TITLE I-VOCATIONAL REHABILITATION SERVICES Part A-General Provisions SEC. 100. DECLARATION OF POLICY; AUTHORIZATION OF APPROPRIATIONS (a)(1) Congress finds that" (A) work" (i) is a valued activity, both for individuals and society; and (ii) fulfills the need of an individual to be productive, promotes independence, enhances self-esteem, and allows for participation in the mainstream of life in America; (B) as a group, individuals with disabilities experience staggering levels of unemployment and poverty; (C) individuals with disabilities, including individuals with the most severe disabilities, have demonstrated their ability to achieve gainful employment in integrated settings if appropriate services and supports are provided; (D) reasons for the significant number of individuals with disabilities not working, or working at a level not commensurate with their abilities and capabilities, include" (i) discrimination; (ii) lack of accessible and available transportation; (iii) fear of losing health coverage under the Medicare and Medicaid programs under titles XVIII and XIX of the Social Security Act (42 U.S.C. 1395 et seq. and 1396 et seq.) or fear of losing existing private health insurance; and (iv) lack of education, training, and supports to meet job qualification standards necessary to enter or retain or advance in employment; (E) enforcement of title V and of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101 et seq. ) holds the promise of ending discrimination of individuals with disabilities; and (F) the provision of vocational rehabilitation services can enable individuals with disabilities, including individuals with the most severe disabilities, to pursue meaningful careers by securing gainful employment commensurate with their abilities and capabilities. (2) The purpose of this title is to assist States in operating a comprehensive, coordinated, effective, efficient, and accountable program of vocational rehabilitation that is designed to assess, plan, develop, and provide vocational rehabilitation services for individuals with disabilities, consistent with their strengths, resources, priorities, concerns, abilities, and capabilities, so that such individuals may prepare for and engage in gainful employment. (3) It is the policy of the United States that such a program shall be carried out in a manner consistent with the following principles: (A) Individuals with disabilities, including individuals with the most severe disabilities, are generally presumed to be capable of engaging in gainful employment and the provision of individualized vocational rehabilitation services can improve their ability to become gainfully employed. (B) Individuals with disabilities must be provided the opportunities to obtain gainful employment in integrated settings. (C) Individuals with disabilities must be active participants in their own rehabilitation programs, including making meaningful and informed choices about the selection of their vocational goals and objectives and the vocational rehabilitation services they receive. (D) Families and natural supports can play an import role in the success of a vocational rehabilitation program, if the individual with a disability requests, desires, or needs such supports. (E) Qualified vocational rehabilitation counselors, other qualified rehabilitation personnel, and other qualified personnel facilitate the accomplishment of the employment goals and objectives of an individual. (F) Individuals with disabilities and their advocates are full partners in the vocational rehabilitation program and must be involved on a regular basis and in a meaningful manner with respect to policy development and implementation. (G) Accountability measures must facilitate and not impede the accomplishment of the goals and objectives of the program, including providing vocational rehabilitation services to, among others, individuals with the most severe disabilities. (b)(1) For the purposes of making grants to States under part B (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 are authorized to be appropriated such sums as may be necessary of fiscal years 1993 through 1997, except that the amount to be appropriated for a fiscal year shall not be less than the amount of the appropriation under this subsection for the immediately preceding fiscal year, plus the amount of the Consumer Price Index addition determined under subsection (c) for the immediately preceding fiscal year. (2) There are authorized to be appropriated to carry out part C such sums as may be necessary for fiscal years 1993 through 1997. (c)(1) No later than November 15 of each fiscal year (beginning with the fiscal year 1979), the Secretary of Labor shall publish in the Federal Register the percentage change in the price index published for October of the preceding fiscal year and October of the fiscal year in which such publication is made. (2)(A) If in any fiscal year the percentage change published under paragraph (1) indicates an increase in the price index, then the amount to be appropriated under subsection (b) for the subsequent fiscal year shall be at least the amount appropriated for the fiscal year in which the publication is made under paragraph (1) increased by such percentage change. (B) If in any fiscal year the percentage change published under paragraph (1) does not indicate an increase in the price index, then the amount to be appropriated under subsection (b) for the subsequent fiscal year shall be at least the amount appropriated for the fiscal year in which the publication is made under paragraph (1). (3) For purposes of this subsection, the term Consumer price index means the Consumer Price Index for All Urban Consumers, published monthly by the Bureau of Labor Statistics. (d)(1)(A) Unless the Congress in the regular session which ends prior to the beginning of the terminal fiscal year" (i) of the authorization of appropriations for the program authorized by the State grant program under part B of this title; or (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. (B) The amount authorized to be appropriated for the additional fiscal year described in subparagraph (A) shall be the amount equal to the amount appropriated for such program for fiscal year plus the amount of the Consumer Price Index addition determined under subsection (c) for the immediately preceding fiscal year. (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 (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 3-year period, or shall submit the plan on such date, and at such regular intervals, as the Secretary may determine to be appropriate to coincide with the intervals at which the State submits State plans under other Federal laws, such as part B of the Individuals with Disabilities Education Act (20 U.S.C. 1411 et seq.). In order to be eligible to participate in programs under this title, a State, upon the request of the Commissioner, shall make such annual revisions in the plan as may be necessary. (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 individuals who are blind or other agency which provides assistance or services to adults who are 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 individuals who are 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, (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 disabilities, and may waive compliance with respect to vocational rehabilitation services furnished under such programs with the requirement of paragraph (4) of this subsection that the plan be in effect in all political subdivisions of that State; (iii) in the case of American Samoa, the appropriate State agency shall be the Governor of American Samoa. (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 subparagraph (A) of this paragraph) to supervise or administer the part of the State plan that does not relate to services for individuals who are blind, shall be (i) a State agency primarily concerned with vocational rehabilitation, or vocational and other rehabilitation, of individuals with disabilities, (ii) the State agency administering or supervising the administration of education or vocational education in the State, or (iii) a State agency which includes at least two other major organizational units each of which administers one or more of the major public education, public health, public welfare, or labor programs of the State; (2) provide, except in the case of agencies described in paragraph (1)(B)(i)" (A) that the State agency designated pursuant to paragraph (1) (or each State agency if two are so designated) shall include a vocational rehabilitation bureau, division, or other organizational unit which (i) is primarily concerned with vocational rehabilitation, or vocational and other rehabilitation, of individuals with disabilities, and is responsible for the vocational rehabilitation program of such State agency, (ii) has a full-time director, and (iii) has a staff employed on such rehabilitation work of such organizational unit all or substantially all of whom are employed full time on such work; and (B)(i) that such unit shall be located at an organizational level and shall have an organizational status within such State agency comparable to that of other major organizational units of such agency, or (ii) in the case of an agency described in paragraph (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 paragraph (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 individuals who are 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 paragraph applying separately to each of such units; (3) provide for financial participation by the State, or if the State so elects, by the State and local agencies to meet the amount of the non-Federal share; (4) provide that the plan shall be in effect in all political subdivisions, except that in the case of any activity which, in the judgment of the Commissioner, is likely to assist in promoting the vocational rehabilitation of substantially larger numbers of individuals with disabilities or groups of individuals with disabilities 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 him, but only if the non-Federal share of the cost of such vocational rehabilitation services is met from funds made available by a local agency (including, to the extent permitted by such regulations, funds contributed to such agency by a private agency, organization, or individual); (5)(A) contain the plans, policies, and methods to be followed in carrying out the State plan and in its administration and supervision, including the results of a comprehensive, State-wide assessment of the rehabilitation needs of individuals with severe disabilities 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 disabilities with the most severe disabilities including individuals served under part C of title VI of this Act, and a description of the method to be used to utilize community rehabilitation programs to the maximum extent feasible, an explanation of the methods by which the State will provide vocational rehabilitation services to all individuals with disabilities within the State who are eligible for such services, and, in the event that vocational rehabilitation services cannot be provided to all eligible individuals with disabilities 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 individuals with the most severe disabilities in accordance with criteria established by the State, and shall be consistent with priorities in such order of selection so determined, and outcome and service goals for serving individuals with disabilities, established in regulations prescribed by the Commissioner; (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 disabilities including the use of funds under part C of title VI to supplement funds under part B of this title to pay for the cost of services leading to supported employment; and (C) describe" (i) how a broad range of rehabilitation technology services will be provided at each stage of the rehabilitation process; (ii) how a broad range of such rehabilitation technology services will be provided on a state-wide basis; and (iii) the training that will be provided to vocational rehabilitation counselors, client assistance personnel, and other related services personnel; (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 disabilities 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, with section 504 of this Act, and with the Americans with Disabilities Act of 1990.; (7)(A) include a description (consistent with the purposes of this Act) of a comprehensive system of personnel development, which shall include" (i) a description of the procedures and activities the State agency will undertake to ensure an adequate supply of qualified State rehabilitation professionals and paraprofessionals for the designated State unit, including the development and maintenance of a system for determining, on an annual basis" (I) the number and type of personnel that are employed by the State agency in the provision of vocational rehabilitation services, including ratios of counselors to clients; and (II) the number and type of personnel needed by the State, and a projection of the numbers of such personnel that will be needed in 5 years, based on projections of the number of individuals to be served, the number of such personnel who are expected to retire or leave the field, and other relevant factors; (ii) where appropriate, a description of the manner in which activities will be undertaken through this section to coordinate the system of personnel development with personnel development under the Individuals with Disabilities Education Act (20 U.S.C. 1400 et seq.) (iii) a description of the development and maintenance of a system of determining, on an annual basis, information on the institutions of higher education within the State that are preparing rehabilitation professionals, including" (I) the numbers of students enrolled in such programs; and (II) the number who graduated with certification or licensure, or with credentials to qualify for certification or licensure, during the past year; (iv) a description of the development, updating, and implementation of a plan that" (I) will address the current and projected vocational rehabilitation services personnel training needs for the designated State unit; and (II) provides for the coordination and facilitation of efforts between the designated State unit and institutions of higher education (as defined in section 1201 (a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a))) and professional associations to recruit, prepare and retain qualified personnel, including personnel from minority backgrounds, and personnel who are individuals with disabilities; and (v) a description of the procedures and activities the State agency will undertake to ensure that all personnel employed by the designated State unit are appropriately and adequately trained and prepared, including" (I) a system for the continuing education of rehabilitation professionals and paraprofessionals within the designated State unit, particularly with respect to rehabilitation technology; and (II) procedures for acquiring and disseminating to rehabilitation professionals and paraprofessionals within the designated State unit significant knowledge from research and other sources, including procedures for providing training regarding the amendments to the Rehabilitation Act of 1973 made by the Rehabilitation Act Amendments of 1992; (B) set forth policies and procedures relating to the establishment and maintenance of standards to ensure that personnel, including professionals and paraprofessionals, needed within the State agency to carry out this part are appropriately and adequately prepared and trained, including" (i) the establishment and maintenance of standards that are consistent with any national or State approved or recognized certification, licensing, registration, or other comparable requirements that apply to the area in which such personnel are providing vocational rehabilitation services; and (ii) to the extent such standards are not based on the highest requirements in the State applicable to a specific profession or discipline, the steps the State is taking to require the retraining or hiring of personnel within the designated State unit that meet appropriate professional requirements in the State; and (C) contain provisions relating the establishment and maintenance of minimum standards to ensure the availability of personnel within the designated State unit, to the maximum extent feasible, trained to communicate in the native language or mode of communication of the client; (8) provide, at a minimum, for the provision of the vocational rehabilitation services specified in paragraphs (1) through (3) and paragraph 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 except that such a determination shall not be required" (A) if the determination would delay the provision of such services to any individual at extreme medical risk; or (B) prior to the provision of such services if an immediate job placement would be lost due to a delay in the provision of such comparable benefits; (9) provide that" (A) to the maximum extent appropriate, and consistent with the requirements of this Act, existing information available from other programs and providers (particularly information used by education officials and the Social Security Administration) and information that can be provided by the individual with a disability or the family of the individual shall be used for purposes of determining eligibility for vocational rehabilitation services and for choosing rehabilitation goals, objectives, and services; (B) an individual written rehabilitation program meeting the requirements of section 102 will be developed for each individual with a disability eligible for vocational rehabilitation services under this Act; (C) such services will be provided under the plan in accordance with such program, and; (D) 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 him to analyze and evaluate annually the reasons for and numbers of such ineligibility determinations as part of his 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; (10)(A) provide that the State agency will make such reports in such form, containing such information (including the data described in subparagraph (C) of paragraph (9) of this subsection, periodic estimates of the population of individuals with disabilities 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 paragraph (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; and (B) provide that reports under subparagraph (A) will include information on" (i) the number of such individuals who are evaluated and the number rehabilitated; (ii) the costs of administration, counseling, provision of direct services, development of community rehabilitation programs, and other functions carried out under this Act; and (iii) the utilization by such individuals of other programs pursuant to paragraph (11); (11)(A) provide for interagency cooperation 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 disabilities, 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 disabilities (specifically including arrangements for the coordination of services to individuals eligible for services under this Act, the Education of the Handicapped Act, (20 U.S.C. 1400 et seq.), the Carl D. Perkins Vocational and Applied Technology Education Act (20 U.S.C. 2301 et seq.), and the act entitled "an act to create a committee on purchases of blind-made products and for other purposes", approved June 25, 1938, (commonly known as the Wagner-O'Day Act; 41 U.S.C. 46 et seq.); (B) provide that cooperation under subparagraph (A) shall include, to the extent practicable, means for providing training to staff of the agencies described in subparagraph (A) as to the availability and benefits of, and eligibility standards for, vocational rehabilitation services, in order to enhance the opportunity of individuals receiving the services described in subparagraph (A) to obtain vocational rehabilitation services; and (C) in providing for interagency cooperation under subparagraph (A), provide for such cooperation by means including, if appropriate" (i) establishing interagency working groups; and (ii) entering into formal interagency cooperative agreements that" (I) identify policies, practices, and procedures that can be coordinated among the agencies (particularly definitions, standards for eligibility, the joint sharing and use of evaluations and assessments, and procedures for making referrals); (II) identify available resources and define the financial responsibility of each agency for paying for necessary services (consistent with State law) and procedures for resolving disputes between agencies; and (III) include all additional components necessary to ensure meaningful cooperation and coordination; (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 programs or other appropriate resources in the community; and (B) provide (as appropriate) for entering into agreements with the operators of community rehabilitation programs for the provision of services for the rehabilitation of individuals with disabilities; (13)(A) provide that vocational rehabilitation services provided under the State plan shall be available to any civil employee of the United States disabled while in the performance of his duty on the same terms and conditions as apply to other persons, and (B) provide that special consideration will be given to the rehabilitation under this act of an individual with a disability whose disability was sustained in the line of duty while such individual was performing as a public safety officer and the proximate cause of such disability was a criminal act, apparent criminal act, or hazardous condition resulting directly from the officer's performance of duties in direct connection with the enforcement, execution, and administration of law or fire prevention, fire fighting, or related public safety activities; (14) provide that no residence requirement will be imposed which excludes from services under the plan any individual who is present in the State; (15) provide for continuing; and statewide studies of the needs of individuals with disabilities and how these needs may be most effectively met, (A) including a full needs assessment for serving individuals with severe disabilities and (B) including the capacity and effectiveness of community rehabilitation programs, plans for improving such programs and policies for the use thereof by the State agency; (C) review of the efficacy of the criteria employed with respect to 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 disabilities and the need for expansion of services to those individuals with the most severe disabilities; and (D) outreach procedures to identify and serve individuals with disabilities who are minorities and individuals with disabilities who have been unserved or underserved by the vocational rehabilitation system. (16) provide for" (A)(i) at least annual review and reevaluation of the status of each individual with a disability placed in an extended employment setting in a community rehabilitation program (including a workshop) or other employment under section 14(c) of the Fair Labor Standards Act (29 U.S.C. 214(c)), to determine the interests, priorities, and needs of the individual for employment, or training for competitive employment, in an integrated setting in the labor market; and (ii) input into the review and reevaluation by the individual with a disability, or, in an appropriate case, a parent, a family member, a guardian, an advocate, or an authorized representative, of the individual, if the individual requests, desires, or needs assistance; (B) maximum efforts, including the identification of vocational rehabilitation services, reasonable accommodations, and other support services, to enable such an individual to benefit from training or to be placed in employment in an integrated setting; and (C) services designed to promote movement from extended employment to integrated employment, including supported employment, independent living, and community participation; (17) provide that if, under special circumstances, the State plan includes provisions for the construction of facilities for community rehabilitation programs" (A) the Federal share of the cost of construction thereof for a fiscal year will not exceed an amount equal to 10 per centum of the State's allotment for such year. (B) the provisions of section 306 shall be applicable to such construction and such provisions shall be deemed to apply to such construction, and (C) there shall be compliance with regulations the 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 facilities for community rehabilitation programs) because its plan includes such provisions for construction; (18) provide satisfactory assurances to the Commissioner that the State agency designated pursuant to paragraph (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, providers of vocational rehabilitation services, and the Director of the client assistance program under section 112. (19) provide satisfactory assurance to the Commissioner that the continuing studies required under paragraph (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, and for developing and updating the strategic plan required under part C.; (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 who are individuals with disabilities residing in the State to the same extent as the State provides such services to other significant segments of the population of individuals with disabilities residing in the State; (21) provide that the State agency has the authority to enter into contracts with profit making organizations for the purpose of providing on-the-job training and related programs for individuals with disabilities under part B of title VI upon a determination by such agency that such profit making organizations are better qualified to provide such rehabilitation services than nonprofit agencies and organizations; (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 individuals who are deaf) in sufficient numbers to assure that individuals with disabilities within the State are afforded accurate vocational rehabilitation information and appropriate referrals to other Federal and State programs and activities which would benefit them; (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, before development of the plan by the State, (B) include a summary of such comments and the State agency's response to such comments, and (C) provide satisfactory assurances that the State agency will consult with the Director of the client assistance program under section 112 in the formulation of policies governing the provision of vocational rehabilitation services consistent with the State plan and other revisions; (24) contain plans, policies, and procedures to be followed (including entering into a formal interagency cooperative agreement, in accordance with paragraph (11)(C)(ii), with education officials responsible for the provision of a free appropriate public education to students who are individuals with disabilities) that are designed to" (A) facilitate the development and accomplishment of" (i) long-term rehabilitation goals; (ii) intermediate rehabilitation objectives; and (iii) goals and objectives related to enabling a student to live independently before the student leaves a school setting, to the extent the goals and objectives described in clauses (i) through (iii) are included in an individualized education program of the student, including the specification of plans for coordination with the educational agencies in the provision of transition services; (B) facilitate the transition from the provision of a free appropriate public education under the responsibility of an education agency to the provision of vocational rehabilitation services under the responsibility of the designated State unit, including the specification of plans for coordination with education agencies in the provision of transition services authorized under section 103(a)(14) to an individual, consistent with the individualized written rehabilitation program of the individual; and (C) provide that such plans, policies, and procedures will address" (i) provisions for determining State lead agencies and qualified personnel responsible for transition services; (ii) procedures for outreach to and identification of youth in need of such services; and (iii) a timeframe for evaluation and followup of youth who have received such services. (25) provide assurances satisfactory to the Secretary that the State has an acceptable plan for carrying out part C of title VI, including the use of funds under that part to supplement funds under part B of this title for the cost of services leading to supported employment. (26) described the manner in which on-the-job or other related personal assistance services will be provided to assist individuals with disabilities while the individuals are receiving vocational rehabilitation services; (27) describe the manner in which cooperative agreements with private nonprofit vocational rehabilitation service providers will be established; (28) identify the needs and utilization of community rehabilitation programs under the Act commonly known as the Wagner-O'Day Act (41 U.S.C. 46 et seq.); (29) described the manner in which individuals with disabilities will be given choice and increased control in determining their vocational rehabilitation goals and objectives; (30) describe the manner in which students who are individuals with disabilities and who are not in special education programs can access and receive vocational rehabilitation services, where appropriate; (31) describe the manner in which assistive technology devices and services will be provided; or worksite assessments will be made as part of the assessment for determining eligibility and vocational rehabilitation needs of an individual; (32) describe the manner in which the State will modify the policies and procedures of the State based on consumer satisfaction surveys conducted by the State Rehabilitation Advisory Council; (33) provide for coordination and working relationships with the Statewide Independent Living Council established under section 705 and independent living centers within the State; (34) provide satisfactory assurances to the Commissioner that the State" (A) has developed and implemented a strategic plan for expanding and improving vocational rehabilitation services for individuals with disabilities on a statewide basis in accordance with part C of this title; and (B) will use at least 1.5 percent of the allotment of the State under part B for the uses described in section 123; (35)(A) describe how the system for evaluating the performance of rehabilitation counselors, coordinators, and other personnel used in the State facilitates the accomplishment of the purpose and policy of this title, including the policy of serving, among others, individuals with the most severe disabilities; and (B) provide satisfactory assurances that the system in no way impedes such accomplishment; and (36) provide satisfactory assurances to the Commissioner that" (A)(i) the State has established a State Rehabilitation Advisory council that meets the criteria set forth in section 105; (ii) the designated State agency and the disunited State unit seek and seriously consider on a regular and ongoing basis advice from the Council regarding the development and implementation of the State plan and the strategic plan and amendments to the plans, and other policies and procedures of general applicability pertaining to the provision of vocational rehabilitation services in the State; (iii) the designated State agency includes, in its State plan or an amendment to the plan, a summary of advice provided by the Council, including recommendations from the annual report of the Council, the survey of consumer satisfaction, and other reports prepared by the Council, and the response of the designated State agency to such advice and recommendations (including explanations with respect to advice and recommendations that were rejected); and (iv) the designated State unit transmits to the Council" (I) all plans, reports, and other information required under the Act to be submitted to the Commissioner; (II) all policies, practices, and procedures of general applicability provided to or used by rehabilitation personnel; and (III) copies of due process hearing decisions, which shall be transmitted in such a manner as to preserve the confidentiality of the participants in the hearing; (B) an independent commission" (i) is responsible under State law for overseeing the operation of the designated State agency; (ii) is consumer-controlled by persons who" (I) are individuals with physical or mental impairments that substantially limit major life activities; and (II) represent individuals with a broad range of disabilities; (iii)includes individuals representing family members, advocates, and authorized representatives of individuals with mental impairments; and (iv) undertakes the function set forth in section 105(c)(3); or (C) in the case of a State that, under section 101(a)(1)(A)(i), designated a State agency to administer the part of the State plan under which vocational rehabilitation services are provided for individuals who are blind and designates a separate State agency to administer the remainder of the State plan" (i) an independent commission is responsible under State law for overseeing both such agencies and meets the requirements of subparagraph (B)(ii); or (ii)(I) an independent commission is responsible under State law for overseeing the first agency described in this subparagraph and meets the requirements of subparagraph (B)(ii); and (II) an independent commission is responsible under State law for overseeing the second State agency described in this subparagraph and is required by such State law to be consumer-controlled by individuals who are blind and to represent individuals who are blind. (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. SEC. 102. INDIVIDUALIZED WRITTEN REHABILITATION PROGRAM (a)(1) An individual is eligible for assistance under this title if the individual" (A) is an individual with a disability under section 7(8)(A); and (B) requires vocational rehabilitation services to prepare for, enter, engage in, or retain gainful employment. (2) An individual who has a disability or is blind as determined pursuant to title II or title XVI of the Social Security Act (42 U.S.C. 401 et seq. and 1381 et seq.) shall be considered to have" (A) a physical or mental impairment which for such individual constitutes or result in a substantial impediment to employment under section 7(8)(A)(i); and (B) a severe physical or mental impairment which seriously limits one or more functional capacities in terms of an employment outcome under section 7(15)(A)(i). (3) Determinations made by officials of other agencies, particularly the education officials described in section 101(a)(24), regarding whether an individual satisfies one or more factors relating to whether an individual is an individual with a disability under section 7(8)(A) or an individual with a severe disability under section 7(15)(A), shall be used (to the extent appropriate and available and consistent with the requirements under this Act) for making such determinations under this Act. (4)(A) It shall be presumed that an individual can benefit in terms of an employment outcome from vocational rehabilitation services under section 7(8)(A)(ii), unless the designated State unit can demonstrate by clear and convincing evidence that such individuals is incapable of benefiting from vocational rehabilitation services in terms of an employment outcome. (B) In making the demonstration required under subparagraph (A) with respect to cases in which the issue concerns the severity of the disability of an individual, the designated State unit shall first conduct an extended evaluation by providing the services described in subparagraph (C)(iii)(I), and conducting the assessment described in subparagraph (C)(iii)(II), of section 7(22). (5)(A) The designated State unit shall determine whether an individual is eligible for vocational rehabilitation services under this title within a reasonable period of time, not to exceed 60 days after the individuals has submitted an application to receive the services unless" (i) the designated State unit notifies the individual that exceptional and unforeseen circumstances beyond the control of the agency preclude the agency from completing the determination within the prescribed time and the individual agrees that an extension of time is warranted; or (ii) such an extended evaluation is required. (B) The determination of eligibility shall be based on the review of existing data described in section 7(22)(A)(i), and, to the extent necessary, the preliminary assessment described in section 7(22)(A)(iii). (6) The designated State unit shall ensure that a determination of ineligibility made with respect to an individual prior to the initiation of an individualized written rehabilitation program, based on the review, and to the extent necessary, the preliminary assessment, shall include specification of" (A) the reasons for such a determination; (B) the rights and remedies available to the individual, including, if appropriate, recourse to the processes set forth in subsections (b)(2) and (d); and (C) the availability of services provided by the client assistance program under section 112 to the individual. (b)(1)(A) As soon as a determination has been made that an individual is eligible for vocational rehabilitation services, the designated State unit shall complete an assessment for determining eligibility and vocational rehabilitation needs described in subparagraphs (B) and (C) of section 7(22) (if such assessment is necessary) and ensure that" (i) an individualized written rehabilitation program is jointly developed, agreed upon, and signed by" (I) such eligible individual (or, in an appropriate case, a parent, a family member, a guardian, an advocate, or an authorized representative, of such individual); and (II) the vocational rehabilitation counselor or coordinator; and (ii) such program meets the requirements set forth in subparagraph (B). (B) Each individualized written rehabilitation program shall" (i) be designed to achieve the employment objective of the individual, consistent with the unique strengths, resources, priorities, concerns, abilities, and capabilities, of the individual; (ii) include a statement of the long-term rehabilitation goals based on the assessment for determining eligibility and vocational rehabilitation needs described in section 7(22)(B), including an assessment of career interests, for the individual, which goals shall, to the maximum extent appropriate; include placement in integrated settings; (iii) include a statement of the intermediate rehabilitation objectives related to the attainment of such goals, determined through such assessment carried out in the most individualized and integrated setting (consistent with the informed choice of the individual); (iv)(I) 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; (II) if appropriate, include a statement of the specific rehabilitation technology services to be provided to assist in the implementation of intermediate rehabilitation objectives and long-term rehabilitation goals for the individual; and (III) if appropriate, include a statement of the specific on-the-job and related personal assistance services to be provided to the individual, and if appropriate and desired by the individual, the training in managing, supervising, and directing personal assistance services to be provided to the individual; (v) include an assessment of the expected need for post employment services and, if appropriate, extended services (vi) provide for" (I) a reassessment of the need for postemployment services and, if appropriate, extended services prior to the point of successful rehabilitation, in accordance with this subsection; and (II) if appropriate, the development of a statement detailing how such services shall be provided or arranged through cooperative agreements with other service providers; (vii) include objective criteria and an evaluation procedure and schedule for determining whether such goals and objectives are being achieved; (viii) include the terms and conditions under which goods and services described above will be provided to the individual in the most integrated settings; (ix) identify the entity or entities that will provide the vocational rehabilitation services and the process used to provide or procure such services; (x) include a statement by the individual, in the words of the individual (or, if appropriate, in the words of a parent, a family member, a guardian, an advocate, or an authorized representative of the individual), describing how the individual was informed about and involved in choosing among alternative goals, objectives, services, entities providing such services, and methods used to provide or procure such services; (xi) include, if necessary, an amendment specifying" (I) the reasons that an individual for whom a program has been prepared is no longer eligible for vocational rehabilitation services; and (II) the rights and remedies available to such an individual including, if appropriate, recourse to the processes set forth in subsection (b)(2) and (d); (xii) set forth the rights and remedies available to such an individual including, if appropriate, recourse to the processes set forth in subsections (b)(2) and (d); (xiii) provide a description of the availability of a client assistance program established pursuant to section 112; (xiv) to the maximum extent possible, be provided in the native language, or mode of communication, of the individual, or, in an appropriate case, of a parent, a family member, a guardian, an advocate, or an authorized representative, of such individual; and (xv) include information identifying other related services and benefits provided pursuant to any Federal, State, or local program that will enhance the capacity of the individual to achieve the vocational objectives of the individual. (C) The designated State unit shall furnish a copy of the individualized written rehabilitation program and amendments to the program to the individual with a disability or, in an appropriate case, a parent, a family, member, a guardian, an advocate, or an authorized representative, of the individual; and (2) Each individualized written rehabilitation program shall be reviewed annually at which time such individual (or in appropriate cases, the parents or guardians of the individual) will be afforded an opportunity to review such program and jointly redevelop and agree to its terms. Any revisions or amendments to the program resulting from such review shall be incorporated into or affixed to such program. Such revisions or amendments shall not take effect until agreed to and signed by the individual with a disability, or, if appropriate, by a parent, a family member, a guardian, an advocate, or an authorized representative, of such individual. Each individualized written rehabilitation program shall be revised as needed. (c) The Director of the designated State unit shall also ensure" (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 a disability, emphasis is placed upon the determination and achievement of a vocational goal for such individual, (2) a decision that such an individual is not capable of achieving such a goal and thus 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 assessment for determining eligibility and vocational rehabilitation needs described in subparagraphs (B) and (C) of section 7(22), as appropriate, has demonstrated that such individual is not then capable of achieving such a goal, and (3) any such decision, as an amendment to such written program, shall be reviewed at least annually in accordance with the procedure and criteria established in this section. (d)(1) 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 disabilities (or, in appropriate cases, such individual's parents or guardian). (2)(A) 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). (B)The impartial hearing officer shall be selected to hear a particular case" (i) on a random basis; or (ii) by agreement between" (I) the Director of the designated State unit and the individual with a disability; or (II) in an appropriate case, the Director and a parent, a family member, a guardian, an advocate, or an authorized representative, of such individual. (C) The impartial hearing officer shall be selected from among a pool of qualified persons identified jointly by" (i) the designated State unit; and (ii)(I) the members of the State Rehabilitation Advisory Council established under section 105 who were appointed under one of subparagraphs (E) through (H) of section 105(b)(1); (II) the commission described in subparagraph (B) or (C)(i) of section 101(a)(36); or (III) the commissions described in section 101(a)(36)(C)(ii). (3)(A) Within 20 days of the mailing of the decision to the individual with disabilities (or, in appropriate cases, such individual's parents or guardian), the Director shall notify such individuals of the intent to review such decision in whole or in part. (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. (C)(i) The Director may not overturn or modify a decision of an impartial hearing officer, or part of such a decision, that supports the position of the individual unless the Director concludes, based on clear and convincing evidence, that the decision of the independent hearing officer is clearly erroneous on the basis of being contrary to Federal or State Law, including policy. (ii) A final decision shall be made in writing by the Director and shall include a full report of the findings and the ground for such decision. (iii) Upon making a final decision, the Director shall provide a copy of such decision to such individuals. (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. (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. (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. (5) Unless the individual with a disability so requests, or, in an appropriate case, a parent, a family member, a guardian, an advocate, or an authorized representative, of such individual so requests, pending a final determination of such hearing or other final resolution under this subsection, the designated State unit shall not institute a suspension, reduction, or termination of services being provided under the individualized written rehabilitation program, unless such services have been obtained through misrepresentation, fraud, collusion, or criminal conduct on the part of the individual with a disability. (6)(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. (B) The data required to be collected under this paragraph shall include" (1) a description of State procedure for review; (2) the number of appeals to the independent hearing officer and the State Director, including the type of complaint and the issues involved; (3) the number of decisions by the State Director reversing in whole or in part the decision of the impartial hearing officer; and (4) the number of decisions affirming the position of the individual with a disability assisted through the client assistance program. SEC. 103. SCOPE OF VOCATIONAL REHABILITATION SERVICES (a) Vocational rehabilitation services provided under this Act are any goods or services necessary to render an individual with a disability employable, including, but not limited to, the following: (1) An assessment for determining eligibility and vocational rehabilitation needs by qualified personnel, including, if appropriate, an assessment by personnel skilled in rehabilitation technology; (2) counseling, guidance, and work related placement services for individuals with a disability, including job search assistance, placement assistance, job retention services, personal assistance services, and followup, follow-along, and specific postemployment services necessary to assist such individuals maintain, regain, or advance in employment, (3) vocational and other training services for individuals with disabilities, which shall include personal and vocational adjustment, books, or other training materials, and such services to the families of such individuals as are necessary to the adjustment or rehabilitation of such individuals: except that no training services in institutions of higher education shall be paid for with funds under this title unless maximum efforts have been made to secure grant assistance, in whole or in part, from other sources to pay for such training; (4) physical and mental restoration services, including, but not limited to, (A) corrective surgery or therapeutic treatment necessary to correct or substantially modify a physical or mental condition which is stable or slowly progressive and constitutes a substantial impediment to employment, but is of such nature that such correction or modification may reasonably be expected to eliminate or reduce such impediment within a reasonable length of time, (B) necessary hospitalization in connection with surgery or treatment, (C) prosthetic and orthotic devices, (D) eyeglasses and visual services as prescribed by a physician skilled in the diseases of the eye or by an optometrist, whichever the individual may select, (E) special services (including transplantation and dialysis), artificial kidneys, and supplies necessary for the treatment of individuals with end-stage renal disease, and (F) diagnosis and treatment for mental and emotional disorders by a physician or licensed psychologist in accordance with State licensure laws; (5) maintenance for additional cost incurred while participating in rehabilitation; (6) interpreter services for individuals who are deaf, 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; (7) recruitment and training services for individuals with disabilities to provide them with new employment opportunities in the fields of rehabilitation, health, welfare, public safety, and law enforcement, and other appropriate service employment; (8) rehabilitation teaching services and orientation and mobility services for individuals who are blind; (9) occupational licenses, tools, equipment, and initial stocks and supplies; (10) transportation in connection with the rendering of any vocational rehabilitation service; (11) telecommunications, sensory, and other technological aids and devices; (12) rehabilitation technology services. (13) Referral and other services designed to assist individuals with disabilities in securing needed services from other agencies through agreements developed under section 101(a)(11), if such services are not available under this Act; (14) Transition services that promote or facilitate the accomplishment of long-term rehabilitation goals and intermediate rehabilitation objectives; (15) On-the-job or other related personal assistance services provided while an individual with a disability is receiving services described in this section; and (16) supported employment services. (b) Vocational rehabilitation services, when provided for the benefit of groups of individuals, may also include the following: (1) In the case of any type of small business operated by individuals with the most severe disabilities 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. (2) The establishment, development, or improvement of community rehabilitation programs, including, under special circumstances, the construction of a facility and the provision of other services (including services offered at community rehabilitation programs) 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 a disability. Such programs shall be used to provide services that promote integration and competitive employment. (3) The use of existing telecommunications systems (including telephone, television, satellite, radio, and other similar systems) which have the potential for substantially improving service delivery methods, and the development of appropriate programming to meet the particular needs of individuals with disabilities. (4) The use of services providing recorded material for individuals who are blind and captioned films or video cassettes for individuals who are deaf. (5) Technical assistance and support services to businesses that are not subject to title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.) and that are seeking to employ individuals with disabilities. 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 establishment of a community rehabilitation program or construction, under special circumstances, of a facility for such a program which would be regarded as State or local funds except for the condition, imposed by the contributor, limiting use of such funds to establishment of such a program or construction of such a facility. SEC. 105. STATE REHABILITATION ADVISORY COUNCIL (a) ESTABLISHMENT (1) IN GENERAL Except as provided in subparagraph (B) or (C) of section 101(a)(36), to be eligible to receive financial assistance under this title a State shall establish a State Rehabilitation Advisory Council (referred to in this section as the "Council") in accordance with this section. (2) SEPARATE AGENCY FOR INDIVIDUALS WHO ARE BLIND A State that designates a State agency to administer the part of the State plan under which vocational rehabilitation services are provided for individuals who are blind under section 101(a)(1)(A)(i) may establish a separate Council in accordance with this section to perform the duties of such a Council with respect to such State agency. (b) COMPOSITION AND APPOINTMENT (1) COMPOSITION The Council shall be composed of" (A) At least one representative of the Statewide Independent Living Council established under section 705, which representative may be the chairperson or other designee of the Council; (B) At least one representative of a parent training and information center established pursuant to section 631(c)(9) of the Individuals with Disabilities Education Act (20 U.S.C. 1431(c)(9); (C) At least one representative of the client assistance program established under section 112; (D) At least one vocational rehabilitation counselor, with knowledge of and experience with vocational rehabilitation programs, who shall service as an ex officio, nonvoting member of the Council if the counselor is an employee of the designated State agency; (E) At least one representative of community rehabilitation program service providers; (F) four representatives of business, industry, and labor; (G) Representatives of disability advocacy groups representing a cross section of" (i) individuals with physical, cognitive, sensory, and mental disabilities; and (ii) parents, family members, guardians, advocates, or authorized representatives of individuals with disabilities who have difficulty in representing themselves or are unable due to their disabilities to represent themselves; and (H) current or former applicants for, or recipients of, vocational rehabilitation services; (2) EX OFFICIO MEMBER The Director of the designated State unit shall be an ex officio member of the Council. (3) APPOINTMENT Members of the Council shall be appointed by the Governor or the appropriate entity within the State responsible for making appointments. The appointing authority shall select members after soliciting recommendations from representatives of organizations representing a broad range of individuals with disabilities and organizations interested in individuals with disabilities. (4) QUALIFICATIONS A majority of Council members shall be persons who are (A) Individuals with disabilities described in section 7(8)(B); and (B) Not employed by the designated State unit. (5) CHAIRPERSON (A) IN GENERAL Except as provided in subparagraph (B), the Council shall select a chairperson from among the membership of the Council. (B) DESIGNATION BY GOVERNOR In States in which the Governor does not have veto power pursuant to State law, the Governor shall designate a member of the Council to serve as the chairperson of the Council or shall require the Council to so designate such a member. (6) TERMS OF APPOINTMENT (A) LENGTH OF TERM Each member of the Council shall serve for a term of not more than 3 years, except that" (i) a member appointed to fill a vacancy occurring prior to the expiration of the term for which a predecessor was appointed, shall be appointed for the remainder of such term; and (ii) the terms of service of the members initially appointed shall be (as specified by the appointing authority) for such fewer number of years as will provide for the expiration or terms on a staggered basis. (B) NUMBER OF TERMS No member of the Council may serve more than two consecutive full terms. (7) VACANCIES Any vacancy occurring in the membership of the Council shall be filled in the same manner as the original appointment. The vacancy shall not affect the power of the remaining members to execute the duties of the Council. (c) FUNCTIONS OF COUNCIL The Council shall" (1) Review, analyze, and advise the designated State unit regarding the performance of the responsibilities of the unit under this title, particularly responsibilities relating to" (A) Eligibility(including order of selection); (B) The extent, scope, and effectiveness of services provided; and (C) Functions performed by State agencies that affect or that potentially affect the ability of individuals with disabilities in achieving rehabilitation goals and objectives under this title; (2) Advise the designated State agency and the designated State unit, and, at the discretion of the designated State agency, assist in the preparation of applications, the State plan, the strategic plan and amendments to the plans, reports, needs assessments, and evaluations required by this title; (3) To the extent feasible, conduct a review and analysis of the effectiveness of, and consumer satisfaction with" (A) The functions performed by State agencies and other public and private entities responsible for performing functions for individuals with disabilities; and (B) vocational rehabilitation services (i) provided, or paid for from funds made available, under this Act or through other public or private sources; and (ii) provided by State agencies and other public and private entities responsible for providing vocational rehabilitation services to individuals with disabilities; (4) Prepare and submit an annual report the Governor or appropriate State entity and the Commissioner on the status of vocational rehabilitation programs operated within the State, and make the report available to the public; (5) Coordinate with other councils within the State, including the Statewide Independent Living Council established under section 705, the advisory panel established under section 613(a)(12) of the Individuals with Disabilities Education Act (20 U.S.C. 1413(a)(12)), the State Planning Council described in section 124 of the Developmental Disabilities Assistance and Bill of Rights Act (42 U.S.C. 6024), and the State mental health planning council established under section 1916(e) of the Public Health Service Act (42 U.S.C. 300x-4(e)); (6) Advise the State agency designated under section 101(a)(1) and provide for coordination and the establishment of working relationships between the State agency and the Statewide Independent Living Council and centers for independent living within the State; and (7) Perform such other functions, consistent with the purpose of this title, as the State Rehabilitation Advisory Council determines to be appropriate, that are comparable to the other functions performed by the Council. (d) RESOURCES (1) PLAN The Council shall prepare, in conjunction with the designated State unit, a plan for the provision of such resources, including such staff and other personnel, as may be necessary to carry out the functions of the council under this section. The resource plan shall, to the maximum extent possible, rely on the use of resources in existence during the period of implementation of the plan. (2) RESOLUTION OF DISAGREEMENTS To the extent that there is a disagreement between the Council and designated State unit in regard to the resources necessary to carry out the functions of the Council as set forth in this section, the disagreement shall be resolved by the Governor or appointing agency consistent with paragraph (1). (3) SUPERVISION AND EVALUATION Each Council shall, consistent with State law, supervise and evaluate such staff and other personnel as may be necessary to carry out its functions under this section. (4) PERSONNEL CONFLICT OF INTEREST While assisting the Council in carrying out its duties, staff and other personnel shall not be assigned duties by the designated State unit or any other agency or office of the State, that would create a conflict of interest. (e) CONFLICT OF INTEREST No member of the Council shall cast a vote on any matter that would provide direct financial benefit to the member or otherwise give the appearance of a conflict of interest under State law. (f) MEETINGS The Council shall convene at least 4 meetings a year in such places as it determines to be necessary to conduct Council business and conduct such forums or hearings as the Council considers appropriate. The meetings, hearings, and forums shall be publicly announced. The meetings shall be open and accessible to the general public unless there is a valid reason for an executive session. (g) COMPENSATION AND EXPENSES The Council may use funds appropriated under this title to reimburse members of the Council for reasonable and necessary expenses of attending Council meetings and performing Council duties (including child care and personal assistance services), and to pay compensation to a member of the Council, if such member is not employed or must forfeit wages from other employment, for each day the member is engaged in performing the duties of the Council. (h) HEARINGS AND FORUMS The Council is authorized to hold such hearings and forums as the Council may determine to be necessary to carry out the duties of the Council. (i) USE OF EXISTING COUNCILS To the extent that a State has established a Council before September 30, 1992, that is comparable to the Council described in this section, such established Council shall be considered to be in compliance with this section. Within 1 year after the date of enactment of the Rehabilitation Act Amendments of 1992, such State shall establish a Council that complies in full with this section. SEC. 106. EVALUATION STANDARDS AND PERFORMANCE INDICATORS (a) ESTABLISHMENT (1) IN GENERAL The Commissioner shall, not later than September 30, 1994, establish and publish evaluation standards and performance indicators for the vocational rehabilitation program under this title. (2) MEASURES The standards and indicators shall include outcome and related measures of program performance that facilitate and in no way impede the accomplishment of the purpose and policy of this title. (3) COMMENT The standards and indicators shall be developed with input from State vocational rehabilitation agencies, related professional and consumer organizations, recipients of vocational rehabilitation services, and other interested parties. The commissioner shall publish in the Federal Register a notice of intent to regulate regarding the development of proposed standards and indicators. Proposed standards and indicators shall be published in the Federal Register for review and comment. Final standards and indicators shall be published in the Federal Register. (b) COMPLIANCE (1) STATE REPORTS In accordance with regulations established by the Secretary, each State shall report to the Commissioner after the end of each fiscal year the extent to which the State is in compliance with the standards and indicators. (2) PROGRAM IMPROVEMENT (A) PLAN If the Commissioner determines that the performance of any State is below established standards, the Commissioner shall provide technical assistance to the State and the State and the Commissioner shall jointly develop a program improvement plan outlining the specific actions to be taken by the State to improve program performance. (B) REVIEW The Commissioner shall" (i) review the program improvement efforts of the State on a biannual basis and, if necessary, request the State to make further revisions to the plan to improve performance; and (ii) continue to conduct such reviews and request such revisions until the State sustains satisfactory performance over a period of more than 1 year. (c) WITHHOLDING If the Commissioner determines that a State whose performance falls below the established standards has failed to enter into a program improvement plan, or is not complying substantially with the terms and conditions of such a program improvement plan, the Commissioner shall, consistent with subsection (c) and (d) of section 107, reduce or make no further payments to the State under this program, until the State has entered into an approved program improvement plan, or satisfies the Commissioner that the State is complying substantially with the terms and conditions of such a program improvement plan, as appropriate. (d) REPORT TO CONGRESS Beginning in fiscal year 1996, the Commissioner shall include in each annual report to the Congress under section 13 an analysis of program performance, including relative State performance, based on the standards and indicators. SEC. 107. MONITORING AND REVIEW (a) IN GENERAL (1) DUTIES In carrying out the duties of the Commissioner under this title, the Commissioner shall" (A) Provide for the annual review and periodic on-site monitoring of programs under this title; and (B) Determine whether, in the administration of the State plan, a State is complying substantially with the provisions of such plan and with evaluation standards and performance indicators established under section 106. (2) PROCEDURES FOR REVIEWS In conducting reviews under this section the Commissioner shall consider, at a minimum" (A) State policies and procedures; (B) Guidance materials; (C) Decisions resulting from hearings conducted in accordance with due process; (D) Strategic plans and updates; (E) Plans and reports prepared under section 106(b); (F) Consumer satisfaction surveys described in section 101(a)(32); (G) Information provided by the State Rehabilitation Advisory Council established under section 105; (H) Reports; and (I) Budget and financial management data. (3) PROCEDURES FOR MONITORING In conducting monitoring under this section the Commissioner shall conduct" (A) On-site visits, including on-site reviews of records to verify that the State is following requirements regarding the order of selection set forth in section 101(a)(5)(A); (B) Public hearings and other strategies for collecting information from the public; (C) Meetings with the State Rehabilitation Advisory Council; (D) Reviews of individual case files, including individualized written rehabilitation programs and ineligibility determinations; and (E) Meetings with rehabilitation counselors and other personnel. (4) AREAS OF INQUIRY In conducting the review and monitoring, the Commissioner shall examine" (A) The eligibility process; (B) The provision of services, including, if applicable, the order of selection; (C) Whether the personnel evaluation system described in section 101(a)(35) facilitates and does not impede the accomplishments of the program; (D) Such other areas as may be identified by the public or through meetings with the State Rehabilitation Advisory Council; and (E) Such other areas of inquiry as the Commissioner may consider appropriate. (b) TECHNICAL ASSISTANCE The Commissioner shall" (1) Provide technical assistance to programs under this title regarding improving the quality of vocational rehabilitation services provided; and (2) Provide technical assistance and establish a corrective action plan for a program under this title if the Commissioner finds that the program fails to comply substantially with the provisions of the State Plan, or with evaluation standards or performance indicators established under section 106, in order to ensure that such failure is corrected as soon as practicable. (c) FAILURE TO COMPLY WITH PLAN (1) WITHHOLDING PAYMENTS Whenever the Commissioner, after providing reasonable notice and an opportunity for a hearing to the State agency administering or supervising the administration of the State plan approved under section 101, finds that" (A) The plan has been so changed that it no longer complies with the requirements of section 101(a); or (B) In the administration of the plan there is a failure to comply substantially with any provision of such plan or with an evaluation standard or performance indicator established under section 106, the Commissioner shall notify such State agency that no further payments will be made to the State under this title (or, in 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 parts of the State plan affected by such failure), until the Commissioner is satisfied there is no longer any such failure. (2) PERIOD Until the Commissioner is so satisfied, the Commissioner shall make no further payments to such State under this title (or shall reduce payments or limit payments to projects under those parts of the State plan in which there is no such failure). (3) DISBURSAL OF WITHHELD FUNDS 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 section 101(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. (d) REVIEW (1) PETITION Any State that is dissatisfied with a final determination of the Commissioner under section 101(b) or subsection (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 30-day period beginning on the date that 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. (2) SUBMISSIONS AND DETERMINATIONS If, in an action under this subsection to review a final determination of the Commissioner under section 101(b) or subsection (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 30 days an additional opportunity to make such submissions and presentations. Within such period, the Commissioner may revise any findings of fact, modify or set aside the determination being reviewed, or make a new determination by reason of the additional submissions and presentations, and shall file such modified or new determination, and any revised findings of fact, with the return of such submissions and presentations. The court shall thereafter review such new or modified determination. (3) STANDARDS OF REVIEW (A) IN GENERAL 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. (B) SUBSTANTIAL EVIDENCE 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. 108. EXPENDITURE OF CERTAIN AMOUNTS (a) EXPENDITURE Amounts described in subsection (b) may not be expended by a State for any purpose other than carrying out programs for which the State receives financial assistance under this title, under part C of title VI, or under title VII. (b) AMOUNTS The amounts referred to in subsection (a) are amounts provided to a State under the Social Security Act (42 U.S.C. 301 et seq.) as reimbursement for the expenditure of payments received by the State from allotments under section 110 of this Act. SEC. 109. TRAINING OF EMPLOYERS WITH RESPECT TO AMERICANS WITH DISABILITIES ACT OF 1990 A state may expend payments received under section 111" (1) To carry out a program to train employers with respect to compliance with the requirements of title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); and (2) To inform employers of the existence of the program and the availability of the services of the program. Part B-Basic Vocational Rehabilitation Services SEC. 110. STATE ALLOTMENTS (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 (A) the population of the State, and (B) the square of its allotment percentage, bears to the sum of the corresponding products for all the States. (2)(A) For each fiscal year beginning on or after October 1, 1978, each State shall be entitled to an allotment in an amount equal to the amount such State received under paragraph (1) for the fiscal year ending September 30, 1978, and an additional amount determined pursuant to subparagraph (B) of this paragraph. (B) For each fiscal year beginning on or after October 1, 1978, each State shall be entitled to an allotment, from any amount authorized to be appropriated for such fiscal year under section 100(b)(1)(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. (3) The sum of the payment to any State (other than Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Republic of Palau) 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. (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. (5) The Republic of Palau may receive allotments or allocations under this section only until the Compact of Free Association with Palau takes effect. (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. (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. (3) Any payment attributable to the additional payment to a State under this subsection shall be made only from appropriations specifically made to carry out this subsection, and such additional appropriations are hereby authorized. (c)(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. (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. (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. (4) If the Commissioner determines, under paragraph (1), 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, the payment shall remain available for reallotment to other States until reallotted. (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. (2) The sum referred to in paragraph (1) shall be, as determined by the Secretary" (A) Not less than one-third of one percent and not more than 1.5 percent of the amount under paragraph (1), for fiscal years 1993 and 1994; and (B) Not less than one-half of one percent and not more than 1.5 percent of the amount under paragraph (1), for fiscal years 1995, 1996, and 1997. SEC. 111. PAYMENTS TO STATES (a)(1) Except as provided under paragraph (2), from each State's allotment under this part for any fiscal year 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 and development and implementation of the strategic plan as provided in section 101(a)(34)(A). Any State that receives such an amount shall expend, for development and implementation of the strategic plan, not less than the percentage of the allotment of the State referred to in section 101(a)(34)(B). (2)(A) The total of payments under paragraph (1) to a State for such fiscal year may not exceed its allotment under subsection (a) 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). (B)(i) For fiscal year 1993, the amount otherwise payable to a State for a fiscal year under this section shall be reduced by the amount by which expenditures from non-Federal sources under the State plan under this title for the previous fiscal year are less than the average of the total of such expenditures for the three fiscal years preceding that previous fiscal year. (ii) For fiscal year 1994 and each fiscal year thereafter, the amount otherwise payable to a State for a fiscal year under this section shall be reduced by the amount by which expenditures from non-Federal sources under the State plan under this title for the previous fiscal year are less than the total of such expenditures for the second fiscal year preceding the previous fiscal year. (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. (3)(A) Except as provided in subparagraph (B), the amount of a payment under this section with respect to any construction project in any State shall be equal to the same percentage of the cost of such project as the Federal share that is applicable in the case of rehabilitation facilities (as defined in section 645(g) of the Public Health Service Act (42 U.S.C. 291o(a))), in such State. (B) If the Federal share with respect to rehabilitation facilities in such State is determined pursuant to section 645(b)(2) of such Act (42 U.S.C. 291o(b)(2)), the percentage of the cost for purposes of this section shall be determined in accordance with regulations prescribed by the Commissioner designed to achieve as nearly as practicable results comparable to the results obtained under such section. (b) The method of computing and paying amounts pursuant to subsection (a) shall be as follows: (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. (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 (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 and advocate for such clients or applicants in their relationships with projects, programs, and facilities providing services to them under this Act, including assistance and advocacy in pursuing legal, administrative, or other appropriate remedies to ensure the protection of the rights of such individuals under this Act and to facilitate access to the services funded under this Act through individual and systemic advocacy. The client assistance program shall provide information on the available services and benefits under this Act and title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et seq) to any individuals with disabilities in the State, especially with regard to individuals with disabilities who have traditionally been unserved or underserved by vocational rehabilitation programs. In providing assistance and advocacy under this subsection with respect to services under this title, a client assistance program may provide the assistance and advocacy with respect to services that are directly related to facilitating the employment of the individual. (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" (1) has the authority to pursue legal, administrative, and other appropriate remedies to insure the protection of rights of individuals with disabilities who are receiving treatments, services or rehabilitation under this Act within the State; and (2) meets the requirements of designation under subsection (c). (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 disabilities under this Act. (B) The Governor may not redesignate the agency designated under subparagraph (A) without good cause unless" (i) the Governor has given the agency 30 days notice of the intention to make such redesignation, including specification of the good cause for such redesignation and an opportunity to respond to the assertion that good cause has been shown; (ii) individuals with disabilities or their representatives have timely notice of the redesignation and opportunity for public comment; and (iii) the agency has the opportunity to appeal to the Commissioner on the basis that the redesignation was not for good cause. (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 disabilities in the State. (3) The agency designated under this subsection shall be accountable for the proper use of funds made available to the agency. (4) For the purpose of this subsection, the term 'Governor' means the chief executive of the State. (d) The agency designated under subsection (c) of this section may not bring any class action in carrying out its responsibilities under this section. (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. (B) The Secretary shall allot $30,000 each to American Samoa, Guam, the Virgin Islands, the Northern Mariana Islands, and the Republic of Palau, except that the Republic of Palau may receive such allotment under this section only until the Compact of Free Association with Palau takes effect. (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 Republic of Palau. (D)(i) In any fiscal year that the funds appropriated for such fiscal year exceed $7,500,000, the minimum allotment shall be $100,000 for States and $45,000 for territories. (ii) Subject to clause (i), the Commissioner may increase the minimum allotments under subparagraphs (A) and (B) 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. (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. (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). (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. (g) The Secretary shall prescribe regulations applicable to the client assistance program which shall include the following requirements: (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. (2) Each program shall be afforded reasonable access to policymaking and administrative personnel in the State and local rehabilitation programs, projects, or facilities. (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. (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 his evaluation of the program, including appropriate recommendations. (5) Each such report shall contain information on the number of requests the client assistance program under this section receives annually, the number of requests such program is unable is serve, and the reasons that the program is unable to serve all the requests. (6) For purposes of such report or for any other periodic audit, report, or evaluation of the performance of a client assistance program under this section, the Secretary shall not require such a program to disclose the identity of, or any other personally identifiable information related to, any individual requesting assistance under such program. (h) There are authorized to be appropriated such sums as may be necessary for fiscal years 1993 through 1997 to carry out the provisions of this section. Part C-Innovation and Expansion Grants SEC. 120. STATE ELIGIBILITY Effective October 1, 1993, any State desiring to receive assistance under this part and part B of this title shall prepare and submit to the Commissioner a statewide strategic plan for developing and using innovative approaches for achieving long-term success in expanding and improving vocational rehabilitation services, including supported employment services, provided under the State plan submitted under section 101 and the supplement to the State plan submitted under part C of title VI. SEC. 121. CONTENTS OF STRATEGIC PLANS (a) PURPOSE AND POLICY The strategic plan shall be designed to achieve the purpose and policy of this title and carry out the State plan and the supplement to the State plan submitted under part C of title VI. (b) CONTENTS The strategic plan shall include" (1) A statement of the mission, philosophy, values, and principles of the vocational rehabilitation program in the State; (2) Specific goals and objectives for expanding and improving the system for providing the vocational rehabilitation program; (3) Specific multifaceted and systemic approaches for accomplishing the objectives, including interagency coordination and cooperation, that build upon state-of-the-art practices and research findings and that implement the State plan and the supplement to the State plan submitted under part C of title VI; (4) A description of the specific programs, projects, and activities funded under this part and how the programs, projects, and activities accomplish the objectives; and (5) Specific criteria for determining whether the objectives have been achieved, an assurance that the State will conduct an annual evaluation to determine the extent to which the objectives have been achieved, and, if specific objectives have not been achieved, the reasons that the objectives have not been achieved and a description of alternative approaches that will be taken. SEC. 122. PROCESS FOR DEVELOPING STRATEGIC PLANS (a) PERIOD AND UPDATES The strategic plan shall cover a 3-year period and shall be updated on an annual basis to reflect actual experience over the previous year and input from the State Rehabilitation Advisory Council established under section 105, individuals with disabilities, and other interested parties. (b) RECOMMENDATIONS Prior to developing the strategic plan, the State shall hold public forums and meet with and receive recommendations from members of the State Rehabilitation Advisory Council and the Statewide Independent Living Council established under section 705. (c) CONSIDERATION OF RECOMMENDATIONS The State shall consider the recommendations and, if the State rejects the recommendations, shall include a written explanation of the rejection in the strategic plan. (d) PROCEDURE The State shall develop a procedure for ensuring ongoing comment from the councils described in subsection (b) as the plan is being implemented. (e) DISSEMINATION The State shall widely disseminate the strategic plan to individuals with disabilities, disability organizations, rehabilitation professionals, and other interested persons. SEC. 123. USE OF FUNDS A State may use funds made available under this part, directly or by grant, contract, or other arrangement, to carry out" (1) Programs to initiate and expand employment opportunities for individuals with severe disabilities in integrated settings that allow for the use of on-the-job training to promote the objectives of title I of the Americans with Disabilities Act of 1990 (42 U.S.C. 12111 et seq.); (2) Programs or activities to improve the provision of, and expand, employment services in integrated settings to individuals with sensory, cognitive, physical, and mental impairments who have traditionally not been served by the State vocational rehabilitation agency; (3) Programs and activities to maximize the ability of individuals with disabilities to use rehabilitation technology in employment settings; (4) Programs and activities that" (A) Assist employers in accommodating, evaluating, training, or placing individuals with disabilities in the workplace of the employer consistent with provisions of this Act and title I of the Americans with Disabilities Act of 1990; and (B) May include short-term technical assistance or other effective strategies; (5) Programs and activities that expand and improve the extent and type of client involvement in the review and selection of the training and employment goals of the client; (6) Programs and activities that expand and improve opportunities for career advancement for individuals with severe disabilities; (7) Programs, projects, and activities designed to initiate, expand, or improve working relationships between vocational rehabilitation services provided under this title and independent living services provided under title VII; (8) Programs, projects, and activities designed to improve functioning of the system for delivering vocational rehabilitation services and to improve coordination and working relationships with other State and local agencies, business, industry, labor, community rehabilitation programs, and centers for independent living, including projects designed to" (A) Increase the ease of access to, timeliness of, and quality of vocational rehabilitation services through the development and implementation of policies, procedures, and systems and interagency mechanisms for providing vocational rehabilitation services; (B) Improve the working relationships between State vocational rehabilitation agencies, and other State agencies, centers for independent living, community rehabilitation programs, educational agencies involved in higher education, adult basic education, and continuing education, and businesses, industry, and labor organizations, in order to create and facilitate cooperation in" (i) planning and implementing services; and (ii) the development of an integrated system of community-based vocational rehabilitation service that includes appropriate transitions between services systems; and (C) Improve the ability of professionals, clients, advocates, business, industry, and labor to work in cooperative partnerships to improve the quality of vocational rehabilitation services and job and career opportunities for individuals with disabilities; (9) Support efforts to ensure that the annual evaluation of the effectiveness of the program in meeting the goals and objectives set forth in the State plan, including the system for evaluating the performance of rehabilitation counselors, coordinators, and other personnel used in the State, facilitates and does not impede the accomplishment of the purpose and policy of this title, including serving, among, others, individuals with the most severe disabilities; (10) Support the initiation, expansion, and improvement of a comprehensive system of personnel development; (11) Support the provision of training and technical assistance to clients, business, industry, labor, community rehabilitation programs, and others regarding the implementation of the amendments made by the Rehabilitation Act Amendments of 1992, of title V of this Act, and of the Americans with Disabilities Act of 1990; and (12) Support the funding of the State Rehabilitation Advisory Council and the Statewide Independent Living Council established under section 705. SEC. 124. ALLOTMENTS AMONG STATES (a) IN GENERAL (1) STATES (A) POPULATION BASIS Except as provided in sums appropriated for each fiscal year to carry out this part (not including sums used in accordance with section 101(a)(34)(B)), the Commissioner shall make an allotment to each State whose State plan has been approved under section 101 of an amount bearing the same ratio to such sums as the population of the State bears to the population of all the States. (B) MINIMUMS Subject to the availability of appropriations to carry out this part, the allotment of any State under subparagraph (A) shall be not less than $200,000 or one-third of one percent of the sums made available for the fiscal year for which the allotment is made, whichever is greater, and the allotment of any State under this section for any fiscal year that is less than $200,000 or one-third of one percent of such sums shall be increased to the greater of the two amounts. (2) CERTAIN TERRITORIES (A) IN GENERAL For the purposes of this subsection, Guam, American Samoa, the United States Virgin Islands, the Commonwealth of the Northern Mariana Island, and the Republic of Palau shall not be considered to be States. (B) ALLOTMENT Each jurisdiction described in subparagraph (A) shall be allotted not less than one-eighth of one percent of the amounts made available for purposes of this part for the fiscal year for which the allotment is made, except that the Republic of Palau may receive such allotment under this section only until the Compact of Free Association with Palau takes effect. (3) ADJUSTMENT FOR INFLATION For purposes of determining the minimum amount of an allotment under paragraph (1)(B), the amount $200,000 shall, in the case of such allotments for fiscal year 1994 and subsequent fiscal years, be increased to the extent necessary to offset the effects of inflation occurring since October 1992, as measured by the percentage increase in the Consumer Price Index For All Urban Consumers (U.S. city average) during the period ending on April 1 of the fiscal year preceding the fiscal year for which the allotment is to be made. (b) PROPORTIONAL REDUCTION Amounts necessary to provide allotments to States in accordance with subsection (a)(1)(B) as increased under subsection (a)(3), or to provide allotments in accordance with subsection (a)(2)(B), shall be derived by proportionately reducing the allotments of the remaining States under subsection (a)(1), but with such adjustments as may be necessary to prevent the allotment of any such remaining States from being thereby reduced to less than the greater of $200,000 or one-third of one percent of the sums made available for purposes of this part for the fiscal year for which the allotment is made, as increased in accordance with subsection (a)(3). (c) REALLOTMENT Whenever the Commissioner determines that any amounts of an allotment to a State for any fiscal year will not be expended by such State for carrying out the provisions of this part, the Commissioner shall make such amount available for carrying out the purposes of this part to one or more of the States that 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 section, be regarded as an increase in the allotment of the State (as determined under the preceding provisions of this section) for such year. Part D-American Indian Vocational Rehabilitation Services SEC. 130. VOCATIONAL REHABILITATION SERVICES GRANTS (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 who are individuals with disabilities 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. (b)(1) No grant may be made under this part for any fiscal year unless an application therefor has been submitted to and approved by the Commissioner. The Commissioner may not approve an application unless the application" (A) is made at such time, in such manner, and contains such information as the Commissioner may require; (B) contains assurances that the rehabilitation services provided under this part to American Indians who are individuals with disabilities 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 disabilities residing in the State and that, where appropriate, may include services traditionally used by Indian tribes; and (C) contains assurances that the application was developed in consultation with the designated State unit of the State. (2) The provisions of sections 5, 6, 7, and 102(a) of the Indian Self-Determination and Education Assistance Act shall be applicable to any application submitted under this part. For purposes of this paragraph, any reference in any such provision to the Secretary of Education or to the Secretary of the Interior shall be considered to be a reference to the Commissioner. (3) Any application approved under this part shall be effective for not less than twelve months 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). (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. (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. (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. Miscellaneous Provisions to Title I SEC. 136. REVIEW OF DATA COLLECTION SYSTEM (a) REVIEW The Commissioner of the Rehabilitation Services Administration (in this section referred to as the "Commissioner") shall undertake a comprehensive review of the current system for collecting and reporting client data under the Rehabilitation Act of 1973 (29 U.S.C. 701 et seq.), particularly data on clients of the programs under title I of the Rehabilitation Act of 1973 (29 U.S.C. 720 et seq.). (b) CONSIDERATIONS (1) IN GENERAL In conducting the review, the Commissioner shall examine the kind, quantity, and quality of the data that are currently reported, taking into consideration the range of purposes that the data serve at the Federal, State, and local levels. (2) DATA ELEMENTS In conducting the review, the Commissioner shall examine the feasibility of collecting and reporting under the system information, if such information can be determined, regarding" (A) Other program participation by clients during the 3 years prior to application; (B) The number of jobs held, hours worked, and earnings received by clients in the 3 years prior to application to a program under the Rehabilitation Act of 1973; (C) The type of major and secondary disabilities of clients; (D) The dates of the onset of disabilities of clients; (E) The severity of the disabilities of clients; (F) The sources of referral of clients to programs under such Act; (G) The hours worked by clients; (H) The size and industry code of the place of employment of clients at the time of entry into such a program and at the termination of services under the program; (I) The number of services provided under the programs and the cost of each service; (J) The types of public support received by the clients; (K) The primary sources of economic support and amounts of public assistance received by the clients before and after receiving the services; (L) Whether the clients are covered by health insurance from any source and whether health insurance is available through the employment of the client; (M) The supported employment status of the client; and (N) the reasons for terminating the services. (c) RECOMMENDATIONS Based on the review, the Commissioner shall recommend improvements in the data collection and reporting system. (d) VIEWS In developing the recommendations, the Commissioner shall seek views of persons and entities providing or using such data, including State agencies, State Rehabilitation Advisory Councils, providers of vocational rehabilitation services, professionals in the field of vocational rehabilitation, clients and organizations representing clients, the National Council on Disability, other Federal agencies, non-Federal researchers, other analysts using the data, and other members of the public. (e) PUBLICATION AND SUBMISSION OF REPORT Not later than 18 months after the date of the enactment of this Act, the Commissioner shall publish the recommendations in the Federal Register and shall prepare and submit a report containing the recommendations to the appropriate committees of Congress. The Commissioner shall not implement the recommendations earlier than 90 days after the date on which the Commissioner submits the report. SEC. 137. EXCHANGE OF DATA The Secretary of Education and the Secretary of Health and Human Services shall enter into a memorandum of understanding for the purpose of exchanging data of mutual importance, regarding clients of State vocational rehabilitation agencies, that are contained in databases maintained by the Rehabilitation Services Administration, as required under section 13 of the Rehabilitation Act of 1973 (29 U.S.C. 712), and the Social Security Administration, from its Summary Earnings and Records and Master Beneficiary Records. For purposes of the exchange, the Social Security data shall not be considered tax information and, as appropriate, the confidentiality of all client information shall be maintained by both agencies. SEC. 138. EFFECTIVE DATE (a) EFFECTIVE DATE Except as provided in subsection (b), this title and the amendments made by this title shall take effect on the date of enactment of this Act. (b) STATE PLAN The Secretary of Education shall implement the amendments made by section 122 of this Act to section 101 of the Rehabilitation Act of 1973 (29 U.S.C. 721), as soon as is practicable after the date of enactment of this Act, consistent with the effective and efficient administration of the Rehabilitation Act of 1973, but not later than October 1, 1993.