cilities throughout the State including (1) relative needs on a geographical and disability basis, (2) a priority list of programmed projects over a short-range period, and (3) long-range goals; (d) a description of continuing activities of the State agency in the area of rehabilitation facilities as evidenced by anticipated programs under the act, the Medical Facilities Survey and Construction Act, the Mental Retardation Facilities and Community Mental Health Centers Construction Act, and other pertinent authority; (e) a description of continuing coordination of this planning with other planning activities within the State which involve rehabilitation facilities; and (f) such other information as the Administrator may require.

§ 404.106 Federal financial participation.

Federal financial participation shall be available for salaries (including fringe benefits) of employees who are assigned full or part time specifically to the planning activities; cost of travel of project staff or consultants; fees for special consultants; expenses attendant to the operation of an advisory council; services provided to the project under contract with planning organizations as set forth in the approved application; preparation and distribution of the State rehabilitation facilities plan and amendments thereto; and such other costs as are set forth in the approved application. The amount of any grant under this subpart shall not exceed 90 per centum of the cost of the project and shall not be greater than $75,000 for any one year.

Subpart E-Intramural Research and Information 405.40 Intramural research. 405.41 Information service.

AUTHORITY: The provisions of this Part 405 issued under sec. 7(b), 68 Stat. 658, 29 U.S.C. 37(b). Interpret and apply secs. 1-12, 41 Stat. 735, as amended; 29 U.S.C. 31-42.

SOURCE: The provisions of this Part 405 appear at 34 F.R. 16836, Oct. 17, 1969, unless otherwise noted.

§ 405.1

Subpart A-General

Terms.

For purposes of this part

(a) The terms "act," "Administrator." "handicapped individual," "nonprofit," "Regional Commissioner," "rehabilitation facility." "Secretary,"

"Vocational rehabilitation services," and “workshop” shall, except where the context indicates otherwise, have the same meaning as set forth in § 401.1 of this chapter.

(b) "Demonstration" means (1) a pilot study or experimental attempt to provide more and better vocational rehabilitation services than are available, for the purpose of testing or establishing standards or methods of service that are practicable and effective for general application in the vocational rehabilitation program; or (2) provision of a special type of rehabilitation service in order to test its value in vocational rehabilitation and to provide information on costs, methods of administration, methods of providing services, or rehabilitation techniques; or (3) provision of vocational rehabilitation services to handicapped individuals in a specific disability category not adequately served.

(c) "State" means the several States, the District of Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa, and the Trust Territory of the Pacific Islands.

(d) "State agency" or "State vocational rehabilitation agency" has the same meaning as set forth in § 401.1 (v) of this chapter and, in addition, means the Governor of American Samoa and the High Commissioner of the Trust Territory of the Pacific Islands. § 405.2

Non-Federal funds.

In the case of any project under this part for which Federal funds are granted to pay part of the cost, the matching grantee funds may not consist of other Federal funds or of non-Federal funds that are applied to match other Federal funds, except as may be specifically authorized by Congress. No Federal financial assistance may be furnished under this part for activities for which payment is made under another part of this chapter, or other authority.

405.3 Consultant fees.

Fees for consultant services are allowable to the extent that such payments are in accordance with the policies and standard practices of the agency, organization, or institution to which a grant or contract has been awarded. Fees for consultant services may not be paid to any regular full-time Federal Government employee. They may not be paid to any other individual for activities which are ordinarily a part of his duties

in another position for which there is Federal financial participation under the act, or which conflict with his duties in such other position.

§ 405.4 Audit and review.

(a) All fiscal transactions relating to Federal financial assistance under this part are subject to audit by the Department of Health, Education, and Welfare to determine whether expenditures have been made in accordance with the act, the regulations, and other requirements.

(b) From time to time members of the staff of the Social and Rehabilitation Service review administrative, fiscal and program methods and practices in connection with activities under this part, and make suggestions for the improvement of such methods and practices. Subpart B-Research and Demonstration in Vocational Rehabilitation § 405.10

Purpose.

Special project grants authorized in section 4(a) (1) of the act shall be made for the purpose of paying part of the cost of organized, identifiable activities which are undertaken to seek solutions to vocational rehabilitation problems common to all or several States, or to contribute to the development of more effective vocational rehabilitation services in all or several States. Types of projects for which such grants may be made are: (a) Research in vocational rehabilitation; (b) demonstration programs in rehabilitation; and (c) establishment of special rehabilitation facilities or services meeting the purpose specified in section 4(a) (1) of the act. See also §§ 405.25 and 405.26 regarding rehabilitation research and training centers program.

Applications for special project grants may be made at any time by State vocational rehabilitation agencies and by other public or nonprofit agencies and institutions, including universities and other educational institutions. Applications shall be made in the form and detail required by the Administrator. The project application shall cover (a) a statement of the purpose of the project; (b) designation of an individual as director-in-charge; (c) a description of the nature and scope of the activities to be undertaken and methods to be used in accomplishing the purpose; (d) a pro

posed budget; (e) an agreement to safeguard personal information pertaining to individuals served or studied under the project; (f) an agreement to make such reports and to keep such reports and accounts, including property and financial controls, as the Administrator may require, and to make such records available for audit purposes; and (g) such other information as the Administrator may require. See also §§ 405.23 and 405.24.

§ 405.12 Approval of applications for special projects for research, demonstration, or establishment of special facilities or services.

Application for grants for paying part of the cost of a special project for research, demonstration, or establishment of special facilities or services may be made only upon an official application form which may be obtained from the Administrator. Completed applications are submitted to the Administrator who processes them with the assistance of advisory groups for submission to the National Advisory Council on Vocational Rehabilitation. (See Subpart C of this part.) The applicant may be requested to submit further information either before or after consideration of a project by the National Advisory Council on Vocational Rehabilitation. Except as the Council may otherwise specify, all projects which meet the requirements for a grant are submitted to the Council which makes recommendations to the Administrator. The Administrator then determines the action to be taken with respect to each project and informs the applicant accordingly.

§ 405.13 Approval of State agency.

The approval of the appropriate State vocational rehabilitation agency shall be secured by the applicant, if other than the State agency, for any special project which involves either direct services to handicapped individuals or the establishment of facilities which will render direct services to handicapped individuals of that State.

§ 405.14 Federal financial participation. Federal financial participation will be available for the following types of expenditures under projects approved by the Administrator: (a) Salaries, cost of travel, and related expenses of project personnel; (b) necessary supplies, equip

ment, and related expenses; (c) purchase or provision of vocational rehabilitation services to individuals served by the project; (d) costs of administration and other indirect costs of the project, subject to such limitations as the Administrator may establish; and (e) such other costs as are approved by the Administrator. Expenditures under the project shall be in connection with the conduct of the project as approved. § 405.15 Grant awards.

All grant awards shall be in writing, shall set forth the amount of funds granted, and shall constitute for such amounts the encumbrance of Federal funds available for such purpose on the date of the award. The initial award shall also specify the project period for which support is contemplated if the activity is satisfactorily carried out and Federal funds are available. For continuation support, grantees must make separate application in the form and detail required by the Administrator.

§ 405.16 Payments.

Payment of the Federal share of an approved special project may be made in advance for estimated costs of operation, or as reimbursement to the grantee and shall be subject to such requirements as the Administrator may establish.

If for any reason the grantee discontinues an approved project, the grantee shall notify the Administrator in writing, giving the reasons for termination, an accounting of funds granted for the project, and other pertinent information. The grant may be terminated, in whole or in part, at any time at the discretion of the Administrator. The grantee and the State agency will be given prompt notice of the termination, including the reasons therefor. Such termination shall not affect obligations incurred prior to the termination of the grant. Upon termination or completion of a project, the proportion of unexpended funds attributable to the Federal grant shall be refunded.

§ 405.20 Interest.

Pursuant to section 203 of the Intergovernmental Cooperation Act of 1968 (Public Law 90-577), a State, as defined in section 102 of that Act, will not be held accountable for interest earned on grant funds, pending their disbursement for program purposes. A State, as defined in the Intergovernmental Cooperation Act, section 102, means any one of the several States, the District of Columbia, Puerto Rico, any territory or possession of the United States, or any agency or instrumentality of a State, but does not include the governments of the political subdivisions of the State. All other grantees must return to the Social and Rehabilitation Service all interest earned on grant funds.

partment of Health, Education, and Welfare. The grantee institution and the project director shall neither have nor make any commitments or obligations which conflict with the requirements of this policy. § 405.22 policy.

Publications and copyright

Grantees may publish results of any activity assisted by the grant without prior review by the Social and Rehabilitation Service: Provided, That such publications carry a footnote acknowledging the assistance received under the grant, and that copies of the publications are furnished to the Social and Rehabilitation Service. Where a grant results in a book or other copyrightable material, the author is free to copyright the work, but the Social and Rehabilitation Service reserves a royalty-free, nonexclusive, and irrevocable license to reproduce, publish, or otherwise use, and to authorize others to use, all copyrightable or copyrighted material resulting from the grant-supported activity.

§ 405.23 Wage and hour standards for rehabilitation facilities which are or which contain workshops.

Applications for grants under this subpart for rehabilitation facilities, which are or which contain workshops shall, in the case of private, nonprofit rehabilitation facilities, specify that applicable Federal and State wage and hour standards will be observed or, in the case of rehabilitation facilities operated by a State, county, or municipal government, give assurance that such facilities will comply with wage and hour standards specified by the Administrator, which will be at least equal to those imposed by the Fair Labor Standards Act. § 405.24

Nondiscrimination in employment under construction contracts. Applications for grants under this subpart which provide for construction shall specify that the grantee will incorporate, or cause to be incorporated, into construction contracts paid for in whole or in part with funds obtained from the Federal Government under this subpart, such provisions on nondiscrimination in employment as are required by and pursuant to Executive Order No. 11246 and will otherwise comply with requirements prescribed by and pursuant to such order.

§ 405.25

Rehabilitation research and training centers program; scope.

(a) Special project grants under section 4(a) (1) of the act are also made for paying part of the cost of identified research and training activities carried on through rehabilitation research and training centers. Such activities must be part of a continuing program of coordinated, scientific research and professional and technical training designed to solve complex problems regarding management of disabling conditions and preparation of the handicapped for employment.

(b) Support may be given for center programs which emphasize the medical management of disabling conditions, the adjustment to limitations of function, the individual and environmental preparation necessary for the employment of the handicapped, or combinations of these activities. In carrying out program objectives, centers may serve populations that are mixed or that derive from a categorical disability group requiring specialized knowledge and techniques. § 405.26 Rehabilitation research and training centers program; applicable rules.

(a) Grantees. Universities having well-recognized programs of research and training and State vocational rehabilitation agencies or public or private nonprofit comprehensive rehabilitation facilities or institutions associated with such universities, may apply for center grants. The center program must have a separate organizational identity.

(b) Applications. The application shall cover the proposed research, training and service activities, specify how these functions will form a unified program, and contain such other information as the Administrator may require. (c) Other provisions. The provisions of §§ 405.10-405.24 shall apply to grants for rehabilitation research and training centers.

Subpart C-National Advisory Council on Vocational Rehabilitation

Secretary without regard to civil service laws. The 12 appointed members shall be leaders in fields concerned with vocational rehabilitation or in public affairs, and six of such 12 shall be selected from leading medical, educational, or scientific authorities who are outstanding for their work in the vocational rehabilitation of handicapped individuals. Three of the 12 appointed members shall be persons who are themselves handicapped.

(b) Term of office. Each appointed member of the Council shall hold office for a term of 4 years, except that any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor is appointed shall be appointed for the remainder of such term. None of such 12 members shall be eligible for reappointment until a year has elapsed after the end of his preceding term.

(c) Duties. The Council is authorized to review applications for special projects submitted under section 4(a) (1) of the act and recommend for grants any such project, or any project initiated by it, which it believes show promise of making valuable contributions to the vocational rehabilitation of handicapped individuals. The Secretary is authorized to utilize the services of any member or members of the Council in connection with matters relating to the administration of section 4 of the act for such periods in addition to conference periods, as he may determine.

(d) Per diem payments. Appointed members of the Council while attending meetings or conferences thereof or otherwise serving on business of the Council or at the request of the Secretary, shall be entitled to receive compensation at rates fixed by the Secretary, but not exceeding $100 per day, including travel time, and while so serving away from their homes or regular places of business they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5703 of title 5, United States Code for persons in the Government service employed intermittently.

(e) Report to Congress. The Secretary shall transmit to the Congress annually a report concerning the special projects initiated under section 4(a)(1) of the act, the recommendations of the National Advisory Council on Vocational Rehabilitation, and any action taken with respect to such recommendations.