(a) "Act" means the Vocational Rehabilitation Act, as amended (29 U.S.C. ch. 4).

(b) "Blind" means persons who are blind within the meaning of the law relating to vocational rehabilitation in each State.

(c) "Commissioner” means the Commissioner of Vocational Rehabilitation in the Department of Health, Education, and Welfare.

(d) "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.

(e) "Eligible" or "eligibility," when used in relation to an individual's qualification for vocational rehabilitation services, refers to a certification that (1) the handicapped individual has a physical or mental disability which constitutes a substantial handicap to employment and (2) vocational rehabilitation services may reasonably be expected to render him fit to engage in a gainful occupation.

(f) "Establishment of a rehabilitation facility" means (1) the expansion, remodeling, or alteration of existing buildings, necessary to adapt or to increase the effectiveness of such buildings for rehabilitation facility purposes; (2) the acquisition of initial equipment for such purposes; or (3) the initial staffing of a rehabilitation facility, for a period not exceeding 1 year.

(g) "Establishment of a workshop" means 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.

(h) "Gainful occupation" includes employment in the competitive labor market; practice of a profession; selfemployment; homemaking; farm or family work (including work for which payment is in kind rather than in cash); sheltered employment; and home industries or other gainful homebound work.

(i) "Handicapped individual" means any individual who has a physical or mental disability which constitutes a substantial handicap to employment, but which is of such a nature that vocational rehabilitation services (paragraph (x) (1) of this section) may reasonably be expected to render him fit to engage in a gainful occupation, including a gainful occupation which is more consistent with his capacities and abilities.

"Handicapped individual" also means any individual who has a physical or mental disability which constitutes a substantial handicap to employment for whom vocational rehabilitation services (paragraph (x) (2) of this section) are necessary for purposes of the determination of rehabilitation potential.

(j) "Local rehabilitation agency" means the public agency of a political subdivision of a State which has sole responsibility for administering the vocational rehabilitation program in the locality, under the supervision of the State agency.

(k) "Maintenance" means payments to cover the handicapped individual's basic living expenses, such as food, shelter, clothing, health maintenance, and other subsistence expenses essential to determination of the individual's rehabilitation potential or to achievement of his vocational rehabilitation objective.

(1) "Management services and supervision" for small business enterprises includes inspection, quality control, consultation, accounting, regulating, inservice training, and other related services provided on a systematic basis to support and improve small business enterprises operated by blind or other severely handicapped persons under a State agency's small business enterprise program. "Management services and supervision" does not include those services or costs which pertain to the operation of the individual business enterprise, such as employment of substitute workers, rent, advertising and other operating costs.

66-097-67-30

(m) "Nonprofit," when used with respect to a rehabilitation facility or a workshop, means a rehabilitation facility or 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, and the income of which is exempt from taxation under section 501(c)(3) of the Internal Revenue Code of 1954.

(n) "Occupational license” means any license, permit, or other written authority required by a State, city, or other governmental unit to be obtained in order to enter an occupation.

(o) "Physical or mental disability" means a physical or mental condition which materially limits, contributes to limiting or, if not corrected, will probably result in limiting an individual's activities or functioning. It includes behavioral disorders characterized by deviant social behavior or impaired ability to carry out normal relationships with family and community which may result from vocational, educational, cultural, social, environmental, or other factors.

(p) "Physical restoration services" means those medical and medically related services which are necessary to correct or substantially modify within a reasonable period of time a physical or mental condition which is stable or slowly progressive, and includes: (1) Medical or surgical treatment by general practitioners or medical specialists; (2) psychiatric treatment; (3) dentistry; (4) nursing services; (5) hospitalization (either inpatient or outpatient care) and clinic services; (6) convalescent, nursing or rest home care; (7) drugs and supplies; (8) prosthetic devices essential to obtaining or retaining employment; (9) physical therapy; (10) occupational therapy; (11) medically directed speech or hearing therapy; (12) physical rehabilitation in a rehabilitation facility; (13) treatment of medical complications and emergencies, either acute or chronic, which are associated with or arise out of the provision of physical restoration services, or are inherent in the condition under treatment; and (14) other medical or medically related rehabilitation services.

The provision that the condition is stable or slowly progressive does not apply when physical restoration services are provided in order to determine the rehabilitation potential.

(q) "Prosthetic device" means any appliance designed to support or take the place of a part of the body, or to increase the acuity of a sensory organ.

(r) "Rehabilitation facility" means a facility, operated for the primary purposes of assisting in the rehabilitation of handicapped individuals, (1) which provides one or more of the following types of services: Testing, fitting, or training in the use of prosthetic devices; prevocational or conditioning therapy; physical or occupational therapy; adjustment training; evaluation, treatment, 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 is 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 or surgery in the State.

(s) "Secretary" means the Secretary of Health, Education, and Welfare.

(t) "Small business enterprise" means a small business operated by blind or other severely handicapped persons under the management and supervision of the State agency or its nominee. Such businesses include only those selling, manufacturing, processing, servicing, agricultural, and other activities which are suitable and practical for the most effective utilization of the skills and aptitudes of blind or other severely handicapped persons and provide substantial gainful employment or self-employment commensurate with the time devoted by the operator or operators to the business, the cost of establishing the business and other factors of an economic nature.

(u) "State" means the several States, the District of Columbia, the Virgin Islands, Puerto Rico, and Guam.

(v) "State agency" or "State vocational rehabilitation agency" means the sole State agency designated to administer (or supervise local administration of) the State plan for vocational rehabilitation services. The term includes the State agency for the blind, if designated as the sole State agency with respect to that part of the plan relating to the vocational rehabilitation of the blind.

(w) "Substantial handicap to employment" means that a physical or mental

disability (in the light of attendant medical, psychological, vocational, educational, cultural, social, or environmental factors) impedes an individual's occupational performance, by preventing his obtaining, retaining, or preparing for a gainful occupation consistent with his capacities and abilities.

(x) (1) "Vocational rehabilitation services" means any goods and services necessary to render a handicapped individual fit to engage in a gainful occupation, including (i) diagnostic and related services (including transportation) required for the determination of eligibility for and the nature and scope of services to be provided; (ii) counseling; (iii) physical restoration services; (iv) training; (v) books and training materials (including tools); (vi) maintenance; (vii) placement; (viii) tools, equipment, initial stocks and supplies, including equipment and initial stocks and supplies for vending stands; (ix) management services and supervision provided by the State agency and acquisition of vending stands or other equipment and initial stocks and supplies, for small business enterprises, operated under the supervision of the State agency, by the severely handicapped; (x) transportation; (xi) occupational licenses; (xii) reader services for the blind; (xiii) interpreter services for the deaf; and (xiv) other goods and services necessary to render a handicapped individual fit to engage in a gainful occupation.

(2) "Vocational rehabilitation services" (for purposes of the determination of rehabilitation potential) also means any goods or services, including the items specified in subparagraph (1) (i) through (vi), (x), (xii), (xiii) and (xiv) of this paragraph, which are provided to an individual who has a physical or mental disability which constitutes a substantial handicap to employment, during the period specified by the Commissioner (§ 401.21) to be necessary for, and which are provided for the purpose of ascertaining whether it may reasonably be expected that such individual will be rendered fit to engage in a gainful occupation through the provision of goods and services described in subparagraph (1) of this paragraph.

(3) The term also covers the establishment of workshops for the severely handicapped and the establishment of rehabilitation facilities.

(y) "Workshop" means a place where any manufacture or handiwork is carried on, and which is operated for the primary purpose of providing gainful employment to the severely handicapped (1) as an interim step in the rehabilitation process for those who cannot be readily absorbed in the competitive labor market; or (2) during such time as employment opportunities for them in the competitive labor market do not exist. Subpart B-State Plans for Vocational Rehabilitation

STATE PLAN CONTENT: ADMINISTRATION § 401.2 The State plan: general require

ments.

(a) Purpose. A basic condition to the certification of Federal funds to a State for vocational rehabilitation services is a State plan found to meet Federal requirements. This plan shall constitute a description of the State's vocational rehabilitation program. The State plan shall meet the requirements as to content hereinafter stated. It shall provide for financial participation by the State, and shall provide that it will be in effect in all political subdivisions of the State except as specifically provided in § 401.9. The Commissioner shall approve any plan meeting the requirements of the act and of this part.

(b) Form. The general form and content of the State plans are set forth in the State Plan Guide which is distributed to all State agencies administering vocational rehabilitation programs.

(c) Amendment. The plan shall provide that it will be amended whenever necessary to reflect a material change in any phase of State law, organization, policy, or agency operations and that such amendments will be submitted to the Vocational Rehabilitation Administration before it is put into effect, or within a reasonable time thereafter.

(d) Separate part relating to rehabilitation of the blind. If, as hereinafter provided for, a State agency for the blind administers or supervises the administration of that part of the State plan relating to the rehabilitation of the blind, such part of the State plan shall meet all requirements as to submission, amendment, and content prescribed by the act and this part, as though it were a separate State plan.