[S. 2759, 83d Cong., 2d sess.] A BILL To amend the Vocational Rehabilitation Act so as to promote and assist in the extension and improvement of vocational rehabilitation services, provide for a more effective use of available Federal funds, and otherwise improve the provisions of that Act, and for other purposes Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That this Act may be cited as the "Vocational Rehabilitation Amendments of 1954." AMENDMENTS TO THE VOCATIONAL REHABILITATION ACT SEC. 2. The Vocational Rehabilitation Act (29 U. S. C., ch. 4) is amended to read as follows: "AUTHORIZATION OF APPROPRIATIONS FOR GRANTS; PURPOSES FOR WHICH AVAILABLE "SECTION 1. For the purpose of assisting the States in rehabilitating physically and mentally handicapped persons so that they may prepare for and engage in remunerative employment to the extent of their capabilities, thereby increasing not only their social and economic well-being but also the productive capacity of the Nation, there are hereby authorized to be appropriated for each fiscal year, beginning with the fiscal year ending June 30, 1955, such sums for grants to carry out the purposes of this Act as the Congress may determine. The sums so appropriated for any fiscal year shall be available for— "(1) grants to States to assist them in meeting the costs of vocational rehabilitation services; "(2) grants to States to assist them in initiating projects for the extension and improvement of their vocational rehabilitation services; and "(3) grants to States and to public and other nonprofit organizations and agencies to assist in meeting the cost of projects which hold unique promise of making a substantial contribution to the solution of vocational rehabilitation problems common to a number of States and of projects or measures directed at meeting problems of special national significance or concern, including temporary assistance in initiating a substantial nationwide expansion of vocational rehabilitation programs in the States. The portion of such sums which shall be available for each of such three types of grants shall be specified in the Act appropriating such sums. "GRANTS TO STATES FOR VOCATIONAL REHABILITATION SERVICES "SEC. 2. (a) From the sums available for any fiscal year for grants to States to assist them in meeting the costs of vocational rehabilitation services, each State shall be entitled to an allotment of an amount which bears the same ratio to such sums as the product of (1) the population of the State and (2) the square of its allotment percentage (as defined in section 10 (h)) bears to the sum of the corresponding products for all the States. The allotment to any State under the preceding sentence for any fiscal year which is less than $50,000 (or such other amount as may be specified as a minimum allotment in the Act appropriating such sums for such year) shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the allotments to each of the remaining States under the preceding sentence, but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from being thereby reduced to less than that amount. "(b) From each State's allotment available for such purpose for any fiscal year, the Secretary shall pay to such State, an amount equal to the Federal share (determined as provided in section 10 (i)) of the cost of vocational rehabilitation services under the plan of such State approved under section 5, including expenditures for the administration of the State plan. (c) In the case of any State for which there is a separate State agency administering or supervising the administration of the part of a State plan under which vocational rehabilitation services are provided for the blind, the State's allotment under this section shall be divided between such agency and the State agency administering (or supervising the administration of) the remainder of the State plan in the same proportion as the Secretary estimates at the beginning of the year State and other non-Federal funds will be available, during the fiscal year for which the allotment is made, for meeting the cost of vocational rehabilitation services under the two portions of the State plan, except that for the fiscal years ending June 30, 1955, and June 30, 1956, the allotment to any State in which there were such separate agencies shall be divided in the same proportion as the grants to the State under this Act for expenditures during the fiscal year ending June 30, 1954, were divided between such agencies. "GRANTS TO STATES FOR EXTENSION AND IMPROVEMENT PROJECTS "SEC. 3. (a) (1) From the sums available for any fiscal year for grants to States to assist them in initiating projects for the extension and improvement of vocational rehabilitation services, each State shall be entitled to an amount bearing the same ratio to such sums as the population of such State bears to the population of all the States. The allotment to any State under the preceding sentence for any fiscal year which is less than $5,000 (or such other amount as may be specified as a minimum allotment in the Act appropriating such sums for such year) shall be increased to that amount, the total of the increases thereby required being derived by proportionately reducing the allotments to each of the remaining States under the preceding sentence, but with such adjustments as may be necessary to prevent the allotment of any of such remaining States from being thereby reduced to less than that amount. "(2) From each State's allotment available for such purpose for any fiscal year, the Secretary shall pay to such State a portion of the cost of approved projects for the extension and improvement of vocational rehabilitation services (including their administration) under the State plan. The Secretary shall approve any project for purposes of this section only if the plan of such State approved under section 5 includes such project or is modified to include it and only if he finds the project constitutes an extension or improvement of vocational rehabilitation services under the State plan or will contribute materially to such an extension or improvement. "(b) Payments under this section with respect to any project may be made for a period of not to exceed six years beginning with the commencement of the first fiscal year for which any payment is made with respect to such projects from an allotment under this section. To the extent permitted by the State's allotments under this section, such payments with respect to any project shall be equal to 75 per centum of the cost of such project for the first biennium in such period, 50 per centum of such cost for the second biennium in such period, and 25 per centum of such cost for the last biennium in such period, except that, at the request of the State, such payments may be less than such percentage of the cost of such project. "(e) No payment may be made from an allotment under this section with respect to any cost with respect to which any payment is made under section 2. "(d) In the case of any State for which there is a separate State agency administering or supervising the administration of the part of a State plan under which vocational rehabilitation services are provided for the blind, the State's allotment under this section shall be divided between such agency and the State agency administering (or supervising the administration of) the remainder of the State plan in the same proportion as the Secretary estimates at the beginning of the year State and other non-Federal funds will be available, during the fiscal year for which the allotment is made, for meeting the cost of vocational rehabilitation services under the two portions of the State plan, except that for the fiscal years ending June 30, 1955, and June 30, 1956, the allotment to any State in which there were such separate agencies shall be divided in the same proportion as the grants to the State under this Act for expenditures during the fiscal year ending June 30, 1954, were divided between such agencies. "GRANTS FOR SPECIAL PROJECTS "SEC. 4. (a) From the sums available therefor for any fiscal year, the Secretary shall make grants to States, and public and other nonprofit organizations and agencies (1) for paying part of the cost of projects which, in the judgment of the Secretary, hold unique promise of making a substantial contribution to the solution of vocational rehabilitation problems common to all or several States, and of projects or measures directed at meeting vocational rehabilitation problems of special national significance or concern, and (2) for planning, preparing for, and initiating, during the fiscal year ending June 30, 1955, and the fiscal year ending June 30, 1956, a substantial nationwide expansion of vocational rehabilitation programs in the States. "(b) Payments under this section may be made in advance or by way of reimbursement for services performed and purchases made, as may be determined by the Secretary; and shall be made on such conditions as the Secretary finds necessary to carry out the purposes of this section. "STATE PLANS "SEC. 5. (a) To be approvable under this Act, a State plan for vocational rehabilitation services shall "(1) designate the State agency administering or supervising the administration of vocational education in the State, or a State rehabilitation agency (primarily concerned with vocational rehabilitation), as the sole State agency to administer or supervise the administration of the plan, except that where under the State's law, the State blind commission, or other agency which provides assistance or services to the adult blind, is authorized to provide them vocational rehabilitation services, such State blind commission or other State agency may be designated as the sole State agency to administer or supervise the administration of the part of the plan under which vocational rehabilitation services are provided for the blind and the State vocational education agency or the State rehabilitation agency shall be designated as the sole State agency with respect to the rest of the State plan; “(2) provide for financial participation by the State, and provide that the plan shall be in effect in all political subdivisions of the State; "(3) show the plan, policies, and methods to be followed in carrying out the work under the State plan and in its administration and supervision, and in case vocational rehabilitation services cannot be provided all eligible disabled individuals who apply for such services, show the order to be followed in selecting those to whom vocational rehabilitation services will be provided; "(4) provide such methods of administration, other than methods relating to the establishment and maintenance of personnel standards, as are found by the Secretary to be necessary for the proper and efficient administration of the plan; "(5) contain (A) provisions relating to the establishment and maintenance of personnel standards, including provisions relating to the tenure, selection, appointment, and qualifications of personnel, and (B) provisions relating to the establishment and maintenance of minimum standards governing the facilities and personnel utilized in the provision of vocational rehabilitation services; "(6) provide that, in addition to training, maintenance, placement, and guidance, physical restoration services will be provided under the plan; "(7) provide that the State agency will make such reports, in such form and containing such information, as the Secretary may from time to time reasonably require to carry out his functions under this Act, and comply with such provisions as he may from time to time find necessary to assure the correctness and verification of such reports; "(8) provide for cooperation by the State agency with, and the utilization of the services of, the State agency administering the State's public assistance program, and the Bureau of Old-Age and Survivors Insurance (Department of Health, Education, and Welfare) and of other Federal, State, and local public agencies providing services relating to vocational rehabilitation services; and "(9) provide for entering into cooperative arangements with the system of public employment offices in the State and the utilization of the services of such offices. "(b) The Secretary shall approve any plan which the Secretary finds fulfills the conditions specified in subsection (a) of this section. "(c) Whenever the Secretary, after reasonable notice and opportunity for hearing to the State agency administering or supervising the administration of the State plan approved under this section, finds that "(1) the plan has been so changed that it no longer contains any provision required by subsection (a) of this section to be included in the plan; or “(2) in the administration of the plan there is a failure to comply substantially with any such provision; the Secretary shall notify such State agency that no further payments will be made to the State under section 2 or (or, in his discretion, that further payments will not be made to the State for projects under or parts of the State plan affected by such failure), until he is satisfied that there is no longer any such failure. Until he is so satisfied the Secretary shall make no further payments to such State under section 2 or 3 (or shall limit payments to projects under or parts of the State plan in which there is no such failure). "METHOD OF COMPUTING AND MAKING PAYMENTS "SEC. 6. The method of computing and paying amounts pursuant to section 2 or 3 shall be as follows: "(a) The Secretary shall, prior to the beginning of each calendar quarter or other period prescribed by him, estimate the amount to be paid to each State under the provisions of such section for such period, such estimate to be based on such record of the State and information furnished by it, and such other investigation, as the Secretary may find necessary. "(b) The Secretary shall pay, from the allotment available therefor, the amount so estimated by him for such period, reduced or increased, as the case may be, by any sum (not previously adjusted under this subsection) by which he finds that his estimate of the amount to be paid the State for any prior period under such section was greater or less than the amount which should have been paid to the State for such prior period under such section. Such payments shall be made prior to audit or settlement by the General Accounting Office, shall be made through the disbursing facilities of the Treasury Department, and shall be made in such installments as the Secretary may determine. "ADMINISTRATION "SEC. 7. (a) In carrying out his duties under this Act, the Secretary shall-— "(1) make studies, investigations, demonstrations, and reports with respect to abilities, aptitudes, and capacities of handicapped individuals, development of their potentialities, and their utilization in gainful and suitable employment; "(2) cooperate with and render technical assistance to States in matters relating to the vocational rehabilitation of disabled individuals; "(3) provide short-term training and instruction in technical matters relating to vocational rehabilitation services, including the establishment and maintenance of such research fellowships and traineeships, with such stipends and allowances (including travel and subsistence expenses), as he may deem necessary; and "(4) disseminate information as to the studies, investigations, demonstrations, and reports referred to in paragraph (1) and other matters relating to vocational rehabilitation services, and otherwise promote the cause of rehabilitation of disabled individuals and their greater utilization in gainful and suitable employment. "(b) The Secretary is authorized to make rules and regulations governing the administration of this Act, and to delegate to any officer or employee of the United States such of his powers and duties, except the making of rules and regulations, as he finds necessary in carrying out the purposes of this Act. "REPORTS "SEC. 8. Annual reports shall be made to the Congress by the Secretary as to the administration of this Act. "AUTHORIZATION OF APPROPRIATION FOR ADMINISTRATION "SEC. 9. There are hereby authorized to be included for each fiscal year in the appropriations for the Department of Health, Education, and Welfare such sums as are necessary to administer the provisions of this Act. "DEFINITIONS "SEC. 10. For purposes of this Act "(a) The term 'vocational rehabilitation services' means diagnostic and related services (including transportation) incidental to the determination of eligibility for and the nature and scope of services to be provided; training, guidance and placement services for disabled individuals; and, in the case of any such individual found to require financial assistance with respect thereto, after full consideration of his eligibility for any similar benefit by way of pension, compensation, and insurance, any other goods and services necessary to render such individual fit to engage in a remunerative occupation, including the following physical restoration and other goods and services "(1) corrective surgery or therapeutic treatment necessary to correct or substantially modify a physical or mental condition which is stable or slowly progressive and constitutes a substantial handicap to employment, but is of such a nature that such correction or modification may reasonably be expected to eliminate or substantially reduce such handicap within a reasonable length of time; "(2) necessary hospitalization in connection with surgery or treatment specified in subparagraph (1); "(3) such prosthetic devices as are essential to obtaining or retaining employment; "(4) maintenance, not exceeding the estimated cost of subsistence, during rehabilitation; "(5) tools, equipment, initial stocks and supplies, books, and training materials, to any or all of which the State may retain legal title; and "(6) transportation (except where necessary in connection with determination of eligibility or nature and scope of services) and occupational licenses. Such term also includes "(7) the acquisition of vending stands or other equipment and initial stocks and supplies for use by severely disabled persons in any type of small business the operation of which will be improved through management and supervision by the State agency; and "(8) the establishment of public and other nonprofit rehabilitation fa cilities to provide services for disabled individuals and the establishment of public and other nonprofit workshops for the severely disabled. "(b) The term 'disabled individual' means any individual who is under a physical or mental disability which constitutes a substantial handicap to employment, but which is of such a nature that vocational rehabilitation services may reasonably be expected to render him fit to engage in a remunerative occupation. "(c) The term 'rehabilitation facility' means a facility operated for the primary purpose of assisting in the rehabilitation of disabled persons "(1) which provides one or more of the following types of services: "(C) physical, corrective, or occupational therapy; "(D) adjustment training; or "(E) evaluation or control of special disabilities; or "(2) through which is provided an integrated program of medical, psychological, social, and vocational evaluation and services under competent professional supervision: Provided, That the major portion of such evaluation and services are furnished within the facility and that all medical and related health services are prescribed by, or are under the formal supervision of, persons licensed to practice medicine in the State. "(d) The term 'workshop' means a place where any manufacture or handiwork is carried on and which is operated for the primary purpose of providing remunerative employment to severely disabled individuals who cannot be readily absorbed in the competitive labor market. "(e) The term 'nonprofit', when used with respect to a rehabilitation facility or a workshop, means a rehabilitation facility and a workshop, respectively, owned and operated by a corporation or association, no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual. "(f) Establishment of a workshop or rehabilitation facility means— "(1) in the case of a workshop, the expansion remodeling, or alteration of existing buildings, necessary to adapt such buildings to workshop purposes or to increase the employment opportunities in workshops, and the acquisition of initial equipment necessary for new workshops or to increase the employment opportunities in workshops; and "(2) in the case of a rehabilitation facility, the expansion, remodeling, or alteration of existing buildings, and initial equipment of such buildings, |