§ 408.2 Purpose.

Project grants for rehabilitation of the mentally retarded 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 contribute to the rehabilitation of those mentally retarded individuals generally not eligible for vocational rehabilitation services. Types of projects for which such grants may be made include: (a) Establishment of special facilities or services for the diagnosis, treatment, training, or care of the mentally retarded; (b) training, including in-service training and education of personnel in all fields or disciplines which contribute to the rehabilitation of the mentally retarded, through provision of training, teaching, or traineeship grants; (c) demonstration projects in rehabilitation of the mentally retarded.

§ 408.3 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.

§ 408.4 Application procedure.

(a) Applications for project grants for the rehabilitation of the mentally retarded may be made at any time by States and public or other nonprofit organizations, agencies, and institutions, including universities and other educational institutions. Applications shall be made in the form and detail required by the Administrator. Applicants shall secure prior consultation and assistance from the Regional Commissioner in the development of their proposals and the preparation of their applications. Completed applications are submitted to the Administrator who processes and evaluates them with the assistance of advisory groups. The applicant may be requested to submit further information either before or after consideration of a project. The Administrator determines the action to be taken with respect to each project and informs the applicant accordingly.

(b) In the case of a project which includes provision of direct vocational re

The project application shall include(a) A statement of the purpose of the project; (b) provision for qualified and adequate staff, including a project director, to accomplish the purpose of the project; (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 proposed budget; (e) an agreement to safeguard personal information pertaining to the individuals served or studied under the project; (f) an assurance that, where appropriate, project activities will be coordinated with programs and activities of other related public and private agencies serving mentally retarded persons in the community, such as health, education, welfare, and vocational rehabilitation agencies; (g) an agreement to make such reports and to keep such records and accounts, including property and financial controls, as the Administrator may require, and to make such records available for audit purposes; and (h) such other information as the Administrator may require.

§ 408.6 Project activities.

Projects for rehabilitation of the mentally retarded may include, but are not limited to, such activities as the following: (a) The expansion and extension of present services in order to serve additional numbers of mentally retarded persons; (b) the demonstration of newly developed techniques and methods that have been found to be effective in the rehabilitation of the mentally retarded; (c) the initiation of new rehabilitation services or activities for the mentally retarded; (d) the initiation or expansion of rehabilitation programs for mentally retarded individuals with special problems, such as the multiply handicapped adolescent or adult mentally retarded, who might not be eligible for vocational rehabilitation services, or mentally retarded children who cannot profit from available educational or vocational rehabilitation programs; (e) training of personnel in disciplines or occupations contributing to the rehabili

tation of the mentally retarded; and (f) the extension of mental retardation programs and activities to areas of urban or rural poverty. § 408.7

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, equipment, and related expenses; (c) purchase or provision of rehabilitative services to individuals served by the project; (d) cost 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. Federal funds may not be used to provide training to any individual in any one program of study extending for more than 4 years. Federal funds may be used for traineeships only for individuals who are citizens of the United States or who have been lawfully admitted for permanent residence to the United States.

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.

effectively, or if changes are made in Federal appropriations, laws, regulations, or policies governing projects for rehabilitation of the mentally retarded. § 408.10 Termination.

If for any reason the grantee discontinues an approved project, the grantee shall notify the Regional Commissioner 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 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 he refunded.

§ 408.11 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. § 408.12

Reports.

$408.14 Confidential information.

(a) All information obtained by a grantee as to personal facts about individuals served by the project, including lists of names and addresses and records of evaluation, shall be held to be confidential.

(b) The use of such information and records shall be limited to purposes directly connected with the project and may not be disclosed, directly or indirectly, other than in the administration thereof, unless the consent of the agency providing the information and the individual to whom the information applies, or his representative, has been obtained in writing. The final product of the project will not reveal any information that may serve to identify any person about whom information has been obtained without his written consent, or the written consent of his representative.

§ 408.15 Publications and copyright policy.

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.

Unless otherwise indicated in this part, the terms below are defined as follows: (a) "Act" means the Randolph-Sheppard Vending Stand Act (Public Law 732, 74th Cong., 49 Stat. 1559, as amended by section 4 of Public Law 565, 83d Cong., 68 Stat. 663; 20 U.S.C. 107, chapter 6A). (b) "Secretary" means the Secretary of Health, Education, and Welfare.

(c) "Administrator" means the Administrator of the Social and Rehabilitation Service in the Department of Health, Education, and Welfare.

the

(d) "Licensing agency" means State agency designated by the Administrator pursuant to the act and this part, to issue licenses to blind persons for the operation of vending stands on Federal and other property.

(e) "Commission for the Blind" means a State agency which provides services exclusively for the blind and other visually handicapped individuals.

(f) "Program" means all the activities of the licensing agency, pursuant to the act and this part related to vending stands on Federal and other property.

(g) "Federal property" means any building, land, or other real property, owned, leased, or occupied by any department or agency of the United States or any instrumentality wholly owned by the United States, or by any department or agency of the District of Columbia or any Territory or possession of the United States.

(h) "Other property" means property which is not Federal property and on which vending stands are established or operated by the use of any funds derived in whole or in part, directly or indirectly,

from the operation of vending stands on any Federal property.

(i) "License" means a written instrument issued by the licensing agency to a blind person, pursuant to the act and this part, authorizing such person to operate a vending stand on Federal or other property.

(j) "Operator" means a blind person licensed to operate a vending stand on Federal or other property under the act.

(k) "Permit" means the official authorization given a licensing agency by a department or agency in control of the maintenance, operation, and protection of Federal property, or person in control of other property, whereby the licensing agency is authorized to establish a vending stand.

(1) "Vocational Rehabilitation Act" means that act, as amended (29 U.S.C. ch. 4).

(m) "Vocational rehabilitation services" means those services necessary to render a blind person fit to engage in remunerative employment.

(n) "State vocational rehabilitation agency" or "State agency" means that agency in the State providing vocational rehabilitation services to the blind as the sole State agency under a State plan approved pursuant to the provisions of the Vocational Rehabilitation Act.

(o) "Vending stand" means:

(1) Such shelters, counters, shelving, display and wall cases, refrigerating apparatus, and other appropriate auxiliary equipment as are necessary for the vending of such articles as may be approved by the licensing agency and the Federal department or agency having control of the maintenance, operation and protection of Federal property or person in the control of other property; and

(2) Manual or coin-operated vending machines or similar devices for vending such articles.

(p) "Blind person" means a person having not more than 10 per centum visual acuity in the better eye with correction. This means a person who has

(1) Not more than 20/200 central visual acuity in the better eye after correction; or

(2) An equally disabling loss of the visual field; i.e., a limitation in the fields of vision such that the widest diameter of the visual field subtends an angle no greater than 20°. Such blindness shall

be certified by a duly licensed ophthal– mologist.

(q) "State" means a State, territory, or possession, or the District of Columbia. § 409.2 Application for designation as licensing agency; general.

(a) Applications for designation as licensing agency may be submitted only by a State vocational rehabilitation agency.

(b) The application shall:

(1) Be submitted in writing to the Administrator;

(2) Be approved by the chief executive of the State; and

(3) Be transmitted over the signature of the executive officer of the State agency making application.

§ 409.3 Application for designation as licensing agency; content.

The application shall indicate:

(a) The licensing agency's legal authority to perform the functions necessary for the administration of the program, including its authority to issue regulations to govern the program which would have the force and effect of law within the State, and that such regulations will be issued in accordance with the provisions of State law.

(b) The licensing agency's organization for carrying out the program, including the methods of coordinating the vending stand program and the vocational rehabilitation program.

(c) The broad policies and standards to be employed in the selection of suitable locations for vending stands.

(d) The policies to be followed in making suitable vending stand equipment and adequate initial stocks of merchandise available and the sources of funds to be used therefor.

(e) The sources of funds for the management of the program and the amounts of funds, if any, to be set aside from the proceeds of the operation of vending stands.

(f) The policies and standards governing the relationship of the licensing agency to the operators, including their selection, duties, supervision, transfer, and financial participation.

(g) The methods to be followed in providing suitable training to blind persons selected for licensing under the program.

(h) The arrangements made or contemplated, if any, for the utilization of the services of any agency or organization; the agreements therefor and the

services to be provided; the procedures for the supervision and control of the services provided by such agency or organization and the methods used in evaluating services received, the basis for renumeration, and the fiscal controls and accounting procedures.

(i) The arrangements made or contemplated, if any, for the vesting in accordance with the laws of the State, of the right, title to, and interest in vending stand equipment or stock (including vending machines), used in the program in a nominee of the licensing agency to hold such right, title to, and interest for program purposes.

(j) That the designated State licensing agency will:

(1) Cooperate with the Administrator in carrying out the purpose of the act;

(2) Take effective action, including the termination of licenses, to carry out full responsibility for the management and operation of each vending stand in its program, in accordance with its established rules and regulations, this part, and the terms and conditions governing the permit;

(3) Submit promptly to the Administrator a description of any changes in the legal authority of the licensing agency, its rules and regulations, and any other matters which form a part of the application;

(4) If it intends to set aside, or cause to be set aside, funds from the proceeds of the operation of vending stands, obtain a prior determination by the Administrator that the funds to be set aside do not exceed a reasonable amount;

(5) Furnish each operator a copy of its rules and regulations and a description of the arrangements for providing services, and take adequate steps to assure that each operator understands the provisions of such documents and the provisions of the permit and any agreement under which he operates, as evidenced by his signed statements; and

(6) Make such reports in such form and containing such information as the Administrator may from time to time require and comply with such provisions as the Administrator may from time to time find necessary to assure the correctness and verification of such reports.

mulgate immediately upon approval of its application. In the event proposed rules and regulations are submitted, the licensing agency shall within a reasonable time after the approval of its application, submit a copy of the promulgated regulations. Such rules and regulations shall contain adequate provisions to enable the licensing agency to carry out its responsibilities under the act and this part, and to assure the conduct of the program and the operation of each vending stand in accordance with the act, this part, and the regulations and conditions of the departments and agencies in control of maintenance, operation, and protection of Federal property, including the conditions contained in the permits, as well as all applicable State laws, local ordinances and regulations.

(b) Such rules and regulations and amendments thereto shall be filed or published in accordance with State law.

(c) Such rules and regulations shall include provisions adequate to insure that the right, title to, and interest in each vending stand used in the program and the stock will be vested in accordance with the laws of the State in only the following:

(1) The licensing agency;

(2) Its nominee, subject to the conditions specified in § 409.9 (b); and

(3) The operator. The decision whether title may be vested in the operator rests with each State.

(d) Nothwithstanding the provisions of paragraph (c) of this section, any right, title to, or interest which existed on June 30, 1955, in stock may continue so long as:

(1) The interest is with respect to the stock of a stand established under the program prior to July 1, 1955, and

(2) The operator was licensed in the program (whether or not for the operation of the vending stand in question) prior to July 1, 1955.

§ 409.5 Rules and regulations; ownership by operators.

If a State decides that title may be vested in the operator, the rules and regulations shall specify:

(a) That a written agreement shall be entered into with each operator who is to have such ownership, such agreement containing in full the terms and conditions governing such ownership in accordance with criteria in the State agency's regulations, any applicable Fed