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(F) services to the families of handicapped individuals when such services will contribute substantially

to the rehabilitation of such individuals.

(3) Such term includes the following services and goods 5 provided for the benefit of groups of individuals

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(A) in the case of any type of small business operated by the severely handicapped the operation of which can be improved by management services and supervision provided by the State agency, the provision of such services and supervision, alone or together with the acquisition by the State agency of vending stands or

other equipment and initial stocks and supplies; and
(B) the construction or establishment of public or
other nonprofit rehabilitation facilities and the provision.
of other facilities and services which promise to con-
tribute substantially to the rehabilitation of a group of
individuals but which are not related directly to the reha-
bilitation plan of any one handicapped individual.

(b) The term "handicapped individual" means any in20 dividual who (1) has a physical or mental disability which 21 constitutes a handicap to employment and (2) can reasonably 22 be expected to benefit from rehabilitation services. Nothing 23 in the preceding provisions of this subsection or in subsection 24 (a) shall be construed to exclude from "vocational rehabilita25 tion services" any goods or services provided to an individual

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1 who is under a physical or mental disability and who has a 2 substantial handicap to employment, during the period, not 3 in excess of eighteen months in the case of any individual 4 who has a severe handicap, or twelve months in the case of an 5 individual suffering from end stage renal disease, or six 6 months in the case of an individual with any other disability, 7 determined (in accordance with regulations of the Secretary) 8 to be necessary for, and which are provided for the purpose 9 of, ascertaining whether it may reasonably be expected that 10 such individual will be rendered fit to engage in a gainful 11 occupation through the provision of goods and services de12 scribed in subsection (a), but only if the goods or services 13 provided to him during such period would constitute "voca14 tional rehabilitation services" if his disability were of such a 15 nature that he would be a "handicapped individual" under 16 such preceding provisions of this subsection.

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(c) The term "rehabilitation facility" means a facility 18 which is operated for the primary purpose of providing voca19 tional rehabilitation services to, or gainful employment for, 20 handicapped individuals, or for providing evaluation and 21 work adjustment services for disadvantaged individuals, and 22 which provides singly or in combination one or more of the 23 following services for handicapped individuals: (1) Com24 prehensive rehabilitation services which shall include, under 25 one management, medical, psychological, social, and voca

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1 tional services, (2) testing, fitting, or training in the use 2 of prosthetic and orthotic devices, (3) prevocational condi3 tioning or recreational therapy, (4) physical and occupa4 tional therapy, (5) speech and hearing therapy, (6) psy5 chological and social services, (7) evaluation, (8) personal 6 and work adjustment, (9) vocational training (in combina7 tion with other rehabilitation services), (10) evaluation or 8 control of special disabilities, and (11) extended employ9 ment for the severely handicapped who cannot be readily 10 absorbed in the competitive labor market; but all medical 11 and related health services must be prescribed by, or under 12 the formal supervision of, persons licensed to practice medi13 cine or surgery in the State.

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(d) The term "nonprofit", when used with respect to a 15 rehabilitation facility, means a rehabilitation facility owned 16 and operated by a corporation or association, no part of the 17 net earnings of which inures, or may lawfully inure, to the 18 benefit of any private shareholder or individual and the in19 come of which is exempt from taxation under section 501 (c) (3) of the Internal Revenue Code of 1954.

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(e) Establishment of a rehabilitation facility means (1) 22 the expansion, remodeling, or alteration of existing buildings 23 necessary to adapt them to rehabilitation facility purposes or to increase their effectiveness for such purposes (subject, 25 however, to such limitations as the Secretary may, by regu

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1 lation, prescribe in order to prevent impairment of the ob2 jectives of, or duplication of, other Federal laws providing 3 Federal assistance in the construction of such facilities), (2) 4 initial equipment of such buildings, and initial staffing thereof

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(for a period not to exceed four years and three months). 6 (f) The term "Federal share" means 80 per centum 7 except that with respect to payments pursuant to section 8 103 (b) to any State which are used to meet the costs of 9 construction of rehabilitation facilities (as provided in section 10 106 (a) (3) (B) in such State, the Federal share shall be 11 the percentages determined in accordance with the provisions 12 of section 405 (c) applicable with respect to that State). 13 (g) The term "construction" means the construction 14 of new buildings, the acquisition of existing buildings, initial 15 equipment of such new buildings or newly acquired build16 ings, and initial staffing thereof (for a period not to exceed 17 four years and three months), and the term "cost of con18 struction" includes architects' fees and acquisition of land 19 in connection with construction but does not include the 20 cost of offsite improvements.

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(h) The term "local agency" means an agency of a 22 unit of general local government (or combination of units) 23 which has an agreement with the State agency designated 24 in section 105 (a) (1) to conduct a vocational rehabilita25 tion program under the supervision of such State agency in

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1 accordance with the State plan approved under section 2 105. Nothing in the preceding provisions of this subsection 3 or in section 105 shall be construed to prevent the local 4 agency from utilizing another local public or private non5 profit agency to provide vocational rehabilitation services: 6 Provided, That such an arrangement is made part of the 7 agreement specified in the first sentence of this subsection. TITLE II-EVALUATION OF REHABILITATION

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POTENTIAL

DECLARATION OF PURPOSE

SEC. 201. The purpose of this title is to authorize grants 12 to States to assist them in evaluating the rehabilitation po13 tential of handicapped and other disadvantaged individuals 14 including the vocational evaluation and work adjustment of 15 disadvantaged individuals.

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AUTHORIZATION OF APPROPRIATIONS

SEC. 202. In order to make grants to carry out the pur18 poses of section 201, there are authorized to be appropriated 19 $50,000,000 for the fiscal year ending June 30, 1973, $75,20 000,000 for the fiscal year ending June 30, 1974, and 21 $100,000,000 for the fiscal year ending June 30, 1975.

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STATE ALLOTMENTS

SEC. 203. (a) For each fiscal year each State shall be

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to the amount authorized to be appropriated by section 202

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