CONSOLIDATED REHABILITATION PLAN

SEC. 5. (a) In order to secure increased flexibility to respond to the varying needs and local conditions within the State, and in order to permit more effective and interrelated planning and operation of its rehabilitation programs, the State may submit a consolidated rehabilitation plan which includes the State's program of vocational rehabilitation services, its program for evaluation of the rehabilitation potential of handicapped and other disadvantaged individuals, and its programs of services to the blind and the deaf under this Act, and its program for persons with developmental disabilities under the Developmental Disabilities Services and Facilities Construction Amendments of 1970, except that a separate consolidated rehabilitation plan may be submitted for the blind. (b) A consolidated rehabilitation plan must comply with all requirements imposed by the applicable individual titles of this Act and the Developmental Disabilities Services and Facilities Construction Amendments of 1970.

(c) If the Secretary finds that the requirements of subsections (a) and (b) are satisfied, he shall approve the plan, which shall serve in all respects as the substitute for the separate plans which would otherwise be requested with respect to each of the programs included therein.

(d) (1) If the Secretary finds, after notice and opportunity for a hearing to a State, that a program included in its plan approved under this section no longer complies with all applicable requirements, that program may no longer be inIcluded within the plan until the Secretary is satisfied that it meets such requirements.

(2) If the statute authorizing the assistance for the program referred to in paragraph (1) requires notice and opportunity for hearing before suspension or termination of assistance or any other such sanction may be imposed, the notice and opportunity for hearing afforded pursuant to paragraph (1) may, at the option of the Secretary, be deemed to have been provided pursuant to the requirements in the statute under which such assistance is extended. (e) Notwithstanding any other provision of Federal law

(1) the Secretary may, upon request of the Governor, establish a single Federal share for expenditures under the plan based on (A) the Federal share or shares applicable to the various programs included in the plan, and (B) the total expenditures which may be claimed for Federal financial participation with respect to each such program; and

(2) the Governor may transfer an amount, not in excess of 10 per centum of the Federal assistance available to the State with respect to any program included in the plan for any fiscal year, for use in carrying out one or more other such programs in the same fiscal year provided that there is no diminution of State effort in the program receiving the transfer.

(f) Any Federal assistance transferred pursuant to subsection (e) shall be subject to the non-Federal share requirements applicable to such assistance prior to such transfer.

DEFINITIONS

SEC. 6. For the purpose of this Act

(a) The population of the several States shall be determined on the basis of the latest figures, furnished by the Department of Commerce by October 1 of the year preceding the fiscal year for which funds are appropriated pursuant to statutory authorizations.

(b) The term "Secretary", except when the context otherwise requires, means the Secretary of Health, Education, and Welfare.

(c) The term "State" includes the District of Columbia, the Virgin Islands, Puerto Rico, and Guam; and for purposes of title IV only of this Act, American Samoa and the Trust Territory of the Pacific Islands and for such purposes the appropriate State agency designated as provided in section 104 (a) (1) shall Be the Governor of American Samoa or the High Commissioner of the Trust Territory of the Pacific Islands as the case may be.

(d) (1) The allotment percentage for any State shall be 100 per centum less that percentage which bears the same ratio to 50 per centum as the per capita income of such State bears to the per capita income of the United States, except that (A) the allotment percentage shall in no case be more than 75 per centum or less than 33% per centum, and (B) the allotment percentage for the District of Columbia, Puerto Rico, Guam, and the Virgin Islands shall be 75 per centum.

(2) The allotment percentages shall be promulgated by the Secretary between July 1 and September 30 of each even-numbered year, on the basis of the average of the per capita incomes of the States and of the United States for the three most recent consecutive years for which satisfactory data are available from the Department of Commerce. Such promulgation shall be conclusive for each of the two fiscal years in the period beginning July 1 next succeeding such promulgation.

(3) The term "United States" means (but only for purposes of this subsection) the fifty States and the District of Columbia.

TITLE I-VOCATIONAL REHABILITATION SERVICES

DECLARATION OF PURPOSE

SEC. 100. The purpose of this title is to authorize grants to assist States in(a) developing and implementing a comprehensive and continuing plan for meeting the current and future needs for services to handicapped individuals;

(b) rehabilitating handicapped individuals so that they may prepare for and engage in gainful employment to the extent of their capabilities;

(c) developing new and innovative programs of vocational rehabilitation service; and

(d) initiating and expanding services to groups of handicapped individuals.

AUTHORIZATION OF APPROPRIATIONS

SEC. 101. (a) In order to make grants to States under section 102 to assist them in meeting costs of vocational rehabilitation services, including the development of new and innovative programs of vocational rehabilitation services, and carry out the State plan under section 104, there is authorized to be appropriated $800,000,000 for the fiscal year ending June 30, 1973, $950,000,000 for the fiscal year ending June 30, 1974, and $1,100,000,000 for the fiscal year ending June 30, 1975.

(b) For the purpose of making grants under section 103, relating to grants to States and public and private non-profit agencies to assist them in meeting the costs of projects to initiate or expand services to handicapped individuals, there is authorized to be appropriated $50,000,000 for the fiscal year ending June 30, 1973, $60,000,000 for the fiscal year ending June, 1974, and $75,000,000 for the fiscal year ending June 30, 1975.

STATE ALLOTMENTS

SEC. 102. (a) For each fiscal year each State shall be entitled to an allotment of an amount bearing the same ratio to the amount authorized to be appropriated by subsection (a) of section 101 for meeting the cost of vocational rehabilitation services, as the product of (1) the population of the State and (2) the square of its allotment percentage (as defined in section 6) bears to the sum of the corresponding products for all the States. Notwithstanding any other provision of law, unless enacted in specific limitation of the provisions of this subsection, the allotment to any State may not be reduced to an amount less than the amount to which the State is entitled under the preceding sentence of this subsection except for the purpose of the adjustments specified in the remainder of this subsection. The allotment to any State (other than Guam and the Virgin Islands) under the first sentence of this subsection for any fiscal year which is less than $2,000,000 (or such 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 such States under the first sentence of this subsection, 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) For each fiscal year the Secretary shall pay to each State an amount equal to the Federal share (determined as provided in section 105 (b) of the cost of vocational rehabilitation services under the plan for such State approved under section 104, including expenditures for the administration of the State plan, except that the total of such payments to such State for such fiscal year may not exceed its allotment under subsection (a) for such year and such payments

shall not be made in an amount which would result in a violation of the provisions of the State plan required by section 104 (a) (14), and except that the amount otherwise payable to such State for such year under this section shall be reduced by the amount (if any) by which expenditures from non-Federal sources (except for expenditures with respect to which the State is entitled to payments under section 103) during such year are less than such expenditures under such plan for the fiscal year ending June 30, 1969.

(c) For the purpose of determining the amount of payments to States for carrying out this section with respect to expenditures under State plan approved under section 104, and for section 103, State funds shall, subject to such limitations and conditions as may be prescribed in regulations of the Secretary, include contributions of funds made by any private agency, organization, or individual to a State to assist in meeting the costs of construction or establishment of a public or other nonprofit rehabilitation facility, which would be regarded as State funds except for the condition, imposed by the contributor, limiting use of such funds to construction or establishment of such facility.

(d) The method of computing and paying amounts pursuant to subsection (a) shall be as follows:

(1) 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 records of the State and information furnished by it, and such other investigation, as the Secretary may find necessary.

(2) 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 paragraph) 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 payment 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.

GRANTS TO STATES TO INITIATE OR EXPAND SERVICES

SEC. 103. (a) (1) From the sums available for any fiscal year for grants to States to assist them in meeting the costs described in paragraph (2) of this subsection, each State shall be entitled to an allotment of an amount bearing the same ratio to such sums as the population of the 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 $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 allotment to each of the remaining Sates 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 under this section for any fiscal year, the Secretary shall pay to such State or, at the option of the State, to a public or private nonprofit organization or agency a portion of the cost of planning, preparing for, and initiating special programs to expand vocational rehabilitation services, or of special programs to initiate or expand services to classes of handicapped individuals who have unusual and difficult problems in connection their rehabilitation, and responsibility for whose treatment, education, and rehabilitation is shared by the State agency designated in section 104 (a) (1) with other agencies. Such classes include, but are not limited to, alcoholics, drug addicts, migratory agricultural workers, and public offenders. Any grant of funds under this section which will be used for direct services to handicapped individuals or for establishing facilities which will render direct services to such individuals must have the prior approval of the appropriate State agency designated in section 104 (a) (1).

(b) Payments under this section with respect to any project may be made for a peirod of not to exceed three years beginning with the commencement of the project is approved, and sums appropriated for grants under this section shall remain available for such grants through the close of June 30, 1976. Payments with respect to any project may not exceed 90 per centum of the cost of

such project. The non-Federal share of the cost of a project may be in cash or in kind and may include funds spent for project purposes by a cooperating public or private agency provided that it is not included as a cost in any other federally financed program.

(c) 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.

(d) 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 102. (e) Whenever the Secretary determines that any amount of an allotment to a State for any fiscal year will not be utilized by such State in carrying out the purposes of this section, he shall make such amount available for carrying out the purposes of this section to one or more other States which he determines will be able to use additional amounts during such year for carrying out such purposes. Any amount made available to a State for any fiscal year pursuant to the preceding sentence shall, for purposes of this Act, be regarded as an increase of such State's allotment (as determined under the preceding provisions of this section) for such year.

STATE PLANS

SEC. 104. (a) In order to be approved by the Secretary under this title, a State plan for vocational rehabilitation services shall

(1) (A) designate a State agency as the sole State agency to administer the plan, or to supervise its administration by a local service agency, except that (i) 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 commission or agency may be designated as the sole State agency to administer the part of the plan under which vocational rehabilitation services are provided for the blind (or to supervise the administration of such part by a local service agency and a separate State agency may be designated as the sole State agency with respect to the rest of the State plan, and (ii) the Secretary, upon the request of an agency so designated, may authorize such agency to share funding and administrative responsibility with another agency of the State or with a local agency in order to permit such agencies to carry out a joint program to provide services to handicapped individuals, and may waive compliance with respect to vocational rehabilitation services furnished under such programs with the requirement of a sole State agency in this subparagraph and with the requirement of section 104(a) (4) that the plan be in effect in all political subdivisions of the State; (B) provide that the State agency so designated to administer or supervise the administration of the State plan, or (if there are two State agencies designated under subparagraph (A) so much of the State plan as does not relate to services for the blind, shall be (i) a State agency primarily concerned with vocational rehabilitation, or vocational and other rehabilitation, of disabled individuals, (ii) the State agency administering or supervising the administration of education or vocational education in the State, or (iii) a State agency which includes at least two other major organizational units each of which administers one or more of the major public education, public health, public welfare, or labor programs of the State;

(C) provide (where the designated State agency supervises the administration of the plan by a local service agency) that there shall be established a local advisory committee to (1) advise the local service agency on program development, interagency relations and policy matters arising in the administration of the programs under the State plan, (ii) evaluate the local program of vocational rehabilitation services and activities, and (iii) prepare and submit to the State agency designated in paragraph (A) of this subsection its findings and recommendations;

(2) provide, except in the case of agencies described in paragraph (1) (B) (i) —

(A) that the State agency designated pursuant to paragraph (1) (or each State agency if two are so designated) shall include a vocational rehabilitation bureau, division, or other organizational unit which (i) is primarily concerned with vocational rehabilitation, or

vocational and other rehabilitation, of disabled individuals, and is responsible for the vocational rehabilitation program of such State agency, (ii) has a full-time director, and (iii) has a staff employed on such rehabilitation work of such organizational unit all or substantially all of whom are employed full time on such work; and

(B) (i) that such unit shall be located at an organizational level and shall have an organizational status within such State agency comparable to that of other major organizational units of such agency, or (ii) in the case of an agency described in paragraph (1) (B) (ii), either that such unit shall be so located and have such status, or that the director of such unit shall be the executive officer of such State agency; except that, in the case of a State which has designated only one State agency pursuant to paragraph (1), such State may, if it so desires, assign responsibility for the part of the plan under which vocational rehabilitation services are provided for the blind to one organizational unit of such agency and assign responsibility for the rest of the plan to another organizational unit of such agency, with the provisions of this paragraph (2) applying separately to each such units; (3) provide for financial participation by the State, or, if the State so elects, by the State and is political subdivisions ;

(4) provide that the plan shall be in effect in all political subdivisions, except that, in the case of any activity which, in the judgment of the Secretary, is likely to assist in promoting the vocational rehabilitation of substantially larger numbers of handicapped individuals or the vocational rehabilitation of individuals with particular types of disabilities in a State or States, the Secretary may waive compliance with respect to vocational rehabilitation services furnished as part of such activity, with the requirement herein that the plan be in effect in all political subdivisions of the State to the extent and for such period as may be provided in accordance with regulations prescribed by him, but only if the non-Federal share of the cost of such vocational rehabilitation services is met from funds made available by a political subdivision of the State (including, to the extent permitted by such regulations, funds contributed to such subdivision by a private agency, organization, or individual;

(5) 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 handicapped individuals who apply for such services, show the order to be followed in selecting those to whom vocational rehabilitation services will be provided;

(6) 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;

(7) 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, but the Secretary shall exercise no authority with respect to the selection, method of selection, tenure of office, or compensation of any individual employed in accordance with such provisions;

(8) provide the evaluation of rehabilitation potential, counseling and guidance, advocacy, personal and vocational adjustment, training, maintenance, physical restoration, placement and follow-up and follow-along services will be provided under the plan;

(9) 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 title, and comply with such provisions as he may from time to time find necessary to assure the correctness and verification of such reports;

(10) provide for entering into cooperative arrangements with, and the utilization of the services and facilities of, the State agencies administering the State's public assistance program, social services program, services to the blind and to the deaf programs, manpower programs, public employment offices, the Social Security Administration (Department of Health, Education, and Welfare), and