shall also evaluate the nature and extent of the cooperative efforts among programs conducted under this Act. Not later than 12 months after the date of the enactment of the Rehabilitation Act Amendments of 1986, the Secretary shall submit the results of such study, together with such recommendations as are appropriate, to the President and the appropriate committees of the Congress.