
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 29USC721]

 
                             TITLE 29--LABOR
 
 CHAPTER 16--VOCATIONAL REHABILITATION AND OTHER REHABILITATION SERVICES
 
            SUBCHAPTER I--VOCATIONAL REHABILITATION SERVICES
 
                       Part A--General Provisions
 
Sec. 721. State plans


(a) Plan requirements

                           (1) In general

        (A) Submission

            To be eligible to participate in programs under this 
        subchapter, a State shall submit to the Commissioner a State 
        plan for vocational rehabilitation services that meets the 
        requirements of this section, on the same date that the State 
        submits a State plan under section 112 of the Workforce 
        Investment Act of 1998 [29 U.S.C. 2822].

        (B) Nonduplication

            The State shall not be required to submit, in the State plan 
        for vocational rehabilitation services, policies, procedures, or 
        descriptions required under this subchapter that have been 
        previously submitted to the Commissioner and that demonstrate 
        that such State meets the requirements of this subchapter, 
        including any policies, procedures, or descriptions submitted 
        under this subchapter as in effect on the day before August 7, 
        1998.

        (C) Duration

            The State plan shall remain in effect subject to the 
        submission of such modifications as the State determines to be 
        necessary or as the Commissioner may require based on a change 
        in State policy, a change in Federal law (including 
        regulations), an interpretation of this chapter by a Federal 
        court or the highest court of the State, or a finding by the 
        Commissioner of State noncompliance with the requirements of 
        this chapter, until the State submits and receives approval of a 
        new State plan.

         (2) Designated State agency; designated State unit

        (A) Designated State agency

            The State plan shall designate a State agency as the sole 
        State agency to administer the plan, or to supervise the 
        administration of the plan by a local agency, except that--
                (i) where, under State law, the State agency for 
            individuals who are blind or another agency that provides 
            assistance or services to adults who are blind is authorized 
            to provide vocational rehabilitation services to individuals 
            who are blind, that 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 to administer or supervise the administration of the 
            rest of the State plan;
                (ii) the Commissioner, on the request of a State, may 
            authorize the designated State agency to share funding and 
            administrative responsibility with another agency of the 
            State or with a local agency in order to permit the 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 the joint program, with the requirement of paragraph 
            (4) that the plan be in effect in all political subdivisions 
            of the State; and
                (iii) in the case of American Samoa, the appropriate 
            State agency shall be the Governor of American Samoa.

        (B) Designated State unit

            The State agency designated under subparagraph (A) shall 
        be--
                (i) a State agency primarily concerned with vocational 
            rehabilitation, or vocational and other rehabilitation, of 
            individuals with disabilities; or
                (ii) if not such an agency, the State agency (or each 
            State agency if 2 are so designated) shall include a 
            vocational rehabilitation bureau, division, or other 
            organizational unit that--
                    (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 the designated 
                State agency;
                    (II) has a full-time director;
                    (III) has a staff employed on the rehabilitation 
                work of the organizational unit all or substantially all 
                of whom are employed full time on such work; and
                    (IV) is located at an organizational level and has 
                an organizational status within the designated State 
                agency comparable to that of other major organizational 
                units of the designated State agency.

        (C) Responsibility for services for the blind

            If the State has designated only 1 State agency pursuant to 
        subparagraph (A), the State may assign responsibility for the 
        part of the plan under which vocational rehabilitation services 
        are provided for individuals who are blind to an organizational 
        unit of the designated State agency and assign responsibility 
        for the rest of the plan to another organizational unit of the 
        designated State agency, with the provisions of subparagraph (B) 
        applying separately to each of the designated State units.

                        (3) Non-Federal share

        The State plan shall provide for financial participation by the 
    State, or if the State so elects, by the State and local agencies, 
    to provide the amount of the non-Federal share of the cost of 
    carrying out part B of this subchapter.

                          (4) Statewideness

        The State plan shall provide that the plan shall be in effect in 
    all political subdivisions of the State, except that--
            (A) in the case of any activity that, 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 that 
        the plan be in effect in all political subdivisions of the State 
        to the extent and for such period as may be provided in 
        accordance with regulations prescribed by the Commissioner, but 
        only if the non-Federal share of the cost of the vocational 
        rehabilitation services involved is met from funds made 
        available by a local agency (including funds contributed to such 
        agency by a private agency, organization, or individual); and
            (B) in a case in which earmarked funds are used toward the 
        non-Federal share and such funds are earmarked for particular 
        geographic areas within the State, the earmarked funds may be 
        used in such areas if the State notifies the Commissioner that 
        the State cannot provide the full non-Federal share without such 
        funds.

        (5) Order of selection for vocational rehabilitation 
                                  services

        In the event that vocational rehabilitation services cannot be 
    provided to all eligible individuals with disabilities in the State 
    who apply for the services, the State plan shall--
            (A) show the order to be followed in selecting eligible 
        individuals to be provided vocational rehabilitation services;
            (B) provide the justification for the order of selection;
            (C) include an assurance that, in accordance with criteria 
        established by the State for the order of selection, individuals 
        with the most significant disabilities will be selected first 
        for the provision of vocational rehabilitation services; and
            (D) provide that eligible individuals, who do not meet the 
        order of selection criteria, shall have access to services 
        provided through the information and referral system implemented 
        under paragraph (20).

                   (6) Methods for administration

        (A) In general

            The State plan shall provide for such methods of 
        administration as are found by the Commissioner to be necessary 
        for the proper and efficient administration of the plan.

        (B) Employment of individuals with disabilities

            The State plan shall provide that the designated State 
        agency, and entities carrying out community rehabilitation 
        programs in the State, who are in receipt of assistance under 
        this subchapter 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 793 of this title.

        (C) Facilities

            The State plan shall provide that facilities used in 
        connection with the delivery of services assisted under the 
        State plan shall comply with the Act entitled ``An Act to insure 
        that certain buildings financed with Federal funds are so 
        designed and constructed as to be accessible to the physically 
        handicapped'', approved on August 12, 1968 (commonly known as 
        the ``Architectural Barriers Act of 1968'') [42 U.S.C. 4151 et 
        seq.], with section 794 of this title, and with the Americans 
        with Disabilities Act of 1990 [42 U.S.C. 12101 et seq.].

          (7) Comprehensive system of personnel development

        The State plan shall--
            (A) include a description (consistent with the purposes of 
        this chapter) of a comprehensive system of personnel 
        development, which shall include--
                (i) a description of the procedures and activities the 
            designated 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 designated State unit in the provision 
                of vocational rehabilitation services, including ratios 
                of qualified vocational rehabilitation 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 
                vocational rehabilitation field, and other relevant 
                factors;

                (ii) where appropriate, a description of the manner in 
            which activities will be undertaken under this section to 
            coordinate the system of personnel development with 
            personnel development activities 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 programs of 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 of such students who graduated with 
                certification or licensure, or with credentials to 
                qualify for certification or licensure, as a 
                rehabilitation professional 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, 
                institutions of higher education, 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 
            designated 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 this 
                chapter made by the Rehabilitation Act Amendments of 
                1998;

            (B) set forth policies and procedures relating to the 
        establishment and maintenance of standards to ensure that 
        personnel, including rehabilitation professionals and 
        paraprofessionals, needed within the designated State unit 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 that 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 to 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 an applicant or eligible individual.

                (8) Comparable services and benefits

        (A) Determination of availability

            (i) In general

                The State plan shall include an assurance that, prior to 
            providing any vocational rehabilitation service to an 
            eligible individual, except those services specified in 
            paragraph (5)(D) and in paragraphs (1) through (4) and (14) 
            of section 723(a) of this title, the designated State unit 
            will determine whether comparable services and benefits are 
            available under any other program (other than a program 
            carried out under this subchapter) unless such a 
            determination would interrupt or delay--
                    (I) the progress of the individual toward achieving 
                the employment outcome identified in the individualized 
                plan for employment of the individual in accordance with 
                section 722(b) of this title;
                    (II) an immediate job placement; or
                    (III) the provision of such service to any 
                individual at extreme medical risk.
            (ii) Awards and scholarships

                For purposes of clause (i), comparable benefits do not 
            include awards and scholarships based on merit.

        (B) Interagency agreement

            The State plan shall include an assurance that the Governor 
        of the State, in consultation with the entity in the State 
        responsible for the vocational rehabilitation program and other 
        appropriate agencies, will ensure that an interagency agreement 
        or other mechanism for interagency coordination takes effect 
        between any appropriate public entity, including the State 
        entity responsible for administering the State medicaid program, 
        a public institution of higher education, and a component of the 
        statewide workforce investment system, and the designated State 
        unit, in order to ensure the provision of vocational 
        rehabilitation services described in subparagraph (A) (other 
        than those services specified in paragraph (5)(D), and in 
        paragraphs (1) through (4) and (14) of section 723(a) of this 
        title), that are included in the individualized plan for 
        employment of an eligible individual, including the provision of 
        such vocational rehabilitation services during the pendency of 
        any dispute described in clause (iii). Such agreement or 
        mechanism shall include the following:
            (i) Agency financial responsibility

                An identification of, or a description of a method for 
            defining, the financial responsibility of such public entity 
            for providing such services, and a provision stating the 
            financial responsibility of such public entity for providing 
            such services.
            (ii) Conditions, terms, and procedures of 
                    reimbursement

                Information specifying the conditions, terms, and 
            procedures under which a designated State unit shall be 
            reimbursed by other public entities for providing such 
            services, based on the provisions of such agreement or 
            mechanism.
            (iii) Interagency disputes

                Information specifying procedures for resolving 
            interagency disputes under the agreement or other mechanism 
            (including procedures under which the designated State unit 
            may initiate proceedings to secure reimbursement from other 
            public entities or otherwise implement the provisions of the 
            agreement or mechanism).
            (iv) Coordination of services procedures

                Information specifying policies and procedures for 
            public entities to determine and identify the interagency 
            coordination responsibilities of each public entity to 
            promote the coordination and timely delivery of vocational 
            rehabilitation services (except those services specified in 
            paragraph (5)(D) and in paragraphs (1) through (4) and (14) 
            of section 723(a) of this title).

        (C) Responsibilities of other public entities

            (i) Responsibilities under other law

                Notwithstanding subparagraph (B), if any public entity 
            other than a designated State unit is obligated under 
            Federal or State law, or assigned responsibility under State 
            policy or under this paragraph, to provide or pay for any 
            services that are also considered to be vocational 
            rehabilitation services (other than those specified in 
            paragraph (5)(D) and in paragraphs (1) through (4) and (14) 
            of section 723(a) of this title), such public entity shall 
            fulfill that obligation or responsibility, either directly 
            or by contract or other arrangement.
            (ii) Reimbursement

                If a public entity other than the designated State unit 
            fails to provide or pay for the services described in clause 
            (i) for an eligible individual, the designated State unit 
            shall provide or pay for such services to the individual. 
            Such designated State unit may claim reimbursement for the 
            services from the public entity that failed to provide or 
            pay for such services. Such public entity shall reimburse 
            the designated State unit pursuant to the terms of the 
            interagency agreement or other mechanism described in this 
            paragraph according to the procedures established in such 
            agreement or mechanism pursuant to subparagraph (B)(ii).

        (D) Methods

            The Governor of a State may meet the requirements of 
        subparagraph (B) through--
                (i) a State statute or regulation;
                (ii) a signed agreement between the respective officials 
            of the public entities that clearly identifies the 
            responsibilities of each public entity relating to the 
            provision of services; or
                (iii) another appropriate method, as determined by the 
            designated State unit.

               (9) Individualized plan for employment

        (A) Development and implementation

            The State plan shall include an assurance that an 
        individualized plan for employment meeting the requirements of 
        section 722(b) of this title will be developed and implemented 
        in a timely manner for an individual subsequent to the 
        determination of the eligibility of the individual for services 
        under this subchapter, except that in a State operating under an 
        order of selection described in paragraph (5), the plan will be 
        developed and implemented only for individuals meeting the order 
        of selection criteria of the State.

        (B) Provision of services

            The State plan shall include an assurance that such services 
        will be provided in accordance with the provisions of the 
        individualized plan for employment.

                     (10) Reporting requirements

        (A) In general

            The State plan shall include an assurance that the 
        designated State agency will submit reports in the form and 
        level of detail and at the time required by the Commissioner 
        regarding applicants for, and eligible individuals receiving, 
        services under this subchapter.

        (B) Annual reporting

            In specifying the information to be submitted in the 
        reports, the Commissioner shall require annual reporting on the 
        eligible individuals receiving the services, on those specific 
        data elements described in section 136(d)(2) of the Workforce 
        Investment Act of 1998 [29 U.S.C. 2871(d)(2)] that are 
        determined by the Secretary to be relevant in assessing the 
        performance of designated State units in carrying out the 
        vocational rehabilitation program established under this 
        subchapter.

        (C) Additional data

            In specifying the information required to be submitted in 
        the reports, the Commissioner shall require additional data with 
        regard to applicants and eligible individuals related to--
                (i) the number of applicants and the number of 
            individuals determined to be eligible or ineligible for the 
            program carried out under this subchapter, including--
                    (I) the number of individuals determined to be 
                ineligible because they did not require vocational 
                rehabilitation services, as provided in section 722(a) 
                of this title; and
                    (II) the number of individuals determined, on the 
                basis of clear and convincing evidence, to be too 
                severely disabled to benefit in terms of an employment 
                outcome from vocational rehabilitation services;

                (ii) the number of individuals who received vocational 
            rehabilitation services through the program, including--
                    (I) the number who received services under paragraph 
                (5)(D), but not assistance under an individualized plan 
                for employment;
                    (II) of those recipients who are individuals with 
                significant disabilities, the number who received 
                assistance under an individualized plan for employment 
                consistent with section 722(b) of this title; and
                    (III) of those recipients who are not individuals 
                with significant disabilities, the number who received 
                assistance under an individualized plan for employment 
                consistent with section 722(b) of this title;

                (iii) of those applicants and eligible recipients who 
            are individuals with significant disabilities--
                    (I) the number who ended their participation in the 
                program carried out under this subchapter and the number 
                who achieved employment outcomes after receiving 
                vocational rehabilitation services; and
                    (II) the number who ended their participation in the 
                program and who were employed 6 months and 12 months 
                after securing or regaining employment, or, in the case 
                of individuals whose employment outcome was to retain or 
                advance in employment, who were employed 6 months and 12 
                months after achieving their employment outcome, 
                including--
                        (aa) the number who earned the minimum wage rate 
                    specified in section 6(a)(1) of the Fair Labor 
                    Standards Act of 1938 (29 U.S.C. 206(a)(1)) or 
                    another wage level set by the Commissioner, during 
                    such employment; and
                        (bb) the number who received employment benefits 
                    from an employer during such employment; and

                (iv) of those applicants and eligible recipients who are 
            not individuals with significant disabilities--
                    (I) the number who ended their participation in the 
                program carried out under this subchapter and the number 
                who achieved employment outcomes after receiving 
                vocational rehabilitation services; and
                    (II) the number who ended their participation in the 
                program and who were employed 6 months and 12 months 
                after securing or regaining employment, or, in the case 
                of individuals whose employment outcome was to retain or 
                advance in employment, who were employed 6 months and 12 
                months after achieving their employment outcome, 
                including--
                        (aa) the number who earned the minimum wage rate 
                    specified in section 6(a)(1) of the Fair Labor 
                    Standards Act of 1938 (29 U.S.C. 206(a)(1)) or 
                    another wage level set by the Commissioner, during 
                    such employment; and
                        (bb) the number who received employment benefits 
                    from an employer during such employment.

        (D) Costs and results

            The Commissioner shall also require that the designated 
        State agency include in the reports information on--
                (i) the costs under this subchapter of conducting 
            administration, providing assessment services, counseling 
            and guidance, and other direct services provided by 
            designated State agency staff, providing services purchased 
            under individualized plans for employment, supporting small 
            business enterprises, establishing, developing, and 
            improving community rehabilitation programs, providing other 
            services to groups, and facilitating use of other programs 
            under this chapter and title I of the Workforce Investment 
            Act of 1998 [29 U.S.C. 2801 et seq.] by eligible 
            individuals; and
                (ii) the results of annual evaluation by the State of 
            program effectiveness under paragraph (15)(E).

        (E) Additional information

            The Commissioner shall require that each designated State 
        unit include in the reports additional information related to 
        the applicants and eligible individuals, obtained either through 
        a complete count or sampling, including--
                (i) information on--
                    (I) age, gender, race, ethnicity, education, 
                category of impairment, severity of disability, and 
                whether the individuals are students with disabilities;
                    (II) dates of application, determination of 
                eligibility or ineligibility, initiation of the 
                individualized plan for employment, and termination of 
                participation in the program;
                    (III) earnings at the time of application for the 
                program and termination of participation in the program;
                    (IV) work status and occupation;
                    (V) types of services, including assistive 
                technology services and assistive technology devices, 
                provided under the program;
                    (VI) types of public or private programs or agencies 
                that furnished services under the program; and
                    (VII) the reasons for individuals terminating 
                participation in the program without achieving an 
                employment outcome; and

                (ii) information necessary to determine the success of 
            the State in meeting--
                    (I) the State performance measures established under 
                section 136(b) of the Workforce Investment Act of 1998 
                [29 U.S.C. 2871(b)], to the extent the measures are 
                applicable to individuals with disabilities; and
                    (II) the standards and indicators established 
                pursuant to section 726 of this title.

        (F) Completeness and confidentiality

            The State plan shall include an assurance that the 
        information submitted in the reports will include a complete 
        count, except as provided in subparagraph (E), of the applicants 
        and eligible individuals, in a manner permitting the greatest 
        possible cross-classification of data and that the identity of 
        each individual for which information is supplied under this 
        paragraph will be kept confidential.

          (11) Cooperation, collaboration, and coordination

        (A) Cooperative agreements with other components of statewide 
                workforce investment systems

            The State plan shall provide that the designated State unit 
        or designated State agency shall enter into a cooperative 
        agreement with other entities that are components of the 
        statewide workforce investment system of the State, regarding 
        the system, which agreement may provide for--
                (i) provision of intercomponent staff training and 
            technical assistance with regard to--
                    (I) the availability and benefits of, and 
                information on eligibility standards for, vocational 
                rehabilitation services; and
                    (II) the promotion of equal, effective, and 
                meaningful participation by individuals with 
                disabilities in workforce investment activities in the 
                State through the promotion of program accessibility, 
                the use of nondiscriminatory policies and procedures, 
                and the provision of reasonable accommodations, 
                auxiliary aids and services, and rehabilitation 
                technology, for individuals with disabilities;

                (ii) use of information and financial management systems 
            that link all components of the statewide workforce 
            investment system, that link the components to other 
            electronic networks, including nonvisual electronic 
            networks, and that relate to such subjects as employment 
            statistics, and information on job vacancies, career 
            planning, and workforce investment activities;
                (iii) use of customer service features such as common 
            intake and referral procedures, customer databases, resource 
            information, and human services hotlines;
                (iv) establishment of cooperative efforts with employers 
            to--
                    (I) facilitate job placement; and
                    (II) carry out any other activities that the 
                designated State unit and the employers determine to be 
                appropriate;

                (v) identification of staff roles, responsibilities, and 
            available resources, and specification of the financial 
            responsibility of each component of the statewide workforce 
            investment system with regard to paying for necessary 
            services (consistent with State law and Federal 
            requirements); and
                (vi) specification of procedures for resolving disputes 
            among such components.

        (B) Replication of cooperative agreements

            The State plan shall provide for the replication of such 
        cooperative agreements at the local level between individual 
        offices of the designated State unit and local entities carrying 
        out activities through the statewide workforce investment 
        system.

        (C) Interagency cooperation with other agencies

            The State plan shall include descriptions of interagency 
        cooperation with, and utilization of the services and facilities 
        of, Federal, State, and local agencies and programs, including 
        programs carried out by the Under Secretary for Rural 
        Development of the Department of Agriculture and State use 
        contracting programs, to the extent that such agencies and 
        programs are not carrying out activities through the statewide 
        workforce investment system.

        (D) Coordination with education officials

            The State plan shall contain plans, policies, and procedures 
        for coordination between the designated State agency and 
        education officials responsible for the public education of 
        students with disabilities, that are designed to facilitate the 
        transition of the students with disabilities from the receipt of 
        educational services in school to the receipt of vocational 
        rehabilitation services under this subchapter, including 
        information on a formal interagency agreement with the State 
        educational agency that, at a minimum, provides for--
                (i) consultation and technical assistance to assist 
            educational agencies in planning for the transition of 
            students with disabilities from school to post-school 
            activities, including vocational rehabilitation services;
                (ii) transition planning by personnel of the designated 
            State agency and educational agency personnel for students 
            with disabilities that facilitates the development and 
            completion of their individualized education programs under 
            section 614(d) of the Individuals with Disabilities 
            Education Act [20 U.S.C. 1414(d)] (as added by section 101 
            of Public Law 105-17);
                (iii) the roles and responsibilities, including 
            financial responsibilities, of each agency, including 
            provisions for determining State lead agencies and qualified 
            personnel responsible for transition services; and
                (iv) procedures for outreach to and identification of 
            students with disabilities who need the transition services.

        (E) Coordination with Statewide Independent Living Councils and 
                independent living centers

            The State plan shall include an assurance that the 
        designated State unit, the Statewide Independent Living Council 
        established under section 796d of this title, and the 
        independent living centers described in subpart 3 \1\ of part A 
        of subchapter VII of this chapter within the State have 
        developed working relationships and coordinate their activities.
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        (F) Cooperative agreement with recipients of grants for services 
                to American Indians

            In applicable cases, the State plan shall include an 
        assurance that the State has entered into a formal cooperative 
        agreement with each grant recipient in the State that receives 
        funds under part C of this subchapter. The agreement shall 
        describe strategies for collaboration and coordination in 
        providing vocational rehabilitation services to American Indians 
        who are individuals with disabilities, including--
                (i) strategies for interagency referral and information 
            sharing that will assist in eligibility determinations and 
            the development of individualized plans for employment;
                (ii) procedures for ensuring that American Indians who 
            are individuals with disabilities and are living near a 
            reservation or tribal service area are provided vocational 
            rehabilitation services; and
                (iii) provisions for sharing resources in cooperative 
            studies and assessments, joint training activities, and 
            other collaborative activities designed to improve the 
            provision of services to American Indians who are 
            individuals with disabilities.

                           (12) Residency

        The State plan shall include an assurance that the State will 
    not impose a residence requirement that excludes from services 
    provided under the plan any individual who is present in the State.

                  (13) Services to American Indians

        The State plan shall include an assurance that, except as 
    otherwise provided in part C of this subchapter, the designated 
    State agency will provide vocational rehabilitation services to 
    American Indians who are individuals with disabilities residing in 
    the State to the same extent as the designated State agency provides 
    such services to other significant populations of individuals with 
    disabilities residing in the State.

    (14) Annual review of individuals in extended employment or 
                 other employment under special certificate 
             provisions of the Fair Labor Standards Act of 1938

        The State plan shall provide for--
            (A) an annual review and reevaluation of the status of each 
        individual with a disability served under this subchapter who 
        has achieved an employment outcome either in an extended 
        employment setting in a community rehabilitation program or any 
        other employment under section 14(c) of the Fair Labor Standards 
        Act (29 U.S.C. 214(c)) for 2 years after the achievement of the 
        outcome (and thereafter if requested by the individual or, if 
        appropriate, the individual's representative), to determine the 
        interests, priorities, and needs of the individual with respect 
        to competitive employment or training for competitive 
        employment;
            (B) input into the review and reevaluation, and a signed 
        acknowledgment that such review and reevaluation have been 
        conducted, by the individual with a disability, or, if 
        appropriate, the individual's representative; and
            (C) maximum efforts, including the identification and 
        provision of vocational rehabilitation services, reasonable 
        accommodations, and other necessary support services, to assist 
        the individuals described in subparagraph (A) in engaging in 
        competitive employment.

           (15) Annual State goals and reports of progress

        (A) Assessments and estimates

            The State plan shall--
                (i) include the results of a comprehensive, statewide 
            assessment, jointly conducted by the designated State unit 
            and the State Rehabilitation Council (if the State has such 
            a Council) every 3 years, describing the rehabilitation 
            needs of individuals with disabilities residing within the 
            State, particularly the vocational rehabilitation services 
            needs of--
                    (I) individuals with the most significant 
                disabilities, including their need for supported 
                employment services;
                    (II) individuals with disabilities who are 
                minorities and individuals with disabilities who have 
                been unserved or underserved by the vocational 
                rehabilitation program carried out under this 
                subchapter; and
                    (III) individuals with disabilities served through 
                other components of the statewide workforce investment 
                system (other than the vocational rehabilitation 
                program), as identified by such individuals and 
                personnel assisting such individuals through the 
                components;

                (ii) include an assessment of the need to establish, 
            develop, or improve community rehabilitation programs within 
            the State; and
                (iii) provide that the State shall submit to the 
            Commissioner a report containing information regarding 
            updates to the assessments, for any year in which the State 
            updates the assessments.

        (B) Annual estimates

            The State plan shall include, and shall provide that the 
        State shall annually submit a report to the Commissioner that 
        includes, State estimates of--
                (i) the number of individuals in the State who are 
            eligible for services under this subchapter;
                (ii) the number of such individuals who will receive 
            services provided with funds provided under part B of this 
            subchapter and under part B of subchapter VI of this 
            chapter, including, if the designated State agency uses an 
            order of selection in accordance with paragraph (5), 
            estimates of the number of individuals to be served under 
            each priority category within the order; and
                (iii) the costs of the services described in clause (i), 
            including, if the designated State agency uses an order of 
            selection in accordance with paragraph (5), the service 
            costs for each priority category within the order.

        (C) Goals and priorities

            (i) In general

                The State plan shall identify the goals and priorities 
            of the State in carrying out the program. The goals and 
            priorities shall be jointly developed, agreed to, and 
            reviewed annually by the designated State unit and the State 
            Rehabilitation Council, if the State has such a Council. Any 
            revisions to the goals and priorities shall be jointly 
            agreed to by the designated State unit and the State 
            Rehabilitation Council, if the State has such a Council. The 
            State plan shall provide that the State shall submit to the 
            Commissioner a report containing information regarding 
            revisions in the goals and priorities, for any year in which 
            the State revises the goals and priorities.
            (ii) Basis

                The State goals and priorities shall be based on an 
            analysis of--
                    (I) the comprehensive assessment described in 
                subparagraph (A), including any updates to the 
                assessment;
                    (II) the performance of the State on the standards 
                and indicators established under section 726 of this 
                title; and
                    (III) other available information on the operation 
                and the effectiveness of the vocational rehabilitation 
                program carried out in the State, including any reports 
                received from the State Rehabilitation Council, under 
                section 725(c) of this title and the findings and 
                recommendations from monitoring activities conducted 
                under section 727 of this title.
            (iii) Service and outcome goals for categories in 
                    order of selection

                If the designated State agency uses an order of 
            selection in accordance with paragraph (5), the State shall 
            also identify in the State plan service and outcome goals 
            and the time within which these goals may be achieved for 
            individuals in each priority category within the order.

        (D) Strategies

            The State plan shall contain a description of the strategies 
        the State will use to address the needs identified in the 
        assessment conducted under subparagraph (A) and achieve the 
        goals and priorities identified in subparagraph (C), including--
                (i) the methods to be used to expand and improve 
            services to individuals with disabilities, including how a 
            broad range of assistive technology services and assistive 
            technology devices will be provided to such individuals at 
            each stage of the rehabilitation process and how such 
            services and devices will be provided to such individuals on 
            a statewide basis;
                (ii) 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 program;
                (iii) where necessary, the plan of the State for 
            establishing, developing, or improving community 
            rehabilitation programs;
                (iv) strategies to improve the performance of the State 
            with respect to the evaluation standards and performance 
            indicators established pursuant to section 726 of this 
            title; and
                (v) strategies for assisting entities carrying out other 
            components of the statewide workforce investment system 
            (other than the vocational rehabilitation program) in 
            assisting individuals with disabilities.

        (E) Evaluation and reports of progress

            The State plan shall--
                (i) include the results of an evaluation of the 
            effectiveness of the vocational rehabilitation program, and 
            a joint report by the designated State unit and the State 
            Rehabilitation Council, if the State has such a Council, to 
            the Commissioner on the progress made in improving the 
            effectiveness from the previous year, which evaluation and 
            report shall include--
                    (I) an evaluation of the extent to which the goals 
                identified in subparagraph (C) were achieved;
                    (II) a description of strategies that contributed to 
                achieving the goals;
                    (III) to the extent to which the goals were not 
                achieved, a description of the factors that impeded that 
                achievement; and
                    (IV) an assessment of the performance of the State 
                on the standards and indicators established pursuant to 
                section 726 of this title; and

                (ii) provide that the designated State unit and the 
            State Rehabilitation Council, if the State has such a 
            Council, shall jointly submit to the Commissioner an annual 
            report that contains the information described in clause 
            (i).

                         (16) Public comment

        The State plan shall--
            (A) provide that the designated State agency, prior to the 
        adoption of any policies or procedures governing the provision 
        of vocational rehabilitation services under the State plan 
        (including making any amendment to such policies and 
        procedures), shall conduct public meetings throughout the State, 
        after providing adequate notice of the meetings, to provide the 
        public, including individuals with disabilities, an opportunity 
        to comment on the policies or procedures, and actively consult 
        with the Director of the client assistance program carried out 
        under section 732 of this title, and, as appropriate, Indian 
        tribes, tribal organizations, and Native Hawaiian organizations 
        on the policies or procedures; and
            (B) provide that the designated State agency (or each 
        designated State agency if two agencies are designated) and any 
        sole agency administering the plan in a political subdivision of 
        the State, shall take into account, in connection with matters 
        of general policy arising in the administration of the plan, the 
        views of--
                (i) individuals and groups of individuals who are 
            recipients of vocational rehabilitation services, or in 
            appropriate cases, the individuals' representatives;
                (ii) personnel working in programs that provide 
            vocational rehabilitation services to individuals with 
            disabilities;
                (iii) providers of vocational rehabilitation services to 
            individuals with disabilities;
                (iv) the director of the client assistance program; and
                (v) the State Rehabilitation Council, if the State has 
            such a Council.

          (17) Use of funds for construction of facilities

        The State plan shall 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 for the 
        facilities for a fiscal year will not exceed an amount equal to 
        10 percent of the State's allotment under section 730 of this 
        title for such year;
            (B) the provisions of section 776 of this title (as in 
        effect on the day before August 7, 1998) 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 the 
        plan includes such provisions for construction.

              (18) Innovation and expansion activities

        The State plan shall--
            (A) include an assurance that the State will reserve and use 
        a portion of the funds allotted to the State under section 730 
        of this title--
                (i) for the development and implementation of innovative 
            approaches to expand and improve the provision of vocational 
            rehabilitation services to individuals with disabilities 
            under this subchapter, particularly individuals with the 
            most significant disabilities, consistent with the findings 
            of the statewide assessment and goals and priorities of the 
            State as described in paragraph (15); and
                (ii) to support the funding of--
                    (I) the State Rehabilitation Council, if the State 
                has such a Council, consistent with the plan prepared 
                under section 725(d)(1) of this title; and
                    (II) the Statewide Independent Living Council, 
                consistent with the plan prepared under section 
                796d(e)(1) of this title;

            (B) include a description of how the reserved funds will be 
        utilized; and
            (C) provide that the State shall submit to the Commissioner 
        an annual report containing a description of how the reserved 
        funds were utilized during the preceding year.

                             (19) Choice

        The State plan shall include an assurance that applicants and 
    eligible individuals or, as appropriate, the applicants' 
    representatives or individuals' representatives, will be provided 
    information and support services to assist the applicants and 
    individuals in exercising informed choice throughout the 
    rehabilitation process, consistent with the provisions of section 
    722(d) of this title.

               (20) Information and referral services

        (A) In general

            The State plan shall include an assurance that the 
        designated State agency will implement an information and 
        referral system adequate to ensure that individuals with 
        disabilities will be provided accurate vocational rehabilitation 
        information and guidance, using appropriate modes of 
        communication, to assist such individuals in preparing for, 
        securing, retaining, or regaining employment, and will be 
        appropriately referred to Federal and State programs (other than 
        the vocational rehabilitation program carried out under this 
        subchapter), including other components of the statewide 
        workforce investment system in the State.

        (B) Referrals

            An appropriate referral made through the system shall--
                (i) be to the Federal or State programs, including 
            programs carried out by other components of the statewide 
            workforce investment system in the State, best suited to 
            address the specific employment needs of an individual with 
            a disability; and
                (ii) include, for each of these programs, provision to 
            the individual of--
                    (I) a notice of the referral by the designated State 
                agency to the agency carrying out the program;
                    (II) information identifying a specific point of 
                contact within the agency carrying out the program; and
                    (III) information and advice regarding the most 
                suitable services to assist the individual to prepare 
                for, secure, retain, or regain employment.

    (21) State independent consumer-controlled commission; State 
                           Rehabilitation Council

        (A) Commission or Council

            The State plan shall provide that either--
                (i) the designated State agency is an independent 
            commission that--
                    (I) is responsible under State law for operating, or 
                overseeing the operation of, the vocational 
                rehabilitation program in the State;
                    (II) is consumer-controlled by persons who--
                        (aa) are individuals with physical or mental 
                    impairments that substantially limit major life 
                    activities; and
                        (bb) represent individuals with a broad range of 
                    disabilities, unless the designated State unit under 
                    the direction of the commission is the State agency 
                    for individuals who are blind;

                    (III) includes family members, advocates, or other 
                representatives, of individuals with mental impairments; 
                and
                    (IV) undertakes the functions set forth in section 
                725(c)(4) of this title; or

                (ii) the State has established a State Rehabilitation 
            Council that meets the criteria set forth in section 725 of 
            this title and the designated State unit--
                    (I) in accordance with paragraph (15), jointly 
                develops, agrees to, and reviews annually State goals 
                and priorities, and jointly submits annual reports of 
                progress with the Council;
                    (II) regularly consults with the Council regarding 
                the development, implementation, and revision of State 
                policies and procedures of general applicability 
                pertaining to the provision of vocational rehabilitation 
                services;
                    (III) includes in the State plan and in any revision 
                to the State plan, a summary of input provided by the 
                Council, including recommendations from the annual 
                report of the Council described in section 725(c)(5) of 
                this title, the review and analysis of consumer 
                satisfaction described in section 725(c)(4) of this 
                title, and other reports prepared by the Council, and 
                the response of the designated State unit to such input 
                and recommendations, including explanations for 
                rejecting any input or recommendation; and
                    (IV) transmits to the Council--
                        (aa) all plans, reports, and other information 
                    required under this subchapter to be submitted to 
                    the Secretary;
                        (bb) all policies, and information on all 
                    practices and procedures, of general applicability 
                    provided to or used by rehabilitation personnel in 
                    carrying out this subchapter; and
                        (cc) copies of due process hearing decisions 
                    issued under this subchapter, which shall be 
                    transmitted in such a manner as to ensure that the 
                    identity of the participants in the hearings is kept 
                    confidential.

        (B) More than one designated State agency

            In the case of a State that, under subsection (a)(2) of this 
        section, designates a State agency to administer the part of the 
        State 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 designates a 
        separate State agency to administer the rest of the State plan, 
        the State shall either establish a State Rehabilitation Council 
        for each of the two agencies that does not meet the requirements 
        in subparagraph (A)(i), or establish one State Rehabilitation 
        Council for both agencies if neither agency meets the 
        requirements of subparagraph (A)(i).

           (22) Supported employment State plan supplement

        The State plan shall include an assurance that the State has an 
    acceptable plan for carrying out part B of subchapter VI of this 
    chapter, including the use of funds under that part to supplement 
    funds made available under part B of this subchapter to pay for the 
    cost of services leading to supported employment.

                         (23) Annual updates

        The plan shall include an assurance that the State will submit 
    to the Commissioner reports containing annual updates of the 
    information required under paragraph (7) (relating to a 
    comprehensive system of personnel development) and any other updates 
    of the information required under this section that are requested by 
    the Commissioner, and annual reports as provided in paragraphs (15) 
    (relating to assessments, estimates, goals and priorities, and 
    reports of progress) and (18) (relating to innovation and 
    expansion), at such time and in such manner as the Secretary may 
    determine to be appropriate.

          (24) Certain contracts and cooperative agreements

        (A) Contracts with for-profit organizations

            The State plan shall provide that the designated State 
        agency has the authority to enter into contracts with for-profit 
        organizations for the purpose of providing, as vocational 
        rehabilitation services, on-the-job training and related 
        programs for individuals with disabilities under part A of 
        subchapter VI of this chapter, upon a determination by such 
        agency that such for-profit organizations are better qualified 
        to provide such rehabilitation services than nonprofit agencies 
        and organizations.

        (B) Cooperative agreements with private nonprofit organizations

            The State plan shall describe the manner in which 
        cooperative agreements with private nonprofit vocational 
        rehabilitation service providers will be established.

(b) Approval; disapproval of the State plan

                            (1) Approval

        The Commissioner shall approve any plan that the Commissioner 
    finds fulfills the conditions specified in this section, and shall 
    disapprove any plan that does not fulfill such conditions.

                           (2) Disapproval

        Prior to disapproval of the State plan, the Commissioner shall 
    notify the State of the intention to disapprove the plan and shall 
    afford the State reasonable notice and opportunity for a hearing.

(Pub. L. 93-112, title I, Sec. 101, as added Pub. L. 105-220, title IV, 
Sec. 404, Aug. 7, 1998, 112 Stat. 1119; amended Pub. L. 105-277, div. A, 
Sec. 101(f) [title VIII, Sec. 402(c)(4)], Oct. 21, 1998, 112 Stat. 2681-
337, 2681-415.)

                       References in Text

    The Architectural Barriers Act of 1968, referred to in subsec. 
(a)(6)(C), is Pub. L. 90-480, Aug. 12, 1968, 82 Stat. 718, as amended, 
which is classified generally to chapter 51 (Sec. 4151 et seq.) of Title 
42, The Public Health and Welfare. For complete classification of this 
Act to the Code, see Short Title note set out under section 4151 of 
Title 42 and Tables.
    The Americans with Disabilities Act of 1990, referred to in subsec. 
(a)(6)(C), is Pub. L. 101-336, July 26, 1990, 104 Stat. 327, as amended, 
which is classified principally to chapter 126 (Sec. 12101 et seq.) of 
Title 42, The Public Health and Welfare. For complete classification of 
this Act to the Code, see Short Title note set out under section 12101 
of Title 42 and Tables.
    The Individuals with Disabilities Education Act, referred to in 
subsec. (a)(7)(A)(ii), is title VI of Pub. L. 91-230, Apr. 13, 1970, 84 
Stat. 175, as amended, which is classified generally to chapter 33 
(Sec. 1400 et seq.) of Title 20, Education. For complete classification 
of this Act to the Code, see section 1400 of Title 20 and Tables.
    The Rehabilitation Act Amendments of 1998, referred to in subsec. 
(a)(7)(A)(v)(II), is title IV of Pub. L. 105-220, Aug. 7, 1998, 112 
Stat. 1092. For complete classification of this Act to the Code, see 
Short Title of 1998 Amendment note set out under section 701 of this 
title and Tables.
    The Workforce Investment Act of 1998, referred to in subsec. 
(a)(10)(D)(i), is Pub. L. 105-220, Aug. 7, 1998, 112 Stat. 936, as 
amended. Title I of the Act is classified principally to chapter 30 
(Sec. 2801 et seq.) of this title. For complete classification of this 
Act to the Code, see Short Title note set out under section 9201 of 
Title 20, Education, and Tables.
    Subpart 3 of part A of subchapter VII of this chapter, referred to 
in subsec. (a)(11)(E), was in the original a reference to ``part C of 
title VII'', meaning part C of title VII of the Rehabilitation Act of 
1973, and was translated as if it referred to part C of chapter I of 
title VII of the Act to reflect the probable intent of Congress.


                            Prior Provisions

    A prior section 721, Pub. L. 93-112, title I, Sec. 101, Sept. 26, 
1973, 87 Stat. 363; Pub. L. 93-516, title I, Sec. 111(b)-(d), Dec. 7, 
1974, 88 Stat. 1619, 1620; Pub. L. 93-651, title I, Sec. 111(b)-(d), 
Nov. 21, 1974, 89 Stat. 2-5; Pub. L. 95-602, title I, Secs. 102, 
122(b)(1), Nov. 6, 1978, 92 Stat. 2957, 2987; Pub. L. 98-221, title I, 
Sec. 104(a)(2), Feb. 22, 1984, 98 Stat. 18; Pub. L. 98-524, Sec. 4(f), 
Oct. 19, 1984, 98 Stat. 2489; Pub. L. 99-506, title I, Sec. 103(d)(2), 
title II, Sec. 202, title X, Sec. 1001(b)(1)-(4), Oct. 21, 1986, 100 
Stat. 1810, 1814, 1841, 1842; Pub. L. 100-630, title II, Sec. 202(b), 
Nov. 7, 1988, 102 Stat. 3304; Pub. L. 102-54, Sec. 13(k)(1)(A), June 13, 
1991, 105 Stat. 276; Pub. L. 102-119, Sec. 26(e), Oct. 7, 1991, 105 
Stat. 607; Pub. L. 102-569, title I, Secs. 102(o), (p)(7), 122, Oct. 29, 
1992, 106 Stat. 4355, 4356, 4367; Pub. L. 103-73, title I, Secs. 102(2), 
107(a), Aug. 11, 1993, 107 Stat. 718, 719; Pub. L. 104-106, div. D, 
title XLIII, Sec. 4321(i)(7), Feb. 10, 1996, 110 Stat. 676, related to 
State plans, prior to the general amendment of this subchapter by Pub. 
L. 105-220.


                               Amendments

    1998--Subsec. (a)(18)(C). Pub. L. 105-277, Sec. 101(f) [title VIII, 
Sec. 402(c)(4)(A)], substituted ``were utilized during the preceding 
year'' for ``will be utilized''.
    Subsec. (a)(21)(A)(i)(II)(bb). Pub. L. 105-277, Sec. 101(f) [title 
VIII, Sec. 402(c)(4)(B)], substituted ``commission'' for ``Commission''.

                  Section Referred to in Other Sections

    This section is referred to in sections 705, 707, 709, 710, 720, 
722, 723, 725, 727, 731, 764, 772, 795, 795k, 795l, 795m, 796d, 796d-1, 
796k of this title; title 20 section 107a.
